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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: National Lumber Manufacturers The American lumber industry Place: Chicago Date: 1912 COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIQINAL MATERIAL AS FILMED - EXISTING BIBUOGRAPHIC RECORD MASTER NEQATIVE f 350 N213 if %1 National lionber inanufaoturers* association* The imerioan. luniber industzy • • • Chieago« 1912* 238 p* diagrs.^ tables* 24 am* "Official report. Tenth annual convention. National lumber manufacturers' association, held in Cincinnati, Ohio, May seven and eight, nineteen hundred and twelve*" o RESTRICTIONS ON USE: FILM SIZE: TECHNICAL MICROFORM DATA REDUCTION RATIO: \^ IMAGE PLACEMENT: IA^^hT) DATE FILMED: 9l-'2)-^S INITIALS: TRACKING # : HLMED BY PRESERVATION RESOURCES, BETHLEHEM, PA. Ul 3 3 o- Ql O — Q 3x O ox oorsi Ul 3 > o m (0 O CO ^ o ^ cz X N X 8 m o O 3 3 > Ul S 3 3 o te 00 in 1.0 mm 1.5 mm 2.0 mm A8CDEFGHIJKLMN0PQRSTUVWXYZ ' ' hiiklmnopqrstuvwxyz 1234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijkimngpqrstuvwxyz li34567BdO ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdef gh ii kl mnopqrstuNwxyz 2.5 mm 1234567B9!0 a- 4^ 4^ 4^ 4. m O o ■o m -o Oll"0 30 ^ ^ > C c*> 2 I TJ ^ 7^ O 00 m 39 O 3 Ul 3 I •< 3D M to •—-4 8i •sl-< ODNI 8 O 3 3 o > f O 3 X < o |o »< 3D CJI< oorsi iS AMERIC LUMBER INDUSIHY mm .ft* Cidmnlna IBnitftTOitp Mil II LIBRARY School of Business The American Lumber Industry F«VMt Co n— n r a tioa Lumbermen and Wood-Using Industri— Workmen's Compensation Fire Hasard Attack on L'uabor TIm Tnwt QmsImb h^hMtrial C o o po m tSon Lumber Prices Cut -over Land Development • ••••••.» » » • »«( . * * 4 t t 9 • « • O F F I q I A L REPORT TEFjTH; 4»NI?M.QQNVlENTIOII NATIONAL LUMBER MANU- FACTURERS' ASSOCIATION, Held in CINCINNATI. OHIO, May Seven and Eight, NinetMtt Humired and Twelve. • . . . CHICAGO :: :: NINETEEN TWELVE PUBLISHED ftsf AUTEOMITT of the NATIONAL LUMBBB MANUFACTUBEBS' ASSOCI- ATION By LEONARD BEONSON, Mgr. OmOAOO STOCK KXCHANGE BLDQ. * » • . • ^ • • » » • ,' . . . f ■ ; '1 PBICE ONE DOLLAB > ■ . ' House of Bttre(i«it»ti^«® APR 12 1934 CONTENTS FIRST SESSION PAGE Opening of Tenth Annual Convention 11 Invocation 11 WSLOOMS on Bshalt of the Habdwood Manufacturers' Association of THE United States, by W. E. DxLanst, President 12 WELOOMX on BEHAIiF of THE LUMBERMEN'S ClUB OF CINCINNATI, BY CHARLES F. Shiels, President 13 Bbsponse to Amobsses of Welcome, by Pbbsident EvratBrr G. Griggs 13 Inter- Association Bslations, by F. E. Parker 15 Boll Call 16 Annual Adskbss of the President, EvEBSTt G. Griggs 18 Beport of Manager — ^Leonard Bronson. 29 Report of Secretary — Georgf: K. Smith 52 Appointment of Committees 55 Report of Conservation Committee, by J. B. White 57 Report of Workmen's Compensation Committee, by Paul E. Page 60 Proposed Railroad Weighing Reforms, by R. M. Carrier and A. T. Gerrans 67 Concentration and Milling-in-Transit Rates 69 Report of Committee on Classification Wood Boxes, by M. B. Nelson. ... 72 Report of Committee on Memorial to J. E. Defebaugh — L. K. Baker, Chairman; C. A. Bigelow, Secretary 76 S£COND SESSION Hardwood Manufacturers' Association of the United States, by W. E. DrLaney 7» Thi Trust Question as Bslatino to the LuMsrat Industry, by Charles a Keith 85 Beport of Advertising Committee, by A. T. Gerrans 118 Beport on National Chamber of Commerce, by H States. North Carolina Pine Association (inc.). Georgia-Florida Saw Mill Association (inc). Yellow Pine Manufacturers' Association. Southern Cypress Manufacturers' Association. Western Pine Manufacturers' Association. West Coast Lumber Manufacturers' Association. Pacific Coast Sugab & White Pins Manutactuebes' Association. Officers Pebsidbnv— E. G. Qeigos Tacoma, Wash. FntST yiOB-PBSSiDENT>-B. H. Yansant Aidiland, Ky. Second Yici-PBisDmNT-nJ. B. GOnead Olwawood, Fbu Thied YiGB-FEEsmENT— B. H. Downman New Orleans, La. TEBASTOSE-nJ. A. Fesbman TaeoBiay Wadu Manages — Leonard Bronson Qiieago, IH. Seobbtabt— Obob^ K. Smith St. Lonl^ Mo. Board of Governors William Irvine Chippewa Falls, Wis. W. C. Landon Wausau, Wis. C. A. BiGELOW Bay City, Mich. W. A. Gilchrist Memphis, Tenn. John M. Gibbs Norfolk, Va. P. E. Waymer Jacksonville, Fla. J. B. White Kansas City, Mo. A. T. Gbibans Houma, La. B. M. Habt Coeur d'Alene, Ida. L. J. WsMTWOEsa PorOaiid, Ore. Gbobob X Wbnoung Saa Fraiieifleo, OaL BDWAtt mam (m^i^) Clifcago, HL 9 FIRST SESSION « Tuesday Porciioon, May 7, 1912 The Tenth Annual Convention of the National Lumber Alanu- facturers' Association was held at Cincinnati, Ohio, on May 7 and 8. 1912, at the Hotel Sinton, under the chairmanship of President Everett G. Griggs, of Tacoma, Wash. The first session was called to order by President Gri^ shortly after ten o'clock a. m., who introduced Rev. Charies F. Goss, pastor of the Avoadale Presbyterian Church, who offered tl» folbwing prayer : Invoemtioa Help us, Thy servants, now Oh Lord, our God, to give expression in some way to the deeper thoughts and feelings in die hearts of these men. It has seemed good for diem to set aside a moment for prayer and meditation upon those great obligatiotis which rest npoa aU men in life. We pray that now they may give this moment of serious thought to these great duties which God has called them to perform. We can hear them in their own hearts thanking Thee, our Heavenly Father, that Thou hast given them a place in the world of bumness, a place to struggle in, to win bread for their families, and to exert an influence upon their fellows. We can hear diem dianking Thee diat this work lies in the domain where their activities are daily called upon in the great world of wood work ; and. Our Father, we thank Thee for them that this great busi- ness calls out all the energies of their lives and that through it diey fulfil such valuable results in hvaxan life. We pray that while they struggle with diese great re^Kmsibilities, diese great affairs, diey may give dieh- serious diought and attention to that which is of even greater value than the world of business, that diey may not forget the world of sentiment and feeling. Help them to remember that besides the material world with which they deal they have in them elements of mystery, of romance and of charm, and in no callmg more so than in dieirs. Help diem always to carry recol- lections of die tender feelings of childhood as di^ kx* up^m a tree II 12 National Lumber Manufacturers' Association and rcniember the old tree under which they lay and dreamed as boys, where they heard the first bird sing, where the swings hung low, and there was so much that happened to touch the imagination and the heart of childhood ; and Oh Lord, help them to be sensitive to the mystery and charm of life and always keep their feelings and their hearts young, even in the intense struggles of life, even in the great battles of life where we are opposed by what seems to us at times ahnost irresistible obstacles. Now, our Heavenly Father, give these men more courage for life, give them kindly hearts, and help them to deal f akly with each other and with all men. Help them to take their part in all the activities of this great world, and always and everywhere to obey Our Heavenly Father in this, their work, for Jesus' sake. Amen. President Griggs : Gentlemen, I understand we are doubly for- tunate today in being booked for a double welcome, Mr. W. E. DeLaney, of Cincinnati, President of the Hardwood Manufacturers' Association of the United States, and Mr. Shiels, President of the Cincinnati Lum- bermen's Club, having agreed to divide this honor between them. Mr. DeLaney is a lumberman, and in behalf of his association will welcome the convention to Cincinnati. Address of Welcome BY W. E. DE LANEY^ OF CINCINNATI, OHIO Mr. President and Gentlemen : As you have met in the territory of the Hardwood Manufacturers' Association of the United States, I, as President, have the pleasure of welcoming you. Were it not for the fact that some of us are broke, and some of us flooded, there would be more of us here this morning to greet you. I believe it has been customary for the mayor of the city to welcome lumber conventbns, and turn over the keys of the city to them. I have no official power of that sort; but if the press of this country is to believed you are a k)t of porch-climbers anyhow, and do not need any keys. I might say to you, however, that if there are any of you here that want anything, and cannot find it, we will try and find the keys for you. It has been suggested that we might show our appreciation of your meeting here by some sort of an innovatkm, and that perhaps the best thing to do would be to construct a scorf^•board, that you may be able to get the details of the ball game this afternoon without leaving Address of Welcome 13 the convention floor. The President heartily concurs in that suggestion. I am not very strong on this welcoming business, but we have a gentleman here who is a real welcomer, and I fed sure that after he gets through you will feel that you are among your friends. This gentleman has the honor of representing the first lumbermen's club in this country who took for their policy "a square deal." There is not a manufacturer but feels that he can ship lumber to this market with perfect safety. If he has any grievance or thinks that he has been treated unfairly by a buyer here, our Lumbermen's Club will, upon request, settle the question through their Arbitration Committee, and every member of the Club is bound to abide by that dedsicm. I have the honor to introduce to you Mr. Shiels, who was last night elected to the Presidency of the Cincinnati Lumbermen's Qub. [Applause.] Address of Welcome BY CHARLES F. SHIELS, OF CINaNNATI, OHIO Mr. President and Gentlemen of the Naticmal Lumber Mamufac- turers' Association : It is my honor this morning to welcome you to our city in behalf of our local Lumbermen's Qub. We of Cincinnati have grown so accustomed to having strangers within our gates that it is very seldom that we now offer our guests the keys of the city, for as Mr. DeLaney has just told you, our stock of keys is completely exhausted. But anticipatii^ this emergency, I want to tell you gentle- men that we have had the gates of the city taken from the hinges, and if it becomes necessary for any of you gentlemen to find the ball park, or any other place in our city, we will make it exceedingly easy for you, both of ingress and egress, and the way will be broad for you to get back again. Gentlemen, I am not going to take up any more of your valuable time this morning, and will close by wishing you all a pleasant and profitable session. [Applause.] Respcmse to Addresses of Wdcome BY PRESIDENT EVERETT G. GRIGGS, OF TACOMA, WASH. I think that one mistake that has been made by the National Lum- ber Manufacturers' Association is the fact that instead of appropriating $100,000 for the School of Forestry we should have appropriated about $ioo/xx> for a School of Oratory. Ever since I have been elevated 14 Nauonai, Lumber Manufacturers' Association to the position of Presidoit I have been chasing around the country receiving and talking to delegations, addressing conventions, and really I l»ve Mt at times that I cotild hardly fill the bill, for you know the ordinary sawmill man of the country does a great deal of his addressing by making signs — it is this way, or this way ; but very often when I found that I was billed to address a convention I could generally find some one of the members of our organization who would substitute for me and enable me in that way to meet the situaticMi. I have a place assigned me later on the program, and do not want to take up too much of your time now in responding to the very cordial welcome that has been doubly extended to us. I do want to say, however, that ever since the subject was broached of coming to Cin- cinnati I have been in hearty sympathy with it. I think it was Mr. Gerrans who said, when the matter was up in the Board meeting, that if a ball game were going to be played at Cincinnati while we were here he would vote in favor of the assodaticm hdding its convention in this city. Now we have gathered and we have got the ball team here. Mr. DcLaney, in his address of welcome, said that if necessary, in order to our better carrying on the work of the convention, he would have a scoreboard put up here on the stage so that we could keep in touch with what Ac "Reds" were doing. I have felt, however, that we were here for very serious work; and one thing that appeals to trie more than anything else particularly is that while coming into the city yester- day, after five days of sleeping on the car, from the other side of the Rocky mountains, it seemed like reaching home to strike Cincinnati. As we came along into the city I heard the buzz of the saw mill, and the buzz of a saw mill to a lumberman always sounds good. I *hkA^ when we leave here that wc will fed that it has been a good place to come to. If any of these wandering lumbermen requires the key of the city, I should only suggest that somebody buy it for him and charge it up to the advertising fund. Now, gentlemen, we have Mr. Parker, the President of the Naticmal Wholesale Lumber Dealers' Assodation, and I want to deviate from tfie program to the extent of askii^ him to address ^ht convention before we proceed with the r^:ular order of business. Inter-Association Relations IS Inter-Asaociation Relations BY F. E. PARKER^ OF SAGINAW, MICH. Mr. President and Gentlemen of the Convention: I am not an orattM-. In fact, I think I am in a class far behind Mr. Griggs, as you will easily admit when I get through. But I am indeed very much pleased to come here and to represent the National Wholesale Lumber Dealers' Association. It gives me great pleasure to state at this time the very kindly relations existing between your association and our association in tte many mutual undertakings in which we are now engaged. I bdieve that there was never a time when assodatkm work was so important, when the average individual ktmberman, be he manufacturer, or be he wholesaler, needed the offices of this association as much as he does today; and I feel that every man, whether he be a manufacturer or wholesaler, who is outside of the association is not doing his part, and is a parasite and a shirk, for, while he is deriving a great and indirect benefit, he is not, on the other hand, reciprocating by doing his fair share of the work. Now first, in regard to the relations between the National Lumber Manufacturers' Association and the National Wholesale Lumber Dealers' Association, we rather bow to you as the first association, being the manufacturers, the next in gradation being the wholesalers, and the third the retailers. I would like to see these reciprocal rda* tions between the manufacturer and the wholesaler existing all the way down the line, so that in the handling of the many matters of great importance to lumbermen throughout the country the work could be carried along in unison and in harmony, and I feel sure that thereby better relations could be assured and enjoyed. ETHICS OF THE LUMBER TRADE I wish to speak briefly on the ethics of the lumber trade. Today, in the oomplicated business situation which has arisen from govern- mental supervision and corporate control, and various other complica- tions, the lumbermen at the present time stand subject to closer inspec- tion, to more acute criticism, too often unfair — criticism such as he does not deserve in my opinkm ; for I am strongly of the opimon that the ethics of the lumber trade today are Oian ever before, and that we stand weU in the fixMit meks fay eon^arisoci with all the other husineises. [Applause.] i6 National Lumber Manufacturers' Association Standing as I do between the manufacturer and the retailer; standing as our association does between the manufacturer and retailer, we feel that the ethics of the manufacturer and of the retailer are in close harmony with those of the wholesaler. Now if we are going to keep our good name wc have got to work together in these laige associations to see that we get fair play, whidi in my opinxm, wc have not gotten so far. I think you will all agree widi me in this statement. In conclusion, gentlemen, although my stop here is very short, I feel fully repaid for coming here and meeting this very fine delegation of men. I hope that we will have a good attendance of your members at the next convention of our Wholesalers' association. I hope your very fine President will pay us a visit at that time, and wc will try to do evefytiiiog in our power to make it pleasant for him. [Applause.] PiBSii^NT GiiGGS: The Secretary will call the roll of the Affiliated Associations. IMlCall Secbbtabt Sioth: I would like to aik if the variona detegates h&n, irkok the roll is called, will state who are here representing eaeh M^Aftitiftni We hmve the names, but it might be of interest to all present if someone in the delegation could rise and give us a memorandum of the number of delegates we have from each organization. I will now call the roll of the flffmiatioM •«Kf i^ with the National, as follows: W ea te r n Pine Manufacturers' Association Preaent. One delegate. Sontheni Cypreaa liannfaetaiera' Aaaoeiation PraMBt. One delegate. Hardwood Kannfactiiran' Aaaoeiation of the United Btatea Pnaent Sis deiegataa. meUgaa Hardwood Maaaftetorera' a— .^t%a Preaent delegatea. Korthetn Hvnlock Hardwood Manufaetnrera' A,ii^y t ^ ff ^ Present. Four delegates. Northern Pine Manufacturers' Aaaoeiation Present. Ten delegates. Yellow Pine Manufacturers' Association Present. Seventeen delegates. North Caroline Pine Association (Inc.) Present. Six delegates. West Coast Lumber Manufacturers' Aesociation Preaent. Two delegates. PbBSII»NT's ADDtBSS 17 Pacific Coast Sugar & White Pine Manufacturers' Aaaoeiation (No response at this time.) Georgia-Florida Saw Mill Association (Inc.) * Present. Four delegates. President Griggs : In accordance with the program, the address of the President follows, which, with your permission, I will now read: Address of President BfWMt 6. Griggs Ten years ago, on December lo, 1902, this assodation was CMrgan- ized. We are now celebrating its decennial and are confronted by so many national problems that our future discloses opportunities more absorbing than our past accomplishments. It must indeed be a source of gratification to the founders of this assoGtttioii to realise the ooiiibi»ed strength of tis affiliated membership and fed that as a nadonal body we can daim presidential r eco gn i t ion, senatorial courtesy and congressional investigation. Composed, as we now are, of nearly a dozen affiliated associations of 1,000 members, and an annual capacity of sixteen billion feet, we represent the combined capacity of the lumber producing districts of the entire United States. When you realtae that in 1910 the Bureau of Census con^Ued statistics from 31,934 active saw mUls, otttiog 4O/>i8»a80/xx> feet of lumber, 3494,718,000 ladi and 12,976,362^000 shingles, you begin to appreciate what the Department of Commerce and Labor seems finally to have discovered and so haltingly announces that there is no lumber trust. (»GANIZATION UNITED We have a business organization capable of doing what it has inaugurated in the past, a great national work in uplifting an industry that concerns a vast army of m tfu^ aflPects the entire country, federal and state alike. During the past year your President has been confronted with some problems of membership, but I am pleased to report all have been satisfactorily adjusted. The membership is united and active. On the Coast we have formed the West Coast Lumber Manufacturers' Asso- ciatkm, absorbing thre^ others, and vigcmiusly sappotting the NatkMiaL There is a confidence expressed throdgfaout our wff'y^^CTtfilp in our honest efforts to accompli^ real beneficial results for the entire lumber fraternity. We must look beyond the individual membership and com- pass in our work the entire industry and even those outsiders who prey upon the combined efforts of others, profiting but not subscribing. Radical steps were necessary during my incumbency but your 18 PunsBirr's Asonss if Board has been unanimous in its recomwiendatwns and appiedative of the difficulties encouirtered. I can only say that I bring yon today a united organiiatran, Hii^ed together for the common good, and true to the principles that called it into being. GONFIDBNCE OF MBMBRBS ESSENTIAL Associations of independent business organizations must of a cer- tainty pass through travail and trial in meeting the problems of the day. If it is awake and actively alive to the interests of its members it will make itself felt. Its policies, hud down by its oi^ianizers and inter- preted by its Board of GovenKxa, may not always be approved by the indivkhnl member^; bm the work of die National assodatkm in its ten years has been an epoch in association work and every member may feel proud of its record. I can not censure too strongly the efforts of publicity seekers to foist upon the public a misinterpretatbn of the work of the Natkmal, and a narrowiqg of its efforts to the scope of the individual If we as an assodatkm do not tain 1^ the cudgel and fight for our rigfats, who in Heaven's name will? If we are to reward conscien- tbus individual effort toward the betterment of our associated con- dition with censure and distrust, where can we look for sacrificing personality? The success of this association is not determined by the men who occupy the honorary positioas» but by the confidence imposed in it by its entire roembershq^. IBMOVAL OF THE MANAGER'S 0¥WICE During the past year, and immediately on suoceedii^ to the office of President, I found it absolutely necessary to recommend to die Board the removal of tiie Manager's headquarters to the West, where I could be in ck^e toudi with the organization. At the end of a year, and by that same authority invested in me by the Board, after launch- ing into the advertising campaign, and being unable to again meet the Board before this annual meeting, I authorized Mr. Bi^mson to again establish his office in Chicago, where he could conduct die ^^^ffyiatiffn ymk and be in toudi widi die advertidng committee. I know die move has resulted in a strong supporting flank on the West Coast, and not a little credit is due both the Manager and our Treasurer, Mr. Freeman, for the attitude of the West Coast manufacturer. 20 National Lumbbr Manotactubbbs' Associatiom The frequent exchange of ideas and the necessity of famiHartring the Nalioiial with the cooditioiis and men in each componeiit part is my reason for masting upon at least occasional visits to the different a^odaticms by our Manager. There will be from time to time organizations and reorganizations, but I trust the lumbermen will ever maintain that respect for the National which it deserves and which is indicative of the character of the men who founded it. No matter how strong, either financially or nnmerically, the individnal associations, there is still that great field in tibe National woric that can only be filled by the larger organization. Maintain it at all hazards ; it will prove its importance in the years to come, and it will survive all the petty disturbances that the local associations must of necessity inflict upon it MAGNITUIXB AND DIVEBSITY OF LUlCUtt INDUSTKY • We are concerned in the welfare of an industry employing the largest body of laborers in the United States, affecting the one asset m the country of whidi the government itself is ^ largest individual owner, permeating in its ramificaticMis all the conservation theories of the day, and controlling through its timbered area many irrigation problems; an industry furnishing more tonnage which concerns the railroads and population of the country than any other. The proper utilizaticm of our trees can only be brought about by naticmal cooperation, because few communities where timber is grow- ing can utiMxe tocally the enture product of the log. Transportation problems confront us, and freight rates play the most important part in the disposition of our product. Every day new problems concern us and nationally we must meet them. I have asked the Manager in his annual report to cover in detail the <^erations of the past year, so tliat I will confine my rqiort to generalittts. STATISTICAL INFOKICATION In the work of the association I had in mind the practical working out of statistical information that would be concise and accurate and prompify received by the memb^^i^ while it was of value. The Secretuy, with headquarters at St Louis, has imktd out some val- uable statistics, which will grow in value as comparisons can be made. To be of better service it is only necessary for the membership to 21 return responses promptly. I believe we are on the road to securing data that will be of the utmost value to the assodatbn and statistical information that will be authentic. We hope to secure in time a businesslike inventory of our timber holdings that will controvert the alarming assertions of the timber famine bugaboo. With the now defunct reciprocity and its attendant waste in our own log operations, the estimate of standing timber would be very easily modified. Unless we can find a market for the etrtke tree the anxnmt of tunber cut to the acre will vary tremendously and will nullify all estimates of standing timber. The people must realize that as prices advance, timber holdings previously unavailable are opened up, and with higher values less of the tree is wasted. The same devastation takes place with timber that has taken place with every surplus nature has favored us. Timber was deared to malr^ isams, farms sold to make cities, and water has been going to waste for years and wiU umil the popuktkm warrants tiie investment necessary to harness it LUMBER TRUST IMPOSSIBLE ^ During tfie past several years the efforts of a venal press and political factions to establish in the eyes of the public a "lumber trust" seemed paramount. It would take the genius of a divinity to bring this to pass, and the aggravatbns of the lumber bu»ness do not breed this kind of an organizer. You are all familiar with the correspondence which has been made puMk through the press and through it aU must realize a hidden purpose to harass the industry. It is nothing less than criminal to aUow ^ personalities of the tariff issue and the Senate squabbles to poison the mmds of the people • ^l^h^T lumber. I believe that political mtcrvicws from the President of the United States should be so cen- sored that no injustice could be done. If the attitude of the Adminis- tration is such that the lumber manufacturers are to be continuaUy misrepresented, it is apparent that we are negligent in not refuting these statements as often as they appear. When the story is finaUy written of iht tariff fight, the reciprocity campaign and the free pulp for paper, we may understand the attitude of politician and press. I bdicvc we have a right to know the cost to the government of this mvestigation and its results. NAnowAL Loiott Manufactukbbs' Associaiww tmamiax fioneess in development No wt of men are doing more for the development of our ooantrv than the logger and lumbermen. Pioneers they are, and have b^Z co^n ^^If"-'"'*' *^'«Mng the latent resources of the '-^J^me log com^ It takes somethmg more than theory and S^-Str^^.* develop the countiy. tetod of bemg despo.lers of the realm, they axe the WMer^X country. Come with me to any communihr when the hmAmr facturer and logger asides ai I will Z^^I^J^t^^ .«H H ^Jl^l'"" " ««y tnanufachTrer deplores « 1. wrely our province to save even the bark. Tra^or- ^ Md taxation are controlling factors in our operatioiii^dw •nan escapes either. -■■u™ mmt mt "«« xmntRKurr navam ik umaiR operations trust^'r^^S, 'inT" » W»S -"-Me to locate a lumber «e t»ldU« a mort appalling and unfortunate condition ^ counter m that our timber control is passing into th^ J«di of three mterests-and two of these are railroads thi h.„ P«.ed through receiverships and every other financial di««fciL «d m hungry for freight. Some men invest in nrine^1«2TS estate and some men in timber. The risk of fiie irSi^Ll,^ LABOR MFFICOLTtf I can not but feel that the men who occupy high positions in the councils of our countiy ^ ^ beforeXy fv^^TZ threat of the lumber »dj«ry or any other, because of the e„Lrag7me„t i„ a lesser degree of the todallMic agitators who are promptedTS^r t>»de..««n.t the world. The anarchistic doctrines n^^.^ ,2* Pmcsidbnt's Adixibss «3 are against law and order and stand for revolution. Given free rein, their leaders openly advocate a Labor Trust, and preach seditkm, disre- i^iect to the fli^ and the abolishmeitt of the wage system. I do not wish at this time to give undue prominence to the Indus- trial Workers of the World movement, but I believe that our fore- fathers have sacrificed too much blood in establishing the great Amer- ican republic to allow sedition, riot and revolution to be preached throughout the land. Must it ever take scwne frightful holocaust, some explosion like the Times, some Titank marine disaster, to turn tiie Amerkan peopte from patiis tiiat lead but to fess of Hfe and principles ? Do we realise that tiiere is a spirit of unrest at home and abroad stir- ring up revolution? From Atlantic to Pacific, from the Gulf to British Columbia, you will find men inciting these very things. It may be the forerunner of returning prosperity and will lose itself, as did Coxey's army, but those of us who have come in omtact with it and have any red blood in our veins must chafe at the teachings and documents tiiat are sows bfXMdcast and reoogoiae the disrespect shown our national end>lesi. The tactics employed in the West are the same as employed in the East, and we American citizens must wake up to the necessity of stifling this dissension breeder. CAPITAL Alio lABQR INS£PAliUH«Y UKXED The lumber business has passed through a serious ordeal during the last few years, with tariff issues, price difficulties, lessened demand, and severe curtaihnent It is but natural to assume that these con- ditkms have affected both capital and labor. Both have suffered alike, as they always will. Where labor is such a large factor in the selling price of lumber the reflection of a disastrous market is felt throughout the land. Conversely the return to prosperity is similar in its eflfect. The broadened market occaskmed by renewed demands of railroads and industrial development is reflected in tiie saw mill pay rofl. Capi- tal and labor are insqiarably linlwd in this devetepment and are con- tioUed by that inexorable commercial law of supply and demand. The preadiing of new doctrines and isms to readjust the present day ills may give political prominence to their advocates for a time and cause honest labor to be misled temporarily, but until capital becomes so unmindful of its welfare as to divorce itsdf from pros- perous labor conditkms there is littie fear of the final outcome. When tile fegger and luna)erman are happy, their kbor is equaUy 24 National Lumber Manufaciubebs' Assocuxioif to. It is a business where merit is rewarded, and justly so, as efficient tabor has much to do with the balance sheet. Look over the successful operators and you will invariably find men who have worked their way to the top. The man who wheels sawdust today is running the saw !!!S!1.!L ?T The sawyer becomes the •upamtendeitt and the superintendent the manager-and there is •ways room for tiie man who is not looking for salt pork and sundown. WGLFABE OF BMPLOYUS SHOOtD BB nmip Under these conditions it is little short of criminal for an ^""^ themselves on a com- n^WQr and be permitted to attempt to spread dissension and dis- WKte. whKh always affects the innocent ones in the end. To that dats of labor that is devoid of ambition or education it is important that we as operators and employers give some heed. . UrJiiT r>o\ongtT appeab and industries become so !Z i • fl« «pit»J do not recognize the hardships of taborjt IS im^rtant tl«t greater heed be given to the welfare of the «npkvee. Efficient labor is greatly to be desired and the work of MM aiployers, together with the Young Men's Christian Association BKlustnal secretaries and their collaborators will bring about benefits Zr^Th ^^"^ ^^"^ ec- tioos should be frequent and penalties to die careless enq>lo3rer and laborer alike inflicted. FUUS Pfi£V£NTI0N AND INSURANCE I believe our associations have accon^lished as much good in fire prevention and insurance" laws as in any other fidd. It b CMily by united action that we can bring the importance of this work to the attention of our state and federal government alike. We are guar- dians not only of our own property, but of the vast holdings of tim- ber of the state and government. Where standing trees have value their protection is an obligation the government officials too often fail to realize. The burning of adjoining tracts affects all and n^naees the property rights of others. As togging operatkms continue, changed conditions prevail and the proper disposition of tiie entire tree is as much a national question as it is an individual one. D£V£L0PM£NT OF LOGGED-OFF LANDS We should be awake to the proper use of our logged-off lands and reforestatbn. It will require a national movement to properly adjust our taxatkm laws so that our present timber holdings can profit by the mistakes of the past or the country can adopt sane laws of conservation and reforestation. Each district must be studied intel- ligently and a sentiment aroused that will appreciate the value of timber. Reforestation will never be practiced if lumber has no vadue. a6 National LoMtt MAHOTAcroam' AiaocuTHW i We can not expect men, who are striving to make operations pay under present conditions, to give much tiioi«lit to generations yet to come when thejr have difficnhy in taking care of the present. la •ome iMiaM of oar country timber is the only crop that is aevdoprng the district, and population and transportotion phv a verv miportant part in the value of the tree. f 7 • »wy I believe we should continue our cooperatiwi with the Forat rtl^";- , P'*'"* ^ ^sUy the phihnthnpk eA>rts that A^rtT.!!!!?.^ ^ ^ » way in combat- WW tfee aaKiteias of scandal-mongers, magazine writers, and their FOKESTS SHOUU) KECEIVE ASB0UAXB nOnCISMt lljjeve we ahonid exercise every effort to secure adequate gov- appropriations to protect the country's forests. It is cer- fcunly good insurance for the future welfare to provide natiooally a fund equa to i/io of i percent of the valne of steading ttohoTtSiy m the National forests. This as«K>.tion shotdd^TSsTbeh, cK touch wtth oar mttiooal gov«n»«t on an these polia^T aiR«AtK«r <» nrjuuoos insects should be prevented The necessity of cooperating with the govermnent, both national ^^'Z^I^IT^ *^ importatka, of insects detrimental to fruit t^J^f ^ °^ ^ ™a"«' which has been torooght to my attention by a number of our interested operators and ttober owners. It will require the attention of a sttoToSSiSe and the endorsement of this association to take the ^^^^^ prevent the detrimental effect caused by the spreJumd^SS these msects if proper prevention is not undertaken at once^^ ^^^T^^L^ to educate any business man-and tariff issues rtiir s?uS^:^r ^'^^ '^^^ ^ ^ In carrying on the work of this associatwn we are secorine &cts ^tesas fte agncal^ fip^ ^, «'^aign so straight, smoere and above-board that it will counteract tiiese libekm attadcs. I bdieve that in our advertising woik and the committee as now con- stituted we have accomplished the grandest work yet undertaken by the National. People want to know the facts, are hungry for infor- mation, and we have now provided the best means of reaching them. No committee will care to undertake a work of this magnitude with- out the unanimous assurance of this membership that their obligations will be cared for and the further assurance tiiat the whole f oree of this magnificent oi^anization is bdund it I congratulale the commit- tee on their excellent start and have every confidence in tiie success of their efforts. RAILROAD PROBLEMS Our railroad work has been handicapped by lack of committee organization, but I am pleased to state we have secured a number of willing workers who will push this work. We have so much to accom- plish in l^^istotkm govemmg equipment, freight aUowances, actual freight paying we^ts, master car butkkr sites and grades, that co5peration on these lines is essential. a8 National Lumber Manufacturers* Association STANDARDIZATION IN LUMBER MANUFACTURE Our standardizatioQ work is a tedious operation, but essentially ao. Tkm is no more necessity for a half dozen different thicknesses of ceiling, drop siding, flooring and dimension, when used for the same purpose, than for the railroads returning to the old link and pin couplers or narrow gauge rails. We should have national standanls and any other patterns woukl be charged for. PAHAXA CANAL TOLLS Our West Coast and Gulf states are vitally concerned in the Panama Canal tolls, as is every consumer of lumber. So many ques- tions are involved that I beUeve the National associatxm can not take issue, but there is a safe, sane sohttkm of these commercial question so vital to our country's prosperity that I bespeak for this question your careful consideration. A readjustment of transportation rates and diarges must result on the opening of this great waterway and no false premises should be assumed. We as lumber producers will be drawn more closely together and the country will be benefited at latge, and justly so. We must realize that the country is a unit on its national polkies and can not l^iislate against any one district NATIONAL CHAMBER COMlfSlCB I am greatly impressed with the dignity of the National Chamber of Commerce of the United States and its uhimate results, which was recently formed as the result of conference in Washington. I believe it will mark an epoch in business development as viewed from a federal standpoint. Our kaaabtr interests are given fuU consideration and wiU be looktd after. I wish on this occasion to thank the Board and Committees of this association for their active, energetic cooperation during the past ■ year. The difficulty of getting together must be apparent to all, as we come from the four comers of the United States. The prompt attentk)ii to the details of our wotk and the quick responses to our written requests have made it a pleasure to be associated with such a fine body of men. [Applause.] PteSTOENT Gmggs : The next report will be that of the Manager, Mr. Leonard Bronson. Report of the Manager A summary of mj expense account shows a consideraUo ^"affl iiat of tiB¥«liBg^ since the last annual meeting. Mav 24 and 25, 1911. Jxmb 10-15. — trip to waahuigton and New Yoifc. June iS-JuIy 9.— Another trip to Washington and New York. Both of these trips were on instructions to do what was possibte in opposition to tiie Be^pioeilj Bill, and J^ew York was visited on a special errand of the Board. July 18w — Prom Washington, D. C, I went through to Tacoma, Wash., attend- ing annual meeting of the Pacific GiMet JjuMher Mnaa^iidtmm' AflwelttioB mad conferring with President Griggs. July 18. — Left Tacoma for the East and by President Griggs' instructions went through to Cincinnati and Ashland, Ky., on special business for the Associa- tion, returning from Cincinnati to Chicago. July 29.— Left Chicago for Tacoma, August 14. — A visit to Seattle. August 18-21. — ^Attended meeting of Oregon and Washington Lumber Mann- laetarert' Association at Portiaad, 0*8. August 24-26. — Meeting of the three North Coast Associations at Baymond, Wash., where they were consolidated into the West Ckmt lauaUm ICannfaetmeis' Association. Sept. 17-18 and Sept. 29 to Oct. l.->-Yltit8 to Portland; one in tiie interaet of the Advertising Campaign. Oct. 3 and 27. — ^Visited Seattle the second time to advocate the AdvertMUg Camnaign before the West Coast Lumber Manufacturers' Association. Not. 8.— Vltited Seattle to intefeat tiie shingle men in tte Advertising Can- paign. Nov. 10-13. — A trip to LaGrande, Ore., attending a meeting of the Western Pine Manufacturers' Association, when it aissured support of the National Adver- tising plan. Nov. 17. — Visited Seattle and Port Blakely on business of the ftwodaHwi Dec. 3-5 — Attended Forestry Convention at Portland, Ore. Dec. 22. — Visited Seattle on Association business. Jan. 2.— Left Tacoma for tlie East in behalf of the Association. Jan. 5-12. — Was in Chicago Jan. 8, attending the neetiBg ^ the Boaid «f Governors and of the Advertising Camjmign. Jan. 13-14. — In New Orleans, La. Jan. 15-16-17.— Attending meeting of Western Classification Committee at Galveston, Texas, thence visited Houston, Kansas City and St Lonb intenet of Advertising Campaign, Jan. 23, arriving in Chicago. Jan. 28-31. — ^At Cincinnati, attending meeting of Hardwood Manofactozen' Association of United States, which endorsed the Advertising Plan. Feb. 1-2.— In WaahingUm, D. C, on account of co r ieapende«ee with tie President. Feb. 3. — In Cincinnati. Peb. 4. — In Memphis, Tenn., on Classification Committee matters. Feb. 5-8.— New Orleans at meeting of the Yellow Pine Maanftidnireia' Ash>- ciation, at which National Advertising was endorsed and its mrrww aasnied. Feb. 9-11. — In Chicago, leaving there for Tacoma, arriving — Feb. 14. — ^Remained in Tacoma with the exception of several tripe to Seattle until — *^ April 2. — Left for Chicago, to which my office had been transfened. April 9. — Visited St. Louis in reference to Advertising Fond. TOTAL— Distance covered, about 29,200 miles. Bi^ absent from office, 126. 