Western Pine Association Annual Meeting

San Francisco, Feb. h-"Dangerous" g'overnment home loan policies and political pressure

'ivere charged this morning by S. V. Fullaway, Ir., secretary-manager of the Western Pine Association, with a major share of blame in skyrocketing building costs,

Homer B. Jcmison

sword to do battle for the The result, he said, has {or new homes.

Speaking before the association's annual one-day members' meeting at the Palace hotel, Mr. Fullaway said that with the end of the war politicians of both parties "some sincere and some not so sincere, have taken up the veteran and the underprivileged." been an unorecedented demand

"I do not mean to infer." he said. "that a real need for the prompt construction of a large number of housing units does not exist. It does exist, but the need is not so urgent that every citizen who feels the desire for a nerv home should have that home norv.

"However, hope for such a miracle has been inspired by our government in Washington and this, with the dangerous easy home loan policy of that government', has created a demand for building materials which the tremendous available capacity of industry could not have met even though there had occurred no governmental tinkering with the economic machine."

The demand, he said, has been answered by a recordshattering estimated 6-sl billion board feet production for 1947 in the mills of the Western Pine region. But, the Portland lumberman pointed out, the cost of such'a phenomenal production has been higher prices.

"Substantial increases in lumber production are accourplished only when the number of productive units is increased. Such increase in productive units, and hence output, is dependent upon rising prices." Higher price levels, he said, attract new, high-cost and marginal mills into production when otherrvise they could not operate successfully.

Mr. Fullaway said that housing publicity has greatly exaggerated the effect of present lumber prices upon housing costs. "It is generally accepted," he pointed out, "that the average. home requires less than 10,000 board feet of lumber. Any change in the cost of lumber will account for only a very small part of the difference between present and prewar housing costs."

He foresaw no relief from high costs of housing "unless the present federal administration is willing to substantially curtail the demand by contracting creditwhich it is not in an election year." He also cited present wage levels, current labor efficiency, increased transportation charges and inflated stumpage prices as factors contributing to present lumber costs.

Mr. Fullalvay's address followed a review by Homer B. Jamison, head of the Byles-Jamison Lumber Company at Fresno, Calif., and president of the Pine association, of the group's activities during the past year. He reported the Western Pine industry's production exceeded that of 1946 by a half-billion feet and that the association showed a net gain of 51 members for 1947, bringing the total to 216 companies and 229 mills.

Timber supply in the lZ-state Western Pine region was reported by Mr. Jamison at 500 billion board feet of softlvood sawtimber. Current annual growth in the area is in excess of four billion feet. Average annual cut is 4.8 billion.

"This rate of growth," he reported, "will be accelerated as stagnant primeval forests are harvested and replaced by thrifty grorving forests and more intensive forest practices are applied. This annual growth might well reach eight billion board feet within 100 years."

The past year added 20 new Western Pine Tree Farms, comprising 125,000 acres, Mr. Jamison said. There are now 2,548,000 acres under cultivation in the region.

Reporting on factors working to balance the lumber supply and demand, W. E. Griffee, assistant to Mr. Fullaway, listed increased production of lumber, inroads of competing materials and a reduction in the effective demand.

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"Newer and smaller mills," he said, "are really responsible for the huge increase in our production. It can't be said that the industry isn't doing its best to get out the heavy production that will supply its customers and bring prices back into line."

Citing the production of competing building materials, Mr. Griffee warned Association members that "their highly mechanized production will be tough competition to meet when the market turns." He noted that while lumber production nationally is up one-third over 1939, plywood is up two-thirds and gypsum board shipments have quintupled.

Mr. Griffee saw little likelihood of a serious recession in home building developing this year. "IJndoubtedly" he remarked, "the high cost of construction is priciirg many potential buyers out of the market. However, it cannot be said, at least so far as lumber is concerned, that high prices have reduced consumption."

He pointed out that this is an election year and the government "seems certain to provide plenty of mortgage money for those rvho can't get enough from private lenders. The administration is already willing to offer $40 per vote and Republicans want to make good fellows of themselves, too. Neither wants more than a little deflation between now and next November."

R. A. Colgan, Jr., executive vice president of the National Lumber Manufacturers Association, made a report on the Association's progress, and explained in some detail the work of the National Affairs Department.

A. J. Glassow, N.L.M.A. president, in a brief talk ex- pressed appreciation for the support that the Western Pine Association is giving to the National Association.

W. S. Kennon, chairman of the promotion committee introduced Joe Sherar, who has succeeded N. L' Cary as head of the advertising and promotion department, and his assistant, Bob Leonard.

Standing committee reports were made as follows: Forest Conservation, J. F. Dagget; Grading, Clarence Crowley; Promotion, W. S. Kennon; Research, Larty Pugh; Statistical, H. F. Root; Traffic, Raymond H. Berry.

President Homer B. Jamison presided at the general meeting on FridaY.

The officers were all re-elected at the meeting of the Association's Board of Directors in the afternoon. These are :

Homer B. Jamison, Byles-Jamison Lumber Co', Fresno, president; A. J. Glassow, Brooks-Scanlon, Inc., Bend, Oregon, and Percy V. Burke, Sacramento Box Co., Sacramento, vice presidents; A. C' Lighthall, Oregon Lumber Co., Baker, Oregon, treasurer.

Directors-at-large re-elected were: C. L' Billings, Potlach Forests, fnc., Lewiston, Idaho, and James P' Hennessy, McCloud River Lttmber Co., McCloud, Calif' Alternites elected were J. M' Brown, SpQkane, Wash', and Truman Collins, Collins Pine Co., Chester, Calif'

Directors re-elected were the following: A' J' Stange, Enterprise, Oregon; J. M. Brown, Spokane; J' F' Coleman, Kinzua, Oregon, R. R. Macartney, Klamath Falls, Oregon. New directors elected: Swift Berry, Camino, Calif., and C. L. Billings, Lewiston, Idaho'

N.L.M.A. Executive Committee member I{omer B' Jamison, Fresno.