Fred C. HolmesLBT,?'^\"

PORTLA]{D, 0r., branch is under the management of Steve Penberthy, following in the footsteps of his grandfather.

applications. The facility located at Yreka, Ca., covers approximately 25 acres with complete sawing, milling, drying and shit'ping faciliiies. Whiie this operation was acquired in the late '30s, it came into full utilization during W.W. II and has been steadily improved and automated during ensuing years. The newest addition to Penberthy Lumber Co. is a branch in Portland. Or.. under the euidance and management of Steph-en Penberthy. Steve, grandson of the founder and son of Fay, received his training in production and sales at the Los Angeles operation after graduation from the Univenity of Oregon.

You Can Use Tax Advantages

Don't overlook maximizing your tax advantages as a way to conserve cash and stay liquid during a recession. According to Selwin E. Price, Alexander Grant & Co. certified pub- lic accounting firm, using tax advantages should be part of a cash management program.

Here are some tax advantages that he recommends to be explored:

(l) Accelerated depreciation. This gives you a faster write-off in the early years and thus helps save tax dollars.

(2) Investment credit. Be sure you get every credit for which you qualify. These are permanent tax savings.

(3) LIFO inventory valuation. LIFO means last in first out. This raises the cost of goods sold and thus lowers profits and taxes. But once you make the LIFO switch for tax purposes you must also use it for your financial statements.

(4) Completed contract method. For long term contracts, if you're on this method, you pay tax when the job is completed rather than as it progresses.

(5) Leasing. Consider the tax ad- vantages, which are often substantial, because you're paying more money up front. Some leases qualify you for an investment tax credit.

(6) Cash basis. This may be better than the accrual basis for some businesses, since you pay taxes only on money you receive. In addition, you gain flexibility by being able to push later-year billings, and therefore receipts, into the next fiscal year.

(7) Estimated tax payments. Don't overpay. The rule is'that you're safe if your estimate equals last year's tax or equals SOVo of this year's tax. If your taxable income doesn't equal last year's, it is advisable to scale down estimated tax payments to stay within the 807o guideline.

"Even if you underpay, the interest is l2%o which is currentlv less than borrowing costs," Price says.

You should discuss these alternatives with your tax advisor to determine which are suitable for vou.

MARY's RIVER LUMBER CO.

Specialists a ln

Western Red Cedar

HARDWOOD LUMBERMEN'S CLUB IN SECOND DECADE

(Continued from poge 32) earliest days of the club, some meetings were held at members' homes. ln 1972, the club began its Annual Day at the Races at Santa Anita. The first gathering was arranged by the late Sid Simmons. then president of Simmons Hardwood Lumber, an early member of the club and racing enthusiast. In recent years the traditioi has continued under the leadership of Victor Simmons. In April, Mr. and Mrs. Clint Bower, Mariner's Forest Products, posed in the Winner's Circle with the first place horse ridden in the Los Angeles Hardwood Lumberman's Club Handicap.

A recent innovation has been the Annual Gag Award Night, during which club members have won distinction for such majestic achievements as giving up drinking, arriving at meetings late, losing leases on their warehouses, and having the lousiest attendance.

The Los Angeles Hardwood Club held its first annual convention in llu/.ay, 1979, aboard the San Princess , sailing to Vancouver, B.C., Jim Summerlin, Sumwood, Inc., then president, presiding. The second annual convention was held aboard the 1sland Princes.r, as she cruised from Acapulco, Mexico to Long Beach, Ca., with past president Bob Wall, Wall Dry Kiln, ar the helm.

Members are regularly informed about club events by the club's goodnatured, monthly newsletter, e?ited by permanent scribe, Ken Tinckler.

Members pay annual and monthly dues which cover the costs of the luncheons and semi-annual parties. "Sometimes the kitty gets very thin," said Dennis Johnston, Johnston Hardwood, current treasurer. "But we always find a way to make ends meet."

The Christmas and summer parties are the social events ofthe year. These parties always include wives and dates. Past summer parties have been held at Sebastian's Dinner Playhouse, aboard the Pavilion Queen in the harbor at Newport Beach, Ca., and, after a tour of restored Old Los Angeles, in the architecturally brilliant Bradbury Building.

We're looking forward to our second decade of good fun and fellowship. The present year is already off to a good start.

Chgter

R*crt King

Robert Sherratt

B.ichard Lapin

Past Presidents

Ken Tinckler

Ken Tinckler

Jack Havens

Woodruff Toal

Bob Shenatt

Jerry Lapin

Gale Daueherw

Ed Slattei

Wally Atkinson

Jim Summerlin

Bob Wall

Craig Kincaid

Past Vice

Custom Reman Ufactu Ring

Prompt service, quality, and a desire to please is our business. Call us for your custom milling requirements.

