66 Forestry Quarterly 



covering all or a portion of the surplus value above what is paid 

 as " stumpage dues." The following table gives the annual 

 " ground rent " payments per square mile for the different prov- 

 inces and on Dominion lands, and the sums to which these an- 

 nual payments amount for different periods of from 30 to 100 

 years, interest being figured at 6% : 



REIvATlON OF GROUND RENTS TO CONSERVATIVE LUMBERING. 



Ground 30 40 50 60 80 100 



Rent yrs. yrs. yrs. yrs. yrs. yrs. 



Ontario and Quebec S 3.00 251 492 923 1,686 5,611 18,418 



Ontario (recent sales) and Dominion 



lands east of Yale, B. C 5.00 419 820 1,539 2,809 9t352 3O1697 



New Brunswick S.oo 670 1,312 2,462 4,495 14,964 49,114 



Dominion lands west of Yale .... 32.00 2,682 5,250 9,848 17,979 59.856 196,458 



British Columbia \ 96°° 8-045 i5,749 29,544 53,938 179,568 589,373 



(^ 160.00 13,408 26,248 49,240 89,896 299,280 982,288 



Thus, in order to make it profitable to hold lands for a second 

 logging, the lumberman must find on his return of the trees left 

 from the first logging, a stumpage value over and above the then 

 government stumpage dues, and in excess of the value of the 

 ground rent with compound interest, which, as is shown by the 

 table, mounts up very rapidly with increase of the time between 

 loggings. It is natural that this method creates a strong ten- 

 dency toward a low diameter limit, and discourages conservative 

 lumbering. The higher the "ground rent," the more inexora- 

 ble is this tendency. 



(3) A " bonus " is paid when the lease has an estimated value 

 in excess of the amount paid as ' ' stumpage dues ' ' and ' ' ground 

 rent," and the limit is put up at public auction. In recent sales 

 in Ontario, the largest portion of the value of stumpage sold has 

 been paid in this form. The amount of the "bonus" being 

 fixed before logging begins, and only a small portion of the value 

 of the stumpage being paid in the form of " stumpage dues," 

 the financial interest of the lumberman compels him to cut every- 

 thing that will yield a profit over this low rate. Thus, a low 

 diameter limit prevails, and the natural re-seeding of the forest 

 is prevented by the destruction of the seed trees. 



Woodland Taxation. Canadian Forestry Journal, October, 1905, pp. 

 159-172. 



