LIBRARY OF CONGRESS DDD04Db43aA Ov-. .,> ^:rv ^<. ^•" .^" ^^ .^'"*. 3>' A The Forest Tj-pes of the United States Frontispiece The Valuation of American Timberlands BY K. W. WOODWARD Professor of Forestry, New Hampshire College. Formerly Forest Inspector, U. S. Forest Service NEW YORK JOHN WILEY & SONS, Inc. London: CHAPMAN & HALL, Limited 1921 <^^\ ^ COPYMGHT, 19 2 1, BY K. W. WOODWARD DEC 10 1921 ^^ ^ .1 TECHNICAL COMPOSITION CO. CAMBRIDGE, MASS., U. S. A. g)C!.A6530i54 To DR. BERNHARD E. FERNOW IN GRATITCTDE FOR HIS HELP AND ENCOURAGEMENT AND ADMIRATION OF HIS ACHIEVEMENTS PREFACE This book is intended to supply certain information needed by the investor, timber cruiser and student of forestry. In other words, it aims to give for the continental United States and its outlying territories the principal facts regarding the timber resources. Hawaii has been omitted because its timber is useful mainly for its protective value and cutting in the commercial sense is only possible on a very limited scale. Likewise, the Canal Zone is not attractive to either the sawmill man or timberland investor by reason of the restricted area of American territory. The investor will find data which will not only enable him to form a notion of what the examination of a tract should cost but he should also get the salient features of the general type of which his particular holdings are but a small part. This work tries to give those basic facts upon which a superstructure of detailed knowledge concerning a particular tract may safely be erected. To the estimator or timber cruiser, likewise, it cannot take the place of first-hand observation as far as the appraisal of any given area is concerned. It should, however, show him what to look for and help him to keep that sense of proportion without which his reports may easily give a wholly wrong impression. For the student of forestry it should fill an additional purpose. Few attempts have previously been made to gather together in one volume descriptions of the forest types of the United States. We have simply had detailed studies of isolated regions. With these latter as a basis, however, an attempt is here made to evalu- ate American forest conditions and compare the forest types with each other. This leads inevitably to the application of the principles which the student has learned in his courses in protec- tion, silviculture, utiHzation and management. In other words, it is hoped he may here acquire some of the local color necessary to give vividness to the framework of fundamentals he has con- vi PREFACE structcd in the classroom. The book was written to serve as supplementary reading in this way. A forest type as here used is an area which has essentially the same chmatic, topographic, and soil conditions, and hence tends in the long run to have the same composition. A subtype is a subdivision of a forest type in which the composition is uniform. A word of explanation seems necessary in regard to prices now that the War has so radically disturbed all our preconceptions of market values. Obviously it is impossible to keep such a work as this absolutely up to date. Care has, however, been taken to give dates for all prices cited as that proper allowance may be made. In general it may be said that the prices of 1920 are roughly double those of 191 5. Furthermore, wherever possible, costs are expressed in terms of man and horse hours as well as dollars. Acknowledgment is, of course, due the Forest Service for its courtesy in allowing the free use of its large store of data. TABLE OF CONTENTS Page I. Northern Spruce Type i II. Northern Hardwood Type i6 III. White Pine Type 29 IV. Swamp Type 48 V. Southeastern Pine Type 52 VI. Southern Bottomlands 6i VII. Southern Hardwoods 71 Vni. Pinon-Juniper Type 81 IX. Chapparal 84 X. Western Yellow Pine Type 87 XI. Lodgepole Pine Type 95 XII. Engelmann Spruce Type 99 XIII. Silver Pine Type 104 XIV. Sugar Pine Type 112 XV. Redwood Type 122 XVI. Sequoia Type 128 XVII. Douglas Flr Type 129 XVIII. Alaska 138 XIX. Porto Rico 148 XX. Philippines 152 XXI. Timber Valuation 163 XXII. Land Valuation 219 XXIII. Titles 230 XXIV. Outline for a Report on a Tract of Woodland 238 CHAPTER I NORTHERN SPRUCE TYPE General Conditions. — To this type of timberland belong the North Woods of Maine, the upper slopes of the White Mountains, the higher Green Mountains, the summits of the Adirondack and Catskill Mountains, and the northern swampy parts of Michigan, Wisconsin and Minnesota. Furthermore, a slender string of isolated spruce-clad peaks extends southward along the backbone of the Appalachian range and consequently some spruce is found in Pennsylvania, West Virginia, Virginia, North Carolina and Tennessee. The distribution of the type is shown graphically on the accompanying map. Thruout its range spruce is most abundant in a cool, moist climate with long winters and heavy precipitation. Seldom is the growing season more than four months long and the annual precipitation must be at least 40 inches or supplemented by slow drainage. This means that there is an abundance of moisture available for tree growth because the long winters inhibit runoff and the cool summers are unfavorable to rapid evaporation. These climatic conditions only occur on the steeper upper slopes of mountains and in flat swamp land. On both sites the soil is shallow but the spruce is well able to make the most of the scant foothold with its flat, widely extended root system. Likewise its common associates are trees of similar habit like the balsam, paper birch and yellow birch. However, by reason of its greater adaptability to such untoward conditions, spruce tends to crowd out its competitors and form nearly pure stands if given time enough. Hence the subtypes are generally transition types caused by fire or cutting. The more imporant of these and their composition by volume and number are: NORTHERN SPRUCE TYPE COMPOSITION OF SUBTYPES — SPRUCE TYPE Species Virgin subtype Cutover subtype Burn subtype Number Volume Number Number Per cent 60 30 10 Per cent 80 10 10 Per cent 10 15 40 35 Per cent 10 Balsam Paper Birch. . . . IS 30 45 100 100 100 ICX3 The virgin subtype varies considerably in composition with the altitude. At the upper edge of