39 30 National LuMint Manupactuum' AsflOOAxmr 11 The Manager should attend the principal meetingB of all the affiliated associations, and in oonnectaoQ wtdi sudi visits, or especially, vmt as many as possible of the important manufacturing districts. This is necessary to keep in touch with the needs of each section and to get first hand suggestions and advice. To do this requires a capable person in charge of office details and correspondence. I have been fortunate in that respect until my recent removal to Chicago, where office offuuialkm is dekyed peiidii^ tfa^ In addkion, tfie advertise work will reqdre someone in constant diarge of its details, subject to cxmtrd of tiie advertising committee through the Manager. UnOESBNTATION AT OOSTVIimmS The association has been represented at several important meet- ings during the last year, in some cases by regular offioeriy and in other cases by special rq^reseirtatives. Revisioii of die Western Frds^l Classification has occoined two •essions of iSbt Western Oassification Cbmmittee ; one held in Mil- waukee and the other in Galveston. The Milwaukee meeting was attended only by Mr. Charles E. Brower, of Memphis, Tenn. The meeting at Galveston was attended by Mr. M. B. Nelson, Kansas City, Mo. ; Messrs. W. B. Roper and John M. Gibbs, both of Norfolk, Va.; J. B. Philips, of JadcsooviUe, Fla.; W. B. Morgan, Memphis, Tenn., and your manager, and sevefal hmbermen of Galveston and Houston, who i ' ■IIIIU it convenient to be present. The work done by Mr. Brower will be the subject of a special report. The association was represented at the National Rivers and Har- bors Congress, December 6 and 8, 191 1, by Mr. J. N. Teal, Portland, Ore., who made an address on the P^umuna Canal qnesdoii. It was special^ re p rese nte d at the Fire Insurance Congress, St Binl, 1^ W. A. Gildirist. President Griggs, Capt. J. B. White, Chairman of our Conserva- tion Committee, and Mr. R. A. Long were representatives of the asso- ciation at the Third National Conservation Congress, Sq>tember 35-27, 191 1. April 22, 1912, Mr. R. M. Carrier, member of Hie Board, attended a hearing of the Intersti^ Commerce Commission at Onc^o in the intereils of association. In Wadimgton, D. C, April 22 and 23, when was organized the Natkmal Chamber of Commerce of the United States, duly appmted Report of the Managei 31 delates from the National association were: J. N. Teal, Horton Corwin, jr., W. E. DeLaney and A. C. Dixon. We will have a rqwrt from Mr. Dixon on this meeting. IMPORTANT MEETING OF THE BOARD OF G0VBRN had been thus iwbtcfribfd. At the beginning the Southern Cypress Manufacturers' Associa- tion was committed to the campaign; then the North Carolina Pine Association heartily endorsed the movement and promised such sup- port as could be secured from its individual members; the Georgia- Florida Saw Mill Association adopted the plan; On Oct. 27, last, the West Coast Lumber Manufacturers' Association authorized the neces- sary asaesment of its members; and on Nov. la, 1911, the Western Pine Manufacturers' Association, whose Constitution requires that their assessments must be levied by the unanimous vote of the mem- bership, appointed a committee to secure this unanimous consent, which, I tmderstand, has been secured. Cooperation of the Northern Pine Manufacturers' Association was assured; and then on Jan. 29, 191 2, at its annual meeting at Cincinnati, the Hardwood Manufacturers' Aasodatkm of the United States came into full codpera tkm. Thenext wedc, at New Orleans, the Yellow Pine Manufacturers' Association authorized a voluntary assessment of two cents per thousand feet upon the product of its membership, one-half of which should be used in Yellow Pine advertising and one-half be contributed to the National can^iaign. Thh umtd, so far as pledges were ooooemed, more tiiaii die RfiPO&T OF THE Manager 27 $100,000 necessary before the campaign was begun. At a meeting of the Board of Governors on Jan. 8, 1912, the work of the advertising oonunittee was approved, and authority was given to the committee to proceed with the actual woric as soon as the sum of $100,000 was fully pledged. On March 30, a call was sent out from the Secretary's office to all the contributing associations for payment of 25 per cent of their annual subscription. The Committee and your Manager have also been engaged in securing the interest of lumbermen outside of our affiliated assoda- ticms. We are coaMtat^f support from some important timber and yellow pine interests. The shingle manufacturers of the northwest and eastern lumber manufacturers and dealers have expressed interest in the work. PUBLICITY The advertising campaign will mean far more than merely the buy- ing of space in the pubUcations and filling that ^>ace with well pre- pared copy, and it will mean more than a foUow-up campmg^ no mat- ter how thorou^ or ingenious. The lumber business is not in good standing with the press of the country, due in part to the talk about a "Lumber Trust," but very largely to the fact that the business has not advertised to any material extent, in the papers which lead in newspaper policies. Unprejudiced publicity is one of the things we want, but the busi- ness management of the papers objected so long as they tiiougfat iSsiBt our plan was to get it for nodi ling. While editorial or news space can not be bought m respectable, responsible periodicals— which, by the way, are the very ones that we need — their publishers have the spirit of fair play and good fellowship to the same extent as other people. Liberal advertisers are treated as generously in the news and editorial columns as good newspaper policy and ethics will permit The full publicity results from lumber advertismg can be secured cmly by unitiQg all lumber advertisers in a certain community of inter- est and influence. The Natkmal Lumber Manufacturers' Association may spend $100,000 or more a year for advertising; but such an amount could be spent in comparatively few publications out of the many thousands in the country, each of which has its share in form- ing public opinion. But oth^ lumber associations than the NatioQal 38 National Lumbia Manufacturbss' Association arc advertising, or will advertise. No inconsiderable part of lumber advertising is done by individuals in local papers or special mediums. Now let all these assodatioiis and all these individuals join their inflnence in demanding of the papers fair treatment of the lumber busi- ness — not treatment prejudiced in our favor, but let us demand that they shall merely treat us as fairly as they do other lines of business ; that their columns shall be opened to the same kind of news of the lumber business that they are in regard to others; that where the character of it permits tiiey shall handle matters favorable to the hsBBtm business as readily as mailers favmble to other lines. In short, to abandon their prejudice against us In favor of at least an impartial attitude. Can we bring this concert of action on the part of lumber advertisers to pass? I believe we can. All lumbermen of whatever cbss— manufacturers, wholesalers, or retailers— keenly feel the injus- tice with which they are treated, and ^lould be, and I believe witt be, glad to cooperate in a legitimate, businesslike way for the purpose of remedying the present regrettable condition. For example: In case a specially vicious attack is made upon the liunber business an article refuting and combating that attack can be distributed so as to reach practically every lumberman in the coun- try. Hundreds of these lundiermen are advertisers. Let them hi- dividually take this article to the papers with which they are doinK business and say to them: "An attack has been made upon the lumber business which we beyeve is not justified and is unfair. We would like to answer it In tfie mterest of fair pby it should be answered. We ought to have a chance with the public as against diose who trance us. Won't you publish this in such form as you please as the answer of the lumber- men, and my answer, to the charges made against them?" Sndi a fair demand, I believe, would be responded to very gen- erally. I have had articles of this sort puUished m hundreds of coun- try papers through this very means. The advertising campaign is a definite matter requiring a pretty definite amount of money, whereas a publicity campaign may legiti- mately require varying amounts of money, which should come from a Mparate fund. We refuse to bribe anyone, we refuse to buy that which diouhl not be sold, but abidutely kgittnmte ptMidty may cost s(Hnething in its handling, and, therefore, I would recommend Ae es- Report of the Manager 39 tablishment of a publicity fund of moderate proportions, but which will be instantly available when needed. THB RBTAILEBSr' RELATION TO SUBSTITUTES A few weeks ago I had the opportunity of addressing the annual meeting of the Western Retail Lumbermen's Association, Ae great retail organization which covers all the western mountain and coast states, in support of our advertising campaign. The fact has developed through correspondence and by personal contact with representatives of the retail trade, that while the retailers have lent themselves to the promotion of wood substitutes they are beginning to reaHze their mistake. Th^ followed the line of least reristanoe, supplying what their customers had been educated to a^ for, and because wood substitutes seemed to offer better profits than the regular lumber lines. But retail lumbermen are, for the most part, lumbermen first and general building material dealers only secondarily, and they have found that when they assist in building up a demand for substitutes for lum- ber they are cultivating a trade whsdi is easify taken away from fton, either by mail ofder houses, or by ^ producers or distributors of the substitutes. Consequently, I find that the retail lumbermen now, as a class, are anxious to get back into the lumber business as their prin- cipal, if not their only, line. This tendency should be cultivated by lumber producers. It lies within the power of practically every member of the assodatKMis affiliated with the National, thus to assist in opposi^ the improper substitutes for iundier, and in promoting l^^itimate lum- ber use, m his rdi^ions with his retail hmiber custxHners. IBCIPaOaTY WITH CANADA In view of the fact that some members of affiliated associations more or less seriously objected to the activities of the Natbnal during tiie past year in oppositkm to the Canadian reciprocity bill, reference should be made to it. At the annual convention at New Orleans, in 1910, the activities of the association in behalf of retaining a duty on lumber imported into this country were approved and also the omtinuance of that ac- tivity. At QdoigQ last year simibr action was taken approving ^ efforts made to deisat tiie Canadian redpiodty bili in ^ ioaa it was 40 National Lumber Manufacturers' Association presented and approving a continuance of the effort. Consequently, I feel that no personal criticism is due to those who represented the association in Washington, provided they performed their duties in- telligently and in a manner compatible with the dignity of this body. In this raped I believe that there is no ground for criticism. Him was no opportmdty to present this matter before tiie House Commi tt ee , but advantage was taken of the hearings extended by tfie Finance Committee of the Senate, and I believe that the entire mem- bership of the Finance Committee, whether republican or democratic, in favor of or opposed to the bill, was convinced of our sincerity and was impressed with the arguments placed before them. Our position was the more rapected because we did not play politics. We made no trades; we entered into no alliances, entangling or odierwise; we worked through no other channels; brought to our special aid no other element opposed to the bill ; but stood on the merits of our own case. When the final vote came and the reciprocity bill was adopted we accepted the decision and made no effort whatsoever to affect the campaign in Canada, which we were charged with doing. The Natkmal Lumber Manufacturers' Association's ttcord is absohitdy dean md optn in all this matter. I am glad to be able to assure you that whatever your opinions might be as to ^e merit of die reciprocity bill or the policy of the association toward it, you need not be ashamed of any acts or policies in this connection of those who represented you. What was done was in pursuance of the strongest possible mandate that could come frs shall be taken in comntction with such a proposition. Allow me to sptak frankly as to what I have learned as to die attitude of lumbermen in ^s matter. The majority believe that in the interest of conservation there should be such a duty as we have at present, which, being specific, is protective only upon the lower grades; and that national fair play would require, so bug as we are optfitiaf under our prcMnt financial system, that the very small duty Rsratr OF the Manager 41 upon lumber should not be disturbed, and that this is true whether the tariff be viewed either from a protective or revenue standpoint. Some sections feel that their comparatively new or heavily burdened industry needs some protection. On the other hand, there are some who are opposed to any import duties whatsoever, even for revenue. There arc more who feel that the protectkm to lumber is so slight under the present tariff that the benefit of its retention is hardly worth the cost of an effort to retam it or any criticism that it might arouse. A distinguished senator only three months ago said: "I think even you have little idea of how intense the prejudice against the lumber business is. Almost everybody here in both ends of the Capitol knows that diere is no lumber trust, but public c^inion has great weight and I believe that if somebody were to get up in the House and offer a resolution that all sawmills should be burned and all private timber confiscated it would pass with a whoop.'* This was a cartoon, but it expressed a fact which a good many of our people recognize when they say that it would be better not to make another fight for an import duty on lumber — that if lumber be put upon the free list, while many lumbermen will suffer in one way or another, the people, after all, wiU be the chief bsers. Yet some lumber sections and some special classes of producers feel that the maintenance of the duty is of great importance to them. Recently I have been asked to bring the influence of the association to bear against the growing importation of Mexican pine and of Asiatic oak. Manufacturers on our North Pacific Coast who are not also interested in Brhish Colun^ dread removal of the duty and strongly urge its retention. NATIONAL FOREST SERVICE I wish to congratulate this association and the people upon the personnel and policy of the National Forest Service. It appreciates the difficulties in the way of forest conservation and so is patient. An admirable spirit of intelligence and fair play is shown by those who compose it. It is constantly urgmg lumbmnen toward better mediods, and sometimes to do things which at present seem impracticable; but on the other hand, it appreciates the importance of the financial ques- tions and the practical difficulties involved. We had hoped to have with us at this meeting Forester Graves, 42 National Lumber Manufacturers' Association but he is rq)rcscntcd on the prc^ram by the head of one of the most important branches of the Service. forest products laboratory At Madison, Wis., the Forest Service has had in operation for nearly two years a laboratory for investigation of all problems relat- ing to forest products ; their characteristics, better utilization, preserva- tion, etc. Lumbermen expressed much interest in this institution when it was bdng planned and when it was opened, hut there their interest seemed to cease. The director of the laboratory informs me that not for a year has a single lumberman visited that institution, while every day come to it men engaged in other lines concerned with forest prod- ucts, as paper and pulp. A standing committee of paper men visit it regularly. It is frequently inspected by visitors from abroad. Almost every foreign country of importance has sent its representatives to see mtmt Uncle Sam is dou^ at his laboratory. The woric it does wiU very largely be determined by the demands made upon it, and it will be of direct value to the lumber business if lumbermen call upon it for assistance and cooperate with it. Any of the questions which are met with individually will be gladly taken up by this institution if you will present them to it. Let mt suggest to you, gentlemen, who by your presence here show your interest in problons of interest to the lumbermen, that you also di^lay your interest in this work and give it your encouragement and assist it with your advice, by making it a point to visit this laboratory. AN important government PUBLICATION Last year two members of the Forest Service in collaboration pre- pared a paper on the Lumber Industry. It is to be published as a bulle- tin entitled "Tendencies in Forest Utilization." It is a study of the Lumber Industry written by men who are as closely in touch with the business as outsiders can be, and who sympathize with -the difficulties of att sorts met by lumbermen. The paper deals wtdi maimfacturing and maricet proUems. It goes at length hto the subject of substitution as affecting tiie himber business. Akogether it is a remarkable paper which should be read with care by every lumber manufacturer. Great efforts have been made by both this assodatioo and the Report of the Manager 43 Forest Service to have the bulletin ready for distribution at this meet- ing ; but it has undergone revision after revision, special investigation having been made in connection with it, and our last advice, April 25, was that it would not even be in galley proof by the time of this meet- ing. However, in a very few weeks this work will be distributed to all the members of the association and I ask you to give it more serious consideration than you give to many puUicatkms of the Forest Service. It may contain some unpleasant and revealing facts and conclusions, but if the conclusions are soundly based there is all the mqre reascm for facing them frankly. INDUSTRIAL WORKERS OF THE WORLD A matter to which I feel you should give consideration, both as lumbermen and citizens, is involved in the activities of what is known as the "Industrial Workers of the World." We have not always agreed with the American Federation of Labor» but here is a new m-Americaa aad anti-American body, which literally as wdl as ^[uratively tranq>tes upon the American flag. It is back of the anarchistic spirit which has prevailed in political con- ventions where the American flag was replaced by the red flag. Its spirits and methods, however, affect us as business men. Seemingly it has no defined, no orderly method of procedure— its purpose is to destroy and bring chaos in place of order protected by law. I would suggest that partkokr consideratkm be given by this body to this new propaganda of ignorance and hate, and determine what our attitude shall be toward it, not merely as citizens, but as repre- sentatives of an industry which has been particularly attacked. FREE TOLLS ON PANAMA CANAL Regulations to govern the Panama Canal are of great interest to every lumberman, but especially to the producers of the Pacific coast and the hardwood manufacturers of the East As patriotic citizens, we want die canal to devdop American resotiroes, to build up Amer- ican trade, and especially to facilitate conunerce between our Atiantic and Pacific coast. The canal is going to be opened whether we like it or not, and the real question is as to the regulations covering it. It is generally admitted that if tolls are equal to vessels of every flag, foreigners and 44 National Lumber Manufacturers* Association foreign commerce will profit more by it than we who built it. The canal is being dug and must be operated under the provisions of solemn treaties with Great Britain and the Republic of Panama. It is evident that we cannot in good Udth, unless the treaties be amended, allow American vessels to have any competitive advantage m the use of the canal. But President Taft admitted at San Francisco last fall, and it is the general tenor of expert opinion, both American and foreign, that we can admit our purely domestic trade through the canal at lower tolls than diarged foreign vessds, or free. This is because foreign vessels have not, for ninety years, been allowed to engage in our coastwise, port-to-port trade, eitiier directly or indirectly. This being the case, a demand is made by the entire Pacific coast, and by almost every commercial body on either the Gulf or Atlantic coasts, that the canal be opened free to coastwise business. We had hoped that Mr. J. N. Teal, of Portland, Ore., who has given much time and attention to this matter, and who has appeared in its behalf before congressional committees and commercial bodies, would be able to address us on the subject; but in his absence I am asked to present this matter briefly, because it is hoped the National Lumber Manufacturers' Association will reaffirm its action of a year ago in ny o mfnen d in g the passage of a bill which will give this relief to our coastwise trade. Many measures are proposed. Some want high tolls on all ship- ping, some low tolls, some demand free ships, some demand a refund on tolls, either on coastwise trade or on all our shipping using the canal. One of our Board of Governors has tentatively suggested that the law might be amended so that our coast-to-ooast trade through the canal should not be deemed coastwise and, therefore, vessels of any flag could be admitted to it. The objection to most of these remedies is that while they might be more far-reaching and desirable in the long run, it will take too much time to overcome prejudice against them. They deal with long standing laws, or ancient customs, or deep-rooted prejiKlices, and canal tolls and regulations must be proclaimed within a year. To open the canal free to our coastwise trade will require the amendment of no law, will not involve the tariff difficulty, and if it can be done at all it can be done promptly. So far as it goes it will Report of the Manager 45 Without such assistance the development of untouched resources on the Pacific coast will go on more rapidly in British Columbia and Mexico than in our own territory. And the manufacturers of Europe, who compete with our own manufacturers, will have transportation advantages which in many cases will offset our import duties. Furthermore, this measure will tend to build up a merchant marine of the true deep sea character, for a voyage between the Pacific and Atlantic ports is a long one and requires vessels of stability. It is sometimes argued that so far as lumber is concerned it would be for ikt benefit of the Pacific lumbermen as against the manu- facturers in the East. In all probability the fir people will profit more from the canal than the yellow pine producers ; but eastern woods will also profit. But it should be remembered that we are short of vessels, that when the canal is open there will not be the tonnage available greatly to increase west coast shipments into the Gulf or Atlantic ports. The vessels must be built and that will take time. At first, I think, you of the East and South will iK)t fed the West Coast competition, for the above reason, and for the additional reason that the first movement will be of lumber and timber for special pur- poses, and which will not seriously affect the markets for eastern woods. And by the time the west coast has the ships to take advan- tage of the canal, and the manufacturers of the East have developed die full possibilities of a west-bound trade in lumber through the canal, it will be wondered why there should have been any hesitancy in the matter. Just at present, however, those lumber manufacturing sections which hope to be especially benefited by the Panama Canal appeal to you to assist in what seems to them the only immediate solution of the toll problem. There is still a broader view. The devdopment of our country which should follow the opening of this great world waterway should so increase population, so develop its latent resources, so enlarge its manufactures and commerce, that the increased demand for lumber will take care of any surpluses now existing, or which are feared. INSUKANCB OF STANKNG TIMBER Some attention has been given to the possibility, at least in special cases, of insuring standing stumpage against loss by fire. Since standing timber has come to be the basis of bond issues it 46 National Lumber Manufactuioas' Association would seem that insurance protection to such securities might properly be offered and that the time will come when any timberman could Instire Us holdings against fire loss as now the saw mill is protected. Im this connecticm we asked Mr. James D. LacQr, whom yon all realize as an authority on timber land matters, to prepare a paper on this subject. He found it impossible with his other engagements to give it the necessary attention, but I will quote from a letter received from him. "I gave this matter considerable attention two or three years ago and discussed the feasibility of it with several insurance companies, but could get no expression from tten other than that it would be almost impossible to insure timber lands, owing to the difficulty, par- ticularly, of taking care of the fire hazard. Since that time, however, a great deal has been done in the West in the way of organizing forest fire protective associations, both by the Government, the State and by individuals, and it might not be as difficult today to interest insur- ance capital as it was a few years ago in an enterprise oC this kind. I still believe, however, that it is going to take some time yet to bring about the necessary education to establish timber insurance on a basis that would warrant the large timber owners in insuring their lands. The one instance in which it worked was through the English Lloyds, by Price Brothers & Co., Ltd., of Quebec, who insured a certain portion of their standing timber for the further protection of a five million bond issne. This is tht first instance I know of mhtrt insurance was taken lor soch a purpose, and it is but another indication of the upward movement toward eventually establishing suitable rates of insurance for standing timber." CORRESPONDENCE WITH THE PRESIDENT One of the most interesting features of the work of the year has been the effort to obtain from the National Department of Commerce and Labor a report on its investigation of the lumber business. Appeals for publicity, which would put the lumber manufacturing industry in its proper light before the people, had been unavailing; but it was decided to make one more. Therefore a letter to the Presi- dent of the United States was prepared, submitted to the Board of Governors for their approval, and, as finally revised, was mailed to the President on December 14 last. Re^KXise was made by the Presi- dent on February 2, 1912, in the ihape of an antografA tetter, enclosing Report of the Manager 47 copy of statement made to him by Secretary Nagel. To this state- ment of Secretary Nagel the Manager, with the approval of President Griggs, replied. You are ^miliar with the correspcxkience up to this point, as a copy of it was sent to eadi member of the affiliated associations. After President Taft had given permission to make it public it was sent out by the Associated Press with a news summary, which summary was used by many of the daily papers in different parts of the country. About one thousand copies of the summary and cor- respondence were thus distributed. The United Press also sent out a briefer summary. This method of handling and the release date were suggested by the Associated Press. The correspondence was rdcased for the afternoon papers of April 5, and many morning papers of the succeeding day did not use them; but we have nevertheless received widespread publicity. Newspapermen particularly appreciated the fact that here is a great industry accused of being trust controlled, which not pies of the correspondence were sent to members of Congress and to many other public men. Lumbermen visiting Washington since its publication report that there is a somewhat different atmosphere there regarding the lumber business, and a disposition to credit the lumber maimfactarers with taking the proper attitude toward the public On publication of this matter the United Press had a brief inter- view with Commissioner Herbert Knox Smith, of the Bureau of Corporations, reported in the following dispatch : "Wart tf a g toi^ D. O., April 5. — Complete ignonuice of a combine to con- trol tlM lumber manufacturing industry is exprMMd hme today by Herbert Knox Smith, Oommissloner of CorporationB, in reply to the demand of tbe National Lumber Manufacturers' Association to publish the result of his investigation of the alleged lumber trust. Smith said: 'As far as we have been able to ascertain, no group of individuals control, dominate or influence to any great extent the lumber manufacturing industry. However, there are a few iadividiiAls who, to a certain extent^ appear to control the standing timber.' " This is, so far as I know, the first plain and unequivocal state- ment as to what was discovered or not discovered by the five-year kmg investigation of ^ lumber business, so far as related to the Hnabtr manu^ictarers. It jm gnren, so ^ at I can dteover, mdt 48 National I^umbbr Manufacturers' Assocx^tion circulation, but its brevity obscured it, and it did not reach the clients of the Associated Press. This pttbUc statemoit of Commissioaer Smith, confirming what he has said privately to lumbermen, should have all the publicity that can be given it. The letter of March i to the President in answer to Secretary Nagers letter was not the end of the correspondence. March 22 the President transmitted another letter from Secretary Nagel, in which the Secretary still mamtains that the report on standii^ tunber had immediate relevance to the question of Trusts in the manufacture and marketing of lumber. Also he states we were mistaken in assuming that the Steel investigation was begun and completed before the lumber investigation was authorized by Congress. And the Secretary further insisted on his point that a verdict can be rendered only by the courts and not by his department. The whole correspondence was carried on with scrupulous regard to the courtesy due the Administration, and while we differ with the authorities at Washington on many points, we feel that there is a better understanding on both sides; that the lumber industry stands better with the administration today than last year. And Commis- ^oaet Smith's frank statement that nothing mvolving the manufac- turer of lumber m methods objectionable to the law had been discovered is appreciated. One development of this correspondence may be noted: On Fetmuury a, Secretary Nagel stated that the investigation was not finished, notwithstanding that two years ago Commissioner Smith stated he hoped to be able to make his report in thirty to sixty days. Since our correspondence with the President one of our affiliated asso- ciations has been examined by the Bureau of Corporations, and per^ haps we must wait for a final report until the books and records of all our affiUated associatkms and of die National itself have been scrutinized. Coincident is an investigation being made by the Department of Justice, though now suspended because of suits against organizations of dealers, resulting from investigations made last year. The gentle- man in charge of the lumber cases in the Department of Justice has assured me that there will be no unnecessary delay in carrying on his work, and that rmiHs will be obtained and announced just as rapidly as the small force at his command will permit The promptness shown Report of the Manager 49 by the Department of Justice is to be commended, and I believe that the results will be in the line of justice. WORLD TODAY AITICLB When the Cosmop(4itan Magazine, last November, announced it was to pMUish a series of articles by Charles £. Russdl, now proposed Socialist candidate for the Presidency of the United States, demon- strating the fiendish character of the Lumber Trust, considerable interest was aroused in what this gentleman would have to say. Your Manager promptly took the matter up with the Cosmopolitan and was told that the series would not after all be published by that magazine, but would appear in the World Today, a magazine of die same ownerdup, which is now known as the Hearst Magazine. I suggested that I would like to contribute an article to be pub- lished in the same issue with the first of Mr. Russell's series, or else to have the privilege of answering it after it was finished. I was invited to submit such an article, and did so, but it was returned as unavailable. The reasons probably were two: In the first place, the article was too tong; and in the second place, it would have pretty neariy killed die effecdveness of Mr. Russclfs ardd^ had it been pul^ished at the same time his began, for it told the facts of the lumber business, which facts were substantiated by government reports and statistics, so far as they were available. Probably all of you have seen the Russell series, which proclaims the existence of a trust which is not a trust, and die use of ill^;al and uneoooomic methods adopted by men who bdieve they are r^;fat aiid wiUing to go to jail lor their eonvktions. The series was so full of misstatements, half truths and slander, and yet so unsubstantial, that in the minds of intelligent readers it carried with it its own antidote. The general opinion of lumbermen with whom I have talked, as well as of officers of the National association, is that it is unworthy of atten- tioo. However, some of our friends are seddi^ ways and means to answer Mr. Russdl « . ... SAK FRANOSOO BXF08ITION The great exposition of 1915 at San Francisco, which promises to exceed in cost and attractiveness any one previously held, oStn a great opportmiity for an advertising dii^y ef American hmibcr resoufces and products. It will give a diance (o demonstrate to die 50 National Lumber MANUFAcnmns' Association people of this country the utflity of wood and it seems to many that it is an advertising of^xntmiity that should not be n^kcted. While this exposition is three years ahead it is not too soon to b^ prqpa- rations for it. A tentative proposition has been made on the Pacific coast to uiis effect : That each of five western lumber states should have a build- ing showing its particular products in the most attractive way. Build- ings in the bungalow style have been suggested, built and furnished in native woods. Another suggestion, which seems to meet with favor on the Padfic coast, surrenders their particular advantage in favor of a national exhibit under the leadership of the National Lumber Manufacturers' Association. Two plans have been suggested. One is that a large building should be erected to contain a central meeting room, parlors and other conveniences, and also a room or suite of rooms for each affiliated association in which could be dispUyed thcur particular products. Another is for a central building, not necessarily very large, to be erected by the National association, around which should be arranged analler buildings representing eadi affiliated association. Thus there would be yellow pine, cypress. North Carolina pmc, the northern hard- wood, southern hardwood, white pine, western pine, fir, sugar phie and redwood buildings, etc. It is also suggested that perhaps the exhibit of the National asso- datioa could be coordinated with or handled in cooperation with that of ^ National Forest Service. If either of these plans is selected, the Naticmal assodation itself might prepare an exhibit along the lines of its advertising work, in which it would promote the use of wood as against unworthy substi- tutes. A series of photographs could show the merits of the wooden railway car as against the steel car, and the advertising department of National aModation could prepare positive exhibits in many lines, as in building constructbn, packages, etc, which woukl make a pro- found impression upon visitors. Then to the different associations could be left the exploitation of their particular woods. Whatever is to be done along this line should be set on foot, per- fif |i« auliiority bang given to the advertising conmiittee to handle it or some special committee being appwnted to cooperate with the advertising committee. RiroiT OP THE Managsk 51 Judging from the cost of such thmgs in the past, it would perhaps not be an unsafe estimate that $50,000 would cover the cost of the central exhibit building made of wood. Then eadi affiliated association could devote what money it wishes to an exhibit of its particular lines. It has been proposed with approval that there should be organized a Forest Products £jqx>sitk>n abi^ the line of other industry shows which have been very successfully promoted and have been of grei^ advertising value. Notable among such expositions have been the Cement, Automobile, Farm Products and Live Stock Shows. Someone has raised the objection, "What can we show? Every- body knows what lumber is.'' On the contrary, no cement or brick show could be so varied in its attractions, so appeal to hereditary instinct and the k>ve of the beautiful as a Forest Products Show. If it were decided to go into such an enterprise it would be the means of gathering experience and material for the International Exposition at San Francisco in 1915, and if successful might accumulate a fund which would install and carry through that which must necessarily be a free show. Doubtless you have all seen statements of what such a show should consist It should be both educatkmal and entertahung. It should attract visitors by its uniqueness and beauty and when their attention is fixed should educate them to appreciation of the value of wood. It should promote the consumption of wood as cement shows have promoted the consumption of cement. In such an expositkm every one of our associations could find a place for whatever would draw the attentbn of the public to its own products. Numerous ideas are suggested to draw the crowds. A miniature logging plant might be in constant operation, with skidders, donkey engine, log loaders and all the paraphernalia that in any part of the country finds place in the business. Moving pictures could show the actual work. There could be model saw and planing mills. Not only lumber manufacture could be displayed, but veneer, cooper- age, sash and doors, flooring aiKl the ornamental uses of wood could be shown. Appropriate decoratbn would make such an exposition notably attractive. Three or four such shows could be held each winter season until the San Francisco Exposition ; ten or twelve in all, running ten days or two weeks in such cities as Chicago, Pittsburgh, New York, Kansas City and Los Angeles, central points and where we wish to push our advocacy of wood. The financial end of such a matter will not be overlooked by any 52 National Lumber Manufacturers' Association of you. Money is necessary, but not so much as you would dunk. Probably none of the shows of the sort in mind have required th« raising of as much as $20,000 in cold cash. Properly backed, credit has fumidied the money and the pr<^ts have taken care of the iiKiMtedness. It should not be merely a money-making affair, f uU of catch-penny devices, but should be, while an attnMrtive show, educa- tional and of large advertising value to the lumber industry. In a general way, what seems necessary, if such a thing is to be successfully and satisfactorily promoted, is for the lumbermen them- selves to back such a show financially and put in charge of it experi- eoccd men who will be given sufficient money inducement to handle it to tiie best of their abiUty , and then hokl over diem those famed powers of the initiative, referendum and recall. At the request of the Chair, Secretary George K. Smidi, of St Louis, Mo., read his report. Rqport of Secr^ary MEMBERSHIP The membership at the end of the fiscal year, March 31, 1912, consists of twelve associations, with members and yearly production as f oUows : — Delegoites — Ananiiiatioii. No. Memh&rB Production 44 620,000,000 9 8 51 655,243,726 8 6 230 630,000,000 9 9 Michigan Hardwood Mfrs'. Ass'n... 64 304,239,712 6 6 Northern Hemlock & Hdw. Mfn'. 83 600,000,000 8 40 1,404,251,674 17 17 245 4,068,098,015 48 43 78 778,085,876 10 10 139 2,139,572,000 84 18 Pacific Coast Sugar & W. P. Aw 'a... 14 167,500,000 4 1 76 322,042,456 No report. 6 6 20 1,070 U,58»,008y4l» 146 182 Since June i, 191 1, there has been issued monthly a report entitled "Production and Movement of Lumber." It contains reports from apfmxknately seven hundred sawmitts, located in twenty-two sUtes. Report of the Seckbtary 53 Snmmaij of Ott and EHiipments— Pvodoetion Below Nomial— to Tea M<»^M|, JvM, 19H, to Mtieh, 1912, iaefaHdve. Cut More No, Mills Months, Bptg. June, 1911 4Sl Jaiy 408 August 545 September 567 October 085 NoTember 673 December 648 January, 1912 617 February 671 Matek 879 Cut, 618,500,000 539,100,000 796,100,000 781,500,000 910,800,000 782,500,000 625,400,000 605,400,000 778,300,000 888^,000 Shipments, 549,500,000 499,600,000 769,100,000 786,200,000 936,300,000 891,300,000 740,500,000 738,300,000 847,500,000 953,700,000 than Shipped, 64,000,000 39,500,000 27,000,000 CutLes$ than Skipped, 4,700,000 25,500,090 108,800,000 115,100,000 132,900,000 69,200,000 180,300,000 Totals 5,914 7,256,000,000 7,712,000,000 130,500,000 586,500,000 Excess shipments over cut 456,000,000 feet, or 6.28 per cent. Production Below Bated Capacity of the 881 MiDs Beporting Cut and Shipments. Feet, Tmnb, 1911 276,163,000 July 286,402,500 August 404,596,000 September 345,457,500 October 587,856,000 888,547,000 •Total equals S9JK per Feet, December 696,700,000 January, 1912 712,057,000 February 500,047,000 March 514,247,500 Total Hjmfif4jm Only one-third of the mills on our mailing list have reported their cut and shipments. If this statistical work is ccHitinued it shocdd be; supported by every manufacturer who is reque^ied to send in his monthly report. An interesting comparison of stocks on hand at the same 6o8 mills at three different periods has also been compiled and is submitted herewith. COMPARISON OP STOCKS ON HAND JiO^ 1, 1911, Jmmary and AprU 1, 1912, No. Bated Yearly Stock on hand MUls DaUy Normal Feet in Millions A Tenths. Mptg. Capacity, Production, July 1, Jan. 1, April 1, Ft.inM, Based on 1911, 191g, 1912, iFStSDays, Alabama 39 2,390 657.3 69.9 63.9 65.1 Arkansas 49 3,853 1,059.6 246.5 239.6 228.3 California 11 841 2313 78.6 96.8 87.3 Georgia-Florida 88 1,565 480.4 88.0 57.0 58.4 Idaho 16 2,575 708.1 360.9 445.4 362.3 Indiana 4 54 14.9 6.6 7.7 8.2 Kentucky 2 110 30.3 21.5 18.5 16.0 Loaiuana 103 8,880 2,717.0 78L0 873.2 854.8 Hidden 87 8,888 884.0 808^ 288.1 828.8 54 National Lumber Manufacturbss' Association No, Bated Yearly Stock on hand MiUa Daily Normal Feet tn Mmom f Tenthi. Mptg, Capacity, Productiom, Jviy 1, Jan. 1, AprUl, Ft, M. Based on 1911. 191S. IBIM. £75 Days. Miimesota 21 4,830 1,328.1 498.6 l»1.5 478.8 Mi88i88ippi 49 3,775 1,038.1 161.9 149.6 139.8 Missouri Oktekom 10 590 162.3 54.5 49.5 47.8 Montana 4 650 178.8 111.4 122.8 113.0 North Carolina 9 583 160.3 29.4 2«.7 S8.6 (Mo 1 100 27.5 12.4 14.0 10.3 Oregon 24 2,788 766.7 171.6 198U5 183.5 South Carolina 8 655 180.1 37.0 81.2 29.6 Tennessee 6 165 45.4 M 6.4 5.7 Tens 4» 8,770 1,086.8 22105 212U5 174.9 Virginia 8 730 200.7 25.7 23.8 18.8 Washington 77 8,215 2,259.0 509.5 537.4 494.1 Wiaconsin 58 5,067 1,393.4 716.0 685.8 636.4 TMk *m 15,450.1 4^406.5 ^JUM 4A8&6 Net increase in stock Jan. 1, 1912, as compared with July 1, 1211 fT: 42,400,000 ft or J% Net decrease In slo^ AprU 1, 1912, as eompued with Jnlj 1, 1911 300,000,000 ft. or 6.8% Net decrease in stock April 1, 1912, as compared with Jan. 1, 1212 350,400,000 ft or 7.7% Stock on hand July 1, 1911 29.1% of yearly normal production Stock on hand Jan. 1, 1912 29.4% of yearly normal production Stock on hand April 1, 1912 27.1% of yearly normal production MiU average, July 1, 1911 7,395,559 ft. MiU mTsnge, Jan. 1, 1912 7,465,296 ft. Mill ftipern^ AfiU 1, 1912 6,83M^f^ The Manager handles the other departments of this association, and tl^ work dcme through them is covered in his report President Griggs: The Treasurer's report will be made later. We will now have some announcements by the Secretary, and also of c ott ve n t i on committees appointed. Secretary Smith : We have a telegram here, the announcement of which I know will cause sorrow to all of us here who have been attending these meetings for a good many years. It is as follows: "Eau Oaire, Wis., May 6, igia. George K. Smith, Secretary N. L. M. A., St. Louis, Ma— My undc, Eugene Shaw, died diis morning. Funeral Thursday. George B. Shaw.'