Citation
Amendment to code of fair competition for the lumber and timber products industry as approved on March 15, 1935

Material Information

Title:
Amendment to code of fair competition for the lumber and timber products industry as approved on March 15, 1935
Portion of title:
Lumber and timber products industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
6 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Lumber trade -- United States ( lcsh )
Forest products -- United States ( lcsh )
Forestry law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 313-1-06."
General Note:
"Approved Code No. 9--Amendment No. 32."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004931589 ( ALEPH )
646279295 ( OCLC )

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Aproe Code_ No 9-mnmn o.3 lgsryN.331


NATIONAL RECOVERY ADMINISTRATION




AMENDMENT TO
CODE OF FAIR COMPETITION

FOR THE


LUMBER AND TIMBER

PRODUCTS INDUSTRIES


AS APPROVED ON MARCH 15, 1935


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1935


For sale by the Superintendent of Documents, Washington, D. C. - Price 5 cents


Registry No. 313-1-06


Approved Code No. 9-Amendment No. 32






















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Seattle, Wash.: 1730 Exchange Building.











Approved Code No. 9-Amendment No. 32


AMENDMENT TO CODE OF FAIR COMPETITION
FOR THE

LUMBER AND TIMBER PRODUCTS INDUSTRIES

As Approved on March 15, 1935


ORDER

ArIF'loING AMENDMENT OF CODE OF FAIR CO(il'1I-IIrXN FOR THE
LUMBER AND Tii[L:un PRODUCTS INU[-IST-I:I:I
An application having been duly made pursuant to and in full com-
pliance with the provisions of Title I, of the National Industrial
Recovery Act, approved June 16, 1933, for approval of an Amend-
ment to a Code of Fair Competition for the Lumber and Timber
Products Industries, and the annexed report of said amendment,
containing findings with respect thereto, having been made by the
Assistant Deputy Administrator and directed to the National Indus-
trial Recovery Board, and it appearing that an opportunity to be
heard will be afforded to all intere-ted parties:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Order Number 6859, and otherwise, does
hereby approve, adopt, and incorporate by reference said report,
recomnnllnda tions, and findings, and does further find that said
amendment and the Code as constituted after being amended comply
in all respects with the pertinent provisions and will promote the
policy and purposes of said Title of said Act, and does hereby
order that said amendment annexed hereto be, and it is hereby ap-
proved, and that the previous approval of said Code is hereby modi-
fied to include an approval of said Code in its entirety as amended,
sich approval and such amendment to become effective twenty (20)
days from the date hereof unless good cause to the contrary is shown
to the National Industrial Recovery Board, and the National Indus-
trial Recovery Board issues a suib-,qi-lint Order.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrat.'i' Oficer.
Approval recommended:
W. P. ELIIS,
Division Admi ?is7rator.
WaSIINGTON, D. C.,
March 15, 1935
1216170--1603-76-35 (1