merchantable growth there is a large admixture of balsam, while at the lower edge where it merges into the hardwood type yellow birch and paper birch are the important associate species. The composition percentages given above are most representative of conditions in the middle of the altitudinal range of the type. There spruce is the dom- inant species, numerically and in volume, while balsam, paper birch and yellow birch are merely unimportant associates. An average stand is loM feet B. M. per acre although stands of 20 or 30M are not uncommon. In the virgin subtype little damage is the rule, not because there are no serious enemies but for the reason that fire, insects and wind may wipe the subt3rpe out, but they seldom affect it in a moderate degree. It is a case of total immunity or complete destruction. When the subtype is dry enough to burn the fire usually kills the young trees, jumps to the crowns of the older timber, and also eats up the shallow layer of soil. In the same way wind makes wide swaths or throws over the timber on entire mountain slopes if it once gets a leverage on a stand of spruce. Likewise, the great insect enemy of this species, the spruce beetle {Dendroctonus piceaperda) is a believer in no halfway measures. Working in large colonies it systematically kills all the timber that comes in its way. Fortunately little fungus damage occurs in this subtype. The culled, cutover and burned subtypes are the result of GENERAL CONDITIONS 3 various degrees of lumbering and neglect on the virgin subtype. The culled stands are few for two reasons. In the first place even the early logging was comparatively clean because where it paid to cut the spruce on the upper slopes at all it was worth while taking nearly all the stand because it was of uniform size. The most recent logging has, of course, been clean because the demand for pulpwood furnished a market for all material down to a top diameter of four inches inside the bark. Furthermore in cases where culling has been attempted in the virgin spruce sub- type much blowdown has invariably resulted and the final out- come been identical with clean cutting. The cutover subtype is then the most common where the logger has reached the spruce type. Even the paper birch has often been cut in order that the spruce and balsam might be rolled down over it. As a result this subtype is usually completely stripped of its standing trees. What cannot be marketed is left to rot on the ground. Fortunately, however, tree growth quickly reestablishes itself if fire is kept out. First, pin cherry and paper birch take possession of the ground and then spruce and balsam come up under their shade. If given time enough the two latter species distance the two first-named short-lived trees and the stand becomes nearly pure softwood. Furthermore, competition between the spruce and balsam is commonly more favorable to the former because of its greater persistence. The balsam is very subject to heart rot — Polyporus schweinitzii — and it is rare that a tree over 15 inches in diameter survives. The restocking of the burned subtype is not rapid since fire is peculiarly destructive in the spruce type. Usually the weather is too cool and moist to permit fires to start but in droughts the thick layer of humus becomes very inflammable. Especially is this the case where logging has opened up the stand and left debris. Some of the most destructive fires in the unusually lurid forest-fire history of the American continent have been in the spruce type. Such fires are combined top fires and ground fires. Everything is consumed and only the bare rocks are left. Examples of the results of such fires are furnished by the bald summits of Monadnock, Chocorua and Baldface in the White NORTHERN SPRUCE TYPE Mountains and the recently cutover and burnt slopes of Mt. Mitchell in North Carolina. OPTIMUM GROWTH IN loo YEARS Spruce Balsam. . . . Paper birch. Diameter Inches lO II Height Feet 70 83 Density Trees 415 Yield per acre Board feet 7400 5500 This table shows the optimum diameter and height growth for the important species in this type on a rotation of 100 years. The density and yield per acre are also given. From these it is evident that the short growing season is not favorable to rapid diameter and height growth and that the stands per acre are only heavy by reason of the great density of the trees. There is a marked difference between the northern spruce and southern Appalachian spruce. The latter grows faster in diameter and height but the trees do not stand so close together. Generally speaking the most profitable rotation for this type is at least 125 years. Timber Valuation. — There are several factors which make estimating in the spruce type comparatively easy. The tracts are usually large so that boundary difficulties are not serious. Furthermore, the stands are uniform, the species few and damage slight. On the other hand the tracts are usually inaccessible so that the cost of subsisting an estimating party is high. Supplies frequently have to be brought in on men's backs because horses cannot be used off the roads. Even these are in many cases impracticable for hauUng except when covered with snow. Another obstacle to cheap work is the roughness of the mountain slopes upon which the spruce grows and the density of the under- growth. As a consequence an average day's work in this type is 24 strip acres — i chain (66 feet) wide and 240 chains long. However, only a small percentage of the tract need be actually covered in this way. Only on very small tracts is more than a TIMBER VALUATION 5 lo per cent estimate necessary. Ordinarily 5 to lo per cent is sufficient because the tracts are large — over 500 acres — and the subtypes uniform in composition and density. On account of the lack of roads and trails it is frequently diffi- cult to lind a suitable place for a base line from which to run the estimating strips. Usually, however, roads or trails are better than survey lines because they are easier to travel. When selected the base line should be surveyed and stakes set at equi- distant points, measured in a cardinal direction and not along the base line. In fact the distance along the trail used may be several times that in a