Retail Lumber Price Ceiling Meeting at Los Angeles

Arthur Larson, chief counsel of the legal division of the Office of Price Administration, discussed the retail lumber price ceiling at a meeting of Southern California lumbermen at the Embassy Auditorium, Los Angeles, Thursday afternoon, May 7. Over two hundred attended.

Speaking of what lies behind the Regulation, he said, prices have increased so rapidly that it tvas necessary to put a blanket on everything, and that this was only a part of a comprehensive plan to stop inflation.

He outlined how to go about finding the ceiling prices on commodities. The seller's maximum price for any commodity or service will be the highest price charged for the same commodity or service during March 1942. If he finds that he did not handle the same article, find the price on a similar article that was sold in March. If no similar article was sold that month, try and find out who did sell the same product in your neighborhood. In the event that neither the seller nor his competitor sold the product in March, the maximum price will then be determined by the following procedures: Select from the same general classification and price range as the commodity being priced, the comparable commodity for which a maximum price is established and of which the seller delivered the largest number of units during March; divide the maximum price for that commodity by the replacement cost of the commodity, and multiply the percentage so obtained by the cost to him of the commodity being priced, and the resulting figure shall be the maximum price of the commodity being priced. The price so reported may be subject to adjustment at any time by the Office of Price Administration.

Referring to line yards, he said, that every yard is a separate seller and must use their own books for maximum prices.

He asked that all existing records relating to prices charged for commodities or services delivered or supplied during March 1942, and offering prices for delivery or supply of such commodities or services during that month, be preserved; and to prepare, on or before July I, 1942, on the basis of all available information and records, and thereafter keep for examination by any person during ordinary working hours, a statement showing: the highest prices which were charged for such of these commodities or services as were delivered or supplied during March, 1942 and his offering prices for delivery or supply of such commodities or services during such month, together with an appropriate description or identification of each such commodity or service, and all the customary allowances, discounts and other price differentials.

The Regulation requires, he continued, that current records of maximum prices be kept, records of the same kind as was formerly kept, and in addition, records showing, as precisely as possible, the basis upon which the maximum prices were determined for those commodities or services.

On cost-of-living commodities, Mr. Larson declared, the maximum price may be marked on the commodity itself or on the shelf, bin, rack or other holder or container upon or in which the commodity is kept, or it may be posted at the place in the business establishment where the commodity is offered for sale.

That every person selling at wholesale or retail any commodity or service for which a maximum price is established by the Regulation or by any other price regulation issued on or prior to April 28, 1942, by the Office of Price Administration is by the Regulation granted a license as a condition of selling and such commodity or service.

Referring to violations of the Regulation, he said, it had plenty of teeth. Persons violating any provision of the Regulation are subject to criminal penalties, civil enforcement actions and suits, and proceedings for the suspension of licenses.

Further that any seller at retail who finds the maximum price of the commodity or service established for him under the Regulation is abnormally low in relation to the maximum price of the same or similar commodities or services established for other sellers at retail, may file an application for adjustment of that maximum price in ac- cordance with procedural regulations issued by the Office of Price Admnistration.

He stated that there would probably be one retail ceiling price similar to the sawmill price lists which will be applicable to the various sections of the country but it will probably be some weeks before the Office of Price Administration is ready to issue such a list.

As to the administration of the Regulation, he suggested that the lumber retailers deal with the nearest Office of Price Administration office.

Referring to the future and what might happen if the price has gone up since March, he remarked, that Canada shows that this can be handled. The solution to the problem, he said, is not to raise prices as there will be no more price increases during the duration.

As to what is going to happen to the retail lumber dealer, he stated, that there was a critical shortage of lumber all over the country, more production was needed, and things are going to get worse before they get better.

At the conclusion of his talk, he answered questions that were asked him by a number of the dealers.

Harry E. Whittemore, president of the Southern California Retail Lumber Association presided.

Paciftc Coast Hardwood Distributors Will Meet at Del Monte June 25-27

The annual convention of the Pacific Coast Wholesale Hardwood Distributors' Association will be held at Hotel Del Monte, Del Monte, Calif., on June 25,26 and27.

P. R. Kahn of Forsyth Hardwood Company, San Francisco, is president of the Association. A. E. Wanke of Wanke Panel Company, Portland, is vice-president, and Fred Smales of U. S. Plywood Corporation, San Francisco, is secretary-treasurer.

Russ Castell In Navy

Russ Castell, salesman for the California Door Company, Los Angeles, in the San Joaquin Valley, Orange County and San Luis Obispo County territory, recently enlisted in the new branch of the U.S. Naval Reserve, the V-6 construction division.

His background in the lumber business and association with retail lumber dealers made it possible for him to get the rating of CM 2. He expects to be called immediately for service.

Bill Fahs In East

W. F. (Bill) Fahs, manager of California Panel & Veneer Co., Los Angeles, is in the East on a vacation and business trip. He will call on plywood and steel mills represented by his company, and will visit Nern, York, philadelphia, Pittsburgh, Chicago and other eastern cities. He is accompanied by N{rs. Fahs, and expects to be back around Tune 1.