corporations, which could be placed on a basis of permanent invest- 

 ment. It would, however, easily be possible in many cases for corpora- 

 tions or companies wishing to insure a future timber supply to their mills 

 to secure tracts bearing young growth at prices which would give the 

 same advantage relative to the short length of time held that the above 

 example gives for 60 years. For example, Douglas fir stands 10 to 50 

 years old can often be purchased at prices little greater than the land 

 value. If the land value in such cases does not exceed $10.00 per acre 

 and the timber can be bought for $10.00 per acre, the cost per M. of the 

 stumpage at the end cf 20 years would be as follows, where the interest 

 rate is Q% . Interest on land value 20 years=$10.00x( 1.06 20 1)= 

 10.00x2. 21=$22. 10. Cost of young timber is 10x$3.21=$32.10. Cost of 

 protection and administration for 20 years equals 20(1.06.,,, 1)=$7.36 



.06 



Total cost per acre of the stand at end of 20 years equals $22.10-{-$32.10 

 +$7.36=$61.56, total cost per acre. If the acre is well stocked and on 

 Quality I forest soil it should yield 44,000 ft. B. M. per acre at the age 

 of 60 years, thus the cost per M. ft. 20 years hence would be $1.40. That 

 is, it would have to sell for only $1.40 per M. ft. to give the present pur- 

 chaser on those terms Q% on his investment. Mature timber, no longer 

 making growth, purchased now for even as low as $1.00 per M. and 

 held for 20 years on land worth $10.00 per acre will cost as follows 

 where the stand is 50,000 feet per acre and the annual expense of pro- 

 tection is 20c per acre. Cost of original stumpage payment per acre equals 

 $50.00x1. 06 20 =$50.00x3. 21=$1 60. 50 



Use of land=$10x(1.06 20 1 )=$10x2.21=$22.10 



Annual cost of administration and protection 

 =20 ( 1 .06" 1 )=$7. 3 6 

 .06 



Taxes at 2c per M. per annum=l .00 ( 1 .06 20 1 )=$36.78. 



.06 



Total cost per acre at end of 20 years 



=$160.50+$22.10-f$7.36+$36.78=$226.74. 



Cost per M=226.74=$4.57. 

 50 



Of course this old timber will be more valuable material but not 

 sufficiently so to make this as good an investment as the young timber 

 even at the low price of $1.00 for the old. Where $2.00 is paid now the 

 stumpage price must be over $9.00 per M. in 20 years to make the pur- 

 chase a 6 per cent investment. Of course, every individual case of this 

 sort must be dealt with on its merits. 



The comparative cost of insuring a future timber supply by growing 

 timber or by storing mature stands is a more important question on state 

 and federal lands than on private lands, because it is a reasonable con- 

 clusion from the tables of cost of growing timber that upon the state 

 and nation will devolve this task. The state is already pursuing an active 

 policy of sale of mature timber, but many people question the federal 

 policy, which is providing for very few sales. There are on the National 

 Forests large areas of mature and over-mature timber which could be sold 

 for $1.00 per M. feet or more in any normal times. These stands are 



36 



