Central California Club Discusses Code of Ethics

Jack Dionne Addresses Meeting

The r'egular monthly meeting of the Central California Lumbermen's Club was held at Wilson's, Stockton, on Saturday, March 14. President W. H. Falconbury presided and in opening the business session announced that the subject for discussion would be regarding the adoption of a "Code of Ethics." Mr. Falconburv announced that Chas. G. Bird of the Stockton Lumber Co. would lead the discussion.

In opening the discussion on the Code of Ethics, Mr. Bird said:

"When President Bill asked me to prescnt this matter for discussion, I told him that he had selected a big subject and one that could very easily take the entire time of several meetings like this. For this ieason, and also bccause we have back here with us today our good friend, Jack Dionne, whose witty stories and instructive talk we are all waiting to hear, I have had prepared for each one ' of you a Code of Ethics which Matt Harris and I have compiled for presentation at the next meeting of the California Retail Lumbermen's Association. At their meeting held in Santa Barbara, January 3lst, Mr. Harris and I were named a committee to draw up and submit to the Directors, a Code of Ethics for the Associition's consideration.

"A Code is a matter of such importance that the first draft should not be acted upon hastily or presented to the members for adoption without careful consideration, and so we are taking this method of .p_r_esen$ng the matter to you for your criticisms and suggestions. We wish we had time tg take it up in this manner with every club in-ttre state, but time will not permit our doing that, and so iyc arc asking you to take this preliminary draft home with y6u,-read it over car-efully and b-e preqared at oui next meeting in-April to suggcst additions or eliminations, of, if agreeable, your apploval. It lpiU help Mt. Harris and-f in preparing the final draft-for presentation to the State Association, but more than that and of far more reach- ing bencfit to you personally, to the club and to the State Association, will be the result of your thinkins and then acting along thc lines as laid down here in these Declarations of B:-usinesi Principles.

"Ev-eryone of -us is- conducting his business on a Code. Few, if any of us, have it written out. Many of us do not cven realize that we have a Code, but everyone has his own Code on which he is corrducting !ir! oqr businoss. Will that Code, along the lines of philh, possibly without realizing,it, you are now conducting your business,- measure _up.to what you have always professed iJ iigtrt as laid down in the "Golden Rule?" Do your methods of dolns business meet with the approval of thosc with whom you come ii contact,-the man you are buying from-thc man you are scllinc to--or the public at large, and is YOUR Code or niethod of doini business approvcd by your fellow dealer or those in your emolovi

"You know what is right and what is wrong in thc mannir bf conducting your own business. You simply have not taken the time to write it down or codify it as we, wi[h the hclp of othcrs. have here done for you. It would be far better for you-if vou wroie out yoqr gJF Code because the mere act of writing it oit causcs you, as it did us, to give conscious thought to it, as-you do so. and-vou wiII stop and think whether or not you have betn conducling vtur business ethically with all those with whom you may come ii ton- tact. Take this Code back with you to the privacy of your inner officc. and mea-sure up y_our daily method of doing birsincjs with thc principle-s as here outlined. Ask and answer iourielf, these and many other questions that will come to you-y6u nced not answei them norr.

"A. Is it my duty to treat traveling salesmen with courtcsy and not cause them to waste their time unnecessarilv to sei me?

"B. Should I show one seller the prices of his com6etitoii

"C. Should f seek a-cheaper pric6 by deceiving thi seiler into .._ thinkin-g_I have been given a better price U-y a compeliioii

"D. Should I take greatei discounts ttra-n I ari cntiUet io -oi discounts after the time allowed for taking thim hiJiipiredl

"E. Should f canccl orders because the mark-et has dioppi-d?---

"F. Should I seek.-to get better pric-es, terms or aiscorinis tv intimating I will use larger quantiti6s of mercha;ais. ih;;i actually expect to ordcr ou[?

"G. As the Purchasing Agent for my firm, should f acceot any gratuity., cornmission, allowancj or any indirect pr6ni ii, connection with any purchases?

