3° 



HARDWOOD RECORD 



the fact that twenly-one members arc applying lliem : ten members are 

 not applying them ; eigbt members are applying the old terms on cargo 

 shipments ; five members are applying the old terms on old contracts ; ten 

 cargo shippers are not using them, and fourteen members did not reply 

 to our inquir.v. 



The Pacific coast rate case, which was started under the auspices of 

 this association, hut for which the association was not responsible except 

 tor the amount voted to aid the matter, has now reached a point where 

 we are presenting st.atement of shipments actually made to the Pacific 

 coast from this territory on which reparation is to be asked for. and we 

 believe allowed, in excess of the rate oc 80 cents per one hundred pounds. 

 you will shortly receive blanks for filling in this information and are 

 requested to let us have date of shipments, car number and initials, 

 contents of car. weight, originating point, final destination, total charges 

 collected, together with bill of lading and expense bill, in order that we 

 may properly protect your interests. li\'ill you kindly see that the 

 information is given the secretary as soon as possible as the 

 information must be compiled for the hearing in Chicago about the middle 

 of September. 



You have heard much about milling-in-transit on lumber and other 

 commodities and the secretary has called attention of the members to 

 the proposed changes in the tran.sit rules on logs and lumber and is 

 ilooking for an early promulgation of rules in handling of both logs and 

 lumber that will be of much importance to the manufacturer of lumber 

 especially. This is not a movement by the railroads, but has been 

 brought about by various complaints to the commission of the misuse of 

 the transit privileges granted the shippers, so that the commission has 

 decided to take hold of the matter and prescribe methods for their 

 prevention. 



In looking into this subject, the commission's attorney has made the 

 statement that instead of allowing the special log rates to apply from 

 originating point in the woods to the manufacturing point and the 

 regular rate on manufactured product from the manufacturing point to 

 destination, the two rates were one and should be guarded into the 

 manufacturing point as well as out of it. and it is likely that some 

 regulation of this kind will be promulgated which may be of material 

 «ffect upon the meml)ers of this association, who are depending upon the 

 railroads for movement of their logs to the manufacturing point. 



At our .January meeting the question of proposed changes in the 

 'hardwood rules of the National Hardwood Lumber .Association was 

 •discussed and the subject left to the grading rules committee to formulate 

 such changes and report same to the members at the spring meeting of 

 the association. The bureau of grades of the Northern Hemlock and 

 Hardwood Manufacturers' Association also discussed the same subject and 

 sent a committee which met with us in Detroit. April 18. Our own 

 committee met a day prior and drafted such rules as they desired. .\t 

 the meeting on April 18 a few changes in these recommendations were 

 made and the secretary instructed to present these rules to the chairman 

 ■of the grading ruU-s committee of the National Hardwood Lumber 

 Association, which was done and both the Wisconsin and Michigan 

 members were invited to meet the grading rules committee of the National 

 association prior to their presentation for adoption or rejection. The 

 changes desired in the proposed rules were compromised and presented 

 to the National association, but were defeated. -\ report from our 

 chairman of the grading rules committee ou this subject will undoubtedly 

 ibe made today. 



A .vear ago the association secured the services of Charles I. Sweet as 

 Inspector of hemlock. Mr. Sweet visited the yards of the various 

 members and endeavored to line up the grades as nearly as possible. It 

 was thought best to discontinue Mr. Sweet's service which was done — 

 a canvass of the members showing that the members shipping by car did 

 not desire to put their money into the proposition. 

 The above report is respectfully submittcil. 



.1. C. Kno.\, Secretary. 



In the absence of the treasurer, the secretary 'was instructed to 

 read his report, which showed receipts of $4,462.17 and expendi- 

 tures of $1,856.56, leaving a balance on hand July 15, of $2,605.61. 

 He then read the statement of the Forest Fire Protective Depart- 

 ment, which showed receipts from assessments of $5,923.92. The 

 expenditures to July were $3,544, leaving a balance on hand on 

 July 22 of $2,379.19. 



