HEARI]I 1UMBER COMPANY

P.O. BOX 367

PHONE: SPring 2-5291

TWX: MF 76

MEDFORD, OREGON

Brqnch Office: P.O. Box 799

ARCATA, CAUF.

VAndyke 2-2447

TWX: ARC 3l

Brewsler & Blume, Inc. Security Building

Posodeno, Colif. MUrroy l-3140

TWX: PosoCql7339

Eorle D. Bender

2559 Cqrlsen

Ooklqnd 2, Colif. ANdover l-7250

Direct Teletype line5-4ll Offices-for immediote Quototion ond Confirmotion of Orders

Oransc. \-rrrtura, Iicrn arr<1 Santa Ilarb:rra corrtrties. The honrc officc scrr-iccs San Ilcrrrarclino, l{ilerside antl Imperial corrrrtics, irrclrrrling ,'\rizc-rtt;L :Ltrcl Ncvacla tlciilers as n'e11. 'fhe largc rlistlibution lrlant is locatc<1 otr l1 ighu,al' 1)1) :in<1 thc San Ilcnr:rrrlino irt'cu':rr-, oll'crittg fast <lclivcrr. to al1 Soutlrlancl cities regar<llcss of location.

DIR,ECT MItt SHIPMENTS

.:.***** Afl Species ******, Exclusive Represenfofives in Southern ColiforniqTATBOT TUMBER COMPANY

DON PHlilPS, f R., Wholesale lumber 2613 Wilshire Blvd., Sonno Monico, Colif.

EXbrook TWX: +3778 SMON 73r7-U

Huron lumber Complefing Showroom llrrron Lrrrnber & Supply Conrpany u'ill soon scireclule a grar-rcl opening to .celebrate cornpletion of a brand-new store anrl shorl'room. H. Doran Hays is o\\'ner-rnan:lgcr oI tire long-establishecl San Joarlrrin Valley yarrl.

Frqnk Heqrd Nqmed tMA Aftendqnce Ghqirmqn for NRTDA Exposition

Frank E. Heard, partner in the Motroni-Heard Lumber Qgmpany of Woodlarrd, Yolo County, has accepted chairmanship of the Northern California attendance campaign for the sixth annual Building Products Exposition whictr the National Retail Lumber Deal6rs Association will present in Cleveland, November 14-17.

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A 261ear veteran of the lumber and building materials industry, Mr. Heard is currently president of thJlumber Merchants Association of Northern California and active in his community affairs. He was the mayor of Woodland from 195158 and is now a city councilman.

In Southern California, Frode B. Kilstofte, president of Rossman Mill & Lumber Co., Wilmington, and an officer of the Southern California Retail Lumber Assn., is serving as Attendance chairman for the SCRLA.

Surprises, Progress Record Highlight Western Pine Assn. trleeting

Portland-An expected record in Western Pine Lumber volumes, progress in electronics and an eye for quality control highlighted the semi-annual meeting of the Western Pine Association here, September 23-25.

And, in a dramatic surprise, S. V. Fullaway, Jr., secretary-manager of the Association for 30 years, announced his plans to retire at the end of this year.

Pres. I. D. Bronson, Cascade Lumber Co., Yakima, pointed to quality control from the woods to the consumer as the number one challenge of the lumber industry today. "Our industry needs to take aggressive leadership to be sure the grades we produce and sell are actually delivered, and are actually properly specified for the use intended for those grades," he said.

He called for a close working relationship at the local level with architects throughout the country to explain grades and simplify lumber span tables.

W. E. Grifiee, assistant-secretary-manager of the group, predicted the Western Pine industry is "practically certain to hang up new records in production and shipments."

While demand has softened from its earlier highs, he indicated shipments might hit a record 9 billion board feet for this year, while production could surpass the 9.03 billion top mark set in 1956.

Chairman of the National Wood Promotion Program, A. B. Hood, Anderson, Calif., said the national program is helping make America more wood conscious. And the 'Western Pine contribution to the program is the largest among the 17 regional lumber trade associations participating, he pointed out.

An electronic device to detect and trim out flaws in boards, being developed by the Association's research laboratory here and an eastern industrial lab, won full support of the Association board. Funds were granted to complete the work on the machine.

The Association plans efforts to have grading of lumber set up in the G-I on-the-job training program.

J. P. Reinmuth, Lewiston, Idaho, reported the industrywide iniury rate has been reduced 207o since the Association began its organized safety promotion program in 1956 to "make this one of the safest industries in the country in which to work."

A. Z. Nelson, National Lumber Manufacturers Association, speaking for M. B. Doyle, told the meeting the lumber industry has fared much better than expected at the hands of Congress this session.

C. A. Gillett, managing-director of the American Forest Products Industries, noted the growing influence of women in public, educational and conservation affairs. AFPI has recently established a new Women's Affairs division, with a woman as a director.

