LUMBERIlSrG IN PINE EEGION OF CALIFOENIA. 95 



One manager is required for a double-band mill producting about 20 

 million annually. The manager at a single-band mill operating one 

 shift frequently directly superintends both woods and mill. A pro- 

 portionate decrease is made in the office force in each instance. 



SUMMARY. 



To sum up: the cost of selling, general office work, and superm- 

 tendance at band mill or large circular mill operations is normally 

 from .55 to 70 cents per 1,000, and the total of overhead charges is 

 from $1.25 to $1.40 per 1,000. 



At small cuxular mills, superintendence, office work, and selling 



are covered by the salary of the operator. Such mills are commonly 



one-man concerns; and since the owner devotes all his time to the 



operation he should h&ve a salary as well as a profit on the investment. 



A mill of 20,000 daily output markets about 3,000,000 feet per annum. 



At a salary of $1,200 for the operator the cost of superintendence is 



40 cents per 1,000. 



DEPRECIATION. 



All improvements and equipment used in lumbering depreciate 

 in value, and sufficient money must be taken from the business during 

 its course to form a siakiiig fund to cover this depreciation. The 

 amount of depreciation is measm-ed by the difference between the 

 initial cost and the salvage or residual value at the end of the opera- 

 tion. The common method of figuring depreciation against a body 

 of timber is to determine the total depreciation mvolved in its 

 exploitation and by proratmg this total over the stand to obtain a 

 figure per 1,000 feet. The depreciation per 1,000 may then be 

 applied to the annual cut to determine Jiow large an annual sinking 

 fund is necessary. 



Raih'oads and sawmills which can be used for additional timber 

 have a residual value at the end of the operation much greater than 

 the salvage value. Railroads adapted to a continuous profitable 

 common carrier business may have a residual value practically as 

 large as the initial cost. Improvements and equipment which 

 can not be used any furtlier have only a salvage or wrecking value. 

 Tools, cables, and similar equipment are worn out and must be 

 replaced at frequent intervals, so that they rarely have even a 

 wrecking value. Horse and donkey chutes have no salvage value, 

 except when the material can be utilized as saw logs or made into 

 railroad ties. 



The wrecking value of logging railroads whicli can not ])c used in 

 place for other purposes is tlie sah; value of the rails for rela3ang. 

 The rails commonly have a life of from 15 to 20 years; the former 

 where they are lifted and relaid every season, and the latter for more 



