SOME PROBLEMS IN APPALACHIAN TIMBER APPRAISAL 



By W. W. Ashe 

 Forest Inspector, Forest Service 



The decade prior to the panic of 1907 was marked by phenomenal 

 appreciation in the values of Appalachian hardwood timber. Since 

 this date and especially following the subsequent break in the price of 

 yellow poplar panel stock, there has been stagnation in hardwood 

 timber values, the increase in the prices, until early in 1916, being 

 insufficient in many cases to meet its carrying charges. During this 

 period of increment such forest properties offered excellent invest- 

 mental opportunities ; with the waning of this factor of value, profits 

 have been limited practically to those of operation. 



The result of this has been to develop in prospective operators in 

 this region radically different views respecting the volume of stands 

 as well as different concepts of merchantability. Standards of mer- 

 chantability were still indefinite. While the timber was rapidly in- 

 creasing in value and while its prices were still comparatively low 

 there was little incentive for accurate determination of volume. Even 

 though a stand failed to saw out as much as the estimate showed, it 

 was expected that this shortage would be offset by the increase in the 

 selling price of lumber if the operation extended more than a few years. 

 With the elimination or reduction of the investmental appreciation, it 

 has been necessary that appraisals of timber should be more accurate 

 and that the engineering features on which exploitation are dependent 

 should be so carefully determined that there would be practical assur- 

 ance of profit in operation. Forest lands being acquired under the 

 act of March 1, 1911, providing for eastern National Forests have been 

 appraised by standards designed to secure these results. 



Briefly the methods which have been followed consist (1) in placing 

 a value upon the soil; (2) in determining the amount of the timber; 

 and (3) in placing a value upon the timber. 



Soil when it is regarded as absolute forest land, as is the prevailing 

 condition, has been appraised on the basis of its relative capacity for 

 growing timber. Small areas occur which are suitable for farming or 

 for grazing, and these are so valued. There is such a limited sale of 

 land of this character to private parties, that the prices involved, which 



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