Pacif ic Northwest dealers convention

33 A ET OFF your duffs." urged l\l Ray Cooney, former vice chairman of the board of Scotty's, Inc. as he told members of the Western Building Material Association that mass merchandisers like Scotty's "will only put small independents out of business if you allow it to happen."

Speaking at WBMA's 83rd annual convention held in Bellevue (Seattle), Wa., he said small chains and independents must become more professional, innovative and creative. "The two most important factors: your people and inventory management," he advised.

Involve your people in your business, Cooney counseled. "A well trained employee is a happy employee. Don't try to do business without a computer; it's going to change retailing more in the next l0 years than it has changed in the last 100," he said.

Convention activities got off to a brisk start Sunday morning, Nov. 9, with a 9 a.m. start for the always popular Exhibitors Quick Pitch Selling Talks. More elaborate and better prepared than ever, a string ofpitchmen informed and amused an enthusiastic audience of Pacific Northwest and Alaska dealers.

Story at a Glance

Smalls can successfully compete with bigs, WBMA convention told by mass merchandiser...business meetings covered internal security, incentive and compensation plans and how dealers can get support from suppliers. . Clayton Smith elected president. next year's meeting: Portland.

theft; (3) establish a policy; (4) communicate the policy to all employees, and (5) enforce the policy fully and firmly. Case said that employees must be made to realize that stealing from the firm injures not only the company but also its employees as the thief is stealing money that would go for employee raises and bonuses.

The Young Westerners, an under-35 group of WBMA members, next fielded a panel discussion on employee incentives - compensation and profit sharing, Teresa Swick, Johnson-Postman Lumber, Tacoma. Wa.. noted that incentive plans must include cash flow and other management factors to produce effective results. She said the goals should be specific, measurable, actionable, realistic, rewarding and timely.

The newly elected president of WBMA is Clayton Smith, W.J. Conrad Lumber Co., Coos Bay. Or. New vice presidents are Earl Nelson, Nelsons Inc., Twin Falls, Id.; Joe Orem, Bellingham Sash & Door, Bellingham, Wa. National directors are C.E. "Chuck" Link, WBMA, and Gordon Gerretsen, Gerretsen Building Supply Co., Roseburg, Or. The immediate past president is Bob Perrin, Capital Lumber Co., Boise, Id.

Newly elected directors are Andy Boyd, Rick Barnes, Mick Bush, Bill Winfree, Mary Ann Warren, Jerry Davis, Pete Sylvester, Carl Van Well, Bob Jacobsen and Harvey Hoff.

The balance of the afternoon was devoted to the Building Products Showcase and Buying Show held at the convention hotel, the Red Lion Inn. The show was also held the following afternoon. Well attended and a traditional keystone event at the annual convention, the show had 106 exhibitors occupying 145 booth spaces.

The next day, breakfast keynote speaker Ralph Lewis reviewed global politics as seen from the perspective of the oil industry. He contended that the U.S. lacks the oil necessary for its national defense, pointing out that 7 50/o of all oil wells ever drilled are in this country.

Security professional John Case then spoke on the need to protect company assets from theft and suggested ways to implement controls. Pointing out that employee theft is five times greater than shoplifting, Case said drug and dishonesty screening were essential during the hiring phase.

His five steps for a security program include (1) hire right; Q) remove opportunities for employee

Next panelist Terry Withers, Withers Lumber, Woodburn, Or.. said firms should decide why they want an incentive program and then proceed to setting specific goals and formulas to reach them. Presenting the program to employees in a positive manner was a critical part of the plan. He noted that a lack of goals at

(Please turn to page 36) ii,:I, :,lf i i l[,98?11', f ili' Bli, v:',1 ;l?ii Jean Fakundiny, Gary Newman. l3l Arne Kirkebo, Chuck Link, John Kendall. l4l Sid &

