186 SELLINGLUMBER 



Cost of Production from 

 Pond to Sorting Chain 



; By C. J. Mansfield 



General Manager, Arkansas Lumber Co. 

 Warren, Ark. 



In talking to you about the cost of producing lumber, hope 



I can analyze that part of it allotted to me, which covers from Log 



Pond to Sorting Chain in a manner that will make it clear and 



give you an insight into what it actually costs to produce the 



commodity you are offering for sale. Far be it from me to 



criticize the ability of any salesman, because you are all good. I 



Cost of know, for I tried to be one once, but the fact remains that the 



Closely weakest department of our business is that of the Sales Department, 



Watched. and this is not all chargeable against ability, but more against 



methods. The principal heads of our business think nothing of 



giving consent to a reduction in prices of 25 cents to $1 per thousand 



feet, and oftentimes the sales managers are told to get the business 



regardless of what it costs in cut prices, but if cost of production 



increases only a few cents right then the big thing takes place. 



We must not overlook the fact that a limit has been placed 

 on the ground I am to cover, so guess had better get back where 

 I belong, or I may be tramping on the other fellow's toes. Anyone 

 in charge of a lumber producing plant figures cost continually and 

 then never satisfies himself, or his stockholders. "It can't be 

 done." In talking of cost from Log Pond to Sorting Chain, we had 

 best begin with the pond. We find the logs have been placed in 

 the pond and it is up to us to get them into the mill, on the log 

 deck ready for the carriage. Some mills keep cost of pond opera- 

 tion separate from sawmill ; others carry the two together. At some 

 mills the logs are handled by contract ; a stipulated price being paid, 

 which varies from 6 cents to 10 cents per thousand feet. Other 

 mills have their ponds operated by the day, paying each man a 

 certain daily wage. To arrive at cost per thousand* feet the saw- 

 mill deck scale is used. By this we mean the total cost of operat- 

 ing the pond for a given period say one month is divided by 

 the number of feet cut by the sawmill for the same period, and in 

 that way you arrive at the cost per thousand feet for that month. 



