Stop, Look and Listen

S. V. Fullaway, tr., Secretary-Manager, Vestern Pine Ascociation

Annual Meeting, San Francirco, February 28, 1947

Most business men undoubtedly sense that they are today operating in what might be termed an animated economic atmosphere. There exists a feeling of buoyancy. Demand is at peak levels. Prices are up. Profits are satisfactory despite high costs. Nevertheless, when there is time in these busy days for reflection, a majority of those responsible for management must experience some misgivings. There is probably doubt as to the basic soundness of the present situation. There is probably uncertainty about the future.

A sane analysis of current conditions should not inspire hysteria. Rather it should bring an awareness of possible later difficulties and a resolution to minimize these by the adoption now of intelligent policies and practices designed to build for the future.

Our particular interest is the Western Pine industry. It has just passed through six years of very abnormal economic conditions. For the first time in a decade, there was a good lumber demand in 1940. This was accelerated during 1941 Then came the War, OPA, and federal control of practically all pl,ases of the lumber business. The laws of supply and demand were replaced by a regulated economy.

Lumber demand continued to expand but the producer had lost the control of his business. Federal dictation, rather than collective bargaining, governed wages and other labor relations. Because of this, management has little or no control of costs. Unrealistic OPA policy and administration upset normal price relationships, retarded pro- duction, and completely disrupted the usual methods of distribution. The resultant situation was not improved by the few who, in any industry, are willing to turn such an opportunity to their own temporary self interest.

Such were the background conditions when the'War ended and when later price and wage controls were finally abandoned. It was such conditions and the continued abnormal lumber demand which have operated against full use by the industry of the present opportuqity to return to a sound basis of doing business. There has not existed the actual necessity which would compel the reduction of costs, the improvement of product quality, the re-establishment of logical distribution channels, the building of customer goodwill, and the promotion of wider public acceptance of the product. Necessity is the incentive required to bring lW/o efr.ort by any industry in a program of this kind. Failure to do these things invites, as an immediate effect, customer resistance and reduction in demand and, as an ultimate efiect, permanent loss of markets to other products.

It should be stated for the record that, under the conditions resulting from the 'War, from artificial control$ and from the unprecedented lumber demand, the Western. Pine industry, as a whole, has turned in a remarkable performance. It has produced a tremendous volume of needed lumber under most severe handicaps. It has continued in large measure to ship a quality product despite the very real temptations of sellers market. It has attempted to take care of its regular customers. It has not lost sight of the future but has maintained real interest in forest conservation, in research, and in trade promotion.

However, there are obviously some wounds to heal; some fences to mend. No matter what the arguments, lumber prices must be r,rrithin reason. For the best interest of the industry in the future, more attention can be given to the quality of the product. There should be more deliberate efiorts to cultivate customer good will. Sound methods of distribution should be developed for the years ahead' (Continued on Page 24)

Penberthy

Offcrs you Service

NORTHERN - SOUTHERN - FOREIGN

H.A.R.D.lllr.0.0.D.s AND ALL VESTERN

S.O.F.T.IilI.O.O.D.S

?ENBERTHY TUMBER (0.

Lor Angclo 11

58@ South Boyle Avc.- Phonc Klmbell Sttl

For ltodcst Gobln or flncst Homc

The Ncw, lmptoved

FTR.TEX F.T..SO SHOWER CABINET

Froailet

Permonenl

Attrocllve

BATHINO FACITITIES

.4t {"* Cofi!

o llodo of Hrovy Alurninunr. Hor Non.€orrorivo Stainlor trrol lor o tinpliftrd Dorign, Gompbtrty Profobricotrd, Eolt tc Arlrnblo o Gont Fully Equippod wllh Floor, Showor Hrcd, Fixturcr, Curtoin

Arr*or,"orELY 32"x32"x75" in .lrzc. . ruitqblc for moin or ouxltiory borhlng foclliricr . thc F.T.'5O SHOWER CABINEI ir llght in wcighr, yct ro rfrong ond duroblc in conrlruclion il mqkcr o firm, rlgid, pcrmoncnt Inrtollqtlon with o lifctirnc of rcrvicc. Approvrd by Wortein Plumbing Oficiolr Arsociotion.

See Your Dealer or Contact l)lanufactutet

F|R-TEX of SOUTHERN CALIFORNIA tl2 t$h 3t tor Aqolor I

iltG0Lil DOOR SATES G|l.

