New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-11-16
PULP AND PAPER INQUIRY
Tariff Board Ascertainlng the
Actual Cost.
PROF. EMERY'S Statement
Chairman of Board Tells Of
Careful Methods Employed
to Obtain Facts.
From The Tribune Bureau.

Washington Nov 15.-The Tariff Board
has begun active work in the field to ascer-
tain the truth regarding the cost OF manu-
featuring pulp and paper in the United
States and Canada. This was one OF the
great questions in dispute when Congress
undertook q revision of the tariff. and II is
the purpose of the Tariff Board 10 uncover
every possible fact that Will show the exact
situation Ethelbert Stewart, formerly an
expert employed by the Bureau of Labor.
is in immediate charge of the field inquiry.
and under him are half q dozen or more
experienced men who will visit the prin-
cipal mills in this country and Canada.
The following statement regarding the
methods that will be employed in this in
curry was made to-day by H. c. Emery.
chairman of the board:
The cost schedules for the pulp and paper
industry were worked out with great care
in accordance with the general scheme Of
cost accounting adopted by the Tariff
Board. The purpose has been TO have q
clearly defined idea or exactly what was
should be included, and how each item
should be entered. In the case OF these
particular schedules II was found that al
though not identical with the cost sheets
of any particular mill. they proved to be
so closely in accord with the systems
adopted by leading concerns. which diff
fered somewhat among themselves. that
The mater of filing out the schedules from
the cost sheets of given mill has proved
a very simple matter. II has also proved
that the schedules were worked out in q
thoroughly practical manner for business
purposes.
The general scheme adopted has been to
divide cost into three main divisions
First. material actually used in the prod
uct. second. the manufacturing labor act
ually applied TO the product, these two
giving the prime cost. third. all other ex-
penses In the case OF the particular
into TWO. namely. works expense ana
fixed charges, fixed charges" including
depreciation. insurance and taxes IN
the case of rented buildings the Item rent
will take the place Of the three items now
included under fixed charges
The difficulty in the mater TO, Of works eS-
ciple of prorating overhead charges accord
ing TO unit OF product This prorating will
have TO vary from industry TO industry.
according 10 the particular conditions. In
some cases ii will be a function Of labor
cost: in others. material cost or com
bination of the two.
In the case OF pulp and news print paper
the question is made simple by the fact
$ that. in the main, single product is pro
duced, so that overhead charges can ne
prorated merely according 10 total product.
Having secured the actual conversion cost
at the works from the above hgures a sep
arate item Is then made for selling ex-
pense." giving the total actual cost
These schedules are not theoretical state
rentS Of what the board hopes 10 get. hut
they show what in this particular industry
the board is actually getting through the
cordial cooperation OF pulp and paper man
ufacturerS Already have actually OBJ
tanned a large mass of figures taken direct
~ from the cost sheets and books OF diff
ferent concerns. and we have every reason
to expect that other manufacturers in the
pulp and the paper trades will respond in
the same spirit.
So far these schedules are concerned
they represent merely the cost at the mill
OF converting a given quantity OF pulp
wood into a given product. This is merely
( 81 .t,C s-Tya {r-srf n
this schedule The whole question of rela-
tive supplies OF raw materials. variations
IN stumpage. values in different sections
and over 8 period of years and the whole
question of relative prices and the general
, conditions Of competition are factors Of
equal Importance in the inquiry.