The California Lumber Merchant - January 1934

Year 'round production for year 'round service

The Red River mill and factories at Westwood are in full production throughout the year. This \eeps up a balanced stock and permits prompt shipments. rfi/ith lumber, plywood and wallboard, cutstocks, mouldings and box shookmade and loaded at one point, the Red River Mixed Cars sglve _ma?y -of the buyer's problems. They enable the dealer or manufacturer to maintain the necessary assortment of stock with the smallest inventory and Iowest handling cost.

RED RIVER '?aul Bunyan's" SUGAR PINE and CALIFORNIA WHITE PINE with the cost-reducing working qualities of soft, even texture, plus Red River manufacture and seasoning and Red River dependable deliveries.

"Producers of White Pine for Over Half a Centu4r',

DOUGLAS FIR CEDAR SPRUCE HEMLOCK PONDEROSA PINE

UNTREATED AND TREATED PILING POLES TIES AND POSTS LATHS AND SHINGLES

The pick of the Northwest woods delivered by Mdormick straight-line service. From McCormick timber stands to your yard. Vhen you need unusual dimension, fast delive,ry, dependably good lumber, treated or untreated poles, piling, timber or ties, McCormick can help you. Get our pdces.

461 Mar&et Street San Francirco Phone DOuglac 2561

*Advertirements appear in alternate issue.

Acrcciated Lumber Mutuals ----------------------2t

BootstaverBurnc Lumber Co. ----------------------21

Booth-Kelly Lumber Co. -- - -----

Brice & ffoward TrucLing Co. --------------------19

California Panel & Veneer Co. -----------I.B.C.

California Redwood Aceociation, The ---------*

California Vholesale Lumber Ass'n. ---------*

California Saw Vorke -------------1,

Celotex Company, The

Clramberlin & Co., W. R. ---------- 2l

Cooper Lumber Co., W. E. ------------------------- 5

Cooe Bay Lumber Co.

Dallar Machine & Locomotive Works----------13

Dotbcer & Carron Lumber Cr. ----------------------21

Elliott Bay Sales Co. --------- t

Hammond Lumber Co. ----------------------------------21

HiIl & Morton, Inc. --------------------------------------21

Holmes-Eure&a Lumber Co. -------------------------21

Ffoover, A. L. ------------ --------------21

Koehl & Sons, fnc., Jno. W. -------------------21

Laughlin, C. J. ----- ------ ---------21

Lawrence-Philips Luniber Co. -----------------------21

Long-Bell Lumber Sales Corporation ----------21

Loop Lumber Company -----------19

Mdormict Lumber €o., Chas. R. ---------- - -- 3

Moore MiIl & Lumber Co. -------------------------21

Mulligan & Co., W. J. -- --- -- -----------O.F.C.

Pacific Lumber Co., The ----------------------------ll

Parafrne Companier, fnc., The ----------------------8-9

117 Vest 9th Sreet Los Angelec, Calif. Phone TRinity 5241

M. ADAMS Cirqlatlor Muagcr

A. C. MERRYMAN Advcrtieb3 Mrugctr

THE CALIFOR}-IIA LUMBERMERCHANT J*kDiorne, fublisltff

Incorprated udrr thc lawr ol Crllfcnia

J. G Dimc, Prcr. ud Trear.; J. E. Martlq Vte-Pns; A C. Merrym' Jr.' Secy. Publirhcd rie lgt and l5th of ach D6th at 3lt-l!-2e Central Building, lOt Wcgt Sixth Stnot, Loc Angeter, CaL, Telqhom, VAndike 1565 Entmd u Scend-clars utter Septmbcr 6, l!tl, at tla Poct ofle at ls Angeles, Calllomia, uader Act of March 3, le?t

Subrcription Pricc, f2.l[ pct Ycrr Single Copierr 25 ccntr cach.

LOS ANGELES, CAL, JANUARY

How Lumber Looks

In accotd with the usual seasonal trend and because of holiday shutdowns, ordets booked at the lumber milts during the last two weeks of 1933 wete down to the levels of the fitst week of dre year and production rias lowe,st since Marcfu ac. cording to reports to the National Lumber Manufacturers Associrrtion froan regional associatioru covedng the operations of leading softwood and hardwood mills. 11190 Amedcan mills repordng for the.weck ended December 30 gave production as 99'q12'0OO feet; chipments, llt,46.tr000 feet; ordere, 87170610{lo fet. Reporte of 22 Bitish Columbia mills during the same week wete productiono 91516000 feet; shipments, 9r7E4r000 feet; ordere, 12r98oPfl) feet. r * *

A total of 516 down and operating mills reporting to the Vest Coast Lumberments Associatiorl for the week ended December 30 ptoduced 44,1051144 board feet. This was a decreaae of approximately 2Erfi)0r(XX) feet under the preceding week.

New business reported for the week by 496 mills was 53r746,958 feet against a production of. 431641302 f.eet and shipments of 6116911704 f.eet. Shipments wete 4t.4 per cent over production, and current sales were 23.1 pet cent over the output. Orders booked for the week by this group of mills were 10,000,000 feet or 24 p:

the preceding week.

The Southern Pine As.eociation for the week ended December 3O reported new business fot 127 mills as 151627rOOO f.et; shipments 16,717r00J.. f'eet, and, ptoduction l3r423rOOO f.et.

LUMBER FIRM INSTALLS TELETYPE

Schafer Bros. Lumber & Shingle Co. recently installed a teletype system connecting their Montesano, Wash., San Francisco and Los Angeles offices. This will enable the California offices to keep in closer touch with each other and with the head office in Montesano, and to give better service to their customers.

The system also puts the firm's offices in touch with all other users of teletype machines.

PLYWOOD FIRM'S HEAD VISITS STATE

Craig L. Spencer, president of Elliott Bay Mill Co., Seattle, manufacturers of -BIG TIMBER- plywood, is on a month's trip to California and Arizona. Mr. Spencer is traveling by automobile accompanied by his son, and is combining business and pleasure on his.tour.

While in Oakland he conferred with Llovd Harris. manager of the Elliott Bay Sales Co.

Orders were 16 per aent above production and 7 pet cent below shipments. Shipments yo:25*per cent above production.

The Vestern Pine Association for the week rqrorted new business for 119 mills amounting to 14,O47,000 feet; shipmgnts l6r457r0iJ{J feeq and productlon 16,006,000 feet. Orders were l_? W, cent below production and 15 per cent below chipments. Shipments wete 3 per cent above production.

The California Redwood Associatioti for the saime week repoted producion from 19 mills as 4r4O9,OOO feet; shipments 4,26210[0 feet, and new business 3,235,O0O f.eet. Producion of t7 mills was 38 per cent of normal production" Ten identical mills reported production 76 per cent greater and new business 3 per cent flr.t*ahT f_* S" same week last year.

432 hardwood mills for the week ended December 3O gave new business as 12r955,(X)0 feet, or 58 per cent below production, and shipments 22rl74,OOO feet, or 28 pet cent below production. Production w1s 31,0!1,0*00 feet.

The California situation shows no change. Cargo and rail buying is slow and the consumer demand is not active. Unsold stocks on the public docks at Los Angeles harbor totaled tg7rffiO feet on January 8. 54 vessels were operating in the coastwise lumber service on January 3; 51 vessels' were laid up. Totd Fir and Redwood cargo arivals at Los Angeles harbor for the yeat 1933 were as follows: Ffu 422rO5910O0 feet and Redwood 3O,4l9r0OO f.eet.

WILLIAM SWINDELLS VISITS SAN FRANCISCO

William Swindells, sales manager of the Willamette Valley Lumber Co., Dalles, Ore., was a recent San Francisco visitor where he conferred with officials of the Santa Fe Lumber Co. The Santa Fe Lumber Co. are the California representatives of the Willamette Valley Lumber Co.

A. TRIECHMANN VISITS CALIFORNIA

A. Triechmann, President of the Fordyce-Crossett Sales Co., Crossett, Ark., was a recent Los Angeles visitor where he spent a few days calling on the hardwood trade.

EASTERN LUMBERMAN I/ISITS COAST

Tom Oleson of Lawrence R. McCoy & Co., wholesale lumber dealers of 'Worcester, Mass., r,ecently spent a few days in San Francisco on his way home from a tour of the Pacific Northwest.

