Otf STOCK IN NORMAL, FOREST 65 



at all, but is certain to have a value as soon as a certain railway is 

 finished. Similarly a stand of lodge pole may be nearly mature and 

 yet be a few inches below the marketable size ; here evidently the 

 stand has a future value or expectation value, though neither sale 

 value nor an accepted cost value exist. 



In the courts the sale value has always been accepted. Of late, 

 since these matters have been more carefully considered and the 

 evidence has been sufficient and clear, both cost and expectation 

 value have been admitted. For young stands, less than half rota- 

 tion, the cost value or cost of replacing is the more satisfactory. 



e. Value of land and growing stock, together, i, e., value of 

 forest with even age stands. 



This is merely a matter of addition of the values of land and 

 timber. In adding, the question arises as to the use of cost, sale or 

 expectation value of both land and timber. As stated before, this 

 depends on the viewpoint of the person making the valuation. The 

 owner of a tract of timber is apt to use cost values for both land 

 and timber, the buyer will use sale values as far as possible. If the 

 stand is young, he too is apt to employ cost value for the stand, but 

 is quite certain to use the sale value of the land, for it would be use- 

 less to employ cost values where this is zero or at least uncertain. 

 Both buyer and seller should work out the expectation value to get 

 a fair measure and check on all sale value estimates. Since the 

 growing stock is expected to pay rent on the land, the value of the 

 land is not changed by the fact that the stand must remain for twen- 

 ty or more years on the land before removal and so prevents use of 

 the land for other purposes. 



G. VALUE OF THE GROWING STOCK OF A REGU- 

 LATED OR NORMAL FOREST. 



When the State of Michigan starts out to establish a million 

 acres of state forest it must determine: how much capital is to be 

 tied up in this property and how much of it in land and how much 

 in perishable growing stock or trees of all ages from the seedling to 

 mature timber. The same is true of any owner or buyer who con- 

 siders selling, buying or developing a real forest business. The im- 

 portance of the growing stock in such a business is great since it 

 usually makes from sixty to eighty per cent of the entire value of 

 the property. 



