HARDWOOD RECORD 



23 



Committee on Temporary Organization. 



The chaii-man then appuiuted the committee 

 on temporary organization, as follows : Messrs. 

 White, Balioii, Fitzgerald, McCleilan and Clark. 



Ml". Gibson: It occiirred to me, gentlemen, 

 that possibly not all of you liad analyzed the 

 importance of Michigan as a harJwood manu- 

 facturing state, as compared with the total out- 

 put of the country. We are manufacturing in 

 the United States today upwards of live billion 

 feet of hardwood lumber, of which Micliigan 

 during 1'JOj manufactured considerably more 

 than six hundred million. The total output of 

 wliat we know as northern hardwoods, as com- 

 pared with sonthern, is about in the proportion 

 of two to three. Tliere is a little less than 

 three billion feet of hardwoods made in the 

 south country and considerably over two billion 

 feet made in the nortliern section of the coun- 

 try. Michigan is the leading producer of hard- 

 woods in the northern range of states. Speaking 

 specifically of maple, the total output of maple 

 last year was estimated at 570.000.000 feet, and 

 of that Michigan made ;'.41. 000.000 feet. These 

 figures are a little less than the actual output. 

 Therefore, wliat Michigan does toward organiza- 

 tion in northern hardwoods will be a particu- 

 larly important feature for other states inter- 

 ested in tbe production to follow. 



In Mr. A'ausant's address to you he sliowed 

 you that southern hardwoods had achieved an 

 average accretion in value in the last four and 

 a half years of about .I^T.oO a tliousand feet. 

 In that same period Michigan hardwood values, 

 as I estimate it, I think with considerable 

 accuracy, have shown an accfetion of only about 

 $2.50. Perhaps we ean account for this as a 

 natural increment, owing to the demand being 

 up to the supply, but it does seem to me that 

 there is an excess of .>.j there which these south- 

 ern people have achieved, as compared with the 

 price of northern woods. It would seem that 

 the full range of northern hardwood values is 

 from twenty to twenty-five per cent below the 

 price achieved by the southern woods. .Tudge it 

 as you will, that is the condition, for we know 

 that these southern woods are largely handled 

 through association work : if it has been a good 

 thing for them, it is worth your trying. It 

 seems to me that with a good organization you 

 can learn the requirements of your trade more 

 closely, and thus avoid overstocking on par- 

 ticular items, differences in grading, etc. You 

 can better your condition by working in close 

 harmony with the requirements of the trade. 



Mr. White: There is a gentleman in our au- 

 dience that I have known for some time, and 

 been with a good deal in association work. We 

 would like to hear from him. I refer to W. H. 

 Russe. 



W. H. Russe Speaks. 



Mr. Uiisse : I thank you for calling on me. 

 I have my family up here or I would not be 

 with you. I think it would be a wise thing to 

 organize, but 1 do not agree with some of the 

 speakers that have preceded me that organiza- 

 tion means higher prices. I do not believe that 

 the comparison Mr. Gibson made with southern 

 hardwoods is just and right. We are not cut- 

 ting the grade of stock you are cutting up here. 

 As far as average width is concerned, we give 

 wider stock and get more money for it. I be- 

 lii've It Is a good thing to keep your small com- 

 petitors In line, but in reijuiriuucnts the de- 

 mand makes the price, I can remember when 

 the price for poplar was put up. and they had 

 to put it down again. Why V The demand was 

 not there. But I believe in organization. If 

 you accomplish nothing but getting well ac- 

 quainted with each utlier. It will be a good 

 thing. I believe that if In your organization 

 yon have a weak member who never attends 

 meetings or reads papers and doesn't know 

 what he is dbing, he will get information. I 

 think we all pick up information by meeting 

 with men in our own line of work. But or- 

 ganization will not make the price of lumber. 

 If we have strikes today, if we have failure of 

 crops, where are your prices going to? You 

 always have men with stocks on hand who must 

 realize on them. I am surprised to find so 

 many men from other sections here, as I thought 

 this was a Michigan crowd. I think the prin- 

 cipal thing is to get uniform inspection. If 

 you once accomplish that tlie price follows. The 



grades you furnish a man is what lie pays for. 

