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National Retail Lumber Dealers Association Comments on SPAB Policy on Priorities

The Supply Priorities and Allocations Board on October 9 announced a new policy under which no public or private construction projects. which use critical materials juch as steel, copper, brass, btonze, aluminum, etc. may be started during the emergency unless these projects are 6ither necessary for direct national defense or are essential to the health and safety of the people.

_ Commenting on the new policy, the National Retail Lumber Dealers Association statei:

- Despite newspaper ,headlines, this statement of policy does not restrict, to the extent indicated in press sloriei, markets open to the retail lumber dealer. The initial presi headlines unfortunately have created the impression- that SPAB is placing a ban on all residential construction and all public or private construction which does not have the specific label of a defense project, or is not essential to the health and safety of the people.

We have conferred with the various housing agencies in Washington and with the office of SPAB in regJrd to the true intent of this release. The release was apparently a "bolt out of the blue" for every one of the housing agencies, including the Defense Housing Coordinator. None of them were aware of its proposed publication, and all are expected to issue statements clarifying their position in resp-ect to the SPAB statement. This has already been done-bv the Housing C-oordinator, and the FHR witt probably hive a statement for release soon.

We believe that the real purpose of the SPAB release is as follows: bracket houses; that is, houses costing $6,000 and more. The erection of large speculative building projects outside of defense areas which require a substantial amount of critical materials will be discouraged unless the need can be shown.

(l)_ To prevent the passage of "pork barrel,, legislation now before Congress providing for river and haibor improvements, flood control and power projects, which use a substantial amount of critical materials, particularly structural steel.

We have discussed this release with SPAB, and we believe the following in respect to the effects it will have on the markets of the retail lumber dealers:

(1) There is no specific ban on residential construction as such.

(a) Where dealers, builders or contractors have the materials, such construction can go ahead.

(b) Where there is a need for housing in defense or non-defense areas, such housing can go ahead, but priorities will not be granted for it if it uses an appreciable amount of critical materials. Dealers, builders and contractors must elim.inate all the metal possible.

They must substitute materials.

They must fight restrictive building codes.

They must fight for simplified plumbing such as is used in defense housing projects and recommended by the Bureau of Standards.

It is obvious no dealer or builder is going to be able to get priorities in order to do a speculative building job where definite need cannot be shown

(2) There is no ban on the type of private construction such as is engaged in by dealers in farm and rural areas. Farm production buildings, farm residences, and modernization jobs on the farm can go 4head, as it is readily admitted that this type of construction is necessary for the health and safety of the people. When priorities in this market are necessary they will probably be granted, but again the dealer-builder must substitute wherever oossible.

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(2) . To- discourage the planning, promotion and requests for priorities. in respect to the building of all unnecessary plblic or private projects, such as fagtories, warehousei, office buildings, etc. which use an appreciable amount of the critical materials.

(3) SPAB does not say and does not intend that structures of this type can not go ahead if, for instance, wood trusses can be substituted for steel trusses, wood beams, for steel beams, or other materials can be used in place of critical materials.

(4) The term "residential construction" is thrown into this release (and unfortunately was picked up and featured by the press) because, as we have all known, there is a definite intent to not encourage the construction of higher

(3) There is no ban on rehabilitation and repair activities and programs. The same measuring stick in regard to the use of critical materials will be applied here.

(4) Dealers in metropolitan areas who normally sell to industries and for commercial and industrial construction will definitely suffer under this program unless this construction is clearly shown to be absolutely necessary and unless such constiuction can proceed without the use of a large amount of the critical materials.

Regardless of the real intent of this release on the part of SPAB, the effect of the adverse publicity and the newlpaper headlines will be to curtail drastically all types of construction work and modernization and repair activities. We believe that our associations and individual dealers, through (Continued on Page 30) i

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