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The Western Lumber & Pole Co. issued a circular, under date of March 23, 1918, giving the new prices to be used for cedar posts. On March 25, 1918, the Weyerhaeuser Sales Co. issued a bulletin to its salesmen, announcing an advance made by the Humbird Lumber Co. for posts, effective March 22. The circular stated:

A new list is in the hands of the printers at the present time and will be forwarded to you as soon as secured.

The Humbird Lumber Co. was one of the companies listed as receiving this price list from the Shaw & Borden Co., the record showing that it received 600 lists.

On May 1, 1918, the Weyerhaeuser Sales Co. issued a circular which read in part as follows:

When we issued Bulletin No. 844 on March 25, advising you of advance in our Idaho post prices, we told you a new list would be forwarded as soon as secured. We are now sending you this new list, bearing date of March 22, 1918, and this list has been advanced so that the old discount may now be applied to secure the new net prices. In other words, there is no discount from the round posts on this list, but there is a discount of $2 per thousand on split posts, as shown by the rubber stamp notation inside the front cover. Please destroy your old list and use this new list only in the future.

The Weyerhaeuser Sales Co. issued a bulletin to its salesmen on May 24, 1918, announcing certain concessions from price list of June 2, 1917, for cedar poles. This circular stated:

While we have no heavy stock on the above sizes, with the exception of 5-inch 25's, there are a number of producers in the Idaho district carrying large stocks of this size, and it is our understanding that it is their idea to meet competition from other districts in the central western territory, which of course makes it necessary to follow these prices as a market basis.

The prices quoted the United States Government apparently were also subject to discussion and agreement between the members of these associations. On October 5, 1918, the Naugle Pole & Tie Co., of Chicago, Ill., a member of the Western Red Cedar Association, telegraphed Mr. Leavitt as follows:

Do we add 10 per cent to f. o. b. woods prices on Government business? What shall we do in cases when material is bought by contractors and shipped to Government?

On October 7 the Naugle Pole & Tie Co. again telegraphed Mr. Leavitt:

Understand others not adding 10 per cent. Kindly notify by wire.

The reply of Mr. Leavitt is not in the record. However, Mr. Leavitt explained these telegrams with the statement that it was customary at times to quote on a f. o. b. destination basis by adding 10 per cent to the f. o. b. mill price list. This was done for the purpose of equalizing the shrinkage and swelling of lumber in transit. During the summer months there were "underweights" through shrinkage, and in the winter months "overweights.' This 10 per cent was more than enough to equalize the difference, inasmuch as the underweight normally exceeded the overweight by about 10

per cent.

A meeting of manufacturers was held in Milwaukee during the first part of November, 1918, at which price advances were determined upon. There were a series of interesting telegrams pertaining to this meeting. The first telegram, dated October 11, was from Mr. Leavitt, at Spokane, Wash., to Page & Hill Co., at Minneapolis,

Minn., asking if the Spanish influenza situation would interfere with the proposed meeting. On October 17, Mr. Leavitt again telegraphed Page & Hill Co., stating that the meeting would be postponed indefinitely unless otherwise advised. On October 24, Page & Hill Co. wrote Mr. Leavitt, in reply to the latter's letter of October 19, explaining the reasons for the postponing of the proposed Milwaukee meeting. This letter agreed that a postponement might be wise, inasmuch as it was doubtful that a fully representative group would attend the meeting. The letter contained this statement:

As soon as your Spokane meeting has digested the problem for it, we will be very glad to see you in this district

It was later decided to have the meeting on November 8. Mr. Leavitt, while at Chicago on October 30, 1918, telegraphed the Western Lumber & Pole Co., at Spokane, as follows:

Tell C. P. Lindsley have arranged meeting for Friday, November 8, at Milwaukee, and to arrange for good attendance, and wire me care Naugle, who is coming.

On October 31 Mr. Lindsley telegraphed the following reply: Chapin, Hansen, Clark, Searl, and Culver have agreed to attend meeting. Some question about Montgomery and Jones. E. A. will represent our firm

The individuals mentioned in this telegram apparently were:

E. T. Chapin, of E. T. Chapin Co.
O. S. Hansen, of National Pole Co.
E. L. Clark, of Valentine Clark Co.

H. J. Searl, of Northern Cedar Co.

H. C. Culver, of Sandpoint Lumber & Pole Co.

J. M. Montgomery, of C. F. Ewing Co.

H. G. Jones, of Lost Creek Cedar Co.

E. A. Lindsley, of Lindsley Bros. Co.

On November 2 Mr. Leavitt again telegraphed the Western Lumber & Pole Co. as follows:

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* Advise all interested that reservations have been made for all at Milwaukee Athletic Club for Friday morning. Advise by wire who is coming

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On November 4 Mr. J. E. Seaman, then secretary of the Western Red Cedar Association, telegraphed Mr. Leavitt, at Chicago, stating: The following parties will leave here on (for) Milwaukee Tuesday night: Chapiu, Hanson, Montgomery, Frank Culver, and Searl. Have talked to C. P. Lindsley, but can not prevail upon him to go to Milwaukee.

