THE CALIFOR}.IIA LUMBERMERCHANT

HowLumber Looks

The de_pressed lumber market showed booming signs of coming back to life as 1956 neared its end. For the first lime in manv rnonths, orders l'ere steadily above production for most speciei. Fir lumber orders climbed 16/o above output, western pini mill orders.w_e^re_ nearly, 20/o above production, ind' fir plywood orclers zoomed l0/o ahead of the mills' output. A nurnber bI- lumber mills had been shut down temporarilf in recent weeks as the soft market and poor weather discouraged production.

Orclers of 460 -ill, ,.porti,rg to the National Lumber Trade Barometer in the week ending Decenrber 15 were 11.6/o above pro- duction, while shipments were 3.SVo below and unfilled orders were 28/o.of stocks. Shipments were 8.6/o and orders 13J/o above the previous week ended Dec. 8 National production of lumber totaled_3,403,m0,000 board feet during October, estimated.the National Lumber Manufacturers Assn. Tl.ris was dVo ^bou. September but l/o below October 195.5. 'I'otal shipments in October were 1O/o above September but 7% below October 195.5. Orders durine October were 70/o above September but almost the same as thi 19.55 mon_th. During October, shipments antl orders were 7/o less tlran production. For the first 10 months of 1956, an estimated na- tional production of 32,020,000,000 b.f. of lumber was 37o below the similar 1955 period., Both shipments and new orders in the span were 3/o less than the 1955 output. Gross mill stocks on Oct. 31 were 9,497,000,000 b.f., up 3% from September's end and TlVo above the level of the 1955 date.

West Coast Lumbermen's Assn. reported orders of 124.151.176 fee-t we-re- l3.O/o above production of 109,828,683 at 170 reporiing operating) in.the week ending Dec. 15. Shipments oT l-04,473,650 feet were 4.9/o und,er production . . . Reporting Douglas !5 region sawmill _production, orders and shipments for Novem6er, Harris E. Smlqh,_!VCLA, said the weekly average of lumber pro- cluction was,]72,,873,000 b.f. or 93.2/o ot the 1951-55 average; orders averaged 155,251,000 b.f., and shipments 164,715,000 b.f. The l1 months of 1956 cumulative production was 4@,000.00O b.f. below the similar 19-55 span. The industry's unfilled order'file at the end of November stood at 536,539,000 b.f., gross stocks 1,01b,601,000 b.f.

Western Pine Assn. reportea o.der. of 73,868,000 feet were 19.37o above production of 61,941,000 feet at 95 mills in the week endine Dec. 15. Orders were 23.5/o above shipments of 59,788,000 feel Orders were 74.1/o above the previous week endecl Dec. 8, the week

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L. A. County I l -Monrhs Building Tops

Sqme 1955 Spon by $3O Millions

Building'permit valuations in Los Angeles county for 1956's first 11 months totaled $1,227,927,600, an increase of $30,646,200 over the same 1955 span, reported the Los Angeles Chamber of Commerce on December 7. The Chamber's Research department compiled figures showing building permits totaled $99,786,600 in the county during November, of which $42,204,80A came from the city of Los Angeles, $26,526,4N in the unincorporated areas, and $31,055,400 in 40 county-wide cities.

The number of neu' dwelling units for November 1956 showed an increase of 51.3/o over the same 1955 month, while the total drvelling units for the year decreased 8/c under 1955 in the 1l-months span.

Construction of 45,515 single-dr,velling units in Los Angeles county in the first 11 months of 1956 \vas a 147% drop from the 53,374 of 1955's first 11 months. Construction of duplex and multiple du,elling units, horvever, was running 9.2/" ahead of 1955-22,638 compared to 20,731.

A larger numbers of cities experienced residential brrilding above the million dollar-figure during Novetnber tharr in preceding months. Glendale passed the million-dollar mark, as did Arcadia, El Monte, Pasadena, Pomona, West Covina, Torrance, Beverly Hills, Santa Monica, and Lotrg Beach. The latter city topped all cities, exclucling Los Angeles, in home building rvith a figure of $4,047,5@.

