32 



HARDWOOD RECORD 



the South, to get the logs cut. hauled in niau.v 

 instances seveial miles to the mill, and then 

 hauled in many othei- instances a great num- 

 ber of miles to the railroad tracks. The weather 

 is bad. the roads in certain seasons of the year 

 are impassable, and even after these dilHculties 

 are overcome it is often necessary for these men 

 to wait davs and weeks before the railroad 

 companies deliver to them cars on which the 

 lumber can be shipped. This advancing or 

 money to tlie small manufacturer by the whole- 

 saler' has become a recognized function in the 



B. F. SW.\IN, SHELBYVILI.E, IXD. 



trade and is only an added reason why the 

 wholesaler is a necessity in our business. 



Up to this time we have considered this mat- 

 ter entirely from the viewpoint of policy, but 

 there is, l thinl;, another side to it, namely, 

 that of the ethics of the trade, and I do not 

 linow how better to touch this side than by re- 

 lating an incident that is said to have hap- 

 pened in the state of Connecticut — the home of 

 the genuine "yankee." The incident is a story 

 ■ — with a sequel. 



One hot summer afternoon, many years ago, 

 the small boys of a country village in the beau- 

 tiful valley of the Connecticut river were gath- 

 ered, as boys were wont to gather, in the coun- 

 try store. " There was nothing unusual about 

 the store or the boys/ The boys were full of 

 fun and innocent mischief. It so happened that 

 on the counter was a box of marbles, dear to 

 the heart of every boy. and while indulging In 

 some boyish trick this box of marbles was upset 

 and the' marbles were scattered on the floor 

 among boxes, barrels, nail kegs, etc. 



The proprietor, who was a young man with 

 an eye for the main chance, wished to get the 

 niarltlcs again and proposed to the boys that 

 ibcy -^linuld pick them up, and as an inducement 

 primiised them that he would give each boy 

 oue-half of all he found. The lioys fell to with 

 great industry and shortly all the marbles had 

 been found. ' Now the proprietor, still, as he 

 thought, with an eye to the main chance, quiet- 

 ly locked the front door and put the key in his 

 pocket. He then proceeded to take each boy 

 and empty out of his pockets every last marble, 

 and. not "dividing at all, put each boy out of 

 iloors in turn, again carefully locking the door. 

 This operation he continued until all the mar- 

 bles were again in the box and all the boys 

 were out of doors, sadder but wiser. It was a 

 sharp trick, but there was a sequel. 



Twenty-five years passed. Tlie boys had 

 grown to be men and the shrewd storekeeper 

 had outgrown the country village and had moved 

 to tow'n. He was prosperous and rich, but not 

 so rich that he did not crave more money, even 

 as he craved more marbles. He had an oppor- 

 tunity to increase his wealth but he needed 

 more ready money than he had, so he did what 

 we all do — he w'ent to his bank. He laid his 

 case, his need and his collateral before the 

 cashier : the cashier examined them all, was 

 willing to consider the loan and asked our ol<l 

 friend to call again the next day. 



In the meantime the cashier called on a 

 .voung and rising lawyer who was well known 

 to him. He told the lawyer about the man and 

 his application for the loan. He said the man 

 was well to do, his pro.iect feasible and his col- 

 lateral satisfactory, but the loan was a large 

 4>ne anil he wanted to know^ something about 

 the man himself. In other words, he wanted 

 to know the "moral hazard." Now It so hap- 

 pened that the young and rising lawyer was 



one of the little bovs who had taken part in 

 the marble episode twenty-five years ago, and 

 the whole scene recalled itself to him so vividly 

 th.it he .lust related it to the bank cashier ex- 

 actly as 'it had happened without any comment. 



The cashier listened and went away, but the 

 next day when our old friend came in he re- 

 turned liim his collateral and declined to make 

 the loan because the moral collateral would not 

 bear inspection. ^^ ^ ^, 



Gentlemen. I do not vouch for the truth of 

 the story, although it was told me as having 

 actually taken place. 1 care not whether it is 

 true or not. for the principle is as true as the 

 everlasting hills. 



