ESTIMATE AND APPRAISAL 295 



conditions and up to 20 per cent where the risk is greatly increased. 

 Although the sale is made by estimate and it is considered essential 

 that very accurate estimates be made of the timber marked for cutting, 

 based on a tree-to-tree count, yet, as a matter of fact, errors in estimat- 

 ing occur. This does not necessarily mean a loss to the State, since 

 bidders usually re-estimate lots they intend to bid on; a low estimate 

 by the State merely means that the bid is that much higher per cubic 

 meter or stere and the error in calculating the presumed products is thus 

 discounted. All the State guarantees is that the number of trees in 

 the size classes is accurate. Since the demand for timber is greater 

 than the supply the competition for State and communal sales is suffi- 

 cient to make the price depend upon competitive bid rather than on the 

 minimum estimated price based on the costs of logging, transport, and 

 allowed profits subtracted from the estimate sales price of the product.'' 

 With the exception of a few large sales in the Pyrenees, timber sales 

 are in small lots usually with intensive market conditions. The location 

 of sales has nothing to do with the demands of the purchaser but is 

 planned in the working plan according to the needs of intermediate 

 cuttings and regeneration. If the boundaries of sales do not correspond 

 to compartments the lines are clearly marked with paint. When there 

 are extensive windfalls or where there are insect attacks special fellings 

 are authorized. In communal forests special sales are often allowed to 

 provide mainly for special improvements, such as a school house or 

 town hall. It is as if the forest were a communal bank, safe-guarding 

 the reserve capital of the inhabitants. 



There are three main methods of selling timber: (1) By the lot on the 

 stump; such sales are the rule in France for saw timber sales and for cop- 

 pice. (2) By unit of product; intermediate fellings are sometimes sold 



5* A sample appraisal follows: Francs 



Building material: 60 cubic meters at 45 francs 2,700 



13 cubic meters at 35 francs 455 



Building material (small size) : 300 cubic meters at 25 francs 7,500 



119 cubic meters at 17 francs 2,023 



Fire wood: 45 steres at 7 francs 315 



297 steres at 5 francs 1,485 



Charcoal: 126 steres at 3 francs 378 



Total 14,856 



From which must be deducted the following: 



Contractors' 15 per cent 2,228.40 



FelUng trees 732.00 



Cutting of branches 412.50 



Fuel and charcoal at 2 francs per stere 936.00 



Special work 450.00 



Fuel for local officers 108.00 



Special registration fees 25.00 



Total 4,891.90 



Net value of timber (14,856.00 - 4,891.90) 9,964.10 



Less 5 per cent for special costs 499.00 



Net total value 9,465.10 



