Weyerhaeuser Program to Combat Foreign Competition

A four-point program to avoid "irreparable competitive damage" from the squeeze on United States lumber producers by Canadian mills was made public recently by Weyerhaeuser Company, a leading Pacific Northwest lumber manufacturer.

Pointing to a 150 per cent increase in Canadian lumber sales in the United States in the last five years, Executive Vice President George H. Weyerhaettser called for immediate measures to protect the interests of producers and their employees in both countries.

The program includes:

1. Establishment of voluntary quotas on Canadian lumber exported to the United States;

2. Joint action by the lumber industries and governments of the two countries to increase export markets abroad;

3. Bilateral government action on monetary exchange rvhen the United States lumber industry is adversely affected; and

4. Establishment of rates and practices by Canadian railroads similar to those in the United States.

"More than 11 per cent of the total softrvood lumber used in the United States now comes from Canada," \&'eyerhaeuser said. "Even though the present level of Canadian imports has depressed this country's lumber market, the most significant fact is that Canada's untapped timber resources will permit a substantial increase in the future in its rate of production."

British Columbia alone could produce as much as half of United States softwood lumber requirements,'Weyerhaeuser warned. He cited Canadian g'overnrnental backing of its lumber industries as a further threat to the domestic industry. Examples include monetary exchange rates, timber stumpage prices, taxation, rail rates and practices, wage and labor policies and governmental sales promotion activities, he said.

"With such tangible economic encouragement from government, coupled with increasing production, Canadian lumber will displace larger and larger quantities of United States-produced lumber if the present trend continues," according to the statement.

"Various suggested solutions have included the imposition of substantial tariffs, the payment of subsidies, the modification of the Jones Act to permit foreign ships to compete on intercoastal routes and the elimination of Panama Canal toll charges on United States intercoastal carriers.

"Weyerhaeuser Company traditionally has not favored higher tariffs, and in view of the Administration's announced tariff policies, any suggestion of higher tarifts at this time would probably be opposed by our own government,

"\Meyerhaeuser Company traditionally also has opposed subsidies, believing these only create further problems and do not ofter realistic, longrange solutions for this or any other similar situation. With respect to the Jones Act, while we and other domestic steamship operators are under its protection, we feel the maintenance of a sound Merchant Marine is in the broad national interest and for that reason the intent of this Act should not be abrogated. A move to eliminate Panama Canal tolls orobablv could not be expected to givl much monetary relief." the statement continued.

"While none of these suggestions appear to offer a real answer to the problem faced by the lumber industry, it is recognized that a workable solution must be found before irreparable damage is done. The four-point program which we advocate embraces a number of suggestions which rve believe would not only be helpful but rvould generally be acceptable to the entire industry.

"'We believe a total effort on the part of the lumber industry in support of measures such as these would provide an excellent means of focusing the attention of both business and government on this problem.

"True recognition of the pressing economic circumstances should result in business and government working closely together on a program aimed at the implementation of policies of this type. This should develop understanding and more workable relations with the Canadians and a partial if not total solution of the long range lumber ex1rcrt-import problem."

Ten Yeorc of Progress

An all-new l2-page booklet, 10 Years of Progress, is announced by National Building Material Distributors Associaton.

The booklet traces the Association's rapid growth pace during its first l0 years, pointing out how various services and activities have been undertaken to meet the ever changing needs of the wholesale building material distributor industry, according to S. M. Van Kirk, general manager.

Dynamic member participation on the grass root level enables NBMDA to develop and spearhead future activities.

Single copies of the booklet are available at no charge from NBMDA headquarters, 22 W. Monroe Street, Chicago 3, Illinois.

Plon Big Sqn Jose Development

The San Francisco investment firm, Comstock Management & DeveloPment Co., has purchased 85 acres of land on the outskirts of San Jose for $1,281,000.

The property will be developed as a residential community by Eichler Homes, Inc., per announcement of Comstock president -fames E. Tobin.