172 FOREST VALUATION 



grade is obtained and a per cent of this price taken equal to the 

 per cent of the total stand represented by the given grade. 

 These fractional prices, when totalled, give an average price 

 weighted both by quantity and value for the grades ex- 

 pected.* 



The second plan depends upon "mill run" prices. In the 

 absence of stable central markets, average prices for the total 

 output of mills, termed mill run prices, are advocated. This 

 method is defective for several reasons. The higher the average 

 prices for lumber, the more profitable it becomes to manufacture 

 low grades. In periods of depression these grades may be left 

 to waste hi the woods. An increased output of cheap grades, 

 which always follows higher prices, may actually lower rather 

 than raise the average mill run prices for lumber. Again, when 

 prices are based on average mill run, the per cent of grades 

 sawed may not coincide with those which can be produced from 

 the timber to be appraised, either because the mill may have 

 been cutting in timber better or poorer than the average, or, 

 because the timber to be appraised may be better or poorer 

 than the average. Mill run prices for timber known to be of 



* The following figures, used in determining the average price of lumber in con- 

 nection with a recent timber sale in Washington, were furnished by Asst. District 

 Forester, F. E. Ames, U. S. Forest Service, and serve to illustrate this method. 



DOUGLAS FIR GRADES, PRICES AND AVERAGE VALUE 



No. i V. G. Flooring 3% @ $26.00 $0.78 



No. 2 V. G. Flooring 5% @ 23.00 1.15 



No. 2 and Bet. F. G. Flooring 3% @ 15.00 .45 



No. 2 Clear and Bet. Finish 5% @ 26.00 1.30 



No. 2 Clear and Bet. Siding and Rustic. . 4% @ 17.00 .68 



No. 3 Clear Flooring. Siding and Rustic 8% @ 13.50 1.08 



No. i Shop 4% @ 16.00 .64 



Car Sills 6% @ 16.50 .99 



Timbers 15% @ 10.30 1.55 



Dimension 28% @ 9.10 2.55 



Boards and Shiplap 12% @ 8.75 1.05 



Dunnage 7% @ 6.00 .42 



$12.64 



The grade prices represent the average of the quarterly averages from July i, 

 1911 to July i, 1914. Underweights not included. 