 I have always been on the other side of the 

 fence in these disputes. Have taken the posi- 

 tion that when you furnish a good grade you 

 get a good price, and that if I furnish a good 

 grade and my competitor furnishes a poor one, 

 I will gel tbe better jirice. I do not believe 

 that 1 want to say anything on behalf of the 

 National Hardwood Lumber Association. We 

 think that Is up to you. We are doing a good 

 work, of cour.se, but as I said, that is up to you. 

 But as far as your organization is concerned, 

 you would do a wise thing in organizing. You 

 cannot miss it on that proposition. I have 

 never seen an organization yet that did not do 

 some good, even though It lasted but a few- 

 years. I think you would make a mistake If 

 you didn't organize. I am sorry you are not 

 very much enthused over the pi-ospect. 'Hie 

 amount of work organizations have done ought 

 to prove to all of you that It Is a good thing 

 to get together. I l)elieve it would be a good 

 thing for the Michigan manufacturers and for 

 the trade. 



Chairman White (lien called upun Theoibin' 

 Katliauer. who spok<' as follcpws : 



Address of Theodore Fathauer. 



Mr. Fathauer: There was one remark or (uie 

 passage in the letter which Mr. While read 

 which I think Is questionable ; viz.. that tbe 

 manufacturers nf hardwood lumber in the state 

 of Michigan are working for the dealer and 

 for the commi-ssion man. Of course, you can 

 readily realize that inasmucli as I am a dealer 

 I do wish that statement was correct — from a 

 selfish motive. It was also with interest that 

 I listened to the argument in which it was 

 stated and proven that the manufacturers of 

 Michigan produce hardwood lumber at no profit 

 — that they are merely selling their stumpage. 

 I wish to congratulate you that you have been 

 so eminently successful in doing this. I aiso 

 would like to call attention to the statement 

 made by my townsman, the editor of the Haud- 

 wouD Ki-x'uKD. in which he draws the compari- 

 son against Michigan hardwoods. 1 think your 

 percentage of gain has been as much as south- 

 ern hardwoods for the reason that tbe South 

 produces lumber of very high value, whereas 

 yoiH" northern hardwoods are of a lower grade, 

 i believe if Mr. (Ilbson will take the pains to 

 figure out the percentages again, he will find 

 that Michigan hardwood manufacturers are not 

 trailing behind the men of the South. 1 would 

 also like to rail attention to the fact that no 

 lumber has advanced more than rock elm. 

 Also In reference to inspection, the statement 

 Is made that ninety per cent of hardwood him 

 ber is used one face. Four faces are used on 

 more of It. I also v^ould call attention to the 

 fact that when the National Hardwood Lum- 

 ber Association was organized we took par- 

 ticular pains to have the manufacturers of the 

 state of Michigan with us. for when you draft 

 inspection rules you should have the two ele- 

 ments of the trade with you — the producers 

 and the buyers. The producer must guard 

 against making rules too severe. Tlie rules of 

 the National Hardwood Lumber Association take 

 care of everything produced. You will also 

 agree with me that no class of men is better 

 qualified to understand the wants of the trade 

 than are the dealers, and I believe that when 

 you organize a body of lumbermen in a state 

 and undertake to make inspection rules where 

 you only hear one end of the subject, viz., the. 

 manufacturer's end, that you are very liable 

 to draft inspection rules that do not represent 

 the custom of the country. When you bring the 

 buyer and seller together in a common organiza- 

 tion, such as we have, you follow the lines of 

 Americanism — representation — which Is the com 

 mon spirit in this country. 



Mr. White: I am afraid. Theodore, that you 

 have been a little selfish; you haven't been as 

 liberal as your president. 



A motion to adjourn being made and carried, 

 the convention dispersed, to meet again the fol- 

 lowing day. 



SATUKDAY»S SESSION. 



Chairman White opened the meeting by call- 

 ing for the report of the committee on tem- 

 porary organization. 



Report of Committee on Temporary 

 Organization. 



Your committee begs leave to report as fol- 

 lows : 



After thoroughly considering the conditions 

 surrounding hardwood affairs In Michigan, we 

 believe that it is to the best interests of this 

 state to organize an association and adopt a 

 constitution, covering our needs for the pro- 

 tection of the industry, as follows: 



CONSTITUTION. 