* We all remember genial and pleasant Eugene Shaw. This will be referred to the Committee on Resolutions to draft an appropriate tribu^ Memorial Resolution 55 President Griggs: Does the convention desire to take up those resolutions now in regard to Mr. Shaw? It might be well while we have the delegates present to read them. By unanimous consent Secretary Smith read the resolution, which, upon motion, was adc^ed by a rising and unanimous vote, as follows : Resolutions on the Death of Eugene Shaw WHintliAH Infans 8kaw, of Baa datnf, mk, a tmilMnuui, a man wtlh ths ymwmtA grac« of Um plmt Itm and kindUnMHi of qdrit as enduring as fho heart of an oA, kas 1mm called m Hw 1I90 prfao of Ufa to lay down Us oaiUdy toardma; and mOBUUkB, W)t teTo long knom and wojietod kiai; IBiOfLTBD, Tkat tlM HatiOBal Jm/LXm afaanfadaiM* dwoftaMon, la confoaUon ■■wMod at OiiieiBBati, wfeOe liowlng la peraonal anovw, do onlEO tMr Sist aeliOB at tiris mootiBC a iMactf tit trflw ito aa mncli as words eaa tiM Iff o and works of. our eeanado* wImoo body Has doad la Us BESOLVBD, Tkat wblle wo SMiim tiM loai of tlio wliolesonio friendlinesB of Eugene Shaw, we are glad to express our esteem of Us Uf o> to Ids family sad Mands, by a rising voto, wkick Shall rooord oar hoUof la konor, and auidiood, saOh ss waa kli^ sad oar belief tihst have over one tiiousand acres of tmiber. Now if that idea is going to prevail, it is against the idea and principte of conservation. CUTOVER LANDS VALUED TOO LOW If we are going to grow trees again our cutover lands are worth a great deal more than we are getting for them. We are offering them for from $4 to $5 an acre. If the principle of conservation is going to be put into effect those lands are worth today from $10 to $15 an acre for the timber standing on them after we have removed die merdumtable lumber trees, two to SIX inches m diameter. A number of them Stand on every acre of our land which it would cost $15 an acre to grow, and we are selling that land at from $3 to $5 an acre. If the principle of forestry is true that land is worth from $10 to $15 an acre because it would cost that to grow trees of the size and age that are left after we have removed our standing timber, we are forced to be inomsistent. We are in favor of conservation, yet we are <^fer- ing these lands at one-third of what tfiey are wchUi for conservation purposes. It seems to me that we have got to obtain for our lumber what it costs to grow it; and if land is worth $15 an acre to grow trees on, if the stand that is always on there would cost $15 an acre to grow it, it ought to be worth it instead of what we are selling it for, believing it to be all we can get I only mention these thou^^ because I thmk ig tiie puMic upon this diere ought to be a united effort toward edi question. There was a committee appointed, of which Mr. Bigelow was chairman, to offer some resolutions here today. I have asked that such resolutions be prepared, and Mr. Bigebw has approved of them, as dhairman of the co mmit t e e. I will now read the resohitkms and ask Report of Conservation Committee 59 you to vote upon them, as Mr. Bigelow has requested me so to do. Although it would properly come to him, he has referred it to the Gmservation Committee, of which I am chairman. The resolutions are as follows: Resolution of Committee on Conservation WHEBEAS, The Agricultural Appropriation bill, now under considera- tion, as originally introduced, provided a contingent fund of one million dollars to be used only in fightina fix^ on tlie National forests, if found necessary; and WHEREAS, The House of Representatives cut this item to two hundred and fifty thousand dollars, an amount entirely too small for safety; and WHEREAS, The Committee on Agriculture and Forestry of the Senate his rq^rted in favor of appropriating the mm originaUy adnd for; BBSO^VED, That tins HaHonal XabImk KiiiafaetaEtn' Awociatlwi •Mam. Hi belief, based apon long experience, tksk the warn of one mflUon Miasm to be avaOable yeazly for fire prtreatloa when necenary, te the aaomtt that ooald with ssfoty be pmvfdod to pcotect one hudiod aad BiBoty mflUoa aereo of Hatloiial fmstai tnm fire; and XBBOLVED. That this aMOciatta ■■■niiiiiiHnff the tfeM Ismsl auum- fuflmaag iBiBstKy In the Hiatted Btatei^ aaA whose xmw matiifil is fto ftti i it^ aahs li»t Congress do not f afl to viovido the fund absolutely neces- sary to piot s fll tho If attasl f onsl^ tto jtopmlf of aU tho jeepli; aad bo 11 further RESOLVED, That copies of this reeolottoi bo at oaeo sent to all Senators and liinibiKS of OongriBi. Your committee offers this resolution and moves its adoption. I thank you. [Appkuse.] The motion carried, the resolutions heing adopted as read. PBBsmsNT GaiGCs: Nesct in order is the report of tiie Committee on Workmen's Compensation, of which Mr. Paul E. Page, of Buckley, Wash., is chairman. In the absence of Mr. Page, Secretary Smith will read the report. Rspon of Workmen's Conq>eii8atioii Conmiitlee BY PAUL B. PAGB^ OF BUCKLEY, WASH. As a report f fom the Workmen's Cooqieiisatioa Gwunittee I here- with teller an explanation of the Washii^on Compensation Act I have gone into considerable detail in order that our members might understand the act thoroughly. In view of the fact that various states have appointed commis- nons to consider the problem of compensation for industrial accidents ated that these commissions have worked Icnr months and efcn jtars to ac c * i m i>l wh anytliiiig, it seems futile for onr assodatkm to expect ^ its Workmen's Compensation Committee, scattered as it is with thou- sands of miles separating its members, could accomplish much. As a matter of fact, it has been impossible to accomplish anything as a committee. In lieu of a conunittee report I am presenting my endorse- ment of the Washington Compensation Act, with the earnest hope that our memb er s wiD not oi^ comider it, but endorse it and r eco mm end it to tfie I^fisbture of every state in Hit Unkm. Up to the passage of its Compensation Act, the State of Washing- ton was pest-ridden with the employers' liability insurance companies and the ambulance-chasing attorney. Large sums of money were paid to the employers' liability companies for insurance against indus- trial accidents, which, in many cases, proved inadequate. Only about 40 per caA of the amount of judgments rendered m cases brought for personal damages ever fcaciied the injured workman or his dependents, and only about 10 per cent of tiiose who were injured ever received anything at all. The ambulance-chasing attorney had reached a point where he did not hesitate to introduce perjured testimony to win his case. He had become so brasen that he did not care whether the attorney lor tte defense knew sudb testimony to be perjured. He introduced his perjured testimony when he laaew tiie judge on the bench must know it was perjured. Such a condition was demoralizing to the people, and especially to the young people of our state. There was a feeling of graft among 60 Rmsr OF WcAXMBN's COMPSNSATIXMf Com IflTTBB 61 our people. Verdids for unreasonable sums were returned in cases where there should have been no judgment, and verdicts rettuned for no judgment in cases where there should have been a substantial ver- dict for damages. Every industry was menaced with the verdict of some hysterical jury, and the fellow who got hurt saw large sums of money being spent in litigation in personal damage cases and he got little or nothing lo reimburse him for his injury. FBBUMINAKY STBfS TO SBCUBE raOTOR LEGISLATIOM In January, 1910, at its annual meeting, the Pacific Coast Lumber Manufacturers' Association passed a resolution deploring the con- ditions which existed through lack of adequate laws governing indus- trial accidents, condemning the methods of the employers' liability companies and asl^ig that representatives of capital and labor get tog^her and dense some method by wfakh an injured mploytt coukl receive ^ benefit of ^ large sums of mcmey wfa^ were beii^ wasted in litigation. This action of the lumbermen of our state attracted much attention and the resolution was printed and commented on by every newspaper in the state. A mass meeting was held in Tacoma in June of that year, at which Governor Hay presided, consisting of men who represented not cxdy the en^oyer and employee, but professwaal and bnsmess men as well This meeting resulted in our governor appointing a commission to draft a biU on woikmca's c ompcnsalb tt to present to the next legislature. This commission was composed of five employers of labor, three lumbermen, a logger and a coal mine operator, and five representatives of labcM* unions, two coal miners, a carpenter, a printer and a loco- motive engmeer. Tiie first meeting of this commission was hdd in Taooma on Sep- tember 29, and at ^t meeting we decided tiiat none of us were tliere to drive a hard bargain for the interest we represented, but to work as a unit to accomplish some good for all interests. So well was this decision carried out that during all of the many meetings held by the comn^ission it would have been impossible for an outsider in listening to our deliberatkms to have toM wkush meaabm of the commission rq>resented labor and wliidi capital. We had two attorneys to aid us in the work, one a reformed ambulance-chaser of the worst type and the other one of our state's most able men. 60 National Lumw MANUPAcrums' Association The former had at his command a repertoire of legal twists and toms which was hewildering and volumitiotis and which fMxyved of great s^rice to tiie commission. The latter gave to the commission the results of his long study of the problem which we were attempting to solve. There were no experts on this commission and we took up the work as business men of this country always have and will when they have a proUem and emergency to meet. The act as drawn hy the commission was passed by the legislature after the "first aid" feature was dhninated, and became effective on October i, 1911. ACT UPHELD BY WASHINGTON SUPREME COURT We have in the governor of our state a man with honesty and backbone enough to appoint an industrial commission to administer our compensation act without playing pohtics, and as a result we have a c o mm i ssion of hard-headed business men who believe m tiie act and wlio are givmg thehr best efforts to make it a success. Durii^ ^ smnmer of 191 1 a friendly suit was brought to test the legal standing of the act and our supreme court pronounced it constitutional and the law of the state. This decision of our supreme court has been criticised as a senti- mental decision. This we deny most emphatically and firmly believe that the United States supreme court will decide oar act to be oonsti- tittioiiaL But if the supreme court of our state is usmg the senthnent of humanity instead of the dollar senthnent in its decisions, I believe we have reason to be proud of our court. The Washington Compensation Act is compulsory for hazardous employments and elective for others, and has the state insurance fea- ture. The state pajrs all the expense of administering the act through ttiippropriaticm. Industry takes care of its huhistrial accidents. State insurance benefits are covered, which are sustained in the course of employment, unless due to deliberate intention of injured worker. PROVISIONS OF THE ACT An injury caused to an empbyee while in the course of his emptoy- muA by a dikd party is covered, providmg employee so elects. If he diooses to take actkm against sudi third party he can do so, and in Rbfobt of Workmbn's Compensation Committee «3 case he elects to take the state compensation he assigns his action against the third party to the state. Voluntary plans of empkyyers to care for hoqntal and first aid to injured employees is permissible. If die employer default in the payment of his premiums, injured v.'orkman may maintain action for damages, and defenses of fellow servant rule and assumption of risks are abrogated. Payments for death are as follows : Payment of $20 per month to a widow until death or remarriage. A dower of $240 in case of remarriage, but no further payments. The sum of $5 for each chiki onder tbt age of 16, per montii, until the age of 16 is arrived at, bnt not more than $15 for any one family of children having a widowed mother or father. Orphan children, $10 per month to the amount of $35 P^r month until 16 years of age. For partial dependents, not to exceed $20 per month. For all death claims the sum of $4,000 is taken from the general fund, invested at interest to procure funds wiA which to meet the monthly payments. For total disabihty : If unmuried, $ao per mondi. If married, from $25 to $35, according to family. For total disability not perma* nent, benefits are increased first six months 50 per cent, providing this sum does not exceed 60 per cent of regular wage. Monthly payments in all cases may be converted in lump sum payments either in whole or in part. In cases where the injury causes a disabihty which is not total or permanent, such injury is paid for in lump sum and the maximum amount is $1,500. £nq>byer is held responsible in case accidents are caused by n^- lect to comply with safety laws, and must reimburse the insurance fund for half the benefits paid in each case. ADMINISTRATION OF THE LAW The act is administered by the Industrial Insurance Depa r t me nt, which dq>artment consists of Uiree salaried commissions. The decisions of tins department are subject to review in any superior court, but its decisions are reversible only on three grounds : i. That it acted without or in excess of its powers ; 2. That an award was procured by fraud; 3. That the findings of fact by the department do not support the award. The intent of the act, as set forth in Section 4, is that tiK fmd created by assesnqg the uidustries shall uUhnately become neither more nor less than self-supporting. 64 Hatwhal LuMMft Manufactuibs' AfliOCiAanoir In ftrrMif at a metiis lor niakiiig sudi assesments the oooMiitt- MOD wydi drtfM tlie act was confronted by its most difiicoH pttMan. We had no data to refer to, with the exception of that from the coal mines, and this we found inadequate to apply to other large industries. We at last grouped each industry in a class which was shown by the emptoyers' liability insurance omipanies' ration mannals U> take the same rate of prenutun. To each of audi groups we ga?e a ratbig wfaidi we b^eved woidd be ample to supply funds widi wluch lo meet the ben e fits that would be paid by that particular group for the acci- dents happening in that group. Industries that were shown by the insurance manuals to take the same rating, although they might be entirely different from one another, were placed in the same group. Each sudi gtoop pays for its own aoddents only, and for none oHier. Toi^iatrate: An accident in a ooal mme is paid by ooal mine praoium^only, wlnle an accident in a blast furnace would be paid for from a fund secured by the premiums paid by some twenty-seven industries which were found to be of equal hazard with a blast furnace hazard and were grouped together. There are forty-seven of the groups or classes, covering every industry in our state. In additton, there is the nott-haiardous gioi^, which is elective. IHbe pnmiums barged eadb group vary from ijj^ per cent Id lo per cent, and the levy is made on tite jrearly payroll of eadi industry in iht group. OPERATION OF TH£ LAW Inasmuch as the intent of the act is to secure only such funds as are necessaiy to meet the benefits, assesanents are made only as needed. ToiUustrate: Theact wentintoe£FectonOctx>ber i, I9ii,andatt]iat time an as s e ss men t was made, based on tiie payroll for the months of July, August mi September of that year. In every group where the funds were more than enough to pay the benefits for three months no further assessments will be made until it is found that the fund of that group is about to become depleted, when another assessment will be made on that groi^ only and for a sum based on the total amount of payroll of that group for the last Am monUis. By this provisioii &i ^ act eadi group pays only what the benefits paid require. One group might be required to pay its full premium on the entire year's payroll, while another group might not be required to pay on more than three months' payroll. If no accidents happen there is nothing to pay, and I cannot conceive of anything that would act as more of an Enrasr cnr Wcmuocbn^s Comfbnsation Comicittsb ^ incsntift to enqpleyers to protect their machinery and use their best efforts to pmcnt a cci denti than this promion of tlK act The premium rates demanded by iSa€ act look high, bol as a matter of fact they have little to do with the actual cost to the industries, as they are used only as a basis with which to levy the premium to be paid for the first three months. The actual cost is governed solely by tte nuodber and kind of accidents. Up to Ae present tone eveiy man, woman and child in our stale who has been in any way injured as tiie result of an industrial aoddcnt since October i, 191 1, has been paid a reasonable stnn for soch injury. Every widow has been made independent, and every little child deprived of a breadwinner has been given the chance of playing out its baby years instead of becoming a public charge or forced into daily labor. Every injured workman has known Aat his dear ones woukl be proirided for k case Ins injury was fatal. AH this has been done without cost to the employee. There has been no litigation, no perjured testimony, no court costs, and none of the ill feeling between the employers and employees which personal accidents caused in the past. Is this not enough to have accomplished by a compensation act, regardless of its cost? Are we not entitled to bdieve that we have solved tiie problems of workmen's c ompen sa tio n? OO6T TO THB BMPLOYER However, diere is still another feature to be considered, whidi probably will appeal to the business world stronger than do the humane features of the act, and that is the cost to the employer. The lumber industry in our state is in a class which requires the payment of a premium of 2}i per cent on the yearly payroU. In the lumber class die assessment for the first three mootiis after tbt act went mto effect amounted to $i67j000. Up to .^»ril 15, 191a, Acre had been paid out of this fund $60,000 for accidents settled for and $45,000 was taken from the fund and invested to take care of seven- teen fatal accidents. At that time (April 15) there were twelve fatal accidents unsettled for. If these twelve fatal accidents call for the same amount of benefits as the seventeen which were settled for required, it would make a total paid out and to be paid of $135,000^ iR^iidi r e presents the sum required to pay the benefits m tiie lumber dass group for six and one-half mootiis— that is, from October I, 191 1, to April 15, 1912. 66 Natiokal LuMBut Manufactuubs' Association Dtiriiig these six and one-half months the workmen in our indus- txf work in our mills by artifidal light Icht several hours of each work- ing day. Onr mills are open and cold and the natnre ol the business is such that our men are required at times to work very fast and at other times there will be nothing to do for several minutes. This requires the men to dress in heavy clothing to keep warm during their idle moments. It is reasonable to suppose that a workman working under artificial lig^t, with heavy clothing, one moment in a perspira- tk» timiugfa great effort and the next dulled by lack of effort, is more fiaUe to injury titan he would be if he were woiidng in dayli^^ and with light clothing. For these reasons I believe that the accidents in the lumber class for the six and one-half winter months were greater than they will av- erage for the other months of the year ; but, suppose they represent the average, then tiiie total oost to the lumber ckss wouki be some *S70^- 000 for the year. Using $167,000 as per cent of the lumber class payroll for three months makes a total payroll for the lumber industry of $27,000,- 000 fcMT the year. In order to raise $270,000 by taxing $27,000,000 it requires I per oe^ and that is exactly what the cost to the lumber industry figures up to die time of die dosmg of the Industrial Com- misskm^ hooks on April 25, 1912. Under die old system the best rate that I could secure from the employers' liability insurance companies for insurance against accidents was 1.35 per cent on the payroll, and today the rate is 61 J^, per cent. Under the old system 50 per cent of die tkm of the courts was spent in hearing personal damage cases. Somediing like $3^000^000 was paid by the empbyers to die employers' liability companies in 1911 dirot^iout the United States. Nearly $10,000,000 in judgments was rendered in personal damage cases. In most of these cases the lawyer received one-half of the judgment, which left %SfiOOfiOO for the injured workmen. Tinder the Washington Compensatbn Act it costs die en^loyer considerably less than it did under the old system, and every injured employee is paid and every cent collected from any industry goes directly to the injured employee. Furthermore, the lumber industry makes the poorest showing of any group which comes under the act There are for^-seven grocqis w classes under the act, and nine of diese have not used any of theur fund, having had no accidents. Seven have used less than 3 per cent of dieir fund, twelve less dian Retobt op Workmen's C6mfensation CoMMrnBs 67 10 per cent, fourteen less than 15 per cent, and five have used more dum 16 per cent, which includes the Itnnber dass, wh^ has used some 63 per cent of its fund. We expect in the very near future to reduce the cost to the employer materially. Our Industrial Commission has started work on the problem of why there are so many industrial accidents and what causes them. They have interested the students of our state college in the problem and hope soon to have classes making a study of dits problem. They already see a new prof ^^ion for scMne of the yonag men aiKi women of our state, and that is the trained expert who under- stands the practical guarding of machinery and the prevention of many of the industrial accidents. As soon as we have such experts in the field we can expect a large percentage of decrease in accidents, which wiU be followed by a decrease in die amounts diarged the industries. I believe the WashingtcHi G)aq>en5ation Act sdves the pioUem of how to take care of industrial accidents, and I hope to see it on the statute books of every state in the Union. President Griggs: Gentlemen, you have heard the rqiort of Mr. Page's committee. Mr. Carrier, will you present the rtpon of the Railroad Committee Proposed Railroad Weighing Reiocneis BY a. M. CARRIER, OF SASDIS, MISS., AND A. T. GERRANS, OF HOUMA, LA. I would say that I am not on the Railroad Committee, but in attending the National Wholesalers' omvention at Louisville a reso- lution was passed there for the purpose of rectifying the weig^iii^ of cars by raikoads, and it was suggested that the National Wholesalers' association and the National Lumber Manufacturers* Association act together, in pursuance of which President Griggs appointed a com- mittee, consisting of Mr. Hines, Mr. Gerrans and myself, to confer with the committee from the National Wholesalers joindy on tiiis matter. We met in Chicago and there drew up a set of resolutions, most of the woik as representing our association being done by Mr. Ger- rans. This resolution will later be presented to the Interstate Com- merce Commission. Commissioner Prouty was holding court in the 68 National Lumber Manufactubbbs' Associatidn Federal building at Chicago at ^t time. We cxptcX, of ooone, to have a hearing upon this subject later. Mr. Gerrans has the resolution here, and as he has gone into this more fully than I have, I think it would be well to request Mr. Gerrans lo retd that resolution to this convention. It was gotten up jointly, as I lia¥t said, by the Natioiial Wholesalers and the National Lumber Maimfocttirers' Assodatioiit. I take tiiis opportunity of stating that m this we worked with the Natk)nal Wholesalers, and I think it a most excellent idea that we embrace every opportunity to do as Presi- dent Parker suggested this morning, namely, that the two associations work together. I think that in many cases their cooperation would restilt most beneficially. I would suggest, Mr. Presuknt, that you call on Mr. Gerrans to lead ^lote resolutxm as recommended by tiiat jmnt c onwHltle e. PrbsidbntGuggs: Gentlemen, do yon wii^ lhat resolutkm read at this time? Mr. Gerrans was recognized by unanimous consent and read the resolutions referred to, as follows : Stnlement of Joint Committee WHEBEAS, The railroads liave been unable to dorlss any aeeofals metbod for welgbing lumber and forest products, caiHiiic gMt imMk^ aaA loss to lumber Bbippers; and WHEBBA% Xhe vt9mkt nUam of tha HHiislaSi OonsMm OwI ss Im pMfiBi ttM adJattaMUt of damw for orvrduffgo on aeoooBl of vrigMik on Ms of iolteifltsk ^piHf MMMMBt of dncua on tfeo aOofled soolo iralgMi anMBtatf ssflM to bo oomella Ifto ataneo of aeMl tsrti oofndnf Hm ihlpMsal In f ss lton; aad maaaUJk HaloisHls OsanMseo noBiBits s hm has aipolBtad a feosc n« fir Um ynfoso of tafwMgatmi tto awtiv of lio moms siif i of mi0mg to ¥lf«oA by tio laflioads; aSMIiVSD, Sbat we suggest to tbe Commission that the carriers be leqalrod to diow on the bills of lading the gross, tare and net weights, less aUowance for stakes, dunnage, etc., if any, on each car, or furnish a weight certificate, and that in the absence of scale facilities at point of origin, that the carriers be required to weigh each car at the nearest scales and forth- with furnish the shipper a certificate showing the gross, tare and net weight of the shipment, less allowance for car stakes, dunnage, etc., if any. Should the consignor or consignee request another scaling, same shall be made at the next weighing point ahead of the car, and if a difference of over one thfTfTMftnd pounds be shown between the first weight and the certificate Raiuumd Weighing RErattics «9 Of said re-weight furnished the consignor or consignee, then the wei^ts authorized by the various lumber associations shall be recognized by tte oar- ilers in settlement of claims between the shipper and the carrier. And farther, that a joint committee consisting of railroad officials and laaAtr shippers shall within a reasonable time agree on a schedule of weights So bt osid between parties at interest, and that the present weights author- M ^ lumber associations shall govern in the interim. ^■IMWfBD, Sbit a omr rt It should be taken right up with the lUilroad Conuntttee as oq;aaiied for this association. Mr. Collar: I think this is most important and affects eveiy- body all over die United States. PiESiiMSNT Griggs : It should be taken up by your committee. We are pretty well on schedule time. We have two reports to hear before 12 :30. We are going to have this afternoon an address by Mr. Keith on one of the most important subjects that has ever come hdot€ your conventions. The convention will meet prompt at 2:30. We boys fran tiie saw mifls tiimk that an hour is amfde time to eat, and we want to get back promptly oa time in order to continue this very interesting pro- 79 NAtmiAL Luicm Manuf Acnmns' Assooatiok gram. As Mr. Bnaee, chairman af the Sti»dardkation Committee, is not hew, we wffl pass hit report for Ac present, and wiU listen to the report of the Classification Conumttee, Mr. M. B. Ndson, Kansas C3ly, Mo., chairman. Report of Committee on Qansificatioa BY M. B. NSLSON, OF KANSAS CITY, MO. Mr. President and Gentlemen: As the members of our committee are geographically scattered aU ow the United States we have not found it practicable to hold a joint meeting, and necessarify have had to carry on our consultations through correspondence. It has not heen possible for me to put my report before all the members of the com- mittee on account of their not being here. The report is as follows : The principal work of our committee has been devoted to assist- ing Mr. Charles E. Broirer, who a few years ago, at a meeting of the box manufacturers and different lumber associations, was elected Sec- retary of the National Qassification Committee. All of you, no doubt, are more or less familiar with the work that has been done by Mr. Brower in connection with this Classification busmess, but many, probably the same as ourselves, prior to the ap- pointment of this Committee and making investigation, have not under- stood the amount of energy Mr. Brower has expended toward defcnd- mg the mterest of the manufacturer of wooden boaces and wooden boat material. LVMBEBMBN IBAPING BENEFITS We have found that mudi of Mr. Brower's thae during the past three years has been devoted to this mterest, and there has been some $17,000 expended through his office in defending the wooden box interest, which has unquestionably been imposed upon by the substi- tutes in many ways. An audit has been made of the receipts and dis- bmements of Mr. Brower's Committee, and the Committee has revised tesme. But the detailed aoeount of ^^bmements were not in such a manner as to enable ^ Coonnsttee to determine as to the wisdom of all of the expenses incurred. But we figure the ImnbenBcn today are reaping the benefits of Mr. Browcr's efforts, for which no charge has b^ made. He gave his time in behalf of the steel nail Report on Box Classification 73 people, whom he represents. And he has gone ahead with the work of this Committee when they were without the necessary funds to cariy out and promote the interest of those his committee were en- dea¥i>rnig to serve, advancing out of bis own personal funds the neces- sary money to carry on the campa^g;n, and as a lesult there is a deficit of his Committee of $5,225, whk^ we figure should be paid. BOX MANUFACTURERS HAVE ABANDONED FIGHT Many of the manufacturers have held back from assisting in this work, fedmg it was a matter for the box manufacturers to look after. The box manufacturers have kmg ^nce given tsp the fight, largdy because of the lack of interest or support from die manufacturers of lumber. Many of the wooden box manufacturers have converted their factories into fiber board or substitute package factories ; and they take the position that this is the Imnbermen's fight and not that of the box factories. The box manufacturer is interested in manufacturing that whkh he can make and sdl to net him the greatest profit, and I am in- clined to agree wi& tiiem ^t it is up to ^ tamber manufacturer to see that the use of his product is not discrinnnated against You probably know the enormous amount of our low grade prod- uct, which we have the greatest trouble in disposing of, has been used in the past for box purposes. We have no exact figures, but dare say that dose to 10 per cent of the lumber production of the United States goes into boxes. And the decrease in the use of wooden boxes in the past few years, in our opmion, has as much or more to do wi^ t&e de- pressed condition of the lumber market than any other one cause. WOOD BOX MUST BE DEFENDED It is agreed by some that the passing of the wooden box is simply a matter of evdutkm, and we admit there is some merit in that con- tentkm; but unless those interested in the use of the wooden box stand up and defend their interest, we will be put out of busmess by the many substitutes which do not have the merit claimed for them, and. our interest will suffer a great deal more than need be. Those interested in promoting the interest of the substitutes have already oi^Mf"M-*t is received by the purchaser, iStut wholesaler figures tint he has two dianoes, first, tiie purchaser will take a grade tower ti»n tiiat repre- sented in making the sale, or the shipper will stand such a reduction on the shipment as will permit him to make an allowance to his cus- tomer equal to the difference in value between that which he has pur- chased and that sold. After going through cm- cootetting the difficukks mentioaed in die p ro du c t to n of lumber, the manulaetaier k not in any humor to parley with such methods. It vi^as to combat all of these that our associaticm was formed. FIELD OF THE DEALER This organization recognizes the field of the legitimate dealer in lumber. My remarks are not intended for him. It has been stated bmpm^ that our (nganiaattoo had lor its purpose die dimniation of the dealer from the trade. I want to say enqphatkally that there was no such intent, but it was and is the purpose of this association 8i Natioral LoiiMt Manufactuius' AflsooAnoK to ^ mediods of the class of wholesaler that I have men- tkMwd. It is true tliat the dealer and wholesaler have been classified as middle-nien and have placed upon tiieni the burden of carrying iSat kind of wholesalers mentioned. If they arc not content to carry sndi an element, they have the matter in their own hands and it is up to them to solve the problem. Often the manufacturer prefers to market his lumber through dealers and wholesalers but has been debarred horn doing so on account of losses sustained through methods men- tkmed. The niann&ctnfers insist that it is the dnty of the dealers and wholesalers to correct these abuses in tiie marketing of lumber and deal with the problems as they present themselves m handling lumber between the producer and the consumer, aside from inspection ; which the manufacturers feel is a problem to be settled between the consumers and themselves. It is admitted that frequently the manufacturer is in error in shipping stock below the grade provided for in the order, or poorly manufactured material This organizatkm does not coun- tenance such mediods, but is using every effort to have its membership properly manufacture and grade the product ELIICXNATION OF WASTEFUL METHODS IN MARKETING There was a day when timber was so plentiful and cheap as to permit wasteful methods in the marketing of lumber, but with the hitler {Mioes id stun^age m this day it is not only unpracticable but utqjHrofitabie. Sudi metliods make it impossiUe for the consumer to successfully combat wood rabstitutkm, which we are contending widL To my mind the unbusinesslike methods in the marketing of lumber have done more to permit the substitution for wood than any other causes. It is just as wasteful and as foolish to require a board to be dear on both sides when one face is shown, as it is to insist that wall paper be as elaborately finished on the reverse side as on the face. It is foife as wasteful to require a dear cutting when a sound cutting answers the purpose as well This country is clamoring for preserva- tion of its forests. How can they be preserved if the manufacturer is compelled to leave in the forest any part of the tree that can be utilized? Men without experience have been lured into the lumber manu- Picturing business through fairy tales told of the wealth that comes to all hm^emien. It has» until the last few years, been though that att one had to do was to buy a tract of timber, erect a saw adfl and then sit back and draw dividen(b. The trudi of Ae matter is that SooTsmr Hauiwood Embejems the man who can suecessfuUy operate a hardwood praposttkm in tiie South can hqU any job^ eten to that of runnmg our government ICafOKANCB OF ONB AFFECTS ALL It used to be thought that the less our coasters knew of tiie manufacture and maiketmg of his hmiber the less dtfkuities we had. This has been proven absdutdy erroneous. Every dollar lost in the manulMture and maricetmg of lumber hurts the entire industry. This association has done much to educate the producer of lumber and what it has accomplished in this regard is a matter of history. Work of this kind is more slow in times of dqiressbn than in good times. Much was aocomplidied prior to tiie recent d^iresskm, and for this reason the members ^» Between 1880 and 1910 of 41,818^, or S34 P«r cmt The productioii of Iwnber, at Aown by Mr. Price l or iMo and 1900, and government reports lor 1909, indicatet Ihe loBoiwiiif con- sumption : In 1880, 18,000 million feet, or 360 feet per capita; In 1900, 35,000 million feet, or 460 feet per capiU; In 1909, 44»509 million feet ; In 1910, *48,959 million feet, 9r 532 feet per capitt. From the above figures it will be noted that: Between 1880 and 1900— The increase in population was 52 per cent. The increase in per capita consumption was . .28 per cent, and The increase in total production and con- sumption was 944 per cent Between 1900 and 1910 — The increase in population was 21 percent. The increase in per capita consumption was. 15 per cent, and The increase in total production and con- _ sumption was 4^ percent Between 1880 and 1910 (30 years)— The increase in population was 834 per cent, The increase in per capita consumption was 47.7 per cent, and The increase in total production and con- sumption was 172 percent We beg to refer here to Caiart I, wbWi was prqmred to tli^ First— The increase in population from 1880 to 2910 and the rdalive population of the United States lor 1880, 1900 and 1910 ; Second— The increase in the consumption of lumber from 1880 to 1010 and the relative consumption of lumber from 1880 to 1910 ; Third— The increase in the consumption of lumber, per capita, Iran 1880 to 1910^ and rdattvely, per capita, from 1880 to 191a During this entire period of industrial and social development in the United States there has been no reforestation and every tree cut has ^ Km fnkAiirf the availaUe supply and, consequently, from conditions where tiie loftst was considered ol little value the r emain ing timber, which is now measured and Imown, has grown tobeol greal vAi^ boA commercially and economically. • The 1910 figures are ertimated by acldmgW.7 per mat to thdJISy fi gures, tht increase in produetion Aowb by Gee. K nUfcV lifsrls «f fnmmm^ Trust Question and Luicm limjstax During this period, the white fmie resources ol tiie Lake eomtaj have been practically eidiausted. Government reports for 1900, 1908 and 1909 contain the following figures covering production of different woods : WHITE PINE Production in 1900 74^3,000,000 leet Production in 1909 3,9oo,ooo/)00 leel Decrease 3,583,000^000 leet, or 48% That this decrease is due to forest exhaustion is evidenced by the following quotation from reports above mentioned: "For more than 30 years the Lake States have led in the produc- tion of white pine lumber, and this lead is still maintained, though with a greatly decreased output, due to the exhaustion of the timber supply. The white pine production in Michigan, Wisconsin and Minnesota in 1899 was 5,977,000,000 feet, and in 1909, 2,179,000,000 feet, the pro- duction in 1909 being less tlum the production of Wisconsin alone ten years earlier.'* CHART NO. 1. 8B National Luicbbr Manufactusbbs' Associatiom Production in 1900 .34i90^00Q,000 feet Bnodndton in 1909 — ^sifioajooo Utt Demtte 569^0(^)00 feet, or 10% YELLOW PINE Production in 1900 9,658,000,000 feet Production in 1909 16,277,000,000 feet Production in 1910 *i8,o67/xx),ooo feet As shown during iht ten-year period horn 1900 to I9xp» there wis an increase in population of 15,977,692, and a per capita consumptioo of 532 feet, board measure, so it would appear from this that the increased annual consumption from this source alone in 1910 was 8,500 million feet. The per capita consumption of 19 10 shows an increase over that of 1900 of 72 feet, board measure, showing a further increase in lannal oonsiis^taoo the populati^ of 1900 of SA^i miUion feet White pme showed a redaction of 3,583 miUion feet, and hemloelc 369 million feet; therefore, upon other woods was thrown an anmial increased demand due : Feet First — ^To increase in population 8,500,000,000 Second— To increase in per capita consumption s^ifioofioo Third— To increase acooont redaction in white pine production StSfiSfiOOfiOO Fourth— To increase account reduction in hemlock pro- duction 369,000,000 Total i7,9^ifioofioo of which yellow pine contributed, in 1910, 8,409 million feet, Douglas fir 3,020 million feet, and other woods 6494 million feet, or a total of 17,923 million feet INCREASED value OF TIMBER lands During this period, by reason of increasliiig consumption and diminidiing supply of timber, the cost and value of timbtf lands lunre * The 1910 production is estimated to be 10.7 per cent greater than in 1909, by reason of better market and logging conditions, and is reflected in the Yellow Pine Manufacturers' Association reports showing production of Association mills to bate iaammi Ikat jm* tliia percentage. Trust Question and Lumber Inousisy ^ greatly increased, according to James D. Lacey & Co., timber land factors, as follows : PRICfiOF YEUjOW PIN9 LAND IN LOUISIANA Per Per Year Per acre 1000 ft Year Per acre 1000 ft. ^Pl *3-<» IMO, 1905 $50.00 $3.33 S-SO 1906 3 33 • 6x» 40 1907 ssxxj 3^ 1900.. 