SAN TUMBER COMPANY PEDRO

$3.50 Pramium on Fir Boards M.y Be Passed on to the Buyer

Lumber distribution yards, including retail yards, were authorized by the Office of Price AdminiStration to pass on to their buyers the $3.50 per 1,000 board feet premium on Douglas fir boards which was recently authorized to accompany a special board cutting directive of the War Production Board.

The $3.50 mark-up is applicable to the three upper grades of Douglas fir boards-select merchantable, No. 1 common and No. 2 common boards. For No. 3 common boards, a mark-up of $1.50 per 1,000 board feet is established.

The increases are authorized in Amendment No. 1 to Revised Maximum Price Regulation No. 26 (Douglas Fir and Other West Coast Lumber) and become effective July 15. 1943.

On April 16 of this year, producers of Douglas fir boards were authorized to increase their prices by $3.5O per 1,000 board feet on the three upper grades, and $1.50 on No. 3 boards. Purpose of the increase was to permit compliance with WPB"s directive calling for an increase in board production from a normal percentage of.7 per cent to 30 or 40 per cent.

Distribution yards until the issuance of today's amendment were required to absorb the higher cost of the lumber from the mills, since the increased flow of boards was expected to go to United States Government purchasers rather than to the yards.

Distribution yards since April 16, however, have sold out of inventory the bulk of their Douglas fir lumber obtained prior to the $3.50 producer's mark-up, and the War Production Board, under Limitation Order L-218, is releasing increasing footage of boards to the yards.

As a consequence, OPA said, the yards could not be expected to continue to absorb the higher mill prices, so the amendment was issued, permitting the yards hereafter to pass on to buyers the increased cost.

Technically, the only distribution yards permitted to raise their prices under the Amendment are those making sales under Maximum Price Regulation No. 215 (Distribution Yard Sales of Softwood Lumber). The majority of yards operate under that regulation, but some still calculate their prices under the General Maximum Price Regu: lation. However, OPA said, it is anticipated that very shortly all yards will be brought under the provisions of Maximum Price Regulation No. 215, relieving any squeeze in Douglas fir board prices now causing hardship to yards operating under the General Maximum Price Regulation.

This action will have no effect on the cost of living, OPA said, because fir boards go almost entirely into government use or into industrial production and packaging of agricultural commodities. OPA added that actually a cheaper source of fir boards is made available by the change because yards have had to produce boards by resawing thicker stock, and the higher cost of the thicker stock plus the resawing built up to a price in excess of that authorized by this action.

COOS BAY LUMBER CO.

Report of Coos Bay Lumber Co. for six months ended June 3O, 1943, shorvs net profit of. $211,437 after all charges and federal and state taxes. This is equivalent to $3.33 a share on 63,500 sha-res of capital stock outstanding and compares with $254,5i78, ot $4.01 a share, earned in the like 1942 period.

Likes Merchant

I enjoy the magazine always. It is one of my favorites.

Dick Welton, Victory Lumber Co., Chula Vista, Calif.

tOS