FOUEST PROBLEMS. 215 



at over 22 cents per acre, he should certainly do it, pro- 

 vided that he can make, by reinvesting the proceeds of 

 the sale, 6 per cent, in an equally safe manner. 



If the taxes, or the expense necessary for administration, 

 protection, etc., are 2 cents higher per acre per annum 

 than is supposed in the premises, the owner had better 

 give up the land after the first cutting, unless he can sell 

 it, for in that case its forestry value is negative, the neces- 

 sarj-^ expenses devouring all possible profits. 



If, on the other hand, there is a good chance for the 

 stumpage pi'ices to rise, say at the average rate of 2 per 

 cent, per annum, the cut-over forest has a value of 



4 98 12 



The study of future prices of stumpage is of the very 

 greatest importance for the wood owner. 



30. A WHITE PIXE PROBLEM. 



Premises: A Minnesota lumbemian owns 10,000 acres 

 of White Pine forest, containing 6,000 feet, board measure, 

 per acre, worth S3 per thousand. The agricultural value 

 of the land is S5 per acre, when the timber is removed. 

 Under conservative lumbering, an annual production of 

 300 feet, board measure, per acre can be expected. Taxes, 

 8 cents per acre per annum, and protection from fire, under 

 forestry, 12 cents per acre per annum. Extra logging ex- 

 penses, under forestry, $4 per acre, at the first cutting. 

 Lumber prices expected to double in 35 years (= annual 

 rise of 2 per cent.). Proper growing stock for forestry 

 2,000 feet, board measure, per acre. 



Question: What interest on the investment will forestry 

 yield? 



Points: 1. The investment, to begin with, is 6,000 feet, 