15.00 iM 1906 6aoo 4.00 1901 aaoo 1.33 1909 6sM 4.33 1902 25.00 1.66 1910 ^.50 4.50 1903 27.50 1.83 1911 8sx)o 5.66 1904- " ^CMX> 2.00 In this oonnectioa we had prepared Chart 2, showing: First — Increase in yellow pine lumber from iBof to lOio; Second — ^Increase in value per acre of yellow pme tinwer hods, the range of prices nnmtng from $3x^0 in 1897 to I85J00 in 1911. REVIEW OF TIMBER SITUATION There has never been an authentic and reliable estimate of the standing timber of the United States. The correctness of the last report of Mr. Herbert Knox Smith, Commissioner of Corporations, on the Lumber Industry, is being very Urgefy question^ by weU-it^mied lumbermen. Mr. Smidi's report shows a total of 634,000 million feet of timber, hotard measure, soudi of the Ohio and Missouri rivers and east of the Rocky mountains. In arriving at this total he has estimated that each thousand feet of timber, log scale, will yield 1,250 feet of lumber, board measure. He states that of this 634,000 million feet, 384,000 million feet is yellow ^ne. In other words, ^fiifiOO miUion feet of lumber is, in fact, 125 per cent of tiie actual ydbw pine ttmber, log scale, and 60.6 per cent of the total timber m tiie South, hence 384,000 millioa feet of lumber represents 307,500 million feet of timber or logs. Mr. Smith, in his report, shows that of the total of 634,000 million feet in the South, the State of Louisiana contributes 119,800 million feet, and estimating that the yellow pine timber in Louisiana bears the same ratio to the total timber in that state as it does to the total timber hi the South, we find that of the 119,800 miUion fe^ of aU dasses of 90 National Lumber Manufacturbks' Association CHART MO. 8. First : Shows tte increase In yellow pine lumber from 1807 to 1911, each on* Inch fln the yerUcal ante vtpreienting one bUlion feet This shows the lacresss la pcodoc- — 100%. Second : It shows the increase in value per acre of yellow pine timber lands, each I^^^fi IS^ scale representing $10.00 in Tslae^ the rsnfls of prices nuukiag Trost QossnoN and lAjuam iMsmnnr 91 tunber in Louisiana, 606 per cent, or 72,598 million feet, board meamr^ is xellow pai«» which nprmaU 5^190 miUioa Uitt, log acdt. tOUIttAMA miMAttS Now a carefd] tnnrey of tiie ydlow pmt timber in Louisiana de- velops an entirely different condition, and what we find is as follows : There are thirty-one parishes in Louisiana which have yellow pine timber. Originally they had 7,556,063 acres, but of this 3,806,542 acres, or 50.37 per cent, have been cut over, leaving 3,749,521 acres of virgin timber. This timber, as shown by the Louisiana State Board of Eqtmii- aatioa in their r^ort iot tiie jrear 19 10, is divided into f oar disses, viz. : Class A — ^Estimated at 15,000 feet and over to the acre; Class B — ^Estimated at 10,000 to 14,000 feet to the acre; Class C— Estimated at 6,000 to 10,000 feet to the acre; Class D— Estimated at 2,000 to 6fioo feet to the acre. In estimating this land and giving it the highest estimate under each classification, we get the following results: Feet. Classes A and 6— < 956.896 acres at 15,000 feet per acre i4»354«OOQ,ooo Class C— 960,527 acres at 10,000 feet per acre 9,6o5/xx),ooo Class D—- 1,832,098 acres at 6,000 feet per acre 10,992,000,000 Beiiy a total of 34,951,000,000 Addmg 10 per oem for tncom^ete report 3495,000,000 Shows a grand total of 38446,000,000 or an average per acre of 10,253 feet, which is nrach more than the whole will cut, as against Mr. Smith's figure of 58,190 million feet. FACTS SHOW lEPOKT IN BUOR In odier words, tiie facts show tiiat there is 19,744 miUioo feet less oi ydlow pine timber in TiOqisiana than Mr. Smitii shows, and that the ttnomit shown in hfe report is 151.3553 per cent of the actual. There- fore, if his report covering the total South is no nearer correct than for the State of Louisiana, it is safe to conclude that, reduced to log 92 National Lumbui MANUFACnnuntt' AuocuxKm scale, it shows 104,336 million feet more timber than there actually u, and hence there is today only 203,164 million feet of yeUow ^m^ Now, a careful survey of the yelbw pine tunber In Louisiana shows that 70 per cent is la inches and over in diameter, and that 30 per cent is between 12 inches and 8 inthes in diameter, and that the 12-inch timber will cut five stock-lengths logs to the tree, one of which comes from the tops and contains only low-grade timber, so that if all the timber 8 inches in diameter is cut, the South will yield a timber crop of 203,164 million feet, while the timber 12 inches and up, induding top logs, will yield 1421O00 milHon feet, and if tiie top log is not manufac- Inred, only I X4/xx> minion feet. The smafl timber and top logs will yield only defective lumber, and our experince has been that small and coarse logs will not yield in realization production costs, and can only be cut at a profit when the demand for lumber is heavy enough so that the price will justify their manufacture. If the top log is aUowed to rensain on the ground, it will lot and waste. Past experience has shown us that where the small timber is allowed to remain, a very large percentage will deaden and conse- quently waste, this being caused by the close proximity of the trees to each other on the ground, and in felling the larger trees the smaller ones are unavoidably scarred and consequently most frequently die. 8ELBCTIVB CUTTING IMPRACTICABLE The theory is constantly advanced that only large trees should be cut and the smaller ones, which are supposed to be immature, should be left to mature, but this is not true, not only for the reason that they will deaden but for the further reason that they are liequently over- r^ and should be manufactured. If, durii^ the five years from January i, 191 1, to January i, 1916, the s«ne ratio of increase in population and consumption continues, we could expect to consume 102 billion feet of yellow pine, leaving only loi billion feet of available timber in 1916 ; that is, provided all timber 8 inches and up were cut, whereas, if only the 12-indi timber, including the top log, were harvested, the availaUe sup^ would only be 41 b^kn leel, and w^ a fltiU further progressive iffid cunrakth^ iQg eonswwptioc Estimating that yellow pine will average, wherever located in the South, 7,000 feet per acre, by 1916 there will be denuded 14,571,428 Tmwt Question and Lumber Industry 93 a«es, or 2,914,285 acres per annum ; consequently there should be an agreement, enforced by law, to control the output of lumber, in order that a price could be secured to enable the bringing in of all timber, so that the life of timber might be conserved, and in order that the average price might be held to a lower basis for a lof^ period of time. It must be conceded that the earMer the reductkm of ^ produc- tion ol yeUow pine occurs, the ewKer tiie values of lumber and timber CHART NO. 8. SgSnfmann'?? "^^^ ^' P*^^ ^ South, arrived at in three M» & 0? ISs^^SSr *«^<^ up to dimeter, wh^thm^mm^ able » =of WlfoM*^' tM^^n^M wM* .It.. «, n.^. n«w m, AM 101 MiikNi tett, if tht ttebtr 8 tadw and up is brought in. JH National Lumber Manufactussbs' Associatiow will increase, and the longer that period is deferred the loqger the prioet will maintain a lower basis of value. DBdBASIHO SUffLY OT TI1IBB& AND CAU8B We want to call yotir attention at this point to Chart 3, on the preceding page, showing the available supply of yellow pine timber in the South and going into the future five years. This chart shows the supply of yellow pine and consumption, showing how rapidly the supply is being dq>leted and demonstrating tlie reasonable eaqwctancy of fiirtiier and greater ai^nredations in the vahie of y^Ocm pbut timber, and conse^ieiiliy higher prices for tiie The general consensus of opinion of 3rdk>w pine lumbermen is that in 1910 the manufacture of yellow pine reached its zenith and will decline, on account of depleted forests, from now on, as white pine has done. Accordiqg to James D. Lacey & Co., of Chicago, there is only I,i00yooo acres of ydlow pine land not now in the hands of the manu- iactnrer. This land, at the hig^iest estimate, would yidd 18^000 miUion feet, or less than one year's present output of ydlow pine lumber, and it should not take less than ten years to remove it ESTIMATED SITUATION ON TIMBER IN I916 It is seriously etttmatfd that the production of yellow pine lumber w9l be reduced by 40 per cent in five years from January i, 1911, irfuch would amount to 7,337 miUion feet, and tfiat during that same period the increased demand due to increase in population should amount to 3,780 million feet, and that this decreased supply of yellow pine and increased consumption of lumber (amounting to 11,007 million feet) will have to come from the Pacific coast fir timber, which would take from that country approximately 15,683 million feet per annum in 1916^ as agunst their production of 4^5^^ million feet in 1909^ which hicreased demand will greatiy enhance tiielr cost of stun^Mge and tiie price of lumber, and the drahi on tiieir supply will be ^ per cent per annum greater than it was in 1909. At this point, and in connection with the above, we beg to refer to Chart 4, prq>ared to show the present production of yellow pine and ir lumbar, and the probable production of each in 1916^ also the Trust Question and Lumber Industry 95 increased consumption by reason of increased population in the same period of time. ooMPETmvE conditions Now that we haTe attempted to handle ^ timber suppfy and demand for lumber m all its phases, let us see whether competitive conditi o ns and lumber prices will justify the daim that there is a "lumber trust" CHART NO. 4 Um preient production of yellow pine and fir lumber, and shows the probable production of each in 1016, and the increased consumption by reason of increased population in the same period of time, showing thereby that fir lumber will increase from 4,866 million feet in 1909 to 15.863 million feet in 1916, by adding together the tocwgeja ^ n am mj^a^ ^%i^i!t'^lSS% decrease In vnkfoctton of yeUow pbm As to c o mpcOave ooottkms tad Adr rdalioii to the so-called "himber trust** the impression is broadcast that tiie 'Imiber tmsf' is the Yellow Pine Manufacturers' Association and that its members are the members thereof. When it is known that there were 234 mills in the Yellow Pine Manufacturers' Associatioii in 1910, and that those mills produced in 1910 (tlie year of teir greatest production) 4,500 millioa feet, out of tiie total ydk>w pine output of 181067 ndlHon feet, or 24.3 per cent of the total production, oa the face of it will be seen the impossibility of such a control. Government reports indicate that in the year 1909, in the states south of the Missouri and Ohio rivers and east of the Rocky mountains tibere were fl8y434 mills. Durii^ tfie year 190B nuumfacturers of yellow pine lumber who were members of tiie Ydlow Tim Manufacturers' Association produced 3,343 million feet, whereas the government's reporto show that in Ae same year there were 9,652 mills active in the manufacture of yellow pine, of which 251 mills were members of the Association and 9,401 were non-nwmbers of the Association. The total production of all as shown was 11,236 million feet, the Association mills producing 3,543 miOioit feet and tbe non-Assodatkm mills 7,893 million feet, rimwing tel Hbt Anod^ mt&s piodoeed oofy 29 per cent of the yellow pine lumber manufactared in Oat year, and the noorAssodation mills 71 per cent. The government's reports for the year 1909 shows that of the total number of saw mills in the South there were 17,359 active mills reported as cutting yellow pine lumber in that year, out of which 234 nSOB wm nerabers of the Aatacialion and 17^5 were non-members file Aisodalioii* airf were aiii ais alwiQrs in conqKtitioa with bers of the Association. Tbese i7,t^ mlh produced in 1910 75.7 per cent of the lumber produced, or 13,567 mfflion feet In addition, the product of the mills of the fir manufacturers of the NorUiwest, and the hemlock manufacturers of the North and North- east, as wdl as the manufacturers of other woods, are at all times directly in sharp oonq^etitioa wik ydkm pine, so it wiU b e seoi h ow impractical it would be lor ooe-fourdi of ydlow pine product to enter into agreement and aflFect the market vataes on Uieir product without not only the cooperation of the non- Association mills in their own territory, but also without the cooperation of Uie manufacturers of otlier woods. Tmm QuianoK and Lombir IiiDvannr 9^ To further show tliat the price of yellow pine lumber has been governed by coa^ettdve oonditioot and the law of supfrfy and demand, rather than by any external nsan^ulations, we beg to present at ^bh point Chart 4A, showing the fluctuations in price of yellow pine from 1901 to 191 1, in its relation to the volume of building permits in 19 of the largest cities of the United States, the volume of railroad construction and freight and passenger cars and locomotives built. From this chart will be noted the great increase in volume of demimd from these sources which advanced the prices of lumber 633. We find, further, that for these three years, in the 19 largest cities of the United States, the building permits amounted, in round numbers: In 1904, to 302 million dollars; in 1905, 427 million dollars, and in 1906, 460 million dollars. It is safe to assume that the same amm that produced diese effects in these 19 cities of the United States extended to the other large dies, and to each and every town and hamlet throughout this great republic, and. the various foreign countries as well, and that they were general. The building of cars, Trust Question and Lumber Industry 99 locomotives and railroads was simply the effect caused by the general prosperity of the country and the great increase in the amount of gen- eral business. These facts are more ^>edfically shown in the subjoined tables reference to which will show how similarly various lines of business are influenced, though by no means simultaneously. VUlfBKB OF MILES OT BAILBOAD OONSTBUOTED lAOH YEAR AND NUMBKB OT ENGINES, nUDOHT CARS AND PASSENGER CARS BUILT EACH YEAR FOR 11 YEARS, FROM 1901 TO 1911, INOLUSIVS, AND THE PEBCSNTAOS RELATION THAT THE VOLUME OF EACH imC worn MkOR TEAE BEABS to the ATERAQM foe the 11 TEARS; ALSO THE AmttMm m tbh wmeaeuam wmjaum loa the ioue imca snywN. — EngiM^^ —Freight Cau — — Pais Cars — Bys. Const 'd Ymr. No, BeL % No, Bel. % No. MUeo. BoL % 1901 4,340 118.1 193,439 108.4 2,879 100.0 5,368 117.5 1902 4,665 124.0 195,248 109.3 3,459 120.1 6,026 131.9 1903 3,283 87.2 108,936 61.0 2,310 80.2 5,652 123.8 1004 2,SSS 67.4 186,561 76.4 2,213 76.1 3,832 88.0 1905 6,265 166.2 341,315 191.1 3,289 114.2 4,388 96.0 1906 6,642 149.9 310,315 173.8 3,402 118.0 5,623 123.1 1907 8,482 92.5 151,711 84.9 1,791 62.2 5,212 114.1 1008 1,182 31.4 62,669 35.1 1,310 45.8 3,214 70.5 1909 3,350 89.0 180,360 106.1 4,514 156.7 8,748 8tiS 1910 3,787 100.3 141,204 79.0 3,881 134.7 4,128 90.3 1911 2,850 75.7 133^17 74.5 2,623 01.1 3,066 67a IMOi... 41,884 1,968,875 81,680 50,257 AvcfEffM 8^762 178y584 2,880 or EAnaoAP uMaia ootraBAor, movth. or mabch, 1900, to 1907, imglusi?x. Tmr. 1900. 1901. 1008. 1903. 1904. 1905. vounm <»p BunuNo wmMtn mmm nr the 10 omm sBowir on attache aiATEMENT, BY YEARS, FOR 1902 TO 1911, INCLUSIVE, AND THE PERCENTAGE BELATION THAT THE VOLUiCB WG§k BACH TBAE BEAB8 TO THE AVEBAOB TOE THE TEN YEARS. P^romitofaveniffO Tear. Amouni. for ten yean. 1902 $ 286,858,464.00 71.38 1903 283,078,181.00 70.43 1904 802,148,782.00 75.18 1905 427,168,727.00 106.29 1906 460,422,204.00 114.57 1907 415,947,907.00 103.50 1908 384,740,253.00 95.74 1009 520,058,004.00 129.41 1910 487,160,844.00 121.22 1911 451,177,101.00 112.27 $4,018,761,367.00 Average ten years $ 401,876,137.00 MUes. Year. MUes, 5,200 1906 13,014 6,908 1907 11,912 7984 8'505 Total 66^ 6,908 7,500 Average 8,366 woo NAmmuL Luicm Makotactvibs' AsiociAnoN The values of all commodities simply idlow the general trend of iN^iitts comHlioiis and the diart jim reiemd to merclx danooitrates tiiis fact COMPARATIVE INCREASE IN PRICE OF YELLOW PINE AND OraSt COMMODITIES The increase in price of yellow pine lumber has not been propor- tkxiAte with the increase in price of most other staple products neces- sary to life and existence, and in substantiation of this we refer to Chart 4B, showii^ the relative price of yellow pine, of farm products, J9 standard oomoKKfitiei and 1^ hogs, for Htut period from 1890 to 1910^ indi^, 0ie basis price «sed behig the average from 1890 to 1899, inclusive. In further comparison of prices, we beg to refer to Chart 4C, showing that th^ fluctuations in yellow pine have been decidedly more erratic than that of the other commodities charted, but at no period has At general trend of increase of ydlow pine values been in keeping OOMPABISON or BILAflfl IMUOM OV VABMNW O OM lUJIIHHia * iaiO-1910. Farm $9 Com- Light Stumpage prodmeii. memet. hog§. 7.P. 1890 110.0 105.S 88.8 1204 Igat* ** 121.5 110.9 98.2 120.4 II92 111.7 102.7 114.6 120.4 1893 107.9 109.7 148.7 72.2 i894* ' ' »5.9 98.9 111.6 loos 93.8 98.5 96.2 72.2 1896 ! : 78.3 87.5 80.5 72.2 1897*"* 85.2 88.3 84.2 72.2 1898 .! 96.1 96.4 85.0 132i5 1899 * ** 100.0 102.9 92.1 144.5 IMO 109US 119.4 115.7 363.8 1901 116.9 123.8 133.9 481.9 1902*" 130.5 137.5 152.4 602.4 1903:::..: 118.8 184.2 m.o 662.e 1904 126.2 129.8 116.5 722.9 1905!:::;::: 124.2 137.7 120.4 1204.8 1906 123.6 151.0 143.1 1204.8 I907* 137.1 182.7 140.6 1825.8 JSi" 133.1 152.5 127.5 1445.7 1909* 153.1 162.1 166.5 1566.2 1910 164.6 181.1 203.8 1626.5 i9ii::::::: Trust Question and Lumber Industry lOI CHAJtT MO 4B. Schedule showing relative prices of certain commodities from 1890 to 1910. 1 Yellow Dine. 2. All farm products. 8. 29 standard commodities. 4. Hogs, light itai^i pSe^ iot 1890 1b» 1899 tHMn. CHART NO. 4C. Schedule showing comparative flactaatlon In prloes at cer^a commodities : 1. Yellow pine. 2. All farm prodaeta. 8. 29 itaMaid ru m mndMrn , 4. Eogt, uvtt. Base iin^ low price of 1896. 102 National Lumber lifANUFACniiBBs' AaaocunoK with other commodities, all of which are shown to have itHTPtffii m greater proportioiL OOlfPAlATlVS POTCHASING POWER OF YELLOW PINE BY OTHER COM- MODITIES — 1896, 1908 AND I9IO The increase in the price of yellow pine lumber since 1896 has not kept pace with the increase in the price of agricultural products, as is evidenced by the statement which will shortly be presented, giving the number of units of these different agricultural products required to purchase 1,000 feet of yellow pine Itmiber In 1896, 1908 and 1910^ Aese figures having been compUcd from Yellow Pine Manufacturers' Assodatioa Market Reports and Government Agricultural Reports. While this statement indicates that the price of yellow pine has fol- lowed the general trend of prices on other standard commodities, it will also show that with one exception (cattle, steers, chcMce to extra) the increase in the value of farm products has been £ar greater in pro- portion than the increase in the vahte of yeUow pint luniber. NUMBEl OF UNITS OF COMMODrriES tBOUIlED TQ FURCHASB I/X)0 FBBT OF YELLOW PINE LUMBEft n 1 u 1 N ^^^^ '908 1910 ^^'•^^y (b"shdO 46.6 33.9 31^ Corn (bushels) 53-8 36.3 »I Cattle, steers, choice to extra (pounds) 302.0 306.0 293.0 Hay, timothy (tons) 1.34 2.01 2.21 Hogs, light (pounds) 390.0 441.0 252.0 2?^^ (^"shels) 77.2 48.3 58.3 Flax (bushels) 17.1 20.7 lo.o Rye, No 2 (bushels) 39.4 33.2 38.2 Wheat (bushels) 21.7 27.3 20.7 fitter, Elgin (pounds) 77.2 91.8 75.9 Potatoes, white (bushels) 69.5 35.0 52.9 VARIATION IN PEICES OF DIFFERENT COMPANIES There is pending at the present time a suit brought by the State of Missouri against some 37 defendant lumber companies, indudii^ retailers and wholesalers, as well as manufacturing companies, to oust them from doing business in that state on account of an alleged com- bination to coatnA prices and restrict output Trust Question and Lumber Industry 103 Referring to the state's chaiges that these companies combined to control prices, we submitted as evidence of the fact that the various yellow pine manufacturing companies were influenced only by the conditions peculiar to their own particular cases in naming prices on their product, a compilation of invoices covering shipments made and of orders received, on the 15th day of January, April, July and October, of the years 1904 to 1908, inclusive, of ten difTerent companies, which compilation showed that out of 2,298 cases of duplicate shipments on the same items on same days, 2,134 showed a variation in price from 2$ cents to $7.50 per thousand, and 95 showed no variaticm; in otfier words, 95.87 per cent showed variation and 4.13 per cent showed no variation. Of the orders, out of 1,095 cases of duplicate sales of the same items on the same days, 909 showed a variation and 66 showed no varia- tion; In otfier wordi, 94 per cent showed variation and 6 per cent i^wed no variation. See tables on this and fdlowii^ two ps^. Further analysis of the orders and shipments which are tabulated and referred to above shows that out of 4,531 items under orders and XNYGICES . ORDERa Vmm- Number JTntKber 0/ Two or terof of sales Two or more sales varia- no varia- more sales tales no Tear. tame day. tions. tame day. vartaffOM. variationt. 79 71 6 18 20 1904 ...... 99 86 8 T 7 1904 124 113 7 1 U 22 103 93 4 2 8 28 59 25 1905 122 114 6 7 78 89 1905 180 124 6 8 88 88 07 85 9 3 49 56 1905. 90 75 11 11 24 75 229 92 1906 129 124 3 1 38 56 1906 188 126 8 8 54 60 1906 65 60 9 42 67 62 60 1 8 15 48 182 53 1907 117 111 2 8 45 56 1907 145 138 6 8 66 M 1907 133 126 4 4 68 74 1907 123 119 2 4 14 62 241 66 1908 ...... 120 113 5 5 101 116 1908. . . « • • 159 150 9 8 9 1908. . . • • • 148 132 8 6 27 27 120 114 2 6 10 62 198 73 2298 2134 95 66 909 1095 Vet cent biMd oa Ooiwi No. 1, Per cent htmA 1 prices. PnCBlfTAGB IBLATION OF P80DUCV10K OP OefBMnAHTS IN If IS80UKI "ouster suit" to ASSOCIATION AND UNITED STATES PIODUCnON In connection with the charge that these companies combined in 1904 to restrict the output, I desire to call your attention to the follow- ing statement, diowing the total producticm of the companies that are defendants in this suit from 1903 to 1905, indome, showing the per- centage relation of their production to the production of the Ydlow Pine Manufacturers* Association and also to the total yellow pine pro- duction in the United States for the same period : Production Y0gr. 17 companies. 1908 599,486,194 1904 662,233,877 1905 714,713,175 1906 783,835,186 1907 779,803,997 1908 679,738,249 1909 778^418,II97 Productum Yellow Pine Association. 3,101,123,779 3,289,613,266 3,229,079,845 3,646,687,333 3,818,520,730 3,408,547,278 6/Ml,674^0 Production yellow pine United States. 11,000,000,000 11,638,070,000 11,600,000,000 11,661,077,000 13,216,185,000 11,236,372,000 16,277486,000 Per Per Cent. Ceni. 17C09, xrcofc to Assn, 19.33 19.83 22.13 21.49 20.42 19M 16.44 to U.S. 5.46 6.66 6.16 6.72 5.90 t.06 4.^ Total 4,988^,222,776 25/»35446,830 86,523,889,000 19JS34 5.766 April .. July ... Oetobcr Jannaij April . . July ... Oetobor April July ... OetotMT Januaiy April . . Oetobar Januaij April . . July ... Totals Above On Beiow TeM Average lift. IMt. Iteme. Above list. 1904 2 78 80 $ .625 1904 6 40 46 2.000 1904 8 69 61 1904 9 100 109 1.194 1905 12 30 135 177 .708 1905 33 35 70 138 .712 1906 U 88 87 181 1.046 1905 81 e9 96 186 .750 1906 4 44 102 150 .438 1906 44 32 60 136 .773 1906 11 8 129 148 .818 1906 45 19 67 181 .533 1907 29 8 96 183 .319 1907 21 22 188 181 .714 1907 < 8 188 194 .666 .1907 8 188 ITS 1.860 1908 84 18 18i 808 .471 .1908 4 1 64 69 1088 .1908 e U7 UT aor 809 lilt mit $ Ml UMi 11.168 106 Natkinal LuMBBt Manufactubibs' ASiOCIATlOir In addition to the foregoing, a price agreement is something that would not be practical in the distribution of hunber, for the reason that the mariceting of himber products is distinctfy a merchandising proposition, and prices have to be elastic in order to dispose of surplus stocks so that the various items can be disposed of rather than held on hand and allowed to rot in the pile. By reason of the manner in which nature grows timber, it is not a uniform crop, any more than is any other crop— that is, from certain acres In a secticHi where a mill may be operating there will be a heavier pfoduction of large logs, with a consequent accumulation of a greater amount of high-grade Itnnber, which will naturally cause a surplus of this character of lumber over and above a normal stock. On the other hand, there will be some acres containing smaller trees, from which there will be a greater yield of the lower grade stock, and a consequent accumulation of that character of material. Thmfore, if there were a price agreement, some mills would find it in|>08sible to dispose of tiiese accumulations widioal a loss Aat would more than offset any possible gain from sudi an a gr ee m e nt Great stress was laid by the Attorney General of the State of Missouri, in taking testimony in the ouster proceedings, on the fact that the prices from which large concessions were made were probably caused by the fact that somebody was long on these particular items. We called his attention to the fact, while nal stocks, is conqidled to make such prices as ndll move his stodc. Consequendy diese slodcs on hsmd in the yards of the manufacturer and of the retailer act as an additional governor and regulate the market value of lumber. RANGE OF values As to prices, referring again to government reports, for the year 1909, we find that the average value of yellow pine, f. o. b. mills, was as follows: In 1899, $8.46; in 1904, $9.96; in 1906, $I5X»; in 1907, $1402; in 1906, $12.66; in 1909, 12J69. And we &id dH^ die range of ddivered {Miccs during die period from 1897 to 1911 on several of the principal items of lumlier showed great fluctuation during that period, as shown by Charts 5A, 5B and 5C, on pages 107 and 108, to which we beg to refer here. It will be further shown, by reference to Chart 6, that the cost of productkm of aae mill, with exceptionally good manufacturing condi- CHARTS NOS. 5A, 5B AND 5C, ilioviac fluctofttiott in pries on 14 items of j«Uoir niM most ciimmpBlir in use from ■wto fLM ia fidM. io8 Nauonal Lumni Mahotactuhbs' Association I I tkrns, showed an increts^ In total manufacttsring cost of 88 per cent between 1897 and 1911, while the average price at the mill of the ^1 hmiber that plant mannkctiired increased only 78 per cent for the same period. The percentage of increase in the various items entering into the cost of manufacturing lumber was as follows : Timber, 2,500 per cent ; Teust QumiON and Lumboi Industry 109 X lo National Lumbir Mah uFACrtJunts' AsaooATKm carrying charges, 5 per cent r, 46 per cent Tlie mcrease in quantity of low grade lumber manufactured, be- cause of cutting small timber, was 475 per cent. It increased from 4 per cent of the whole production in 1897 to 23 per cent in 191 1. In Chart 7 we showed, comparativdy, the cost of production of tbe same southern mill for 1901, 1908 and 191 1, and estimated the cost for 1912, based on present value of stumpage, and diowed the percentage of increase in cost in three principal items— stumpage, labor and ex- pense. Expense includes such items as materials, supplies, taxes, insur- ance, etc., but not including general expense, sales expense or interest P trcifUage 1901 1008 1012 Stumpage 16.9 26.5 343 41^ l;^^ 44.0 45.0 39^ ^s^poiat 22J6 2y.s aay 18.5 ioox> loojo 100.0 ioox> Total $11.53 lM6$ia68 The next three columns show the percentage of grades of lum- ber manufactured. £q>ecial attention is called to the large increases in low grade lumber made, for the reason that the close cutting of timber and the manufacture of small trees and top logs into lumber reduces the merchantable lumber product — Percentage — No. 2 and No. 3 16 36 33 Merchantable grades 84 64 In order that the effect of increasing production of low grades may be understood, we give the following example: For mstance, hy reference to this chart, it will be seen that in comparison of 1901 and 1911, the following percentages of grades were produced: — Pereeniage — r^...' I9OII9II Clear ' ^ ' j 10 12 ^^^l 69 54 S^- 2 12 a8 No. 3 4 5 Trust Question and Lumber Industry III CHART NO. 7 comparatiTely tbe coat of production of the same Southern Mill for 1901, 1908. •ad 1011, And eitiouited cost for 1912, based on the present value of stumpage and showing the per cent, of increase in cost in three principal items, being stumpaxe, labor and expense, such as material, supplies, taxes, insurance, etc., not tnclndiiig feneral expense, sales expense or interest : First : Stumpage, 1901, 16.9 ; 1908, 28.5 ; 911. 84.3; 1912, 41.8. Labor, 1901, 60.3; 1908, 44.0; 1911, 45.0; 1912. 39.8. Ex- pense. 1901, 22.8 1908, 27.5; 1911, 20.7; 1912, 18 4 Total, 1901 $7.10 ; 19^^^^^ 1911,19.46; 1912, $10.^8. Second : Nos. 2 and 3. 16% : 1908. 36% ; 1911, 33%. Mer- chantable grades 1901, 84%; 1908, 64%; 1911, 67%. ^rd : Realization, ^^^^^^ $9.95; 1908, |13.74; 1911. $12.91. Cost, 1901, $7.10; 1908, $11.53; 1911, $9.46. Gross, 1901, $2.86; 1908, $2.21; 1911, $3.45, showing that the per cent of operating expense to gross realization has increased and th« pnreailac* ok gMW Mnuniipi w rMOlMttoii baa dc c teaaed during said period. CHART 6M0Wir«» THRce pmr«cimt.rraMt for vcAmisoi, tSOt, I9U AND ESriMATCO 006T m lOQ, STUMPAOe 1901 1908 1911 i 3 I I lit a zj 51 5sl * 8 ft] S 1 •I 3» itM Nauonal Lumn Manotacturbbs' Association Now, if, for eaumple, Oese gtades ralized the same average mill pncc each year, as follows: Gear, $25; star, $20; No. i, $15; No. J, $10; No. 3, $7; and we take 100,000 feet in each instance and extend into total realization, we find that the percentage of grades produced in 1901 would have produced an average price in 1901 of $15.08, while in 191 1 the price would be $13.90^ or a lower tiasis of $1.18 per thoosand, which might be considefed as an indirect increase m cost By conservation methods of closer cutting of timber and savmg methods of mannfoctnre, a mill of 30 million feet capacity would show a smaller return for 191 1 by $35400. compasative costs and realxeation The third set of figures shows the average prices secured for lumber and their relation to manufacturing cost, and the groes profits, not including interest, sales or general eiqiense, indicating that tiie ^ opCT^tmg expense to gross reaUiation has increased and the percentagie of gross earnings to realization has decreased during this period, whidi shows the following operating percentages: '---Ferceniagt^ y^or Cost 1901 60 1908 81 19" 64 From the above mentioned statement, the rdation between the cort ci manufacture and tiie realisation on lumber is very clearly shown, as it win be noted Oat the fluctnatioos in both are very much in the same ratio. RETURN ON INVESTMENT ^^R^um on investment for 1897, 1901, 1908, 1911, and showing hmstmeni and return, based on average sized mill of 30 million feet capad^, with ten-year life, or 300 million feet: i%^-MOjOoo,opo stumpage @ |aao $ 60,000.00 ^^^P^* 150,000.00 Total investment $310^00000 Realization, 18^7— $7.75 Cost •••••• * — 5,50 Gross " — $2.25 30,000,000 output @ per dxnisand. • • : $ 67.«oaoo Percentage return ^ Trust Qttestion and Lumber Industry 113 1901—300^,000 stumpage @ $1.33 $399,000.00 Cost of same plant 250,ooaoo Total investment $649,000.00 Realization, 1901— $995 Cost " — 7-IO Gross " —$2.85 30,000,000 output @ $2.85 per thousand $ 85,500.00 Percentage return i3-2 1908 — 300,000,000 stumpage @ $4.00 $1,200,000.00 Cost of same plant 300,000.00 Total investment $1,500,000.00 Realization, 1908— $13.74 Cost *' — 11.53 Gross " — $ 2.21 30,000,000 output @ $2.21 per thousand $ 66,300.00 ^Percentage return 44 1911 — 300,000,000 stumpage @ $5.66 $i,698,oooxx> Cost of same plant 350,000.00 Total mvestment $2,0*8,000.00 Realization, 191 1— $12.91 Cbst " — 9-46 Gross . . . • " 34S 0,000000 output @ $34« Percentage return 5 30,000000 output @ $345 per thousand $ 103,500.00 P< total earnings and earnings per 1,000 FT., BOARD MEASURE, TO RETURN 10 PER CENT Any fair-minded business man will concede 10 per cent gross on the investment in any manufacturing property, based on present values or future present values. The following figures show the earnings necessary to produce this result, in total and per thousand, same invest- ment, same years: i8g^ 1901 ipo8 TpTT Total investment. $2 10,000.00 $649,000.00 $1,500,000.00 $2,048,000.00 Gross 21,000.00 64,900.00 150,000.00 204,800.00 Average profit . . .70 ^-^^ 5-oo ^-^^ 114 Natonal Lumbbr Manufacturers' Association We herewith present Chart 8, to give an ocular demonstration of the earnings necessary to return the same percentage of profit on the actual amount of investment for the years 1897, looi 1008 and 1911. ^ From these examples and statements, it will be seen tiiat at no time has the manufacturer of lumber received a fair return on his investment, and his investment should represent what it would presently cost to replace his phmt and timber, that being the only fair way it can be figured for a manufacturer who intends to remain in the industry. SU3CMARY So, by the foregoing, we see that the present conditions expressed in sales values to the public are due to two great causes, viz ; 1st — Supply of and demand for lumber. CBABT NO & 19 If OHM n /J *f43€ Km 9^jI tr/f i^f a rii >fMA ^ ^ 7 «V ^ 041 Trust Question and Lumber Indu^stry "5 dnd — ^Increase in cost, as follows: — (a) Increase in timber costs by reason of depleting forests; (b) Increase by reason of labor and supplies entering into the costs; (c) Increase of interest carrying charges and taxes on investment ; (d) By reason of closer cutting and increased production of lower grade lumber, and not due to trust !iceth(X)s. CONCLUSION. Before concluding these remarks, I desire to dwell upon a few of the conditions affecting the various industries. The rapid growth of the population of this country, through immi- gration and otherwise, is continually plui^;ing us into alternate periods of aggressive activity and reaction. In the past, after a period stagnatioa, where the industry of the country has been awaiting the march of progress to catch up with the development, we have, all too late, awakened to find that we have not been alive to the rapid growth, and the demand for our commodities at such a time has gen- erally exceeded our ability to supply same; consequently, we have proceeded on a rush program to increase our capacities to augment the supply in the same ratio as the demand has been increasing, but the consuming public have generally awakened before the manu&ictnrer to the difficulty of securing their requirements, and have bought during such times in excess of their needs, thereby greatly stimulating the demand and making it during such periods speculative. We have been slow to recognize this phase of the situation, and have been prompted to further large increases in our developments to take care of the demand indicated by such purchases, resulting in an over-production. When iiht denuuMl has z^gam become normal, diis over-productkm has resulted in wasteful competition, leaving nothing for the manufacturer to do but to sit still and again await further increase in the growth of the country to absorb the increased capacity of the additional develop- ment. These periods have come up in regular cycles, resulting in depression and prosperity, each following the other as a natural sequence. Following each period of reaction with its consequent over-pro- duction and under-consumption, we are confronted wi^ two horns to the dilemma: 1 16 National Lumbbr MAmiFAcnnuKs' Association 1st— The necessity of consolidation of industrial interests in large enough aggregations to bring about necessary cur- tailment of production, legislate values, and stop the waste of capital, raw material, and natural resources, or enter into trade agreements for the same purpose. 2nd— To allow this wasteful cmnpetitioi) to result m the survival of the fittest. The first situation, by reascm of statutory laws, both Federal and State, woiM be illegal and could only be accomplished, if at all, with the greatest danger, and consequently we are confronted by the second proposition, only. In our own business (the lumber industry), we have seen resultant waste of our forests by this condition, and I mi^t say m pasdng, that the same situatkm is true as to the coal measum, and we believe that this applies not only to these two industries, but to all other large kdustries m the country, consequently the business interests, generally, have recognized that by reason of these laws and having these cycles of activity and depression, the situation is unhealthy and a menace, not only to our individual properties but to each and cvtiy inhabitant of the country at large, through the great economic loss crealed bv these conditions. IfllMP KIASONABLE TSADB AGRSEICENTS SUBJECT TO REASONABLE REGULATION ARE NEEDED That these laws will eventually have to be repealed or mn^ j^^ we know, but the great question is, when? Some means must be pro-' vided so that business may go ahead and we cannot wait until the people, through their own experience, will demand a change in these We, as business men, in company with the representatives of «ter industries and industrial workers, must organize and coopeiate t<^ether to educate the people and their representatives in Congress to the fact that in order to relieve our addition and prevent waste, we must be permitted to enter into reasonable trade agreements under pn^r and reasonable r^;ulation. Such regulation should be had from a non-partisan civil service body or commission, composed of men of successful business experience, and not of professional office- seekers; and until such changes come over the body politic we must continue as we are, wasting our resources and creating economk waste, Trust Question and Lumber Industry 117 hastening the time when higher prices must result by reason of this waste. But if we organize the representative commercial and industrial bodies of the country and proceed to educate the public, we may yet live to see the day when such constructive economic principles prevail in the direction of our governmental policies. I would therefore urge upon this body that steps be taken by it for some regular organization which can take up the question with other similar organizatbns, to the end that we may have proper repre- sentation before the various House and Senate awnmittees in Wash- ington and in our various States, and prq[)erly present the needs of business to the representatives of the people. [Applause.] Mr. White: Mr. Chairman, I think we should give Mr. Keith a vote of thanks for that admirable paper. I want to make a motion to that effect, and also that a copy of it be sent to every Member of Con- gress and every Senator, and placed in every library in the United States, if provisicm has not already been made to that effect. I^UESiiffiNT Griggs: Provision has been maik, hut I think the motion might be put. I think it will emirfiasize the fact that the asso- ciation officers are wide awake to the situation. Gentlemen, you have heard the motion, the Chair will call for a rising vote. All those in favor will rise. (After unanimous vote in the affirmative.) There is no need to call for the negative cm that, and I want to thank Mr. Keith on hdialf of the association, particularly for the time and labor that he has bestowed on this admirable paper. The next number on the program is the report of tfie Advertising Committee, Mr. A. T. Gerrans, Houma, La., Chairman. Report of Advertising Committee BY A. T. GEMSLANS, OF HOUMA, LA. Your Committee desires to make a brief report of its work dur- mg the past year. Pursuant to the wishes of the Natkmal association delegates of the conventbn, held in Chicago last May, your President, Mr. Griggs owned Mr. J. E. Rhodes, Mr. G. E. W. Luehrmann and myself as the comnatlcc on advertising and we were instructed to examine into the proposition and be prepared to make recommendations at the earliest possible moment. After due efforts had been made to collect the paid for arguments of the substitutes for wood, whkh, by the way, was not a hard task, m n« not, I am not prepared to say; but there •re twcnty-five directors, and among the number the President of this AsscKnation, Mr A C. Dixon, of Eugene, Ore., aad Mr. Joseph N. Teal, were elected Vice-Presidents. meeth^* ^ delegates at that I do not know that the plan would make it necessary for you to ta^ any action with respect to that organization at this particular time- mv nof 'rT'" I' '"^^^ "comniciidatioils; my not bemg Chairman of that Committee, but it seems to me thatft might be well, if you saw fit, to pass a resolutioii expressing your sympathy with the movement, and then when the plans are formulated t7Jlu ^L"*^' ^ "^^^ will have an oppor- tnnity then to pass upon whether you wish to join the National Cham- ocr of Commerce of the United States. R^KMt on Natkmal Chamber of Commerce BY JOSBTB N. TEAL, OF PORTLAND, ORE. ^^rtland Ore., April 30, ipw.-National Lumber Manufacturers' AssooaticMi, Tacoma, Wash. Gentlemen: Pnrsuant to appointment by you, I attended as a delegate, the Na- tional Commercial Conference held in Washington, D. C, on April 22 and 23, 1912, which conference lead to the foimation of the Na- tional Chamber of Commerce of the United States of America. of years the National Board of Trade has been «^tamed by comparatively a few loyal members. It has done excel- ^V^^i u"^^ important measures to its credit, not the tost of which ,s the part it took in securing the estabhshment of the Department of Commerce and Labor. For some reason unknown to me, ,t did not secure wide recognition or support However, as evi- dence of the spirit of its members, on the formation of the National Chamber of Commerce it voted to disorganize and turn over to the new organization its funds, amounting to about $1,000. NECESSITY FOR A NATIONAL ORGANIZATION Under the keen stress of national competition it has become in- National Chamber of Commebcb 123 creasingly apparent that this country would have to take some or- ganized action if it is to participate as it shouuld in foreign commerce, as well as develop to the greatest extent its domestic trade. It has also been felt that there should be a closer relationship between the com- mercial interests and the department of the government created espe- ciaUy to advance them. This could only be done through an organized effort and the creation of some semi-official body with which the De- partment of Commerce and Labor could deal, knowing such body was really representative of and represented the commercial interest of the country. THE CALL The conference was called by Secretary Nagle at the direction of the President, under date of March i, 1912. On March 2 Secretary Na^ issued invitatk>ns to all ccnnmercial and industrial associations to appoint delegates to attend a ccmfereoce to be held in Washington, D. C, April 22, to consider the establishment of a natkmal commercial organization and outlining the principles by which sudi an oi^;anization should be governed. THE MEETING The meeting was called to order on April 22, 1912, at 10:30 a. m- by Secretary Nagle. The President of the United States opened Ae meeting with an address, of which the following is a part : «*I am deeply mtiiea at the response to the call for this met^g. When the neonmendation for a national chamber of commerce was made, the sug- ffestion appeared problematical to the minds of many. But I^^a^e been so much impressed with the need for constant and intelligent coopOTatioii industrial forces of our country that I eaaOaM to pal tiie quttSm to n ioDDediate test '*Even regulating measnres which have been adopted in the past may have suffered for lack of advice from those who should be best qualified by expeneroe and training to give it. Now that we witer upon the broad tM of constructive leidslation 3ie need for that eomiflel is absolutely apparent to all of us. Speciai- M investigation and learning may evolve theories. Those theories no doubt pw- vide proper foundation for new measures. But in the last an^ysis every thought must stMid the test of actual use. With rc^»ect to that test the disintweitod adriee of those who are to Uve by the proposed measures is of first importance. You gentlemen are most concerned to have rules of action formulated and adopted that are calculated to insure fair dealing on the one hand and allow and promote legitimate expansion and development upon the oth^ "To that end you and tbe government must cooperate. This you cannot tMWnptHFi» so long as you are disorganized. The advantage of one intoeat is aim to work to the disadvantage of another. ^ ^ , '*The government cannot favor separate interests; but it should promote commerce and industry aa a whole. This it the neaninff of the recommendation in my mewage. To acewplioh tiihi I trw* yon wm^ male aone decided progieas in thk seetiBg." 