100 FOREST VALUATION 



Estimate of the damage may be set in one of three ways : 

 I. By cost value: 



Value before fire : $800 (i.os 12 ) $ 1434 



30 (i. OS 12 

 Tax and care 480 



(1.051) 



Total $ 1914 



Value after fire: 



Land $400 



Timber 500 



Total - $900 



damage, $1,014. 



2. By sale value : 



Value before fire : land $400 



Timber 400 X 5 2000 



Total $2400 



damage, $1,500. 



In this case it must be shown that the sale value could actually 

 be obtained without delay. The fact that timber is worth $5 stump- 

 age in the particular district is not sufficient evidence. 



3. By expectation value : 

 Expectation value of the 40 before fire : 



Value of timber 400 X 6 $2400 



Value of land 400 



Total gross value in 7 years. $2800 



Expenses during 7 years: 

 3o(i.o5 7 i) 



.$ 244 



1.051 



2556 



Present value 1817 



i.o 5 7 



Value after fire, $900; damage, $917. 



In cases of this kind the value of the young stuff, i. e., the non- 

 merchantable part of the growing stock is usually left out of the 

 calculation, though frequently it has a greater value than the mer- 

 chantable stuff. 



