California Buildinq Shows 208.8 Per Cent Increase

On Sunday, November 12, Charles C. Cohan, Real Estate California for the first ten months of this year. Editor of the Los Angeles Times and writing in that pub- The Los Angeles building permit total for the first ten lication, estimated that total construction for Southern months of 1950 ttas $372,75O014, an increase of $84.401,035 California for 1950 will be considerably more than one over the same period in 1949. billion dollars. This was indicated by the fact that 57 - Experts seem of the opinion that the heavl' building Southland localities alone issued $925,103,665 worth of operations that have continued into November in spite of building permits in the first ten months of the year; rvhich the heavy nerv government restrictions, are very largely I was $282,012,975 more than during the same period of 1949. momentum, and it seems to be generally expected that the

At the same time the publication Daily Pacific Builder, drag of the heavy restrictions will show themselves before of San Francisco, reported that the home building figures the year l95l has progressed far. Government experts seem for all of California for the first ten months of 195O were to think the restrictions will cut down home building one208.8 per cent higher than for the entire year 1949. It gave third. Well posted lumber experts agree that by next spring $1,293,48,932 as the total construction permits issued in the restrictions s'ill have slowed building down heavilv.

A Look at Lumber The Redwood Situation

(Continued from Page 36) skills in its lists of "critical occupations." As yet it is too early to judge how many men the industry rvill lose to the draft and whether their loss will cripple the lumber output. An added consideration will be the high-paying defense jobs which will lure skilled men from the 'rvoods and mills.

It would seem that every major decision affecting the lumber industry in 1951 will be made by some government agency. We in the industry hope that officials s,ill avoid the confusion of World War II by consulting lumber leaders before imposing rigid restrictions n'hich ma1- tend to hamper rather than help production. Several mobilization agencies have called on outstanding lumbermen to serve as advisors. This is most encouraging. but u'e will havc to wait to see if their advice is heeded.

On the whole, the outlook for 1951 is confused but not alarming. I believe that gradually the muddv rvaters s'ill clear and a workable arrangement betrveen government and industry will evolve. But I rvould like to emphasize that lumbermemn are content they can meet all requirements for lumber if they are allowed a reasonably free hand in running their own mills.

(Continued from Page 56) mers, drying improvements and lumber handling techniques. -\ll of this makes for a more efficient over-all operation and equips those mills to serve the consumer better.

The California Redrvood Association has also been revamped to give sen'ice comparable to that of its members. New divisions har.e been formed and staff reorganizations have taken place so that greater flexibility and a more efficient service i5 possible. Nerv programs are on the agenda; nerv training films are in process, and added Data Sheets are now on the drarving boards.

Barring unforeseen controls, the California Redwood Association and its member mills look to 1951 as a good vear for redrvood and certainly a busy one. The primary objective is-"better utilization from tree to consumer."

Government Building Reports

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Most observers think it will be many years before America can return to the reassuring routine of "business as qsual." Allocations, priorities,,manpo\yer shortages-and perhaps later price and wage controls-rvill be rvith us for quite a while.

We pray God that all these preparations for rvar s'ill not have to be used for war. But if a series of Korea-typ'e "incidents" catapult the.world into total conflict for the third time in 35 years, the lumber industry will again be able to handle the gigantic task of suppll-ing the t-ood to t'in thc rvar.

Norman Davidson, president, Davidson Plyrvood & Lumber Co., Los Angeles, left November 17 on an eastern business trip. He will travel to the Atlantic Coast, and north to Canada to call on hardu,ood plywood mills. and s,ill be back around December 1.

New construction activity turned downward in October from the record rate rvhich it had maintained through the summer, the U. S. Labor Department's Bureau of Labor Statistics and the Construction Division, U. S. Department of Commerce reported. The total value of all types of new construction put in place during October amounted to about $2.7 billion, 4 per cent less than the September total.

A decline in the amount of private homebuilding was the principal cause of the drop in total construction activity. Highway construction also declined, but most types of nonresidential building, both private and public, increased over September levels. Expansion of industrial and commercial building activity was particularly marked reflecting the high rate at rvhich contracts have been arvarded during the past feu' months.

Before the dorvnturn in private homebuilding in October a new record had alreadv been established this year for the number of nerv drrellings placed under construction. A total of more than 1.100.000 new nonfarm drvellings were started during the first 9 months of 1950, compared rvith 1,025.000 in all of 1949 and the.previous annual peak of 937.000 in 1925.

'Western Pine Records Broken

(Continued from Page 44)

But with the entire domestic economy, of which the lumber and building industries are foundation stones, racing along at breakneck speed, October's drastic credit order constituted, in the eyes of responsible industry authorities, less a brake than it did a brick wall. No established Western Pine operator fears an 800,000-900,000 unit annual building market-published goal of Washington planners-but many share a common belief of operative builders and building economists that the comparatively credit-less public, faced with higher down payments and larger installments on other durable goods, cannot absorb more than 500,0@ units.

Such a reduction, with its interrelated effects on employment, purchasing power and tax return, would surely rvork as a debilitating influence on the balance of the economy. Should that occur, the anti-inflationary purpose and recent tax increase would be more than offset by loss iq government tax revenue and in public confidence.

Any opinion, however, is predicated on general current irnpressions of the projected preparedness activrty level during 1951. If, for example, lumber procurement authorities should purchase far in excess of their announced footage during the coming six months and related crating and boxing requirements should be greatly enlarged, the housing downturn would be scarcely noticeable to the industry and the labor slack presumably u'ould be taken up by defense activity.

Anticipated defense activity is in turn highly sensitive to the daily fortunes of our Korean forces and developments on other world fronts. P.redictions in that field are an impossibility.

Horvever, if international and domestic trends continuc t'ithout substantial deviation and construction activity is actually reduced to no less than an 800,000-900,000 unit level, winter-book odds indicate 1951 shipments of Western Pines will be approximately N per cent under 1950, or about equivalent to the 1948 total.

Ralph M. Rounds, p-esident, Rockport Redwood Co. and Rounds Trading Co., San Francisco, arrived in San Francisco November l7 to spend three weeks visiting the mills and the San Francisco office.

California Greatest Lumber User

(Continued from Page 48) a ready market for marginal logs, tops, chunks and broken pieces.

Lumber manufacturers, through the \\'est Coast Lumbermen's Association, u'ill continue the nation-rvide advertising and promotion campaign begun in 1945. Four-color advertisements in leading magazines rvill again be featured in 1951, and trvo-color copy will appear in farm magazines. More than trventy-five general ci:culation and trade magazines will be used this year. Dealer aids will be kept up-to-date and nerv ideas will be developed to help retail lumbermen sell more lumber.

There seems to be no lessening in interest in home building even though easy credits are out the rvindow. We are getting thousands of requests for homebuilding literature every week from all over America.

We intend to continue to tell our story of West Coast lumber to people rvho are in the market for new homes, or who intend to remodel their existing homes. We rvill reach them through their favorite home-service magazine and will make available attractive full-color literature to give them ideas of design and keep their interest alive until conditions are suitable for them to build their home.

We anticipate no let up in school construction for the next several years, barring only restrictions and controls needed to conserve materials for defense. Our special onestory-schools-of-wood advertising campaign rvill be continued.

Best news we can pass along to our retail lumber friends as 1950 draws to a close, is that we rvill have plenty of lumber for you next year. We have the plant capacity and the timber backlog to supply not only all the foreseeable needs of the defense and military establishments, but to take care of a very large domestic demand for housing and industrial uses.

Frank G. Duttle, president, land, had a successful fishing spots in Oregon.

Sterling Lumber Co., Oaktrip to one of, his favorite