180 JOURNAL OF FORESTRY 



says cost is theoretically correct, admits that it does not measure the 

 value of old stands, but that sale value governs. 



Nisbet^" says : "The cost of production has nothing to do with the 

 prospective returns, because these depend mainly on factors (local 

 market, soil and situation, suitability of crop, distance of plants, treat- 

 ment as to thinnings, etc.), not necessarily in any manner determined 

 by the amount of money spent in forming the plantations." 



Liefmann^^ says: "The method of cost value is pure fiction — has no 

 real economic basis." 



Chapman^^ says : "Cost is an individual outlay ; value is the product 

 of social conditions." "The objections to the use of cost of replace- 

 ment as a measure of damages are that it does not represent the true 

 value of the property nor measure the loss." "Wherever there is a 

 marked divergence in the two, whether cost exceeds or is less than the 

 value, the collection of damages based on cost cannot be justified by 

 any principle of law. Its use is clearly a makeshift." "The higher the 

 interest rate the greater the cost and the smaller the value of the crop." 



Borggreve :^^ "The costs actually expended may be expended very 

 uneconomically. The proof of the economy of this expenditure would 

 always have to be shown, which brings us back to the expectation 

 value." 



Riebel •}* "The new owner does not care what it has cost to produce 

 the stand, what soil rent and administration cost has been charged 

 against it, what revenues the previous owner has already derived from 

 it." 



Jaquot^^ objects that the cost method "omits all recognition of skill, 

 vigilance on the part of the owner, results of good management, well- 

 executed markings, judicious selections of periods of exploitation; 

 . . . draws no distinction between neglected forests and those prop- 

 erly managed, between intensive and reckless exploitation." 



Wimmenauer^® points out that while cost might determine the value 

 of a perfect product — bricks or cigars, for instance — it cannot deter- 

 mine values of imperfect products. "In the forest almost every stand 

 is subject to one irregularity or another; ... it would often come 

 about that one would value the poorer stand higher than the better." 



" The Forester, Vol. 2, 1905, p. 390. 



"Die Entstehung des Preises aus subjectiven Wertschatzungen, in Archiv fiir 

 Sozialwissenschaft und Social politik, Vol. 34, No. 2, Tubingen, quoted by Glaser 

 in Centralblatt fiir d. g. Forstwesen, Jan., 1913. 



"Forest Valuation, pp. 44, 126, 127, 131. 



" Die Forstabschatzung, p. 379. 



" Centralblatt fiir d. g. Forstwesen, Jan., 1915 ; abstracted in Forestry Quar- 

 terly, March, 1916. 



" Incendies en Foret ; trans, by C. E. C. Fischer, Calcutta, 1910, p. 25. 



" Allgemeine Forst-und Jagdzeitung, Dec, 1910, p. 424. 



