\7e yerha euser tVill Not Cut Prices To M eet Present Competition

Taking the lead in a movement to establish a firm price basis, the Weyerhaeuser Sales Company, through wtrictr the Weyerhaeuser products are marketed, has announced its determination to put a minimum price level on all its lumber and refuse to accept orders at lower prices.

The announcement is issued in the shape of a letter under date of August 15, written by F. K. Weyerhaeuser, president of the Weyerhaeuser Sales Company, and addressed to their salesmen, reading as follows:

"During the past decade the lumber industry showed plglts during [922 and 1923 and very slight profits in Dn. All other years showed losses ringin? from slight ones in 1928 to tremendous losses in l92L and 1930. Ttre industry has been receiving continually less volume and less price for the past two years. Our job of selling lumber and other forest products has become increisingly difficult. There has developed a species of competition within the industry which piys little attention to net realization and thinks only of retaining old customers, maintaining the position of the individual manufacturer in a given market or of guaranteeing a certain rate of operation which the particular concern may consider essentiil to its success. As you all know, there are very few units in the lumber industry which can operate on today's basis of volume and price and secure for their standing trees their cost or their market value as of March 1, 1913. Most op- erations are sacrificing the value of timber, the deprecil- tion charge on plant and equipment, and in addition sacrificing a measure of capital funds, the object being to remain in business in anticipation of a turn for the belter.

"Conditions have become so bad that owners of timber are losing confidence in its value and are attempting to throw it onto an unwilling market at a time rvhin tl,rere are no buyers. The lumber industry and we, as a part of it, are standing with our backs to the wall fighting for oulvery existence.

"After pointing to these alarming conditions. we add no uncertain terms that the stockholders and owners secure a reduction in existing surplus stocks of lumber. This is obviously the logical and reasonable policy, both from a public and a private viewpoint, in the interest of conservation of our natural resburces, in the interest of workers in the lumber industry who depend on it for their livelihood and who have suffered equally with the owners of mills and timber by reason of reduced wages and reduced working hours, and in the interest of public and private timber owners. The chief obstacle to such uniform curtailment is its illegality under the Sherman anti-trust law. The units in the lumber industry cannot agree to curtail production among themselves without being exposed to the action of this law.

"'We can, however, act independently and hope that all other units of the industrv will do likewise. Ii is our intention to adjust the rate o1 production at our Fir mills to correspond with the rate of sales which will develop on the program outlined above. If we cannqt secure the cost of production from our lumber, we will reduce that production to the point where we can.

"In the meantime, we wish you to keep your District Offices fully posted as to competitive condilions so that rye may be advised at all times to what degree the rest of the industry decides to follow the same program.

"This is not an easy program for the members of our. sales organization. It will require the utmost of work and ability in each one of you. We must redouble our efiorts to keep these mills operating and to keep employed the thousands of men who depend on us for |heir -liv-elihood. This is the greatest test which the Wey6rhaeuser Sales CompSny-has ever faced. The owners of the Companies andlfr:,e Management of the Weyerhaeuser Sales-Compa4f expect you to meet the test."

\bleuowD MATcH coMPANY BUYs GALT YARD

of the Weyerhaeuser Sales Company and its affiliated companies have great confidence in eventual timber values ancl in the fundamental stability of the lumber industry. We recognize the need for revolutionary changes in thi direction of economical operation both in timFer rnaintenance, sustained yield, logging, manufacturing and distribution, in the attitude of the public and the government, and in the efforts of the industry towards reiearch and product development. These are all things that Can and will be done but they take time in terms of months and years.

"There is one thing whieh we can do today: Definitely to- take the position that we will put a stop to the demoraiizing drop in lumber values in so far ai we individuallv are able; that we will put a price on our fir, hemlock ani cedar lumber which is our lowest price, and that we do lot wish to accept orders for less money. We are therefore instructing you today, and till further notice, to consider our regularly authorized prices on fir, hemiock and West Coast -cedar as the low_est prices we care to accept. We. wish yof tg energetically lnd courageously solicit business on this basis with the realization that our mills are not interested in orders carrying lower prices.

"The Timber Conservation Board appointed by president Hoover has recently recommended a generai curtailment of production by all lumber producing districts to

The Diamond Match Company, of Chico, California, has p^u1ch1se-{, the. D. A. Williamson Lumber Company yard at Galt. California, the transfer being made.septemblr-5th.

V trlr. and Mrs.