MANAGEMENT OF CAPITAL IN THE FOREST INDUSTRY OF BRITISH COLUMBIA

In any discussions of the employment of capital in the Forest Industry the professional forester should feel right at home.His professional and practical training demands judicious and scientific planning aimed at producing the maximum yield.This is the essence of capital management.Business men, and accountants in particular, could learn much from the thorough and scientific studies that support forestry decisions.The forester's work, like all other activities of a corporation, is ultimately translated into the common language of dollars and cents, and forestry expenditures must in the long run be related to corporate earnings.There is no question that business today has social responsibilities, but they are not the corporation's reason for being.Corporations exist to provide products and services at a profit.If there is no profit, the corporation cannot meet its social obligations any better than it can meet its debts.All elements of the public-employees included-should understand that the best contribution a corporation can make to the community is to provide good products and services at fair prices and at a profit.If a business or industry is exceptionally profitable it will attract new capital and new competitors in the field and so provide more employment and more economic stability for the community.Profits are essential to a dynamic economy.Nothing is more tragic in our economic life than for a business to fail, thereby sweeping away not only the savings of its investors but the jobs and security of employees, as well.When a corporation reports a profit Labour and Government eye it with suspicion-both feeling that they have been cheated of their just portion.If this sentiment continues, the element of profit could disappear.What then?Who will provide the capital for renewal of our assets and for expansion?Well-one segment of our community feels this is no problem: the state will provide the capital; the employees and the state will thereby derive 100% of the benefits.Who will allocate state funds for capital purposes?What criteria will be used?Let us suppose that there was a central committee, planning and controlling the economy of the United States back in the 1890's.Along comes a skinny, young man who says he can make a buggy run all by itself-without a horse.Can't you see the faces of the men on the committee?Hands are hiding smiles; there are side glances, etc. Can't you hear the chairman say: "But Mr. Ford, we've got plenty of horses.Who the devil wants a buggy without a horse?"