EXAMPLE OF A LONG-TERM SALE 303 



per cubic meter au carree ($23 per thousand board feet). The beech, which is gener- 

 ally used for ties, sells at Oloron or at Mauleon at 48 cents each or 25 francs per cubic 

 meter for squared timber ($11.50 per thousand feet). There is a good export demand 

 in Spain where the beech is usually sent to Barcelona, the center of the industry. De- 

 tailed data can be secured at this point. 



Profits. As already explained, the maximum price will probably be 1.15, 1.50, and 

 1.25 francs for the three lots, or an average of 1.28 francs per cubic meter (85 cents a 

 thousand feet). The material being about two-fifths fir and three-fifths beech. Con- 

 sidering 86 per cent of the fir and 82 per cent of the beech as building material, this 

 means a net cost of 30 cents per cubic meter of saw timber or 38 cents for squared 

 lumber which would bring at Oloron or Mauleon an average of about $6.76. 



These calculations upon which the estimated profit and stumpage 

 price is based seem simple and primitive compared with the minute calcu- 

 lations in the United States National Forest appraisals. Nothing is said 

 of the cost of equipment, interest on the capital used, depreciation of 

 equipment, nor cost of supervision. Rule-of-thumb methods are followed, 

 and in the appraisal the contractor's profit was figured at 20 per cent. 



This sale was finally made in 1908, and it is interesting to note that the 

 sale price was 19 cents per cubic meter (about 67 cents per thousand 

 board feet) instead of the 25 cents (85 cents per thousand) estimated in 

 the appraisal. According to the special contract conditions the sale, as 

 finally made, covered 10,089 acres, comprising first-class merchantable 

 material, but in part defective, damaged, diseased, or dying trees which 

 were marked for removal for the improvement of the stand. These de- 

 fective trees were partly girdled and partly felled in the actual operations, 

 the choice being left to the purchaser. As in small sales in France, all 

 the marking was completed prior to the formal auction. The sale was 

 made in one lot, with provision for the division of the proceeds between 

 the various communes interested, based on the volume of merchantable 

 material marked in the forests owned by each, prorated according to the 

 average rate received in each forest. At the auction the minimum pur- 

 chase price was placed at $37,635 and was decreased by jumps of $193 

 until a bidder took it. The payment was made as follows : 



Within 10 days of the auction the successful bidder had to pay 10 per 

 cent of the total purchase price and the remainder in twenty-four equal 

 installments payable quarterly on March 31, June 30, September 30, 

 and December 30 of each year, beginning with September 30, 1908, and 

 ending June 30, 1914, inclusive. A discount of 1^ per cent per year was 

 provided for if payments were made in advance of their being called for. 

 The final date for removal of the timber was fixed at December 31, 1922. 

 The compartments could be cut over in the order desired by the con- 

 tractor, and more than one compartment could be cut at one time. 

 Three years were allowed for felling each compartment after cutting once 

 began. If the imprint of the official marking hatchet shows a tendency 

 to disappear toward the end of the sale the trees already marked will be 



