Way 10. IMl'l 



HARDWOOD RECORD 



Manufacturers 



SOUTHERN HARDWOODS 



Ash 



Poplar 



Red Gum 



Mixed Oak 

 Elm 



Sap Gum 



Soft Maple 



Tupelo 



CUMMER LUMBER COMPANY 



SALES OFFICE: 



280 MADISON AVENUE 



NEW YORK, N. Y. 



MAIN OFFICE 



JACKSONVILLE, FLORIDA 



IjimI. a cairfiil sui\(y nt the riiad to lii' liuilt sluiuM be m:ulc ami 

 a tarot'ul ostiniate of the eost of eonstnietiou sliould bo figureil. 

 As these items :ire nil chargeable against the lumber you are to 

 manufaeture it is imperative that no mistakes are ma<le in your 

 estimate for on your original figures often depends the success or 

 failure of your job. I have no douljt liut that there are members 

 present who can call tn memory jobs that have fallen by the way- 

 side on account of the owners failing to properly estimate the cost 

 of their roads. As to railroad equipment which consists of 

 engines, cars, steel, et<-., 1 can only say that proper depreciation 

 charges should be made monthly or yearly, for like your plant 

 facilities old Father Time is constantly on the job and the only 

 possible way to take care of his destructive work is to hi'ail him 

 off by making proper dejireciation charges. 



I have given .vou three of tlie vital elements which alfect your 

 costs. Investineiif in tinilur, ]dant facilities ami railroad con 

 struction and ni.aiiiten.-iiK r. 1 now come to tlii' most import.ant 

 item .'ifl'ecting your costs and tli.at is lalior. 



Labor, the All-Important 



hi the woods timber ciitliug, ste.-im skidding, swam)iing, grading, 

 and teaiiLing I'Osts iruLst be ke|it separately. To these items 

 supjdies and extr:i e.vpense must lie aibled. The cost of kei'iiing 

 teams in the woods must lie considered and last, but not le;ist, you 

 must know exactly what you are making or losing on your cook 

 room. 



Branch line railrctad constrviction should be ke]it st-jiarately for 

 fliis is a continuous item of expense, and should properly be 

 (lividi'il into swamping, grading, laying and taking up steel. .\ll 

 of these items iLiake your stocking co.sts. In the cost of loailing 

 logs, labor charges, upkeep of loaders and the necessary supplies 

 .and ex]iense must In' taken into consider.ation and an accnr,'it<' 

 aci-ount kept. The cost of hauling logs from the wooils to the 

 mill mnsl be kept sep.arately and into the item of costs .-ire direct 

 Labor charges, fuel, upkeep of track, repairs In cirs ;iml Im-o 

 motives. 



Ill the mill praclii-ally all charges are made against sawing, 

 except the costs whiidi are chai'gealile to the articles which are 

 made from the off -f .all. 



On the yard the expenses are divisible into trucking, sticking, 

 loading, supplies .and exjienses. 



Administration and general expense aci-ount covers a wide field. 

 To this account s;ilaries of officers and their traveling expenses 

 wiien on company business are to be charged. Interest, insurance, 

 and taxes .are c-hargeablc to this account and must not be over- 

 looked. 



I have m.ade mi attempt to cover the entire field of costs, but 

 have endeavoreil to impress upon you the necessity of getting 

 accurate costs. The \arious items wliicli 1 have named will form 

 a basis from whic h to work, and every item of expense no matter 

 how small must find a proper ]ilace in your accounts if you are to 

 lia\c an absolutely correct cost sheet. 



II c\ cry lumber coiiijiany in this si'ction of the country keeps 

 an accurate account of costs our business will prove both pleasant 

 and proHtabb'. When the jirices of lumber are ladow tlie cost of 

 product ion it is imperati\'e tli.at the lumbermen ol" this section- 

 ilenianii a jii-ice th.af will axerage something more than the cost 

 of production. Practically all mills in this section have or should 

 li;i\(' costs of production at about the same figure. If you -know 

 that your costs arc in line with other mills it is not necessary for 

 yon to take less for your lumber than it cost ,vou, for by so doing 

 yon are bringing ruination to yourselves and at the same time 

 demoralizing the industry in which you are engaged. It is not fair 

 to cut prices below the cost of production and it is not good 

 business, thenfore, maintain a standard, let your accurate cost 

 sheet be ypur guide in iletermining your sales and never sell below 

 the average cost of produclioii. in cillier words, make your average 

 sales price exceed your average cost of production, and then yon 

 will be on :i sound basis and your success assurt'd. 



1 plead for hearty coiiperation. 1 ask th.-it all join hamls in 

 iiiakiiig our bu.sines.s sound and sei'iire. 