On November 10, 1918, Mr. Leavitt telegraphed his company at Spokane as follows:"

Cancel reductions of June 19 on six twenty-fives and shorter and class poles in United States only quoting June 2 lists. Advise others

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On the same day he sent his company another telegram, stating: Advance on short poles was effective Saturday.

On November 12 he again telegraphed his company to

Add 10 per cent to f. o. b. prices on all poles when sold f. o. b. cars as per paragraph 1, selling instructions, and sell all piling at list f. o. b. cars

*

That the meeting was held in Milwaukee is shown by a letter written by Mr. Leavitt on November 19, 1918, to Mr. J. E. Gerich, president of McGillis & Gibbs Co., Milwaukee, referring to the courteous treatment which had been extended to the visiting manufacturers by the Milwaukee firms. The letter was in part as follows:

At the close of the meeting at Milwaukee, I was instructed by a unanimous vote of all present to convey to you their thorough appreciation of the very fine treatment and of the many courtesies extended during our stay in Milwaukee.

On November 23, Page & Hill Co. wrote Mr. Leavitt, stating that it had received a copy of the latter's letter to Mr. Gerich, of McGillis & Gibbs Co., and asking that it be allowed to stand the expenses of the Milwaukee meeting. The letter stated:

We were very glad indeed to have had the meeting held in this section, and naturally are anxious to stand our usual expense.

Mr. Leavitt admitted to the commission's representative that these telegrams referred to a conference which the members of the association held in Milwaukee the first part of November, 1918.

A new set of pole price lists, with selling instructions, was distributed by Mr. Leavitt, bearing the date of November 9, 1918.

On November 20 and 29, 1918, the Weyerhaeuser Sales Co., issued bulletins to its salesmen, giving advances for both posts and poles made by the Humbird Lumber Co.

On December 7, 1918, Mr. J. M. Montgomery, manager of the Humbird Lumber Co., of Sandpoint, Idaho, wrote the assistant manager of the Weyerhaeuser Sales Co., as follows:

Am sending you in to-day's mail a few of the latest pole price lists and selling instructions which show f. o. b. selling prices, to which the 10 per cent has been added. There is no material change worthy of notice for the salesmen as a whole, and since the Government is going out of the purchasing business, there will probably be very little stock purchased f. o. b. cars.

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The cedar post meeting came off as intimated and opinion was quite unanimous regarding the action on prices.

Another reduction was announced by the Weyerhaeuser Sales Co., on December 4, 1918, in a bulletin issued to its salesmen, consisting of

A discount of $2 from list of March 22, 1918, for pricing split posts for the Humbird Lumber Co.

Round posts remain at list as they have been.

The previous day Mr. Leavitt, as president of the Western Lumber & Pole Co., issued a circular announcing that effective that day his company was quoting—

Split posts $2 off our delivered price list of March 22, 1918.

We are asking full list for the round posts when sold in mixed cars with split posts. The similarity of these two announcements is to be noted.

On December 9, 1918, the sales manager of the Humbird Lumber Co. wrote the Weyerhaeuser Sales Co. the following letter:

Acknowledging copy of yours of the 5th to Spokane with reference to price on split posts, beg to advise that our price is $2 off the list. We are now on the one-price basis and would be unable to secure any posts on the outside which we could afford to sell at any less than $2 off the list.

Confidentially, our price advance concurs exactly with prices, instructions from all other producers in this district, and you may advise the salesmen that no dependable posts are being offered at less than our figures.

On December 31, 1918, the Western Lumber & Pole Co. canceled its discounts from price list, as shown by its previous letter of December 3.

On March 4, 1919, the Western Red Cedarmen's Information Bureau issued a circular to its members stating that a

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copy of the

minutes of a meeting held by the post men at Sandpoint, Idaho, February 19 and 20," was being sent under separate cover. Attached to these minutes were copies of the constitution and by-laws of the Lifetime Post Association, which, the circular stated, was formed at that meeting and a copy of the "Manufacturing specifications" covering lifetime posts. The circular stated:

Arrangements have been made with the Shaw & Borden Co., of Spokane, Wash., to have the selling instructions printed on a sheet that can be inserted in the regular price list.

A new price list for posts dated March 15, 1919, was printed and distributed by the Shaw & Borden Co.

There was also found in the files of this association a sheet headed: Effective April 3, 1919-Advance.

Certain sizes were listed as being advanced to correspond with other sizes. There was also a column of advances under the heading of— Advance in Canada only.

A statement at the bottom of the sheet read:

Correct outstanding quotations by wire.

