18 



HARDWOOD RECORD 



March 10. 1922 



business are to be denied iuformation as to the vital statistics of the 

 Industry in which they are engaged, to the end that business may be 

 conducted intelligently with knowledge of the tacts, rather than by the 

 haphazard, destructive, uneconomical methods, which are unavoidable when 

 It is transacted in the darkness of ignorance of the fact. 



The report pointed out that whatever the uncertainty and confusion of 

 opinion in respect to gathering and distributing such information, when 

 It is distributed only among the members of the particular co-operating 

 group, one thing seems certain and indisputable. 



That AN INDUSTRIAL GROUP MAY CX)-OPERATE IN THE GATHER- 

 ING AND DISTRIBUTION OF SUCH STATISTICS, IF THE DATA ARE 

 MADE AVAILABLE TO BOTH BUYER AND SELLER. 



It states that such is not only the judgment of lawyers who have closely 

 studied the majority opinion in the Hardwood Case, but such is undoubtedly 

 the opinion of the vast majority of lawyers, regardless of whether they 

 agree as to the exact purport of that opinion. 



Questions of Worth and Method 



It was then pointed out that if an industrial group may gather or cause 

 to be gathered and distributed such statistics, provided the opportunity is 

 afforded the public to secure the same at the same time and upon like 

 terms as the members of the group, the question resolves itself into the 

 Inquiry whether such data is worth the trouble and expense of its collec- 

 tion and dissemination ; and if so, by what means, method and instru- 

 mentality can it be best collected and published. 



The board reported that after carcf\il consideration and mature delibera- 

 tion in its Judgment a private corporation, duly and legally organized. 

 Is the best vehicle by and through which the vital statistics of this industry 

 can be lawfully gathered and disseminated. 



It was pointed out further that such a corporation in addition to statis- 

 tical service can so function as to adequatel.v sen-e every industrial need 

 in a more satisfactory way than a voluntary trade association. 



That through the medium of such an agency the producer of the raw 

 material and the fabricator of the finished product could be brought Into 

 closer contact so that the industrial nee<ls of both would be better under- 

 stood, thereby the economic status of the whole industry would be Im- 

 proved, which would Inevitably react helpfully to the puldic, it being well 

 understood by all thoughtful observers that the outstanding handicap in 

 the body of this industry Is this lack of contact between the producer of 

 hardwood lumber and the ultimate consumer. 



If these two interests could be brought into close contact all interests, 

 including the public, would be beneficially served. 



Statistics Will Be Main Purpose 



It was explained that while the details had not ln-en worked out, these 

 being the problem of the organization coniniittee which was appointed, 

 that the general purpose woultl be the collection of statistics on such sub- 

 jects as stocks on hand, and past fjales, to provide an inspection service as 



well as such other services as might be decided proper by the board of 

 directors of the corporation when organized. 



As to the statistical reports, it was stated that these would take the foinn 

 of copy-righted publications, issued frequently enough to efficiently serve 

 the industrial requirements ; that such publication would be available upon 

 equal subscription to everybody and anybody, producer, consumer, or any 

 member of the public. 



It was recommended that the headquarters of the corporation be estab- 

 lished at Memphis, Tenn. 



A committee, composed of W. M. Hitter of Columbus ; B. B. Burns 

 of Huntington, W. Va. : M. W. Stark of Columbus, O. ; J. E. Stark, 

 R. L. Jurden and Ralph May of Memphis. Tenn. ; F. L. Conn of Yazoo City, 

 Miss. ; B. F. Duhveber of Greenwood, Miss., and C. H. Sherrill of New 

 Orleans, La., was appointed to formulate definite and detailed plans, and to 

 secure opinions as to the legality of the proposed plan. 



It was stated that it should be clearly understood that before the cor- 

 poration would undertake to function, in addition to the judgment of the 

 lawyers who have already expresseil their approval, this including the gen- 

 eral counsel of the association, the plan will be submitted for the judg- 

 ment and opinion of several of the most distinguished lawyers in the 

 country who are best qualified to express opinion as to the legality of the 

 proposed plan. 



