FOSEST FUlAirCE 11 



(a) Stumpage (French system) ; 



(b) Log yards (German system) ; 



(c) Manufactured products like lumber, staves, shingles, telephone 

 posts, ties, blocks for carriages, pulp wood, tannin, fence posts, 

 etc. (American system). 



n. — ^Timber yields are ascertained by: — 



A. — Cruising or valuation surveys. 



B. — Yield tables (applicable only to even aged and pure forests, fairly 

 well stocked). 



C. — Volume tables (applicable only to sound trees). 



D. — The increment percentage. 



In the United States, reliable statistics relative to the growth of the forests 

 — especially of second growth — and of the trees are badly lacking. 



m. — Present timber values. 



The present values of timber (stumpage values) depend, for a given species, 

 on the expense now required for its utilization, — notably on the charges for 

 transportation which are governed by: 



A. — Distance from the market. 



B. — Availability of water, ice, snow, railroads and public roads as means 

 of transportation. 



C. — Volume of stumpage per acre and volume on the entire tract. 



D. — Qtiality of the logs (percentage of firsts and seconds, common, cull, 

 mill cull, etc.). 



E. — Climatic conditions (malarial climates, long and cold winters, short 

 logging seasons). 



F. — Specific gravity of timber. 



In the far backwoods, stumpage even of the best trees frequently has a 

 negative value. Near the market, even utterly poor trees assume a positive 

 value, 

 rv. — Future Timber Values. 



The study of future timber values is of paramount importance with the 

 forestal investor. Similarly, the capitalist is interested in the advancing value 

 of real estate, the coming dividends of railroad stock, etc. 



He must consider 



A. — For a cotmtry: The probability of a general change of timber prices 

 due to: 



a. Competition of metals and stone (building stone). 



b. Waning virgin supplies. 



c. Importations from Canada, the tropics and Europe. 



d. Increasing population. 



e. Coming prosperity or coming depression of all industries. 



f. New uses of timber, especially in the spinning and weaving in- 

 dustries, in the food industries, in the production of alcohoL 



g. Wages rising or dropping, 

 h. Gold standard. 



i. Automobile traction. 