124 National Lumber Manufacturers* Association Secretary Nagle followed with an address urging the creation of a permanent representative trade organization to act with the govern- ment departments in solving the pressing economic problems. The meetmg was then turned over to delegates with Mr. Hany A. Wheeler, of Chicago, in the chair. ATTENDANCE There were between seven hundred and eight hundred delegates present, representing commercial bodies from all parts of the United States and insular possessions. It can be fairly said the delegates were truly representative of the great commercial interests of the country. It was evident from the start they had come for business and not for a frolic PLAN I will not undertake to go into details, indeed I could not do so at this time. It is perhaps sufficient to give a general outHne of the plan and purposes of the oiganizatioa. The plan states the object of the association as follows : fi!J^® ^{ ^^'l association shall be to provide a natUmal doariiur home for the development and consideration of busings opinion and to^ecurTunited J£2Lr!!^2IJ?f li!!?^ commercial interests of the uS Stotak Oafy ^pMftioM of BstioBal importaaee AsS be oonridered." The permanent headquarters is to be in Washington, D. C, and a national charter will be secured. Each association having twenty-five members shaU be entitled to one delate to the National Chamber of Commerce, and for each additional loo members an association shaU be entitled to one more megate up to ten, which is the maximum number of delegates which may be sent by one organization. Each association is to pay $35 annual dues for each delegate to which it is entitled. Provision is made for submission of questions to tiie various 000- sutuent members for consideration and report Questions may also be submkted to the Board of EMrectors for reference, and if the Board apprwes, it then goes to all the members for further consideration. ^ For the present the organization will conduct its work on the fol- lowmg basis and through the following bodies: A general counsel to consist of one member from each constituent member; A board of twenty^vo directors which in turn can ai^ioint an executive committee; National Chamber of Couuemcb 125 A president, three vice-presidents, a secretary and a treasurer. It was agreed that the Board of Directors would prepare a per- manent constitution and by-laws to be submitted for final recommenda- tion at the next general meeting, but such constitution must conform to the general plan adopted. When this is approved a national charter wiU be appUed for. In Oie meantime the present organization will continue its work. THE DIRECTORATE AlfD OFFICERS The general meeting elected the following Board of Directors: George H. Whitohb John H. Fahey A. M. COOPEE John P. Teuebmsm and Luvwio Nismr A. J. Logan ... Bernard N. Baker WiLUAM D. Mullen Francis P. Pbentos IteDERICK BODB Harry T. Wicks August H. Vogel C. G. Cboddock P. J. Kbuesi • Lewis W. Parmi. B. Thompson I, H. Kempner H. J. H0D6S Elias Michael B. F. Kaufpman E. P. Wells EVURT O. GBIQOS A. C. Dixon mmkCM H. AuxK The Board of Directors chose the following officers: PireiDENT— H. A. Wheeler • Chicago, 111. Tici-President for Pacitic slope— J. N. Teal Portland, Ore. YtCB-PRESiDENT FOR THE SOUTH — ^AsA G. Chamka Atlanta, CJa. YIOI-PBSSIDBNT FOB THE EAST— A. B. Pabquha* York, Pa. TteASTOB— John Jay Edson Washington, D. C. CkNiMSHr-- J. Francis Burke Pittsburg, Pa. GENERAL Full and complete reports and a copy of plan of organization will be issued and distributed to all participating in the organization as 90on as possible. In toy ofmiion, the impcMrtance of this (H-ganization in the develop- New Hampshire . . .Massachusetts {kmmBdAeat Neir York . . .Pennsylvania Maryland IMawue Ohio Illinois Michigan Wisconsin yirginia Tennessee . .South Carolina Louisiana Tena Kansas Missouri Iowa Minnesota Washington . Oregon California 126 National Lumbbk Makotacturbrs' Association ment of our trade, if properly supported, cannot be over estimated. Itoow the administration views it as of the utmost importance. ^CCTCtary Nagic said he considered the successful organization of the National Chamber of Commerce as the most important event in his admmistration. Throughout Europe such organizations, woridng in codperation with the government, have been most powerful factors in developing and extending trade, and I have no hesitancy in saying that modem methods m trade demand such organizations and modern methods are just as unportant in the development of trade relations as they are m manufacturmg or commercial enterprises. Indeed, the stress of national and mtemational competition requires the use of every reason- able expedient and instrument. This body wiU be a medium by and through which the national government will be constantly m touch with the commercial needs and requirements of the country, and the wuntay on the other hand wiU be kept informed of the commercial situatoon not only m the United States but throughout the world. It will be recognized as standing for the commercial interests and in a position to be of the greatest service. The better knowledge of our needs and the needs of others, the acquaintanceship that wfll mult the cooperation and mutual assistance that will necessarily follow, will all be of mestunaWe value m the contest for our fair share of the trade of the world, as weU as in the large development of our own bumnm and our own resources. I most earnestly urge and recommend ttat this body, as soon as it can be properly done, join the national body and support and further its work in every possible way, confident that in the result obtained the business and industrial intemts of the NaUonal will be the gainer thereby. Respectfully submitted, Joseph N. Teau PaEStDENT Griggs: If there is any resolution on that subject it can go to the Resolutions Committee and be discussed when we con- sider their report, unless you want action taken now. The Chair hears no objection, and it is so ordered. The Northern Hemlock & Hardwood Manufacturers' Assoda- tions president, Mr. Edward A. Hamer, of Chassell, Mich., not being her^s iwented by Mr. R. S. Kellogg, secretary of the same assc? oation We will now call on the latter gentleman for his paper on the subject of "Lumber Prices." Lumber Prices BY R. S. KELLOGG, OF WAUSAU, WIS. Mr. Presid«it and Gentlemen: What I haye to say this after- noon follows somewhat in the same general line as Mr. Keith's re- markably good address, but nowhere near comes up to it. It may, however, present a few facts from possibly a little different angle, leading, I am very glad to say, to the same conclusion on my part that he reached on his part I have been more or less observant of the lumber industry for several years, and I have a pretty fair record of attendance at this association. I have been wondering a great many times as to what the lumberman is. There is possibly somewhat of a philosophical question involved. Some people say that he is a manufacturer. I have a good many doubts, from some things I have seen, as to whether he is an up-to-date, efficient manufacturer — efficient in the production and tiie marketing of his commodity. I am raUier doubtful as to whether he is a very good manufacturer, or not WHAT THE LUMBERMAN REALLY IS Some people say that he is a lumber merchant, a merchant of the commodity he makes ; and my doubts are even greater on that score than on the question of his being a manufacturer. I believe that of 48,000 to 50,000 lumbermen in the United States, 300 or 400 possibly are pretty good merchants; but I am sure that a very large percentage of them are not very good merchants, and I think that many of you will agree with me in that. I have not the time to go into the details of the evidence. The lumberman is in some cases a speculator; but he has not been a very successful speculator in the last five years. I could present evidence on that score. Now tiierc is only about one thing left for him to be. When a man could not be anything else it always used to be said that he became a farmer. Possibly the lumberman is a farmer. I held to that notion for quite a while, that the lumberman is more of a farmer th^w 127 ta8 National Lumber Manufacturers' Association anything else, at any rate that he is more in the farmer's class than that of the merchant, manufacturer, or speculator. But even here I have begun to doubt very much whether or not the lumbennaii is a farmer. He is like the farmer in that he goes out and cuts down his timber and runs it through his saw mill, and piles it up in his yard, and then next day tries to sell it. He is a good deal like the farmer who when he has raised his crop and got it in the bin has to sell it, or let it spoil. I do not believe the lumberman is a very good farmer. But if he is not a farmer there is only one thing left; if he is not a farmer he must be a goat. I am pretty sure he is a goat; and before I get through this afternoon I think possibly some of you will agree with that point of view. AVUACS LUMBER PRICES FOR TEN YEARS Now going back to the dry subject of statistics again, according to the census reports for the years given below, the average mill values of aU kinds of lumber in the United States was: ISJ? $11.13 12.76 1907.... 16.56 1»08 15.37 16^8 MIO UJBO The increase in average value of the lumberman's product at the mill, from 1899 to 1910, was 37.4 per cent. On the other hand, the decrease in the average value from 1906 to 1910 was 7.5 per cent. Remember, there was a positive decrease from 1906 to 1910 of the average mill value of all kinds of lumber of 7.5 per cent INCREASE AND DECREASE BY SPECIES The following table shows the increase and decrease in the period given with respect to the various species, the percentages in the ri^ hand column not shown with an asterisk indicating the decrease, and those with the asteri^ kdicating the increase: Lumber Prkxs 139 average MILL VALUES 1 J.9UO $22.47 7.7 20.94 15.0 14.34 •2.3 H §9 £% A 17.37 •0.8 17.49 16.23 17.15 17.78 •3.7 21.94 20.51 6.5 18.08 18.67 •3.3 13.09 7.8 1S.46 12.26 8.9 15.31 13.85 9.6 30.42 26.55 12.7 11.91 11.85 ^JS 15.53 16.16 •4.1 21.76 18.76 9.2 16.11 18.68 •9.8 14.01 14.26 •1.8 18.32 18.93 •3.3 15.02 13.29 11.5 24.21 24.71 ♦2.1 16.64 ISJSt 6J 16.62 4.1 15.63 13.30 14.0 16.54 15.30 7.5 LUMBER COMPARED WITH FARM COMMODITIES On the other hand, we have a pretty interesting comparison as to what was doii^ in farm commodities during that same period. The average farm prices on December i of eadi jtax for cmnaio- dities given for the period 1896-1905 and 1906-1910, and tiie percoitage of increase in prices were as follows : AVERAiGS FARM PRICES-HPECEMBER I ISQS'ldOS 190€'19W Imentm Com, par bo. 37.1c 52.1c 40i5% Wheat 69.4 87.1 25.6% Oats 28.1 39.6 41.0% Barley 41.2 55.3 34.3% Bje 52.5 70.3 34.0%. Buckwheat 53.5 68.1 27.3% Potatoes 49.9 58.8 17.9%, Cotton, per lb 8.3 11.4 37.4% Voteeeo T.2 10.0 SO.0% Haj, per toa $8.07 «10.78 88.0%. Average 33.1% 130 National Lumber Manufacturers' Association Fran 1900 to 1^0 the increase in the average prices of horses and mules was: $44.61 $108.19 142.e% S9JS5 119.84 123.6% The study of the above tables showing the high percentage of increases of prices of farm products, will certainly convince 3/00 tiiat the lumberman is not a very good farmer; and yon most further re- menAcr that many of these c(»miodities the lumberman had to buy m order to feed his stodc. FARlflBS nUlBPITED MORE THAN OTHERS BY INCREAnD COST OF LIVING Now I have here some extracts frc«n the Year Bode of the Depart- m^t of Agriculture for 1910, which are authoritative, interestmg, and I flunk possibly will not be too long. They say : "The farmer has benefited more than others from the changed conditions which have manifested themselves in increased cost of Uving For instance, the product of one acre of own in 1899 was wortfi on the farm $8.51, but ten years later it was worth $15.20, an increase in farm valiK amountmg to 7S.6 per cent. Similarly, wheat increased m form vahie 114 per cent, tobacco 56.2 per cent, and cotton 65.6 per cent. Ten leading crops taken together—including, besides those mentioned, oats, barley, rye, buckwheat, potatoes, and hay^-increased 72.7 per cent in farm value. "This, of course, is no advantage to the fanner if the increase m price of the things lie has to buy is still greater. To ascertain the factsm this matter, the Bureau of Statistics sent a letter to a large """^i^"'^**^^ ^^'"^ business with farmers. These dealers were a^ to quote the prices which prevailed in 1899 and in loog, taking care to compare articles of the same grades. In this way the percentage of increase in the prices of about eighty-five articles com- monly used by the farmers was determined. "^three cases tiie prices were less in 1909 than in 1899; in four CM^^ were the same; but in all other cases they had increased, tne mWes running frcmi 2.7 per cent in the case of manure spreaders and mowers to 53.8 per cent in the case of brooms. Coffee increased 9.8 per cent; flour, 32.4; salt, 14.9; sugar, S.7; overalls, 22.9; rubber boots, 29; calico, 26.9; muslin, 25; and so 00. For aU the articles ccmsidered, the average increase was ia.i per ceitt "Now compare this with the 72.7 per cent increase in the farm Lumber Prices value of the ten leading crops. The farmer has evidently benefited more dian the r^t of the community — taken all tc^;etlier— -from the changes in values." The Year Book goes on to say that the increased purchasing power of one acre of farm crops is largely due to the increase in the output per acre. The Department of Agriculture takes a great deal of credit to itself for the increased yield per acre which has made the farmer so prosperous; but if you take these same statistics and chase them back for the last twenty or thirty years, you will find that tfiere has been mighty little increase in our production per acre of cotton, wheat, oats, or any of these crops — a, very small percentage. AVERAGE YIELD PER ACRE COMPARED The average yield per acre for the last ten years, comparing United States and Germany is as follows : United States, Germany, Corn 26 Wheat 14 30 Oats 29 50 Barley 26 35 Rye 16 26 Potatoea 92 200 So our farmer has not been so very efficient after all. It looks a little as if the farmer has been as wasteful and inefficient as the lumberman has ever been accused of being. He has simply had more good luck. A Department of Agriculture expert says in the May World's Work that all the staple farm crops now produced in forty- eig^t states could be grown on the improved land in fourteen states with 26,000,000 acres to spare. So the farmer has not improved his methods very much after all, but things have been in his favor. One of the big things that has been in his favor is the fact that, according to the census reports, practically 50 per cent of the people of the United States now live in cities, whereas in i860 less than 25 per cent — I think 22 per cent—comprised our urban population. The people have gone into tiie cities and have become consumers instead of pro- ducers. The total production of farm products has increased httle if at all. SARDONIC REFUTATION OF LUMBER TRUST IDEA Now the lumberman is up against many kinds of trouble. Of IDOurse he has a "trust" — a perfectly wonderful "trust" The lumber 132 National Lumber Manufacturers* Association • • r^t ri.-^ r. : - . • — - trade is not a trust, yet according to one authority— "This organiza- tion has thousands of members in all parts of the country, many of them presumably men of independent minds and preferences; and they are so perfectly disciplined that at the appearance of one little signal, aU act together like a driUed army. It has all the business terrilmy of the United States so mapped out and divided that its prices rule everywhere, and its members, under the control of its formulated principles, dominate and possess the trade. "It attacks recalcitrants and outsiders, drives them out of business, closes yards and factories, terrorizes alien manufacturers, scrutinizes the private books, records, and letter-files of its opponents, has its spies in every unfrioidly establishment, studies and follows every suspected shipment, keeps incessant watch on suspected business men, maintains a horde of well-trained detectives, bribes employees, scatters hush-money, dogs witnesses. It has exerted its influence over courts, public officers, administrations, legislatures, Congress and . pditkal parties. Composed of a great number of diverse dements, it is com- pact, secret, efficient, most aWy managed, and idiile tfaree-fourdis of its members have no idea of its own activities, they foUow, support, and obey it wi^ unquestkming faith. "Manufacturers were brought closely together, retailers were brought closely together; then manufacturers, wholesalers, and re- tailers were induced to work together faultlessly for a common end. "High prices were assured, profits made certain, competitkm was IMvctkally obliterated." TYPICAL EXAMPLES CITED You see what a wonderful octopus you are, and you can realize the things that the lumberman is up against. Now when I read this, I was inspired to do a little sleuthing myself on the trail of this myster- ious octopus, and so I went to a couple of members of our association and they tomed their records over to me, and the results of their ciqjwicnce are rather surprismg:. I have no doubt whatever that they can be duplicated in other localities. These concerns that I investigated were located in Wisconsin and Michigan. I found that a stock of eight million feet of hemlock lumber was shipped from Nov. i, 1910, to October 31, 191 1. Deducting freight, commisnoos, discounts, 'aUow- ances, cost of millw<»k and kMiding, tiie receipts for the lumber in the pile nm^ at the mill were exactly $ioxx> per thousand. This was Lumber Prices 133 for a stock which ran 56 per cent No. i, 20 per cent No. 2 and 24 per cent No. 3 — slightly better than the average. Taxes, insurance, interest and selling expense amounted to $1.00 per thousand — making a net price of $9.00 per thousand. Sawing cost $2.75 per thousand — leaving $6.25 for the lumber in the log. Logging and carrying to the mill cost $7.00 per thousand log scale at tiie k>west cadculatkm. Altowing 30 per cent overrun, this amounted to $5.40 per tiiousand feet of lumber, or but little more than actual operating cost, with no allowance for stumpage, taxes and interest on standing timber. Were the mill so situated that all the lath, tanbark and mill waste could be marketed at a fair price, the net return from these products would not amount to more than $1.75 per thousand feet of lumber. Another exan^e: A wdl-«ianaged firm, which did a large busi- ness in 191 1, received $6.44 per thousand for its No. 3 hemlodc The manufacturing cost — i. e., sawing, piling, shipping and selling — was $3.69 per thousand, and administration cost — i. e., office expense, sal- aries, depreciation, interest and taxes — $2.84 per thousand — a total of $6.53. Logging cost $4.50, and delivery to the mill, $1.20, or $5.70 per thousand feet of lumber, making the total cost $11.73 for lumber which sM for $6.44, with no aUowance for stmnpa^, which perhaps should not be charged against the cull product. On its entire hendock sales of ten million feet, this firm received a net price of $9.73 per thousand, against a production cost of $10.82, with stumpage charged at $3.00 to $3.50, according to location—a loss of $1.09 per thousand on this basis. This firm also received a net price of $8.65 for its No. 3 Ash, $a42i for No. 3 Ehn, $6.55 for No. 3 Hard Maple, $7.75 for No. 3 Soft Maple, and $7.86 for No. 3 Birch— all produced at a cost of not less than $12.00 per thousand. These are typical examples of conditions that have prevailed for the last four years. For hemlock they mean that in the most favorable situations, the manufacturers have been getting irom $ixx> to $2.00 per thousand for stumpage that cannot be purdiased for less than $9XX> to $3.00, and that in other situations, there has been no return for stumpage. For low grade hardwoods they mean that the pro- duction has been at an actual loss of several dollars per thousand. SOURCES OF LUMBER SUPPLY There are only two possible sources of lumber supply in the United States, one of them being timberlands owned by mdivkiimb 134 National Lumber Manufacturers' Association such as you and I, the other timberlands owned by either the states or the National government— the pubUc forests. At present, people like you and I own about lonr-fiMis of the timber supply. Neither you or I would produce any lumber if we could not obtain the cost of production for it when we came to saw it up and market it. One of our best-known foresters says : "It is better to waste timber than to waste money," and this is the keynote to private conservation. Human beings will always be guided by that principle as kmg as they remain reasonable. I have never seen the cost of productkm correctly figured during aU my acquaintance with lumbermen. There has been statonent after statement published in the lumber journals about the cost of imducing lumber, none of which have ever been correct ; they have shown nothing but the harvesting cost. There has never been a thoroughly worked out statement of what it would cost to produce a thousand feet of timber. I do not know where you are going to get a properly worked out basis of cost, and yet such a bans mast be secured if the cost of lumber is ever going to be figured out right in the United States. I have no idea of what the ultimate selling prices will be, but tiiey must come up to the cost of production or lumber will not be permanently produced by private efforts. That is a fundamental fact. ITEMS ENTERING COST OF PRODUCTION The real cost of production must include the growing of timber, hogging., sawing and marketing the product. The largest item is that of growing the timber. Mowing only $io per acre for the cost of land stocked with seedlings, the usual charges for taxes, protection, etc, and an interest rate of 4 per cent, it does not appear that timber avera^g eighteen mches in diameter can be grown for less than the following stumpage prices per thousand feet: Douglas fir $ 8.00 Loblolly pine ^. 10.00 white pine 20.00 Bed oak and yellow poplar 20.00 I'OBgltaf piM 80.00 And because of this condition the efforts which are made to bring about the possibility of permanently continuing lumber production and conserving the timber supply should be supported. We need to enlarge our conception of what a public utility is. Inl^ past few years, people's ideas have been broadening in regard LUXBBR PBICBS 135 lo public utilities. It has come to be pretty clearly seen that munici- pal enterprises like street railways, wUch are abs^utely essential for transportatkm, and water supply that is absolutely necessary for drink- ing purposes, fire protection and sanitation, are undoubtedly public utilities, as are almost to an equal extent other things like lights and telephones. It is recognized that these things are public utilities, that is, public necessities, and that they must either be supplied by the public acting in its own corporate capacity, or they must be supplied by private capital properly restricted and controlled and at die present time own ihtst forests, or who may own them in ^ future, to manage them in such a way that they will not be wasted, and so that their fullest values in the shape of commodities for the use of the public 136 National Lumber Manufacturebs' AssooATiaN will be secured. This must largely be done by private effort, which must be assured a reasonable return upon the cost of productkm. ECOlfOHiC C02n»TI0NS COM PEL WA8TB Thus it appears that we are led directly to the conclusion that Mr. Keith reached from another starting point But in carrying these conclusions into effect we have got to work for such methods of con- ducting bnsmess tiiat we Ml not be compelled by economic con- dMoiis to waste what we do not want to waste, nor to destroy what tfie people need, but which will permit us to save those things that need to be saved, and to maintain the things that must be maintained. And It seems to me that an organization like this associatum is the organization of aU organizations m the United States to start a cam- paign on such a line of puWic educatbn. [Applause.] _Mii^HITE: I want to say to you very briefly that, as one of the hmmemien here today, I want to plead with the rest of you before the bar of public opinion as being guilty of being a "goat"— and a dead goat at that ! Brother Kellogg has given us a good many specifications m the indictment ; I do not know of anything that the lumbemen need now to do except that it mighl be appropriate to inquire die price of a ooffin. [Laughter.] Pmsidbkt Guggs: As tiie Chiur had charge of this program I thous^t I would deviate from it and introduce a little song and dance or scmiething by way of relieving our minds ; but as we cannot have the song and dance I will deviate just long enough to get you back to earth, and hear the Treasurer's report. Secretary Smith wishes to file it so that the Auditing Committee can discuss it I will ask him now to read it I may say that the Board has gone over this report in detail; but ^ "^^ Committee most have it in order to pass upon it. Secretary Smith, in the absence of the Treasurer, Mr. J. A. Free- man, of Pasadena, Cal., read the Treasurer's report, as follows : Treasurer's Report Tparendmp . . , ^ Mm€k81,191g. i^MMMm-— Aanual Dues etcko ao Hcamiy Memberships 600 no Interest on Bank Balanew ......... ouu^ Miscellaneous Beceipta !.'"** . • ••••••••••••• •v.*. Yearendmg Mmch SU 1911, $25,347.80 1,800.00 24.72 0.SO Mai Ibmm $24,346.04 $27^77.72 Tibasuker's REratr Expanses. SiOaries $ MH-SS $10,283.49 Traveling Expenses 2,394.44 3,194.02 General £b^penses 1,957.77 4,899.14 Bent TTTT. 1,350.00 943.61 Annnal Beport 1,077.91 1,279.53 •Postage 293.39 •Printing and Stationeiy. . . 849.97 719.79 Exchange 19.30 18.62 Expense Meetings 505.40 Samt Loais Office Expense 336.06 Depreciation on OflBce Funiitore. 77.45 162.86 Statistical Department: Kent 220.00 Salaries 1,039.25 Postage 417.00 Printing and Stationery 335.70 Sundry Expense 21.95 Total Ezpease $20470M $21,887.12 Net Income $ 3,875.16 $ 5,340.60 Surplus at beginning of period 81,0^.92 25,709.32 Surplus at end of period $84,925.08 $81,049.92 'Previously kept in one account. The Titssuiei 'i raport as above took the regular eooise and was referred to the AnditiBg CoBunittee, Seovtaiy Smith eaUiag attention to certain eomparisoiis as to its details made 1^ tlM poblie aeeonBtaats in their comparative s tatenwt of UuA 81, 1918. DIStRIBXTTION OF MR. KEITH'S PAPER President Griggs: I will ask Secretary Smith to read the names of the men whom I would like to have make it a partieiilar point to enforee the distribntion of Mr. Keith's paper. Mb. C. D. Johnson, St. Louis, Md^: I woold like to offer an a mendaMnit in regard to the distr^wtioB of that paper. I think that a eopj of that paper shoidd be plaeed la the hands of &nrj retail lumber dealer in tiw tTnM SlatesL I also tkfaik that a eopy of that paper riionld be plaeed in the hands of every State P e pr ese n tative and State Senator, and every Governor, of aU lumber producing States; that it shmdd be distributed among the schools and colleges and freely and generally given a wide circulation. I doubt the valne of sending it merely to Senators and Con gr essmen. I think it is a good paper and should have wide distribution. If the gentleman who made the original motion will eonstnt I would like him to accept an amendment to that motiim. Mb. White: I accept the amendment". President Griggs: Whether that is just the right way to get it before you 1 do not know; but X would like to have your ideas. Are there any remarks on the motion? Mb. Blodoett: In regard to distributing that paper among the officials and 158 National LuMm Makufactubbbs' Association the legislatures of the various states, it has occurred to me that there is a rumor that there will be an election in this country this fall, so that the distribution at the present time might not reach those who will be our legislators a little later on. I would think so far as that is concerned that it had better be held in abeyance until our new ofScials are elected this fall, so far as the memben of the legialatores and the governors are concerned. President Gbigos: Are you ready for the question f I think the method of working it out had probably better be left to the Board of Governors so that we will not step on each other's toes; but as I understand it, this is in order to get the sentiment of this house. Are you ready for the question t Ml. Wmni: I want to speak in favor of that motion. I believe that not- wHhitanding the deetkm this fall, this ki a mighty good time to send it right out. Tktj hKf been anUng politieal eapital oat of xm; tad aiqrbodj tint makes palitieal ei^Hal fkrough misrepresentation againrt tiie hmbenaeii and charges Itaa witk being in a hunber trait, I do not eaie ivhat party he belongs to, for it eoHMi firom both and all parties, I tldnk tliat thej bata no right to do tiiat; for I believe eoaseientioogly that soeh politieians eannot get eleeled this eoning fall on the platform of pr ose enti ng the lumber tmst PiHiniNT Oaraoa: I woold Uke to ask Mr. Keith if it is possiUs to got a saftdent number of eopies of the paper in timet Mb. Kxith: In ngr mind, there is a qaestion to the adfisabiUty of send- ing that out to the state legislatures, and I am going to state the reason why, because I do not believe that any laws that are passed that are not uniform in all the states on the subject of our forests woold be a good thing for the lumbermen, any more than I believe that the passage ol employers' liability and workmen's compensation laws in any one state in whidi our industry is interested would be a good thing unless the same were uniform in all states where we are interested; for instance — I am going to refer now particularly to the coal industry — a law . passed in the State of Missouri fixing certain conditions as to workmen's com- pensation. If it did not apply equally to Kansas, or Illinois, or Arkansas, or Iowa, it would be disadvantageous to the producer in Missouri as compared with producers in other states where they had no such law. Take this matter as to the State of Louisiana; if Louisiana wanted to be progressive, and they passed an act there which would enforce upon us some line of reforestation, or some practice of forestry, and Mississippi did not get that law, or Texas, or Arkansas, or Alabama, the producers of the State of Louisiana would be perhaps at a decided disadvan- tage as compared to the other states, or vice versa. Any action along this proposition should be national in character and scope, and I doubt very much wkether it woold be advisable to send this paper to the state legislataree. Fbsubbmt Oaioea: I tiiink it woold bo the port of wisdom to consult witk Mr. KoiA on tiiis matter; and if thero is no objection by tbe mover and tko s s eead s r of the motion, that mi^ bo deao. I think wo can dissDss with Urn as to the adfisabOity of that Baia yoo aa^lking farther to asj about i^ mitof Mm. Wbjtb: Nothing. If tkero is ai^y good reason why tbe InfMataua should be omitted, we can send it to the sdiools as a matter of edncatioa. Psopls need to be educated. I know that a great maiqr of tiio s(Aodls are anzioos to git tiMit kiad of docBBMnls. I know that the sn band of seventy-three is representative of a larger production than has heretofore been the case in the entire existence of the North Carolina I^e Association. I expect that the same causes have affected the Yellow Pine asso- ckition. I have not the figures to give you, but Mr. Keith has ; but I can say to you this, that we have the figures ; and I found that at that time, covering a period of sixteen years, we had suffered in our sec- tion depreciation from deterioration of our timber to the extent of $3 per thousand. I also found that we had conditions that needed adjust- ment, and I wanted to see such a s{urit of cooperation existing between the members in the South so that delegates could be appointed from one association to the other, and that at the various meetings we could absorb the best features of each in the upbuilding and uplifting of an industry of so much importance, at least to the membership of the North Carolina Pine Association, which comprises the states of Vir- ginia, North Carolina and South Carolina, representing in its mendber- ship about seven hundred and fifty million feet production ; which was in exacdy Oie oonditkm as stated by Mr. Keith, that while he repre- sents seven hundred and fifty million feet, the combined output of the three states is about two billion feet; so that we only have about 40 per cent of the production of the three states represented in our membership. I am very sorry that my conditicm is such that I cannot speak longer. I have h^d considerable about cost I wish I had with me the figures of cost which would demonstrate that in sixteen years tiie manufacturers of our section, up to July i of last year, have been re- ceiving for their product no more money, counting the additional cost of manufacture, advance in stumpage, and deterioration in acreage, than they were sixteen years ago. President Griggs : We will next hear from the Michigan Hard- wood Manufacturers* AssodaticMi, Mr. Charles A. Bigebw» President, Bay aty, Mich. Mr. Bruce OdeU, Chairman of its Committee on Trade Reladons, has prepared a paper on the subject of "Elements That Make a Successful Association." We will be very glad to hear from Mr. Bruce Odell. Elements That Make a Successful Association BY BRUCE ODBLL, OF CADILXAC^ MICH. Mr. Chairman and Gentlemen: While it is the intent of this ar- ticle to deal primarily with lumber association work, the same rules and principles that apply to lumber associations apply equally to all trade associations. The function of any and all trade associations is to be of benefit or render a valuable service to the association members individually and collectively and the success of any association is meas- ured by the value of the service rendered to its members. This mat- ter of service is the foundation, the very life of any association, and widiottt some valuable service rendered no association can exist very long. It is sometimes difficult to say just what that service is and to measure the value of the service in dollars and cents. As a matter of fact, a service may be rendered that cannot be measured with a mcmey standard of value and yet be of great value to the membership. ummoDS OF securing association benefits Granted that valuable service is the object of all trade associations, the query naturally follows, by what means can that service be ren- dered? In my opinion the very best means is by giving information that the individual member may not have acquired or have the facilities for acquiring. You will all grant that the life of any manufacturer is far too short for him to obtain a thorough knowledge of his business from his own individual experience. Experience is a good teacher, but a mighty slow and expendve 6ne, and if one depends on his own ex- perience exchisivdy he many times has only failure from which to benefit. There should exist in every association, and does exist in every really successful association, a feeling of mutual benefit, a fcd- ing in each member that makes him willing to give the other members the benefit of his knowledge and experience. This information may be along the line of improved economic methods of manufacture, better metibMMis of marketing, information as to stq^y of stock and market demand and in hundreds of ways too numerous to mention. Part of this informatbn may be furnished by the president, the secretary, or 141 143 National Lumbik Makufactubbbs' Association some c o t nmi tt c c, but each individaal member should be ready aad will- ing to do his individual part. MANUFACTURING ECONOMIES Economic methods of manufacture would be difficult and possibly tiresome to discuss at this time, as this is one of the many elements about which the most valuable information is often obtained through the means of an exchange of individual experience, an exchange often times not made during the sessions of an assodation meeting or through any r^^ularly appointed committee, but more often through ikt dis- cussion among small gatherings of two, three, five or more members that you often see during association meetings. These talks may take place at luncheon, between sessions, or on the way to or from asso- ciation meetings. The manufacturer is indeed a dull one who will at- tend many association meetings and return home without having re- ceived or imparted some useful inf ormatiofi pertaining to a better or more eeonomkal method of manu&icture. IGNORANT OR CARELESS MARKETING We must all admit, and do admit, that an article must be well manufactured and economically manufactured in order to yield the most profit, but it is equally true that an article may be well and eco- nomically made and yet yield little if any profit through ignorant or care- less methods of marketing. I have made the statement, and can prove it. by each and every manufacturer attending this meeting, that many manu- facturers wffl study aad wcMrk to the limit of their ability, they will pay large salaries to competent woods and mill superintendents, thef will urge them to secure more and better work frcmi the laborers under them, they will spend thousands of dollars, even hundreds of thousands of dollars for railroads, steam loaders, steam skidders, sawmills and improved machinery, to save a possible fifteen to fifty cents per thou- sand on their logging bills, ten to twenty-five cents per thousand on their sawing bills and possibly a few cents per thousand on their yuri- tng and handlii^ InUs, and then detiberatdy sacrifice inm one to five dollars per tixmsand in marketing their product without knowing that they have done so. Two, three, five or even ten thousand dollars may not seem to them, or may not be, too much to pay a manufacturing superintendent for looking after their business until it is just half done, which is to get their product ready to market, and then turn it Elements that Make a Successful Association 143 over to a sixty to seventy-five dollar a month clerk to fini^, which is to sen it Or he may take this duty upon himself as a sort of skk line to which he devotes a few days of serious thot^ht once or twice a year. VALUE OF ASSOCIATION IN MARKETING PRODUCT In this item of marketing his product the assodatkm can render a service to the manufacturer that he cannot perform himself, a serv- ice that he will not get from sixty to seventy-five dollar a month clerks, a service he cannot purchase even through the means of high salaried sales managers. This service need not be rendered by the association thiough any unlawful comhinati(Mi to limit producticm, an unlawful agreemoit as to prices or hy any other unlawful means, but by su^y- ing the manufacturer witili information as to supply and demand and general market conditions, information that it is absolutely impossible for him to secure for himself, information that cannot be supplied through any other source. Members of the Michigan Hardwood Manufacturers' Association take great pride in the fact that it is recognized as a successful asso- datkm, Hmt it is accredited with renderiii^ much vahiable service to its members, and I believe diat if the members were asked to luune the specific service that has been of most value to them they would ¥rtth- out exception say that it was the accurate and reliable information as to supply and demand and general market condition of their product. It is essential that each individual member contribute his share to this fund of information and then that the information be put in the right form and proper deducticms made so as to be readily understood by the manufacturer and act as a guide to him in manufacturii^ his own product, not through any combination or agreement, but through a positive knowledge of actual conditions. ORGANIZATION AND PURPOSE OF ASSOCIATION This asspciation was organized six years ago in about the same manner and for about the same avowed purposes as most other asso- ciations, except that the organizers had one particular definite idea in mind. The Michigan Hardwood Manufacturers saw their supply of Michigan hard maple timber diminishing rapidly and the maple lumber selling at ridiculously low prices, and many of them thought that the market was being manipulated to their disadvantage and toss. M^di this idea uppermost in tiieir minds they immediately put forth efforts 144 National Luiin Manufactoibbs' Association to get definite, accurate and reliable information as to the amount pro- duced, how the supply compared with the demand, the amocmt of slodc on hand, the amount sold and the amount unsold. While it was ex- pected that this information would come through the organization, it must of necessity come primarily from the individual manufacturer. STATISTICAL INFORMATION SBCUIED BUmk forms were Immediately sent to practically every manufac- turer In Michigan with a request to make prompt and accurate reports and a very thorough explanation as to the object to be attained. Re- ports were obtained from nearly all of the manufacturers, giving all the information in detail, not only as to maple but all of the other north- em hardwoods, also. These reports were carefully compiled and sent to eadi manufacturer reportii^. The Information given appealed to the manufacturer so strongly that it was the means of securing mai^ members that we had not been able to reach by any other method. It gave the manufacturer information he had never had before, informa- tion he could not secure of himself alone, information he could obtain through no other source than the association. This first report was gotten out in July and another in October, 1906. By January i, 1907, we had gotten a more definite Idea as to just what form of report would give us the most useful information, and when the January report came out it was eagerly sought not only by the manufacturer but by the wholesaler, the jobber, the retailer and the consuming manufacturer also, all of whom were supplied with the quarterly reports long enough for them to be convinced that the infor- mation was absolutely accurate and reliable. A quotation from the Secretary's report at the January, 1907, meet- ing of the association will give you some idea of the scope of the re- port. I quote as follows : "Enclosed herewith you will find the first annual stock report of the Michigan Hardwood Manufacturers' Association, or perhaps it would be more correct to call it the first end of the year report, as it does not show a full year, owing to the fact that our assodatkm was not organized until July 13, 1906. In many respects, however, it Is an annual report and one that contaiils information that will be of bene- fit to the manufacturer, the wholesaler, the jobber, and the consumer. "You will find on a careful study of the report that it contains more complete and accurate information in regard tQ the hardwood situation Elbmbnts that Make a Successful Association 145 In Michigan than any other report yet furnished the nanufocturer. More complete because it probably represents 80 to 85 per cent of all the hardwood lumber cut in Michigan, shows the amount of each kind of hardwood cut during the year 1906, the amount of stock on hand * January i, 1907, the amount of unfilled orders for 1906 stock, and the amount of the 1906 cut remaining at the mill unsold; also the amount of orders boc^ced January i, 1907, to be furnished f rp^ stock to be cut during the year 1907. You wHl note In the report of the amoimt of stock on hand and unfilled orders that it shows the different sizes and grades of each kind of hardwood, information that probably no other general report has contained. "It is more accurate because it was made at the end of the year when every manufacturer had a complete inventory of his stock and could furnish actual figures Instead of estimates. Probably mote ac- curate than any other general report for the further reason that it is a report In whidi every manufactuirer reporting f eeb that he has a per- sonal interest" PEBSONAL interest largely responsible for SUCCESS That feeling of persmial interest and that he is an individual part of ^ association has contributed no small part to our success. As evidence of that feeling I cite the fact that most of our quarterly stock reports contain complete reports from every member of the associa- tion and that it is very seldom that more than one or two reports are missing. As evidence of the careful accuracy of the reports, the an- nual estimate of January i, showing the estimated amount to be cut during the succeeding year, seldom varies more than 5 per cent from the amount actually cut, and sometimes the actual cut is within i or 2 per cent of the estimated cut. Stock reports, be they ever so accurate, often mean but little unless we have something by which to compare them. For this reason the older our association grows the more valuable are its stock reports. Take for instance, extracts from the January, 1912, repent of our Maricet Conditiona Committee In r^rd to Na 3 common northern hardwood among monbers of our assodatkm. I quote as follows : "A comparison of the total stock of No. 3 common hardwood on hand is as follows : January i, 1909, fifty millions. January i, 19101 seventy-four millaons. 