270 MISC. PUBLICATION 218, U.S. DEPT. OF AGRICULTURE 
Table 109 shows the place of taxes among the carrying charges 
necessary to the growing of forests under the conditions assumed in 
these examples. Carrying charges in this and similar tables (112 and 
115) consist of taxes with interest, interest on the permanent invest- 
ment in land and regeneration, and miscellaneous annual expenses 
with interest, all accumulated through one rotation. These tables 
indicate that for the same site the item of interest on land and regener- 
ation tends to be higher with natural regeneration than with planting. 
This follows from the fact that the initial forest value is higher where 
natural regeneration is assumed. This higher initial forest value 
reflects a net income at the end of the rotation which is higher with 
natural regeneration because of the lower regeneration cost to be 
deducted from the yield, assumed to be the same for the same rotation 
regardless of the method of regeneration. Also, the initial forest 
value affects the taxes, although it is not controlling because the taxes 
apply to subsequent increments of timber value, and the result is that 
only in certain cases the item of taxes with interest becomes higher 
with natural regeneration than with planting. It would appear from 
table 109 that taxes are generally the most important carrying charge 
in growing white pine under the assumed conditions, and they still 
would be the most important even if the item of annual expenses 
were considerably higher on account of increased cost of insect and 
disease control. 
TABLE 109.—Carrying charges for growing white pine in New Hampshire through 
one rotation, on different sites, with and without planting ! 
GOOD SITE 
F ways Interest on land and Miscellaneous annual 
Type of regeneration Taxes with interest regeneration expenses with interest 
| ; 
Dollars | Percent Dollars Percent Dollars Percent 
Planting eee ee 123 69 45 25 10 6 
ING GUT ales Aenean es eats 121 | 69 46 26 9 5 
MEDIUM SITE 
Planting Sars sae ee ee 100 69 34 24 10 7 
IN ature ste ee ee eee 100 69 34 24 10 7 
POOR SITE 
Rlantings =a ee eee 69 69 20 20 11 11 
Ne buna Se: eee een eae 75 70 22 20 il 10 
1 Interest rate used, 3 percent. 
For financial rotations used, see table 108. Sources of data: Columns 2, 4, and 6 refer to text describing this 
table and table 93; columns 3, 5, and 7 by computation. 
Table 110 is a self-explanatory comparison between the gross 
incomes and expenses under the given conditions. In this and 
similar tables (113 and 116) the permanent investment in land and 
growing stock, represented by the land value plus the cost of regenera- 
tion incurred at the beginning of the first rotation, is treated as the 
interest-bearing capital. Expenses include taxes with interest 
accumulated through one rotation, miscellaneous annual expenses 
with interest also accumulated through one rotation, and the cost of 
Iegeneration which is a charge against the yield at the end of the 
rotation. 
