722 JOURNAL OF FORESTRY 



When the investment method is used, the outhne takes a httle differ- 

 ent form and is generally arranged about as follows under 8. d. 



1. Logging — Stump to landing: 



a. Current improvements. 



Under this heading are figured the costs of chutes, landings, skid- 

 ways, temporary camps, or any other improvements which are con- 

 structed currently as the logging operation progresses. 



b. Sawing. 



c. Swamping, skidding, and landing. 



d. Loading, hauling, chuting, or other transportation, 



e. Decking or piling at landing. 



2. Landing t6 mill : 



a. Loading, breaking landings, etc. 



b. Railroading, hauling, driving, fluming, or other transporta- 



tion charges. 



c. Unloading at mill pond, sorting, booming, etc. 

 e. Maintenance — Supplies and repairs. 



/. Brush disposal, treatment of defective trees, cutting dead 



snags, etc. 

 g. Supervision or general expense. 



3. Summary of operating costs per thousand feet board measure. 



9. Fixed investment (logging). 



Under this heading are given all fixed investments, such as perma- 

 nent camps, main tote roads, railroads, flumes, dams, and all equipment 

 or any other investment of a permanent or fixed character. A tabula- 

 tion is made of these investments in which are provided headings for 

 the item or kind of improvement or equipment, initial cost, years in 

 use, annual depreciation, residual value, and average annual profit- 

 bearing investments.^ The working capital is also included in this 

 tabulation. 



When the average annual profit-bearing investment has been deter- 

 mined, from 15 to 25 per cent of this sum is set aside as a profit mar- 

 gin. This sum, divided by the annual cut, gives the profit rate per thou- 

 sand feet board measure. The depreciation per thousand feet board 

 measure is determined in the same way. These sums are added to the 

 operating costs and become a part of the total logging costs. 



10. Manufacturing investments. 



Under this heading a similar tabulation is given to that discussed 



' Page 53, "Instructions for Appraising Stumpage on the National Forests." 



