32 



HARDWOOD RECORD 



in compiling reports for its members only, is 

 meeting with more substantial success in. secur- 

 ing such data as will enable a wholesale lumber- 

 man to consider all sides of a risk before be 

 arrives at a definite decision to extend credit. 

 Apart from the financial side of a report, very 

 strong emphasis is laid on the opinions cover- 

 ing business methods — manner of settlement, dis- 

 counting, inspection of shipments being the most 

 important. That this is appreciated by whole- 

 sale buyers is shown from the correspondence vol- 

 untarily sent us by buyers themselves, because 

 frequently where disputes have arisen between a 

 member and bu.ver, it was from the latter the 

 controversy was first called to our attention, 

 the effort being made to give us their side of the 

 dispute in anticipation of a detrimental or ad- 

 verse opinion or report from our member. Also 

 it is not uncommon, in submitting a list of ref- 

 erences along W'itb their statement, to refer to 

 certain transactions where disputes resulted, be- 

 lieving same would come to our notice in the 

 usual way. This is mentioned to illustrate the 

 force of the opinions in a bureau report and the 

 reliability with which they are regarded in the 

 trade by both buyer and seller. 



Leg.1L Department 



The figures submitted in the Board of Man- 

 agers' report indicate the progress made in the 

 legal or collection department, but those figures 

 cannot tell you of a further saving or "con- 

 servation of assets." The returns on collections 

 are shown, but there has been in addition the 

 working out of a principle in handling collec- 

 tions on a basis that would obtain results for 

 our members, and at the same time render some 

 assistance to the delinquent or failed party him- 

 self, in maintaining or reestablishing his credit. 

 These results do not show in dollars and cents. 

 That members have confidence in permitting us 

 to use discretion as to mode of procedure is evi- 

 denced by appreciative letters accompanying 

 claims and acknowledging receipt of remittances. 



LEWIS DILL. BALTIMORE, TRUSTEE 



The bureau's fund of information, past experi- 

 ence and knowledge of trade customs and con- 

 ditions materially assists in determining the 

 steps to be pursued in realizing on a past due 

 account. Disputed claims are carefully nego- 

 tiated and numerous adjustments made which 

 have resulted in a clearer understanding of trade 

 definitions or customs, and at the same time 

 maintaining friendly relations between buyer and 

 seller. 



Occasionally where several claims have been 

 received against a single concern, conferences, 

 visits and careful scrutinizing of assets have 

 been necessary to formulate plans to best con- 

 serve those assets and devise ways to tide over 

 an embarrassment or a complicated situation. 



In several bankruptcy cases very difficult ques- 

 tions arose, and attempted fraud has not been 

 altogether absent. Some statements of assets 

 f.nd liabilities submitted to us after certain fail- 

 ures have merited a careful inquiry to ascertain 

 the reason tor the apparent discrepancy between 

 such statement and that made to the bureau but 

 a short time previously. X'oor business condi- 

 tions the past year or two have accounted for 

 some shrinkage in values, but this is not always 

 tiue, and while we fully believe in the theory of 

 the bankruptcy law as it affects most failures, 

 and especially to prevent preferences, questions 

 arise or developments occur necessitating careful 

 and diplomatic handling in order to secure the 



best results, and we are sometimes lead to sanc- 

 tion and recommend a prompt cash settlement in 

 lieu of a possible extended working out of a 

 doubtful situation. Some effort has, however, 

 been made to get from under by offering cash 

 payments as an inducement for immediate ad- 

 justment, whereas diligent examination and pre- 

 sentation of evidence have resulted in turning 

 up valuable assets and therefore a better settle- 

 ment, and in some of the cases debtors were 

 forced to disgorge to the extent of paying in full, 

 in addition to facing possible criminal prosecu- 

 tion. It has not been the desire of the Board 

 of Managers to make this legal department a 

 source of large revenue, therefore the collection 

 charges are placed on the recognized very mod- 

 crate charge basis, which is practically the net 

 cost of operation. The service is open to all 

 members and becoming more widely used every 

 year. 



Through the printed pamphlet, "Lumber Legal 

 Opinions," we have endeavored to cover legal 

 points raised in the conduct of business, the 

 handling of claims and from requests for opin- 

 ions presented daily. Twelve issues have been 

 printed to date, and as the number increases or 

 is partially supplemented by some reprints, the 

 necessity for more frequent editions has de- 

 creased. The whole number makes a very valua- 

 ble compendium of handy references, and as the 

 cases accumulate they will he given you, those 

 already published covering nearly all the ques- 

 tions of daily occurrence. They are worth pre- 

 serving. Some day we may have this in book 

 form for you. .\s stated in the pamphlets, we 

 cannot always guarantee the soundness of the 

 leg.al opinions, but every effort is made to secure 

 reliable and pertinent Information. Legal de- 

 cisions and opinions of general interest will be 

 given upon request wherever possible. Some of 

 Ihe points most frequently raised affect tising 

 lumber without consent of shipper, accepting 

 checks marked "in full settlement." etc., lia- 

 bility for damaged in transit or lost shipments, 

 continuing shipments to a party who has not 

 made previous settlements according to contract, 

 time allowed for reporting rejection of lumber, 

 necessity of filing corporate certificates, etc., etc. 

