148 



FOREST VALUATION 



ing the entire area, and cut at the end of 50 years, thus giving 

 the conditions described under soil rent. Case C is for a stand 

 of all ages. There are here 50 age classes, each occupying one 

 acre. The yield on one acre is cut each year perpetually. 

 This crop may either occupy a separate area as an even-aged 

 stand of one acre, or be scattered as single trees throughout the 

 forest. The results will be identical. Case B is for a forest 

 giving an intermittent yield every 10 years, thus presenting 

 five age classes of 10 acres each. 



Except for this difference in the arrangement and present 

 condition of the age classes of timber, the financial results for 

 these forests are assumed to be identical. The capital value 

 (expectation value) of each forest can be computed as a basis 

 for taxation. 



Table II presents the relation between a tax of 2 per cent on 

 capital value and an equivalent tax on income from sale of timber 

 in each case. 



TABLE II 



COMPARISON OF RESULTS FROM TAXATION OF CAPITAL VALUE OF FOREST SOIL 

 AND OF SOIL AND TIMBER ON A FOREST OF 50 ACRES 



* The cash expenses, 85.00 per acre for planting, and $1.50 per year, or $.03 X 50 for protection 

 af the entire tract, are charged against the area cut over within the period. 



