llountoins of Soles ldeos Cqscode on Northern Deolers qt l8th Annuol in Yosemite Not'l Pork

Stepped-up promotion of lumber, sounder business practices,-and a more logical and econom^icql approach to daily operation were just a few of the subjects discussed at the lsth Annual Convention of the Lumber MerchantJ Association of Northern California held at the Ahwahnee Hotel in beautiful Yosemite National Park, April20-22. These subjects, along with their counterparts, were deemed absolutely essential to the profttable operation of a modern lumberyard by the earnest Northern California lumber retailers attending the sessions.

Although it was generally agreed that 1957 was a somewhat disappointing building year, with retailer profits off from 10 to l2/o, the group was cautiously optimistic about the present year and generally enthusiastic in regard to a strong future for those who keep pace.

The directors and members attending the event gave further evidence of Association solidarity by unanimously reelecting their present ofificers to another term of office. Continuing on as head of the association will be LMA's 7th president, Hamilton Knott, owner of the Yosemite Lumber Co. in Fresno. Serving a second term as "top hand" under Knott will be Vice-President Frank IIeard, managin wlll De v lce-rresloent rl ranK managlng partner of the Motroni-Heard Lumber Co. in Woodland. Ira Horton of South Citv Lumber & Supply Co. was again City Su signed on as treasurer, and LMA's Pomeroy was re-elected executive vice-president of the 19 year-old association.

As in previous years, most of the group showed up a day early, on Sunday, for a little added relaxation and extracurricular sightseeing. The more athletically inclined entered LMA's 18th Annual Golf Tournament at Yosemite's Wawona Golf Course, played under the direction of Golf Chairman Ray Noble, who also happened to win the tournament by way of a one-hole playoff after a tie score with Raloh Lamon. Other winners included Bill Clapham. with third. low net, closely followed by N{arion Snead for fourth posltlon.

The convention dawn broke clear and crisp, and by 9:00 a.m. Registration time it was evident there would be no need for an overcoat at this annual. During the morning, a near-record of. over 250 were registered and officially welcomed by Pomeroy and his good right-hand, Ken Buck.

The two-day convention was officially brought to order by LMA President Knott at a huge luncheon in the hotel's main dining room. LMA Vice-President Heard presided over the head table and introduced the afternoon's first speaker, Frederick Breier, well-known San Francisco economist, educator and labor consultant.

Breier, rather surprisingly for an economist, declined to flatly "6ry5tal-bal1" our economic future. His main discus-

"Willie Loman ('Death of a Salesman') is dead," he stated, "and a specialist has taken his place. Selling the new modern product, in the new modern store, to an increasingly well-informed customer, takes more than sheer guts like Willie had," Breier noted.

Although not overly optimistic, the well-known economist did feel that the nation as a whole had weathered the rvorst of the recession-with weak spots in steels, the auto industry and l-rard goods offset by gains in construction and in other industries. Breier anticipated an increase in the nation's gross consumer product from $425 billion (1957), u'ith $275 billion consumed, to better than $480 billion and 9330 consumer used by 1962.

"Our major problem is not one of depression, or even recession. Rather, it is a problem of growth and inflation," he concluded.

Dynamic Phil Creden, merchandising director, Edward Hines Lumber Co., Chicago, was next on the agenda. Cre- den pointed out that, in his opinion, altogether too many dealers were looking for "help from without-instead of helping themselves."

"You don't always have to have everything done for you to have good business," he noted. Creden urged all dealers to promote themselves, to advertise their business more thoroughly to the people in their towns.

"In many cases, we have allowed ourselves to become absolutely dominated by builders," he said, "instead of promoting our business to the townspeople and showing them that we are an important and integral part of the community."

Creden, merchandising director for all of Hines' 27 lineyards, also looked with some skepticism upon recent g'overnmental moves in relaxing down-payment requirements, this "in view of the coming Fall election," he noted.

