HARDWOOD RECORD 



21 



Rational Lumber Manufacturers' Association. 



Promptly at 10 o 'clock on May 9, in ac- 

 cordance with the program, the National 

 Lumber Manufacturers' Association was 

 called to order in the Green Boom of the 

 Auditorium Annex, Chicago, by President 

 N. W. McLeod. Every awiiating associa- 

 tion was represented by its respective dele- 

 gates, and there were present ot^er gentle- 

 men prominent in lumber affairs. 



The National Lumber Manufacturers' As- 

 sociation is the foremost lumber organiza- 

 tion in the country and includes in its mem- 

 bership some of the wealthiest stumpage 

 owners and lumber manufacturers in the 

 United States whose knowledge of the lum- 

 ber industry and keen business insignt make 

 the association properly fitted to take up 

 for discussion and settlement questions per- 

 taining to the ethics of the trade. Prob- 

 ably never before have they demonstrated 

 this ability in such an able manner as at this 

 meeting. The many important subjects 

 brought up for . onsideration were ade- 

 quately discussed and ac.ed upon satisfac- 

 torily in a remarkably brief and business- 

 like way. After the roll call of delegates 

 and enrollment of visiting associations, 

 President N. W. McLeod, who has been 

 called the ideal presiding oincer, addressed 

 the association substantially as follows: 



In the fall of 1002 a large am! representative 

 body of lumber manufacturers met in St. Louis 

 to consider the advisability of organizing an 

 association of lumber manufacturers to handle 

 all matters of association work that could be 

 properly handled by a national association. The 

 purposes of the organization were set forth as 

 follows : 



First — To promote uniformity in the methods 

 of manufacture and sale of lumber. 



Second — To unify as far as possible conflict- 

 ing interests and eliminate those elements of 

 friction that have so long served as a barrier to 

 the elevation of the trade to that high place of 

 dignity and usefulness to which its importance 

 entitles it. 



Third — To gather and disseminate reliable sta- 

 tistics showing the annual production and con- 

 sumption of the various kinds of lumber manu- 

 factured in this country, cooperating with and 

 aiding other associations along this line. 



Fourth — To gather, compile and distribute in- 

 formation as to general trade conditions in 

 lumber and kindred interests throughout this 

 country. 



Fifth — To take up for discussion and action 

 any and all questions of mutual interest that 

 are national in their character and application, 

 leaving to the territorial associations for final 

 adjudication those matters and questions pecu- 

 liar to their respective localities. 



Sixth — To strengthen the bonds of fellowship 

 and inculcate more friendly relations among 

 those engaged in the same calling and occupa- 

 tion, whose interests are common and lay almost 

 along parallel lines, and for the uplifting of our 

 industry, to which many of the manufacturers 

 are giving the best efforts of their lives. 



With the declaration of purposes of the asso- 

 ciation before you you are to review the work 

 the association has' undertaken and determine 

 the policy of the future. 



The active cooperation of our entire member- 

 ship in the work of the association is earnestly 

 desired. 



It is desirable to know when lumber ordered 

 or shipped becomes the property of the buyer. 

 In case of a dishonest solvent buyer desiring to 

 cancel an order after shipment on account of 

 decline in the market or for any other reason 

 we have one condition : in case of information 

 reaching shipper of the insolvency of the buyer 

 we have another condition. Cases like these 

 have been adjudicated in court and on account 

 of the diversity of decisions of the courts as ro 

 what is meant by delivered prices — sold deliv- 

 ered, less freight— and similar terms, confusion 

 has resulted and in many cases our members 

 have sustained a loss that was considered unjust. 



In the first case, of course, a shipper feels 

 that the contract should be enforced. 



In the s nd rase, where the shipper has 



unabli to stop delivery of the lumber, he 

 has in some cases had to advance freight charges 

 as well as refund freight charges on all cars 

 unsettled for before he could participate in a 

 distribution of the assets. 



There is no doubt, however, that the buyer 

 and seller can make a contract that will clearly 

 set forth just what the rights of the contracting 

 parties are and what is meant by "delivery 

 prices, less freight." and obviate a miscarriage 

 of justice by a court not understanding the 

 usual way in which lumber is sold or the actual 

 contract between a buyer and seller of lumber 

 when a delivered price is made. 



It may be a contract formally entered into 

 between buyer and seller on the initial order 

 that specifically provides that the terms as set 

 forth in the contract shall cover all subsequent 

 transactions between the parties could be made 

 and thus avoid repetition or the necessity of 

 making a separate and distinct contract for each 

 transaction. If this is not practicable it is sug- 

 gested that a uniform order blank be adopted 

 that will cover the agreement between buyer and 

 seller and become a binding contract. 



The importance of equitable and fair trade 

 ethics between members of this association and 

 the retail trade is admitted by all ; the past 

 demands of the retail trade without the manu- 

 facturers being represented having caused fric- 

 tion and loss to both branches of the trade. 



During the past two years there has been an 

 evident desire on the part of the retail trade to 

 recognize the principles of reciprocity, and joint 

 committees representing retail associations and 

 some of our territorial associations have entered 

 into reciprocal relations. In view of the devel- 

 opments during the past two years I recommend 

 that this association go on record in the matter 

 of reciprocity and provide a standing committee 

 of three to act with similar committees repre- 

 senting retail associations ; the joint committee 

 to formulate rules of trade ethics ; the chairman 

 of such committee, together with a president of 

 a retail association, to be a committee of arbi- 

 tration to settle all disputes that may arise 

 between members of retail associations, with the 

 understanding that said committee is to act only 

 for such of our territorial associations as desire 

 representation through the committee, any as- 

 sociation desiring to act independently reserving 

 the privilege of doing so. 



