LCA Votes to Retain Minimum Prices

(Continued

H. Schuette of the National-American Wholesale Lumber Association, and Alexander and Fred Ludwig of the National Retail Lumber Dealers Association, spoke at various times during the meeting from the point of view of their groups.

In one of his talks Fred Ludwig made the point that the breaking down of lumber prices at this time would lead to a long period of chaotic markets which he believed would have the effect of setting back the Federal Housing Administration's campaign for stimulation of modernization and the building of new houses. He said that once the market broke the public would naturally wait until it was sure that the bottom had been reached and stabilization again attained before it would risk investments in building.

Messrs. Carl Faust and P. P. Joyes, directors of the Hardwood Institute, spoke in opposition to the continuation of cost protection prices, and Frank Turner, another director, advocated prices. The latter remarked that his company had a price level of $44.58 per thousand in 1926. This dropped to $19.81 in 1933, but so far this year had averaged $n.n. He said that he thought no hardwood concern in the South could pay the wage schedule required by the Code and hold production down to two 7-hour days a week if hardwood prices were reduced one cent belorv where they are now.

J. D. McNary of the Cady Lumber Company, Cady, Arizona, made an eloquent appeal for the retention of cost protection prices, basing it on the experience of the village of Cady, Arizona, which he depicted as having been rescued from extreme deprivation and actual suffering by the restoration of prices. So great had been the recovery through the returns enjoyed by the lumber company and the municipality as a result of the living prices the Code from Page l7) had brought them, the town was now in a sound social and fiscal condition without a single family on the relief roll.

After the conclusion of the meeting Friday afternoon Mr. Maclntosh announced that the West Coast opponents of price control would continue their campaign to secure the suspension or elimination of Article IX-both at Washing- ton and at home. Messrs. Ransom, Nettleton, Jones, and Bunker rvere appointed as a committee to proceed at once to Washington to take the price subject up with NRA.

_ Ag,ong othe_r matters disposed of was the over-ruling of the National Control Committee proposed method of production allocations for the Red Cedar Shingle Division. The Authority voted to revert to the formula followed in allocations for the third quarter, but called upon the Shingle Bureau to sumbit a more suitable formula by December 1.

Compton Points to Cause of Price Crisis

It was voted to instruct each lumber division that it must exert every effort to balance production lvith consumptron.

In connection with the question of compliance and enforcement of cost protection prices, it was pointed out by some speakers that the precarious situation in regard to prices was partly due to the lack of sufficient limitation of production. Wilson Compton dwelt on the fact that surplus stock had increased approximately a billion feet since the Code was adopted and that this was due to a benevolent desire to serve the public interest and provide maximum employment. But he insisted that hereafter the industry must vigorously demand a balance between produc- tion and consumption.

An especial appeal was voted for voluntary compliance as follows:

RESOLVED that the Divisions and all persons therein be assured in terms that will admit of no misunderstanding that the ability of the industry to sustain the present or any other reasonable system of cost protection depends on the ability of the industry agencies and the Government acting together to enforce the Code against violators; and that it depends much more upon the remobilization within the rank and file of the industry of the spirit, the purpose and the determination to observe the Code, and encourage its observance by others.

Investigation was ordered of the situation alleged to exist in the Southern Hardwood region, where the mills are .largely of the log-buying type, complaint having been made that the logging employees are often paid less than established code wages..

Mark Fleishel of the Southern Cypress Division, was elected to the National Control Committee to succeed A. W. Clapp, St. Paul, resigned. The application of the Southern Rotary Cut group for representation on the Authority was denied on the ground that its operations were not extensive enough to justify such representation. The application of _the lumber commission salesmen for repre- sentation on the Authority was held up pending action on the question of their inclusion in the Lumber Code.

IVIembers of the Code Authority attending the meeting were: Tennant, Chairman; Fleishel, Bruce, Ford. Brin-gardner, Goodman, Walker, Coy, Hines. Brownell, C. R. Johnson, Fields, Green, Kurth, Berckes, Demarest, Irving, Murphy, Macartney, Lakin, Walter Johnson. Moore, Cui- tis, Tibbetts Jones, Bergstrom, Dunning, Schaack, Galbraith, Stocking, Austin, Sheppard, Ritter, Compton, Myers, Alexander, Force. Messrs. Dixon and Selfridge attended as representatives o.f the National Recovery Administration.