HARDWOOD RECORD 



21 



of tilt- privileges of this department. I believe 

 that the wholesaler who does the smallest busi- 

 ness can save the cost many times over each 

 year, and while every department of the asso- 

 elation work has its important place, this bureau 

 is in my belief the most valuable, n is in es 

 cellent condition so far as I can observe and 

 report, and we hope for a gain, of fifty new 

 subscribers next year. Respectfully submitted. 



The report of the Fire Insurance Com 

 mittee, which follows, was read by Chair- 

 man G. M. Stevens, Jr. 



Report of Fire Insurance Committee. 



Mr. President and Members of the National 

 Wholesale Lumber Healers' Association: The 

 report of your Committee on Fire Insurance this 

 year will be brief owing to the fact that little 

 of importance has been brought before the com 

 mittee during the past year. 



1 Hiring the infancy of this insurance move- 

 ment in your association there were naturally 

 questions of great importance before this com- 

 mittee, but in later years the various compa 

 nies making a specialty of lumber insurance have 

 handled these matters themselves, consequently 

 about the only purpose of a standing Commit 

 tee on Fire Insurance at the present time is to 

 be in readiness to act upon the call of the mem- 

 bers on questions between themselves and the 

 insurance organizations, and also to review the 

 Held of insurance at this season and be watchful 

 of any derogatory movements or methods of these 

 organizations against the policy holders. 



It is astounding when one considers the mag- 

 nitude to which this insurance movement has 

 grown from its inception at the annual meeting 

 held at Boston, March. 1899, when a small 



FRANK W. LAWRENCE OF BOSTON. 



• oterie of our members got together and formed 

 what was known as the Protective Trust Fund, 

 which was the first plan of mutual insurance 

 laid before this association. 



To quote you figures as to the saving that this 

 has made would be a most difficult problem. 

 It is sat\> to say that today there is undoubtedly 

 $100.0110,000 of risks carried by the various lum- 

 ber insurance companies throughout this coun- 

 try. You tan judge for yourselves what this 

 means in the w r ay of a saving to the lumber 

 trade at large. Without these trade companies 

 who can tell to what extent lumber rates would 

 have been advanced the last few years by tin- 

 board companies to reimburse them tor hea\y 

 losses which they have recently sustained. I 

 refer to the Baltimore insurance loss of $37, 



i »io. the Rochester losses, amounting to $2, 



500,000, and the San Francisco disaster, which 

 cosl mi, out $180,000,000. 



There can be no question but what the forma 

 tion of mutual and stock companies throughout 

 the whole country which have made a specialty 

 of lumber risks has saved the day so far as 

 rates are concerned. If it were not for the 

 independent underwriting companies undoubted^ 

 the rates made by the old stock companies would 

 in some instances be double what they are at tin- 

 present time. 



Another great benefit derived from the inde- 

 pendent companies has been the improvement 

 of the physical hazard of lumber risks by reason 

 of the close attention given by these companies 

 to the inspection of plants. Their inspectors 

 arc experts in lumber risks, and are consequently 



able to render much better services in this re- 

 gard than a general inspector. 



'I'railc insurance has been one of the biggi I 

 material benefits accruing from association work, 

 ami is something worthy of a jealous guarding 

 by those interested. The companies have to 

 date demonstrated beyond peradventure tin' safe- 

 ty ami excellent character of lumber risks at 

 considerable less than board rates. Thej are 



now sufficiently old to hav mplled their own 



experience tables, and it is generally conceded 

 that the experience of the trade companies is 

 today the very best criterion of the hazard Of 

 such underwriting. 



As a trade institution lumber insurance lias 

 come to stay, and we believe thai tic companies 

 in the field today are worthy of the full con- 

 fidence and patronage of every member of the 

 lumber trade. 



In closing, your committee cannot rcc iicnd 



I,,,, strongly tin' support of all tin' companies 

 now in the field. They are all writing business 

 on sound insurance principles, and we believe 

 their aim is fair treatment and just dealings 

 with all police holders. Respectfully submitted, 

 G. M. Stevens, .lie Chairman. 



William G. Frost, chairman of the Com 

 mittee on Arbitration, made tin- following 

 report : 



Report of Committee on Arbitration. 



National Wholesale Lumber Dealers' Usocia 

 tion: The work of your Arbitration Commute.- 

 for the year just closing has been somewhat 

 less in the number of ras.-s actually arbitrated 

 than formerly, which is an indication thai our 

 members and the wholesale and retail trade 

 generally are able to carry on and consummate 

 deals in large numbers and representing large 

 transactions with but little friction or trouble — 

 certainly less than in former years. We do not 

 say this' without first having the knowledge that 

 our legal department, entirely separate and dis- 

 tinct from the arbitration work, lias bad lower 

 disputed cases in court each year, even in face 

 ,,f our association's larger membership and a 

 much increased volume of business done generally 

 by the members. ,, 



Believing it to be the desire of all to avoid 

 trouble, and that any properly directed, eon 

 eciteil action looking toward the avoidance 01 

 trout. b ■ is a worthy and important work for the 

 association, we desire to cite or explain some- 

 thing of the workings of the department. 



First, we have evidence and proof thai the 

 mere existence of this arbitration tribunal has a 

 salutary effect in lessening the number of law- 

 suits and litigations in which our members 

 would be involved. 



