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have made a by-word of the Golden Rule and distorted it to say,'Do others as you expect others to do you and beat them to it.'

"We have had the Southern California Retail Lumber Dealers Association and its successor. the California Retail Lumber Dealers Association, for twenty-one years past, and both have done much good in promoting good wilf and education among lumbermen and also in exercising some influence over legislation and other matters of vitil concern to the retail lumbermen of the state. Harrv Lalae tells us that we have forty county and district associations, all doing a good work.

"What we now propose is not another association', in the ordinary sense of the term, and will npt in any wise do the work of, nor supplant, any existing assotiation work, though the plan, if put into effect,. will certainly make more effective all association endeavor. This, then, is not just another association; it is something more definjte and concrete than the usual type of associalion can be.

"You are familiar with all those old sayings, such as 'being penny wise and pound foolish,' and-'saving at the spigot_ tho_ugh-wasting at the bunghole' etc. We ill agree that the_'Jonah' of the retail lumber business is price iut- ting. We do not ask long margins, though we do want to protect, our fair profit on goods sold, and that not just at intervals but steadily, all the time, and on all we sell, to the end that our business may be successful and respected (it is said no monuments are erected to bankrupts), and that we may make reasonable provision for or1. dependents, have a little left over for charity and philanthropy, and last, though maybe not least important- in these -days, a little income tax for Uncle Sam.

"'We deal with manufacturers and wholesalers who are u-sually on a uniform .basis of quality and price. Every time we make a purchase we really make i contract in which we, as retailers, are parties of the second part, though we had no voice when the terms of the contracl were made solely by the party of the first part, even in some lines to the point of dictation of resale price by the manufacturers and in about every such case the resale margin is fixed at an amount which is actually less than our cost of doing business.

"IJs-ually a seller will make terms with a larger buyer that we will not make with a smaller buyer and he is not so likely, if dealing with a large unified group of buyers, to insist upon sales polici,es and sales prictices that are not equitable to the buyer, so we offer for your consideration a plan for consolidated buying which we believe worthy of acceptance, for the buying advantage alone in most cases, though the greater benefit hoped foiis the influence of such buying volume to improve the relationships between re- tailers on the one hand, and the manufacturers and rvholesalers on the other.

"We think a judicious and equitable award of our business to those on whom we depend for supplies, recogniz- ' ing particularly with our favors those rvho act favorably toward us, will in a large measure allay jealousies and contention betlveen such manufacturers and wholesalers over the retailers' patronage, thereby strengthening our retail market. We stand for the plan of 100 per cent distribution through retailers.

"Let no one say he cannot afford the expense, for the saving of a just margin on only one thousand feet of lumber will pay the dues of a yard for a month, of lc per sack better margin on one minimum carload of cement, or 25c per square margin on 20 rolls of roofing, will pay a month's clues.

"As indicated by the notice sent to each of you, it has been our aim and desire to bring together under this plan, as many as possible of the reputable exclusively retail and independent yards. No doubt some have been missed that should have been invited and who may be included if you will kindly advise the committee of such cases. Some present may have a question of their eligibility under the requirements. All such, if any, should seek a personal interview with the committee.

"We shall not urge anyone to join in this plan nor shall we attempt to rush anyone to do so. We would rather have one hundred yards all thoroughly sold on the idea than to have two hundred and find one-half of them to be squeamish and lukewarm in their support.

"This organization will not assume the role of peacemaker between members, though any member showing habitual tendencies to follow practices injurious to the purpose and spirit of this undertaking will no doubt soon lose his membership. Any attempt to pry into a member's private affairs or any business gossip will be frowned upon by the organization.

"While this undertaking is strictly in the interest of the participants in it, nevertheless we want it disinctly understood that it is a pacific movement and not to be construed as a gesture of antagonism toward any manufacturing or wholesale interests, rvhom we verily believe will, in the end and as a natural result, benefit with us.

"\Me realize that ignorance of the true purposes of this movement, as well as misinformation and misconceptions, will have to be expected and we know that the man chosen for the position of purchasing agent and statistician will need to be a man of unquestioned integrity and one who can command the confidence of seller as well as buyer. He must also possess a thorough knowledge of the lumber business and the objects of our undertaking. He will need to display great patience and diplomacy in the exercise of his duties. The members of the executive committee also need to be chosen with very great care.

"The form of agreement rvhich we have had written and passed upon by an able firm of attorneys is of such length that it did not seem practical to have copies made for each person present at this meeting, though we are, in addition lo reading this agreement in your hearing, presenting each of you with a summary of. the salient and most important ooints contained in same."