OPEN FORLIM

August 29' 1955

The california Lumber Merchant

Rooms 508-9-10

108 West 6th St. Los Angeles 14, Calif.

Inasmuch as it seems to me that rve retailers are in a merry-go-round status, f am wondering if there is a Moses to lead us out of this type of wilderness. It is a rarity today to find an owner that believes we can continue prospering at the pace we are now moving.

All this leads me to believe that the company whose policy is, WE, BACK IT WITH OUR MONE"Y AND REPUTATION, will continue to see some of his very loyal customers snatched away for the very reason that he will not be a party to the cheating that is, I believe, rampant in most California areas. This includes grade cheating, to the extent that number 4 common with a very small percentage of three is sold, and invoiced, as fi2 & Better grades.

Short tallying is also a favorite with some. We have been approached and advised that we'could deliver any grade we wanted to, just so long as we wrote the tag the way the order called for, and also provided the builder got away with it.

Of course, our company and I'd like to believe most of my friends, would have nothing to do with such a fraud. It is possible that the builder is over-specifying his grade in the first place, but I doubt it. Now all this is leading up to something which I believe can be corrected before the RULE-OR-RUIN metl.rod of doing business, along with the cheating, has laid us all by the roadside.

Certainly a return to the Association Grade Stamping of all lumber would be the first real obstacle for the unscrupulous to hurdle. In fact, it would stop him cold. If the present grade markings are not acceptable to the industry, then the proposed name changes are certainly in order, and I'd like to see someone get in some good licks along the line of bringing this about. I offer my services if there is some small contribution I can make in such an undertaking.

I believe some effort has been made by Mr. H. V. Simpson and his associates of the West Coast Lumbermen's Association in conjunction with the retailers of both Southern California and Northern California to get this done, butfor some reason a successful conclusion was not reached. I believe the time is right and that there must be some rather influential lumbermen that will lend their efforts to the cause if a start can be made in that direction.

One need but look around to see what others in the manufacturing field have done to better their lot, by proper identification names and grades, and the rapid conclusion n'ould surely be, THE RETAIL LUMBERMAN BETTER GET STARTED ON SOME KIND OF A PROGRAM OR PREPARE TO LEAVE HISHIDE TO POSTERITY.

I have iust received from the Lumber Merchants Asso- ciation of Northern California the survey of operating results ior 1954, prepared by Harold T. Hoertkorn, CPA, covering 72 members reporting. A quick glance at these figures, unless my idea of proper return on investment is all out of gear, will convince an investor that a meeting of the board of directors is in order.

We all realize the ailments in our industry are many, and much experimental medicine must be prescribed in order to cure the disease, but I can see no practical reason to shun the doctor until little or no chance of a cure can be had.

Perhaps rve will return to normal without the aid of a Moses to lead us back to the good old days we wanted to get away from. Don't misunderstand me, I am a Repudlican and know it could be worse.

Slncefely, LARRY KING

King-Marshall Lumber Co., Inc. P. O. Box 1166 Bakersfield. California

Who Shores rhe Profit?

Apparently an increasing number of progressive lumbermen in the country have some sort of a PROFIT-SHARING plan with their employes, more or less similar to what we have in Marsh & Truman Lumber Company here in Chicago.

The writer happens to be treasurer of the Council of Pro{it Sharing Industries and is anxious to get the narnes of all other lumber companies in the country who also have profit sharing.

I would be glad to have each such company drop me a line advising the name of the of;frcer handling details in his company so that he could be invited to attend chapter meetings closest to him to learn of the latest profit-sharing rulingS.

