Vagabond Editorials

Bv Jock Disnne

They say in' Haiti-"The heart has no wrinkles." That's becausc there is no NRA Codc for hearts. +*t tff*

The ability to laugh at everythiug that developed has saved the heart and soul of the American nation for four years. Everything thet comes up is made the butt of stories, "gags," and wise-cracks galore.

But the NRA breaks all possible records as subject for futrny efrorts of all sorts. The nation mects on thc corners these days to tell the latest one, I'vc heard five hundred already, and the tidal wave is rising. *** rt rt tt rl{.*

"Nuthin' new 'bout dis NRA to me," said grey haired Uncle Mose; "Ah bin havin' it fo' twenty yeahs-Neuralgia -Rheumatis6-91' Asthma."

It isn't always easy to "laugh it off" though. A friend of mine, a happy, optimistic fellow, came back from Washington the other day. He had been Code-ing. He looked ten years older. I said-"How was it?" He never even grinned. "Therd ain't no God," he said, and walked off.

When you've owned and run your own business all your life it isn't easy to have some stranger tell you how you've got to do it "from nolt on."

**tl.

I met another sawmill rnan. "What does NRA mean to you?" I asked him. "Well, if I don't sell some lumber soon it will mean 'Never Run Again'," he said with a grin.

Editorial writers from Washington say that now that the brilliant Dudley Cates is gone from NRA, only the laborites Richberg and Wolman seem to have the ear of General Johnson. So, to paraphrase the famous old Bostonian rhyme-

Here's the nest of the Royal Blue Eagle

Where industry bends to the formative rod

Where Richberg and Wolman alone speak to Johnson And Johnson speaks only to Roosevelt and God.

**rt

Speaking of Dudley Cates-and the nation has been speaking rather pointedly of Dudley Cates of late-he- is an old friend of General Johnson, a very practical, very fair, very understanding qln. But he didn't agree with Johnron about the proper interpretation of the labor provi- sion of thc NRA. He tdked back, they said, which isn't allowed. So Cates isn't there any more. tttt*

By the way, why not have a graded scale of Blue Eagles, instead of just one for everyone. Give the Blue Eagle to those who live up to their Code. But for those who do more for labor than just what the Code calls for-who perform a greater service in the direction airned at by the Recovery Act-why not give some sign of distinction, guch as a Blue Eagle with gold wings?

*rN* tf rf tl

Professional economists are bursting into print every day now telling us that this is only the beginning; that the philosophies and formulas of the Recovery Program will be permanently implanted in industry. Wrong. All wrong. Industry has its shoulder to the wheel and is going to move Heaven and Hell to help President Roosevelt put over his NRA. But the day when Government goes back to running Government, and business tahes back the operation of its own affairs, is the day of days industry is looking forward to. And, he who thinks otherwise is either blind or stupid.

One of the great threats to the success of the NRA program is lack of credit. If a business is just barely existing (as most businesses have been), is down to its last dollar and with its lines of credit entirely exhausted (as the majority of businesses are), and along comes the Government and says "reduce your working hours and increase your wage scale," which means of course "increase your cost o,f doing business and pay cash for the increase,"-q;5ere is the money to corne from? trft

President Roosevelt himself and two of his financial lieutenants told the American bankers in national convention assembled in Chicago the other day that the NRA cannot hope to succeed without a tremendous expansion of credit to American people and American business. The bankers were told that hoarders of credit and hoarders of cash are not much difrerent. Everyone, they said, who is entitled to credit must have it, "the butcher, the baker, the candlestick maker." And, they were told that if the banks will not furnish it, the Government must.

It was made very clear to the bankers that the recent utterances of many bankers in the face of Government criticism to the effect that there is plenty of money available to people of sound credit, hasn't fooled anyone. Loaning a thousand dollars on a note with two thousand dollars worth of Government bonds attached, isn't extending credit. That's running a pawn shop. The shadow of infation was raised before the bankers as a sort of threat to loan dollars while dollars still have a high value. ***

Consider the situation in which the sawmill man finds himself. I have in mind what I consider an average case in Southern Pine manufacture. This concern has been in desperate financial straits for the past two years. They have strained their credit and exhausted their cash, and they meet with a small sized panic every time their notes come due. But they have been getting by through stout hearts and wise heads. They have weathered the storm thus far.

The new Code gave them reduced hours, and increased wages. It increased their cost tremendously. In the first place that means that they have to have the cash to meet the increased cost, until they can sell and collect for their lumber. When a mill manufactures lumber it really buys and pays for that lumber, and holds the position of an investor in that stock until it can sell and collect the money for it. ***

This concern f am thinking of has to find twenty or more thousands of dollars additional this month if it wants to run its mills on the new scale. And, then it has the big question mark about selling the lumber and getting the money. WILL the public buy lumber at the advanced prices necessitated by the Code? CAN the public do so? Those are the question this firm-and all other firms in such circumsf3nss5-s1e asking right now.

*rF{.

The next month is going to be a very important one to the lumber industry; perhaps the most dramatic since the depression started. The industry has taken up the NRA effort wholeheartedly. Everyone in the industry will do his best to rnake and market lumber as efficiently as possible, and keep men employed to the nth degree. But everyihing hinges on the buying power of the public. Will the public find money enough to buy lumber at the new cost level? Will there be sufficient incentive to invest the newly created buying power in building materials?

