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iSdichigan Manufacturers^ Annual 



Mi'iiibors of the Mirhitraii Har.lHood Manufacturers' Association 

 enjoyed at Detroit on Tuesday, July 28, one of the most in- 

 structive and fully attended annual meetings ever held by that 

 association. 



The usual valuable report of the market conditions committee 

 was easily the feature of the meeting. 



The business session opened with the usual roll call and reading 

 of minutes of the previous meeting. Secretary J. C. Knox then 

 announced the acquisition of one new member — the Standard 

 lloop Company of Bay City, Mich. 



Secretary's Beport 



The annual report of Secretary Knox was the first piiper to be 

 read, this following in part: 



The membership of our association lias been sircngtbcned during the .wnr 

 by the addition of tlic following menibcrs : A. M. Chesbrougb, Thompson : 

 Northwestern Cooperage & Lumber Company, Gladstone ; Spies-Thompson 

 Lumber Company, Menominee : W. U McManus Lumber Company, Pctos- 

 key : Strabic Manufacturing Company, .Saginaw : and since our last meeting 

 we have added the Standard Hoop company. Bay city, to our membership. 

 The flrms cutting out this .vear are A. F. Anderson Lumber Company, 

 Estate of F. W. Gilchrist. Churchill Lumber Company, Rol>inson Lumber 

 Company and the Batchclor Timber Company's stock is being reported to us 

 through the Bliss & Van Aukec Lumber Company's sawmill, which unfor- 

 tunately has been burned. 



We present to you today a very complete report of stocks, containing the 

 figures of every member of the association, which Is a record few 

 associations ever attained. Generally associations feel satisfied If they get 

 reports from seventj-five per cent to eighty per cent of their membership. 

 Members in reading their report of stocks on hand for .Tuly 1, 1914. and 

 comparing them with figures of a .vear ago, should not only take Into 

 consideration the fact of reduced buying in tbc last six months, but should 

 take into account that we have reports from two more members than a 

 year ago and that the reports of the seven additional memlwrs show a 

 production of 18,750.000 feet more hardwood and a sale of l.'>.000,000 feet 

 more than those cutting out. Having this information in mind will help 

 to explain to qnite an extent the Increased totals of our stocks. 



The forest Are protective department has been very active this season, 

 having had many extremely bard forest fires to contend with during the 

 dry period In May. When one realizes that nearly .50.000 acres were 

 burned over in less than two weeks, you can then Imagine tho chief 

 warden and his deputies had more than their hands full and taking all 

 things into account we should consider ourselves fortunate to escape with 

 so slight a loss. Mr. Hickok will cover the detailed work of his department 

 in his report to you today. 



The subject of Michigan lumber rates is still pending before the State 

 Railroad Commission and it Is likely to be some time before a decision is 

 reached in this iiucstion. The railrnnds on the western side of the state 



contemplate some changes in their lumber transit tiirllT and the goniral in- 

 ference Is that additional restrictions will be placed on this tramc that 

 can not fail to bring about a curtailment of the movement of lumber Id 

 transit on account of such change. 



The treasurer's report shows a balance of $2,385.82 in the gen- 

 eral fund and .$2,282.30 in the forest fire fund July ], 1914. The 

 first assessment of two cents i>cr acre covering our forest fire 

 protective department netted us $5,028.05; payment being made 

 on basis of 281,402.84 acres. The second assessment for this year 

 will be called for soon after August 1. 



U. Ballon of Cadillac, chairman of the railroad committee, an- 

 nounced that that committee had no formal report to make. The 

 same was true of the grading rules committee, D. H. Day being 

 chairman. 



Beport of Market Conditions Committee 

 W. C. Hull then read the following interesting and instructive 

 report on market conditions as :ilTecting members of the associa- 

 tion: 



Market conditions at this time demand the most careful consideration. 

 It Is particularly trying to compare the stocks of today with those of a 

 year ago, but we must remember that a year ago the stock conditions wore 

 more favorable to Michigan manufaclurcrs of lumber than they had been 

 since 1900. In other words, stock on band a year ago was away hclow 

 normal and the demand above normal. We 'should rather compare them 

 with the stocks of 1910-11 and 12, wlien It will be seen that the production 

 Is little, if any, above the normal. However, it is well to face the propo- 

 sition squarely and by comparing stocks on hand now with those of a year 

 ago, we note that there Is approximately 05,000.000 feet more stock on 

 hand unsold at the mills and In the yanls of our members at the present 

 time than there was a year ago. During the year, however, we lost five 

 of our members who had completed their operations, and added seven 

 new ones. These seven new mcmliers have stocks on hand of nearly 

 20,000,000 feet, aud the excess stocks of these seven new members over the 

 stocks held a .vear ago by the five retiring members is nearly 19.000,000 

 feet. Therefore, In order to make a true comparison, this 65,000,000 

 excess over .Tuly, 1913, stocks should be reduced by 10,000,000 feet, to 

 46,000,000 feet. The situation seems still more favorable when we note 

 that nearly forty per cent of this excess Is on the No. 3. 



The trouble Is not so much overproduction as it Is a lessened demand, 

 which applies no more to lumber than to all other commodities. This 

 tends to cause stocks to accumulate at the mills and suggests to some the 

 old and futile policy of cutting prices to move stocks. 



It Is the opinion of this committee after a careful study of all the 

 figures available, that stocks will not move by reason of price cutlln,; until 

 the low level of prices which, prevailed back in 1907 is again reached, or 

 nearly so. .lobbers and consumers today are practically i)are of stocks and 

 are buying only for their Immediale wants, and if the manufacturers 



