The Cordova daily times., 1919-04-11
OREGON SPRUCE PRODUCTION
 FOR THE WAR

fOh lLAND, OTe., ApT1l lI.-A statement covering operations and costs of the spruce production divi- sion was made public today by Gen. eral Brice P. Disque, just prior to his relinquishment of the division and re- signing as president of the Spruce Production corporation. Gen. Disque tells in detail of the development and organization of the division which was to increase the monthly production of material from 3,OO0,OO0 to 1O,OO0,OOo feet at once. The principal reasons for forming the corporation, as given by General Disque were:
 First: About 65 per cent of the pro- duction of aircraft lumber was allotted to Great Britain, France and Italy and 1t seemed only equitable that they should bear that part of the expense necessary to build the mills and rail roads required.
 Second: We were actually carryI ing on a great industrial enterprise and required the freedom of action usually found in business concern and s,most impossible under war de- partment regulations.
 We provided in this way for our allies to assist in the capital expendi- | lures before they were made rather than doing it after development, through paving for lumber, the sales price of which included amortization of capital expenditures on a basis of complete amortization in ten months after completion.
 | Because of the importance of the | lumber industry in the Pacific North west there has been a great volume of discussion regarding the operations and costs of this organization. Most of it has come from people totally ignorant of our problems, methods or other facts.
 It is appropriate, therefore, to refer to the quantity of production and cost of same in this summary. The ac- countants of this organization have had instructions from the beginning to include in their cost accounting every legitimate item and that meant rent, stationary, telephone, officers and soldiers pay and subsistence, as well as transportation and purchase of stumpage, materials, equipment and rights of way, and hire of labor.
 The entire expenditures of the sig nal corps, U. s. army, spruce produc- tion division, and the U. s. spruce pro- duction corporation from the begin ming of operations to and including April 1st, will not exceed $45,500 0000. The total footage of aircraft lumber produced, shipped and paid for by the signal corps, spruce production divi- sion and U. s. Spruce Production cor poration was 143,0O0,O00 feet.
 | Therefore if we assume that the cor poration has no assets whatever, the 143 100000 feet of aircraft lumber cost $318 per M, and such price contem- plates a complete amortozation of every capital expenditure and expense item involved in our operations. However, the corporation has on hand today tangible and salable assets which, estimated at approximately 40 per cent of their cost, are worth $8,- 0O0,000. Deducting this $8,00O,O00 from the total expenditure of $45,5O0,- 900, we have an expenditure of $37,- 5OO,000 for the 143,00O,OOO feet, at a resulting cost per thousaind of $262. To date the corporation has sold ap- proximately $2,O0O,00O of these assets and have averaged near 80 per cent of their cost price. Therefore, it would appear that my estimate of $8,0OO,000 worth of assets which is approxi- mately 40 per cent of the cost price,