No Help For Lumber

By Richard A. Colso n, Jr., Executive Vice President National Lumber Manufacturers Association

Lumber is back under price control-and God pity us ! The new bill which the President has signed gives almo,st no help to the lumber.industry.

The McClellan amendment to the bill would have glven the lumber industry a fighting chance to increase production and break the black market, but the OPA-dominated conference committee efiectively killed that chance by emasculating the amendment-dropPing the stumpage provision and removing hardwoods entirely.

All that is left is a provision that 90 per cent of softwood production must be allowed to break even. Since OPA claims that it already has given Douglas Fir and Western Pine producers pri'ces high enough to do that, and since eventually it,might have grudgipgly given Southern Pine an increase with the claim that it covered 90 Ber cent of production, the effect of the amendment is not great.

Other provisions of the re-enacted price control law apparently rvill give little or no helo to lumber manufacturers. The Barkley amendpent providing a l94O profit base, plus average industry-wide cost increases since then, seems to most lumbermen worse than useless. No detailed analysis is possible yet, but apparently the application of this amendment to lumber prices will result in almost none of the increases needed to encourage lumber production and destroy the black market.

As originally adopted, the McClellan amendment would have gone a long way toward meeting the major objections of the lumber industry to the prior administration of price control. Repeatedly, lumbermen showed Congress the absurdity of the OPA theory of allowing only 75 per cent of production to break even, and of figuring stumpage costs at book value. NLMA and the lumber industry strongly supported the amendment.

The McClellan amendment as adopted provided a 90 per cent break-eveh point for all lumber, and required that the current market price of stumpage be used in figuring costs. Behind the closed doors of the conference room' where industry was excluded and never had a chance, OPA staff members sat. constantly with the members of the committee, according to the published reports.

And very quietly, and apparently with no protests from any of the conferees, all hardwoods were lifted from the 90 per cent clause, and the stumpage requirement was completely eliminated. So popular was this McClellan amendment when it was introduced in the Senate that not a voice was raised against it, and leaders of both parties spoke in favor of it. Yet it was virtually killed in the conference, without a murmur.

During the 25 days of relief, from the end of price control on June 30 until the President signed it back into law on July 25, the lumber industry acted with admirable sense and restraint, according to all the reports which reached us. The NLMA, of couf,se, keeps no price information of any kind, but the published statements of scores of lumbermen throughout the country, and the newspaPer and trade paper accounts of what went on, all indicate that the only reaction to the end of price control was a mighty, collective sign of relief.

No one knows what's going to happen now, of course; the guesses run the whole range from boom to bust. But I believe it is obvious that this bill is a terrible mistake. Part of the economy is now only loosely controlled, if at all, and how business can operate intelligently and get anything done in a half-slave, half-free condition such as this, I don't know.

In the 25-day breathing spell, the normal pressures of free markets had already begun to iron out some of the worst absurdities in the lumber price schedules, and the black market was reeling under the impact of free prices. Molding plants, shut down for years, went back into production. And now we're right back where we started, rvith an even more unworkable law than before. God pity us !

Named \(/holesale Distributors For Aluminum Windows

Building Material Distributors, wholesalers and manufacturers' agents with warehouses in Stockton and Fresno, have been appointed distributors of Ogle's residential double-hung aluminum windows. 'These come in the following (approximate) sizes : V4" x 3'-0't; V-U' x (-4" i 3'-0" x 3'-A'; 3'-U' x 4-{'; 3'-7t' x 4-4'.

They are exclusive agents in Northern California for the Weather-Tite Door Saddle, which stops all water and drafts that now enter under the average door.

Smartbright and Smartshield D.D.T. Paints are distributed by this firm to dealers in Northern California.

And they are also wholesale distributors of the Penn line of locks and builders hardware.

The Stockton warehouse of Building Material Distributors is at 1000 East Channel Street, and the Fresno branch is at 1855 Cherry Avenue.

