]ia& v ^ 



usually cost about -iie sane on all operations in tho high- 

 ly tinfterod forests, so far as I Imow, In operations v&ere 

 thero is lively to "be any difference, of course this is 

 looted into ac accurately as possible dn '-ho estimates of 

 the costs of the above four mentioned steps in the operation. 

 As I said before, the consideration must be had as to -Wheth- 

 er or not the logging is to be done by steam (Chutes) ,t rucks, 

 hnrsos or railroad. In calculating the costs in these steps 

 of the operation, the costs of building roads, laying rail- 

 roads, rolling stoc'i, building chutes and equipment roust be 

 calculated according to the method oliosen by the operator* 

 The operator has a great deal of money tied up in 

 machinery which must be counted at a certain rate of inter- 

 est because it is in the form of an investment. This capit- 

 al invested in machinery naturally depreciates, vfliich de- 

 preciation must be ta?ren into accou t as a part of the 

 operating cost. Taxes and insurance eleo must be counted 

 because they aro eirpenditures which entor into expenditures 

 caused from the operation. There are certain incidental 

 expenses vfaich in a great many oases are hard to be rotten 

 at by anybody except the man ./ho naturally incurs them in 

 the operation. Consequently the man v/ho estimates the costs 

 of operating a Government timber sale usually has to omit 

 them or else, in order to cover them in a rough way, state 



