Reuben Nicholas Appointed Gener.l Manager

L'he Grizzly Park Lumber Corp. of Blue Lake, California, is pleased to announce the appointment of Reuben Nicholas as its general manager and plant superintendent as of July l, 1949.

Mr. Nicholas, a career lumberman, started in 1912 with the Delhi Lumber Company, working for them until 1917 when he entered the United States Air Service, serving as instructor until 1921. In 1922 he started as a millwright with the Diamond Match Company at their plant in Sterling City, in 1939 he became their superintendent; and subsequently their engineer in charge of their plant in Chico.

Since 1944 he has been the superintendent of machinery and power at The Pacific Lumber Company's plant in Scotia.

Mr. Nicholas and his family have recently moved to Blue Lake where they are residing in one of the company's homes.

Consumer Consumer ended June lation W of

Government Acts to Relieve Lumber Price Squeeze

SAN FRANCISCO, July 5-To provide purchasers of National Forest timber with "insurance" against a squeeze betr,veen the high cost of timber and falling lumber prices, the U. S. Forest Service today took action to adjust the cost of National Forest timber periodically to fluctuating market prices.

Perry A. Thompson, IJ. S. Regional Forester for California, explained that National Forest timber is appraised and advertised at a minimum price for sale to bidders. Under the procedure in effect until today the successful bidder cut and paid for the timber at the bid price, which was never less than the advertised price. If the lumber market went down, or up, the price of his timber remained at the bid rate.

Under the new system, the procedure will be the same except that the price the bidder agrees to pay for the timber rvill be adjusted quarterly to the average market prices of lumber as shown by the price index of the Western Pine Association. The adjustment will be 40 per cent of the decrease, or increase of the price of lumber as shown by the index. For example, if the lumber price index drops $10 below the base index, the cost of National Forest timber will automatically drop $4.00. If the price index goes up $10, the cost of timber will go up $4.00. The new system can not apply to short-term National Forest timber sale contracts already in force, but may be used in existing long-term contracts which have provision for stumpage rate adjustment.

Controls Are Ended

credit controls of the federal government 28th, Congress having failed to extend Reguthe Fede:al Reserve Board.,

Sqles Tqx Increased

The California State sales tax automatically jumped from two and one-half to three per cent on all retail purchases except food on July first, 1949.

Mr. Thompson said, "As a result of uncertainty in the general economic situation, lumber manufacturers have been reluctant to buy National Forest timber at present rates. Many believe that lumber prices are headed for a sharp drop in 1949.

"The eft'ect of this new system is to divide the risk of lumber price fluctuations between the Govsrnment and the timber purchaser. Our purpose is to contribute to the stability of California's lumber industry, its workers and the many communities dependent on timber from the national forests."