June 2o, 1917 



HARDWOOD RECORD 



19 



encourage the importation of a foreign proiluct "which paid no tribute what- 

 ever to any railroad in this country; that any difference in the cost of the 

 oak which was to enter into the new Imildinj; in favor of the Japanese 

 product as against American oak would he more than offset by the revenue 

 that would result to the Southern Pacific Company in the transportation 

 of the particular lot of lumber going into the building, for the committee 

 offered to guarantee that every board of the stock, if purchased in this 

 country, would go West over Mr. Sproule's railroad, and that the prestige 

 .that would accrue to the Southern Pacific Railroad as a result of its sup- 

 port of our home market would be an asset of material value. But. while 

 the representations of the committee were received in a most courteous 

 manner, it was decided after a very voluminous correspondence that the 

 only concession that could be made was to anient^ the si»ecifications to read 

 oak instead of Japanese oak, thus allowing the producers or dealers in 

 American oak to submit bids on their product — but that price was to be 

 the determining factor; and, as a foregone conclusion, American oak lost 

 out. 



The same set of conditions w.as presented in the construction of an- 

 other building in San Francisco by the Savings Union P.ank & Trust Com- 

 pany, a considerable portion of the space in which having been contracted 

 to the Santa Fe Railway. Japanese oak had been spocilied as trim for the 

 building. This committee took the matter up with Mr. Ripley, president 

 of the Santa Fe, who disclaimed any authority in the matter of the con- 

 struction of a building in which his company were only to he tenants, but 

 offered to use his" good offices with the owners of the building to have the 

 specifications amended to include American oak — which I believe was 

 done : but. owing to the difference in price, .\merican oak lost out. 



Then, again, the University of California proposed to erect two new 

 buildings on the campus at Berkeley, the Benjamin Ide Wheeler Hall and 

 the llillgard Hall. .4s before, Japanese oak had been specified. The mat- 

 ter of changing the specifications was taken up with the regents of the 

 University along the lines that it was inconsistent for an institution 

 owned by the state of California to lend encouragement to the producers 

 of Japanese oak when all of the traditions of the state had been in opposi- 

 tion to all things oriental, going so far as to almost project this country 

 into war by the passage of anti-Japanese legislation ; but all the satisfac- 

 tion that the committee obtained was the promise of consideration to the 

 representations it made. The matter was later taken up with Gov. Hiram 

 Johnson, ex-offlcio member of the board of regents, and a reply was received 

 from his secretary, under date of October 2, that the governor was absent 

 from town, but as soon as he returned he would give the matter his atten- 

 tion and advise the committee. He evidently never got back, because the 

 committee has not heard from him up to this date, and Japanese oak went 

 into these two buildings — because of difference in price. 



The conspicuous failure of the committee in these three instances to ac- 

 complish anything for American oak by the power of moral suasion teaches 

 the lesson that a sentimental theory stands no show of winning when placed 

 in opposition to an economic fact. 



There are, however, two methods which can effectively be employed to 

 restrict the invasion of our markets by Japanese hardwoods — methods 

 which should be employed conjointly. One is to increase the cost of 

 Japanese lumber when landed on our shores by levying a duty that will 

 equalize the difference in the cost of production existing between American 

 lumber and Japanese lumber ; and the other is by maintaining as low a level 

 of prices on American lumber in the West coast market as possible by the 

 maintenance of reasonable freight rates from producing territory to the 

 coast. 



This government has appointed a Foreign Trade Extension Committee 

 to develop the trade of this country in other lands after the war is over. 

 This is doubtless well ; but the government should be quite as interested in 

 the preservation of its home market as it is in the extension of our trade 

 to foreign markets ; and the committee believes it will be, if the case is 

 properly presented at an opportune time — which is, probably, not now. It 

 would, in the judgment of the committee, be in rather bad taste at this 

 time to start an industrial conflict with one of our allies ; but when the 

 proper time conies, when the great readjustment takes place after the war 

 is ended, when all the countries of the world once more recast their spears 

 into pruning hooks and their swords into plowshares, it will be up to this 

 country to look alive to the industrial and commercial interests of its own 

 citizenship, and it will also be well for the lumbermen to be fully organized 

 and prepared to demand full and complete protection to their interests. 



In the meantime sight should not be lost of the matter of freight rates 

 on lumber to the Pacific coast. An adequate attempt should be made to 

 develop the mutuality of interests that exists between the producers of 

 hardwood lumber and the transcontinental rail lines to the end that each 

 may co-operate with the other to exclude from this country that which 

 menaces the interests of both. 



While this association took the initiative in the effort to restrict the 

 importation of Japanese hardwoods, it is not now fighting the battle alone, 

 but its efforts are being ably seconded by the American Oak Manufacturers' 

 Association, the Oak Flooring Association, and by many other organiza- 

 tions whose interests are either identical or allied. 



