ls The Lumbcr Industry \(/orth Savin g?

Bv l. N. Tate Generol Manager, \(eyerhaeuser Sales Company, St. Paul, Minnesota

Address delivered at the Annual Meeting o[ the \West Coast Lumbermen's Association, Tacoma, \Uash., January 29,1932

' Industries come and .go. They grow old and die as surely as do nations; and much more surely than most of us realize. They die when their products are no longer needed, or when they do not adapt themselves to changing conditions. Changes in style or the invention of more efficient substitutes bring every industiy in time to a very sober self-analysis and to the need for hard decisions. Lumber is at that point today.

Is lumber worth saving? That depends entirely on the price that must be paid to save it, Perhaps a plain statement of what has hap- pened in lumber thus far and what must be done to save it, will help us to reach the right decision.

We do not mean that lumber would not continue to exist anyway as a declining industry. The only question we are interested in is whether it will drag along on a reduced basis or whether we as an industry shall step out and do those things that will make it worth while to us and our successors-whether we are willing to pay the price.

It is well to start with the fact that the final decisions are alwavs made by the consuming public, and that its acceptance of any product is always along practical, economic lines. That style changes are inclined to operate against the old established commodities like lumber in favor of newer products that have the advantage of novelty. Therefore, style changes are operating today in favor of Stucco and Glass and Steel and Prepared Roofing.and lJncased Openings and Paper Cartons. The 6nal advantage is, we believe, with the traditional building material-and that in America is lumber. But that advantage exists only if lumber is adapted to modern conditions and can be proven as good; as dependable, as enduring, as carrying at least equal value, with other materials.

Lumber is one of the oldest American industries; and the older industries must adapt always to changed conditions or die. It is being constantly emphasized that these are changing times; that the only certain thing is change. Thus far the history of lumber is not esscntially a record of change. Lumber has not been progressive as other industries have been progressive We still make the same items in the same way. We still ship many of our products green when it is cheaper to ship them green, although in so doing we are discrediting our commodity, building a just prejudice against it, and when no material needs more care in manufacture or drying than lumber.

There have been no great improvements in lumber construction methods. We have no comparable benefit from factory fabrication. We have made no sufficient attempt to protect the. user in insuring that he gets the correct grade; that he is using the right size; that he has the best adapted species; that the retail'price is reasonable and in line with the general market. There has been no adequate merchandising of our product beyond the dealer.

It is self-evident that our house must be put in order; that our product must meet every test and be the best material for each specific use before the industry can justify national advertising or national trade extension work. We must have something to talk about, and we must be prepared to back our talk with performance in order to justify going to the public and demanding for lumber the preference it must have if our industry is to prosper.

We have purposely stated these facts strongly, but you will agree that they are correct in the main. Through all the years of comfortable competition while the American town was building and the American farmer prospered and could easily finance any needed improvements, lumber could afford to be reactionary, could afford.to accept the easy way and still sell its product at a profit It could afford to be very complacent and not to worry unduly about changes. That time is past, We have come to the cross-roads. We still have the opportunity of choosing which road we shall take. But onty along the hard road of change and readjustment ties even reasonabte success. The industry as a whole realizes the situation and we are reaching, often rather blindly, for those things that must be done now.

It is a definite advantage that we will listen and heed advice in times like these as we will not when prosperous; that lumbermen are quicker to recognize the true state of affairs, particularly the fact that competition is more with the outside world than among ourselves; that however fierce competition may have been in the last year between neighboring mills manufacturing the same species, there has been harder competition, though less seen, with mills of other regions manufacturing other species. And still harder competition with other materials outside of lumber. That the hardest competition of all for the customer's dollar has o-een against the automobile and the radio, attractive entertainment and clothing and travel features. Our internal competition is serious but not so serious as the external competition that so retards building. Unless the customer wants the things that our lumber builds more than he wants these other things our volume is reduced beyond the possibility of earning on our investment. To that extent we must think of lumber from here on as a luxury rather than a necessity.

