TIARTTil P1YWOOD COMPANY

New Policy of 'leosing' Studied For Lumber Industry Sovings

Chicago-\\:ithin the ncxt l0 ycars, many lumber companies lvill be operating thcir plants rvith lease<l ecluipment, according to \\'illiam R. Heins in a study for tire Founclati,rn for f,Ianl agement Research. Thc sturly i-s cntitlrrl. "I-easing An<l An'rerican Inclustrv." Heins is president of Unite<l Statrs I-easing Corporation.

The r.r-rajor virtue of leasing is said to bc that it frces tvorking capital for expansion r,f sales, takirrg of all trade discounts, building balancecl inventories, exparlrlir.rs- research and clevelopment lvork, etc.

The postr,r'ar trcnd torvards expansion of procluction ancl cliversity of product, coupled u,ith a tighter rnoney nrarket, has put pressure on the rvorking capital of lurlber manufacturcrs. As a result, morc such companies are leasing ir.rstcad of brryir-rgnew ecluipment today.

. Leasing,.lleins' study said, rvill become increasingly important in industries whose ratio of fixed assets-to tangible net worth is at least 30o/o. In the lumber industry, it is 360/0.

Somc lur-nber nranufacturers, the Unitecl States Leasing Corporation presidcnt inrlicated, are even selling their plant facilities ancl equipnrent, and lcasing them back ilnrnediatelv-on a purcl-rase-leascback. Thc object here is to convr:rt fixecl assets to current assets.

.L.1r1t]g currentlv aplrears to have three appeals, the stuclv said. "First, in these clays of tig'ht n-roney, a rlanufacturer doei not have to frceze his or,r'r.r capital irr equipn.rent. Second, a r-nanufacturer does not have to \^'orry aborrt crluipment becoming obsolete. At the encl of a short-turm lease, :r c()ml)alrv can alrvavs secure the newest piece of ecluipr"nrnt or-r another iease. The leasing corporation hanrlles dispos:rl of the u.orn ectuiDrnerrt.'fhe tvpical lease todav is fr,,ni thrct.to fir'. r.car.. Tliis t'lirrrirratt.s tlre risli of obsoltscencc."

In acldition, Heins' stucly indicatecl, the ir.rflationarr. trencl of the last 10 years has fanned interest in leasing. "Conrpanics used to believe that thcy should rent real estate, but otr-n equipment and other fixed assets. lndrrstrial real estate, hou.er-er, holcls its value, ltut equipment alu'avs clepreciates. Nlanv cornpanies norv proceecl on thc theory tliat thel'ought to ouir l'hat is stable and rent the itcms n'hich clecline in value."

I-easing offers other possible aclvantages, but these are only for special situations, the study said. Sonre cor.npanies lr,hich hold a tight checkrein on capital cxpcn<liturcs, can acrluirr ncw ecluipment or facilities by leasing, u.itl.rout asking the-ltoard of directors to raise rnorc capital.

Son're companies do trnt lil.e to irrr.est in eclrripntent srrbject to rapid obsolescence. I-easing bv-passrs this probleni. I-casing also is saicl to offer some tax aclvantag.cs, brrt this is ntainly tax postponement.

Frcer copies of this stucll' 31s available front the Fonrr<lation frlr N'lar.ragernent Research, Inc., 121 \\'cst Arlarrrs Street, Chicago 3, Illinois.

NRTDA to Present Tqx Proposols lo House Woys & Meqns Committee

On Felrrrrarv 7, -fohrr H. Iilse, a ruember of the National staff, u'ill appear before the \\Iays ancl Means committee of the House of Representatives an<l nrake a numlter of recor-r-u-nendations for chauges in tlie tax lau's, reports the National Retail Lrrnrber Dealers Association.

In tl-re testirnotry to be preserrted to the comr.r.rittee, the srrbjects coverecl in the statentellt :rre as follou's:

( 1 ) Amendment to the ta-x lien larvs to reqrrire tl're governrrent to file a notice of tax lien before such lien vn,oulcl be valid as against a mechanic's lien.

(2'l 'Ihe taxation of coooeratives.

(3) A tax deductiorr {oi honre reltair arrcl inrprovements.

(4 t Gerreral irrcorrre tax relief.

