HARDWOOD RECORD 



31 



tlio United States. Hence the importance o£ 

 liandling it througli the national association. 



A feature in this same low grade proposition 

 will be presented to you during the sessions by 

 a gentleman who has taken the lead in securing 

 a lower classification tor all commodities shipped 

 In wooden packages than those that are shipped 

 In paper or fiber. This also should apiieal to the 

 railroads. They not only add to their total ton- 

 nage because of the greater weight of the wooden 

 package but they have the carriage of the lum- 

 ber from which the boxes are made from the 

 saw mill to the box factory. This Is an impor- 

 tant item to them. and. further, they will thus 

 assist in practical conservation, because thereby 

 a market will be protected or enlarged for much 

 wood whieli is now going to waste. 

 Waterways 

 While we are considering railroad freight 

 rates we should not overlook the importance, 

 uf securing w"ater transportation, especially for 

 the heavy, rough material in which the poor 

 end of our product usually is presented for car- 

 riage. Just as on the Great Lakes it has been 

 possible to move low grade lumber that cannot 

 be moved by rail because of its low price, so b.v 

 Improved rivers and canals we should be able to 

 move and give a value to much more lumber than 

 is now possible. 



This matter of our waterways, in my judg- 

 ment, is one of the subjects tliat should have 

 Bpecial consideration by manufacturers of lum- 

 ber all over the country, but particularly in the 

 great southern districts where yellow pine, cy- 

 press and hardwoods are manufactured on a 

 gigantic scale. The waterway movement also 

 should be supported by the manufacturers of all 

 articles in the great central markets in order 

 that they may receive their raw material on bet- 

 ter freight terms, and may reach their own 

 markets, whether domestic or foreign, at the 

 lowest possible cost. 



In many lines the world market tixes the produ- 

 cer's price. In grain every cent saved to the farm- 

 er in transporting his product to Liverpool means 

 u cent added to his farm price. The waterways 

 question is emphatically a national one and con- 

 cerns every citizen, whether he be a lumberman. 

 a farmer, farm implement manufacturer, ma- 

 chinery manufacturer, a manufacturer of what- 

 ever sort, or simi)ly a consumer. 



If you are of such mind it should be the 

 pleasure and the d\ity of every lumberman in 

 the strongest possible manner to emphasize it to 

 His congressman or United States senator in 

 order that he may feel that the country is back 

 of him in an intelligent and liberal treatment 

 of the subject. 



Oreat Lakes Traffic 

 While a comparison between the railroads and 

 the Great Lakes is not exact, .vet the Great Lakes 

 furnish a good illustration of the value of water 

 to carriage. The receipts of domestic coal at 

 <?reat Lake ports during 1909 by lake were li.- 

 2'Ai)M2 net tons, the equivalent, at tiU,OI!0 

 pounds to the load of i>li.Q'''~ cars. It would 

 cave been a physical impossibility for this coal 

 to have been transported over the railroads to 

 the same points. 



The ore and mineral traffic was still greater. 

 ■Jhe receipts during last year at our own ports. 

 uud shipped from our own ports, were 42.104.174 

 gross tons, or about 1,500,000 cars. If we con- 

 eider all the ore transported on the Great Lakes 

 the records show that it amounted to 4'J..'i86..S00 

 gross tens, the equivalent of l,."isn.!)10 cars of 

 00.000 pounds each, or ,'51,798 trains of fifty cars 

 each. This is equivalent to 0,0:i:'> 3-r> miles of 

 oars of 30 feet each. The average water freight 

 on these shipments is only 5") cents a gross ton. 

 The receipts of lumber during 1909 at do- 

 mestic ports and shipped from domestic ports, 

 and therefore not counting Canadian importations, 

 amounted to l,l."i4.."i.'jl,000 feet, 'i'hi' total car- 

 ried, including Canada, amounted to about 1,- 

 4.")0,000,000 feet. The average freight was about 



.$1; a thousand feet, making au aggregate cost 

 of ,1:2,900,000 for transportation of this quantity 

 on the Great Lakes; but if this amount of lum- 

 ber had been transported by rail, since it may 

 be estimated to weigh, on an average, 3.000 

 pounds a thousand feet, the cost of carriage at a 

 re.asonatjie rate of l,") cents a hundred pounds 

 would have been ,^14.4,")0,000, or about .">'-j times 

 as great, or a saving of .f 3,62,'5,000 to the manu- 

 facturer, requiring 72, .^00 cars of 20,000 feet 

 capacity each, and 1,450 trains of fifty cars 

 each, besides his being able to move the lumber 

 promptly and regularly. 



The economic carriage of heavy freiglits on de- 

 pendable w'aterways is admitted and if anything 

 like the results achieved on the tjreat Lakes 

 could l)e had on the rivers and canals an enor- 

 mous saving would be made to the lumbermen 

 and lumber consumers of the United States. The 

 rail cost is invariably from two to three times 

 the water cost of freight where comparisons are 

 available. 



Tariff 



Leaving for a time this line of thought I wish 

 to refer again to the tariff campaign and make 

 some suggestions iiased upon experience. 



When we met in Seattle last .year the tariff 

 legislation w^as in its last stages, but after the 

 meeting I had to go at once, through Chicago." 

 to Washington, in consequence of the threaten- 

 ing aspect of matters at that time. If a protec- 

 tive tariff was not the policy of this govern- 

 ment I think all of us would have different 

 claims to make regarding our own industry : but 

 so long as our tariff policy is l)ased upon the 

 protective theory we insist and still insist that 

 lumber should be treated no differeully from any 

 manufactured commodity. 