Our National and Regional Associations are hitter organized to serve than ever before. They are ready to lead us along practical, progressive lines if we will let them. And particularly we are cheered by the fact that there is more fresh and courageous and constructive thinking being generated in various quarters than ever before. These factors are all encouraging. But they are of benefit only if used. We are afraid the old habits persist in the making and the selling of lumber. That we still expect the customer to come and take oui product as it is and as it has been all of these years. That will never happen again. But many attractive alternate materials are being perfected and are being really merchandised. The onty certain thing is change; and change is here.

That is the picture as I see it. That is a fair statement of where lumber stands today. But we must not leave our discussion there. What are we going to do? We can diagnose the disease, but that does no good unless we prescribe the remedy. Unfortunately, there is no one remedy; unless it can be described as a state of mind artd a forward-looking attitude that will go out and develop those specific things that must be done-and then do them. Without that state of mind the things will not be done.

In a general talk of this kind and in such a limited time we can suggest onl;r very briefly the things that must be done. Here they are as we see them.

First-Let's not fool ourselves. Let's not complacently die because we will not recognize the conditions and face them squarely.

Second-And just as important as a starting point-let's-recognize that the law of supply and demand ,is absolute, That we cannot legislate prosperity for our industry any more than we could legislate. prosperity for wheat, or for any commodity or utility; that r4rc rur wflcaf, or ror arry commoqrfy utl[ty; tnat pros- perity comes-only by t!-e_intelligent_ application of fundamental eco- perrry comes onry Dy lne lnrellrgent applcatron ot nomic laws that are well-known and that cannot be evaded or ugset.

There are two alternatives; production must be cut down or cons_umption must be ilcreased; but the balance between supply and demand must be maintained.

Third-We must acquire new respect for lumber, we must ship it only on grade, properly prepared. Some chbck must be imposed to see that the right grade and the right species are used. Thit prob- lem must be handled largely through the retail distributor; thich means that he must know his grades and his species and the uses for which each is best.

Fourth-We must organize to hold for lumber every possible use for which it is adapted or can be adapted. Many of the old uses are slipping away from us; other materials are ioming in, to replace wo_od crating and wood frames and sash and casing,'for ex- ample. We must not only hold for wood the present uses but we must develop new forms and uses. Just as an example: I have tong had the idea that it must be possible to perfect a new form of oanl eling for the outside walls of homes that would bring that use 6ack fo lumber and that would bring back to America the wood-covered home. How quickly that would solve the problem of a market for Selects. And this new covering for the side walls of houses would not only have to be developed and perfected, but it would have to be made the style. The importance of style work with our architects_ and.engineers has never been sufficientty emphasized. The architect has the ability to make or break any'of our ambitions in the development of lumber uses just as definilely as the stylist de- cides the materials that women will wear. Styles in houses are just as definitely fixed, and just as defnitely changed from decade to decade. No more important work lies ahead of our trade extension men than the guidance of the architect in the establishing of wood stYtes. ln an age of _advertising we must tell our public the story of this traditional building material, or we must not complain if thit public gets the idea that lumber was all right in a primitive day when-other materials were not perfected, but that it is now out of date and not deserving of a chance in the building of that new home. Unless we tell the story at considerable cost and with the best talent that is available-that is exactly the impression that the Amercian public will get and keep.

As the fifth remedy, we can only mention in passing the development of preservatives and fireproofing chemicals. We of the indrrstry know the fire-resisting qualities of mill constructed buildings. We know that preservatives have already been perfected which male wood construction permanent under almost any circumstances. We mus_t develop methods that will remove lumber from being classified in the public mind as temporary construction material.

