342 REPORT OF THE FOREST, FISH AND GAME COMMISSIONER. 



of the investment shall be either raised or lowered. Bad investments must 

 be eliminated. Good investments must be added. 



2. Schenck considers, as sources of forestal revenue, not merely the 

 trees but as well the farms, the meadows, the pastures, the minerals and the 

 water powers available on the forest property. 



3. Schenck forecasts the cash revenue obtainable from the adjusted 

 investments — not merely the yield in lumber and wood ; he confronts 

 the forecasted revenue with the revenue obtainable from unadjusted 

 investments. 



4. In plans of conservative forestry Schenck insists on the necessity 

 of permanent protection from fires and of permanent investments to provide 

 facilities of transportation. 



5. Schenck insists that in forestry as in railroading, banking, insurance, 

 etc., calculation at compound interest must be applied to the comparison 

 of receipts and expenses. 



6. Periodic stock taking is demanded, so as to control, from time to 

 time, the actual status of the entire investment. 



7. Trees are either good or bad investments, and should be treated— 

 as individuals or as aggregates — according to their financial merits. The 

 trees are divided into four classes: 



(a) Money makers, promising to increase in stumpage value at 



a rate of interest higher than normal; trees to be preserved. 



(b) Indifferent trees, yielding a normal rate of interest, merely, 



through growth in volume, value and price; trees to be pre- 

 served or cut. 



(c) Idlers, merchantable trees yielding an inadequate rate of 



interest; trees to be cut. 



(d) Weeds, trees of negative value (not merchantable), never 



promising any revenue ; trees usually left to rot. 

 Practical experience in the woods, in the mill and in the office is required 

 to allot a given tree correctly to one of the four classes given. Volume 

 tables are of little use in the determination of the maturity of a tree. 



8. A sustained yield is recommended only when it promises greater 

 safety or higher remunerativeness of the investments. 



