Danger Signals

"There are indications that our industry ^uy have some rough r,r'eather ahea.d. Like a good sailor the industry should anticipate this, and as {ar as possible prepare to minimize the danger," said S. V. Fullarvay, Jr., secretary-manager of the Western Pine Association at the association's semi-annual meeting in San Francisco, August 16.

"'Fifty years ago there were 28,000 manufacturers of lumber and timber products. Now there are less than 12,000.'

"The NLMA wrote the Attorney General that his figures t'cre incorrect and misleading because these were obtained from. a Census Bureau series of figures which had suffered a change of base in the period it covered. In the first part of the series, beginning in.1899, the Census Bureau reported all manufacturers doing more than $500.00 gross. Between l9Z0 and l92l the base was changed and thereafter only those doing $5000.m gross were covered.

As a background for his remarks Mr. Fullaway gave a cuick revierv of the history of Iumber production by the Western Pine industry over the past 25 years. The average annual production from 1920 to 1929 was about 4f billion feet; from 1930 to 1939,' the depression period, it was about 3l billion feet, and for the five-year period 19,10 to 1944 it averaged almost 6 billion feet. In 1945 production declined to just under 5 billion ieet, due to the rvidespread strike. There ari definite indications that 1946 Western Pine production will pass thd 5 billion foot level, he said. and continued as follows:

S. V. Fullawcy, Jr.,

"fn view of this excellent war record and of the industry's demonstrated effort to meet reconversion needs, it would seem only natural that a grateful government should commend and give encouragement to the Western Pine industr,v. On the contrary, there appears to be a studied plan to discredit the lumber industry with the general public and to create the impression that our industry is responsible for the shortcomings of the reconversion program and of the Veterans I{ousing project which have resulted from mishandling by the government. It is this shameful situation which must be faced. Let us examine some of the evidence.

"With the announced purpose of checking compliance under the 1941 lumber c6nsent decrees, which give the Department of Justice authority to examine all records of the parties subject to such decrees, a horde of F.B.I. agents descended upon ihe western lumber industry last spring. There are indications that this investigation was of the "witch-hunt" variety, going far beyond a routine check for compliance with consent decree provisions and seeking to-locate any possible information which might be construed to the discredit of the industry.

"In a speech before the United States Chamber of Comnrerce at Atlantic City on May l, 1946, the Attorney General of the United States, Tom C. Clark, whom many of you will remember as a. member of Thurman Arnold's staff in charge of the 1941 anti-trust investigations of the lumber industry, made the following statement in complaining about the elimination of small business in the United States:

, "Clark's reply admits the above facts but refers to the l92l to 1939 Census figures which show a 15lo decline in the number of producers. This he says indicates the trend r'vhich he pointed out in his speech. He added, further, that this trend toward elimination of small business was. he believes, accelerated by the war and it is his hope that they will be able to reserve this trend and to open the door of opportunity to new business and particularly to veterans who want to go into business.

"The NLMA has furnished the Attorney General further facts which, at least, throw serious doubt on Clark's conclusions but an assisdnt, who acknowledged these has this to say:

"'ITowever, I must add that it would be hard to convince some of bur experts. here, on the basis of their over-all information, that there is not a trend toward concentration in the lumber industry.'

"Tt is general knowledge that it is the small portable mill of the "tea pot" type which has always accounted for the vast number, of lumber producers. Also, it is well known that this class of mill multiplies and prospers in periods of good demand and, because it has little investment or fixed charges, finds it desirable to close up during periods of low demand. The l5/o loss referred to by Clark is undoubtedly due to just that situation because the end of the comparative period used-1921 to 1939just happens to coincide with the last year of probably the most prolonged period of depressed demand in the industry's history.

"Although the small mill, like all small business and in fact business generally, suffered from the artificial controls of the war period and particularly from the inexcusable O.P.A. situation, anyone familiar with the lumber industry knorvs that the number of small mills has increased by leaps and bounds during the past few years. The statistical record of our own industry corroborates this. From 1935 to 1945, the proportion of the production from small mills, cutting less than 5 million annually has increased from ro% to 16%.

"From time to time during the past few months there has been considerable publicity which either directly or by inference gave the average citizen the impression that the industry was holding lumber in stock awaiting the demise of OPA or until higher ceiling prices were obtained. For example, a leading national weekly pictured a sawmill

, with a considerable volume of lumber on the yard. The caption indicated this lumber was being held off the market for higher prices and that such practice was quite general. To-one familiar with the lumber business, it was obvious this was a medium sized mill of the better type and the lumber shown was piled for air drying.

"Naturally the lumber industry is not responsible for this kind of misleading publicity but it has somehow been inspired and to the discredit of the industry. The facts in eur own case show that stocks have been reduced month after month to levels which in the past would have been considered impractical. On January I, 1946, total lumber stocks in the 'Western Pine region were the lowest in the history of the industry and the actual footage was just one-half of the volume in stock on January I, 194t. By April 1, 1946, stocks were further depleted and for the 6 months ending July 1st the region had shipped almost 300 million more than it produced.

