332 JOURNAL OF FORESTRY 



ships, to set these funds aside as capital assets and use only the inter- 

 est ; hence it was possible for the Secretary to immediately expend 

 these funds in campaigns to increase the membership and gross in- 

 come, which he did, and in this way, from the money thus brought in, 

 his commissions were obtained on what practicaHy was equivalent to 

 a part of these bequests. 



The result of this campaign to increase the gross income during 

 1920 is as follows, taken from the report submitted by the Secretary 

 to the Directors on January 13, 1921. The commission of S3,451.80 

 constitutes only that portion of the Secretary's total commissions 

 which he received from the income from these new members. 



Expended to secure new members $:23,834.15 



Total received from new members $20,859.00 



Less $3,600 for permanent life membership 



fund 3,600.00 



Operating income received from new mem- 

 bers $17,259.00 



Less 20 per cent commissions to Secretary.. 3 4.51.80 



Net operating income from new members $13,807.20 



Net loss for year on new membership campaign $10,026.95 



Thus the net income from new members, unless the permanent life 

 membership fund is expended, equalled but 57 per cent of the money 

 expended in soliciting new members. This loss of $10,026.95 had to 

 be met, either from the surplus of the Association or by donation, 

 leaving nothing from which to supply the magazine for one year to 

 these new members as an additional expense. That portion of Mr. 

 Pack's donation not expended for publicity went to meet this latter 

 cost item, leaving the deficit in the campaign for new members as a 

 charge to be met by depleting the capital of the Association. 



This apparent loss might later be turned into a profit provided the 

 new members were retained over a period of years, and provided the 

 cost of running the Association were kept below the income received 

 from members. The history of all magazines is one of constant efifort 

 to replace lapsing subscriptions. The American Forestry membership, 

 by contrast, are appealed to by the Secretary to retain their con- 

 nection with the Association on the basis of the service thus rendered 

 to the cause of forestry in America. This has been influential to a 

 great extent in inducing members to continue their connection with the 

 Association. The future as well as the past financial success of the 

 Association rests primarily upon its members, and upon their loyalty 



