December 10, 1917 



HARDWOOD RECORD 



34a 



bolDR made to "keep Memphis negroes In Memphis." These represen- 

 tatives sugKCSted that living conditions of the negroes might be sub- 

 stantially Improved If members nf the club cooperated with this organ- 

 ization which holds the leadership of the negroes In this part of the 

 country. The lumbermen concurring In this view, a special committee 

 was appointed to take the subject up further, composed of S. B. Ander- 

 son, chairman ; J. 0. Ooshorn, C. R. Ransom, R. J. Lockwood and .\. E. 

 Mahannah. 



This committee, through Col. Anderson, brought the subject to the 

 attentloix of the regular meeting. Mr. Anderson said that there were 

 several ways In which the condition of the negro labor employed In 

 sawmills and lumber camps might be Improved. lie suggested that coupons 

 be Issued by lumbermen employing negro labor, coupons that could be used 

 Id buying goods at substantially lower prices. lie said that this would 

 prevent Installment-plan buying and that It would also prevent the negroes 

 from getting Into debt and falling into the hands of the deputy sheriffs. 

 He also suggested that, it the coupon plan did not prove practicable, stores 

 might be maintained at the mills and camps where negroes could secure 

 their provisions and other supplies at reasonable prices. 



Mr. Anderson asserted with some emphasis that, if the lumbermen did 

 not take steps to Improve the living conditions of their labor, they would 

 soon have no labor. lie thought the deputy sheriff problem was the most 

 serious and said that It was up to the lumbermen to give the authorities to 

 understand that they would not, even for a moment, countenance the rob- 

 ber.v of their labor through so-called legal processes. He mentioned the 

 road tax law. whereby every man between certain ages must either work 

 so many days on the roads or pay a commutation tax of .^;>.50. He de- 

 clared that the collection of this road tax furnished the deputy sheriffs 

 with an opportunity which they improved to the utmost, as shown by the 

 fact that whereas the original bill was only .?.3.50, It was run up to $7.90 

 If It became delinquent and passed into the hands of the deputy sheriffs. 



Mr. .\nderson arranged for representatives of the Southern Industrial 

 Race Elevation Association to address the meeting of the club, but there 

 was a misunderstanding on the part of the proposed speakers regarding 

 the hour and the club deferred definite action until these men can appear 

 and explain to the lumbermen something of the difficulties under which 

 negro labor is operating and something of the problems which must be 

 solved if Memphis negroes are to be kept at home. The club is keenly 

 alive to the Importance of taking definite and tangible measures to prevent 

 further inroads on the labor supply of this city and section and the sub- 

 ject will be handled vigorously at the next meeting. 



"What is 'invested capital'"? is another question tliat was brought 

 prominently before the lumbermen when S. B. Anderson, chairman of the 

 law and instirahce committee, reati a letter from Daniel C. Roper, commis- 

 sioner of Internal revenue, asking that he call together several representa- 

 tive lumbermen and write him their ideas regarding their interpretation 

 of the term "invested capital." Mr. Anderson had prepared a reply to this 

 official and. after considerable discussion, which showed a rather wide 

 divergence of views on the subject, it was decided by unanimous vote that 

 this should be forwarded as expressing the sentiment of the entire club's 

 membershiii. The reply, which had been held up pending such endorsement. 

 follows : 



After a careful study of the provisions of the hill and discussion of the 

 different paragraphs, the consensus was that as applied to tlie lumber 

 manufacturing business, the capital stock and surplus shown on the I)ooks 

 and in actual use in the business, should bo figured as investetl capital. 

 "This Invested capital consists of mills, necessar.v equipment for operating 

 mills and lumber yards, stock of logs and lumber on hand, receivables and 

 timbered lands. .Mi tliese items are essential to the successful operation 

 of the business. There is no item that can be ellnunated. 



The opinion of the lumbermen in consultation was that the surplus used 

 In the business is a part of the invested capital, the same as the amount 

 of money paid in as lapltal stock. Some of the concerns have compara- 

 tively small capital and are operating very largely on the surnlus instead of 

 Increasing the capital stock in accordance with the demancis of the busi- 

 ness. In such a case. It would be palpal>ly unjust to figure "invested capi- 

 tal" without figuring in the suri)lus. wlilch is very largely instrumental in 

 the conduct of the business and largely responsible for the earnings of 

 dividends. 