The application is perfectly plain : Our 

 friends, the wholesalers, have gone into byways 

 and highways and gathered up the trade (the 

 marbles, if vou please) : they have brought this 

 trade to the manufacturer and have given it to 

 him ; even perhaps educated him and told him 

 who the customer is and where he lives : in 

 short, have educated the manufacturer. The 

 wholesalers not only expect, but they are en- 

 titled to their fair share of the division of the 

 profits (the marbles, if you please) and I firmly 

 helieve that in the vast majority of cases they 

 are getting all thev are entitled to. Further. I 

 I.elieve that they are getting their part of the 

 division without any trouble, for in most cases 

 the manufacturer recognizes the wholesaler as 

 bis friend and co-laborer ; he divides the "mar- 

 Ides" willingly and asks the wholesaler to come 



:>ga'n- 



The foundation of business is confidence in 

 each other and fair dealing with each other. 

 Sharp practices may succeed occasionally, but 

 permanent success has a most lasting founda- 



J. M. PRITCHARD, INDIANAPOLIS. 



tion ; it recognizes the claims of other men 

 and is content with a fair division of the good 

 things of life: it recognizes that there is enough 

 for all and that it does not pay to lower the 

 grades. 



Gentlemen, in closing I want again to thank 

 ,vou for the privilege which you have given me 

 of talking to you in this informal way. I have 

 said little or nothing new, but it is not perhaps 

 a waste of time to be reminded of old truths. 

 I want to congratulate you upon the splendid 

 work your association is doing for the lumber 

 trade and to wish you every success and bid 

 you "godspeed." 



Mr. Lloyd — I move a vote of thanks be tend- 

 ered Mr. Higbie for coming here and talking 

 to us. He is a prominent member of the whole- 

 salers, and we do appreciate it. 



The motion was seconded and carried. 



President Russe — About 60 per cent of our 

 members are manufacturers and we believe In 

 having the wholesaler with us. [Applause.] 



Mr. Lloyd — Tomorrow morning at 10 o'clock 

 is to be the trolley ride for the ladies. They 

 will take the cars at the Board Walk and Vir- 

 ginia avenue. There will be special cars. 



Also, the photographer wants to take a pic- 

 ture outside immediately after the meeting. 



On the 'Waterways of the Country. 



President Russe — A gentlemen whom I re- 

 ferred to In my address this morning, we have 

 with us, John A. Fox, special director of the 

 National Rivers and Harbors Congress. He 



has written upon the subject which I believe 

 is the vital one of the country today. I believe 

 before we get througli with it, it will become 

 a matter for political campaigns — whether you 

 are for or against it. I have the pleasure of 

 introducing to you Mr. Fox. 



Mr. Fox — Mr. President, it is with a feeling 

 of pride that I look out upon a body of men 

 so national, so representative and so capable of 

 Judging this question and assisting us in this 

 great opportunity to bring about such improved 

 conditions In our waterways system as will re- 

 lieve the congestion. 



After this brief introductory speech Mr. Fox 

 delivered a most interesting and valuable ad- 

 dress on Rivers and Harbors, which met with 

 enthusiastic applause. It Is not reproduced 

 here, as it was practically the same as was 

 given before the Hardwood Manufacturers' 

 Association at its annual meeting at Memphis 

 in January last, which appeared in these col- 

 umns in full at that time. 



Mr. Fo.x — I would recommend that strong 

 resolutions be passed and a committee be ap- 

 pointed to attend the coming congress. I hope 

 you will help the men who will be present from 

 every state In the Union so a cry will go up that 

 will reverberate backward and forward between 

 the Pacific and the Atlantic so the halls of 

 congress may resound until every man has 

 pledged himself to rectify and regulate and 

 systematically improve these American systems 

 of matchless waterways in this great country. 

 [Long applause.] 



The convention then adjourned until 9 :Z0 

 a. m. Friday. May l;4. 



FRIDAY MOENING SESSION. 



The convention was called to order by Presi- 

 dent Russe at 11 o'clock a. m. 

 Endorse 'Work of Eivers & Harbors Congress. 



Mr. Nolan — I want to offer a resolution on 

 the subject of Mr. Fox's able address of yes- 

 terday. I am satisfied the members of this 

 association agree with every word said. We are 

 all in sympathy with the movement for im- 

 proved waterways in the United States. I liave 

 a set of resolutions here I would like to intro- 

 duce at this time, if, in your judgment, it be 

 pertinent : 



THOMAS J. MOFFETT, CINCINNATI. 



Whereas, The National Hardwocxi Lumber 

 Association Is directly concerned with matters 

 of transportation, and as an organization Is a 

 factor in solving economic questions ; and, 



Whereas, The abnormally congested condi- 

 tions of traffic during the past year have served 

 to demonstrate that the railroads of the coun- 

 try are of themselves not wholly Inadequate 

 to cope with the situation; and. 



