No Nccd for Gray Mcrkct if Buycrr Will Earl Hofrmrn Comptny Opcnr

Obtcin Rcquiremcntr from E*ablirhcd Officc in San Jorc

Trade Sourcer, Says H. R. Northup

Washington, D. C., May Z4-There need be no gray market in building materials if buyers will follow a steadfast policy of obtaining their rc<luirements fronr established tradc s<lurces and refusing to deal with those who attempt to profit from temporary krcal shortages, H. It. Northup, exccutivc vice-president of thc National Retail Lumber Dealcrs Association, stated Tuesday.

"'l'hc gray markets which have suddenly developed in sornc localities, according t<l recent rep()rts, are the result of thc fact that the volume of new housing construction has bccn cxcee<ling all expectations," Mr. Northup said.

"Stirnulatcd by the easiest credit terms ever offered, the number of housing starts has bcen running more than .50 per cent ahcad of a year ago and fully one-third higher than had bcen predicted by any of the experts, in or out of government. As a result of the uncxpectedly high demand, some matcrials are in short supply, notably gypsum board and lath, millrvork, an<l somc grades clf lurnber.

"The gray market appears when buyers are rvilling to pay more than the established price in order to get quick delivery, rather than wait for supplies to reach normal, legitimate trade channels.

"'l'hc gray n.rarket ol)erator is an opportunist tvho steps in aud buys up quantities of scarce materials rvith the idea of reselling them at an exhorbitant price. The one way to elirninate him and his practices is to refuse to deal with him.

"Manufacturers of many materials already are steppingup their production to meet the increased demand rvhich developed so suddenly, but it takes time to get the added production out through distribution channels to the yards of tlre nation's 27,n0 retail materials dealers.

"As recently as March 31, inventories of lumber in the hands of retail materials dealers rvere 5.3 per cent higher than on the same date in 1949, although sales in March were 24 per cent greater than in March, 1949. Only in the Midclle Atlantic, East South Central, and Pacific regions was there a decrease as compared with the year before and none of the regional declines exceeded 5 per cent."

Earl Hoffman Company, wholesale lunrber dealcrs, with home office in Los Angeles since 1919, recently opened an officc in the Burrell Building, San Jose, Calif.

W. A. Magee is manager of the San Jose office, and Ilay Ir. Mangini is salesman, covering the Northcrn California tcrritory.

Thc telephone number at the new office is CYprcss 5-8854.

W. A. Magee is an old timc lumllcrman, wlto was captain of lumber schooners, and who rvas bar pilot at the Itort of San Francisco for rnany years.

Ray Mangini is a well known lumberman, who was a salesman for Rolando I-unrber Co., San Francisco, for about 20 years.

I'larl Hoffman, in referring to the location of the new of6cc in San Jose, said they had given much thought to the matter, and made the decision to do this, as it saves a lot of driving in covering the sales territory, and recognizes the importance of San Jose as a fast growing industrial and residcntial city.

Announces Retirement ol A. P. Green

The Celotex Corporation announces the retirement of A. P. Green, architectural representative in the corporation's New York branch, after nearly 22 years of service.

Mr. Green is succeeded by William L. Gates who has been his assistant and W. H. Pritchard. formerly a sales representative in the same branch.

Front Cover Picture Mcry 15

I\{any of the readers of The California Lumber Merchant have inquired as to the subject of the beautiful picture used by Western Hardwood Lumber Co. in their advertisement on the outside front cover of May 15 issue.

The picture is of St. Timothy's Church at the corner of Beverley Glen and Pico Boulevards, Los Angeles. Photograph is by Ernie H. Heusser, Los Angeles. Philippine Mahogany panels are used throughout the church, as well as in the door.