0640 Sheet – Supreme Court Georgia Appeals of Leo Frank, 1913, 1914

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Reading Time: 2 minutes [282 words]

Visible Translated Text Is As Follows:

and credit sides of a ledger is the Value", "gross Value"
of the goods which have been packed up during a given week.
Down here below you will notice "Less repacked." You remember
the repacked, that I told you about, the pencils taken out of
stock and repacked to make them move better. That value is
deducted, so that it won't allow error to enter into this
figure. Then we take off 12% down at the bottom. That
12% allows for freight allowance, cash discounts, inside
trade discounts, and possibly other allowances, and gives us
the net value or the net amount of money for those pencils,
which the treasury of the Pencil Company receives in the last
analysis.

On the other side is the material, the cost of materials,
that went into the making of those pencils, based on the
amounts and kinds of pencil, which of course, as in this
instance, comes from the data sheet.

The first item under "expense" items is "Labor," and the
labor is divided, as you all know, into the two classes, direct
and indirect. The direct labor is that which goes directly
into the making of the pencils themselves, and the indirect
constitutes the supervising, shipping, office, clerical help,
and so forth. These figures are brought directly from the pay-
roll. The indirect labor, however--as in this case $155.00--
is an empirical figure, a figure which we have found out by
experiment to be the correct figure, and we arbitrarily decide
on it, and keep it until such time as we think ought to change
it; and then change. The burden that a business has to carry
is the fixed charges, the expense that it carries, irrespective
of whether it will produce two gross or 200,000 gross, like
rent, insurance, light, heat, power, and the sales department.