Xovcinbcr 



1917 



A.NOTHEK ReTAH.EK's IdEAS 



He was followed by Robert K. Jardine, of Grand Rapids, Mich., 

 who told of the retailer's viewpoint in lumber purchases. He spoke 

 in part as follows: 



ICach rommiinity has its peculiar trade requirements; what can be 

 sold In one district can not be disposed of in another, and consequently 

 the retailer buys for his particular requirements and his inspection, 

 therefore, is biaiicd. 



So Ions as mills will not stick to uniformity of grade, just so long 

 will trouble exist between the retailer and manufacturer on inspec- 

 tit)ns. 



The average retailer l>uys from n mill whose salesman tells him he 

 has exactly the stock for this particular yard and regardless of the 

 wording of the sales ticket and acknowledgment expects exactly what 

 the salesman tolil him he had. 



For example, in one district the trade expects for a No. 1 common 

 yellow pine hoard or flooring practically clear stock; for No. 1 hemlock 

 expects Xo. 1 and not nierchantal)le; and has been educated to tliat 

 exiiectation because a few mills furnislied the retailer a superior 

 grade, and after a while he denumds stock better than the grading 

 rules call for. Imagine his situation if the mill he buys from suddenl.v 

 decides to abide b.\' the grading rules. 



If your association can devise some way of standardizing grades 

 shipped so that tlie manufacturer would refuse to ship degraded or 

 qiU"Stio!table stock, as well as to refuse shipment of stock superior to 

 grade, one great evil of the trade would be eliminated and the retailer 

 would then have no excuse for shopping around. 



The Friday afternoon session was then adjourned. 



Saturday's Session 



The Saturday nuirning session opened with I'liarlcs K. Abbott in 

 the diair. 



Rki.ative Values op Select Gkades 



W. L. Martin of Boyne City, Mich., told of the "Evolution of 

 Hardwoods in Michigan," and dwelt particularly on the merits of 

 the grades of -"selects" and its value. 



He told of the time, when twenty-five years ago operators in 

 cutting maple, would cut around the log throwing out the heart, 

 squares from 4 to 12 inches square, these being cut into firewood. 

 At this time hardwoods were sold mostly as No. 2 common and 

 l>etter, or merchantal)lc hearts out, or log run hearts out, or hearts 

 measured out. He told of the evolution of grade development neces- 

 sitated by the specific needs of different manufacturers who re- 

 quired a definition of the stock that they used. This led up to the 

 formation of the National Hardwood Lumber Association, after 

 which the development of hardwood grades began in all its glory. 

 The purpose then, as always, was to define and admit such boards 

 as experience found could be used to advantage by the majority of 

 the customers requiring certain grades. 



Mr. Martin gave some interesting figures on lumber values in the 

 old days, naming such prices as $15 for FAS maple; 10 for No. 1 

 common. He said that a cargo of thick maple was shipped to Racine 

 eighteen years ago at $14 delivered. He then went on to sketch 

 development leading up to present inspection and marketing meth- 

 ods, and turned to a discussion of conservation. His argument 

 was that one crop of potatoes raised on former forest lands in 

 Michigan will i)roiluce more than the timber which it took three 

 or four hundred years to raise on that same land. He said that 

 the country sliuuld conserve its timber and cut only what is actually 

 required for immediate use. 



Referring then to tests on relative value of tlic grade of 

 "selects," Mr. Martin read the two following very interesting 

 letters: 



Your letter of the I'Tlh. in reference to relati\'e value of the select 

 grade, we are of the opinion that in taking this select grade out of 

 the No. 1 common in basswood, birch and maple, it would take about 

 40 per cent in basswood, 30 per cent in birch and about 25 per cent in 

 maple. Taking the October 1 list as a base, think a spread of $6 in the 

 grade of FAS and select and $5 in select and No. 1 common, with the 

 No. 2 remaining as it is, but wit hthe choice No. 2 developing in ship- 

 ping No. 2 stock $:! per thousand more than the regular 4/4 No 3 price 

 and "for basswood." 



Would apply this average of ?3 also in 5/4 and 6/4, but in S/4 and 

 thicker stock make this choice No. 3 $10 per thousand less than the 

 choice No. 2 common. In birch, make 4/4 FAS $50, selects $40, No. 1 

 common $35 and No. 2 common $25, with this ratio of price prevailing in 

 all thicknesses. With the 4/4, 5/4, B/4, 7/4 and S/4. No. 3A developing 

 in shipping, No. 2 common and better $3 per thousand more than the 

 straight No. 3 common price. With the choice No. 3 common develop- 

 ing in 10/4 and thicker J30 per thousand less than No. 2 common price. 



In regard to maple, think that our list is a little bit confusing, but 

 suggest under 4/4, first pricing only FAS and select No. 1 common. 5- 

 inch and wider, 6-feet and longer, making these prices $49 and $41. 

 Then under 4/4 flooring stock, have the four grades selects. Nos. 1. 2 and 

 3A, with the prices $39. $31. $2fi and $18 per thousand, respectively. 

 With 5, 4 and thicker stock, selects $7 per thousand less than FAS. and 

 $7 per thousand more than No. 1 common. With the No. 3A developing 

 in 5/4, 6/4 and S/4. No. 2 common and better $3 over the regular No. 3 

 common price, and with the same stock developing in 10/4 and thicker, 

 $30 per thousand less than the No. 2 common price. In slnpping floor- 

 ing stock from all this northern country anywhere from 1 i,v, to 3 per cent 

 of FAS develops, also 6 to 12 per cent No. 3 common. We think that 

 by making a definite distinction between 4/4 No. 1 common and better, 

 and 4-4 flooring stock, it simplifies matters. We think the grade of selects 



is very necessaiy. as we know that in shipping out good lumber with a 

 national man on the pile, he invariably gives us the worst of it on stuff 

 between No. 1 common and FAS. This would take care of this and tend 

 to make our grades more uniform. 



