36 



Hardwood Record — Veneer & Panel Section 



March 25, 1922 



ments will be made: First, against the plywood manufacturing 

 members; Second, against the thin lumber manufacturing mem- 

 bers; Third, against the associate members as provided for in the 

 new by-laws. 



"The assessment against the thin lumber manufacturing mem- 

 bers w^ill be made along the same lines as followed in the plyw^ood 

 group, i. e., so much per thousand dollars sales, but as to what this 

 assessment shall be per thousand dollars, your committee refrains 

 from suggesting without more definite knowledge of the amounts 

 of business being done by the veneer manufacturers. 



"The proper assessment being arrived at, we are then placing 

 sufficient funds in the hands of the national treasurer to pay your 

 commissioner or secretary, to pay the services of the cost engineer 

 and such running expenses of the national association as the neces- 

 sities warrant. 



"If by reason of some necessities or activities of an individual 

 group, it is found expedient to incur further expenses, we will say 

 along such lines as advertising, or propaganda of some description, 

 it shall be up to the membership of the individual group by special 

 and additional assessment of its individual members to raise the 

 funds necessary for this special work and shall not be paid by the 

 national association unless concurred in by the national associa- 

 tion. 



"Gentlemen, with these remarks w^hicK your committee seeks to 

 clearly put before you and submits as a plan of reorganization 

 which can be worked out, we desire to add that the only good you 

 get out of an association is w^hat you put into it. 



"With the meager assessment the association has had, it is as- 

 tonishing that it did not go on the rocks long ago, and w^e can only 

 believe that the half-hearted desire of the membership for an asso- 

 ciation, and the love and affection for our secretary, Howard S. 

 Young, has kept it together at all. 



"Gentlemen, we are standing today at a crisis in the industry. 

 We are being sorely tried and assailed from all sides. We are 

 bowed down with taxes, and we are racked with excessive freights 

 both on inbound and outbound materials. We hear rumblings of 

 additional taxes yet to come — from God knows where — for bon- 

 uses, we are handicapped by overheads that cannot possibly be 

 applied to the decreased business we are doing today, but by stand- 

 ing together, pooling our interests, making our fight where neces- 

 sary, a fight of an association instead of individuals, we may not 

 hope to gain any ground but we may at least hope that we can 

 hold our own and maintain an even keel." 



Needs of Association Work 



The discussion of the merger question was opened by W. W. 

 Knight of the Long-Knight Lumber Co., Indianapolis, Ind., who 

 read a paper on the "Needs of Association Work in the Veneer and 

 Plywood Industry." Mr. Knight discussed his subject under ten 

 headings, each heading being a function that a trade association 

 might perform for makers of thin lumber and plywood. These ten 

 headings are as follows: "To foster trade, encourage friendship, 

 encourage high standards, eliminate evils of ignorant competition"; 

 to give a "knowledge of costs," handle "credits," do "legislative 



work," handle "mutual insurance," establish and administer a 

 "code of ethics," and conduct "arbitration." 



Plywood Association's Accomplishments 

 Following this the subject of "What has been accomplished by 

 the Plywood Manufacturers Association" was taken up, and 

 handled under the headings, "Traffic." "Trade Extension" and 

 "Costs." Traffic was discussed by C. B. Allen, Allen-Eaton Panel 

 Co.. Memphis, Tenn.; Trade Extension by E. V. Knight, New Al- 

 bany Veneering Co., New Albany, Ind., and Costs by F. B. Ward» 

 Hanson-Ward Veneer Co., Bay City, Mich. 



Mr. Allen had the following to say: — 



"There is no more serious problem confronting this industry 

 than the question of transportation. We are vitally interested in 

 efficient and economic railroad service. But we are likewise vitally 

 interested in seeing that veneers and plywood are able to move to 

 distant markets in competition v^^ith manufacturers at such markets, 

 and with our competitors located closely adjacent to these markets, 

 as well as the manufacturers of lumber. Not being a traffic ex- 

 pert. I am unable to adequately express to you the tremendoui* 

 handicap under v^^hich w^e labor as a result of the present exorbi- 

 tant freight rates. You are all familiar with our efforts in Docket 

 8131 and the subsequent findings of the Commission that lumber 

 rates, or rates closely related to lumber, should be applied to ply- 

 wood and veneer. You are likewise familiar with the fact that we 

 now have pending before the Interstate Commerce Commission 

 for oral argument a case asking the commission to issue an order 

 directing the carriers to carry out its findings in the early case. 

 We still have an up-hill fight, and to keep pace with the situation 

 we must be strongly organized to see that the needs of this great 

 industry are not subjected to any new discriminations. Justice will 

 result from a united industry. 



New York to Memphis Rate Increased 



"You know that rates w^ere advanced in August, 1920; but few 

 of you realize that subsequent to that date other advances have 

 been made in the class rates. These advances were made under 

 the guise of removing discriminations under that section of the 

 transportation law which provides that a short haul point shall not 

 pay more than a long haul point. For illustration, the rate from 

 Memphis to New York, under this last advance which became effec- 

 tive last month, was increased 2 7 cents per 100 pounds. Let me 

 illustrate further and show^ you a few examples in the savings which 

 w^ill result in transportation cost if we can carry our fight to a suc- 

 cessful conclusion. The transportation charges on a car of 50,000 

 pounds of veneer and plywood from Oshkosh to New York City is 

 $395 a car. We have asked, and w^ith a united industry can obtain, 

 transportation charge of $237.50 on veneer and $262.50 per car 

 on plywood. From Bay City to Grand Rapids, the present charge 

 is $130, we should have a rate of $90 per car. From Cadillac, 

 Michigan, to Jamestown, New York, the rate on plywood per car is 

 $212.50; we should have a rate of about $ I 90. The rate on veneer 

 from Louisville to Boston is $330 a car; this rate should be $210 a 

 car. The rate on veneer from Jackson, Tenn., to Grand Rapids, 

 Michigan, is $367 per car; the rate should be $190 per car. The 

 {Continued ov imiti' 4'J) 



F. B. Ward, Vice-President representing Plywood 

 group 



Kline, Treasurer 



H. J. Barnard, Vice-Presidtnt representing Quartered 

 Oak Veneer group 



