The Douglas Fir Industr)-rg3t

Bv J. B. Fitzserald \il/est Coast Lumbermen's Associotion Seattle, \flash.

During the depression which we all thought to be most serious, that of 7920-21, a lumberman in the Pacific Northwest, in response to the usual question, answered:

"Oh, our business is looking up now."

The questioner was astounded. He had heard the story that lumber was in very bad shape.

"What do you mean 'looking up'?" he asked.

"Well," said our optimist, "it's flat on its back, isn't it?"

It was flat on its back but after a while the folks began to build, retail dealers ordered lumber, the Douglas fir lumber industry got up, stret'ched itself and went back to work. Now, after nine years, it is "looking up" again. We believe history will repeat itself, demand will again return, and the lumber industry will once more go to work.

When is the revival likely to occur?

Our Association does not anticipate a large increase in lumber demand during 1931, but we do believe that with retailers', lumber distributors'and industrial stocks of lumber extremely low, a faft volume of buying will begin as soon as purchasers are convinced that the bottom has been reached in mill values. The Douglas fir industry is now further reducing its production and we do not expect to see the cut of lumber during the sixty days following June 15 average more than about one-third of our capacity. We expect the heavy curtailment now being forced on the industry by lower and lower prices and a slack demand to mark the turning point in the West Coast situation. This betterment will occur, in our judgment, when due to the number of idle mills and operations on short schedules buying difficulties arise. For^the past two years more lumbbr has been available from month to month than was needed to fill the current orders and there was a constant struggle by mills to operate. When the buyer learns that there are two or three bidders for one lot of lumber at the mill, he may be willing to pay another fifty ,cents. When he does, that will be the turning point.

Lumber prices at West Coast mills are far too low and cannot be expected to remain at or near present levels over a very long period. The average return to a group of mills reporting to the Davis Statistical Bureau during May for 162 rail and water items was fi12.32 per thousand ; the total averag'e sales return for all items in April was $13.49. This last figure compares with $18.34 in April, 1930 and $21.06 for the year 1929. We estimate the average loss per thousand board feet of lumber manufactured in the Douglas fir region today to be from $3.00 to $3.50. Naturally the situation is intolerable. No industry, no matter how well financed, could carry on for a long period absorbing a loss of from $300,000 to $350,@0 each week. Curtailment, therefore, is inevitable. The improvement will come, when buyers generally, including the.retail and wholesale lumbermen of California, come to the conclusion that mill prices are not going down any further. They will then gain confidence in the products of the industry and begin to fill in their depleted stocks. The demand will slowly start the mill wheels again.

Our Association recognizes the dependence of the industry on the sales activities of the retail lumber dealers. Most of our lumber is sold eventually by retailers, the bulk of it going into small building. A stimulation of any conseguence in a California town in house, garage or other buildiqei means lumber demand. 'We have, therefore, right down through the depression continued our program of work with retail dealers. As a matter of fact, our trade promotional efforts in California have been increased during the past twelve months, due first to the desire of retail groups for our help and second to our own willingness to assist in every way in better retail lumber merchandising. We believe that through these joint efforts our industry and the retail dealers will sell more lumber to a better satisfied public. Retail dealers in Southern California have been able, with our assistance, to raise their sales standards to a level, where based on Association grade-marked lumber, competition is reasonable and the public is assured of a square deal. An undertaking of this kind would have been impossib{e for either the retail or the manufacturing group alone. Jointly undertaken in the interests of legitimate merchandising it has not proven to be particularly difficult. We hope, as an Association representing the manufacturers in the Douglas fir industry, to work further in cooperation with groups of California retail lumber dealers to the end that more lumber may be merchandised in ways that will increase the public's use of our products.

While grade-marked lumber is a valuable product for the retailer because it establishes a fair basis for local competition, its greatest value lies perhaps in the opportunity opened up to create good will toward lumber and wood construction with architects,'contractors and potential builders. One very important reason for the decline in per capita lumber consumption during recent years has been the feeling on the part of the public that "lumber is not as good as it used to be." Actually, it is better; better selected for the purposes intended and better manufactured. It is only where competition forces each dealer or each mill to seek a continuously lower level of values that the quality suffers in comparison with former years. The joint trade extension work of our Association and the Southern California retail dealers has been directed to that point. We have sought to establish, through setting up standard grades, plainly marked with the Association stamp, a fair and solid basis for retailer competition which rvould at the same time carry assurance to the architect, contractor and to the public generally that good lumber properly manufactured and correctly graded was easy to obtain.

We have tried, through this difficult time, to encourage retail dealers in other ways. As they illustrate the policy of our Association in its trade extension work, the more important efforts may be of interest to dealers and distributors of lumber in California.

