HARDWOOD RECORD 



19 



instance in which he had actually offered an (iption to an assessor 

 ■ at one-third the assessed vahie. He stated that the assessors came 

 out definitely saying that they had been instructed to raise valuations 

 or lose their jobs, and that the blame would be found with people 

 higher up than they. 



He moved that a committee of five mcnilicrs lie a]ipointed to pre- 

 sent the matter to the proper jieople at Madison with a view of get- 

 ting taxation on a more just basis. The motion carriml. Mr. Osborn 

 was appointed chairman of the committee. 



R. S. Kellogg read a paper entitled "Some Troubles of the Lum- 

 ber Industry," which appears in briefed form in connection with 

 the account of the Michigan hardwood manufacturers' meeting on 

 page 28 in this issue. 



R. H. Downman, New Orleans, president of the National lAimber 

 Manufacturers' Association, said . that lundiermen are too passive 

 in supj)ort of their association and seemingly do not realize the 

 tremendous benefits possible. He gave one instance of result of this 

 jiassive attitude which came to his notice in New Orleans recently. 

 It seemed that a certain New Orleans lundjerman had a claim against 

 a railroad which was based on an entirely just circumstance, that he 

 placed it in the hands of an attorney who shortly reported that the 

 best he could do was a very unsatisfactory compromise and that he 

 would have to charge his fees for the entire amount, which wouhl 

 i-eturn a very small sum to the complainant. This nuui a couple of 

 days after told his case to the secretary of the cypress associa- 

 tion, who asked him why he had not put it up to the claim depart- 

 ment of that bod}'. The man said he never knew there was a claim 

 department, and that he would be glad to do so. As a result he 

 collected the entire amount and reinstated the former rate, unfair 

 increase in which had been the basis of his claim. 



Mr. Downman said that similar instances of lack of interest are 

 constantly coming up. He cited another case of a letter received by 

 ex-Secretary Rhodes of his association from the so-called Society 

 Advocating Fire Elimination in Cleveland. This was such a striking 

 letter that Mr. Rhodes had it printed and distributed liroadeast, and 

 at a meeting of the cypress association held in New Orleans a few 

 days later he asked the various directors if they had received it. 

 Quite a number of them had received llie letter but only one of 

 them had actually read it. He dejilored this disinclination to accept 

 any responsibility and said that results cannot come from working 

 with that attitude. 



Manufacturing Cost Discussed 



Then followed a general discussion on costs duriug which the pres- 

 iilent calleil on various members for their opinions of cost of logging 

 and sawmilling operations as compared to actual returns on invest- 

 ment. It was developed that very few members liad in mind any 

 definite figures although a few gave approximate estimates as to 

 cost of operations and receipts. One stated that the item of real 

 estate is credited with the difference between stumpage value and 

 cost of logs <lelivered. He said that the cost is from about fifty to 

 seventy-five cents a thousand delivered to the mill. Another manu- 

 facturer said that hemlock manufacturing costs $2.6.5 through the 

 mill and into the pile, and still another said you can't put lumber 

 from the log pond to the ear for less than $.5..50 ; $.t from tlie pond to 

 the ear with a total cost of ,'fl.5, and an average value of products 

 of $12 was the estimate of another manufacturer. One man stated 

 that manufacturing, logging and raw material costs all that they 

 get for the stuff, and that the only profit his company is making is 

 from the by-products. 



The estimate of one manufacturer was that logs selling at $9 cost 

 $2..'J0 for freight and unloading, $.5 to $f) for manufacturing and sale, 

 nuiking total cost of hemlock $17. He reported that an actual test 

 of two days' run of logs of 80,000 feet netted an average of $14..56 

 proceeds with every item listed. He said, however, that these figures 

 did not give overrun. 



It seemed to be the consensus of opinion that lack of specific 

 knowledge showed the necessity of getting together on this subject. 



WEDNESDAY'S SESSION 

 Matt Daly of Duluth, Minn., wlio'is well known throughout the 

 northern logging camps for his missionary work, gave an interesting 



address on that subject. He pleaded for a closer sympathy between 

 the employer and employe, making the suggestion as a business prop- 

 osition, tending toward maintaining increaseii confidence and hence 

 increased loyalty of employes. 



