L-1 21---\(/ar Requirements and Lumber Production

(The following is a statement by Dr. Wilson Compton, secretary and manager, National Lumber Manufacturers Association, on Amendment No. 1 to Limitation Order L-I21.)

Under the terms of the WPB Limitation Order L-12I, May 13, construction lumber has become, temporarily__at least, a "critical" as well as an "essential" war material. We should recognize that fact and its implications. Amendment No. 1, published May 28th, has three principal effects:

1. It "unfreezes" the lower grades frozen in the original Order. In general the grades now lrozen are those included in the Army's familiar 8000-E specification. This "unfreezing" was expedited by the fact that the Army had obligated itself to buy whatever grades and items were frozen for its benefit. It promptly and frankly took the position that:

Whatever the -Army has frozen the Army should buy; if the Army has frozen grades and items which it does not need. will not use. and does not intend to buy, it should "rtnfreeze" them; the Army will buy any grades and items frozen for its benefit produced while the freeze order is in effect.

On this point no lumberman could ask for more prompt or more fair action by the Army.

2. The beneficiaries of the freezing order are now extended to include, in addition to the Army, the Navy, and the Maritime Commission, the Panama Canal, Defense Plant Corporation, and Lend-Lease Governments; also the construction for storage or packaging for shipment of agricultural products.

3. Bona fide local retail lumber distributing yards are exempted even though they may "process" as much as 254o of their lumber.

Amendment No. 1 does not, however, clarify a number of the uncertainties of interpretation which have plagued individual lumber producers and distributors and which are still awaiting official "interpretation" by the War Production Board. Deliveries by "producer" of lumber for defense housing projects are still not permitted under the amended order unless under sub-section (b) (iv) the purchaser secures a specific authorization from the WPB Director of Industry Operations on Form PD-423. Any other exceptions to the Limitation Order for particular sales or shipment of particular stocks to specified buyers will have to be secured similarly through specific authorization by the Director of Industry Operations, applied for on Form PD-423.

Appeals for relief also may be made to WPB by any person upon whom Order L-l2l as amended imposes an "exceptional and unreasonable hardship," or where it would result in a "serious problem of unemployment in the community," or would "disrupt or impair a program of conversion from non-defense to defense work." Applications for relief go to the War Production Board. No particular form of application is required. The WPB Director of Industry Operations has discretion.

This is the lumber industry's first taste of a direct freezing order. Another of limited application but nevertheless significant was issued May 26th in Conservation Order M-122, similarly freezing the delivery of "rvar use" grades of mahogany and Philippine mahogany to U. S. Government or Lend-Lease Governments or for use in aircraft, ships, boats, or patterns and models of high preference ratings. There is ah under-current of consideration of similar limitation orders applicable to factory grades of lumber including both hardwoods and softwoods needed for war purposes. These include trucks, wagons, trailers, furniture, boats, beds, skis, packs, buckets, trunks, poles, utensils, tools, stretchers, railroad equipment, tanks, racks, shelving, barges. Continuance of free market for lumber of grades needed for these purposes will depend primarily on the ability of the industry to supply promptly the requirements of the Army and Navy. The conversion of industries and products from the use of steel and other metals to the use of wood is continuing to mount and the end is not in sight.

Present estimates of war requirements during the next year include:

12 billion feet for Army and Navy construction alone;

7 billion feet for boxes, crating and containers ; over 4 billion feet for war and defense housing; an equal volume for farm construction; and nearly 10 billion feet more for fabricated products for the Army and Navy and Maritime Commission, for railroads and public utilities, for ship construction and for what is regarded as the volume of building repair necessary to mainfain the existing civilian and industrial plant. Although the greater detail of requirements is known, it is ,not available for publication. The important fact is that the estimates of the war agencies themselves of their requirements of lumber and timber products during the next year substantially exceed the piesent and prospective maximum volume of production.

These are facts which all lumber companies should have in mind. The requirements figures may, of course, be pared down. They will be. But lumber production is under the handicap of increasing lack of labor, especially skilled labor, and incieasing difficulty of procurement of needed repairs, maintenance and equipment. Lumber production last year was between 33 and 34 billion feet. So far this year it has been running at a rate about 7/o less than last year. In some areas the production continues to decline. In others with the aid of eitensive over-time operation it is advancing. IJnder the most favorable foreseeable operating conditions the lumber supply during the next many months will be less than the national needs for war and defense purposes. As long as that condition exists the industry will be under continuing prospects of further extensions of the so-called "limitation orders."

These ought, of course, to be avoided if possible, if for no other reason than that, in an industry as widely scattered

Port Orford Cedar

and of as many small units, "fteezing" stocks is likely to retard production.

Regaldless of prospect of further limitation orders manufactuiers of lumber and timber products will be wise to respond as fully as they can to the Government's appeal .for more production; keep themselves as well informed as they .att oi the prospective war needs for their products; bid when the Gbveinment asks for bids; and ask their other trade to "stand aside" until the urgent war needs are met.

This situation can be improved and is being improved by the extent to which the Army, the Navy, and other war agencies are persuaded to simplify, standardize and co-ordinite their lumber specifications; to rely more for procurement of special stocks on negotiated contracts; to anticipate their lumber requirerhents as far ahead as possible and frankly to buy for riserve. More and more they -are doing this and more and more they are consulting the industry agencies and accepting their advice. The industry organizations, a-nd to a larg-e exient the WPB, are constantly working on this and making headlvay, although not enough

Lumber iompanies generally in most sections have been uneasy over the continuing diversion of labor, especially skilled labor, to other war industries. So-called labor "piracy" has been rampant in many sections of the lumber industry and in many other industries. As a result of _strong representation made on May 15th by the Lumber Manufaiturers Advisory Committee of WPB, the Labor Divisions of the war agencies dealing with labor supply and priorities have now under consideralion a number of steps which, if taken, should substantially irnprove this situation so far as lumber companies are concerned. The most significant immediate action is the order yesterday of the War Man Power Commission in substance "freezing" essential workers in critical war industries in their present jobs. Probably employers in war industries hereafter will have to hire exclusively through the United States Employment .i.ly- ice. This Service will develop potential sources of available labor; is expected to find ways of "routing" critical labor to critical industries. "Job seeking as usual" like "business as usual" is at an end or Soon will be.

MOVE TO NE\/\/ OF"FICES

Cadwallader-Gibson Co., fnc., have leased their building at 3628 East Olympic Blvd., I-os Angeles, to a war industry for the duration, and theil new I-os Angeles address is 621 South Spring Street. The telephone number is TRinity 9651.

On Business Trip

Charles Yerkes, Roddis Lumber & Veneer Co., Marshfield, Wis., spent several days in Los Angeles last month on business. He made his headquarters at the offices of E. J. Stanton & Son, their Southern California distributors.

--GBADBS--

YOU TNOW TITAT GBADING IN AI{Y PARNCULtrN GBADE OF LI'MBER CAN VARY AS MUCH AS $IO.O(! A THOUSAND FEET.

TIIAT'S WHY OI'R GRADES AT TIIE PRICE ANE YOI'B BEST BIIY. PBOOF? AStr OUN CUSTOMERS!.