34H 



HARDWOOD RECORD 



foremost occupation of the pioneer. Im- 

 measurable quantities' of the manufactured 

 product of the forest piled upon our broad 

 acres to season out have found a market in 

 every civilized country of the world. The 

 combustible character of the product created 

 a demand for Are insurance. That the de- 

 mand far exceeded the supply was the ex- 

 perience of many of the larger manufacturers. 

 This resulted in the formation of many plans 

 and the organization of innumerable lire in- 

 surance companies, some of which were un- 

 stable, soon to fall by their own weight or 

 want of business prudence. It was discov- 

 ered that unless tire insurance be founded 

 upon the principles of science disaster would 

 follow. 



The modern idea of specializing the busi- 

 ness of fire insurance is one of the most hope- 

 ful signs of a better understanding of the 

 principles and a higher development of the 

 science. The best illustration of the r< sull 

 of specializing is that of the lumber mutuals. 

 They selected as their object the lumber 

 trade and, having decided to confine the risks 

 to property belonging to this particular trad 

 began by applying scientifically the funda- 

 mental principles of underwriting. The l» si 

 known of these companies are the Pennsyl- 

 vania Lumbermen's Mutual Fire Insur; 

 Company of Philadelphia, the Lumber Mutual 

 Fire Insurance ^Company of Boston, the Lum- 

 bermen's Mutual Insurance Company of Mans- 

 field, Ohio, and the Indiana Lumberman s 

 Mutual Insurance Company of Indianapolis 

 They adopted the mutual system, being the 

 oldest and best system of underwriting 



Facts obtained from their latest reports 

 show some of the benefits that their mem 

 bers have derived since the organization oi 

 these companies. During a period of ten 

 years these companies have paid from their 

 net earnings $373,000 in dividends and re- 

 served as surplus $393,000, making a total 

 saving of $76S,000. Their combined assets 

 -SS S i thelr reinsurance reserve, is $2,000 000 

 Their operations have been confined almost 

 exclusively to about fifteen states i 

 are paying annual dividends from 25 to 

 ,U P , er , Cent - Fln ancially they are stronger 

 with t h tOC \ corn P ani ^. Tl,.,y are operated 

 with the utmost economy, their highest aim 

 being to furnish the best indemnity at the 

 lowest posible cost. Unfortunately * no m, 

 tistics are available to show receipts 



*rT™S '"? P^uta* Product in which ySS 

 are most interested, but we can say without 

 fear of contradiction that it has been one of 

 the profitable sources of the business 

 T hix-1 n f. companies mentioned the one which 

 t.V^k e i 10 "™ of ^Presenting, namely the 

 M» m « TV 6 r t Mutual durance Company or 

 Mansneld, Ohio, certainly shows the most' re- 

 markable record. Organized in 1885, the first 

 dividends were payable on policies' maturing 

 »„<, , at * 20 per cent i »n 19UU it 



„ r 7; sed t0 ~ 5 P er ™nt and 1904 

 to 33 1-J per cent, which is the dn 

 ent rate They alone have paid in divt 

 d 2, dS , J* 67 ' 149 ' 39 ' and in addition have ac- 

 cumulated a net cash surplus of $131,705 06 



*« « Sa ™ C t0 their polic y holde rs of $298,; 

 804.45. The average annual loss ratio ot 

 company Is 26 per cent. It has had a heal- 

 ^ y and s tead y growth and stands the highest 



cfal ltrenttb Umb ^H- mUtU , alS ' Q D " int <* »'""'- 

 <nal strength. While all the lumber mutuals 



Thfs comtnv 6 S Perated Wlth ^eat ecom„iv S 

 this company, by reason of its geogranhici 



o°f Ca Vh e ,", the heart of °ne of the 8 be S st s ," 

 M he Union, accessible from the north 

 south, east or west, is operated at ari ex- 

 pense ratio of 18 fc per cent of Its premium 

 SnIT :Never in tne history of the "om 

 S £ as "' growth been as rapid as i, 

 past four months. The ratio of gain in the 

 amount at risk for that time was 16 per cent 



sets* I" 1 ™™ ln ,n°t me „ 5per cent: in cash as- 

 sets \L per cent and m cash surplus f ■ ., . 



im™ t Yo " wm observe that none of th " ,' 

 important items show a loss, but. on the 

 trary. a remarkable gain ' 