146 National Lumber Manufacturers* Association January i, 1911, seventy-two millions. January i, 1913, forty-four millions, the smallest stock since 1908, and a comparison of the amount of stock unsold shows even more pro- nounced differences, the total amount ol unsold stock for the dif- ferent years being ts fdlows: ''For January I, 190^ twen^Nwe rnOUons; 1909, thirty milUops; 1910, forty-three millions; 191 1, forty-two nuUiofis; 191a, seventeen millions, the smallest stock of No. 3 common remaining in 6ie hands of manufacturers unsold in the history of the industry except in the year 1907, a year that none of us expect to see repeated." With the subject shown up in this way by facts and figures in fidence, is it necessary to form which every any iber has the fullest In restximt of trade or even tdl the manufacturer that he can get better prices for his No. 3 common hardwood? The whole- saler and consumer may make the statement that the woods are full of it and that they can get all they want at the same old price, but if the manufacturer has full confidence in the accuracy of the association reports, how much is he influenced by the statements of the wholesaler and consumer? As a matter of fact, many of the wholesalers and con- sumers have as much confidence in our reports as we have ourselves. Having these stodc reports and Market Conditioos Committee reports as a nucleus from which to work, our assodatioo has readied out for the other things that may in any way prove of value to its members, covering hemlock lumber, hemlock bark, rules for grading hemlock, uniform sales customs, recommendations to the National Grading Association of desired changes in the rules for grading north- tioii, and many other details too n always have been atong the line of IS to Our effOTts and informatkm and to get the members to report and attend meetings. MBNEFIT DERIVED FROM ASSOCIATION MEETINGS The matter of attendance is an important and necessary one, as no SMmber can secure the ftdl benefit of an as80ciatiared. Our association is entirely of yellow pine people. I presume that most of you know tiie conditkms under which we have bbcM^ tfus year with water. The output of our association member- ship is about 170,000,000 feet less than it was a year ago. The rains still continue. I hope you will excuse me from any further report, as I did not expect to make one. I thank you all for your attention. No further business offering at this time» the Convention ad- journed until 9:30 a. m., Wednesday, May 8. THIRD SESSION WcdBMdagr F^miooii, liqr %, 1913 Tlie Conveiitioii met pnrtuanl to adjoammciit, PMidcnt Grigp in the chair. President Griggs: At the meeting of the Board of GoiveniofB this morning it was decided that we would endeavor to carry the proceedings of this session through to completion before 1 130 p. m., rather than to adjourn for an afternoon session, the Board feeling the nemdty of lioldiQg an executive sesskm tfiis aftcmooiit and on ^r part believii^ ^t it wocdd be the better mgr to con^lele the proceedings at this session. I am going to call on the President of the Yellow Pine Manu- facturers' Association, Mr. Samuel J. Carpenter, of Winnfield, La., to address us on the subject of ''Adverse Conditions Affecting the IiMhistry." m IJJ 1^ Adverse Conditions Affecting the Lumber Industry BY SAMUEL J. CARPENTER, WINNFI£LD« LA. The student of adverse conditions affecting the lumber industry at the present tone soon reaHaei that many of the vicissitudes throu^^ whidi we have passed in recent years have been hur^dy 00 aoooont of the lade of ooUe^ve cooperation on the part of the p ro d ucers and sellers of lumber. We protest vigorously against vicious legislation, against com- petition from substitutes for wood, and other influences beyond our control, and we sit supinely by, tmdertaking to satisfy ourselves and our stockhdders with the thoi^ht that we are conducting our bosineis with ability and efficiency, buoyed up by ^ hope that at aome future time, possibly after 30 per cent to 40 per cent of preaent ataadfaig timber has been exhausted, we will be able to realize enough for our product to overcome present losses and justify our investment This view of the situation, however, does not satisfy alL NECESSITY OF Ca-OPBRATION An increasmg number of harmful practket in methods and ethics and many known evils are allowed to exist and multiply because tiiere is not united, cooperative attention given tiiem, aiul cdlectively ^tuey 150 Adverse Conditions in Lumber Manufacturb 151 greatly reduce the price the lumber manufacturer must receive for his product in order to pay his workmen living wages and to return to his shareholders interest on capital invested. Cooperation can only be forged into an effective force through some dtdy organised body with tiie necessary mechanism for getting results. Speaking of the Yellow Pine industry, with whidi I am somewhat familiar, of 679 large manufacturers of yellow pine lumber in the South, only 259 are members of the Yellow Pine Manufacturers' Association. And only 106 mills are represented in the membership of the Southern Lumber Operators' Association; cypress and hard- wood manufacturers bong etigible, as well as yellow pine. . A SPECIFIC OBJECT LESSON In spite of the lack of cooperation by a majority of the southern mills, the Operators' association have during the past twelve months, given an object lesson in the efficacy of oo^>eration that should insti- gate serious thought It has been said by a gentleman of large ex- perience that its achievements are without parallel in industrial history. A great service has been performed and the woric is still being, carried on, and never before has such a contribution of valuable time been called for and freely given. It would have been impossible to have secured results by individual efforts. If this association ultimately fails to accon^ish all of its purposes, it will not be on account of lack of harmonious cooperation on the part of its members, but win be because its membership does not include all manufacturers of southern Itunber. evils ARE OF NATIONAL SCOPE I bespeak for this association the serious oonskleration of aU southern milhnen. The eWb timt threaten our u^ustry from an operating standpdnt are not local in their character. If they are not firmly met and discouraged at their inception, they would soon, with gathering strength and momentum, involve the entire producing terri- tory and create a condition that would be intolerable, and result in destroying the integrity of the industry. Any mill owner or any board of directors who aUow their executive officers to wtthbold support and oodperatioo from tfie Souiii- 15a National Lumber Manufacturers' Association ern Lumber Operators' Association are doing the industry, themselves, their employees and capital invested with them an irreparable injury. In selling lumber also we are drifting into tinbusinesslike methods ; each individual distributer fully realizes that certain methods are wrong, hat coQtiniies because ethers do it I refer to terms of payment, spe- c»l milling of lumber without the cost added, etc., with wMch you are all familiar. There may have been temporary advantages in securing orders to the one who inaugurated this custom, but it is of short duration, as his competitors wUl sell their lumber eventually, even meeting these con- ditions, if necessary, and the result is that all lumber is marketed on a lower basis. MANUFACTURERS UNABLE TO SHOW PROFIT OK INVESTMENT The manufacturer of yellow pine lumber in the South has not been able, in recent years, under a correct system of accounting, to show a profit on his investment. Various explanations are made for this con- dition. The opinion most frequently heard is that the politicians who have been maldng our laws, state aiul national, in their zeal to cnrb the trust and destroy monopoly, have repealed the necessary laws of trade, and forced the lumber manufacturer into destructive competition. Several bills have been filed with the Senate Committee on Inter- state Commerce seeking to create an Interstate Trade Commission. All trade agreements affecting prices and output are to be filed with this Commission, who would render an ofnnion, in advance of action, as to whether or not the trade a g ree m en t sidimitted fay reascm of its charac- ter and tendency restrained competition so mwDh or in such a man- ner as to constitute restraint of trade. It is thought that this idea, in some form, would be enacted into law. It is a conceded fact by students of economics and forestry that the interest of the people as a whole, as well as those who will live alter m, would be best conserved by utilizing the present timber supply to the fullest extent, which would mean that &e present generation should not be allowed to sever from tiie soil only a sufficient amount of timber to supply the existing demand, and should be compelled to manufacture into lumber all parts of the tree, for which uses can be found. In order to do this, they must be able to realize enough for the low grade lumber to pay the cost of production. At the fM-esent time tnanufocturers are leaving in the woods to rot Adverse Conditions in Lumber Manufactuib 153 or to be consumed hy fire, two or three tiiousand feet of logs on every acre of ground cut over that would make lumber that could be tttiliied for many purposes, but cannot be manufactured and marketed except at a loss at prevailing prices. It is not an economic waste to abandon raw material that can oxdy be manufactured into a useful article at a finan- cial loss. The theory that the timber mpglfy of the United States will be conserved by opening the maricets to c om pe t i t ion wi^ free Ittmber from Canada is a fallacy. Low grade lumber moving by water can be put in our lake ports on a very low freight rate. The yellow pine manufacturer cannot pay the railroad companies $6xx> to $7.00 per thousand feet for transportation on his low grade lumber ami meet this competition ; consequently, as he has no market for his low grade lumber at a price eqpial to the cost of prodocb^ it, he is compelled to leave in 0ie woods a part of every tree. Every existing saw mill operation cuts over a given area of tiniber land every year to secure its log supply. By reason of his having no remunerative market for his low grade lumber the manufacturer can only utilize the choice logs from the tree, leaving in the woods to be destroyed the top logs and all those showing serious defect, and con- sequently, in order to supply his mill with logs, must cut over a larger area every year than he would if all the tree could he profital^ used. This condition is the most serious blow conservation has recdved. INTERSTATE TRADE COMMISSION PROPOSED It is to be taken for granted that a Trade Commission, created for the purpose of passing on trade agreements as to prices and oitfpitt, would look with favor on an agreement betweoi manufacturer of lumber to restrict the output of lumber to tfie actual needs of the country, and to leave standing in the tree any surplus rather than to have such surplus cut into lumber and rot in the pile. It would also undoubtedly favor a trade agreement establishing values for lumber that would enahle the manufacturer to market k>w grade lumber. In no other way can cooservatkm of our timbor supply be practiced. If given the right to make a trade agreement as to prices and output, would the lumber manufacturers voluntarily and in good faith make and keep such agreements? Past experience would indi- cate that they would not. The woeful huck of cooperatkm among die manufacturers of 154 National Lumber Manufactursss' AasociATioir lumber is the most discouraginsT factor in forecasting betterment of conditions. It is a regrettable fact that comparatively only a small percentage of those engaged in the industry are active members of the various lumber asaodatioiis. Some of the greatest minds and most able men, for one reaaon or aaodier, are not affiliated and they are •o sadly needed. None of the reasons I have heard for Ms lack of cooperation are, from my point of view, convincing. If the association has faults, and is not producing desired results, it should be corrected, and it seems to me that the right course to pursue would be to become identified and take part in conducting it9 affairs along lines of coopera- tive constructive accomplishment. It is tme that on account of existing lawsy the activities of the association are neoessariiy Umtted, but it does perform many useful fonctkms, and it is only the lade of co6peratk» of all manufactnrers that it does not attain its full measure of useful- nw to the industry. All of the trouble we have had in the past and are experiencing at the present time is not entirely the result of prohibitory laws against trade agreements as to ou^mt and prices. The creation of an Interstate Trade Commisnon, or some such body, and the willingness of it to approve all sudi trade agreements as to output and prices as would be for the best interest of all of the people would not, of itself, be a panacea for the blight that has fallen on the lumber industry, and would avail naught except insofar as the lumber manufacturers by collective cooperation took advantage of this privilege, and it is not at all unreamable to fear that the lumber manufacturers would not voluntarily enter into such an agree- ment and faithfully adhere to its protisioos if tiiey could lawfully do aa One is fomd to tlds eondusion not only by a study of the history of the lumber business, but also by an examination of the present conditions. STANDAID SIZES AMD UKXIOEM GSADBS AlB NBCESSAEY Every manufacturer of lumber, I venture to say, reeogniaes tiie absolute necessity of estabtidiing and maintaining standard sizes and uniform grades. In no other way can large volumes of lumber be marketed. It would be impossible to think of returning to the chaotic condition that obtained prior to the organization of the White Pine Manufacturers' Association, and the creation of a bureau of uniform AfiVSBSE CONOZTIQNS IN LUMBER MANUFACTOin^ ZSS grades and standard siies. Before this tunc, as many of you wH remember, the nomenclature describing different classes of lumber had no real meaning, and the intrinsic value of a given class of lumber varied at eadi produdqg point It was customary for the hnnber bi^er to visit the producing mtflcet 10 make his purdiases, and to personally inspect the grades oi lumber established by each mill, and the kwest |rioe quoted for a given grade did not always indicate the best vahie. The consuming market was much nearer the source of supply at that time, but as the producing territory is farther removed now, it increases the benefit of established standard sizes and uniform grades to both buyer and setter. . Pnctically all sales of yeUow pine lumber are made on the basis of sizes and grades established and muirtalned by the YeUow Fiat Manufacturers' Association, and all disputes are setded on thb basis, and the buyer has no need to give thought to the quality of tlie lumber in considering prices, as he knows he will get from any asso- fia t^ mill as near the same grade as it is possible for different men, woridng muier the same instructk»s» to make it This work can only be canrkd on by an association. ovmkATum ever, represented Mr. Cooper, Secretary oi assodatiQa. WcMni Pine Ifaira&Kstiirers' Association BY A. W. OOOFXig or aiOXAKI^ WASH. Mr. President and Gentlemen ; Mr. Laird of our association was to have been here today, and I believe that he had prepared a p^)er; but unfortunately he was detained at the kst monicnt and could naitiisr get here nor get the pi^ here in tine. WiSTSiv Puts llAiiuFAcnnDBS' Association 159 The prosperity wbidi has seemed to prevail among die other dis- tricts does not appear to have reached us to any extent yet, but prob- ably it is for that reason that we are a little bit anxious. We feel that the great danger now is that the experience of the past will be repeated, and» carried away with this prosperity, that there will be the same old story of over-productfon. We have been suffering a little bit from that oursehres. In 19x0 our territoiy manufoctnred about MS^V'^'^VXXi feet In 1911, through the curtaUnent of the larger mills and ibt dosing down of our smaller mills, we curtailed to the extent of 350,000,000 feet In spite of that fact we piled up 150,000,000 feet of stock during 191 1. The first three months of this year we reduced that surplus by one hundred million feet We, in our country, fed that we can deriire a great deal of good, from this Nadonal assodatkm, partkularfy m tiie line of being posted on national affairs ; and we want to express our strong approval of die step that the National is takuig to gather statistics of national stock, for we believe that with the compilation of such statistics and their wise use by the millmen of the country it will provide the best check at present possible on over-i»roductu)n, and in the securing of m proper vahie for our product We would like very mudi to see that enlarged. We also bdieve that the Natfenal assodatkm can accomplish mudi for us by keeping us in closer touch with national legislation and the matters that affect us, either directly or indirectly, that are constantly coming up. I might instance as an illustration of this the necessity for better basiking laws and a better currency system. That is affecting us now, because we have gone into tiie export business, and we find that we cannot carry on a large trade with fordgn countries, particuhriy South America, owing to our present banking system and banking laws. We also believe that the National associatbn should stand back of every effort that is made for securing an American merchant marine ; and we would be very glad to do our part toward the accomplishment of any of Uiese tfihi0k [Applause.] Pbbsidbnt Gbiogs: I will ask Vice-Preddent Conrad to take the chair while I respond fai bdudf of tiie West Coast Lumber Manufsc- turers' Association. Vice-President Conrad thereupon took the chair temporarily. West Coast Lumber Manufacturers' Association BY BvmmTT a gkiogs^ of tacoma, wash. I have had the opportunity of addresrag the conventioii on so many different occasions that I do not want to take up very much of your time talking about the West Coast association. I think one of the results of my coming here will be that imme- diately on my return, and after going over Mr. Keith's paper, we will chalk up our stumpage about $2.00 per M, because we think that is goiag to be the effect 4 cents per M of the lumber in- • spected. It is operated by a separate corporation, and has money in the treasury. We have finally, by combimng with the Oregon associa- tion tiiis year in their inspection Bureau, taken over the tally men and inspectors, and hired them directly in this Inspection Bureau. The bill for that of course is charged to the mills that adc for the inspection. It makes it an independent organization. We do not give in that In- q)ection Bureau any representation to the buyers or the Commission men. The integrity of the Bureau is absolutely established, and it gives the manufacturers who have money invested in the business and desire it, clean, fair grades, that start at the pdnt of shipment They started out determined on that policy. It was believed by some five years ago that that organization could never be made a success until we gave representation in that Bureau to the Commission men, for instance, in San Francisco, that handle a large amount of business, or to the buyers, but we have finally established it, largely because you cannot get lumber in any other way, and because we have made it so fair that we almost stand badcwards i of I per cent on the monthly payroll, thus, if the wage is $4 per day for 25 days $100.00. J4 of I per cent «= 50 c per month The employee pays J4 ^ much a l2yic per month Fund remitted monthly to the State Tfeasorer for one man's wage, in« chiding employer's share Ai^c per month The fund thus created is remitted to the State Treasurer monthly from all the industries in the state. It is beyond the control of corpo- rations, firms and individuals, and is useful only in case of ityury; the Workmen's Compensation 167 employee does not look to the employer, but both employee and cm- ^yer k>ok to the solvent fund for relief when the workman is injured —the time of his greatest need. All kinds of work has been dassified and rated about 10 per cent above actual needs, subject to such annual changes in ratmgs as may be found necessary by experience, and the burden is thus placed upon both employer and employee in a manner so just and equitable that the system is gladly welcomed by both. It provides the cheapest possible cost of industrial accident insurance for the workman, encourages bodi employer and employee to strive for the greatest safety in the workshop, thereby reducing the cost of msurance to botfi empk^er and employee to the lowest minimum and making for the maximum of efficiency, and enabling both workman and employer to operate in that intimate harmony so necessary to success. What is the argument? What is the proof? And what are the answers ? mCBMTAGBS Of CX>NTRI]!OTION ID CAUSES ^socia- ^otHf has recently conducted a fire-brand campaign from coast to coast, chiefly agmst the use of wood in any form ; and secondly, in advocacy of every form of substitute for wood in construction or equipment. He is so tickled with his phrase, "A shingle roof is not a coverh^ but a crime," that he never tires of repeating it or some variant of it Louis Amundson, President of the Peoples Fife, is credited widi inventing the "criminal match," whidi as a psych<^ogical great gun, is cilcuhited to destfoy a huge part of the lumber industry. All of tfie ammunition manufactured by the Fire Prevention As- sociations and propaganda is seized upon and appropriated by the manufacturers and merchants and exploiters of other competinr prod- ucts. "Fife Proof Digest" is a new and pretentiotts magaadne fostered FiEK Hazard Attack on Lumbb 173 by the Dahlstr(Hn Metallic Door Company. It prints in large type the following: ''If the lumber people eoaiite it advisable to spend fortimes to protMi tiMir busiaws it is proof enough that better materials are supplaatiiig the protels they produce and ssUL Bat th^ a^ sadsmriaf to ersato facto sm aot — laiiar forgotten ones. "The fire proof people have but to soq^fadn what they have and what their prodoeto aessoipiiA. Tli^ haie vsal faeto to briag eal aad ao thooiy." It would take all the time allotted to the opening of this discussion to so much as summarize the new magaaines and new departments of established fire msurance papers whidi have suddenly bufst into im- posing proportbns as mediums for the exploitation of devices and materials from which it is hoped to extract the nimble dollar of the advertiser. Let me quote just one or two items. Under the head of "Fire Proof Furniture Needed:" "merchants and manufacturers carelessly filling good buildings WITB BAZASDOUS EQUIPMENT AND FURHISHING^ ID THBEB OWN SBIUMBNl^ "It Is a bmmI glaring inconsisUncy in the great movement for fire protection and fire prevention that while every precaution has been taken to insure that buildings themselves shall not bnriL little or no heed has been paid to the nature of their equipnent. BidldiBg eoto are being revised constantly, creating fire sones and specifyiag what materiali shall or shall not be used in various classsa of buildings, but no restrictions are placed on the character of the interior fur- nishings. Buildings erected in the heart of the business district, where fires may mean financial disaster for thousands, and untold loss of human life — so con- ■tmetad that the building itself does not contain one square foot of eonboatiirie ■aterial, are filled immediately with the most inflammable types of furniture and equipment. The day of wood furniture should have psnsnd with the dej of old frame office buildings, years ago.'' You will not be disappointed if you find in the same paper adver- tisements of metal furniture, metal windows, doors and trim. Or this : "The question of how far the fight on wood will extend and to what extent weed will give way to brkkm aad tOe is a very interesting one. l^re proof con- structionists claim that we are entering upon a clay age and that in mj ymn virtually all buildings will be constructed of fire proof materials ... a frame building in a community of any siae will be con^dered an oddity and a freak.'' ooncbaled inmvEs The question arises: "Why do the underwriters interest them- selves in any reduction of Fire Waste?" Why do they not all main- tain the attitude of the agent referred to in "Fire Protection/* as fol- lows: "The attitude of many local agents is reflected in the ngly d a prominMt locil «fcnt to a ktlor ncJkiring his stAmcripdoa to Tir« 174 National Lumn UkKUWAcmEmf AstooATioii P rote ctkm ;' 'Not interested. Fire P rotecti on fliminatfi firei, reduces rates, and knocks out comniissk)n8.' There are several answers and all of them arc perfectly intelligible. First: Fire Protection Associations are just a name for another way of combining the insurance men into forms of organization not prohibited by law. Tkty are a refuge for pmkmfy dispersed or threatened organ- iiations of underwriters and agents. They are a ''get together** under a new banner, partly with the purpose of starting a back fire to distract the attention of the public, and partly with the purpose of maintaining solidarity of action against the unorganized public. Seomd: Tliey fear the spirit of rebellion which is spreading throt^out the country against their arhiteary and cosdy methods of dinng business. The public has begun to see and the insurance men admit not only that the fire waste is appalling but that the expense of insuring against fire waste is still more appalling, because uneconomic and avoidable. The insurance man's remedy is "Reduce the fire waste and the rate will come down." The answer of the public is» ''We have reduced the fire waste and your rates have not come down, excepting under the stress of competition of Mutnals and simihur organizations. Third: The plan of the underw r it e r s Is to direct attentioit to pattiaihe measures which will reduce fire waste gradually but not too fast; which will reduce fire loss more rapidly than the companies are obliged to reduce premium rates ; which will, therefore, result in better net profits and a slow readjustment of organizations and methods, at tile expense ctf the public. Fourth: Luniber and shingles are selected as scq>e-goats, be- cause of the appeal to the imagination ; because there are millions of buildings still standing and which will continue to stand and furnish an excuse for high rates; and because the insurance men are satisfied that in spite of their propaganda the people will continue to maintain a condition of fire waste profitable to the companies. TRB WWACB TO unom I stated earlier that lumhermen come in conflict witii tiie under* writers first at the point where they stop short of the public interest to serve their private interests. It is this greater conception of a social service and of the com- Fub Hazaid Attack ok Lomib munity interest, as distinguished from the selfish class interest, that we as lumbermen stand for. The underwriters make no pretense of givh^ statistics which justify their attack upon lumber and upon shingles. My investigation leads me to believe that there are no such statistics, but that in fact a proper tabulation of statistics will show that the denunciation of lum- ber and the indictment, cotored with fire and framed with epithets, is insincere and mdefensible, and that lumber is not guilty of the crimes charged against it. We challenge the underwriters to produce the statistics which justify or excuse these lumber hysterics. Let them produce such sta- tistics or stand convicted of deception and misrepresentation and du- plicity. A tUffist analysis of the insuraim con^anies' statistics and claims will help to an understanding of the subject Secretary Wentworth asserts that "out of ii,ooo fires in sprinklered buildings in the past fifteen years, not a single instance shows the fail- ure of a standard sprinkler head to extinguish or to hold the fire in chedc, except where tan^tered with or crippled by explosion." A per- fect record. He does not say how mai^ of these 9pnaidien wm m strictly fireproof buildings absohitely devM of wood, hut everybody knows that there was not one single instance of that character. Everybody knows that every such building not only had wood in it, but that only a small amount of water was required to dampen the wood so that the fire did not spread. George Ethelbert Wakh states: '*It is estimated that there are about 12,000,000 stnictnreg of one kind and another in this country, indndii^ the public buildings and mansions of the wealthy as well as the humble houses of the poor in the dtiet aad hi tbs eountry. Now in spite of our great strides in fire proofing there are not more than 10,000 of these 12,000,000 stmetoras whaeh Iuiyo beea built witk any Mrioas attenpt to make them fire proof." In my opinion, this is a raw guess, but take it at its face value. Compare the losses in the io,ooo fire-proof buildings during the past ten years with the losses in sprinklered buildings, as quoted from Secre- tary Wentworth above. Visions of wrecks of "fire proof" buildings and the values destroyed with them, and the lives lo^ in them, fill the memory of every man, from the Equitable Life Building, the Asdi Building and the Paiker Building in New Yod^ to the rmns of the iy6 National Lumber Manufacturers' Association conflagrations of Baltimore and San Francisco and the hmnaii detoli!* tion of the Iroquois Theatre fire. internal construction and cars of property greatest hazard With utter and reckless disregard of fact, frame buildings and shingle roofs are stigmatized as the cause of conflagrations. Of course, shingle roofs and frame buildings will burn, when dry and un- protected and exposed to fire. Of course, when frame houses are built widKNtt my considermtioit of fire haxard and are piled and jumbled tofedia* aad set up in rows ts tlioi:^ pkmncd lor a bonfire, there will be fire loss. This is not conclusive mt all that frame buildings or shingle roofs are responsible for the largest part of fire waste. The greatest values in structures and contents are not in frame buildings but in tsrick and stone and steel structures, and the greatest hazard under any condition is the internal construction and the care of the property. I am nol eonlendii^ diat an structures should be of wood and that no structure should be widiout wood. I am contending for a reason- able and sane and honest treatment of the subject, and for an appor- tionment of the hazard as it exists and not as it is misrepresented. There is no source of information to which lumbermen may turn and find statistics accumulated and tabulated to prove the case either lor or agaimt tibem. The partial statistics wUch ai« available and mfakk may be availed of by further research will certamly tend to show that the campaign against wood is not founded on fact. In the absence of official action by the Federal government or by the states to provide us with trustworthy statistical records, much can be done by lumbermen to prove their case, and much must be done by kmbemien, if anybody is to do i^ became tiie himber industry is the industry tfiat sufi^s most of all from tiie ^se propaganda. CONFLAGRATIOir We challenge the writers and speakers who loosely and carelessly charge lumber and shingles with the responsibility for conflagration to produce their records and submit them to analysis. The Bangor conflagration was a hay fire. The Chelsea conflagration was a rag fire. ^ i Hwno f^ was a oc i lul oid fire. San Fraaciioo was an eartfiqualce foe. Fam Hazard Attack mr LuMm 177 Chicago was a kerosene-cow fire. Toronto was a necktie fire. New Orleans was a terminal fire. Houston indeed started in a deserted dwelling, but the official re- port shows that it was not a shingle fire, and would have been an insig- nificant fire except for cotton. THK CRIMINAL MATCH A slight inspection of the Massachusetts Report, for example, makes this exhibit : In die case of 5,939 fires, exposii^ a valuation <^ $124,- 451,20a and cauuf^ an msnrance loss of $^>547>53745 The "Criminal Match" is charged with (about 7.2 per cent) 542,103.46 Leaving to other causes (about 92.81 per cent) $7,005,433.99 Careless smoking, heating apparatus or spontaneous combustion each contributed far more than the ''Crknmal Match." See ^ f dlowing tidble : MASSACHUSETTS STATISTICS FIBES CLASSIFIED BY CAUSES: Page 632. Fifif-Mh Ammd M^port, 1911: Miqr 6, lait Nwmiber of fires. Valuation. Insurance loss. $124,451^02 $7,547,537.45 524 7,575^ 681,602.51 73 387,075 18,527.85 630 7,886,064 260,350.54 488 1,975,039 93,925.92 S17 1,971^ 52,648J0 623,300 52,105.61 286 1,449,027 278,731.97 75 7^17,263 450,275.87 3^38,360 397,779.06 16,544,774 124,453.60 1,119,698 73,278.73 120 702,126 119,227.69 3,246,282 81,971.63 3,683,953 399388J2 Snap matches or sparks from xdmJU dwv* • • • 102 3,562,125 16.926.18 85 325,601 47,911.61 220 1,730,210 51,923.72 10,906,786 826,698.40 3,234,789 180,444.20 Bali aad wMtm 2.436iM»2 170,900^8 178 National Lumber Manufacturees* Association No controlling action can be taken without a working knowledge of facts. First, then, how can we get the facts which must govern us, and which will govern the public judgment? It b not necessary to wait until complete and verified statistics covering a Umg term of years and the entire country have been accu- mulated. Neither is it necessary to accumtdate statistics concerning the hundreds of classifications of property which enter tnto the cakn- lation of grand averages. There are twelve associations affiliated in this National Lumber Manufacturers' Association, with an annual lumber production of 15,000^000^000 feet of lumber, representing every zone of lumber pro- dnctkw and constnnption in tiie country, exceptfa^ New England and QuMda. Cooperation \jy this wideq>read and powerfnl aggr^tion, under consolidated leadership, having a comprehensive knowledge of the business and an adequate grasp of the situation, would produce widespread and early results. It would lead to a coordination of effort not only with associa- tkms of whdesakrs and retailers and of the class organizatk>ns of woodworkers and fnmitnre Victories* implement and vehicle manufac- turers, etc, tmt through the edncaled intelligence and tiie awakened conscience of this nucleus of men in eadi comnranity the property- owners of every kind would soon unite with the movement and take into their own control the function of adequately conserving prop- erty and life, and of economically and equitably distributing the imavo^able loss. The resultii^ economies to the nation would in a few years amount to hundreds of millions of ddlars. Not only would the cost of insurance be reduced at least one-half, but the uncaku- lated saving of uninsured property, of interruption to business and commerce, and of life and activity which will otherwise be sacrificed, would be of momentous importance. FIGHTING STRENGTH The personnel, the capital and the values at risk in our industry greatly outclass the similar i^^gr^tes in tiie msnranoe industry. Vast as the figui^s are of insurance in force, roughly supposed to be about $50,000,000,000, 80 per cent of all of the insurance is written by a mere handful of companies conducted by a mere handful of men when compared with the great number of organizations and ^ msl army of men co nnecte d with our industry. Wmm HasMED Araacx oir f ommmt m On our iMe, in any confliot, after the terms are known, must be ranf(ed every knytt of insurance and every pmpci ty-owncr and cvciy man who is inspired witfi the social instinct On their side can only be massed the limited force which now profits by the perpetuation of conditions which are already the subject of revolution. This skows the utter absurdity of permitting the control of this pnUkm i» remain in the hands of undtrwnters whose selfish interest is opposed to the coaoununfty interest. The insurance organization has intrenched itself behind hundreds of defenses, including not less than 300 separate organizations sup- porting more than eighty insurance journals and covering every sec- tion of the country, with an unknown number of local boards responsive to their contrd. The country has been divided into a few grand divisicms which have operated widi something like independence in their several fields, as rehiled to the other grand divisions, but widi approximate monopoly within each grand division in dealing with the property-owner. ACTIVITY OP THE INSURASrCB ORGANIZATIONS Every day the organizations approach closer and closer to solid- arity. The Western Union, for example, controUkig about nineteen states, has phced in dmrgt of publicity and legislation a paid and trained insurance attorney, with all of the power of the organizations back of him. It is now proposed to nationalize the plan and to unite all companies under one organization to be managed by former Super- intendent Hotchkins, of New York, at a salary of $25,000 a year, and with at least $50,000 per annum for his expense account, and with the right of tlie otganiiatkm to assess the con^anies lor further sians die hasis of the business trttisMted by eadi. What show has ^e focal trade orgamzatk)n or die state political organization or the unorganized property-owner of any kind anywhere in conflict with that consolidated power and unity of purpose? Against this aggregation the lumbermen have set up a few toy organizations, under ike name of Mutuals, Uoyds, Inter-Insurers and odier cooperative forms <^ insurauoe. There were twenty^^^ i^diese crganizatkms at last accounts widi others m prospect They had a known aggregate of bnshiess in force of about $420,000,000; the volume of insurance in force in the eight Inter-Insurance concerns is not known. i8o National Lumber Manufactubbbs' AasooATioir The ridiculous inadequacy of four hundred or ive hundred milUcRit of class insurance to compete with or control fifty thousand millioilt of general insurance leaves no standing room for argument. But aside from the inadequacy of scope and capital, the very con- ception of these oompanici totally unfits tern deal with the kfftr proUon. Within two weeks or two months from tiie date of die organim- tion of a Mutual or similar concern, the managers and attorneys and clerks climb into the insurance band wagon and ride with the proces- sion. This is a perfectly natural situation, which has not had due con- sideration. It is a subject wluch deserves separate consideration. These organiaations, however^ if codperatiiig with the industry lor die benefit of society, nd^kt be of the greatest service. The data and the expert training whidi are in their cooird would be of great service to a delegate committee dealing with the insurance problem. COLLBCnVS INXBBB8T X » No progress can be made until the mind grasps the conception €i the whole fire proUem as a c ommunit y firoblcm as distinguished from a private problem. We are dealing with '^The Fire Hazard Attack on Lumber/' not at all with the cost of insuring lumber and lumber properties. The problem is, how to grasp the situation and to deal with it so that the demand for lumber and its products shall not suffer unduly from the ccmspiracy of the fire insurance propaganda and the exploiters of competing matoials. Legislation and dty ordinances are afready m eflFect and more, are promised whidi are uneconomic and against public policy, designed and fostered by those who desire to profit at our expense. Every city and every village presents the same problem of fire waste, when viewed as a collective proUem, that an extensive manu- facturing industry presents. There is no engineering or financial problem connected with the reductwn of fire waste and the economic construction and devdopment of a dty wludi is not invvrfved and has not been sdved hi indtvidnal plants. The greater loss of values by fire is not on buildings but on con- tents. The present system of extinguishing fires is respooi^ble for a large part of die km. Fnm Hazabd Attack on LuuHt lAi The New England Mutuals long ago worked out every feature of die problem of protection and proration. They aro oovmd by three simple terms: Enlightened engineering. Automatic sprinklers. Caro and siqiervision. Every town and every city under such conditions could in less than ten years reduce its fire waste 75 per cent, and its fire cost an equal amount, and all without increasing taxation or the cost of insurance. This is the step which the Underwriters oppose. This is no iridescent dream. I would undertake to do it for any dty wbkh will follow my direction, and I would advance the necessary money and take my pay out of die savings in insurance cost MEANS OF SECURING PRACTICAL REFORMS This would simply necessitate the cooperation of the princqMd insurance buyers in the place and a reasonable revisbn of the laws or ordinances, wherever necessary to serve the public interest Under diese conditions burdensome restrictions now imposed could be done away with, and individuals might build and develop naturally and along economic lines, and no existing industry, old or new, need su£Eer from arbitrary discriminations. This would invc^ve the expeoBt of investigating the fire record of the dty and of giving to each separate dty the best trained engineering skin lor die solution of its problems. The organization required would be merely the cooperation of the prindpal buyers of insurance contributing to a preliminary fund and cooperating to obtain the adoption of measures which nu^t be finally detefmmed upon. TWs would involve also the problem of building ordinances, of police and fire departments, of water supply, of supervision and inspec- tion, of statistical records, and of financing the total operation. It would not requiro the installation of ^rinldm in all plants or properties, or in every part of eveiy particular property, and it would not involve the present extravagant S3rstem of multiple water supplies. It should have the support of every tradesman or merchant who has to do with wood and its products. It would not be necessary for carpenters, painters, cabinet makers, and so rtation companies for lighter and, at the same time, strooger booces increase. Tests made at the Forest Products Laboratory show Hmt the ordtnaiy mffled box is ittlerior in many respects to improved types that are being intro- duced and It is nly personal opinion that the ordinary type of wooden box will lose its present position of leadership among shipping con- tainers unless its manufacturers are able to overcome sooie of its inherent defects. CAE OOMSTKOCTIOIf Appmdmatdy 4-5 per cent of the total hitober mamtfRtand, or ii955*ooo/x)o board feet, is used in Hie oqnslniclioQ of cars. TUs anaooitt is made iq> as f onows : The Lums&rmen and Wo(x>-Using Industries tgt 7.27 per eMt tstsl ftOm pise awnifMtmd MS3.S million b. f. 3.4 per cent total Douglas flr mannfaotnred 168.0 million b. f. 6.1 per cent total oak manufactured 271.8 million b.f. 6.1 per cent total yellow poplar manufactured 52.3 million b.f. Otiier apeciea at iadieated m TaUe S ms mmemh,t. Lumber used in car construction is coming into competition with stod nnder-framit^ and sled bodies. The competition with sled for under-frames and for passei^;er coadies is b ec o mi i y moce and mofe active and unless there is a change in policy on the part of tfie rwBr roads wood as a car material may soon be limited to use in box cars and for interior trim. FURNITUBB Three per cent of the total lumber manufactured is c ons u m ed by the furniture industry. This industry also imports considerable amounts of mahogany and other cabinet woods. The 1,348,000,000 board feet of domestic material consumed is made up as follows : 14.0 per cent of total oak manufactured 629 miUion b. f . 