-North-CD buth-(Uest lumber

lf N most markets-North, East, ll South, West-buyers car now .obtarn the four principal commercial woods bearing the LongBell trade-mark-Douglas Fir, Southern Pine, California White Pine and Southern Oak.

Douglas Fir is the newest addition to the lumber and timber products of this company. From new man.ufacturrng plants at Longview, Washrngton, LongBell Douglas Fir is being shipped tnto markets accustomed to using thrs wood.

On any of these products-on many other lumber products-

You Btry

the Long-Bell trade-mark signifies thorough care in manufacture, the skill resulting from nearly fifty years' experience as lumbermen, and the unusual prrde of an organization in the sound building value their products glve to home and industrial.construction.

Douglas FirLumber and Tim, bers; Southern Pine Lumber and Timbere; Creosoted Lumber, Timbere, Posts, Poles, Ties, Guard,Rail Posts, Piling; Southern Hatdwood Lumber and Timbers; Oak Flooring; California White Pine Lum. ber; Sash and Doore.

The above advertisement in full page form appears in the November 15 issue of the Saturday Evening Post, with a circulation of Z,TJ0,Ufi copies. Since Long-Bell trade-marked Douglas Fir is being shipped daily from the new lumber manufacturing plants at Longview, Washington, it can truly be said that North, East, South, West-You Can Know the Lumber You Buy.

(Continued from Prge 72) lum!9r, I 2 3 + 5 comnon gradcr.

'Thc' grcat controvcrly rar ovct rizca Whilc r conplctc schcdule of yard lunber rizcr ras adoptc4 thc follodng beric rizcs werc the bono of contcntion:

ThicLncrs of drcascd incl boardr atord 2" diacnrion end ridtbr of both. Tro randards of 1' thiclrcrs wcrc adoptc4 25/82' .d, 13/16". This ir not the idcd but it ir bcttcr tha! lir rtandardr aad actually moant an incrcasc ttom 3/a in 1O7o of all drcucd boedr. ft was placcd on trid with thc undcnaading tbat cith.r, or both thickncssce, night be adoptcd by arrociationr or individuels Therc thickncsscs did not apply to factory lumbcr.

"On 2" dinenrion thc dual rtan&rdr of l9l and l/1' lcrc adoptcd. The l/g" war found nrficicot by tc.g but rore building code dcoandedl t&,e lry't".

"On widttr )4" oE on 4 and 6" anil Y." ofr on 5, t0 .d 12' rar adopted vith littlc opporition

"Thc qucrtion of rhort lcqthr occurrd but thcrc rrr rot rufficient inforraation available and it rar lcft for furthct rcrcarch. It dcvclopcd that rctailcn wcrc rilling to acccpt t' and uD but fdt thcy ehould not be rcquircd to acccpt rhortcr lcngth& ferrdacturcrr pointcd out thet rhortcr lcagthr arc unavoidably producc4 that ae thcir outlct to tradc rar thru thc rctailcr and that ttc retailer should acccpt Urc obligation of rctlias ar a ncamre of forcst conservation through the inflated building pcriod in Southern Celtfoauie, with a profit from the year l;23 of. but l% on their srlc9.

"Standards werc finally acccptcd for a yca/e trial bcginrdng July l,1921. Thc first etcp had to bc by thc nanufactrrcre Tbc grcat burdcn of rcadjustmcnt fcll on thcm. Evcry arrociation rartcd thc machincry; ttcrc arc four in which California dcalcn lrc intctc.tcd. Thc \ilert Coart Lunbcrmcn'g Arsociation fu holding a aceting bday. Propoadr to change the namcr of grad6 aad iacrcarc rtandard thickness are bciag rubnittcd."

He stated that other yards had shoyrn profits from tbcir intelligent handling of cost finding, and thet a largc nuqber of dealers made a rule of establishing their prodts monthly, with a comparison to their cost sheets. lf,rny disappointments resulted at the end of the year, wheo inventory and balanee is taken but once a year. Years agq the lumber business was handled in an entirely different nenner, according to the speaker. Saw-milli had a cosd of about $5.00 per thousand feet, for nearly any kind of material that was ordered. Stock was cut from the logs, to order, but today the game is difrcrent, and requires a high specialization.

He urged lumber dealers to closely watch thcse important things, in their business.

Taxes Insurance

Bad accounts

Cartage costs

Sales costs

Administrative costs.

In the matter of taJcs, Mr. Hayward stated ttnt thc Income Tax is an expense, and should be treated as $rch. He spoke of the many city and county taxes that are not to be ignored when computing the cost of doing businese.

This session was

fft"?r#t"ffii.

F. Dean prescott, Valley Lumber Company, Fresno.

A Resolutions Committee was appointed and instructed to draft such resolutions as they deemed fit. The members were, M. A. Harris, Chairman; P. T. Burns, O. H. Barr, George R. Bentley and A. J. Stoner.

A telegram from Mr. George R. Huff, San Diego, was read. He expressed his regret at not being able to attend the conference, and urged the election of Mr. E. T. Bullen, on the Bbard.

Mr. Sam T. Hayward spoke on "Costs and Profits." He stated that a large majority of retail lumber dealers all through the country were ignorant on their costs, that they did not realize fullv the enonnous number of details to consider in the pro-per findings of costs, and as a rcsult, many dealers were not enjoying the legitimate profits of a lumberman. Between 1913 and 1917, the cost of conducting a lumber business had increased, 87/oo according to a report mentioned by Mr. Hayward. He mentioned three main reasons for this large increase, Higher Wages, Shorter Hours and Less Efficiency. He also particularly mentioned the extreme amount of Service that is now demanded by the ordinary buyer of building materials, and of the.practice in many communities of the contractor or home owner asking for bids on a bill, from any number of dealers. He stated that the lack of uniformity in patterns and sizes was a reason in a large measure for the increased cost of doing business. It was stated that in one city in California, it is possible to specify and buy from stock no less than 42 kinds of siding, that in Los Angeles pulley stile is carried in eight or t€n different widths, etc.

