Lumber Code Authority Votes to Retain Minimum Prices

Chicago, Ill., Oct. 6.-After three days of tense deliberation the Lumber Code Authority voted yesterday afternoon 34 to 1 for the continuation of cost piotection prices. On a previous_motion the Authority rejeited D to 6 @nd then on a motion to make it unanimoui 34 to 1) a resolution to suspend price control. The affirmative-resolution is as follows:

WHEREAS, the Lumber Code Authority at a joint meeting_ of the_ several Division and Subdivision agencies, to which members of the industry also were invitdd, held in Chicago on October 3,4 and, 5: 1934, has received from all Divisions and Subdivisions of the industry detailed reports and recommendations which evidence that the Lumber and Timber Products Industries desire, by an overwhelming majority to continue the minimum piices established by tltg Administrator and that the opp6sing minority's opp-osition to such continuance has arisen principally from difficulties and delays encountered in secdting iompliance and in organizing for and establishing efiectfue and aggressive measures of enforcement, and has not aris,en from any substantial objection to the principle involved.

BE IT RESOLVED, that the Lumber Code Authority affirms its faith in the sincerity of the National Recovery Administration in its assurancei to the Lumber Code Authority that all provisions of the Code, including the price and trade practice provisions, will forthwith be vigorously enforced against all violators and affirms its fait[ in thl early success of the present campaign of the National Recovery Administration to enforce compliance, and

BE IT FURTHER RESOLVED, that the Lumber Code Authority rgaffirms its belief that the principle of minimum prices established by the Administrator musi be maintained during the present emergency and calls on all members of the industries to give their earnest support to the maintenance thereof. The Executive Officer, the stafi, and the several administrative agencies are directed to use every means to secur'e the fullest measure of voluntary compliance, and to lend every assistance within their powers to the efforts to enforce compliance against violatori of the National Recovery Administration.

"In taking this action the Lumber Code Authority chose between two hard roads," Executive Officer David T. Mason explained. "It turned away from the road marked 'Abandonment of price control.' It realized that such abandonment would lead promptly to tremendous losses to manufacturers, wholesalers and retailers; ruin to many establishments, .unemployment for many people, a period of chaos in the industry, and a serious set-back to the Federal Housing Administration campaign for modernization and the building of new homes. The Lumber Code Authority chose the road labeled 'full code maintenance including price control' in the earnest belief that it was serving the best interests of the most far flung of American manufacturing industries. The course chosen is admittedly a difficult one to follow but it involves less hardship- all around than the other. In making this choice we eipect to have vigorous support from NRA in dealing with code violations. We recognize, however, that primaiily the success of the code in serving the interests of the industry and the public.depends upon the voluntary compliance of tne vast majority of our industry who believe in, the code and who desire its success with all the benefits, particular and general, flowing therefrom ; this voluntary, cooperative compliance we confidently expect to secure."

The attendance at this meeting was extraordinary in the annals of the lumber and timbCr products industiies, for both size and intensity of interest. Nearlv 60G-manufacturers, wholesalers and retailers-registered and all sessions of the three days, Oct. 3-5, were crowded.

The first session was called to order Wednesdav morning by.Chairman John D. Tennant. Mr. Sheppar<i, Chairman of the National Control Committee, reviewed nego- tiations between the committee and the Recoverv Administration since September 10, particularly in regird to eftorts to_get approval of amendments to extend jurisdiction of the Code to embrace wholesalers and to dehne wholesale trade.

David T. Mason, executive of6cer, presented a detailed r-epo_rt.of important features of the pioblems confronting the industry today in the adaptation lnd administration ol the Code. Major Mason pointed out that at the meeting of the Authority in'June and July it was recognized that enforcement of the Code was absolutely necessary; that an am,endment to Article IX, making prices legally enforceable, was indispensable; that a wholesalers division under the Code was essential; and that voluntary cooperative compliance must be secured.

_ Mlpr Mason reported that the Lumber Code Authority had 67 active cases in the hands of the National Recovery Administration at Washington. Nineteen involve labor violations and 49 trade practice violations. Of the latter approximately 35 involve price provisions of the Code.

Encouragement From NIRB

In regard to the attitude of the Administration a timely telegram was received by the Lumber Code Authority from the new National Industrial Recovery Board, which gave great encouragement to the advocates of continuation of mlnrmum prtces.

