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HARDWOOD RECORD 



W. W. DINGS, ST. LOUIS, MO., DIRECTOR. 



products are handled with a view of making 

 something out of them in the way of a profit to 

 each man handling the same. 



In practically all lines of commercial busi- 

 ness the jobber or distributor is a necessity as 

 the medium between the manufacturer and pro- 

 ducer and a certain class of buyers. It would 

 be inconsistent to assume any position that 

 meant the elimination of the jobber or distrib- 

 utor from the avenues of business. The manu- 

 facturer of any commercial product and par- 

 ticularly of lumber is interested in making large 

 and permanent contracts. The consumer often 

 buys in small quantities. In cases of this char- 

 acter the jobber or distributor is a necessary fac- 

 tor- between producer and consumer. This rule 

 will apply alike between producer and consumer 

 of lumber the same as producer and consumer of 

 agricultural or any other commercial product. 

 In the relations between the large manufacturer of 

 lumber and the large manufacturing consumer of 

 lumber the more closely they can identify then- 

 interests the better for each. They can consist- 

 ently cultivate and encourage mutual relationships 

 between each other that will prove iu every way 

 satisfactory to the producer and likewise profit- 

 able to the manufacturer. If the large manufac- 

 turer of lumber distributes the products of his 

 mill through the wholesale dealer or jobber, it must 

 be on such a basis of prices as will give the 

 wholesale lumber dealer or jobber a profit in 

 bis transaction with the consumer. The large 

 manufacturing consumer in many cases employs 

 men whose business it is to look directly after 

 the lumber supply of the business they repre- 

 sent, and necessarily he must go either to the 

 lumber manufacturer, to the wholesale lumber 

 dealer or to the broker. In order- to supply his 

 wants a1 the lowest possible cost he naturally 

 would seek the lumber manufacturer first. This 

 • lass of buyers in many cases handle more 

 lumber than many small wholesalers or jobbers 

 do.. In the list of large buyers there are many 

 of the large furniture manufacturers, wagon 

 and carriage manufacturers, car constructors, 

 railway builders, agricultural implement manu- 

 facturers, bridge builders, etc. The successful 



conduct "t ...in ;ii;ii business in this twentieth 



century makes it necessary for the producer to 

 sell bis products at the very best price possible 

 to obtain, and the same rule makes it necessary 

 for the large manufacturing consumer to buy 

 his supplies at the lowest possible basis of cost. 

 To do this, in case of lumber, it is natural that 

 he should look to the producer for his source of 

 supply, consequently no two interests in hand- 

 ling lumber can possibly be more closely iden- 

 tified with each other than that of the lumber 

 manufacturer and the large manufacturing con- 

 sumer. 



Another strong reason for mutual relationship 

 between the lumber producer and large manu- 

 facturing consumer is that as a rule the manu- 

 facturing consumer requires nearly all the grades 

 of lumber turned out by the mills, and in buying 

 directly from the mills they will usually * get 

 about the proportions of each grade required 

 in the conduct of the business. And, as a 

 rule, lumber purchased under such conditions 

 will run of a more uniform grade than if bought 

 through the wholesale dealer. It is natural for 

 the wholesale dealer to regrade his lumber in 

 many cases and put in .a higher grade when he 

 sells lumber that has been bought on a lower 

 grade. 



Then again many wholesale dealers and job- 

 hers are prepared to handle lumber and cut it up 

 into dimension stock. In doing this they natur- 



ally sell the dimension stock on grade, and very 

 justly and appropriately there will be a great 

 deal of the stock that was bought on the basis 

 of the lower grade that when put into dimen- 

 sion stock properly belongs to the higher grade. 



If the large manufacturing consumer buys 

 from the mills direct, he saves to his factory 

 all the advantages to be gained by cutting into 

 dimension stock and by the improvement in 

 grades in this way. 



Now it would not be at all consistent to ad- 

 vocate that all manufacturing consumers of 

 lumber should buy direct from the producer. 

 The whole country is full of worthy and suc- 

 cessful small manufacturing consumers of lum- 

 ber who cannot for want of capital or piling 

 space lay in large quantities such as the large 

 manufacturing producer would want to sell, 

 hence that class of manufacturing consumers 

 must necessarily go to the small mills or the 

 wholesale lumber dealer for his supply. 



In my opinion there has been no better sys- 

 tem or rules for grading adopted than the rules 

 approved by the Hardwood Manufacturers' Asso- 

 ciation. They appear to me to be simple, plain 

 and fair alike to seller and buyer. If properly 

 construed they are not accessible to so many 

 constructions as other rules that are now and 

 have been heretofore in use by lumber dealers. 

