FOREST TAXATION IN THE UNITED STATES 241 
obtained for nothing. Here, as elsewhere in this report, interest or 
return on the investment is compounded annually until realized. 
The growing of naturally regenerated white pine with an initial 
investment of $6.32 per acre for weeding would return 3 percent 
under the assumed conditions if good and medium sites could be 
bought for not more than $10 and $5, respectively. Poor sites under 
these conditions would not yield 3 percent unless they could be 
purchased for as little as $0.30 per acre. 
Table 93 also shows the tax ratios.*' These were computed by 
means of formulas developed in part 3, pages 56 to 59. The marked 
influence of changes in the tax rate on the tax ratio is clearly shown 
in this table. A 1-percent tax rate results in tax ratios of 46 to 49 
percent, while a 3-percent rate gives tax ratios of 79 to 84 percent. 
At the average tax rate for the three selected New Hampshire towns 
of 2.4 percent, the tax ratios for the growing of natural stands are 
73, 74, and 77 percent, respectively. 
Pine 1N NortH CaRrouina 
The yields of fully stocked loblolly pine (107, table 53) supplied the 
basis for the assumed money yields of loblolly pine in North Carolina. 
The yields given in the publication referred to were first converted 
from the International -inch to \-inch rule (converting factor 
0.905). 3 The yields were then multiplied by the following stumpage 
prices. 
PAD) BEETS) 2h NSN ech S00 SIE RM UNE Ye hat et De IN Nes ga Dap EE $4. 75 
SOB CSch eee ee eR mae er Ne A kaki Ne ae 5. 00 
ANY) Si SEE TASER AY I CS ISIS STS ape a ta SS eM eC TY aN NL aS 5. 25 
ES OY SCENE SI AU A RA I) eo Rea aly ON et Sea 5. 50 
LLU SeY 2 ey a AN OA he ga eae CA SP lg 6. 00 
CAD) SVEN ss OT oe ER CIE MEN aL seu Be MR De A aay ER MILI 6. 50 
SORE AT SE apie (lyn Ue ewan ae Maren ge eth e eyg . EO pt Tk  et man 2B 7. 00 
The stumpage values so derived were then reduced by 20 percent 
to allow for understocked stands and also by $0.025 per acre per 
year for losses. The assumed money yields are given in table 94. 
TABLE 94.—Assumed money yields, loblolly pine in North Carolina ! 
Stumpage value per acre Stumpage value per acre 
ae Medi ae Medi 
; edium : : edium : 
Good site Site Poor site Good site Sita Poor site 
Dollars | Dollars Dollars Dollars | Dollars | Dollars 
20 Cars Sse 25 9 OF R6Obyearse sess 226 148 81 
30; years= 222 79 44 LO OMVGATS ea ae eee 266 Wee 101 
40 years eis 134 83 iL NSO vearsae eee 305 204 120 
5O0nvearse at set 180 116 59 
1 Basis for these assumed money yields is given in the text. 
Loblolly pine may be planted at an average cost of about $6 per 
acre (102, p.102). It may also be regenerated by various silvicultural 
systems, such as leaving of seed trees or selective logging, the only costs 
81 The tax ratio has been defined (pt. 3) as the ratio of taxes to net income before taxes, both compounded 
or discounted as the case may be, to the same point in time, and both covering the same income cycle. 
82 Interpolated from stumpage prices as of 1929 given in an unpublished manuscript of the Southern 
Forest Experiment Station on the forest industries of Beaufort County, N. C 
101285°—35 16 