J. E" MARTIN Maaagfry Edtc

Simplifled Lines, Competitively "Plenty of Rabbit St"*" Priced, Feature

Paraffine's New Policy

SAN FRANCISCO-The Paraffine Companies, Inc., states: "We are firm in our resolution to 'smash every major roofing problem of jobbers and dealers'." The Paraffine Companies, In,c., recently announced their new roofing policy which features a pricing structure to meet every competitive condition, a bold simplification of the line and a radical quality improvement in their number one line with an aocompanying lowering of pri,ce.

A,cknowledging the influence of NRA, Paraffine, large - Western manufacturers of Pabco, Malthoid and Durable brands of roofings and allied commodities announces that its new price set-up will enable independent jobbers and dealers to .compete with chain organizations. Jobbers, Paraffine says, under the new schedule will be able to buy at the same price as the chain stores and dealers will be able to meet this competition and still make a good profit.

A line simplified to three grades containing but nine items is their second announ,cement. Easily comprehended are the reasons for this move Paraffine states: Smaller investments for the dealer and jobber; less inventory; quicker turnover; easier selling; more profit. A,ccording to Paraffine officials the newly simplified line eliminates the probblem of overlapment of grades and with but nine items, they feel positive that every roofing need may be satisfied.

And of equal importance, Paraffine says, is the third feature in the new set-up, their number one grade in smooth and mineral surfaced roofing, the famous Standard brand is to be "Vitalized" as well as double coated. Fuqther, they state it will sell at a lower price. "VitaIization," it was explained, is a major improvement re,cently made whereby longer life is given to roll roofings.

Paraffine Companies say: "In back of the entire announcement is the Company's published resolve to make 1934 its Golden Jubilee 5oth Anniversary, a 'banner year'

Bill Horsley, of Seattle, sent out a New Year's card in which he wished all his friends "plenty of rabbit stew in 1934." Then he explained the rather vague wish by telling the following fable:

Once upon a time there was a man who discovered that he could run faster from a lion than he could after a rabbit. One day while marveling over the fact that the rabbit always got away when he chased it, and in escaping from the lion he always ran faster than any rabbit was ever known to run, it came to him that if he could only be chasing bunnies at the same time he was fleeing from lions he would always be able to capture the one at the same time he was getting away from the other. After that he always had rabbit stew fop dinner any day he got between a lion and a rabbit, and he went looking for lions every day.

MOVES TO NEW WAREHOUSE

E. G. Reel, "Reel'n Lumber Service, Los Angeles, has moved to his new warehouse at 63rd Street and Hooper Ave,. Los Angeles. The new building was especially designed to meet their needs. The telephone number is CEntary 25677.

MAKES FIELD TRIP

Max E. Cook, agricultural engineer, The Pacific Lumber Co., San Francisco, returned January 13 from a field trip through the Coast Counties, as far south as San Luis Obispo. He traveled with Lew Blinn, the company's salesman in that territorv.

for all its trade. Featured in an announcement to the trade is the interesting history of the Company in the roofing industry. 'First to find a use for California asphalt; originators of asphalt-prepared roofing; founders of the roll roofing industry; foremost in devising methods for the proper distribution of roofings through jobbers and dealers' -these are the established claims of The Paraffine Companies, fnc."

V.sabond Editorials

By Jack Dionne

My country 'tis of thee, Sweet land of Code-erY, Of thee I sing; Long may our land be gaY, While the Blue Eagles PlaY' Protect us NRAFrom everYthing. *t,;

Just after the Civil War in a certain small Southern town a man came into a store and paid a debt with a twenty dollar gold piece. It was a known fact that that was the only twenty dollar gold piece in, that town. In three weeks' time that twenty dollar gold piece had paid sornething like two thousand dollars' worth of debts and finally returned to the man who put it in circulation.

Wise guys in finance would have you believe that putting a lot of money into circulation wouldnlt help things a bit; it would all go right back to the banks and freeze there. Which is pure hooey t Every cotton growing district of the South can testify that the money paid the local farmers for plowed-under cotton last fall, changed hands so many times that it actually put the district to a large extent out of debt, and brought actual prosperity locally. And you can contrast that with great and pitiful stretches of territory in the Old South today that did NOT get such cotton money, where the possession of a dollar in cash marks a man as a plutocrat.

In Biblical days a prophet was "not without honor save in his own country." Nowadays a profit is practically without honor, because in the first place you seldom make one, and in the second place if you do the income tax man will take most of it away from you.***

Pity the poor advertising industry. Sky-high income taxes promote advertising. Business, knowing that above a certain point its profits will be taken, prefer to buy publicity with it, and thus build their business. So the advertising man sees profits ahead. But if he makes much the income tax will take it away from him. ***

Anyway, worry about losing their excess profits via the high-bracket income tax route is one trouble that is not going to wrinkle the brows of the lumber trade press THIS

year. If they can get back to paying themselves and their help a living wage they will feel that 1934 is a howling success. Let the high-bracket boys do their own worrying. rt**

Don't fail to read Dr. Wilson Compton's article, written for "Nation's Business" for January and reprinted in full in this issue. The excellent Manager of the National Lumber Manufacturers Association and rnember of the Lumber Code Authority does the best job of picturing the effect of NRA on the lumber industry that anyone could do. It's the best job of writing I ever knew my friend Compton to turn out. I always thought if he would cut loose from about fifty per cent of his scholarly dignity and start throwing punches from any angle he could do a swell job of writing, and he HAS. Congratulations, Dr. Compton. *d(*

I am convinced that the stimulation of private enterprise is today the one great vital need of this nation. It's the only route that will ever put men back to REAL workperrnanent, productive labor. ***

This session of Congress would be an unalloyed blessing if it could develop ways and means for relaxation of credit and restoration of financial confidence. If they will intelligently approach the all-important subject of inducing investors to put their money into comrnerce and into industry, rather than scaring them deeper and deeper into their hole by "soak-the-rich" tactics, they can help get business moving into healthful rather than artificial channels, and do wonders to get men back to work-real work. ***

But if they adopt the policy of "take-it-from-those-whohave-it," naturally those who have it will keep it. And the wheels of industry and commerce-particularly of CONSTRUCTION-wiII remain idle. They will buy good old Uncle Sam's bonds with their cash; and buying Uncle Sam's bonds will never even start to solve this problem. When men feel that it is safe to loan money, to invest money, and are assured that if they make a reasonable return on that investment and on that-at present at least-business gamble they will be allowed to enjoy the fruits thereof-then, and then only will the capital goods industries revive. But if the feeling is "no use to take a chance on making money when they'll take it away from you anyway," things will drag. Prohibitive income taxes

can have but one effect; they invoke the age-old law of diminishing returns-to the very vanishing point.

How utterly unwise is the effort to stifle criticism of present Governmental activities during the present session of Congress ! Navigating as we are on uncharted financial, economic, and industrial seas, forbidding intelligent criticism at this time would be tragic-might well be fatal. It would be like tearing the governor from a steam engine and letting it run loose. Whenever this nation arrives at that hour when the honest and loyal criticism of its servants is forbidden or stifled-then God help us, for in that way-and in that way only-may the reign of chaos and old night be brought about.

Rather should -" """:r;"

trr.,""tigation and the criticism of everything we have been doing. Only the avowed infallibility of our administration and all of its departments would justify any other procedure. This is a Democratic, not a bureaucratic form of government, and in such times as these a "yes-ing" Congress would be an utter calamity Don't muzzle your representatives at Washington at this time. Tell them everyone to stop, look, listen, and then speak wisely and firmly.