,N< {. *

Keeping employment at high tide will depend entirely on the demand for lumber at the new prices. The industry is not financed to produce lumber at present costs, unless it can be promptly sold and collected for. Employment at the sawmills had reached a high levil-compared with the last five years-on August first, 1933. To keep it there will require a very active lumber market. The entire industry is watching developments with anxious eyes.

" On" Year's Plcasure"

Find attached my check-amount $2.0G-in payment of "One Year's Pleasure." (Subscription). Fred L. Jones, El Verano, California, (Sonoma County).

State Retailers' Code Hcaring Douglas Fir Mills on 30-Hour Held in San Francisco Basis For September

There was a large attendance of retail lumbermen at the hearing on the Code of Fair Competition, recently {iled by California retailers, which was held at the State Building, San Francisco, September 7.

Adolf Michel, Deputy Commissioner of Corporations, presided. Seated at the head table were the members of the Code committee appointed by the California Retail Lumbermen's Association consisting of Dee Essley, manager of the Association; F. L. Dettman, Allen & Dettman Lumber Co., San Francisco, and F. Dean Prescott, Valley Lumber Co., Fresno.

Dee Essley read the entire code section by section. The majority of the sections were approved, but protests were filed against some sections by Kenneth Smith, representing the Lumber and Allied Products Institute, Los Angeles, and by Orrie Hamilton for the Lumbermen's Service Association, San Diego.

It was stated that 73 per cent of the retail lumber industry of California had signed approval of the Code.

There was ,considerable discussion as to whether other building materials would come under the Code, and it was stated that this would be determined by the National Codes for those materials.

Harry A. Lake, State Association president, and Earl Johnson, Pasadena and E' T. Robie, Auburn, vice presidents were in attendance, and directors of the Association present included the following: Ross Blanchard, North Hollywood; Francis Boyd, Santa Barbara; Phil Curran, Pomona; Paul Hallingby, Los Angeles ; O. W' Hamilton, San Diego; Chas. G. Bird, Stockton; Ira E. Brink, Chico; Mead Clark, Santa Rosa; Ray Clotfelter, Visalia; Frank Duttle, Oakland; Ralph Duncan, Merced; W. F. Hayward, Santa Clara; Paul M. P. Merner, Palo Alto; J. H. Shepard, Sacramento, and B. J. Boorman, Oakland. Also in attendance were the majority of the Association secretaries.

Authority Oct. 4

The National Control Committee, executive body of Lurnber Code Authority, Inc., (formerly the Emergency National Committee) at its meeting August 21, decided upon Wednesday, October 4, f.or the next meeting of members of Lumber Code Authority. This will be the first meeting of the Authority since the adoption of the Lumber and timber products code which was signed by the President, on August 19. It will be held in Washington, D. C.

Business before the meeting will in'clude su'ch further action as is necessary to put the lumber code into effect and will cover the questions of cost prote'ction, trade practices, production control and forestry.

The meeting will also consider the matter of inclusion of various industry groups not now under the code, as of some of the wood-using industries.

Ta'coma, (Wash.), Aug. 3O.-Lumber mills in the Pacific Northwest Douglas fir district will work a maximum of thirty hours a week for the month beginning September 4, the first period of NRA production allocation, it was announced today by the West Coast Lumbermen's Association.

The announ'cement was made by Col. W. B. Greeley, secretary-manager of the West Coast Association, r'vho said:

"Trustees of the West Coast Association, acting under authority of the lumber code, and under an allocation from Washington, of 45O000,000 board feet of lumber production for the Douglas fir district in September, have established 120 hours, or at the rate of thirty hours per week, as the maximum working time for any mill in the area for a period of four weeks beginning September 4'

"The efiest of this order will be a substantial reduction in the volume of lumber to be produced in September compared with the amount made in August'"

Production Control in '\(lestern Pine Division Effective Sept. 1

Portland, August 31.-The production control clause of the Lumber Code offi,cially became effective September lst in the Western Pine Division upon announcement by David T. Mason, manager of the Western Pine Association that the Association's Board of Directors have allocated to each concern who wishes to operate a maximum of. 525 hours of sawmill operation for September, October and November. This action was taken following allocation to the Divisiou by the LumberCode Authority of a production quota of 750,000,000 feet for the three month's period beginning September lst.

"This allotment of hours is equivalent to approximately 40 hours per week for 13 weeks; however, in this allotment of total hours there is no limitation upon any concern as to the distribution of its plant operation during the three month period so long as the 525 hours is not exceeded; bttt it should be fully understood that this allotment of sawmill hours in no way afiects the rules relating to maximum hours for employees," Mason said'

"Notifi,cati,on will be given if a change is made by the Code Authority or if it becomes evident later that the total hours may safely be increased or that a decrease is necessary," aocording to the announcement.

September Production Quotas Set for Redwood Mills

At a meeting of the California Redwood Association held September 1 produ'ction quotas for September were allocated to all Redwood mills. A total produ'ction of 30,000,000 feet was set for the industry for the month of September.