June 25, 1917 



HARDWOOD RECORD 



45 



nomieal extension of theii' functiou in the National field, as the plan 

 was approved by the board of direetors. The statement in part follows : 

 The theory is that the National shall make one stroke only when 

 the making of one stroke saves tlie making of twelve strokes by the 

 afiiliated associations. This is the irreducible minimum of National 

 activity and in limiting ourselves strictly to this minimum field of 

 activity, we propose an ever increasing maximum of co-operative 

 intensity. 



The means at our disposal, it is proposed, shall be the amount of 

 assessment agreed upon by all of the regional associations, and it has 

 been proposed that this shall be three-quarters of a cent a thousand, 

 or approximately $100,000 a year. With the cumulative data and 

 other working data now in hand, this limit will enforce but little 

 curtailment along any desirable lines of work, but will necessitate a 

 careful sifting of the many attractive projects that might be under- 

 taken and the selection of only the most pressing and urgent of 

 these. It will also necessitate a reorganization of the secretary's 

 office with the view of reducing the overhead and eliminating the 

 work that can as well be carried on by the regional associations, and, 

 finally, it requires that the lumbermen of the regional association 

 give more of their time and thought to the work of the National 

 association. 



To promote this individual co-operation it is proposed that each 

 general committee of the National shall be composed of the respective 

 chairman and if necessary of the entire committee or bureau of the 

 regional association in each special department of association work. 

 The activities of the National association in addition to the Blue 

 Book and inter-insurance may be classed for convenience under four 

 general divisions, as follows: Trade extension. National co-ordination, 

 legislation, and National market information. 



It is proposed that to foster the idea of association co-operation the 

 working force of the National, consisting of a general secretary, the 

 clerical force and the engineering and research workers, will all, as 

 occasion arises, be at the service of each, although it of course is 

 understood that the divisions wiU be more or less distinct and each 

 directly under the supervision of its general committee. 



Mr. Goodman in discussing each line of activity outlined methods 

 of promoting and defending the use of wood for various purposes. ' 

 He said that about eighty per cent of the southern pine and western 

 lumber sold involves no question of competition, but rather a question 

 of whom it shall be bought ; that about twenty per cent is sold in com- 

 peting markets in central territory, from Iowa to New York. He said : 

 With three-quarters of this competitive business in the central terri- 

 tory there is no thought on the part o£ the buyer to use anything but 

 wood. He is open to persuasion, however, as to what kind of wood to 

 use. For the individual manufacturer to reach this prospective pur- 

 chaser would be impossible, but jointly, through your associations, you 

 are reaching him successfully, and more and more successfully as you 

 develop your promotion campaign. 



But there is still a five per cent of your market in which the buyer 

 has first to be convinced that be should use wood at all. While each 

 association can help in convincing this five per cent, the problem is ob- 

 viously the same for all of us and therefore one in which we can com- 

 bine forces and work to advantage through a single agency. This is 

 the basis of all national trade extension and there is a possibility of 

 development of this field even up to the point where we might be mar- 

 keting ten per cent of our product in the substitute zone. 



On the subject of defense of wood's market, Mr. Goodman urged 

 co-operation. He said: 



Your contribution of funds and service brings with co-operation results 

 one hundred times greater than would come from the same effort ex- 

 tended by separate agencies. The work here is before common councils 

 for the revision of building codes and fire limits extension, and before 

 government engineers and architects and in the great central com- 

 petitive region before state authorities and individual engineers and 

 architects. 



On the question of national co-ordination, Mr. Goodman's statement 

 was as follows: 



The same analysis of the principle set forth above applies to the lum- 

 berman's relation with the federal, state and city legislative, admin- 

 istrative and taxing powers, to our co-operation with the government 

 commissions for the public interest, and our relations to the railroads, 

 export trade conditions, regulation of production, conservation and the 

 development of a national forest policy. A large part of this work is 



properly the task of individual manufacturers, a still greater part falls 

 to tbe regional association, but a very large proportion of possible gov- 

 ernmental co-ordination can be covered only through a national agency. 