Lumbermen everywhere still have a distorted idea of the proper relationship between the Lumber Code Authority, and their own administrative body. From every part of the country lumbermen with problems to solve or arguments to settle "take it up direct with Washington." And that they cannot do. The Code plainly states that you must take your problems and your kicks and your claims to your administrative body for adjustment. And only when they cannot be settled there, or when you feel that you are entitled to an appeal in the matter, do you take the case to the Lumber Code Authority, furnish it with your facts and your clairns and your data and correspondence. And, the Authority will then act in the matter, but only as an appeal court between the disputants. Every case must go to the local or regional administrative body FIRST. The lumber industry code makes the industry self-governing. You must settle your problems within your own group, and only when that cannot be done must you take it higher. Don't send your problem "direct to \f,fashington." The only authority Washington has under the Code is to send it back.

one of my friends -; ; ;" *", to washington to have some Code questions answered. He contacted a man

(Continued on Page 10)

RY

As originator of asPhalt prepared roll roofing and foundet of the entire roofing industryr The Paraffine ComPanies,Inc.-now 50 years old-starts its great Golden Jubilee Year with a new merchandising policy of titanic importance to roofing distributors! It is a policy of six-folil magnitude. . . a policy that is going to make it easier for yout organization to sell roofing

make it easier for you to carry adequate stocks

lower your necessary stock investment quicken your trun-over

. increase your volume

and INCREASE YOUR PROFIT!

EXTW! EXTRY!

Most Sensational ofall Wroaements in Roofing Mercbandising ! A SIMPLIFIED LINE O '

AND COMPETITIVE PRICES!

$7'e have reduced our roofings to just 3 grades. There were 6. You can now carry complete stocks with about half the inventory. Simplification makes easier selling more sales.

And, we are putting into yout hands the most powerful instnrment that you have evet had competitiae prices pdces that enable you to meet chain'store competition with qaality products tbat shou, loa a good. proft!

Here is your opportunity to do a lion's share of the roofing business in yout territory. Grab it! Qaick!

Miner al S ur I ac e d Ro o f.n g

PABCO-MALTHOID-DURABLE

The only trible-coated roofinqs made. Special iolled-in granule surfice. And now VITALIZED by a patented process.

D ouble-C oat e d Srno ot b Ro o fn g

PABCO-MALTHOID.DURAB LE

The onlv doable-coated smooth roofinss made. Tougher. More flexible Uoi. weather and wear resistant than ever. And now VITALIZED bv a oatented process The peer of smobth ioofings.

Sin gle -C o at e d. Srno ot b Ro o f.n g

PARAMOUNT-SANTO.

RAINTITE

Enabling you to successfully meet any type of competition. in quality in pnce. in satisfactory service.

lYhat a"set-uf' for a BigRoofngBusiness!

Vagabond Editoriafs

(Continued from Page 7)

in the Authority who listened patiently while this lumberman presented his questions. And, when the list was ended the official smilingly asked: "Now, old man, why don't you just READ THE CODE? For every question you have asked is answered and explained perfectly plainly in the Code itself. There was no need for you to come to Washington. We have no authority to change a word in the Code. And, all your questions are answered in the Code so that your little boy can understand them." And, lots of others do the same. They won't read the Code; or if they do they write or wire or phone Washington to ask if the wording of the Code is exactly what is meant, etc. And, the boys at Washington patiently answer: "The Code is the law. We cannot change it. What it says, it means.t'

Some folks actually get huffy because Washington won't find some way to interpret some plain declaration of the Code to make it mean not exactly that. In one place the Code says that a certain person and that person "alone" can do a certain thing. And, rnen write in to ask if that means that no one but that person can do that thing. Etc., etc., etc. Read your Code. If you have a problem take it up with the administrative body in your own group. And, only as a last resort, and as an appeal giving the Authority full knowledge of the case, take it to Washington.

In a large portion of the country the retail lumber industry is taking a lively interest in a proposed law which U. S. Congressman Warren J. Duffey, of Ohio, is to introduce at this session of Congress. It is expected that the retail Iumber industry generally will be asked to get behind the law and see that it is passed. This law would provide a government fund of $500,000,000 to finance the construction of homes to cost $6,000 and up. (It being the understanding that under $6,000 financing is going to be done by RFC.) This bill will provide for loans on homes, apartment buildings, and duplexes, the limit per unit to be $20,000. The outline of the plan is that the Government shall loan this money to existing building agencies such as building and loan associations, insurance firms, savings banks and trust companies at 4Vo interest, and the agencies shall re-loan it to builders at not over Sf/s interest with 18 years to pay, loans to be not over 75/s of the combined cost of house and lot. More of this plan will be found elsewhere in this issue.

I'm inclined to stoutly favor this law, without having given close study to its detailed provisions. I'm for any sensible and practical effort to allow government, with the huge sums of money it is broadcasting throughout the land, to finance the building of homes. I utterly fail to understand why the Recovery Administration itself, shooting in all directions in its effort to create employment, has not seen fit to finance home building for that very purpose. Certainly there is no fashion in which money can be spent that will give more substantial employment and leave behind sound values for the money, than in the building of homes. Long teffn money at low rates of interest for home building would immediately put millions upon millions of men to work at REAL productive employment, and when they finished we would have a land of better homes to show for the money. Five million men could be put to work in 90 days, and kept working for more than a year, if the same sort of terms were ofrered for home building that are ofrered for public works.

What an impressive lesson in "u/im, wigor, and witality" the motor car industry is giving the rest of the [usiness world right now. As this paper goes to press the annual automobile show in New York City is the best, the biggest, and the most progressive in the history of the motor car industry. Instead of back-tracking, or of retrenching to fit retrenched incomes, the motor car industry is showing more advances in motor car construction than was ever dreamed of before. They are all making bigger, better, faster, easier-riding, more luxurious cars than ever before. Instead of 'taking a step backward. because the depression is still on, the auto industry takes its greatest stride FORWARD.

**{.

And their optimism is rock-walled by the things that have been happening to their own corporation stocks. Just as an example: Auburn stock is 81 per cent higher today than it was during its lowest point in 1933; Chrysler stock is 638 per cent higher-the difference between 8 and 59; General Motors is 260 pef, cent higher; Graham page is 200 per cent higher; Hudson is 400 per cent higher; Hupp is 100 per cent higher; Nash is L2? per cent higher; packard is 100 per cent higher; etc., etc. And, wonderful as it may seem, they are looking for one of the very biggest selling years of their history in 1934. Can you beat it?

MY FAVORITE

By, Jack Dionne

not guaranteed---Some I have told

STORIES

for 20 years---Some less

Just One Obiection

This recalls the old story of the colored cook who quit her job and when asked by the white lady why she was leaving replied that there was "too much shiftin' of de dishes fo' de fewness of de vittles."

Two darkies were talking over the merits and qualifications of their respective motor cars, both typical, worn, shabby old wrecks.

One of them said, "You know sump'n, deys jus' one reason why Ah caint run disheah cah o" mine two hunderd miles a houah."

"An'whuts dat reason?" asked the other.

"De distance am too long fo' de shawtness of de time," said the first.

George Brown Representg lncreased Lumber Production Hardwood Flooring and Justified bv Code Authority Fir Plywood Concerns Head

G. H. Brown recently closed out his hardwood lumber business, the G. H. Brown Hardwood Co., Oakland, and is now Northern California sales representative of E. L. Bruce Co., hardwood flooring manufacturers, Memphis, Tenn., and Northern California representative of Peterman Manufacturing Co., manufacturers of Fir doors, plywood and wallboard.

Mr. Brown has opened an office at 5O Alice Street, Oakland, Calif. His acquaintance with the hardwood lumber business in this territory dates back to lX)7 rvhen he established with a partner the Brown-King Co.

Since that time he has been continuously in the hardwood business in Oakland. From 1916 until he sold out to the present owners he owned and operated the Strable Hardwood Co., and for several years until recently has operated his own company, the G. H. Brown,Hardwood Co.

Hawk Huey Wins Ne*rpapel Contest

Hawk Huey, Phoenix, Ariz., was announced the winner of the Phoenix Gazette "Today's Line Contest" for the week ended December 30 and received the cash prize of. $5.00, which the paper arvards weekly for the line considered the best of those published. His epigram which was printed across the top of the editor's page in the Friday, December 29, issue, was: "Many who can run a good race spend too much time away from the track." The lines must be original and are limited to 17 words. Everyone rnay enter the contest except employees of the Gazette, the Arizona Republic and their families.