 In the conduct of nearly all lines of manufac- 

 turing business, with the single exception of 

 lumber, the methods of grading are fixed by the 

 producer, or if not directly so by common con- 

 sent and custom, and practically a uniform rule 

 applies in all sections of the country. It would 

 be far belter for both producers and consumers 



C. A. SCI1ENXK. BILTMORTE, N. C, DIREC- 

 TOR. 



of lumber to be governed by one uniform rule 

 of grading. In this both the producer and con- 

 sumer are alike interested. 



The policy of the Hardwood Manufacturers' 

 Association should be to continue the high plane 

 upon which the association was first organized. 

 Its effort should be to cultivate the most inti- 

 mate relationship between the manufacturer and 



pr icer and the manufacturing consumer of 



lumber, and to accomplish this end I would ad- 

 vocate extending the limitation of membership 

 and making eligible planing mills, car builders, 

 furniture manufacturers, wagon and agricultural 

 implement manufacturers, bridge and ship build- 

 ers, and in fact all legitimate enterprises using 

 largely of wood products who could be classed 

 as manufacturing consumers. This plan would 

 interest a much larger number of manufacturing 

 consumers and more closely identify them with 

 the manufacturing producers. 



There is probably no industry in the country 

 today that is surrounded with more uncertainty 

 and more complications than that of producing, 

 distributing and consuming lumber. 



ii' forests are being rapidly exhausted. Each 

 year will show a greater shortage in the supply 

 of lumber and necessarily a corresponding ad- 

 vance in its market value, and as lumber gets 

 scarcer and more diflieult to obtain, the interest 

 of the producer and the manufacturing consumer 

 will necessarily become more closely identified. 



One of the greatest benefits to the lumber in- 

 dustries of the country, and this applies alike 

 to producer and consumer, is the information 

 and statistics derived, compiled and distributed 

 through the Hardwood Manufacturers' Associa- 

 tion, covering the supply and demand for lum- 

 ber. 



Every large manufacturing consumer of lum- 

 ber is directly interested both in the supply and 



price. Information covering both of these points 

 can be no more accurately obtained anywhere 

 than through the olfice of'the secretary of the 

 Hardwood Manufacturers' Association ; through 

 that medium the producer is enabled to locate 

 t he buyer, and the buyer is advised where he 

 «au find the producer. 



The relationship brought about between the 

 manufacturing producer and the manufacturing 

 consumer through the systematic methods of the 

 Hardwood Manufacturers' Association tends 

 largely to minimize losses through bad debts 

 and the sale of lumber to irresponsible buyers. 



As the scope of the association is extended and 

 its membership increased the extent of the bene- 

 fits io both buyer and seller will be increased. 

 There will perhaps never be a greater number 

 of sawmills in operation in the United States 

 than a i t lie present time. It is very doubtful 

 if there are as many mills in operation now as 

 there were five years ago. This condition is 

 being broughl about by the depletion of the 

 forests, and .as this process goes along greater 

 economy in the production of lumber and its 

 distribution and uses must lie practiced both by 

 the producer and the consumer. 



Through the work of the Hardwood Manufac- 

 turers' Association since its organization great 

 improvements in the conduet of producing and 

 distributing lumber have been made. Its mission 

 has by no means been finished. Its policy should 

 be io mutually identify in its work every inter- 

 esl embracing production, distribution and con- 

 sumption of lumber. 



It should contiuue to advocate a uniform 

 method of grading, and in every possible way 

 encourage a closer relationship between the man- 

 ufacturing producer and the manufacturing con- 

 sumer of lumber. 



Report of Committee on Reports of Officers. 

 Next was received the report of the com- 

 mitter appointed at the morning session to 

 consider the addresses and reports of the 

 association officers. Their report, which 

 follows, was on motion adopted: 



Mr. President — We your committee have thor- 

 oughly digested the reports of the president, 

 secretary and treasurer in their details, and be- 

 lieve that the association can be greatly bene- 

 fitted by bringing out the important subjects 

 that have been fully covered by their recommen- 

 dations. 



The first subject is one of great importance to 

 the entire producing sections of the hardwood 

 industry embraced within the territory drained 

 by the Mississippi river or its tributaries. TJn- 

 der this bead is embraced the most important 

 source of transportation that interests lumber 

 manufacturers, and we therefore recommend 

 that every possible encouragement be given to 

 the development and improvement of the water- 

 ways of the country by appointing a committee 

 of five. 



In the past we have been asked as an organi- 

 zation to fake active part iu matters which have 

 do1 been fully developed, regarding the methods 

 of transportation by rail — rates, weights, speci- 

 fications, etc., and the suggestion that a trans- 

 portation committee of five be appointed is one 

 of importance to the association as one of its 

 great items of cost. 



We recommend that the rules of the associa- 

 tion be so amended as to admit manufacturing 



W. H. NIGH, IRONTON, O., DIRECTOR. 



