January 2r,, 1010 



F. E. GARY. MEMPHIS, TEXX. 

 TREASUKER. 



.lOUN M. PRITCHARD, MEMPHIS, TENN., 

 SECRETARY. 



C. L. 



HARRISON. CAPE GIRARDEAU, MO., 

 RETIRING PRESIDENT. 



at Cliicafio anrl Now York during tlic year 191-1. It is also llkeiy that this 

 same e.xhiliit will he shown at Cleveland February lG-20. 



Under the direction of the technical research committee, of which R. M. 

 Carrier is chairman, we sent 5,000 teet of shipping dry 1" lumber to the 

 Forest Products Laboratory, Aladison, Wis., for experiments in kiln drying, 

 and Prof. James E. Imrie is here to da.v to tell of the results of these tests. 

 We have also sent the Forest Products Laboratory fifteen gum logs, from 

 which further scientific tests will be made. 



We regret that conditions were such that, on account of a reduction in 

 the production of gum lumber, our revenues were reduced to such an exteiit 

 that it was impossil)le for us to maintain a large advertising schedule 

 during the year 1915, but, notwithstanding this handicap, the association 

 has been active and ha^, by direct methods, kept tlie good qualities of gum 

 before the public. Now that gum is coming into its own and prices have 

 advanced to ft point which n^akes the industry more attractive, the need 

 of the association is greater than ever, for it will be necessary to work all 

 the harder to make the demand keep pace with the increased production, 

 wliich is sure to follow. 



We hope that every member of the association will co-operate with the 

 membership committee in recruiting our membership so that our revenues 

 may be increased to a point where we can increase our activities for 

 broadening the market for thee i-> much work yet to he done. 



Treasurer S. M. Nickey said that receipts during the past year have 

 been $15,338.81; output $14,498.61. lu comparing these assets, in- 

 cluding balance, accounts receivable and furniture, with liabilities, the 

 report showed there is a net gain of $2,307.09 in the two years the 

 association has been going. 



In speaking on the question of new members, P. E. Gilbert said 

 that the actual condition of stocks should have no bearing on the de- 

 cision to join the association as he personally knows of one of the 

 new members, who has already sold every foot of stock ahead for 

 eight months. 



There followed a discussion as to the possibility of raising the as- 

 sessment to the limit of fifteen cents as pro^-ided by the b.v-laws, in 

 order to raise more funds as quickly as possible for publicity work. 

 It was finally decided that the matter should be left to the assessment 

 committee who would get the views of the association and report back 

 with a recommendation at the semi-annual meeting, six months from 

 this date. 



The president appointed as the nominating committee, F. R. Gadd, 

 chairman, S. M. Nickey and W. E. DeLaney. 



The secretary referred to negotiations with members of the Com- 

 mercial Eotary Gum Association, who have been suggesting amalga- 

 mation with the Gum Lumb'er Manufacturers' Association. The rotary 

 gum people have appointed a committee composed of B. W. Lord, S. 

 B. Anderson and Kobert Stimson to confer on this question, and on 

 motion of W. H. Eusse, the matter was referred to the assessment 

 committee which will confer with the rotary committee. 



F. E. Gadd of the Wisconsin Lumber Company, Chicago, read a 

 very able paper on "A Comparison of Costs of Manufacture and 

 Selling Price. ' ' This appears in full in another part of this issue. 



There toilowcd a discussiou of Mr. Gadd's paper, which bore prin- 

 cipally on the question of fire insurance. One member said that all 

 his institution 's operating insurance and ninety days of fire insur- 

 ance on its lumber is charged against the mill for general expense. 

 After ninety da^'stho lumber insurance is transferred to the sales 

 department and charged against sales work. 



Mr. Gadd said that in his figuring he uses the same method and 

 that the period during which the insurance charge is levied against 

 the operation is purely arbitrary and optional. 



A Talk on Transportation 



In discussing trans]jort;ition, AV. M. Hopkins of Chicago, covered 

 the period from the building of. the first railroads until the present. 

 He said in part: 



In the first half of that period the railroads were operated as private 

 enterprises without governmental regulation. The price at which goods 

 were carried and the rate of fare for travel were matters of barter be- 

 tween the buyer and .seller of transportation. As commerce increased 

 and competition grew more keen, the Importance of the price paid for 

 transportation became a factor of ever increasing importance in deter- 

 minmg the value of goods, and the keenest rivalry existed between dif- 

 ferent industries competing in the same market in an effort to secure the 

 lowest rate of transportation. Rivalry also between carriers of goods 

 resulted in varying rates for the same transportation service on the same 

 goods. The railroads became too strong politically, and other abuses 

 crept in and finally culminated in a demand for control over common car- 

 riers with a view to regulating the charges and services, and particularly 

 of removing the various forms of discrimination complained of. 



Such a law, known as the Interstate Commerce act. has been on the 

 statute books now for twenty-eight years, though it has been effective 

 for only ten years, as during the first eighteen years of its existence no 

 power was given by Congress to the commission to administer the act. 

 Ten years is a comparatively short time to test the efficiency of a statute 

 involving the adjustment of such complicated problems as the making 

 and application of rates covering a great variety of articles of commerce 

 involving a territory covered by some 250,000 miles of railroads and a 

 business of something like §.3,000,000,000. It is now proposed to look 

 into the situation with a view to determining whether the law is as com- 

 prehensive as it ought to be, and what changes, it any. ought to be 

 made. We may expect Congress to give much attention to transportation. 



That the present law has fulfilled its mission for the past years 

 measurably well is a fact beyond controversy. It was originally defective 

 and is still wanting in some essential elements. Some controlling author- 

 ity should rest in the Interstate Commerce Commission over the issuance 

 of securities whereby the wrecking of railway properties would be im- 

 possible. Railway companies should be required to disclose for what 

 purpose additional securities were to he issued and to what purposes 

 money derived therefrom is to be used. If this were to be done the 

 financing of the railways would present very little difficulty. Railway 

 securities would be attractive to small investors if the public could feel 

 that funds were safeguarded by some governmental agency. 



Many students of transportation are inclined to the view that a single 

 regulating body over common carriers would be better for all concerned 

 than the dual system of regulation by states and the national government. 

 The law contemplates that each commodity transported shall bear its fair 

 share of the total transportation tax and no more. There is a fair dividing 



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