THE CALIFORNIA LUMBER MERCHANT Jack

Dionne, Publisher

How Lumber Looks

The industry average was down and almost all items of -green Douglas fir construction lumber lost some price ground in Crow's Lumber Price Index released May 17.In K-D fir, Utility dimension was the only strong item. Twelve-inch No. 3 ponderosa pine boards, formerly firm, lost price altitude and D-grade selects were depressed. Sanded plywood remained steady and sheathing grades were_ strong Logprices in the western'Oregon market remained steady, with a small drop in pulpwood prices in some ar€as noted. Operators of green fir mills were encouraged by the decision of the American Lumber Standards f,ommittee to turn down the proposal to fix the maximum moisture content at which ALS standards would, apply; proposal's adoption would have meant increased costs to both producer and buyer of green lumber.

Shipments of 493 mills reporting to the Natio'nal Lumber Manufacturers Assn in the week ended May 18 were 0.1/o above production, orders 1.2% above; for the year to date, orders were 0.5/o above production. Shipments were 4.6/o above the previous week. National production of lumber totaled 2,807,000,000 board feet during March, reported the NLMA-7/o above February but 9/o below March 1956; shipments were l7/o greater than February. March procluction, shipments and orders in softwood indicated gains over February but hardwoods registered declines in each category.

Orders of 124,824,854 feet were 3.3/o over production at 164 mills reporting to the West Coast Lumbermenfs Assn. in the week ended May 18; shipments were 1.2/o below. The weekly average of west coast lumber production in April was 183,576,000 bf, reported WCLA Secretary Harris F. Smith for the Douglas fir sawmill region; orders averaged 182,809,000 and shipments 184,448,000 bf. The industry's unfilled or{91 fiJg-at the end of April stood at 628,660,ffi0 bf, gross stocks at 1,220,9M,0M.

Orders of 81,638,00O feet were 7.9/o below production at 123 mills

Wetcome

In this issue, we welcome these new advertisers into the family of California Lumber "Merchant-isers":

In This Issue

reporting to the Western Pine Assn. in the week ended May 18; ship- ments of 83,314,000 feet were O.l/o above. Orders were 0.3Vo above the previous week, in which shipments climbed 2.8/o above production.

Production of 48,369,000, shipments of 51,620,000, and orders of 53,258,000 feet at 15 mills reporting to the California Redwood Association for Aprrl were. respec,rvely, comparabte to 49,879,000, 44,064,000 and 46,855,000 in Marih, as boih shipments and ordeis r6gistered healthy gains and climbed to highs for the year to date. All were, however, still under the 1956 figures.

Orders oI 21,425,U)0 feet were 2.78Vo aboye production at 103 mills reporting to the Southern Pine Assn. in the- week ended Mav 18. while shipments climbed 7.46Vo above.

Orders_ fell nearly 5/o below production of 116,353,000 feet in the week end^ed .May 18, reported the Douglas Fir Flywbod Assn., and dropped 3.7/o from the previous week. But they climbed 42.ZVo hisher than the similar 1956 week. Production rose 5.47o from the prev'ious wee-k and was 22.3/o above the corresponding 1956 week. Forihe year to date, orders were 10.6/o above 1956, production 2.4/o below.

Total retail lumber sto-cks on March 31 were 5,208,000,000 bf, estimated the National Retail Lumber Dealers Assn.--2.l% more than on !'eb. 28 but 2.8/o below thb level at the end of Maich 1SSO. Ritiii um ber- sales d-u^rjlC March were. 1 2.4 /o abov e .Feb ruary b.ut..16.5 /o below March 1956,_ with. each of the 'nine retarr regrons rndrcatrng March gains over the prior month.

"hts Your Problem, Toott

By Wayne F. MULLIN, President, Southern California Retail Lumber Assn. April 23, 1957; 40th Annual Convention

I am honored to have the opportunity to address an audience of my fellow Southern California lumbermen. It is only if we all know of what the Association offers, and of the problems that it seeks to solve, will we be satisfied with its aims and accomplishments. To be strong, an association must have the confidence of its members, and such confldence is only obtained with knowledge.

\rur' goar rs rne welfare of our industry and we believe that the satis{action of our customers is closely linked to our own welfare. This is of great importance to all of us-rnanufncturers, wholesalers and retailers. This is the reason rve ask our suppliers to join with us as Associate members.