Jobben ot Sl$ll, D00RS ild P[Iil00D

Thc Hourc of the MODUTAR IYI NDOW

Limitcd Stoclc Availablc

3045 l9rh Sfeer

SAN FRANCISGO IO tlrclon 79ilO

Sincc 1918

WHOLESALE DISTRIBUTORS of

Stop, Look and Listen

(Continued from Page 22) i Although practically all western pine lumber is now :seasoned before shipment, a very substantial volume of our Douglas fir, larch and white fir is still being shipped green. The continued heavy lumber demand has prevented a normal buyer's resistance to such a product. The urgency of the need sgmetimes neeans the time required for season- ing cannot be lost. In other lvords, the buyer will accept greenlumberandsotherriillscontinuetoshipit.

Greater.. €mphasis upon forest conservation, research, and trade promotion is needed.

At the annual meeting a year ago, I pointed out the factors which appear to indicate a bright, long-term outlook for the lumber industry. These were the prospective defnand, the probable level of production, and the lack of distress stumpage. But the basic soundness of the situation should not lull us into complacency. IJnreasonable prices, a poor product, loss of distribution facilities and customef ill-will could drive more business to competitive products than can all the aggressive promotion efforts in their behalf.

There is no reason to diScuss in detail most of those things which our industry must do to maintain its economic health. Th'eir need and hcrw to accomplish them should be readily apparent to you. The moisture content of our lumber should, hgwever, be given some real thought.

The Western Pine industry for many years has enjoyed an enviable reputation as to the shipping of a properly seasoned product. In fact, as a region, it has undoubtedly done the best job of seasoning in the entire lumber indus,try. It is true that our associated species-Douglas fir, ,larch and white fir-have to some extent been shipped green into certain markets. Prior to the 'War, our production of these woods was proportionirtely small, their chief 'competition was a green.product, ancl the profit margin :was-.uncertain.

,.The War created a large volume of demand for uses wftictr could take green lumber. Also, the need for lumber ,yas at times so urgent that green lumber was specified fi,vhere dry stock actually should have been required. These ,incentives to ship green lumber were given impetus by the lSnanpower shortage. This in many cases precluded the pilftng of lumber for air seasoning and would have resulted [n actual loss of production unless the product was shipped [rnseasoned.

' The necessity and desirability of shipping only thoroughly seasoned pine needs no emphasis. The excellent public acceptarice of the Western Pines has in no small measure been the result of that qu4lity. There never has been the same incentive in the case of our other woods. These do rtot stain and their principal competitois are shipped green. But these woods, like the competitive woods, do shrink and check and warp and twist. Therefore their quality can he improved by seasoning.

The 'Western Pine region has great reserve stands of these species. During the past ten years the production of these woods in our region has increased threefold, from around 500 million tci about ll billion. Although this increase has been due in a large part to the abnormal demand for lumber, the stumpage backlog means that these species will continue to make up a substantial part of the regional cut. If these woods are to be so established with the trade that a market can be retained for them when there is again real competition-and these will always be subject to more intense competition than the pines-these must be graded as accurately as the pines, manufac,tured as carefully, and of greatest importance seasoned as thoroughly. Only in this way will these'woods have the utility and adaptability which will give them a competitive advantage rvhen supply again equals or exceeds demand. :

The Western Pine industry should Stop, Look, and Listen. It should take stock of its p'resent practices: and methods. Judgment on these should be based, not on what one can get away rvith now but, on how these,arg. buildins for the future.

Appointed Scles Representative For West Oregbn Lumber Co.

H. R. (Bill) Williams has been appointed sales repre' sentative for West Oregon Lumber Co,gnpany, witf1 office at 130 Tenth street, San Francisco 3.,Telephone iffi.]rl6s1hitt 0720. ffi.ii,

Mr. Williams was with West Oregon Lumber Glunpany from 1938 to 1943, part of the time at the mill at:Linnton, Qregon, and several years as salesman dt the San Fgp-ucisco office. He entered service with the Navy Seabees,tn 1943 and spent three years in the Pacific area, two .Siears of ivhich was in New Guinea. He had the rank of LiEutenant'

Orders L-358 and L-359 Have Been Revoked, Elbctive March 31

Washington, D. C., Feb. 28-All pro.duction controls on lumber, millwork, hardwood flooring and softwood plywood will be removed March 31 by revocation of limitation orders L-358 and L-359, the Civilian Proddction Administration announced today.

However, because oi millwork shortages, certain restrictions on deliveries of Douglar fir and Western pine shop lumber will be retained, CPA said. These are contained in a new Veterans' Housing Program Order 5, to become effective April 1, which will require sawmills and distributors to deliver 85 per cent of their production or receipts in any quarter ol 8/4" and thinner Douglas fir and Western pine shop lumber, including No. 3 clears, to millwork, cut-stock manufacturers or persons who certify in writing that they will deliver to these.

CPA pointed out that, revocation of orders L-358 and L-359 notwithstanding, producers and distributors will remain subject to other applicable regulations, such as Priorities Regulation 1 and 3, the basic orders which cover use and acceptance of ratings, and Priorities Regulation 33. Reports required by orders L-358 and L-359 must be made for the month of March.

