35 



the acre, the yield of the eleven-year-old grove ran as high as 

 41.4 cords to the acre, in spite of the wide spacing, thus show- 

 ing how fast the trees grow after they once establish their root 

 systems. The above table, being based on very meager data, 

 can not be very reliable. It shows merely what a few groves 

 have done rather than what regularly-spaced, carefully-tended 

 plantations will do. As soon as there are enough old groves in 

 the Islands to justify the work new and more complete yield 

 tables should be constructed. 



FINANCIAL RETURNS FROM EUCALYPTUS. 



When trees are grown for water protection, shelter for cattle, 

 windbreaks, etc., the relation between the cost of establishing a 

 plantation and the value of the wood or lumber that may be cut 

 from the forest is of secondary importance. When forests are 

 grown solely for the commercial purpose of wood or lumber 

 production, then the value of the forest products balanced against 

 the expense incurred in obtaining the products will determine 

 the practicability of growing the forest. Thus, it is manifest 

 that an expenditure of $100 an acre to grow Eucalyptus will not 

 be justified if the returns in wood and lumber amounts to only 

 $75 an acre, unless in addition to the wood material certain* in- 

 direct benefits are enjoyed. It is, therefore, of the first import- 

 ance to balance the cost of a plantation with the returns ex- 

 pected. Furthermore, since most of the expenses are incurred 

 at the time when the forest is planted, while the returns may not 

 be obtained for years to come, it is necessary to carry forward 

 all expenses with compound interest at an acceptable rate to the 

 time when the crop is harvested. The cost of starting a planta- 

 tion and the probable returns will, therefore, be examined next. 



COSTS. 



The cost of starting and maintaining a forest may be divided 

 into three parts: (a) the cost of raising the trees in the nursery, 

 (b) the cost of planting the trees, including the clearing of the 

 land, and (c) the cost of tending and of protecting the grove. 



(a) The cost of raising the trees in the nursery varies from 

 place to place, and is highest, of course, where conditions for 

 tree growth are most unfavorable and where the trees, therefore, 

 require most attention. In Hawaii it has been found that the 

 cost of transplant trees in the nursery varies from $1.50 per 

 thousand, where the trees are grown without boxes or flats, to 



