Recoverv Administration Holds Lumber Code Hearings

Continued from Page 11) producers in accordance with the most equitable method David T. Mason, Manager of the 'Western Pine Assoadapted to that division. ciation, discussed wages and hours in the Western Pine West Coast Situation Division. V. A. Stibolt of the Southern Pine Association,

At a later appearance Col. Greeley made a general statement on behalf of the West Coast logging and lumber industry. He said that the opinion widely prevailed among timber owners that future increases in stumpage values will not recover the steadv accumulation of taxes and other carrying costs. The iremendous investment in standing timber ieeking liquidation has brought about an insistent pressure for the conversion of stumpage into lumber. This has resulted in (1) the construction of logging and manufacturing facilities far in excess of the demand for lumber even inlhe most favorable years; (2) the current use of installed capacity for the production of lumber in excess of current market requirements. The West Coast industry has, therefore, been in an almost chronic over-production with demoralizing effects upon markets, prices and the stability of employment. The stabilization of the industry, Col. Gieeley tield, was impossible without (a) control of the current volume of production and (b) reasonable control of minimum prices.

Col. Greeley was recalled several times during the hearings for further testimony on produ'ction, allocation and prices. He indicated that prices should be based on an average production cost of around $18 per thousand.

Sheppard on Hours and Wages

. President C. C. Sheppard of the National Lumber Manuifacturers Association, presented the wages and hours fea,tures especially in the southern lumber industry, both-hard ,and softwood.- Mr. Sheppard addressed himself-chiefly_to tthe 22rlc an hour minimum wage rate for the South. He rexpressed grave doubt as to whether the industry. cou.ld stand the burden of such a rate, which is about twice the rate being paid at present and about what it was in 1929. The wee[ly hour schedule of 48 hours was, he _said, a.20 .per cent riduction from present weekly hours. He estim,ited that this reduction would increase employment in the Southern mills by l7ffJfJ men. The new wage scale would add $2,664,000 to the Southern pine lumber payroll for the month of August.

Green, Ruegnitz and Weaver

William Green, President of the American Federation of Labor, dis,cussed the wage subject in moderate and conciliatory language. At the same time he contended that neith'er the $m.8{t weekly minimum for common labor in the South nor $20.40 in the northwest was more than a subsistence wag'e. Mr. Green held that under the privileges the lumber -industry would receive under the Act in respect of cooperation and exemption from the anti-trust liws, it would be feasible to raise the standard of living and the pur,chasing power of the lumber communities.

W. C. Ruegnitz, Portland, Oregon, President of the Loyal Legion of Loggers and Lumbermen, recommended a .4Ghour mill and a 48-hour logging maximum in his territory, and 42fc per hour on the basis of 36 hours actual employment. The "4 L" is an organization 9f employers and employees which pools and adjusts the labor problems of the mitls in Washington and Oregon' presented the need of price protection if the code were to be a practical success. He said that of all unfair methods the worst is destructive price competition, which results in periodic dissipation of forest resources, the destruction of equities and values and harsh reductions in wages. Control of production would not meet the situation, he said. Minimum prices must be based on costs. A basis of minimum selling prices by items, based upon the weighted average cost of production as proposed under the code must be established.

, Dr. R. C. Weaver, of the Negro Industrial League, speaking for the negro lumber industry employees,- advocated a minimum wage of 50 cents an hour and a 4o-hour week.

, He said that one-fourth of the laborers in the lumber in;dustry are negro.es.

A feature of the hearings has been the testimony of Wm. Denman, San Francisco, Chairman of the Board of Directors of the Coos Bay Lumber Company. Mr. Denman spoke in opposition to proposed price control formulas and also to the West Coast 4O and 48-hour week labor schedule. He declared that as that schedule had long been in effect nothing would be accomplished toward the increase of employment in line with the objectives of the Industry Recovery Act.

Kend,all on Fair Trade Practices

Harry T. Kendall, Chairman of the Trade Practice Committee of the National Lumber Manufacturers Association, explained the trade practices supplement to the code. These trade practi'ces, he said, represented the practical experience of the industry over many years. "Little stability can be hoped for in this highly competitive industry", said Mr. Kendall, "marketing a product standardized as to grade and size from thousands of mills and through thousands of distributors, without an enforceable set of trade practice rules which wilL not unnecessarily restrict, but will make all who play the game, play it fairly and openly with equal rights and opportunity for the same .classes of producers, distributors and consumers."

Code Hearings Continued

The hearings on Monday and Tuesday of this week were mainly given up to statements by various objectors to the supplementary divisional codes. Mr. Denman testified again at length; Sam Sells, Johnson City, Tenn., made some objections in behalf of a group of hardwood flooring manufacturers, and Calvin Fentress of Chicago, arguing for recognition of timber holding and financing, urged in the formulation of any code for the lumber and timber products industries that consideration be given by the Administration to non-operating owners of standing timber and asked that these owners, both large and small, be included in the code and be provided with the necessary means of parti,cipation.

Walter S. Johnson, representing the newly formed association of California White & Sugar Pine manufacturers, supported the lumber code but asked for recognition under it as a California division separate from Western Pine.

A. W. Fairhurst, representing 123 small tie mills in the Northwest, submitted a separate 'code for that industry.

A. T. Smith, Jr., representing the National Fixture Manufacturers Association, objected to the inclusion of the wood rvorking industries with the lumber code. He said that the schedule of hours and wages was unsatisfa,ctory. Objections were also voiced by George J. Leonard, of the Manufacturing Woodworkers Association of New York, Justin .(Continued on Page.24)-

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