Twelve county-wide cities ancl unincorporated areas also accounted for residential building-permit valuations in excess of $1,000,000 during November. These rvere Lancaster, Palmdale, Temple City, Puente, San Dimas, Bellflower, Dorvney, Norrvalk, South Whittier, Lennox-Lawndale, Lomita-Palos Verdes Hills and \\rest Hollyrvood. Of these, Lomita-Palos Verdes Hills ranked first with a figure of $4,t47 3m. '

FHA lncreoses lnteresi R.qte lo 5o/o

The following is a copy of FHA's press release, dated December 1, 1956, relative to the increase of FHA interest rate. This is one of the steps aimed at improving the mortgage money situation that the NRLDA has been urging the Administration to take for some months. The action is first step that has been taken to improve the mortgage money situation in 7957 :

A decisive step to help home buyers obtain mortgage financing was taken today 'i'vith the announcement that the interest rate on FHA-insured home mortgages would be raised to 5 percent. The announcement was made jointly by Albert M. Cole, Administrator of the Housing and Home Finance Agency, and Norman P. Mason, Commissioner of the Federal Housing Administration' The step will be effective Tuesday, December 4.

"The importance of this change is many fold," Mr. Cole said. "Primarily we are thinking in terms of people. People in America want to buy homes and this will assist them to get the financing they need. We cannot afford to let the vital housing portion of our economic life dwindle to a point that jeopardizes our productive capacity and threatens the jobs of many thousands of people throughout the country working in the home building industry."

And ROCKPOR,T Redwood Go., Too!

In the Philip T. Farnsworth bylincd article appearing in the December 1 issue, headed "C.R.A.-Good Citizen of the Redwood Region," the name of Rockport Redwoocl Company was omitted from the list of CRA men-rber mills in long- and good-standing, in the copy of Nlr. Farnsworth's talk released by the association. The MERCHANT lTerewith gladly corrects that unintencled oversight at the suggestion of the California Redu'ootl Association.

Mr. Mason emphasized that this step is an irnportant one because the builders and lenders are making plans for the year ahead. "For this reason," he said, "rve are acting immediately to help provide an adequate florv of savings into the home mortgage market."

Along rvith the one-half percent increase on home mortgages, Commissioner Mason announced that the rate on FHA multifamily mortgage loans u'ould be increased from 4 l/4 to 4f percent The rate for all ttrltan renern'-al and rehabilitation programs rvas increased to 5 percent.

The FHA Commissioner said the nen' rates can, upon the lender's request, be made effective on applications for m()rtgage insurarrce nolv in process at any point up to final endorsement for insurance. The rate on existing mortgages will not be afiected by the change.

ICC Gronfs Eostern' Western Roilroods Emergency Freight Rote lncreqse

The Interstate Commerce Commission on December 17 approved an emergency freight rate increase ol 7/o in Eastern territory, 5% in \Vestern territory, and 5/o interterritorially betu'een eastern, western and southern territories, u'ith certain "hold-downs" and exceptions. The railroads had requested a 7/o increase for both Tiastern and Western roads.

The "hold-downs" approved by the Commission include lumber 6 cents per 100 pounds, and millwork 7 cents per 100 pounds.

The Commission postponed the hearing on the {reight rate increase ol 7/o proposed by the southern territory railroads until January 7, 1957. The emergency increase of 7/o requested by the railroads is in adclition t<t the l|/a increase proposed and upon u'hich the hearings have not yet been held.

According to reliable sotlrces, the rterv rates w'ere to go into effect about Decen'iter 26, reporterl the National Retail Lumber Dealers Association.

Approve Sorqtogq School Plqns

Preliminary plans for an elementary school in Saratoga (Santa Clara County), California, will be prepared with an advance of $7800 approved by Commissioner John C. H.azeltine of the Community Facilities Administration. The net' school, to cost an estimated $466,200, is needed to serve a school district that has almost doubled in population in the last six years. Construction is expected to start early this year.