Washington, D. C., Jan. 5.-C. Arthur Bruce, Executive Officer of the Lumber Code Authority, just returned to the city after attending the sessions of the National Control Committee of the Authority at Portland, Ore., strongly defended the action of that body in authorizing production of 5,037,000,000 feet of lumber during the first quarter of 1934. Considerable curious comment has been aroused within and without the lumber industry because this authorization meant total production for the six months ending March 31, 1934, of 2,060,000,000 feet in excess of officially estimated consumption. Production of 4,885,000,000 feet was authorized foi the final quarter of 1933 against the U. S. Timber Conservation Board's estimated consumption of 3,862,000,000 feet for the period, and the Board estimated consumption for the first quarter of 1934 at 4,000,000,000 feet.

"It is incumbent upon this industry," declared Mr. Bruce, "to recognize its responsibility to an army of employes and those dependent upon them, and to make assurance doubly sure that they rvill be provided with employment during the coming months. The industry is also obligated to maintain a supply of lumber adequate to meet any reasonable public demand which may develop."

Mr. Bruce explained that these considerations outweighed any reason for further curtailment which might be deduced from the estimates of the Timber Conservation Board. As to an increased demand for lumber during the first and second quarters of 1934, he said that such a development was not only possible, but highly probable. In addition to the improved tone of business in general, Mr. Bruce cited the impetus provided by public works and civil works programs.

Loop Lumber Co. Speciahzes in Timbers-Carries Bis Stock

When a retail lumber dealer wants timbers he often wants them in a hurry, and sometimes the matter of a feu' hours is important. Occasionally in a real emergency the saving of even an hour in delivering timbers means a lot to the dealer's customer.

It is of interest, therefore, to recall to the attention of retailers that Loop Lumber Co. of San Francisco specializes in timbers, and that they carry the largest and most complete stock in San Francisco. Also that they operate a fleet of motor trucks, and are prepared to make prompt delivery to any destination.

This firm is justly proud of its record in furnishing timbers to retail yards for all kinds of jobs at short notice from stock in its big waterfront yard at the foot of 16th Street, San Francisco. From time to time they have received letters expressing appreciation of their excellent service. The following letter, recently received, stresses the customer's satisfaction with the quality of the material :

November 16, 1933. Loop Lumber Company Central Basin / San Francisco. California

Gentlemen:

Attention Mr. Brush

We have just gotten in contact with our customer at ......, who told your truck driver that he would be in the market for some more timbers.

This gentleman has advised us that it will probably be some time yet before he does need any, but he certainly will get in touch with us first. He expressed considerable satisfaction at the quality of the material we shipped to him through your good selves and stated that he had had a number of inquiries as to where he secured such nice stock.

We feel confident these folks will see us before they do anything when again in the market.

Thanking you for your courtesy in connection with this matter, we are

Yours very truly, STOCKTON LUMBER COMPANY, per C. G. BIRD, Manager.

Rctiring From Business

Roy E. Harrington, proprietor of the California Moulding Company of Los Angeles, announces his retirement from business on January I,1934. Mr. Harrington is widely known with the lumber fraternity in the Los Angeles district; he has been a resident of the city for fi-fty years and has been connected with the lumber business there since 1901. He has operated the California Moulding Company for the past twelve years, and in retiring expresses appreciation to his many friends and customers for their support. Mr. ,Harrington has made no definite plans for the future but is contemplating an extended vacation.

Purchases Yard at Torrance

The Montgomery Lumber Co. has purchased the Mullin Lumber Co. yard at Torrance, Calif. Ward W. Montgomery, for the past fifteen years secretary of the Hollywood Lumber Co., is managing the yard.

Receives Promotion

J. N. Manning, of the Seattle office of Chas. R' McCormick Lumber Co., has been appointed district sales manager for the Pacific Northwest. Mr. Manning has been ten years in the service of the comPany in various capacities.

Mrs. Mary A. Lolgren

Mrs. Mary A. Lofgren passed away in Berkeley, California, on Monday, January 1, at the age of 85. Mrs. Lofgren was the mother of Alvin N. Lofgren, well known San Francisco lumberman.

SPENDS HOLIDAYS IN SAN FRANCISCO

William C. Daniels, Henry H. Ketcham Lumber Co., Seattle, Wash., with his wife and young son, were San Francisco visitors over the holidays.

ATTEND CODE HEARING IN WASHINGTON

Ralph Duncan, Merced Lumber Co.; Mercedy chairman of the Northern California Retail Lumber Code Administrative Authority, and Henry S. Patten, Patten-Blinn Lumber Co., Los Angeles, chairman of the Southern California Lumber Code Administrative Authority, attended a meeting of the Lumber Code Authority in Washington, D. C., on January 10.

TI"r" u;// ie': PIONEER- I ,Dealers

ARE YOU goittg to get your share of the profitable building activities scheduled f.or 1934?

Flundreds . . . thousands . . of neglected buildings point the way to prospects who require little urging to be sold.

Never in building history has there been a more ideal time for taking stock of your future business sudesk-and never before has there been ONE ORGANIZATION so ideally prepared to supply the Roofing needs of the Building Supply Dealer and Contractor.

Don't Vait for Prosperity to Come Back-Go out and meet it!

LINTKOTE

Two major Companies-Pioneer and Flintkoteoperating under the new name Pioneer-Flintkote Company, ane now better able to serve the roofing needs of the West!

From this date on, the resorrces of both companies will be bent on h"lpirg ALL DEALERSirrespective of which line is handled-PIONEER or FLINTKOTE.

Exclusive Features, plus a Qstnplete Line of all roofing products, give PIONEER and FLINTKOTE Dealens all the benefits of the resources of the two companies-without any sacrifice in the highly specialized services of each.

Putting a Code to \fork

By \flilson Co.mpton Counselor, the Lumber Code Authority (ln thc NATION'S BUSINESS)

The experiznces, good and bad, in the tirst days of code operation are set down here by a mdn who not only helped draft the code but is helpins to make it work.

The National Industrial Recovery Act came to the lumber industry as the fulfillment of a prayer. Ever since the World War, this industry has been struggling valiantly but with little effect to lift itself out of the qui,cksands of industrial change and internal conflict, to improve and extend its markets and the uses of its produ'cts, and to establish the means of perpetuating the forests, the sources of its livelihood.

The leaders of the industry had striven during those years for just the things which the NIRA seemed to promise, that is, planned and orderly production, rationalization of pri'ces, steady employment, elimination of "sweat shop" wages and "sweat shop" competition, and forest perpetuation.

Speaking at the annual meeting of the National Lumber Manufacturers Assobiation in Chicago last June in submitting to the timber products industries a proposed code of fair cornpetition, I had occasion to refer to "the tragic symptoms of industry deterioration during the past decade, accentuated by the general depression during the past four years."

A Magna Charta for Lumber

I spoke of the apparent defects in the new law and certain vexatious and objectionable features, but added:

"Its possibilities of good, in my opinion, far outweigh its probabilities of evil. If widely used, it may be made to establish a Magna Charta for the forest produ,cts industries of Ameri,ca. It promises to deliver to this industry a fighting chance to reestablish for itself and for its employees security and an opportunity to prosper, to perpetuate the forest sources of its existence and to establish itself in the good will and cqnfidence of the American people."

The situation of the lumber industry was something this:

The establishment of our American forests on a self-paying and self-sustaining basis has been a hope of my years of association with the lumber industry. So I may be pardoned if first of all I talk about the Lumber Code and reforestation. Reforestation had long been. a dream with the men who make their living and maintain a great industry by deforestation. Its realization had come to be viewed as something 'clearly desirable but impractical. Then, all at once, we found that, thanks to the Act and the Code, we had a chance, not only of deriving some profit from felling trees, but of replacing our capital by growing them. The Code, due to the President's action in making the conservation of natural resour'ces one of the purposes of the Recovery program, declared for sustained-production management of private forests and indicated the course to be pursued in working out the necessary regulations to that end.

The outcome, as f write, is that idealistic, and even emotional, professional foresters, and hard-boiled lumbermen who are more inclined to see dollars than beauty in the silvan world, are amicably working out a code of forest practice which will gratify both the realist and the idealist. The forest lovers are to have their pleasant forests and the forest users are to have their logs; and prosaic utilization is to finance the aesthetic and the social. This outcome, to be sure, depends on the modification by the timber states of their present confiscatory system of taxing not only the forest land itself, but also year after year the forest crop. But there is now even hope of that.

