SOME PROBLEMS IN .APPALACHIAN TIMBER APPRAISAL 323 



might be considered the best criterion, are comparatively ineffective as 

 guides. 



The value of land for growing timber is primarily predicated upon 

 the heaviness and unit value of the stands, value being affected by 

 the kind of trees, and logging costs; while subsidiary elements are 

 damage to the soil by fire, the amount and character of young growth 

 and the thoroughness of replacement. In determining^ the amount of 

 timber that which has merchantable value for present operation is 

 segregated from that which has only a speculative or investmental 

 value. 



Preceding or preferably simultaneously with the volume survey, 

 a lumberman ascertains the values (stumpage values per unit) of the 

 different species and products. The so-called lumberman (in reality 

 a stumpage-appraiser) must be capable of analyzing the quality of 

 standing timber in order to determine its yield in grade of sawed lumber, 

 as well as possess fundamental knowledge of forest engineering, log- 

 ging, and milling. Reduced to its simplest terms, the operating value 

 of standing timber is the difference between its selling price at the 

 nearest market and the cost of exploitation including reasonable profits 

 to contractors and operator. The market price of timber, due to 

 ignorance on the part of buyer or seller or to speculative tendencies 

 in the market, may be higher or lower than its operating value. The 

 object of the Government's appraisal is restricted to ascertaining 

 operating value. As a rule in considering a prospective purchase of 

 timber land, the active operator gauges the probable mill run selling 

 price of the lumber on the relation of his past sales. In a similar manner 

 he approximates the operating costs. From such data he decides 

 what he can afford to pay: data which is often fictitious from dis- 

 similarity in conditions. 



It is necessary in governmental appraisals to establish a more 

 detailed basis. A plan of operation or development is prepared by the 

 lumberman-appraiser. This plan may be limited to a single tract or it 

 may embrace a number of tracts which form a natural operating unit. 

 The scheme may provide for railroads, trams, flumes, slides, etc., 

 team or machine skidding, a permanent mill or for portable operations 

 or various combinations of these methods; the object being to make 



1 The method of ascertaining the amount of timber by means of the volume 

 survey is briefly outlined in the footnote on pages 325 and 326, and more in detail in 

 an article referred to in the footnote. 



