Millwork Institute of California Convenes at Stockton

Mayor Wheeler Makes Address of Welcomefnstitute Discuss Many Important Problems

San Diego Selected as Next Meeting Place

The tri-annual Convention of the Millwork Institute of California rvas held at the I-incoln Hotel, Stockton, on Friday and Satrrrday, March 26 and 27. The conveniior, -as Iargely__ attended, there being present Institute members from all sections of the state.- ^ marks and thankecl himfor his kincl dnd appreciative remarks.

The Mayor of Stockton, Raymoncl J. Wheeler, made a very cordial address of tvelcome. Miny important prob_ lems of the..ind.ustry. rvere discussed, intluding .,staridard Practices," "Full Mill Bid," "Bench Time', an-d ..Machine IT" -9!1-g_ggr" "Pricing Extras ancl Ornamentati;;;,; "The 1926 Millwork f)olla"r," ,,Trade Expansion" u"a -""y other. subjects pertaining to the .,Good of the Org"iiri_ tion."

Presiclent Gaetjen then addressed the Convention as follows: resolution rvas passed by the Institute

"Once again u,e are assembled at a meeting of the Millwork Institute of California, and may f call your attention to Bill Goddard's address at Oakland last yiar on "What Have We Accomplished ?"

And here I rvant to pause and read the Riot Actto you all for lack of support to your association. As I have said before, you will get out of the association only just what yorr put into it.

Stockton shor,ved a wonderful spirit of solution 1>assed institut\vas l)assed by Institutt tor addressing the convention, Wheeler hospitality, and a than\ing Mayor the Chamber of

Last year we had only 54 responses to the questionnaire that built up the Milh.vork dollar, something which I think should interest us all. You should all be interested to know the percentages of Purchases to Sales, Labor to Sales, and Overhead to.Sales; so if there is anything left it should be profit and not loss, yet this year we had to go begging to get responses to the questionnaire.

Another important thingto us is the value of Unified Fstimating of Millwork. Therefore, I have re-appointed the committee on Territorial Relations, which has bien appointed for over a year but with no results. Yet in betweerr meetings there are always discouraging reports from different cities which could be overcome by the proper functioning of this committee. So, if we do nothing else at this meeting we should settle this question.

We should also settle the matter of a Standard Full Mill Bid, so that in conjunction with the results of the work of the Territorial Committee, bids should be uniform and not confusing or at ridiculous difierentials, as at the present time.

Harry Gaetjen, President M. I. C. II. T. Diitcsch,, Monagin,g Director Commerce and the press of Stockton for their wonderful co-operation, and to "Bill" O'Keeffe and his able associates co-operation, "Bill in their able management of the convention.

San Diego was,chosen as the next meeting place, the next convention to be held during the first rveek in-August. The Convention was brought tJ a close rvith'an inf&mal banquet and entertainment on Saturday evening at the Lincoln Hotel, which was largely attended.

Friday Morning

The convention was called to order by president Harry Gaetjen of San Francrsco.

W. F. O'Keeffe, Chairman of the Committee on Arrange- ments, intiod.uced Raymond J. Wheeler, Mayor of Stockt8n.

Mayol Wheeler in welcoming the members of the Institute to Stockton said: "I am delghted to have this occasion to. bid you. welcome to Stockton and to offer to you the things we have. Stockton's citizens are loval to their citv and.their state, and yor will always find ihem willing to sacrifice anything for the good of ihe entire state of eali_ fornia." He paid an excellent tribute to the millmen of Stockton, saying that they carried the finest millwork stocks rn the world. He called attention to the city,s development prog:"T with special reference to their proposed Deei Wa_ ter Harbor, statin.g that in five years the ships that naiigate the seven seas will be coming to Stockton. - With the #on_ derfu.l co-operation existing ln Stockton, nothing .u, .top the cityin its developmentl he asserted.

