THtr ARIZONA SGtrNtr

By FRANK DA executive vice president

The association's housing action committee, with chairman Dean Drake and our association attorney, has completed its work in helping to draft state legislation to aid the housing industry.

The following four bills are the result of the committee's work.

( I ) A Bill Relating to Public Finance: Prescribing investment of Public Funds of the State and Boards, Commissions, Districts and political subdivisions of the State. Authorizing investment in first mortgage securities on Arizona Real Estate and amending section 38-7 57.

PURPOSE - This bill will allow funds such as state retirement funds to be invested in savings and loan banks, which means more money will be available for the housing industry.

(2) A Bill. Relating to Public Finances, establishing the Arizona Home Owners Loan Corporation, authorizing borrowing money and issuance of Revenue Bonds providing for operations, amending Title 35, Chapter 3, Arizona statute by adding Article 2.1: and declaring the urgency thereof to take effect imfrediarcfy.

PURPOSE - The principal purpose of this act is to establish a corporation to perform the essential governmental function of providing funds to help finance the purchase of housing in Arizona, either new or existing, and to provide employment.

(3) A Bill. Relating to Taxation, providing tax exemption of interest earnings on deposit in financial institutions and amending Section 43112. Arizona Revised Statutes.

Harold Hoffman, who has taken over as general manager of retail operations for Affiliated Building Materials, Missoula. Harold succeeds Bob Payne, an MBMDA past president, who says he is defecting to real estate activities.

Don Lefevre has been named as branch manager for Georgia-Pacific Corp., handling affairs of the G-P Great Falls warehouse.

Lee Boyer is new manager for Thunderbird Stores, Kalispell, succeeding Gary Thom.

Russ and Wes Scott have assumed the reins for Scott's Lumber & Supply Co., Fort Benton.

The industry lost a good friend and engaging personality with the recent death of Ferd Adolph, salesman for Slavens Lumber Sales, Billings.

Plans and preparations are well under way for the 1975 MBMDA convention to be held at Fairmont Hot Springs Resort, Gregson, midway between Butte and Anaconda. This beautiful new facility offers all the prospects for an interesting and diverting convention. Mark the calendar now with these dates: April 17-18-19,1975.

PURPOSE - To encourage investment (such as in savings and loan banks) and a tax exemption of $500 on earnings by these investments. There is a similar bill now before Congress.

(4) A Bill. Relating to Public Finance providing expanded Definition of Bond of Public Depositories and amending Section 35-322 Arizona Revised Statutes.

PURPOSE - This requires a bond in excess of the insured amount to be put up by the depository. Since we are trying to get money from state funds deposited in savings institutions ttns extends the requirement to cover them and any other financial institution not covered by present laws.

These bills will be presented as a package to the state legislature when it meets irl January. A legislation TASK FORCE has been appointed to lobby for the passage of these bills.

Production & home ofrcc:

Fred Holmes o Carl Force o Jim Buckner o Gary Ohleyer

Alan Swanson o Hefi Thompson P. O. Box 665, Ft. Bragg, Calif. 95437 Phons (70t) 96+4058

THERE is a New Year just starting! !!!

Each one of you have the same question. What is ahead for '75? In the past we could predict with reasonable certainty that a slump would last a few months and then we would have the typical increase in activity for a while. There have been many soothsayers expounding their philosophy on the economy and inflation but no matter how much experience and education they have had there js not one that has been able to predict the current state of confusion.

All ofus have looked at our operation with the idea that we must improve management and efficiency. We have considered using "Last-in, First-out" accounting to take advantage of certain tax breaks but then we realize that LIFO is best used on a rising market and we are in a rising market on some items and a receding market in others. We have considered using FIFO but that is for a falling market.

Most of us have given more attention to our inventories than ever before. We certainly don't want to be sitting on a huge inventory and have the market continuetodecline. We keep looking for a glimmer of light in the future to give us an indication that we have bottomed out and are starting back up. Once we have an indication of this we can increase our inventory before the cost of merchandise begins its upward spiral.

If you have reviewed our economic ups and downs for the past several years you will notice that there has been a ratio established. For every month the economy is down it takes two months to return to the previous level and then inflation takes over as we pass the previous level. The current economic recession has been going down for eight months; therefore, we can assume that if it bottoms out today it will be fourteen months before we reach the former level of progress.

Our industry is in an unusual position as we have all witnessed during the past months. Housing starts are fai below the lowest figure predicted, but at the same time the consumer has tackled home projects that has brought those of us with walk-in traffic capability an opportunity to capitalize on the high cost of professional trades and the growing trends should be a continuation of our seryice and promotion to sell the homeowner. We need to inform the do-it-yourselfer about building codes to include electric and plumbing.

Our sales staff must be familiar with the codes, how the do-it-yourselfer must prepare his plans and submit them for approval. If we can become experts in this field I see an excellent year ahead.