HARDWOOD RECORD 



29 



the general fund; but the mistake should not be made of using a 

 depreciation charge on the books and then failing to apply it prop- 

 erly. The common practice among lumbermen who operate only 

 rehandling yards, in which there is little or no equipment of a 

 mechanical nature, is to use no depreciation charge whatever. They 

 have a large investment in buildings, horses and mules, wagons and 

 trucks, pile foundations, etc., and all of this property is certain to 

 decrease in efficiency and value. The horses wear out or die and must 

 be replaced; the trucks serve their term and are east aside, and the 

 pile foundations must be renewed from time to time, unless they were 

 made of concrete at the beginning and prepared for indefinite use. 



It is true that most of these expenses occur in such a way that it 

 is possible to take care of them out of current earnings, and thus 

 make them chargeable to maintenance rather than depreciation; 

 though if a couple of mules die in the same month, as happened to 

 a lumberman not long ago, it makes a pretty big hole in the mainte- 

 nance account. The use of a depreciation charge, with the proceeds 

 turned into a fund from which money could be drawn as needed to 

 take care of replacements due to depreciation, would possibly be too 

 much like transferring money from one pocket to another to suit the 

 average lumberman; but it is a plan that has many advantages, 

 and is approved, as indicated above, by leading houses which have 

 studied, the cost accovmting proposition from every angle. 



A feature which is worth noting, especially for the sake of the 

 head of the business which is not incorporated, and which is owned 



personally by the proprietor or partners, is that it is extremely desir- 

 able to charge a definite amount for the services of those engaged 

 in executive positions. To assume that this is unnecessary because 

 the earnings of the business will go personally to the owners of it is 

 bad logic, since that feature does not affect the proper disposition 

 of the income and expenses. If no salaries are charged for execu- 

 tive work, then the earnings of the business are made to appear 

 larger than they really are, a condition which is undesirable, to say 

 the least. 



There is a large and successful lumber concern in the South which 

 is headed by two aggressive young men, who handle all of the admin- 

 istrative work. They have drawing accounts, and get enough money 

 for their expenses, both business and personal out of the business. 

 But they are paid no salaries, and simply take what is made during 

 the year and regard it as their salaries for the preceding period. This 

 is a fairly comfortable, easy-going way to run the business, but it 

 certainly obscures a very important feature, as to what the net earn- 

 ings of the business/reaUy are. They cannot be determined unless a 

 salary in proportion to the value of his services is paid each man. 



The fact that most lumber concerns are closing up their fiscal year, 

 July 1 usually marking the beginning of a new trade period, may 

 make these observations of some interest and practical application, 

 as now is the time when anntial statements are being made up and 

 scanned for suggestions as to methods to be used in all departments 

 during the succeeding year. 



Waste from Edgings and Trimmings 



Editor's Note 



The following article is written by an eastern lumberman who has made a particular study of crate manufacture 

 as it applies to the utilization of small waste of the mill. Inasmuch as the manufacture of tomato crates provides 

 a use for waste of all kinds of woods and all sizes, and further, inasmuch as it has been demonstrated that they 

 can be marketed at a profit, it would seem that the suggestion is pertinent. Those wishing to get in touch with 

 dealers handling tbese crates can secure this information by writing Hardwood Recobd. 



In the April twenty-fifth issue 

 of Hakdwood Eecord an interest- 

 ing and commendable article 

 appeared under the heading, 

 ' ' Practical Figures on Hardwood 

 Utilization," showing the as- 

 tounding figures, from the For- 

 est Service, to the effect that 

 the actual percentage of lumber 

 produced from a tree is only 3S 

 per cent, while 12 per cent is saw 

 kerf, 8 per cent edgings and 

 trimmings, slabs 8 per cent, tops 

 IS per cent, stumps left in woods 

 2 per cent, 10 per cent bark, 

 dressing 4 per cent. 



The present article purposes to 

 treat with the item of waste in 

 edgings and trimmings, with a 

 suggestion for utilizing this 8 per 

 cent and turning a waste product 

 into an article which will not 

 only be a source of profit to the 

 saw and planing mill operator, 

 but keep a waste product out of 

 the burner. 



In those sections where the soil 

 is adapted and permits of truck 

 gardening in abundance and 

 where it is followed with much 

 success, particularly in eastern 

 and southern New Jersey, almost 



■unlimited quantities of tomato crates are used, the crates being 

 used but once and never returned, thus providing a large market 

 for this class of material. The crates are bought generally by 



PIECES USED IN TOMATO CR.\TE MANUFACTURE 



dealers in that section, who keep 

 them in stock, selling to the truck 

 gardener in small lots, the dealer 

 realizing a nominal profit for 

 his efforts in buying, handling, 

 carrying, nailing up and rehan- 

 dling charge. A dealer doing an 

 ordinary business of this kind 

 oftentimes handles 500,000 to- 

 mato crates during a good sea- 

 son — which is usually short, 

 covering a period of only about 

 four or five weeks during July 

 and August. The dealers, how- 

 ever, take in the crates through- 

 out the year, storing them in 

 warehouses. 



The dimensions and pieces to 

 make up a complete crate are: 



2 heads 13/16"xl9"xll" SIS 

 (for stenciling). 



•2 clubs l"xl" — 20" rough. 



11 slats 5/16"x3"x20" rough. 



The heads have a slot hand 

 hold 1%" from the top. 



As indicated, the crates are 



shipped "knock down," most 



dealers taking in, either full 



carlots of heads, full cars of 



slats and clubs, or both, mixed 



in the ear, the preference of the 



manufacturer governing. 



A full crate contains four and one-third feet, board measure; a 



set of heads one and one-third; a set of clubs — one-half foot and 



a set of slats two and one-half; a "knock down" crate weighs 



