Periodical Literature 761 



All the figures used are believed to be fair averages, but in 

 specific cases may be enormously modified. Probably much land 

 already stocked with young growth could be bought at the rates 

 specified for the empty acre, saving the cost of stocking; and as 

 every dollar saved in the start means from $5 to $50 at the end, 

 according to the interest rate, the possibilities of profit are greatly 

 increased. Other conditions modifying costs are cited. 



The position of different owners with reference to forestry busi- 

 ness are then discussed, the advantage of large corporations being 

 specially accentuated, and the small owner, except possibly for the 

 small woodlot, is properly discouraged. 



In discussing taxes as an element in cost of production, the 

 author shows by an example that they do not play the important 

 r61e which many foresters ascribe to them misled to it by a false 

 averaging of the general property tax over the entire time of pro- 

 duction instead of the gradually increasing tax rate on value, 

 when they appear as rather a minor charge. A deferred yield 

 tax might be substituted, but that yield tax must be less than the 

 25 per cent of the gross yield paid by the National Forests, which 

 is much larger than the accumulating tax as figured in the tables. 

 Since, however, a yield tax is based upon the conception of inter- 

 mittent management, the author will none of it. The fallacy that 

 the State can practice forestry without paying taxes, at least 

 indirectly, is exposed. 



The author comes to the conclusion that "owners who must pay 

 or can get high interest rates for the use of capital cannot wisely 

 tmdertake the production of timber as an investment," hence 

 mainly Nation, State, possibly municipalities, or possibly under 

 certain conditions, large corporations must be relied upon. State 

 and federal responsibility is argued and even additions to National 

 Forests by purchase. 



A special section brings the comparative cost of growing new 

 as compared with hoarding old timber under a financial test. 

 Under the assimiption that with a 5 per cent interest rate, the cost 

 of growing timber on site II is $9.87, and allowing 3 cents for taxes 

 and protection of old timber, the cost of holding old timber is 

 calculated at 57 cents, while the present value of the cost of growing 

 is 53 cents, so that "even if the timber were given to a corporation 

 to be held 60 years, it would be cheaper to grow it than to take the 

 old timber as a present." 