New Yard Opened in Chula Vistcr

Chula Vista has been selected as the location for the Southern California outlet of the Collins lumber interest of Portland, Oregon, and according to an announcement by Dr. Robert M. Griffin the organization will be known as the Palamar Lumber Company. A four acre tract has been purchased on G Street, west of Bay Boulevard, Chula Vista, which will afford them trackage. The new corporation is set up for both wholesale and retail, and expects,to handle export business into Mexico. Dr. Griffin has been named as president of the new'organization with George C. Flanagan as vice president.. Darrell Mattoon of Portland will be manager.

In addition to the lumber business, Dr. Griffin has also organized the Gi.iffin Builder.Supplies, which will be operated from the same address on G Street. It will be the intention to carry a full line of builders hardware in addition to lumber.

Willits Mill Burns

The Redwood mill of Sequoia Lumber Company at Willits, Calif., was destroyed by fire July 15. The plant, which had a daily capacity of 31000 feet, rvill be rebuilt as soon as possible.

Los Angeles Continues to Set New Building Record

No whole year since 1925 has matched the valuation of building permits that were issued in Los Angeles during this year's first seven months, according to G. E. Morris, superintendent of building.

The Jan. l-July 31 total was $150,556,615. For the like period of 1945 the figure was $28,184,820.

Last month's valuation vras announced as $21,690,508, as compared to $5,818,951 on record for July last year.

Mr. Morris estimated that permits have been issued for the erection of about 8500 one-family homes in Los Angeles so far this year.

The number of building permits that have been approved for construction of all classes of structures to date this year is 32,588almost exactly double last year's seven-month showing.

Building permits for the first seven months of 1923, the year which set the previous all-time record in Los Angeles, totaled $108,972,438.

Increase Grcrnted Ceiling Prices on West Cocrst Peeler Grade logs by OPA

Ceiling-price increases on 'West Coast peeler grade logs sold to manufacturers of softwood plywood, amounting to $7.50 per thousand feet log scale, have been authorized by the Office of Price Administration, effective July 26, 1946.

As a result of this action also, producers of these logs who sold to softwood plywood manufacturers by agreement at adjustable prices in keeping with the premium payment program announced by the National Housing Expediter on June 19, L946, may no\,v collect the authorized increase on those sales.

The higher ceiling prices may be paid by purchasers of Douglas fir, No. 1,2 and 3 peeler; western hemlock and western white fir suitable for peeling; sitka spruce, select; noble fir, aircraft grade and suitable for peeling.

Suppliers of these logs must show separately on their invoices the amount by rvhich the prices charged exceed the existing maximum prices. This action cancels OPA's adjustable pricing order for peeler grade logs.

(Amendment No. 24 to Revised Maximum Price Regulation No. 161--West Coast Logs; effective lloly 7.6, 1946.)

FTREPRooF rs rHE |"REASON wmv GRTP tATH IS BETTERI

The fireproof quolity of GRIP IATH is unique; not only will GRlp IATH not burn or support cgmlqfi9n, but high remperorurel connot poss ihrough it The protecrion given by GRIP IATH ond Gypsum ploster sofe-guords w6od ogoinst fire. Fireproof GRIP LATH builds sofer homes.

INSUTATION IS THE 2ND REASON WHY GRIP LATH IS EETTER|

The low the.rmol conductivity o{ G R I p IAT H its withsronding of high lemperofures, moke ir on insuloror of greot efficiency. Add the noruiol insJ-loting quolities of Gypsum, fiber ond ihe fibrous shcers covering, ond you hove insulolion plus. o home worm in winler, cool in summer.

SAVES TI'ITE IS THE 3RD REASON WHY GRIP TATH IS BETTERI Uniform thickness. squorc edged foctory conrrollcd suction orc oll combined in GRIP.lATll to insure you greorerspccd ond eose in plos- lering meons more homes per mon hour.

ECONOMY IS THE 4TH REASON WHY GRIP LATH IS BETTERI

. The modern plosler bose, GRIP LATH, is nol only economicol from q stondpoinl of speedy opplicotion, which soves consideroLte construction lime, bul, olso, becouse of moss producrion merhods, it is reosonobly row in cost offers you o greoter dollor volue.

