128 FOREST VALUATION 



138. A Basis of Damages: Sale Value. Sale value is a far 

 more reliable indication of damage than cost. In forest property, 

 it is always a question as to whether the timber destroyed or 

 removed can be valued separately, and by this means the loss 

 in value to the property as a whole be determined. 



The ultimate sale value of the timber is a reliable basis for 

 damages, as it is the basis of capital value not only for the tim- 

 ber but for the soil as well (Chapter VII). Whenever timber 

 is destroyed which has a present sale value, this value must be 

 ascertained, and will be accepted as the measure of damages 

 for the timber destroyed, unless it can be proved that other 

 damage has been suffered. If the timber is young and growing 

 rapidly, or if it is at present inaccessible but certain to be de- 

 veloped in the near future, its present stumpage value or sale 

 value may not represent its true value to the owner, who intends 

 to hold it. By proving with reasonable certainty the existence 

 of this higher value, sale value even for merchantable timber 

 can be set aside. But the burden of proof is on the owner, and 

 courts will accept sale value for timber unless a strong case for 

 higher values can be shown. 



The loss in sale value of the entire property is not so easily 

 gauged. It is a great advantage to be able to value the income, 

 in the form of timber, rather than to judge of the effect of this 

 loss of timber upon the selling value of the property. In theory, 

 the latter loss more accurately gauges the damage ( 133^). 

 There are cases when the value of the materials destroyed is 

 wholly inadequate as a measure of the loss resulting to the 

 owner. 



The most direct case is where a portion of a large stand is 

 destroyed, appreciably reducing the total amount that may be 

 logged. This raises the cost per thousand feet, or unit, for 

 logging the remainder ( 98 and 174). The increased cost is 

 subtracted from stumpage value of the remaining timber. The 

 total loss is equal to the sale value of the timber burned plus 

 the loss in sale value for the entire remaining body of timber. 



A woodlot frequently adds materially to the sale value of a 

 farm. Its destruction would represent a loss many times greater 



