44 



HARDWOOD RECORD 



necessary to start again, opportunity knocked frequently, but now, 

 like Diogenes with liis lantern hunting for an honest man, we hunt 

 opportunities in timber investments Avitli little success. 



We are compelled to watch this constantly growing goblin — 

 "Costs." In no other way can we meet competition. In a line of a 

 recent play, a character said, "Mr. Colt with his gun makes all men 

 equal;" iu commercial life, "Costs" is the gun that creates equality; 

 the little with the big. 



Unfoi Innately no great mathematician has arisen among us to 

 compile thousands of eases, codify and tabulate in condensed form, 

 a tremendous data. Not only garlands of laurel leaves will decorate 

 his brow that can do this, but oak leaves, pine leaves, cypress leaves, 

 and leaves of every wood cut by the sawmill. 



Much interest has been aroused on this subject of late by members 

 of our association. Many of us have delved into the facts that 

 have been so constantly before us but unfortunately few have been 

 able to arrive at satisfactory conclusions. Conditions of specified 

 localities vary as greatly as do results from various logs. Even 

 in an area of a few miles, quality of timber ma}' run from very 

 good, to the reverse; nay more, the banks of a small creek may 

 show opposite quality, hence to get down to concrete facts, I can 

 only recite data of logs sawn on my mill and you on yours, relative 

 to per cents, of quality. 



I believe the subject of costs could be \vcn divided into several 

 heads: 



First — Stumpage. 

 Second — Logging. 

 Third — Sawing. 

 Fourth — Yard cost. 

 Fifth— Selling. 

 Sixth— Office. 



Seventh — Overhead charges. 

 These represent the financial side of the lumber business, and I 

 believe that were our worthy prsident to appoint a committee of 

 seven members of this association, each one to introduce a paper 

 under one of these specific heads, and the matter presented at the 

 annual meeting, where it could be thrashed out in a committee 

 room, and then the compilation introduced at our next annual gath- 

 ering, it would be time well spent. 



I will not attempt to take up the financial side of "Costs," as 

 there is another phase of this great subject that has an all-impor- 

 tant bearing — namely, the physical side of costs. This does not 

 relate to theories, and it is not a question of guessing, but is the 

 boiled-down result of good, bad and indifierent logs as they appear 

 to the man with the lumber rule. He is a recorder that has 

 watched each board as it came from the log. He has no sentiment 

 in his heart; his eye is cold. He is there to see things as they 

 are, and the report from this man, be it either cheerful or sad for 

 you, is simply the result of facts as he finds them, but how varying 

 must be his reports from time to time and from place to place! 



We have said that no two logs have like defects. We might add 

 that no hour's run is like any other hour; no week nor month 

 agrees with the preceding or following, hence the statistics of value 

 are only those covering a long period of time. Again, these will 

 vary tremendously in diflerent mills. We will say that A's mill is 

 sawing their own timber brought in on their own railroad. The 

 cost of logging to mill is slight, hence the low cost of logs permit 

 much lower value in quality to be sawn. Six months later that 

 tract may have been cut off, and they are paying freight to a stand- 

 ard railroad, which materially increases the cost of logs, in which 

 case they can ill afl'ord to introduce the low quality of timber 

 brought in from their own woods. 



Thus you see the difliculty of arriving at any definite basis by 

 which you may calculate per cents, of grades that can be found iii 

 logs. 



Again, you may pick out, if you choose, certain logs and saw 

 them up immediately fresh from the woods, carefully tabulate per- 

 centage of luml^er made therefrom, but this showing would be en- 

 tirely unavailable were these logs to lay even sixty days in certain 

 portions of a year in Southern country. Sap-stain would so de- 

 teriorate that losses would result in your upper grades. Hearts 

 \yould crack open, and even worms start within sixty days' time. 

