Evening star., 1941-01-24
Sharp Drop in Price
OF Lumber Expected
After Warning
Droft' Hint to Industry
Given by Henderson;
U. 5. Blamed in Defense

A sharp decrease in the price oi
lumber used in Government con-
struction was confidently awaited
today by the National Defense Com
mission as the result of blunt
warning that President Roosevelt
might be asked to fix lower prices
and exercise his power to draft" the
lumber industry.
Using that same method that re-
suited recently in almost instant
price reduction of scrap iron, Leon
Henderson, defense commissioner in
charge of price stabilization, told the
Lumber and Timber Products De-
fense Committee yesterday:
IF the whole price level had acted
like that of the lumber industry,
this country would be in a state OF
paralysis. We can get lumber. The
Government can get all it wants by
fixing price and having the
Commander in Chief of the Army
and Navy forbid any payment of
higher prices. We can then use the
Selective Service Act to draft lumber
the same as we are drafting men.
As far as I'm concerned, I'm going
to make that recommendation unless
the situation improves"
Fort Meade Increase Cited.
Mr.. Henderson said that at Fort
George G. Meade, Md, the Govern
ment had paid a IS per cent in
crease in the cost of lumber for that
cantonment."
In a spirited defense, representa-
tives of the industry blamed Gov
ernment purchasing methods, among
other factors, and said prices already
were on the downgrade.
M. L. Fleishel of Jacksonville, Fla,
chairman of the lumber group, said
a conference he had with Mr.. Hen
derson last week provided "the first
direct information we had had that
the Government had any complaint
against lumber prices"
At the start of the defense pro-
gram last year, he said, the Govern
ment required delivery of more than
$500 600, 900 feet of lumber for its
cantonments and camps-which are
entirely of wood construction-and
much of the requirement came IN a
relatively few grades and sizes.
IF any one thinks that the
amount of lumber involved in the
Government purchasing program
was not a large one" he said, 1T
probably can best be explained by
stating it would require a train 500
miles long.
"Rush" Orders Affected Prices.
Undoubtedly higher prices were
paid for some lumber than would
have been paid if delivery dates
could have been better adjusted to
the actual needs and if rush bidding
and rush deliveries could have been
avoided"
Mr.. Fleishel said the average price
paid by the Government in Septem-
ber was S41.10 a thousand board
feet: in October, it was S3906; in
November, S3724, and in December,
S35.81. The downward trend is con-
tinuing. he said.
Mr.. Henderson, in his talk to the
lumbermen. said all he wanted was
for them to "sell lumber to the Gov
ernment or private buyers at de-
cent price" and mentioned s25 per
1000 board feet as the decent price"
at the mill for No. Southern pine
lumber. He distributed charts show
ing increases in lumber prices from
1910 lows had ranged from none for
No. / redwood boards, up to 52.7 per
cent for No. PIKE timbers.
After the speech, Mr.. Fleishel told
reporters that 'he didn't take us for
as much of a buggy ride as thought
he would He talked Of S25 pine and
after all the price is now about s27."