March 10, 1921 



HARDWOOD RECORD 



n 



The casual manner in which the orders have been placed suggested 

 that the lumber ivas not badly needed while the efforts to secure im- 

 mediate shipment, with tracers, suggests just the reverse. The con- 

 clusion is drawn from this condition that consumers are somewhat 

 more in need of lumber than they would like for the seller to know 

 until after they have secured their requirements. 



11 — It is recognized that general business conditions are improv- 

 ing and that woodworking industries are quickening their pace some- 

 what, and it is argued, from this knowledge, that a larger demand 

 is on the cards for the future. There are more buyers coming per- 

 sonally to Memphis than at any time since the depression began and 

 it is believed that these personal visits foreshadow larger buying in 

 even a more definite and more tangible way than the increased in- 

 quiries now being received. Salesmen returning from the North and 

 East report conditions as steadily improving and members of the 

 trade here believe that there will be a gradual increase in buying 

 and that the turn of the tide is not very far away, if it is not actually 

 at hand. Furniture manufacturers, manufacturers of automobile 



truck bodies, producers of interior trim, makers of flooring and 

 manufacturers of boxes and other wooden containers are represented 

 in the personnel who have visited Memphis recently and it is con- 

 ceded that, whatever may happen in the way of prices, volume of 

 business is steadily though slowly expanding, so far as the domestic 

 situation is concerned. 



12 — The American Overseas Forwarding Company reports having 

 booked about 1,500,000 feet of hardwood lumber for export to the 

 United Kingdom during the past two weeks. It also states that it 

 is booking something every day, in striking contrast with its experi- 

 ence during the greater portion of the past two years and more 

 particularly during the past several months. Most of the lumber 

 being exported from this centre through this company or other agen- 

 cies is going to the United Kingdom. Business with other European 

 countries is reported quite light and little improvement is expected 

 untU the reparations question has been definitely settled and until 

 there is a change for the better in general industrial and financial 

 conditions on the continent. 



Early Re-argument of Hardwood Case Urged 



Attorneys for the American Column and Lumber Company, and 

 the other open competition plan membership of the American Hard- 

 wood Manufacturers Association, will petition the United States 

 Supreme Court to set an early date for the reargument of the hard- 

 wood case, probably the first part of April. 



In speaking of the Court's action, General L. C. Boyle, chief 

 counsel for the lumbermen said: 



Of course the action of tlie court in ordering tlie case to be reargued 

 was somewhat of a disappointment. But there is comfort in the thought 

 that it marks a long advance from the point where Judge McCall left 

 the case. 



If the court had agreed to Judge McCall's view that "this is a clear 

 case of a combination of manufacturers to increase prices by agreeing not 

 to compete as to price and by curtailing production," it would hardly 

 have called for any further argument, since it is the A. B. C. of the law 

 that such a combination is illegal. 



As we see the matter, the present action of the court is not unfavor- 

 able to our side of the case. It is nothing unusual for the Supreme Court 

 to ask for a reargument in cases of importance. Indeed, there has been 

 a reargument in practically every important case under the Sherman 

 Act which has come before the Supreme Court in recent years, among them 

 being the Standard Oil case, the International Harvester case, the Lehigh 

 Valley case and others. 



' ' The Solicitor General will join us in the motion to have the court 

 set a date for the reargument, probably early in April, ' ' said General 

 Boyle. 



Redocketing of Hardwood Case Regarded as 

 Favorable Augury 



The news from Washington that Chief Justice White of the Su- 

 preme Court of the United States has asked for a re-argument on 

 the appeal of the American Hardwood Manufacturers Association 

 from the decision of the late Judge J. E. MeCall, of the federal court 

 for the Western district of Tennessee, granting a sweeping injunction 

 against any activities whatever under the open competition plan of 

 that organization, has created in Memphis, a much more hopeful 

 feeling regarding the final verdict of the highest tribunal in the 

 -United States. Both ofiieials and members of the organization regard 

 this request for re-argument as foreshadowing a favorable decision 

 and the hope is expressed that the delay incident to such re-argument 

 will not be too great. 



' ' You may quote me as saying that request for reargument of 

 this case is the next most favorable development to an actual decision 

 in favor of the defendants and as pointing to just such a decision in 

 the end," declared James E. Stark of James E. Stark & Company 

 (Inc.), chairman of the executive committee of the association, when 

 the news was received in Memphis. ' ' I am of the opinion that the 

 Supreme Court has already decided that the plan itself is not unlaw- 

 ful and that the request for reargument is based on the desire of 



the justices to clear up any doubt that may exist regarding the con- 

 spiracy charges which represented the main contention of the depart- 

 ment of justice in its action directed against the 'open competition' 

 group of the membership of the association." 



' ' In our opinion this is not an unfavorable indication of the ultimate 

 result we have always felt would-be reached in this case," says F. 

 R. Gadd, manager of statistics, in a letter addressed to members 

 of the association apprising them of the action of the Supreme Court. 

 "We have been confident from the beginning that the Supreme 

 Court would uphold the right of trade associations to compile sta- 

 tistics showing conditions as they exist within the industry. This 

 case is of great public interest. It will be reargued at an early date 

 and an opinion should be forthcoming shortly after the court hears 

 the new argument." 



It is recognized by members of the association identified with the 

 open competition plan of the organization, that any guess they make 

 as to when the re-argument will take place or what the final result 

 will be is highly speculative but that does not prevent them from 

 casting the situation over in their minds and from extracting as much 

 consolation and satisfaction as possible from the fact that there 

 is to be a re-argument. 



Hegret is expressed over the fact that re-argument means a delay 

 In the final decision but such regret as may exist on this point is 

 more than counter balanced by the fact that the mere resetting of 

 the case for argument is looked upon as a favorable development. 



The news regarding redocketing of this famous case is the first 

 word that has come out of Washington since the arguments on appeal 

 were heard before the Supreme Court Oct. 19, 1920. In this connec- 

 tion, it may be noted that it has been slightly more than a year since 

 the department of justice filed its original bUl in equity against all 

 members of the open competition plan group of the association, and 

 almost a year, to a day, since the hearing of the charges of conspiracy 

 was held before the late Judge McCall. The bill of complaint was 

 filed Feb. 15, 1920, and hearing of the case took place March 8, 9 and 

 10. Within about a week after the hearing was concluded, Judge 

 McCaU handed down his decision, which was one of the most sweeping 

 in the history of the United States, giving the government an over- 

 whelming victory by restraining the defendant from any and all 

 activities, individually and collectively, under the open competition 

 plan. Early in April, after the attorneys representing the government 

 and the defendants had reached an agreement to stand on the record 

 as made at the original hearing, both sides appeared before Judge 

 McCall, sitting at Jackson, Tenn. Judge McCall, on that occasion, 

 declined to modify his previous order and appeal was then per- 

 fected to the Supreme Court of the United States. 



