58 



For the sake of definiteness, it is assumed that at the end of 20 

 years the stand will be sold on the stump for pulp wood. Indiana waste 

 land suitable for such purposes is classed as worth perhaps .$12 per acre, 

 although the author is informed that many tracts in Greene, Monroe, 

 Brown, Lawrence, Owen and southern Putnam and Park counties can 

 be bought for less than $12 per acre. For purposes of taxation, the 

 forestry law of 1899 appraises such land at .$1 per acre, making the taxes 

 practically nil. It will require 080 seedlings to plant the acre at a dis- 

 tance of 8 by 8 feet. The cost of these is estimated at .$2. After the land 

 is cleared, at the end of 20 years, the value doubtless will be as great as 

 at the beginning, but the value of the land is not taken into consideration. 

 Should $12 be added to the $120 which it is estimated could be secured 

 for the timber product, it would simply increase by that amount the 

 profits of the transaction. The statement following shows the items and 

 amount of the investment for one acre: 



Expenses on 1 acre for 20 years — ■ 



Cost of seedlings $2 04 



Cost of transplanting at $4.50 per 1,000 3 06 



Value of land 12 00 



Taxes at $1.80 per $100 3G 



Cultivation for 2 years 2 40* 



Total $19 SO 



Amount at, 3 per cent, compound interest. $35.87. 



At the age of 20 years the average Cottonwood is 14 inches in diam- 

 eter with a height of 50 feet. Studies made by the Forestry Bureau on 

 cottonwood as a planted forest have shown that the yield in average 

 cases has been at least 30 cords per acre in 20 years. Other practical 

 foresters would harvest the crop in 10 or 12 years, ihus securing less 

 cords per acre, but owing to the shorter period of investment a higher 

 annual per cent, on money invested. Under the 20-year plan, the 30 cords 

 would sell on the stump at not less than $4 per cord, bringing $120. 

 Deducting from this sum the amount at 3 per cent, compound interest, 

 $35.87, there remains $84.13 as a return on the investment over and above 

 that received from a 3 per cent, compound interest loan. This is equiva- 

 lent to a return of $4.20 per year from the time of planting to the time 



* This espjrue may be eliminated if covtjr is planted as ree >mn ended ;ibjve. 