, President Gaetjen- responded to Mayor \Mheeler's re_

I rvant to impress upon you that this conference is not mine nor Flank's, but belongs to all of you and therefore it behooves everyone of you to do something forits bene- fits. We have passed the stage of forming-personal con- tact. I believe we all know one another socially and should now commence to do some real r,vork from a business stand- point. You all seem to know the weakness of our business. so let us collectively remedy some of the evilsand the only rvay is by sacrificing some of our individual view points and by working for Constructive Co-operation, by wficf I mean co-operation for better service; to-operation rvhich will develop economies; bringing about lower costs; co-operation which will foster reseaich-and which is fair to government laws; co-operation which promotes unselfishness, tolerance and patience.

I trust, therefore, I have given you some little inspiration -with my view point on what Can be accomplished.

"I will close by quoting Kipling:- \ i "It ain't the individual, \ ties that have been carried on through bulletins that have been issue-d to the members at regulal intervals. Speaking of the Uniform Ledger System, he said that 32 systems of the Uniform Ledger accounts have been installed. Since the last convention, he stated that he has visited the local branches at San Francisco, Oakland, Los Angeles and San Diego, and has also assisted in the organization of a new local branch in Humboldt Countv.

' Nor the army as a whole, \ I But the everlastifi' teamworkl i Of every bloomin' soul." IThe report of the lVlanaging Director was mgde by H. T. Didesch. Mr. Didesch said, 'iwe are assemblCd to solve the problems that are uppermost in your minds." The organi- zation has a perfect machine, he stated, and all *e neid is you-r power to make it IOO%'. He said that the questions to be discussed before the meeting would be ,'Standard Practices" and "Price Stability," which he stated must be maintained through the mass organization of the Institute. He referred to the Trade Extension workthat has been carried on by the Institute, and also to the Service activi.

Managing Director Didesch made use of a blackboard illustration of the way to success. which he referred to as the "stdirway to Success." Beginning at the bottom, he wrote "0%-I won't." Then in order, "IOV,, 'I can't;" "ZOE,-I don't know how;" "3AV,-I wish I could;" "4O/o, -What is it;" "507.j-1think I might;" "@vo-I might;" "7A%-I think I can1." "80'/.-I can't i" "907o-1 will," and "Im%-I did."

The Treasurer's report was read by Managing Director H.T. Didesch, and verified by Treasurer E. A. Nicholson.

Preceding the opening of the convention there was a Directors' meeting in which the following participated: H. W. Gaetjen, E. $. Nicholson, H. T. Didesch, A. W. Bernhauer, H M. Mitchell, W. F. O'Keeffe, W. J. Glasson and E. J. Nutting. In adopting the Director's report submitted by H. T. Didesch, the Institute voted:

(1) To send Managing Director H. T. Didesch as a delegate to the Millwork Cost Bureau Convention at Chicago on April 16 and17.

(2) To employ R. A. Niclas, accountant, direct instead of through the Millwork Cost Bureau of Chicago provided his release can be secured from the Chicago Cosl Bureau.

(3) To create an associate membership for concerns outside the Pacific Coast states for which an annual charge of $15:00 will be made.

In concluding the Director's report, Mr. Didesch said that the Institute membership would have to be expanded if they were to accomplish,what they had started out to do, stating that this work can be best done through the branch organizations and group meetings.

At this point in the proceedings, President Gaetjen recommended that all members who were not wearing the Institute Button in their lapel should be fined 5O cents. Business was good and E. J. Nutting, H. T. Didesch and W. F. O'Keeffe collected $22.W which was added to the General Fund.

G. M. Cornwall, Portland, then addressed the meeting on his recent trip to Florida. Among the various points discussed were the lumber demand at Miami. the construction of the East Coast Railroad to Key West, freight and railroad traffic in Florida, the resources of the stite and existing conditions in Miami Harbor which he stated was only 200 feet wide and 17 feet deep. He gave a vivid description of the real estate sharks doing their stufi at Coral Gables.

Friday Afternoon

The meeting was called to order by President Gaetjen.

"The 1926 Milhvork Dollar" was discussed by Managing Director H, T. Didesch. He illustrated by a diagram the various items which go to make up the Millwork Dollar, which he divided as follows: Direct Material, 49/o; Production Labor,20.8%; Overhead 23.6%, and Profit, .06%.The interest on the investment at 6/o, he showed to be .031%.

