VALUATION OF DAMAGES TO IMMATURE TIMBER 189 



The capita, loss win be ^^§0^^ -e] x [^^^] • 



A few examples will show how these formulae work. 



(i) Given a stand of Douglas fir, Quality 2, will produce 100 M, 

 worth $2 per M, in 100-year rotation. Cost $6 to establish in first 

 place, but will reproduce naturally after logging. Annual costs, $.06. 

 Interest, 3 per cent. Burns at 60 years, natural reproduction will follow 

 immediately, and costs remain the same. 



... , 200 X I -03^° — I ^ 

 Loss IS (a) stand ^ q^ioo _ ^ =$53-7o 



(b) capital no loss. 



(2) The same, but reproduction requires ten years to come in. 



Loss = (a) stand $53 . 70 



^u^ -.1 r(Y — C(i.Op") .^-1 riXDpk—i-, 

 (b) capital. ...^^ x.Opn_i ^ J X [ , .Qp. J 



= [l.O3-0_i-2] X [ "7:^310 ' ] =$2.55 



(3) Same as (i). but annual expense $.09 for 25 years, on account 

 of extra fire hazard. 



Loss = (a) stand $53 . 70 



W capital (3=^)_lp3!l^ = $.5. 



(4) Same as (i), but must plant after fire, at cost of $10. 



Loss = (a) stand $53 . 70 



(b) capital 10.00 



(5) Original stand to be replanted each rotation at cost of $6. Cost 

 $10 first time after fire, on account of down logs, etc., and $6 in suc- 

 ceeding rotations. 



Loss = (a) stand $53 . 70 



(b) capital 10 — 6 = $4.00 



(6) Same as (5), but cost after fire only $6. 



Loss = (a) stand $53 . 70 



(b) capital no loss. 



(7) Same as (i), but soil so injured that but 75 M feet will 

 be produced in first 100 years after the fire and 100 M in succeeding 

 rotations. 



