1950 the year of the sk yt ocket

By Jock F. Pomeroy Executive Vice President [umber Merchonts Associotion Of Norihern Colifornio

Residential building started the year with a rush and kept climbing for 5 consecutive months, set at least 9 all time monthly highs, and broke aggregate totals every month during the year. On July 18, government credit restrictions took some of the steam out of the boom and on October 12 drastic real estate credit restrictions slammed on the brakes. Ifowever, its momentum was expected to carry the boom through the end of the year. There the rocket may 'ivell burst in a brilliant record of residential construction, of materials production, of more people housed in one country, in one year than at any time in the history of the world.

Lumber merchants and building materials suppliers were hitched to the 1950 boom. They started out the year a little low in inventories. As their buying increased a vacuum seemed to build up ahead of them. The pace became furious: more supplies in and a few more going out than coming in. In mid-summer the drain became too great.

First gypsum, then-follorving quickly-cement, insulation board, plyrvood, disappeared from stock. Buyers went from yard to yard and city to city trying to locate the missing

Inspect Teco Research Projects

Washington, D. C.-Twenty-two high ranking officers of the Army, Navy, Air Force, and Marine Corps recently visited the Timber Engineering Company Research Laboratory in a five-hour long inspection tour of its facilities. The Timber Engineering Company is an affiliate of the National Lumber Manufacturers Association.

High point in the program was an address by Carl A. Rishell, director of research, National Lumber Manufacturers Association. Mr. Rishell outlined the over-all problems with which military planners are faced in utilizing wood products for special purposes in our national defense program. He emphasized particularly that military specifications for wood products be reviewed at this time in the light of scientific developments and present lumber resources.

Among the research activities inspected by the visiting officers, two are particularly noteworthy. A full scale trussed rafter of the type used widely in small homes, apartments and items. So the scramble became to get supplies. Some items took astronomical price increases at the wholesale level. Profit margins r.hich had been low in many places in the early months of the year improved as the year progressed. Over-all, for lumber and building materials dealers l95O has been a good year for volume, a good year for net profit. military barracks was tested with a specially constructed sandbox load across its entire span.

Obtaining materials was the primary dealer problem in the latter half of 1950. With a critical shortage in transportation many dealers were sending their own equipment into Northern California and Oregon for lumber and plyrvood.

Occasional complaints rvere heard of unethical wholesale suppliers breaking the sequence of their deliveries to take advantage of price increases. Undoubtedly that ocurred in some instances. In general, however, the dealers recognized that unprecedented demand from home construction, dislocation in transportation and government purchasing were the causes underlying the materials shortage, and that their suppliers generally were cooperating in every way to keep materials moving on an equitable basis. As the year draws to a blose it is expected that most materials (excepting metal items) will be in good supply by January l.

The real estate credit restrictions imposed on October 12, 1950 have caused concern. It is generally felt they are so severe that a reduction in residential construction of more than the one third desired by the government planners n'ill result. Barring a major change in the foreign situation some easing of these credit restrictions during l95l is anticipated.

From the latter part of 1950, 1951 looks like the year of the big "IF." If-no major war develops; If-government controls do not become too restrictive; If-materials are available; If-government credit restrictions are eased; Ifmodernization and repair business can be increased; If-the many prospective home builders with adequate finances can be induced to build, l95l may well be another outstandingly good year. In any event l95l will be a good year for those firms that return, with the market, from distributing to merchandising.

Additional interest was centered on a huge laminated ship frame sent to Teco by the U. S. Navy for testing. Other laminated ship timbers are being developed by Teco under a special contract with the Bureau of Ships. Specifications for frames built under this program call for dimensions up to 70 feet in length.

This inspection tour made by officdrs of the Industrial College of the Arrfied Forces is part of a larger program being conducted by the Timber Engineering Company to acquaint members of the four services in problems affecting the utilization of wood products for military purposes. The Washington, D. C. location of the Teco I-aboratory makes it well adapted to research projects that require close working liaison with various government activities.

Celluloid, the first wood pulp base. plastic, was developed in 1869 on a