Jopon Typhoon Domoge Reported

Additional details of the September typhoon damage done in Japan, reported to the Imported Hardwood Plywood Associatioh, San-Francisco, include the word that 10,000,000 sq. ft. of plywood was estimated destroyed on the spot in Nagoya, with October production to be 18 million sq. ft. below normal, and 10 million sq. ft. below normal in November. Some reports, however, say the reduced October-November production loss may total as high as 50,000,000 sq. ft. It is reported that the Nagoya area produces about 60/o of. the total Japanese export of Lauan panEls and approximately 30/o of. the total export of doorskins.

First reports of the devastation created by "Typhoon Vera" were reported in the last issue.

Tox Aspects of Bqd Debrs

(Continued from Page 14)

Generally, a reserve for bad debts will be based on experience. You cannot arbitrarily guess at the percentage of yoLlr accounts receivable that is likely to go bad. A certified public accountant, for instance, will determine an adequate reserve for bad debts as a normal part of his audit orocedure. To do this, he will analyze tire accounts receivable to find out which accounts are past due, and the length of time they have been outstanding. He will then evaluate the slow-moving receivables in light of discussions with your company's credit manager or with whoever handles your collections, and decide on the amount that may not be collected. Such a reserve based on a factual analysis is almost invariably acceptable to the Internal Revenue-Service.

If you do not have a CPA, and have to decide for yourself whether you are better off to use the charge-off or- reserve method for claiming bad debts, you will need to know how the reserve works. Say, for example, that at the end of the year you show accounts receivable of $20,000. Based on an analysis of your accounts, you determine that $600 would be a reasonable estimate of accounts that are likely to become uncollectable, so you deduct the $600 as a reserve for bad debts.

During the following year, $550 worth of receivables actually go bad, leaving $50 in your reserve account. Your receivables are now up to $25,000, and you estimate that $750 will become bad debts. Your reserve still has 950 left over from the previous year, so you deduct an additional $700 as a reserve for bad debts, and btit'rg the total reserve up to the estimate of $750. This same proiedure would then be followed each year.

What Happens When a Bad Debt Is Recovered?

use advantageously as a deduction that should be considered here. The foregoing applies only to a taxpayer who has been deducting bad debts on a charge-off balii. Those taxpayers who are on a reserve basis will credit any recoveries to the bad debt reserve.

If you need additional information on your bad debt deductions or on any other business problems, consult a qualified advisor.

a you cha ly the earlier charge-off helped reduce your taxes. The amount of tax you sav_ed when you made the deduction has nothing to do with it. It is the amount of the bad debt that you were able to

Wqlter G. gCRllVl

Walter George Scrim, 81, "the grand old man" of the Southern California lumber industry, passed away October 16 after several months' illness. He was the president of the Scrim Lumber Company, which was recently moved to South Pasadena after manv vears in downtown Los Angeles, and-piesident emeritus of the Philippine Mahogany Association, in which his name and good works were known all over the world.

Mr. Scrim was born in the city of Quebec, Canada, in 1878, went to western Ontario, then Vancouver, B.C., thence to California, next across the Pacific to the Philippines, and back to Southern California in his 65-year career as a lumberman who. in that time. manufactured. sold and distributed the famous white pine of eastern Canada, the jack pine of southern Canada, Douglas fir and hemlock of the Dominion's {ar west, and the woods of the Philippine Islands. It is widely recognized that perhaps no one man had greater influence than Walter Scrim in introducing and popularizing the Philippine mahogany and other hardwoods into the United States, a task to which he devoted the last 40 years of his life.

He spent his early years in Ontario as estimator, grader, inspector then began his western odyssey, entering the wholesale commission business in Vancouver and operating a sashand-door factory. The move to Los Angeles followed WWI and there he accepted an opportunity to become salesmanager for Findlay Millar Timber Co. in the Philippines. While with this large manufacturer, Mr. Scrim visualized a much broader market for f'hilippine hardwoods than then existecl, and he returned to the U.S. in 1922 to survey the market and develop the field. It was then he established the Los Angeles area headquarters he maintained till his death last month. He also continued the relationship with F'indlay Millar and the firm that today bears his name is still the exclusive distributor for its lumber output.

Believing in the need for close cooperation, Mr. Scrim took a leading part in organizing the Philippine Mahogany Association and was elected its first president. He served as the association's chief executive officer in the 30 years from 1927-57.

Mr. Scrim leaves his wife, Agnes L. Scrim ; three sons, Robert R. of Colton, Calif., Alexander L. of South Pasadena, and George D. Scrim of Pasadena, who was active with his father in the lumber business; eight grandchildren and a sister of Vancouver. Funeral services were held October 19 at Saint James Episcopal church, in which Mr. Scrim had been active. and interment was made in San Gabriel cemetery.

Joseph W. S'HERAR

Joseph W. Sherar, 54, director of trade promotion for the Western Pine Association, died October 13 in Portland. Ore.. after three months' illness. He had headed the nationwide advertising and trade promotion program for the l2-state Western Pine industry since 1947 and was well-known ancl respected throughout the lumber inclustrv nationallv. Mr. Sherar was bonr in Novemb er 1904 in Spokane, Wash., where he was a high school classmate of Bing Crosby. He started his lumber work at Potlatch, Idaho, after college