Our big problem has been in qualifying the buyers, not in heir raisins the down pavment." Creden brought out. their raising payment,"

Creden closed his talk in a hum humorous vein in noting that he thought "the people in high places have lost touch with the buying public," as in the case of the Edsel auto and McCall's model home (featurir.rg a gravel quarry in its Iiving room among other "practical" innovations).

"Reminds me of the story about a new high-powered dog food company back East," Creden smiled, "that engineered a great, new and revolutionary type of dog food, finely manufactured, tops in nutrition, beautifully packaged and extensively advertised." In other words, it was "The Most."

But with all its greatness, sales just wouldn't get off the ground, and so the inevitable sales meeting was called.

"Why, gentlemen?" the salesmanas'er demanded. " anded, "Why gentlemen?" salesmanager is it that you are unable to sell this product when your company has so carefully researched and packaged it and backed you all the way with one of the biggest advertising campaigns in our history? Why? I demand to know why you are unable to move this fine product !" he roared.

,,I THINK IT'S MAINLY 'CAUSE THE DOGS DON'T LIKE IT, SIR," came a small voice from the rear.

A ladies fashion show and tea was next on the program. Due to the beautiful weather, the show was stagbd outside on the Ahwahnee terrace. No professional models were used (or needed) and Jeanne Pomeroy coordinated it.

Some 250 conventioneers gathered in the Ahwahnee's Indian Room at 6:00 p.m. for the first of two industrysponsored cocktail parties and social gatherings.

Dinner in the main dining room, entertainment by "WooWoo" Stevens, the always thrilling Yosemite "Firefall" and dancing'til midnight concluded the fast-moving, firstday program.

Tuesday morning was devoted exclusively to a hard hitting LMA Members Panel Workshop, presided over by President Knott. Prior to beginning the sessions, however, Knott took time out to read an Association tribute to the deceased director, Walter "Pete" Peterson of Bakersfield, and to present certificates to retiring Directors Tom Branson, Homer Derr, Russ Stevens, Dave Wight and Lloyd Bittenbender.

Two outside speakers preceded the panel discussions. An FHA financial representative, John Love, outlined ways of building up Title 1 business, which has reached a total of over $15 billion dollars nationally since 1934. Love further pointed out that 1957 was second only to 1953 in Title 1 volume. He also stated that 1958 has thus far shown improvement over 1957 in Title I volume.

Owen Stebbins, promotion director for the California

C. O'Molley (lefi), ond his chcrming

Redwood Association, was the second speaker of the morning. Using color slides of all the consumer, architectural, builder and trade journal ads currently being run by the association, Stebbins showed the group of dealers just what CRA is doing to pre-sell redwood for the lumber dealer and how they can benefit by tying in to the promotion with local advertising.

Lead man on the panel discussion was Madera Dealer Elmer Rau, who spoke on "Developing Sales Through Employee Training." Rau brought home the necessity of having the full confidenie of employes, in addition to maintaining this confidence by providing' each employee with the correct tools and knowledge to do his particular job.

Rau further stressed the importance of having (and keeping) a good yard foreman (Rau and his yard boss meet weekly over breakfast to discuss operational matters and plan future strategy).

Wendell Scott, general manager of Progress Lumber Co. and Merner Lumber Company, was next on the panel with "fncreasing Store and Contractor Sales" as his topic. Scott showed the dealer group some of the tools that he provides his outside salesmen-including a prospect book which lists every building permit within the Merner-Progress operational area. Permits are grouped by area, instead of alphabetically, so salesmen can make maximum amount of calls with minimum of travel.

Many of these leads from building permits will be "dead" by the time a salesman can get to the builders, Scott pointed out, "but they'll be building other houses. Meantime, our salesmen can work them for high-profit fill-in items," he noted.

The Peninsula dealer further pointed out the value of servicing the "sure-thing" accounts as hard-to-sell customers. well as prospects and

In addition to outside sales. Scott has boosted the store sale of lumber by installing a "lumber rack." Lumber is departmentalized according to species and dimension, and then individually price-tagged. Although initial set-up time is moderate, the lumbef rack more than pays its own way by eliminating time-consuming yard cutting for each customer. Because of this rack, Merner's Sunday lumber business can be transacted right in its showroom, its yard shut down tight.

