/ 



By adopting this 337-8-': OIL we are sure that the "basis 

 of readjustment is feir to the operation in question. In 

 cases where a doubt exists that the cost of production is too 

 hih, due "JO inefficient inanepeiBent or equipment, an arbi- 

 trary increase of say 10 per eont can oe added to the celling 

 value, or '.: o sane deduction may ^ ^ dG ' co tl18 COG ' ;; of 

 operation, Then, Q-bjoctions to cuch an arMtr R iT increase 

 oy -the Oom-jcmy nust TJO supported with ar-unents ; moving -chat 

 j:-oir cost of production is no'c sroc/Jer than that of their 

 competitors in the same markets. This nethod places the 

 burden of -.roof u^on tne Oompany vhoee stunpa^e is to >e ad- 

 Jurtta and relieves us from a difficult and perhaps inr-os- 

 si^le situation. K ^ay oe argued that the companies will 

 not allow a Porest Service auditor to loo:: over all of their 

 vouchers. However , I see no difference between doin^ this 

 and audi-,inc their re C ular hoc: :G at periodic intervals, as 

 called fo-_- in present contracts* 



Hr .--.lien. 



sss 



Ue-ihocla. Having all no by o^wt topographer 

 T,y U-3.G.S. ne^ocls (See Mr.Stonor'e ^er). Ooortr, all on 

 nor^h cide of KLe^th Rivar end well aue^ee. to method u s od. 



^ni -i-i n^oh Tar-'O creel: andstationc 

 traverse survey up brail in 



f!i I / 



