Meroocrro

FOREST PRODUCTS CO., LLC

7145 Arlington Ave., Riverside, Ca.92503 Fax909-352-0652

(909) 343-3000. (8oo) 648-9116

Seming Southern Califurnia & Ias Vegas markets flange ll-718" , 14" , l6', 18" & 20" depths

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To replenish the shelves, the chain has rearranged schedules and the duties of existing employees so they work early morning or off-hours at night rather than adding new personnel. In addition, all truck deliveries are now conducted during off-hours rather than during daytime.

Such changes comply with new ceo Bob Nardelli's plans to garner more sales from existing stores and rely less on expansion for future sales growth. The changes can also be viewed as an indication that store managers' independence is dwindling in favor of consistency, according to executive v.p.operations Larry Mercer. "There were no rules before," he says, noting that initial SPI results from the first six test stores indicate increases in same store sales and average customer amount.

Such results would be sweet music to Wall Street, which is hoping the makeover helps to resume DePot's recently broken growth streak.

The retailer also has assigned 130 safety managers to monitor store operations, has created a safety-officer post and begun securing all top-shelf merchandise to a pallet with plastic wrap to keep it from falling.

BCV9OXL 3-112" flange ll-"118",14",16', 18" & 20" depths o Versalam 2800 Fb (2.0): I -3l4" width 9- l/2", 1 | -7 18", | 4", 16" & I 8" depths o Versalam 3050 Fb (2.0): 2-518" width 9-l 12", ll-'718" & 14" depths

3-112" width 9-l/2",11-718",14",16", 18",20" & 24" depths

5- li4" width 9- I 12", 1 | -'7 /8", 14", 16', I 8", 20" & 24" depths

7" width 9-112", ll-718", 14', 16", 18" & 20" depths

. Versa-Rim Plus: l-15/16" width 9-1l2", ll-'7 18", 14" & 16" depths

Versa-Strand Rim: l-l/4", l-112",l-3/4",2-112" & 3-l12" widths g-ll2",ll-718",14",16', 18" & 20" depths

Please callone ofour o Full time Technical Rep on staff experienced salespeople for assistance

Sides Drawn As Softwood Pact Ends

A volatile issue that aroused varying degrees of passion, the U.S.-Canadian Softwood Lumber Agreement was set to expire March 31, concluding a five-year pact that limited Canada's duty-free softwood lumber exports to the U.S. to 14.7 billion bd. ft. annually.

As the expiration approached the eleventh hour, many believed the already-tense situation could become even more acrimonious, perhaps resulting in a full-scale trade war between the two countries. The current economic slowdown has strengthened the resolve of both countries to hold their ground.

The 1996 pact, covering Canada's four major lumberproducing provinces, designated that fees be charged once a quota was reached. Since then, both nations have claimed the deal hurt their industries. Some U.S. producers, such as Rusty Wood, owner of two Georgia mills, view the accord expiration as being harmful to the U.S. lumber industry, due to a potential influx of inexpensive Canadian lumber.

Wood, chairman of the Coalition for Fair Lumber Imports, said times are tough enough for the industry, noting that lumber prices are down and U.S. workers are losing jobs. "I'm just a guy wanting to survive,"' he said, adding that he has 300 families relying on him to stay in business. "(The Coalition's) mantra is if they would just sell their timber competitively, we go away," he said.

The Coalition prefers a new agreement that would tax all Canadian softwood lumber based on its value. The group threatened to pursue a 407o countervailing duty and file anti-dumping charges with the U.S. Commerce Department if Canada refused to agree to new restraints. The producers seem to have the ear of a large number of U.S. Senators, who fear devastating effects domestically from unchecked lumber trade.

Canadian producers are calling for free trade and removal of the 14.7 billion bd. ft. cap and rhe rariffs. They are supported by U.S. home builders and lumber dealers, who claim the 1996 agreement has added $1,000 to the price of a new home.

"We understand that demand is down, prices are down and that mills are facing a very tough time," said former Ontario Premier Robert Rae. "But, no amount of rhetoric is going to make the United States self-sufficient in lumber."

At press time, Canadian Trade Minister Pierre Pettigrew and U.S. Trade Representative Robert Zoellick were meeting to discuss the matter, but had yet to indicate any progress. This was on the heels of a letter siened bv 5l U.S. senators which urged President Bush to-negotiate a new agreement.

Pettigrew did admit, however, to have been asked by the British Colombia forest industry to consider a U.S. suggestion for a Canadian tax on lumber.

The feud can be traced back to structural differences between the two countries' forest products industries. While a majority of the commercial timberland in the U.S. is privately owned, more than 90Vo of Canada's forests are publicly owned; companies harvest the lands under longterm provincial licenses.

Many U.S. producers claim the provinces' logging fees are priced well below fair market rates to pressure the mills that are granted licenses to maximize employment by continuing to run even during poor markets. Twice before in the early 1980s and 1990s, say Canadian officials, litigation resulted in rulings disproving illegal subsidies; U.S. producers obviously disagree.