26 



HARDWOOD RECORD 



January 2R. 1922 



The mid- winter 

 meeting of the Michi- 

 gan Hardwood Manu- 

 facturers ' Associa- 

 tion was assembled at 

 the Statler Hotel in 

 Detroit on January 19, 

 witli about 50 present 

 re])rescnting tweut}'- 

 six members and in- 

 cluding several visit- 

 ors. 



President F. O. 

 Harden, of the Boyne 

 City Lumber Co., 

 Boyne City, made 

 iutroductory remarks 

 concerning the effect 

 of the recent Supreme 

 Court decision on the 

 activities of the asso- 

 ciation and called 

 upon Secretary J. C. 



J. C. Knox, Secretary-Manager ,.. £ r< i-n^.^ +« 



Knox, of Cadillac, to 

 read a letter written to the association by Attorney Edward S. 

 Clarke, of Bay City, Mich., in which he expressed the opinion that 

 the monthly stock report gotten out by the Michigan association 

 is entirely lawful and harmless, but that the weekly sales report is 

 "somewhat nearer the line of doubt, but standing by itself I con- 

 sider this also lawful and harmless. ' ' 



Attorney Clark stated that evidently the Supremo Court "read 

 between the lines of the Memphis plan an illegal intent. This 

 appears clearly throughout the court's opinion." 



Mr. Clark called attention to one important point, when he said, 

 referring to the majority opinion: 



JustlceClark has used one argument which, so far as I know, has never 

 previously been used in a decision under the Sherman law. This is the 

 argument that real competitors do not exchange information of the kind 

 exchanged by the American Hardwood Manufacturers' Association. In 

 other words, he is basing an argument on human nature. 



It is important, therefore, for you to consider whether there is any- 

 thing in jyour plan which is contrary to the natural course of conduct of 

 competing manufacturers. If so, that element of your plan will prove 

 dangerous. 



In conclusion he said: 



I see no reason why the Michigan Hardwood Manufacturers' Association 

 should not continue its activities providing the reports exchanged "simply 

 supply to each member the amount of stoclj held, the sales made and prices 

 received iu order to furnish data for judging the market on the basis of 

 supply and demand and current prices." 



Compton Speaks on Decision 



Dr. Wilsou Compton, secretary-manager of the National Lumber 

 Manufacturers' Association, Washington, D. C, was present at the 

 meeting and was called upon by President Bardon to express his 

 opinion as to the effect of the decision. He said that the National 

 association was continuing its work as in the past and did not 

 contemplate any change. He said that Secretary Hoover, of the 

 Department of Commerce and Attorney General Daugherty were 

 getting together on an understanding of what constituted lawful 

 association activities and a public statement of some sort might 

 be expected from them shortly, which would, to some extent at 

 least, bring about a clearer idea of the matter. 



Secretary Knoi »ead his regular report, which was regarded as 



a model of an association record of matters accomplished and work 

 to be done, in part, as follows: 



Secretary's Statement 



You will note from the balance on hand Jauuai->' 14, 1922, that there 

 will be no need of an assessment for the tirst six months of this year and 

 perhaps later, unless some unforeseen expenditure presents itself. The cash 

 balance on hand January 14 was $12,402.51, of which $12,000.00 is In 

 certificates of deposits bearing four per cent interest. 



Minimum Assessment: We wish to bring before you today the ques- 

 tion of reducing our minimum assessment, which at present seems too high 

 basing on present conditions. There was a time when no minimum was 

 exacted fom our ineml)crs, then we made the minimum assessment $30, 

 then $50, then $100 and at i)resent $200. Will you kindly give this mat- 

 ter consideration and say what your pleasure is concerniug the same? 



R.\ILR0.\D Freight H.iTES : If there is one item of expense in the lum- 

 ber business tbat needs reduction over another it is that of railroad freight 

 rates. I have in mind the present rate on lumber in carload lots from 

 Cadillac to Grand Kapids. In 1907 the rate was 7 cents per 100 pounds 

 for 98 miles. The present rate is 16 cents per 100 pounds, which is out 

 of all proportion to the service rendered for that distance. Some of this 

 advanced rate can be accounted for by the Michigan zoning system, which 

 I believe is the highest, considering the length of haul, of any state in the 

 Union. This question was spoken of liy Traffic Manager Tuttle, who 

 addressed us at our October meeting in Grand Kapids, and an appropria- 

 tion of $250 was voted to the Michigan Traffic League in order that some- 

 thing might be startcni to have this basis of rates reduced. We are not 

 looking for a general reduction in freight rates, but do look for a reduction 

 In some commodity rates, such as coal, lumber, building materials, etc. 

 The Michigan lumbermen's interests are being looked after by Traffic Man- 

 ager Ewing of Grand Kapids, and either he or Attorney George N. Brown 

 of Krown & Uoylc, Washington, will present our case at the general hearing 

 covering reduced rates on lumber and forest products in Washington Janu- 

 ary 26 and 27. We are niiviscd that the rates on lumber and forest 

 products from Michigan territory to I'acilic coast terminals will be reduced 

 from 113.5 from Lower Peninsula and 106.5 from Upper Peninsula to 

 85 and 80, effective January 30. The Central Freight Association lines 

 have for some time been considering a reduction in the Michigan lumber 

 rates of 85 per cent of the sixth class, and this agreement has been passed 

 by those lines, but Is now delayed In the executive committee, with pros- 

 pects of an early niUng. 



Maple Adveutising Camp.iion : President Fox of the Northern Hemlock 

 and Hardwood Manufacturers' Association was present at our fall meeting 

 and spoke In regard to a proposed maple advertising campaign to be car- 

 ried along similar lines as their birch campaign, and desired the members 

 of our association to look into this matter and get something started along 

 that line. The Maple Flooring Manufacturers!' Association have recently 

 gone into such a campaign, and some of our members can give us some 

 information as to their views In the matter. We may not be able to 

 advertise beautiful maple the same as "Beautiful Birch for Beautiful 

 Woodwork," but we can vouch for the general use of maple for a great 

 many more uses than it Is now being put to. .Shall be pleased to have you 

 consider this. 



Natio.xal Forestuv Legislation : The chairman of your forestry com- 

 mittees was not able to represent us at the forestry bearing in Washington 

 beginning January 9, and through suggestion of Mr. Compton of the 

 National Association we prevailed upon A. L. Osbom to represent both 

 Wisconsin and Michigan at this meeting. On account of Illness Mr. Osbom 

 was not able to go, but his place was taken by Secretary Swan of that 

 association. 



TitANsiT Car Case : We have been asked to make a contribution to aid 

 the National Ketail Lumber Dealers' Association In the Transit Car Case. 

 As you know we Intervened in this case, together with the Northern Hem- 

 lock and Hardwood Manufacturers' Association, by way of moral and did 

 not pledge ourselves to aid the case financially. We are now asked to make 

 a contribution, and it Is up to the members present to say whether they 

 desire to consider same or not. 



Standaruization OH" Railroad Ties : There Is a movement on foot to 

 affect the standardization of railroad ties. Of course we arc Interested in 

 this and will sec that our association is represented when this question 

 comes up. Any change in the specifications will be scrutinized very closely. 



Tariff on Lumber: Chairman Keith of the committee on governmental 

 relations brought this question u|i. and it was placed before our member of 

 the governmental relation, Mr. Kayburn and others, and It was the con- 

 sensus of opinion that we let the matter rest as It is at present. 



Speaks on Mapes Bill 



P. L. Buttrick, a,ssistant professor of forestry, Micliigan Agricul- 

 tural College, read the Mapes Bill, lately introduced in Congress 



