THE CALIFOR).IIA s.'r.Hu$r",-" LUMBE R ME RCHANT

Editor

SliTTE*L"TiT'":l',0i.1:"t""' Los ANGELES 14, cALIFoRNIA, ocroBER ls, 1es6

How Lumber Looks

After'a sharp rise the previous week when new orders went 2.&% above production, orders iell 8.5% below and shipments of 488 mills werc 6.7/o below production in the week ended September 29, reported the National Lumber Manufacturers Assn. For the year to date, shipments were 1.0/o and, orders 2.4/o below production National production of lumber totaled 3,537,000,000 board feet during August, estimated the NLMA-IS/o above July but 3/o below August 1955. August shipments were ll/o above July but ll/o below last August; new orders were up 7/o lrom luly bt 12/o below August 1955.

After a flurry the previous week when orders zoomed 5.4/o over production, they dropped 12.3/o und,er production in the week ended September 29, reported, the West Coast Lumbermen's Association. Shipments ol of 112,969,658 feet in the week werc 6.1/o under production of 120,912,084 feet. The weekly average of west coast lumber production in September was 179,304,000 feet, reported WCLA Secretary Harris E. Smith. Orders averaged 162,961,0A0 feet and shipments 165,883,000 feet. The industry's unfilled order file Sept. 30 stood at 554,132,000 b.f.; stocks 1,009,979,000 b.f.

Orders of.87,022,000 feet ,also trailed production of 89,536,000 feet again in the week ended Septembet 29, reported the Western Pine Association. Shipments of 80,365,Q00 feet were 7.5/o below orders and.8.4/o production, although orders had risen sharply 2.5fl; above production and 16.O/o above shipments the previous week. WPA Assistant Secretary-Manager W. E. Griffee reported for the third quarter, 1956, and probable fourth quarter: "Third quarter production is estimated. at 246 million feet, 3.1/o below the 1955 period but down only 1.2/o for the year to date. Shipments wete 2218 million feet, down 8.9/o from a year ago, while total 1956 shipments to date ate 5.2/o below 1955. Based upon demand, fourth quarter shipments

(Continued on Page 80)

wEtcofrfiE

In this issue, we $/elcome these new advertisers into the family of California Lumber "Merchant-isers":

PONDEROSA PINE

Colii.726l

Merchsnt's picforiol reporting stqrlr on Poge 16 Vagobond EdiloriclsMy-F;";;t. S;;t. .: :.

Fun-Fccts-Filosophy

Government Eoses Reins on Tight Mortgoge Money. Cqlifornio Lumber Merchcmt Wins Top Storv Award. .. Corter Lumber Co. Thrives in Ooklond, Too.

"Potqtoes qnd Men"-An Editoriol. .. ..

How Tocomq Deqler Used Christmqs Plywood Project.. 58 Students qt Sontcr Ancr in Troining Institute. .. .. Ambrose Opens New $100,000 Goleto Retoil Yard. The ADVERTISEBS INDEX will be lound on Pcge 80

The Colifornio Lumber tlerchont Wins 'Top Story' Aword

On August 14, The CALIFORI{IA LUMBER MERCHANT was notified by telegram that it had been selected to receive a "Top Story" Award at the 1956 Cal.ifornia State Fair and Exposition, and last month, on the evening of September 1, the handsome plaque illustrated at the right was presented to your lumber and building materials trade journal by Governor Goodwin J. Knight in Governor's Hall on the State Fairgrounds at Sacramento at a dinner honoring the state's Press-RadioTelevision facilities.

The "Merchant's" top-story entry this year was its coverage of 'the devastating Northern California floods last December just before Christmas. Through day-by-day reporting from his contacts on the scene, this magazine's Northern California representative, Max M. Cook, gclt the details of the tremendous flood havoc in the mill area to the Los Angeles editorial offrces, where, in rapid-fire order, they were compiled in a running commentary and rushed into the January 15 issue while the damage was still being tallied and fresh flood warnings were being posted.

The State Fair committee reported a record-breaking number of entries this year from the state's leading newspapers of all classes, radio and television stations, and magazines. One of only three "Top Story" winners among all of the many entries in the trade journal field, the Award to this publication read:

..TOP STORY AWARD_THE CALIFORNIA LUMBER MERCHANT, Los Angeles, for 'Flood Disaster.'-For intelligent and lively use of a semimonthly periodical to supplement daily news on a catastrophe of major interest to an industry."

We are grateful to the California State Fair and Exposition comrnittee; to John Ickes, supervisor of Public

Government Eqses Home-building Money to Spur log in Construclion, But Builders, Lenders Soy lf's Not Enough

The government took four steps late last month to spur lagging construction by easing up the "tight money" market but spokesmen for the building and savings and loan industries only called it "a step in the right direction." Albert M. Cole, boss of the Federal Housing Administration, lowered some down-payment requirements to ease the flow of mortgage money and said the governmental action "r,vill be very helpful in stimulating the mortgage market."

FHAdministrator Cole said the effect would be felt immediately but predicted that the "biggest impact" would not come for a couple of months.

Some of the mortgage bankers criticized the government's actions as "inflationary" and Willian, Levitt, pres-

Socol Home-building Record

Willard Woodrow, National Ffome Month chairman for the Home Builders fnstitute, said on the occasion of National Home Week last month that sometime during this Fall the industry will start construction in Southern CAlifornia of the 1,300,000th home since 1946. "This unparalleled record of construction achieved in just 11 years has truly been a "o111s1stqn€ upon which prosperity for all industry has been built in this area," he said.

Relations and Publicity, and deeply appreciative of our newly won honor. Our sincerest thanks to Judge John Wesley Noble, well-known Oakland author, president of the California \Mriters' Club. and author of the current best seller about Attorney Jake Ehrlich, "Never Plead Guilty."

-The CALIFORNIA LUMBER MERCHANT.

ident of the giant construction firm, called the steps "most inadequate."

The four steps announced by the White House-all effective immediately on deals which are not actually closed -would:

Lower to 5/o from 7/o down pavment on homes appraised at less than $9,000 under the Federal Housing Administration's mortgage insurance program. There would be no change in the down payment requirement on F. H. A. homes appraised at more than $9,000.

Membei savings and loan associations of the Federal Home Loan Bank system will be able to borrow up to I2%% of their share capital, instead of. only l0/o.

Sellers of F. A.-V. A. mortgages to the Federal National Mortgage Association will be required to buy the association's common stock in an amount equal to 1/o-instead of. 2/o-of the mortgages they sell.

The F. N. M. A. also will increase to 94/o from 92/o the price it pays on advance commitments to buy F. H. A.V. A. mortgages at a later date.

These moves, the White House said, will "encourage home builders and home buyers to plan ahead with greater assurance of adequate financing." In particular, the Administration said, the credit relaxations would help the constrtrction of lower-price homes. Housing Administrator Cole added his personal prediction that housing starts, now running at an annual rate of about 1,100,000 units, might yet reach 1,200,000 units this year.

For the first eight months of the year, housing starts