Reforestatio,n and Lumber

So the lumber industry finds itself unexpectedly catapulted by the "new deal" into the status of a forest growlike ing industry.

Uncontrolled produ.ction and hence uncontrollable competition were gradually driving to ruin a great natural resource industry-an industry occupying a fourth of the land area of the nation-already suffering from extortionate taxation and the efiects of the anti-trust laws. The lumber industry was consuming its capital without replacement; it was depleting its forests and destroying its own existen'ce without means of preventing either.

The products of the forests were being sold below cost at the same time that pay rolls were being hideously reduced and the standard of living lowered in thousands of communities dependent largely for their livelihood upon the forest products industries.

Of course, there will be no private forests to save or to propagate if the Lumber Code should turn out to be a destructive business Inn,ev2fiel-if conservation of trees should deplete treasuries. It became efiective Augast 22and three months is too short a time in which to appraise its results. One ,cannot speak as an ultimate judge, but he may speak as a witness. As one of the authors of the Lumber Code, as a member of the Lumber Code Authority, and also as counsellor to that body I have had an opportunity to wat'ch the direct action and indirect incidence of the Code in the 90 days sin'ce it was imposed upon our industry.

While we have been crying for just what was finally handed to us, it must be remembered that ours is probably

the most difficult of the great industries to which to apply a code. We have 20,000 sawmills, and 15,000 other forest units under the code, and 40,000 distributors of lumber and lumber products, to say nothing of 50 or 60 industrial groups which derive their raw material from the sawmills. We have mills ,capable of turning out a million feet of lumber a day and mills which are lucky to make 2,000 or 3,000 feet. We have mills whi,ch own their forests and mills whi,ch depend upon neighbor farmers for th.eir logs. We have mills that, be,cause of climatic conditions, can operate only a part of the year, and other mills which, under favorable conditions, can run day and night. We have efficient, uprto-the-minute, low cost modern mills and we have obsolete and inefficient mills. A program of spreading work and raising the rate of pay over su,ch an area has encountered the most conflicting facts and factors,

Such a task at times seemed almost insuperable and the problems it has raised have been mrnl, bewildering, and often unexpected. United States Senators have not hesitated to ally themselves with non-cooperators and encourage them to act as if no lumber code were ever written.

At the very start we had to face the task of restricting the recently booming produ,ction of an industry which had been starved for three years. Just when manufacturers were beginning to see black on their balance sheets and long-idle laborers were again enjoying pay envelopes, it became ne,cessary in applying the ideals of the Recovery Act, to lower production quotas. As a result, mills which had been running full time or even double shifts since last April were compelled to reduce their pay rolls. It is not difficult to imagine the indignation in a lumber community where a pay roll is abruptly reduced one-half, after a few months of activity which followed perhaps years of little work and small pay. Proprietors would not be human if they did not complain, and employees would be angelic if they did not chafe under su'ch conditions-parti,cularly in a highly individualistic industry condemned by its own tendencies and obs-olete laws to economic hellraising and confli'ct.

The authority to establish protective minimum prices, a heaven in prospect, was full of grief in practi,ce. A minimum price that would cover the cost of production for everybody would be suicidal, because it would leave the industry with admirable pri'ces and no buyers. Yet it was a bitter pill for the owners of large timber reserves to

find that little or no allowan'ce was made for their carrying costs. The factor of depreciation was obviously hard to handle. The fixing of definite quotas of production provoked mighty grief. There was s'carcely a mill that did not believe that its situation was unique and entitled to exception. Stocks were so large that the United States Timber Conservation Board was advising drastic redu'ction. But here was NRA clamoring for pay rolls and mills that were ready to take the chance of finding a market, and hundreds of thousands of employees in straitened circumstances. So the Lumber Code Authority authorized a total produciion of a billion more feet of lumber in the last quarter of 1933 than was actually produ'ced in that quarter of.1932.

Thus, right off the bat, an organization intended to stabilize the industry and adjust production to 'consumption found itself gambling in futures-taking the chance that NRA would work and that the market would be greatly expanded by next spring. If hopes go wrong, the slack will have to be taken up painfully.

Comes a mill owner and says the minimum price and also the produ,ction quota are ruining his 6xport businesstransferring it to the British Columbia mills, whither the code does not extend but which are freely open to the foreign buyer.

Foreign Complications

Come the eastern Canadian mills which have been supplying .contiguous United States territory, notwithstanding the $4 tariff, and represent that, in equity to consumers, they should be allowed some portion of their accustomed market. Rather than risk an embargo, they promise to abide by the code.

What to do about the British Columbia shingles which are on the free tariff list? Bar them by embargo and consumers rvill riot. Let them in without regard to the code and the domestic shingle business is shot. An industrial international treaty results. The British Columbia mills are guaranteed about their established proportion of the American market, and they undertake to play the shingle game according to the Lumber Code.

Minimum pri,ces ramify into Guinea, Guiana, the Philippines and other distant regions. Put up walnut, say, to put up walnut wages, and mahogany comes rushing over the oceans to displace home walnut. Wholesalers must, therefore, up-price mahogany produced by clouted savages.

(Continued on Page 22)

SHOW BOATS

There is a silence on the river now, The mighty Mississippi that has known Deep-throated calliopes, the gilded bow Of shining boats that called the river their own. Once there was dancing on the cobbled stones That led down from the levee to the water, And darkies'eyes as white as dead men's bones, The biggest planter with his fairest daughter, All come to see the show-boat's Queen of Queens, To hear the latest songs that she would sing: Miranda James, the girl from New Orleans, A dancing girl that made the old men fling Their wide-brimmed hats into the air and wink, And take another chew, another drink.

Now they are gonFthe boats that plied its stream, The gilded barges that brought another world Haunting the minds of toilers like a dream; Gone is their day. Their silken fags are furled. How silent now the river is with only The shining cups of bay trees at its edge, And honeysuckle covering the lonely Deserted river fronts, and higher up, a ledge Of lilacs that remembers things forgottenA world unfolded in a calliope's rhyme. I weep for it, the fading show-boat's spark, A glowworm crawling down the river's dark.

-Daniel Whitehead

Hickey in New York American.

. A BETTER SOCIETY

We will not defeat Communism by denouncing it. We will defeat Communism only by surmounting it with a similar devotion to our own social ideals of economic justice and public service. The Communists in Russia are more saclificially in earnest about what they want than we are here about what we ought to want. Troubled times are ahead unless this nation can shake itself free from its stupid self-complacency and selfish materialism to lay hold upon its chance of building here a better society.-Harry Emerson Fosdick.

NO SALE

The busy business man was being importuned by the drop-in salesman to purchase a fountain.pen.

"Tell me one good reason why I should use a fountain pen, and you've made a sale," said the prospect.

"\Mell," said the salesman, "you do all your writing with a pen, and all day long you are dipping that pen into the ink. Have you considered how much timeyou could save every day if you used a fountain pen and didn't have to do that constant dipping?"

"Young man," said the busy business man, "have you stopped to consider that the only rest I get all day long is when f'm dipping that pen in the ink bottle? Do you want to work me to death?"

NO DOUBT

"Give an example of period furniture."

"\11/ell, how about an electric chair? ft ends a sentence."

PRIDE

Of all kinds of pride I hold national pride the most foolish; it ruined Greece; it ruined Judea and Rome.-Herder.

HE WAS SURE OF IT

No one can explain the thoughts of the drunkard.

A party of sight-seers occupied a table in one'of the plentiful new beer gardens late one night. At the next table, by himself, a young man drunk and asleep sat leaning forward on his table with his head pillowed on his arms. After a time one of the party felt a touch on his elbow, and looked around to discover that the drunk had awakened and was nudging him for attention. He had never seen the drunk before.

"Shay," said the drunk, "do you know Greta Garbo?"

"I do not," replied the other.

A smile of intense self-satisfaction came over the face of the drunk.

"Ha ! I thought not !" he said, dropping forward asleep again.

H. H. Barg to Continuc Business

H. H. Barg of San Francisco announces that his former partnership with J. G. Ziel operating under the name of Barg, Ziel & Co., -is being liquidated as of January l, 1934, and he will continue the business under his own name as the Barg Lumber Co. at the same address, 16 California Street, San Francisco.

