II New lnterpretation of \(/.ge-Hour Law Defines Retail Sales

which follows:)

(B) DISTRIBUTORS OF LUMBER AND BUILDING MATERIALS

i I Washington, D. C., June 16th: In accordance with the ing, but includes nearly three pages having to do strictly &irectiorrs-of the U. S. Appellate Courts that exemptions with "Distributors of Lumber and Building Materials," {rom humanitarian legislation should be strictly construed, ih. W"g. and Hour Division of the U. S. Department of Labor will not regard any establishment exempt as a retail one unless at least 75/o of. its sales are retail. Where wholesale, industrial, and commercial sales, non-retail in {haracter, total more than 25/o, the 4O hour week and the i0-cents-an-hour minimum wage will apply.

| .qt tne same time, the Division will broaden its concept ff a retail sale. As a result, some sales to industrial or iommercial purchasers may be included as retail in deterkrittittg the status of an establishment under the Wage and Hour Law. These sales must be of articles commonly sold both to business and private purchasers' and must be in a luantity or at a price similar to sales to private purchasers.

This policy was announced today by General Philip B. Fleming, Administrator of the Division, in making public a revision of the Division's Interpretative Bulletin No. 6. This is the interpretation on the scope and applicability of lhe section in the Wage and Hour Law that rules that the floor for wages and the ceiling for hours shall not apply "to [ny employee engaged in any retail or service establishment ihe greater part of whose selling or servicing is in intrastate' 'commerce."

r This policy will go into effect July lst. The Bulletin states, "For purposes of enforcement, the computation of the doll"t volume of retail and non-retail selling rvill be .based on the semi-annual record of sales of the establishiment. The analysis of sales from January 1 to June 3O and fuly 1 to December 31 will be used to determine whether 'during each six month period a substantial portion of the :selling of the establishment was non-retail."

i "From the first," General Fleming said, "the Division has gaken the position that a 'substantial' amount of non-retail iselling would nullify the retail exemption for any establishment. Shortly after I became Administrator we interpreted "substantial' in this respect as more than 50 per cent. Subisequently the U. S. Court of Appeals for the Eighth District 1(St. Louis) handed down an opinion that the Wage and ilfour Law, as an humanitarian law, is entitled to a liberal lconstruction and that exernptions from it are subject to i'strict construction. The First Circuit Court (Boston) said ;the same thing. Many wholesalers complained about the l,competitive wholesale service that retailers not under the 40 , hour week were able to provide. So we are now regarding r ''substantial' non-retail selling as more than 2.5 per cent. We i'will not regard establishments with more than 25 per cent Inon-retail sales as exempt from the 40 hour week and the 1.30 cent minimum wage."

i : "At the same time we are acknowledging the retail charliacter of many sales to industrial and commercial firms which l,alway's have been considered retail in the trades. I believe ithis will do much to make our enforcement policy more ac!,ceptable to firms engaged in distributing goods." r llntetptetative Bulletin No. 6 covers all forms of retail-

52. Distributors of lumber and building materials present a number of unusual problems which are not characteristic of other fields of distribution. Distributors of lumber and building materials sell not only to individuals, and to busi; ness and industrial purchasers directly, but also to independent contractors acting in behalf of such purchasers, and to contractors engaged in speculative building. Consequently, the criteria normally adopted in determining whether sales are retail or nonretail in character cannot be applied in precisely the same manner in the case of lumber and building materials dealers. In recognition of the peculiar problems presented it has been necessary to make slight variations in the application of the principles set forth in Part I to reach virtually the same result in determining whether a given distributor of lumber and building materials operates a retail establishment.

53. An establishment engaged in the distribution of lumber and building supplies will not be considered a retail establishment unless it maintains a stock of merchandise from which sales are made and unless it is open to and serves the general consuming public. The fact that it adjoins a railroad siding or wharf or that it does not have show windows or sales clerks will not defeat the exemption.

54. An establishment engaged in the distribution of lumber and building supplies will not be considered a retail establishment if a substantial portion of its selling is nonretail in character. The following criteria will be used to determine whether sales are retail or nonretail.

55. A sale of lumber and building materials to a private individual for the construction, maintenance, or repair of his private home or garage (or appurtenant structure such as a fence or walk) is considered a retail sale. The sale of lumber and building materials to contractors who purchase directly in behalf of such individuals will also be considered as retail. For example, an individual property owner may hire a contractor to build a house for him. The sale of lumber arrd building materials to the contractor in such cases will be considered as a transaction essentially similar to the sale to the property owner directly, and will be considered retail.