We claimed that the old rate of $2 a thou- 

 sand feet on rough lumber w^as a low one. It 

 amounted to less than twelve per cent ad valorem, 

 as against about forty-five per cent as the aver- 

 age of the dutiable list. We held that it should 

 not be lowered but that, on the other hand, if 

 it were possible it should be raised. Yet we 

 did not ask for any such step, nor did we 

 strongly object to some reduction. When Con- 

 gress took up the matter the ways and means 

 committee of the House was almost unanimous 

 in favor of free lumber. Its members were in- 

 fluenced undoubtedly by the cry of lumber trust 

 and of extortionate prices. These demagogic 

 claims abs(ilutel.\' came to be b(4ieved. If you 

 only shout loud enough and repeat your claim 

 times enough you are likely to b* believed un- 

 less there is effective contradiction. We propose 

 to be in a position in the future to give this 

 contradiction to the charges of the demagogs 

 and to show the people what the tacts are, and 

 through our National association have both po- 

 litical parties feel the importance of the lum- 

 bermen of the Unit<'d States and the importance 

 of having no plank in their iilalforin effecting 

 our industry without a proper bearing and pre- 

 sentation of our casi' before their platform com- 

 mittee. 



That we were right in holding that the lumlii'r 

 duly should not be reduced has been shown by 

 experience since then. Canada had piled up a 

 large amount of low grade lumber which since 

 that time has been coming across the Great 

 Lakes and has had an appreciable influence on 

 the prices of our own low grade output. 



While lumbermen in their cu-ganized capacity 

 arc not in politics, and we have in the member- 

 ship of our various affiliated associations men 

 oi all political beliefs, yet, under the situation 

 as it is, I believe we should stand firmly for 

 just recognition of the needs of our industry. 

 The National Lumber Manufacturers' Associa- 

 tion stands for the lumber producars of the 

 country in that matter, and so long as us or- 

 ganization is maintained it will be ready to stand 

 by what it believes to be right and just in regard 

 to all matters, national or state, affecting our 

 interests. 



HOJIE OK THE .\SSOCIATIO.\ 



I wish to make a suggestion in regard to the 

 organization and work of this association. While 

 its conventions are not mass meetings, they 

 sliould, with profit, be attended by a very large 

 uumber of lumber manufacturers and timber 

 owners, but so far the meetings have lieen, for 

 the most part, held in the extremes of the coun- 

 try. We who could attend them enjoyed these 

 trips to farawa.v places, were delighted with the 

 hospitalit.v we met and enjoyed the acquaintances 

 we made, and yet only a comparatively few 

 could go, and it has not even oeen possiliie to 

 secure such a complete attendance of the board 

 of governors as is desirable. It seems to me, 

 therefore, that it would he well to adopt for the 

 future some definite, central point at which our 

 meetings. l>oth of the delegates and of the board 

 of governors, would be held, which by its con- 

 venience of access would draw a big attendance 

 of manufacturers at these most inspiring meet- 

 ings, at which the w-ork of the association would 

 be concentrated, which could become statistical 

 headquarters for the lumber industry, and where, 

 in their travels about the country, the lumber- 

 men could visit headquarters and avail them- 

 selves more readily of the facilities which we 

 hope to extend to them. I would be glad if you 

 would give this matter of establishing permanent 

 headquarters, not only for the work but for the 

 meetings of the association and of its hoard of 

 governors, your careful consideration at this 

 meeting. 



In this connection I wish to extend to .vou, 

 individually, a most cordial invitation to call at 

 Ihe manager's office whenever you are in or 

 passing through Chicago, giving to our manager 

 any information which you might think would 

 In- of benefit to him or the office, or be dissem- 

 inated b.v him to the various affiliated associa- 

 tions of the other lumber manufacturers. 



The Business Situatiox 



I cannot close without referring briefly to the 

 liusiness outlook. The lumber trade in general, 

 as well as business of all kinds, can be congratu- 

 lated on the improved conditions during the last 

 yi'ar as compared with previous year. Lumber 

 has not fully shared with the general prosperity, 

 for. as in the past, it is the last thing to im- 

 prove, but the underlying conditions were never 

 iK'tler. 



The farmer, and he must he seriously con- 

 sidered, never had more money, everything he 

 produces being higher in price than ever before 

 in the history of this country. Croiis. generally 

 sijcaking. never were better, nor th(; future 

 lirighter from the agricultural standpoint. In 

 fact, there never was a period when that which 

 the farmer produces would purchase as much , 

 lumber or other material as at present.- The 

 financial situation is a sound one. .lust now 

 the financial authorities are surprised and a 

 little alarmed over the heavy exports of gold. 

 Init it is evidently a temporary condition, due 

 in the main to worldwide ijrosperity, and also 

 influenced a little by speculative activlt.v abroad, 

 especially in England. 



The banks are, on the whole, in good condition, 

 as the handsome profits their recent reports 

 show, and indicate a good demand for money 

 a I remunerative rates. 



All lines of manufactures seem to be pros- 

 pering. All steel mills are sold ahead. The 

 United States Steel Corporation shows such enor- 

 mous earnings that it has announced that the 

 wages of its employees will be advanci'd to an 

 aggregate of possibly .$10,000,000. Cars arc 

 scarce and the railroads must soon replenish 

 their supplies. Two railway presidents within 

 the last two weeks have told me they were 

 going to broaden out in the way of expenditures, 

 in imporvements, in the equipment and exten- 

 sions. 



Over all sections of the country, in all lines 

 of business, reports are highly favorable, with 

 the exception perhaps of some of our own, and 



