\Tholesale Mark-Up Order lssued

Supplementary Order 150 became effective March 8,1946. The mark-ups provided for in the regulation for direct-mill shipments arc 5/o for wholesalers and 3/o f.or commission men, based upon the f.o.b. mill prices established under the order.

Supplementary Order 150 requires all persons, other than 215 Distributing Yards, desiring to operate- as direct-mill distributors to apply tb the Lumber Branch of the Office of Price Administration, Washington, D. C., for registration numbers. This registration number must be received before applicant charges or receives the mark-up. This application must contain all information relative to'the applicants connection with any sawmill, concentration yards or other lum er producers which may have any bearing on the question of "control relationship" as described in the order.

Even though a direct-mill distributor is registered, he is not permitted to add the mark-up in the following cases: See Subparagraph (c) (5).

1. The mark-up may not be charged unless the mill or concentration yard in which the lumber originates makes the written statement on the invoice "This mill has no controlled relationship with any direct mill distributor."

2. The mark-up may not be charged on lumber sold with the direct retail sale addition to the basic f. o. b. maximum prices in the regulation.

3. The mark-up may not be charged on sales less than 5M'FM when shipped by truck or water, and may not be charged on any sale of less than carload quantity when shipped by rail except pool car shipments for resale. The mark-up is prohibited on pool car shipments except where the direct-mill distributors customer is buying for resale.

4. The mark-up may not be charged on lumber originating at a mill or concentration yard which has a "control relationship" with any direct-mill distributor, regardless of whether the direct-mill distributor selling such lumber is wholly independent from the mill or concentration yard at which the lumber originates.

"Control relationship" is described in the Order, and stated briefly, includes the following:

1. Any financial interest, direct or indirect, between a distributor and a producer other than a loan at ordinary rate of interest.

2. A family relationship by blood or marriage between a producer and a direct-mill distributor involving an interest acquired on or after January I,1942.

3. Past employer-employee relationship terminated after December 31,1945.

If a mill or concentration yar{ is a corporation, a directmill distributor may own l0/o or less of its total outstanding stock issue without being regarded as in "control relationship" with it. However, the mill 6r concentration yard owning any of the total outstanding stock of a corporate direct-mill distributor is in, "control relationship" with it.

The mark-up is denied where a control relationship exists.

Mills and concentration yards are required by this Order to make a written statement. on all invoices to the effect that they may have "control relationship" with a dire,ct-mill distributor. If a mill falsely states that it has no "control relationship" with a direct-mill distributor the maximum price at which the lumber covered by the invoice on which the false statement appears, is 5/o less than the f.o.b. mill price set forth in the price tables.

A direct-mill distributor must indicate on his invoice that the sale is a direct-mill sale and must show his name and registration number.

It is understood that Registration Numbers issued in connection with the Southern Pine regulation (2nd RMPR 19) cannot be used in connection with the mark-up of any of the species covered by this order.

I. tI. Dcrlen

J. H. Dalen, 60, president and manager of the Lakeview Moulding Co., Lakeview, Oregon, passed away in a Lakeview hospital February 27 f.rom a heart attack.

He had operated mills at Bandon, Grants Pass, Coquille and Myrtle Point, Oregon, and at Hoquiam, Wash.

He was a pilot in the United States Air Force in World War I.

Survivors are his widow, Mrs. Yvonne Dalen; a daughter, Mrs. James Stewart; a son, John, a brother, Paul, and four sisters.