South ern Pine Ceilins Prices Raised as Result of Industry Protest

New ceiling prices for Southern Pine, amending Price Schedule No. 19, have been issued by the Office of Price Administration, effective September 5. The new schedule raises prices above those fixed in the original order, and resulted from a conference between Peter A. Stone, Price Executive, with a committee of Southern Pine lumbermen, held in New Orleans, on Sunday, August 31.

This conference followed a mass meeting of the industry in New Orleans the preceding day, Saturday, August 30, attended by the largest crowd of Southern Pine manufacturers of any similar meeting in its history. Mr. Stone, as representative of Leon Henderson, Price Administrator, was on hand, and listened to protests voiced by manufacturers, large and small, from every producing state in the territory, to the effect that Price Schedule No. 19, as originally fixed, would destroy their business and seriously damage the industry.

Facts and figures were presented in support of a modification of the prices, and the following day, the special committee met with Mr. Stone to work out recommendations for changes.

"The general effect of the revisions" said Mr. Henderson, in his statement accompanying the new schedule, "is to raise ceiling prices so that thousands of small lumber mills throughout the Southern Pine area will be able to continue in profitable operation." Mr. Henderson further pointed out that the original schedule made no special allowance for air dried lumber, which is the kind apparently being sold by the small mills.

Maximum prices in the original schedule were based upon air dried lumber in finished form. By the amendrnent, ceiling prices are based on "rough green" lumber, and additional charges are allowed to be made for air drying or kiln drying, surfacing, grooving, etc. One grade known as "finish," is eliminated as unimportant.

Several refinements of definitions also are contained in the amended schedule, reflecting trade usage or practices. For example, Longleaf Pine is further defined so as to make it clear that only the coarse-grain variety is covered by the schedule. The definition of a "mill" is re-stated so as to exempt from the price schedule the large number of lumber retailers in the South who operate planing and similar mills as adjuncts to their retail business. A "retail sale," according to the amendment, means a sale to a consumer or contractor for less-than-carload quantity. Mixed car shipments are defined' and an explanation of mixed truck shipments is added.

To cover the extra services and cost involved, an addi(Continued on Page 27)