Decrlers' Mqteriqls Hondling Speeded by New Portoble Romp

In.rpror.ccl efhcie.cv in lr.rn-rlrer hanrlling for. tl.r.c .retail -\ scale noclel oI the loarling ramJ) \\-:ls introdr'rcecl to Ir'.rber clealer l-ras Seen acLr.alcecl l,y a ,-rcii- t1'pical rlesign retail clealers at the 13uil<ling _l'roclrtcts l:-xposition of the for a '.rtable loacli'g r",;1rlr;;i.,"r.?l 1,1- Timber rngineEr- National Retail l,urnber I)eiLlers -\ssociatiorr. NoYember i;gti;;;p;;1r, "r-,girl".rrng afhlratc,r trre N:rtional l,irr-r-rber 1-7, in. l'hiladelphia. Consi<lerrtlrlc :Lttention n'as given the ]Ianufacturers Associatior.r. pr-rrt:rble raTg, featrrre<l in tl.re Teco ltr.roth. I)ealcrs u-ere il-re loacling rarnp -i,lilL .p..a up unlolLclir.rg of lur.r-rbcr prcsented u'ith copies of the ncn' tr-Picltl tlcsign. st.cks ir,,rn fii:ight iars u-here tlie lrrnrlrcr rlealcr h:ts:rccess Copies of the portable ramp design, No. 678, ate t, iL si<ling, ltut'ii-hose 1-ard facilities for a 1)ernraucrt_ rttmp availible on,request to lumber dealers and desig_ners .rc linritcii. The portabie rampJ positionecl at t]re freig'ht.cttr, in engineered timber from Timber Engineering Compcrmits mechanizecl loaders f., -o.-" insicle thc car lrtt<1 rc- pany, 1319 l8th St., N.W., Washington 6, D.C. nrove lutrber matcrials.

'fhe u'oocl constructecl ralllp assembles in three scctiot'rs rch s.r'1irrr c;rrr e:rsilv be liited and mt-,r-ecl bv a fork-lii ]i:rch scctiott catt easilv lle liit d mor-ecl f<.'rk-lrtt scctiotr e[!stlv lle lttted nl()\-ed DY a I()rK-ll l.ir.l.. The ramp has li stanclarcl height of fotri feet lLrrtl ieet ancl is 35'9" in lengtlr u-heu cotttpletelv assembled. lt is dcsigrrcd fc.rr nse lrv citlte. tltree or four-ivheel equipment, ar.rtl for ll maximuni total loatl of 1.5.000 1lounc1s.

Volk Elecred BCA President

The recent 3'lth :utnrral cotrvetrtion of tlie Builclirte Coutractors '\ssociatiotr at Hotel clel Coronailo there u'as zrtterrderi by 700 delegates ancl rlembers rvho electerl l-eo J. \ro1l<, Sarr Gabriel, the nen presiclerrt. \"icc-llresi<lerlts are Iolrn Krrl.rl, Paclfic Palisarles. arrtl 'l'ini 11. Ni.hols, La Canad:r. Otl'rer olhcers u'ili bc \\'arrerr J-. Hanlty, Covina, treasttrer, artd Ii. ,l llourgrrigr"ron, E,rtciuo, secretarr'.

The California contractors took actiorl airrrctl at rrninterrupted activity irr tlie state's lruil<ling progranrs arxl exanrinecl lubo. llegotiatiolls. 'l-lle llCr\ itt.."nsed its rnembership last 1'ear to include nrore than 1500 builders in 11 Southern Califonria cottuties. It alreadv rvas the latgcst such regional organization in the U. S.

New Wood Lumber Co. BuYs E. K. Wood Yqrd qt Thermcrl

Inclio. Calif.-The lr. Ii. \\'ood l-rrn'rller Co. varcl at Therual. Calif.. has lteen solrl to the \\'ciod I-rrnrl;er Co.. \\'hittier, Calif., r,vhich u'ill continrre the reta'il var<l rttlcler tltat tleu' compan\' llanre. \\'ilbrrr Place, u'ho has lleen rvith il-re frrnr 23 r'ears, retn:ritts as lttallager ancl saicl there u'orrlil be tro clratrge itr persotluel or policies. The 1'arcl is the \-alley's ol<lest ltttrrber cor.r.rpatn-. here 30 t'ears of the ol<1 pareltt firrrr's o\\'11 oJ Years.

Nqfionql City Adopts New lumber Groding Ordinqnces

San Diego.--National Cit)'. Calif., has a<lc4rtetl tlie lunrber-graciing orclinauces along n'ith this cit."' ancl Carlsl-racl, Calif .. effective Jattttarr' .3, relrorts \'. I'I. Capesitts. tnauager of the San I)iego I-r.rnrbernrett's '\ssn. At the saure tin're. thc city has changecl its builcling permit fees.

Weinhold Heqds L.A.R.B.

H. ll. \\-eiuholcl, I-os Angeles tealtor, r,as elected pre siderrt of thc Los Angeles Realty Iloard at the annu:Ll rlirectors nreeting. Its tnembership of 1.,853 nral<es it the largest .such real estate organizatiotr itr the u'orld. l-arl S. Alrderson \\'as re-elected secretar\'.

(Tell tlrcnt you saw it in T lte C alif ornia Ltr,mb er M erchant )

"lteople, I'rofits ar-rci You" is a ueu' 2(r-rrrirrtttc lllm prorlucecl lrr-the llureau oi -\dt'ertising of the,\trlerican Nen-su:uicr- l'rrblisirers Assn. and availallle for clull shou-ings thi,,ugh rcgioriai ofhces it.t l,os Angclcs aucl Sarr t' r:t1t cl sc( ).