In a word, it was stated that it should be understood that before the plan 

 is launched, the committee in charge of its organization will be fully satis- 

 fled of its legality. 



The above statement was formulated by L. C. Boyle of Washing- 

 ton, D. C, chief counsel for the association. 



The association adopted resolutions stating that "it is the 

 patriotic and unquestioned duty of Congress and all State Assem- 

 blies to cut down in all ways possible governmental expenditures 

 to the end that instead of increasing new tax burdens those 

 that now exist may be lessened;" that, "the hardwood branch of 

 the lumber industry stands ready to support any feasible program 

 looking to the conservation of our remaining timber stands. How- 

 ever, such programs must not invade private property rights of the 

 citizen, be he lumberman or farmer." 



A resolution was also adopted making "ungrudging recognition 

 of the high character of the ability displayed in the conduct of the 

 case (Hardwood Case) and to express to" Gen. L. C. Boyle and 

 assistant counsel, G. Carroll Todd, the "great appreciation" by the 

 association of "their services, and to assure them that our confi- 

 dence in them is unshaken and unimpaired." 



Opening Session Sees Plan Launched 



The first meeting of the American Hardwood Manufacturers' 

 Association since enjoined from operation by the Government of 

 its statistical department, was launched at the Seelbach Hotel, 

 Louisville, Ky., March 7, there being about 200 lumbermen present 

 at the opening session. Early in the session the big idea of solution 

 of the injunction problem, and of how to continue securing statistics 

 concerning sales, production, stocks, etc., was launched. The plan 

 submitted had been under way for months, and had been worked on 

 for two days by the directors of the organization, prior to opening 

 of the convention. 



Briefly the plan as outlined by B. F. Dulwcber, spokesman for 

 the movement, is for the formation of a $100,000 corporation, to 

 be known as the Hardwood Lumber Institute, Inc., or some equally 

 good name, to be finally decided upon later, which will sell its stock 

 to present members of the association, based on their size either 

 in business handled, or annual cut over a period of years. Market 

 information will be compiled relative to stocks on hand, cutting, 

 weekly sales, etc., and sent out in printed form, copyrighted, to sub- 

 scribers for the service, who can either be i)roducer3, jobbers, re- 

 tailers or consumers. Anyone will be able to secure the service, at 

 a reasonable price, which will be within the reach of all. 



President Carrier Opens Meeting 



The convention opened with President Bobert M. Carrier, of 

 Memphis, in the chair. Mr. Carrier introduced the Hon. Huston 

 Quinn, Mayor of Louisville, who delivered a short and humorous 



talk. He was followed by James E. Stark, Memphis, who made the 

 response. President Carrier announced that for two days the di- 

 rectors had been working on a plan, which would be submitted, 

 and which would hold a solution of the troubles before the organiza- 

 tion, and asked them to consider it as a business proposition in a 

 business way. 



Eeports were made by Secretary-manager John M. Pritchard, of 

 Memphis, and by Frank R. Gadd, manager of the Statistical De- 

 I)artment, these reports covering the work of the organization 

 since the last annual meeting in December, 1919, both reports touch- 

 ing on the Hardwood Case along with other things. 



The most striking reference which Secretary-manager Pritchard 

 made to the injunction against the open competition plan was the 

 statement that "the business interests of the country alone are 

 discrimin.ated against and under this law (Sherman Law) are now 

 denied vital statistics." As a brief prelude to this remark Mr. 

 Pritchard said: "The present Administration has shown great con- 

 cern for the conditions in agriculture and has riglitfully passed laws 

 which will permit farmers to form co-operative selling agencies. 

 The labor unions likewise are exempt from the provisions of the 

 Sherman anti-trust law." Then he made the statement quoted at 

 the outset of this paragraph and continued: "With the labor 

 unions on one side, and farming interests on the other, receiving 

 immunity from the anti-trust laws, the business interests find them- 

 selves squeezed into a very thin filling of the sandwich, being doubt- 

 ful if they are left even the rights of free speech. Seemingly the 



