Coos Bay Lumber Co. Issues Good Report

President Homer W. Bunker of the Coos Bay Lumber Co. in a report made to the stockholders on July 22, gave results of the company's operations in the last 10 months of 1928 and the first half of 1929, showing good progress since the reorganization last year. The report states in part:

"Operating earnings for the last ten months of 1928 following reorganization were $413,003 after depreciation and depletion. Operating earnings for the first half of 1929 were $175,572 after all charges, including $129,681 for depreciation.

"Effects of our program of rehabilitation and cost reduction following the purchase of the company November 1, 1928, were not felt until the second quarter ol l9D; it is therefore anticipated that earnings for the last half of.1929 will be largely in excess of those for the first half.

"Company's properties are being well maintained and in addition much new and modern equipment has been and is still being purchased and installed-costs may be further reduced and operating profits increased accordingly-additions to manufacturing facilities for the first six months of. 1929 amounted to $237,375 all paid in full.

"From the proceeds of sales of assets, non-essential to projected non-operating timber and physical logging, $1,593,925 of preferred stock has been retired, leaving $4,781,- 775 outstanding-it is the expectation of the management that this can be reduced to $4,000,000 even within another year from proceeds of liquidation of other similar assets and present contracts receivable arising from such sales.

"In this connection there is still several hundred million feet of non-operating timber available forsale. One tract of which we think can be sold for $500,000-an option has been given to the lessee of our east side mill to purchase it for $100,000. Revised operating methods at Bay Point, Cal., have released a large tract formerly used for yard purposes and we now have 250 acres of industrial land for sale there upon whichwe have placed tentative prices averaging $1000 an acre. The company's present facilities are bEing operated at capacity

"Current position has been brought to over a 2l to I ratio, which is gradually improving."

fmprovements at Bay Point Plant

Recent improvements which have increased the efficiency of the Bay Point plant include the installation of four new blower type dry kilns, making a battery of. t4 in all, with a total kiln capacity of 3,000,000 feet a month. Cars are automatically loaded and unloaded.

A Rees air-cooled burner, to consume the surplus fuel not needed to supply the boilers which provide steam for the.dry kilns, has been erected. Fuel feeding system is automatic.

The plant has been completely electrified, each machine being driven by individual motors. In the planing mill two new S. A. Woods planers, operating at a speed of 400 feet a minute, have been installed.

In the yard three Caterpillar "Ten" Tractors now take the place of 11 horses.

One of the most important improvements is the 26 f.oot wide canal running the full length of the yard on the east side. This canal is six feet deep, and it is intended to construct a similar canal on the west side of the property. An eight-inch water main has just been put in, running through the center of the yard. This main and the canal were of great assistance in saving the plant from complete destruction in the recent fire.

At the dock four gantry cranes are used for unloading the boats aoming in from Marshfield. These can unload a boat carrying 1,300,000 feet in eight hours. This speed is made possible by the unit package system, which was first used by the Coos Bay Lumber Co. in 1908, having been inaugurated by the late C. A. Smith, former president and founder of the company.

Shipments from the Bay Point plant averaged 9,000,000 feet a month in 1928. Stock in the yard runs from 10 to 15 million feet.

George Weir, general sales manager of the company, has his headquarters at San Francisco, and A.V. Lucas is superintendent at Bay Point.