The retail department of an Association member mill at Eugene, Oregon, developed a system of soliciting business by personal calls on farmers in the locality which was so successful that it aroused national interest. The plan was adopted as a plank in the promotion program of the National Lumber Manufacturers Association, which assigned several men to outlining the features of the method before groups of retail lumber dealers in various parts of the United States. The sales promotion message was carried to g'roups of dealers in the Western states by Otto Hartwig, West Coast Association fieldman. Mr. Hartwig participated in 14 meetings of dealers under the auspices of the Western Retail Lumbermen's Association in Arizona. Colorado, Wyoming, Idaho, Montana, Washington and Oregon. He discussed the opportunities for promoting lumber sales by aiding farmers with their duilding problems involved in the proper care of livestock and machinery and keeping farm buildings and equipment in good repair. The meetings aroused the interest of many dealers by emphasizing the value of individual salesmanstlip for lumber in competition with other mer'chandise, and by developing practical means by which the direct selling of lumber might be done su,ccessfully.

Direct selling by dealers of lumber and other building materials is taking hold. More and more aggressive salesmanship in behalf of lumber through selling the house, barn, garage or a modernizing job is to be expected during the coming year and our Association sees this movement as by far the most practical into which we can tie our own efiorts. Other and more aggressive industries have shown the way. The census of distribution for the State of California, just issued by the Bureau of the Census shows that all retail sales in the state during the year 1930 totaled #3,268,545,6,36 or $575.73 per capita. Lumber and building materials including roofing and hardware sold at 1351 retail lumber yards totale d $l$iA2,442 or $25.31 per capita. The automofive groups of retail dealers-automobiles, motor cycles, supplies and accessolis5-2qqsgnted for $779,V\,9F or $tfS.05 per capita. 8,80O filling stations sold $14O,000,000 worth of merchandise or slightly less than the total of the retail yard 'sales. California is credited _by-Jhe__Bureau-of the Census with a 1930 population of 5,677,251' An increase of one dollar per ,capita in retail lumber sales would make a gain of $5,677,251 in the volume of business done by the relail lumber dealers in the state; the business could be increased more than one-third by selling an additional $10 worth of lumber per capita. At $35 per man, woman and child, community by community, more and better

M. R. GILL SPENDS HOLIDAYS IN HIGH SIERRAS

M. R. Gill, Union Lumber Company, Los Angeles, spent the Fourth of July holidays fishing in the High Sierras near Bishop. The streams in that locality are the fly fisherman's paradise, he reports. He made a limit catch every day he was out and brought in some fine specimens of Rainbow, Loch Leven and Eastern Brook trout.

homes and other building would result. The $10 will be there. Some industry will get it. Why not have it come to lumber and be translated into valuable property? We believe it might be done if the lumber industry-retailer, distributor and manufacturer-were as aggressive and as long-headed in planning as are some other industries. It may not seem so difficult to contemplate when we realize that the national expenditure for chewing gum is 94 cents per capita: $10 per capita is 83 1/3 cents a month, or less than 3 cents a day. That is a small investment for the public to make.

Our Association has recently started through our California fieldman, J. C. McCune, a drive to get distribution of the "Douglas Fir IJse Book" to architects and engineers of that state. This book was prepared during 1929-1930 to aid architects and engineers in designing for various grades of Douglas fir timbers. It contains designing tables and other information enabling designers to work with Douglas fir more easily and effectively. More than 3,00O,copies have been placed in the hands of technical men throughout the United States. Wide distribution of this structural handbook undoubtedly will be of material help to dealers selling Douglas fir timbers. California dealers may assist themselves by aiding in this distribution. A charge of $1.0O, which is less than cost, is made for this book to provide for reprinting.

While we see that the immediate and the ultimate way out of difficulty for our industry is through more aggressive and intelligent selling, it is, like many other things, easier to discuss than to plan and carry through.

To stimulate lumber sales constructively our Association must first study the retailer's problems and then plan for dire'ct assistance which will be helpful in moving lumber into consumption. We must then provide ways and means, where needed, to coordinate our plans with those of retail dealers. In both our planning and its execution, we need to 'cooperate with associations of retailers. The regional meetings of dealers to discuss direct selling, the distribution of the Douglas fir book and the grade-marking campaign in Southern California are all examples of this method as used by our Association. That we are continuing these eftorts during the most trying times our industry has ever known is the very best evidence we could offer of our faith in the future of the lumber industry of the West Coast.

Bill Chantland On Northwest Trip

Bill Chantland, Chas. R. McCormick Lumber Co., Los Angeles, is spending his vacation in the Northwest. He will visit the company's mills at St. Helens, Ore.; Port Ludlow and Port Gamble, Wash., and also spend a few days in Victoria and Vancouver, B. C. Mrs. Chantland is accompanying him on the trip.

Mr. Retailer, if you are not in the market for a carload remember you can buy a truck load fronr our stock on our own dock at the foot of Dennison Street, Oak' land. Give this service a trial.