Our Association is the tool with which we have to work in an effort to correct evils that may exist within our industry, to combat detrimental influences from without, and to achieve our goal of better profits for each of our member companies. Now let's look at some facts:

One year ago today our membership was 334 members-235 Active lumberyards and 99 Associate members. Since then we have added 57 members-4? Lumberyards and 15 Associates. During the same time we have lost 31 members-21 Yards and 10 Associates-by reason of retirement from business or resignations. Today our total membership is 3ffi--256 Lumberyards and 104 Associate members-or a gain in the last year ol 26 members. Although this membership gain is not as great as in the previous year, the membership committee and the Association staff are to be complimented. Our members probably represent %/o of the sales volume in Southern California.

We have adopted a budget. The budgeted expenditures f.or 1957 amount to $67,000, and this will cover only our very necessary activities. For the first time, we have an outline-we know how much we are going to spend in advance-and on what we are going to spend it. We believe we know where the money is coming from. Only 45% is derived from membership dues-the balance comes from services your Association sells to its membersservices that you members could not buy as economically from any other source. In our budget, the margin for error is too thin, for we project an operating loss for this year of $1,720. But if we can add a few more member yards, a few more associate members, make a more proportionate and equitable adjustment of dues in accordance with sales volume, then in 1957-1958 we should operate in the black. This Association is a non-profit organization, but it must run as a business and rve must keep a constant eye on income and expense. The budget is a big step forward and, for the good of the Association, its use should never be abolished or forgotten. Ralph Baker is the man to whom credit is due for this step forward.

Our byJaws have been brought up to date and we adhere to them. If we find they are not suited to our needs, we amend them-but we never disregard them. Under these new by-laws, we elect directors from the areas annually. Usually the same directors are re-elected, but there is a constant influx of new and younger men, so your Board now has the benefit of new ideas tempered with the experience of the men older in point of service. Like any other business, your executives have frequent discussions of the problems confronting us. These discussion are held daily by telephone and almost weekly in person.

We have 13 active committees with 73 members serving-some of these men are on several committees but usually only one. These men were willing to work and have accomplished their objectives more quickly and easily because they were banded together and because they worked with a spirit of friendly cooperation.

Every man in this room has his industry problemsproblems that must be faced collectively by you and me. Smog is one of them, particularly for those of us lvho have burners. Your Smog Committee, headed by Jim Lawler, has been a most active one. The committee has had many meetings in the last year-some rvith Air Pollution Control officials, in an effort to find a solution to this almost insolvable problem-insolvable because it has become political in character.

A far greater problem faces us today with tl.re new Lumber Grades and their allowable uses under the building codes of our cities and counties. This committee, headed by Rex Clark, has had plenty of opposition. Group meetings have been held with city and county building officials. Two weeks ago a four-day meeting was concluded with representatives of the W.C.L.A., along with officials of the Building and Safety Departments of Los Angeles, Long Beach and San Diego. A better understanding of the problems facing us was reached, but the officials of the Los Angeles and Long Beach Building Departments whacked us over the head, spanked us, told us what we could and could not do, and went back home. We lumbermen do not believe they have a full understanding of grades of lumber, so we proposed and they accepted our invitation to visit the sawmills selling in this area to see for themselves the lumber as it is manufactured and graded-including Utility grade which they so vigorously condemned. Our lumber is produced from a natural resource, and it is our duty to see that tl-re product of the natural resource is wisely used. This we propose to do, and our Grade-Stamping program is going to help guarantee it-as well as assuring our customers that they are receiving the grades of lumber they are paying for. For 14 months, we have had Erik Flamer working with us, devoting all of his time to this problem.

There are other problems for which we need this Association. Legislation, health and welfare plans, workmen's compensation insurance, etc. A11 of these the S.C.R.L.A. stands ready to cope with.

Every member of the S.C.R.L.A. automatically belongs

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No interference wifh furniture arrangement even in the smallest room ! With the ADCO FOTDAWAY Closef Unit, doors fold completely back to iamb side wilhout actually louching the wall.

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BRINGS TO YOUR HOME A NEW BEAUTY AND EXCITING IIVABIIITYI

PATENT

All Doors Unconditionally Guaronfeed Member of Soufhern Colitornia Door lnstitute to the National Retail Lumber Dealers Association. Because there are 25,000 lumber dealers in the United States, a watchdog is needed in Washington. The N.R,L.D.A. does those things for our industry that the individual regional associations cannot do alone. It should be well supported-and the only way to do it is to belong to this Association. $15 of your annual dues goes to the National. Tom Fox is our representative on the National board of directors and twice each year he makes a trip to Washington at his own expense to represent Southern California at the National board meetings.

