30 



HARDWOOD RECORD 



\V. E. DELAXEY. CINCINNATI. O., 

 EXECUTIVE BOAKI) 



MEJilSEU 



A. (JILCIIIilST, ME.MPIIIS, TENX., 

 liEIt EXECUTIVE BOARD 



ME.M- 



HIMMELBEEGER, MOREHOUSE, MO., 

 MEMBER EXECUTIVE BOARD 



be hoped that definite action will be taken at tliis meeting to 

 liring about these much-desired and necessary results. 



The Hardicood Manufacturers' Association has alii:ai/s recognized 

 the valve of the co-operation and support of the legitimate hard- 

 icood merchant, and it is my wish that amiable relations shall ie 

 continued and encouraged with that branch of the industry, but I 

 am equally opposed to supporting any continued existence of the part 

 of the trade whose functions lead, to irregular practices and demor- 

 alization of grades, prices and good trade ethics. 



Ckfnservation of the forests has been given a great deal of atten- 

 tion in recent years, not only among lumbermen and lumbt-r organi- 

 zations, but by the country generally. The life of our present forests 

 can be prolonged by the application of practi- 

 Forcst cal methods at producing points to prevent 



Conservation. Avaste of the product now so prevalent among 

 sawmill operators. To remove from the forest 

 all of the timber that will pay a profit and reduce this to lumber with 

 thin saws into as thin lumber as can be used in a practical way; to 

 find ways and means of working up more closely, into different com- 

 modities the material, which is to-day wasted and burned — this form 

 of conservation seems to me to be the one that should appeal to the 

 present generation, wliereas the re-planting of trees is one for 

 the future. 



A matter of importance to members of this association is the re- 

 cently enacted law which provides for the levying of a tax of one 

 per cent, on tlie net income in excess of $5,000.00 of all corporations, 

 with a few minor exceptions. The law appears to 

 Corporation be fundamentally bad because it reduces to public 

 Tax. property the private records of corporations, and it is 



discriminatory in its application, because it exacts no 

 tribute from the co-partnership whose income may be greater than 

 tliat of the corporation's. Some of the foremost authorities on con- 

 stitutional law have declared the law unconstitutional, and have even 

 gone so far as to advise corpoi-ations to ignore it. Conservative au- 

 thorities, however, while not less certain of its unconstitutional na- 

 ture, advise compliance with the law, but to pay the tax under 

 protest. Test cases will, without doubt, be forthcoming, but in the 

 meantime, it may be well to remember that the law is a reality, and 

 tliat a heavy penalty is attached to failure to comply with its pro- 

 visions, which require that forms supplied by the Government must 

 be filed witli collectors of internal revenue not later than March 1st. 



National Lunibfer Manufacturers' Association 



The National Lumber Manufacturers' Association has been doing ex- 

 cellent work. This association is made up of practically all of the 

 producing organizations, including our own. The character of the 



work is of general nature, dealing only with questions 

 Its Scope, of national importance affecting the welfare of the entire 



industry. Its influence is far-reaching and is felt from 

 coast to coast. As an illustration of the broad and general nature of 

 its work in the interest of the lumber fraternity, I may mention that 

 the National Association was largely instrumental in preventing ad- 

 verse legislation when the tarifT question was before the country for 

 read.iustmcnt, and it is due to its efforts in a great measure that 

 the duty on lumber was not placed at a still lower figure. 



A feature of its work is the publication of a credit rating book, 

 known as the "Blue Book." published by the National Lumbermen's 



Credit Coiporation of St. Louis. This book has made great progress, 

 and is a recognized authority on credit ratings 

 Credit Rating among lumbermen. It is compiled by lumbermen. 

 Book. and its existence was forced upon them for their 



protection, and is not dominated by any outside 

 influences. Its chief sources of information are the lumbermen them- 

 selves, and the information contained therein can be thoroughly re- 

 lied upon. The "Blue Book" is always fresh, up-to-date and contains 

 no old or obsolete matter. Moreover, I do not know of a single 

 instance wherein this book has discriminated against any individual 

 or firm, whether a subscrilier or not. By actual use for a number of 

 years, and from knowledge gained from a large number of other sub- 

 scribers, I am prepared to state that it contains the most accurate 

 information of any piiblication of like nature. Its special report 

 department is extremely satisfactory and pi-ompt, and the volume 

 of data supplied with respect to the standing of any concern of 

 whom inquiry is made, attests its activity in gathering information. 

 This book is worthy of j'our careful consideration, and I heartily 

 lecommend its use by the members. 



Of late it has been the fashion among the daily, weekly and 

 monthly press to print frenzied articles, from time to time, condemn- 

 ing lumbermen and their methods, with little or no foundation in 

 fact. It has been openly charged that lumbermen 

 Undue are in a trust, but neither the United Government 



Publicity, nor any other investigating body has ever been able 

 to find the slightest evidence of the existence of a 

 trust among lumber producers. Whether right or wrong, the reading 

 public forms its opinions and reaches its conclusions from articles 

 appearing in the general press, and unless a vigorous campaign is 

 waged against such misguided articles, it may result in adverse and 

 unju.st legislation. It is, therefore, your duty to refute and counter- 

 act these charges at every opportunity, and to call the association's 

 attention to such matters. 



You will no doubt recall that in 190S the Lumber Trades Congress 

 met at Minneapolis and formulated a code of trade ethics which, 

 during the past year, was revised at a meeting held in Chicago. 

 Numerous objections have arisen to portions of this 

 Sales Code. code, which have been considered undesirable by some 

 of the members, and a special committee was appointed 

 to take up this question, and, if possible, to formulate a code satis- 

 factory to members of this organization. The necessity for a better 

 and more definite understanding between buyer and seller is apparent. 

 It has Ijeen brought out quite forcibl.v during the past two years 

 that many misunderstandings and difiiculties, and, in some cases, 

 expensive litigation have arisen because of insufficient contracts, or 

 the lack of any contract. It is to be hoped a comprehensive selling 

 code will overcome this in the future. It seems necessary that a 

 code of some sort should be adopted and referred to as a part of 

 the selling contract, in the same manner that we refer to our grading 

 rules. The committee will report upon this later. 



The lumber press have proven themselves our friends and im- 

 partial ones. It is their constant endeavor to promote our best 

 interests, and they deserve our support in return. They are the 

 principal medium whereby the lumberman is kept 

 Lumber Press, in touch with current and important events af- 

 fecting the welfare of his business. Within the 

 past three months a man of more tlian national prominence has 