" Jort one more illustration of what is happening should be sufficient. About six weeks ag'o, an OPA news release, which received wide distribution, announced that some 4O western lumber operators were charged with lumber price violations and that damage claims involving millions of dollars were involved. This piece of propaganda was presented in a manner to give the misinformed reader the impression that the lumber industry generally was dealing in black market operations and failing to observe ceiling prices. If you saw this item and the list of those charged with violations, you realize that no real factor of the Western Pine industry was involved. I had never even heard of most of those listed and I have a rather wide acquaintance in the industry.

- "As an industry we should recognize what is being done. W'e must utilize every opportunity to give the public the real facts. We must continue, as our industry has always dohe, to meet our obligation in the production of needed lumber. We must maintain our enviable record of shipping well manufactured, thoroughly seasoned, and honestly graded lumber. It. goes without saying that, within the lirnits of human ability, our industry will continue to comply with the intricate government controls as long as these handicaps to the sound functioning of our ."orro*i" system remain.t' '

Wholcsalc to Lumber Yards

Sash - Windows

Gasements r Doots, otc.

TACOIIA TUIIBTB $ATT$

714 W. Oly:npic Blvd.

tOS ANGEIES 15, CAIJF.

Telephone PRosped ll08

CAAGO and EAIL

REPRESEI,ITING

St. Pcul d Tccomc Lumber Co. Tccomc, WastL

Dicloncrn Lumber Compcrny TccomcL Wash.

Kcrlen-Dcrvis Compcrry Tccomc, Wash.

Vcncouver Plyurood & Veneer Co. Vcnrcouver, Wash.

Tccomcr Hcrbor Lumber d Timber Co. Tqcomcr, Wasb"

Clear Fir Sctes Co. Eugene, Ore.

CdDLunberCo. Roseburg, Ore.

I(/heeler Osgood Management Buys Door Company

and treasurer. Mr. MacArthur, 20 years with the company, becomes a vice president, as does Mr. Phillips, who has been with the company f.or 27 years. Mr. Smith, with 18 years service, becomes secretary, and Mr. Woodson is now president of the Nicolai Door Sales Company, San Francisco, a wholly-owned subsidiary of the Wheeler Osgood Company.

As the transaction was completed, Mr. Cruver predicted a great future for the Wheeler Osgood Company: "We are mass producing more and better products. Our nationwide sales and distribution organization is putting these products into the hands of builders.

"'We must manufacture millions of doors for the many millions of homes to be built in the next 10 years. We must rebuild jobbers inventories tg prewar levels.

"We have faith and confidence in the future of America and in the Wheeler Osgood Company-and the tremendous part it must play in building better products for better homes, for a better America."

In one of the Pacific Northwest's largest financial transactions in many years, management officials of the Wheeler Osgood Company, the world's largest manufacturer of doors, have purchased the company.

The sale puts ownership of the Wheeler Osgood Company in the hands of N. O. Cruver, W. M. MacArthur, Lionel J. Phillips, Paul M. Smith and L. J. Woodson, management officials of the company for many years.

Mr. Cruver,29 years with Wheeler Osgood and formerly vice president and general manager, becomes president

The Wheeler Osgood Company was founded in 1889 in Tacoma. Today, its plants and grounds cover over 2l acres, and its sales and distribution organization is nationwide. Over 700 people are employed in the Tacoma plant.

Ashlcnd Mill Sold

Sugar Pine Lumber Company, Ashland, Oregon, has sold the sawmill to New Jersey interests who will operate it under the name of Fir Planing & Milling Co. The capacity of the mill is 75,m feet in eight hours. The new owners plan to run two shifts.

has double strengrth crnd durability; is crdcrptcrble to timited spcce,'hcrs fireprool iron storaEe and metcrl-qsbestos iron.rest on board.

SEOUOIA MI[t & IUMBER CO.

Producers of Redwood - Douglas Fir White Oak - California Alder

Distribution Ycrd

EDGE\AIAIEN LINMER COMPANY

Foot of Huntington Ave., Ecst Bgyshore Boulevcrd

- Hobcnt Building San Frcrncisco 4

El(brook 3540

Attas Tumber Company

ED BAUER -- CARL PORTER

Hsrdwoods r friftwoods

Conqdiqn Alder - Btrch - Itogle o

9035 E. 15th STREET LOS ANGELES T1

Tclephonc PRorpect 7401

L. t. GARR & CO.

frrlifio,rlnia Sugor ond Po,n&rrorla Pitp

Scles Agcnts For

SACRAMENTO BOX & LUMBER CO.

Millr At Woodlcaf, Calif. '

SACRf,MENTO tOS ANGEI.ES

HOGA]I LUTIBER GO.

WHOI.ESAI.E A}TD IOBBING