172 TRANSACTIONS OF ROYAL SCOTTISH ARBORICULTURAL SOCIETY, 



^^52,500 of income tax and super-tax under Schedule D, making 

 a total taxation of;^73,5oo in the case of the timber as against 

 ;^2i,ooo in the case of the stocks. 



In the final report of the Forestry Sub-Committee of the 

 Reconstruction Committee, Appendix 7, page 100, the estimate 

 of initial outlay for planting is ^^5, ids. per acre, and the 

 estimate of the total annual outgoings 6s. per acre per annum. 

 ;^5, IDS. at compound interest for 70 years at 



5 per cent, is ..... . £166 7 o 



;^5, IDS. at compound interest for 70 years at 



2| per cent, is . . . . . . ;^3o 18 o 



6s. per annum works out at ^176, iis. and;^55, 9s. respectively. 

 Therefore the total cost for 70 years would be — 



At 5 per cent, compound interest . . . ;^S4^ i^ o 

 At 2| per cent. ,, „ . . . ;!^86 7 o 



On page loi the Forestry Sub-Committee estimate the returns 

 from larch under a rotation of 70 years at ;^2 32, and from Sitka 

 spruce for the same period at ;^2i5. Their estimate for Douglas 

 fir is rather higher, but Douglas will only grow under very 

 favourable conditions, so I leave it out of account. In the case 

 of spruce and Scots pine, for which the report estimates a 

 rotation of 80 years with final yields of ;!^i85, 12s. 6d. and 

 ;^i68, I OS. lod. respectively, the results would be even more 

 unfortunate. 



The Sub-Committee estimate that larch would realise . ;^232 

 From which falls to be deducted death duties at 

 21 per cent.. Schedule D income tax and super-tax 

 at 52|- per cent. (los. 6d. in ^) . . . ,170 

 Leaving a return of ...... . 



The Sub-Committee estimate that Sitka spruce would 

 realise ......... 



From which falls to be made the same deductions of 



21 per cent, and 52I per cent as above . . 158 

 Leaving a return of ...... . ^57 



Thus even at 2| per cent, compound interest there is a loss of 

 ;^24, 7s. on the crop of larch, and of ^29, 7s. on the Sitka spruce. 

 At 5 per cent, compound interest the loss would be ^280, i8s. 

 and ;^285, i8s. respectively. In the case of timber which is 

 mature at the present time, there will have been paid during the 

 past seventy years income tax under Schedules A and B, and 



