334 JOURNAL OF FORESTRY 



The 1920 cost figures are held up pending the determination of cer- 

 tain facts with regard to the crediting of dues paid in advance and their 

 effect upon commissions for 1920. Since this table was compiled, it 

 has been definitely ascertained that one of two things took place in 

 1920; either the item of $4,874.10 was entered as operating income 

 for 1920, or else the Secretary collected in that year over 99 per cent of 

 the total possible income from all securities. That the former assump- 

 tion is probably correct is indicated by the fact that for $10.00 mem- 

 bers the sum collected in 1920 considerably exceeds the total possible 

 sum representing $10.00 dues from this class of members. 



The figures for all years are taken direct from the audit of R. G. 

 Rankin & Company and are believed to correctly represent the pro 

 rata expenses of the Association for $3 members. Those of 1915, 

 1916, and 1917 were prepared by the Secretary, and those for 1918, 

 1919 and 1920 by the writer without the Secretary's cooperation. 



This cost accounting was really an effort to point out to the Direc- 

 tors the effect of a continuance of the new contract and the need for 

 its modification. In his report Mr. Chapman stated, "As pointed out 

 there must be an operating margin per member, expendable for replace- 

 ments, plus funds for expansion. The more of these latter funds are 

 derived from net operating income, the more secure the progress. If 

 no such margin ever becomes available, then by constant drain on its 

 invested funds the Association would become bankrupt by the increase 

 in its operating costs." 



Under the operation of this contract and in spite of the increase 

 in current income shown, the invested funds of the Association became 

 practically exhausted in the year 1920, and the condition of financial 

 parasitism, which had been foreseen and warned against, was precipi- 

 tated and fastened upon the Association, and this condition was then 

 made the. basis of the arguments for abandoning the old democratic 

 by-laws in favor of the present autocratic control. 



The gross income from advertising was increased to $12,040.81 in 

 1920, but the net to the Association was but $5,247.44 out of which 

 must come the cost of printing the advertisements. The remaining 

 $6,793.37 went to agents or expense, of which the Secretary received 

 $1,799.08. At least one agent was employed by Mr. Ridsdale to solicit 

 advertising on a strictly commission basis of 20 per cent, with no sal- 

 ary, the Secretary receiving an additional 20 per cent of the net sum 

 thus raised, equivalent to IG per cent of the gross before deducting 

 agent's commissions. 



