loo FOREST vai,t;ation 



Estimate of the damage may be set in one of three ways : 

 I. By cost value: 



■Value before fire : $800 (1.05'^) $ 1434 



30 (i.os''— I) 



Tax and care 480 



(1.05— I ) 



Total $ 1914 



Value after fire: 



Land $400 



Timber 500 



Total $900 



damage, $1,014. 



2. By sale value: 



Value before fire : land $400 



Timber 400X5 ....2000 



Total $2400 



damage, $1,500. 



In this case it must be shown that the sale value could actually 

 be obtained without delay. The fact that timber is worth $5 stump- 

 age in the particular district is not sufficient evidence. 



3. By expectation value: 

 Expectation value of the 40 before fire : 



Value of timber 400 X 6 $2400 



Value of land 400 



Total gross value in 7 years. 



Expenses during 7 years: 

 30(1.05'—!) 



.$ 244 



I. OS— I 



2556 



Present value 1817 



1.05' 



Value after fire, $900; damage, $917. 



In cases of this kind the value of the young stuff, i. e., the non- 

 merchantable part of the growing stock is usually left out of the 

 calculation, though frequently it has a greater value than the mer- 

 chantable stuff. 



