44 WORKING PLAN FOR FOREST LANDS NEAR PINE BLUFF, ARK. 



Table No. 15. — Annual interest represented by future cuts on the capital invested in cut- 



over lands. 



STUM PAGE VALUE, $1.50 PER THOUSAND BOARD FEET. 



STUMPAGE VALUE. 82 PER TH< (USAND BOARD FEET. 



CONCLUSIONS. 



The study made by the Bureau of Forestrv establishes the fact that 

 the application of practical forestry to the tract of the Sawyer & Austin 

 Lumber Company would be a sound business measure. It shows 

 furthermore that in the cheapness of logging, the value of the prod- 

 uct, the quick growth and the ready reproduction of the timber trees, 

 and the practicability of inexpensive and effective measures against 

 fire, the opportunity is a markedly favorable one. 



The yield to be expected from cut-over lands shows a high return 

 from the capital invested in them. Cutting to the advised diameter 

 limit of 12 inches breasthigh. or about 14 inches on the stump, with 

 stumpage reckoned at $2 per 1,000 board feet, and the value of cut- 

 over land at $1 per acre, the average annual interest represented by 

 the future crop on cut-over lands is, for a period of forty years, nearly 

 9 per cent. In other words, after the Sawyer & Austin Lumber Com- 

 pany have lumbered their present tract at the rate of 14,500,000 feet 

 per year, the lands which have been cut over will be producing timber 

 which, at a conservative estimate, represents an income of 8.8 per 

 cent on the capital invested in them. 



It has been shown that, in order to assure a sustained annual yield 

 equal to the capacity of the mill, the addition of 170,000 acres to the 

 present tract is necessary. With this addition, or its equivalent in 

 stumpage, the Sawyer & Austin Lumber Company can cut continuously 

 40,000,000 board feet per year. If this addition is not made, it is 

 clearly unadvisable for the company to lumber its tract upon the 

 principle of a sustained annual yield, since this would fall short by 

 about 25,500,000 board feet of the annual capacity of its mill. 