Fresno's Charlie Dart, head of K-Y Lumber Co., was next at the mike; his subject, "Creating Profitable Small Sales" (Dart's own "small sale" is currently averaging $3.70). Dart explained how he regularly surveyed his own sales tags to determine what items were moving best, and during what seasons. Once determined, these items were placed right up front in his showroom where everybne could see them. Survey also turns up dead (or possibly improperly merchandised) lines.

During the discussion, the Workshop was surprised to learn that K-Y Lumber had two "drive-it yourself" pickup trucks which customers could use to get their purchases home, leaving their autos at the yard.

A fee based upon the purchase is charged for this service. Dart has found that customers get a special kick out of driving his trucks and, with few exceptions, they take better care of his equipment than they do their own autos.

The next panelist, speaking on "System of Gross-Margin Control," was the LMA vice-president, Frank lfeard, managing partner of Motroni-Heard Lumber Co. in Woodland. Mr. Heard noted that improper pricing and operational practices have shrunk the lumber merchant's average profit after taxes to approximately 2/o.

Dealer Heard pointed out how the lumber merchant, third in average store sales only to department stores and automobile dealers, must develop more accurate grossmargin records in order to maintain proper markups and "live" inventory.

Final speaker and panelist was Dealer Edwards Metcalf, general manager of King Lumber Co., speaking on "Accounting Costs and Costs of lnventory." The Bakersfield dealer noted that in order to maintain a proper profit, every dealer must first know the "true cost" (cost plus cost of carrying the merchandise) of his inventory.

According to Metcalf's figures, it costs the average merchant $19.37 to carry $100.00 worth of inventory for one year.

Therefore, he noted, it was most important to have upto-date "true-cost" figures so dead inventory or improperly priced merchandise could be spotted before cost of carrying expense eliminated all possible profit on the items.

In order to maintain proper records, and hold down the expense of keeping theJe records, Metcalf strongly urged use of office machines wherever feasible. "Properly used, office machines will quickly pay back your original investment," he pointed out. Besides the usual machines found in most modern lumberyard ofifices, Metcalf suggested postage meters and duplicating machines as additional time-savers.

The second annual LMA Workshoo concluded. the members, along with interested wholesalers and manufacturers, joined the rest of the group in the main dining room for luncheon. Presiding was Hamilton Knott, and the featured speaker was J. C. O'Malley, NRLDA president and head of the O'Malley Lumber Company, Phoenix, Arizona, operators of 19 retail yards.

Faced with a l0 to 12% drop in profits last year, the nation's lumber merchants must be ready to mend their ways if they are to operate. successfully in fhe fast-changing future, the Arizona dealer told the group.

"We all should adopt a three-phase method of operation to meet new conditions," Mr. O'Malley said.

"First, we must have an objective and a policy. What is our objective? How much are we going to sell? How much profit can we make within a year? This means, of course, that rve must plan what we are going to do. Why not look ahead five years or more? Then we can establish policies to attain the ends and objectives we are striving for.

"Secondly, we must be able to adjust to change. Now that the lumber manufacturers and some of the others are waking up to the fact that there must be some promotion of their products, are we going to stay in the same old rut or are we going to adjust to the changing conditions?

"The lumber manufacturers are embarking on programs to spend over one million dollars per year merchandising lumber and lumber products, and I want to commend them on this step. We as retailers want to do everything we can to promote and foster their merchandising program.

"Third, the owner or the manager of a yard has to do some truly executive-type thinking to be able to coordinate all the changes that are fast developing and carry out the objectives and policies of the company.

"We must do a job of merchandising, of selling services and promoting quality. Nowadays, consumer fina.ncing is very important. All this has been missed by the manufacturer, the wholesaler, the jobber, and the retailer. The manufacturer makes the material and sends it out, and that is all there is to it.

