46 



BULLETIX 523_, U. S. DEPARTMENT OF AGRIGULTUKE. 



Twenty per cent of the cost of production is liere allowed for profit 

 in figuring what future ash stumpage, groAvn under forest manage- 

 ment, will be worth, and on this basis Table 18 is constructed, which 

 gives for different costs of production the value of standing ash 

 timber which, when produced, will sell (mill-run) f. o. b., at the 

 different prices indicated. 



Ash stumpage to be used for other purposes than lumber, as for 

 handles, oars, etc., will sometimes be worth more, especially small 

 second-growth trees conveniently located which would not cut out a 

 high per cent of upper grades of lumber because the boards would 

 be too narrow. Stumpage values of ash used in different industries 

 have already been referred to (see pp. 28 to 31). 



Table 18. — Stumpage values per 1,000 board feet for different f. o. h. mill values 

 and different easts of lumhering, allotoing 20 per eent margin for profit on 

 eost of lumhering. 



r. o. b. mill value. 



Cost of lumbering. 1 



S12 S14 



Per 1,000 board feet. 



Stumpage- value per 1,000 board feet. 



$20 

 $22 

 $24 

 $2ii, 

 $28 

 $30 

 S.32 

 $34 

 83« 

 S3S 

 $40 



$8.00 



S5.60 



$3.20 



$0.80 





10.00 



7.60 



5.20 



2.80 



$0.40 



12.00 



9.60 



7.20 



4.80 



2.40 



14.00 



11.60 



9.20 



6.80 



4.40 



16.00 



13. CO 



11.20 



8.80 



6.40 



18.00 



15.60 



13.20 



10.80 



8.40 



20.00 



17.60 



15.20 



12.80 



10.40 



22.00 



19. 60 



17.20 



14.80 



12.40 



24.00 



21.60 



19.20 



16.80 



14.40 



2G 00 



23.60 



21.20 



18. 80 



16.40 



28.00 



25.60 



2.3.20 



20.80 



18.40 



$2.00 

 4.00 

 6.00 

 8.00 

 10.00 

 12.00 

 14.00 

 16.00 



' Cost of lumberin?, including logging and milling costs and depreciation. 



2 Figured by the formula: S= F— (1+rate of interest) times 0, where S=stumpage value, F=f. o. b. mip 

 value, and C=cost of lumbering. 



From the standpoint of management the value of second-growth 

 stands is the important thing, and this in turn depends largely on 

 the proportion of grades which any particular stand will cut. Table 

 19 indicates the proportion of the different grades cut from second- 

 growth white ash under 75 years of age of different diameters from 

 comparatively straight and sound trees, such as would be grown in 

 properly managed second-growth stands. The second half of this 

 table shows mill-run value f. o. b. mill per 1,000 board feet of trees 

 of different diameters, taking the following f. o. b. mill prices for the 

 different grades: 





Firsts 



and 



seconds. 



No. 1 

 common. 



No. 2 

 common. 



No. 3 

 common. 



High 



$60 

 50 

 40 



$35 

 30 

 25 



$25 

 20 

 15 



$15 



A verago 



10 





5 