REPORT TO THE NATIONAL INDUSTRIAL RECOVERY
BOARD

NATIONAL INDUSTRIAL RECOVERY BOARD,
Washington, D. C.
GENTLEMEN: I have the honor to submit and reconimend for your
approval an amendment to the Code of Fair Competition for the
Lumber and Timber Products Industries, which changes Schedule
"A" of said Code by terminating the Appalachian and Southern
Hardwood Subdivision of the Hardwood Division and creating the
Appalachian Hardwood Subdivision of the Hardwood Division and
the Southern Hardwood Subdivision of the Hardwood Division.
The amendment designates the Appalachian Hardwood Manufac-
turers, Incorporated, as the administrative agency of the "Appa-
lachian Hardwood Subdivision ", vesting it with the powers author-
ized in the Code as necessary and proper for administrative purposes
in a Subdivision. An examination of its Constitution and By-
Laws shows that it imposes no inequitable restrictions upon lmember-
ship and is truly representative of the proposed Subdivision.
By this aimenddment the Hardwood Manu facturers Institute, Incor-
porated, which was previously the adm inistrative agency of the un-
divided Subdivision is continued, by designation, as the adminis-
trative agency for the majority of this area which will be included
in the "Southern Hardwood Subdivision." It has previously been
found to impose no inequitable restrictions on membership and to be
truly representative of the proposed Subdivision. It is hereby
vested with the powers authorized in the Code as necessary and
proper for administrative purposes in a Subdivision.
This amendment, has been submitted by the Lumber Code Author-
ity in accordance with a resolution of December 5, 1934, in pursuance
of a petition of the Hardwood Manufacturers of the region included
under the proposed "Appalachian Hardwood Subdivision." A
meeting of these manufacturers was held at Netherlands Plaza Hotel,
Cincinnati, Ohio, November 2, 11;34, at which were present manu-
facturers representing an annual capacity of 1,000,150,000 board feet
of hardwod lumber out of a total rateil capacity of 1,810,290,000
board feet or ,.32"' of the total. There were one hundred and
nineteen (119) manufacturers present with productive capacity
ranging from 312,000 to 76,000,000 board feet per annum. The av-
erage productive capacity of the manufacturers present was ap-
proximately 8,300,000 board feet per annum. Of the manufacturers
present thirty-one (31) have a yearly productive clnpliaity of less
than 2,000,000 board feet each. This petition received the approval
of the Hardwood Manufacturers Institute, Incorporated, the Hard-
wood Co-ordii eating Committee, and the Luimber Code Authority.
A notice of opportunity to be heard on this amendment will be
made known to all interested parties through the mailing of a
copy of said notice to everyone of record in the offices of the Ap-







palachian Hardwood Manufacturers, Incorporated, and the Hard-
wood Manufacturers Institute, the proposed Division Agencies re-
spectively in each of the two contemplated Subdivisions, and to
appropriate trade papers serving the affected areas.
The following exhibits are included in Volume II:
1. Industrial Advisory Board's Approval.
2. Consumers' Advisory Board's Approval.
3. Report of Labor Advisory Board.
4. Legal Division's Approval.
5. Research and Planning Division's Approval.
6. Administration Members' Approval.
7. Letter of Transmittal from the Lumber Code Authority.
8. Notice of Opportunity to be heard.
9. Copy of Petition of Appalachian Manufacturers submitted to
Lumber Code Authority, Letter of Transmission of said Petition
from that Authority, and Affidavits of competent parties supporting
salient points made in said Petition.
10. Action of Hardwood Manufacturers Institute Board of
Directors.
11. Code and Amendments already approved.
For the proper consideration of this amendment and detelrina-
tion with respect thereto, the following facts and findings are set
forth:
The hardwood lumber manufacturing industry of the South
has ever been divided into two distinct groups, i. e., the Appalachian
and the Southern manufacturers, as is evidenced by the Forest Serv-
ice's boundary delineation of the Appalachian territory and as set
out in the petition and its supporting affidavits. This division is
because of the following fundamental reasons:
(a) Operating Conditions: The Southern territory is largely flat
while the Appalachian is in the main hilly and mountainous. This
calls for usage in the Appalachian territory of a different and higher
class of labor, and different and more expensive types of logging
equipment than are necessary in the Southern operations. The hilly
topography and the heavier investment of capital iece--,ary in much
of the Appalachian region tend to minimize the number of very
small mills operating in that district.
(b) Timber Ownership: Appalachian timber is largely owned by
the mills that log and manufacture it, as contrasted with independent
log and standing timber marketing practices of the South.
(c) Timber Species: The Appalachian territory contains some
species not found in the South. In some other species the predomi-
nance is greater in the Applachian and in some others in the South.
(d) Quality: The quality of the Appalachian timber is generally
better than that of the South.
(e) Value: By reason of this superior quality, and, to some extent,
its closer proximity to major c')n-m-inig ia:rkets, the Appalachian
product comrniands a higher price.
(f) The minimum wage rates in the Appalachian and the South-
ern territories are 281/2 cents and 24 cents per hour respectively.
When it was written it was thought possible to adminisiter the Code
for these two distinctive groups through a joint Subdivision, upon
the administrative body of which each should have representation.







