COSTS OF PRODUCING LUMBER 155 



lumber on our markets. It is widely produced in the eleven southern 

 states from Virginia to Texas, in Oklahoma, and Arkansas. Oak, cut 

 from a number of species of both white and red oak, is produced 

 chiefly in Tennessee, Louisiana, Mississippi, and Arkansas; red gum 

 comes chiefly from South Carolina, Louisiana, and Mississippi; and 

 maple from Michigan, Wisconsin, and New York, mentioned in order 

 of importance. 



6. COSTS OF PRODUCING LUMBER 



The costs of producing lumber have advanced in this country over 

 a period of years on account of increasing labor costs and stumpage 

 values. Manufacturing methods have become much more refined and 

 efficient. The business of manufacturing lumber has contributed em- 

 ployment and wages to many hundred thousands of people throughout 

 the country, especially in the South and Far West, which have become 

 the great centers of production. In 1929, the southern and western 

 states produced over 85% of the total lumber supply of the nation, 

 and this came largely from the two states of Oregon and Washington, 

 and the four southern states of Mississippi, Louisiana, Alabama, and 

 Texas. 



The following table shows typical costs for producing lumber. It 

 will be noted that the charges incurred in logging and manufacturing 

 are less than half of the total cost of producing lumber. 



ITEMS COST PER M.B.F. 



Logging 5.42 



Log manufacture 6.19 



Total logging and manufacturing costs 11.61 



General and administrative expenses 9.96 



Depreciation 1.81 



Shipping and sales 2.13 



Other undistributed costs .08 



8.98 



Total cost without stumpage 20.59 



Stumpage and cost of purchased logs 5.42 



Total cost of lumber 26.01 



This is a typical example based upon average figures of many 

 mills in the Southern Pine Association. 