Mr. Barg first organized the business himself in July, 1925, as the Barg Lumber & Shipping Co. Later, when Mr. Ziel joined the business, the name was changed to Barg, Ziel & Co. The company imports many hardwoods such as Japanese oak and birch, Burma teak, the various species of Philippine mahogany and Australian hardwoods, and in the export field act as export agents for a group of California white and sugar pine mills and have shipped the products of these mills to all important markets.

Beautiful Redwood Calendar

The Redwood Calendar for 1934 is more beautiful than er:er. Sponsored by the California Redwood Association and the various member mills of the Association, and published by James D. McClure, 1516 Morton street, Alameda, Calif., the calendar again contains twelve gorgeous views of Redwood timber, one for each month.

Each page is so arranged that the picture is not marred in any way by the calendar or advertising matter.

Many California lumber dealers and dealers from alt over the country have ordered a supply of these calendars, with their names imprinted, for presentation to their customers. On the back of each page of the calendar there is shown in a series of pictures a number of the uses of Redwood. Short captions explain these pictures, giving the reader a quick grasp of the beauty, durability and versatility of this wood.

THOMAS C. FIELDS VISITS BAY DISTRICT

Thomas C. Fields, an old resident of the San Francisco bay region, but for many years a northwestern lumberman, and now manager of the Pacific Northwest Red Cedar Lumber Agency, was a recent San Francisco visitor.

AT"TEND CODE HEARING

Frank J. O'Connor, president and general manager of the California Wholesale Lumber Association, and Louis C. Stewart, vice president of Sudden & Christenson, San Francisco, left January 4 for Washington, D. C., to attend as representatives of the Association the public hearing of the Lumber Code Authority which began January 9.

Prices Comparable with the Times

& Howard Trucking Co. 1512 East 9th St.-Los Angeles, Cal. TlJcker 347O

The Leading WHOLESALE JOBBING and RETAIL YARD of San Francisco

Scys.'

"This is a brand new ye,;r w'ith prosperity close at hand. Let'sgo to work and cash in on this opportunity with well balanced stocks of Redwood."

ls Production ControL Legaliz,ed bV the Lumber Code, Accomplishing lts Purpose?

By A*hur Bevan Chiel, Production Control Department, Lumber Code Authority

It would seem that there is a growing impression, as typi'cally exemplified by an editorial in a lumber trade paper, that "in the sense of regulating production to the prospective demand, the N. R. A. schedules. of production allotments have not been effective." Taken without analysis, this statement signifies to the uninformed that production control is not working as it should. As such it is a direct challenge to the efficacy of the Lumber Code Authority in its administration of the Code. This impression as to inadequacy of control, which seems to be spreading, is due to a lack of understanding of the purposes of the Code and the manner in which it is being administered.

In analyzing the Lumber Code in respect to the application of any of its provisions, whether it be production control, cost protection or any of its other provisions, the intent and purposes of the Code as a whole must be considered in arriving at an understanding of the manner in which it is being administered.

On first thought Article VIII of the Code which gives the right to control production would seem to be a simple problem of adjusting production to current or prospective demand and that the duties of the Lumber Code Authority under this Article had been carried out if this were done' Such ideas result from a very superficial knowledge of the purposes and spirit of the Code. Article VIII is not a ieparate code but a part of the Lumber Code and its application.must carry out the purposes of the Code as a whole' Therefore, the question of quotas for the Industry must be viewed not only in the light of current or prospective demand but also in relation to the declared purposes of the Code in respect to labor-"to reduce and relieve unemployment", and in respect to lumber,-"to assure adequate supplies thereof".

For the benefit of labor, it is obviously of the greatest importhnce to maintain quotas at as high a level as possible' The general trend of lumber production in the past has always been upward for the first half of the year reaching a peak in late summer and then rapidly falling to the end of the year. On the other hand, from a socialogical viewpoint there is no question but that labor shall be employed to the greatest possible extent in the winter and that a reduction of normal employment in the summer season can be faced more cheerfully with the expectation of employment in other lines; the growing and maintenance of gardens and the much lower cost of living in most sections of the country ' This has clearly been visualized by the Federal authorities in the establishment of Subsistence Homesteads which is now in the experimental stages but which ofiers a hopeful solution to alleviate the unemployment problem.

Snouta we be optimistic as to future demand or should we be pessimistic? If the former we are prepared to take care of any business that may come our way; if the latter,

any unexpected plums in the way of business that may fall in our lap will be lost because we must remember that many kinds of lumber, in fact it might be safe to say that most lumber and timber products require considerable periods of time to season and prepare for the market. This leads to a consideration of stocks on hand in the lumber industry. What are normal stocks? The Timber Conservation Board has, after due consideration, bssumed that stocks at the mills were normal to consumption for the year 1929. The assumption has been that this "normal" year provides a ratio which can be used to determine what "normal" stocks should be at the close of 1933 with a consumption for the year of 13,000,000,000 feet board measure. Such estimates would indicate that stocks are excessive in the huge amount of over tr,rio billion feet board measure. From the viewpoint of the maintenance of adequate stocks to meet demand, is this a true picture ? If so how can the reports by mills of broken stocks be explained? There are two kinds of stocks in the mills' inventories, stocks that move rapidly into consumption, which may be termed "fast movingt' or'"live" items, and "slolv moving" or "dead" items. It cannot be considered as an assumption that the lower annual produ'ction falls the greater the per'centage of "slow moving" or "dead" stocks in inventories will be. So that, theoretically carried to the absurd absolute limit, stocks might be 10O per cent "slorv moving" or "dead" and there would be no lumber available to move into consumption and take care of demand' Analysed on this basis, stocks on hand do not show an excess, and, in fact, in respect to "fast moving" or "live" stocks are estimated as below normal, so that the industry might well find itself unable to meet a sudden demand. This would undoubtedly set the stage for rapid increases in prices possibly amounting to a runaway market which inevitably leads to opening the door to the further inroads of substitutes. Such markets when lost are rarely, if ever, regained, and the Industry cannot afford to lose any more markets.

These are some of the more important considerations which have properly led the Lumber Code Authority to establish quotas during the two winter quarters of 1933 and. 1934 much larger than current or prospective demand would seem to justify. If demand increases unexpectedly the industry will be prepared to meet this demand and quotas for subsequent periods can be safely increased' If on the other hand, consumption remains stationary, normal summer production can be redu'ced by keeping quotas down. Through such means the Authority is carrying out to the fullest possible extent the responsibility laid upon it by the Code of Fair Competition for the industry' The point I wish to make is that the Authority, in its administration of the Code, is entitled to be judged on all the factors involved in its decisions and acts.

Putting a Code to \(/orlc

(Continued from Page 17)

Will our codes grow into international cartels ? 'We wonder.

One company has a double shift mill and argues that it rshould be treated exactly as though it had two separate mills. The Authority says no, the Recovery Administration concurs, and a small town in the West raves as hundreds of jobless men walk sullenly home and threaten to .tear down the Blue Eagle.

' Another company has orders ahead to keep full force 'busy for a period at 6O hours' running time a week.

."No !" says the Authority and the boss shuts down to the allocated hours with a vindictive blast in the newspapers, and workers and citizens unite in a howl of indignation. Mayors and prominent citizens hasten to Washington with appeals to the NRA.

Where Cooperation Hurts

It isn't in hur.nan nature for men and citizens to assuage their own sorrows rvith the knowledge that their loss is another's gain. Spreading work meets with unanimous applause until giving the other fellow some takes butter away from you. Then it is discovered that, while the idea gay be noble in spirit, it is devilish in practice.

Then there are the ever-present chiselers. The number of minimum wage earners shows a remarkable tendency to increase in certain mills.

And we must not overlook complaining employees, many of them righteous complainants from their point of view.

"Wherein the recovery," they ask, "in a program that puts up hourly wages and redu.ces weekly pay?"

Middle-aged and old men complain that, with production fixed, smart employers are replacing them with young men, rvith greater productiveness.

"Short working days, short rvorking rveeks, and more pay an hour are fine," say some employees, "but whereas we could once work long enough to pay our bills nolv we can't.tt

A Problem in the South

In the southern woodlands, of course, the race question comes up. The immutable rule of the South is that the rwhite man must be paid more than the colored man. The code can make no such distinction. Before it all men are alike. Result: High minimum wages look good to the whites and out the negroes go. The South is presented il"itfr r social problem.

