SUTTTE &. KELLER tUffTBER CO.

Tax Depreciation

(Continued, lrorn Page 42)

No estimate was made by the Treasury as to the extent to which noncorporate businesses in the lumber and wood products industry would benefit from the new rules. However, for all industries, the Treasury figured that the tax saving by non-corporate business would amount to about onefourth that of corporate entities. Applying this ratio to lumber and wood products would raise the industry's potential tax saving by $5 rnillion, to a combined corporatenon-corporate total of $25 million.

Firms in the lumber-wood products-furniture industry gained much more under the new rules than did companies in most other industry classifications, particularly wood's competitors.

For instanceo lumber-wood products-furniture companies may now recover the cost of machinery and equipment over a 38 per cent shorter period than has been their practice. This percentage was exceeded by only two other industry categories-apparel and sugar-vegetable oil-other food products. The guidelines will cut down the period for recovery of steel and aluminum production equipment by only 22 per cenf. For stone, clay and glass products, the recovery period is shortened by only 16 per cent.

The new "guideline life" of l0 years for lumber-wood products-furniture represents a 56 per cent reduction from the mid-point of allowances set forth in Treasury "Bulletin F." This is the second highest percentage cut for any industry and compares with a 32 per cent reduction for all manufacturing groups combined.

The l0-year guideline for lumber-wood products-furniture is well below the I8 years {or steel, 14 years for aluminum, 12 years for fabricated metal products, 20 years for cement, 14 years for glass products, and 15 years for stone and clay products.

Developed by NLMA's Special Committee on Depreciation Policy, headed by Gene C. Brewer, President of the U. S. Plywood Corporation, assisted by a subcommittee and the staff of NLMA, the industry's rec. ommendations were formally presented to the Treasury Department in a l42-page report June 29. Attending were John Schlick of the U. S. Plyrvood Corporation, representing Mr. Brewer; NLMA Executive Vice President Mortimer B. Doyle, and NLMA Tax Counsel William K. Condrell. The pres. entation, described by Treasury Undersecretary Henry H. Fowler as one of the best made by any industry, capped months of work and shirtsleeve sessions between NLMA stafi members and Treasury officials.

In addition to Mr. Brewer, members of the Special Committee on Depreciation Policy are: Carl Abendroth, Robbins Flooring Company; Leonard G. Carpenter, McCloud River Lumber Company; Thomas L. Carter, W. T. Carter and Brother; J. A. DeMaria, American Forest Products Corporation; Nils B. Hult, Hult Lumber and Plywood Company; Harry J. Kane, GeorgiaPacific Corporation; N. B. Livermore, Jr., Pacific Lumber Company; Thomas J. lVIcHugh, Atlantic Lumber Company; Arthur

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