Summary of Principal Conclusions 



1. The chief cost of producing timber is the interest on the capital in- 

 volved. 



2. It follows from (1) that the interest rate under which the forest 

 owner works., to a large extent determines the cost of producing tim- 

 ber to the owner concerned. 



3. Taxes, though important, are a minor cost as compared with interest 

 charges. 



4. The costs of production under high interest rates are so great as 

 to bar forest Droduction to those owners who cannot secure money at 

 a rate not much, if any, higher than 5 per cent. 



5. This makes forest production at a profit possible only to the federal 

 government, the state, the municipality and the large corporation, and 

 those owners exceptionally situated as to the ownership of land for 

 other purposes, such as mining, in connection with farming, etc. 



6. Since the federal government is already practicing forestry so far as 

 its resources make practical at present, the large corporation is not 

 likely to become interested under present conditions, and the munici- 

 pality can engage only to a limited extent; there is little hope of 

 introducing forest practice in adequate manner except through the 

 state. 



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