Eighteen months' expetilnce has demonstrated the fallacy of this
assumption. While the Appalachian mills produced about 25~. of
the hardwood lumber of the entire South, their representation on the
administrative directorate of the joint Subdivision has been six (6)
out of a total of thirty-three (33) or slightly over 181. The records
bear out the contention of the Appalachian operators that under joint
Subdivision admiii.-tration of Article VIII of the Code, the South-
ern mills have received an over-liberal production allotment at the
expense of the Appalarhi,;n mills. The Code sets up that an admin-
i.-trative agency S-hall be truly representative. This joint adminis-
trative agency is not, and becallm- of the fundamentally different
existing conditions above recitdl, can never be so made. The man-
date of the Code, justice and wisdom dictate that this pet it ion should
be granted through the approval and promlllgation of this amend-
ment which I find:
1st, Will effectuate the policies of the Act in the granting of true
repre-entation.
2nd, Will impose no inequitable restriction.
3rd, Will not promote monopolies or tend to monopolistic practices.
4th, Will not oppress small enterprises.
On the basis of all the facts stated above and the adinii-trativo
findings. of law and fact made above, I recoiminmend that this aijcilnd-
ment be approved.
Respectfully,
J. C. WICKLIFFE,
A ;'.sffutif D( puf ll Ani;Jni.4rItor.
Approval recoltiiiended: A
A. C. DIXON,
Deputy Adii i, 'trator.
W. P. ELLIS,
Division Administra t(.
nMArCIH 7, 1935.











AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE LUMBER AND TIMBER PRODUCTS INDUSTRIES
In Schedule A, DIVISION AND SUBDIVISION CODE PRO-
VISIONS, delete "2-A. Appalachian and Southern Hardwood Sub-
division and substitute therefore:
2-A. Appalachian Hardwood Subdivision
2-H. Southern Hardwood Subdivision
In Schedule A, 2. Hardwood Division, Division (Article II, C):,
paragraph (a), delete Southern and Appalachian Hardwood Sub-
division and substitute therefore:
Appalachian Hardwood Subdivision
Southern Hardwood Subdivision
In Schedule A, 2. Hardwood Division, Administrative Agencies
(Article III):, paragraph (A), delete Southern and Appalachian
Hardwood Subdivision-Hardwood Manufacturers Institute" and
substitute therefore:
Appalachian Hardwood Subdivision-Appalalchi;an Hardwood
Manu fact urers, Inc.
Southern Hardwood Subdivi.-ion -Hardwood d Manu facturer s
Institute.
In Schedule A, delete entire section "2-A. Appalachian and South-
ern Hardwood Subdivision and substitute therefore:
2-A. APPArLACHIAN HARDWOOD SUBDIVISITN
SrBDI\SIOSN (Article II C):
This Subdivision consists of producers and iiantifactivirs of the
lumber and timber products of this Subdivision specified in the
paragraph entitled "Products" in the territory defined as follows:
Starting at Louisville, Ky., following main line of the Louisville and
Nashville Railroad to the Kentucky-Tennessee State line; thence
east following said State line to the westerly line of Pickett County,
Tenn.; thence southerly along the westerly boundaries of Pickett,
Fentress, Morgan, Roane, Rhea and Hamilton Counties to the inter-
section of the westerly line of Hamilton County and the Nashville
Chattanooga and St. Louis Railroad; thence easterly along said Rail-
road through Chattanooga to the intersection of said Railroad and
the Tennessee-Georgia State line; thence westerly along said Ten-
nessee-Georgia State line to the junction of the States of Tennessee,
Georgia and Alabama; thence south on Alabama-Georgia State line
to thirty fourth parallel; thence east on thirty-fourth parallel in
Georgia to mainline' Southern Railway, Atlanta to Washington
route; and thence northeast following Southern Railway from this
point through South Carolina, North Carolina and Virginia to the
northern terminal at Washington, D. C., and thence northward along
the line of the Pennsylvania Railway, Wahiiington to Philadelphia
route, to Pennsylvania State line; thence west along southern bound-




