48 



HARDWOOD RECORD 



June 25, 1918 



Occurrences at Washington Interesting to Lumbermen 



Price Fixing on Fir and Pine 



It is reported among northern hardwood lumbermen liere that the 

 government will next fix the prices of northern pine and hemlock 

 lumber, but Acting Lumber Director Edgar has intimated that he 

 will next take up price fixing of the hardwoods of the Appalachian 

 region. In either case the government price fixing policy and pro- 

 cedure as indicated in the following may be of interest to hardwood 

 men. Yellow pine prices are raised to a $28 base. Fir prices are 

 also raised. Mill prices apply to all purchases alike. 



A summary of the principal points in the report of the War Indus- 

 tries Board follows: 



The price fixing committee of the War Industries Board has fiyod 

 maximum item prices for northwestern fir logs and lumber and for southern 

 pine lumber. The detailed schedules of these item prices have been 

 approved by the president and publicly announced. The prices established 

 are manufacturers' F. O. B. mill prices for shipment at the mills, the same 

 for all purchasers. They are maximum prices, not fixed prices, to hold 

 for a period of 90 days from June 15. 



No regulation has been made with regard to transactions other than 

 sales by manufacturers at the schedule prices. Wholesale dealers, retail 

 dealers, and all others are entitled to buy on the basis of these F. 0. B. 

 mill prices. As yet no. regulation of rates or profits has been made with 

 regard to sales cither by wholesalers or retailers to consumers. The War 

 Industries Board believes that sales by all dealers should be made at rea- 

 sonable prices based on a strictly reasonable profit above the fixed schedule 

 rates. The board is confident that the trade will conform to the spirit 

 of the existing regulations and the board will not proceed to further regu- 

 lation or restriction of dealers' prices until their conduct of business indi- 

 cates that such action is necessary. 



Explanatory Note 



Douglas fir lumber prices apply on lumber manufactured in the Pacific 

 Northwest and represent an average increase of approximately $2.75 per 

 thousand board feet over the former list of prices for Douglas flr sold to 

 the government. The prices as now established are F. O. B. mill and apply 

 to all purchases of Douglas fir for mill shipments. 



The yellow pine prices apply on lumber manufactured in the southern 

 states named in the ruling. These prices represent an average increase of 

 approximately $4.80 per thousand over the former government list. The 

 prices now established for yellow pine are, likewise, F. O. B. mill and apply 

 to all purchases of yellow pine for mill shipments. 



The mill prices charged to the commercial trade for yellow pine, prior 

 to the date of the new ruling, averaged considerably higher than the price 

 fixed for government purchases. 



This new ruling will not result in any higher prices than formerly paid 

 by the commercial trade for yellow pine, although it does mean a higher 

 price for the government. In the case of Douglas fir, the new prices will 

 result in a very slight, if any, average advance to the commercial trade. 



Both the advance in flr and pine prices now flxed are based on cost 

 investigations made by the Federal Trade Commission and are due entirely 

 to increased costs of labor and supplies. 



Maximum Mill Base Prices for Yellow Pine Lumber 



The prices of all southern or yellow pine lumber in the states of Mis- 

 souri, Arkansas, Oklahoma, Texas, Louisiana, Mississippi, Tennessee, 

 Alabama, Georgia and Florida shall not exceed the item prices named in 

 the list, except that in the first three states named above an additional 

 price of $3 per thousand will be allowed on all items of short leaf soft 

 pine C and better finish, casing, base and jambs. 



Prices on items not covered by above list shall be priced on basis of 

 nearest comparable item. 



The usual trade practices shall continue, including cash discounts to be 

 applied to the United States government purchases as well as all others, 

 except that in commercial transactions where purchasers do not avail 

 themselves of the cash discounts the accounts may be converted into trade 

 acceptances, which do not bear interest before maturity. 



The custom of delivered prices of lumber to purchasers' destination 

 points shall remain unchanged, including the equalization of freight rates. 



Contracts for the sale of lumber entered into in good faith prior to 

 midnight June 14, 1918, and enforcible at law, will be performed in 

 accordance with their terms, subject, of course, to orders received from the 

 government which may require priority. 



It is imperative that, with the least possible disruption of the industry, 

 the vast war needs of the government, both direct and indirect, for southern 

 pine lumber be supplied on a fair basis ; that an adequate supply and 

 equitable distribution thereof be assured for essential commercial needs ; 

 that the movement thereof be facilitated and that Injurious speculation 

 lli.r,.in be prevented. Therefore the procedure outlined below, by agree- 

 ment with the representatives of the manufacturers of southern pine lum- 

 li' r, bns lieen adopted for a period of three months beginning midnight 

 Jun.- 14, 1918. 