And Sixth-We must not only be progressive but we must constantly advertise our progress until the public is lumber conscious, and realizes that it is not a crime to use lumber; that the supply is inexhaustible on the reduced basis that it is now needed if handled with reasonable care. Lumbei does not lend itself easily to exhibition purposes; it- does not carry the manufacturers' individuality as a more nearly finished producl would. It is unfortunate that the more we attempt to play the game and manufacture our lumber to standard,sizes and grades the more it looks like every other manufacturers' product, and so it is hard to exhibit. The result is that lumber dealers' windows and lumber conventions have become large- ly, exhibits ,of brick and tile and paint and everything but lumbir. That is unfortunate and we should not let it continul. We must find some way of making a lumber exhibit attractive, and then either the Regional Associations or the individuat manufacturers should exhibit lumber more often and in a better and more satisfactory form than has been developed thus far.

And because lumber is just lumber it is hard to advertise-but must be advertised., Thus far the trade has been educated in lumber but the public has not; and the public, not the retail dealer, is our real customer. There is a wood for every purpose but the public knows surp-risingly little about lumber or its uses. The real jtory of lumber has never been told, and yet that story is a most interesting one. A rugged, courageous industry carrying all the hardships of the pioneer; going t9- the far ends of the country-building ioads and dams and_ sawmils; ,taking chances, suffering- disappointments, and going back,and, finishing the job anyway. This is-history thai can and should be dramatized in a way, that will catch the public imag- ination and focus attention on tumber.

Just as important as the advertising itself is the need that the advertising shall be controlled and properly directed. There is too much indiscriminate advertising which does not get results. Advertising is a cumulative force, it must be consistent, must be built up from very simple statements on a progressive plan and it must be continued consistently if it is to get results for lumber.

The _seventh point is-That legislation is necessary to insure proper public forest management, and to prevent the dumpins of public forests to further increase production and competition.- Timbei conservation is a_public,.not a private duty. It is not fair to expect it to be practiced on privately-owned, heavily taxed forests boueht for investment purposes beyond the point that will yield a profit. It is fair -to expec.t that the public, tax-free lands wiil be prbperly managed and rrill be -held as the basis of our future supply. The important thing pertinent to our present discussion is the lait that these ptblic forests should not be sold indiscriminately to furnish additional competition, or else the private forest cannot continue to pay rts taxes.

We realize that certain public forests must be sold, When the trees are over-ripe they should be cut in an orderly manner. When certain operations are depending on public forests and have been built with the assurance that the forests will be released those obligations should be completed. But in the main there is already a surfeit of privately-owned timber carrying the heavy burden of taxation and fire protection, that must be liquidated. No longer is it possible to sell standing timber profitably. The only way it can be liquidated is by sawing it into lumber, and the withdrawal of the public forests s€ems to be the only measure that will restore a reasonable basis of values to the privately-owned timber, which is adequate to take care of the needs of the country for many years.

The conserving of public forests can be made a very popular rl€as: ure and will get public support much inore quickly than forbidding the importation of foreign lumber, which is also a most important part of this program. The first thought of the public is to let other nations use their forest reserves and save our own standing timber. The fallacy of that theory is that unless a fair basis of value is maintained for our own timber there is no use in saving it, and unless a fair value is maintained for it it means a tremendous waste because only the choicest trees and the most valuable species can be cut. All other trees will be left in the woods, producing no revenue for their communities or for the carrier, and serving no useful purpose because it is doubtful whether these inferior stands and so-called inferior species will be worth going back for once the operation has passed them and the logging road taken out. It seems entirely lair and necessary that the privately-owned timber shall be cut first.

Eighth-Lumber must be merchandised. The preparation and the care of the product is futile unless our efiorts are extended to properly merchandising our lumber. More study of markets is being made than formerly. With changing transportation conditions we have more chance to pick our prohtable markets. The knowledge on which to base our decisions must be available to all. More money may be made through intelligent merchandising than through any farther refinement of logging or manufacture.

Because of the many species and grades and sizes involved; because it is manufactured in every far edge of the country; because it has so many uses, it is only natural that logging and sawing practices should be perfected before a great deal of thought was given to merchandising. It is only natural that ,men who have spent their lives iq manufacturing endeavor should be more interested in it than in selling their product; and yet I do not at all subscribe to the public idea that lumber in the main has not been intelligently merchandised when we consider all the difficulties that had to be overcome.