 During the past year much emphasis has been 

 laid on the importance of foreign corporations 

 filing certificates m states where they transact 

 business other than those under whose laws they 

 are incorporated, and as to the advisability of 

 complying with the various statutes. The term 

 "doing business." used in most state corporation 

 laws, is rather indefinite as to construction, and 

 the necessity ot filing certificates depends upon 

 the local interpretalion of that term. The stat- 

 utes in some states are more rigid than in 

 others, and as a general proposition most cor- 

 porations believe, as a matter of economy, it is 

 usually wiser to file certificates in those' states 

 and thus provide for any possible adverse con- 

 struction of tlie law. If suit is instituted by a 

 foreign corporation, and a defense is attempted 

 because of noncompliance with the statutes, the 

 burden of defense, even though the corporation 

 is not "doing business" under a technical inter- 

 pretation of the law, is put altogether on the 

 foreign corportoon, in which event, even if not 

 nonsuited, the cost is likely to exceed cost of 

 filing the certificate. "We have accumulated some 

 information along these lines which is at your 

 disposal. 



Our office forms. Lists A and B, pink sheets, 

 tracers, etc., copying processes have been im- 

 proved upon wherever possible under the super- 

 vision of the Board of Managers of the Bureau 

 of Information. Occasionally a subscriber offers 

 a suggestion or criticism which can be used for 

 bettering the service, and we are always grateful 

 for such interest and cooperation. Several sug- 

 gested changes have been attempted in our meth- 

 od of obtaining information, with a view of 

 saving postage, our time and yours, but there 

 seems to be nothing more practical or safer than 

 the old plain way of asking direct questions of 

 those interested, and when we make an inquiry 

 of you we have reason to believe vour are inter- 

 ested, although we often find it diflncult to find 

 meml>ers who can give the information. Slight 

 changes in forms, etc., have been made in the 

 economy of time and money, but not at the ex- 

 pense of the service. 



Specializing in lumber credit reporting enables 

 us to give each report a supervision which would 

 be impractical in any general agency ; therefore, 

 if you will give us the information vou have, 

 together with your best opinion, we will furnish 

 such reports as ought to enable you to determine 

 your credits and sales with safety. 



The report of Chairman A. L. Stone has given 

 you figures and details, and he and his committee 

 have been untiring in their efforts to improve the 

 system and service wherever possible. TTnder 

 such guidance this specializing, confidential bu- 

 reau is found to operate successfully. Subscrib- 

 ers have learned to transmit their views and 

 opinions in a more concise form, and the credit 

 for the degree of reliability and efficiency gained 

 by the bureau is due to the sincere confidence and 

 mutual cooperation reposed in it by the sub- 

 scribers themselves. The bureau will' always be 

 what you make it. 



■W. ■V\'. ScnurxEn. Department Manager. 



Secretary Perry read the report of the Spe- 

 cial Membership Committee in the absence of 

 the chairman, G. E. Smith. The report 

 follows: 



Eeport of Special Membership Committee 

 .Vs chairman of the Special Membership Com- 

 mittee it is my pleasure to submit a report of 

 the work of that committee during the past year. 

 We have elected during the year fifty new mem- 

 bers, showing a net gain of eighteen, or a total 

 numl>er at the end of the year, 392. So that 

 each member of this association might be per- 

 sonally informed. I mailed .vou a comparative 

 statement of membership for the past five years, 

 and those who have looked this statement over 

 will see that during each of the five years, with 

 the exception of the year ending 1906 and the 

 present year, the association admitted during the 

 second six months of the association year almost 

 three times as many as during the first six 

 months, the only exception being the year end- 

 ing March 1, 1906. In that year during the 

 first six months fifty new members were admit- 

 ted, and in the second six months twentv-two. 

 In the present year we admitted twenty-nine in 

 the first six months and but twenty-one in the 

 second six months. 



The question of membership in all organiza- 

 tions is an important one. for the reason that 

 organizations of all kinds depend upon their 

 membership for their revenue, which also applies 

 in the case of the National W^holesale Lumber 

 Dealers' Association, but in the case of our or- 

 ganization it would seem there was a more im- 

 portant factor than that of mere revenue, namely, 

 the benefits in the first place that every member 

 of the association derives through his member- 

 ship, and it would seem as though if this asso- 

 ciation were benefiting 392 individual firms that 

 every other concern joining it could not but re- 

 ceive like benefits. With 392 members we ought 

 to be able to interest as many more who are at 



C. II. I'RESCOTT, JR., CLEVELAND, 

 TRUSTEE 



present not in this organization, and if each 

 member would during the coming year interest 

 himself to the extent of securing the applica- 

 tion of one concern we would double our member- 

 ship, and I firmly believe that this could be done 

 by a concerted action on the part of all. It 

 would seem also that through a material in- 

 crease in membership of this kind our present 

 members would be benefited, owing to the fact 

 that naturally new members, many of them at 

 least, would be subscribers to the Bureau of In- 

 formation, and through that channel the bureau 

 would be able to increase its efficiency, gather 

 more information, and our present members who 

 are sul.iscriliers would be thus benefited. There- 

 fore, each of us in securing his one new man, 

 while benefiting the association in part, would be 

 working for his own interests, and I believe that 

 if the members would feel that in getting new 

 members they were working for their own inter- 

 ests, they would certainly work harder than 

 they have in the past. 



Much time during the past year has been de- 

 voted to the membership question, and we only 

 I egret that the results have not been more satis-, 

 factory. When talking with various members 

 and urging that they at least secure one or two 

 new members, we have frequently been told that 

 the field in which they operated, or the city in 

 which they lived, was so well covered that they 



