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The Shingle Trust: Northwest Millmen Build a Blacklist for Eastern Buyers

Twenty-three firms controlling nine-tenths of the Pacific Northwest's shingle output meet in Seattle to form an association, blacklist short-paying Eastern dealers and face down the railroads.

At a meeting of representatives of twenty-three firms in Tacoma, Portland, Seattle and Mount Vernon, which handle 90 per cent of the shingle output of the Pacific Northwest, the Pacific Lumber and Shingle Shippers' Association was organized at a meeting yesterday in the Northern hotel. The constitution and by-laws reported by the committee were adopted and officers were elected as follows: President, A. F. Gribbs, of S. A. Gribbs & Co., Tacoma; vice president, H. R. Dunlway, Portland; secretary and treasurer, F. I. Curtis, Commercial Cellar Company, Seattle; directors, the officers named, C. H. Crane, Seattle, and H. G. Foster, Tacoma.

The association is intended to cure the sale of poorly manufactured shingles, as overdrying and the putting of thin shingles in bundles have caused considerable loss of trade. It will issue a blacklist of Eastern buyers who take advantage of the shippers' distance from the market to put in claims for shortage, broken bunches, poorly manufactured shingles, etc., and thus enforce deductions. As it would involve costly litigation to fight these claims, the shippers have been in the habit of allowing these deductions despite their injustice, but under the blacklist such dealers will have difficulty in buying, as the association controls the output. The association will attend to relations with the railroads, such as rates, supply of cars, claims, etc., and will protect the manufacturer against unscrupulous Eastern as well as Western dealers.

A member of the association spoke freely of the purpose of organizing. He said: "The object is primarily for the general advancement of the interests of our lumber and shingles in the Eastern markets. The absence of hearty co-operation in the marketing of Coast lumber products has left the way open for combined action against our interests by the white pine and cypress manufacturers. Fierce competition among those marketing this Coast product, particularly cedar shingles, has resulted in overdrying to such an extent that complaint is received daily, and unless speedily remedied threatens the very existence of this important industry.

"By reason of our distance from the markets, many unjust claims are made by Eastern buyers and money is lost to our manufacturers and shippers for want of some method of self-protection, such as an association for mutual information would give them. Again, the majority of the small mills do not sell their product direct, and not being posted on the Eastern shippers, fall an easy prey to their offers of 75 cents advance on bills of lading. By reason of such losses and general low prices they become careless as to grades of manufactures and as a result our cedar trade is permanently injured. These shippers and dealers believe that by such an organization they can promote the interests of the manufacturer, as well as their own, and gradually lead to a permanent improvement in quality of manufacture and price."

The boycott declared by the Seattle Shippers' Association against the Northern Pacific railroad was also discussed, but no action on the subject was taken. Many of those present seemed to think it would be poor policy to antagonize the Northern Pacific, as the shinglemen depended chiefly on that road to transport their product to the East.

Meetings of the association will be held monthly.

Owing to the greatly increased demand for lumber and the advance in the price of logs, a meeting of Puget Sound sawmill men having facilities for shipping by rail is to be held some day next week, either Tuesday or Wednesday, to discuss the advisability of advancing prices. The movement began with some millmen north of this city who claim that the advance in logs has made such a step necessary.

There is daily increasing activity at the large mills. In fact a majority of them are running night and day, but prices have not advanced since the revival began.

“It will issue a blacklist of Eastern buyers who take advantage of the shippers' distance from the market to put in claims for shortage, broken bunches, poorly manufactured shingles, etc., and thus enforce deductions.”

— Printed in The Seattle Post-Intelligencer (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895
Then · 1895131 years apartNow · 2026

A roomful of mill owners agreeing to blacklist buyers who short-paid them, and to present one front to the railroad, is an early blueprint for the trade association — and for the antitrust questions that follow. The Northwest timber economy has always run on exactly this kind of collective bargaining over prices, freight rates and who absorbs the loss.

The original page

The Seattle Post-Intelligencer (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-06-18. Library of Congress, Chronicling America.

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From
The Seattle Post-Intelligencer (Seattle, Wash. Terr. [Wash.]) 1888-1914, JUN 18, 1895, Page 5
Text
Cleaned up from the page — spelling and layout repaired — not a word-for-word transcription. The page itself is above, for exact wording.
Rights
Public domain
Place
47.60323, -122.33028 · placed automatically
The paper in the Library of Congress catalog ↗