10.0 per cent of total maple mannfaetured 112 million b. f. 84.6 p«r eent of total birdi auAafaetBred. Ill million b.f. 13.9 per cent of total red gum manufactured 98 million b. f . 7.5 per cent of total yellow poplar manufactured 65 million b.f. 6.7 per cent of total basswood manufactured 27 million b. f. An JUn fpedM 806 nmm Kf. It is very noticeable to what a small extent the soft woods enter this industry. Sted is being substituted for wood to a moderate extent in die manufacture of certain classes of office furniture, and iron and brass are being laigely used for beds, but in general the fumitmne mdttstry off ers an eaco^enl market lor high grade hardwoods. VEHICLES AKD VEHICLE PASTS Two per cent of the total lumber manufactured, or 877,003,000 board feet is used in the manufacture of vehicles. It is made up priiicq[»]ly of oak, y^km poplar, maple; hidoory, fed gum and o^er species mentioned in Table 3.* Sted is beh^ snbsdtuted for wood to a certain extent in this industry, but such substitution is doubtless due more to the difficulty the manufacturer encounters in securing sufficient wood of the quality desired than it is to the superiority of steel. The remainder of the fifty-one industries mentioned in Table x consume relattvdy small quantities of material and in them the com- petition of wood widi oilier materials is of mhior snportaaoe widi respect to its effect vpon die general hmiber d tu a fi o n . •SMp^BMlseaaAm. National Lumber Manufacturers' Assooatioii Table 3 is of particukr interest in that it riiows the distribution of our most important species among the wood-using industries. A study of it brings out very clearly some fundamental difference in the prob- lem of marketing soft-woods and hardwoods. It appears that fully 91 per cent of the yellow pine manufactured, 89 per cent of the Doiig^ fir» wad 9B per cent of the hemlock are ocxisamed in boikling and oonstmclkm work and in the mamifactore of boxes. Large pro- portions of cypress, white pint and oditr conifers also enter these industries. In the building trades and in the box industry the cost of raw materials constitutes a comparatively large proportion of the cost of tiie finished products ; therefore, any rise in the price of raw materials has a pr opor ti o n ate^ laige effect on tibe cost of the finished artick to tiie OQOsiimer. Lumber has long been the material from which a house of any given size and finish could be built at the least cost to the builder ; and its wide use as a building material in this country has undoubtedly been more due to this cause than to its merits or demerits as a building material. In the case of reddences and other small buiklings, fire risk and dtmhffity become itroQg aigaments in favor of substitutes only m^am the retail price of lumber is such that the coat of a frame house equals or is only slightly less than that of an equivalent house built of brick, tile, or other materials. Those manufacturers of lumber who are largely dependent upon the building trades for their markets, should recognize this fact and devise ways and means of so regulating their selling costs that lumber will continue to be the material from which a utisfactofy home can be botk at a nHninwim cost to the bulkier. utiuzation of lumber for by-products The manufacturers of yellow pine in particular, and of Douglas fir also, have excellent c^portunities to divert much of their low-grade liunber into paper, turpentine, alcohol and other by-products. The writer touched on this subject in a paper presented at the last meeting of ^ YeUow Pine Manufacturers' Aasodatkm and urged the impor- tance of sndi devdopments to die owners of yeUow pine stumpage. The manufacturers of hardwoods are ftidng a much less difficult situation. Their products are used in a large number of different industries in which the cost of raw material is only a small proportion of the cost of the finished article. In these industries, viz. : furniture. The Lumbermen and Wood-Using Industries 193 vehicle, handles, and many others of minor importance, wood is used because it has properties which make it peculiarly fit for the purpose that it serves and not principally because it is the cheapest raw material suitable to the needs of the manufacturers. This diversity of use offers an excellent <^>portunity to the manufacturers of hardwoods to work up their logs not only into tiie standard forms of Imnber but also into numerous sizes of small dimension stock. It seems to the writer that it would be to the mutual interest of hardwood manufacturers and consumers to study this problem. A standardization of small dimen- sion stock of different species should result in greater profits to the lumber manufacturer through closer utilizaticm of his logs and in cheaper material to the consumer. [Applause.] Explanation of Following Tables. Table 1 summarizes results obtained from studies made by the Pore«t Service of the wood-using industries of 20 States. All quantities are expressed in millions of board feet. Similar studies of other States will be completed within the next six months. Table 2 shows the amount of different species consumed by the eleven most important wood-using industrir- m the 20 States eoTered bj Table L An qnaatities m ezprenod in milkvus of board foot •Table UL In order to estimate the total amount of wood eonsnmed bjr the eleven industries, listed under Table n, in the entire United States, the eapital iaTMted in the different industries of the 20 states was obtained from *the Census report; the capital invested in each of the industries in the entire United States was also obtained. It was assumed that the quantity of wood consumed in the 20 states would be to the capital invested in the 20 states as the quantity of wood consumed in the entire United States was to the capital invested in the entire United States. The last column in Table m contains the estimated consumption for the eiit'^e United States. The figures in the first horizontal line imder eaeh indnstzj excess the figures giTea la Table II as the pereeatage of the total weed e eaia— d hy film industries in the United States. The second horizontal line under each industry expresses in millions of board feet the estimated amount of each species consumed in the entire United States. These figures were obtained by applying the percentages in the first horizontal line to the estimated total amount of wood osed in the United fitates giwm in the last column of the table. The third horizontal line expresses the quantities shown in the second hori- aoatal lines as a per eent of the total amevat of eaeh speeies inaa i i fM t arei la liOi as reported k the Otmm iiporft. 194 National Lumber Manufacturers' AssoaATioN •••••• •••••• •••••• • • • • • Ala. GftL Omm. III. Ky. 1m. Baskets and fruit paekmgw 16.67 4.17 Boxes and crating 22.44 309.41 372.03 109.57 56.00 Om 18.62 0.65 24.41 407.83 14.86 8Mh, doon and general mUlwmdE. ..652.02 229.99 40.31 265.83 79.44 1,259.78 Vehicle and vekiele parU 7.59 3.13 4.39 57.95 59.44 6.48 Furniture 1.87 7.35 0.49 103.80 17.52 Farm implements 2.52 1.08 0.74 137.16 6.61 01m ami ^ea flzliirM 1.02 5.08 1.04 30.33 10.85 OJl Woodenwafa 0.81 1.75 3.28 Handles 1.73 3.48 12.48 35.67 Trunks 2.02 2.82 2.01 Ckain 5.01 0.08 1.08 10.80 0.40 Piano% atfaaa aad aaa. iaalnaMati 0.25 11.81 00.33 11.58 Boats 0.51 18.88 .... 1.08 4JS0 Dairyman, poultefar and apiarists' tnpplief 0.18 .... 48.18 ... Pietnre and faaej SMlilaii.... 0^ .... 39.94 ... Grain alaTalora 30.55 . . . Tanks 17.21 0.15 25.45 2.61 5.75 Sewing machine pwrta 20.80 ... Laundry maehiaaiy and acaworieo 0.01 0.03 8.41 . . . Electrical apparatus 0.04 0.70 7.60 ... Coffins, caskets, etc 0.89 2.60 .... 7.19 2.20 Screens, window and door 5.75 ... Signs and billpotting board U.10 .... 5.51 ... Greenhouse, conservatories, etc 4.97 . . , Machine parts other than electrical 0.25 0.55 3.00 . . . Well and road machinery 0.05 .... 2.63 ... l^NMrllng gooda 145 0.07 0.11 8.08 ... Cigar and tobaeeo bona. 8J0 OJl OJl 2.33 . . . Meat blocks 2.30 ... Elevators (freight and passenger) 0.43 .... 1.42 . . . Bef rigarators, kitchen eabiaata aad •afw LOO OJT .... 7.08 2.67 Toys • 0.67 ..... ...... Plumbers' woodwork • 5.47 Pulleys and conveyors 88J0 Brushes 0.01 Brackets, i iiiiMiiM, inaalator piaa Excelsior 5.70 Paving material Fattama OJO OJl Weighing apparatus • Printing material 0.01 0.29 Aeroplanes Slmttles, spools. bobUaa LIO US Boot and shoe fladings • . • Whips and canes and ombrella itieka Saddles and harness Matches Dowate • Fencing and gataa Miscellaneous OJS 19.11 1.69 8.58 22.08 18.75 TalalB 7I0J1 085.48 95J9 1,758J8 887.08 1^J7 The Lumbermen and Wood-Using Industries 195 TABES Md. Mass. Mich. Miss. Mo. N. H. N. C. Baskets and fruit packages. . 7.14 1.47 1.14 8.86 Boxes and crating 186.27 851 J4 232.11 80.80 111.66 109.07 08.00 Cars 29.67 11.13 51.49 Sash, doors, gen'l millwork.. 81.36 21.80 516.58 547.10 142.90 116.03 368.02 Vehicles and vehicle parts. .. 1.96 4.97 66.24 10.28 34.70 2.98 15.64 Furniture 17.77 48.14 81.48 10.28 28.17 4.00 182.21 Vam implements 2.25 16.61 0.80 3.09 0.59 3.39 Store and offica izlaiaa 1.00 UO 24.21 0.44 10.25 1.60 2.36 Woodenware 45.27 3.14 18.94 0.78 Handles 0.77 38.47 4.04 19.04 0.02 8.00 Tmaka * 14.65 4J8 Chairs 9.82 0J2 47.33 Pianos, organs and nras. insto.. 1.56 27.46 12.27 0.53 1.80 Boats 6.35 3.93 4.43 7.08 0.80 Dairyman, pooltarar ud a^- riats' aapplies. 2.56 ..... Picture and fancy moMiaga 3.40 0.13 Grain elevators Tanks 8J4 0J8 20.70 Sawbig BUiebiBa parts • Laundry machinery, etc 13.73 8J8 3 JO Electrical apparatus 1.01 Coffins, caskets, etc 0J2 7.70 4.78 Bvnnm, window and door Signs and billposting board Greenhouse, conservatories, etc Machine parts other tlian elec Wall and road BMehinary Sporting goods 7.16 0.96 0J8 Cigar and tobacco bo^ 8J7 1.48 5.76 Meat blocks Elevators (frt. and pass.) Bef rigeratoia, kttehaa eaUaaia and lalea... 3.24 35.63 3.33 Toys 0.93 3.71 0.72 Plumbers' woodwork 8.40 2.57 Polleya aad tomwtffm 8J4 8J8 Brushes L88 0.00 0J4 Brackets, crossarms, etc 8.42 Excelsior 5.90 3.91 11.91 0.80 Paving BUitarial. Pattarna • 0.42 ..... Weighing apparatus 0.30 Printing material 0.11 Aeroplanes 0.08 Shuttles, spools, bobbtna 5.62 11.71 8.48 Boot and shoe findiafi 13.03 14.65 2J1 Whips, canes, etc 1.83 Saddles and harness MatelMa 15.48 Dowels 8J3 .t ..... Fencing and gates Miscellaneous 14.88 24.59 68.43 6.05 8.10 14.99 Mala. .875.00 650.71 ym.n 018J0 448J8 408.43 070.10 196 Nationai. Lumbbr Manufactussm' Ai TABU I OftP Cl wlfd KATKW T«Bi. TeiMb Vt. 35.76 35.46 085.39 0.72 7.06 2.76 1.1 40.25 1.89 08.07 2.01 8.69 0.62 19.66 413.37 60.27 8«7.«4 17.49 20.21 2.40 8.07 2.99 15.36 0.77 iilii 0.06 Ore. Baskets and fruit pks. 3.10 Boxes and crating... 77^ 77.98 Cars 14.16 Sask, doon, ate 00.18 185.48 VaUelfls aad parts. . . OJO 33.49 Furniture 0.85 39.27 Farm implements 2.89 fitore and oi&ee izl. . 1.00 1.08 Woodeawaia 3.26 10.55 Handles 1.86 9.72 0.54 1.03 Trunks 2.89 0.60 CJkairs 0.70 7^ PlaBOfyorfaBi^a.lait Boats 14.00 1.78 Dairyman, poulterer & apiarists' supplies 0.58 Pietaie * fancy aldg. Grain elavatm Tanks 0.86 7.36 Sewing machine parts Laundry machry., ate 0.00 Electric apparatus Coffins, caskets, etc. . 0.47 9.49 Screens, wndw & door Signs, billpstng board Ornhse, eoaserv, etc Machine parts other than electrical. Wall and road mchry. ..... foorting goods 8.08 Cigar and tob. basua • Heat blocks • • > > * Elev. (frt. & pass.) Bafriimlar% ale 2.60 Toys 1.50 Plumbers' woodwork Pulleys & conveyors. 0.10 Brutkat OM Brackets, ata.. 5*88 Excelsior 4.32 1.10 0.03 Paving materiaL tf«M Pattaraa OJO ..... 0J7 ..... 008 Wail^iag apparatus • • • Printing material Aeroplanes Shuttles, ate 1J7 W7 OJO Boot ft shoe indiafi • • • • • • • • Whips, canes, etc Saddles and harness. . 0.21 Matches OJO Dowels MO ..... Fencing and galas 0.93 MiscaUaaaoua 0.09 13.79 47 J9 23.10 8.69 Wash. 6.51 95.04 20.74 80.88 ' 7.28 • • • • • OJO Wis. 119.27 iVcio 41.00 62.75 14J4 0.01 10.55 02.02 2.00 4J8 1.66 11.68 48J5 1.08 8.07 4J8 9.60 1.57 5.12 4.46 0.45 5.20 ..... 11.10 5.46 35.00 6.40 OJO 8.35 . . • < . 34.40 TolaL 08.78 2,867.48 080J8 5^29 J5 371.32 698.79 198J5 108 JO 166.39 139.18 60.19 157.46 140.07 82.06 50 JO 43.95 30.56 08J4 80 JO 29.65 9.44 62.79 5.75 5J7 407 OJO tJO 15.32 21.21 2J0 1J5 66.92 12J9 10.44 17.48 3.68 49.30 64.42 81.06 2.40 OJO 0.41 0J8 29.00 80.19 U3 OJl 15.08 2.83 0.93 330J0 T^Ms. 181J4 408J8 700J7 100.07 808.tt 170Ji OMJl IMjmM The Lumbermen and Wood-Using Industries 197 llABUi n Yellow Douglas Bed Plaa. Fir. Oak. Planing mill products and general millwork, sash, doors and blinds 3,245.19 269.20 94.23 Boaas aad crating 518.17 5J8 5.00 Gar construction 395.94 53.46 30.92 Vehicles and vehicle parts. . . 13.80 0.80 15.15 Agricultural implements 6.27 1.09 10.55 IHuiiilaia 4J1 IIJO 185J1 Musieal instruaaals 1.28 0.26 1.56 Woodenware 1.00 0.89 0.25 Ship and boat building 18.67 18.64 0.18 Ttaks aid Talisss. 1.05 0.02 OJO OJO Totals 4^01.31 366.54 284.64 White Oak. 120.74 2.19 91.86 81.82 31.83 226.60 10.26 2.10 7.44 • • • • 5J4 White Eastern Pina. t^rnaa. 254.88 700J7 22.24 0.61 3.25 7J5 7.18 33.45 2.56 4J0 OJl 02JO 78J0 1.30 0.17 • • • • OJO 8.77 • • • t 1.92 • • « • • • • • 580.08 1,045J9 172.46 Hard Soft ^ Yellow Bod Chest- Planing mill products and Seneral millwork, sash, oars and bUads 148J0 0.01 800.37 82.27 86.80 18J4 33.48 Bazss and crating 42.13 21.21 20.00 87.09 283.13 8.59 80.n Car construction 1.51 1.14 0.33 18.31 0.27 0.51 Vehicles and vehicle parts. 17.51 2.90 0.07 25.50 10.15 0.65 IJO Agricultural implements... 1J5 0.40 0.53 0.97 0.19 0.11 2.55 Furniture 65.38 7.95 2.00 36.43 55.07 18.51 20.14 Musical instrumoats. 20.62 2.74 0.07 20.68 3.51 25.07 2.77 Woodenware 26.78 0.12 1.50 1.80 1.27 0.25 6.27 Ship and boat building 0.12 3.10 0.03 0.06 0J7 Trunks aadTalissa........ 5.00 0.02 1.10 2.89 1.83 0J2 0.50 23.48 0.08 0.02 0.16 4.12 .... 6.14 Totals 436.16 37.53 335.75 282.13 401.40 67.82 116.52 ZASLB : *Birek. Planing mill products and general millwork, sash, doors, awl bllBds..... 70.96 Boxes and crating 62.71 Car construction 0.79 Vehicles and vehicle parts. . . 7.49 Agrieollaral imi^oBiaBta. . . . . 3.21 Furniture • 62.26 Musical instruments 4.97 Woodenware 17.19 Ship and boat baUding 0.34 Trunks aad TaliSSS.... Haadka 8J0 Bass- Sitka Loblolly wood. Spraeo. Ptae. Hamloek. Total. 26.78 84.82 606.14 130.66 5,660.53 51.50 57.51 415.94 162.44 2,556.65 0.72 0.01 17.63 3.14 640.08 2.93 0.38 2.72 0.42 184.97 3.35 • • « • 0.13 0.23 77 J7 15.12 1.07 11.28 5.17 674.07 5.24 1.41 0.60 0.52 112.51 36.22 2.23 0.90 0.37 132.59 0.45 0.12 0.87 0.11 55.18 13.05 1.49 lOJO 7.00 49.10 OJl • • • • . • • • • 0.50 44.26 Totals 888.22 155.87 00.04 1,000.77 810J0 10,108.18 Natkxkal LuMin IfANUVAcnims' Amooation a o la 3*> m dt O l> • • o o» 00 CM COfH 9 AO 5 to I § r-l op O Tt4 00 o o o o to fc- 00 o 3 <0 04 rH O 00 CO 5i 03 09 (D fH CO CO CO C4 • 00 O) 0» CO 00 fH 0» CM 0« fH O 0» • 00 t-. fH C4 ^ ^ CO OOO tetooeoot^ocMco • •••••••• O 04 O « t« 04 M to fH O fH fr» «0 iH -2 ooo S9 c>eo »2 ^ ^ n § 2 " ^ § s § § ^ ^ § I § ^ ^ «S M «^ e> q 0) ^ <^ 8| lp«fH to 00 1- as 2 i lO CM 00 fH CM CM O iH to to fH 6«« Thb AND Wood-Using Industkibs 3 i |j5 fH _fc* '^toO04 (OC4mAt> «OtorJ4oO O O to fH to 00 CO fH lo ©4 • • • ^\ ••••••• Ud^ OOCOOO) >A Oe0<0«0l0"*lo-^rH»000C0lflCM00 IO^CMOO>WOOO>totoCM©r-loCMO-^OiCOfH * S • • • ^5 o^ ----- ^ 'mm MOOiH A to CM 04 to CO eo Qo CO o ;OfHeo>Air£cMCM'dddt<^ 00 CM eg r-l lO CD A to A 00 00 104 03 O CO 00 W 00 CO ;Oo CO «0 <0 lO ^ to >ioa»eoQq«oioi>e4(QO'^e400§fHooSfHO|M Jh 8 cm o in in o -CM COt^fHCMOAfH a CM (M fH CO ^ gto CO CM CM tocMCOOl to to to CO 04 <0o'***'0IA0)t0C0rHOC0tH00e0lAC0t0C0-^O^ 04SAC0to^OfHOAOeMtoC4t»Aa0AfH^O 199 to ^ ^ «0 CM CO CM to ^ 00 iH rH fH d 04 00 i _ to 04 fH CO M fH OOA OOOIQtotD A COtO fH iQeM04aoM tp lO CO O lO M to CO lO «0 04 CMe0'<«(;H«iAfHfHOM9Q0 04A<^toa)00M fc* _ 04 CM A O4«0IO04 iq Aio .^fHfr«iH$no «0O4dtDIQ'^«O|»«6tHC4 fH^fH^ IHM 00 OO IH ^ 8 e4<<|i ^ ^ ^ to CM ^ OS 0> «0 lO ^ lO to CO to ^ CO lO ^ »o CM OO »0 00 CM to CM O 0> to 0> O « CO to to r-l CM »0 CO lH_iO to »0 fH O O CO r-l 05 CO O 00 fH OS rH 00 Tt" tH O iH O •••••••••• ••••••«•••••••••««» j; M5 ^ ■'il to 00 CO CO fH IHIO r-i^ toco O tO fH CO tO fco fc. tovHoiAoi to ff-i «-i ei9 ^ iO Q. to 00 ^ : CO _ 04 Mtoio to CM CO to 04 rH CO to CM 00 •> «o w m.j w« H o CM r-l CO GM uu > OMOSCMOSOOrHCOtolOCOOVtD 04 ^ OS tO CM O 04 lO • •»•••••••••••• -J • • • • • • • • • • ^^•^ ^ corHtotoo rjMfHiDa^eoei vhm iHvh »«< fHto CMCO Mfc* ^MfH S ^ 04 04 19 _^ „ ©4 to 00 00 lO lO O to CM CM 00 00 CO CO to A CO lO CO CO O lO 00 OO O r-) CO rH CM OO lO lOrHOfHCO fH 00 O tO 00 O ^ 00 M rH tO O lO 04 O t* tO 00 •^tOCM «0 OOQOCOllH 94 flM • • t>4 CMCO S»H 2 to OS to to CO © to O OS IC o t~ O rH rH to © CO 00 CM to © 04 ©A to to CO ^ rH OS to ift t« ^ CM 1^ ,-1 CO to ^ 00 to CO 04 ©.CM 00 00 © fH OS rH eO ©© rH ©© 00 to CM CO to • • • • • • • • • • ^ • • • • • • ••••••• . , CO rH © rtl © 00 CM CM CM »H CM fH ^ rHOQ CM O • • • oofeofe: 94 ^ fH to to • • • © CO Ol 5 5 aoo National Lumber Manufacturers' Association PlESiDBNT Griggs: Ml*. Rldtdftk, Executive Secretary of tfie American Forestry Association, who is present, has prepared a short address, and I want to have him take the floor now. Gentlemen, Mr. Ridsdale. The American Foreetry Aesodatkm BY P. S. RIDSDALE, OF WASHINGTON, D. C. Gentleinen: I represent the American Forestry Associatioii, an organization devoted to a work which is one of the most important for the good of all the people that is being conducted in the United States — the work of conserving the forests so that our lumber supply, instead of being rapidly exhausted, as it is now, wiU be renewed—will furnish wood lor future generations and also assure to the country one of its greatest sources of inoooie for hundreds of years to come. 1 ftnd there are some among you who are under a mis ap pre h e n ste n regarding the association, who believe that it is connected with the government, maintained by the Department of Agriculture, or is a sort of publicity branch of the Forest Service. I wish to explain right here that it is none of these. We do not receive a cent from the govem- meat, and, as a matter of fact, the government spends now for the Porat Senrice hr less than the woric of the Service requires, while Congress now proposes to cut this amount in half. The American Forestry Association is an independent organization the members of which are people who are interested in forest con- servation because they realize it is for the good of the whole people and a prime necessity; lumbermen who favor scientific lumber^ig and de^ new growA of ttmher eaoouraged, and the existing forerts protected from forest fires; foresters and others. aouKCBS or inoomb It is ncm-political, non-partisan, and, I may add, non-financial ; tfiat is, none of its officers except tfie secretary receive my sakuy ; all ^ money whidi it cdkcts is used in furtiiering the important work which it is doing--and its income is secured from membership fees, subscription to the magazine and donations by people and organizations realizing the absolute necessity and great value of encouraging the work which it is doing. You win realize the necessiQr of tins work when you study tiie figures forest experts. Th^ say that at the rate our lorealt ire now Ambbicak FcwsntY Association 20t being cut down there wiH be no staivfing himber of aervioeable iiae m the United States in from forty-five to fifty years. Tins does not allow for any increase in consumption, which is steadily increasing. This does not allow, either, for new growth by either natural reforestation or artificial replanting and it is this reforestation and this rei^i^nting which the American Forestry A ss o datk m is eneigetically md constantly urging. ACCOMPUSHMENTS OF THE ASSOCIATION For the past thirty-one years the association has been fighting. It has secured the passage of much beneficial forest legislation, both state and natkxial; aided in obtaining national fcMrests; has inH>ired n a ti o n al and state appropriatkms for the investigatkm of tree diseases, and has promoted the organization of many state forestry or ganiiatkms which have been doing an excellent work. In addition to tins it has interested thousands of men and women and even boys in forest pres- ervation and extended the campaign for conservation into every state and territory in the unkm. It continues to do this work to the very best of its resources, and coold do much more with an increased income. The association's chief medium of publicity is its magazine, Ameri- can Forestry, issued monthly, and which has won to the woric many thousands — including a number of members of Congress and State Legislatures, who shrewdly guard against legislation inimical to forest conservatio n , and vigorously work for l^fislatkni st^yporting it At the present tune the assodatkm is striving to have Congress appropriate $80,000 for investigatmg the destructhre diestnnt tree bl^ ; is endear oring to prevent Congress cutting down the appropriation for the For- est Service ; is working to secure an extensive national forest between Washington and Baltimore and is aiding in the organization and development of state associations as well as conducting its general woric for forest conservalkm. GROWTH, CONSUMPTION AND FOB LOSS r Let me briefly give you some statistics: The yearly growth of wood in our forests does not average more than twelve cubic feet per acre. This gives us a yeariy growth of less than seven bilUon cubic fe^ while there b cut twenty^^&ree bilUon feet, over tinee times the annual National Lumber Manufacturers' Association growth. There is damaged yearly by fire amounting to an average of $50,000,000. In addition to this, the loss of young timber by fire is unestimated, so is the damage done by fire to the soil, its property of reproduction often being entirely destroyed. Add to this fire loss the yearly loss by disease and to that the differeniDe between a year's cut and a year's growth and yon get an idea of how long, under existing conditions, the timber of this ooontry is likely to last. MEANS OF INCREASING PRODUCTION AND DECREASING WASTE Consider this also: That it is apparent by the introduction of proper forestry methods the annual {Mxxiuctrrity of our forests could be greatly increased, and the.yearly loss from fin, insects and disease greatly reduced. There are 235,000,000 acres of producing forest in this country, area the stand is so open that all the trees could be grown on 145,000,000 acres, which would be prod^cing at the rate of seventy cubic feet per acre annually. There is an unutilized area of 80,000^000 aores within our present produdi^ forest; ihcrt are 135,000^ acres of absolute forest liuid within our virgin or mature forests now unproductive. There are 90,000,000 acres of waste lands which can be made productive by plant- ing, and by fire protection. It is estimated that the total increase pos- sible in the productiveness of our forests is 25,850,000,000 cubic feet. Only 25 per cent of the yield of our present producing forest is saw timber. It can be made from 50 to 75 per cent through the con- centration of growth on the best trees by thinning and tfie hddmg of the crop until it readies good size. This woM mean an incmse, if an our forest land were productive, from 27,000,000,000 board feet to between 50,000,000,000 and 80,000,000,000 board feet a year. Consider these statistics and what I have told you about the American Forestry Association, and decide whether it is not valuable to you to do what you can to encourage and support our association in the work it is doing. Each year the expense of tiie work exceeds die r^iular income and the . The amount of wood treated in xgxx was 1^50^000 board feet Tins is of mterest to you, gentkmen, as lumbemen, because, first of all, wood preservation takes certain grades and species which you have difficulty in finding a market for. In the East it takes beech, birch and maple, and for crossties and other uses red oak. In the South it takes sap pine, and so on down the line. You are all familiar with this feature of it and know it is of gnat importance, becanie it opens out in a way, a new uuu^oet In thk eoonectkm there is one matter m which I think we ought lo cooperate, and that is specifications and grades. As I see it, there is a distinct gap between the existing specifications of your associations and the requirements of the consumer for treated material. That has come up in the case of every railroad company that has built creosoting ^ants and that watts to get pine which will treat better tiiaa h^her grade material, but which win have practically the same strength. The American Railway Maintenance of Way Association has been working toward the establishment of grades, and they have cooperated with you. Prbsbkvativb TttAncBNT C9 Fousr PnODOCIS 90$ •Mi I believe ; but I do not think ihey have gone far enough, and if it would be at all op po rt un e it would be very easy, possibly, to appoint a com- mittee on the part of tiie wood fmservers and tiie people who use tfiis material and handle it, to coopernte widi scmie of your committees in going into this question of specifications for creosoted material. FiaKPBOOFING QUAUTIfiS OF PBBSBRVATIVK T8SAIXN0 There is one other thing which is in the future. You are up against the fire question. You are up against the underwriters who are talking against shingles, for instance. I believe that the time is coming when preservative treatment combined with fireproofing chem- icals, is going to be accepted and used by you as lumbermen. Sup- posing the cedar Ma^t numufactuim of the Padfic Coast put on Ae market cedar shing]es which are treated with p icscrvativcs r i ui lly do not need to be — ^but, say that they advertised an absolutely fireproof shingle, and suppose that they would push it like the cypress people have been pushing their product what would be the result? Would not that counteract to a considenMe extent the attack against shiqgles? It is merdy tiie idea tiurt pre se rv a thrc treatment can be made ir^roof treatment under certam conditions, under limited oondhions, to be sure. At last, but not least, I would say that we have practically com- pleted arrangements with Mr. Johnson for running on the part of the Wood Preservers' Association a department in the Lumber World Review which will handle matters along the line of wood preservation. This will be the first time tiiat material oi this kind has been pre- sented where the lumb er m en can get at k. The Wood Preservers' Association publishes its annual proceedings, whidi have a limited cir- culation, but outside of that they have no means of intercourse on the printed page between members or between lumbermen who are interested in the industry. From now on;, within a few weeks, you will be able to get in touch with the wood praervmg hxhistry through one of your himber trade journals. PUSIDBNT QUGGS : We will contmue with the regular program now and get into the business part of tiiis session. The report of the Auditing Committee will be next on the program. Ma. Long: May I suggest tiiat we have tiuA demonslratkMi that was promised by Mr. Holt? Prbstobnt Griggs: I b^ pardon, Mr. Holt I believe you are to give us a demonstration. ^ National Lumbbr MANUFACruaEss* Associatiok Mr. Holt: I will give it to you now if you wish it. Ml. homQi That piqwr Mr. HoU is one to which he most hmyft given a great deal of tune, and it occurs to me tiiat it ought to have very careful consideration. I move that it be submitted to the Board of Governors to be disposed of as they think best. The motion carried, and it was so ordered. President Griggs: Mr. Holt» will you give us the demonstratioii right now? Ma. Holt: I win not take but a quarter of a minate. Yon have heard from Mr. Gilchrist the idea that we should develop some system of fireproofing wood. I would say that you have a system already developed which is all that is necessary, and which is cheaper than fireproofing. It will, I believe, do all the other things wliich are nec- essary in the house, as well as the stopping of fire. (Mr. Hdt took a mouthful of water, hcM up a small padcet of matdies, and with a sudden motion that would have don credit to a Chinese laundryman he discharged a well-directed spray of water from his mouth upon the matches, effectively imitating the action of an automatic sprinkler. He then added: "I defy aiiybody to bum those matches.") SacRKTARY SmTH: I dmde Mr. Holt wmM make a spod Chinese laundryman, don't you? The chairman of the Auditing Committee has submitted his report, and has asked me to read it. In connection with it there is also attached the exhibit of receipts and disbursements which I read yesterday. The r^rt is as follows: Report of Auditing Conunittee The Auditing Committee herewith submits the following report, which report covers the years ending March 31, 191 1, and March 31, 1912. As the hooks of the association were audited by chartered aoooont* ants, Westnman, Trader ft Co., of St. Loub, Mo., your committee did not think it necessary to make any further audit of the books except to verify same, which we did. A copy of said chartered account- ants' report is filed with the secretary and should be considered a part of this report. We eiramined expense vondiers and found cveiythii^ lo be in *9 unc. Report 0^ Auditing Committee In this connection we would recommend that the manager render his expense accounts a little more in detail, as this would simplify the bookkeeping and make such accounts a little more intelligible. We wish to commend the secretary's office on the efficient and conscientious way in which the accounts of the association are kept, and tlie ^kndid system of bookkeeping wliich is beii^ used. Respectfully submitted^ C A. Barton, Chairman. Mr. Barton : In justice to the Auditing Committee, and for fear that the question might arise in somebody's mind as to how the Audit- ing Committee could have audited the books of the association when they were only appointed yesterday, I beg leave to make this sugges- ticm. The same Auditing Committee that was appointed one year ago was i^ipointed at the hist sesskm, and while it did not have an opportunity to examine the books of the associatbn here, we did, how- ever, last month examine the books of the association in St. Louis, and anticipating that possibly we might be appointed again for this year we brought down the examination to March 31, 1912. Presidj^t Gricxss: I understand there is no report from the Committee on Constitution and By-laws ; we will, therefore, pass Ihat The report of the Nominating Committee will be next m order, unless we go into unfinished bu»uiess or new business. It was suggested a year ago that we eliminate the election of vice-presidents from each of the affiliated associations, who were an honorary feature, and instead of that elect three active vice-presidents. I had rather expected that an amendment looking to that would be reported by the Committee on Constitution and By-laws. Manager Bronson: me say m regard to that, that in con- nection with the call for this meeting, sent out by Secretary Smith, there was suggested an amendment to the constitution and by-laws to bring that matter into effect, so as to be in accord with what we felt would be the right practice, and which has been the practice for , the last year, but without constitutional authority. We felt that the constitutkm should be amended to acocmi with the practice. Notke of that proposed amendment was sent out vridi the call for the meet- ing, according to the constitutional provision that thirty days before the meeting members should be notified of any proposed constitutional amendment. Prbsidbnt Griggs: Have you that detail, Mr. Smith? iei NATmiiki* LuMBU Manotactubsbs' Association Sbcbbtary Smith : I do not think I brought it with me. I know it was incorporated in the aotkc thai went out I have not got that r%ht wM tut at Uns luo i nwit* PiosidbiitGiiqgs: Can yoofettfiat before ^session adjourns? We can in the meantime go on witfi thie nesct tninness. looK over my papers. President Griggs : Somebody ought to have one of those notices. The Committee on Resolutions would practically be the next committee to hear fn^n, Mr. Dalzell, chairman. Mm. Edgab Dalzbll: Mr. President and Gentlemen: The Com- a meeting kst night and another one this following is, whidi we will ndttee on Resof morning, and we beg to ask to have read. jfhc resolutions were read by Secretary Smith, as follows : Report of Resolutions Committee AMENDMENT TO SHERMAN ANTI-T&UST LAW WHHItBAH Anmrtcaa cttliiiii «iisa9sd In tnidt vitli oUmt couhMm sfs efln eoo^ilM to In ouuftsts imdmr oondlftlOBi eontniM lij trarti or eomlilBalioBi^ litt an t h& a mtit f m vroUliiled bjr osr mommi sntirtrHrt law igom offoeUng s combliisittoB In rootcsint of tnde '*wfia fot^ga oooBtdoib" from forming similar comblnstlons, thoroby belnf oompoUod to act Indl- ▼idually when dealing witli powerful comlitnstioni abroad, wlilch oonditloii li inequitable and burdensome to legitimate export trade in many BiiMi; T HERE FORE, We request Congress of the United States M to amflnd the Sherman anti-trust act in the above respect that associations and com- binations, not having to do with domestic trade, may, under proper restric- tiona, bo formed for the purpose of engaging in trade with foreign countiiei. PANAMA CANAL ZSOIBLATION While the Panama Canal was primarily designed for the defense of the coasts of the United States, it was, nevertheless, in fulfillment of plans for the development of the world's commerce and more especially for the com- merce of the United States. Therefore, so far as it can be done without ▼ioUtton of solemn treaties, laws and regulations for the government of the Oaaal AmOd 1m to fkiUMd m to aerve to the highest extent possible the itfiiPimt and wilfara of Uris eomttry, wblch la building the CanaL BbI iiiiea tha lawa of fha UMtad Stataa x«l«feiiig to shipping and iia¥lg»- tUm plaea • l a n d lc ap vpoa Amgrtcan oeaaa-booBA rtttpping; If tlia Gaaal te ofMMd m AMtaMy mrm tama to an Um wf^mtt any dfacrtwrtnatKm in fatw of aaj Ainariean ahlpi^ Hm Oanal will pnnra to bo of graatar propor- tionate benefit to foreign comitKlaa than to tlia IFnitad Stataa. THEREFORE, Wo petition Oongroaa of tlio UBitad Stataa fia IkaMiag laws for the government and oparatlon of the Canal to opon tte « f m fj fgm to American ships engaged in our coaatwise domaatie trada, baUarlag tlMH thereby the development of our shipping will be encouraged, trada lialwam the two coasts will be conducted more economically and the development of the natural resources of the two coasts will be greatly stimulated, whereaa without such diacrimination in favor of coastwise trade of the United States, the operation of the Canal will especially conduce to the development of tfea reeourcea of the countries to tl^ north and south of the United Statea. ooMnoii or rumm nr thb miiwhibippi river anb its tribu- TABXM, AMD nfMBDIATB RELIEF WHEREAS, The loss of life and property during the present floods in the BCiaaisalppi river and its tributaries has been unprecedented, which ilooda havo 209 2IO National Lumbbe Manupacturbbs' Associatiom produced a condition with which local or state resources are unable to cope, either in relief to the scores of thousands of people who have lost their homes mad livelihoods or promptly to restore the territory affected to productiveness; THEBEFOBE, The National Lumber Manufacturers' Association, in con- vention assembled, does most earnestly urge upon Congress the immediate adoption of all wise and generous relief measures, and, further, to assure, so far as congressional action may, the restraint, under wise counsel, of the great central rivera so that the preeent disaster may never be repeated; and we urge upon onr memberahip and Imnbermen everywhere to give support to prompt MMMBtt of rtitof and of vraeanttmi for ImMHIb ' OBQtfftASXOlK OP IMJUKIOUB JLMBWll WBBBEA8, Many of the insect pests and j^aiil diiesses, inflicting nntold loMi apoii Hm tonm nd aniailtm of flM Utaittd 8tett% htkw boon iHyostBB ihNMB o^Imhp oowtilMi obA bovf 010 beCfl^ fiflyocted^ ooobSbb Ute ■^j^MdHwo Of fltfUoMi Of Mian 1»y ttM KoHmial govoninwit> Ite itoltf aad MMfolttlMtor UMlr eosM; bo ii BO faptfttllBB Of BBMiy olod^ oBttiBii or oay oHmt ocUgIm or mbMH by wMUA n^a^ Mite flM i Btfodl f io d ort l i O Bi» aad as tbo npnMBtiiliMi of ovr oiBUBtrolil i ftf dlliplooMMIo Inttnoli obriod lovriioo lyooiil ** ** « » i i »g cr Q^OOiOl OQ^WllBOOf B o iflt e logolaOIOBo tho diplomatle oad ooBoOlar oervleo of tho nborilaailo clasMS so that appointment to them may bo made only npon f odml «Bmlna- tton as to the qualifications of ovpointees and that proauitioiis may be made on a record of merit duly ascertained, and urge upon the Congress of the United States the adoption of measures looking to tUo inpioveiMnt oad nf ognoxdiag of our national representation ob^pood. A-ynitTn^i r POBBBTIIT AflllOCff ATTON WBOKBiM, no ^wwricttii Foioiliy Aiiooiotioa 1m wotBtolaod oo o iFoiiBloiy BBbUo omrieo ofgoaHolloa to tmiMm tto p w pofotipa oad better 010 of oar forest roooiiroo% aad W wwwBAM r% 4m 4]|fl «M|ty iwroaiitootliflin vbiidi rooeboo aanoolo Mw mm A to the public in a popolor way regardlag forestry aad lumber matters, and maintains for thio parppoi a aMalldy magiitao kaova as "Aaiaricaa 7or- ostry,'* and WHEBEAS, The lumber industry as a whole is keenly interested in fflMflfc emifleffvaticiii. and in mmm ot erfinaifitlii g i mMi« wltb tbA nroblMBa Report of Resolutions Committee 211 Of fro proloetton, foroat taxation, freight rates, legislation, and conservative fluaagaBMBtaad fof oroolation, bo it XB80CVBD, Tbat tbo Hbtioaal Lnmber Manufacturers' Association aadorasB tbo votk of tko AmoHcaa FOrootry AoMNMon aad pledges its sup- port to tho caaao; aad bo it fUrtiMr BESOLVBD, That oodi BMmbor of tte Matioaal Zanaber Xaanfactonn' Association bo urged to afflUato with tbo AaiOEicaa Vbtaotiy a-^^^^ w bocomlag a Muber ttanof aad saboatfUag to ila macaHao. MnddMO-JN'TEAXm AMD O OMOHMTH ATZOV BATBB WHEBEAS, The attitude of the Interstate Commerce Commission indir cates that it is about to surround the milling-in-transit and concentratioa rates with so many restrictions as to make them of no practical use to lumber aad box shook manufacturers, and which, in addition, will undoubtedly ttu lt Wi**f «» *aa o n logs from the woods to saw mills; be it BBBOLVED, That it is the sense of this meeting that the secretaries of oa^ of tbo aflUatod aasodattons be asked to secure at once from their mem- bm iafon aatlOB aad argumonta and compile the same into a statement to be Fwaanlad to tho fittontato OoamMKCo Commission at the special hearing mtod hnabor aad bos OboOk naaufaetarers, to be held at Louisville, Ky. f"? :J^JI^L^ intbtfteaitfabiioforby having members appear before tiio Oonunlaiioa to givo orldaaeo Ohowiag tbo roaoons why our industry should bo granted a low ooaooatratioa rata on aiiU lofte^ cuU lumber and logs for manuf acturo by box ahook and aaw niU coneanii^ and tbat concen- tration rates on loga, mlU rofnao and eon lumbar fOr manufaetafo aro not and ataould not bo ronaidoiod aa milliag-iartraaatt latak NATIONAL CHAMBER OF COMMEBCE WHEBEAS, At the snggoatiOB of tho PtoaidaBt of ttio Dented Statea and upon the invitation of the Secretaiy of Ooaunono aad Labor; thaio ^—Trl Tfl in Washington, AprU 22, 700 or mofo r^roaontativo boalna» nwa fcZum parts of this country for the purpose of forming a national eoanaafeial organization, whose function should be to codpenita with aad adtfaa tto government departments upon matton afiOeting eonmofoo aad iiidniii, ^ whole; and "wwy ao a WHEREAS, As a result of the deUberations there was orgaaiaad The Chamber of Commerce of the United States of AmarloL vhooo mammm mm atatad la ita Constitution is as follows: ^, •JJ** *^ Association shall be to provide a national clearing consideration of business opinion, and to aawBO iy tod actton upon questions affecting the commercial interests of the «™aii^^ita. O^tBtattoaa of national importance shaU be considered. »' commercial and manufacturing organi- st, ^JST^ With tho wioua tmdoa, industries and sectiomi of tbo tho ^ ^i r S ^ ^ Aoifld bo a closer relationship between anoNBia aad tho diiwtliiMBt of Uio government oreated 212 National Lumber Manufacturers' Association 6ipecially to adviaet tiMm and that tlilf can only 1m dMM ttmgli otgia- Ml «fltet md tlM emllmi of » Mml-oaelal liody witli wMdi tlM mf m nmmt eta ooMBlt; tlniofoftt lio It BSSOIi'VBD, Tluit tte Vattaal Lnmbtr MtoiifaetaMKi' A i o wittHwi iMMl^ ffommnat tiM aetloii tlM VMHtait aaA floeMtMy VaM aai x«VMili tto Booid of Ooiranofi of ttia AM Orta t i o ii to toko odcIi action aa aagr neolt In thia aaa o cUt loa boeoalBf • MdMr of iSkm COUHibw of Oom- Mice of the UnitoA States. BE80LVED, second, Tliat we recommend to each of our ai&liated asso- ciations that they become members, thereby increasing the usefulness of the Chamber of Commerce, and affording them the opportunity to exyzoia them- selves on national problems affecting the lumber industry. WHEREAS, After having been under indictment without trial for five years, suffering the deep humiliation of unfounded accusation by the govern- ment and compelled to endure the business inconvenience and loss resulting therefrom, James T. Barber, of Eau Claire, Wis., and his associates, and Frank W. Gilchrist, of Alpena, Mich., and his associates, have been relieved of these indictments without being brought to trial and thus were not given opportimity to prove their innocence of the charges made against tiMi of securing public landa by fraud, but tlie goremmint depaftuMitt c onc o m od thoroby confonlng that tho Indtctmonta wan foond wtthont dno canaa and tacitly adinttting that indklmanU pracodad rather than foUowod the aoev- ing of TidaBco; TMMBMFCmM, Tho Vatlonal iMte Xannfaetoraia' AwwKiatlMi ntsnda to thaaa gantlann Ita sympathy and aost vlforondy piotasta agalnak action by any goiaum ant department so regardleai of the repnUtlon and welfare of its ctttMMb tad demanda that sneh 9«CBoeiitlon of dtlsens shall ceaso; recognizing, however, the fairness now animating the Department of Justice. RESOLVED, That the Secretary be instructed to forward att s st sd cflfiis af thia nraainbla sad raaolBtiai to the gsiitliBMin eoBCOmad. OOVFIDBNOB OITOXIAX&T JUBtlflJID WHEREAS, At the annual meeting of the Association a year ago a vote of confidence was given Mr. Edward Hines, our fosaar Psoiidint» iwon his - own statement before the Board of Governors; RESOLVED, That we now feel gratified at his complete exoneration by the committee of investigatlmv thns jnsltfying tho actimi of this Aasoda- tlon at its last mosHngi no thanks of the Associatloa are hereby eztanded to the oflLcora who have so faithfully and diligently served it during the past year, and especially to the President and to the members of the Advertising Committee for thair fMlhfol and mtiUliint haadllag of tho aattors aiitraitad to thair can. Rbpokt Nominating GncMiTTEE 213 We also extend our thanks to the Committee on Memorial to James Elliott Defebaugh for their self-sacrificing services which they have per- formed at much cost of personal time and expense, resulting in the dedication on May 5 of the memorial window in the Forty-first Street Presbyterian Church of Chicago, and especially thank Mr, L. K. Baker, of Ashland, Wis., c h ai rma n, and Mr. C. A. Bigelow, of Bay City, Mich., secretary of the oonuttlttoo* The Association extends its thanks to the lumber trade papers which have so loyally supported its plan for a general advertising campaign in behalf of wood, and wishes thus to express its appreciation of the broad attitude taken by these papers in regard to a matter which from a narrow viewpoint might seem to be inimical to their interests Action upon the foregoing report was deferred temporarily. The Chair called next for the report of the Nominating Committee, Mr. S. J. Carpenter, Chairman. Report of Nominating Committee Mr. President and Gentlemen : Your Nominating Committee have unanimously agreed to report for your consideration the following nominations of officers for the ensuing year : Pmbsident— E. G. Qbioos Taeoma, Wssh. First ViCE-pREsroENT — R. H. Vansant Ashland, Ky. SscoND Vice-president — J. B. Conrad Glenwood, Fla. THUD YiGE-PBisiDENT— B. H. DowNMAN New Orleans, La. MATOOBh-^. A. ItanuN..... Psssdena, CSsL Respectfully submitted, S. J. Carpenteb, Chairman. No other nominations offering, the report of the Nominating Committee was received and on motion the nominees reported by them were unanimously elected to the respective offices named for the ensu- ing year. Sbcketary Smith : Gentlemen, by your vote you have re-elected your President, Mr. Everett G. Griggs, for the ensuing year. [Ap- plause.] President Griggs : I understand that the entire ticket is elected. Secretary Smith: We ought now to take up the Board of Governors, ascertain if any changes are desired, and complete the election. 