February 10, 1918 



igngJOTiroa^tfiraMairgg 



Hardwood Manufacturers^ Annual 



Sounding the keynote that "the foundation of society is not com- 

 petition, but co-operation," and with ringing declarations that 

 lumbermen the country over would devote their every power and 

 resource to our present and immediate task of winning the war. 

 President B. B. Burns, of the Hardwood Manufacturers' Associa- 

 tion of the United States, opened the annual convention at the 

 Sinton hotel, Cincinnati, Tuesday, February 5. Patriotism and 

 co-operation were predominant in all addresses. President Burns 

 told the delegates that secrecy was no longer the thing in modern 

 business. He pronounced the open competition plan a great suc- 

 cess. One striking fact in the course of the morning session was 

 the hint rather broadly given 

 that a merger of various asso- 

 ciations in the lumber busi- 

 ness might be effected in the 

 , no dim future. ' ' There are 

 many signs that the consum- 

 mation of a stronger organi- 

 zation of manufacturers, cov- 

 ering the entire hardwood 

 producing area of the country 

 is not far distant," said Mr. 

 Burns. The address of the 

 president, in full, follows: 



President's Address 



We come together at this, the 

 sixteenth annual convention of 

 the Hardwood Manufacturers' 

 Association of the United States 

 with a most gratifying record 

 of achievement and an outlook 

 for the future more promising 

 than ever before. The details 

 of the year's work will be laid 

 before you by the secretary. 

 Tou did not come here to listen 

 to me, and I shall not endeavor 

 to make a speech. It is suffi- 

 cient to point out that there are 

 many signs that the consumma- 

 tion of the wish of every lumber- 

 man for a strong organization of 

 manufacturers covering the en- 

 tire hardwood producing area of 

 the country is not far distant. 

 The rapid increase in strength 

 of our organization and the re- 

 cent organization of the Amer- 

 ican Hardwood Manufacturers' 

 Association at Memphis are evi- 

 dence that the lumbermen recog- 

 nize more clearly than ever be- 

 fore the need of organized activ- 

 ity. I hope and believe that you 

 will i3nd the program which has 

 been arranged for this conven- 

 tion both interesting and help- 

 ful, and suggest that strict ad- 

 herence to the time set for open- 

 ing the morning and afternoon 

 sessions will add to the pleas- 

 use and profit of the occasion 



and afford more time for the social side of our convention, to which we 

 have always attached a great deal of importance. 



F. B. Gadd, assistant to the president, in his report on the open 

 competition plan, declared that the innovation had met with such 

 success that practically the only question remaining in regards to 

 its application and feasibility was the broadening of its scope so 

 that it will ultimately comprehend all hardwood manufacturers. 

 Mr. Gadd declared that secrecy is yielding to publicity in business, 

 and men now are dealing more fairly with each other and in an 

 open manner. Competition, as would be sure to result under the 

 plan, is fast undergoing a pronounced change. The result of that 



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competition has been open and above board instead of concealed; 

 greater stability of prices at normal levels without attempting to 

 control prices is obtained; an accurate knowledge of market prices 

 so that each member may gauge the market intelligently instead 

 of guessing at it is obtained and the advantage of knowing for the 

 fust time the exact conditions prevailing in the industry is attained. 

 His address follows in part: 



Mr. Gadd's Address 



The most Important achievement of the organization during the past 

 year was the plan for "open competition" adopted in Cincinnati one year 



ago. This plan has worked out 

 with such success that the com- 

 mittee feels the only question 

 remaining is that of broadening 

 its scope, so that it will ulti- 

 mately comprehend all hardwood 

 manufacturers. 



Members of the Hardwood 

 Manufacturers' Association had 

 for a long time felt the need of 

 a steadier and better market, 

 and with the view of accomplish- 

 ing it adopted this plan for open 

 competition among its members. 

 It simply means that men are 

 telling each other the truth 

 about their business. Your ex- 

 perience has taught you that in 

 commercial lite most men are 

 liars. You wouldn't trust your 

 competitor around the corner 

 much less tell him the truth 

 about your business, but it has 

 been done and by the members 

 of this association. Times are 

 changing and with the times, 

 business methods. Secrecy Is 

 yielding to publicity, men are 

 coming out into the open and 

 dealing more fairly with one 

 another. 



It has resulted in making com- 

 petition open and above board 

 instead of concealed ; friendly in- 

 tercourse and confidence instead 

 of jealous distrust and hatred ; 

 greater stability of prices at 

 normal levels without attempt- 

 ing to control prices ; an ac- 

 curate knowledge of market con- 

 ditions so that each member 

 may gauge the market intelli- 

 gently instead of guessing at it ; 

 the advantage of knowing for the 

 first time the exact conditions 

 prevailing in the industry. 



Open competition means not 

 only open prices but open dis- 

 cussion. The members get to- 

 gether every month at Cincin- 

 nati and Memphis. The ac- 

 quaintanceship and get-together 

 spirit engendered has resulted in 

 quickening and vivifying the In- 

 terest of all members. 

 I can hear some practical man say that the scheme is illegal ; all wrong; 

 get together and fix prices ; they will all go to jail some day. I have yet 

 to hear of a law that tries to prevent men telling what they have done. 

 Open competition is not a cloak for price fixing. 



On May 19 a committee representing this organization appeared by 

 appointment before the Federal Trade Commission for the purpose of out- 

 lining to the commission the co-operative plan under which the associa- 

 tion is working. The meeting was held at the suggestion of the association 

 itself, because it was desirous of frankly submitting the open competition 

 plan for the inspection and criticism of the commission. 

 The Market Letter 

 Another achievement during the past year is the market letter, which Is 

 published monthly and sent to every member of the association. It Is also 



E. O. ROBINSON, CINCINNATI, 0., ELECTED PRESIDENT 



