THE CALIFOR}IIA LUMBERMERCTLANT JackDionne.funrchm

Minimum Prices Under Lumber and Timber Products Code are Suspended

National Industrial Recovery Board Terminates Long ControverryOther Code Provisions to be

Washington, Dec. 22-The National Industrial Recovery Board this afternoon ordered the immediate suspension of all of its orders establishing minimum prices under the Lumber Code. The order follows a long agitation of the price question and a hearing by the Board on December 11-13, 1934, following an application of the West Coast Logging and Lumber Division and some other administrative units for the suspension of prices in their jurisdiction. The Board found that prices should be suspended in those Divisions, and that the interrelation of the industry is such as to require suspension of all other prices under the Code.

Major David T. Mason, executive offrcer of the Code Authority, authorized the following statement:

"Pri'ces are out of the Lumber Code but that does not mean that the Lumber Code is washed up. Today the National Industrial Recovery Board ordered the suspension of ininimum prices under the Lumber Code, effective immediately, but in the same Order emphasized reliance on production control as a stabilizing fa,ctor, and in addition provided for the study of costs and prices, with the object of taking steps to deal with destructive price'cutting if and to the extent that the practice develops in the industry.

"Our Code as originally approved by the President substantially shortened hours and greatly increased wages in our industries. To protect working capital in order to be able to pay the increased wages and to meet other in'creased expense due to shortened hours and the,conservation features under our Code,the President authorized two measures of prime importance. These measures were production control, to balance supply with demand, to prevent destru,ctive over produ,ction, and price control at levels below full cost but sufficient to return out of pocket expense. Unfortunately failure to include the wholesalers under the Code, failure to promptly prosecute code violators in the early stages of code operation, and later conflicting decisions in the lower Federal ,courts, led to serious impairment of the price stru,cture in some Divisions.

"Testirnony at a public hearing in Washington on De- as Essential cember ll, 12 and 13 showed a serious breakdown of prices in a few of the more important Divisions. While the maintenance of price control was advo,cated for most of the Divisions at this public hearing, the NRA Board on the basis of the evidence presented has by today's order determined that it is impracticable to maintain prices in some of the major divisions and that if prices are not maintained in these divisions, it is not practicable to maintain them in the other divisions of the industry. There{ore, the'Order eliminates prices in all divisions of the industry but indicates that production ,control must bear the brunt of stabilizing the industry. The Order also provides for investigation of costs and prices with the object of observing destructive price cutting, if it develops, and of taking steps to prevent it in,case it does develop.

"The action of the Board eliminating prices is regarded as'clearing up an impossible situation in some divisions and at the same time it brings a bitter disappointment to other divisions. While this acti'on undoubtedly will create serious disturbance in the industry as a whole, every effort will be made by the leaders of the industry to minimize the difficulties and to restore order as promptly 'as practicable. NRA has already taken steps, for all codes, designed to bring vigorous prosecution of hour and wage violations; at the same time we expect vigorous support from NRA in maintaining production control.

"The industry is in rough water but it will weather the storm."

The operative part of the National Industrial Recovery Board order, after calling attention to the fact that Article ., VIII of the Lumber Code, which provides for the control of production, is still in full force and effect, ,concludes as follows:

1. That Administrative Orders Nos. 9-46 and 9-58, dated July 16 and July 25, 1934, respectively, and all Administrative Orders supplementary thereto be and they hereby are suspended;

2. That the Research and Planning Division be and hereby is directed to study the prices at whi'ch lumber and timbei products are sold or ofiered for sale and to advise the National Industrial Recovery Board whenever said di vision determines that destructive price-cutting exists as to any item of said products; and

3. That, subject to the provisions of Article IX of said Code, this order may be stayed as to said reasonable costs of any item or items of said products and the rules and regulations for their application, whenever the National Induitrial Recovery Board finds that destructive price-cutting exists with respect to said item or items.

Suspension Of Minimum Prices Dioes Not Apply To Retail Lumber Code

The immediate suspension of minimum prices under the Lumber and Timber Products Industries Code which was ordered by the National Industrial Recovery Board on December 22,1934, does not apply to the Retail Lumber Code.

The Lumber and Allied Products Institute of Los Angeles in an Association bulletin sent to its members on December24in referring to the suspension of minimum prices under the Lumber and Timber Products Code by the National Industrial Recovery Board pointed out that-"The decision does not apply to the Retail Lumber Code, it applies only to the manufacturers' code. The cost recovery provisions and all other provisions of the Retail Lumber Code are just as they were."

Achilles' Heel

made him vulnerable to mortal attack. It would have been a Iife-saver if that one spot could have been protected.

Vulnerability to attack bY drY rot, termites and decaY is the Achilles' Heel of the otherwise perfect structural materialWOODbut lumber Pressuretreated with REITLY TRANSPARENT PENETRATTNG

CREOSOTE has been rendered invulnerable to attack from lbdflyf4i*emies.f$

Redwood Program Packs Punch

Unusual interest is being taken by retail lumbermen in "Redwood Reveries," the radio campaign being sponsored by california Redwood Association in the interest of better built homes.

The reason? Because this is a campaign that has a "hook" in it which actually brings prospects and customers into the retail yard.

During each weekly broadcast a prize of $25 worth of California Redwood is offered free to the person who writes the best letter telling how he or she intends to use Redwood either in building a new home or in modernizing and improving an old home'or garden.

The campaign has the dual purpose of helping to get a share of the modernization money flowing into retail lumber channels and at the same time making people realize the desirability of using durable Redwood for all vital spots in the home and in garden equiPment'

In addition to the $25 redwood ptize, the ten persons who have written the next best letters are sent a $1 credit certificate, good at any retail lumber yard, to encourage them to carry out their building project.

The entertainment on "Redwood Reveries" 'consists of vocal selections of hearthfire songs, with Paul Carson at the organ.

The broadcast takes place each Tuesday night at 7:30 over KGO.