INSURANCE

With That Mutual Interest

Expert counsel to prevent firesSpecialized policies to protect against lossSubstantial dividends to protect against cost. 'tilVrite any of our companies.

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Mr. Bruce introduced Jack Seidman of the firm of Seidman and Seidman, certified public accountants, selected by the Authoritv to aid and supervise the work of the Committee. In outlining the Committee's work, Mr. Seidman first called attention to wages, with particular emphasis on the method of adjustment used to give effect to increases under the Code. Mention was next made of materials and supp.lies, overhead and administration and shipping expenses; in connection with the last he warned those present against including any outward freights although such freight is an element of cost to the purchaser. Selling expense provoked the caution that no advertising or trade promotion expenditures were to be included. Charges for insurance, taxes and interest were then explained and reference made to losses on trade accounts. The Committee was told to state the method and basis used in determining depreciation and depletion and to conform in such compilations to approved accounting practice. Mr. Seidman also directed that where plants or operators come under more than one division or subdivision, their figures should be segregated according to the operator's various activities.

He then took up the matter of the allocation of weighted average cost and instructed that groups set forth the method by which the cost was allocated to the several items of their product, including how determination was made of yield by grades or sizes, as well as a schedule of the standard species, grades and sizes. He mentioned the necessity of giving effect to relative market prices over a representative period and declared that separate figures should be shown for rough and dressed lumber if both were sold.

In the event of a decision by the Authority to limit cost protection to basic species, and standard grades, or sizes, Mr. Seidman directed that groups should state what other species, grades or sizes might be sold, and set forth the extent of such sales. He then mentioned the matter of substandard products and advised that if a differential had been established to set forth the basis and the reasons therefor. Groups were also advised to include a list of other groups and products whose cost protection features should be coordinated with their own.

The urgent need of completing the Committee's task at as early a date as possble was stressed by Victor A. Stibolt, J. W. Watzek, Jr., W. M. Ritter and others, yet there was no desire by any member of the Committee to risk fundamental error for the sake of expediency. Of fundamental concern was the consideration that established costprotection prices should be so applied as to avoid imposing hardships upon groups of operators because of either character of product or differences in freight to the principal consuming centers.

It will be noted from the accountant's instructions that the really gruelling work is being done in the subcommittees which comprise the various groups.

To date there have been four general sessions of the Committee as a whole. Except on one occasion, when he was relieved by Dr. Wilson Compton, Mr. Bruce presided. J. C. Nellis, from the statistical staff of the Lumber Code Authority, is acting as Secretary of the Committee and liaiqon officer for group coordination. Following is a list of members of the Committee and others attending, together with their divisional or subdivisional afifiliations:

E. A. Selfridge, NRA Assistant Deputy Administrator;

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