BUSINESS MANAGEMENT OF WOODLOTS 



199 



and rather as an illustration of figuring 

 costs than to be fully representative. 



The costs given are those up to 

 loading on cars at the railroad or to 

 delivery to local markets. 



Average prices for the other items of 

 cost are given. These can be modified 

 in any given case. 



COST OF PRODUCING LUMBER. 



The cost of producing lumber may 

 be estimated per thousand board feet 

 as follows : 



Cutting $1.50 



Skidding 1.75 



Sawing 3 . 50 



Piling 1.00 



Hauling 5.00 



Or a total of $12.75 



COST OF PRODUCING TIES. 



Ties are often hewn at a cost of about 

 10 cents per tie. Hewing is wasteful, 

 especially in large-sized trees. Ties 

 may be sawed on two or four surfaces. 



Generally 33 first-class ties or 38 

 second-class ties will average about 

 1,000 board feet of lumber and the 

 average cost will be 35 cents for first- 

 class ties, and 29 3-10 cents for second 

 class ties. Ties are 8 or 8 J^ feet long. 

 First-class ties are 7 inches thick, and 

 not less than 7 inches or over 12 inches 

 wide at any place on the face, and must 

 be hewed or sawed on two faces. They 

 are sometimes allowed to be sawed on 

 four sides, and then to be 1" x 9". 



COST OF PRODUCING POLES. 



Poles are generally peeled and cut to 

 come in one of two classes given in the 

 specifications under products — the most 

 common sizes are seven inches inside 

 the bark at the top. 



Poles cut in winter cost a little more 

 to cut than in summer, but are pre- 

 ferred, because they are less likely to 

 rot. 



Frequently a cent a foot is charged 

 per pole — that is, a 25-foot pole would 

 cost 25 cents. Poles from 35 to 50 

 feet long are cut and peeled for 35 cents, 

 while hauling cost may be estimated 

 per load as 83 cents for 25 to 30 foot 

 poles, $1.25 for 35 foot poles; $2.50 for 



40 to 50 foot poles; $5.00 for 60 foot 

 poles, only one of the latter being 

 hauled as a load. 



COST OF PRODUCING CORDWOOD. 



The average cost of cutting and 

 stacking cordwood for burning is about 

 one dollar per cord. Where oak and 

 hickory predominate the cost will be 

 higher. 



An ordinary load is about 1 to 13^ 

 cords. 



This would make cordwood cost $6 

 per cord to cut and haul. It would be 

 unprofitable where the haul was six 

 miles or over, for only one cord could 

 be drawn per day, at a cost of $5 for 

 team. 



Where the only product available 

 is cordwood, and the distance is too 

 great to haul profitably, the wood may 

 sometimes be burned into charcoal on 

 the tract, and this profitably marketed. 



Generally, at least twenty cords of 

 wood should go into an ordinary kiln. 

 Where several kilns are biurned at once, 

 the cost of burning is reduced consider- 

 ably, as one man can watch them all 

 as easily as he can one. It can be pro- 

 duced at a cost of 8 1-3 cents a bushel. 



VALUE OF STANDING TIMBER. 



Knowing market prices and costs of 

 getting his material to the market, the 

 owner is in a position to place a value 

 on his standing timber. This value of 

 standing timber is called its "Stumpage 

 price." Where he does his own lum- 

 bering, the stumpage value might be 

 considered the difference between the 

 cost of marketing the product and the 

 market price. This, however, is hardly 

 a fair value. Each step should be con- 

 sidered separately, and a fair allowance 

 should be made for each. 



The lumbering being a manufactur- 

 ing operation, it is only fair to allow 

 about 20 to 25 per cent net profit on 

 the work; and figure the real stumpage 

 value as the market price, less the cost 

 of lumbering and the profit of lumber- 

 ing (20 per cent to 25 per cent of the 

 cost). That is, stumpage value is the 

 difference between market value and 

 the Slim of the cost of lumbering plus 

 profit of lumbering. Then, if the 