"But is it? It that all the responsibility the manufacturer has, producing the material and sending it to a dealer's l. Mr, ond MB. Hmilfon Knott ild Unio Lunbe's Ccpa Hexberg.

2. Declcr Tm Broum (llelrose lwber Co.l, J$r. Brmron, I{rt. Ecle Johnlq od ilrs. Gerrrude Godqd.

3. l r, md litr. Rolph Lmon, Dmler Edwdr l$ctcqlf (King Lumbe Co.), Mr. Bob Xing, ,$6. ftlelcolt, Bob King'

| "Nifty" Goy ond Deoler Hmer Derr (J. Il. Den Lmber Co. I get to work on this problem.

2. D*lerr Ed Schlotthoer (Willord Lmber Co.l od Chqlie D6t (K-Y Lmba Co.l with llr!. Dqrl.

3.md rtill mqe frm C.ntrql Colifomlor ME. od Bsrnie Borbs, Jr., of Hoo-Ho Club 3l qnd lhe Woodwqk Inrtituio of Collfomio, frm Frsno.

"Just think how fortunate we are not to be in a one-item business. What if we were in the automobile business or the tractor business, and there was a big drop? What would we do?

"But here we arF-retail building merchandisers with opportunities galofe. We have thousands and thousands of items to choose from and, in addition, there are hundreds of ways to merchandise them.

"For example, one yard in the West offers its customers seven different kinds of financing. In one year they sold as much as $120,000 of financed remodeling on time-payment plans. How many types of finance remodeling do YOU offer?

"There are all kinds of opportunities in this business. How do you sell remodeling? It can be sold-you can do it yourself, if you wish. Or you can work deals with small l. DeqleF Henry Hulelt (Ndrh B.ry Lmbor Co.l od Doc Wighr (O'Neill lumber Co.l wirh

2, remodeling contractors. They all need help. They need servlce.

3.

"That is what you are in business for-servicequality-service. Those are the things we must do today._Therg a-re all sorts of ways of selling remodeling. It could probably be the best business most of you heie could have. What are you doing about it?"

O'Malley closed the meeting with some words of praise for LMA's Jaik Pomeroy, his staff, and the officerl and directors of the Lumber ,1\4erchants Association.

A final board meeting in the Ahwahnee's Game Room, at which the NRLDA president gave his report to members, followed the final afternoon session.

Official business done, the second of the convention's industry parties served as starting-gun for a final evening of fun, good food, good fellowship and good entertainmentheadlined by The Four Knights, Rima Rudino, Ever and Dolorez.

Mount Whitney Lumber Co. Storts $l,5OO,OOO fttill

'l'he $1,500,000 'f ule [)ivision srtu nrill of the \lortnt \\-hitnc,r- I-umber fionp:Ln-r' n'us lrlrLct'rl 'itt opcratiott carlrthis sPring, accortling to \\'. Ir. .\rb1:Lstc'r, r'icc Prcsirlerrt arrrl general nranagcr of tlrc \lourrt \\-lritrrt'-r rlivisiorr t.,f tlrc,\nrerican ]iorest Prorlucts Cotttlr:Ltt,r'.

'l'lris nro<lcrn, ftrllr'zrrrtonrrrtic san'nrill of rLll stccl con slructiorr, is loczrtc<l in the ce utcr of tlrc 'l'rrlt lrrrlirrrr rrscrr:rtiort nc.Ir [)ortcrvillt:. Trrlare c()u1rt\'. Calii,rrnia. It is situ:rtcrl :L<ljaccrrt to the 120 millit-,n fc't't of corrrpan-r'-ou'rrt'<l st:Lrr<lir9 r'ire'irr tinrbcr of Pine, \\-irite Iiir:Lrrrl Ccrl:Lr. ()rr:r sirre-lc slrift olrrr':rtion, tlris brrurcl nen'f:rcilit-r'is gc:rrcrl to il*.:€.r:f

Pro(l11ce itt c-rce ss of I lJ nrillir)ll l)():rr(l f eet of lurnber arr1111all\-..'\rrcl 1:Ltcr this,r-car. \rhcr tlrc 1)l:ult is l)lacccl o1r a t*'o-shift schedrrle. it is cxlrcclt'rl irr crccss of .10 nriilion btiard feet u,ill re:rclr tlr('('irst('rr] an(1 \\'('st(,r-l nr:rrkets. I)resertt l,rg' l)f()(ll1cti,,r1 i. r'urninlt :11'proritnutel-r' $%, I'orr<lerosa:ur(l SrlS-irr I'irrt', l7', \\'lritc Iiir lrrrrl l8f, Lic<1:rr. it rr':rs saicl.

