Western Lumber a Building Materials

formrrly CAI'lfOlNlA lUMaEl l'tEtCHANT ' llerchondising ond Ncws lcoder sincc 1922 tl0vEMBER 1972 Y0tuME 5l' t{0. 5 l|||||l||||il|nli|l||||l|||||||mm|i||||ll||||ll|ll||lMAJ0R1{E|TsandFEATUREs

VIEW FROM THE TOP: KITAY OF SUNSET INDUSTRIES

THE NATIONAL ASSN. OF DEALERS MEETS IN SEATTLE

ARMSTRONG STAGES CEILING SELLING SESSION IN S.F.

PRICE, PROFITS, SUPPLY AND DEMAND PROBLEMS CONTINUE

NEW PARTICLEBOARD PLANT IS ONE OF USA,S FINEST

CONVENTION TIME FOR LUMBER ASSN. OF SO. CALIF.

H. A. ROBERTS NAMED THE NEW EXE.C. VP. OF THE WWPA

CRA SELECTS LEO HULETT AS ITS NEW PRESIDENT

PHOENIX's

LUMBDR BEGINS MAJOR EXPANSION

WATCI{ DESIGNATIONS ON YOUR R'R. FREIGHT BILLINGS STANDARD STRUCTURES MOVING TO ENLARGED F"AOILITY

PRICE COMMISSION HEARS HARDWOOD PRICE APPEAL

DARRBLL SCHROE]DER IS ELECTED NEW PRESIDENT OF RIS

Publlrhot A. D. BeU, Jr.

Edttor Davld Cutler

Contrlbutlnc Edltot Dwlght Curran

Advortl.lnCProductlon Mgr. Marsha Kellev Clrculatlon M-s. Davld Hamll

DDITORIAI O.rFICES

WESTERN LUMBER & BUILDING

MATERIALS MERCHAIYT IS PUblished monthlv at 673 So. LoBo Ave.. P&saalen8, Ca. 01101, Phono (218i ?02-EO28 0r (2lE) ?01-109t bv Callfornla Lumber Merchant, Iirc. Second-class postage rates pald at Pasadena, Ca:, and addltlonal offlces. Advertlslng rates upon request.

ADIrERTISING O.rFTCES

NORTIIDBN CAIITONNIA & PACIFIC NOBTIIWEST itrerrv Holtz. 580 Market St.' #400, San Fraricisco 941(X. Phone (415) 392-3365.

SAII T'RAIiTCISCO BIIJING OFFICE 2030 Union St., San Franclsco, Ca. 94123. Phone (415) 346-6fi)0.

SOUTIIEBN CAIIFONNIA

Corl Vann. 1385 Westwood Blvd., Los Anseles, Ca. 9OU24. Phone (273) 417-7593.

MOUNTAIN STATES trrank L. BeckEt€od Astoclstos' (Denver) 3505 MlUer Court, Whe&t Ridge, Colorado 80033. Phone (303) 42r-2692. NEW IONT Bt[lns.le& & Flcke, Inc., 13? East 36th St,. New York, N.Y.' 10016. Phone (2l2\ 532-1632.

Subscrittions

Chonse of Addro.r-Send subtcrlp' tion 6rders and addrest changeg to Clrculatlon DeDt., Wettern Lumber & Bulldtns Materlalg Merchant' 5?3 So. La*e Ave., Pasadena, Ca. 91101. Incrude address label lrom recent lssue ll posslble, PluE new address and zlp coale' subicrlDtlon Botor-U.S.' Canada' Mexlco-and Latln Amerlca: lD5'one vear: $8-two vears; $l0-thlee irear!. Overseas: S6-one year; ltg- two vears. Slngle coples 60r. Back copleil $1.0O when avallable.

IHE MERGHAIIT is an independent mogozine, for the lumber anil build'ing mate' riale ilnduetrg in the lE Westent atates, aonaentrating on tnetahanditing, rnanogernent ortd' accurate, factuol newc,

NEIY SERVICE by Lee Lurnber Haul'ingFlat car unl'oad'ing and d'el,hteryt by buck to ltoar d,estination , , , Lee spur ff4960' Soutbern Pacific R,R, at Los Alanitos,Calif , Limited' storage aaailable,

Our distribution centers offer that something more. Service.

Friendly dependable service, backed by quality products. The products you need . . when and where you need them the most.

We handle all the basic grades, sizes and species, plus millwork and mouldings, plywood and particleboardand a full range of specialty products.

So give us a call. We'll show you why there's more to lumber than a grade stamp.

You Con't Fool Mother Nolure

THE various segments of the lumber and plyr wood business have come in for an unprecedented amount of flack in the last six weeks. some of it the result of uninformed criticism and some of it as a result of unsuccessful government meddling in the time honored supply/ demand phase of lumber and plywood sales and distribution. (For a related, story, see page 17 ol this i.ssuc.)

The government, while diminishing the supply available from the National Forests on one hand, has on the other hand criticized the industry severely regarding prices through highly placed spokesmen from cabinet officers on down. Builders, whose unprecedented rate of building has created record demand at a time of shon supply of raw material, seem unable or unwilling to realize their function in the situation and roundlS and inaccurately, lash out at lumbermen as the main reason for the increase in the price of homes.

National Forest Products Assn. economist'Dr. John Muench, Jr., noting stepped up federal probes into reasons for soaring lumber prices, observes that extended surveillance bv the IRS and Justice Depa.runent may identiiy a few wrongdoers, but punishment of the few ofienders will not reduce average lumber and plywood prices.

lluench pointed out that high prices directly reflected unprecedented demand for wood build- ing materials to meet national housing requirements. "While the industry has been operating at peak levels in recent months, it now appears that the price control system is a disincentive to maintaining or exceeding those levels. The eco. nomic control system, in fact, may be having an adverse efrect on production of wood products and thus is not achieving the result intended."

In this he echoes a widely held view in the industry that the best way to reduce prices is to remove the controls and let natural market factors go to work. It is also a view that is sub. stantiated by a number of reputable economists.

Figures recently released by the Bureau of Labor Statistics show the actual rise in lumber prices at three.tenths of one percent in September. This conformed exacdy with the average rise for a broad range of wholesale food, industrial raw materials and manufactured products. The report said that farm products, processed foods and feeds rose six-tenths of one perc€nt during the month. Lumber wholesale prices were 10.6 percent higher than a year ago.

No one is saying prices haven't risen dramatically, obviously they have. But the barrage of ill-founded criticism and the obviously ineffective price controls have been counterproductive, to say the least, as a call to your local wholesaler will quickly prove.

It's time to return lumber and plywood to market control of prices and let tJre Price Commission devote its energies to fields that have proven more amenable to its ministrations.