We are not legally permitted to agree on selling prices. But we can raise the standard-help eliminate useless price cutting-by knowing more about the cost of doing business. In order for each dealer to\know, more about his own costs, and how they compare with the average, our S.C.R.L.A. publishes each year a "Cost of Doing Business Survey." This survey gives average operating costs and profits for the various classes of yards in Southern California. This is a yardstick, by which you can measure your own performance. It is a challenge to keep costs dou'n and profits up. This book is free to our members who participate by handing in their own figures to Price, Waterhouse. It cannot be purchased at any price by a non-member, and it alone is worth far more than the minimum Association dues.

The Association gives us the chance to participate in Group Workmen's Compensation insurance. The group premium is over $100,000 per year, giving us the opportunity of securing far greater dividends than would be possible if each of us carried our insurance separately. This last year the dividend was 36.6/o. The year before it was 313% and it is expected to be in excess of 40/a this year. Many of you, because of the small size of your annual premium, receive small dividends or perhaps none at all. Any member with the proper safety record owning a lumberyard may join our group. There is the Health and Welfare plan for non-union employees; 1200 are insured under this plan which offers up to $3Q,000 in life insurance. Millwork catalogs are published at low cost to our members.

These are a few of the services rendered by your Association. fn fact, the S.C.R.L.A. with its staff of four men and five women, will do anything for its members if it is reasonable and legal. What more could one ask? I may be biased, but after traveling around these United States visitihg with retailers everywhere in the last two years, I believe we have a mighty good Association in Southern California, and a bunch of excellent lumbermen as members, along with a fine executive vice-president in Orrie Hamilton, who works so hard to make the whole thing click.

We are also lucky to have as our assistant manag'er, George Cordrey, who acts as field secretary. In 12 months George has called on every lumberyard in Southern California. He has organized area meetings-meetings where lumbermen get together for an exchange of ideas and for friendships that are created. In the last 12 months there have been more such meetings than ever before and they have been better meetings. It's the first time in 20 years that some of these lumbermen have gotten together around a luncheon table.

There is also the Palm Springs Conference each fall and only retailers do the speaking. In January, there is the all-membership conference at the Ambassador. Here, dealers and suppliers meet and discuss their mutual problems. These two gatherings, plus this annual convention, are unique-for no other lumber association has them. This year, in an effort to further develop a spirit of friendship and cooperation between lumbermen, we decided on a meeting in Hawaii-to meet jointly with the Honolulu lumbermen.

You have all heard of the wonderful time enjoyed by the 75 who went from California, but have you heard of the quality speeches made by the Southern California Dealers and their Hawaiian hosts ? Have you heard of what we learned by going through the Canec Plant ? Have you heard of the fabulous lumber merchandising stores operated in Honolulu which we visited ?

If not, read The California Lumber Merchant. They thought the trip was so worthwhile that 16-plus pages of enthusiastic description was published April 1. Everyone came back a BETTER LUMBERMAN, had more lumber friends and more spirit of :ooperation than before.

Our Future-Your Problem and Mine

During the last ten years, this spirit of cooperation has been increasing. Younger men are taking part in their industry's afiairs-for formerly it was only the experienced man who appreciated the value of joint action. Times are changing. We see fine firms, a half-century old, retiring from business. What are we going to do about the problems brought about by this change ?

From an Association viewpoint, too many of us think of this Association as a power in itself-a power we can call upon to correct the evils that assail us. We forget that those problems we probably create ourselves-that the Association is composed of you and me-and that it is strong just so long as you and I are rvilling to give our time from personal affairs.

There are many imperfections within the lumber business, but the Association alone cannot correct them. The only solution is for each of us as individuals to do something corrective in a cooperative effort. It is your problem-and the Association is your tool with which to work'

Last week some of us received an anonymous letter naming evils which exist within our lumber industry' I .may not agree with the writer of that letter-I don't know who he is, but I admire him. He recognized the problems and tried, as a rugged individual, to do something about them. He wrote a letter. Now if a letter of that kind had been mailed by our Association, it would have been in violation of federal laws, but, legally, you and I can act as individuals.

For instance, you and I can raise our selling prices. Individually, we can blacklist mills we consider unethical' 'We can refuse to sell on credit, we can do something about lumber handlers of whom we do not approve. There are many problems and they must remain your problems-not the Association's. Our Association lvill (Continued on Page 73)