, The lumber trade is not perpendicularly organized to any great extent. Marked up cost-protection prices at the rnills naturally get a liberal percentage price mark-up by the retailer-who has his own code. The consumers rage arid buyers threaten. Orders fall, but the mills run on. Competing materials crowd in and the low-cost mills protest that the lumber industry is sacrificing itself to rnake a holiday for competitors. Some producers defy the Authority and announce that they will run their own business. But how meek they are when the Authority policeman, with the NRA in his wake, swings his night stick !

Individual Initiative Is Weakened

As always happens when the state steps in to help industry, initiative is weakened. With .code expense assessments collectible by law, mills favor reduction of normal association dues to offset code costs, and trade promotion and research are trimmed. The lqmber trade associations became so absorbed in administering an essentially restrictive ,code that, for the moment, they have sidetracked interest in collective work for expanded business and wider and better markets.

Before the code, price cutting was the enemy of voluntary cooperation; since the code, price stabilization paralyzes common effort outside the code. That attitude, however, is bound to pass because, with price competition firmly bottomed, the only outlet for individual initiative and ambition is refinement of product, improvement of processes and bettered merchandising.

I cite these things not to disparage the Recovery Act or its administration, but to show the immense and sometimes unforeseen difficulties of the "new deal." Our industry is paying the price of the "new deal." But it is on the whole glad to pay it. Whenever we weaken a little, we remember the last three years-in our industry, ten years -and we ask ourselves:

"Are you ready to go back to the old, mad, cut-throat system ?"

And we emphatically answer "No."

The disciplining of a characteristically "my-own-business" industry to the group and social point of view is often an exasperating and discouraging task. But it has, even now, its offsetting incidents. Many of our people are finding solid satisfaction in the work of realizing the objective of a great basic industry nationally administered within and without. Actually, as a group we have greater real freedom and respect to directing "our own business" than before.

The Recovery Act has, it is true, imposed a constitution upon us; but, by and large. that constitution was written by a constitue.nt assembly of the industry. Under it we find that we,can enact trade laws, where formerly we could only pass futile resolutions.

Grievous individual sacrifices have not been in vain. Reports at hand from 1,302 employers show the number of employees increased from July (the last full month before the 'code) through September by nearly ten per cent, while the total of pay rolls went up 19 per cent. At the same time the total number of man hours worked fell off more than' 2O per'cent.

So, relatively, the employments and pay rolls increased 50 per cent. This is a great gain.

Data are not yet at hand to indicate rvhether employers as a group had a gain in this period or not, but it is likely that they did not, except in morale. The code went into effect just after the steep July peak in demand, pro-

duction and prices, and it is likely that the first months of the lumber code have been ,costly to the mills in a money sense. Certain it is that gains in employment and pay rolls have already been aocompanied by a de,cline of nearly one-fifth in the volume of lumber production. It is hard, of course, to see profits recede after being briefly tasted, but the lumber industry will gladly pay the price if it will bring stability.

Taking our experience to date,.pro and con, we conclude that the principle of self-government of the industry under governmental supervision and authoritycan be su,ccessfully applied. If the experiment should fail, we have faint hope for a better future. The old destructive competition will return, the slaughter of the forests to beat the tax collector, the march toward bankruptcy will be resumed, and this industry rvill go plunging on to destruction.

It is perhaps true that we voice our aspirations at present more than our experience. In another year the whole plan of ordered industry in a capitalistic economy rrray be found unworkable. But now I am sure that the spirit, and the purpose, of the lumber industry is to seek the success of the lumber ,code and through the ,code its contribution to the great national recovery undertaking.

\(/. R. Vanderwood Buys FoxWoo&um Yard at Claremont

W. R. Vanderwood has purchased the Fox-Woodsum Lumber Co. yard at Claremont, Calif., taking over the business on January 1. He will operate under the name of the Vanderwood Lumber Co. Mr. Vanderwood has been connected with the Fox-Woodsum Lumber Co. for the past twenty-three years, and for the past' several years was manager of the company with headquarters at their Glendale yard.

Redwood Split Products Makers Meet at Fort Bragg

Split products manufacturers of the State met Sunday, January 14, at Fort Bragg, Mendocino County, to discuss the protected price schedule that was presented for approval to the National Control Committee of the Lumber Code Authority at Portland, Ore., December 19. This schedule, together with audited reports showing costs of production, has gone forward to Washington for review by the auditors of the National Control Committee. It is hoped that the split products cost protection prices will be made effective by the end of lanuary.

There was also to be a discussion on the necessity of an organization that will take in all producers of split products in California, and it was expected that all the producers who have not yet become members will be invited to join the California Split Products Producers' Association.

Alex Masson of Fortuna is president of this Association, and'Warren E. Innes is secretary-treasurer.

SUDDEN & CHRISTINSON

Lumber and Shipping

7th Floor, Alaska-Commercial Bldg.

310 Sansome Street

San Francisco

AGENTS

American Mill Co.

Hoquiam Lumber & Shingle Co.

Hulbert MilI Co. . -

Villapa Flarbor Lumber Mills

Edna Sanitam

Trinidad

Barbara Catec

Dorothy Cahill

Edna Christenson

.

STEAMERS

Aberdeen, Vaoh. Hoquiam, Wash.

Aberdeen, Vaeh. Raymond, Vach.

Jane ChrfutenEon

Annie Chrictenson

Edwin Chrictenson

Catherine G. Sudden

Eleanor Christenson

Charles ChriEtenson

Branch Ollices

LOS ANGELES

303 Petroleum Securities Bldg.

SEATTLE National Bank of Commerce Bldg.

PORTLAND

2OOHenry Bldg.

The Dollars That Buy Your Insurance-

As the wotth of the dollar goes up or down, it's good bueiness to buy the greatect possible value-in insurance as in everything else. Dollars invested in Lumber Mutual Insurance are wisely cpent, giving assurance of specialized protectionr expert 6re prevention iervice, fair and prompt payment of losses, and dividends that reduce insurance cost.

Ask any ot' our companies uhat that mwual interes, rneans in protection anil saaing.

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Retail Lumber Industry to Request Government Aid Jor Ner Home Construction

A Brief requesting the Government for assistance in furnishing long term financing to aid construction of new single family homes valued at $6000 and up has been forwarded to the directors of the California Retail Lumbermen's Association and Secretaries of the local groups. President Harry A. Lake has requested that the Brief be discussed by every group of dealers in the State. Mr. Lake says that he will welcome any comments and will pass the information along to President Stanley D. Baldwin of the National Retail Lumber Dealers' Association. The National Association, Mr. Lake says, has been working to get Federal money for home building for the past two years, and the Brief is the result of their work.

President Baldwin of the National Association advises that a bill will be introduced in Congress shoqtly by Congressman W. J. Dufiey of Ohio, and at that time lumber dealers and everybody connected with the building industry will be asked to write their Senators and Congressmen in order to put this important matter before Congress.

The plan as requested in the Brief is as follows:

l. That the Administration allocate an adequate sum from any present appropriations and administer it through any one of the existing Government agencies in order that a building program of nation-wide scope may be engaged in immediately. It is believed that employment of both funds and men can thus be facilitated with greater rapidity through this program than by any yet attempted.

2. That this money be loaned through the Home Owners Loan Corporation or any other agency satisfactory to the Government.

3. That the Government offer funds to existing insurance companies, building and loan associations, savings banks and trust companies, or through newly organized Fefleral Savings and Loan Associations, with the understanding that such funds be used for construction of homes upon which there will be placed mortgages not to exceed $30,000.

4. That such funds be loaned for a period of 18 years at 4 per cent interest and that the lending institutions be permitted to charge the borrowers an additional ll per cent, making the total 5f per cent.

5. That the funds be loaned on appraisals of not over 75 per cent of the combined cost of house and lot.

6, That all appraisals shall be sworn to as hereinafter provided.

7. That the fees for servicing such loans, such as titles, searching and attorney fees, shall not exceed 1 per cent of the loans.

8. That the Government provide for loans to be made directly for new construction through the Home Owners Loan Corporation or such other Federal agency as will be designated, at 5l per cent interest and on the above terms.