Letter No. 2. 



I am pleased to acknowledge receipt of your communication of 

 October 27th. and note that you are going to discuss the subject of 

 "the selects grade" of hardwood and its relative value at the North- 

 ern Lumbermen's Salesmanship Congress to be held at Bay City. 

 Michigan the 16th and 17th of this month, and while from the fact 

 that it is just recently that we started to put up some o fthis grade in 

 the yard, I am possibly not in a very good position to give you much 

 information. I would state, as far as we have gone, we have foimd 

 that it cannot helji but result to our advantage. 



The ordinary grade of No. 1 common, as we have been previously 

 putting it out, would probably produce of this new grade all the way 

 from 25 to 40 per cent, also the grade of No. 2 common would possibly 

 develop from 10 to 15 per cent, and when .\'ou can get a relati\-e in- 

 crease in value of from $10 to $20 per thousand, there is no question, 

 of course, as to the ultimate benefit, and bear in mind at the same 

 time it is our opinion that we cannot see as the selection is prac- 

 tically detrimental to the No. 1 or No. 2 grade, that is, for the ordi- 

 na.ry purpose of a cutting-up nature for which these grades are sold. 



In our own particular case here we are simply experiencing on the 

 4/4 inch thick stock and in birch only, only cutting small cjiumtities 

 of basswood and maple — we have not decided to experiment on these 

 woods as yet. Of course, there is another feature in connection with 

 this grade, and that is that it is practically a sash, door or interior 

 trim product, and naturally, as there has been very little business with 

 this class of trade for the past eight or ten months, we are not any 

 of us in a position to determine just how the consumer is going to 

 take to the stock, and especially with reference to the price he will 

 pay for it. 



He gave the following as results of actual tests so far reiuirted 



on this grade: 



OLD RULES. NEW RULES Selects 



872 ft. 6/4 FAS maple. X67 ft. 6/4 FAS No. 1 com., 35 Mi %■ 



11,441 ft. 6/4 No. 1 com. 4,145 ft. 6/4 selects. No. 2 com., 3 4/10% 



2,976 ft. 6/4 No. 2 com. 7,277 ft. 6/4 No. 1 com., selects. 



2,870 ft. 6/4 No. 2 com. 



15,289 ft. total. 



12,243 ft. 4/4 No. 1 com. maple. 

 7,681 ft. 4/4 No. 2 com. maple. 

 2,236 ft. 4/4 No. 3 com. maple. 



15,159 ft. total. 



4.129 ft. 4/4 selects. No. 1 com.. 33.4%. 

 8,239 ft. 4/4 Nos. 1 and 2 com., 0.2%. 

 7.663 ft. 4/4 No. 2 com., selects. 

 2,233 ft. 4/4 No. 3 com. 



22.160 ft. total. 



17,034 ft. 4/4 No. 1 com. maple. 

 4.596 ft. 4/4 No. 2 com. maple. 

 471 ft. 4/4 good face No. 3. 

 558 ft. 4/4 regular No. 3 com. 



22.264 ft. total. 



3,567 ft. selects, No. com., 20.3'/,. 

 13,567 ft. No. 1 com.. No. 2 com., 0.2%. 

 4,496 ft. 4/4 No.2, selects. 

 471 ft. good face No. 2. 

 55S ft. 4/4 No. 3 com. 



22,659 ft. total. 



22,659 ft. total. 



Average of above 28.5% of No. 1 common grades selects. 

 .\\'erage of abo\-e 1.4% of No. 2 common grades selects. 



The last test, however, he said is not a fair average as some of 



tlie best common has been put with FAS. He said that in inch 



maple about 30% of common will grade selects, but that in 2- or 



3-inch this percentage will be much larger. In speaking of the 



consumer's viewpoint, he said: 



W'e believe the consumer when he becomes familiar with the selects 

 grade will find that for all practical purposes the selects grade will be 

 equal to seconds. As to price, it has been suggested that in all woods, 

 except birch, the selects should be at a price half way between FAS and 

 No. 1 common, and the No. 1 common left where it is. 



Whose Ox Is Gored 



H. H. Butts of the Park Falls Lumber Compnay, Park Falls, 

 Wis., spoke on the subject, "'Whose Ox Is Gored." He dwelt 

 mainly on the question of terms of sale and told of the work done 

 by the National Lumber Manufacturers' Association on revision 

 of terms which will be adopted nationally when approved by nine 

 of the eleven affiliated bodies. He recited the proposals and then 

 listed the benefits that will be derived both by the shipper and the 

 purchaser by their general adoption. 



Mr. Butts was followed by O. T. Swan, secretary of the Northern 

 Hemlock and Hardwood Manufacturers' Association, who gave some 

 very interesting data and figures on the relative strength of hem- 

 lock and hardwood. He emphasized the need for a more thorough 

 understanding of these questions in these days of rapid fluctuations 

 in markets for different woods. 



This concluded the Saturday morning's sesKion. 

 Saturday Afternoon 



Secretary J. C. Knox of the Michigan Hardwood Manufacturers' 

 Association, opened the Saturday afternoon's session with a short 

 talk on the Michigan conception of the Merrill conference, and 

 was followed by Enos Colburn of Green Bay, Wis., whose subject 

 was "The Salesman's Viewpoint." 



Mr. Colburn, who is in the commission business, criticised many 

 of the methods of manufacturers, and said that with present meth- 

 ods of selecting men for selling positions and of giving recognition 

 to the importance of the sales department, either in a pecuniary 

 way or otherwise, little progress could be made. He maintained that 



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