C. F. SIMd.NSdN. ilIICAGd 



ALEX SCHMIDT, PnESIDEXT CINCINNATI 

 LUMBERMEN? CLUB 



n. S. KEI.LOCJG. CHICAGO 



in general and asked emiihatically for the moral and financial sup- 

 port of the Hardwood Manufacturers' Association. 



J. M. Pritchard, secretary of the Gum Lumber Manufacturers' 

 Association, Memphis, spoke on the subject ' ' Gum ' ' and told of 

 ambitious plans on foot for the coming year. 



President Himmelberger called the attention of the association to 

 a meeting which was held the day before by the executive board, at 

 which the following resolutions were formulated addressed to the 

 Interstate Commerce Commission and railroad presidents. 



To THE) INTERST.\TE COMMERCE COMMISSION 



The Hardwood Manufacturers' Association, having as members the 

 majority of the important hardwood manufacturers in the southern 

 states, and voicing the interests of more tlian 5,000 small hardwood 

 manufacturers in those states, notes with alarm the decision and order 

 Issued in Docket 1S4, increasing the rates on hardwood lumber from 

 those states, and in view of the hearing on Docket 520 now being held 

 covering tariffs suspended, carrying all of the advances asked for by 

 the carriers in 1S4, ask that the order issued by your commission in 

 184 be suspended until the hearing in 320 has been finished and your 

 commission has had an opportunity to review the great volume of testi- 

 mony the hardwood lumbermen have put in tiie record, showing that 

 more than seventy five per cent of the hardwood mills in the South are 

 now closed down and many others operating at a loss, and that inevitable 

 disaster will follow if the railroads continue the short-sighted policy 

 now being pursued in burdening this industry with rates which the 

 business cannot stand, even in normal times. Freight rates on lumber 

 are now proportionately higher than on any other commodity, and we 

 think a readjustment should be made placiug lumber on a fair basis as 

 compared with other commodities. The railroads, while suffering from 

 loss of tonuage, are securing full tariff rates on all freight that moves, 

 whereas prices of hardwood lumber have declined correspondingly with 

 the decline in the volume of business. The record in .")20 Is the most 

 complete record ever made showing the condition of a particular in- 

 dustry, and we trust the inflexible sense of justice of the Interstate 

 Commission will grant this appeal. 



To THE Railro.\ds 



The Hardwood Manufacturers' .\ssociation. having as members the 

 majority of the important hardwood manufacturers in the southern 

 states, and voicing the interests of more than 5,000 small hardwood 

 manufacturers in those states, notes with alarm the decision and order 

 of the Interstate Commerce Commission in Docket 184, increasing the 

 rates on hardwood lumber from those states. More than seventy-five 

 per cent of the hardwood mills in the South are now closed down and 

 many others operating at a loss, and we appeal to your better judgment 

 to avert the inevitable disaster which will follow if these rates are put 

 into effect, hnrdening the industry with rates which the business cannot 

 stand, even in normal times. 



We, therefore, ask that your road does not act on five-day order 

 granted in 184 and advance the rates granted, because the industry 

 cannot stand it, and it done it means the ruination of the hardwood 

 business on your line, which has been built up at such great expense. 



May we have your favorable answor to the request? 



Efficiency and Costs 

 An address by L. V. Estes, president of L. V. Estes, Inc., Clii- 

 cago, dealt with the subject, "Efficiency and Costs." 



The speaker made a distinction between "cost accounting" and 

 ' ' accounting for costs, ' ' and he explained the difference somewhat at 

 length. According to his definition cost accounting is a function 

 of the book keeping department and is wholly clerical. It coasista 

 of keeping records in proper shape after they have been sent to the 

 bookkeeper 's desk. 



Accounting for costs, however, is a matter of a different kind, 

 according to the definition given it. It includes investigation in the 

 factory and yard. Something more is involved than recording figures. 

 The handling of cost items includes planning in advance, not only 

 for the purpose of determining of what such costs shall consist, 

 but likewise to keep the costs within proper bounds, and to see to 

 it that no items get there unless that is where they belong. 



In other words, cost accounting should begin in the factory or 

 yard and end in the office — it should not begin and end in the of- 

 fice. Many factories keep records which the office makes no use of, 

 but should do so. For example, if the cutter at a swing saw stacks 

 up a pile of waste, and by checking against original measurements 

 can tell how much waste there is, that information ought to go to the 

 office to be figured in the cost. Otherwise the cost sheet will lie in- 

 comiiletc. 



It is essential to know what becomes of every scrap, whether finally 

 wasted or finally used. This is of no less importance than knowing 

 what becomes of every minute of the workman's time which is paid 

 for. Work accomplished and time profitably employed have a place in 

 the cost account; but it is no less important that record should be 

 kept and used of lost time and wasted material, and the proper place 

 to head these items off is before thoy have taken place in the factory. 



The Thursday session was concluded with a general discussion on 

 business conditions, in which the following prominent members took 

 jiart: J. W. Mayhew, Ralph May, S. B. Anderson, Max Pea.se, R. M. 

 Carrier, R. H. Vansant, R. L. Hutchinson and W. E. DeLaney. 



The concluding business was the appointment of committees on 

 nomination, resolutions and officers' reports. 



ENTERTAINMENT 

 An elaborate smoker had been arranged for by the association, at 

 which practically every visiting and local lumberman was present. 

 It seemed to be the consensus of opinion that this was one of the 

 cleanest and most entertaining functions that had ever been offered 

 at a lumber meeting. 



FRIDAY MORNING SESSION 



The first business of the Friilay morning session was the consid- 

 eration of the adoption of a new constitution. The president ap- 

 pointed as a committee on this question, Vf. B. Burke. R. M. Carrier 

 and E. A. Lang 



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