22 



Possible Profits To Be Derived from an Acre of Sccond-Grozvth 

 White Pine of Various Ages. 





" ■ 







Pkofit. 





Yield. 



Value of 

 land and 



Total cost 







Age. 











wood. 



to date. 



Total 



Average net 













annual %. 



Years 



Cords 



Dollars 



Dollars 



Dollars 



Percent. 



10 





4 00* 



5 50t 



6 57 1 



7 94 

 9 69 







15 





4 00 



4 00 



59 00 







20 



ii 







25 



49 31 



10.9 



30 



21 



109 00 



21 04 



87 96 



11.0 



35 



30 



154 00 



43 81 



110 19 



10.0 



40 



38 



194 00 



80 38 



113 07 



8.8 



45 



45 



229 00 



133 55 



95 45 



7.2 



50 



53 



269 00 



2u7 26 



61 74 



5.7 



55 



65 



829 00 



807 95 



21 05 



3.4 



60 



80 



404 00 



446 37 













* It is assumed that the land is worth $4. and that until the stand is 25 years old it 

 has no greater value. From that lime on the price that the wood will bringis added. 



t This figure is the value of the land plus 12 cents per year paid for ten years, with 

 interest compounded annually at 5%. 



t This and .succeeding figures in this cohimn are 8% of the value at the end of the 

 preceding period, paid for 6 years with interest compounded annually BXh%. 



These figures show that the profits in second-growth white 

 pine may be as high as 1 1 per cent per year where the land is 

 vakied at not over $4 per acre, the annual outlay is not over 12 

 cents per acre, and the stumpage price of the wood is not less 

 than $5 per cord. The interest rate culminates at about the thir- 

 teenth year, yet the lot pays a good profit up to ihe time it is 50 

 years old, and many owners prefer to hold their timber for the 

 higher returns, though the latter years do not yield so high a 

 rate of interest as the earlier. 



In considering this question of profit it should always be re- 

 membered that a low initial cost always prolongs the time dur- 

 ing which a profitable rate of interest can be earned. In other 

 words, if land in this section is worth only $2 per acre instead of 

 $4, the interest accumulates more slowly, and profits are pro- 

 longed in proportion. Further, these figures must be taken 

 only as indicative of what white pine lots may yield in New 

 England. The actual returns from any tract may be higher or 

 lower, according to the local conditions and the way the owner 

 counts the annual costs. 



J 



