26b 



HARDWOOD RECORD 



Fi'liiuar.v 10, 191S 



Cost Accounting 



C. H. Seovoll of Boston, certified public accountant, then de- 

 livered an address on "Accounting Essentials for Lumber In- 

 dustry.'' Judging from the rapt attention given Mr. Scovell, the 

 hnnhermen gained much knowledge from the talk, which, while 

 technical, was lucid and of great value. Mr. Scovell impressed 

 upon his hearers that it is to the advantage of everyone in the lum- 

 ber industry that standards of cost be established and the informa- 

 tion widely distributed. 



The dirticulti<'s of properly estimatiMg the cost of stum)iage in 

 lumber operations was iliscussi'd. On this subject Mr. Scovell said: 



The iitli'Ution of a ninniil'iicturcr Is n;iturally lixccl ou the cost of 

 stuniii'iKi' iis It Is ciiiisiinu'd in luniln-r npcriitions. This cost niu.v be a 

 current jiurchaso ijrlce, or it may tn' tlie tinal reclioning of a lonK holdin;; 

 of tlnilxT. 11" linilier lias hccn long lield there is naturally a cciniparisnii 

 of the cost-t<>-)late witli the actual ur ixtssihie prices for current pur- 

 chases. Tlu'ri' is then the licliatc as tn Imw the cost of carryhifr tliuhrr 

 hohling sluiuld lie rcikoneil. TlU' vii'w point of the holder of timlieriami 

 necessarily regards the sawmill chiefly as the best method of disposinj,- 

 ot" stumi)age. Kven this point of view cannot ignore the cost to carry 

 timber luildinjjs. I am surprised that most of tlu' printed matter now 

 rtvaiiahie should lie so vague iuu\ uncertain on tliese impm-taut matters. 

 It seems tn mc tlu' proljlem tif raw nmterinl cost for lumber <iperatii>ns 

 is difl'ereiit in degrei' (inly, and not dilTeretit in principle from tile pmbli'iii 

 of any other raw material tliat is liouglit long in advaiu-e of its expected 

 use. anil might perhaps lie bought cheaper in a spot marl<et, if indeed it 

 is obtaiimble. when tlie day for consumption arrives. 



The Smoker a Lively Affair 



A smoker was held tor the delegates in the evening in the 

 banquet hall of the Sinton. The entertainment committee pro- 

 vided an appetizing luncheon and a very entertaining cabaret per- 

 formance, the latter being in charge of Iloriice Williamson, Cin- 

 cinnati, the "poet-talker.'' 



Assistant to the President F. K. Gadd deserves great credit for 

 tlie general arrangements for the convention. The delegates were 

 well taken care of oveiy minute. The registration system enabled 

 anyone to locate a friend quickly. This work was in charge of 

 Mr. Gadd's office force. Kadi delegate was registered and prop- 

 erly tagged with badge and identitication card as he made for the 

 convention hall. The young ladies' winning smiles at the registra- 

 tion desk (piickly banished the most grim frown of those who ar- 

 rived late owing to delayed trains. Everyone left the registration 

 desk in good humor. They couldn't help it. 



The badges, about the neatest seen at a convention, were the 

 compliments of The Henry Disston & Sons ('oin]i;iny. The national 

 colors formed the ribbon part. 



SECOND DAY MARKED BY SPLENDID SPEECHES 



The second and closing day of the convention opened with the 

 speakers rcaitirming their declarations sounded the opening day, 



II. D.VWKINS, ASIILAMl. IvV"., MKMIU:i! 

 r.O.AItn OF COVEUNOKS 



]ii;l.\nky. li:xi.\i;t().\. memheu 



I'.(I.\KI) (IF COVEKNdKS 



1! M 



C.MtUIIOIt. SAIilUS, MISS. MKMI'.KR 



r.ii.Mii) 111- i;iivi-n;.\(iHs 



The operating cost can be sejiarated in tlicni more reailily than 

 timber cost, and the items usually included are logging, transporta- 

 tion, sawmill operation, by-product manufacture, selling and sliiii- 

 piug. 



The overhead cost eame in for discussion in its proper place. 

 Aside from the distribution of operating expenses, particularly 

 taxes and interest ou the investmeut, among tli^> many groups men- 

 tioned above, care should be taken to distribute to these groups 

 additional costs for supervision, supplies and any expenses which 

 can be accurately located. Such a proceeding will reduce the gen- 

 eral expenses to a much smaller total than usually a]ipears in the 

 accounts of a lumber business. 



A discussion of business conditions, led by M. W. Stark of St. 

 Albans, W. Va., followed and much useful information was gath- 

 ered. Lumbermen told of their trials and tribulations and the good 

 side of the lumber business during the past year. At the close of 

 the discussion, the convention adjourned until 11 a. m. Wednes- 

 dav. 



which pledged them to give their all to tlic country to win the war. 

 Prominent features in the resolutions adopted by the convention 

 were the urging of the creation of a board of war control and the 

 appointment of a munitions director by Congress. Another impor- 

 tant step taken was the resolution favoring the retention of rate- 

 making power in Interstate Commerce Commission and publicity 

 ill business. After the reading of various reports of committees on 

 otiticers' reports a most interesting address on "Trades Associations 

 and the War" was delivered by Gilbert H. Montague of New York. 

 A striking portion of this talk was Mr. Montague's hope that 

 through the war this country would become educated to regulate 

 and not destroy, and how to open the door to American enterprise 

 here and abroad and under rules of public protection which can 

 not be known in advance. "It is a hard matter to tell what the 

 necessary action in reference to the railroads pt this time will be," 

 said Mr. Motague, "and I believe that our progress still will be 

 slow after the war, but I look for a better adjustment of legislation 

 to the facts of life." 



