March 2"), 1910 



J. W. McCHItK, MKMPHIS, TENN., 

 TEE. 



TKUS- 



BABCOCK, riTTSBURGU, PA., TUUS- 

 TEE. 



T. M. BROWN, 



LOUISVILLE, KY., 

 TEE. 



TRDS- 



to the architects and builders a lumber code understandable and net a 

 big return to lumber interests. 



Mr. Perry here referred to reclassification, workmen's com- 

 pensation and the national chamber of commerce. Resuming the 

 routine report, he said: 



Our membership in the association shows a slight gain of two over 

 last year, with a still larger gain o£ eight in subscribers to the bureau 

 of information, and with the impetus gained during the past couple of 

 months, the coming year will undoubtedly be our biggest year, and with 

 just a little help from you this will be sure. 



Our bureau of Information or credit department has Its own report 

 and shows a big gain in the work done. Without consulting the board of 

 managers of the bureau of information, I have had in my mind a proposi- 

 tion for the introduction of what might be considered a most radical 

 change in connection with our bureau financial reports, and that is, that 

 the members of this association refuse to sell to any one who In turn 

 refuses to make a signed statement of his financial affairs as a basis of 

 credit, and that we go one step further (and this is really revolutionary) 

 and when our report is complete, that the party reported, it he so 

 desires, be permitted to see the final report. I appreciate the fact that 

 many of you will not agree to this, but nevertheless I know many will 

 approve of It and I believe It will result in a wonderful Improvement in 

 business methods. Later in this meeting I believe it will be well to dis- 

 cuss this suggestion. 



Report of the Superintendent of the Bureau of Information 



A. L. Stone, chairman of the board of managers of the bureau 

 of information and credit department, reported a high state of 

 efficiency in the work of the credit bureau. Details of the opera- 

 tions of the credit bureau were given by W. W. Schupner, man- 

 ager of the department. Mr. Schupner 's report follows in part: 



These figures can easily be dismissed as unimportant, but forty-three 

 issues of the weekly List A with 625 names means that members received 

 facts which carried an actual money saving. The value of this list as a 

 credit medium is indicated by the statement that twenty-four names 

 appeared anywhere from two weeks to several months before the parties in 

 question went into some form of insolvency. This may not seem large in 

 proportion to the total number, but when you consider that many list- 

 ings cover changes m business, deaths, etc., which may not directly affect 

 the parties' credit, advance information on twenty-four failures is in itself 

 a very important argument of the bureau's value to its subscribers. 



The increased necessity for new customers and new markets has 

 resulted in a substantial increase of reports and information on parties 

 through the western and southern central sections and our subscribers 

 have expressed much satisfaction with the information on customers 

 in these territories. 



The Collection Department 



Claims amounting to $.380,000 were handled last year, which, owing to 

 the smaller volume of lumber shipped, was less than the preceding year 

 by $100,000. One hundred and ninety thousand dollars in claims were 

 settled, and the department turned over to the association treasury fees 

 amounting to $4,900, which is about $100 less than the previous year. In- 

 dicating a more difflcult class of collections in the reduced volume of 

 claims handled. 



As heretofore, this department has continued its two-fold mutual scope. 

 In that difiicult and doubtful accounts were turned into cash for our mem- 



bers, and not a few customers by experience have learned to appreciate 

 the reciprocal relations that exist for them through the medium of our 

 Collection Department. 



The success of the Collection Department is due, not to any particular 

 trick in getting money where it isn't to be had, but to the judicious use 

 of information which is available to the Bureau, through the liberal 

 cooperation of our members. 



One other important feature of the Collection Department must not 

 be overlooked and that Is the privilege, of obtaining an opinion in a 

 controversy where advice may be helpful. In ten years the Bureau has 

 handled claims amounting to $2,500,000 and the accumulation of court 

 decisions and attorneys opinions frequently enables the Bureau to ex- 

 press an opinion in a dispute that helps a member to more intelligently 

 understand his course of procedure. Hardly a day passes that we are not 

 called upon for advice in several matters and presume it is proper for 

 us to feel a sense of pride, along with the responsibility, when, as so 

 frequently occurs, both disputants have suflicient confidence in our im- 

 partiality to accept our opinion and settle accordingly. 



Report of Trade Relations Committee 



The report of the trade relations committee was read by R. L. 

 Palmer and was as follows: 



Since our last annual meeting, held at Buffalo, March 4, 1914, there has 

 been a general transition of business over the country at large and the 

 lumber business particularly has experienced dull times, during which 

 the importance and necessity of the wholesaler, I think, has been strongly 

 emphasized. 



Adverse conditions have been brought about by manufacturers selling 

 their stock direct to consumers and again some wholesalers have created 

 keen competition by selling at too close prices. The yards of New York 

 and other cities today do not have their former business because of these 

 conditions. 



The wholesaler, however, is of valuable assistance to both the manu- 

 facturer and the retailer in periods such as we have passed through since 

 our last meeting. During 1914 and the first half of 1915, when business 

 was particularly dull, the manufacturer received the aid of the wholesaler 

 in finding a market for his stock of lumber which he was obliged to turn 

 into cash to continue business. When war in European countries broke 

 out and export trade, which supplies prompt cash capital for the manu- 

 facturer, was cut off, the wholesaler again assisted in disposing of lumber 

 in transit to seaports, thus making the wholesaler a valuable agency. 



Manufacturers who maintain sales office in large cities selling in a 

 wholesale way to yards and large consumers invariably seek the aid of 

 the wholesaler in disposing of rejected cars or assisting them in adjust- 

 ing unsatisfactory shipments. 



The wholesaler to succeed must make good with both the manufac- 

 turer and the retailer, but should have the co-operation of the manu- 

 facturer, who would confine himself to the selling of his lumber, in any 

 one territory, to a few reliable wholesalers, thus eliminating the unfair 

 competition of the wholesaler who sells too closely. 



For the last few months we have experienced a welcome improvement 

 in both business and prices, which have been rapidly advancing, and 

 the retailers have looked to the wholesaler to furnish their require- 

 ments and protection against sharp advances. The retailer expects the 

 wholesaler to take his order for several cars for future delivery dis- 

 tributed over a period and protect him on the price. 



It is, therefore, plainly shown that the wholesaler Is still of vast Im- 

 portance to both the manufacturer and the retailer in the successful 

 conduct of the lumber business. 



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