cardinal direction on account of the twists the trail makes to avoid rough going. From the stakes on the base Une the estimate strips should be run across the valleys, preferably in a cardinal direction. The object in running them across the valleys is to avoid an overestimate by getting an undue proportion of the better timber in the valley bottoms. By using a cardinal direction possible compass errors are avoided because it is much easier to keep the Hne straight when a cardinal direction is used than when the lines are run at an angle less than 90 degrees. This strip method of estimating is, of course, not the only way to determine the contents of a stand. It is, however, generally considered the best and its costs may fairly be considered stand- ard. Obviously an experienced local estimator does not need to traverse a tract as carefully as one unfamiliar with the local conditions. He relies on his judgment more because he has had an opportunity to check it by the results of local logging. But his fees are based on the cost of a strip survey. For spruce and balsam pulpwood is the use to which the smallest timber can be put so that the minimum merchantable limits for these species are determined by the sizes which the pulp mills will take. The present minimum standard is a stick four feet long and at least four inches in diameter at the top end. Since at least two such sticks must be obtained from a tree to pay for felHng, trees less than six inches in diameter breast-high are considered unmerchantable. For sawtimber alone the limits are higher. At least six inches in the top and 10 inches breast-high are the usual requirements. Suitable tables giving 6 NORTHERN SPRUCE TYPE the volume either in cubic feet or board feet will be found in Hawley and Hawes' "Manual of Forestry," John Wiley and Sons, Inc., New York City. Only tables based on diameter breast-high and total or used lengths should be employed because there is great variation in the height of both spruce and balsam according to the depth of the soil. For the other important species in this type, paper birch, yel- low birch, beech and sugar maple, volume tables will also be found in the Manual of Forestry. With them total height is an unreliable factor and only usable length is a safe indication of their merchantability. This may be estimated in either i6 feet log lengths or in units of lo feet according to the volum'' table and the way in which it is worked up. The cost of estimating spruce tracts is determined first of all by the percentage of the stand estimated. As explained above this need seldom be more than lo per cent on account of the uniformity of the stands. The second factor, roughness of topog- raphy, cuts down the area possible for a crew to cover in a day. However, 24 strip acres is a reasonable average day's work. Hence the work ought not to cost more than 15 cents an acre and can frequently be done for half that figure. This should include the preparation of a report showing the amount, quality and value of the timber, the way in which it can be logged and a contour map of the tract, Stumpage Prices. — Stumpage prices tend to approach the difference between the cost of logging and manufacture and the average sale value of the lumber. Fluctuations in these factors are not, however, reflected at once in the stumpage prices. They are inclined to drag behind the increases in lumber prices and be unaffected by declines. This is well brought out by the follow- ing figures from Compton's ''Organization of the Lumber Industry": Average Stumpage Values for Spruce PerM 1890 $1 74 1899 2.26 1904 370 1907 .';.49 STUMPAGE PRICES 7 Hence, for the calculation of future prices such figures can only be used as a check and guide. The costs of the different steps in logging and manufacturing must be known for each tract and the sum of these plus a margin of safety deducted from the aver- age sale value. This requires a knowledge of the methods of lumbering and sawmilling and makes necessary their description in some detail. On account of the inaccessibility of the spruce stands logging jobs are almost invariably carried on by large camps located close to the place of cutting and only connected with the outside world by a slender thread, the rough tote road. Spruce stands are usually in mountainous regions where farms cannot be hewn out of the wilderness. Consequently their logging is no job for the farmer's spare time. If he does it at all he must go back into the mountains, build a camp and stay with the job with single-hearted devotion. As a matter of fact the typical opera- tion is a large one in which the camps house 30 to 60 men and such a one will be described to give a notion of the methods employed. The first step is the estimate of the watershed or valleys to be logged and the accumulation of sufiicient topographic data to determine where the main roads must go, whether driving can be employed and the approximate cost of logging. This information should be secured by the estimators. The figures given above for the cost of estimating contemplate a report which should cover the following points : — Amount of timber by logging units. Quality of timber by logging units. Topographic data (preferably in the form of a contour map). Logging costs by principal watersheds. Method of sawmilling and estimate of cost. Estimated sale value of finished product. Such a report enables a lumber company to plan its own opera- tions intelligently or let contracts wdth exactness. The latter method is more common in Maine, New Hampshire, Vermont and New York because there are many jobbers who possess great 8 NORTHERN SPRUCE TYPE skill in this work. In fact they are generally able to log more cheaply than the lumber companies themselves because their supervision is closer, their overhead expenses are small, they make scant allowance for depreciation or interest on investment and are content with small returns per thousand feet. In the southern spruce regions conditions are different. Seldom have the local inhabitants acquired the experience necessary to con- tract for themselves so that the lumber companies are forced to run their own camps. For simplicity's sake a contract job in the Maine woods will be taken as the