Schedule A of PR-33 will be amended April 1 to include housing construction lumber, millwork, hardwood flooring and softwood plywood (construction grades) in the list of building materials controlled by the regulation, and Schedule B will be extended to provide ceilings on the acceptance of rated orders for these items. Also to be amended in Schedule B is the definition of distributors. Beginning April 1, both manufacturers and wholesale and retail distributors of these lumber items rvill be included iie this category.

The amendment of S-chedule B also will provide that HH and HHH ratings for these products are not extendible after March 31, and that the seller, either manufacturer or wholesale or retail distributor, need not accept rated orders in any quarter for more than the following percentages of production or receipts:

Housing construction lumber & construction plywood, 50/o Hardwood flooring (all grades) and millwork.... -...75%

Shop lumber .' ..-85%

Although HH ratings are not extendible after March 31, any ratings which were .applied or ertended before that date must be honored, CPA said.

The new definition of distributors and the ceilings on acceptance of HH ratings provided in the amendments to Schedules A and B of PR-33 will apply, beginning April 1, to all manufacturers and wholesale and retail distributors of these items who received rated orders directly from the ultimate consumer.

Rated orders received direct from the consumer must be filled by manufacturers, wholesalers or retailersr provided the consumer meets the requirements for the acceptance of orders under PR-l. As ratings for these materials are not extendible, producers need not accept rated orders from distributors, and wholesalers and retailers need not accept orders from other wholesalers or retailers.

Mathias W. Niewenhous, director of CPA's Forest Products Division, said that the actions taken today follow CPA's promise to industry that controls be eliminated as soon as possible. He said that he had received the assurance of industry that it would continue to give full cooperation to the Veterans' Emergency Housing Program. He further stated that the softrvood plywood industry had assured CPA that it rvould produce at least 50 per cent oftotal production in construction grades throughout 1947. Mr. Nieu'enhous complimented producers and distributors of lumber, millwork, hardwood flooring, and plywood on their cooperation with CPA, and was confident that they would make every efiort to assist builders in securing the required materials to. build the maximum number of housing units for veterans and others.

Moves Genercrl OIIices To Scrntcr Bcrrbqrcr

Efiective March 1, the new general offices of the Southern Pacific Milling Company were located at 735 State Street, Santa Barbara, Calif. The telephone number is Santa Barbara 2-765.

This change to new general offices is being made in order to bring management closer to the center of their eitensive operations. Ali general business and matters pertaining to accounting, customer and vendor accounts, purchasing, sales, advertising, personnel, etc., rvill be handled through this new office.

The company will continue to maintain in San Francisco at the present address (206 Sansome Street, Telephone GArfield 8182) officis for corporate purposes and for local buying.

c[nontIED

Lumber Company

Wholesale Distribution Yard

' Vhite. Pine Sugar Pine

Douglas Fir lVhite Fir

Plywood Redwood Ha rdwo od s

Spruce

Tclcphonr: JEfimon 7201 2301 Eart Nodequ Avrnur P. O. 8ox 256 Huntington

Trected in transit crt our completely equipped . plcnt crt Alcnnedc, Cclif.

Trecrted crnd etocked crt our Long Betrclr" Ccrlil, plcrnt

RI-[0Cl( ExPands Production

'on ]lsv{ IENSl0tl tTindow Screen tllll lS lI? rre new RY'LocK Tenrion F:t':1,i" " lramelar typo screen rrade with non'ataining etum' ffi;;;;';loth end .dturninurn eill. and.'top oerr' A clever lcnrioning qtiii"-Ji"""ntr bulging and grgEing. illI ls I s0 P0Puutx[ll c0$t|nns ilo c0fimcl0ns? iill fi'liici- icnrion Screen is.better looking' norc efficicnt, ealier lo iotttif'-iii lerr exPoneive lhan conventional tcreons'- ii';;;lt no piirt' crn bc instrlled trom imide tn"lo'ii;" inconepicuous' end 'ji;i;-.;;;-ii% -*t righr' Furlhonnore' all prdt rre eerilY rePlrced' For rele, euY rtorrEc' elch rcreen ie in*viduallv

;it ;if ";' ;'i1w. i"'9*.1" .':9.. ::"r'"d tcn to a c.rton. pa dgnit-!1g]i-|P ":'-*. i:l:; :il":ir.i Tlliiili-;git -iti''i"ornernr r'r treight chargel ilOU Cfil |tlll0 0W IB0I|I |I? Dr-op un 1'11-,:? ' iolaei and Price lirt'

Sold onlr thrcugb crdbortrrd drqbrr

*"'n t*o iou our dercriptivo