Owing to the fact that the value of a sawmill depends entirely on the 

 ability to secure a continuous supply of tlmlier, it has been the practice of 

 lumber manufacturers to charge off a considerable per cent of the cost of 

 plants each year. If this practlo? shoulfi not be foUowcil and the mill 

 should not be charged off to profit and loss before the supply of timber Is 

 exhausted, at that time ah asset would appear on the books which would 

 be of very little actVial value. ,\ sawmill without a supply of tinilter has 

 odI.v a wreckage value. It is contended by some of the manufacturers tliat 

 In addition to the capital stock and surplus shown on tlie liooks and in- 

 vested in items named above, a fair valuathm should be placed on tlie 

 plant regardless of the fact that the value carried on the books is con- 

 siderably less than the actual cost of the plant. This item, together with 

 the capital stock and surplus, should show the Invested capital. 



Six applications for membership were filed at this meeting. They were 

 referred to the committee on membership and will be voted on at the next 

 meeting. There has been a remarkable growth in membership since the 

 club resumed Its sessions this fall. 



The attendance at this meeting was the largest Id quite a long while. 

 Ralph May presided. The usual luncheon was served. 



TIvs Hardwood Campaign 



The Northern Hemlock and Hardwood Manufacturers' .Association and 

 the Michigan Hardwood Manufacturers" Association have outlined a defi- 

 nite program for their campaign in supidylng the government. They are 

 prepared to supply and expect to supply wood for the following purposes : 



Boxes and crates, saddle trees, portable houses, gun stocks, alrpIaDes, 

 escort wagons, auto trucks, ship timbers and finish, cot material, tent poles 

 and parts, target practice supplies, and artillery wood. 



A Call to Lumbermen 



The execuHve committee of the National I.nnilier Manufacturers' Asso- 

 ciation, the members of which committee arc It. B. Ooodman, R. H. Down- 

 man, J. W. Blodget. C. -\. Blgclow. .T. \V. Embree, Edward Ilines, Charles 

 S. Keith, A. L. Paine, and \V. H. Sullivan, has sent an appeal to all persons 

 engaged In the lumber Industry In the United States, putting up to them 

 the problems which the war has brought forward for solution. The call 

 follows : 



It Is only by greater (*o-operatlon as this co-operation Is organized in 

 the associations of manufacturers and dealers that the lumber Industry 

 can Inti'lligently. promptlv. and efticlentlv respond to the demands made 

 upon it liy the adniinistrailon of tids war. 



In adilition and paramount to the nornml functions of association work 

 in times of peace, are now new and ususual tasks in which we have no 

 established precedents to guide us. The old channels of trade are rapidly 

 shifting in all Industries, including our own. The scope of our association 

 activities must now cover many new fields, miet many new conditions, 

 .solve many new problems, disseminate an entirely new propaganda. The 

 associations must, through their secretaries, oflicers and boards of directors, 

 enlist every member in a closer unity than has ever yet been attempted 

 witiiin and between the great lumlier producing regions of the country. 

 We must earnestly and collectively l)egln the task of eliminating Industrial 

 waste. Increasing production cfflclencv. economizing distribution : we must 

 summon collectively the best experts !n our ranks to fit our products to the 

 constantly arising new demands of our army and navy. -Mready we have 

 begun to meet these new demands tlirough tlie formation of emergency 

 liureaus in the different proiUuing regions working In co-operation with the 

 lumber committee of the Council of .National Defense. Our response has 

 been prompt anfl our meeting of the government needs is already a record 

 for us to take pride in. but what has been done is simple and compara- 

 tively small compared to what we will be called upon to do as the Intensity 

 tit the war administrati<ui develops as it must be developed to win the war. 

 For our industry to meet these new problems as they arise necessitates an 

 uni)recedented denuind on tlie part of our associations and upon the time 

 and thought and energy of individual lumbermen. Subscriptions, assess- 

 ments, and dues will no longer meet the situation. Every nieinher of every 

 association in the industry must do his part liy attending the regular meet- 

 ings, willingly and earnestly serving upon committees, making what may 

 apiiear to lie sacrifices in tlic matter of valuable time in carrying lui this 

 co-operative work. 



