SMALL SAWMILLS, THEIR EQUIPMENT, ETC. 3 
CAPITAL REQUIRED. 
Insufficient working capital is one of the prime causes for the 
failure of a small sawmill to make a reasonable profit. Even in a 
small operation considerable working capital is necessary for cur- 
rent expenses. Mone}^ must be available to pay for the equipment 
of the mill, the wages of the crew, the building of sheds, tracks, yard, 
bunk and cook houses, stables, and blacksmith shops, and for cur- 
rent expenses and repairs. Money is needed to carry a stock of 
lumber on the mill yard. These items of expense should be worked 
out in advance, and when money is not available at reasonable rates 
of interest, the prospective operator will be prudent if he resists the 
desire to become a sawmill owner. While it is true that a few have 
made a success from a very slender financial start, the chances of 
doing this are so remote that to embark in the sawmill business 
without the requisite capital is more of a gamble than a legitimate 
business proposition. A junked mill with an accompaniment of a 
few old axes and broken-down teams and harness, a rusty cross-cut 
saw or two, and, worst of all, several big bills and perhaps a mort- 
gage, make a poor showing after several years of hard work. 
CREDITS. 
The unwarranted extension of credit is an almost universal prac- 
tice among small operators, and usually results in disaster. The 
successful mill man sells for cash or negotiable paper. It is a com- 
mon practice, however, to sell a load or two of lumber on time right 
along, even though the man who sells it owes his employees for labor 
or the merchant for supplies. If such a man is not mighty alert, 
he will soon find himself badly in arrears with his payments. 
Should that come about, the end of his career as a sawmill operator 
is in sight. 
COST KEEPING. 
The most important step in the operation of a sawmill is the open- 
ing of a simple set of books in which is recorded faithfully the cost 
of everything relating to the business. In the absence of such a rec- 
ord an operator is sailing on' an unknown sea " without chart or com- 
pass." Yet, except in a \ T erj few cases, this necessary side of the 
business is entirely neglected. In a long experience with portable 
mill owners it was not until quite recently that the writer met one 
who gave it proper attention. 
No elaborate system of cost keeping is needed by the small opera- 
tor. All that is required is some simple form of accounting by which 
he can tell the value of his investments, the cost per thousand feet for 
logging and milling, the stumpage cost per thousand, the cost of re- 
pairs and new investments, the depreciation on logging and milling 
