FUTURE VALUE OF FOREST PRODUCTS 203 



hand logging, short drives and heavy timber were succeeded 

 by large operations, which tapped reservoirs of timber of great 

 extent, and distributed the costs over enough stumpage to bring 

 them even below those of the simpler undertakings. When 

 this increasing cost is no longer offset by increased volume to be 

 transported, it at once depresses stumpage values. This means 

 that average quoted prices for stumpage may not rise as rapidly 

 as lumber prices, because the later quotations are for stumpage 

 differently situated. The rise in values occurs, but is evident 

 only for the same or similar timber. 



An important consideration in forest production is the pos- 

 sibility of substituting the cost of growing trees in accessible 

 situations, for the cost of transportation from regions much 

 farther from markets. As accessible timber disappears, the 

 difference in stumpage value between timber easy and difficult 

 to obtain will become larger and larger, and this margin of value 

 can be expended upon forest production on accessible sites. 



192. Local Factors: Industries and Markets. Transpor- 

 tation charges are subtracted from income in arriving at stump- 

 age value. It follows that the farther from the mill the timber 

 lies, the less will be its value. In the manufacture of lumber, 

 portable mills brought to the timber greatly reduce the cost 

 of hauling this lumber to the market by leaving the waste from 

 sawing in the woods. But the greatest value for many woods 

 lies in their use for special products, such as spools, excelsior, 

 boxes, match stock and other specialties. These factories 

 pay larger prices for stumpage since they utilize the tree far 

 more completely and obtain much greater returns on a given 

 amount of wood. Local industries of this character must 

 operate continuously in order to be profitable. They remain 

 in a region as long as they can obtain a sufficient supply of raw 

 material. The reduction of the supply to a point where the 

 mills can only run part time, or must suspend operations for 

 several years, results in driving out these industries. The 

 remaining stumpage must then be marketed at more distant 

 points, perhaps for a less intensive use, and there is a very con- 

 siderable loss in value. 