UNIVERSITY OF FLORIDA

6 I II I IIII I i l ll1111 1111i
3 1262 08583 0155
ary line and north along the w-estern boundaiy line of Pennsylvania
to Ohio River; thence along Ohio River to Louisville, Kentucky.
All ;points on boundary lines between Appalachian and Southern
Hardwood Subllivi-io(ns are in Southern territory.
PrODUCTrs (Article II A) :
All lumber and timber products enumerated when manufactured
flrin hardvlwo()od., Appalachian hemlock, white pine, spruce, white
(jinipe.r) and red cedar, ex-ept: poles and piling; shingles; wood-
work, including, prodlunts of planing mills not operated in con-
junction with sawmills; hardwood flooring: veneers; plywood; kiln
dried hardwi d dimension; sawed boxes, shook and crates; plywood,
ven'er, and wireblound packages and containers; crossarms; and rail-
raad cross ties.
ADMINISTRATIVE AGENCY (Article III):
Appalachian Hardwood Manufacturers, Inc., is designated as
the agency of the Authority and-the Hardwood Coordinating Com-
mittee for the administration of the Code in this Subdivision. Said
Applalacliian Hardwood Manufacturers, Inc., through its Board of
Tr1utees is authorized to make such rules and regulations as are
necessary to administer the Code in this Subdivision and to desig-
nate and authorize Luchi further agencies as may be required for
this purpose.
2-H. SOUTIIERN H .IIi)WOOD SUBDIVISION
SrimnivISION (Article II C) :
This Subdivision consists of producers and manufacturers of the
lumber and timber products of this Subdivision specified in the
paragraph entitled Products within the following states: Texas,
Louisiana. Mi-.-i-ippi, Alabama,. Arkansas, MIissouri, Oklahoma,
Florida, Georgia, Tennessee, Kentucky, South Carolina, North Caro-
lina, Virginia, and Maryland; excepting such portions of the above
named states as lie within the Appalachian territory as described
in 2A. All points on boundary lines between Appalachian and
Southern Hardwood Subdivisions are in Southern territory.
PI.rDUCTS (Article II A) :
All lumber and timber products enumerated when manufactured
from hardwoods, white and yellow cypress, and white (juniper) and
red cedar, except: poles and piling; shingles; woodwork, including
products of planing mills not operated in conjunction with sawmills;
hardwood flooring; veneers; plywood; kiln dried hardwood dimen-
sion; sawed boxes, shook and crates; plywood, veneer and wirebound
packages and containers; crossarms; and railroad cross ties.
ADMINISTRATIVE AGENCY (Article III) :
The Hardwood Manufacturers Institute is designated as the
agency of the Authority and the Hardwood Coordinating Com-
mittee for the administration of the Code in this Subdivision. Said
In-stitute, through its Board of Directors, is authorized to make such
rules and regulations as are necessary to administer the Code in this
Subdivision and to designate and authorize such further agencies
as may be required for this purpose.
Appirvled Code No. 9-Amendment No. 32.
Registry No. 313-1-06.




Full Text

PAGE 1

V Ap{lroved Code Ne. 9-Amendment No. 32 Registry No. 313-1-06 NATIO?TAL RECOVERY ADMINISTRATION Al\iENDMENT TO CODE OF FAIR COMPETITION FOR THE LUMBER AND TIMBER PRODUCTS INDUSTRIES AS APPROVED ON MARCH 15, 1935 WE DO OUR PART . _ .. -,. Io--:-::-= UNITED ST A TES GOVERNMENT PIUNTING OFFICE WASHINGTON: 1935 For saie by the Superintendent of Documents, \Vashington, D. C. • • • • • • • • • Price 5 cents

