CASE 2. 



Xo annual tax on land or timber ; final tax, 25 per cent of yield. Other factors as 

 in Case 1. 



Land 



AGE and 



YRS. stocking. 



40 $ 45.01 



50 68.07 



60 102.20 



70.. 152.72 



80 227.50 



90 338.19 



* Excluding taxes. 



t Three-fourths of total yield, one-fourth deducted in lieu of taxes. 



The cost of production mounts rapidly with higher rates of interest. 

 At 5 per cent, in Case 1, with the other factors unchanged, the taxes in 

 50 years amount to $32.63, administration and protection to $10.47, land 

 and stocking to $111.67, a total of $154.77, or $5.16 per thousand, an 

 increase of $1.76 per thousand over the cost at 4 per cent. At 60 years at 

 5 per cent, the taxes come to $76.17, administration and protection $17.68, 

 land and stocking $183.79, a total of $277.64, or $7.31 per thousand, $2.70 

 per thousand more than at 4 per cent. If a stumpage price of $7 per 

 thousand for 60-y ear-old timber is obtained, it will give practically 5 per 

 cent on the investment under the conditions above specified. 



With interest at 5 per cent, and the only tax one of 20 per cent of the 

 yield, the stumpage cost in 50 years will be $5.09 per thousand, and in 60 

 years, $6.63 per thousand. Using 6 per cent interest in 'the calculation 

 gives for Case 1 a cost of $7.90 per thousand at 50 years, and of $11.89 

 per thousand at 60 years. Taxing the yield 16% per cent, with 6 per cent 

 interest, we get a cost of $7.83 per thousand at 50 years, and of $11.19 at 

 60 years. With the older-age classes, the increase in cost by using 6 per cent 

 is even more marked. 



The growing of white pine in New England at present stumpage prices 

 should be profitable. On a 50-year rotation under the conditions specified 

 in Case 1, there is $2.60 per thousand profit above 4 per cent interest on 

 the investment. At 60 years, the net profit above 4 per cent is $2.39 per 

 thousand, and at 70 years, $1.47 per thousand feet. Judged from the 

 economic standpoint alone, white pine stumpage prices have gone high 

 enough. They leave a safe margin above the actual cost of production to 



encourage the inyestor. 



LOBLOLLY PINE. 



The method of estimating the cost for loblolly pine (Table 2) is 

 identical with that for white pine, except that a reassessment is assumed 

 every 5 years to correspond with the yields, which are for 5-year periods. 

 Owing to the very rapid growth of loblolly, or old-field pine, in the coastal 

 region of the Carolinas, Virginia, and Maryland, the first yields can be 

 obtained in 25 years under favorable conditions. The figures indicate a 

 cut of 12,000 feet at that age from fully stocked stands. This is of timber 

 averaging nearly 8 inches in diameter, which is suitable for boxes and crates. 

 At 40 years the estimated yield is 19,000 feet per acre of timber averaging 

 10.6 inches in diameter, which will make small lumber or railroad ties. 

 The estimated cost is $3.42 per thousand under Case 1, and $3.48 under 



