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HARDWOOD RECORD 



Jdne 10, 1918 



active support of so many new members who were not identified 

 with either of the old associations. He emphasized the fact that 

 "rapid strides are being made in securing new members" and on 

 the additional fact that the association is "rapidly approaching 

 producvion figures of one billion feet." Continuing, he said: 



This meeting has been called at this time by your executive committee 

 to bring about a full and thorough discussion of the many complex prob- 

 lems which the hardwood industry Is today facing. There has never been 

 a time in the history of the industry when there existed so many diffi- 

 culties in operation as exist today. The serious labor situation, car 

 shortages, embargoes affecting both domestic and foreign shipment, and 

 governmental regulations such as have never before occurred, and, being 

 without precedent, the combined eCEorts of the best brains in the industry 

 are required to bring about the nearest possible solution of these problems. 

 It Is, therefore, more than ever important that we have the greatest 

 cooperative effort. It is necessary that not only the combined resources 

 of the mills may be placed at the disposal of the government to assist 

 in every manner possible in the production of hardwood materials needed, 

 but it is also necessary for the protection of the very life of the industry 

 itself. 



Our association has some time since tendered to all departments of 

 the government Interested its services and assistance in any way and upon 

 any conditions the government may dictate. The association stands ready 

 to place its resources unreservedly and absolutely behind any plan or any 

 movement that has for its purpose the successful prosecution of the war. 



Unfortunately and unfairly, the hardwood material operators have 

 been, and are being, charged with asking exorbitant prices for their goods 

 and it is freely charged that prices on hardwood materials are beyond 

 all reason. I recently attended a dinner at which there were present 

 perhaps a dozen, or perhaps fifteen, of the largest hardwood operators In 

 the country and it was the consensus of opinion that there was not to 

 e.vceed an average advance of 25 to 30 per cent in the general selling prices 

 ofithe woods we are producing. It Is true there are special items in the 

 list that, due to the difficult specifications placed upon these items, make 

 the prices seem very high, but, to hardwood operators who are familiar 

 with production, even these prices on special grades and special require- 

 ments are not unreasonable. 



It was also the opinion of those present that the average operating costs 

 are from 75 to 100 per cent higher than they were twelve or eighteen 

 months ago. It is a strange but peculiar fact that, while prices of food- 

 stuffs have advanced from 100 to 300 percent, while the price of steel 

 has advanced from 100 to 400 per cent (and I believe It has been shown 

 in statistics that in some cases the price of metal has advanced as much 

 as 600 per cent), and while there have been other advances in proportion, 

 hardwood materials have not advanced in proportion to other commodities 

 or in proportion to operating costs. 



President Jurden paid his respects to the lack of any definite 

 system of cost accounting and strongly urged that the association 

 take steps to determine just what it costs to produce hardwood 

 lumber, saying: 



I regret exceedingly to admit that I do not believe that there exists 

 today in the hands of any hardwood operator an accurate and definite 

 system of cost data which would give reliable and incontrovertible figures 

 as to the cost of the various kinds and thicknesses of hardwoods we are 

 producing. It is an unfortunate and much-to-be-regretted state of affairs 

 and one to be given careful consideration at this meeting. 



If the hardwood operators were today called to Washington and asked 

 as to their Justified price of any particular kind, grade or thickness of 

 hardwood, based upon its cost of production, they would be up against a 

 hopeless and an Impossible task. It is, therefore, gentlemen, high time 

 that we "put our house in order." 



Tour executive committee has very carefully discussed this matter and 

 has suggested the appointment of a committee, to be known as the cost 

 committee, this committee to be given authority to employ the very best 

 and ablest cost accountants obtainable and to endeavor to work out a 

 system of uniform and standard cost accounting. 



Secretary-Manager John M. Pritchard, in his report, showed: 



(1) That the association had a total membership of 180, divided as 

 follows : One hundred and twenty-six Class-.\ memberships transferred 

 from the old gum and oak associations ; 30 Class-.\ memberships taken 

 out by firms not identified with either the gum or oak associations, and 24 

 memberships held by members of the rotary veneer department. 



(2) That assessments are now levied on 874,208,846 feet of hardwood 

 lumber, with the prospect that by the end of the present year they will 

 be levied on 1.000,000,000 feet, representing the cut of this association. 

 Present distribution of assessments is : Gum, 355,520,011 ft. ; oak, 260,- 

 487,699 ft., and other woods, 158,211,132 ft. 



