ATIONAL HARDWOOD NEWS NATIONAL HARDWOOD LUMBER ASSOCIATION 332 S. MICHIGAN AVE.. CHICAGO, ILL. 60604 NEWS NO. 768 JANUARY 15, 1976 INDUSTRY COMPLYING WITH LAW ON KD MEASUREMENT Acting on information in the four previous issues of the NHLA News, it is apparent that most hardwood lumber operators have come into compliance with the laws governing invoicing and quoting on kiln dried hardwood lumber. A number of members have sent to NHLA headquarters copies of their announcements to the trade regarding this change. However, many more of these are needed in order to prove industry compliance at the meeting in Washington on January 28 of the Committee on Laws and Regulations of the National Conference on Weights and Measures. If you have sent out such an announcement, please make sure NHLA receives a copy. Otherwise, please write NHLA stating your new policy. These communications will be handled with discretion, but they are needed badly and should be received here by January 26. To recap the situation, the NCWM staff has ruled that: 1. Invoices and quotations for hardwood lumber inspected and 2. Invoices and quotations for hardwood lumber inspected and As previously advised, your NHLA staff will represent your interests at the January 28 Washington meeting. It is believed that shortly after this meeting the NCWM Committee on Laws and Regulations will confirm the above guidelines of the NCWM staff and will not insist on more burdensome and unworkable interpretations. To help insure this, your cooperation in furnishing the material requested above is needed. Your February 16 Newsletter will convey the results of the January 28 meeting and will transmit new paste-over sheets on this subject for your Rules Books. On January 27, NHLA Vice Presidents John Skubiz and Henry Jones, Jr. and Secretary Howard Gatewood appeared before the Committee on Laws and Regulations of the National Conference on Weights and Measures in Washington, D. C. The brief NHLA submitted was in accord, of course, with the instructions of the Board of Managers at their October 13, 1975 meeting and as set forth in the January 15 issue and previous issues of your Newsletter. How hardwood lumber is marketed and kiln shrinkage problems were covered. The Committee was also asked to waive the requirement of demonstrable economic hardship for using green footage on invoices for lumber inspected prior to kiln drying. In addition, the Committee was told that NHLA headquarters had recently received strong representations from a number of highly respected members in opposition to the actions adopted by the NHLA Board on October 13 on the basis of information available to it at that time. These had included statements alluded to Indiana and Michigan Weights and Measures officials that the industry practice of adding back for kiln shrinkage was not objectionable in their opinion. There was also objection to a two-tier system of pricing which would present problems for customers in determining material costs. For these reasons, the NHLA spokesmen, acting on the authority of NHLA officers, asked for and received the privilege of possibly submitting an addendum or amendment to their brief after the NHLA Board has had an opportunity to reexamine the matter at its next meeting on April 5 and 6 prior to the full meeting of the National Conference on Weights and Measures in early July. Committee Chairman Charles Vincent, of Dallas, stated that the NCWM had also received conflicting communications from industry principals and that the Committee needed more input on the matter before deciding (a) whether to prepare a Model State Regulation for hardwood lumber and (b) its provisions. He thought it possible to call a special meeting of his Committee just prior to the July Conference to hear final arguments on hardwood lumber. Under these circumstances, NHLA has no alternative to postponing the printing of new paste over sheets for your Rules Book dealing with this matter until the NCWM has issued definite and final rules for invoicing and quoting on kiln dried hardwood lumber, probably in July. In the meantime, it is recommended that members protect themselves in quoting on and invoicing for kiln dried lumber by adhering to the NCWM staff interpretation contained in your January 15 Newsletter. When your Board of Managers considers this issue at its meeting of April 5 and 6, it will with to adopt a further course of action which is favored by a majority of members. Therefore, it will be most helpful to the Board (and to you) if you will write your views to NHLA headquarters well in advance of the April meeting. These will be tabulated and presented to the Board and will receive full consideration. The Board will want to know whether you favor letting the matter stand as outlined in the January 15 Newsletter, or petitioning the NCWM for approval of handling kiln shrinkage as formerly practiced, or some other course. Please make your letters brief and to the point, but, above all, please send them as soon as possible. HONAL HARDWOOD NEWS NATIONAL HARDWOOD LUMBER ASSOCIATION 332 S. MICHIGAN AVE., CHICAGO, ILL. 60604 NEWS NO. 770 MARCH 15, 1976 KILN SHRINKAGE CONSIDERED BY NHLA REGULATIONS COMMITTEE At its meeting in Chicago on March 4, the newly formed NHLA Inspection Regulations Committee agreed on recommendations to be made to the Board of Managers on a number of matters, including kiln shrinkage allowances. In discussing the difficult problem of kiln shrinkage allowances, the committee considered these factors. The National Conference on Weights and Measures is going to issue some form of Model State Regulations for kiln dried hardwood lumber. Of the letters received from members on this subject in response. to the request in the February 16 Newsletter, 84% expressed a preference for