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Transit Dispute

David Cutler, editor-publisher

The Merchant Magazine

4500 Campus Drive

Newport Beach, Calif .9266O

Gentlemen: I wish to express my aPPreciation for your interview with Mr. Stephen Freeman in your January issue /see pp 8-9). I found his views on our phase of the lumber distribution industry both enlightening and a bit frightening.

In fairness to Mr. Freeman. I assume he is today and has always continued his trading sphere to what has been come to be known as the "Southern California market." Bearing that in mind, my comments should be interpreted as coming from one who feels he could learn much from one of Mr. Freeman's caliber, experience and obvious repute.

First of all, I believe that the functioning independent wholesaler will never be obsolete. No one entity within the lumber industry can exercise enough influence on the law of supply and demand to create a universally acceptable price and or tally. They must, therefore, pay that finder's fee which wholesalers call profit. The only method which major producers may eventually wish to employ, is to engage these same wholesalers under some type of contract arrangement to give them some semblance of control over one aspect of the demand facet of the market. Secondly, I agree most heartily with Mr. Freeman's views on the independence a wholesale firm enjoys in comparison to the mill representative, or "sales agent." I get a Ereat deal of satisfaction from using my imagination, knowledge and sales ability to place business where all, including myself, derive a reasonable profit, and leave my office everyday knowing that all parties involved are satisfied.

Mr. Freeman's opinion of "transit car operations" is extremely puzzhng to me, especially considering his marketplace. I know no better method to take advantage of a market swing than to take an either long or short position.

Which position you take is, of course, governed by the law of supply and demand, economic conditions in producing and consuming areas and other variables that can be read like a road map. The money is made on the position taken and the subsequent movement in the market, not on additional placements or getting a cheaper price in the beginning.ln my opinion, the odds in favor of the astute transiter are at least 9 to 1 in his favor. It disturbs me greatly to read that Mr. Freeman's collegues have not realized a monetary profit from their transiting venture. They have gambled foolishly and lost. They obviously could not read the map.

He seems to contradict himself in his explanations of "block specifications." When he states that he pur-

The Merchant llagazlne chases "stock in excess of the specification" for sale to other yards he is in effect "transiting." I hope that doesn't affect his blood pressure.

I believe Mr. Freeman's observations, when considering his method of operation, have validity beyond question. The world does continue to revolve and times and methods change. Our industry has changed so drastically in the 12 short years I have been in it, what with WATS lines, "Random Lengths," and sophisticated communi cations,make positioning in a transit situation the most available method of marketing available to us.

When your customer knows exactlY how much you are investing on a given day, it is difficult to make it any other way.

Tom Conway

Newport International Forest Products, Inc.

P.O. Box 705 Corona Del Mar, Ca.92625

40( aword, min.24 words (24 words = $9.60). Phone number counts as one word. Ads with border $1.50 extra. Headline or centered type $2.50 extra. Box numbered ads are $2.00 extra. Names of advertisers using a box number cannot be released. Address all

HEI.P WANTED

LUMBER MILL MAN - retail lumber experienced sticker setup, knife grinding, gang rip & resaw. Union shop, $5.86 an hour, Barr Lumber Co., our 'l6th yeu, 10742 Los Alamitos Blvd., Los Alamitos. Ca. See Gerrit Vos.

STICKERMAN - So. Cal. softwood moulding operation needs qualified man to set up and run late model moulder. Phone Rod Wilson (213) 693-9613. All replies confidential.

LEADING lumber & building materials distributor is seeking an experienced field sales person for established and protected teritory in the L.A. area. Applicants should be well versed in lumber, panel products and other softwood forest products and be self-motivated. Compensation includes base salary plus commission and company car is furnished. Replies held in strict confidence. Equal opportunity employer. Reply Box 201, c/o The Merchant Masazine.

INDUSTRIAL lumber salesman wanted for softwood lumber sales in L.A./Orange county area. Excellent opportunity with growing company. Write Box 203, clo The Merchant Magazine.

LUMBER SALESMAN - Excellent opportunity for qualihed aggressive person who has very heavy experience selling lumber to contractors, large builders & developers. Salary plus bonus, car, health insurance, pension and profit sharing. This is not a training position. You must have a proven lumber sales record. Barr Lumber Co., our 76th year-Stan Skelton, sales mgr., 10742 Los Alamitos Blvd., (213) 5964475, (714) s27-228s.

A Desirable Place To Live

We need an experienced retail counter salesperson for our Lake Arrowhead yard. Must be willing to learn all phases of operation and grow with the future. Contact: Dennis Kirk, Ganahl Lumber, P.O. Box 31, Anaheim, Ca. 92805 (714) 7'12-5444.