On motion a special conunittee was appointeil to look into the 

 question outlined by Mr. Daly, Mr. Holt being appointed chairman 

 of this committee. 



W. W. Brown of the Hamilton Manufacturing Company, Two 

 Rivers, Wis., gave a highly instructive ami practical a.ldress entitled 

 "Manufacturing Lumber to Fit the Needs of the Consuming Fac- 

 tories. ' ' This address is carried in full on pages 26-27 of this issue 

 H.\KDwoon Reookd. 



With M. .1. QuinhiM, cliairiuau of the bureau of grades in the chair, 

 a discussion on grading rules and inspection was ojiened. 



W. H. McDonald, chief inspector, said that figures for the past 

 year showed that the inspectors had inspecteil in customers' yanls 

 674,800 feet hemlock, 4.6 per cent being below grade and 7.9 per cent 

 above grade. In hardwoods 4;j1,787 feet were inspected in the same 

 way with .5.7 i)er cent below and 3.;! per cent above. Figures in 

 jiine were 8.i,6O0 feet inspected in yards, 'M per cent below. 



Mr. McDonald stated that lath should be given much more atten- 

 tion as far as grading and quality of manufacture are concerned. 



There was a total of sixty-nine re-ins|)ections during the year, and 

 ot these in hemlock l.^.l per cent was found below grade and 2.7 

 per cent above grade; in hardwoods, 4.5 per cent was below grade; 

 hemlock lath '.V.i.3 per cent below grade; on jiine lumber 15.2 per cent 

 was below grade. There was a total of yard inspections of 1,210,- 

 187 feet; re-inspections, 989,975 feet. 



Mr. McDonald said that much closer attention must be given to 

 manufacturing, grading and separating of different kinds of timber 

 in making lath in order to keep hemlock in the present standing as 

 a first-class material for lath manufacture. He said further that 

 in making re-inspections he was brought face to face with all kinds 

 and conditions, raising the |)oint that many customers claim they 

 do not receive what is represented to be sold to them. He advised 

 manufacturers just how they co\ild avoiil those (|\icstions in the 

 future. 



Mr. McDonald further said that reinspection of hardwooils as to 

 sound, defects was a vital question coming up in reinspection as there 

 is a wide variation in judgment of the inspectors, and even among 

 National inspectors. He said there should be some means of con- 

 ferring on this question among the heads of the different departments, 

 thus keeping more uniformity among yard inspectors and association 

 inspectors. Mr. McDonahl said he believed most retailers are anxious 

 to become better posted on lumber grades and want the co-operation 

 of the inspection de])artment of the association. 



M. J. Quinlan of the bureau of grades, in commenting on stock 

 and market conditions, said that stocks seemingly are in excess of last 

 year, but there was considerable curtailment promised for this win- 

 ter, which would unquestionably result in greatly reducing surplus 

 stocks with anything like nornuU comlitions prevailing. 



President Goodman called attention to a diagram (.see lK)ttom of 

 page 20) which had been distributed, showing in plotted form varia- 

 tions in co.st of i)roduct and volume of sales from 1907 to 1912. He 

 saiil that all must curtail i)r()duction or wait a long time for readjust- 

 ment so that the level of prices would be maintained on an even basis. 



The morning's session then adjourned. 



AFTERNOON'S SESSION— WEDNESDAY 



Edward Hines opened the afternoon session with a talk on better 

 business methods, and suggested a number of lines along which there 

 is room for improvement. The association levies an assessment of 

 four cents a thousand feet as a fund for promoting business, and the 

 speaker expressed the belief that three times that would bring much 

 better results proportionately, and might add a dollar a thousand 

 to the returns. If so, this would prove to be one of the best invest- 

 ments that could be made. The importance of getting better prices 

 cannot bo overestimated. It seems that everybody else is trying to 

 get more. The railroads are constantly figuring on ways to raise 

 freights, and labor shows iio willingness to accept lower wages. It 

 costs more to log, saw and sell, and the lumbermen are under tho 