MAJESTIC TREES of Harwood Grove, Branscomb, Ca., provided shade and shelter for the Black Bart Hoo-Hoo barbecue, which was preceeded by trap shooting. Among the 150 attending were (top photo, l-r) Ken Osborn, Warren Lewis, Fred Littlefield, Bob Thomas. (lower photo) Dave Damon, Del Cole, Russ MacDonald, Keene Kirksey, Alvin Lyly, Jimmy Jones, president of Hoo-Hoo International, the lumbermen's fraternity, who was guest of honor. Guaranteed

Retail advertising's surefire words: Free. New. You. Only $0.00. Made to sell for $0.00. Now you can. At last.

Our aim is to fill your requirements, promptly, wi.th competitively priced quality products.

Hardwood Plywood Revtew

(Continued from page 17) particleboard core, and the lumber core. Each has advantages which make it suitable for specific applicanons.

On an individual hardwood plywood panel, veneers are matched to achieve an overall effect or design. In some cases the face veneer is matched from panel to panel. This can be done only when the cuts of veneer from a flitch are kept in sequence. This entire sequence is known as a flitch and can be specified for architectural quality hardwood plywood paneling.

Some common matches used within a panel are book match where alternating sheets are turned over as are leaves of a book; slip match with each veneer sheet placed side by side with the next sheet: center match with the veneer sheets trimmed and matched from the center to the outside; balance match with sheets clipped to an equal width for each panel; designs with patterns such as diamond, herringbone or V created by placing the grain at angles; and random match which is a deliberate mismatch.

There are four standard grades of hardwood plywood. In premium grade (A), the veneer must be bookmatched or slip-matched for both color and grain. There can be only a few small burls, pin knots, color streaks, or patches. Good grade (l) is similar to premium except specific matching is not required. Sound grade (2) need not be matched for grain or color although it must be free of open defects and provide a smooth surface. Utility grade (3) permits open defects with knotholes up to l" in diameter, wormholes and splits not exceeding 3lta" wide nor half fte length of the panel. Backing grade (4) is similar to utility grade except larger open defects are permitted, knotholes up to 3" and splits up to l" wide.

An addition to the schedule, character-grade is expected to expand the aesthetic possibilities for the design of furniture within this decade. The idea which originated in wall panel products encompasses different veneer segments to produce a chain of distinctive designs rather than a repetitive pattern.

The selection of character-grade at present requires close communication between the supplier and user, but it is anticipated that custom char- acter-grades will evolve to increase the number of visual effects. serving the west since 1950. We invite you to utilize our automatic lumber stacker.

Curved or molded plywood comprises one of the most unique hardwood plywood products. Valuable in furniture manufacturing, curved plywood products are used for items such as sofa frames, chair legs, bow drawer fronts, and body form seats. The plywood industry also can stain the wood to provide any color or combination of color as well as shape.

In addition to providing specific cores, grades, forms, and colors, some manufacturers in the industry also are able to produce cut-to-size material. Utilized by the furniture and cabinet industries, a variety of special cuts are available.

Well over a hundred commerical wood species are available in hardwood pfywood. Various figures ranging from an exotic appearance to a subdued, subtle pattern are seen in color tones of light, medium, and dark.

Of practical value are fire retardance qualities satisfying safety standards and building codes. Quality control and product standards maintained by the Hardwood Plywood Manufacturers Association ensure product performance.

For your additional convenience we are rail served.

HARD HATS were obligatory when Woodwork Institute of California board of directors met at Cottaoe Grove. 0r. (11 Part of the group on b-us for tour to the Weyerhaeuser Co.'s small log sawmill and glu lam plant. A second tour went

Water-Borne Salt

CCA Twe A GrapeStakes

Posts & Poles

a new sefvice-oriented wholesalef

LeBeck Forest Products is a specialist in redwood.

Our contacts and sources can get you the redwood items and products you need. Our experience in redwood is a plus for you in finding those hard-to-get items,

In addition to redwood, we can supply your needs in Douglas Fir, Particleboard and Plywood. (7O7) 542-0E20 Dave leBeck

U.S. HARDWOOD EXPORTS

(Continued from page 15) include Spain which is also important. First we talk about hardwood lumber. The EC now imports about 27Vo of its total consumption. And this dependence on other nations is growing. About half of Europe's lumber imports are temperate woods, oak, maple, cherry, the products we are familiar with here in North America. Temperate woods come partially from countries within the EC itself. France and Germany are the big suppliers. In addition the EC buys from Yugoslavia, the U.S. and Canada. Tropical hardwoods account for the other half of Europe's imported lumber, mainly from Malaysia and other Southeast Asian Counnies.

The U.S. share of the European import market for hardwood lumber is still small, about 5Vo of all hardwood lumber imports. However five years ago we had less than 1.57o. These figures only include U.S. direct shipments. A sizeable amount of lumber is shipped each year through Canada out of the port of Montreal, because of its lower handling and shipping rates compared to U.S. ports.

