LOGGING PRACTICE IN THE LAKE STATES Sik 
TABLE 7.—Stumpage prices per thousand board feet for beech, birch, maple, 
and aspen for certain years, and average annual increase in price, 1900-1924 
Beech Birch Mapl Aspen 2 
Cc aple yee p 
SS), GIRS = 
Year Average Average Average aaa Average 
Price | annual | Price | annual | Price | annual | jp croase| Price | annual 
increase increase increase increase 
LOOQ MS ere eee eR eens SISSON ee S126) | sees one CSS Kl at ed | AA eG Cee iy eh pe Ae 
TOO Ae. trepicial el, 93 Hs De, 1.90 $0. 08 1.85 $0. 04 2.05 $0. 06 SO OG ais Se te el eee eee 
TROT O as SRI ei 2. 65 15 3. 40 saul 3. 40 2 GA A eBSES Gay) eee 
POLE: Setae 2 URN ye ee 2. 90 05 4, 35 .19 4.40 20 15 1.70 $0. 01 
BLOND i a | 5. 00 42 4.90 a lUL bay, OAs 17 23 2.05 
LODAIEE RE a Ar OY 6. 65 33 6. 50 noe 7. 20 39 35 2.30 06 
1 Average annual increase in stumpage price for 25-year period, $0.21. 
; ane annual increase for 15-year period, $0.05. 
1910. 
If these rates of increase continue, stumpage prices should double 
in about 40 years. 
The increase in stumpage prices for trees of the smaller sizes or 
for trees that have low stumpage value is greater than that for 
trees already having a fairly high stumpage value. Thus, a present 
stumpage price of, say, $6 a thousand increasing at the rate of 21 
cents a year, with taxes at the rate of 1 per cent of the actual 
value and other holding costs at 1 cent a thousand board feet, nets 
the investor approximately 2 per cent on his investment from the 
gradual increase in the market price of his stumpage. On the 
other hand, timber worth to-day, say, $2 a thousand board feet and 
increasing in market price at the same rate nets the holder 8.5 per 
cent from this increase. 
The increase in the volume of timber through growth in the Lake 
States, under forest management, will not exceed 3 per cent a year. 
The increase in the quality of the timber as it increases in size can 
be set probably at not less than 1 or 2 per cent per year, while the 
decrease in depreciation of the sawmill or pulp-plant equipment 
may prove a saving of another 1 or 2 per cent per year. 
There is still another advantage to manufacturers of wood pulp 
or other wood products in having a permanent supply of raw mate- 
rial. Some pulp men buying their raw material are actually figur- 
ing the profits only on the manufacture of the pulp and paper, with 
no profit on the raw material. It is entirely conceivable that some 
pulp-and-paper men owning their timberlands would be willing to 
raise their own raw material without any profit if they were assured 
of a continuous supply. The business of growing timber can not, 
therefore, be entirely separated from the business of manufacturing 
it. Wood-using plants which have their own timber supplies are in 
a far more advantageous position to manufacture the product than 
concerns that have to buy their raw material outside. This, of 
course, is on the assumption that all other conditions are the same. 
SUSTAINED YIELD—THE BASIS OF FOREST MANAGEMENT 
Continuous forest production is the backbone of forest practice 
and industrial stability. Without the assurance of a permanent 
supply of raw material in the region the permanence of the wood- 
