14 TIMBER BONDS 



SO busy that maintenance of equipment has not 

 been attempted. It is only a short time until 

 the rolling stock must commence going to the 

 shop for extensive repairs. No curtailment can 

 be effected here. Instead an expenditure must 

 be made for reserve rolling stock, more rails, 

 donkey engines and tackle. The roadbed ought 

 to have considerable money spent on it and 

 altogether quite an outlay should be made in 

 this end of the business. The examination then 

 moves to the mill to see if any economies or sav- 

 ings can be effected there. The mill is of the 

 most modern construction, under thoroughly 

 efficient management and operated with full 

 care and frugality. It cannot be improved on. 

 The books are then audited and a general re- 

 view of the business is made to learn the best 

 plan of action. The final result of all these 

 searching investigations is to convince the oper- 

 ator that a business where the capital is chiefly 

 in the form of what might be called ''funded 

 assets" cannot be conducted on the basis of 

 a business having its capital in the form of 

 floating assets. 



