NEWS BRilTTS

The long awaited and oft-pre- dicted drop in housing starts finally arrived with a 200/o decline in Jan., when starts fell to 1,656,000, their lowest level since Jan. '77 when they hit 1,519,000. virtually all indicators were lower, including bldg. permits.

Experts say about bnequarter of the drop was due to bad weather and foresaw further slippage.. single family starts fell 260/o from Dec.'s revised pace to a 1,136,000 seasonallyadjusted annual rate. multis were off 2.40/o from Dec., but were l5o/o above the year-earlier pace.

Building permits for future construction were down l8o/o from the mo.-earlier to a 1,363,000 annual rate; single family permits coasted to a 864,000 pace, down 250/a from Dec. housing starts declined in all parts of the U.S. except the Northeast; mobile home shipments managed a .la/o gain from Dec., but were still down 6.20/o from the year earlier.

After 22 increases, the prime (lowest) lending rate dropped from I l3/qo/o to llVzo/o at some banks; no one yet is forecasting a major decline in this important supply of $$ for housing. continued tight money policies by the fed. gov. are expected. .

The "Annual Rait Car Shortage" is expected to worsen before cars become more widely available: weather, California's inventory tax, locomotive supply, and fewer cars are cited as reasons... Transportation Sec. Adams has called for greater freedom for RRs to raise or lower rates. .

American Hardwood. Los Angeles, has a new 10,000 sq, ft. storage warehouse. ' , Knollwoad Corp,, Headsburg, C&., has opened a new office in Newport Beach, Ca., manned by John Marsala. High Sierra Lumber Sa/es,.has moved from Arcadiao Ca., to Pasadena Flintkote Supply plans a new branch in San Luis Obispo, Ca. Sundown Timber Co., Silver Springs, Nv., has opened an office in Milwaukie, Or...

A proposed new 84 Lumber Co. unit in Fairfield, Ca., has been nixed by county plan, ners. .. Brookhart's Building Centers, Colorado Springs, Co., has added 4500 sq. ft. to its Rocky Ford, Co. store. in metro Phoenix. the 7 O'Mallev Building Mateiial Centers will be using tv for the lst time. .

Ward and Harrington plan an April 26 opening for its 19,500 sq. ft. new Oceanside, C&., store. Lumberjack Stores, Sacramento, Ca., are building a new unit in Rancho Cordova, Ca., mid-year, with a new Hq. facility planned for fall. Central Supplyis a new lumber yard slated for Jeffrey City, Wy.

L-P's Fibreboard unit has closed permanently its agrng Sumner, 1{a., corrugoted cardboaid plant...a new distribution center is planned by L-P in Albuquerque, N.M., as well as at Fremont, Ca. Arcata Corp. expects to complete its acquisition of Simonson Lumber, Smith River, Ca., by July. .

Duke City Lumber, Albuquerque, N.M., has purchased leggett Lumber, Livington, Tx., and Splendora Lumber, Splendora, La., for an undisclosed amount and will operate them as its southern div. Jim Walter Corp. is expanding its Portland, Or. steel sectional door productlon.

llleyerhaeuser has closed its Everett, Wa., Mill B (435 jobs) due to high labor costs in the 1915 mill. ..Pow & Talbst will shut its Kalama, Wa. plywood plant (350 jobs) due to continuing losses. they plan a $12 million modernization/expansion of their Port Gamble, Wa., mill,

The Chicago Mercantile Exchangeis pondering trading in lumber futures contracts comprised of S-P-F, in addition to Hem-Fir. . . the American Plywood Assn. has moved to new Hq.: 701I So. 19th, Tacoma, Wa., 9841 I (P.O. Box 11700)...

Sundance Lamber, La Verne, Ca., is a new retailer opening a handsome 20,000 sq. ft. facility on2ll3 acres late this mo. Angels plans a new store for Rancho Cucamonga, Ca. O'Malley's, which plans a public homeshow for the Phoenix area Sept. 28, has bought Rural Lumber Supply, Apache Junction, Az., for an undisclosed amount. ..

North American Wholesale Lumber Assn. has est. a search committee to select a new exec. v.p. following the death of J.J. "Jack" Mulrsoney; a final choice is expected to be made at their annual meeting in Florida in April...

A French financial co. has bought more than $15 million in Diamond Internatianal stock, no public reason yet stated as to

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We are proud to announce the recent opening of our new Fresno, Galifornia distribution center.

Now you can rely on our unsurpassed inventory of redwood clears and commons at both our San Rafael and Fresno locations. Just call (209) 486-4390 at Fresno for the same superior service and complete inventory you've come to expect from Kelleher.