A. Fletcher Marsh, President

Marsh & Truman Lumber Company 332 S. Michigan Avenue Chicago 4, Illinois

Tree Fqrm System Boomlng

Washington, D.C.-More farmers are growing trees as a crop than ever before in the nation's history. The industry-sponsored American Tree Farm System reports the greatest progress in its l4-year history occured during 1954. A total of 3,573,708 acres of tax-paying woodlands were brought into the American Tree Farm System during the year, bringing the total acreage up to 33,692,964. In announcing these figures James C. McClellan, chief forester for American Forest Products Industries, predicted five million acres will be added to the Tree Farm System in 1955. Texas continues to lead tl-re parade of Tree Farm states, with 3,429,363 acres. Washington is second with 3,259,806. Oregon passed Arkansas during 1954 to take third place.

BUILD DEMAND! STEP 2: tOCAt IDT'ERTISII{G AIDS AND PUBLICITY TO DELIVER PROSPECTS TO YOUR YARD!

PLANKWEID AD MAIS help you iie-in with notionol od. verlising, tell customers exoclly where lhey con get lhis wonderful wood poneling ol your yord. Send coupon for mots todoy!

PIANKWEID COIOR EOOKLETS ore perfect for customer bill sluffers, counter lop giveowoys. They show 5 Plonkweld rooms, give slep-by-slep inslollotion inslruqlions. Send coupont ail.|E Hdi, q.dJil tl,LFD Vtr'+il lLil.dd \,{ Lr^ ttpLB hy v.h!d il *dud hr 'khf.Jbil hlfir hD,r'r Lm!,.6,.\d! * -; *, ror nil.,b [o&r d .rrnt.,, .s.urd FNIinFrdf..dumrk&.q tDllr .ftrhtuld it rntr h''( .[.Fn h 6. a. {dn ]t R ff:nt:in, .d dU ta qll,.rlrlr .lhntrrir ril htu d tnl: r.Urdtrds( rq in i6.t rdrs*h.

STEP 3: POlilT-OF-SAtE AIDS T0 CL0SE SALES!

.{Fitr!!'1, lilhDr".$.tu6ddl! L*.* bnlirtuLinhrdtid ik,e

6^i& by Jthdi,qidilrr: tril.&t. lllrd drR{c-SrtuIi Fiiqrdh, Weldwood' Plankweld' *:u:E**v'

FUtL COIOR POSTER of od shown ties in with nolionol odvertising, is o Plonkweld "silenl solesmon" in your showroom. Poster is porl of the Weldwood Profit Pockoge-see coupon!

PIANKWELD DISPIAY shows how Plonkweld clips hold ponel firmly to woll. Customers see how overlopping of Plonkweld ponels hides clips ond noils qnd ends ioinl problems.

In the face of today's'heavy hand of competition, industries are continually forced to readjust and streamline their operations in the race to keep ahead in providing an ever-improved product at a competitive price; a product that will sell over a competitor's line because it offers' the buyer something new, something additional. Generally, the price advantage between two products of like qualitygiven equal buying, manufacturing and distribution advantages-is negligible. If price is cut in order to sell a product, it usually follows that quality will have to be cut.

In the lumber industry, and especially at the retail level, this competition is indeed keen. When you take lumberyards involved in the volume distribution of lumber to large builders and tract developers, you've really got competition. Obviously, as you can't play down last year's 2x4 in favor of this year's more modern 2x4, with "Futuramic Drive," etc., a volume distributor of lumber must appeal to the contractor in another manner.

Accordingly, two lumber firms given equal buying and handling advantages, and bidding on the same job, are in a dilemma. As the simple law of economics dictates, efficient distribution of lumber of like quality and quantity to a job will cost "X" amount. At that point a yard is doing a volume business for nothing; whatever the yard can get above "X," in the face of stiff competition, is profit: below "X,"it will be rushing to a swift conclusion. of business activity.

Two other equally poor alternatives remain: the first being to cut the quality of stock delivered to a job; the second being special credit arrangements and servicing of undercapitalized and "risk" accounts.

Some years ago, Gamerston & Green Lumber Company ofiEcials, in trying to maintain a lumberyard's place in suMivision building-in the face of growing direct mill sales-began to pre-cut studs and blocking at their Oakland yard for delivery to builders in the East BaY area.