Retail Lumber Price Below 20 Year Average

Reprint oI Interesting Letter Sent to All Lumber Yards in Calilornia by E.

C. Parker, President of the Calilornia Retail Lumbermen's Association

There has been so much comment lately on the part of public officials, newspaper editors, economic experts, and such sotlrces relative to the high cost of lumber that prospective builders are beginning to wonder if it is rvise to build nou,. All of you har.e hearcl such comment on the part of 1-our customers rvho were contemplating building.

In the first place, the extent to n,hich the cost of lumber affects the cost of a house is grossly exaggerated in the nrincls of home builclers. and lumber dealers should correct this impression. In the second place, it can be shown by actual statistics that lurnber is not high. It can be shorvn by actual statistics that the average sales price of lumber the first four months of 1937 is less than a t$'enty year average. The iclea that lumber is high has been l>rought about by the fact that it is considerably higher than in thc alrnormally low years of 1932 and 1933.

IJnfortunately the lumber industry in this state does not have available any combined statistics as to sales or cost of sales. We were obliged therefore to use statistics that rvere available to us but which u'e think are large enough to give approximately a correct picture of the average price of lumber over twenty years. We have usecl in our calcrrlations over one billion feet of lumber sold at retail (all rvholesale sales have been eliminated) throughout Southern California. Sales embrace those made in all types of coumunities, Metropolitall areas, medium and small size torvns, and farming districts. Tl-re prices listed are F. O. ll. the yard exclusive of cartage. We have used for each year and for the twenty years what is callecl the r'veighted average (total feet into amount). All returns or allou'ances have been deducted. Any cash discount has been cousiclered an exDense and is not decluctecl.

!93$1 Average Prlcc of LuEbor at RoteU for 20 Isers. ggRdSSSRERRREd$BS8B

Average price of lumber at retail for 20 )rears, I9l7 to 1936 inclusive, $46.41 per I\'[.

The use of yearly averages gives the most correct picture of the price trend, but as a matter of interest lr,e are herervitl-r giving the averages compiled in the same manlter for the rnonth of April in each 1'ear, and although the monthly averag'e for April rvill naturally cliffer in atnouut from the yearly average. you r'r'ill note horv closely the ntonthly and -r'carly trend follorv each othcr.

Av$agr Prloo of Lueber at Rctsll for Month of ryLt for 21 Ycat8, OOOdNoiD|oF(o(!OdNr,TaT ddOANNANNNNNOONOO

Average price of lumber at retail for rnonth of April for t\l'enty-one years, l9l7 to 1937 inclusive, $45.12.

1924 ......$55.11 1931 ......$40.86

1925 42,96 1932 ......27.54

1926 ...... 43.2:8 1933 ..... 20.75 1927 43..53 1934 ...... 40.49

1928 39.04 1935 ...... 36.61

1929 ...... 45.33 1936 ......37.84

1930 ..... 37.01 1937 45.59

The average price of $80.26 for the month of April, 1920, listed above is not an error, in fact, the average for the first four months of 1920 rvas $76.45. It is also interesting to note in the above figures the fact that the average retail price of lumber in April, 1933, r,vas $20.75, and that the average retail price in April, 1934, when the Lumlter Code rvas operating most effectively, rvas $40.49.

As is the case rvith any trade statistics, there are many changing factors which affect them, so in studying average lumber price statistics it must be borne in mind that more finish r.r'as used in the earlv tr'venties than there is norv. aucl that in 1932,1933, and 1934 there was not the percentage of house building as in other years, but on the other hand there are other factors largely offsetting the factors just mentioned. The figure5 presented show, we think, conclusively that lumber prices at the present time are not high, bttt are a trifle less than a trventy year average.

Your customer w'ill be interested in knowing too that retail lumber dealers in California on the avera€ie over a period of time only raise prices of lumber when they are' forced to do so.finally by reason of increased sawmill prices and water and rail freight and other direct pur,chase costs, and that a,ctual statistics will show that lumber dealers are today on the average making the same gross margin of profit on lumber and merchandise sales that they did five, ten, fifteen, or twent)' years ago. In spite of the fact that taxes, wages, and all other items in the expense of doing business has gradually increased over these years, yet the gross margin of profit on lumber and merchandise sales in any group of years in the last trventy years will be practically the same. Is there nothing that can be done to correct this condition in our industry?

West Coast Screen Company Picnic

The annual picnic for employees of the West Coast Screen Company, Los Angeles, and their families, was held at Orange County Park on Sunday, May 16.

The weather was ideal and every one of the crowd of 225 had a splendid time.

Competition in the various events for the many beautiful prizes was keen.

T. W. Saunders and Florence Miller had charge of all the arrangements for the picnic. Ray Uthe was chairman of the refreshment committee, and the card committee was headed by Mrs. J. Bennett. Orin Wright, well known Scoutmaster, brought his Boy Scouts along and the boys rnade themselves very useful. A. B. Brorvn had charge of the races.

In the baseball game the day crew team, managed by Frank Costley, beat thb night crerv team, managed by Mr. Snow.

The horseshoe pitching contest attracted a lot of attention. There were races both for children and grownups, ancl the card tables were well filled.

East Bay Hoo Hoo Club

John B. Knox, of Wulff Hansen & Co., investment bankers, Oakland, u,as the speaker of the evening at the monthly dinner meeting of East Bay Hoo Hoo Club No. 39, held at the Athens Athletic Club, Oakland, on Monday evening, May 24. His subject lvas "Money and fnflation."

Miland Grant, president of the club, presided.

Bert E. Bryan, general chairman of the 1937 Reveille, gave a brief report of this year's successful affair, passing along some interesting suggestions for next year's Reveille.

Moves To New Location

Acme Spring Sash Balance Co. has moved its factory and office to larger quarters at 1626 Long Beach Avenue, Los Angeles.

The telephols lqrnsins the same, PRospect 8014.