Direct Mill Shipments

Truckers Fighting New Tax

The trucking industry is in a battle for survival at state levels throughout the country where it faces a growing number of railroad-financed citizen front groups that are calling for a weight-distance tax on heavy trucks, according to the California Trucking Association.

It turns out, CTA alleges, after an intensive Heavy DutY Trucking Magizzine investigation, that the socalled independent state organizations are, in virtually every case, heavily financed by the railroads, the association says.

In California, AB 613 WeightDistance Tax, has been introduced into the legislature by Assemblywoman Gwen Moore (D), Los Angeles, and calls for up to 100 Per mile for heavy trucks. The Californians for Fair Highway Taxes, the grouP backing the California measure, gperates out of the offices of Cerrell and Associates, political public relations firm which is engineering the rails' media campaign, CTA says.

Californians for Fair Highway Taxation includes such support groups as Friends of the Earth and the National Taxpayers Union, but admits that virtually all of its money for the ton mile tax campaign has come from the California Railroad Association, according to the magazine article.

"The railroads are engaged in a well-financed, highly organized campaign to increase taxes on trucking. The motive is obvious: increase the cost (and thus the rates) of truck shipments through taxation so that railroad freight will be more competitive and more profitable," the magazine states.

According to Thomas C. Schumacher, exec. v.p. California Trucking Association: "The weightdistance tax is the most inequitable system of taxation because of the administrative cost involved. The hidden costs are extreme. It's the consumer who will pay."

"The railroad's motive is: If your competitor is heavy trucks and if you can get the state to impose a $200 million annual tax on them and also have heavy trucks incur an additional hidden administrative cost equal to another $200 million annually, the result would be to successfully hamper your competitor while increasing your own marketplace. But it's the consumer who will pay the Price tag," Schumacher added.

"This type of tax is the most inefficient type of taxation possible. Ton Mile Tax proponents are not interested in putting funds into the highway fund, they're interested in raising the trucker's cost, " Schumacher said.

Merlo Again Number One

Harry A. Merlo, chairman and president of Louisiana-Pacific Corp., Portland, Or., has been named top chief executive in the forest products industry by the editors of the Wall Street Tronscript. This is the second year in a row that the publication has chosen L-P's Merlo for their "gold award." The selection is based on interviews with industry executives, leading financial analysts, money managers and trade j ournalists.

Named to the runner-up position was George H. Weyerhaeuser, president and chief executive officer of Weyerhaeuser Co. Richard B. Madden, chairman and chief executive officer of Potlatch Corp., received the bronze award.

Spruce

Pine

White

Industry Committee Adds 2

The Hand Tool Institute and the Outdoor Power Equipment Distributors Association have been accepted by the board of directors of the American Hardware Manufacturers Association as participants on the Hardware Industry Week advisory committee beginning in 1984.

(Continued from page 34) items and serving and buffet products and accessories the top-ranked among consumers. r More than half of consumers purchase housewares products as gifts, and "singles" consistently spend from 25 to 50r/o more for such gifts than the average expenditures reported by the general population. r Consumers try to coordinate their selection of housewares products with the colors in their kitchens and bathrooms; and they prefer solid rather than patterns/decorated colors, and pastels over bold colors. o Two-thirds of consumers have a specific decor or theme in their kitchens, and country, traditional and modern rank l-2-3. Only half the "singles" have a special decor, and they rank contemporary right up there with country. o Yellow is still the main kitchen color, but it is declining in popularity. white/off white, wood,/wood tones, almond and beige/tan are the upcoming kitchen colors, especially among upscale ''singles " and younger consumers. o Blue remains the most popular color'for the bathroom, and for any redecorating in the near future.

. Most consumers indicate they view housewares products as "usually inexpensive" or "reasonably priced," with kitchen tools and gadgets thought to be the most affordable, and outdoor products and accessories the least.

In-store displays are the most important source of new product information for consumers, across all six housewares categories. However, consumers rely on television commercials and newspaper advertisements for their more major purchases, like small electrical appliances and outdoor products and accessories.

Housing Still Needs HelP

Although the housing industrY has experienced a "remarkable turnaround" in the Past six months, lower interest rates, reduced federal deficits and new housing legislation are needed to sustain the current recovery beyond 1984, according to Harry Pryde, president of the National Association of Home Builders.

