Higher Construction Costs Seen in 1958 Housing Rise

Dodge Corporotion Estimotes 5o/o Rise in Gonstruction Gontrqcts

Gains in construction contracts for housing and for government-owned facilities will more than offset prospective declines in contracts for industrial and commercial building in 1958, according to estimates by the F. W. Dgdge C-oJporation, construction news and marketing specialists. This -marks the first time that such estimates are available on a 48-state basis.

In its annual outlook for the construction industry, the Dodee organization estimates that construction contracts in 19J8 wi-il total $33,830,000,000, a gain of 5/o over the expected 1957 level.

- The outlook statement points out however that a por' tion of next year's anticipated increase in dollar volume will be accounted for by higher construction costs rather than additional physical volume.

Contracts for non-residentiat buildings in 1958 are estimated at $11,570,000,000, only slightly above the 1957level. Physical volume, however, as measured by floor area, is lik6lv to be down 2% in 1958. The spread between the floor area'estimate and the expected dollar volume is based on increased costs.

*Eieht months actual, last four months estimated. fPeicentages rounded to nearest whole number.

Residential building contracts next year are expected to total $13,76O,000,000, "p 8% from the 1957 level. The number oi non-farm'dwelling'unit starts in 1958 is estimated at 1,075,000, a gain oI 6/i over this year's anticipated starts' Total flooi area involved, however, is apt to increase by only So/s, reflecting the likelihood of a slightly sirattef a.'eiage dwel'ling unit next year. This is expec,ted to resu--lt from: (A; continued increases in the irumber of apartment units; and (B) gains in the number of houses financed with FHA-insured mortgageq which are customarily smaller than conventionally financed homes.

The outlook statement, prepared by Dodge Vice-Chairman Thomas S. Holden in-collaboration with other Dodge staff members, says that "The signs and omens for next vear seem to point to mild improvement in the construction bicture as a whole, with some variations in detail.

^ "Si.,.. some further rises in construction costs are anticipated, physical volumes are likely in some cases to increase bn so-.rithat smaller percentages than dollar volumes.

"'f.r.re...s are estimated foieducational buildings, hosoitals. relisious biuldings, and residential buildings. Moderite declin6s are indicated for commercial, manufacturing and public buildings, social and recreational projects, and miscellaneous non-residential buildings."

Silvercr Lumber Co. Joins tMA

Iack Pomeroy, LMA exec. veep, welcomed Silvera Lumbei Company,'Antioch, into tlie fast-growing.LMANC family lait month. One of the more p-rog-ressive^.yards in Cohtra Costa county, the firm is headed by Lewis Silvera, who last summer completed an extensive remodeling of his yard, as reported in the California Lumber Merchant.

PINE AGENCY,INC.

Rules for Hqrdwood Flooring

Solnc hlrrrln'oorl flooring rlillrcrltics 1r;r\- lie <lrrr: to neglcct 'in rilrscr-r'irrs' thcsc c:rrrlinlLl nrlt.. f rr lrl-, ,ccrlurc lrrior to insl:rll:rtiorr: l. I)o not tnrt'li or lrrrlolrrl o:rli floorirrr: ir-r L:Lin. sn,,uor crccssir-el_r-huniirl corrlitions. Ii thc lrtnroslrhcrc is iogg-v or clarlp. cor-er floriring l'ith t:rrpaulin.

2. I)o not stor-t' floorirrg iri lL rltLrrlr i,r lrlr'liirg enclosttre. - lrrrilrlir.rg shoul<l first lrt' he:Ltcrl to 70 rlegrccs Jr. '.1-lrcn lhc floorin!-shotrlrl 1rc lrilerl loostl_r-insirlc Ior at ]r,:rst i()rlr ()r lir c <1lr,vs lrciorc lrcina l:rirl. fr. -\ll 1ri:Lstcr lrnrl t.r'nrent rr.orli in thc lrousc slroulrl lrc clr_r- lrt'lorc tht'o:Ll< floorilg is itrstallcrl.

.1. I)o not slorc 'it ol flortrs th;rt :rrc lcss tlt:rn 1X 'inclrt's frorn llrt'grorrn<l:Lntl u'lrich r1o not lr;rr.r goorl air circrrlation unclernr.:r1lt.

+. l',e slrrc tlte stor:Lec lrrrilrlitre h:rs Prott'ctccl Yrntilrrtiorr anrl rr rlrthcr,lrr-ooIecl u'irrrlon.s to ;rrlr]rit ,crrrr, shine.

.5. Thc llooring's1'roLrlrl not lir irstlLllc<l irrrnrcdiattlr,. ;riter clclivc'rr'. f ,ispcciallr- in u'irrtcr c()1rsllu(.ti(,r. tlrt.

Irr thcir ou-n irtcrcst. 1rrr,ri,e,'rlcaler-s slroulcl i;rrnili- :rrize llrcrrrselves rvitlr Lr()rrr(.1 install:Ltion proct'rlrrr-t,. arr_d inr.1rr-cs. their ('11st()m(.rs rvith thc :r<lr.:Lrrtlrgt,s rii i,rllorvirg thenr. 'l-lrt, rcsult rr.orrld lrt' i:u- fc\\ (.1. (.()nlPlaints ;trrrl gre:rtt't' ;rss1'lnutc(' of cxlr;utrlirrg o:rl< llooring salcs.

Lilt'r-tLtLrre rlct:r.iling :r1r1rr-rir.ccl l)r;rcticcs. inclrrrling.. :trlilloor constt-ucliol trrtrl itrsta_lltLlion ()f stril) ():rii lloorirrg ()n :cr('('(ls ()\'er ('()rcr('te. is :rr':ril:rblc irrirrr the -\trtionlLl ( )lr1< Iilrioritrg f l:rluflrclrrrcrs' _\ssoci:rtion, lii'1 Stcr-icli liLriltlirrg. -\lt'rrrlrhis 3.'l't'rrrr.