56. Sales to business or industrial purchasers, or to contractors acting in their behalf, for the construction, maintenance, or repair of commercial property such as retail stores, apartrnent houses, etc., rvill also be considered retail sales if made in small quantities. The sale of lumber and building materials for the construction or repair of apartment buildings, office buildings, stores, or other commercial property will not be considered retail if the transaction involves a quantity of goods materially in excess of the quantity norrhally purchased by private individuals for their own use. T"!, determining whether a "small quantity" of goods is involved the criterion will be the total quantities of goods contemplated by the parties. Accordingly, the construction of an apartment house, hotel, factory, office building, or real-estate development, etc., ordinarily contemplates the transfer of large quantities of goods which are delivered in smaller quantities from time to time. The sales in such cases may not be considered as retail sales.

57. Other sales which ordinarily are not retail since they involve large quantities of goods are sales of building materials and lumber for the construction, maintenance, or repair of railroads, highways, bridges, dams, and other similar structures and sales to the Federal Government or to State or municipal governments.

58. Sales of lumber and building materials for purposes of resale in any form normally may not be considered as retail sales. Accordingly, sales to dealers who intend to resell the goods are not retail. A distributing depot or yard for a chain of lumber yards may not be considered a retail establishment. The exemption does not extend to central executive office work or general distributive activities among branches of a chain of lumber yards. Sales to industrial concerns which use the materials for the fabrication of furniture, boxes, crates, automobiles, toys, ships, etc., are also sales for purposes of resale and hence, are not retail sales. Further, sales to contractors or other persons for speculative building are considered as sales for purpose of resale.

59. It should be noted that in the language of the statute the exemption applies to employees of retail establishments. If a firm operates two or more separate establishments, the characteristics of each establishment must be considered separately in determining whether such establishment may properly be considered a "retail establishment." The character of the enterprise as a whole will not determine the retail or nonretail character of separate establishments within the organization. Thus, for example, a company may operate two separate lumber yards in different parts of the city. Each lumber yard is considered a separate establishment for purposes of the exemption. If a substantial portion of the selling of'one lumber yard is nonretail such lumber yard would not be a retail establishment for purposes of the exemption, even though th.e combined nonretail selling of both lumber yards is not substantial. Conversely, if the nonretail selling of one lumber yard is not substantial, it does not cease to be a retail establishment merely because the combined nonretail selling of both lumber yards is substantial.

60. Processing incidental to retail selling ordinarily will not defeat the exemption. Thtis, the fact that a lulnber yard operates a saw to cut lumber to a smaller size asrrequested by its customers or assembles window and door frames which are received in a "knocked down" condition will not defeat the exemption. Many lumber yards, hou/ever, perform manufacturing operations in addition to processing operations incidental to retail selling. Such yards often operate clearly defined manufacturing plants or plan'ing mills which use various types of manufacturing machinery such as saws, planers, molders, shapers, sanders, mortise and tenon machines, joiners, lathes, grinders, etc. Ordinarily, window and door frames, moldings, sashes, cabinpts, boxes, counters, store fixtures, balustrades, etc., are manufactured. The manufacturing by such yards often is ip competition with plants or planing mills which are not operated in connection with lumber yards.

61. If a lumber yard is engaged in the productiqn cif goods for interstate commerce and the manufacturing,opeiations are not segregated, the exemption provided by section 13 (a) (2) will be inapplicable to the entire yard. On the other hand, if the manufacturing operations are segregated, the employees engaged in the manufacturing operations would be subject to the act but the employees engaged in distribution might qualify for exemption. The distribution portion of the business would be considered separately in determining the applicability of the exemption to it. It should be noted, however, that an employee whose work relates both to distribution and manufacturing will not be exempt under section 13 (a) (2) during any work week in which he performs any work connected with manufacturing. Accordingly, "yard" employees who occasionally work in the manufacturing plant, general maintenance employees, office employees, and other types of employees whose work relates to the business as a whole as distinguished from distribution exclusively would not be exempt under section 13 (a) (2).

62. fn some cases, lumber yards distribute lumber and building supplies and also manufacture goods for intrastate commerce. No goods are produced for interstate corfimerce. In such cases the determination of whether section 13 (a) (2) applies will be based upon the retail or nonretail nature of the distribution. The performance of noncovered production will not be deemed to defeat the exemptiorl.

Amendments to Nationrl Houring Act

Washington, D. C., June 21, 1941.-The conference report on the disagreeing votes of the House and Senate on the amendments to H. R. '+693 was released yesterday by the conferees. The agreement reached in respect to the amendments to the National Housing Act is as follows:

(1) The authority to insure modernization and small home loans under Title I is extended until July l, t943 (a 2-year extension). '

(2) The amount of loan for alteration, repair and im'provement of existing structures is set at $2500 (the same as is provided in the present Act).

