THE PUHIPUHI KAURI FOREST, 67 
The virgin-forest timber of the Puhipuhi Forest (with a present-day 
royalty value of two millions and a half, and a sawn-up value of six 
millions and a third) represents after all but one crop of timber, while 
the forest, under modern forestry care, would have continued to produce 
crops of timber in perpetuity. When the crop of virgin timber was 
worked off that should have been succeeded by more valuable crops of 
regrowth timber, since this (under foresters’ care) would have been in 
denser stand, straighter, and more uniform in size. Now, what would 
be the value capitalized of the future timber crops from the cultivated 
forest ? 
The 17,000 acres of the old Puhipuhi State Forest was composed 
(p. 60) of (2) some 5,667 acres of pure Kauri forest, and (4) 11,334 acres 
of scattered Kauri, Totara, and mixed forest. There are only partial 
records of the value of the timber on (b). The value of the timber on the 
5,667 acres of complete Kauri forest discussed above would be as 
follows :— 
It was remarkable for the quantity of young Kauri it contained, so 
that foresters could have treated it straight away as a normal Kauri 
forest, and the revenue and expenditure would have been those shown 
at page 98, less some deduction for the fact that at the next cutting 
in twenty to forty years Kauri might not yet be fully double its present 
value. On the other hand, the acrim in this world’s best Kauri forest 
would naturally be more than that (100) assumed for the normal Kauri 
forest. I will therefore value on the basis of the normal Kauri forest, 
being practicable now, without any transition period. Then 5,667 acres 
x £270 (the capitalized value of the normal Kauri forest, p. 99) = 
£1,530,090. 
Summarizing the national loss in the destruction of the Puhipuhi 
Forest, we have :— 
LOSS IN DESTRUCTION OF PUHIPUHI KAURI FOREST AREA. 
Valte of the Kauri timber in the virgin forest £ 
at present-day royalty rates of Kauri ... 2,555,150 
Loss of future Kauri crops, adopting only the 
figures of net value for a normal cultivated 
Kauri forest (p. 99) and capitalizing at 
4 per cent. sia 1,530,090 
Gross loss... A 4) ... 4,085,240 
At first sight it may seem remarkable that the capitalized value of 
all the timber crops should be less than the value of the one heavy timber 
crop from the virgin forest; but the first figure here is the accumula- 
tion of some 233 years of unreaped Kauri crops ready to be cashed, while 
the time-element lays a heavy discount on the present value of future 
timber crops. Comparative values of present and future timber crops 
in the normal Kauri forest will be found at p. 99. All the above cal- 
culations are on a 4-per-cent. basis. As mentioned at p. 99, 24 per 
cent. and 3 per cent. are commonly accepted forest percentages in 
Europe. At 3 per cent. the capitalized value of future timber crops at 
Puhipuhi would be 5,667 acres x £360 (p. 99) = £2,040,120. 
$? 