"Hank" Voorhees, Janet Conrad. (51 Roger Conrad, Wes Strahm. [6] Gordon & Pat Gerretsen. l7l Rick Barnes, Terry Withers. (81 Pat Bates, Betsi Powers, Kyle Kincaid, Dennis Parry. l9l Ken Hall, Matt & Suzi Salzinger. ll0l 8ob Harper, Carl Liliequest. llll Roger Cooper, Randy Kennedy, Jock Wood, Bruce Tays. ll2l Pete Koch, Cary Lawrence, Gary Wright. (l3l Ken & Helena Gohrick. (l4l Bob Kennedy, Ted Hodgkiss. llSl Dick Wegner, Rov Manion. ll6l Ron Radelet, John & Joan La;is. llTl Homer Greer, Bob McPherson, llSl Kristie Smith, Bob Mullen. (l9l Craig Wagner, Joe Campero. l20l Shirley Meinhardt, Bob Jacobsen. 12lf lfa Gibbs, Mark Ballour. l22l Dan Olson, John S. Hart.

Reregulation

(Contittued from page 10)

Hoc argued in favor of increased regulatory control, expressing the belief that rate-cutting has led to financial hardship for carriers, excessively long hours of driving, deferment of vehicle maintenance, speeding, and overloading of vehicles, all having an adverse effect on highway safety.

The recommendation of the Commisssion's Staff, while defending the competitive rate making philosophy, resembled in many respects the plan advanced by the Ad Hoc Committee. The principal difference was the staff's proposal for an IndexedZone of Ratemaking Flexibility (IZORF). Under this proposal, the staff would prepare a Truck Freight Cost Index which would be adjusted annually; however, when the adjusted TFCI shows a percentage change, a corresponding change in actual rates would only be mandatory when the change exceeds 5ol0.

On April 16, 1986, the full Commission, adopting in principle the recommendations of their Administrative Law Judge who conducted the hearings, came down squarely on the side of more regulation.

The new program which the California Public Utilities Commission adopted is essentially a hybrid of the proposals of the Ad Hoc Committee of smaller truckers and the recommendations of the Com- mission's staff, adopting the concept of the annually adjusted Truck Freight Cost Index and the 50/o zone of ratemaking flexibility, with one notable exception.

The Commission adopted, for a one year trial period, an alternative kind of contract, in which profitable carriers would be allowed to file contracts without any specific justificiation if they provide for dedication of specifically identified equipment for the exclusive use of the contracting shipper for at least 30 days. Such contract would be permitted to become effective on the date filed with the Commission, and would not be subject to percentage changes reflected in the annual revision of the Truck Freight Cost Index.

In order to reflect a perceived increase in trucking costs since April, 1980, the Commission ruled that California intrastate trucking rates, with certain exceptions, be increased by l0o/0, no later than May 5, 1986.

In a resolution adopted September 17, 1986, the CPUC formally adopted a "get tough" policy for enforcement of this new regulatory program, including penalties for both truckers and shippers who are found to be in violation of the regulations.

The new program was originally scheduled to become effective October I, 1986. In order to allow the staff more time to work out details for implementing the program, this date has been postponed twice, the latest effective date being February I, 1987. However, trucking companies are required to issue rate tariffs (either individually or collectively), to replace the Commission's Transition Tariffs. They must have filed the tariffs with the Commission prior to Dec. 3, 1986, showing an effective date of not later than Jan. 2, 1987.

So, California has opted for tighter regulation. What will happen if and when the Federal government enacts complete deregulation of trucking in 1987, which may quite possibly pre-empt the right of the individual states to regulate trucking rates for intrastate shipments?

Whatever happens, it should be interesting.

Mich-Gal Locomotives Retired

Steam locomotives no longer being used by Michigan-California Lumber Co., Camino, Ca., are being renovated by Don Wynant, a Mich-Cal retiree and train buff.

After new wood bumpers and floor boards are installed, the retired engines will be painted.

Now that the trains are no longer in use. the tracks. which were laid in 1904 between Camino and Placerville, are being removed. A mechanical nail puller removes nails, followed by a machine with a metal boom in front which lifts the rails and places them aboard a truck. And the sounds of yet another western railroad fade into history.