1906 



FORESTRY AND IRRIGATION 



177 



volved it should be remembered that able advance in land and stumpage 

 no alowance is made for a very prob- values. 



Comparison of la. r collect fd and owner 1 * profit from a forest oj 50,000 acres yielding timber 



worth 2,450,000 after rii/iit// years. 



County's interest. 



Yearly revenue from land $66.67 



Yearly revenue from State .... ... 250. mi 



Yearly revenue from forest, calculated from 



final return . 70*5.65 



Total . 1,1523.32 



Or practically S' + cents per acre = a 1 t per cent on a 

 value of $!. 



Owner s interest. 



Investment: 



Laud at 81 per acre S5o.oo<> 



Capital to produce $666.67 yearly fur 

 land tax and SI. 000 yearly for man- 

 agement 41,ii67 



Total 



91,667 



Receipts: 



Forstumpage 2,450,0C0 



Value of land 50,000 



Capital set aside to pay taxes and 



management .. 41.667 



Gross total .... 

 Less deterred tax.. 



.. 2.511,667 

 389,537 



Net total 2,152'130 



Profit = 4 per cent (atiout) compound interest on 

 the investment. 



CONCLUSION. 



In conclusion, forest taxation is pe- 

 culiarly a legal question which each 

 State must consider individually and 

 without interference from the Nation- 

 al Government. Any enactment must 

 harmonize with the fundamental law 

 and do justice to all interests. Oppo- 

 sition to any measure is sure to be en- 

 countered, and for that reason a radi- 

 cal proposition has some advantage 

 over one which, like an exemption act, 

 would seem to favor a class. Empha- 

 sis needs to be laid upon the point that 

 whereas the ability of most of the 

 States of the Union to acquire forest 

 reserves is limited by lack of revenue, 

 those which contain the largest areas 

 of private woodlands have the power 

 above all others to keep the forest in 

 those places that are naturally adapted 

 to it. 



From these considerations it ap- 

 pears that the actual situation can be 

 met only by accepting a principle in 

 taxation which shall definitely recog- 

 nize the public value of growing for- 

 ests and in its application strive to 

 maintain them as the sources of ma- 

 terial needed in important industries 

 and as valuable climate factors. This 

 means that private property in forests 

 should be taxed with reference to three 

 considerations: (a) Necessity the 

 support of the local government; (b) 

 equity an assessment based upon the 

 actual yield, collection of the tax ( on 

 the trees, not on the land) deferred 

 until the crop is sold, and a recognition 

 of the peculiar risks fire, trespass, 

 etc. to which forests are subject ; (c) 

 encouragement a special rating of the 

 property to compensate the owner for 

 whatever expense attaches to main- 

 taining the forest in a condition that 

 best serves the public interest. 



