San Francisco Lumberman Reviews Conditions

A folk given at the onnuol dinner of the Clqss of 1896,_ University -of Cotifornis, ot fhe Bohemion Club, Son Froncisco, November 23, 1945' by C. H. White, Whire Brolhers, Son Frcrncisco.

As yott know, I am in the hardwood lumber businesshave been for the last fortY years. We l-rardwood dealers tusually consider that we are rather the aristocrats of the Iumber business, handling as rr'e clo the liner woods-Maiogany, Oak, Walnut, Ash, I lickory, etc. I have alwavs thought very highly of my business; holvever, I was taken a-back when traveling in Scotland soffIe years ago and sarv a sign, which immediately intrigued me.It was a man rvith my own name in the lumber business. When I came nearer I saw that it said, "John White-Lumber and Manure." I thought, "Is this how the lumber business is taken in Great Britain?" -'What a terrible mixture." I found upon inquiring, horv.ever. that in Great Britain lumber means the same as junk and a lumber business is a junk business-maybe they are right ! What we in America call a lumber yard is called a timber yard in England.

During the war lumber was used very extensively, and the increased demand taxed the ability of the country to produce it. When the government put on its W.P.B., and its O.P.A. restrictions, it made business very much more difficult to do, but on the whole they probably did a goocl job. More lumber was produced and used in this country than ever before, and lumber was a mighty factor in our war effort. Now, since the war is over, we all wc,nder what has happened to all the lumber. Government buying has practically ceased and yet rve cannot buy any lumber. The demand for it is great and we can sell all we can buy, but we cannot buy very much. In this, we are no worse off than everyone else. Apparently no goods are available in any line ; try to buy shirts arrd socks. Asl< returning servicemen how they 21g faring in trying to buy civilian suits-try to find an apartment or a house for returned married veterans.

As a matter of fact, in everything we trv to do something is holding ir-rdustry back--holding back manufacturing. Strikes are one thing-these strikes, it seems to me, and even trying to take the standpoint of labor, are wrongly timed and bad strategy. The feverish activity during the war, in industry and in every other phase of our lives, coming to an end suddenly has given a feeling of letdown. Everyone seems to be tired-even many workmen welcome the layoffs due to unemployment on account of cessation of government orders. ft seems to me that in- dustry and management is also tired and in manv cases welcome the shutdowns caused by strikes. This feeling of letdown and this period of strikes, which I believe will be rvorse before they get better, seem to me to be simply the aftermath of the stormy years of the world' We canr.rot expect peace and sweetness and light to immediately follou, the $torrn an<l strife and stress of war. After a typhoon it takes some time for the seas to become calm again' I believe that this turmoil in business and industry and in everything rve do rvill pass, as everything passes in this life, ancl that, as in the years succeeding the last World War, we will shortly have a period of boom-time, of pros1>erity for all.

I think that labor will achieve zr raise of about 10 to 15 per cent, not the 30 per cent they are demanding, and in order to give this advance the O.P.A. will have .to let up on price controls. Manufacturers and merchants will have to be allowed advances in prices if higher wages. are to be paid. Personally I don't go along with the government's idea of control and regimentation of business-I am a believer of "laissez faire." I think the law of supply and deman<l will have its way no matter what governments do about it. I also believe that when an individual, a group, a nation, or a world goes on a rampage and commits crimes, they are bound to suffer for it. What is it that the Bible says? "Be sure your sins will find you out."

I think the world has to sufier something for the war which rve have just been through. It cannot escape it-the sooner we do our penance and have it over with the better Let's take our medicine quickly and have it over with in six months or so.

As an example, our governrnent is loaded up with surplus goods left over from the war. The government has a surplus of everything that anyone would want to buy-evgrything from consumers' goods to durable goods and real estate. The army and navy depots are bulging with things that the public can use, but much of the stuff is spoiling because of the red tape and delay in disposing of it. They don't seem to be able to make up their minds. The disposal of surplus material is becoming nearly'a national scandal ! Let's throw it open and be done rvith it soonef.

In the case of lumber, there are stock piles and warehouses all over the country with millions and millions and millions of feet of lumber rvhich is spoiling due to lack of care in putting it into these stock piles and warehouses. You probably know that lumber is green when it comes from the saw and in order to be taken care of it must be stacked on lath or sticks, so that the air can pour through and the lumber dry. A stock pile in Oakland is a very good example-millions of feet have been piled solidly

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Reviews Conditiont

(Continued from Page 16) with no sticks between the boards so that it has rotted and spoiled toa large degree. I know of one case in Indiana a million feet of the finest kind of heavy oak was piled this way. Now it is being offered for sale, but there are no bidders because an actual examination of it shows it has been spoiled by careless handling. Here is a case where governmental indecision, procrastination and incompetency have caused great losses and the spoiling of maierial for u,hich the public is crying and would buy' If this material hacl been properly taken care of and was not subject to governmental restrictions and red tape, in other words, if the government would let the regular channels of business get hold of it. it would go into use be{ore the spoilage is irreparable.

Another thing that I think is holding back goods and business is the fact that the excess profit tax will be oft after the first of the year. Many business men see no point in making any more money from now to the end of the year. \Mhenever they are in the excess profits bracket, Uncle Sam will take out approximately 95 per cent on the excess and California will take out approximately 4 per cent, making approxim.ately 99 per cent taken away in taxes on anything over a normal profit sold this year. Next year it will be different. Almost every supplier is willing to promise goods next Year.

I never heard any kicks by business on taxes during the war, but business is being attacked by union leaders and demagogues all over the country for having made excessive profits out of the war. Under the tax laws we have had so far, excessive profits were impossible and business men would like, at least, to be placed in the right light on this point.

These few random remarks may sound pessimistic, but I don't mean them that way ! The present troubled waters will in time be stilled and, as after the first World War, I feel we will have a long period of prosperity and be happy again.

Moves To New Loccrtion

Matheny Sash & Door Co., well known Oakland concern, has moved its office, factory and warehouses to its new location, 1429 105th Avenue, Oakland 3, Calif.

The Man Who PaYs An APPreciotion

The will to pay is hereditary, just as much as red hair or buck teeth. It is a common fallacy that a man pays debts because he has money. This is not neclssarily true. On the contrary, the matter of paying has only a remote relation to money'

On the one hand is your friend with abundance of monev, rvho cannot be cajoled, threatened, beaten or gassed into paying the most ordinary debt.

On the other hand, the poor fellow without a visible dollar-you know him-Who is Johnny on the Invoice. l\foney has little to do with either case. It is the breed of the man.

The man who pays is the man who thinks 'in advance. He nevei flashes a roll; he does not drive a car and carry a mortgage at the same time; he does not hang up the butcher, or the grocer for food that he cannot afford to eat; he never lights the fire without wondering where the coal man gets ofi- He never throws the Bull, nor pitches the Bluff, nor gives notes, nor writes checks dated tomorrow, but when the bills come in. he is there with the coin of the realm, God bless him.

Sometimes he feels sore at the rest of us. He does not see that he gets on any better than the fellow .who skins as he goes. Still he goes on and on, pays and pays, simply because it is in the breed'

And after all, the World does think a lot of his breed. The man who pays is the bulwark of Society. He is the balance wheel of civilization. He is the mainspring of commerce. Business blesses him and he has honor among men for all time.

Opercting Two Shifts

Deschutes Lumber Co', Anderson, Calif., is operating two shifts, and is cutting at the rate of about 35,000,000 feet annually. The company expects to put in dry kilns next year.

R. G. Watts is general manager.

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