484 JOURNAL OF FORESTRY 



for that purpose. In that year and each succeeding year, however, 

 there would be a bond issue to cover all maturities for such year and 

 the interest on the outstanding bonds. This process would be con- 

 tinued until these maturities and interest could be met from the profits 

 on the sale of the timber grown. The land under forestry management 

 would be restocked mainly by natural regeneration and the second crop 

 would be started without the necessity of selling bonds. We would 

 then have accomplished the restoration of our timber producing areas. 



The bond issues were figured on a five per cent interest basis, which 

 is a much higher rate than the normal. The cost of maintenance was 

 to be met by direct annual appropriations, estimated at seventv cents 

 per acre per year and this was intended to provide for complete pro- 

 tection against all known dangers, to pay the taxes, to make the neces- 

 sary improvements, and to offset unavoidable losses. Besides, com- 

 pound interest at five per cent was allowed on these annual appropria- 

 tions in making up our total cost curve. These estimates were ex- 

 tremely liberal, but they were made in this manner to meet all possible 

 objections from the legislators. 



In figuring the value of the timber that would be produced, we took 

 the white pine as the basis of calculation because it is our predominant 

 timber species. There again we figured conservatively, taking as our 

 basis of production the yield on third quality site which averages 7ol 

 board feet per acre per annum on a fifty-year rotation. White pine 

 stumpage was selling at $15 to $18. We estimated that fifty years 

 hence it would bring, in the average location, $20 per thousand. One 

 lumberman and manufacturer of life-long experience stated at the 

 hearing that in his judgment white pine would bring at least $50 

 on the stump fifty years hence. Therefore, taken from every angle, 

 our estimates of costs and values were exceedingly conservative. 



The total cost curve and the timber value curve were farthest apart 

 at fifty-four years which meant that this was the most profitable time 

 to cut the timber, or in other words, the financial rotation for white 

 pine, based on the factors used in our calculation. The total tost to 

 that time for the 250,000 acres was $91,000,000. The timber valuq 

 curve showed at that period $159,000,000, or a net profit to the State 

 of $68,000,000, a little over $5 per acre per year. 