a policy as close as possible to adding back for kiln shrinkage as formerly practiced. With the metrication of the Rules Book expected to take place in a few years, it would be preferable to postpone any other major changes until then. Of major concern are the purchasers of small amounts of hardwood lumber who might not understand and accept the shrinkage allowance. In consideration of all of these factors, the committee agreed to recommend to the NHLA Board that the NCWM be importuned to limit its regulation to requiring that "Quotations and invoices for less than 500 board feet of any species of kiln dried hardwood lumber shall be on a net tally basis, unless otherwise agreed between buyer and seller." The committee also felt that the Table of Shrinkage Values should remain in the Rules Book, after being submitted to the U. S. Forest Products Laboratory for any corrections necessary. Also recommended was that the paragraph on page 47 of the Rules Book referring to kiln shrinkage be eliminated and replaced by a statement approved by NCWM and that other details concerning this subject should be handled in the NHLA Sales Code, including a stipulation that the percentage of shrinkage used, if any, be stated on invoices and quotations. It is important that the membership understand that the above are only the recommendations of your Inspection Regulations Committee and will have no official status until, as and if approved by your Board of Managers and the NCWM. The Board decisions of October 13, 1975, and NCWM staff interpretations as delinated in your January 15 Newsletter remain as recommended procedure until changed. It is recognized and regretted that this subject has caused much confusion in the industry. Please understand that NHLA will continue to work hard within the confines of the law to achieve regulations from NCWM which will be as fair as possible to all concerned and acceptable to the greatest majority of the industry. It is reasonable to expect that the matter will be resolved by the time of the July Nat'l Conference on Weights and Measures. If you have not already mailed your views on this controversial subject to NHLA headquarters, or if you wish to furnish additional comments on the above information, you are urged to do so within the next few days so that they can be considered by the Board at its meetings on April 5-6. CABLE VA PHONE 532-3678 NORTHERN BRANCH: 100 QUINCY ST. BOX 358 HANCOCK, MICHIGAN 49930 VAN KEULEN & WINCHESTER LUMBER COMPANY 245 FIFTY-FOURTH ST. S.W., GRAND RAPIDS, MICHIGAN January 12, 1976 National Hardwood Lumber Association 332 S. Michigan Avenue Chicago, IL 60604 Attention: Mr. Howard Gatewood Dear Howard: RE: The measurement of Hardwood Lumber, prior to kiln dry ing and after kiln drying--and the controversy as to whether or not a shrinkage factor should be added to the measurement if made after kiln drying. The purpose of this letter is as follows: 1. 2. 3. 49508 To acquaint you and N.H.L.A. (and other interested parties--by means of copies of this letter) of what I believe is important information on this controversial subject. To advise you--and other members of the Industry--as to the policy To solicit N.H.L.A. action on what appears to be possibly a simple To establish the "background", may I explain: I have attended several impromptu gatherings and several foral meetings for discussion of the matter of adding kiln drying shrinkage to the tally of lumber measured after kiln drying. At some of the formal meetings, pledges were asked from those in attendance--pledges to abandon the old proceedure of adding a shrinkage factor to the tally, and instead adopt a "not measure" policy with the kiln shrinkage to be computed into the selling price. I have heard many times over--from many different sources--how this whole controversy started in California--how the California lumbermen "solved" the problem by going to the net measurement basis as demanded by the California Bureau of Weights and Measurers--how this proceedure spread to 14 other Western States-how most of the Midwest Yards and Dealers were also following suit--how the entire Industry nationwide must follow the same proceedure under the "Nader" type threat of "clean up your industry or it will be cleaned up for you"-how we are faced with horrendous class suits unless we change our proceedure-how MILA has been contacted by The National Conference of eights and Heasures (as reported in your National Hardwood News letter #766 of 11/17/75)--etc. Manufacturers and Wholesalers of Fine Hardwoods Since 1898 Mr. Howard Gatewood January 12, 1976 After overcoming my initial confusion from the bombardment of information, and after getting my thinking straightened out, my thoughts settled down to the following: 1. 2. 3. 4. 5. Almost everything I have listened to (except your News Letter) has been hear-say-second, third, or fourth hand, and the more frequently I heard it the more distorted it became. I'll be damned if I want to change (not do I want to see my Industry No one (buyer or seller) was actually being cheated or mislead under The revised method measurement was actually setting up a double Before my Company capitulates to the abandonment of an old established Industry practice--and one with which I really can find no fault--1 wanted to check out facts and figutes for myself, in effect, get closer to the "horses mouth" than I felt I was at this point. Therefore, I have had two revealing conferences with the Bureau of Weights and Measures of the State of Michigan. An outline of these meetings is as follows: A. My contribution to the meeting: 1. 2. Outlined the activities of the lardwood industry, as compared Outlined the function of N..L.A. in establishing rules for 3. By actual demonstration with a board rule and tally sheet, |