1 ' I 214 National Lumber Manufacturers' AssooAiiON PXBsn^NT Griggs: We will hear from the Cred e n ti als Com- mittee before we act upon that matter; I shall call for that report, Mr. Lewis Doster, Chairman. Report of Credentials Committee Mr. President and Members: Your Committee on Credentiak have the honor to report that the associations affiliated with this organization are entitled to vote by numbers as follows: Delegate§* Wotlmi Pine Maauffteliirera' Assoeiatioii S Southern Cypress Manufacturers' Association S Hardwood Manufacturers* Association of U. S 9 Michigan Hardwood Manufacturers* Association 6 Nortiiern Hemlock ft Hardwood Murafmetiuren' Aieoeiatioii S Northern Pine Manuf aetnfers ' Assoeiation 17 Yellow Pine Manufacturers* Association 43 North Carolina Pine Association (Inc.) 10 West Coast Lumber MaanfiwtiiTen' Aaaoeiation 24 PaeUle Coast Sugar & White Pine Manufactuien' Awoeiation 4 Geoigia*FlOTida Sawmill Asaociatioa (Inc.).^.... S It might be well to add for the infcmnaticm of those present that some associations did not appoint their full quota of delegates allowed by your constitution, or that their complete numbers are not in attend- ance, but the individual associations when voting on any subject will be credited with the above allotment, unless any divisions are reported. Re^>ectfully submitted, Lewis Doster, A. W. Coom, R. S. Kellogg, Committee. WitlM>ttt objection the report of the Credentials Ccmmiittee was received and accepted. The various affiliated associations having presented their nomina- tions for members of the Board of Governors, there being no conflict- ing nominations, on motion of Mr. Long, the following Board of Gov- ernors was duly elected, viz. : Board of Governors William laim Chippewa Falls, Wis. Northern Pine Manufacturers' Association. W. C. I*ANDON Wansau, Wis. Northern Hemlock & Hardwood Manufacturers' Association. ,C. A. BiGELOW Bay City, Mieh. Miehigaa Hardwood ManuftietnrerB' Assodatioii. Constitutional Ambndhsnts 315 W. A. Gn^CHlusT Memphis, Tena. Hardwood Manufacturers' Association of the United States. John M. Gibbs Norfolk, Va. North Carolina Pine Association (Inc.). P. E. Watmeb Pauway, Fla. Georgia-Florida Saw Mffl Aaaoeiatkwi (lae.). J. B. WHns Kaaaas City, Mo. Yellow Pine Maaafactnfera* Associatioa. A. T. GniAira. Hbaam, La. Southern Cypress Manufacturers' Association. B. M. Hast Coeur d'Alene, Ida. Weatem Pfaie Manafaetaraa' Aaaoeiatioo. L. J. WiNTWOBEH Portlaad, Ore. West Coast Lumber Maavfaetiiim' Aawtiation. G9QME X. Wendling San Franciseo, CaL Pacific Coast Sugar & White Pine Manufacturers' Association. Edward Hinss {ex-officio) Chicago, HL When caUing the list of proposed nominatioiis for Board of Gov- ernors, there was no r^resentative of the Redwood Mannfacturers' Association, and no nomination from them. President Griggs: I think the Redwood association has dis- integrated. I hardly think it would be w^ise to consider them as mem- bers, although the board has not yet acted on their resignation. Mr. Skinner put in his resignation some time ago, but we liave not had a board meeting to accept it. I rather think tfa^ wUl reorganize a^um. this year. Sbcbbtary Smith : Then they can come in again. Amendments to Constitution and By-Laws A motion was then offered, seconded and unanimously passed, that the proposed amendments to the constitution and by-laws of the asspdation be adopted as suggested in the official call for the ammal meeting. The amendments are for the purpose of making the consti- tution conform to the practice adopted at the time of the last annual meeting of the Board of Governors, viz. : That there shall be only three Vice-Presidents altogether, instead of one from each affiliated association, and that these Vice-Presidents, together with the President, the Treasurer, and the last retiring Presi- dent shall be ex-officio members of the Board of Governors. The sections and artides as amended are as follows: article III, SECTION I The officers of the Association shall consist of a President, three Vice-Presidents, a Secretary, a Treasurer, a Manager and a Board of r 216 National Lumber Manufactukebs' Association Governors, consisting of one member from each association member of this Association, and the ex-offido members hereinafter provided. article III, SECTION 3 A President, three Vice-Presidents and a Treasurer shall be elected at each annual meeting, by ballot, by a majority vote of all votes represented at such meeting. All of these officers shall be active lumber manufacturers. ARTICLE III, SECTION 5 The President, the three Vice-Presidents, the Treasurer and ibt last retiring President shall be ex-offido members of the Board of Governors. ADOPTION Of REPORT OE RESOLUTIONS COMMITTEE Oiairman Dalzell, of the Committee on Resolutions, moved the adoption of the committee's report as heretofore submitted. Mr. J. B. White moved to amend the report by the addition of the resolution regarding Mr. Hines, which is incorporated in the report of the Resolutions Committee. The motion to amend was seconded. Presh^t Gkiggs: Do I trnderstand, Mr. Dalzell, that yon are willing to accept that amendment and include it in your report? Mr. Dalzell: Yes. President Griggs: Gentlemen, you have heard the motion to adopt the report as amended. Is there any discussion at this time with r^fard to any of these resolutions? If not the Chair will put the question. The motion carried and the resdutions were unanimously adopted President Griggs: Is there any further business to come. before the convention? If not, I want to add one parting shot to this con- vention. The Board of Governors that you have elected have to face a very considerable obligation to carry on the work of this organiza- tion for the ensuing year. I have felt, and did feel a year ago when I was elected to the presidency, ^t I was confronted with a pretty serious condition. I felt it for six months. I feel a little better in starting in on this year with this Association. On the former occasion I did not know just where I was; I know today. I feel that I have the confidence of the Association, as testified by this reelection, and I am more than pleased to have this vote. Tenth Annual Meeting 217 I think, however, that the matter of advertising, the matter of expending money to carry on the detailed work of this Association assumed by the Board of Governors, as it has had to be assumed, must have the confidence of the entire associations affiliated here; and we have got to hear promptly from every President and Secretary in regard to certain obligations that we are assuming. We want to have you talk freely and frankly to your Board at all times, so that when we do call the Board together they can reflect the sentiment of the districts from whkh they come. I have every confidence in the futnre work of this Association, whether or not it is badced unanhnously by the affiliated organizations; but it would not last very long if any Association affiliated would resign because this or that little feature of tiie detail work of the Association were not carried out altogether in accordance with the sentiment of an individual. So I bespeak for the Natiofial Association the hearty cooperation of the affiliated assoda- tk>ns; and the work must be carried on dirough the Presidents and Secretaries and the Board of Governors. Gentlemen, I thank you. [Applause.] Mk. Holt: I want to call the attentkm of those who are here, and who may not know it, that I happen to be the Chairman of the Insurance Committee of the National Wholesale Lumber Dealers' Association. We want to cooperate with this Association in this insur- ance work. Here is a somewhat interesting report that I have, although I am like Mr. Gerrans, I am recommending myself to some extent, althoagh it is a production of this committee. Here was what was done in Louisville, Ky., in a very short time, putting the underwriter on the other side of the table and making him say why he does it, instead of letting him ask you to show why you did it. If anybody is interested in this report there are a number of copies here, and when they are gone there are more to be had if you will ask for them. Mr. White: I am interested in the matter of this report that has been read. I expect we all are more or less. Yesterday in remark- ing upon Mr. Kellogg's address, who said that the lumbermen were goats, and very likely they were dead goats, I said that about all we needed now was coffins. And I am reminded that they are now making concrete coffins— cement coffins — and robbing the lumbermen of a mar- ket for something like 750,000,000 feet of lumber every year ; and they claim, among other things, that they are fireproof. [Laughter.] Now we know the kind of life that we have led. I do not know what the aiB National Lumber Manufacturers' Association rate of insurance is, but if you have any policy that will cover that kind of a case I would like to know it [Laus^er.] Fusmasn Griggs: I am going to ask a former President of this association to pronounce the benediction of this convention. Mr. R. A. Long, will you close the convention? L'Envoi BY R. A. LONG, OF KANSAS CITY, MO. Mr. President and Gentlemen : I hardly know what you want me to say, or scarcely what there is left for me to say. The assembly has been small from the standpoint of numbers ; but, in my judgment, it has been great and influential from the standpoint of the papers resul and the speeches ddivered. I haire been especially impressed with the paper as read by Mr. Charles S. Keith. I think if we had not assembled for any other pur- pose than to have listened to that paper and to have meditated upon it, as I believe we have done to a greater extent than we would have done if we had read it at home m our offices, this meeting would have been a frnmouBced success. At this particular time it seems to me an excd- kmt opportunity for us to make use of the material recorded therein, to our great helpfulness. I am very gjad that this body has decided to spend quite a number of thousands of dollars in the distribution of this valuable paper. LACK OF CO-OFERATION There are some things, of course, that are discouraging in meet- ings like this. As I have sat throughout the different sessions that we have held, I have been impre^ed especially with the thought, as sug- gested in Mr. Carpenter's paper, of the lack of cooperatkm on tiie part of a great number of influential men, men who would be a power for good in this body if they met with us, but who practically show no interest in our sessions. This is discouraging on the one hand, yet, on the other hand, we should remember that in the various organiza- tions throughout this country, and throu^^iout the worid, you mi^t say, the work is usually done by a lew men. Comparativdy speaking, tfiere are only a few men diat do tiie thinking for the rest of the world; and so it seen» to me that we should gather some encouragement from that thought. L'Envoi 219 I think we should attend these meetings from year to year, and while there are discouraging features that arise, yet, on the whole, we should be encouraged in the thought that we are in a quiet and humble way trying to do what we can in order to carry on an industry that is of great value and use, and in order that it may fulfill its place in the great industries of the world. I made the statement some years ago — and I believe more and more in that statement — that it would be a good thing for every business man in die world if once every year at least he were compelled to prepare a paper upon some important subject, for the reason that in the preparation of such a paper, necessitating his giving the thought and consideration to the subject, it leads him to make investigations that he would not otherwise make, and hence makes of him a stronger man mentally, more thoroughly acquainted with the affairs of the coun- try than would otherwise be the case. VALUE OF ASSOCIATION MEETINGS We find recorded in that book, which I hope we all read occa- sionally, this thought : "Forsake not the assembling, of yourselves to- gether." I believe that we are all agreed that that is a wise injunction, because through the assembHng of ourselves together we produce results that could not possibly be produced — I care not how much one may read — ^when we separate or segr^te ourselves into our single capacities. I believe freely in the fact ffiat in the touching of elbows there is a strength that passes from one individual into another; and we cannot touch elbows except we congregate together in these various congregational capacities. And so I feel that it is my pleasure and my prc^t to be able to assemble at least once or twice a year in such congr^ations of individuals as we find assemhled here, these meet- ings of the National association; and greater strength is obtained, if you please, Mr. President and gentlemen, through these assemblies and the assemblies of the National Lumber Manufacturers' Association than we could obtain through our individual associations — I mean to say the associations representing directly the particular industries in which we are engaged; because in this National association we find assembted together the best men of all of ^ese various assodatbns, represent- ing ideas that pertain to these various association matters. Through this cooperation of thought we reach a greater development of our minds than would be otherwise the case. [Applause.] 220 National Lumber Manufacturers' Association President Griggs: I would like to ask for a rising vote of thanks to Mr. DeLaney and his associates here in Cincinnati, and to this hotel, for their courtesies extended to this association. The motion carried, and a unanimous vote of thanks was returned to Mr. DeLaney and his associates, and the Hotel Sinton. No ItirUier tmstness offering, ^ conventioa adjourned sfm die. Delegate Attendance NOIffHIBN FINB MANIVACTUBIBS ' ▲S80CXATI0M. DSLMATIS. 7. A. MoCann, C^ookston Lumber Company Bemidji, Minn. B. O. Ghibholm, NieholsOUshdiBi Lumber Oompamy Minneapolis, Minn. H. R. WoERZ, David Tozer Company Stillwater, Minn. J. F. Wilson, Johnson- Wentworth Lumber Company Cloquet, Minn. H. C. Hornby, Cloquet Lumber Company CSoqoet, Minn. Lb L. Babth, Edward Hines Lumber Company Chicago, HL Edgar Dalzell, C. A. Smith Lumber Company MinneapoliB, Minn. C. A. BaktoNi Northland Pine Company Minneapolis^ Minn. E. & Omm, SoeNAiiy, Nortten Pine Mamfaetmni' AMociation Minneapolis, Minn noamnaN hhimok a habdwood ifANUFAcruuns' assooiaxion. IHsLMAras. C. H. WoscEST^ Worcester Lumber Company Chicago, 111. W. O. OoUiAB, w. 0. OnDar Lnnber Company .MMtfin, Wli. Al/RBNATBS. B. S. KsLLOGO, Secretary, Northern Hemlock & Hardwood Association WaoMMi, Vis. A. a WMiiB, J. W. WtUi Lnnber CooipaBy M a neafa a e, Midi. mOBIttAK HABDWOOO XANlTFAimjIBHI ' ASSOCIATION. DELOaATBS. Bruce Odell, Cummer-Diggins Company Cadillac, Mich. C. A. BtoELOW, Kneeland-Bigelow Company Bay City, Mich. W. O. Hull, Smitii-Hnll Company TraTone Ci^, Mleh. F. L. Richardson, Richardson Lumber Company ..Bay City, Mich. O. L. Labson, Boddey k Douglas Lumber Company Manistee, Mich. AlAnNAM. J. C Kmok, Seeretary, Midiigan Hardwood Mannfaetnrara' AMoeiation , Cadillac, Mich. Chaklis a. PbBiPs, Hackley-Phelps-Bonnell Company Grand Rapids, Mich. Delegate Attendance 231 yellow pine manufacturers' associatoon. Delegates. W. T. Murray, Fordyce Lumber Company Fordyce, ^k. C. S. Keith, Central Coal & Coke Company KaMas City, Mo. C. D. Johnson, Frost-Johnson Lumber Company ^.St. Loms, Mo. J. W. Mamin, Arkansas Short Leaf Lumber Company Pine Bluff, Ark. 8. H. Fullerton, Chicago Lumber & Coal Company St. Louis, Mo. B. A. Long, Long-Bell Lumber Company Kansas City, Mo. O. L. Benway, Natalbany Lumber Company Hammond, Lia. O. B. Slacoje, Louisiana Central Lumber Company -^-larks, J^a. J. B. White, Missouri Lumber & Mining Company t S. J. Carpenter, Tremont Lumber Company ^ "^^jS^ ' i** J. H. Berkshire, Ozark Land & Lumber Company Kansas City, Mo. BfeN & WOOOHEAD, Beaumont Lumber Company Beaumont, Tex. F. H. LAfnOP, Lathiop Lumber Company Birmingham, Ala. Alternates. W. G. Lovelace, Lovelace Lumber Company Brewton, A^. A. W. JUDD, Gates Lumber Company • • • . Wilnwr, A*. M. B. Nelson, Long-Bell Lomber Company Kansas City, Mo. Bom PwNnwwoN, Bkmntrtown ManuiMsturing Oonpaaj Bloaatatown, Fla. N0«KH OASOUNA FINX ASflOCIATiON. DiLKATIS. Horton OOEwm, Jn., Branning Manufacturing Company Edenton, N. C. Ira Johnson, Greenleaf- Johnson Lumber Company Norfolk, Va. W. B. Roper, Secretary, North Carolina Pine Association Norfolk, va. Guy L Buell, Montgomery Lumber Company Suffolk, Va. B. O. Camp, Camp Manufacturing Company Franklinton, Va. George H. Camp, Camp Manufacturing Company Pittsburgh, Pa. J. T. Deal, Cashie & Chowan Railroad & Lumber Company Norfolk, Va. Alternates. None. QSOSOIA-FLORIDA SAW MILL ASSOCIATION. DSLBQATBS. H. M. Graham, Stuart Lumber Company Brinson, Ga. F. E. Waymer, Union Lumber Company Jacksonville, Ma. J. B. Conrad, Bond Lumber Company ..CHsnwood, |Ta. E. G. mmmuL, Seeivtary, Qeorgia-Ftorida Sawmill Anoeiation. . JacksoavOlo^ Fla, Nopa. gOUTHBN 0TPBC88 MANUTACTUBttS ' ASSOCIATION. A. T. esHUNB, 8t Lottis Qjprew Company Honma, La. AxABHAns. NOM. BASDWOOD MAKUVAOmiUBS' ASSOOEAnOlf. Delegates. B. B. Burns, L. L. Ritter Lumber Company Huntington, W. Va. R M. ^^M»Tm Carrior Lomber ft Manufa^nring Company Sardis, MiM. Qmma E. W. Ldbrbkann, C. F. Lneinmaaa Hardwood Lsmber Company , St. Louis, Mo. am National Lumber Manufacturers' Association W. E. DdUliBT, Kentucky Lumber Ck>mpan7 GiadaMti, Ohio J* H. HnmiiMmin, HimmeUMfger-Hairiioii Ldmber Ck>mpany Cape Girardeau, Mo. W. A. Gilchrist, Three States Lumber CompaDy Memphis^ Tenn. & H. Yansant, Vaaaaat, Kitdieii ft Company Aibhuid, Ky. T. J. MoprETT, Maley-Thomp8on & Moffett Cincinnati, Ohio E. A. Lang, Paepcke-Leicht Lumber Company Chicago, 111. J. W. Daruno, J. W. Darling Lumber Company Cincinnati, Ohio GLAmni Ualkt, Ma% * Wcrti Evans^iUe, Ind. iMwis DosTEB, Soervbury, Hardwood MannlRetaiert' Anoeiation of the United Stateo GiBdniMiti, OUo Al/TBIMAVIB. A. B. Ransom, John B. Hansom * Coaipaij, Nashville, Tenn. C. Cbane, C. Crane & Company Cincinnati, Ohio W. I. BAitB, Barr-Holladay Lumber ComfKuy Greenfield, Ohio west coast lumber manufacturem ' assoclktion. Delegates. £. W. DnuRBST, Paeifie Natioiua I^nmber Company .Taeoma, Waah. E. G. Oueos, St. Paul & Tacoma Lumber Company Tacoma, Wash. John W. Blodoxtt, Booth-Keiley Lumber ComjMoiy Grand Bapida, Mieh. WESTERN FINE MANUFACTURERS ' ASSOCIATION. DlLBQATBS. A. W. Cocnm, Seefelaiy, Weattn Pine MannfRctPfera' Aaaoeiation AunnarATis. HoM* Officers. E. G. Griogs, President Taeoma, Wash. B. H. Yanbant, Yiee-Preaident Ashland, Ky. J. B. Conrad, Yice-Preaident Glenwood, Fla. George K. Smith, Secretary St. Louis, Mo. Leonard Bronson, Manager ChicagOi UL Board of Governors. C. A. BiGELOW. Bay City, Mich. F. E. Waymsr Jacksonville, Fla. J. B. Wam Kanaaa City, Mo. A. T. Gerrans. Houma, La. Edward Hines Chicago, Dl. B. M. Carrier Sardis, Miss. Attendance Artz, J. Elam, Pordyce Lumber Company Dayton, Ohio Baird, J. H., Southern Lumberman Nashville, Tenn. Barns, W. E., St. Louis Lumberman St Loiris, Mo. Barr, W. L, Barr-Holladay Lumber Company ..Greenfield, Ohio Barth, L. L., Edward Hines Lumber Company Chicago, HI. Bartlett, B., J. J. Newman Lumber Company Hattiesburg, Miss. Babion, C. a., Northland Pine Company Minneapolis, Minn. Benway, O. L., Natalbany Lumber Company Hammond, La. Berkshire, J. H., Ozark Land & Lumber Company Kansas City, Mo. Betts, H. S.jForest Products Engineer Madison, Wis. Budbkan, W. F., Supt., National Lumber Mannfaetorera' CVedit Corpora- tion St. Louis, Mo. BiGELOW, C. A., Kneeland-Bigelow Company Bay City, Mich. Bix>D6STT, John W., Booth-Kelley Lumber Company Grand Rapids, Mich. Jknsn , J. JL, Bla»lnim 4b Bolser Lumber Company Cincinnati, Ohio Botd, James, Lumber Trade Journal New Orleuis, La. Bradley, Edwaed C, Champion Lumber Granpany Cincinnati, Ohio Bremer, F. H., Grand Trunk Railway Cincinnati, Ohio Bronson, Leonard, Manager Chicago, HI. Browee, Charles E., Secretary, National Olaasilieation Ooounittee. Memphis, Tenn. Brown, Douglas A., Official Reporter Cincinnati, Ohio Bryant, D. H., Thomas & Proetz Lumber Company Jamestown, N. Y. Buell, Guy L, Montgomery Lumber Company Suffolk, Va Burns, B. B., L. L. Bitter Lomber Ck>mpany Huntington, W. Ya. Camp, George H., Camp Manufacturing Company Pittsburgh, Pa. Camp, R. G., Camp Manufacturing Company Franklinton, Va. Carpenter, S. J., Tremont Luml^r Company Winnfield, La, Carhek, B. M., Carrier Lumber k Maanfaetnring Company Sardis, Miss. Obbm, H. &, Seeietaiy, Northern Pine Maanfaetoien' Association .Minneapolis, Minn. Chisholm, R. G., Nichols-Chisholm Lumber Company Minneapolis, Minn. C(n* 9mm, E. A., Forest & Timber Engin^^^ * ' '^»'^^'^^?o, lU. ™iadelphia, Pa. Attendance 225 Vansant, B. H., Vansant, Kitchen & Company Ashland, Ky. Walker, J. C, Mississippi Valley Lumberman Minneapolis, Minn. Watmer, F. E., Union Lnmber Company Jacksonville, Fla. White, J. B., Missouri Lumber & Mining Company. Kansas City, Mo. Wilson, J. F., Johnson- Wentworth Lumber Company Cloquet, Minn. Williams, John E., American Lumberman Chicago, HI. WOBS, H. B., David Toaer Company Stillwater, Minn. WooDHEAD, Ben S., Beaumont Lumber Company .BeaisBum^ Texas WoMBBTB, C. H., Woreestor linmber Company diieago, HI. ALPHABETICAL INDEX OF SPEAKERS Barton, C. A 207 Betts, H. S 188 BiGELOw, C. A. 76-78 Blodgett, J. W 121, 137 Bronson, Leonard 29-52, 207 Carpenter, S. J 150-157, 213 Carrier, R. M 67 CuNE, McGarvey (Paper) 189-199 Collar, W. G 69-71 Conrad, J. B . . 149 Cooper, A. W 158-159 Corwin, Horton, Jr 121-122, 139-140 Dalzell, Edgar 208, 216 DeLaney, W. E 12, 79-84 Donovan, J. J. (Paper) 185-188 DosTER, Lewis 214 Downman, Robert H. (Paper) 157-158 Gerrans, a. T 68, 118- 1 20, 157 Gilcpirist, W. a. 183-185 Goss, Rev. Charles F 11 Griggs, E. G 12, 13, 16, 17, 18-28, 54, 56, 67, 68, 69, 71, 75, 78, 79, 84, 117, 120, 121, 126, 136, 137, 138, 139, 140, 148, 150, 157, 158, 159, 160-164, 170, 183 185, 188, 200, 203, 204, 205, 206, 208, 213, 214, 215, 216, 218, 220 Holt, George H 171 -182, 206, 217 Johnson, C. D 137, 139 Keith, Charles S 84, 85-117, 138 Kellogg, R. S 127-136, 203 Long, R. A 120, 206, 218-219 Nelson, M. B .72-75 Odell, Bruce 141 -148 227 228 National Lumber Manufacturers' Association PAGE Page, Paul E 60-67 Parker, F. E 15 RiDSDALE, P. S 200-202 Smiels, Charles F 13 Smith, Geo. K 16, 52-54, 56, 136, 206, 208, 213, 215 Sterling, E. A 204-206 Teal, Joseph N. (Report) 122-126 Wendling, George X. (Paper) 164-170 White, J. B 57» 59» i37» ijS, 216, 217 ALPHABETICAL SUBJECT INDEX Addresses of: Bronson, Leonard 29-52 Ourpenter, a J 150-157 Carrier, "R, M. 67 Cline, McGarv^ (Paper) 189-199 Collar, W. G 69-72 Conrad, J. B 149 Cwpety A. W 158-159 Corwin, Horton, Jr 121, 139-140 DeLaney, W. E 12, 79-84 Donovan, J. J. (Paper) 185-188 Dowmnan, Robert H. (Paper) 157-158 Gerrans, A. T 68, 118-120 Gilchrist, W. A 183-185 Goss, Kev. Charles F. (Invocation) 11 Griggs, Everett G 18, 18-28, 160-164, 216 Holt, George H 171-182 Keith, Charles S 85 117 Kellogg, R. 8 127-136 Long, Robert A 218-219 Neteon, M. B. (Report) 72-75 OdeE, Bruce 141-148 Page, Paul E. (Paper) 60-67 Parker, F. E 15 Ridsdale, P. S 200-202 mdelB, Charles P 13 Smith, George K 52-54 Sterling, E. A 204-206 Teal, Joseph N. (Report) 122-126 Wendling, George X. (Paper) 164-170 White, J. B 57-59 Addresses of Welcome: W. E. DeLaney 12 Charles P. Shiels 18 Addresses of Presidents or Representatives of Affiliated AasoeiatiinHi: Georgia-Florida Saw Mill Association (Inc.) 149 Hardwood Manufacturers' Association of the United States 79-84 Michigan Hardwood Manufacturers' Association 141-148 North Carolina Pine Assoeiation (Inc.) 139-140 Northern Hemlock & Hardwood Manufacturers' Association 127-136 Pacific Coast Sugar & White Pine Manufacturers' Association, Paper by George X. WendUng ~ 164-170 Southern Cypress Manufacturers' Assoeiation llKr-158 West Coast Lumber Manufacturers ' Assoeiation 160-164 Western Pine Manufacturers' Association 158-159 Yellow Pine Manufacturers' Association 150-157 Adjournment 220 Admw Conditions Affecting the Lumber Industry : Address by S. J. Carpenter 150-157 Cooperation • 150 229 230 National Lumber Manufacturers' Association PAOB Infonnatioii of Association Valuable 157 Lumber Manufacture Unprofitable 152 Trade Commission Advocated 153 Wasteful Meiliodi 1S8 Adrertising— Lumber Yersus Its Siil»titat«i: AddreM of Manager Bronson 35 W. E. DeLaney 83 President Griggs 27 IVffeit Products ExpofdtioiiSy ete 49 Pliper of R. H. Downman 158 Report of Committee, A. T. Gerrans, Chairman 118-120 Amendment of Constitution and By-Laws 807, 208, 215,216 AneBdmoit to Bhermaa Anti-Tmit Law (Bewliitioii) 109 American Forestry Association; Address by P. S. Ridsdale 200-202 Beiolution of Endorsement 210 American Wood Preservers* AMoeiation : Address by E. A. Sterling 204-206 Appointment of Committees. (See Committee Appointments.) Association I Represent (The) ; Address by W. E. DeLaney 794B4 Att«idaBce at Convention 223-225 Attendance of Delegates 220-222 Auditing Committee: Barber, James T. (Resolution) , 2J2 Blue Book of National Lumber Manufacturers' Oiredit Corporation 27, 53 Board of Governors: Election of • 214, 215 Meetings • • * tl Box Classification... Jj> Bulletin of Association • Bnresn of Corporatioiis' Investigation and Report, ete.: AddnSB of Manager Bronson 46 President Griggs Charles S. Keith W Uort to Seeore Beport 21 By-Prodoets Canadian Reciprocity: Address of Manager Bronson J J S. J. Carpenter l^* President Griggs 21 CSassification of Boxes: njfK Report of Committee .»n-#o CSassiieation of Lumber Combinations, etc., in the Lumber Lidnstrj: ako^ka Address of S. J. Carpenter ViW ii* 11? Charles S. Keith IW, IJJ Resolutions on Am«idm«Bt to Stwrman Law w Oom^tee Appointments: Auditing 22 Credentials "*'* Nominating ' ' ka OAeers' BeeonuMndations • ^ Resolutions • • • " * ' * \ Committee Btports. (See Reports of Committees.) Ai^HABsncAL Subject Index 231 PAGE Concentration and Milling-in-Transit Rates 69-72 Resolution GonservaUon Committee Report Conservation of the Forests. (See Forest Conservation.) Constitution and By-Laws Amendment 207, 208, 215, 216 Consular and Diplomatic Service of the United States (Resolution) 210 Oodpetation: Address of S. J. Carpenter 150 Horton Corwin, Jr 139-140 W. E. DeLaney 83 President Griggs 163 F. E. Parker 15 With the Forest Service 26, 41 With the National Wholesale Lumber Dealers* Association 15 Correspondence with the President 21, 46, 49 Gredmilials' Oommittee: ^ AppoiM ^ Report 214 Cut-over Land Problems: ••^ ,00 Address of J. J. Donovan 185-188 Presidoit Griggs 25 Beport of Conservation Committee w I>efilM»gh Memorial *oaA_ooo Ddegale Att«idance at Convention 220-222 Dmb^MBt of Cut-Over Lands. (See Cot-Over Land Problems.) Election of Officers •••• 213 Eleetion of Board of Governors »*» bments That Make a Successful Association: Address by Bruce OdeU \S Committee Work **' Concentrating Energies jjo Economies in Manufaeture • • • \li Marketing ^*^» Methods of Securing Benefits 1*1 Organization and Purposes f*^ Persimal Xnterest \^ Statistics Value of Meetings /« * * W ' ' L* 'r*LL Employers' Liability and Workmen's Compensation. (See WorinMtt's compen- sation.) Ethies of the Lumber Trade Bidiibits of Forest Prodnets: ^ Annual Shows * ^ San Francisco Exposition Hie Hanrd Attack on Lumber: 171 ift2 Address by George H. Holt 171 Elimination of Fire Waste Menace to Lumber i" " V m * i7?i Motives of Insunmee Companies Ooneealed Reforms * * * " Statistics j^g2 Summary 109 1 fit; ress of W. A. Gilchrist Attaeks by Insurance Companies :J°^ Fireproofing Forest Products J?Z Report of an Association Committee Fireproo&ig Forest Products: 2$$ NATiaNAL LUMBBR MANUFACTURERS* ASSOCIATION PAGE Address by W. A. Gilcbritt ; 183-185 E. A. Sterling 205 Tint Setsion H Floods in Mississippi Biw mad Tribataricfl (BaioliitioB) 209 Forest Conservation ^ 92, 152, 153 American Forestry Association 200-202 By-products 192 Cut-over lAnd D«vdopm«Dt 58 Forest Fire Preventioii and Ckmtrol , 25 Loss by Fires 201, 202 Besolution 59 Beport of Conservation Committee 57-(S9 Taxation of Timber 58, 188 Forest Products Exposition: Proposed Exhibit at San Francisco in 1915. 49 Propoaed Annual Shawm 50 Vormt Senriee: Cooperation wilh . . . ^ 26, 41 Laboratory 42 Publication on Tendencies in Forest Utilization 42 freight Bates on Lumber 80,67 Oeorgia Florida Saw Mill Association: Remarks by President Conrad 149 Gilchrist, Frank W., and Associates (Besolution) 212 GmdiBg and Inspeetioii. (See InspeetioB.) Hardwood Manufacturers' Association of tt0 U. Gl: Address by President DeLaney. . . . , 79-84 Hines, Edward, (Besolution) 212 ladiiatrial Woitei of the Wcnrld 22, 48 Insects Tnjurioni to Forests and AgrienltiirB 26 Besolution , 210 Inspection and grading: Address of S. J. Carpenter 155 B. H. Downman 158 President Griggs 161 Insurance of Standing Timber 45 Insnranee Companias'^ Attadc on Lumber 171-185 Insurance Organizations in Lumber Indnstry 162 Inter- Association Belations: Address of F. E. Parker * 15 Investment in Lumber Manufacture 22, 112, 113, 114 Invitatioa to Hold Next Annual Meeting in St. Louis 56 Invocation .' 11 Labor Problems 22, 43, 151 Logsed-Off Lands. (See Cut-over Lands.) Lumbar Priees: Address by B. S. Kellogg 127-136 Average Prices for Ten Years 128 Average Mill Values Compared 129 Average Prices of Turn Commodities 129, 180 Cost of Production and SelUng Prices 134 Public Utilities 135 Trusts 131, 132 Lumber Tariff r 21, 39, 158 Lmaber Tniil: Address of Manager Bronson * 47, 48, 49 President Griggs 21 Charles S. Keith 85-117 B. S. KeBogg ...181, m Alphabetical Subject Index 233 PAGE Bureau of Corporations' Beport, etc 47, 91 World Today Articles 49 Lumbermen (The) and Wood- Using Industries: Address by MeOarvey CKne 189-199 By-products 192 Distribution of Lumber Cut ; 189, 194, 195, 196 Distribution of Lumber by Species 197 Lumber Consnmed by Boxes and Crates 190 Building Trades 190 Car Construction 190, 191 Furniture 191 Magnitude of the Lumber Industry 80 Ibnager's Office 19 Manager's Report 29-61 Memorial to J. E. Defebaugh 76 Men or Trees? The Problem of Our Logged-Off Lands: Paper by J. J. Donovan 185-188 Michigan Hardwood Manufacturers' Association: Address by Representative Bruce Odell 141-148 Milling-in- Transit and Concentration Rates .69-72 Besohition 211 Mississippi River Floods (Resolution) • 2W National Classification Committee: Report of Special Committee 72-75 National Chamber of Commerce of the United States: Address of President Griggs 28 BqK>rt of Horton Corwin, Jr 121 Report of Joseph N. Teal 122-126 Besolution 211 National Lnmber Manufactmrera' Credit Corporation 27, 88 National Wholesale Lumber Dealers* Association: Address by President F. E. Parker 15 Nominating Committee: Appointed 55 Report North Carolina Pine Association (Inc.) : Address by President Corwin 139-140 Northern Hemlock ft Hardwood Manufacturers' Association: Address by Secretary Kellogg 127-136 Officers' Reports. (See Reports of Officers.) Officers Elected 213 Organization: t tan West Coast Lumber Manufacturers' Association 18, 160 Pacific Coast Sugar & White Pine Manufacturers' Association : Paper by President Wendling 164-170 Panama Canal Tolls, etc ^» Resolution ■^■■^ 209 Preservative Treatment of Wood 204-206 President's Address l^'^S Prices of: Fkrm Commodities 100, 101, 129 Lumber 97, 101, 102, 107, 108, 128, 129, 132 Thnber }22 Publicity (Also See Advertising) .37, 160 Railroad Matters: Address of Manager Bronson 81 President Griggs 51 Box Classification 72-75 Concentration and Milling-in-Transit Rates 09-72 aj4 National LuMnw Manufactuebbs' Assooation Oomitnietioii of Cars and Koad 97 9g 99 Freight Bates ............! .20* 57 Weighing Methods, BdonM, etc !..!!!!*.! !67! 68 Beciprocity Bill , • 39 153 Bedwood Manufacturers' Association . . * 215 Btforwtotioii Igg Beports of Coinmilteet: Advertising 118-120 Auditing ...206-207 Boat Claasifleation 72.75 Cioiiservation !!!!57-59 Credentials 214 Employers' Liability and Workmen's Compensation 60-67 Memorial to J. E. Defebaugh 75 Nominating 213 S^lroad 68, 69-72 Resolutions 200-213 Standardization 31 Reports of OflieerB: Manager Bronmn 29-51 President Origgs 18-28 Secretary Smith 52-54 Treasurer Freeman 136 Bepresentatimi of Aflsoeiatkm at GoiiTeiitions, ete 80 Beiolutions : Amendment to Sherman Anti-Trust Law 209 American Forestry Association 210 James T. Barber and Associates 812 Box Classification 76 Concentration and Milling-in-Traasit Bates. 211 Conservation Committee 59 Death of Eugene Shaw 66 Frank W. Gilehrist and Associates 212 Edward Hines 212 Importation of Injurious Insects 210 Mississippi Biver Floods 209 National Chamber of Commeree 811 Panama Canal Legislation 809 Railroad Weighing Methods 68 Thanks to Lumber Trade Papers 213 Thanks to Manorial Chnmnittee 213 Thanks to Officers and Ckmunittees 212 United States Consular and Diplonatie Sendee 810 Besolutions Committee: Appointed 55 Boport 809-813 Response to AddrtiBss of Weleonie 13 Boll Call 16 Seeond Session 79 Sessions of the Convention: First 11 Second * 79 Third ...150 Seeretarj's Beport 52-54 Shaw, Eugene, Besolntioa on Death of 55 Sherman Anti-Trust Law (Proposed Amendment) , 209 Southern Cypress Manufacturers' Association: Paper by B. H. Downman 157-158 8taadardlsatleiation — President — Frederic Wilbert, Plaquemine, La. Secretary — George E. Watson, New Orleans, La. West Coast Lumber Manufacturers' Assoeiation — Prasident — E. G. Griggs, Tacoma, Wash. Secretary — Thorpe Babcock, Tacoma, Wash. Western Pine Manufacturers' Association — . . , , President— Bay M. Hart, Coeur d'Alene, Idaho.; ; I t \ ; Secretary—A. W. Cooper, Spokane, Warii. . \ .* '. r National Lumber Manufacturers' Association PAOE Prices of Yellow Pine TimberUuid 89 90 Prices of Yellow Pine Lumber V/Z/wVio, ©V. ioo 'lOl Production of Different Woods 87 88 95 Bailroad Construction !!!!!!!!!!!!! 97* 98' 99 Belative Values of Various Commodities Compared. ! . . !i66. 101 102 ^^^^y • ; U4Cll6;il6 Trade Agreements 115 Total Product Compared to Total Y. P. Product. *"!*!!...'....: 105 Uniform Sins in Lumber Manufacture. (See Standardization.) United States Consular and Diplomatic Service (Resolution) 210 Utilization and Prevention of Waste. (See Waste.) Washington Workmen's Compensation Act. (See Workmen's Cmnpensation.) Waste in Lumber Manufacture: Address of S. J. Carpenter 159 153 W. E. DeLanev ; President G r iggs .*].*!!.*.*.*!* 22 K. s. Kellogg 130 p. S. Bidsdale £02 Weighing Methods of Railroads: Report of R. M. Carrier Report of A. T. Gerrans 68 Statement of Joint Ciommittee (Besolution) 68 Welcoming Addresses: W. E. DeLaney , 12 Charles F. Shiels ^ 1 ! ' 18 West Coast Lumber Manufacturers' Assoeiaction : Address by President Griggs 160-164 Organization jg Western Pine Manufacturers* Association: Address hy Sesretarv Cooper 158-159 Wood Preservation 204-206 Workmen's Compensation and Employers' LiabiUty: Address of Manager Bronson 33 Pr^ident Griggs ' * . 24 George X. Wendling .164-170 Beport of Paul E. Page, Chairman of Committee .60-67 World Today Articles on Lumber Trust , 49 Yellow Pine Manufacturers* Association: Address by S. J. Carpenter 150-157 COMMITTEES 1912 Conservatioii J. B. White, Chaieman Long Bldg., Kansas City, Mo. B. A. Long Kansas City, Mo. William Irvine Chippewa Palls, Wis. J. A. Freeman Pasadena, Cal. John L. Kaul Birmiagliam, Ala. Advertising and Publicity E«eciitiire A. T. Oebbans, Chairman Houma, La. C. A. Barton Memphis, Tenn. George E. W. Luehnaann St. Louis, Mo. J. B. White Kansas City, Mo. George 8. Long Tacoma, Wash. Advisory Georgia-Florida Saw Mill Association — President— J. B. Conrad, Glenwood, Fla. Secretary—E. C. Harrell, Jaeksonville, Ha. Hardwood Manufacturers' Association of the United States — President — W. E. DeLaney, Cincinnati, O. Secretary — ^Lewis Doster, Cincinnati, O. Michigan Hardwood Manufacturers' Association — President — Charles A. Bigelow, Bay City, Midli. Secretary — J. C. Knox, Cadillac, Mich. North Carolina Pine Association — President — ^Horton Corwin, Jr., Edenton, N. C. Secretary — W. B. Eoper, Norfolk, Va. Northern Hemlock and Hardwood Manufacturers' Association — President — Edward Hamer, Chassell, Mich. Secretary— R. S. Kellogg, Wausau, Wis. Northern Pine Manufacturers' Association — President — T. L. Shevlin, Minneapolis, Minn. Secretary — H. S. Childs, Minneapolis, Minn. Pacific Coast Sugar and White Pine Manufacturers' Association — President — George X. Wendling, San Ihrancisco, CaL Secretary — R. W. Landon, San Francisco, Cal. Southern Cypress Manufacturers' Association — President — Frederic Wilbert, Plaquemine, La. Seeretaiy— George E. Watson, New Orleans, Ija. West Coast Lumber Manufacturers' Association — President — E. G. Griggs, Tacoma, Wash. Secretary — Thorpe Bal^ock, Tacoma, Wash. Western Pine Mannfaetnrers' Association — President — ^Bay M. Hart, Coeur d'Alene, Idaho.; Secretary— A. W. Cooper, Spokane, Wash. : ; ' • ; 238 . Committees Ydlow Pine Mannfaeliuren' Afsodatioii — Pre8ideiit--Samuel J. Carpenter, Winnfield, La. Seervtaiy— 0«orge K. Smithi St. Loniiy Mo. Railroad and Transportation George J. Popi, Craibman Stock Exdiaiife BUg., Chicago, 111. H. H. Foster Malvern, Ark. E. B. Wright Boardman, N. C. E. W. McKay New Orleans, La. Henry Ballon Cadillac, Mich. G. X. Wendlinf San Francisco, Cal. A. C. Dixon Eugene, Ore. J. L. Phillips Jacksonville, Fla. W. G. Collar Morrill, Wii. W. B. fmmmd., TowMtfl , Tmm. Standardigatioti John A. Bbugb, Chaiiman .Strader, La. J. W. Martin Pine Bluff, Ark. George W. Roper Norfolk, Va. W. A. Whitman Tacoma, Wash. Pred A. Diggina Cadillac, Mieh. & L. Wmm. Newport, Wash. H. C. Hornby Cloquet, Minn. M. J. Quinlan Soperton, Wis. W. E. DeLaney Cincinnati, O Employers' Liability and Workmen's Compensation Charles S. Keith, Chairman Keith & Perry Bldg., Kansas City, Mo. Paul E. Page Buckley, Wash. A. L. Osbom Oshkosh, Wis. P. E. Waymor Jacksonville, Fla. P. B. Babeoek.. Pitttburgh, Pa. Classification of Wooden Boxes M. B. Nelson, OBAlsaiAir Kansas City, Mo. G. X. Wendling San Francisco, Cal. W. H. Bissell Arbor Vitae, Wis. HoTton Corwin, Jr Btortwi, N. C L^^lslalivt William B. Stillwell, Chaibman Savannah, Ga. a I. Millard Norfolk, Va. F, A. Diffgina Cadillac, Mich. S. O. aSi ...Seattle!, Waah. 14 » 4 > \ » • » * ■ * < * 4 I « COLUMBIA UNIVERSITY LIBRARIES This book is due on the date indicated below, or at tlie expiration of a definite period aft«^«^,<>^i^™^jf; a« provided by the library rules or by special arrangement with the librarian in charge. MAW Miff IIMIID DATS OUK DATE BORROWBO DATE DUE . JAN n^A i 1 j C2S mi) )0M 1 _l ' / t EH PLEASE ntiNT AND BEAR DOWN FIRMLY .COLUMBIA UNIVERSITY LIBRARIES CHARGED • ■ 5 1977- Due CALL NO. 1)350 VOL. NO.. DATE (IF PERIODICAL). COPY NO. AUTHOR Ad/V l-4Jim*H^^- fh>scc. TITLE J BORROWER ADDRESS: CHECK STATUS: Q FACULTY □ ADMIN. □ UNDERGRAD. □ LIBRARIAN Q OTHER ^GRAD. STf^DENT. Q GEN. STAFF. T *'