WFW APHYI

Globe Internotionol Los Angeles, Colif. 90034 1213t 870-64s6

Globe Int'l of N. Colif. Son Jose, Colif. 951 12 (408) 9e8-3300

Butler-Johnson Corp. F-resno, Colif. 93721 l20et 233-4567

Butler-Johnson Corp. Socromento, Colif. 1916t 4s2-1252

/4emet Soles Agenls: Westmark & Assoc.

Globe Int'l of Arizono Phoenix, Arizono 85005 (60212s8-4941

A. J. Johnson & Co. Tocomo, Wosh.9840l 12061 627-4186

Oregon-Pocific Industries Porilond, Oregon 97207 15031 224-4525

Tri-County Wholesole Co. Venturo, Colif. 93023 l80sl642-6724

Butler-Johnson Corp. Son Jose, Cqlif.95l33 (408t 2s9-r 800

HARRY MENDENHATT executive vice president

Lumber Merchonls Associotion of Northern Colifornio 4546 El Comino nftl, Suitc 0 to! Aftor, Cslit.91022 (.115) 941-1617

Phase Xix Economic Stabitization

IIFFECTM December l, Lg72, all 'Lr lumber and building material dealers will receive a list of merchandise from the Department of Consumer Affairs. The merchandise on this list is the only merchandise retail lumber and building material dealers will be permitted to sell.

Accompanying this list will be a price structure which will be the only mark-up of landed costs. You need not concern yourself with landed costs since government wholesale warehouses will provide you with catalogs of fixed prices.

You will be provided an authorized wage list by the Department of Labor. Wages on this list will not be exceeded for each class of employee indicated. In addition to the wage list will be the mandatory employee benefits which you are required to provide each employee. These bene- fits include group health insurance, disability insurance, employee home and auto insurance, dental insurance, life insurance, workmen's compensation insurance, pension insurance, dependent insurance and dependent education insurance. Employers will also be required to pay I00Vo of Social Security, Unemployment, and Withholding Taxes (both federal and state). The Department of Health, Education and Welfare will provide you all of the above insurance at a reasonable fixed government rate.

Th: IRS will provide you with electronic dara process_ ing forms that will be returned to them by you at the close of each month. Information required by these forms will include cost of items purchased, inventory turn-over for thc nonth, wages and taxes paid, total cost of opera- tion for the month, gross sales, gross profit and net prof- it.

.The maximum percentage of profit made by a dealer will not exceed, l.,Vo per annum and in no case will the total dollar profit exceed $18,000 per annum. All corpor- ations are required to pay corporate officers and owners an annual salary not to exceed $12,000 per year. The tctal nel profit may be shared by the corporation officers on an equal basis; however, these officers and owners are required to pay an additional excessive personal income tax of 7\Va of all wages earned in excess of $12.000.

Any dealer violating any portion of the regulations governing the Economic Stabilization Program is subject to confiscation of his business and a prison term. The Consumer Atrairs Agency has the authority to confiscate a business and impose prison sentences based upon their secret findings. Appeals will be permitted only upon the release from serving the full sentence.

Congress indicates that by January 1, 1gZB, all dealers will receive store layout plans that must be complied with no later than April 1. These plans will govern the number of display areas, type of merchandise by area, total lighting fixtures permissable, type of floor covering, color of paint for interior and exterior store walls, and ttre total square footage authorized each dealer based upon the past three years' sales.

(Continued, otu the opposite page)

IRS Investigoting Prices

The Internal Revenue Service is now in an intensive nationwide price control investigation of small retail and wholesale lumber firms.

C. Jackson Grayson, chairman of the Price Commission, said the IRS is checking specific complaints that were brought to the attention of the Price Commission at a public hearing and various other meetings it has held on lumber prices. Grayson also said the IRS is making random audits of companies for compliance with Price Commission regulations.

Each of the 58 IRS districts is conductins several selective investigations for a national totd oJ over 200. Already completed, the announcement said, is an indus. try-wide survey of six lumber manufacturers and six wholesalers, including some of the nation's largest. Full scale stabilization audits also have been completed on two large lumber manufacturers. Generally, IRS said, it has found large firms in compliance.

Grayson also said an additional hearing on lumber prices is scheduled Oct. 19 in Atlanta, Ga. It will focus on:

(l) efforts by manufacturers, wholesalers and retailers of lumber to comply with the regulations, problems resulting from the regulations, changing business practices and cost pressures faced by industry;

(2) the impact of log and wood product exports on the available supply and the effect on the end users, such as consumers, home builders and other wood using industries;

(3) the utilization of available saw mill capacity;

(4) the difference in structure, pricing policies and pricing history between the softwood and hardwood in. dustries; and

(5) the problems of timber supplies, including exports, allowable timber cut on federal lands and diver. sion practices.

PHASE XIX-FEDERAI STYLE (Continued, lrom Opposite Page)

It is estimated that under this plan dealers will have an excess of.75% of their store and storage space. This excess space will be reported to the Department of Excess Resources for uses they determine to be in the best interest of the Government. Planned uses for excess rooms and buildings will be programs such as Child Day Care Centers, Recreational Areas for the minority groups, Youth Achievement Centers and Adult Grievance Centers. Congress further indicated that this excess space will be maintained by the dealers with details of the mandatory maintenance and furnishings required to be issued prior to February 1, 1973.

Although all of the above is purelg fictional ut this time, who knows which of the above will be enacted in the next year or near future. All of the above could be enacted by Congress and under the current system of communication to ttre public, very few would know about it until it became law. Most information on government legislation is contained in the Federal Rcgister. The problem is, who gets the Federal Register ? Unless you are in a very small elite circle chances are you won't see it, nor will you have the opportunity to read a proposed bill in its entirety. You have excerpts quoted to you in the news media, but this is usually biased and will not g:ive you all of the facts.

(Continued on Page 42)