type and after it has been described local variations in other parts of the country pointed out. Assume then that Bill Jones contracted in 1914 to yard on the river bank of the nearest drivable stream two million feet of spruce and balsam. Since the haul from the stump to the yard was only four miles he agreed to do it for $5 per M. He needed a crew of 60 men and started felling by October i in order to get the timber down and skidded before the deep snows came. For his labor he hired his neighbors as far as possible and then filled in with French Canadians who came south for the winter after the Canadian harvest had been garnered. A picked crew of choppers was first sent into the woods to build camps and clean out the roads. Then the main crew came in. It was divided up into choppers, teamsters for the skidding teams, tote teamsters, barn tenders, a cook and cookees, a blacksmith, a scaler, camp clerk. The first job was to fell the timber and bunch it up for hauling on two sleds. The methods employed varied with the steepness of the ground. On level and moderate slopes ordinary skidding practices were followed. A single horse or a pair bunched the logs on to skidways from which they could be rolled onto two sleds. On steep ground the procedure was difierent. Two sleds could not be used to advantage. The only safe way was to drag the log out on a single bobsled with only one end of the logs up. Bare ground was preferable to snow because slower and hence safer. Furthermore, the spruce commonly stood so densely on such steep slopes that it was easy to make up a bob- sled load by merely rolling the logs onto the sled without any preliminary bunching. In fact in many places the timber was STUMPAGE PRICES 9 felled into the roads which were not more than loo feet apart so that the horses did not need to get out of the road. For exam- ple, on the Henry operations in the White Mountains and the Perley and Crockett job in North CaroHna two sleds were not used at all. A single bobsled brought the logs off the mountain- side directly to the railroad. On less steep ground, however, the two-sled is the standard method of getting the logs from the skid ways to the railroad, drivable streams or mill. This sledding can, of course, only be done after there is plenty of snow. Hence the usual practice in the North Woods is to complete the felling operations by Christmas if possible and then put in January and February hauling. This gets the logs out of the w^oods before the river opens in the spring and ready for the drive in March and April. The following figures were average costs, in 191 5 : PerM Felling and bucking $1 • 50 Skidding 2.00 Hauling to railway or river, 2 miles 2 . 00 Drive or railway haul to mill, distance 10 miles i .00 $6.50 Felling costs are relatively high because the timber is small and usually found on rough ground. Skidding is shown as a separate cost altho as explained above it is frequently merged into the hauling as a single operation of " yarding." A charge for two- sledding to the railway or drivable stream is included to make the estimate conservative although sometimes it is possible to yard directly into the drivable stream or railway with a bobsled. Likewise, the distance taken for the railway haul or drive is rather longer than the average to avoid the possibility of having costs which are too low. Expressed in terms of man hours and horse hours per M these costs would be as follows: Man hours Horse hours Felling and bucking 3 Skidding 3 4 Hauling, 2 miles 5 7 Driving or railway haul, 10 miles 4 Total 15 II lO NORTHERN SPRUCE TYPE To attain these figures the felling crew must cut 6M per day if composed of two men and 9M if there are three men. In skidding this assumes that one team will bunch at least 5M board feet per day. The hauling costs are on the basis of a daily output of 3M board feet or live round trips hauhng between 500 and 600 board feet each time. The driving and railway haul costs cannot be expressed conveniently in terms of a day's work but the figures given are at least conservative. In all the operations except hauling by railroad the labor costs constitute 80 to 90 per cent of the entire charge. On account of the large amount invested in roUing stock the labor costs are but 40 per cent of the cost of operating a railroad. For pulp wood there is a well established market in the log form so that it need not be followed further than the mill. Prices ranged before the War from $7 to $10 per cord unpeeled. Peehng usually increased the price a dollar a cord. For converting board feet into cords a factor of 500 board feet is safe or in other words there will be found to be about two cords of pulpwood in a thou- sand feet of logs. Accessibility is the main factor in pulpwood values. New York State \vith a shorter freight haul for its paper pays better prices for pulpwood than New Hampshire or Maine. Spruce destined for sawtimber cannot be safely valued in the log but must be carried thru the sawmill. Then its value becomes a simple matter because eastern spruce is well graded with Boston and New York as the principal wholesale markets. Milhng charges added approximately $3 per :M to the costs of logging so that exclusive of stumpage spruce lumber should not have cost above $10 per M to get ready for the market. The prices paid in October, 1916, at Boston for the principal grades of spruce were as follows: PerM Frames 8 inches and under $28 . 00 Random 22 . 50 Cover boards 20. 50 The average price, however, was seldom over $25 per M because it was unusual to get more than 40 per cent of frames. A dia- gram showing the recent changes in spruce lumber prices is given in Fig. 3. STUMPAGE PRICES II Yellow pine 10,845,000,000 Douglas fir 5,820,000,000 White pine 2,200,000,000 Oak 2,025,000,000 Hemlock pine 1,875,000,000 Western vellow 1,710,000,000 1 Spruce 1 1,125,000,000 Maple 815,000,000 Gum 765,000,000 C>T>ress 630,000,000 Redwood 443 ,000,000 Chestnut 400,000,000 Birch 370,000,000 Larch 355,000,000 Beech 290,000,000 Yellow poplar 290,000,000 Cedar 245,000,000 Tupelo 237,000,000 White fir 213,000,000 Basswood 200,000,000 Ehn 195,000,000 Cottonwood 175,000,000 Ash 170,000,000 Sugar pine 111,000,000 Hickory 100,000,000 Walnut 100,000,000 Balsam fir 82,000,000 Sycamore 30,000,000 Lodgepole pine 12,000,000 All other kinds 60,000,000 Grand total Fig. I 31,890,000,000 Lumber Production, 19 18 Computed by U. S. Forest Service. Bulletin 845. 