PAGE 2

This r u b lication i for sale IJy the Superiutenueut of D ucurneut~, G0Yernwe11t Printing Offi:.:e, ,Yas hington, D. C., anu by the following . R. .A. office: .Atlanta, Ga.: 6:..5 Citizcnt I.'. Southern ~ational B ank Building . Baltimore, Mel. : 1 3 0 C ustomhom;e . Birmingham, Ala.: 201 Liberty National Life Building. Bo ton, 1\fass. : Room 1200. 80 F e deral Street. Buffalo, N. Y.: 219 ,Yhite Building. Chicago, Ill.: Room 204, 400 North i\Iic-lligan .Avenue. CleY e land, Ohio.: 520 Bulkley Building . Dallas, Tex.: 1~1~ Revublie Bank B uilding. D etroit, frh.: 415 ~ e w l!"'ecler,ll Building. H o ust n , Tex.: 403 1\1ilam Building. Ja k 1 1\'ille, Fla.: 42.5 nitec.1 . 'tate Conrtl10u:-e and Post Office Building . Lo .Angele . . Calif.: 7 51 Figue r o a Street South. Loui ville, Ky. : -10S F e d eral Bui ldi;1g. l\IinoeapoL~. l\linn. : 900 Roano k e Building. , Na"'h Y ille, Tenn . : 4F Cotton StateBuil ding . Ne"ark, N. J.: 4:-'4 Industl'ial Offi ce Bniidin g, lOGO Broad Street. N e w Orle;1n , La. : 214 Cu:tomhonse. Tew York. N. Y. : 4-> Broadway. Oklahoma City, Okla.: 42 7 Commerce Exchange Building. Philadelphia, Pa. : 033 Commerdnl Trnst Building. Pittsburg h , Pa.: -101 Law and Finance Building. Portland, Oreg.: 40 7 Park Buil ling. ProYiclenc e, R. I.: Xational Exc:bano-e Bank Building, 17 Exchange Street. St. L cui , }Io.: Suite 1220. 506 Oli;-e Street. San Francisco, Calif.: Humholt Bank Buildi11g, 7 8 5 Mark e t Street. Seattle, W a ~h.: 1730 Exchange Building.

PAGE 3

Approved Code No. 9-Amendment No. 32 AlVIENDMENT TO CODE OF FAIR COlVIPETITION FOR THE LUMBER AND TIMBER PRODUCTS INDUSTRIES As Approved on March 15, 1935 ORDER AP1'ROnNG Al\IENDMENT OF Com~ OF F .AIR CoMPETITION FOR THE LuMBER AND TrMnEn PRODUCTS INDUSTRIES An application haYing been duly made pursuant to and in full com pliance 11ith the provisions of Title I, of the National Indu. trial Recovery Act approved June 16, 1933, for approval of an Amend ment to a Code of Fair Competition for the Lnmb0r and Timbe r Product Industries, and the annexed report of aid amendment, containing finding s ,..-ith respe c t thereto, having been made by the Ass i tant Deputy Administrator and directe d to the National Indns tiial Recovery Board, and it appearing that an opportunity to be heard wjll be afforded to all intereste d parties : NO,V, THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to author ity vested in it by ExecutiYe Order Number 6859, an l otherwise: do-es hereby approYe, adopt, and incorporate by reference ail report, recommendations, and findings, and do e furthe r fin l that .__aid amendment and the Code as COJ 1 titute d after being amended comply in all re. pects with the pertinent provi ion and will promote the policy and purpo es of said Title of said Act, and cloes hereby order that said amendment annexed hereto be, and jt i s hereby approved, and th.at the previous approval of said Code is hereb_y modi fied to include an a prov al of said Code in its entirety as amended, uch approYal and such amen lment to become effective twenty (20) clays from the date hereof unless good cause to the contrary is shown to the National Industrial Recovery Board1 and the National Indus trial R0c m~ery Board is s ues a sub. equent Order. N ATIOX..-\L INDUSTRIAL RECOYEilY BOARD, By ,V. A. 1-LI\.RRil\IAN, Aclmiwistrative Office1. J Appr Yal recomm2nded: ,Y. P. ELLI ' Dii:ision ' Adminisfrator. \Y.ASIIIXGTOX. D. C., Zif atcli 15, 19 35 121Gl7-160~-76-35 (1)

