Rescinds Control Committee's Action Regarding Exports-Problem to be Studi ed Further

Washington, D. C., Jan. 3O-Problems presented by the export phase of the lumber industry's business occupied the attention of the Lumber Code Authority at its opening session here today. The subject was brought up by the appeal of the Hardwood Division from an order iartially exempting lumber for export from production control. 'fhe claim has been frequently made that increased costs of lumber production and quota limitations under NRA are restricting exports.

Wilson Compton, general manager of the National Lumber Manufacturers Association and Counsellor to the Lumber Code Authority, emphasized the importance of preserving the country's export markets, and, upon his motion, the Authority directed the appointment of a special committee of representatives from the divisions substantially interested in export trade, to consider such equitable plans as will provide each branch of the industry with reasonable options in the matter of production allotments and minimum cost-production prices for export lumber.

Axel Oxholm, chief of the lumber division of the Departm€nt of Commerce, urged the Authority to forego any action tending to attempt an increase of export business by enabling lumbermen to cut prices, declaring that price slashing had made foreign buyers distrustful of American price policy. Mr. Oxholm contends that a firm price policy, coupled with a vigorous trade extension campaign abroad, would restore export business, whereas price cuts would not.

W. Averill Harriman, Assistant NRA Administrator, assured the Authority of the cooperation of the Administration. He stated that public criticism of the lumber code, while predicated somewhat upon imperfections which were susceptible of correction, was largely prompted by misunderstanding and would disappear as people learned that the administration of the code was in the public interest.

Lee Robinson, president of the Hardwood Manufacturers Institute, L. S. Beale, secretary of the Hardwood Coordinating Committee, Mark Fleishel of the Cypress Division, E. W. Demarest of the West Coast Logging and Lumber Division, and others spoke in favor of the Hardwood Coordinating Committee's appeal. They alleged that the resolution of the Control Committee, which, if approved by the administration, rvould result practically in exempting from production control 5O per cent of all lumber cut for export, would tend to force every operator into the export business, with a resulting chaos in export prices and a shrinkage of the allotments to such small mills as could not compete in the export field.

Speaking against the appeal, Charles Green of Laurel. Miss., and President C. C. Sheppard of the National Lumier Manufacturers Association, urged the high prices obtainable for some export.orders, and the menace of Cana,4ian competition.

ft was made clearlv evident bv the discussion that the export market presented,varying problems to each division and for each species, whereupon Wilson Compton stated that too much was involved to settle the question merely by approving or disapproving the National Control Committee's action. He mentioned the fact that the code as now written had less than a year and a half to run, and deplored any action which would result in destroying the country's export business meanwhile, and pointed out that our former predominance in the export market over Canada -our lumber exports being double those of the Dominion four years ago-had been lost and our position reversed. He then offered the following amendment to the motion to rescind:

"and that a special committee of representatives of the divisions substantially interested in export trade be appointed to consider such equitable plans as will provide reasonable option to the divisions under both Articles 8 and 9 as will encourage the continuance of export trade in American lumber; and report its recommendations to the Lumber Code Authority at this session."

Axel Oxholm, chief of the forest products division of the Department of Commerce, spoke in favor of the motion as amended. He declared that the industry had been throwing away its opportunities by failing to carry on a vigorous trade extension campaign at home and abroad.

The motion to rescind the Control Committee's action, as amended, was passed by an overwhelming majority, members of the Control Committee abstaining from voting, Decisioris on Other Appeals

The Authority then considered the cases of the Stimson Mill Company, of Seattle,- Wash., the Chicago Mill and Lumber Company of Chicago, the Stimson Veneer and Lumber Company and the United Lumber and Timber Company of Memphis, all of whom were appealing from production-control decisions of the Board of Complaints and Appeals, which heard these cases at Memphis, November 27. The Stimson Mill Company of Seattle had appealed originally from a decision of the West Coast Lumbermen's Association; the Hardwood Manufacturers Institute exercised original jurisdiction in the other three cases.

After consideration of the Chicago Mill and Lumber Company appeal in executive session the Authority voted unanimously in favor of the following resolution:

The Authority finds that the mill of the Chicago Mill and Lumber Co., located at Waterproof, Louisiana, is capable of operation, and that pursuant to Article 8 of the code transfer of the allotment from said mill to another mill under the same ownership is authorized; the decision of the Board of Complaints and Appeals denying such transfer is overruled.

In the other three cases the Authority voted to sustain the action of the Board of Complaints and Appeals.