DOUGLAS FIR REDWOOD o nd FIR PLYWOOD

Carl S. Walker, president of the Walker Lumber Company, at Mad River, California, testified for the National Lumber Manufacturers Association against the tax proposal before the House Ways and Meins Committee'citing cost increases in California alone as exceeding $4,000,000 annually.

Pointing out that truck taxes are important since "one of the biggest single problems in the lumber business is transportation," Walker said, "Because log and lumber production is much the same anywhere in the United States, I believe that the lumber industry generally would be bearing an unfair share of the interstate system if the proposed tax changes on trucks, fuel and rubber are enacted."

Increased TaxesIncreased Costs

The witness asserted, "A check of the cost records of several long established lumber companies showed that the proposed increase in taxes would increase the cost of log hauling over 45 cents per thousand board feet."

He added, "Considering the area, terrain, and the type of roads we use the contrasting limited use we could make of the interstate highway system, it appears the proposed tax increase would place a very inequitable burden upon our industry."

Walker told the Committee, "I haul logs 20 mill and travel only 1,000 feet on paved road . the 2O miles is dirt and classed as county road.

miles to my ,,. the rest of

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Calling the committee's attention to the mountainous forested areas of our country, he said, "Before there will be any return on a forestry investment, each tree has to be moved down to a mill. Thus forestry, to a large extent, depends upon transportation of logs which nowadays means diesel powered trucks and tires. Since lumber within recent years has become fiercely competitive with many other building materials, such cost increases will have to come out of the timber, and tree growing will become even more costly."

Walker ofiered a proposal that "provision be made in the legislation that increased highway user taxes provide for a iefund of taxes for logging use. We believe this is the only equitable thing to do and will be willing to suggest methods if -you intend to proceed with the President's proposal."

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