Costs and Values in a Logging Operation. 689 



Depreciation and operator's profit 



pA=$35o,ooox .15 =52,500.00 



B 



= 300,000-^20.304 =14,775.41 



d 



Total per year, 67,275.41 



Total per acre (-^ 5,000), $i345 



Total cost and operator's profit per acre, . . . .$38.85 



F. O. B. value per acre, (Table 3), 44-55 



-38.85 



Stumpage value per acre, $5-70 



5.70 -^ 19.50= .297 



Summary. 



Table 5 shows a comparison of the stumpage values obtained by 

 the different methods outlined, the conditions in each case being 

 the same with the exception of the modifications noted in the last 

 case. For the details of computation, see Tables i, 2, 3, and 4. 



Table 5 — Comparison of stumpage values obtained in Tables 

 I, 2, 3, and 4. 



Species and products, A B C D E F 



Poplar, per M, $3.75 $9.60 $3.30 $7.80 $4.88 $4-06 



Chestnut, per M, 1.25 1.60 1.24 1.55 1.83 2.08 



Chestnut oak, per M, i.oo .80 1.03 1.93 1.53 1.78 



Black oak, per M, .... — 2.40 .21 — 1.57 .31 .59 



Extract wood, per cord, .12 — .40 .25 .03 .31 .30 



Tanbark, per cord, .87 1.20 .87 i.ifi 1.07 1.04 



Ties per piece, .06 .12 .06 .12 .08 .07 



A — Direct percentage formula; construction cost distributed per 

 M bd. ft. 



B — Forest Service formula; construction cost distributed per M 

 bd. ft. 



C — Direct percentage formula; construction cost (and, inciden- 

 tally, operator's profit) distributed on value basis. 



D — Forest Service formula; construction cost distributed on 

 value basis. 