■h manufacturer of southern pine lumber shall : 



)t orders for his product a 

 u prices, always subject 



prices not in excess 

 an option at the 

 ipplicable maximum prices in favor of the United States or the nominee 

 of the War Industries Board. Under this option, which will cover all 

 southern pine lumber down to time of actual delivery to the purchaser, 

 the War Industries Board to any extent required will allocate either to the 

 government or to other essential users. Any balance not so allocated wIU 

 — be released for sale to commercial buyers, but at prices no greater than 

 those determined upon as above set forth. 



Comply with the directions of the War Industries Board, as issued from 

 time to time, with reference to filling commercial requirements in the order 

 of their publi.- imiKirtance and to furnishing such information and making 

 such repnii- i- m n 1" irqviired. 



Keep up ' '■' ■ ' ' ''i~ ability the production of southern pine lumber 

 so as to ill i ' I . supply so long as the war lasts. 



Neithrr i : h il.' of wages now being paid nor change funda- 



mental lah.ir . Miiiiii hills II. jw in force. 



The goveriimriit will apportion the car supply available for lumber and 

 arrange for its transportation, subject to allocation by the War Indus- 

 tries Board as aforesaid, to the end that injury to the industry due to 

 abnormal war-time conditions be neutralized so far as may be. 



Foreign trade, except to the governments of nations associated with us 

 in the present war, is not to be affected by this ruling. 



The report here gives a list of pine prices in accordance with 

 dimensions and regions, and then proceeds to a consideration of 

 western fir prices in a similar way. An extract from the fir report 

 is summarized below: 



Maximum Prices for Fir Logs 



The maximum price for fir logs in the Pacific Northwest delivered at 

 points where it has been customary to make deliveries to the saw mill 

 operators shall be $20.00 per thousanH for No. 1 logs, $16.00 per thousand 

 for No. 2 logs and $12.00 per thousand for No. 3 logs, scale as to the grade 

 and contents to be determined according to the methods that have been 

 customary in the various districts. Prices are on a basis of logs up to and 

 including 40 feet in length ; logs over 40 feet in length to be priced on 

 same basis for extra lengths, as has heretofore been established by custom 

 or (in case of uncertainty or question or variation in the different districts 

 as to past custom, as to point of delivery, method of scaling or prices for 

 extra lengths) as may be decided by the lumber section of the War Indus- 

 tries Board. In no case shall any greater prices than those mentioned 

 above be allowed for logs during the period mentioned. Any additional 

 cost for log freights occasioned by Order No. 28 of the director general of 

 railroads to be added to foregoing log prices on logs so affected. 

 Maximum Prices for Fir Lumber 



The price of flr ship timljcrs under the Ferris schedule to the Emer- 

 gency Fleet Corporation t'< niiiiini tbc same as those determined upon 

 by the price fixing committir Miirrh i;i. I'.ils, namely: Item prices that 

 average $40.00 per thousand fm- a i niiipli te schedule for both the rough 

 and dressed items, and all sales of lumber for other vessels requiring a 

 schedule of lumber of similar type shall be furnished at not to exceed the 

 same basis of prices. 



The prices of fir lumber for aircraft use to remain the same as those 



The prices of all other Items of fir lumber shall be bused on the West 

 Coast price list of May 1. 1915, plus additions noted on discount sheet 

 No. 22, of February 15, 1918. 



Prices on items not covered by the aliove list shall be priced on basis 

 of nearest comparable item. 



The custom of delivered prices of lumber to purchasers' destination points 

 shall remain unchanged. 



"No freaks in design" is the word now in the furniture world, 

 "for everything must have a meaning." This may be plain Eng- 

 lish to the initiated, but somehow the common variety of man 

 finds it difficult to locate a reasonable or familiar reason for some 

 of the furniture designs seen in the show windows. 



It is the multitude of little things that make big things and 

 some thinking people are now advancing the idea that one of the 

 biggest things in the woodworking industry in the future will bo 

 along the line of develojiing the manufacture of smaller articles 

 and through this utilizing much wood that has been going to waste. 



Every once in a while we hear about Siberian oak being im- 

 ]>orted into this country but one of our consuls advises us that 

 very little Siberian oak proper has so far been marketed and that 

 most oak marketed under that name has been really Japanese oak. 



