THE APPRAISAL OF DAMAGES 123 



enough to be merchantable, can be salvaged. After the great 

 fires of 1910 in the Pacific northwest about 90 per cent of fire- 

 killed timber owned by private parties was marketed. If not 

 merchantable, the inflammable dead material, rotting and fall- 

 ing, greatly increases the fire hazard ( 200). In practically no 

 case does fire bring about a complete separation of the timber 

 from the soil. 



136. Separation of Value of Timber from Value of Soil. 

 As a step in the appraisal of damages it may be necessary to 

 determine separately the value of timber and of soil. 



By Formula G the separate value of timber is 



which gives the value in the year a for the timber by sub- 

 tracting the value S v from the total value of the property. 

 The residual value, land, then equals S v , and if the damage just 

 equals the value of the timber, it may be appraised by this 

 means. But this assumes that the physical separation actually 

 takes place, and that the soil or property S v is left, as a result, 

 in the same condition which it would be in after lumbering and 

 brush disposal. This premise becomes evident by analysis of 

 the above formula which equals 



. 



i.op n ~ a \ i.op n - a / \ i.op 



I.0p n ~ a 



In this form the separate values of land and timber are clearly 



$ 



shown. But the expression S v - - is equivalent to the 



i .op n ~ 



difference in value of S v if freed for use now, and its present 

 value if freed for use only after the lapse of n a years. 

 This difference is equal to the present, discounted or capital 

 value of the interest on S v for n a years, or 



