FORESTRY AS A BUSINESS 



517 



THE DEEP, COOL SHADOWS OF A REDWOOD GROVE 



Among the incidental public benefits of forests are health and recreational advantages that justify all the people in sharing the 



costs of protection and perpetuation. 



process of shifting the burden, it will fall on the other 

 party so heavily as to tend to put him out of business. 

 This j)hase of forestry, in its bearing on the question 

 whether it can be carried on by both private and public 

 interests must be discussed frankly and fully. 



As to interest, there is no question that private for- 

 estry must take it into consideration. The same money 

 could be deposited in a savings bank at 4 per cent, com- 

 pounded semi-annually, without risk or attention. Or, 

 it could be invested in productive industry, involving 

 some risk and attention, which would justify a rate of at 

 least 6 i)er cent, compounded annually. Timber grow- 

 ing, being a productive industry carrying the same con- 

 ditions, would be entitled to the same interest. 



This interest would accrue on the investment in the 

 land, the initial cost of securing a full stand of timber, 

 and the annual costs of administration, protection and 

 taxation. 



Here arises a consideration bearing on private forestry 

 that must not be overlooked. It can be carried on in con- 

 nection with a manufacturing business or .separately. If 

 carried on in connection with an established lumber 

 manufacturing and distributing business, private forestry 

 might be practiced at a less rate of interest than when 

 practiced separately. Unquestionably forest renewal in 



connection with an established manufacturing and dis- 

 tributing plant will operate to make that plant and busi- 

 ness permanent instead of temporary, to inake it con- 

 tinuous instead of vanishing. On this account a value 

 wilt accrue to the plant and business that will absorb 

 some of the interest rate. Under certain favorable con- 

 ditions this absorption might reach nearly 100 per cent. 

 In other words, the value incident to making an industry 

 permanent might ofifset the interest charges. But private 

 torestry separate from the conversion and distribution 

 of forest products is another thing. It must show a 

 ^profit on merely growing the timber, just as the grow- 

 ing of agricultural crops must show a profit on produc- 

 tion separately from manufacturing. In this interest on 

 every dollar invested or expended nuist be allowed, if 

 loss is to be avoided. This will apply to all cut-over 

 or other forest land not owned in connection with and 

 as a part of a manufacturing business. If this can be 

 done with reasonable assurance and some prospects of 

 ])rofits besides, it will be practical. If not, then private 

 forestry on such lands cannot be carried on. 



As to public forestry, whether practiced by the Fed- 

 eral or State government, it is a common fallacy to say 

 that there will be no interest to pay. To prove that 

 this is a fallacy it is only necessary to remember that 