9. That in the event insurance companies or other existing. financial institutions desire to employ their funds for the purpose of financing homes on the proposed basis

and on the same terms, then during a period of three years from a specified .date, th€ Government will guarantee the interest on such mortgales in a like manner as now prt> vided for on the Home Owners Loan Corooration bonds issued July 1, 1933, due July 1, 1951.

10. That any bonds issued against the mortgages loaned as hereinabove provided, either by a Government agency or by a designated lending institution, will be guaranteed in accordance with the terms of the lIome Owners Loan Corporation bonds above mentioned.

It is further proposed that the Government take such steps as may be necessary to provide such funds for continuous and permanent financing of homes in accordance with the above terms and to sell bonds for the procurement of such funds.

It is further proposed that in the event existing departmental regulations do not permit the allocation of funds from any of the present appropriations, such regulations be amended to permit the shifting of such funds to this program immediately.

Further, it is proposed that in the event the various departments are limited by reason of existing law, such steps as may be necessary shall be taken to have the present legislation amended or new legislation enacted to carry out the purpose and spirit of this proposal.

Opens San Francisco Office

Oregon-Washington Plywood Co., Tacoma, Wash., recently opened an ofifice at 725 Sharon Building, San Francisco. The office is in charge of J. O. Elmer, Sr., who has been appointed district sales manager for Northern California.

Mr. Elmer is a well known figure in the lumber business in California. Before leaving for the East a few years ago to enter the Philippine Mahogany importing business he was president of the Strable Hardwood Co., Oakland, and prior to that connection he operated a wholesale lumber business in San Francisco.

Oregon-Washington Plywood Co. operates plants in Tacoma and Everett. Wash.

S. F. LUMBERMEN FIGHT STORM

W. R. Chamberlin, president, and Eddie Peggs, sales manager, of W. R. Chamberlin & Co., San Francisco, arrived back in the Bay city January 6 from a week's trip to Los Angeles. They drove to the southern city December 31, the day of the record rainstorm, and while they reached their destination without mishap they will remember for a long time the difficulties of their trip over the Ridge Route, which was closed to traffic shortly after they passed through.

L. A. Citv Council Votes Termite Law-Lumber Institute Opposes Meas ure

Overriding the veto of Mayor Frank L. Shaw, the Los Angeles City Council by a vote of 10 to 5 on January 5, 1934, readopted the ordinance requiring that all lumber used as the underpinnings of all types of buildings in Los Angeles be pressure-treated with creosote or its equivalent as a protection against termites.

Following a public hearing held in the Los Angeles City Council Chambers on December 13, 1933, the City Council passed the ordinance by a vote of 8 to 6. Mayor Shaw vetoed the ordinance on December 2I, 1933.

Voting for the ordinance on January 5 were Councilmen Brainard, Breedlove, Baumgartner, Burns, Buyer, Ingram, Tate, Trasher and Davis. Councilman Baumgartner who had previously voted against the measure, and Councilman Wilson, who was absent on December 13 when the first vote was taken, both voted for the ordinance. Opposing the measure were Councilmen Baker, Cunningham, Gay, Hyde and Lewis.

The Lumber & Allied Products Institute of Los Angeles, expressing their opposition to the ordinance, has issued the following statement:

"The opposition of the Lumber & Allied Products Institute to the creosote ordinance was not in any sense based upon a doubt as to the efficacy of coal tar creosote applied under pressure as a preservative of wood. It is

tlrAPPAT

the most widely used and best known of the two or three wood preservatives recommended by authorities. Recognized authorities are almost a unit in specifying that, where wood is to be used in contact with the ground, it either be treated with one of the standard preservatives or else be of heart Redwood or Cypress. We think that any sound lumberman would recommend the use of all heart Redwood, Cypress, Western Red Cedar,.or pressure-creosoted Fir wherever the conditions of use would justify the exPense.

"Our whole opposition to this ordinance was based upon knowledge that the extra expense was not justified, and that, even after the home-owner had spent his money to comply with this ordinance, he could and would still have his house damaged by termites if the termites were present, just as surely as if he had used untreated wood. Careful and proper construction, with plenty of air circulation and light under the house, and no wood allowed to come in contact with the ground at any point of the structure, plus the removal of stumps, roots and all wood debris, and the killing of existing termite colonies (all of which can be done at practically no additional expense) will eliminate practically all danger of termite damage.

"The reason for this is easily understood by anyone who is willing to make a fair-minded study of the known facts. Termites live on cellulose. Without plants or wood to feed upon they die. Also, the subterranean termite, which is the type with which this ordinance purports to cope, rnust maintain contact with the ground. Subterranean termites will build mud tunnels up a twenty-foot concrete wall to get at edible wood. They hdve an unerring instinct for joints and cracks and almost invariably enter timbers at one or the other. Therefore, if an owner goes to the expense of treating everything except the sub-floor, as this ordinance provides, and then leaves roots, stumps, chips, blocks and other wood litter of building under his house to attract and fatten up large colonies of termites, it is almost certain that when that free food supply has been exhausted they will build a mud tunnel right over the creosoted wood up to the untreated sub-floor and destroy it, the floor above it in turn, and go from there to the frame of the house.

"The way to prevent termite damage to homes is to prevent termite attacks. Merely to poison a part of the wood they would eat if they did attack your home and leave the rest of the house easily accessible to them is not a remqdy. There is nothing in the Los Angeles Building Code now which prohibits any builder using treated un-derpinning if he so desires; but it is an outrageous imposition upon the home-owner to be forced to pay that extra cost by legislative enactment when there is no sound reason for believing that the extra expense is justified.

"There is nothing we need so badly in Los Angeles as a revival of building. There is nothing which spreads activity, increases employment, and puts money into circu-

(Continued on Page 26)

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"A"tu.l Overh ead" Method for 90 D.y Test Period Approved

Washington, D. C., January 5, l934.-National Recovery Administrator Hugh S. Johnson today approved, for a 90day test period, the method by which "actual overhead" will be determined for inclusion in the retail selling prices of lumber, lumber products, building materials and building specialties.

The retail lumber and lumber products code prescribes that no one shall sell below cost and defines cost as including the actual cost of the merchandise to the seller plus actual overhead. Actual overhead is to "include disbursed expense involved in selling and delivering merchandise as determined by accounting methods approved by the Code Authority and the Administrator-and shall be computed by the statistical mode methods."

Under the statistical mode methods approved today the "actual overhead" in the retail lumber business will include two general items-"handling and delivery expenses" and "overhead for selling and administration." In the case of lumber sold by the 1000-board feet, handling and delivery expense, fixed at approximately 17.77 per cent of the actual cost of the merchandise, will be approximately as follows:

45c and 50c Wage Area ..$6.00 per 1,00O feet

4Oc Wage Area . 5.60 per 1,00O feet

35c Wage Area 5.2O per 1,000 feet

25c and 30c Wage Area . . 4.80 per 1,00O feet

In selling other building items the rates per 1,00O feet would be used on a percentage basis with $6 figured as 20 per cent of the cost and the rates in other areas to be computed downward accordingly.

The method adopted for computing "overhead for selling administration," fixed that item at an average not to exceed 33.77 per cent of the actual cost and the order approved by General Johnson will permit the inclusion in the retail price of not to exceed 75 per cent of the average in each area.

Among the items which are included in determining

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L. A, COUNCIL VOTES TERMITE LAW-LUMBER INSTITUTE OPPOSES MEASURE

(Continued from Page 25)

lation so quickly as new building. It puts men back to work all along the line from the carpenter on the job itself to the worker on the bench in the furniture factory. Atrything which retards building, as this ordinance unquestionably will, retards the return of prosperity. It is a pity that the Councilmen have, for reasons known only to themselves, saddled this extra expense upon home-builders over the express disapproval of their own expert advisors, and without examining the cdhstructive proposal of the Institute, which Mayor Sha'nv recommended in his able analysis of this measure when he returned it to the Council with his veto."

"overhead for selling administrative" and the maximum percentage to be allowed for each are the following:

Application of the costing formula now approved rather than that originally provided in the Code will, General Johnson was assured, involve an increase in retail prices to consumers of only between two and three per cent generally.

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