Mr. Hayward referred to figures given out by A. W. Shaw Company, asserting that the average cost in the United States, to conduct a retail lumber business, was 17.4470,. Of this, l2/o is spent for wag€s and salaries.

He asked and answered the question, "What is the Importancg of Knowing Costs ?i'

According to Mr. Hayward, one retail yard in Southern California has followed the practice of adding a straight lo/o to the yard cost of their materials, and with no cartage charges. They have figured that their cost of doing business is lo/o and that their profits will result from the number of orders for "extras" that are given on every job. In 1923 this concern showed a net profit of but l/o' on their gross sales, lower, in Mr. Hayward's opinion, than a lumberman should anticipate. Another yard given as an example, had done business in a slip-shod manner all

He mentioned the various kinds of insurance that i; necessary for the retailer. Fire, Compensation, Automobile, etc.

Bad Accounts and Merchandise Loss are trcmcndous factors, especially the loss on. matcrials in cargo ship ments.

Operative costs are deceptive. He cited one instence where a dealer had been figuring the cost of one handling cost at $1.50 per thousandl, but that a careful checlr by other dealers proved the minimum cost of this opcretion to be $4.28.

He stated that a survey in Los Angeles had discl'oscd that the average cost to Los Angeles dealers, to hrndc their lumber from Ships Tackle to the job was $12.50 per thousand. Wolfe & Company grve the average for the country at $124O, saying that yards have givea figurcs of from $lO.0O to $16.00.

The $l24o is divided, Yard costs ?4.OA; Delivery costs $2.rA; Administrative and selling costs $5.32.

Mn W. A. Blanchard followed Mr. Hayward, in the discussion on this important subject He stressed the importance of the dealers knowing exactly whet their various operations were costing, and the establishing of a schedule of prices that would safely atlow for the ups and downs of conditions, in the building 6eld. Hc stated that he had heard the question on what percentage of pro6t a dealer is entitled to, based on his investment, and was surprised at the variance of answers. One dealer had figurcd his legitimate returns should be 8.% per year, on his invested capital, and that other men had had many difrerent oPrnrons.

He stressed the necessity for the securing of a fair percentage of return, the close watching of expense of scll-' ing, and stated that in his opinion, a fair return of pro6t on sales, was lo/o. He concluded by sayrng, 'nVatch the lean years, know your costs, and make a fair pro6L"

Mr. Francis Boyd, Santa Barbara, tdked on the subject for a short time, explaining the systems used by his conpany, in determining their costs. He particularly mentioned the necessity of watching the periodically slow moving commodities and explained a system that was succressfully put into effect by them. On one slow moving line they established a prize system for their men, the regular salesmen in one division and the mill and yard men in another. Mr. Boyd is of the opinion that all employees att salesmen, or at least that they can be brought into action at times. They offered a first, second and third prize in each division, and were highly.gratified with the results; not only of the contest, but at the consistent increase that i, shorving month by rnonth, in this department. ,. Mr. Herbert Stone, of the Building Material Dealers Credit Association. Los Angeles, talked on "Credits and Collections."

The following points rvere stressed by Nlr. Stone, as prerequisites before granting credit to a contractor:

^

1" Is -he a practical contractor, that is, a builder or a nnanclef i

2. Does he operate on a strict contract or a cost plus basis ? If the latter, is there a limit rvhich he rnust keelr under ?

3. Is he able to obtain bond in surety company, or has he ever defaulted ? If so. rvhv ?

4. Are his bookkeeping records proper? Does he knorv costs? Does he shift funds from one iob to another?

5. Does he make contracts for extris. or cloes he allou' these to be settled bv "rvord of mouth ?"

6. In his financiai statement, does he shorv anticipatecl profits on jobs u'itl-rout an offsetting liability to complete said iob ?

7.' Are liens usually filecl against his rvork? If so, rvhv?

8. Does he pa1' rnaterial bills promptly?

9. Is he a member of the Associated General Contractors, 'lvhose standard calls for high etl-rics and good rvork ?

10. If a partnershil>, are the partners harmonious and happv ?

11. Does he protect himself lty compensation insurance and other insurance during the liie of the contract ?

12. Is he in the habit of giving security to the building material dealers to the detriment of otliers if things go wrong?

13. Are sub-contractors aclequatell. financecl, or if dealing with a sul>-contractor is gener-al contractor adequately financed ?

14. Nature of rvork done ? Is it ttarticularly hazardous ?

C. Il. Pinherton, Presidcnt

15. Will prices of drrring the life of the calcrrlations ?

and labor remain steady job or might fluctuations upset his

16. Is l.re a good collector?

17. Is the financing of the job not only arranged for but also available '"vhen the time cornes ?

18. Does he understand the Mechanic's Lien l-alr'?

19. Does he do good rvork?

20. Is he capabie of hanclling several jobs at the same time ?

21. Has he enough money to handle the jobs on hand?

In reply to a question, NIr. Stone stated that a contractor u'ith $10,000 cash capitai u'ould probably secure a like amount from material l.rouses and rvith this fund, could clo rvork upon the regular coutract basis, lvhich is payment as the rvork goes along, of approximately $50,000.

Mr. Coiin Harris, of the H. K. N{cCann Advertising Company, spoke very interestingly on "llotne Advertising," followed in the discussion by F. N. Gibbs, of Anal-reim. Mr. Gibbs told of the collective publicity campaign that is