PAGE 4

REPORT TO THE NATIONAL INDUSTRIAL RECOVERY BOARD NATIONAL INDU TRI.AL RECOVERY BOARD, Washington, D. 0. GENTLEMEN: I have the honor to ubmit and r ecommend for your approval an amendment to the Co de of Fair Competition for the Lumber and Timbe r Produc t Industrie , which change chedule "A' of sa i d Code b y t erminating the Appalachian and outhern Hardwood Subdi vi ion o f the H ard-wood DiYi i o n and creating the Appalachian Hardw ood Subdivis i o n of the Hardwood Division and the Southern Hardwood Subdivision of the Hardwood DiYi ion. The amendment de ignate the Appalachian H ardwood :Manufac turer Incorporated a the admini trative agency of the 'Appa lachian Hardwood Subdi v i sion", ,esting it with the p owers authoriz ed in the Code a nece ary and p roper for aclmini tratiYe purpo es in a Subdivisi on . An examinat io n of it Constitution a n d ByL aws how that it imposes no inequi t ab l e re s triction s upon membership and i truly repre entative of the propo eel Subdivision. By this amendment the Hardwood ~fanufacturers In titute Incorporated, which wa previousl y the admini trative agency of the undivided " Subdivi ion ' is continued, by designation, as the admini trative agency for the majority of this area which wi ll be incl uded in the "Southern Hardwood Subdivi ion. ' It has previou ly been found to impose no inequitabl e re triction on member hip and to be truly repre entatiYe of the propo eel Subtli, i ion. It i hereby vested with the powers authorized in the Code as ne e ary and proper for admini tratiYe purposes in a Subtlivi ion. This amendment ha been submitted by the Lumber Code Author ity in accordance with a resolution of December 5, 1934, in pur uance of a petition of the Hardwood ~Ianufacturer of the region indudecl under the propo eel ''Appalachian Hardwood SnbcliYi ion . ' A meeting of the e manufacturers wa. held at Netherlands Plaza Hotel, Cincinnati , Ohio, T oYember 2, 1934, at whic h were pre ent manufacturer representing an annual capacity of 1,000,150 000 board feet of harclwo l lumber out of a total rated capacity of 1,810 290,000 boar 1 feet o r 55. 32 /l of the total. There were one hundred and nineteen (119) manufacturer pre ent with productive capacity ranging from 312,000 to 76,000 ,00 0 board feet per annum. The av erage produ tiYe capacity of the manufacturers pre ent wa approximately 8 300,000 board feet per annum. Of the manufacturers pre ent thirt3 -one (31) have a yearly pro luctive capa ity of le . than 2,000,000 board feet each. Thi petition received the approval of the Hardwood ~Ianufacturer In titute, Incorporated, the Hardwood Co-ordinating Committee, and the Lumber Code Authority. A notice of opportunity to be h eard on thi amendment wi ll be made known to all interested partie through the mailing of a copy of aid notice t o everyon e of record in the office of the Ap-(2)

PAGE 5

3 palachian Hardwood Manufacture rs, Incorporate d, and the Hardwood Manufacturers Institute, the proposed Divi ion Age n c ie s re spectively in each of the two contemplated Subdivi i ons, and to appropriate trade papers serving the affected areas. The following exhibit are included in Volume II: 1. Industrial Advisory Board's Approval. 2. Con umers' Advisory Board's Approval. 3. Report of Labor Advisory Board. 4. L ega l Di vision' Approval. 5. Re earch and Planning Divisi on 's Approva l. 6. Admini tration M embers' Approval. 7. Letter of Transmittal from the Lumbe r Code Authority. 8. Noti c e of Opportunity to be h eard. 9. Copy of Petition of Appalachian Manufacturer submitted to Lumber Code Authority, Letter of Transmi ion of said Petition from that Authority, and Affidavits o f competent parties upporting alient points made in aid P etitio n. 10. Action of Hardwood Manufacturers In -titute Board of Director . 11. Code and Amendment already approved. F o r the proper con idcration of this amendment and determination with re s pect thereto, the following facts and finding s are set forth: The hardwood lumber manufacturing industry of the South has ever been divided into two di tinct groups, i. e., the Appalachian and the Southern manufacturers, as is evidenced by the Forest Serv ice's boundary delineation of the Appalachian territory and as set out in the petition and its supporting affidavits. This division is bec a u se of the following fundamental r easons: (a) Operating Conditions: The Southern territory is largel y flat while the Appalachian i s in the main hilly and mountainous . This call f or u age in the Appalachian territory of a different and higher class of l abor, and different and more expe n s ive types of logging equipment than are ne cessary in the Southern operations . The hilly topography and the heav i e r inve tment of capital nece ssary in mu h of the Appalachian region tend to minimize the numb r of very mall mills operating in that district. (b) Timber O wne r hip: Appalachian timber i largel y owned by the mills that l og and manufacture it, as contra ted with independent log and tanding timber marketing practices of the South. ( c) Timb r Species : The Appalachian territory contains sonrn specie not found in the South. In some other species the pre lorni nance is greater in the Applachian and in some others in the South. ( d) Quality: The quality of the Appalachian timber is generally better than that of the South. ( e ) Value : By rea on of this superio r quality, and, to ome extent, it closer proximity to major con urning markets, the Appalachian pro luct command a higher price. (f) The minimum . wao-e rates in the Appalachian and the South ern territories are 28 cents and 24 cent per hour re pectively. \Vhen it was written it wa thought po ible to admini ter the Code for the e two di tinct ive group through a joint Subdivis ion, upon the administrative body of which each hould have representation.

