712 JOURNAL OF FORESTRY 



per cent to 20 per cent on the manufacturing investment is a reasonable 

 margin when the investment method is used. 



In the overturn method from 15 per cent to 30 per cent on the log- 

 ging costs and from 20 per cent to 25 per cent on the manufacturing 

 costs is considered equitable. The risk involved is the most important 

 factor in determining the profit margin. 



The cost of logging and manufacturing, plus a reasonable margin 

 for profit and risk, subtracted from the mill-run value of the finished 

 product, averaged for all sizes, grades, and species over a period of 

 time (two years or more in large sales), indicates the stumpage value 

 of the timber. 



A thorough and comprehensive analysis of the factors afifecting the 

 costs of operation from the stump to the cars and a full consideration 

 of the value of the finished product is the only proper basis from which 

 to determine a just and equitable stumpage value for any given logging 

 chance. The author does not believe that any practical logger or manu- 

 facturer would question the soundness and logic of this method. 



RELATION TO OTHER ACTIVITIES 



In connection with the Forest Service stumpage appraisals, the rela- 

 tion between the Office of Silviculture and its divisional parts — Timber 

 Surveys, Logging Engineering, and Products — should be explained. 



Wherever possible, a special man is detailed by the Office of Silvi- 

 culture to determine the silvicultural treatment of the area, including 

 the marking rules, marking plan, the percentage of each species to be 

 reserved from cutting for reforestation purposes, or to form the basis 

 for a second cut and the brush disposal. This man works with the 

 appraisers, as a rule, but when it is not possible to have him in the 

 party the same data which he collects are obtained by the appraisers. 



Logging Engineering furnishes all data concerning the most feasible 

 method of operation, quality of timber, logging investments and costs, 

 manufacturing investments and costs. 



The Office of Products compiles all data regarding lumber values by 

 grades and species, average mill-run values f. o. b. cars, and conducts 

 mill scale and lumber depreciation studies. The average mill-run value 

 f. o. b. cars for the Inland Empire region for all species is compiled 

 from data furnished by the Lumbermen's Information Bureau of the 

 Western Pine Manufacturers' Association, Spokane, Washington. 

 Practically all of the large mills in Montana, northern Idaho, and east- 

 ern Washington report sale prices to this bureau, and the average mill- 