The amount of loan for alteration, repair or improvement of an existing dwelling designed or to be designed for more than one family may be $5,000. (The primary purpose of the $5,000 loan authorization is to encourage the modernization of existing structures into multi-family dwellings for the purpose of housing defense workers, but the Bill does not confine the $5,0S loan to this specific purpose-)

(3) $2500 loans, as heretofore, must be paid off in 3 years and 32 days. Loans between $2500 and $5000 shall have arr amortization period not to exceed 5 years and 32 days.

(4) The authorization of the Administrator to refinance and extend Title I loans is continued, with the limitation that in exerting this authority the refinancing or extension shall not be for an arnount or term in excess of the maximum amount or term provided for in connection with the insurance of new loans.

(5) The authority to insure mortgages on existing construction under Title II of the Act is extended until July l-, lg*, a 3-year extension.

(6) The authority of the Administrator to include a Portion of the foreclosure costs in debentures issued in connection with 90 per cent small home mortgages is extended until July l, 1943.

(7) Other amendments to Title I are largely technical in character.

The delay in securing action on this particular piece of legislation has largely been caused by the addition by the Senate Committee of an amendment to the Bankhead-Jones Farm Tenant Act, proposed to set up a farm mortgage insurance system patterned after the provisions of the FHA for tenant farmers. The conferees were unable to agree on this particular Provision.

It is expected that the House and Senate will promptly agree to the conference report on the FHA amendments.

New Design for California Home

Southern Cqlilorniq Hone Show.

A new design for a California home of' moderate cost, Southern California Homes Foundation this week offers the "Sunview" plan, List A-724. This home is particularly recommended for a view site, because of the ample pro= vision for windows in all rooms.

Retail lumber dealers can provide conditional estimates and design service on the "Sunview" plan. For "Two Answer Books on Home Building," write Southern California Homes Foundation, 1348 "E" Street, San Diego.

A. L. Nelgon

lst#-at9 Wcrobouro: 1600 E Wcrhtngilon Dlvd. LOS llfGEtES r rAnoilf,I. OBGANUAIXON taooEtlt r|EwtBtltltDtotE rtcotlf, clltcf,Go ltlf3Att cnr sl. Pf,ltL

Albert Lawrence Nelson, who operated a sawmill at Bull Creek, Humboldt County, Calif., and also manufactured Redwood split products, passed away in Scotia, June 15.

He was born in Finland 45 years ago and came to this country in 1912. He served with the 316th Aerial Squadron in the World War. He was a member of the State Park Commission since 1929 and was prominent in American Legion and civic affairs in Humboldt County.

Four Californir Cities Listed Among First Twenty in Building in U.S.

Los Angeles, San Diego, San Francisco and Oakland were listed among the first twenty cities in the United States reporting the largest volume of building for the first five months of. 1941.

Los Angeles was in second place with a total of $36,n4,927; San Diego was fourth with $32,552,808, San Francisco 'vrlas ninth with $12,m317, and Oakland was fifteenth with $7,688,237. New York was in first place with a total of $80,142,506.

Following are the twenty cities showing the largest permit valuation for the first five months of the current year and comparative figures as compiled by Dun & Bradstreets, fnc.:

Rosboro Lunrber Go.

Springrlield, Oregon

Mcnulqcturer ol Ccsccde Old Growth Yellorr Fir

Thoroughly Modern Plcmt

Dcrily Ccpccity 150,000 Feet

Specializing in Perlectly Mcrrulcdured High-Grcde Uppers q G. ATKIIf$Oil, Srler lllrnager Springrtield, Oregron

Southern Cclilornia Representctive

W. Gooper

149 So. Orcmge Drive, Los Aageles Telephone WYoming 2770

Time

Now is the time to stock up on

New Yard Appointments

Roy Culpepper, former manager of the Hayward Lumber & Investment Company's yard at Yuma, Arizona, has been appointed manager of their yard at Bakersfield. Chester Weaver, former credit manager at the Bakersfield office, has been appointed assistant manager. They succeed Larry King and Sid Marshall Who have gone into the lumber business for themselves in Bakersfield.

Window Screens

cod

Screen Doors

BlindsIouwe DoorsIroning Bocnds Rtl( cmd EASY (to wtrsh) Conrbincrtion Screen crnd Metcrl Scsh DoorE

f Western Putlman Door Has Many Points I That Appeal to Dealers

The new Western Pullman Door, advertised on another page of this issue, is a product of Western Door & Sash Company, Fifth and Cypress Streets, Oakland.