. Such is the result of specializing the fire 



k'rfo U wn nC Is bU , ! ne ne f ' h Acc eP'ing a elafs of ris. s 

 Known as the lumber trade, conducted bv 



ness a tZi ,a L^ th the details of 'hat busi- 

 ness, they have succeeded beyond the ex- 

 pectation of their promoters. The succ 

 nnJ'^'r , ml i tuaI S have encouraged ,1 

 lines of trade to organize similar companies 



In these mutual companies no vast 



, ", f , mor ' ey ap Ued up for 



stockholders to wrangle over, but reserving 



only such amounts out of their net earninel 



will insure to its members the pr 7„ 



payment of the losses and decreasing the , ,,' 



"c by the oi annua] . 



at the court house steps after the adjourn- 

 ment of this session to have a photograph 

 taken. 



Mr. Busse — It will be necessary if you are 

 going to have your picture "took" to have 

 a smile on your face. Parlor G (the head- 

 quarters of the Memphis delegation) is on 

 this floor and you can get the "smile" there. 

 I assure you we give the same kind of re- 

 freshments we have in Memphis, only it is a 

 better grade and don't cost a cent. 



A motion to have the members assemble 

 for the purpose of having a photograph taken 

 was lost. 



President Palmer — Mr. Wall lias been 

 here all the morning and we have not heard 

 much from him. I understand he has some- 

 thing in say to us. We would like to hear 

 from him now. 



Mr. Wall — We consider ourselves the 



■ -t and best body of bardw 1 lumbi 



men, and the subject I want to take up is 

 that of forestry. Wi -< ery little organ- 

 ization, and some pretty large ones, taking 

 up tliis subject and they go up and down and 

 amongst as and here we sit taking no steps 

 of any kind for our own interests and protec- 

 tion and that of our children and grandchil- 

 dren. I have a paper in my pocket, and 1 

 see Mr. McMillan pointing his finger at me 

 and about to say. ' if you spring that paper 

 we will adjourn.' I will uot read the paper, 

 but "ill ask that our president, appoint a 

 commitee of three which shall have charge oi 



forestry matters, I make that as a motion. 



( Motion seconded.) 



Mr. McMillan I want to say to Mr. Wall 

 that the only objection I have is that lie lias 

 not half time enough to devote to this mat- 

 ter. T wish i" God that every man had sat 

 up all night and listened to ii because it is 

 benficial There is i ther subject that the 



United Slate- is mole intele-ted ill tll.'lll OUT 



forests. Wc should take the time to listen to 

 Mr. Wall's paper. 



CJpon motion the chair appointed the fol- 

 lowing gentlemen as a committee on forestry 

 and the matters suggested bv Mr. Wall: 

 Maurice M. Wall, B. P. McMillan and T. F. 

 Moffett. 



Mr. Wall — We have the best entertain- 

 ment and one of the best dinners provided 

 and the best drinkables that you have ever 

 had, scheduled for this evening. Mr. i~ eager 

 has an announcement to make as to the ban- 

 quet tiekets. 



Mr. Kusse — That is all right, except as to 

 the best drinkables. By Jove, you have been 

 to Tennessee and you know they got it down 

 there and brought it up hi re. 



Mr. Wall — i have ne'er had any in Ten- 

 nessee and I don't know about it. 



The meeting then stood adjourned until 

 ,1:30 p. in. 



Did Not Want a Picture. 



i tary : ounced that the mem- 

 guests were rei to assi mble 



Friday Afternoon's Session. 



An executive session was held during the 

 early part of the afternoon when the revision 

 of the constitution and by laws was consid- 

 ered and the report of the committee taken 

 up and adopted. 



The report of thi committee which was ap- 

 pointed trj the Board of Managers at its 



I > iog held m i i lati, Ohio,' March 15, 



1905, was as follows: 



Article I: The name of ibis organization 

 shall be The National Hardwood Lumber Asso- 

 ciat ion. 



Article II : — Its membership shall consist of 

 manufacturers of and wholesale dealers in hard 

 wood lumber. 



Article in ; lis • bjei I is to promote the 

 welfare and protect the interests of the hard- 

 wood trade, 



Article IV: Each member shall have the 

 privilege of one vote on all questions arising 

 when a division is called tor, but proxies of 

 absent meml ■ be recognized. 



Article V : Tin- constitution may only be 



altered or amended by a two-thirds favorable 

 vote of the members present at an annual meet- 

 ing, or at a special meeting called for this pur- 

 pose, sixty days' written notice of said meet- 

 ing having been mailed to each member. 



