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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