PAGE 6

4 Eighteen month.' experience has cl monstrated the fall acy of this a ssumption. lVhile the Appalachian mills produced about 251/o of the harch.-ood lumber of the entire South, their representation on the achaini tratiYe directorate of the joint SubdiYi ion has been six (6) out of a total of thirty-three (33) or lightly over 18%, . The reco rds bear out the contention of the Appalachian operators that under joint Subdivision administration of Article VIII of th Code, the South ern mill hav recein~c.1 an oYer-liberal production allo+-ment at the expense of the Appalachian mill . The Code sets up that an achnin istrative agency hall be truly representative. This joint adminis tratiYe agency is not, and b e cau s e of the fundamentally different exiting condition aboYe recite d, can never be o made. The mandate of the Code, j u tice and wis lorn dictate that thi s petition should be granted through the approYa l and promulgation of thi amendment which I finJ: 1 st, ""\Vill effectuate the policies of the Act in the granting of true repre entation. 2nd, ""\Vill impo e no inequitable restriction . 3rd, ""\Vill not promote monopolies or tend to monopolistic practice..,. 4th, ""\Vill not oppres sma ll e nterprises. On the basis of all the fact stated above and the admini!-:-tratiYe finding s of l aw and fact ma de above, I recomm end that this amendment be approved. Re. pectfull y, Approval recommended: A. C . DrxoN, J . C . ,vr 'KLIFFE, Assistant Deputy Admin-istntto1 . Deputy Aclmin ,i,strato1. ,v. P. ELLIS, D-ivision Acl?nini.stTatm'. :MARCH 7, 1935 . •

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AMEN D ~1ENT T O OD E OF FAIR OMPETITION FOR T H E L UMBE R AND T I MBE R PRO D UCTS INDUSTRIES I n Schedu l e A, D IVISION AND SUBDIVISION CODE PROVI "'ION , delete" 2-A. Appalachian and outhern Hardwood ub divi ion and sub titute therefor: 2-A. ppala hian Hardwood ubdivi ion 2-H. S uthern Hardwood Subdivision In chedule A 2 . Hardwood Divi ion, Divi ion (Article II, C) :, paragraph (a), delete Southern and Appalachian Hardwood Subdivi ion and subs+-itute therefor: Appalachian Hardwood Subdivi ion outhern Hardwood Subdivi ion In chedule A, 2. -Hardwood Divi ion, Administrative Agencies (Arti le III) :, paragraph (A), delete Southern and Appalachian Hardwood ubdivision-Hardwood 1:anufacturers In titute" and ub titute therefor: Appalachian Hardwood ubdivi ion-Appalachian Hardwood J\lanufacturer Inc . 'outhern Hardwood ubdivi ion -Hardwood ~lanufacturers In titute. In chedule delete entire section" 2-A. Appalachian and outhern Hardwood Subdivi ion" and substitute therefor: 2-A. APPALACHIAN HARD\\ 00D SUBDIHSI0..1. nmn ION (Article II C) : This Subdivi ion con i t of producer and manufacturer of the lumber and timber products of thi Subdivision spe ified in the paragraph entitled "Products" in the territory defined a follow: Starting at Loui ville, Ky. , following main line of the Louisville and ashville Railroad to the K entucky-Tenne ee tate line; thence east following aid State line to the we terly line of Pickett County, Tenn.; thence southerly along the we terly boundarie of Pickett, Fentre Morgan, Roane, Rhea and Hamilton Countie to the intersection of the we terly line of Hamilton County and the a hville hattanooga and St. Louis Railroad; thence ea terly along aid R ailroad through Chattanooga to the inter ection of said Railroad ancl the 'Ienne ee-Georgia State line; thence we terly along aid Ten ne ee-Georgia State line to the junction of the State of Tenne see, Georgia and Alabama; thence outh on Alabama-Georgia State line to thirty fourth parallel thence ea t on thirty-fourth parallel in Geor(J'ia to mainline Southern Railway, Atlanta to "\Va hington route; and thence northea t following Southern Railway from thi point through South Carolina, orth Carolina and Virginia to the northern terminal at\ a hington, D. C., and thence northward alono the line of the P nn yfrania Railway, '\Va hington to Philadelphia route, to Pennsylvania State line; thence we t along southern bound-(5)