I.ESS CRACKS IS THE 5TH REASON WHY GRIP IATH IS BETTERT lmpervious to exponsion or controction, G R I p IAT H reduces crocks fo c minimum.So,when you specify GRIP LATH, you provide in the ploster bose lhe odvontoges of Fire Proleciion... Durobility. .. Economy. Better Bonding Squore Edged Uniform Suction ond Uniform Thickness.

A Washington high dignitarY, Cried "Pass OPA-this looks scarY; Get busy, old dears, Or the Black Marketeers May all starve to death-if you tarry."

*,t:f

So they passed it, and the Black Market, which had been held in something like suspense for a short time, came back home where it will live happily-if not ever afterat least for a iong, long time.

There was hope ,o, "ltnri" *nla corrgress would finally get rid of OPA and its hideous offspring, the Black Market. But fate said otherwise, and the boys, running for re-election, grabbed their schnozzles between thumb and forefinger-and passed it. Those who had hoped the thing was dead, found themselves in the position of the swain in the following tnt-.t * * *

"'We were seated in a hammock, On a balmy night in June, When the world was hushed in slumber Neath the guidance of the moon; And I asked a little question, And my heart was filled with hoPe, But her answer never reached me, For her brother cut the roPe." ***

Anyway, wasn't it fun to be free, even for a short time? Made us understand what St. Paul meant when he said to the centuritrl-"f was born free." 'We hadn't been free for so long we had almost forgotten what it was like. I paiil the same price for my beefsteak in my favorite restaurant that I had been paytng for the previous year, but somehow or other I liked the taste of that White Market steak better than I had been enjoying the Black Market meat. :F**

Regardless of the upped price in the market (due largely to the elimination of the subsidy), it was fun to walk in and say-"Gimme a pound of butter-and quick."

During the OPA intermission, lots of people charged upped prices for lumber. But the highest price asked for White Market lumber during that period was never anywhere n€ar as high as the price of Black Market lumber had been; and the quality of the stuff was invariably higher'

What comes now to the lumber industry is any man's guess. The Black Market will ride the crest of the wave' regardless of what happens to ceilings, because there will never be a maximum production of lumber under restrictions and regulations. It would bi unreasonable and illogical to expect anything "1"".* *

The Black Market is so easy and so profitable that it appeals to many. They tell about the sawmill man who has a cur dog that hangs around the mill office. He says he has sold that dog for anywhere from $200 to'$500 more than fifty times, each time to the buyer of a truckload of lumber. He says the dog doesn't seem to like the folks who buy him, because he never gets more than a mile from the mill with the new owner, and then comes back.

When you buy a dog with a truckload of lumber, you don't ask whether or not it is dry, well manufactured, decent lumber. You take your dog, and your discolored and mis-manufactured lumber, and go on your way. Whether you go rejoicing or not, t: *t: question.

I got a kick out of the remarks of an old friend of mine who ip operating a remanufacturing plant, slicing big stuff from the mills into small stuff for the carpenters. He put it this way: "Well, the new OPA keeps me in business. I started the thing as a war baby. It has made money. If OPA ended, the mills would go to cutting lumber in regular items as they used to do and this plant would be dead in 90 days. I wish it had happened. While it makes me 'money, I feel like I would if I were collecting rent from a gambling joint, because regulations that create such a situation are all wrong." ,fi *

Congress got around to making the big British handout before adjourning. We leat'n nothing from history. By loaning the British during World War I we only earned the name of Shylock, and the ill-will of the British people. ft was Polonious, into whose mouth Bill Shakespeare put these wise words on subject:

"Neither a borrower nor be, For loan oft loses itself and friend, And borrowing the edge of husbandry." **

And again in Henry IV, gives advice on that same subject, saying:

"f can get no remedy againlt consumption of the purse;

,lingers it

Borrowing only lingers out, But the disease is inc rk**

In the lengthy discussions of the British loan iust made,

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