\\'. ll. "liill" l-antsbcrr:er-. \'ct('ralr s:L\\'nrill olrcr:rtor, is rcsirlent rn:urager at th(, S1x'irrgvillc,'l'u1c rlivisiorr, n'lticlr is loc:rter1 in thc s()utherlr :rrr:r of tlrt'Sicrr:r Nt'r';rrl:r rl()untlLirr clrairr iul(l \\'iil frrrriislr an rlnlilnit('rl suppl,r'r,I tirnbtr for many years. Assisting him, as construction superintendent of the mill, is Fred Christy, who has had many years' experience in timber operation and sawmill development.

For the past trvo decades, Mount M/hitney Lumber Company has operated the Johnsondale, California, plant with an annual production of 40 million b.f. This sa',.r'mill opera- tion is in charge of Simon Alsaker, resident manager,-who has also spent a lifetime in the lumber production field.

Immediate expansion plans call for the construction of an $800,000 remanirfacturing plant and mill, dry kilns ancl several ,all-steel, undercover storage sl-reds. According to Mr. Arblaster, this addition to the Tule division wiil be completed within the next 90 days. When this addition is placed in operation, shipments for the middle-west and eastern markets will be loaded at the Southern Pacific Porterville spur and western shipments will be routed direct via truck and trailer to wholisalers. retail vards ancl industrial users.

To Expand Los Angeles Sales Offices

In line with the increased production at the mill level, the l\4ount Whitney facilities in Los Angeles will be expanded with the addition of several new offices being added to the present building. The sales staff will be inireased under the able direction of "Chub" Durnell, general sales rnanager, it was said. Work on this feature of -ihe program will be completed early this summer in order ^to -keep abreast of the expected volume and sales.

The Mount Whitney division of American Forest products.Compan^y ^presently employs in excess ol 375 persons, and during 1958 will exceed 2l million dollars in sales. Walter Johnson, well-known west coast lumber executive. is- president of the Mount Whitney operation and chairman of the board, American Forest Products. Veteran lumberman W. E. "Bill" Arblaster is the chief administrative gSg... and policy maker for the Tule and Mount Whitney divisions of the concern, which now operates 12 sawmills throughout the west.

lq?: View of the -eently compl€ted [o6f Whitney Lmber Co. Smill of Sorinqville, rclrornro. Lowe. r'toto: Inrerior. of rhe Jtlounr whitney ltru(fudl rteel rwmill'buiiding; nore wide-lpa n@r 'pq(e

Vermiculite Institute Meets in Arlz.

Confidence in the nation's economy and a bright future for the construction industry was thi keynote oT th" lzth annual meeting of _Vermiculite Institute oi Chicago, held at the San Marcos hotel in Chandler, Ariz., Maich 22-22. J. Brogks Robinson, Great Falls, Mont., was elected presi- dent. Two new directors are Shelton W. Greer. Houston. Tex., and L. G. McDiarmaid, Vancouver, B.C.'Two new companies were admitted to membership: Alabama Vermiculite Corp. and Ari-Zonolite Co.

R. L. Aldrich, CaliforniaZonolite Co., presented a motion picture of a job totaling over one million square feet of vermiculite concrete, currently nearing completion on a new Kaiser steel plant at Fontana, Calif.

