1237 Sheet – Supreme Court Georgia Appeals of Leo Frank, 1913, 1914

Reading Time: 4 minutes [494 words]


Visible Translated Text Is As Follows:

196

line there, and certain printing on it, is due to me, because I got this sheet
up myself. On one side you notice "Expense," and two main headings "Ex-
pense," "Materials." Together they comprise the expense for the week.
On the other side, like the debit and credit side 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 re-
packed 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 per
cent. down at the bottom. That 12 per cent. allows for freight allowances,
cash 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 materials, the cost of materials, that went into
the making of those pencils, based on the amounts and kinds of pencils, 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 indi-
rect 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 arbi-
trarily decide on it, and keep it until such time as we think we 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. The sales department expense usually goes on whether
the salesmen sells little or big bills; his salary is fixed and his expense goes on.
Rent, heat, light, power, sales department might go on, that, is figured out,
as you could find by looking back, continuously from week to week, and there
is no work other than jotting it down to figure in this total.

The repair sundries is also arbitrary at $150.00. The machine shop, how-
ever, is available. It appears alongside of "Investment." "Investment" is
crossed out, and "Machine Shop" written in. There is a reason for that.
The time was at the inception of our business when every machine built by
us was so much additional added to the value of our plant. In other words,
it was like investing more money in it. In time, however, the time came, when
we quit making machines, and then we simply kept them in repair, and we
charged that to expense, crossing out "Investment" and putting down "Ma-
chine Shop" as an expense item.

Related Posts
Top