oharge against the growing timber for one rotation, or single crop, is 

 therefore not the soil value, but only the interest on that value for the 

 term of years it takes the timber to grow. Since the timber is not an annual 

 product, the interest cannot be secured annually, but must accumulate until 

 the timber is cut. Hence compound interest is used. What this will amount 

 to at rates applicable to forestry will be discussed later, and shown 

 specifically in the tables forming part of this discussion. 



Cost of Stocking Land With Trees 



While space is not here available to take up in detail the cost of stock- 

 ing the land, there is good evidence that $5.00 per acre is a fair average 

 figure. Although planting on a bare area will cost nearer $10.00, few areas 

 need be chosen which do not bear some young growth or contain some seed 

 trees which will assist artificial regeneration. Areas that have not been 

 cut over can seldom be stocked any cheaper by natural regeneration than 

 by planting, since the value of the seed trees that must be left will usually 

 bring the cost up to the average figure mentioned above unless there are an 

 unusually large number of worthless trees of the desired species which may 

 be used as seed trees. A skillful combination of planting with natural 

 regeneration from stands not yet cut, and artificial regeneration by planting 

 or seeding should bring the operation within this cost. 



Unlike the land cost, the expense of stocking the land with trees has 

 to be repeated every time the timber is cut. This amount must, therefore, 

 be charged against the product of each planting. 



Interest on Cost of Stocking Land 



The interest on the cost of stocking the land might have been included 

 with the foregoing item, but it is here treated separately in order that all 

 interest charges under various kinds of ownership may be segregated. As 

 in the case of interest on the land value, compound interest must be used. 

 The amount of this item at various rates will be shown specifically in 

 tables forming part of this discussion. 



The Annual Cost of Administration and Protection 



Kellogg and Ziegler maintain that the annual cost of administration 

 and protection can be handled for five cents per acre.* An analysis of the 

 actual conditions will show that five cents is not sufficient for safety. It 

 must be remembered that this includes office expense, supervision, fire patrol, 

 patrol against trespass, and all other overhead expenses. Although forest 

 fire insurance is not at present one of the expense charges included in this 

 item, the practicability of insuring forests by an enlargement of the 

 scope of the forest fire protective organizations is such that it is bound 

 to come in the near future. Hence this figure should also be high enough 

 to include forest fire insurance. In the case of the state or the federal 

 government, the losses from fire must be charged to this item. Whatever 

 amount accumulates between planting and cutting a single crop must be 

 charged to that crop. The writer does not therefore, believe that the low 

 figure generally assigned to the annual cost of administration and pro- 

 tection is sufficient, but will assign 20 cents per acre per annum as a 

 reasonable, though entirely sufficient amount. The total first cost, or 



*"Cost of Growing Timber," by R. S. Kellogg and E. A. Ziegler. 

 principal sum of this item per acre charged to a single crop of trees 



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