A NATIONAL PARK PROBLEM (MINNESOTA). 



PREMISES : It is proposed to establish a national park in 

 Northern Minnesota, on land unfit for farming, stocked with about 

 6000 feet board measure pine timber per acre, worth $2.50 per 

 thousand feet board measure. 



Four thousand feet board measure, per acre on an average, con- 

 sists of mature or hypermature timber, whilst the balance is thrifty, 

 and can be expected to yield by its own growth and by giving rise 

 to a second growth, 150 feet board measure per acre per annum, 

 under conservative management. 



In this case the first logging expenses will by 50 cents per acre 

 exceed the logging expenses under destructive lumbering. 



Taxes, protection from fire and administration will take locts per 

 acre per annum. Five and one-half per cent, interest. — Stumpage 

 prices expected to double in 35 years (corresponding with an annual 

 increase of 2 per cent.) 



QUESTION : Will conservative lumbering, in this case, pay 

 better than destructive lumbering ? 



POINTS: 



1. Under destructive lumbering, the value of the forests is 6000 

 X 2.50 equal to $15 per acre. 



2. Under conservative lumbering, 4000 feet are cut at once, 

 and 2000 feet are left standing as a permanent investment, yielding 

 annually 0.150 x 2.50 equal to 37^ cents per acre, from which fig- 

 ure, however, the annual expenses of locts must be deducted. 



EQUATION : 15 = 10.00 — 0.50 -\- "'^^S 

 * ' 0.035. 



RESULT: Under conservative lumbering, an enterpren- 

 eur's gain of about $2.50 per acre is obtained. Hence conservative 

 lumbering pays better. 



Unless the first logging expenses under forestry are by $3.00 per 

 acre higher than is usually the case, destructive lumbering is finan- 

 cially inferior to conservative lumbering. 



After destructive lumbering, the land is left worthless. Under 

 conservative lumbering $10 are withdrawn from the forest, and 

 there remains a permanent asset of about $S per acre on the 

 ground, yielding S}i per cwt, interest per annum. 



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