22 Forest 'Management 



sist of all of the following components— whilst only No. i, No. 2 

 No. 8, No. II and No. 12 are considered essential: 



(a) Natural components: 



1. Soil. 



2. Trees. 



3. Fish and game. 



4. Minerals. 



5. Water power. 



(b) Semi-natural components: 



6. Pastures. 



7. Farms and orchards. 



(c) Artificial components: 



8. Permanent means of transportation. 



9. Logging appliances. 



10. Industrial establishments. 



11. Means to prevent and to subdue forest fires. 



12. Surveys, maps, working plans. 



13. Ranger houses, workmen's houses, lumber camps. 



14. Nurseries. 



15. Silvicultural improvements. 



16. Capital set aside to defray taxes, protection, administra- 



tion and other current expenses. 



In the case of well-stocked virgin woods, the aggregate final invest- 

 ment is likely to be lower than the original purchase price of the forest, 

 When the virgin forest contains a surplus of mature timber exceeding in 

 value the expense required for the establishment of the essential arti- 

 ficial components. 



In the American forests, after the usual lumbering operations, very 

 little is left of the natural components; as a consecLuence, relatively 

 heavy additional investments, are required (as a rule without a chance 

 of deriving immediate revenue) in order to make the aggregate, in 

 time to come, a permanent source of revenue. 



The conclusion is simple; Unless the owner, before he begins to 

 operate primeval woods, decides to embark in conservative forestry, 

 the chances are slim that he will ever embark in it. 



In German working plans the necessity of ascertaining the most op- 

 portune amount of capital to be invested in forestry is invariably over- 

 looked. The explanation lies in the following: 



1. The value of the growing tinjber and of the soil comprises, say, 

 95 per cent, of the investment. 



2. The means' of transportation are already at hand, developed at a 

 time at which financial considerations were not made in forestry 



The "period of installation" should cover as many years as are re- 

 quired to obtain the proper total and the proper composition of the 

 forestal investment. 



