176 FORESTRY AND IRRIGATION April 



were cut and then collect a definite that sum yearly for fifty years. It is 



proportion of the net yield for each manifest that the accepted rate cannot 



year that tax has been unpaid. The be the same as that applied to the land 



difficulty naturally is to determine 2 per cent on a two-thirds valuation 



what that proportion should be, and it for when continued for fifty years 



can only be settled by applying the the sum of the taxes amount to nearly 



principle to concrete cases. half the final value of the crop. Such 



But it is possible to find an illustra- a proportion is prohibitive, and it must 



tion in an example of a forest grown be admitted that forests cannot pay the 



on ground that is now bare. Let it be high rates commonly levied on real 



assumed that 50,000 acres of pine land estate at least, not until the crop is 



in Michigan, valued at $1 per acre, worth relatively more than it is now. 



will vield, eighty years hence, 350,- Thls fact 1S strongly emphasized if we 



000,000 board feet of lumber, worth l S nore a11 rebates and allowances and 



$7 per thousand on the stump. The sa >' that the forest sha H PW l ^ P er 



figures are conservative, and if a cent of lts va!ue y ead y- El ht y times 



voting forest be already started on a lJ A P er cent e( l ua l s Io6 ^ P er cent : m 



portion of the area, so much the better. other words > the whole cro P would not 



If the local tax levy is 2 cents, on a P a ^ trie tax - 



two-thirds valuation, the land will pay For the purpose of the present illus- 

 to the county l 1 /^ cents per acre, or tration, it may be assumed that the 

 $666.67 P er year. Then, if the State rate is one-half of 1 per cent, and, 

 pay half a cent per acre on account of the again, that money is worth 4 per cent, 

 public utility of the forest (see table) The total return at the time the timber 

 the county will receive $250 more, is cut will then be $389,537, or about 16 

 or a total of $916.67 yearly. In prac- per cent of the stumpage price. It is 

 tice, the forest would begin to yield possible that in some cases the county 

 something after thirty or forty years, might claim more. The figures in any 

 but for the sake of simplifying the cal- event would depend largely upon the 

 dilation let it be assumed that it is all length of time involved ; but bearing 

 cut at the end of eighty years. How in mind the importance of encouraging 

 much of the sale price should the the owner to keep his forest standing 

 county get? The forest at 1 year old the proportion may be accepted as 

 is actually worth nothing, hence no tax about what should be paid. The coun- 

 can properly be charged against it. At ty is distinctly better off than it would 

 2 years old it is nearer maturity, but be under the present system, for, in- 

 still has only an "expectation value," stead of uncertain returns or no reve- 

 based upon what the mature trees may nue at all, if the land were relinquish- 

 yield. In short, the value increases ed, it has the assurance of a reason- 

 Near by year from nothing to $2,450,- able yearly revenue from the land, and 

 000. when it is 80 years old. a lien upon the mature forest for a 



The values upon which a tax might further sum which, discounted at 4 per 



be levied each year are thus difficult cent ' 1S ec l ual to $706.65 a year. 



to determine, but an average may be This example does not pretend to be 



assumed to be the expectation value exact in any respect; it is purely illus- 



ol the forest when it is 40 years old. trative ; yet if the land value, the yield, 



That is $2,450,000 discounted at 4 per and the interest rate be accepted as 



cent, for forty years, or $510,310. reasonable, the following table will 



Then if exemption were allowed for show that both owner and community 



the first thirty years the collectible tax are treated fairly. If the owner's 



would be the accepted rate paid on profit appear too small for the risk in- 



