Methods Now Available to Lumber Manulacturers to Secure Priorities Covering Capital Equipment as Well as Maintenance and Repair ltems

When a lumber manufacturer seeks to secure priorities for material r,r'hich cannot be secured on the A-10 priority rating granted under Order P-100, then he should file a PD1-A application for a preference rating, or seek a PD-3-A certificate, if such a certificate applies to the case, the Lumber and Timber Defense Committee advises.

When PD-I-A is filed, it is absolutely necessary to show the percentage of the applicant's business going into National defense. The applicant must state this percentage and, in order to build up this percentage, he must secure from his wholesale connections, or from his own customer, the following information :

1. The ultimate destination of the lumber, which means the name and location of the government project, such as a cantonment, shipyard, airplane factory, ammunition plant, or whatever it may be.

2. Name of the last company which sold the lumber either directly to the government or to the general contractor putting up a government project or making parts for National Defense.

3. The government or general contractor's purchase order number for this lumber. This means, if the government itself has purchased the lumber, its order number to the last company selling the lumber is to be furnished. If the general contractor has purchased the lumber, then his purchase order number is required.

4. The government's prime contract number to the contractor who is erecting the project should be supplied, if possible. Every project or contract entered into by the government has a contract number which was given to the general contractor and it is that number which, while not absolutely necessary, is highly desirable in the tracing of government business. This is important when a PD-3-A is sought.

5. The priority rating which has been assigned to the government project should be given. Every single government project, such as army camps, shipyards, airplane factories, and other types of work, has a priority rating assigned to the project, which rating is used by the contractor in purchasing material out of which to develop the project. This item of information is of the utmost importance.

6. The total feet on each order must be shown. National Defense business secured by a wholesaler from a lumber manufacturer has exactly the same value as if the sawmill itself sold directly to the government. It should be remembered, of course, that very little lumber is sold directly to the government. Most of it, such as that going to cantonments, shipyards, ammunition factories, etc., is sold to a general contractor.

Eligibility {or PD-3A Certificates

If a lumber manufacturer is selling his lumber for Na- tional Defense, and is either a prime contractor or a subcontractor, he is eligible to obtain a PD-3-A for capital equipment.

Procedure to be Followed in Securing Capital Equipment

Valued Under $1,000, but not a Machine Tool (A machine tool is any machine, or accessory thereto, for cutting, abrasing, shaping, forming, and joining of metals, including gages, chucks, as provided under Preference Order No. E-l-A revised.),

. In this situation the lumber manufacturer goes to the nearest Army or Navy contracting or inspecting officer in the field and shows him that the capital equipment he desires is necessary to complete {he Army and Navy orders which he has on his books. The officer is empowered to issue a PD-3-A certificate from the field covering the equipment, if it is valued at less than $1,000. This certificate is designated as an "M" certificate.

Procedure where Equipment Is not a Machine Tool and Is Valued at $1,000 or Over:

The lumber manufacturer must present his case to the officer in the field. This he does by making an application for a certificate on form PC-20. Also, he fills out certain parts of form PD-3-A and forwards them to the officer in the field.

If the capital equipment desired is a machine tool, the field officer can issue a PD-3-A himself up to a value of $3,000.

A PD-3-A certificate may be extended only to the delivery of material to be physically incorporated into the material covered by the PD-3-A. This would apply to a PD-3-A covering the delivery of lumber. That PD-3-A may not be extended to the delivery of capital equipment. PD-3-A on lumber is extendable to the supplier, if any, for more lumber or logs. This simply replaces the inventory. When the lumber is manufactured directly from the woods these certificates are of no use except that they show the importance of the orders on the books. Therefore, when an officer in the field is asked for a PD-3-A to be made out covering capital equipment, the PD-3-A's covering lumber will show that officer that the manufacturer is engaged in important defense work.

The PD-3-A is extendable by the supplier of the capital equipment to replace his inventory when he fabricates a boiler, bulldozer, or whatever equipment the certificate calls for.

In the case of a complete breakdown, if the sawmill is in the position of being a prime contractor to the Army or Navy, the new priorities regulations, dated February 18, 1942, provide that the officer in the field can issue an emergency A-1-A rating against materials to replace a breakdown and A-1-C rating against materials to prevent an imminent breakdown.