In opening remarks before the 25th Annual Pacific Coast Builders Conference, Pryde said that the prognosis for housing "looks good for the next 12 to 18 months." But, he added, "to keep this recovery going at its present pace, interest rates must stay down,"

Pryde said that NAHB is Projecting about 1.56 million housing starts this year, an increase of about 4790 over last year's depressed level of production, assuming that the FHA/VA rate droPs to about ll9o later this year.

Housing starts rose to an annual level of 1.8 million units in MaY' Pryde said, the highest Production rate in nearly four years. In the first five months of this Year, he said, housing starts were up 7590 over the same period last year; sales in the first four months were uP 6090.

But, Pryde warned, "interest rates are still too high" for a sustained economic recovery. He calculated that the spread between interest rates and the inflation rate, normally I to 3 points, has been running at about 8 points. The inflation rate has been about l9o during the first five months of 1983.

Simpson Relocates 2 Div-

Simpson Timber Co. has moved the sales and marketing divisions for panel products and fir & hemlock lumber to Shelton, Wa., from Seattle.

Reporting to John White, marketing mgr., panel products, will be Craig Adair, market Planning, advertising and Promotion; Marc Grohe, sales mgr., and Frank Arnold, mgr. Oregon overlaYs.

Tom Walker and Dave Town will handle inside sales. The field staff will remain the same, including Steve Norris, Seattle, the Northwest; Dave Ellis, San Jose, Ca., West/Central; Richard Harlow, Huntington Beach, Ca.. Southwest.

Michael Durga, sales mgr.; Joe Clegg, assistant sales mgr.; CurrY Felt, Bill O'Banion and Patti Grant, sales reps, will rePort to George Baker, fir & hemlock marketing mgr.

NFPA Recognizes Dealer

A broad spectrum of issues and problems confronting the forest industry came under the purview of the National Forest Products Association at its annual sPring meeting.

The special committee on wood products markets concentrated on three major subjects: exPansion of non-residential wood markets and competition from metal building fabricators; the need to imProve economic data on end-use of wood projects; recognition of the retail dealer as a vital link with consumer and builder markets.

They recommended that the interindustry Wood Products Promotion Council consider a series of seminars with wood building manufacturers to develop a team aPProach to imProve competition with metal Prefabricated buildings.

The board authorized imPlemen-

P.O. BOX 3175 ' NAPA, CA 94558 WHOLESALE DISTRIBUTION & REMANUFACTURING OPERATIONS

We specialize in: o Redwood lumber Products and hard'to'get items. o 48 hour service on truck and trailer loads of custom milling. lf we don't stock it, we can make it here in our new remanufacturing plant, the newest, most modern plant on the west coast.

For Your inquiries call: RICK ROSA o DAVE SNODGRASS LOWELL WALL o STEVE HAGEN ' KARL DREXEL

"THE LUMBER NUMBER" is 707'252'6142 "THE PLACE" 5747 Hwy.29, Napa, Ca' 94558 tation of the revised organizational structure recommended by the Select Committee to become effective Jan. I, 1984 and approved a six month partial suspension of member dues.

National Dealer Convention

The 67th annual convention of the National Lumber and Buildine Material Dealers Association at Th; Pointe, Phoenix, Az., Oct. 8-12, will follow the theme "Pointes to progress. "

"This convention is just one more step in the momentum this industry and the nation are experiencing during this economic recovery," says Dean K. Leaman, chairman. ,,The program includes many fine speakers and a number of timely topics designed to help you, the building material retailer, keep the recovery momentum going through the rest of the decade. "

In addition to committee meetings, there will be a series of dealer services workshops touching on selecting new products, new locations, cutting delivery costs, passing on the family business and doing a better job of selling.

Speakers will include William J. White, president and c.e.o. of Masonite Corp., Art Linkletter and Robert H. Michel, Republican leader in the U.S. House of Representatives.

Family Trends Limit Housing

The housing boom forecast for the 1980s may never come, according to the Federal Reserve Bank of San Francisco, since the projections were based on extrapolations of trends in household formation from the mid- dle of 1960 to the end of 1970.

At that time households formed by the under 25,25-34 and over 45 age groups outnumbered those expected at this time for the 1980-1990 period. Some of the heavy demands of the 1970s were due to socioeconomic forces that probably will not be repeated.

Continued heavy demand for housing will to some extent tend to be self-limiting, as constraints on affordability and availability discourage household formation. Onlv the 35-44 year old group is expected to form more households in 1980-1990 than in 1970-1980.

Change Inventory to Time

Work out a deal with your local radio station to provide prizes which they need for contests in exchange for radio time of equal retail value. This bartering results in radio time costing you wholesale rather than retail dollars.