12 NORTHERN SPRUCE TYPE As stated above the stumpage price of any tract should be the difTerencc between the average sale value of its timber and all costs of logging, manufacture and selling. On small jobs such Fig. 2. Distribution of the Northern Spruce Tpye calculations are simple but where large initial investments are necessary for railroads, roads, driving improvements, mill machinery, etc., the problem is exceedingly complex because the LAND VALUES 13 exact influence of interest and depreciation must be determined. The most complete discussion of this subject is to be found in the U. S. Forest Service Stumpage Appraisal Manual. For our purposes it is sufficient to state the principles involved. Actual stumpage values for spruce and balsam range all the way from $2 to $8 per ]\I according to the accessibility of the tract in ques- tion. Between 1900 and 1907 there was an increase from $2.26 to $5.49 per M, or a rise of 143 per cent. The percentage of bal- sam also influences the stumpage price of a tract. Fortunately, however, this inferior species seldom makes up more than 25 per cent of the total stand except in immature stands only large enough for pulp wood. It is a relatively short-lived tree which has to yield in the long run to spruce. Consequently there is seldom enough to greatly depress the value of a tract. Land Values. — Land values in this type are impossible to determine from current sales because the . timber is never sold separately. However, members of the New Hampshire Timber- land Owners' Association have agreed to the taxation of their clean-cut lands at $2 per acre so that that figure may be used as a minimum valuation. From the productive aspect it is easy to show that spruce land is worth at least $3 an acre using a 3 per cent interest rate and assuming that there will be a yield of 15M feet in 100 years worth $150 an acre. Losses from insects, fungi, etc., will be ofi"set by possible intermediate yields from thinnings. Very little of the soil in the spruce type has any value for agriculture. Even as j^asture in the Southern Appalachians it is not a success. The soil is so thin and the slopes so sharp that grass takes hold very slowly and cannot prevent washing. Fur- thermore, the climate is so rigorous that only the hardiest north- ern crops can survive. However, arguments and illustrations of this kind are superfluous. The facts prove the case. Scarcely I per cent of the entire type, north or south, has ever been cleared up for either tillage or pasture in spite of the keen demand for agricultural land that there has been in the northeast and south- east. Titles. — Title questions are relatively simple because the tracts involved have usually been handled in large units. There have 14 NORTHERN SPRUCE TYPE commonly been grants of thousands of acres issued to one paten- tee. Hence their history is easy to trace. Claims of title are, however, sometimes obscure from the fact that the tracts of $65 PER M $25 PER M BOARD FEET 1910 1911 1912 1913 1914 1915 191G 1917 1918 1919 1920 Fig. 3. Wholesale Prices of Spruce Frames, 1910-1920, Boston. Mass. mountain land upon which spruce grows have only recently had a merchantable value and their early owners were lax in recording transfers and alienations. Breaks in the chain of title are not uncommon either due to simple failure to record sales and LAND VALUES I^ bequests, thru the unperfecting of the claims of minor heirs, or because of unliquidated liens. Squatters also form another frequent source of annoyance. In many cases they have been allowed to use uimiolested parts of large tracts for such long periods that they have acquired rights of possession. CHAPTER II NORTHERN HARDWOOD TYPE General Conditions. — This is the type of timber which Hes immediately below the spruce type — the beech, birch and maple belt. It is seldom abundant above 3000 feet above sea level but is the important type in northern Maine, the lower slopes of the White and Green Mountains, the Adirondacks and Catskills, and is represented southward along the backbone of the southern Appalachians by isola,ted islands of timber. In the Lake States it is found in Michigan, Wisconsin and Minnesota. The climate is characterized by a longer growing season than that of the spruce type, less precipitation, more rapid runoff and flyoff and hence less available moisture. Only two of these cli- matic factors may be expressed absolutely. The growing season is at least four months and the total annual precipitation exceeds 35 inches. The other factors have not yet been accurately measured so that only comparative statements may be made. Since the type occupies lower elevations than the spruce type the slopes are less precipitous, the surface less stony and the soil deeper. The absolute range in elevation varies, of course, with the latitude. In the northeast a range between 2000 and 3000 feet in elevation is the rule, while in North CaroHna the northern hardwoods do not occur below 3000 feet above sea level. On south and west exposures the t}q3e does not extend so low but reaches higher elevations on account of the longer growing season as compared mth northern and eastern exposures. The greater depth of the soil as compared with that of the spruce tj^pe has already been mentioned. This would naturally follow from the fact that the hardwoods are further down the slopes where the accumulation of talus is deeper. They flourish particularly well on the southern slopes of the White and Green Mountains, the Adirondacks and the Catskills where the glaciers j6 GENERAL CONDITIONS 17 have dumped piles of detritus scraped off from the northern slopes of the mountains. The composition of the soil varies with the geological history of the region. In the north it is of glacial Fig. 4. Distribution of the Northern Hardwood and White Pine Types origin, usually a loam with many boulders. South of the con- tinental terminal moraine the soil is mainly derived from the decomposition of the underlying rock. But whatever its origin l8 NORTHERN HARDWOOD