necessary to davolop some very definite principle on which 

 stumpa^G prices could be figured mat liematj. pally , t In other 

 words, tlie responsibility for sotting: tlio stumpa^'e price on 

 these vast "blocks of Government timber was so ^reat that .11 

 of tlio fiold officers charged with this duty -./ished to de- 

 vise a method whioh so far ac possible would eliminate the 

 factor of individual jnclkment and put all stuinpar;e "buyers on 

 a fair competitive "basis. 



.Lfter oonsidora'ble corres;;ondonoe with the District 

 rorestarc the i-'oroster evolved this "basic ; rinci:.le on which 

 Gtur.ae prices were thereafter to bo figured: 



-1 stumpaG'Q price will "be set that v/ill allow an 

 operator a fair wor?:in^ margin, of ;-rofit over and above his 

 cost of production includinc; the stuinpa^e in viev; of the cur- 

 rent average nil! run valr.e of the lumber during the calen- 

 dar year in which his application is made. He went further, 

 and define-, what a fair wor":in; profit is - He placed the 

 standard at E5 per cent profit on the investment represented 

 in each thousand feet of manufactured lumber f.o.b. at the 

 mill or at tlio nearest main line market point for operations 

 of a standard degree of ris!: He stated that when the de- 

 gree of risl: was higher by reason of e^rbonsive railroad con- 

 struction - or other heavy investment necessary to put the 

 timber on the marliet - the percentage of profit could be 



raised uo to possibly 35 per cent. ...,1s o, that when the de- 



217 



