20 



HARDWOOD RECORD 



June 10, 1918 



buyer unless it was shown that inability to make delivery within 

 the time preceding the advance had been due to no fault of the 

 sellers. 



Mr. Sondheimer thought that, under the 80 per cent rule, adjust- 

 ments would be made easier, and B. T. Cooper said that he thought 

 80 per cent terms would represent a fine start after the industry 

 had floundered around so long with no definite terms at all. 



Mr. Anderson was strongly opposed to this idea, however, and 

 expressed his opposition in virile language. "We can establish 

 any terms we want," he said. "Things are coming our way. We 

 might just as well start at 100 per cent. I have had considerable 

 experience with the terms contained in the majority report of the 

 committee and I find them satisfactory. We are getting checks 

 every diy for 80 per cent of the net amount. I am willing to give 

 2 per cent cash discount but not a 2 per cent trade discount. In 

 export business we have always drawn for 100 per cent. Importers 

 knew that, if there were anything wrong, it would be adjusted. 

 Everybody in the export business made the same terms and foreign 

 buyers had to accept them. We can do the same thing in the 

 domestic trade but, in order to accomplish this, we must all stick 

 to the same terms. 



R. L. Muse, Walnut Eidge, Ark., did not think it wise to assume 

 the T.'-le of dictator and counselled going mildly so that lumber 

 manufacturers "may look their customers in the face when condi- 

 tions revert back to what they have been." 



Mr. Anderson explained at this juncture that every dollar would 

 be due in 60 days and that 80 per cent would be due on receipt of 

 invoice, subject to a cash discount of 2 per cent, and the remainder 

 on receipt of the goods. 



Roland Darnell, speaking of the responsibility in connection with 

 adjustments after giving acceptances, said the lumber trade is 

 responsible just as the steel people and other interests are responsi- 

 ble and that the lumber men should get 100 per cent "because of 

 our responsibility." He declared that Mr. Anderson was getting 

 those terms and that all the lumbermen could get them if they 

 went after them and insisted on them. 



Mr. Muse said that, because of lack of organization and system, 

 the lumber business differed radically from the steel and iron busi- 

 ness and that lumbermen vary quite as much as their customers. 

 "There are lumbermen and there are lumbermen," he said. "Some 

 know lumber and some don't. Some know grades and some don't. 

 It is mighty easy to get into the lumber business but it is frequently 

 quite difiicult to get out of it — whole. ' ' 



N. H. Walcott thought it advisable to ascertain what terms are 

 used by other associations. 



E. A. Lang of Chicago thought it unwise to be hasty in acting on 

 a subject of such importance and therefore moved that the subject 

 be left in the hands of the present cost committee. The latter will 

 report to the executive committee and these gentlemen will draft 

 uniform terms of sale which will be binding on all members of the 

 association. This motion prevailed by unanimous vote and these 

 terms will be announced shortly. 



John W. McClure made a statement to the members regarding 

 the controversy with the vehicle interests having contracts with 

 the government for large quantities of army escort wagons, but 

 this statement was solely for members and the press was requested 

 to abstain from publishing anything in regard thereto. Mr. MeClure 

 was a member of the committee from the association which recently 

 published the report of its work in Washington that caused so 

 much comment. 



S. M. Nickey, chairman of the inspection rules committee, said 

 he and his associates had had very little to do in striking contrast 

 with the similar committee of the National Hardwood Lumber 

 Association. He said that his committee had had some suggestions 

 regarding a uniform standard of inspection but that, before it could 

 take action thereon, a number of lumbermen had gotten together 

 in Chicago and sent out a letter on this subject. Later Mr. Nickey 

 introduced the following resolutions, directly in line with the policy 

 of the association as outlined at its organization meeting in Janu- 

 ary, which were unanimously adopted: 



"That the association adopt any proper plan which has for its 

 purpose the bringing about of a universal standard of inspection 

 of hard wood lumber under one set of inspection rules, without, at 

 this time, going into the details of any proposed plan." 



These resolutions were not only adopted but they were adopted 

 without a single word of discussion. 



F. F. Fee, president of the National Lumber Exporters' Associa- 

 tion, said there was practically no export business at the moment 

 because of lack of ocean shipping space and the prohibitive rates 

 thereon. He asserted that lumber is being exported only to the 

 governments allied with the United States in the present war and 

 that this is being used almost exclusively for war purposes. He 

 also said that it is being sent as dunnage because the government 

 has pre-empted all ocean cargo space for moving troops, foodstuffs, 

 materials and general war supplies. Indeed, he declared the export 

 business about as near nil as he hoped the kaiser and the institu- 

 tions for which he stands would be at no distant date. 



Horace Taylor, president of the National Wholesale Lumber 

 Dealers' Association, brought greetings from that body to the 

 American Hardwood Manufacturers' Association. He expressed 

 pleasure at coming to Memphis because of the active interest Mem- 

 phis lumbermen take in the good of the industry. He regarded a 

 cost system as highly essential and declared that "if we are to 

 maintain the soundness of our prices, we must be prepared to go to 

 Washington and present intelligent ideas of our costs." 



James E. Stark, after reading extracts from resolutions adopted 

 by the Southern Hardwood TrafSc Association against the proposed 

 advance of twenty-five per cent, as affecting lumber and forest 

 products, presented the following resolutions thereon, which were 

 adopted by unanimous vote: 



Whereas, Reports received through the pi-oss and other sources indi- 

 cate the intention of the United States railroad administration shortly 

 to request the common carriers to file tariflfs naming a horizontal advance 

 of twenty-five per cent in all freight rates, and 



Whereas, It is the desire of the members of the American Hardwood 

 Manufacturers' Association to favor any plan which will result in the 

 successful conduct of the war, the members of this association being anxious 

 to support the plans of the government, and 



Whereas, The members of this association feel that this is a matter 

 which should also be carefully considered in the light of its effect on busi- 

 ness conditions after the close of the war, therefore be it 



Resolved, By the -American Hardwood Manufacturers' Association that 

 we recommend that this matter be first carefully considered by the Inter- 

 state Commerce Commission, the association pledging its full support and 

 confidence to the Interstate Commerce Commission in any decision it may 



F. F. Fee, speaking of the resolutions, said the country needs 

 help but that, in order to be effective, this must be intelligently 

 given. He did not approve of such a heavy advance on lumber 

 and other materials essential to the successful conduct of the war. 

 On the contrary, he strongly advocated increase in revenues for 

 the railroads through a sharp advance in passenger rates, which he 

 termed a tax on "joy-riding." Continuing, he said: "Lumber is 

 a necessity to the government in winning the war and the govern- 

 ment should help us to tide over present conditions. We are loyal, 

 as demonstrated by our contributions to the Red Cross and other 

 war funds and as shown by our purchase of Liberty bonds. The 

 lumber industry is suffering from emergencies. We should be will- 

 ing to give the advances if they are shown to be absolutely neces- 

 sary, but we want to be sure that they are necessary. In the event 

 they are, we should act accordingly." 



Mr. Stark, in presenting the resolutions, suggested that the hard- 

 wood lumber industry might be able to pay the advance now while 

 there is such stimulus from the vast needs of the government, but 

 he believed the trade, in considering this subject, should look at it 

 from the standpoint of what its effect on the industry will be wlien 

 this stimulus is taken away and when the trade must rely on the 

 regular laws of supply and demand. 



After a brief statement on the labor situation, during the course 

 of which he said that one of his firms had been forced to raise 

 wages three times within the past three weeks in order to keep its 

 plant in operation, and during which he decried the action of gov- 



