FLOATING DEBTS 18 



taxes are exorbitant and inexorable, and pay 

 rolls can never be postponed. 



In time the floating debts and quick assets 

 get out of all proportion and must be adjusted. 

 An investigation is instituted to study each 

 part and phase of the business in order to learn 

 how to relieve the situation. This study com- 

 mences with the timber holdings in the hope 

 that some of them may be so situated as to per- 

 mit being sold and turned into cash without 

 hurting the logging layout or hampering the 

 future operations. Instead of being in a posi- 

 tion to sell stumpage, it is usually found that 

 the mill is sawing up timber a little faster than 

 was originally expected and not only is selling 

 stumpage out of the question, but to be entirely 

 easy over the big investment in the mill, log- 

 ging road and equipment, more timber should 

 be purchased. The investigation then moves 

 on to the railroad, railway equipment and log- 

 ging equipment in order to see if some of the 

 locomotives can be spared, lighter rails laid, 

 fewer cars used or if a sa^dng can be effected 

 in donkey engines, cable or other gear. It is 

 found here that the timber is being logged 

 faster than was. at first planned, that locomo- 

 tives and cars are working up to capacity, that 

 donkey engines are crowded and that a heavier 

 rail could be used much more economically than 

 the light one at first put down and now doing 

 service. The maintenance of road has not been 

 kept up to standard and the equipment has been 



