]THtr SOUTHLAND

By WAYNE GARDN ER rlilllrllilllrrlllrlrlllllllll'ilrrlrrl

executive vice president cussion as moderator.

fHE opening of the National Lum^ ber and Building Material Dealers Assn. meeting, being held at the Washington Plaza Hotel in Seattle, Washington, is October 15.

Ttre program for the five day event is fiUed with a well balanced mixture of informative business sessions, mill tours, social activities for women only, some golf, plus a cocktail party ar two and the president's reception and dinner dance.

The business sessions will include round table discussions on electronic data processing with Kingston McKee of Forest Lumber Co. leading the dis-

There will be discussions on home center operations, sewing the construction industry, transportation and materials handling, marketing and marketing trends, and legislative activities at the federal level.

The mill tours are to the Weyerhaeuser mill at Snoqualmie Falls and Sirnpson fimber Co. at Olympia, Shelton and Alderbrook.

This is an outstanding opporttmity for members of the Lumber Assn, of Southera California to attend a national meeting and see how the National functions. It is also the first chance that LASC members, as well as lumbermen from all across the country, will have to see a man from southern California installed as president of NLBMDA.

Terry Mullin, president of Terry Building Centers and past president of LASC, will be installed as president of the National Lumber and Building Material Dealers Assn- untarily comply, and will also expedite the investigator's work.

For many years, Terry has taken an active part in National affairs, on behalf of lumbermen from our area. A few years ag:o he was asked to become an officer and accepted. The upcoming year will be the culmination of his many years of activities as dealer-director, executive committee member, and his participation and worthwhile contribution to so many committees.

Each and every lumberman in our area is encouraged to attend the National meeting in Seattle, Oct. 15-19. It will be a most informative and enjoyable meeting for those attending and it would be most fitting to have a large contingent of southern Californians on hand to welcome Terry Mullin as he accepts the challenging responsibility of leading the nation's retail lumbermen during the year 1973.

Before you begin work on the PC10, become familiar with: Profit Base Period.

By ROSS KINCAID executive vice president

tl'tHE Price Commission has as- I signed a high priority to IRS compliance audits of lumber manufaeturers, wholesalers and retailerl, following the recent hearings in Poitland, Oregon, San Francisco and New Orleans. Based on phone calls from members, these audits are already underway.

Please note! The commission points out thet in the event of IRS audit' it is not sufficient merely to refer the agent to a file and say "There are my records, go through them." In effect, the burden of proof is on the dealer not IRS. It is necessary that the dealer develop and maintain jus- tifying documentation of price changes. Though most dealerg are Tier III companies and not required to file PC Form 10, it is suggested that assembly of data to comply with that form would constitute a documentation.

Again, a word of caution, IRS will be closely auditing 19?2 profit margins to see that they do not exceed the base period profit margin. \Mith the unusually busy year, this could be a problem for many.

A good way to check your firm's compliance is to complete the form PC-10. \Me wish to point out you are not required to file the form with the Price Commission. IRS tells us your having the completed PC-10 form readily available, should an investigator visit you, will be evidence of your firm's effort and willingness to vol-

You must also be able to document any price increase with evidence that your supplier charged you an increase.

The penalties for violation of price controls, Criminal fine-$6,000, Civil fine-$2,600.

Firms which violate profit margin regulations are subject to price reductions and refund orders up to three times the excess profit.

Let me assure each of you we realize record keeping in this industry leaves much to be desired and makes compliance very difficult We are honestly attempting to simplify the job, but must be very careful not to over simplify.

We remind you income tar reports are available and you must make up your mind how to document your firm's position. If you mustcall in your accountant. Take inventory, if necessary. CalI us if we can help you further.

Figure oul for yourself you could moke selling the Abitibi line vs. the COSTS OF HANDTING 4x8 PANEUNG how much poneling profit ihe high profit spreod in low priced cheopies.

Lobor costs to order poneling; io inventory ond hondle it when it orrives; to put it out for disploy; to figure o competitive selling price; lo help customer select o pottern; to hondle it ofter the sole; to exploin how to instoll ir.

TOTAL COSTS 3...-..._...-....

PROFIIS FROM SEILING JUSI ONE 4x8 PANEL.

Low Priced Abitibi 801* $2.3O**

*Averoged penny profif.

* *Averoged dollor profit per ponel over entire Abitibi line bosed on overoged selling prices in this oreo.

TOTAT PROFTTS $.._....--.....

PROFITS $.-.. .........-