(3) That the association had received during the past few months 

 Inquiries for 38,000,000 feet of oak, gum and other hardwoods, that 

 these inquiries had been bulletined to members and that the latter had 

 secured considerable business on the basis thereof. 



Secretary Pritchard, in his report, showed himself an enthusi- 

 astic believer in advertising and trade extension work. He urged 

 that money could not be invested 'by hardwood manufacturers 11 



any other way so profitably as in advertising and he reported that 

 the association has outlined a schedule of advertising and trade 

 extension work that will equal, if it does not actually exceed, 

 anything of the kind ever before undertaken. He emphasized his 

 belief that it is even more necessary now, when there is so much 

 government business at the expense of ordinary commercial busi- 

 ness, than usual, that lumber should be kept properly before the 

 public in order that the fruits of advertising and trade extension 

 work may be ready for the plucking when the war is over and 

 the trade once again returns to a peace basis. 



Secretary Pritchard emphasized the importance of the weekly 

 sales reports and the monthly stock reports issued by the associa- 

 tion, saying that these furnished information of such character 

 that greater intelligence could be used by members not only with 

 respect to the kind of stock to produce but also with respect to 

 prices at which lumber is sold. He urged, however, that, for these 

 reports to be as valuable as possible, every member should send in 

 his returns promptly for both the sales reports and the stock 

 reports. 



As to conditions created by the war, Secretary Pritchard said: 



Since our country declared war on Germany radical changes have taken 

 place in the demand for lumber, and on account of the enormous prepara- 

 tions being made by our government to fit out our fighting forces, direct 

 and indirect government requirements exceed all other demands. The 

 demands for lumber of various kinds for ship building, cantonments, fac- 

 tory buildings for manufacturing war materials, escort wagons and other 

 types of vehicles required by the army, airplanes, boxes, handles, and 

 numerous other items, are enormous, and it is the patriotic duty of every 

 lumberman to give first consideration to these requirements. 



The building industry, other than tor government purposes, has been 

 very much below normal, but is beginning now to show some improvement. 

 The demand for lumber, therefore, for interior trim, has been lessened. 



At the beginning of the year it appeared that the furniture industry 

 would be affected somewhat the same as the building industry, but later 

 developments show that the demand for furniture has exceeded expecta- 

 tions, and on the whole at the present time the furniture Industry is 

 limited more by shortage of labor and materials than by a demand for 

 furniture. It is further reported that the increased demand tor furniture 

 is largely tor the better qualities. This is accounted for by the increased 

 wages paid to labor. 



Secretary Pritchard also declared himself strongly in favor of 

 taking the necessary steps to determine the cost of hardwood 

 production and likewise in favor of uniform terms of sale for hard- 

 wood lumber, and dealt briefly with the necessity of organizing a 

 hardwood dimension department to bring about "uniform methods 

 of manufacturing and marketing hardwood dimension stock," here- 

 tofore sadly neglected by southern mills. In conclusion he said: 



So far the year 1918 has been the most strenuous ever experienced by 

 not only the hardwood Industry but by all other industries. Old methods 

 are being uprooted and it is a nerve-racking job for every man to do his 

 part in keeping the ship properly afloat. 



The first duty of every citizen is to assist the government and do every- 

 thing in his power to help win the cause of liberty, and no hardwood 

 lumberman will shirk this duty. But in performing our obligations and 

 patriotic duty to the government, it is also our duty to properly preserve 

 the interests of our industry. And I am sure It is not stating it too 

 strongly to say that our government requires and expects us to properly 

 organize and work as n unit for the best interests of our country. 



The report of William Pritchard, treasurer, showed receipts of 

 $29,947.26 up to May 25 and disbursements of $29,366.31, leaving 

 balance on hand of $580.95. It also showed that the assets of the 

 association are $7,998.63 as against liabilities of $2,331.62, giving 

 excess of assets over liabilities of $5,667.01. It also disclosed that 

 the approximate income of the association for the year will be 

 $71,579.68. 



C. L. Harrison, Cape Girardeau, Mo., chairman of the adver- 

 tising committee, indicated that the association had been very 

 generous in appropriations, that the money thus provided had been 

 used to the best ability of the committee, and that he and his 

 associates stood ready to use as much more as would be set aside. 

 "We have kept lumber prominently before the public as against 

 substitutes," he said. "We regard propaganda in favor of lumber 

 as the principal work of the association. We have been, and still 

 are, using the best magazines and trade papers. We are giving 

 serious thought, however, to a plan now being worked out of 

 advertising lumber more directly through exhibits. We hope that 



