WPA Approves Grade Standardization

The W'estern Pine Association adopted the proposed standardized lumber grade program at its September meeting, the first of the nation's lumber manufacturing sioups to take su<'h action.

Covering frame construction grades, the system is to become effective January I, 1963, subject to the approval of FHA. The new grades will be optional for the first six months to give mills and users time to familiarize themselves with the program.

This major step was almost overshadowed by a conference between the lumbermen and Secretary of Agriculture Orville L. Freeman, but its long-range effect will be as significant for the nation's lumber industry.

Under the new grading system, select and paneling-type appearance grades are named Supreme, Premium and Special. l3oard grades are classed as Select Standard, Standard and Utility, while framing includes Special, Standard and Utility.

Included in the program are dual size standards {or green and dry lumber. Dry sizes would be thinner but u'ould contain as much wood and be as strong as lumber surfaced green and shrinking afterward. This would bring about a more equal performance for lumber surfaced dry or green. When both are surfaced to the same size, as at present, the green lumber later shrinks to a smaller size and is weaker,

Secretary Freeman met with the lumbermen to discuss federal timber policies.

Western Pine region mills are No. 1 customers for commercial timber from sovernment-controlled forests. most of them managed by the U. S. Forest Service, a bureau in Secretary Freeman's department.

Much of the Secretary's talk dealt with "Four Points to Survival" developed by the industry over a long period of experience with federal timber programs. Lumbermen are convinced they represent ,"ound policies which are in the best interests of the public, the industry and industry-dependent communities.

Secretary Freeman covered the points as follows:

I. I-le agreed to a policy of full harvest of the allowable cut, and said he would ask that the Forest Service provide an annual performance report.

2. He agreed government timber sale contracts are one-sided and need to be changed.

3. He le{t open the subject of appraisals, stating plans to set up an advisory committee to review policies and procedures with the Forest Service, and to continue efforts to improve appraisal methods.

4. He felt the industry's recommendations for new appeals procedures needed further study. The industry asked that the Forest Service be a "party to rather than judge of the issues."

The Secretary learned lumbermen feel government timber sales are often not fitted to operations, thereby skyrocketing costs, and that oral auction bidding is needed to help protect communities against cut-throat competition.

Though some major prohlems remain unsolved. the Secretarv was well received.

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W. E. Griffee, secretary-manager of the l2-state group-largest of its kind-said: 'oour members were much pleased with Secretary Freeman's address while solutions are yet to be worked out, we now know the Secretary understands the urgency of the economic and employment situation of our industry and dependent communities."

J. B. Edens, Phoenix, Arizona, association president, said the group was "agreeably surprised by the cooperative and constructive approach" the Secretary made,

"He realizes our industry believes in sustained yield forestry," he said. o'I am sure he understands we want sale of the full allowable cut so that public forests, like pri. vate tree farms, will produce full crops for the future."

Generql Business Trends

In August, important economic series continued the pattern of mixed changes that has been evident since the latter part of the spring, with a moderately rising a BurSlsr.prcoL A rlmpla touch of finger lckr 3.3h.

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* Alt W.rt Cocrf Prodsclr qrc dishibvled by rcpulcble deolers notionwidc * tendency in total activity, the Office of Business Economics, U.S. Department of Commerce, said today.

In the monthly review of the economic situation reported in the September Survey of Current Business, OBE reported personal income and housing starts were higher, while retail sales and industrial production held steady. The August model changeover in the automobile industry was an important factor in the less-than-seasonal rise in both nonfarm employment and in the volume of new orders received by durable goods manufacturers.

So far in the third quarter, total consumer, business, and government demand advanced, and a further advance in GNP may be expected for the third quarter over the second.

The latest survey of plant and equipment expenditures earlier issued by OBE points to a continued rise in investment outlays through this year. On an overall basis businessmen are holding to the plans announced earlier in 1962- which call for an

8 percent advance over 1961.

Personal income in August rose to a seasonally adjusted annual rate of $443 billion, up $l billion from the July rate. The increase occured in spite of a slight decline in payrolls in commodity-producing industries. W'ages and salaries in distribution, service industries and government each rose over the month. Last August personal income totaled $418 billion, and the current flow thus represents a rise of 6 percent.

Industrial production in August held even with July a{ter showing a small rise in every month since January. Output trends during the montl were mixed. The only significant increase, about 4 percent, occurred in the iron and steel index, the first advance since February. Further small outputs gains were posted for nonelectrical machinery and aircraft equipment, while output in other industries remained unchanged or moved fractionally lower.

The advance report of durable goods manufacturers indicates that August sales (Continu,ed on Page 64)