TYPE it tends to become a rich, dark loam by the disintegration of the abundant leaf litter. While beech, yellow birch and sugar maple are the character- istic species in this type there is always a generous admixture of other species. On the lower edges of the type white pine, hem- lock, black birch, basswood, red oak, and even occasionally white oak are part of the mixture while at the upper margin spruce, balsam and paper birch are the supplementary species. It is seldom, indeed, that this type does not have a considerable per- centage of softwood timber. In fact it is here that white pine and spruce reach their best development. For example, while the sand plains of northern Micliigan produce the dense stands of pure white pine the largest, tallest and straightest individuals grew amongst the hardwoods. A variety of subtypes may be distinguished in this type. In the first place there are the variations due to composition. These are mainly the results of differences in elevation. For example, a mixture of white pine and hardwoods is not common higher than 2000 feet above sea level because white pine does not flourish at a greater elevation. The distribution of spruce is governed by the same factor, it being unable to compete successfully with other species at elevations less than 2000 feet above sea level except occasionally on old fields. A few of the more usual com- binations which it is useful to distinguish as subtypes on account of their composition are: Hardwoods and white pine. Pure hardwoods. Hardwoods and spruce. These are arranged in order of their occurrence starting with the lower limits of the type. Besides the differences in composition due to elevation, lumber- ing, clearing, and lire have also played an important role. Stands may be virgin, culled, cutover, or burnt. Each has a different composition. Culling has been the commonest form of lumbering because in many places only the softwoods have been merchant- able. This has naturally resulted in increasing the percentage TIMBER VALUATION IQ of the hardwoods in a marked degree. The composition of the cutover and burned subtypes except where the soil has been entirely consumed tend to be identical. Commonly such intoler- ant, light seeded species as popple, pin cherry and paper birch take possession of the ground. Then when they have reached a height of lo or 15 feet the more tolerant hardwoods and spruce and balsam work in underneath. Occasionally, however, dense groups of hard maple crowd out the other species, especially where the maples have been cut and regenerate from sprouts. A not infrequent variation in the older parts of New England is the old field spruce subtype. This is 90 per cent or more pure spruce in composition and is always found on old pasture. The grazing kept the hardwoods out while the seed bed conditions were favorable for spruce. Fortunately damage is relatively slight in this type. None of the subt\T^s are as subject to burning as stands with a higher percentage of softwoods. Wind seldom succeeds in overthrow- ing the mixture of deep rooted species. Game, insects and fungi never cause the death of trees over wide areas because the stands are not made up of one species. In other words their food supply is too scattered, for usually but one kind of tree is attacked. The following table gives data on the growth of the principal species of the hardwood type from the researches of the U. S. Forest Service and the State Forester of Vermont: OPTIMUM IN 100 YEARS Species vSpruce Hard maple Aspen Yellow birch Vermont hardwoods Diameter 23 12 10 Height 80 75 89 74 8S Density per acre 300 60 27s Yield per acre Cubic feet 10,000 13,000 7,000 Timber Valuation. — Estimating within the hardwood type is a complicated problem. While the tracts are usually located on the lower slopes of the mountains, and hence the going is not 20 NORTHERN HARDWOOD TYPE rough and roads not far distant, there are the following difficul- Lies to be overcome: 1. Small size of the tracts. 2. Great variation in composition of subt5rpes. 3. Large number of species with varying uses so that dif- ferent diameter limits must be employed in estimating. 4. Low branching habit of hardwoods so that the usable length is very variable. It is unfair to generalize and say that all tracts in this type are small, but certainly they average less in acreage than tracts in the spruce type. The very good reason for this is that the hard- woods occur on the lower slopes near the farmland and hence were more desirable as woodlots in the early days. Then too the prime use of a woodlot 50 years ago was for firewood, and softwoods don't make first class fuel. These two factors of greater accessibility and higher-use value led to the early sub- division of the hardwood type into lots of 50 acres or more. Seldom is it possible to find a tract composed of units of more than 100 acres to the lot. Large grants of 500 or 1000 acres such as are the rule in the spruce type never occur. This factor of area is merely one of the reasons why a relatively large per- centage must be covered in the estimating strips because a low percentage of a large tract will give as good an average as a much greater proportion of a small tract. Still another reason for running the strips close together is the great variability in composition. There may be a small pocket of white ash in one corner of the tract which will greatly inhance its value but which would not be discovered unless an unusually careful search were made. Other valuable species tend to occur in small groups also so that nothing less than a 10 per cent esti- mate is safe even for tracts of 500 acres or more. With smaller blocks an even higher proportion is necessary. For example, at least 50 per cent should be actually measured if a true estimate of a 10 acre lot is to be secured. The placing of the base line and the planning of the strip work present no unusual difficulties but follow the principles outlined TIMBER VALUATION 21 in the discussion of the spruce type. There are, however, a series of special problems in the determination of the diameter limits to be used in estimating. Each species has its own peculiar uses and hence there is wide variation in the part of the tree which is