PHITIPS BROS. TUIABER CO.

Douglos

Lumber Monufqcturers Approve the Nqtionql Wood Adverfising Progrom

(Continued from Page 4) cerned" but not adequate to insure the lumbermen a reasonable profit.

Pointing out that manufacturers' profit rate for lumber and wood products last year was only 2.3/o of sales, com-

solid PHIIIPPINE I$AHOGANY

pared with 6.6 to 7.5/o tor competing materials, Taylor declared :

"The very thought that these other products competitive to- lumber have been making i greater percentage of profit than lumber since 1952 should be enough to get every lumberman to raise his price $5 a thousand tomorrow morning."

The Oregon distributor said "tremendous efiorts', have been made by the National Lumber Manufacturers Association and other groups, to develop "a united industry front to face the challenge of competitive materials."

But, he added, "there is still too much fighting among ourselves in order to acquire a competitive advantage with-in the industry." As one example,-Taylor pointed"to .,occasions where the railroads have been requested bv some segments of the industry to prohibit the practice of strip- ping cars unsold to diversion points."

Defending in-transit selling as "an economic saving" in many instan-ces, the panelist called for an industry-wide cooperative effort to (l) eliminate the 3Vo fedeial tax on freight shipments, (2) reduce freight rates on low-grade lumber items and heavier car loadings, (3) liberalize diversion rules, and (4) bring about more equitable tax rates on timber crops.

Dealer O'Malley said the "biggest trouble" with lumber's distribution system is that "markets have not been analyzed by areas or the potential by areas, and conseqr.lently things are going along in the same old way."

The retail dealers' spokesman also complained that "there has been no recognition of combinations of materials, such as lumber and insulation and air conditioning, where there is a great potential for the lumber distribution system." He added:

"There is nothing wrong with Nlanufacturer-to Wholesaler-to The only thing lacking is adequate do the best job, at the best timi, in best areas."

O'Malley offered these lems: the historic pattern of Retailer-to Consumer. long-range planning to the best wav. and in the suggestions to correct such prob-

"First, we must promote lumber products at the most ideal time of year. For example, our advertising on remodeling kitchens should 'break' in the Spring when the weather is better

"What is the best way to promote? We might take a les-