who operates off tho mainline railroads and soils in a 

 strictly local market - whoeo timber cLoos not ror.ch the main 

 lino distributing points. I boliovo tho Hart salo on tho 

 Socucia would bo typical of a email man; and thoro aro a 

 good many snail mon on tho Modoo whoro tho ranchors como to 

 ;ho xaill with, wagons e,nd pack tho lumber off. 7o will fig- 

 uro oosto on an operation of standard efficiency for a 

 small man; wo will figure tho lumber valhios as tho prices 

 that kind of operation ic cblo to pot in tho locr.l nsrkot, 

 instead of tailing main lino narlrot prices. This will to 

 no violation 01 tho principlo of operating profit, at all. 



On tho othor hand, on tho Eora thoro is tho likoley 

 sale, whoro a small man with a tin cup outfit goes into the 

 mountains and hauls lumber down into the Sn Joaquin Valley 

 whero ho must soil it in competition with throo largo lumber 

 companies . JLi viow of his costs and tho congest od condition 

 condition of the market naturally he "wont broke" - he tried 

 to moot that competition, and couldn't como anywhere noar it. 

 Tho thins to do in a ce*3e like likoloy's is to look 

 up the man's market for him. Show him tho costs, the mark- 

 et ho must meet, figure his profits with him. Thon if ho 

 still wants to go ahead and do business it is up to him, 

 but not till then. 



3:40 - A Standard Treatment for National Porest Polos 

 and Posts - Cost and Efficiency* 



Smith. 



T K.K 



