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SOtD EXCTUSIVETY THROUGH TUMBER DEAIER5

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"It is true that'those transg:ressing: into the functions of an importer will eventually learn that our function is not for the novice. We are specialists. Ilowever, until this function and the costs and the risks are clearly brought homd to earth through financial losses, by the novice speculator, the resultant disturbances in the market caused by this will continue.

"Today's channels of distribution have been efrective in creating the markets for our products. These channels of distribution are correct. Our association is not alon'e in facing problems where disruptions of these channels are causing or adding to the chaos in the market. I invite you all to review carefully the Douglas F ir Plywood producers' activities in studying and attempting to understand the necessity for olderly distribution.

"Work during the coming year will require effort by each of us and even more effort by your Directors and Executive Committee. If we did not believe that we would have some measure of success, we.would be ridiculous. How much success, though, depends on us all. We certainly have no intention of entering any field restricting fair competition. On the other hand, I repeat there are tremendous areas where uniform action is not only desirable but essential."

Charlie Schmitt, retiring President, then reviewed activities and accomplishments of the association's past year, which included delegations headed by Schmitt to both Tokyo and Washington, D.C., to discuss problems of the industry. Through the Tokyo meeting, Schmitt reported that a number of substantial changes had been made to reduce supply and price fluctuations, and to bring the supply of imported plywood into line with consumer demand. Schmitt was accompanied on his trip to Tokyo by James R. Sharp --Washington, D.C. counsel for IHPA.

Hans Rainer accompanied Schmitt to the Washington conference, called by the Department of Commerce, for importers, manufacturers, and members of the domestic industry. Mutual problems were discussed-with a task force of representatives of importers, domestic manufacturers, and users being established to meet from time to time to submit recommendations to the government. It was announced at this meeting that the government would undertake to conduct surveys to furnish all elements of the industry with the latest statistical information, to better coordinate the supply of hardwood plpvood to consumer demand.

Eric Wagner, reporting for all standing committees, outlined the association's committee activities, and accomplishments, which included a standard claims procedure giving uniformity in claims, the initiation of the surplus stock reporting system which helped guide enormous quantities of otherwise distressed material to the market place, and assisted the importer in supplying the immediate needs of his customers, and the successful establishment of IHPA's credit reporting system.

Wagner also reported the activities of the Ocean Freight Committee---the fruits of this committee's activities being demonstrated in the recently announced revision of Overland Common Point (OCP) regulations.

Recommendations for uniform designation of species was pre- sented by John Osgood to clarify and correct tfre misuse of the terms "Lauanr" and "Philippine Mahogany." George Scrim, of the Philippine Mahogany Association, gave a, short talk on this.

Wag'aler reported that the IHPA gradlng committee had sent to the Japanese associations a number of recommendations regard- ing needed grading and inspection requirements and revisions which had been reported by both the user industries and importers.

Heading this list in importance was the recommendation that the Japanese Govenrment conform to U.S. Commercial Standards, particularly with regard to the face veneer thickness of doorskins. These recommendations are now under consideration by the Japanese.

The Research Committee, according to Wagner, had issued a number of doorskin and panel surveys among the American users, the results of which were forwarded to the foreign suppliers as a means of estimating production requirements.

The Uniform Sales Contract Committee presented to the membership a proposed sales contract which had been under study for over a year-the membership to vote upon this proposal next March.

As a new innovation at this convention, a number of grrest speakers were invited.

James Nolan, Assistant Secretary of the Nationril Woodwork Manufacturers Association, coming from Chicago, spoke on the NWMA's l{ardwood Door Program.

F red Smales, Vice President of the United States Plywood Corporation, talked on the relationship of plJrwood imports to the distributor. Highlighting this inspirational talk that developed the history of plywood imports, he quoted Tony Antoville, Chairman of the Board of United States Pl5rwood Corporation, in a speech made before a combined meeting gf the National Plywood Distributors Association and the Hardwood Plywood fnstitute in New York last March as saying, "Another item that has, without any ques- tion, contributed greatly to the broadening of this market of plywood paneling in the home has been the importance of increasingly large quantities of hardwood plywood from various parts of the world."

Smales concluded his remarks by stressing the requirement that IHPA diligently and effectively apply itself to the constructive, dynamic and creative type of promotion through which new markets and broader applications of imported pl5rwood can be achieved. "This certainly," he said, "should be one of the over-riding objectives of a group such ag this, It should be positive and not defensive."

Ned Glad, member of the legal firm of Lawrence and Tuttle in Los Angeles, analyzed the problems of reappraisement, giving tJre delegates a resume of the present status of this area of import activities.

Robert J. Weston, General Manager, The Bellwood Company, spoke provocatively on the subject "How Many Doors?"--outlining difrculties of the door manufacturer. Instability of prices was cited as one of the biggest headaches.

Mahlon Munson, Managing Director of the National Plywood Distributors Association, said, "The distributor does not want to be a speculator. This is what is forced upon him when there are wide fluctuations in prices." Munson also emphasized the services performed by the distributor in promotion a^nd inventory. "Circumvention of normal distribution charnels," he said, "not only disrupts the market, but eventually causes the consumer to turn to other products."

(Conknueil