Second, we are convinced thai tl ases sub- 

 mitted to us are in the main adjusted to the 

 satisfaction of all concerned, and that the saving 

 of time, collection and lawyers' fees and court 

 expenses has been great. 



Again, we believe that parties to an arbitra 

 tion as a rule can consistently, and often do, 

 continue dealings with each other, whereas bad 

 the same eases been brought to suit the feelings 

 of on ■ both participants would generally pre- 

 vent further transactions. 



During the year now closing a large number 

 of cases have in one way and another been 

 submitted to the association, some with instruc- 

 tions to commence suit at once, others for sub 

 mission to our committee, still others merelj 

 citing the trouble and seeking a remedy. Mr. 

 Perry, sometimes after consultation with one or 

 more members of the committee, but usually 

 without assistance, has amicably negotiated an 

 adjustment of many of these difficulties. Many 

 cases where a settlement outside of court seemed 

 impossible have been quickly adjusted to the 

 satisfaction of all. Your committee wishes to 

 heartllj thank Secretary Terry for bis interest 

 and attention t.. this part of the work, realizing 

 be lias not only relieved the committee by 

 greatly lessening the number of cases, but has 

 ]n e S , -tiled publicity and expense as well, which 

 ih, interested parties must appreciate 



The Arbitration Committee has and docs at all 

 times stand ready to consider and order a [air 

 ami Impartial settlement of all eases placed In 

 it- bands. We thoroughly believe in arbitration 

 and strongly approve of its continued applica 

 tion in our' association work and highly com 

 mend ils use to our members. Respectfully 

 submitted, William G. Frost, Chairman. 



YV. W. Knight, chairman of the Commit- 

 tee on Terms of Sab-, report.-, I on behalf of 

 his committee as follows: 



Report of Committee on Terms of Sale. 



Your committee has little or nothing new to 

 report as having taken place during the past 

 year on this subject. 



The question of equalizing or unifying the 

 t.i-ius ,,f sale all over the country and to applj 

 in all the different branches of the lumber trade 

 is a difficult one. Local conditions and old 



established customs are hard to change. To 

 quote from a letter recently received by the 

 chairman. "It is reported thai practically all of 

 the Philadelphia and Pittsburg concerns allow 2 



pel nt for cash in thirty days. These terms 



are said to be printed on their stationery. Many 

 firms in these markets allow 2 per cent thirty 

 days, 1 per cent sixty days, or ninety days 

 net." The writer shows that in a measure 

 this reported condition is a fact, and the same 

 remarks apply in a measure to other markets. 



The time consumed in transit has a very large 

 bearing on the question also, as shipment from 

 the Pacific coast never takes less than thirty 

 days and sometimes as much as sixty days for 

 delivery. The consignee is presumably entitled 

 to examine tin- shipment before payment, and is 

 further entitled to discount his bills after re- 

 ceipt of the goods. 



The same remarks apply to shipments from 

 the South to the North and from the Fast to 

 the West, where the delays in transit are likely 

 to retard the prompt delivery of any shipment. 



We all suffer from the natural inclination of 

 the purchaser to take advantage of every point 

 possible to prolong the time in which he is 

 entitled to discount, and the millennium will 

 have arrived when the lumberman is able to dis- 

 pose of his merchandise for ion cents on the 

 dollar instead of 08 cents or 98 V- cents, as at 

 present. 



This is the condition in which we are doing 

 business. We practically say to the purchaser 

 that our lumber is not worth what we ask for 

 it. and therefore offer it subject t«. a _' per cent 

 discount. Whether litis condition can be elimi- 

 nated in time to come is a question for the 

 future to decide. 



The committee hesitates to make any s| al 



recommendations at this time further' than to 

 ask the cooperation of the trad.- in general to a 

 stricter enforcement if possible of tin- terms 



C. E. LLOYD OF PHILADELPHIA. 



already established by this association. It is in 

 such prosperous times as these that the seller 

 can more consistently carry out and insist on ills 

 own terms of settlement, than to wait for a 

 time when the lumber trade is seeking business 

 and the manufacturer or consumer being on the 

 still hunt for practically all the lumber that can 

 be delivered with any degree of promptness, 



.Mr. Perry reports that a question which has 



pled his attention a good deal is t be quest ion 



of the legality of having printed across the 

 top of the letter-head or across tin- bottom of it 

 or on the back of it certain conditions. In the 

 legal department the question has come up very 

 often as to the cause of the delays, etc. and its 

 effect on conl tacts. At Mr. Perry's suggestion 

 and in consultation with a number of the mem- 

 bers during the past two years the question 

 of making these conditions a pari of a letter has 

 Men considered from many standpoints, and a 

 number of our members have adopted tin- plan 

 of making the special conditions a part of the 

 letter by having it printed in their letter in a 

 way that ill quoting or writing tin- conditions be 

 come a part of the quotation or letter; the 

 name, address, etc., being first inserted above 



the .conditions and the l.alan. ! the letter 



following the conditions. 



Your committee believes that s united ac 



tion mi the part of the members along this line 

 would very materially aid the association in the 

 collection of dispute. I accounts, for it is .lint 

 cult at times to arrive at a tan- adjustment of 

 disputed accounts because parties claim that they 

 did not pay any attention to th nditions 



