37 



pense will vary, but on an average it should not exceed $3.00 an 

 acre. 



Adding up the average cost of the three items of expense, it 

 appears that $30 an acre on an average should cover the expense 

 of establishing a Eucalyptus plantation on a commercial scale. 

 In addition to this initial outlay, there will be a slight expense 

 incurred in taxes on the land. 



RETURNS. 



The returns obtained from the plantation will vary with the 

 species of trees planted and with the class of wood cut. The 

 following statements apply only to blue gum. 



If cordwood is to be the main crop, the entire grove will be cut 

 over every eight years, at which time it should be possible to 

 obtain at least 22 cords to the acre. Assuming a stumpage value 

 of $2.50 a cord, the crop would bring at the end of the first eight 

 years a return of $55 per acre, which is equivalent to a return of 

 8 per cent, compound interest on the original investment of $30 

 per acre. However, in addition to this satisfactory return on 

 the original investment it will be possible to obtain wood to the 

 value of $55 per acre at the end of every eight years for an al- 

 most indefinite time from the stumps of the trees cut down, all 

 of which would be clear gain, in addition to the interest on the 

 money invested. This calculation, however, does not take into 

 account the value of the land. 



In the absence of reliable yield tables, it can not be stated with 

 any degree of accuracy what returns could be obtained from a 

 forest grown for the production of lumber and timber. How- 

 ever, all indications seem to point to the conclusion that on waste 

 land unfit for other uses, the Eucalyptus should prove a remun- 

 erative crop. In addition to the final crop certain immediate 

 as a rule not only pay for itself but would leave a wide margin 

 of profit. This will be especially true of the later thinnings 

 returns may be obtained from the forest through thinnings. The 

 cost of thinning the stand to produce the desired final crop would 

 when material will be obtained suitable not only for firewood 

 but also for fence posts and perhaps for railroad ties. A thin- 

 ning made in an eight-year-old stand on Maui, in the District of 

 Makawao, originally spaced 9 by 9, yielded 2.2 cords per acre. 



No data are available to show what the returns would be for 

 plantations of Eucalyptus other than blue gum. Most of the 

 species are slower-growing than blue gum, but many of them 

 make up in higher value what they lose in the slower rate of 