This combination sash and screen door has a number of selling points that appeal to dealers. One of these is that it locks from the inside and is impossible to open from the outside. Another is that the sash is hung on a special balancer, making it easy to raise or lower.

Other points are that the screen can be taken off in a few seconds to clean the glass; the door is made of waterproof and weatherProof resnprest plywood; the entire door is treated with rvood preservative {gainst moisture absorption and decay; the bottom rail l.ras weep holes for drainage; the metal lock rail is of cold rolled steel, cadmium plated, securely fastened to stiles, {raking it impossible for the door to spread at the lock rail lnd allowing the sash to slide easily.

! Western Pullman Door is made in sizes from 2-6 x GB x lys to 3-o x 7{ x l%..

, Dealers can get further particulars and literature by frriting or telephoning to Western Door & Sash Company, Sakland. Telephone TEmplebar 8400.

Demonstrate Curtis Companies Millwork Line

i e. W. Larson, manager of the Patten-Blinn Lumber Co., ft.eseda, was recently host to a group of thirteen building {ontractors at a dinner in the banquet rooms of Bothwell's Reseda cofiee shop. The purpose of the meeting was to {cquaint them rvith the nationally-known Curtis Comfanies millwork line. Howard Cauldron, manager of the fatten-Blinn Curtis division supervised the demonstration 6f the millwork to the builders.

Greetings

Dear California Lumber Merchant,-

As I write, your birthday is just around the corner-I remember. It doesn't seem so long since you first stepped out for yourself, but it must be, for when I count up your years, I realize that indeed time has flown. You are a big fellow now; I hope you won't be drafted.

I remember your first birthday and how thrilled I rvas when your guardians asked me to write a little something for the occasion. Well, you have lived wisely and well. You have never disappointed those who welcome you to their offices and homes.

Your services to the lumber industry cannot be estimated and your valuable encouragement, council, and informative advice, have aided many an individual lumberman over rough places in the road he had to travel.

So it is, Callfornia Lumber Merchant, that upon this anniversary of your advent we extend our heartiest congratulations and wish for you a future of continued growth, prosperity and service to the industry you so ably represent.

To your guardians also, rve send greetings and the hope that success may attend them all along the way, and that health, happiness and prosperity may be their portion. It's long since you came to us, All bright and fresh and new, And we took off our hats and said, A hearty "lfow," to you. But every time you've made your rounds We've hailed you as a ftiend, You've won your bright place in the sun And good will without end. We like the precepts that you teach, The good advice you give, And relish your philosophy, It tells us how to live. So may your stature still increase And may your years be long, And in these shadowed days may you Still sing the victor's song.

-A. Merriam Conner.

(Editor's Note.-The California Lumber Merchant started publication on July t,1922.)

Redwood Data Book

Retail dealers can tilt back their chairs and be at "the greatest of ease" the next time a Redwood lumber salesman drops in, because all salesmen of the industry now carry the new Redwood Data Book, a veritable "World's Almanac" of information, which can be placed on the dealer's desk in an almost vertical position, like a blackboard, for the display of the sales building material it contains.

A smart portable file of picture and drawing, fact and figure, Redwood Data Book contains a glowing account of redwood use and treatment from every user's point of view. And for ease of viewing, it is put up in a "presentation" type of three-ring binder, adjustable, on desk or counter, to two angles, one of 65 degrees and the other at 25 degrees.

The subject matter of Redwood Data Book is divided into sections. Of these sections, one contains all pertinent information on redwood manufacture, grading and grading rules, patterns, and physical, chemical and mechanical properties. Another section covers the use of durable redwood in home building, on the farm, in the garden, in industrial plants, in heavy structures, and special uses. The separate subjects of each section are presented on looseleaf sheets. New sheets are to be added as new data becomes available.

Whether it is about a picket {ence for a home garden or a redwood tank for a chemical plant, all data sheets in the sections of Redwood Data Book carry specific, 4etailed information. An example of this thoroughness of detail is found in the most recent addition to the file. The subject is garage doors. The new looseleaf sheet contains clear-cut pictures of four designs of over-head doors that may be constructed right on the job from redwood stock patterns. Accompanying each picture is a redwood material list for the door shown. The pattern number, grade, and rough size of the board facing is recorded. There are listed the number of pieces of each length of facing board called for in the construction of the particular door. Bordering the list is a scale silhouette of a section of the facing board.