The Advantages of an Association

By Mr. \l[/. B. fnnes, Secretary-Manager, East Bay Lumbermen's Club

An individual can have little or no control over business States in a recent decision said, "The Sherman Law does conditions, but a comparatively few business men working not prohibit even the lessening of competition, and it certogether intelligently can at least have a most wholesome tainly does not command that competition shall be pursued influence on them. Hence trade associations are formed blindly, that business rivals shall remain ignorant of trade for the purpose of discussing, collecting and disseminating facts, or be denied aid in weighing their significance." facts which have to deal with the successful operation of Decisions recently handed down by the Supreme Court their business. of the United States in the cement and hardwood lumber

Business men realize the importance of sound and well cases were favorable to these interests. oro;,niz.ed associations, for it is through such organizations Com'petition which most lumbermen have most to fear that competitors in the same industry can get together and is not within the lumber industry alone. The real competisolve their problems. tion comes from without, from the industries supplying

In the past our government has looked with disfavor or similar needs, such as steel sash, composition shingles, plas-trade associations, or trusts as they were then called, but ter board and various other substitutes. This competition today the Department of Cor-nmerce is encouraging the cannot be handled separately, it must be taken care of various industries to organize. Credit for this goes diiectly through well organized associations which in turn should to Herbert Hoover, Secretary of Commerce, for it was he have affiliation with a national body. In a recent article I noticed that twenty-two groups are spending $30,000,00O in 1926 to promote the use of ,lumber substitutes. The lumber manufacturers of the Pacific Coast recently appropriated $5,000,000 for national advertising purposes. who insisted that the law be clarified in order that tracle associations would know just what they could do. Associate Justice Brandeis of the Supreme iourt of the Urrited

Our leading mercartile iistitutions agree that most business failures are caused by the entire lack of. or wholly inadequate cost accounting systems. The result is, many d_ealers are ignorant of their true .costs, improperly price their merchandise, and therefore not only do business without an adequate margin to cover their overhead and investment, but also force their competitors to the same low levels.

L.

It is generally known that the banking interests are more favcirably impresSed with customers wh-o hold membershio in trade associations. The banker knows that the member. of an association is in a bettelposition to conduct business more profitably than the one who tries to play the game alone.

Through associations there can be frank and friendly dealing between competitors. They can stimulate intelligent and constructive competition and build up confidence, which after all is the big factor in business

Austin L. Black