THE APPRAISAL OF DAMAGES 133 



The future net value of each of these crops in the year n is, 

 respectively, when 5 represents either S c , S v or S,, 



F - 



as the expenses continue undiminished. The difference in net 

 value, representing damages, is Y Y' . Discounting this loss 



Y _ Y' 



to the present year a gives - ^- (Oi) 



Under normal conditions, the expected value of the crop cannot 

 exceed 



But if F'<(S + E)(i.o^--i), 



then 7 - Y' > Y - (S + ) (i.o^- - i), 



and damages will exceed the expectation value of the timber. 

 That this result coincides with actual conditions can be easily 

 shown. A damaged crop of timber which will just pay expenses 

 can be left till mature. But what is to be done with a stand 

 damaged so severely that it will not meet these future expenses? 

 Its presence prevents the use of the land for a new crop, yet the 

 cost of removing it is a net loss. Assuming that the timber 



Y Y' 



will be left standing, - should be used whenever Y' can 

 i.op n 



be determined. The total loss to the value of the property 

 rather than to the timber is thus measured ( 1336). 



142. Damage to Immature Timber: Total Loss. When 

 immature timber is totally destroyed or so badly injured that it 

 must be removed if any further profitable use is to be made of 

 the soil, two factors influence the method of appraisal. The 

 soil is released by this removal, and its value advanced from 



$ 



- to S v ( 136). But the value S v is materially altered 



to the injury of the owner. As S v is merely the value of the 

 discounted net income, all future expenses directly diminish 

 this value, as is seen in the formula for S v or 



