6 FOREST VALUATION 



methods alone were effective. Since the state tax commission takes 

 a hand in the assessment it becomes necessary to apply forest valua- 

 tion to show that if hemlock is worth five dollars per M. feet on the 

 stump for immediate use that the stuff to be cut in ten years from 

 now is not worth five dollars unless it doubles in value during the 

 ten years which it has not done in the last ten years and will not in 

 the next. Similarly in our efforts at tax reform. Several states, 

 notably Pennsylvania, New York, Massachusetts and Connecticut 

 have initiated change of laws regarding taxation of forest property. 

 In all cases a "yield tax" was introduced and the taxation of the 

 land was modified. But what is a reasonable tax on stumpage? Is 

 it ten per cent as in Pennsylvania, or six per cent as in Massachusetts 

 and what basis has either state for its estimate? Guessing and 

 juggling a few figures will not give any permanent, satisfactory 

 relief ; it will require modern forest valuation to supply a basis. 



6. The right use of land is one of the most important economic 

 questions in two-thirds of the United States. Is it wise to try to farm 

 all lands in Michigan, New York and Pennsylvania ; should part be 

 devoted to forest and if so what part, in what amount; what wilt 

 be the economic result if these lands are used to raise timber; how 

 may we determine which of the two, forest or field should have 

 preference in a given case ? Booster oratory or decision by the man 

 in the office may deceive some people for a time but it will lead to 

 great losses in the end. Pennsylvania, the Lake Region and other 

 districts today have millions of acres of idle, unused lands entailing 

 a loss of millions of dollars. The chief obstacle to any improve- 

 ment in this situation is the land boomer and his friends who con- 

 tinue to convince the legislatures that all land is farm land. The loss 

 is great and has accumulated for years. Nothing but the application 

 of sound methods of valuation and the recognition of this valuation 

 by the legislatures will prepare for the remedy and change great 

 money loss to income for the people. 



7. The Management of the forest is and must always be the 

 most important subject of forest valuation and statics. As stated 

 before, every time an acre of land is planted to trees the question 

 arises does it pay should a different kind of tree, cheaper plant 

 stock, cheaper methods of planting be used. Later on does it pay 

 to thin, should the thinning be light or heavy, and how often can we 

 afford to thin in this stand. All along there is expense for protec- 

 tion should it be cheap, less than five cents per acre, will it pay to 

 go as high as ten cents, is it better to use many men or depend on 

 outfit, etc. In the end comes the question is it more profitable to 



