24 



SECOND-GROWTH HARDWOODS IN CONNECTICUT. 



Table 8. — Approximate total cost per cord 1 of cutting and delivering for various wage 

 rates and hauling capacities, including interest charges at 6 per cent for one year. 



Daily hauling capacity 

 for 1 team. 



Teaming 

 wage rate 

 per day. 



Total cost, 

 with inter- 

 est, per 

 cord. 



Daily hauling capacity 

 for 1 team. 



Teaming 

 wage rate 

 per day. 



Total cost, 

 with inter- 

 est, per 

 cord. 





$5.50 

 5.00 

 4.50 

 4.00 

 5.50 

 5.00 

 4.50 

 4.00 

 5.50 

 5.00 

 4.50 

 4.00 



$6.89 

 6.36 

 5.83 

 5.30 

 3.98 

 3.71 

 3.45 

 3.18 

 3.00 

 2.83 

 2.65 

 2.47 



4 cords 



$5.50 

 5.00 

 4.50 

 4.00 

 5.50 

 5.00 

 4.50 

 4.00 



$2. 52 







2.39 

 2.26 

 2.12 

 2.23 



3 cords 





2.12 

 2.01 

 1.91 







1 Cost of cutting alone assumed to he SI per cord. 



VALUE OF STANDING TIMBER. 



BASIS OF VALUE. 



The stumpage values for lumber, ties, poles, and cordwood given 

 in this chapter are derived from the market values and the average 

 costs of operation given in the two preceding chapters. 



The real stumpage value is the difference between the market 

 value and the total operating costs, less a reasonable profit on the 

 combined investment in stumpage and logging. This may be 



expressed as an equation: S = ^ — w~ — C, in which S represents 

 value 



stumpage 

 of profit. 



equation: ^— , 

 M, market value; C, cost of logging; and p, rate 



For any desired per cent of profit on the stumpage and log- 

 ging investment the formula would read as follows : 

 10 per cent:S = if M-C 

 15 percent: S = f$ M-C 

 For a profit of j 20 per cent :S = |M-C 

 25 per cent: S = | M-C 

 30 per cent:S = if M-C 

 To determine the amount of profit, add the stumpage value thus 

 found to the logging costs and subtract the sum from the market 

 value. 



In constructing the stumpage tables it was necessary to assume a 

 definite per cent of profit, in this case 20. When stumpage values 

 for investments at other rates are desired, they should be derived by 

 means of the formula. 



The stumpage values given are applicable only to cases in which the 

 costs of production are the same as those given in the tables. Where 

 the costs differ from the average given the stumpage value can be 

 derived by substituting the actual logging costs for those in the tables. 

 The figures in the tables, however, represent with fair accuracy the 



