FOKEST COVER IN PROTECTING RESERVOIRS 
13 
timber, can reasonably be expected at the end of 40 years from such 
a site. (PL 9.) 
The present general value of the timber of this tree in stands 40 
years old is about $3.50 a thousand board feet, log scale. During 
the past 40 years, timber of this kind has increased in value at the 
rate of about 5 per cent compounded annually, or from about 50 
cents to $3.50 a thousand board feet (disregarding the shrinkage in 
the purchasing price of the dollar). In case timber of this kind, 
instead of continuing to increase in value at a rate of 5 per cent, 
should increase at a rate of 4 per cent during the next decade, and 
at a continually declining rate each subsequent decade to the end of 
the 40-year period, so that the average rate of increase for the 
entire period would be 2.6 per cent compounded annually, its value 
at the end of that time would be $9.51 per thousand board feet. 
(Fig. 4.) It is believed that the rate of increase will as a matter 
of fact greatly exceed this. Cordwood of a character suitable 
for paper-pulp stock will probably have a value of not less than $2 
per cord at that time. There could thus reasonably be expected from 
UTILITY VALUE OR CAPITAL VALUE 
OF STORAGE PRESERVED 
PRESENT VALUE OF STORAGE 
PRESERVED DURING 40 YEARS 
$200,000 $400,000 
>ECADE-$250,000 $179,731 
TOTAL 
Fig. 3. — Present value, by decades, of $1,000,000 utility value preserved by reducing 
erosion 
planted stands a gross return of $200 per acre (the computation 
shows $200.12), of which approximately $163 would come from the 
sale of saw-timber stock and the remainder from the sale of cord- 
wood. Such figures undoubtedly seem extremely high, but they are 
not out of proportion to the increase in the value of timber of the 
same class which has already taken place in Maryland, and are at 
a considerably lower rate than the increase in value which has taken 
place in the case of second-growth white pine in New England. 1 * 
Taxes on such land can be assumed at 20 cents an acre a year, total- 
ing, with interest at the current rate of 6.5 per cent a year, $36.66 
at the end of the period of growth ; while the cost of protection can 
be assumed at 3 cents an acre a year, likewise compounded at a rate 
of 6.5 per cent for 40 years, totaling $5.50 per acre. If these two 
items of expense, amounting to $42.16 are deducted from $200.12, the 
estimated total gross receipts from the sale of the timber, there is a 
balance of $157.96. 
14 During the last 25 years second-growth white pine in middle New England has in- 
creased from $2.70 a thousand board feet in 1899 to $14 per thousand board feet in 1924, 
or at a rate of more than 6.5 per cent compounded a year. 