If we had a central trading floor with fewer items involved, where defini,te market values could be established as they are established on wheat or livestock, our merchandising problem would be sim- plbr. When that is not possible the need for' more thought and more organization in selling is tremendously emphasized. Much progress has been made; much rnore is possible; and the next few years should see more progress in careful, intelligent selling than in any other part of our business.

These eight points are each important. Just two more we want to present to you very briefly, and those two we want particularlv to stress. The first of them has to do with fabrication. -

- The_ largest single adva-ntage of competitive materials today is that they come from the factory further fabricated, with all waste eliminated, nearer. to the form in which they will finally be used. There is less work to be done with them on the job; and a satisfactory job, therefore, depends less on the uncertain ability of the Iocal hand-worker. This is a machine age requiring factoiy preci- sion. Lumber cannot hold its own and-still ieperid on hind-saw methods. No one knows yet just how far thig question of fabrication will carry the lumber manufacturer. We do know that the profits today in all lines do not lie in the primary unrefined commodity such as wheat or oil or coal or lumber. The profit lies in

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Ilooring

A Health Prayer

The following prayer is to be found on the wall of the old Cathedral in Chester, England: Give me a good digestion, Lord, And also something to digest; Give me a healthy body, Lord, And sense to keep it at its best.

Give me a healthy mind, Good Lord, To keep the good and pure in sight; Which seeing sin is not appalled But finds a way to set it right.

Give me a rnind that is not bored, That does not whimper, whine, or sigh; Don't let me worry overmuch About the fussy thing called I.

Give me a sense of humor, Lord, Give me the grace to see a joke; To get some happiness from life, And pass it on to other folk.

WHAT T'?

It was getting close to the tirne for the celebrated dinner guest to make his speech.

The toastmaster looked over the rocn, where muctt laughter and talk was in progress, and whispered to thc distinguished guest:

"Shall we start your speech now, or let them enjoy themselves a little longer?'f

Itall Depends

When you look at the world in a narrow way, how narrow it seems ! When you look at it in a mean way, how mean it is ! When you look at it selfishly, how selfish it is ! But when you look at it in a broad, generous, friendly spirit, what wonderful people you find in it.-Clipped.

WHAT DIFFERENCE?

"Now, if you subtract twenty-seven from fifty-nine," said the arithmetic teacher, "what's the difference?"

"Yeah, that's what f say," chimed inlazy Willie; "I think it's the bunk, myself."

Sea Green Shells

My brother takes me fishing, Down by the silvery sound, Where the ocean hides its treasures And the strangest fish are found.

Down by a ragged rockside

Bewitched by mermaid spells

In a sparkling blue effervescence

I found two sea green shells.

I hid them in my cedar chest

So God may well surmise

Just what shade of sea green

To color my baby's eyes.

Marie Ponge.

MELVIN A. TRAYLOR SAYS:

"This is my hope for the future: That we may be rich without forgetting to be righteous; that we may have leisure without license; that we may be powerful without being offensively proud; that we may be nationally mindcd without being narrow minded; and finally, that we may live in a world of fact without surrendering our faith."

Highly Honored

A life insurance salesman called on a big business man and was finally admitted to the august presence, at the very end of the business day. Wanting him to feel what an honor had been done him, the big business man said:

"You ought to feel highty honored, highly honored, young man, at getting in here. Do you know I have refused admission to seven insurance rnen this afternoon?"

"Sure I know," replied the insurance man wearily, "f'm the seven."

One Anyway

Lady-"Do you keep refrigerators?"

Smart Alec Salesm611-"]tfs, Madam, we sell them."

Lady-"Well, you'll keep the one you were going to scll lne. Good morning."

His Salary

"How much does that lawyer pay you?" asked the boy next door of the lawyer's office boy.

"Fifty thousand dollars a year," replied the kid; "Ten a week in cash, the rest in legal advice."