merchantable. The principal uses of the species found in the hardwood type are as follows: White pine — doors, sash, finishing lumber, and boxboards. Hemlock — • dimension lumber, rough finish, pulp and box- boards. Spruce — dimension lumber and pulp. Balsam — pulp. Paper birch — shoe pegs, toothpicks, spools and bobbins. Yellow birch — flooring, spools, bobbins and interior finish. Black birch — flooring, spools, bobbins and interior finish. Beech — flooring, spools, bobbins and interior finish. Chestnut — rough finish, caskets, poles, railway ties. Red oak — furniture, car stock, and railway ties. White oak — furniture, car stock, and railway ties. Hard maple — flooring, bobbins, spools, furniture, and shoe lasts. Soft maple — flooring and bobbins. Basswood — boxes, trunks, furniture backing ana novelties. White ash — handles and sporting goods. The uses and diameter limits for spruce and balsam have already been discussed. White pine and hemlock are also sal- able for pulp so that the same minimum diameters hold altho these species usually find a better market if sawn into boxboards or square-edged lumber. If they are to be sold in the latter form a minimum diameter of ten inches breast-high and a top diameter of five inches will include all the merchantable timber. Barring certain ^special uses the hardwoods may be grouped into two classes, those manufactured into boards and those sold by cubic measure. Into the fijst class fall the maple, birch and beech which go into flooring and finishing lumber while the second class includes paper birch to be used for toothpicks and shoe pegs, 22 NORTHERN HARDWOOD TYPE yellow and paper birch, beech and maple for manufacture into spools, bobbins or dowels. Naturally this latter class can utilize smaller sizes. The minimum estimating diameters for the dif- ferent species found in this type are as follows: MINIMUM DIAMETERS Lumber Species Hemlock White pine Spruce Balsam Paper birch Yellow birch Black birch Beech Chestnut Red oak White oak Hard maple Red maple Silver maple Basswood White ash Cordwood — all species Breast-high Inches lO lO lO 8 lO lO ID 5 Top Inches 5 5 5 5 6 Obviously then the first step in planning the estimate of a tract is to find out to what uses the various species can best be put. This is in the main determined by the local industries. Hardwood logs are so heavy that they cannot be hauled long distances. As a consequence it often happens that a tract may have maple admirably suited for flooring but the absence of a planing mill makes it impossible to consider any other use than fuelwood. Volume tables exist for all the important species in this type — see Graves' "Mensuration" and Hawley and Hawes' "Manual of Forestry." While it may be permissible to use a table based on total height for softwoods, merchantable length is the only safe factor for hardwoods. There are two reasons for this. In the first place there is great variation in the usable lengths of hard- woods on account of the size of the branches. The straight main trunk and small side branches of a conifer are entirely different. With the latter it is entirely possible to get a reasonably close TIMBER VALUATION 23 estimate with a table based on total height and using a general average for the top diameter. But with hardwoods the top diam- eter may vary 100 per cent or more depending upon size and location of the side limbs. The second reason why usable length is much safer is that hardwoods are more subject to fungus dis- orders than softwoods especially where ground fires have been frequent or the limbs have been broken off by the wind. This means that a log length or two must be discarded in an otherwise sound tree on account of rot. With a log length table this is possible whereas a total height table does not have the same flex- ibility. Summing up, then, the difficulties and favorable factors that are encountered in estimating in this type, the accessibility and easy slopes make for quick work while the small size of the tracts, the varying composition, and the high percentage of defect amongst the hardwoods increase costs. An average of 20 strip acres per day for a crew of two men is good and the cost per acre can seldom be kept below 10 cents. Fifteen cents may be neces- sary if the tracts are small. The general principles which determine stumpage prices have been explained in the discussion of the spruce type so that it is only necessary to enumerate the main facts with regard to prices in the hardwood type. The best collection of average stumpage prices by regions and states is that published by the Forest Service in Bulletin 285, The Northern Hardwood Forest. The most important are repro- duced here: COMPARATIVE STUMPAGE PRICES FROM REPORTS OF SALES 1912 N. E. States Lake States S. E. States Birch 5-6i 4.38 5-98 8.40 9 03 4.85 3 67 4.58 6.30 S-82 3-23 2.86 Beech Elm Hard maple 3-45 4.92 6.16 Basswood Ash 24 NORTHERN HARDWOOD TYPE Altho compiled from records of actual sales kept by the Office of Industrial Investigation they cannot be taken as average figures for the regions referred to because they apply to only the most accessible timber. Inaccessible timber would not be sold. As a whole, then, they are higher than can be expected on the average. Furthermore there is considerable variation within the groups of states cited. Among the northeastern timbered states New York and Pennsylvania record the highest stumpage, as might naturally be expected from their advanced industrial develop- ment. However, Ohio and Indiana have still higher prices but they are essentially agricultural states with very little true forest soil. In the Great Lake region Michigan with its large manu- facturing interests shows the highest stumpage prices. For the same reason Maryland leads among the states of the southeast. The following table shows for each of the important hardwood species the maximum and minimum prices recorded in 191 2 with the state in which they occur. MAXIMUM AND MINIMUM STUMPAGE PRICES 1912 Species Maximum price Minimum price Maple Birch Beech Basswood Elm Ash PerM $7.94 Indiana 6.14 New York 6.15 Ohio II .59 Ohio 9.43 Ohio 15.87 Ohio PerM $2.70 Virginia 2.31 Tennessee 1 .83 W. Virginia 3.30 N. Carolina 2.67 Virginia 3.85 W. Virginia