"H. Should I repo.rt all goods received in excess of those billed ano au rmdercnarges -as promptly and with the same fidelitv as I exhibit in reportingtho-riagis and overchargiit

"I. Should I take advantage of an-y man's ignoiinie ana mis___ lgpresent my material, or overcharse him?

"J. Should-I take advanta-ge of purchasEr by profiteering in sea_ sons of great demand; short-supply or o'tfrei i-iiiiii"i""l

"K. Should I see that my customer understands the basis of licn security as an aid to the extension of 'credit so that he may recognize the justification of using thc lien privilege for thc purpose for which it was intendetl?

"L. Should f misrepresent market conditions or supply to justify exorbitant charges?

"M, Should I make false or disparaging statements or circulate harmful rumors respecting a competitor, his selling price or his business?

"N. Should I solicit the cancellation of. or accept business Drcviously placed with a competitor, 6r should I consider-the order as a closed incident?

"O. Should I make special prices to recognized customers of a competitor for the purpose of creating a good-will, which should be properly cultivated through fribndly interest and service only?

"P. Should I make price inducements in distant trade tcrritory with the object in view of attracting business from the locjl dealer by a price which has no basis except that of piracy?

"Q. Should I take advantage of the subterfugebf what is-lrroirr as "special stocks" to make price concelsions?

"After you have done this, will you not come back to our ncxt meeting prepared to tell us where we have gone too far or we have fallen short in our declaration of ethical re-lations with thosc with whom we are associated in business. It wiU help us in orescnting to our State Association the best workable Code thit can b6 obtainedl but better than that it will make you realize-as nothing else will- just-how near or how far you have come from measurin6f up to those ideals that you have al!. along professed to be your guide in your business transactions. You will also realize, as we have in woridne o,ut and compiling these standards, that thd making of the Code ii the small tbing and that its practical application is the bic thine.

"Personally, as a membef of this club, I feel that whEn the-final dqaft is made, presenied to and adoptcd by the State Association. our club should also approve and adopf this Code of Ethics-not by'iust approving and spreading it on our books of rccord as a sentimcirtal creatiort" but by putting it to work immediately. I am sure that this declaration of concrete principles of businesi methods meets with th^e approval of- every lcgitimate manufacturcr, wholesaler and retailer, and I believe that it is our bounden duty to the industrv as a wholc, and in co-operation with all the othei clubs and the-Statc Association, to s€e that the clements in each branch of thc industrv that do not rccog'nize or are opposcd to these principlcs and seek t6 d-cstroy a_nd disrup! are thoroughly educated tb the-greater benefits that ca9 be dcrived by strict adherence to the sound principles here outlincd.

"I believe that a permanent committee (not necessarily the oersonncl thereof) should be appointed by eacli club-these iommiticcs to co-opcrate with each other and arringe some method for collect- ing information upon actual instances oi alleged unethical practicis or pracuces that are open to question as to their cthical or unethical status. To get_thc. good out.of the Code, thc application of its princrpres to specrttc rnstances is neccssary. A record of specific in_ stances and the combined committees' findings and decisions should be kept and transmitted to members, thus illultratinc to all thJ piac_ tical application of the Code and at the same time, k=eeping the Code cvcr in the minds of those subscribing thereto.'

Mr. Bird distributed aggng the members a Preliminary Report of the "Code of EthiCs," compiled by Matt Harrii and himself, for the California RetaiL Lumbermen's Association. Mr. Bird stated that the State Association would like the co-operation of the various Lumbermen's Clubs axd any sugge-!4ons that the Clubs had to make regarding the proposed "Code of Ethics" would be given die con-sideration when they were compiling the final draft.

President Falconbury then called- on the following to !]press_ their views and ideas on the subject: George Ground, Modesto Lumber Co., Modesto; George Goo-d, Good Lumber Co., Tracy; L. H. Chapman, Sairamento Lumber Co. and President of the Slcramento Vallev Lumbermen's Club, Sacramento; C. D. LeMaster, Sacramento; and A. J. Russell, Santa Fe Lumber Co., San Francisco. In closing the discussion on the "Code of Ethics," President Falconbury suggested that the Preliminary Draft of the California Retail I.umbermen's Association Code, be given time and study during the next few weeks and that any suggestions the members had to offer could b-e presented before the Club at the April meeting, when the matter would come up for further consideration.

