ith the independent wholesaler

serves as excellent reference. Check the number of wholesalers you were listing in your post War II issues against those listed today. The list has diminishedT5%.

Q: Between independent wholesalers and mill reps you seem to find a distinct hiatus.

A: Indeed I do. Mill reps do not operate on their own capital. Essentially they are salary and/or commission men. The position enjoys the further advantage of a constant source of supply. But some autonomy has been sacrificed. The independerrt wholesaler buys from many, many mils-including quite a number of the captives.

Q: But can the independent compete with the monolithic mill dominated operations and their reps?

Story at a Glance

A: Under circumstances of a price war at the docks or a surfeit of transit cars he's a fool if he attempts mono a mano confrontation. At the same time he's in an ailvantageous position: Often he can buy from the mills at prices equaling or even bettering the embattled market, and at a modest profit to himself, or he can turn from the selling of fir dimension focusing his efforts in other areas. Then too, he can find a special niche for himself.

Q: Can you tell me more about the "special niche"?

A: Yep. Under such circumstances I find I'm concentrating essentially in three areas-random hem-fir, studs of all species, and the block specifications.

Q:Would you tell me more of these "block specifications"?

A: Certainly. The block can be rail, cargo, truc* and trailer, or any combination of the three. Let's use a hypothetical case: A retailer wishes to buy ahalf million feet of specified fir dimension. If he will permit a small percentage of additional random stock we can generally maneuver the entire spec into a random length price. Furthermore, I sell it close-I have to. Competition in this snake pit is bare-fanged. But look around this office. Do you know of any similar operations with a lesser overhead? I can sell low and still make a modest profit. And there's a side goodie: generally I'll buy stock in excess of the specification. Such stock is readily salable to other yards.

Q:What do you think of the transit car operations?

A: Ideal for those who wish to deplete their capital and increase their blood pressures. I've done it and spoken to others who specialize in it. When they bare their souls they'll admit that over the long span, say ayear, it's a money loser. They argue "It's an opener. Through it we gain access to additional mill placement business.".....Comme ci comme ca! The odds against the transiter are 2 to l. The mill sells when it thinks it's getting a good price or the time is ripe. The retailer buys when he thinks he's beating the market or it's at its low. Two stances pitted against one. Of course, there are other circumstances too. The buyas-one-needs philosophy for one.

Q: Do you have anything further add?

A: Yes. Let's retire to the local bistro.