The Western Pines in t95f

By Robert O. Leonard \ilestern Pine Association

As housing starts r,vent so, .lr.ith a slight lag, rn'ent tht: Western Pine industrl' during 1951. Beginning the year in an atmosphere of extreme uncertainty because of government controls and impending building material shortages, the industry, in company rvith most others in the building field, figuratively felt its rvay forrvard from rveek to week as conditions materialized.

Its impact expected early in the first quarter, Regulation X did not actuallv become operative-in its effect on new building-until well tou'ard the end of the first six months. A tremendous backlog of some 400,000 commitments made prior to its Oct. 16, 1950, date of order was chiefly responsible. In the Western Pine producing region, generally favorable first quarter weather together with a mild winter in many of the large consuming areas combined to provide a record shipment volume of an estimated 1532 million board feet of Western Pines and Associated Woods-B per cent higher than same period of 1950.

Because the Western Pines are chiefly finish woods, most <if the shipments rvere destined for use in housing started before promulgation of Regulation X and which was then in its final stages.

In the second quarter. both the production and shipments of lumber from the region held close to record levels into June when shipments broke rather sharply below the booming rates that prevailed all through 1950. Production of 2315 million feet set another nelv record,4.7 per cent over that of 1950, but shipments slipped to 2O7l million, 3.3 per cent under the record 1650 total.

For the first half, production of 37O3 million was 12 per cent over 1950. Shipments were 1.4 per cent ahead of last year.

In the third quarter, shipments and production began to follow the lead of slumping home building, but without the violence. While housing starts for July and August rvere off roughly 40 per cent from the preceding year, shipments of Western Pines and Associated Woods dropped from the 2338-million foot total of last year to 1974 million -less than 16 per cent. Production skidded fram 2481 nrillion to 2226 million or 10 per cent.

And it was apparent from the preliminary reports that fourth cluarter production and shipments rvould be approximately in the same ratio to i950 as were those of the third quarter.

\\rhile total regional shipments in 1851 felt the sag in residential construction, established mills in the industry noted no alarming reduction in order files. As it has in the past, the slump hit more keenly those mills whose facilities did not permit shipment of a well-rounded selection of grades and species.

One of the heartening developments to Western Piire lumbermen during a year of a generally declining demand u'as the continued strength of the Associated Woods market-a result of sustained promotion by the pine industry since shortly after the war. All of the woods-White Fir, Douglas Fir, Larch, Engelmann Spruce, Incense Cedar, Inland Red Cedar and Lodgepole Pine-held their comparative positions in demand for the region's products.

Beginning in 1947, the industry inaugurated a national advertising and promotion campaign to bolster demand for the seven species. Comprehensive literature was prepared, trade advertising was stepped up and a drive conducted within the industry to bring manufacturing and seasoning

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(Continued from Page 46) practices up to levels previously accorded only to the pines.

Not an overnig!.rt, one-shot venture, the program developed as it progressed. This year, its effectiveness tested in the nation's markets, it proved itself.

In the industry's production phase, 1951 saw the instal_ lation of log barkers at several mills and interest at many more. The development is expected to continue, partic- ularly where hardboard plants are being built as part of overall utilization plans.

Continrring its efforts to establish continuous production programs throughout its 12-state region, the industry by early November had added nearly a quarter million acrcs in new Tree Farms to the more than 3,200,000 acres certified by the end of 1950. Important to the conservatiorl prL)g'ram lvas the inauguration by the Western pine association of a joint industry-public agency insect detection ltlan involving the cooperation of private. state and federal foresters and woodsmen in an infestation reporting service.

The cooperative undertaking has been sct up vr.ithin state boundaries in California, Oregon ancl \\/ashington thus far and is aimed at early detection of potential tronltle spots so that suppression measures can be started before infesta_ tions ltecome n i:lespread.

As it heads into 1952, the Western pine industry czln look to a market that rn ill be partly civilian, partly trrilitary. But the proportions, and the volume, remain problematical. \'fatrrring of the defense program into the shipment stage will recluire heavy purchase of boxing and crating (rvhere so much of the Western pine production went during the rvar years). Demand for industrial grades for plani and factory construction and nse is expected to continue at a brisk pace. Slightly relaxed credit restrictions on homes under $12,000 should spur construction of development_ type housing. And if the defense housing snarl can be un_ tangled that building factor could become a sizeable seg_ r.nent in next year's residential picture.

Over all are the heavy hands of international develop_ rnents and electic.,n-year domestic politics. Together they can tu:n a switch rnarked "boom" and ,.average lltrsincss" in either directiol.

The lncome Tax from 1913 Until Now

With the new income tax law now settled down on the irrr. tion, it is interesting to recall the origin of this money-raisinr: methocl.

The first income tax in the United States started in 191.i when Congress included a federal income tax law in the Tariff ,\ct for that year. In that first law inclividuals paid a irornr:ri tax of one per cent, with a $3,000 exemption for single persolls ancl $4,000 for married. The corporate net income was taxeri a fiat one per cent. Income above $20,000 paicl surtax r;rtes gr:rduating from one to six per cent.

Irr tl-rat first year, 1913, 357,000 people paid individual incorre taxes, and there were 188,000 corporate taxpayers. 1.oday more than fifty million people come under the inclivi<lrrai t:rx lau'. I)uring that first year the Bureau of h.rternal Revenuc cmpkryed 4,000 persons in collecting $350 million dollars, rvhilc in 1950 the bureau employecl rnore than 50,000 people callect_ irrg about 940 billion.