ARTICLE I. 



MEMBERSHIP. 



Section 1. — Any individual, firm or corpora- 

 tion in good standing engaged in the manu- 

 facture of hardwood lumber, or that is a 

 wholesale dealer in hardwood lumber, is eligible 

 to become a member of this association. 



Sec. 2. — Applications for membership in ihis 



' iation shall be made to the secretary in 



writing and be accompanied by the amount of 

 the dues lor one year, as prescribed by the by- 

 la WS. 



Sec. 3. — All applications for membership shall 



be referred to ti xecutive committee and be 



acted upon within Co days after they are re- 

 ceived by the secretary. A three-fifths vote 



of tl immittee -hall be sufficient to elect an 



applicant to membership. 



SUSPENSION of MEMBERS. 



See. 4. — Any member may he suspended from 

 Ha association by the Board of Managers at 

 any of its regular or called meetings, bv a 

 four mi (is rote "i those present. 



ARTICLE II. 



OFFICERS. 



Section l. The officers of this association 

 shall he a President, First. Second and Third 

 Vice-Presidents, Secretary and Treasurer. 



DUTICS of OFFICERS. 



Sec :: The President. Ir shall he the dutv 

 ol the President to preside at all meetings of 

 the National Hardwood Lumber Association and 

 oi the Board of Managers, and to issue calls 

 lot special meetings, as hereinafter provided, 



Vice-Presidents n shall be the duty of the 

 Vice-Presidents in their order to perform the 

 duties of the President during his absence or 

 disability. 



Secretary- 11 shall be the duty of the See,, 

 tary to keep the mimiles "f all meetings of He' 



National Hardw l Lumber Association ami of 



tbc> Board oi Managers; to keep all the records 

 of the association; to collect all the dues and 

 assessments and all moneys whatsoever due the 

 association, ami nun same over to the Treas- 

 urer; io sign all warrants drawn upon the 

 Treasurer: to issue ,,ii certificates of member- 

 ship: to issue proper notice of all meetings of 

 the association and Heard of Managers: to pre 

 |su. a report id' the doings of his office and 

 -"lain; same to He' National association at its 



animal meeting, and Io perform such other du- 

 ller as ordinarily fail to the oihce of secretary, 

 or that may he required of him by the Presi- 

 dent ami Heard of Managers. 



Treasurer. It shall be the duty of the Treas- 

 urer to receive from the Secretary all the money 



of the National iianiw I Lumber Association, 



and to pay same out upon the warrant of the 



: aib.n. signed bj the President and Secre 



tarj He shall keep a correct account of all 



receipts and dlsl mm in-, ami shall submit a 



detailed re], on at the annual meeting and at 

 any other time required by the- President and 

 Board of Managers. 



ARTICLE III. 



Dl i:i < lulls. 



Section 1. — The directory of the association 



fifteen mbers, live of whom 



shall he elected at each annual meeting i" serve 



Hi lee veal's. 



ARTICLE IV. 

 BOARD op MANAGERS. 

 Section I Che officers, except the Secretary 

 and th.- directory, shall constitute the Hoard 



ol Managers. 



S OF Till; HOARD OF MANAGERS. 

 See. _', The Hoard of Managers: shall have 

 the full power of the association, save at such 

 times as the association is in session. 



■■ I M 



Set 3.— Nine members of the Board of Man- 

 agers shall constitute a quorum. 



ARTICLE V. 



EX la I I i\ i COMMITTEE 



Section 1.— The President and tour members 

 ol i he Hoard of Managers shall constitute the 

 execut Ive committee. 



Sec. - - Tin- appointees of il xecutive com- 



mittee shall be tippiinted at the annual meet- 

 ing, to serve one year, ami said appointments 



shall be approved by the Hoard of Managers. 

 DUTIES OF mi i i \ i. ei il vi: COM M li'u r 



See. ::. ti xecutive committee shall have 



the lull power of ii,, Board of Managers, save 



al such limes as the hoard is in s.ss,,i 



See. 1.- K shall lie the dlltieS of l! \ 



ecutive committee lo receive and consider and 

 pass upon all appli itlons for membership In 

 the association. 



See 5. The executive commit! -hail make 



a full report "i all I acts from time to ii 



to the Hoard of Man ;ers tor their approval. 



