15 



As previously stated, however, in the general application of this 

 plan, particularly to lands which are to be cut in the 'future, the 

 amount invested in the trees left standing to form the basis for the 

 future crop must not be overlooked. This investment will of neces- 

 sity cut down the final "net returns." For example, in cutting over 

 an acre of pine land it might be necessary to leave 2,000 feet of 

 merchantable timber to provide the basis for the future crop. This 

 2,000 feet at present stumpage prices would mean an investment of 

 $4 per acre. Compounded for forty years this might amount to such 

 a sum that, beyond the money invested and the accumulated interest 

 at 5 per cent, the company would receive nothing at the time of 

 cutting. 



TABLE 4. Probable net returns from experimental area at end of forty years Cost oj 

 protection deducted, and yield, estimated at 40,924,000 board feet. 



Table 4 shows, then, greater profits than can ordinarily be expected 

 from raising successive crops of timber. It is firmly believed that, 

 even considering the permanent investment of capital in merchant- 

 able timber on the ground, conservative lumbering and fire protec- 

 tion will show a fair rate of interest on the investment, but that, 

 barring exceptionally rapid advances in stumpage values, this rate 

 of interest will be comparatively small. 



There is, however, another argument in favor of protection, namely, 

 a continuance of the supply for the mill. Thus, if leaving trees and 

 protecting the land will show a fair rate of interest on the money 

 invested, it is an entirely practical plan from a business standpoint. 



SUCCESS OF FIRE PROTECTION. 



The fire record for 1905 at McCloud is the best argument for the 

 protection of timber land from fire and of the success of the plan in 

 general. A few fires started, but none of these were on the small 

 experimental area. The few fires which did start were speedily dis- 

 covered by the patrolman and extinguished by him without assist- 

 ance. In addition to this, slash burning was carried on successfully, 

 a fact which will somewhat alter the aspect of the protection scheme. 



EXTENSION OF THE PLAN. 



In view of the success of the plan, the McCloud River Lumber 

 Company extended it over all its holdings during the season of 1906. 



[Cir. 79.] 