Looking at specific countries, the U.S. has made its greatest gains in West Germany where market position has increased from 2Vo to 1Vo in the last four years. Penetration in Belgium increased from l.S%o to 5Vo during that period and our position doubled in Italy from lVo to 2Vo. The U.S. share of the hardwood lumber market, however, is still small when compared to the suppliers within Europe itself, Yugoslavia with l8%o, France with lS%o, and Germany with 87o in 1977 . It looks even smaller still when compared to the tropical producers, Malaysia with 25qo and Singapore, l0%o. Yet, U.S. position is not bad and it is growing!

Veneer Market

Where does the U.S. stand in the European veneer market? The veneer business is different from either lumber or logs. Based on total veneer statistics (virtually all hardwood), European imports are more than 3/q temperate, with only r/e tropical woods. Also in contrast to other hardwood products, the U.S. dominates the import picture, with a whopping 55Vo of the total veneer market. Right in their own backyard, the biggest European producers, Germany, France, and Belgium, only garner 5 to 6Vo each. The major tropical sup- pliers, the Congo and the Ivory Coast, also only pick up 6Vo apiece.

The major market for veneer is Germany, which is not only an exporter but is Europe's largest importer. Germany's consumption is three times larger than any country except Italy. The other major importers include France. the UK. and the Netherlands. The U.S. does exceedingly well in Germany, shipping more than 607o of its imports. And it looks good in the other major markets with a l0 to 3OVo share in all countries except France, where it only has 2Vo.

Now let's discuss species. We all know that Europe likes oak. About 6OVo of the lumber, logs, and veneer shipped is oak. It used to be mostly white oak, for that's what the European forest primarily have and that's what Europeans like. But as companies and organizations, like the National Lumber Exporters Association, have worked to teach European furniture manufacturers how to finish red oak to look like white, the market is demanding more and more of that species. For example, of the oak shipped today, 76Vo of the lumber, 4OVo of the logs andSvo of the veneer is now red oak. That's a significant change from l0 years ago.

The oak market is particularly hot for American producers now. That is, it's hot if we disreeard the effects of the recession that"is creeping over Europe as it is here. Oak is active for several reasons!

First, U.S. oak is becoming increasingly competitive to not only European domestic oak but tropical woods as well. Second. the basic market for oak-that is, year to year usage-is already very large. On top of this basic market the fashion in furniture has been trending increasingly toward oak for the last 3-5 years. No one knows how long that trend will last; but it's certainly stimulating oak usage while it's here. Finally the oak wilt scare, for the last two years, has been motivating buyers of lumber and particularly logs to stock at a higher than normal levels. What complete resolution of the oak wilt issue will do to the market is also difficult to predict. Most of its effect on lumber buying is probably past but it may still be affecting log imports.

So oak is a big market; but what about other species? Frankly, good statistics are scarce on products beyond oak. Here is what we do know.

How Walnut Rates

Walnut is about ljVo of the loe and veneer market. Maple is small ii the export picture to date, about 5Vo of the logs and lumber and minimal veneer. And about half of the maple goes to Canada. Ash and hickory lumber exported equal about 7Vo of the total. We believe this to be a srowing market. Beyond those speci6s we have minimal statistics. But we do hear that there is growins demand for cherry, both lumbEr and iogs. And we know that the statistical category, exports of other hardwoods, is a fast growlng one.

An important opportunity does seem to exist for the lower srades of lumber in both oak and otheispecies. One of the major goals of the National Lumber Exporter's European program will be to promote those grades. So that market could well expand.

Let's now look at what the future holds for U.S. hardwood exports. It would seem to be very attractive! Consider hardwood lumber as an example.

Most forecasters predict U.S. domestic demand for hardwood lumber will increase about 4OVo by the year 2000. For comparison pulposes softwood lumber world import demand should also be up about 354OVo by that date. However, the product we are interested in, hardwood lumber, should be up 70Vo. European imports of hardwood lumber alone are expected to expand from 4.8 mil- lion cubic meters in 1979 to 7.1 million bv 2000.

We-haven't tried to work out forecasts of world demand for hardwood logs or veneer. But it would seem that their future srowth rates misht compare favorabiy to those for lu-"mber.

When we think of the future we should also think about the Japanese market for U.S. hardwood. We now ship only 27o of our hardwood lumber, llTo of our logs, and less than lvo of our veneer to that market. And yet that untapped country alone imports almost as much hardwood now. mainly in logs, as all the nine countries in the European Community. More importantly the Japanese import demand for hardwood lumber, for example, is expected to increase from 400,000 to 2.1 million cubic meters or by 425Vo by the year 2000. Now that is a market!

Almond ls Top Color

If you are buying appliances for your store, keep in mind that almond is the hottest color at Dresent.

White, avocado, and harvest gold are no longer in favor with the housewives of America. Almond reigns in appliances from refrigerators to mixers.

Colors usually follow a five to six year popularity cycle so almond, which has been the steadily growing favorite over the past two years, should be fashionable for another three to four years. Marketing experts explain the preference for almond and other subdued colors as an indication that "the taste of the American public is maturing."

Please call us at (707) 433-6937