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Higgins operates its own speciallydesigned dry kilns to assure proper seasoning.And acomplete millto run standard mouldings or special sizes and patterns.

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MOST lumbermen can agree on Ur one thing about 1972. At best. it was a very difficult year.

Some regarded as old-timers are unable to cite any time within the last fifty years to compare with the present. The present was a year in which some prices doubled and tripled. Stock became nearly impossible to get at any price.

Was 1972 the year that lumbermen had looked towards since 1960? Some thought so. The housing boom that failed to materialize all throueh the 1960s finally happened. But when it did, profits were limited by government fiat. What had happened to spoil such a year?

There is no single factor that can explain what happened. Obviously, housing demand was at an all-time peak. Recent figures indicate that housing starts will approximate 2,350,000 for all oL 1972. Those starts would represent about a one-third increase over the best year of the I960s. In addition, as the economy of the country gathered momentum, indus. trial buying perked up as well.

On the supply side of the equation, there were many, many things that hampered a smooth flow of lumber to traditional markets. Among these were log exports toJapan, activities of the Sierra Club, as well as price and profit controls. Log prices were not frozen, nor were profits frozen on any product sold for export. Mills found themselves with price ceilings that they were unable to live with. In addition, the Forest Service marketed less than 75Vo oL the timber that it is permitted to cut. Moreover, a Canadian lumber strike hampered buyers.

Log Exports

Log exports are expected to reach an all.time high. Although exporrs to Japan declined during 1971, the Japanese became active buyers in 1972. In addition, the Nixon administration concluded trade negotiations that permitted the Japanese to purchase an additional 750 million feet of logs from this country. Thus, it is expected that exports will soar to 3.25 billion feet this year, or nearly 30/o above recent high figures. Some have pointed out that if the U.S. were to curtail or eliminate log expo,rts to Japan, that these same purchases would be made from Canada, thus directly reducing the amount of lumber that Canadians would be able to ship to Eastern markets in the U.S. Thus, it appears that this country is able to get a better dollar return by selling raw logs to Japan than fin. ished lumber to domestic markets.

During the year, the Sierra Club was extremely active in securing in. junctions that effectively restrained logging in various parts of the West. These injunctions were successful in preventing nearly 2.5 billion feet of timber from being cut. However, these injunctions were thrown out of court in San Francisco durine December. The club plans additionaisuits.

Government Controls

Government price and profit con. trols were another disturbine factor. Various government officia'is have spoken repeatedly about the distor. tions that can be caused in traditional market patterns. In no place was this more evident than the forest products industry.

Initially, the Price Commission placed no profit restrictions on any products sold for export. Prices in the world market were allowed to fluctuate freely in accordance with supply and demand considerations. Thus, producers were able to sell all they wanted into Canada or export markets without incurring penalties from the feds. Accordingly, some lumber that would normally find its way into domestic channels was exported.

In addition, when prices were frozen, some mills found themselves faced with low ceilings on some items and high ceilings on other items. The result was that mills stopped producing items with low ceilings, such as pine boards, and started producing other items with high ceilings, perhaps pine dimension or 5/4 boards. For example, it became possible to bluy 5/4 x l2t' pine commons, which replaced I x 12 pine boards.