Lumber Industry Shows lmpressive Gain Last Six Months of Year

Expects Residentiol Buildins rn 1939 to Beter 1938 Fisures

Washington, Dec. ZO-The lumber industry staged a considerable recovery the last half of 1938 from the recession of the previous trvelve months, the National Lumber Manufacturers Association declared today, booking new orders in September, October and November 19% above orders for a similar period last year as compared lvith the first six months period in which new bookings fell 23% belolv that ol 1937. Orders for the entire year showed only a 5/o loss Irom 1937.

Demand for lumber for building during 1938 was about equal to last year's demand, due to the gains in residential building in the last half of the year. Residential building in 1939 is expected to be 25% above 1938. Demand for rvooden box material increased during the last half of the year. Two important sources of lumber demand, however, lagged greatly, namely exports and railroad purchasing. Lumber exports in 1938 were lowest in 16 years. War in the Orient and unrest in Europe do not promise any appreciable recovery in the near future. In the meantime lumber imports are increasing though they were not so high in 1938 as in the previous two years. The outcome of the United Kingdo'rn-Canada trade agreement negotiations was disappointing to the lumber industry which hoped for rvider opportunities without tariff discriminations in Great Britain and its possessions than is now indicated.

Due to the financial conditions of the railroads and their comparatively lorv traffic records of 1938, buying of materials and equipment was discouraged. Railroads usually buy large quantities of lumber, often 10 or 12 per cent of the total production. In the first nine months of 1938. railroad purchases from manufacturers were less than half of the similar ,period of 1937. Some renewal of buying took place in the last weeks of 1938 and it is believed 1939 u'ill see substantial increases over last year.

Lumber consumption by the wood-using industries suffered considerable loss in 1938 as compared with 1937. The outlook for 1939 is encouraging, especially in the furniture industry which is now the largest user of hardwoods ancl in,creases its orltput lvith advancing reside.ntial construction.

A stimulant to the sale of lumber during tl-re year lvas the sale of timber-joint connectors for light and heavv frame construction such as bridges, towers, grandstands, warehouses, airports and docks. During 1938 over 1700 structures were built with these connectors, using over 7O,00O,00O feet of lu'mber.

Considerable progress in the revision of the American Lumber Standards was made in 1938 and it is expected that this important Standards publication u'ill be underu'a1' by the first of 1939.

Prices on lumber during 1938 were lower in the aggregate than in 1937. The Bureau of Labor Statistics index number on the basis of 1926 as 10O averaged 9O.4 for tlre first ten months as compared with 99 in the year 1937. As the year closes the pri,ce trend is moderately upward, partlv due to added labor costs resulting from the Fair I-abor Standards Act. This is expected ,particularly to affect lumber costs and prices in the South.

In the rvorking out of a national forestry policy some progress was made in 1938. Follo'iving a message from the President, the 75th Congress established a Joint Congressional Committee on Forestry, to revielv the national situation and recommend to the next Congress such measrlres as may appear desirable to place the Nation's forests on a continuous production basis. The Comrnittee has held two hearings. It is expected that in,creased Federal support of State and private efforts to protect forests from natural hazards and educate forest orvners in better mana€fement practice will be provided by the T6th Congress.

In the forest industries there has been considerable extension of forest practice rules to management of private timberlands. The greatest needs are for increased domestic and foreign markets to provide outlets for products of forestry. Trade agreements consummated during the year by the American Government failerl signally to meet this need.

Comparative Cost of 5-Room Bungalow Building Materials Manufacturers Will

for Years 1920-1938

']'he cc'mparative cost of lumber to the co,nsumer for a S-roorn bungalor,v as prepared by F. N. Gibbs, Gibbs Lumber Cornpany, Anaheim, each year since 1920 appears below. We have published these figures for the past several years, and our readers look forwar.d to getting this information.

'l'he rnaterial list contains 9366 ieet of lumber.and includes the following:

Launch Low Cost Housing Program

Washington, D. C., December 2O.-Taking the initiative in what promises to be the broadest single undertaking in low cost housing yet attempted by private industry, representatives of the country's leading building materials manufacturers met here today with housing authorities to complete plans for a nation-wide program to provide housing {or families in the $1200 to $2000 a year income class.

tsrought 'together by the joint efiorts of the National Lumber Manufacturers Association and the National Lumber Dealers Association, the group, which held its meeting in the Carlton Hotel, discussed final details of a plan which u'ill make available the latest in living accommodations to the mass of American families able to pay only $25 to $35 a month for shelter.

Drayage Sales tax

Comparative Cost of

Oct. I, l9N

Oct. l, I92l

Oct. l, 1922

Oct. l, 1923

Oct. l, 1924

Oct. l, 1925

(')ct. l, 1926

OcL l, 1927

Oct. 1, 192.9

Oct. l, l9D

Oct. 1, 193O

Oct. 1, 1931

Oct. l. 1932

Oct. 1, 1933

Oct. 1, 1934

Oct. 1, 1935

Oct. 1, 1936

()ct. 7, 1937

Oct.

SPENT CHRISTMAS Oscar

IJousing research groups rvhich have spent months seeking a solution to the problem of adequate, low cost housing, rnet with architects, engineers and techni'cians who are authorities in every field o,f housing construction, in a coordinated effort to perfect a better standard of living for the lorv-income class.

Government housing officials participated in the conference, along with representatives of the plumbing,.heating, insulation, refrigeration, cement, electrical, lumber, copper, brass, milhvork and allied industries. Present also rvere representatives of housing research foundations, contractors and realty dealers.

Upon completion of final details of the program by the first of the 1.ear, it is planned to launch a campaign on a nation-rvide scale to stimulate the construction of the homes in every community, making them available chiefly through local co,ntractors, lumber and building supply dealers.

Plans so far worked out.indicate a variety of home styles rvill be made available, flexible as to size from three to seven rooms, and which can be adapted detached, semi-detached and row-house types. Demonstration projects already are planned in a number of communities.

The entire undertaking will be initiated locally with the aid of private capital. The only Federal ag'ency which might enter into the picture is the Federal Housing Administration, whose mutual mortgage insurance plan it is planned to utilize in financing the sale of the homes to individual families.