76 FOREST VALUATION 



management to a foreman who can follow directions. Such 

 advice is best obtained, for very small areas, through the State 

 forester. For larger areas it is practicable for several owners 

 to co-operate and employ a forester. 



102. Taxes and Insurance. Taxes are separately discussed 

 in Chapter X. Under present systems of taxation they tend to 

 increase and this, coupled with the uncertainty as to the amount 

 and time of these increases, makes it difficult to predict the total 

 cost of this item or prescribe the exact method of calculating 

 it. In this chapter, taxes will be assumed as a fixed annual 

 expense, to be added to that for administration and protection. 



Insurance is not as yet available in this country on growing or 

 standing timber. The owner bears his own risk and losses. 



103. Interest Charges. These do not appear in proprietary 

 accounts except when money is borrowed (91). In cost ac- 

 counts, past interest may at any time be calculated at whatever 

 rate is considered equitable. Since the periods intervening be- 

 tween outlay and income may extend to over 100 years, the 

 interest charges will often be found to far exceed the sum of all 

 actual expenditures. 



104. Classification of Costs in Forest Production. Follow- 

 ing the suggestions in the above analysis of costs, the invest- 

 ments in forest production may be grouped, for computation, 

 into three classes: 



Group A . 



Capital expenditures for 



Land. 



Permanent improvements and equipment. 



Permanent roads and firelines. 

 Group B. 



Crop expenses for 



Standing timber, which is often included with cost of land. 



Planting or cost of regeneration. 



Brush disposal or initial fire protection. 



Weeding. 



Protective operations. 



Thinning. 