Guest lpeaker G. E. Morris, superintendent of building for the city of Los Angeles, said that while local construcl tion increased about 2O/o last year, the first three months of 1958 have broken all construction records in the city,s history. "So I think that in the country in general there is a potential demand that is going to increase," he stated. Other g_uest speakers included Dr. Kenneth McFarland of Topeka, Kans.

A Moforisl's Proyer

"Teach us to drive through life without skidding into other people's business. Preserve our brake lining so we may stop before we go too far. Help us to hear the knocks in our ovyn motors and close our ears to the clashing in other people's gears. Keep alcohol in our radiators and out of our. stomachs. Absolve us from the mania of trying to pass the other fellow in the narrow road. Open our eyes to the traffic signs, and keep our feet on the brakes."

Moybe o Vice-President

A family moved from the big city to the suburbs and decided to get a w'atchdog to guard their premises. So they went to a kennel and bought the biggest dog on the place. Shortly afterwards the house was entered and robbed while the big dog slept. So they went back to the kennel and told the dog man about it. He said:

"'What you need now is a little dog to wake up the big dog."

Books

Gilbert Portanus, Archbishop of Poitiers in the 12th Century, was once left alone for some time to the freedom of a great library, and he wrote this about books:

"I sit here with no company but books, dipping into dainty honeycombs of literature. All minds in the world's history find their focus in a library. There is the pinnacle of the temple from which we may see all the kingdoms of the world, and the glory of them. I keep Egypt and the Holy Land in the closet next the window. On the side of them is Athens and the Empire of Rome. Never was such an army as I have mustered here. No general ever had such soldiers as I have. No kingdom ever had half such illustrious subjects as mine, or half as well-governed. I can put my haughtiest subjects up or down as it pleases me. I call 'Plator' and he answers 'Here,' 3 noble and sturdy soldier; 'Aristotle,' 'here;' Caesar, Tacitus, Pliny-and they answer, 'flere,'and smile at me in their immortality of youth.

"Modest all, they never speak unless spoken to. Bountiful all, they never refuse to answer. And they are at peace together. My architects are building night and day without the sound of hammer, my painters designing, my poets singing, my philosophers discussing, my historians and theologians weaving their tapestries, my generals marching without noise or blood. I hold Egypt in fee simple. I build, not a city, but empires, at a word. All the world is around me, all that ever stirred hearts or fired the imagination is harmlessly here. My library shelves are the avenues of time. Ages have wrought, generations grown, and all their blossoms are cast down here. It is the Garden of immortal fruits, without dog or dragon."

The Plumber's Dilemmo

A plumber wrote to the National Bureau'of Standards and said that he had found that hydrochloric acid opens plugged pipes quickly, and wanted to know if it was a wise thing to use. A scientist at the Bureau replied:

"The uncertain reactive processes of hydrochloric acid place pipe in jeopardy when alkalinity is involved. The efficacy of this solution is indisputable, but the corrosive residue is incompatible with metallic performance."

The plumber wrote back his thanks for telling him that the method he asked about was all right. The scientist was disturbed by this misunderstanding and showed the correspondence to another scientist, who promptly wrote the plumber:

"Hydrochloric acid generates a toxic and noxious residue which will produce submuriate and invalidating reactions. Therefore some alternative procedure is preferable."

Again the plumber replied that ,he was glad again to know that hydrochloric acid works just fine on plugged pipes. So the scientists took the correspondence to the top boss, and the next day the plumber got a wire that read: "Don't use hydrochloric acid. ft eats hell out of the pipes."

-From "Credit World."

The Mon Who Delivers

There's a man in the world who is never turned down, Wherever he chances to stray;

He gets the glad hand in the populous torvn, Or out where the farmers make hay.

He's greeted with pleasure on deserts of sand, And deep in the aisles of the woods;

Wherever he goes there's a welcoming hand For the man who delivers the goods.

The failures of life sit around and complain, The gods haven't treated them white;

Theylve lost their umbrellas whenever there's rain, They haven't their lanterns at night.

Men tire of failures who fill with their sighs, The air of their own neighborhoods; But the man who is greeted with love-lighted eyes, fs the man who delivers the goods.