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1111111111 ~II 1l~1li~11i1' ii i11i II 1111111~ iilllll 111111111 3 1262 08583 0155 6 ary line and north along the w e tern boundary line of Pennsylvania t o Ohi o RiYe r the nce along Ohio River to Louisville, Kentucky. A ll } J oin ts o n b oun l a r y lines b e tween Appala,..hian ancl Southern Hardw o od SubdiYi . ion are in S outhern territory. PR O DUCT S ( A r ticl e II A) : A ll lum ber a n d timbe r products enumerated when manufactured fro m har hYoo l , Appalachian hemlo c k, white pine, s1 ru e, white (juniper) ancl rerl c e d a r ex c0pt: pole and piling; shingle ; \\'Oocl w ork, incluclin oproducts o:f planing mills not op0rate d in con -junct i o n with a.wmill ; hard"TT""ood flooring; -veneer ; plywood kiln drie d h ardwoo d dime n sion; s awed boxes, shook and crates plywood, veneer , an l , ire b ound package and containers ; cro sarms ; and rail roa 1 r oss ties. Aol\II N I STRATIYE AGEKCY (Article III) : Appalachian Harcl"TT""ood i1anufacturers, Inc., is de ignatecl ns the aO'e n c y of th Authority and-the Hardwood Coordinating Com mittee for the a lmini tration of the Code in this Subdivision. Said Appalachia n Hard"TT""oocl :Manufacturers, Inc. through its Board of Tru t e e s i authorizer l to make such rule. and regulation as are nece. ary to aclmini t e r the Code in this Subdivi ion and to de ignate and authorize uch furthe r agencie as may be required for this purpose. 2-H. So u n rnn~ IL--.Rnwooo Sunmn ION S BDIYI rnx ( Article II C) : Thi c.:lub li-vis ion con s i . t of producers and manufa turers of the lumbe r and timbe r produc ts of this Subdi-vi ion pecified in the paragraph entitle d ' Product ' within the following . tates: Texa , Louis iana, JUi. i , sippi, Alabama, Arkans a , J\Iissouri, Oklahoma, Florida Geor g ia , T e nne s ee, Kentucky, South Carolina, North Carolina. Yirginia, and :Maryland; excepting such portion of the above name d state as lie within the Appalachian territory as de cribed in 2...\... All points on boundary lines between Appalachian and Southern Hardwood Subdivi ions are in Southern territory. PnooucT ( Article II A) : All lumber and timber products enumerated when manufactured :from harcl--wood , white and yellow cypress, and white (juniper) and red cedar ex cept: pole and piling; shingle ; woodwork, including products of planing mill not operated in conjunction with sawmills; hardwo od floorino" veneer ; plywood; kiln dried hard"TT""oo l dimen-ion; awed boxe . , hook and crates; plywood, vener and wirebound pa c kage and container ; crossarm ; and railroa l cro s ties. Am\IINISTRATIYE AGEXCY ( Article III) : The Hardwood J\fanufacturers Institute is de ignated a the agency of the \.uthority and the Hardwood Coordinating Committee for the a lmini tration of the Code in this Subdivi ion. Said Institute, through its Board of Directors, is authorized to make such rule s and regulations a are neces ary to administer the Code in thi~ Subdivision and to de ignate and authorize such further agencies n may be required for this purpose. A11pr0Ye d C'otle No. 9-Amenclment No. 32. Regi try No. 313-106. 0