It has been suggested that this association 

 should take up the question of credit indemnity 

 for its members. If we are ready to act credit 

 indemnity could be inaugurated in one of two 

 ways : From a mutual company among our 

 ^nembers and to conduct a credit indemnity de- 

 partment for such of our members as desired 

 to avail themselves of credit indemnity : or to 

 authorize our credit rating department, which 

 is a duly incorporated body, to arrange with 

 some indemnity company to write all of the 

 credit indemnity business that our members 

 placed with the department — that is. the credit 

 department would be authorized to issue credit 

 indemnity bonds which would be written by 

 some credit indemnity company with which the 

 department had a contract for that purpose. 



The matter is worthy of careful consideration 

 and I believe it should be referred to a commit- 

 tee for investigation. 



The original plan of this department contem- 

 plated furnishing to members of this association 

 a credit rating book. 



Our membership as a whole did not give the 

 support to the department that would permit 

 the original plan to be carried out and we were 

 therefore obliged to adopt an annual charge or 

 subscription for the credit rating department 

 during the formative period. 



The work of the department in compiling the 

 credit rating book, together with special reports 

 and organizing the department for effective ser- 

 vice, is about complete. After careful thought 

 I recommend for your consideration the follow- 

 ing : 



The credit rating department to be continued 

 under the present plan with a charge or sub- 

 scription for service until April 1, 1906. with 

 no contracts or subscriptions to be taken for 

 services after April 1, 1906, and that the April, 

 1906, edition of our credit rating book and all 

 issues thereafter be furnished to all members 

 free of charge ; that trade reports and collec- 

 tions be charged to all members at a uniform 

 rate, and that after April 1. 1906. the dues from 

 territorial association be changed from 50 cents 

 a million feet to $1.50 a million feet, which 

 amount it is estimated will pay expenses of 

 conducting the business of the association iu all 

 departments. 



The debt of the department to the members 

 on account of loans made at our last animal 

 meeting is $15,590. In mv opinion this debit 

 should be refunded by an issue of bonds giving 

 the department relief from a temporary loan. 



The assets of the department on nservative 



estimate are worth |25,( and I believe can 



be sold for that amount, so that the bond issue 

 would be a proper investment. 



I rei :hat this matter be referr* > 



a con investigate and report to this 



meet ii tion. 



The association is In a position to demonstrate 

 its usefulness by not only protecting its mem- 

 bers mes but by rendering ser- 

 vices at miii 



While I feel gratified at the progress thru 

 been made in the work of the association, it Is 

 due to our secretary, George K. Smith, to state 

 that the work CO nght to its 



present satisfactory conditions without the con- 

 tribution be has made of hard, work, 

 together with his exceptional ability In associa- 

 tion work. 



Secretary George K. Smith 's report, which 

 will give a good idea of the work carried on 

 by this great association, will be found in 

 full in tli- last issue of the Hardwood 

 Record. Before reading his report Mr. 

 Smith called attention to the relative char- 

 acter of the three credit rating books, the 

 ideal book containing 713 pages and the 

 names of lumber dealers in forty-three states 

 and territories. 



J. A. Freeman, treasurer of the associa- 

 tion, submitted his report on the condition 

 of the finances, which was duly seconded 

 and ordered filed. 



C. I. Millard, chairman of the transporta- 

 tion committee, delivered a very comprehen- 

 sive address touching on the equipment of 

 open cars, treatment of freight claims, and 

 uniform terms of sale. It was decided that 

 this address be printed in pamphlet form 

 and distributed by the secretary among 

 members where it would do the most good. 



An abstract of the address delivered by 

 Gifford Pinchot, forester of the United 

 States Department of Agriculture anlt chief 

 of the Bureau of Forestry follows: 



I have, instead of one topic, two subjects 

 about which I will speak, but I shall be very 

 brief. No man present this morning can doubt 

 that certain phases of the lumber business are 

 being treated upon a high plane ; a high degree 

 of intelligence is being applied to them, and 

 altogether the business is being bandied in cer- 

 tain directions as it ought to be ; but certain 

 other phases of the lumber business have not 

 reached anything like the high standard, and I 

 want to speak about one of them very briefly. 



One of the sacrifices whirh the lumberman 

 who undertakes to practice forestry is always 

 called upon to make is that of leaving some of 

 his trees uncut as a basis for future timber 

 crops This means that he must give up a 

 small immediate profit so as to insure a larger 

 gain in the future. The first thing he wants to 

 know is exactly what these small trees are worth 

 and how does the profit he could get out of 

 them now compare with the profit tbey would 

 yield when they have reached a larger size. 



The bureau of forestry is able to answer these 

 Questions with precise information. We are not 

 satisfied with the old method of calculating the 

 amount of timber left and then applying a 

 stumpage value: we have gone into the matter 

 far more thoroughly. For about eighteen months 

 we have been condncting experiments at saw 

 mills in different pan country. These 



experiments consist of marking a great many 

 trees as they are felled in the woods, then fol- 

 through the mill to see what 



each '"< m , the wooda 



tell us bow many logs each numbered tree con- 

 tains The total amount ot each grade of lum- 

 . computed for i iter ot tree and 



. are averaged. Values are then de- 

 n the basis of what the lumber is 

 worth at the mill. In this way we are able to 

 tell the amount of money which > epre- 



the amount of each grade of lumber 



11 \"'"i Tree •.-rows older its value increases in 



two" direction!. First, there Is an Increase In 



i and second In its quality. 



I . a large tree produces a higher 



He good grades than does a small 



tree When a lumberman 



stand of small trees uncut he is asked to sacri- 



