California Building Conditions Fine-Selling Price Only Weakness

In the last two issues of "The California Lumber Merchant," many splendid facts have been published, to show that the building situation in California is much better than some of the pessimistic things that are frequently uttered, are not founded on fact.

There rvas much "kicking" heard about June business. But we showed that instead of being a poor, June was a splendid building month. More lumber was shipped into Southern California in June of this year than during any month for a very long time; and June began with the lumber docks of Southern California well iammed with excess lumber.

The end of June found these excess stocks reduced to normal, and all the large income of the month moved and used. Nothing very bad about that.

Then came the total building permits for June- which told the same story, not only for Southern California, but for all the leading cities of the state.

Here are the totals for these cities for June last year, and June this year. Look them over: they should do a prosperous business. And when they do NOT, the trouble is not with the lumber business, but with the men who run it.

Every man is entitled to a reasonable return on his investment. All good business accepts that statement as fact. The laws of California particularly stress it. The lumber industry in California is complaining of business conditions, when business conditions as a whole are really very good.

The price of lumber in California is too low. The wholesale and retail prices are both too low. The retail price delivered in Los Angeles for the past month is no higher than the mill price should be, one thousand miles away, if the industry is to prosper.

Competition of the unrestricted and regrettable sort makes the price of lumber in California, and not values. When logs that sell for $20 a thousand in the Northwest, are cut into lumber and delivered on the job in Southern California for $28 a thousand, there is something wrong with the thinking apparatus of the lumber men, mill men, wholesalers. and retailers alike.

These home building people in California are fine folks, all right, and we like to see them get the best deal possible within reason. But they are.buying their lumber too cheap for the welfare of the lumber industrv of the west.

Please note the magnificent increase in the totals, and also the splendid increases that were made this June over last by nearly every city in California. There is much food for thought in these figures.

You see, there's really nothing much the matter with thg lumber business in California. The only trouble is with the lumber MEN of California. When men sell a large and sufficient and satisfactory amount of building material,