August 10, I'Jlo. 



R. I!. GOODMAN, GOODMAN, 

 I'lM^SIDE.NT 



SWAN. OSHKOSH, WIS., 

 SECItETAUV 



i:d\vai!I> a. iiamai;. ciiasself.. mu ii 



' KWiiiK^maiiTOitiiKmwttu^ty^^ 



The Northern Hemlock aiul Hanlwooii Maiuit'acturers' Association 

 met at Oshkosh, Wis., on Thursday and Friday, July 29-;!0, in its 

 regular quarterly meeting. The mornings were given to business ses- 

 sions and the afternoons to entertainment ot the visitors. 



Secretary O. T. Swan opened the session witli a meaty report con- 

 taining many suggestions especialh' pertinent. Mr. Swan maintained 

 that the business of manufacturing and selling lumber is rai>idly 

 growing more complex, and radical proposals are being advanced by 

 responsible organizations so rapidly that it is difficult to realize the 

 adverse situation which might easily devoloj). Mr. Swan said: ''If 

 you have ever believed that there was no particular need for organized 

 action by lumber manufacturers, now is the time to dispel that belief 

 and picture the latest enemies which the trade mu.st meet." 



He then referred to freight matters, referring especially to the 

 coming investigation by the Interstate Commerce Commission of the 

 entire question of lumber freight rates, saying this is the most im- 

 portant rate matter which has ever come before the lumber industry, 

 as it has the possibilities of developing new markets or absolutely 

 eliminating some of the present markets for respective types of lumber. 



The report touched on the inspection service, stating that asso- 

 ciation members who have the use of inspection service are given 

 advantages over non-mendjers with whom they are in competition, as 

 they have competition on the basis of established grades, this com- 

 petition being reduced to a question of price and quality. 



Referring to the sales bulletin and statistics, the report went on 

 to the question of production costs, in which was stated that many 

 industries are undermined by incompetent small manufacturers who 

 sell their products for prices less than the actual cost of manufactur- 

 ing, believing they have a profit, but not realizing they are not 

 charging enough to replace their investment and cover other charges. 

 Mr. Swan expressed himself as believing that in lumbering it is not 

 only the small manufacturer, but many larger manufacturers who are 

 equally at sea. 



As to the question of taxation, Mr. Swan said the association has 

 made a study of the effect of accumulating charges on 36,000 repre- 

 sentative acres. This was covered in C. H. Worcester's report before 

 the Federal Trade Commission. 



Under the subject of advertising, Mr. Swan urged that the associa- 

 tion adopt a trade mark in order to segregate association benefits and 

 benefits from advertising to members. He said it is the judgment of 

 the committee that if this trade mark or brand can be combined with 

 a branch on liirch products, and perhaps on other products, the value 



of the money .spent in advertising will be considerably increased. 

 On the question of technical work, Mr. Swan said arrangements 

 were completed with the Forest Products Laboratory looking toward 

 tests of representativx! hemlock shijiments from Wisconsin and Michi- 

 gan so that actual fignrcs and data may be available for nunnbers 

 of city building codes committees in order that they may include 

 hemlock in their specifications. Mr. Swan touched on the mill scale 

 study to take place at the Goodman Lumber Company's plant, Good- 

 man, Wis., on the day following the meeting. He said: "The mere 

 estimate of the relative number of board feet in two different lofs is 

 not an estimate of their relative values, and in purchasing logs it is 

 desirable to have much more definite information than we now 

 possess. ' ' 



Average Costs of Lumber 



J. W. Kaye, cli;iirman of the committee on stiitistics and accounts, 

 read an interesting jjajier and conducted an interesting discussion on 

 statistical results compiled as a result of investigations made by the 

 committee. 



Following is a summary of results arrived at from work in gather- 

 ing such costs. Mr. Kaye said that it would be possible to get reports 

 on bark, wages, oil, fuel, saws, number of lath per thousand feet of 

 logs and a number of other important subjects if it is so desired by 

 the association. 



AVEii-iGB Log Cost of Lumber 



rinc. No. -J and better .'Sl.'i.if; 



Maple, No. 2 and lictler 12.1!) 



Maple, No. 'i i>.72 



liirch. No. 2 and better l.j.Of! 



Birch, No. .". 343 



Bass, No. :> and better 14.4;> 



Elm, Xo. 2 and better l."i.7() 



Elm. No. ."i :j 11 



Hemlock, No. 2 and better lO.CJ 



1.22 



Soft- 

 wood 

 .?2..S.S 

 AS 

 .90 

 .49 



i.oe 



.07 

 .52 

 .GO 



$7.92 



-17— 



Hemlock, No. 



Hard- 

 wood 



Average cost of maunl'acture ?3.87 



Average cost of depreciation 64 



-\veragc cost of shipping 90 



Average cost of sales expense 49 



Average cost of general expense 1.O6 



Average cost of interest 97 



Average cost of amortization 52 



Average cost of discount and deduction 60 



Cost of manufacturing and shipment less planing rail!.. $9.05 



