S2(S jorkXAL oi' l■()Kl•:sTR^• 



Possibly in the case of the Government, operating as it does over a 

 long period of years, the gains and losses resulting from fluctuations 

 would in a large measure be compensating and therefore of little con- 

 sequence. This would be less true in the case of the individual oper- 

 ator, and particularly so with the relatively small operator belonging in 

 the class it is the policy of the Forest Service to encourage. 



The advantages claimed for this plan are : 



1. It seems not so radical but that the present procedure may pos- 

 sibly be modified to include it, provided the advance payments for 

 stumpage are regarded by contract as being deposits subject to a final 

 readjustment. 



2. It is relatively simple ; therefore should not prove unduly difficult 

 to present to prospective operators. 



3. Nearly all of the data necessary for its application are now kept 

 by either the operator, the Forest Service, or both. 



4. Stumpage appraisals so made will not become invalid if not used 

 for some time after their compilation, because they are based on a unit 

 for labor cost that does not fluctuate as does the length of a day or the 

 money price paid for time. 



5. It will tend to promote sales by increasing confidence in Forest 

 Service stumpage appraisals and eliminating one of the risks which 

 now attends the purchase of National Forest timber. 



Most of the arguments against such a plan may be quite as aptly 

 applied to the method now in use, the greatest defect of which, it is 

 believed, can be remedied by the use of the proposed method. 



Comments on a Suggested Departure in National Forest 

 Stumpage Appraisals 



By James IF. Girard 



In the first part of the article the following statement is made : "The 

 true selling value will be' the combined receipts from all the sales made 

 at dififerent times and at varying prices as a result of the operation, and 

 the only possible time for its correct determination will be after the 

 completion of the project." Whether or not this is to be the basis for 

 the readjustment in each individual case is not clearly brought out in 

 the article. 



If the readjustment in large sales is to be made on the history of 

 that particular sale, assuming that it will show accurately the com- 

 bined receipts from all of the sales made at dififerent times throughout 

 the life of the operation, I believe such a policy or practice would be 

 very dangerous. 



