\(/hat Has Become Of Hardwood Export Business?

Washington, D. C.-The Senate Committee on ECA appropriations has been asked to examine the cause for the practical destruction of the American hardwood lumber export business.

The request came from Lawrence D. Kellogg, president of the L. D. Kellogg Lumber Company, Alexandria, Louisiana, representing the National Lumber Exporters Association, the Southern Hardwood Producers, Inc., an association of lumber manufacturers, and the Hardwood Plywood Institute, an association of plywood manufacturers.

Kellogg said:

"Exports have been a mainstay in' the marketing of hardwood lumber for more than 50 years. I am here to appeal to this committee to do something because under the European Recovery Program our traditional and normal pattern of business in the export market is being destroyed."

(Both the Southern Hardwood Producers, Inc. and the Hardwood Plywood Institute are affiliated with the National Lumber Manufacturers Association, a federation of 16 regional lumber manufacturers associations).

Kellogg said that the United Kingdom has been "our best customer" for hardwood lumber. He said that European buyers have "generally preferred American hardwoods for many purposes."

When the Marshall Plan became effective, Kellogg said, it was expected that the full prewar volume of American lumber (about 200 million board feet annually) would be

Recommend Merger oI Two

Northwest Lumber Interests ped."

Tacoma, Wash.-Merger of White River Lumber Co. and Willapa Harbor Lumber Mills into Weyerhaeuser Timber Co. has been recommended to the shareholders of the three companies, it has been announced.

Weyerhaeuser at present owns the majority of stock in both companies, and the mergers would be consummated to provide operating economies through the integration of forest management, research, logging, sawmill and pulp mill operations, J. P. Weyerhaeuser, Jr., president, said.

In response to a question from Senator McKellar as tt-r why these purchases stopped, Kellogg said:

"We do not know for sure. We have been told that U. S. government officials requested that no American hardexported to Europe, but that upon inauguration of the Plan purchases by the United Kingdom "practically stopwood be purchased. This may be the reason. The British say that they cannot spare the dollars and must buy in another country with pounds. Some place in the formation of this entire plan there was an error made which caused us to lose our traditional market."

"The problem," Kellogg said, "is not a lack of desire on the part of buyers and consumers of Europe, but seems to be a refusal on the part of the governments of European countries to allocate the dollar credits (Marshall Plan) for the purchase of American hardwood lumber, although the number of dollars we made available was predicated upon their need for lumber among other things."

"We further know that to stay within the pound area the British are paying for hardwood products from other countries as much as fifty per cent more than the same products would cost in America, even though for fiftv years they have always considered American hardwood superior to any others," Kellogg stated.

Senator Kenneth McKellar (D., Tenn.) is chairman or the Senate subcommittee holding hearings on the app:opriation for the 1949-50 ECA budget.

Permcrnente Cement Co. Elects Ollicers

At the annual meeting of stockholders, Permanente Cement reported net income after taxes for the first quarter this year of $599,700, or 86 cents per share. This compares with $1.05 for the corresponding quarter last year.

Re-elected officers and directors were: Henry J. Kaiser, president and director; E. E. Trefethen, Jr., executive vice president and director; E. H. Heller, vice president and director; Carl R. Olson, vice president; G. G. Sherwood, treasurer and secretary; Wallace A. Marsh, general manager; Paul E,. Rogers, controller; L. S. Corey, H. A. Dick, H. W. Morrison and Gilbert J. Shea, directors.