Incident_ally-, it having been headlined in the Chicago papers that Mr. Richberg had said in effect that price contrbl was "on its way out," he voluntarily telegraphed Mr. Mason on Fridav. as follows:

"lJnderstand Chicago papers interpret my speech yesterday as indicating end of price fixing and pioduction iontrol which may be disturbing to lumber conference. Fact is I denied any suggestions of sweeping changes but state-d many business men were disillusioned conierning production control and price control benefits and that industrv by industry these problems would be worked out. Ti, which I added: There is no doubt of the necessity in some s_pecific instances of preventing destructive price cutting there is no doubt of the necessity sometimes of putting some controls on production. Most important of all I ex-plained that new Recovery Board was primarily charged with administration and recommendations of polity so that no one should be disturbed by correct or incorrect reports concerning my individual opinions."

_ Continuing his report the executive officer pointed out that reorganization of NRA had slowed up administrative functions. In conclusion, however, he deciared that NRA was not going to collapse, but was being reorganized in order to clear up the rather generally re-ognizEd chaotic conditions that had existed and to bring about vigorous enforcement.

Four Alternatives

Before concluding, Mr. Mason said that while the meeting had been called for a specific purpose, no hard and fast program had been planned, yet, the National Control Committee urged that the Divisions and Subdivisions before formulating their recommendations to the Lumber Code Authority consider the many alternatives, of which as examples four were named as follows:

1. Abandon the Code, as a defeated army-routed.

2. Make no retreat but enforce the Code as it now stands.

3. Eliminate wholesale discounts but in other respects keep the Code as it is.

4. Eliminate Article IX, abandon cost protection prices and maintain the remainder of the Code.

Wednesday afternoon, following the general meeting, the various Divisions and Subdivisions met and canvassed their respective stands on the vexed question of the maintenance of cost protection minimum prices. The most contention and difference of opinion developed in the West Coast Division and the Appalachian Southern Hardwood Subdivision. In the former no vote was taken in view of the fact that the trustees of the West Coast Lumbermen's Association had voted in favor of cost protection prices at a meeting in Portland the previous week. But it was also taken into consideration that the industry as a whole in that region r,r'as sharply divided on the subject of prices. Consequently, it was decided to let each of the two groups present their positions to the Code Authority in open session, without prejudice. In the case of the Appalachian and Southern Subdivision the vote was 7 to 6 in favor of price control, but the Hardwood Coordinating Committee was able to report that all Subdivisions had voted for the retention of cost protection prices.

In the general meeting Friday morning spokesmen for all Divisions and Subdivisions stated the positions of their respective bodies. These were overwhelmingly in the affirmative, but some indicated that their position was determined by the hope and belief that there would be more compliance and better enforcement.

The Southern Pine Division urged that wholesalers should be made subject to the Lumber Code and their function definitely defined, as a necessary condition of the maintenance of cost protection prices. Should it not be possible to include the wholesalers it was recommended that all wholesale discounts be eliminated. The opinion was also expressed that a clear cut statement of policy regarding prices should be obtained from NRA and that present prices should be continued until NRA terminates, June 16, 1935. It was also insisted that NRA must place a large force behind the enforcement of the Lumber Code.

Among those speaking for the West Coast Division in opposition to price control were Messrs. Frank Ransom, C. H. Krienbaum, A. W. Clapp, A. E. Maclntosh, Morris Jones, G. E. Karlen, M. A. \Myman, and Hugh Brady. Bloedel Champions Protected Prices

The West Coast men speaking for the upholding of prices were J. H. Bloedel, Hans Bratlie, C. D. Johnson, and Major E. G. Griggs. Mr. Bloedel declared that the Lumber Code offered the first opportunity for thorough-going cooperation in the lumber industry. He pointed out that the five year average price for his company's lumber from 1925 to 1930 was $21.00 and that in 1932 and the first part of 1933 the price dropped to $1O.8O. The average wage in the mills 'and woodi^on the West Coast today iJ $4.95 per day, which is only 5/o less than at the peak of the prosperity.period, yet the present price of his lumber is $17.@ and this price tannot go lowei u'ithout demoralization in the industry. He felt there is no reason to believe that if cost protection is removed prices would not drop to the disastrous levels of. 1932. Mi. Bloedel pointed to the increase in mills registered with the West Coast Association from approximately 350 at the beginning of the Code to about 550 at the present time as evidence that the Code is not discriminating against small mills. He stated' further, that the Code hat risulted in changing the position of certain products such as shingles, doors, plywood and millwork from that of by-producis, so that now those items carry their fair share of the costs of operation and are selling at a much better price than in pre-code days.

