NATIONAL FOREST RESOURCES 193 



inated. The timber is protected from fire by the 

 United States throughout the life of the contract. 

 The money deposited to secure cutting in advance 

 of the execution of the contract may be credited 

 towards the amount to accompany the bid. 



Stumpage Rates. The minimum stumpage rates 

 applicable in each proposed sale are determined by 

 a careful study of the conditions in the particular 

 case. Stumpage rates are the actual market value 

 of the timber. They are based upon the quality of 

 the timber and the character of its commercial prod- 

 ucts ; the estimated cost of logging, transportation, 

 and manufacture; the investment required on the 

 part of the operator ; the selling value of the prod- 

 uct; and a fair profit to the purchaser. The esti- 

 mated profit depends upon the size and the per- 

 manency of the operation and the degree of risk 

 involved. The cost of brush disposal, protection of 

 young growth, logging only marked timber and 

 other requirements of the Forest Service is fully 

 considered in appraising stumpage rates. 



Timber is ordinarily appraised at the rates indi- 

 cated for the most valuable products to which it is 

 suited and for which an established market exists. 

 Merchantable dead timber is appraised at the same 



