September 25, 1915. 



HARDWOOD RECORD 



29 



pxclusively, and three years ago I believe at least one-third of them 

 were not handling any red cedar at all. Madison is a good example of 

 what has happened to the white cedar trade la this territory. Three 

 years ago they were using practically nothing but white cedar shingles and 

 now about three-fourths of their trade is red cedar. I think we made a 

 mistake in not keeping red cedars out of here, as I think they have come 

 to stay. There Is no question but what they make a much better look- 

 ing shingle than we do. and that is what appeals to the average con- 

 sumer. They are getting 30c to 50c above our price for their best shingle 

 now, and we are practically no competition to them at all. In 1914 they 

 dropped their price to around $2.90 for extra clears, while we were holding 

 e.\tra star-.\-star at $3.30, and the yards got them in before the white 

 cedar manufacturers realized they had lost this market. The slump in the 

 red cedar shingle market is another example of what the commission men 

 will do for a manufacturer. 



Edward Hlnes of Chicago, iii commeutiug on hemlock sales, said 

 there has been a great falling oS in its use in Chicago during the 

 last three years; that now fully seventy per cent of the stock han- 

 dled in his Chicago yard is yellow pine. Mr. Hines said the question 

 of owning a territory is now a thing of the past, and that it will 

 be necessary to provide sufficient funds to maintain the market for 

 liemlock in its legitimate territory, and that nothing whatever can 

 be done without money. 



Mr. Hines aptly described advertising of the right character as a 

 mere form of insurance, which should be adopted just as naturally 

 and logically as fire insurance. He said the situation is one not 

 merely of price, but of absolute lack of sales. 



Referring again to the falling off in demand Mr. Hines said the 

 architects, through lack of information as to the physical qualities 

 of hemlock, specify yellow pine in many instances where hemlock 

 would be as good or better and much cheaper, simply because they 

 have this information regarding yellow pine and know exactly what 

 they can figure on under certain conditions. It will be necessary, 

 according to the speaker, to educate not only the consumer but the 

 architect in order to regain any lost ground. Mr. Hines maintained 

 that prices will not be advanced by reducing the output but rather 

 by increasing the markets. 



The Committee Recommends 



Mr. Quinlan then read the report of the committee appointed at 

 the recent Oshkosh meeting to report back at this mass meeting. The 

 report recognized certain conditions and made recommendations as 

 follows : 



First : That there are a great many yards in the natiu-al territory of 

 hemlock which have substituted yellow pine. 



Sech.M) ; That it is not always a question of price loinpetition, as in 

 some instances yellow pine has gone in at one dollar a thousand over 

 similar stock in hemlock. 



Thiud : That the production of hemlock for the first seven months of 

 this year was below the same period in 1914 ; that the shipments are 

 greater, pointing to the fact that it is not merely a money competition. 



Fourth : That the condition is due to a lack of information regarding 

 the qualifications of hemlock for specific purposes, resulting in the 

 architects specifying other woods. 



The report also recognized the fact that many outside woods are 

 finding markets in the various sawmill towns in which mills are 

 located, which are manufacturing hemlock. 



The report therefore recommended : 



First : That manufacturers having been asleep and having neglected 

 to talk the merits of their wood, although they were conversant with those 

 merits, should Institute a vigorous campaign of education. 



Second : That the association as an organization should co-operate 

 in this educational work in a broad way. which would have as a basis the 

 education of the architect and the contractor specifically. 



Third : There should be an expert to cover the hemlock territory and 

 through personal touch gain a greater sympathy for hemlock in its logical 

 markets. 



Fourth : That the board of directors appropriate ample funds and levy 

 special assessments on all manufacturers in Wisconsin and upper Michigan 

 for the purpose of carrying on this work. 



C. H. Worcester hit an important note in the discussion when lie 

 said that the fact should not .be overlooked that this work is but an 

 insurance on the investment which is alreaily made, namely, in hem- 

 lock stumpage ; that it is a broader question than of merely increasing 

 the present market as, while hemlock trees are of no value on the 

 present basis, it should work out to the end that hemlock timber will 

 be given a real intrinsic value if the problem be considered from an 

 investment standpoint. 



