VAIvUATlON 01^ DAMAGES TO IMMATURE TIMBER 179 



the value, while they admit its inaccuracy. It is hardly necessary to 

 argiie the scientific inaccuracy of this formula, which may be expressed : 



\„,— j^ 

 but it will perhaps suffice to note that, leaving out costs, and even if we 



can assume that — of the yield is produced each year, to pay an owner 



Y . . 



— each year if his stand should be burned that often would make his 

 n 



Y ( I Op° — I ) 



mdemnities at the end of the last year amount to , , ^ -, or 



n X -Op 



vastly more than he would have received had his original stand grown 

 to maturity. With a stand worth $ioo at lOO years and interest at 3 

 per cent, he would receive from his timber $100, or in case it burned 

 every year for 100 years after it was a year old, $607.29. 



The cost of production method has been very generally recommended, 

 particularly for very young stands and for artificial plantations. The 

 formula is given variously as (simplest forms, disregarding interme- 

 diate returns already received, and using English symbols) : 



C (I .Op^) + (S + E) (i .Op°^— i) 

 in which S may apparently be either cost or expectation value of soil" 

 (expectation value with normal forests) ; 



C (i .Op") + (S, + E) (i .Op'"— I ). where S, is cost of soil :^ 

 C (i .Op") + E (i .Op"— i) for plantations and 

 E (i .Op" — i) for natural stands." 



It is admitted by most of the writers who favor this method, as well 

 as by others, that cost is really no measure of value. Thus Martin, who 



' Faustman in Allg. Forst-und Jagdz., 1854, P- 84, quoted by G. Heyer in Anlei- 

 tung zur Waldwertreclinung, 4th ed., Leipzig, 1892, p. 93, and 

 Schlich : Manual, Vol. iii, 1911 ed., pp. I27ff. 



' Roth, Forest Valuation, 1916, p. 62, and 

 Chapman : Forest Valuation, 1915, p. 126. 



° Standard Instructions for the Determination of Fire Damage, U. S. Forest 

 Service Mimeo. Cir., May, 1916, and 



Chapman: Forest Valuation, pp. 126-127. 



See also 



Borggrevc : Die Forstabschiitzung, pp. 38off. 



Keiper : Waldbrandversicherung, in Forstwissenschaftliches Zcntralblatt, 1910, 

 reviewed by Gaertner in Allg. F. und J. ?.., 1910, pp. 224ff. 



Martin: Allg. F. und J. z., Dec, 1910, pp. 421 fF. 



Stoetzer: Waldwertreclinung und forstliche Statik, 4th ed., Frankfort-a-M., 

 1908, p. 116. 



Abstracts in Forest Quarterly, March, 1915, of articles in Allg. F. und J. z., 

 May, 1914. and in Schweizerische Zeitschr. fiir Forstwesen, Nov., 1914. 



.Mbcrt : Lehrbucb der Waldwertrechnung. pp. 2ofF. 