By the use of the blackboard, he illustrated with figures a composite showing the distribution. of costs based on reports submitted by 60 members for 1925, and compared same with figures f.or 1924 based on reports submitted by 54 members. Mr. Didesch stated that this composite would be mailed to the members in Bulletin form so that they could give them careful consideration.

President .Gaetjen appointed the following to -act as the Committee on Resolutions: J. G. Kennedy, H. C. Treff, H. H. Mitchell, G. P. Roberts aira R. R. Smilh.

E. A. Nicholson, H. M. Atkinson, J.W.Shrimp, F. Callesen and J. A, Farnsworth Jr., were..appointed by President

Gaetjen to act as the Committee on Standard Practices. :'

The "Proposed Standard Practices" discussion was led by E: A. Nicholson. In opening the discussion, Mr. Nicholson said that there was too much individualism in the industry, and by several illustrations that he mentioned, he showed that more could be accomplished through co-opera: tion of the members. He stated that it is more imoortant that the industry succeeds rather than they succeed- as in.dividuals, and recommended the use of Standard Practices for the industry.

In discussing the various Standard Practices as specified in Questionnaire No. 4, he read the results of the replies received on "No Cash Discount." The questionnaire recommended the adoption of thefollowing rule:-Our terms are net cash on the tenth day of the month following the date of invoice. The results rvere strongly i nfavor of the adoption of this rule. A general discussion was held on this subject and a motion was passed by the Institute instructing the committee that no cash discounts should be allowed on contracts,

The next Proposed Standard Practice discussed was "Drayage Charges." Mr. Nicholson then read the results of replies received from the questionnaire sent the members calling lor a 3Vo drayage charge on all deliveries within a radius of 25 miles, with a minimum charge of 5Oc, which showed that a large majority of the members were in favor of its adoption. Following a general discussion on the matter, a motion was passed instructing the committee to r4op- a resolution calling {or a minimum drayage charge of.3o/o on all deliveries within a radius of 15 miles, with-a minimum charge of $1.00.

President Gaetjen appointed the following to act on the Territorial Relations and Full Mill Bid Committees. "Territorial Relationsr A. W. Bernhauer, W. M. Casey, W. J. Glasson,J. {. !I_art, G. C Jacobgr J. G. Kennedy, C. J. Todhunter, T. R. Merrell, W. F. O'Keeffe, J. Shepara, C. f'. Ricker and S. Hassel. "Full Mill Bid": Ralph Button, T. J_, Bridg_efold, G. H. Burnett, G. W. Kaiser, O. S. King, George Little and Chas. Miller.

Saturday Morning

__President,Gaetjen_presided. "What is a Fair Charge per Flour for Machine Time and Bench Time," was discussed by D. N. Edwards. Mr. Edwards stated that they figured these costs at their plant through two items, Burden and Productive Labor. By a blackboard illustration, he showed h_ow they arrived at these charges during their operation in1924; the Bench Charge was 92.16 per hour whilelhe Machine Charge was $2.57 per hour based on a 15 H.P. en- gine. He said that they had used this same method for arriving at these charges since 1912.

A. W. Bernhauer by illustration showed how they arrived at these c.harges at his_ pl1nt, his results showing only a slight variation from Mr. Edwards' figures.

E. A. Nicholson addressed the Institute on "Pricing Extras or Ornamentations." He stated that there were s&eral methods of arriving at these figures, but he urged the members that he would like to sell them this thought, where we can arrive at a base we should do so. In Southern Califor1iq, he stated, we have adopted the one single base list. With the use of the Southern California base list, he illustrated on the blackboard the workings of thislist for sash and doors, and how they arrived at the price for extras and ornamentations. With the use of a base list it is very simpl9,. he stated, and under this system it makes uniformity which is essential to the success of the Institute.

"Trade Pxtension or Trade RecessionWhich Do We Want?" was the subject discussed by T.R. Merrell. We want trade expansion, he stated, as we have too much competition in the industry at the present time and we must have trade expansion to increase the volume of business.

Through educational work and literature, the volume of business should be increased in Frames, Stairways, Cabinet

(Continued on Page 58.)