R. B. Goodman, citing a hypothetical condition, said that at the 



present valuation of hemlock timber, if regularly selling at four-and-a- 

 half dollars off the list, it would be necessary to get additional appro- 

 priations from the boards of directors in order to merely pay for sup- 

 , plies and meet the payroll. He maintained that conditions have got- 

 ten beyond the control of the retailer and that the consumer must 

 now be appealed to direct. 



Mr. Heddles of Madison, in speaking again from the retailers' 

 standpoint, maintained emphatically that yellow pine should be 

 ' ' bucked ' ' energetically in the logical hemlock territory, and that 

 the yellow pine men would expect and give no quarter in their con- 

 test for markets. He said that manufacturers should give hemlock 

 a little advantage in size on heavy stuff on account of the greater 

 strength of pine timber and the correctness of information as to its 

 physical qualities. 



Mr. Quinlan ajjpointed as a committee on recommendations: C. H. 

 Worcester, H. W. Moore, A. L. Osborne and W. T. Collar, the com- 

 mittee being instructed to formulate a plan for carrying on the work 

 and to make recommendations to that end at the afternoon session. 



AFTERNOON SESSION 



The shingle manufacturers opened the afternoon session with the 

 report of the resolutions committee, which recommended the organiza- 

 tion of the White Cedar Shingle Manufacturers' Association to cover 

 the states of Michigan, Wisconsin and Minnesota, that would estab- 

 lish uniform grades, the grades to be protected by an association 

 brand and guarantee, and to be maintained by constant supervision 

 of a competent inspector. 



This resolution being duly adopted, the temporary officers were 

 elected as follows: President, W. B. Thomas, Manistique; vice- 

 president, C. A. Goodman, Marinette; secretary, O. T. Swan, Oshkosh; 

 treasurer, A. C. Wells, Menominee, Mich. 



It was decided that the routine work of the organization would 

 be carried on through the offices of the Northern Hemlock and Hard- 

 wood Manufacturers' Association. 



On motion of E. B. Goodman, it was specified that the present 

 committee should act as a temporary board of directors. The offi- 

 cers and board were instructed, through a resolution, to prepare, in 

 time for submitting at the next meeting of the Nortliern Hemlock 

 and Hardwood Manufacturers' Association, suitable by-laws and 

 definite plans for organization and operation. 



Membership pledges were called for. All of the shingle manu- 

 facturers in attendance, either signed up definitely or let it be known 

 that their not doing so was merely a question of form as they needed 

 the authority of their board of directors. However, a permanent and 

 what appears to be an effective organization is assured. 



He.mlock Men Agree to Pay .Seven and One-Half Cents Per 

 Thousand foe Exploitation 



At the adjouniinent of the shingle meeting, the hemlock manufac- 

 turers again got together. C. H. Worcester, reporting for the recom- 

 mendations committee, suggested the assessment of 7% cents per 

 thousand feet of No. 3 and better hemlock sliipped from October 1, 

 1915, this to cover the next five years. The resolution further pro- 

 vided that this fund should be administered by the Northern Hem- 

 lock and Hardwood Manufacturers' Association; that the signatures 

 of manufacturers should not be binding until subscriptions are 

 "Secured equaling an annual output in the aggregate of 300,000,000 

 feet, and providing for a fund of $22,500. It was provided on 

 amendment that on a two-thirds' vote of the signatomes, the agree- 

 ment might be revoked or the assessment reduced. 



It was further agreed that the association's secretary might at 

 any time audit the books of the signatories in order to determine the 

 exact amount of hemlock shipped. 



The whole resolution was unanimously adopted and on President 

 Goodman's calling for subscriptions seventeen prominent manufac- 

 turers, making a total of 200,000,000 feet out of the necessary 300,- 

 000,000 feet, appended their names. It appears there will be no 

 difficulty in establishing the organization on a permanent footing. 



The committee, composed of C. A. Goodman, M. P. McCuIlough and 

 W. E. Vogelsang, is to carry on the work of securing additional sub- 

 scribers and funds. 



