WHITE FIR

STUDSprecision trimmed DIMENSIONSHEATHING

W.P.A. Grode-morked

Direct Mill Shipments vio Truck & Troiler

Federql Excise Tqx on Ccrtcrge

The Southern California Retail Lumber Association last month had a number of scattered calls from members, advising that they had had a caller from the Excise Tax division of the Department of Internal Revenue who had told them that since they make a separate charge for cartage they are subject to the Federal Excise tax on'such chargJs. However, he advised them that if thcv would execute the forms which he left with them, the deoartment would waive the 5/o per month delinquent penalty charge-rvhich was not to exceed 25/o for any one year-on the payment of their delinquent excise tax that had accumulated since January 1955.

Believing such a tax, assessed retroactively, without allowing our members an opportunity to raise their prices, would be an intolerable burden on our industrv. we went into the matter quite thoroughl;;', reported SCRLA Exec-

Monufacturers

L.A.'s 254,303 New Homes in I O Yeors

In the past 10 years, 264,303 nerv drvelling units have been built in Los Angeles, and 500.0@ ne1.r' residents have moved into the city, the City Planning Dept. officially reported J::dy 12. The Planning Commission's program for the nen' fiscal year u'ill be substantially broadened, said President R. W. Harper.

utive Vice-President Orrie \V. Hamilton. Fortunatelv for our disturbed members, the agents u'ho had callecl on ihem had obviously interpreted the-lan' incorrectly ir.rsofar as retailers are concerned; especially in cases of tiose that make deliveries incident to the sale c'f their ou'n merchandise rvith their ou'n equipment, n'hich is explained belorn'.

The tax imposed by Section 3475 of the 1939 Code, norv shou'n as Section 4271, which rn'as Dassed in 1939 and became effective in early 19-11, applies io the amounts paid for the transportation of property to a person engaged in the business of transporting for hire. Section 143.1 of Regula- tion 113 states that such a person includes a common carrier. contract carrier, or other person transporting property for hire wholly or in part by rail, motor vehicle, u'ater or air.

In 1942 the Commissioner of Internal Revenue. hou,'ever. ruled, "In general, .ivhere the delivery activities of a rvholesale or retail merchant are carried on with his orvn trucks and are merely incidental to his business of selling merchandise, the merchant is not regarded as a 'person engaged in the business of transporting property for hire' even though a separate charge for the delivery is made to the customer."

(Mim. 5447 C. B.l9+2-2,28A.)

The SCRLA is advised by its legal counsel, Joseph K. Horton, who took this matter up lor it rvith Alvin A. Underhill, chief of the Excise Tax department in Los Angeles, that should an agent from the Excise Tax department call on those members tvho do not operate motor vehicles for hire, they should call Miss Pat J. Herriott, tax examiner, and tell her of the incident. She can be reached at NtAdison 5-8971, Extension 748. Her address is Room 1346, Federal BuildinC, P. O. Box 231, Los Angeles 53, California. In talking with Miss Herriott, Mr. Hamiltor-r found her understanding of the problem and cooperative. Tl-rings she would need to knorv are: name of agent making call, I,r'hether or not you transport propertv for hire, and any other pertinent facts about your operations.

NewIndustry Troct ot Venturcr

Ventura, Calif.-The Santa Clara Realty Co. has bought a 40-acre parcel of land east of the city for an industrial subdivision on Highway 101 and the S.P. mainline. There will be 48 sites for manufacturing, warehouse and storage yard uses. with freervay and rail'il'av access a short distance from the airport.

DouglasFir

Ponderoscr Pine

Royof Ook

Flooring

Sugor Pine

Georgio-Pocific fo Furlher Expond Reseorch Activities

Dr. Robert W. Hess has been named director of research for Georgia-Pacific Corporu-tion, announces James L. Buckley, vice-president. Hess has spent a lifetime in wood fiber research, has been associate professor of forestry at Yale University in charge of rvoods research, ll'as head of the w'ood and plastics research division of Curtis-Wright Corporation, and comes to Georgia-Pacific from the Mengel Company, rvhere he rvas director of research and general manager of their Laurel, Mississippi, operations.

Georgia-Pacific's continuing research program has resulted in the development of GPX Plastic-faced plywoods, the patented G-P Clip System for Savannah paneling, a wide range of prelinished hardrvood plyrvoods, the patented G-P Striated panels, G-P Hardboard and other products.

In discussing this expansion of Georgia-Pacific's research division, Mr. Iluckley stated, "The forecast demand for oroducts made from lr''ood fiber makes it important that a n.tore complete and profitable use be made of- each log harvested. Georgia-Pacific Corporation, rvith its vast outright ou'nership of timber and timberlands, has actively pursued a development program airned at increasing the return from its timber reserves by adding ner.v, and up-grading e>.isting, forest oroclucts. Dr. Hess rvill coordinate the development of ner,r.products in the building, paper and chemical-fields, and lvill r,r.ork u'ith Georgia-Pacific production and sales departments to accomplish more profitable utilization of rvood fiber, thus enhancing the value of the corporation's large timber holdings."

Anaheim, Calif.-Permits 31 drvellings here. at $375,250 rvere approved for