216 FOREST PRODUCTS 



Cost of Operation. 



The cost of operation depends on a large number of factors, the chief 

 of which are the charges for wood, fuel and labor. Transportation 

 charges for material such as fuel, supplies, etc., are also an important 

 consideration. 



It is very difficult to say what the average costs of operation should 

 be. They are usually figured or based on the charges per cord. At the 

 various plants, the method of cost computation varies considerably, so 

 that it is very difficult to compare one with another. The degree of 

 efficiency also varies considerably, so it is very difficult in this respect to 

 compare them. At an oven retort plant that has been run for several 

 years, the costs per cord in 1916 were figured as follows: 



Wood $4 . oo 



Labor i . 50 



Fuel 1.77 



Lime 19 



Supplies, oils, etc .32 



General expenses 51 



Depreciation 58 



Insurance 08 



Taxes 22 



Total $9.17 



The above computation was based on a month's run and a very care- 

 ful record was kept of all costs. There were 16 men employed at this 

 factory, not including the men engaged in cutting and hauling the wood, 

 nor the office force. The standard wage scale was $1.60 per day and the 

 factory was located in the region in which a plentiful supply of wood could 

 be obtained. 



At another oven plant the following costs were observed. These are 

 also given per cord of wood: 



Wood $4 . oo 



Fuel i . 50 



Labor 2 . oo 



Depreciation, etc i . oo 



Marketing 1.47 



Total. i $9 . 97 