It is the judgment of this committee that the committee should be con- 

 tinued (though not necessarily in its present personnel) in onler that the 

 work already begun under the auspices of this association may be carried 

 on until the object sought for has been satisfactorily accomplished. 



Report of Inspection Rules Committee 



John W. MeCluro, chairman of the Inspection Eules Coniniittee, 

 read the following report for his committee : 



In considering the subject of inspection rules certain fundamentals must 

 be kept steadily in mind. Inspection rules do not lead trade into new 

 channels : they f))lbiw and in a sense standardize merchandising methods 

 by describing and defining accurately grad^values which have developed 

 and have been recognized in the customs of the trade. Thus a buyer and 

 shipper, though separated by a great distance, may arrive at an Immediate 

 understanding of the standard of grade-value and leave only the price to 

 be agreed upon. 



Again, inspection rules do not put value into lumber, but can only de- 

 scribe the value which is contained in the lumber. Just to the extent that 

 rules describe uniform grade-values which meet the needs of our customers 

 do they enable us to realize more uniform prices for our product. Thus 

 do inspection rules become a leading factor in good merchandising. 



It might be well to recall that the time was when even the necessity for in- 

 spection rules was a much-argued question. Now that the necessity is freely 

 admittetl and this association stands as a concrete expression of that neces- 

 sity, we should bear in mind that the necessity for a standard of inspec- 

 tion is of far greater importance than the rules themselves. If the rules 

 honestly and fairly attempt to describe the grade-values accepted by the 

 trade, slight imperfections in the rules themselves may be overlooked for 

 a time, and corrected later as the defects become apparent. Changes in the 

 customs of the trade and changes in manufacturing conditions sometimes 

 make necessary certain changes in the rules, so that our inspection rules 

 are continually in a state of evolution, although they are founded upon 

 principles which are themselves unchangeable. Stability in our grading 

 rules is desirable in the sense that the rules should not be changed to con- 

 form to every passing fluctuation of the trade, but there is a vast difference 

 between stability and inertia. If rules are never changed to meet the 

 greater tides of trade they will be overwhelmed and rendered dead and 

 useless by the very tides they attempt to resist. No material changes 

 have been made in our rules for a period of four years. 



The report of our committee has been in your hands for more than 

 thirty days, and doubtless has received your careful thought and study. 

 Our report speaks for itself. These recommendations represent the 

 unanimous judgment of the committee, and furthermore represent a great 

 amount of time, study, thought and effort. These men, who may be said 

 fairly to represent every branch and every section of the hardwood trade, 

 have come together on the ground of mutual helpfulness and co-operation, 

 have dropped selfish and sectional interests, and have approached this 

 work in a broad and generous spirit. The fact that all differences among 

 our committee were harmonized leads us to feel that the result of our 

 work will be acceptable to you. Since our report was completed our 

 nation has been drawn into the great world conflict, and we are living 

 daily amidst events of such tremonilous importance to the future of the 

 race, to humanity and civilization that the mere discussion of inspection 

 rules, a matter which otherwise might be considered of vital importance 

 to our business, seems to sink into insignificance by comparison. 



Our committee has made an earnest effort to recommend only such 

 changes in the rules as will conform to changed conditions in the trade, 

 and such additions to the rules as are made necessary by new demands 

 for our iuspei;tion service. 



The changes recommended are few. Your interest will be directed prin- 

 cipally to the proposed rule for selects. On account of the wide spread 

 of values between our present grades of firsts and seconds and number 1 

 common, a strong demand has arisen for an intermediate grade. We have 

 recommended a grade of selects describing boards which will grade not 

 below seconds on the best face, and not below No. 1 common on the reverse 

 side, and admitting into the grade other boards of equal value. We believe 

 the rule we have recummended is a practical and workable rule and that 

 all practical inspectors will agree that this is just their idea of what a 

 grade of selects should be. 



The proposed rule for wagon box boards is a practical rule which meets 

 all the requirements of the wagon manufacturers, and at the same time 

 produces a larger percentage of box boards from the log run product. 

 Thus is brought about a condition of mutual advantage to the wagon 

 maker and the lumberman, since the percentage of box boards produced 

 under the present rule Inis been so small as to run the prices up to very 

 high figures. 



Under the bead of additions to the rules, the most important feature 

 is the recommendati'.u of an entirely new and independent set of inspec- 

 tion rules for cypress. A great deal of time and thought was put into the 

 construeti<in of these rules, especially by Jhose members of our committee 

 manufacturing and interested in cypress. Demands from the membership 

 of the association interested in cypress urged upon us the necessity for 

 the adoption of cypress rules independent of any other association and in 

 constructing the proposed rules, your committee has endeavored to follow 

 as much as possible the general plans and principles upon which are based 

 our rules in their entirety, and at the same time describe the grade-values 

 adaptable to a large proportion of the cypress-consuming trade. We believe 

 that the proposed rules will appeal to and have the support of a majority 

 of the cypress trade. 



The proposed rules for bending oak describe accurately the special 