 Therefore, in whatever direction we turn for statistics, we find some 

 difficulty that prevents a standard condition of grades being tabu- 

 lated. However, taking logs as we found them during the month 

 of December, we have prepared the following statement: 

 Segregating Quartered White Oak Logs They Ran— 



Fas 45% 



No. 1 common 37% 



No. 2 common .• . . . 9% 



No. 3 common 2% 



Dimensions 7% 



Segregating Quartered Red Oak Logs They Ran— 



Fas 39% 



No. 1 common 42% 



No. 2 common 11% 



No. 3 common 5% 



Dimensions 3% 



Segregating Plain Red Oak Logs They Ran — 



Fas 29% 



No. 1 common 21% 



No. 2 common - 7% 



No. 3 common 2% 



Ties 29% 



Dimensions 12% 



Sgregating Plain Red Oak Logs Thev Ran — 



Fas '. 31% 



No. 1 common 30% 



No. 2 common 10% 



No. 3 common 2% 



Ties 11% 



Dimensions 16% 



General Run of Averages — 



Quartered Oak. 



Fas 14% 



No. 1 common 15% 



No. 2 common 3% 



No. 3 common 1% 



Plain Oak. 



Fas 19% 



No. 1 common 17% 



No. 2 common 4% 



No. 3 common 1% 



Ties and Scantling 22% 



Dimensions 4% 



The foregoing statement tabulates quartered oak strips in Fas 

 grade. Also %-inch, ^A-inch, %-inch and -Ji-inch plain oak is 

 counted face in 1-inch stock. Whatever heavier stock than 1-inch 

 was produced is counted under 1-inch, in its respective grades. 



W. E. Delaney made a brief address on the subject of costs 

 of manufacture. He said he believed it was an important subject, 

 and wanted the members of the association to go into the matter 

 to the fullest extent. He intimated the most of the intelligent price 

 competition encountered bj- lumbermen was owing to dfective cost 

 systems or no cost S3'stems at all. He made a motion that the 

 cliair appoint a committee of three to make a recommendation 

 covering such a system to report at the next meeting. 



W. A. Gilchrist supported the motion, and explained somewhat 

 the difficulties encountered in lumber accounting. He stated that 

 railroad accounting was a simple matter, but in his operations had 

 often found himself at fault in accurately ascertaining costs. He 

 recited one case in which cost had been figured at less than $7 

 tt thousand, and in the wind-up of the operation it showed it to be 

 approximately $12.50 a thousand. 



W. 0. Worland, of Evansville, explained the cost accounting 

 system that he employs. The motion of Mr. Delaney was adopted. 

 C. Fred Yegge, president of the National Box Manufacturers' 

 Association, was then introduced and said that all the officers of his 

 organization had accepted the invitation to be present and that 

 they were enjoying the meeting to the fullest extent. He said that 

 the annual meeting of the National Box JIanufacturers' Association 

 would be held at French Lick Springs, Ind., on February 23rd, 24th 

 and 25th, and that he hoped that all the members of the Hardwood 

 Manufacturers' As.sociation that are producers of box materials, 

 would be present. He stated that they could achieve commercial 

 results in the way of sales at that meeting that would be profitable 

 to them. 



K. H. Vansant then delivered a beautiful tribute to the memory 

 of the late J. E. Defebaugh, which on motion was made a part of 

 the records of the meeting, and it was referred to the resolution 

 committee. 



The i-iiiMiiiilti'e on reports of officers then niaiie the following 

 report : 



Report of Committee on Officers' Reports 

 Mr. President and gentlemen of the convention: 



Your Committee to whom the subject of csnsidering officers' 

 reports submitted at this opening session, desires to report as 

 follows: 



The association is to be congratulated in having its reports pre- 

 sented to them this morning in the manner in which they have been 

 ■delivered to us. The splendid results that have been accomplished 

 during the last year in all lines of work connected with this asso- 

 ciation, and what we believe to be its best interests, has been most 

 carefully looked after by its efficient president, and the untiring 

 energy and zeal of its secretary to such an extent tliat this committee, 

 in rendering or attempting to render, a report on this work, and 

 being familiar only with the English language, find themselves 

 unable to express in behalf of this association their appreciation 

 of results accomplished. 



Also, we would not fail to call your attention to the splendid 

 manner in which the treasurer has apparently taken care of the 

 funds of your association, as also the fact that we have today a 

 very considerable balance in the treasury. 



Also, we are pleased to report that the auditor, in going over 

 these various accounts, has been unable to find anvthing wrong in 