Mr. Bratlie, representing manufacturers of Western Red Cedar Lumber, stated while there may be some question about workability of cost protection prices there is none about what will happen in the lumber industry thir winter if the protection of a minimum price is removed. The immediafe resultant drop in prices will bring hand to mouth purchases as buyers refrain from building up- stocks in a time of falling prices. Many mills will close within a short time, gradually reducing employment and confidence in the Code will be shaken to such an extent that progress made in the past year will be largely swept away. Until now no fair test has been made under enforcement conditions. Neither the Recovery Act nor the Code is designed to keep alive the inefficient. High costs of enforcement rvill dihinish rapidly as convictions are obtained.

Col. Greeley, Secretary and Manager of the West Coast Lumbermen'iAssociation, presented petitions from several thousand employes of West Coast lumber companies urging that cost protection prices be retained.

Although the Wesl Coast Division as a whole did not officially take a position before the Lumber Code Authority, the tiustees of the Pacific Northwest Loggers Association stated that in their opinion cost protection prices on lumber should be immediately discontinued.

On Thursday, as well as at the open meeting Friday' there were numerous speeches pro and con on the matter of prices and regarding other matters, particularly the wholesaler problem.

Concerning the latter, Major Mason laid before the meeting a proposal favored by NRA for an ordler designed to stibiliie price quotations by wholesalers. The gist of this proposal is that wholesalers shall bind themselves by conlacf to manufacturers'to observe established prices under penalty of the imposition of liquidation damages to the extent of 25% of. such established prices, but not exceeding $500 in any single transaction. Representatives of the wholesalers, including W. W. Shupner, Secretary and W.

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Just Her Shade

"Liza," said the young white woman to her rather new colored maid, "where is that tar soap I sent you to the drugstore for yesterday?"

"Mah goodness, Missee !" exclaimed the surprised colored girl. "\ll/huts a blond lady like you gwine do wid dat tah soap? Ah thought you had me get hit fo mah pussonal use."

Friends

Ain't it fine when things are going Topsy-turvy and askew, To discover someone showing Good old-fashioned faith in you?

Ain't it good when life seems dreary, And your hopes about to end Just to feel the handclasp cheery Of a fine old loyal friend?

Gosh ! one fellow to another Means a lot from day to day, Seems we're living for each other In a friendly sort of way.

When a smile or cheerful greetin' Means so much to fellows sore, Seems we ought to keep repeatin' Smiles and praises more and more.

-Eddie Guest.

NOT FREE SURELY?

Rastus-"Mah poppa is de mos' high Gran' Panjandrum of de Lodge o'de Mistick Nights."

Hambone-"Lawdy, me, boy ! Whut do it cost to see him?"

NOT COME_WENT

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ttHow come?"

"Ife done lef de chicking coop do'.open and dem chickings all got out."

"'Well, they'll come home to roost, won't they?"

"COME home? Whut you mean, fool? Dem chicHngs WENT home."

Arrogant Man

Man is arrogant in proportion to his ignorance. Man's natural tendency is toward egotism. Man, in his infancy of knowledge, thinks that all creation was formed for him. For several ages he saw, in the countless worlds that sparkle through space like the bubbles of a shoreless ocean, only the petty candles, the household torches, that Providence had been pleased to light for no other purpose but to make the night more agreeable to man.

Astronomy has corrected this delusion of human vanity, and man now reluctantly confesses that the stars are worlds, larger and more glorious than his own-that the earth on which he crawls is a scarcely visible speck on the vast chart of creation.

But in the small as in the vast, God is equally profuse of life. The traveler looks upon the tree and fancies its boughs were formed for his shelter in the summer sun, or his fuel in the winter frosts. But in each leaf of these boughs the Creator has madb a world-it swarms with innumerable races. Each drop of water in a moat is more populous than a kingdom is of men. Ever5rwhere then in this immense design, science brings new life to light. Life is the one pervading principle, and even the thing that seems to die and putrify, but engenders new life, and changes to fresh forms of matter.-Bulwer Lytton.

She Might

"Could I interest you in a one-piece bathing suit?" asked the goodJooking blond saleslady of the gentleman shopper. "I really couldn't say," replied the gentleman shopper, rather blase; "you see f've never seen you in a one-piece bathing suit."