Fobrunry 25, 191S 



HARDWOOD RECORD 



21 



Memphis Censures Vehicle Makers 



Adopts Resolution Charging Unfair Practices in Purchase of Thick Oak for Government Work 



The overshadowing feature of the semi-monthly meeting of the 

 Lumbermen's Club of Memphis at the Hotel Gayoso, February 

 16, was the adoption by this organization of resolutions, prepared 

 and approved in advance by manufaeturers of hardwood lumber 

 in the valley states, charging the manufacturers of wagons, vehi- 

 cles and wheels for the government with endeavoring "to com- 

 bine in the purchase of the lumber required in their manufacture 

 through an organization called the 'Vehicle Committee,'" and 

 condemning "the action of this vehicle committee in endeavoring 

 to arbitrarily fix the price on our products," and further espe- 

 cially condemning "their action in interfering with contracts al- 

 ready placed by vehicle manufacturers and demanding the can- 

 celation of such contracts." 



The entire resolutions, which tell their own story, are given 

 herewith: 



Whereas, The United States Government has placed orders for large 

 amount of wagons, vehicles and wheels for the purpose of carrying out 

 its war program ; and 



Whereas, In the construction of these supplies large quantities of hard- 

 wood lumber are required ; and 



Whereas, The manufacturers of these vehicles and parts have endeav- 

 ored to combine in the purchase of the lumber required in their manu- 

 facture through an organization called the "Vehicle Committee" ; and 



Whereas, We believe this vehicle committee is endeavoring arbitrarily 

 to fix the price on such lumber without regard to the cost at which such 

 material was figured in the price of their finished products to the gov- 

 ernment, and have in various ways interfered with contracts between 

 the producers of such lumber and certain manufacturers holding some 

 of these government orders ; now therefore, be it 



HESOLVED, By the Lumbermen's Club of Memphis, 



First : That we pledge ourselves, jointly and severally, to do all within 

 our power to produce and supply such material as may be required 

 by our government, either directly or indirectly, in the present emergency ; 

 and 



Second : That we condemn the action of the vehicle committee In 

 endeavoring arbitrarily to fix the price on our products, and, further, 

 we especially condemn their action in interfering with contracts already 

 placed by vehicle manufacturers with producers of hardwood lumber, and 

 demanding the cancelation of such contracts. 



This action on the part of the club brings to the surface a subject 

 which has occupied the attention of hardwood lumber interests here 

 for the past three weeks or more, but which has been discussed 

 in an undertone for fear of premature publicity. 



It had its beginning with the cancelation, at the alleged instiga- 

 tion of the vehicle committee, of a contract which involved a tre- 

 mendous quantity of thick oak which was to be furnished by hard- 

 wood manufacturers in Memphis and the valley territory. The 

 name of the firm having this contract and all details in connec- 

 tion therewith are not yet ready for disclosure beyond the 

 fact that the contract for this lumber was actually canceled. There 

 is almost certain to be a rather interesting aftermath to this can- 

 celation, but nothing can be given out for publication in regard 

 thereto until the interests in question have determined upon their 

 course of action. 



The cancelation of this contract for hardwood lumber occurred 

 some time ago and this cancelation was really responsible for the 

 efforts of hardwood interests in this and other parts of the coun- 

 try to get together with the vehicle committee, representing manu- 

 facturers of wagons, vehicles and wheels for the government. 

 Readers of the Hardwood Record are doubtless familiar with the 

 conferences held in Chicago in which J. W. McClure, chairman of 

 the local committee, co-operating with the Southern Hardwood 

 P-mergency Bureau, and other prominent lumbermen from this ter- 

 ritory and from other parts of the country, participated. James 

 E. Stark of Memphis made the first trip to Chicago and the larger 

 conferences followed. Mr. MeClure and other Memphis lumber- 

 men returned to Memphis several weeks ago and the former made 

 a statement to the local members of the club regarding the out- 

 come of these interchanges. lie said in effect that nothing had 

 been accomplished and that it looked as if the lumbermen and the 



vehicle manufacturers were further apart at the end than at the 

 beginning of the conferences. 



The lumbermen, by way of adjusting the controversy as to 

 prices, made two separate and distinct propositions to the vehicle 

 interests: First: That they were willing to allow the federal 

 trade commission at Washington to determine what were fair and 

 equitable prices on the thick oak needed, and second: That they 

 were mlling to accept for their thick oak the prices allowed the 

 vehicle manufacturers by the government to cover the cost of such 

 stock. 



Both of these propositions were turned down, and, in connection 

 with the second, it is charged that the vehicle committee even 

 refused to disclose what price the government had allowed to cover 

 the cost of thick oak. 



It is also charged that the vehicle interests were attempting to 

 buy thick oak at prices some $15 per thousand below the current 

 market thereon. 



In view of the fact that the conferences in question did not 

 produce results, and in -view of the fact that the cancellation of 

 the contracts for lumber made with certain manufacturers in this 

 part of the country still stood, lumber interests believed that the 

 time had come for definite action. There was a meeting in Mem- 

 phis of representative lumbermen from Memphis and the valley 

 territory on February IS, at which the subject was gone over 

 thoroughly and at which the resolutions adopted by the club were 

 prepared and approved. 



The lumbermen here clearly do not believe that the vehicle com- 

 mittee is playing fair, and they strongly resent the alleged inter- 

 ference of this committee not only with respect to fixing prices on 

 an arbitrary basis, but also with respect to causing the cancellation 

 of orders for hardwood lumber, which had been made by a firm 

 which is engaged in the filling of government contracts for vehicles 

 or for vehicle parts. They further believe that the time has come 

 for a show-down, and they have made theirs by instituting these 

 charges and by jdedging their wUlingness to do all ivithin their 

 power, jontly and severally, "to produce and supply such material 

 as may be required by our government, either directly or indirectly, 

 in the present emergency. ' ' 



The correspondent of Hardwood Record knows the name of the 

 firm which has cancelled contracts for lumber from hardwood manu- 

 faeturers in this territory, but neither its identity nor its location 

 may be disclosed at this time. Indications are, however, that both 

 may be known at an early date, as lumber interests are deter- 

 mined to bring issues to a head with as little delay as possible. 



The club also unanimously approved the following resolutions 

 submitted for a referendum vote by the Chamber of Commerce of 

 the United States: 



Whereas, The size of Germany's present armament and her militarist 

 attitude have been due to the fact that her government is a military 

 autocracy, not responsible to the German people ; and 



Whereas, The size of the German armament after the war will be the 

 measure of the greatness of the armament forced on all nations ; and 



Whereas, Careful analysis ot economic conditions shows that the size 

 of Germany's future armament will fundamentally depend on her after- 

 war receipts of raw materials and profits from her foreign trade ; and 



Whereas, In our opinion, the American people for the purpose of pre- 

 venting an excessive armament will surely enter into an economic com- 

 bination against Germany if governmental conditions in Germany malie it 

 necessary for sclf-defcnse ; and 



Whereas. We believe the American people will not Join in discrimina- 

 tion against Germany after the war it the danger of excessive armament 

 has been removed liy the fact that the German government has in reality 

 become a responsible Instrument controlled by the German people ; there- 

 fore be it 



Resolved, That the Chamber of Commerce of the United States earnestly 

 call attention of the business men of Germany to these conditions and urge 

 them also to study this situation and to co-operate to the end that a 

 disastrous economic war may be averted and that a lasting peace may be 

 made certain. 