No longer can salaried secretaries and. in some cases, a mere handful 

 of principals carry on the co-operative work of tlie industr.y. however lib- 

 erally they may lie supplied with funds. Every association member must 

 put the same intelligent effort and untiring energy into his association 

 work that he puts into the operation of his private business. 



While we make this plea as an appeal to individual patriotism it might 

 also be made as an appeal to your individual and private interest, for 

 all that you have an^l all that you gain is dependent no longer so much on 

 .vour individual effort as it is upon the success of .vour co-operative work. 

 This is true of your day's business, of your prospects for the coming year 

 and of the ultimate future of your operation; it is true in a still greater 

 sense of your immediate and of your future career as a loyal American 

 citizen. 



You are needed at more meetings than you ever have dreamed of attend- 

 ing ; you are needed for more association' work than you have ever before 

 felt you had time to give and the services that are needed from you are 

 not perfunctory in character, but call for the best you have to give. 



And you manufacturer, and you dealer in lumber who are not association 

 members have plainly before you now in our great need of industrial 

 co-operation and efficiency no possible excuse that can justify you in 

 shirking the obvious duty of co-operating with your brothers in our com- 

 mon industry. 



Southern Lumbermen Discuss Car Shortage 



The shortage of ^-ars for bandling logs to the mills as well as for han- 

 dling the outbound shipments of lumlier from points in the South is going 

 to be brought as forcibly as possible to tlie attention of the proper authori- 

 ties at Washington in the inimediate future with a view to securing relief 

 for hardwood lumber manufacturers and those engaged in woodworking 

 lines south. 



This was decided at the joint meeting at Memphis, Friday, November 

 30. of the governing board of the Southern Hardwood Traffic .\ssoclatlon 

 and members of the Southern Logging .\ssociation. Eifty five lumbermeD 

 were in attendance from .\rkan.sas. Tennessee. Mississippi and Louisiana, 

 and it was agreed that authentic Information should be compiled showing 

 how lumber mills throughout the southern hardwood field are threatened 

 with suspension of operations because of the shortage of cars and that 

 this information should be submitted to officials in Washington with a 

 view to having more cars diverted Into the South, 



Twenty manufacturers who attended the meeting agreed to assist In the 

 compilation of data bearing on the shipping situation and the position of 

 the mills with respect to log supplies and they further agreed to go to 

 Washington to place the whole question properly before the authorities. 

 They are : 



.T. W. Dickson, president of the Valley Log Loading Company ; R. L. 

 .Turden. Tenrod. .Turden & McCowen. Inc.. and a memlier of the Southeni 

 Hardwood Emergency Bureau : .lohn W. McClure, Bellgrade Lumber Com- 

 pany : W. II. Itusse. Russe & Burgess. Inc.; C. B. Dudley, Dudley Lumber 

 Conlpanv ; J. E. McSwcvn, Memphis Band Mill Company; R. E. Dickerson, 

 .Frank Mav, .Mav Brothers; Frank IS. Robertson, Eerguson-ralmor Company. 

 ^Inc. ; E. T. Doolev. Doolev Lumber Company; Robert Stimson. Stlmson 

 Veneer & Lumber iompan.v" ; W. .\. Ransom. (;ayoso Lumber Company and 

 :i member of tlie Southern llardwooil Emergency Bureau ; and .lames E. 

 Stark, James E. Stark & Co.. all of Memphis; ,1. E. Swanson. II. B. Rich- 

 ardson and Baul Smith, of Helena, Ark.; Frank E. Fee, Hermoit. Ark.; 

 W. B, Morgau, Morgan Veneer Company, Pine Bluff. Ark. ; W. B. Burke. 

 l.anili-Flsh Lumber Company. Charleston, Miss., and a member of the 

 Southern Hardwood Emergency Bureau ; and A. S. Johnson, of W Inn- 

 field. La. 



J. H. Townshend, secretary-manager of the Southern Hardwood Traffic 



