"Honeymoon Of Soaring Prices ls Over"

"We are not pessimistic. We do not see any picture of doom ahead. But we do see an urgent need for the reduction of costs. Accordingly we warn management and labor and above all Provincial Governments as the owners of timber, that the honeymoon of soaring prices is over."

So says an editorial in The Canadian Lrimbermen's Association official mouthpiece. The statement caught our eye and held our attention,, because we have heard something of the sort from lumbermen on this side of the border many times of late. Yets, that the honeymoon of soaring prices is over, seems to be quite a popular opinion right now.

And the Canadian statement that there is "an urgent need for reduction'of costs," will no doubt be echoed from this side of the border. Lumber costs are enormously high. Timber is high, logs are high, labor is high, equipment is high, selling costs are high, everything that goes to make wooden boards is high-priced.

Mr. and Mrs. Floyd Elliott returned to San Francisco redently after a one-week trip to New York where they attended the 40th class reunion of Floyd's old alma mater, the University of Rochester. Floyd has.offices at 1 Drumm Street, San Francisco and represents the Reeves Taylor Lumber Co. of Oregon.

And this in the face of the fact that on every hand we hear and read of demands for higher costs of most things. Hardly a labor-employer contract meeting is held without notice of increased demands from employes. Continually wages go up in most lines of industry. Which means that the cost of whatever that industry produces must also go up, just as was done recently with steel. Which means that all other important commodities, since all are intermingled finally, must go up in price.

For how much longer? Wages form the bulk of all production costs. Doesn't it seem as though there would come a time when contracts would be renewed on existing levels, rather than go eternally upward? How much gas can this business balloon stand? Do we continue to just shut our eyes blindly and keep blowing into the balloon, common sense forgotten and wisdom forsaken? Do we just dare the balloon to burst while doing our best to explode it?

As Mr. Shakespeare said: "We pause for a reply."

John Northam, manager Southern California territory for the Harbor Plywood Corporation of Southern California, returned the latter part of June from an extended trip to the middle west. While away he visited company branch offices in Chicago, Cleveland and St. Louis. He also arranged for moving his family to North Hollywood.