11 



costs is complete without including interest on the money in- 

 vested in the operation, 6 per cent, has been added to cover this 

 charge. 



TABLE 3. Cost of lumbering and hauling Different Products, with 

 Interest Charges at 6 Per Cent. 



[Compiled from tables in Forest Service Bulletin 96.J 



VALUE OF STANDING TIMBER. 



The stumpage values for lumber, ties, poles and cordwood 

 here given are derived from the market values and costs of 

 production given above. 



The real stumpage value is the difference between the market 

 value and the total operating costs, less a reasonable profit on 

 the combined investment in stumpage and production. The 

 profit has been computed for the purpose of this bulletin at 20 

 per cent. 



Table 4 gives the stumpage value per unit of volume for dif- 

 ferent hauling capacities, wage rates and market prices, based 

 on the total costs of production given in Table 3. These are 

 the prices which the wood-lot owner should receive for his tim- 

 ber under the given conditions. 



