The TVholesalel s' Cry Teeps ^From tlte Vailing 7a//

Bv T. B. Lawrence Lawrence-Philips Lumber Company

Los Angeles

The Los Angeles Wholesalers' principal wailing wall is the West wall of the Petroleum Securities Building, alongside the parking station where,the boys park their Flivvers and Rolls Royces after making useless calls on some "extinguished" buyers. Beside this wall they often pause to shed a congenial tear with a competitor and offer constructive words of encouragement such as "Yes, Boy, it's sure tough."

Take a look at these figures and join us in a good cry:

Los Angeles Building Permits t923 ...$200,000,000

Dn . ........ .. 93,000,000

1930 . 74;000,000

1931 .... :.... lobks tike 4O to 50;000,000 Lumber sales in this territory 'are in' dirett proportion to building permits.

The wholesaler belongs to a hopeful tribe, they seem to hang on no matter how tough the going. It must be admitted, howevbr, that duyingl tihe first half of this year they have don'e i little that' ib rc6nstrlrctive to help their condition.

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"o'gratutate themselves that they have hiil,tH.:.burag" and for6sight to maintain during the present depression an efficient organization. The Los Angeles Wholesale Lumber Association has given good credit information, advice on trade ethics and up-to-date information on market conditions. This Association has provided a forum for discussion of our own 'problems as well as a point of contact between manufacturers and retail assoc'iations. . I

As a whole th<i 'wholesale groui5 has made an earnest effort to cooperatq wilh. the retaill .groupi,knowing how largely our suciesiq is, dependent orl theirs.

On account of the fact that the *holesale group is made up of wholesalers' group representatives and direct representatives it is not always possible to get 100/o agreement as to the solution of our problems.

We wish to disquss here'some'of the problems'that have confrontedus:t , ',.. ''

First there is no [eheral agreement among up as to the merits of grade-marking. The general impression seems to be that grade-marking is particularly advantageous to the retailer and simplifies whglesale sales; As to the ,present method of grad€-marking:using West Coast stamp in any and all yards we feel there is something left to be desired. This system is. all right as a means to an end, but after a demand is' established for. grade-marked lumber we feel it should be the mills' function to mark their own lumber.

' The new Los Angelyqs ipuilding Code which made necessary the application of three coats of plaster to wood lath and only two coats to any substitute material we felt was discriminatory and gave us some anxiety. Some of our group worked hald on this and after several meetings with the Contracting Plasterers' Association and the Building aird Safety Committee of the City Council are in a fair way to have the ordinance changed so as to be more favorable toward wood lath.

The Harbor Board has given the Lumbermen as well as other Harbor industries a few bad half hours with their proposal to raise wharfage and other Harbor rates. IJnder the new proposal preference will be shown coastwise domestic lumber and higher rates will apply to imported hardwoods, as well as Canadian softwoods and domestic hardwoods from Gulf Ports and the Atlantic coast. The lumbermen are as a unit with other Harbor industries in opposini any increased rates. We feel that increased revenue is not necessary for Harbor maintenance and that the Harbor Board is trying to establish a new princifle of financing; that they are trying to finance new cbirstruction out of,current revdFuis instedd of the sale of bonds; We feel that it would be disastrous to a.city so dependent on its harbqr as Los Angeles-to have rates increlsed at this time and with business at its present level. Our indus; llf !s Ue** represented at meetings with the City Council Harbor Bodrd and Chamber of Commerce and it is hoped that our efforts will be successful.

The question of the importation of Canadian lumber into California has bothered some of the manufacturers and they have charged the wholesalers who handle British Columbia lumber with dumping which is supposed to be d crirne .undgr the new'tariff law. This charge ha,s .been made to the Federal Trade Commission who ari now'invesligatjng'thesb wholesalers much.to their. diigust,' The findings of the Commission have not yet been mlde public. California on account gf its nearness to lumber producing areas has always- been more or less of a dumpittg ground for Oregon and,Washington mills and it would seem out of order for them to charge their neighbors in.Canada with trying to keep up with them. 'It'wo-uth te better for them to concentrate on improving their product and merchandising it more intelligently than to blame others for their troubles.

There is nothing at present to indicate any increase in volume in any market for the balance of the year. The whole gountry is considerably over-built although our local conditfon in this respect is better than most anywhere else in the United States.

The Wholesalers' one ray of hope is the enforced curtailment now taking place in the northwest. It is very likely that production will be only 35/o of normal for the next three months, which will surely have the efiect of advancing wholesale prices.

Buy Now and End the Depression.