Hardwood Price Reporting Classic Reprint

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ISBN 13 : 9781332187843
Total Pages : 126 pages
Book Rating : 4.1/5 (878 download)

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Download or read book Report of the Federal Trade Commission on War-Time Costs and Profits of Southern Pine Lumber Companies written by and published by . This book was released on 2015-08-04 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Report of the Federal Trade Commission on War-Time Costs and Profits of Southern Pine Lumber Companies: May 1, 1922 The Federal Trade Commission submits herewith a report on costs, prices, and profits of the southern pine lumber industry for the years 1917 and 1918. Most of the information contained in this report was secured pursuant to the direction of the President, for the use of the War Industries Board in its regulation of lumber prices during those years. The principal facts developed from the Commissions study of the southern pine lumber industry, chiefly based upon data furnished by representative companies operating in the States of Virginia, North and South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, and Arkansas, ma- be stated as follows: 1. The accounting methods of southern pine manufacturers, while sometimes well devised, frequently do not enable them to determine accurately their costs of producing lumber, and in many instances result in obviously inflated costs. Reports submitted to the Commission show that many companies included the expenses of farm, turpentine, box, and other enterprises with the cost of their lumber operations, while other manufacturers inflated their costs by the inclusion of interest and a profit on stumpage in their cost of producing lumber. In some cases stumpage was charged into costs at such a high figure that the entire timber account was written off long before the end of the cut, while the remaining timber was charged into cost during 1917 and 1918 at the then estimated current market value. 2. The average rate of earnings on the entire business, as reported by 143 identical companies, was 9 per cent in 1917 and almost 81/2 per cent in 1918. There was a wide variation in the reported rates of earnings for individual companies. In 1917 the reported rates of earnings ranged from a loss of almost 3 per cent to a profit of a little over 52 per cent, while in 1918 the range was from a loss of 13 per cent to a gain of nearly 52 per cent. 3. The revision of the returns of these 143 companies by the elimination of stumpage appreciation from investments and costs increased their average rate of earnings on total investment from about 9 per cent to about 12 per cent in 1917 and from almost 81/2 per cent to about 11 percent in 1918. 4. The total investment in the lumber business compared with the annual output varied greatly for different companies on account of differences in the supply of standing timber owned. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works