Jack Dionne, publisher of the "California Lumber Mer- chant," was then introduced by President Falconbury. Jack was in good form and interspersed his. interesting reinarks with Jeveral stories much to the enjoyment of the crowd. He spoke on the Merchandising of Lumber, Hoo Hoo Club activities throughout the cou.ntry, the activities of the various Lumbermen Clubs in California and the bene' fits that are derived from their meetings, and the proposed "Code of Ethics" that was discussed during the business session of the meeting.

A. J. Russell was the recipient of a nice compliment from President Falconbury for the t'ay in which he carried out the program of the J6int Lumbermen's meeting at Stockton last month where he acted as toastmaster. He also thanked Chas. G. Bird for his activities and work on the "Code of Ethics." H. M. Schaur, Tracy Lumber Co., announced that the arrangements for the Club meeting to be held at Tracy next month were practically completed and invited all members to attend. Frank Trower, Trower Lumber Co., San Francisco, was unanimously voted an honorary member of the Club.

The following attended the me'eting:

W. H. Falconbury, Falconbury Lumber Co.....

A. f. Russell. Santa Fe Lumber Co.....

^IacL Dionne, "California Lumber Merchant".

Charles G. Bird, Stockton Lumber Co.....

Lester Elliott, Valley Lumbei Co.....

B. A. Nixon, Nixon Lumber Co.. .

Chas. P. Christenson, Linden Lumber Co...

I. M. Montgomerv. Silver Falls Timber Co.....

G. H. Pfeufr=er, Tiin Harbors Lumber Co.....

Walter Baker, Hendrickson Lumber Co..

Kenneth Smith, Long-Bell Lumber Co.....

Dan Schroebel, San Joaquin Lumber Co.....

Francisco

Angelcs

O. D. Ruse, Tilden Lumbef & Mill Co..... .Stockton Georce Grdund. Modesto Lunber Co...., ..Modcsto FranE Wells, West Turlock Lumber & MiU Co............Turlock

C. D. LeMaiter.... .......Sacramcnto

J. E. Martin, "California Lumbcr Merchant". .San Francisco

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Mr. F. A. Clough, formerly San Diego manager for Fletcher & Frambes, Inc., is now associatcd with the Albion Lumber Company, at their San Diego branch. They maintain offices at 32O Spreckels Building.

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Bill Glonn, Coirs Bay Lumber Co.. San Francisco

S. Rothermel, Central Lumber Co.....

Bcrt Neylan, Booth-Kelly Lumber Co.....

"High" ite"iy, Booth-K;lty Lumbcr Co... ..

ChaE. Mooreli6ad, Irwin L-umber Co.....

L. V. Utterbach, Modesto Lumber Co.....

O. L. Russum, Chas. R. McCormick Lumber Co.....

O. V. Wilson. Central Lumber Co.....

Bruce, DuVall, Ripon Lumber Co.....

A. A.'Kelley. Santa Fe Lumber Co.....

Chas. Wood, Strable Hardwood Company.

T. H. Kewin, Kewin Lumber Co,,...

W. O. Mashek, Kewin Lumber Co.....

Francisco

D. A, Williamson, Midvalley Lumber Co.. ... ' .Galt

W. M. Casey, Pittsburg Mfg. Company. ...Pitts!wg

Harrv Fuller. Fuller Lumber Co...., ....Lodi

Ed. Garland,'Charles R. McCormick Lumber Co.'....San Francisco

L. H. Chapman, Sacramento Lumber Co..... ....Sacramcnto

Curtis Cutler, Cuttcr Mill & Lumber Co..... ....Sacramento

H. M. Schaur, Tracy Lumber Co... .Tracy

Pcrcy McPheirson, Escalon Lumber Co..... .Escalon

Georce Good. Good Lumber Co..... ...Tracy

J. V.-Gartin,-Stanislaus Lumber Co..... ....Modesto

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