October 2o, 1917 



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^ The Lumberman s Round Table ^ 



The Value of Government Business 

 One of the iniiiciiial luirihvood ]iri)cliu.i'is uf tlio cuuiitry, comnieiit- 

 iiig recently on the large amount of government business now being 

 handled by his concern, em|>hasized the fact that it is highly desirable 

 in many ways, but especially in the expedition with which it can be 

 handled. Government materials have the right of way, and hence 

 when a UimhernKin has an order to supply lumber to Uncle Sam or to 

 some contractor who needs it in making a product being used by the 

 government, he is in a position to get service from the railroads which 

 might not be available otherwise. 



In fact, this (lartieular lumberman said that government repre- 

 sentatives usually see to it tliat cars are furnished promptly to take 

 care of the movement of materials being used on contracts for army 

 materials and supplies. With the scarcity of cars the biggest diffi- 

 culty in the way of keeping business up to the right jioint, it is obvious 

 that this is a very satisfactory feature of government work, entirely 

 apart from the matter of assisting the country in the successful prose- 

 cution of the war. 



This situation may be rather rough on the private buyer, and un- 

 doubtedly is handicapping him in many ways; but right now sprvi<'e 

 of the nation comes before everything, else. 



Changing the Business Line-Up 



The business which is cast in liard and rij^id lines is the one which 

 is having most difficulty getting along today. 



Conditions have changed so rapidly in the past year that only the 

 lumberman who is alert mentally, and who has j)romptly changed his 

 alignment to meet the new situation as it has developed, has been in 

 a position to make the most of his opportunities. 



Mobile armies are the only ones that are worth while. Force must 

 be movable and elastic to be most effective. So with business organi- 

 zations; they must be in shape to respond to and to adapt themselves 

 to changing conditions of every kind. 



For example, tlie demand for hardwood lumber has changed in 

 many ways. Probably the most active mover at present is 6/4" lum- 

 ber, because so many items used in war work, such as truck body con- 

 struction, aeroplane stock, etc., are wanted in that thickness. The 

 lumberman who realized the situation cut more 6/4" and less 4/4" 

 lumber.' In the same way the hardwood man who kept up with condi- 

 tions and realized that quartered oak was going to be used in making 

 aeroplane propellers put himself in line to supply material for that 

 liurpose, instead of waiting for the government to send an inspector 

 around and tell him what he must ])re]>are to do. In short, the suc- 

 cessful lumberman today is the man who is not asleep at the switch, 

 but who is watching for every new development, and getting his 

 whole organization in line with it. 



Training the Office Man 



The offi<'e manager of a certain hardwood concern, who is regarded 

 as an extremely eflSeient member of its organization, is naturally fully 

 occupied with the routine of oflice work, and seldom gets out into the 

 yard or has occasion to visit the mills where the product which the 

 concern is selling is manufactured. 



Yet he has had intelligence enough to appreciate the fact that 

 his knowledge of the business will necessarily be limited by his knowl- 

 edge of production, and of the practical details of lumber manufac- 

 turing. Therefore he has lost no opportunity to acquaint himself 

 with the situation, and to improve his efficiency along these lines. 



Many another man, content to know that his work inside the office 

 was satisfactory, would have refused to take an interest in the busi- 

 ness outside of his particular domain, but would have confined his 

 efforts to such matters as accounting, billing, etc. These are impor- 

 tant things, of course, but they are not all-important. 



The office man referred to recently had a vacation of two weeks 

 coming to him. He could have spent this time at home or visiting the 

 bright lights of the big cities. He might have gone fishing or rested 

 in the country. But he did none of these things. Ho asked that he 

 be Bent to the mills during that time, explaining that the change and 

 outdoor life would be pleasant and agreeable to him, and that it 



wouhl enable him to ilo better work for the company, by reason of 

 his enlarged outlook and his increased familiarity with the production 

 end of the business. 



The head of the concern was highly pleased, of course, and was 

 more than glad to arrange matters in this way. It goes without say- 

 ing that the office manager will be of more value to his coni|>any than 

 heretofore, and that the time invested will be of real iK-nefit to him 

 and to his employers. There is no doubt that enthusiastic effort in 

 this direction will inevitably make its own reward; ami that it is ap- 

 preciated liy the concern which gets the immediate benefit is also the 

 rule iiiid nut the exce[ition. 



Excess Profits and Working Capital 



iJni' or the unfortunate features of the war tax on excess profits Ls 

 that in most cases it must be taken from working capital and not 

 from an idle surplus unemployed in the business. 



That is to say, the i)rofits of an active business, and especially an 

 active lumber business, are not as a rule cash profits, but are repre- 

 sented by inventories of lumber on hand and in transit, book accounts, 

 plant and equipment, etc. Even though these are large and represent 

 an excellent margin of profit on the business handled, it is unlikely 

 that the lumber concern is '"flush" in the sense that it is overbur- 

 dened with cash. ■ 



Concerns which have done well have gone ahead increasing their 

 facilities. The wise lumberman who has made money has put it back 

 into his business, either by buying additional timber, adding to his 

 manufacturing equipment, so as to produce lumber more efficiently 

 and more economically, or extendng his business along some other 

 line. Hence the excess profits tax means, in effect, the withdrawal of 

 working capital from a business which in most cases needs that capital. 



The war revenue measure is a law anil will be enforced, but it seems 

 worth whUe to call the situation to the attention of lumbermen, so 

 that in planning their business tliey will take into account the provi- 

 sions that will have to be made for the payment of the tax. Likewise, 

 it is to be hoped that this burden, justified only by the extraordinary 

 needs of the government, will be lifted as soon as conditions warrant. 



Campaigning Against Wood Wheels 



Are manufacturers ol wood wheels for motor trucks and other auto- 

 mobiles going to allow their product to be put on the taboo list with- 

 out an effort? 



The new standardized motor trucks of the government, two of 

 which have been put in service already, are fitted with wooden wheels, 

 l>ut one of the princijial motor truck publications comes out with this 

 statement : 



"It is indeed unfortunate that the two standardized United States 

 Army motor trucks will be fitted with wooden wheels when the govern- 

 ment is anxious to have nothing but metal wheels. There seems to be 

 some doubt in the mind of the board having the standardized truck 

 work in hand whether a sufficient quantity of metal wheels can be had 

 in time." 



This publication then proceeds to enlighten the government by pub- 

 lishing statements from leading manufacturers of metal wheels, who 

 say that they are in a position to produce them in sufficient quantities 

 to take care of the demand in connection with the standardized trucks. 



Wood wheels have been standard equipment in the automobile field 

 for a long time, and it is doubtfiU if there is any record showing that 

 they have not held up in service. There likewise seems to be no reason 

 to doul)t the ability of manufacturers to supply them. But in view of 

 the aggressive work being done to give metal wheels for government 

 trucks the precedence, it looks as if manufacturers of wood wheels 

 and parts for them ought to take some interest in the situation before 

 a final and adverse decision is rendered. 



Many of the box factory owners are kicking and fussing about 

 tho increased price of box lumber. Why not get more for tho boicsf 

 With a demand that taxes the box making capacity of tho country 

 it should be comparatively easy to get any reasonable increase in box 

 prices. 



