Forest Finance and Management 143 



First there is your original investment, with in- 

 terest at the current rate, — compound interest, 

 too, for, as in a different kind of investment you 

 might draw your interest annually and either con- 

 sume or reinvest it, you are evidently entitled to 

 get something for forbearing to draw out of the 

 business. Then there is the cost of maintaining 

 your forest, which will vary considerably according 

 to circumstances. In this item you must include 

 such preliminary expenses of surveying and other- 

 wise examining your forest as may have had to be 

 incurred at the start, in order to make intelligent 

 plans for the way in which you want to manage it. 

 You also include herein the cost of labor every 

 year, the cost of superintendence by a skilled 

 forester, not forgetting to reckon the interest on 

 these items of outlay. Next you must think of 

 the expense incurred for necessary tools and imple- 

 ments, as well as other plant, their wear and tear, 

 and again the interest on the outlay. Still another 

 item of expense will be the preparations for market- 

 ing your crop, which may include not only plant 

 and labor, but also the expense of building roads. 

 Finally, there are taxes to be paid — an item of 

 cost of which we will have something more to say 

 anon. All these things are to be paid for between 

 the beginning of the business and the final harvest. 

 There are, during this interval, certain sources of 

 income from your forest, consisting principally 

 of the money to be made out of material taken 

 away by thinnings and other kinds of improvement 