NAME. 



The name of this association shall be Michi- 

 gan IIardw<)od Manufacturers" Association. 



OBJECTS. 



The object of this association shall be to se- 

 cure a full understanding of the conditions sur- 

 rounding the lumber market In the territory 

 covered by this association ; the establishment 

 of uniform grades for the inspection of lumber 

 as the only legitimate basis ; to establish uni- 

 form customs and usages among manufacturers 

 of lumber ; to procure and furnish to its mem- 

 bers such Information as may tend to protect 

 them against unbusinesslike methods of those 

 with whom they deal, and such other informa- 

 tion as may be for the benefit of the members ; 

 and to propose and carry out such other meas- 

 ures as may be deemed for the welfare and lu 

 the Interest of the manufacturers of lumber, 

 who shall be members of this association. 



ELUilBILITY. 



Any manufacturer of hardwood lumber and 

 owner of stumpage is eligible to membership. 

 subject to the approval of the committee on 

 membership. 



The executive board shall pass upon the 

 eligibility of such applicants, and if In its 

 opinion the character of the business of such 

 individual, firm or corporation does not corre- 

 spond to that of members actually manufac- 

 turing their own lumber and merchandising it 

 in a wholesale way, the application for mem- 

 bership may be declined. 



OFFICERS. 



The oflicers of the association shall consist 

 of a president, two vice-presidents, a treasurer, 

 a secretary, and twelve directors geographically 

 distributed to cover the producing sections of 

 the entire state. 



The president, vice-presidents and treasm-er 

 shall be members, by virtue of their office, of 

 the board .of directors, of which the president 

 shall be chairman. 



BOARD OF DIRECTORS. 



The board of directors shall have the power 

 to appoint a committee of three of its members 

 to constitute an executive board. Tills board 

 shall employ a secretary who shall print and 

 circulate documents, raise funds and appropri- 

 ate the same to devise and carry into effect 

 such measures as it may deem expedient to 

 promote the objects of the association; and 

 the secretary shall at all times be subject to its 

 direction. 



DUES. 



Members shall pay an initiatory fee of $10, 

 and sucli assessments as may be found neces- 

 sary to carry on tlie work of the association; 

 I liese assessments to be made pro rata to the 

 shipments of each member, and not to exceed 

 two cents per thousand feet. 



If any member shall neglect to pay the as- 

 sessments made by the board of directors within 

 sixty days after due notice by the secretary, the 

 secretary is authorized to cancel the name of 

 such delinquent from membership in this asso- 

 ciation. 



QUESTIONS IN ISSUE. 



Members shall not be privileged to vote on 

 questions affecting the grading and classifica- 

 tion of lumber of which they are not manufac- 

 turers. In case of disagreement about grad- 

 ing rules, members," whose product is largely of 

 the kind of lumber in dispute, may determine 

 such questions as are in issue. 



COMMITTEES. 



The president shall appoint standing com- 

 mittees as follows ; 



On Grades : Consisting of nine members ; 

 this committee to be divided Into sub commit- 

 tees of three each, covering the kinds of lumber 

 in which their members are chiefly interested. 



On Market Conditions : This committee to 

 be established in the same manner as the com- 

 mittee on grades. 



DUTIES OF OFFICERS. 



The president shall preside at all meetings 

 of the association and shall call meetings there- 

 of wherever requested by a majority of the 

 board. 



In the absence of the president the first vice- 

 president shall perform the duties of the presi- 

 dent, or in the absence of both president and 

 first vice-president, the second vice-president 

 shall preside. 



The treasurer shall keep account of all 

 moneys received and expended for the use of 

 the association, and shall make disbursements 

 only upon vouchers issued by the secretary. 



It shall be the duty of the secretary to give 

 notice of and attend all meetings of the asso- 

 ciation and of tlie board of directors; to keep 

 a record of all their doings ; to keep a list of 

 all the members of (he association; collect all 

 assessments and pay them over to the treasurer; 

 to prepare under the direction of the executive 

 board, an annual report of their transactions 

 and the condition of the association, and per- 

 form any and all duties which shall be required 

 of him by the board, and generally to devote 

 his beet efforts to forward the interests of th6 

 association. 



