formation from year -co year wo must ta::e into considerations 

 any change in tariffs tliat is perfectly obvious. ;\ny re- 

 duction in freight will have to be ta":en into consideration 

 in fining values f&r nerb year. Take one marmot, for in- 

 stanoo, the Bay region; assume all lumber goes through 

 that marlict ; assume that the original figuros we obtained 

 represent c, fair profit to the operator - of course, we 

 don r t !m.o\7 that, because wo didn r t see that part of his 

 bo.o'is ; "but assume that ho is mailing a fiair profit , then all 

 producing points showing; a higher f.o.b. mill valuo than 

 these original figures v;ould "bo able to sell in this Bay 

 region choc/per 'ay tho difference in their quoted prices and 

 the bacin prices, and still receive the same profits as tho 

 original mills. On the other hand, the other mills couldn : t 

 compote in this rno,rl:ct and receive the sano profit as the 

 "basic mill. *& an example, San Joacuin Yalley values are 

 022 51, :)2C.S8, $16.93 and Ol6.15 for the pines, fir and 

 codar, as determined from the original correct values "by 

 tailing freight into consideration. Accordingly, they can 

 sell in the Bay marZiot 60^, 63^, 68r/ and 55ff cheaper than 

 the hasic mill, and still ma! : :e the same profit. Klamath Falls 

 on the other hand, having mill values of 520.71, ^18,25, 

 14,88 and 14.51, would have to accept - ! )l20, tfl.SS, ^137 

 and Ol.09 less por IS, than the hasic mills in order to compete 



with them in the Bay market on the same terms. This all 



274 



