Ceilings on Contract Logging Services Announccd bv OPA

Ceilings on contract logging services-the top prices a contractor can charge for cutting logs, half logs or cornwood from standing trees for the owner of the - timber-have been transferred to maximum price regulation No. 165 (services), the Office of Price Administration announced. The action will result in no increase in lumber prices, OPA said.

Previously maximum prices for contract logging services were provided by the general maximum price regulation.

Under maximum price regulation No. 165, maximum prices for contract logging are to be based on the prices that contractor charged during the month ol March, 1942, the same base date as was used in determining ceiling prices under the general maximum price regulation.

However, a simplified method of adjusting prices to allow for increased cost items, such as higher labor costs, is contained in maximum price regulation No. 165, and it was because of this simplified adjustment procedure that OPA decided to transfer contract logging services to it.

The transfer is made through amendment No. 23 to maximum price regulation No. 165 (services), and becomes effective June 23, 1943.

Here is how a logging contractor determines his maximum logging service charge under maximum price regulation No. 165:

The contractor, preparing a contract to log a tract of timber for an owner of timber, makes an estimate of the complete logging "show or change"-the price he is willing to do the jo'b for.

Factors he must consider in making the estimate are the following component cost factors: l. Careful estimate of the amount of timber to be logged, the equipment required, and the cost of opening up the tract for logging, such as moving equipment to the job, road construction, etc.

2. An estimate of felling, sawing or bucking costs-actually felling and trimming the trees and cutting them into log lengths.

3. Costs of skidding, swamping and loading, dragging or hauling the logs to the loading point, and loading them, together with the necessary road construction to permit this operaion.

4. Transportation costs from the loading point in the woods to a mill or other shipping point.

5. Any other labor items incidental to the production of logs.

6. A reasonable profit for performing the service.

All these component factors under maximum price regulation No. 165 are to be circulated on the basis of charges actually made or quoted during the month of. March,I94Z, as was the case under the general maximum price regulation.

Maximum price regulation No. 165, however, makes available to contract loggers a simple adjustment proceduie to be used if the cost of any component, such as labor costs, have increased, making profitable operations under March, 1942, contract rates impossible.

Under this adjustment procedure, a contractor and an owner of standing trees jointly may adjust the final contract logging figure to an agreed amount reflecting any increased component costs. The upward adjustment must represent only the actual increase in cost of labor and materials, and the owner of the trees must agree to absorb the increase, and not pass it on in higher prices charged for end products, such as lumber, which he may make out of the logs.

Within fifteen days prior to the use of the adjusted contract price, the contractor and timber owner jointly file with OPA a simple statement of facts relative to the adjustment on a form which may be obtained from OpA (form 687-116>.

NE\,t/ RETAIL LUMBER FIRM

The Val-,Cal Lumber Company is successor to quinez Lumber Company at Vallejo, Calif. The celebrated the official opening of its new, modern with a three-day merchandising event.

the Carnew firm quarters

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