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Shorr fftsrorl of ille PCW,IIDA I rcontinued from Pdge 34)

and the J. J. Matthews l{ardwood C-ompany, also bought that of Vari Waters and Rogers in 1931. 'In 19O5, D. A. Johnson, an-old resident of the Northwest, and an experienied woodworker, general contractor and sawmill optrator, bought the softwood lumber business of g. F. Nudd, and start--ed a hardwood lumber yard- With the help of his two sons he carved out a successful career.

The ^I. T. Matthews Hardwood Lumber Company of Seattle -wis established in 1923 as a successor to J. J. Matthews, who commenced his business in 1915. Mr. Tohn W. Sumrall was the presiding genius of this concern. "

The hardwood industry- in Poltland, Oregon, started with stocks carried by planing mills for their own use. There were, of course, blacksmiihs and supply houses, such as J. E. Hazeltine and Company, who carried the necessary wason hardwoods as part of their merchandise' fhe first regular stock of hardwood lumber, however, was that of Nicholai Brothers & Co., planing mill operators. This firm started in 1865. ft afterwards became NicholaiNeppach Company. Ernest Hall commenced with them in 1908.

In 1910, J. S. Emerson, a lurraberman.of Vancouver, B. C., put up a'siwmill and veneer saw in Portland for. sawing irp Tabanese Oak logs. Charles Stetson was his representdtive'with James Ahern, a former employee of NicholaiNeppach Cohpany, as assistant. A fairsized business was run for a nurnber of years.

In 192O, the Emers6n Hardwood Company was sold to Roger Sands, of Seattle, who operated it under the managemeit of James Ahern antll t926, when the mill was closed down an-d the business sold to F'rnest Hall of NicholaiNeppach Company. - l"f Vattiotl'.r,'B.C., Mr. J. Fyfe Smith, a native ,of Australia, where'he had learried the timber trade, bought the hardwood lumber business of A. P' May & Company in 1904. The old firm had been established about the year 1900. Previous to that, the hardwood requirements of this wonderful Canadian city, as well as those of the city of Victoria, had been supplied principally from San Francisco. With a thorough knowtedgt of the trade, comb-ined-with British integritly and unusual business acumen-, Mr. Smith soon changed ftis condition to one of home indust-ry.- The genial vice--president of J. Fyfe Smith Company, Ltd. was I[r. Norman C. Sawers, who, excepting for his period of service as a Canadian officer during World \Mar I, was associated with the concern practically from boyhood'

The above covers the Coast, city by city, but there remains one concern which formerly extended its sphere over the entire territory, Cadwallader-Gibson Co., In-c. were manufacturers of Philippine Mahogany in the Philippjne Islands, and had made a success of their business. The idea of expansion caused them to establish distribution yards in Sin Francisgo, Lgs Ange-les,. Oakland & Seattle'; The successes attending their Philippine operations were not equalled by their Palific Coast diltriby-ting yards. -The busin6ss in S6attle was sold to Ehrlich-Harriscfn & Comoanv in 1924. The San Francisco stock was bought by ^tft.';. E. Higgins Lumber Company in 1925 and their Oakl-and yard was closed out. The Los Angeles_ venture *as expanded into a door factory, veneer panel -plant,- 3nd laree viholesale distributins yard. Two vears after selling was iactory, -plant'- a large wholejale distributing yard. T*.? y.ears after s,elli wholesale dtstrrbutlng yard. r wo years alter seltrng ouiin San Francisco, they returned to that city and opened 'n in fhe sernc locafion, The stock was again sold out. up in the same location. The- stock was sold out, this time to the Kirchmann Hardwood Company. They operated as dealers solely in Los Angeles, under the presidincv of Mr. B. W. Cadwallader, with Ray Ford as secretary ind next in charge. After a reorganization in l9D, Roy Barto assumed control.

To.Bc Continued in the Next Issue

SGUTA Heors Horvey Smirh

The Southern California Lumber Seasoning Association met November 7 at Currie's Santa Fe, Long Beach, with President John Kurzhals presiding and reports by Secretary Bob Inglis. Harvey Smith, technologist of the California Forest and Range Experiment Station, Berkeley, reviewed the recent meeting at the U.S. Forest Products Laboratory, Madison, Wis., to discuss "Fundamentals of Wood Drying."

A letter was read from Edwin Knight of the 'Western Pine Association asking if the SCLSA wished to host the coming annual meeting of the Western Dry Kiln Clubs. The matter was discussed thoroughly and various other industry groups were mentioned as possible co-hosts of such a meeting. The matter was tabled for further discussion at the December 5 meeting.'

In addition to Mr. Smith, cluded John Kurzhals, Sun members at the meeting inLumber Co.; Herb Geisen- heyner, Coast Kiln & Lumber Co.; Harland Walters, Penberthv Lumber Co.: Charles Beckman. Beckman Lumber Servite; Harold Cole, Bohnhoff Lumber Co.; Jack Williamson, Ray H. Benson, Western Mill & Lumber Co.; Rex Wall, Wall Dry Kiln Co. ; Cort Mason, Downey Kiln; Earl Sim6n, Simmons Hardwood Co.; Frank Keuski and Bob Inglis, Associated Molding Co.

New Teco Vice-President

Washington-Ralph H. Gloss, outstanding structural engineer specializing in timber design, has been elected a vice-president of Timber Engineering Company, engineering and research affiliate of the National Lumber Manufac" turers Association. He has served as secretary of the corporation for the past seven years and will retain this office. In his new post, he heads the product sales division of the lumber industries' service arm.