J. M. Harris of Boyue City, Mich., talked on the recent compen- 

 sation act passed by the Michigan legislature providing for mutual 

 liability insurance. Mr. Harris has been employed as a special * 

 agent and as attorney in connection with liability companies malt- 

 ing a specialty of casualty risks in northern Michigan. He stated 

 that the act which goes into effect September 1, removes the 

 defense assumption of risk, contributory negligence and also the 

 fellow servant clause. Mr. Harris stated that the law is optional 

 ■with employers but that they will be burdened with a greater 

 liability by not coming under it. He stated further that the 

 employer not coming under the new law would have as practically 



his only defense, proof that the accident was caused entirely 

 through the liegligeuce of the employe. 



Under the new law all accidents must be reported to the 

 Industrial Board, which fixes upon a suitable settlement. It further 

 provides that the Circuit Court, upon submission of a certified 

 claim, may enter .judgment for the amount fixed by the board and 

 this judgment becomes a lien upon all the property of the employer, 

 subsidiary only to wages and taxes. 



Four plans for the payment of compensation were submitted to 

 employers for selection as follows: 



1 He may carry the risk himself if his financial responsibility is 



approved by the board. 



2 He may insure in any old-line accident company approved by the 



board. 



3 He may pay into the state insurance department such premiums as 



are fixed for the purpose by the insurance commissioner, and in this case 

 the state will administer the fund and indemnify accidents to his em- 

 ployes. 



4 — He may become a member of a mutual insurance company organized 

 for this purpose. 



The fourth plan was the one chiefly discussed by the speaker. 

 The mutual companies so organized carry only employers liability 

 insurance and can be embraced only by such employers as come 

 under the insurance act recently passed. The employment of five 

 thousand employes on the regular pay rolls by concerns forming 

 such a mutual company is necessarj- according to the law and such 

 concerns must be more or less in the same line of business. In 

 this particular, Mr. Harris stated, such lines of manufacture 

 as tanneries, wire fence plants, chemical plants, etc., would be 

 grouped in a general way with the lumber industry-. A fixed annual 

 prcmiutti must be provided tor meeting the contingent lialnlities of 

 such a mutual company. 



Mr. Harris said further that individual employes are sub-classed 

 according to the nature of their labor. Classification under the old 

 form of casualty insurance would be suitable for this subdivision 

 of employes. 



A sufficient per cent of annual premiums worked out in accord- 

 ance with the percentage already established by certain under- 

 writing concerns, will, according to the new act, be set aside 

 annually for the creation of a reserve fund. 



Mr. Harris' paper was followed by a comprehensive line of 

 questions from members of the association, one of which brought 

 out the fact that where the new compensation laws are in effect, 

 the old line companies have doubled and in some instances tripled 

 their rates. 



F. A. Diggins, chairman of the mutual insurance committee, 

 said that a letter sent out by Secretary Knox asking for the 

 views of the members had resulted in ten replies, six of which 

 favored this form of mutual insurance. One opposed the move and 

 three wished to be shown its possible benefits. Mr. Diggins stated 

 further, however, that he had interviewed a few of the members 

 and knew that quite a number were favorable to the project. He 

 said that he had no definite report to make and finally President 

 Bigelow referred the matter to the members of the legislative 

 committee who were instructed to ask the secretary to call a 

 meeting of that committee at such time and place as seemed best, 

 in order to give the matter of mutual insurance further discussion. 

 Leonard Bronson, manager of the National Lumber Manufac- 

 turers' Association, reviewed various efforts on the part of the 

 major associations in the country looking to the ultimate realiza- 

 tion of uniform inspection of hardwoods. He spoke of the motion 

 at the recent meeting of the Northern Hemlock and Hardwood 

 Manufacturers' Association, relative to further action looking to 

 desired changes in National hardwood rules. Mr. Bronson asked 

 for the co-operation of the Michigan manufacturers with their 

 Wisconsin neighbors in this direction. 



B. S. Kellogg, secretary of the Wisconsin association, said that 

 the consensus of opinion among the members of his association was 

 that the two contributing factors resulting in the rejection of the 

 proposed changes at the recent meeting of the National Hardwood 

 Lumber Association were the fact that the proposed changes were 

 not submitted long enough before the meeting and that the 



