The daily star-mirror. (Moscow, Idaho) 1911-1939, 1919-04-01
SPRUCE PRODUCTION
COSTS MADE PUBLIC
AVERAGE COST OF AIRCRAFT
LUMBER is PLACED AT $31S
PER 1000 FEET

| PORTLAND.-A statement coverin
operations and costs of the spruce Pre-
duction division was made public to
day by General Brice P. Disque, jus
prior to his REIMBURSEMENT of the de
vision and resigning as president Q
the spruce production corporation
General Disque tells in detail of tn
development and organization of tn
division which was to increase tn
monthly production of material from
100000 to 100000 feet at once. TIL
principal reasons for forming the cor
poration. as given by General Disqu
were:
LIST. About IS per cent of the pro
duction of aircraft lumber was allOcat
ed to Great Britain, France and Ital,
ann it seemed only equitable that the.
should bear that part of the expense
necessary to build the mills and rail
roads required.
End. We were actually carrying OF
great industrial enterprise and re-
quired the freedom of action usually
found in a business concern and al
most impossible under War Depart
ment regulations.
We provided in this way for our al
lies to assist in the capital expendi-
lures before they were made rather
than doing it after development,
through paying 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 ig-
norant of our problems, methods, or
other facts.
1t is appropriate. therefore, to re-
fer to the quantity of production and
cost of same in this summary. The
accountants of this their cost account
ng, every legitimate item and that
meant rent stationery, telephone, Of
icers and soldiers pay and subsist-
,nce, as well as transportation and
purchase of all stumpage, materials,
equipment and rights of way, and
lire of labor
The entire expenditures of the Sig
lal Corps, U. S. Army, Spruce Produc
ion Division and the u S. Spruce Pro-
Iuction Corporation, from the begin
ling of operations to, and including,
april LIST, will not exceed sac, 100000. |
The total footage of aircraft lumber
shipped and paid for by the
ignal crops. Spruce Production Di
ision and u. S. Spruce Production
was 100000 feet.
Therefore if we assume that the cor
vJho of a
AZ, 100000 feet of aircraft lumber
ost 1913 per thousand and such a
rice contemp1ates complete amort-
cation of every capital expenditure
nd expense item involved in our OPP
ratiOns.
However. the corporation has on
and today tangible and salable as
cts which, estimated at approximate
Y 4 0per cent of their cost, are worth
100000. Deducting this $4,000, 900
rom the total expenditure of $45 ,00O,-
90 we have an expenditure of $37,-
100000 for the 143,OOO,000 feet at
esulting cost per thousand of 1852.
To date the corporation has sold
pproxi mately 100000 of these as
cts and has averaged near 80 per cent
their cost price. Therefore, it
Quiz appear CudJ lily 0SlluldC0 OIL 9o,-
30 900 worth of assets which is ap-
fortunately 40 per cent of the cost
rice, would be very conservative.
In all of our operations it has been
rovided that the allied governments
lall participate in the total loss
hich will finally result due to de-
recitation in value of assets, in pro-
ortion to the amount of aircraft lum-
er supplied to them. Based on MY
;timate of, and salvage of 40 per
mt of the cost value of our assets,
ere will be a dead loss Of IL ,000, 900,
lie to the operations of the signal
rps, spruce production division and
e United States Spruce Production
and this loss will be dis
ibuted:
"a per cent of s4,1OO,OOo to the Uni
d States.
81 per cent or s3,SOO,OoO to Great
.itain.
"a per cent or $2,9OO,0OO to France.
10 per cent or $1,200,000 to Italy.
Of course, this loss must be con-
Tered in connection with the fact
at America and her allies actually
i'd an average price of $3.50 per thou !
nd feet for all the lumber that they
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