of grades 1, 2, 3 and 4 common is given for comparison. It can be seen 

 that the adjusted price generally falls slightly below number 3 common. 

 If mill run and ungraded lumber approximate the price for number 4 

 common, mills that grade have a slight but increasing advantage in 

 revenue. It may not be practical for small mills to grade their small 

 volume. The larger mills, however, should be able to cover the cost of 

 grading. This should increase their revenue per unit of volume by the 

 difference between trend lines D and X, Figure 7. This margin has 

 steadily increased from 1946 to 1961 and now represents an increase of 

 approximately 30 dollars per M b.f. Figure 8 shows the same situation 

 but for 1 X 12 boards. 



Fig. 9. Wholesale Price Indexes of White Pine Lumber (1x6)*, 



by Grades, 1946-1961 



175 



150 



125 



100 





o 



75 



50 



A. D select and better 



B. Number 142 conmon 



C. Number 3 conmon 



D. Number *» common 



• Base year 19'*7-19'+9 equal to 100 



19^7 



19'*9 



1951 



1953 



1955 



1957 



1959 



1961 



A trend of rising prices has been established. Of further interest, how- 

 ever, are the rates relative to each other at which the noted grades of 

 lumber have risen in price. As can be seen by Figure 9, the wholesale 

 price indexes for 1x6 lumber show very definite trends. D select and 

 better rose much faster than the other grades before 1951. Number 4 

 common shows the least rate of increase and has shown a general trend 

 of almost no increase since 1951. Figure 10 depicts the same situation 

 for 1 X 12 lumber. The wider board, however, does not follow exactly 

 the pattern indicated by the narrower 1x6 lumber. Here, D select and 

 better index rose very rapidly to 1951, declined slightly, and then rose 

 slowly but steadily in comparison to the other grades. Number 1, 2 and 

 3 common 1 x 12 lumber indexes rose steadily and rapidly. Number 4 



24 