He cited successful work already done by the National as proof of 

 the ability of a central body to get results. 



To handle the work of national co-ordination it was agreed that 

 this department should be conducted by a bureau or central committee, 

 composed of the presidents of each of the regional associations, to- 

 gether with members from each lumber producing state, so that its 

 undertakings will at all times have the support of an organized body 

 of men specially interested in and familiar with these problems in 

 their respective states. At the service of this bureau should be the 

 engineering and statistical force of the association, and these forces 

 should be ready to supply expert testimony and pertinent data as 

 needed. 



The statement suggests that after operating budget is provided for 

 a contingent fund should be reserved out of the annual income, to be 

 used as emergencies may arise. Mr. Goodman's statement suggests 

 that out of the total of $100,000 the emergency reserve should be at 

 least $25,000. He said: "Eemember this united service for the entire 

 industry is the only assurance you have of a continuous industry. ' ' 



On the question of national market conditions, Mr. Goodman had 

 the following to say : 



We, ourselves, must take up this work. We must enlist in it the 

 co-operation of the men in every region who are best posted on market 

 conditions, on actual prices of lumber sold and of selling and manu- 

 facturing prospects. We must collect and disseminate this information 

 in a thorough and practical manner. This also is work that must be 

 primarily developed in the regional associations, but to be of complete 

 value it requires national co-operation, and I propose that the bureaus 

 of statistics or educational information or on market conditions of all 

 the regional associations shall co-operate through a general committee 

 of the National. It is better for us to get and give this information from 

 and to every producing region than to let the wholesaler or buyer be the 

 source of our market knowledge. 



On the subject of association co-operation the plan as quoted by 

 Mr. Goodman is as f oDows : 



It is proposed that this division of our activity shall be concerned 

 with efficiency in association work, as it may be outlined by an advisory 

 committee on organization and methods, composed of the secretaries and 

 assistant secretaries of the regional associations. These secretaries shall 

 meet quarterly at each of our great producing centers in turn to discuss 

 all phases of association work, both regional and national, to the end 

 that the National secretary may have the benefit of their criticism and 

 suggestion as to his work, and to the further end that each regional 

 association secretary may have the benefit of first-hand knowledge of all 

 that is best and most successful in the work of each of the other regional 

 organizations. 



This advisory committee will constantly define limits of national and 

 regional work to prevent unnecessary duplications ; will iron out un- 

 necessary friction and misunderstandings between the producing regions 

 and will be the means of providing for many incidental co-operative 

 efforts and undertakings by the regional associations that may not neces- 

 sarily be considered as part of the National association work. 

 Discussing the general organization Mr. Goodman said : 

 Each affiliated body now has a satisfactory representation on the board 

 of directors. There is an executive committee that approves all expendi- 

 tures, all of which are on the budget system. It is proposed that this 

 budget system shall divide our available funds into general appropriations, 

 leaving to the department work detailed budgets proposed by their re- 

 spective advisory committees and approved by the executive committee 

 of the directors so that each regional association is assured of the wise 

 and economical expenditure of its contributions. 



A secretary-manager will be the sole head of the operations of the 

 association under the plan of supervision I -have outlined or as may be 

 determined from time to time by tbe board of directors. Our two sub- 

 sidiary corporations are also to be under his management, subject to the 

 control of their respective advisory committee. 



A Pacific coast committee was decided upon in order that special 

 western lumber conditions would have adequate representation in the 

 work of the National association. Mr. Goodman said that Pacific 

 Coast problems are essentially national problems. 



According to Mr. Goodman 's calculations the work can be carried 

 on with the funds available, provided there is concentration of effort, 

 economical management and support and co-operation given the 

 National association by the affiliated bodies and individual members. 

 As the work develops, he said, the National will require additional 

 contributions from the regional associations in the coming years. 