The same information is shown in a telegram sent by Mr. Leavitt from San Francisco, Calif., to his company at Spokane, Wash. The secretary, Mr. J. E. Seaman, wrote Mr. Leavitt in reply to the telegram above referred to as follows:

We received this morning your night letter from 'Frisco relative to advances which went into effect 3d instant.

I called up all the fellows here and at Sandpoint.

Inclosed find copy of letter sent out to-day.

We also wired Consumers' Supply Co. at Regina, and have written Mr. Vreeland. No new orders received to-day, and nothing exciting to report.

Mr. Leavitt admitted to the commission's representative that this meeting was held in San Francisco at which these price advances were decided upon. He stated the purpose of holding the meeting in San Francisco was purely personal with the various members, and that no California manufacturers were represented.

On April 18, 1919, another advance was made, as is shown by the following telegram sent by Mr. Leavitt to the Naugle Pole & Tie Co., at Chicago, Ill.:

Effective to-day advance price 5-inch twenties and 4-inch twenty-fives to correspond with present 5-inch twenty-fives. Advance 6-inch twenties 15 cents each. Advance 7-inch twenties and 6-inch twenty-fives 25 cents each. Advance 8-inch twenties to correspond with 6-inch thirties. Advance 5-inch twenty-fives to correspond with old 6-inch twenty-fives. These prices effective both in United States and Canada and are in addition to advances made April 3.

A new pole list, dated April 18, 1919, was printed and distributed at this time.

On April 26, 1919, the Weyerhaeuser Sales Co. issued a bulletin to its salesmen announcing an advance in the price of poles made by the Humbird Lumber Co.

On April 28 another circular was issued by the Weyerhaeuser Sales Co. to its salesmen regarding the quality, etc., of posts manufactured by the Humbird Lumber Co. One paragraph of this circular was as follows:

Continue using present W. R. C. post lists. There is no immediate change contemplated in prices.

The connection between the association and the Shaw & Borden Co. in the matter of printing and distributing the price lists is suggested in a letter dated May 27, 1919, written by Mr. Leavitt to the Lost Creek Cedar Co., Ione, Wash. The letter, in part, reads as follows:

We inclose herewith three copies of price lists which include the specifications. I believe the Shaw & Borden Co. has these specifications set up and can run you out a few copies at a reasonable price.

If you wish these specifications, please take the matter up direct with Shaw & Borden Co., and oblige.

On May 27, 1919, the Weyerhaeuser Sales Co. issued another bulletin to its salesmen, announcing another increase in the price of split posts made by the Humbird Lumber Co.

A series of telegrams, dated June 17 to 19, 1919, regarding a meeting held by the Spokane and Minneapolis representatives in Minneapolis were found in the files of the association. When Mr. Leavitt was shown these telegrams by the commission's examiner, he made the rather interesting exclamation:

Well, I guess you have got the dope. That was a little informal conference we held. The references made in these telegrams to adjustment of cost basis was explained by Mr. Leavitt. He stated that mills were accustomed to exchange their products on what was known as a "50-50 basis." When price lists were changed there was made up an arbitrary figure representing the cost of purchasing poles. The difference between this arbitrary figure and the selling price was divided, one-half going to the seller and one-half to the buyer. The middle western firms, who generally purchased from the western concerns, were constantly attempting to lower the cost figure and increase the selling figure in order to increase their profits; whereas the western concerns desired to keep the cost figure as high as possible.

The first of the telegrams mentioned above was sent by Mr. Leavitt from Minneapolis to Mr. J. E. Seaman, secretary of the Western Red Cedar Association, at Spokane, on June 17, 1919, and was as follows:

See Lindsley and advise; there is no possibility my adjusting matters satisfactorily; all arrangements made with parties here to be in Minneapolis Friday; very important that we have best possible representation. Wire me at once care of Page & Hill how many are coming and time of arrival.

Mr. Seaman replied to Mr. Leavitt on the same day as follows:

Flannery and Clark out town. Chapin and Ed only representatives could possibly leave to-morrow. Meeting arranged Wednesday noon to include Culver and Humbird. Will advise.

Mr. C. P. Lindsley, a Spokane member of the association, also sent Mr. Leavitt a telegram the same day:

Meeting to-day included Hansen, Chapin, Lindsleys, Searle. Flannery and Clark out city. Calling meeting for to-morrow noon to induce Culver and Humbird, two nonsellers who will be most vitally hit if advance is not made on cost. They will undoubtedly demand cost raise and it is only fair they should. Wire more details to-night. Why and who opposition to show at meeting to-morrow.

The individuals named in the above telegram apparently were:

O. S. Hansen, of National Pole Co.

E. T. Chapin, of E. T. Chapin Co.

E. A. and C. P. Lindsley, of Lindsley Bros. Co.

H. J. Searl, of Northern Cedar Co.

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