To Thinh Abour!

Bv D. C. ESSLEY Manager, California Retail Lumbermen s Association

No, Mr. Lumberman, your problems are not peculiar. All nations of the world are facing the same economic problem, and that is the eniarged scope of competition. Europe is convinced that they can ,compete with a cheaper and better merchandise than our own country, ,consequently all nations are after the other countries' dollar. This condition has been made possible due to our mechanical achievements, and the scope of the world's trade today is no larger than the area of our country was a few years ago.

This same ,condition exists today in the lumber business of California. Lumber yard investments are all out of proportion, some years ago during the age of the horse and wagon, these large investments of stock, real estate, et cetera were a necessity, but today the area of competition is extended from twenty miles to two hundred miles and the investment of merchandise is carried by the wholesaler; consequently the dealer may deliver today merchandise within a few hours, which the same merchandise would have required days to make delivery in the past. This condition should convince all lumbermen that adjustments are very necessary, and that either the demand must be increased, or that investment must be de,creased. You will agree that this argument is sound, but how ii the condition to be adjusted? You, Mr. Lumberman, can solve this prob- lem and no one else; you must first start to help yourself.

Fear is at the bottom of most of ou,r troubles; fear of competitors; loss of business; lack of confidence. What good reason can any merchant give for remaining in his own little business cave, a prey to every beast oJ trade, when he ,could find safety and prosperity in working and respecting his fellow competitors; gentlemen we must-work together or we will hang separately.

My observation of the lumber business in California convinces the writer that the investments in lumber vards in every city with a population of ten thousand people and over'could be reduced at least fifty per cent, andlhii reduction cannot come to pass until the dialers will meet on common ground and apply brains rather than personal greed, and resolve that he would rather work with his competitor. even if he does think that he is a scoundrel, and shaie with h-im the possibility of making a profit. I have yet to find th_e district where any one dealer has made all of the profit. We hang men for committing murder, but we still'have murderers.

A11 of us know more than any of us. Few of us realize how little most of us know aboui the daily business of each, until we_ begin to meet the rest of us and talk things ovei among the lot of us.

Now Mr. Reader my suggestion in correcting this evil would be as follows:

First: Every lumber dealer should start helping himself, by becoming a member of the California Retail Lumbermen's Association, because it is through this organization that troubles between cities can be solved and trade practices defined, ,controlled and many other advantages that I do not have the space to cover in this article.

Second: That each city organize and study their own problem, because through this effort many local evils can be corrected. My first suggestion would be the establishment of a trade promotion fund whereby members would pay into this fund at least one dollar per thousand feet on all sales, this money to be allowed to accumulate until sufficient funds are available for the establishment of a constructive program.

Third: The formation of a local Home Building Service Bureau, securing the ,cooperation of all firms interested in home building, and put into force an extensive newspaper advertising program, educating the prospective user of lumber that you are interested in his problems and that you have played a part in making it possible for him to secure the information regarding any problem of building. Distribute house plans and many constructive cir'culars, promoting the use of lumber for many special uses. Much valuable information can be secured at little cost through the cooperation of the California Redwood Association and the National Lumber Manufacturers' Association.

Fourth: The establishment of a liquidation fund to be used in case some member requests liquidation. Mr. Reader you will liquidate yards only when Mr. Operator convinces himself that business is not profitable under stabilized conditions, and this process will not be expensive, because through group cooperation the expense will be minimized.

Fifth: The formation of a credit department to control the conditions of sale, and the exchange of credit information between members; also the compiling of recorded building permits, purchases and general information for the use of the members.

Now, Mr. Lumberman, ;rour competitor may not be as incompetent as you think, and the ,chances are he will be in business when you have passed the production age. You both have been chasing the end of the rainbow, when if you had only understood each other you could have been led into the land of prosperity and contentment.

"Automobiles have brakes."

"Steam engines have governors."

"Steamships must have a compass."

"Why shouldn't your business provide similar protection?"

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