It is evident that maple commands the best price in the north central states where the nearness to market, small supply, and high quality all combine to increase the stumpage price. Both Ohio and Indiana are primarily agricultural and manufacturing states so that what little timber is left would naturally be valuable and in addition the finest quality of maple grows in deep, agri- cultural soil such as occurs in these states. Of the northeastern states New York reports the highest prices and Vermont the lowest but there is only a range of $1.72 or 40 per cent. In the TIMBER VALUATION 25 Lake States stumpage prices vary from $9.86 to $3.48 or a dif- ference of $6.38 or 180 per cent. The southern Appalachian states show a variation of $2.61 or 96 per cent with a minimum of $2.70 in Virginia and a maximum of $5.31 in Maryland. These prices are, however, of little value in arriving at a definite notion of the average value of maple stumpage unless accompanied by statistics showing the distribution of the standing timber. For example, while the stumpage prices in Indiana are high there is so little timber that the effect upon the general level is negligible. Frothingham's estimate of the total amount of stumpage shows that the northeastern and Lake States contain 87 per cent of the total stand. As a matter of fact, the hardwood type is relatively unimportant in other parts of the country. Since these figures are of little value in determining the stump- age price on any particular tract it is necessary to supplement them by logging costs and average selling prices. Average costs of logging were as follows in 1915: PerM Felling $2.50 Skidding 3 . 00 Hauling to mill, 3 miles 4 . 00 Milling 4.00 1350 These costs are naturally higher than for softwoods because hardwoods are heavier, crooked and generally more difficult to handle. Even at the sawmill they cost more on account of their hardness. Their proper seasoning is also more difiicult since they require closer sticking and more protection from the weather. The softwoods mixed in amongst the hardwoods can be handled for $3.00 to $4.00 per M less. Expressed in man hours and horse hours per M the costs would be as follows: Man hours Horse hours Felling and bucking 6 Skidding 5 6 Hauling to mill, 3 miles 10 20 Milling 10 31 26 26 NORTHERN HARDWOOD TYPE Tliis means that a felling crew of 2 men would have to fell and buck 3M per day, the skidding crew handle as much, and the hauling teams make three trips per day with at least 300 board feet per load. The logging and milling methods follow very closely those employed in the spruce type. The large camp is the rule because of the greater efficiency secured by having the men close to their work. Skidding on the bare ground is the common practice because the logs must be bunched up before being hauled out on two-sleds. The slopes are seldom steep enough to make it worth while to bobsled the logs directly to the railroad or mill. Hard- wood logs cannot be successfully driven. The capacity of the mill varies within wide limits. Many successful operations have large mills with railroad transportation from the woods. This insures the highest efficiency of manufacture because solid foun- dations are needed if hardwood is to be sawn well. But it does not encourage close utilization in the woods. By reason of the cost of transportation to the mill there is a strong tendency to only haul out the high grade material. To prevent this loss of the lower grades and save on the haul from the woods the experiment has been tried of placing the mill in the woods. Then a higher percentage of the felled tree reaches the mill but only the seasoned product in a more or less finished state is hauled out. If the produce is boards the saving on the haul is considerable since even air seasoned hardwood lumber weighs about' half that of the same amount of lumber in log form. An even greater sa\ing can be made where some form of finished product is manufactured. Dowel, handle and bobbin mills, for example, located close to the woods, utilize the tree fairly closely and have merely the finished product to haul. All the species make excellent firewood since they have a fuel value per cord equivalent to about three-quarters of a ton of coal. Cordwood cost from $1.50 to $2.50 to cut and pile in 1915, or 7 to 10 man hours, and the hauling did not exceed 5c cents per cord per mile. Average selling prices are difficult to give because of the variety of uses to which the dilTerent species are put. The figures LAND VALUES 2^ given below are simply general averages which were attained with reasonable care. Higher prices were, of course, secured if special products were manufactured. Average Sale Values per M f.o.b. mill. 1914 White pine $18.00 Beech $16.00 Hemlock 17.00 Chestnut 19.00 Spruce 18. 00 Red oak 18. 00 Balsam 1 7 . 00 Hard maple 18 . 00 Paper birch 1 7 . 00 Soft maple 17. 00 Yellow birch 17.00 Basswood 18.00 Black birch 17 . 00 White ash 20 . 00 Cord wood sold for $3 for softwood and $4 to $6 for hardwood. To determine what stumpage price may be realized the costs of logging and manufacture must be deducted from these sale values. For the softwoods there should be a margin of $6 to $10 in the lumber with the chance of getting an extra dollar or two per M from the cordwood. With all the hardwoods, except red oak, basswood and white ash, such high returns cannot be expected, so that a margin of $4 to $7 for the lumber and an addi- tional $1 per M from the cordwood is very satisfactory. Oak, basswood and ash have special uses which enhance their stumpage values so that stumpage prices of $10 per M are paid in the terri- tory tributary to the special establishments which need these species. Land Values. — Here again as Avith the spruce type the land seldom has any value aside from what will be paid for the timber. Most transactions have not specified any separate valuation for the land but the transfers have simply been on the basis of stump- age values. Hence in order to determine what the soil capacity is for timber production sales of pasture land must be consulted. Our Puritan forefathers in their hunger for land cleared up many hillsides for pasture purposes out of the hardwood type. The modern tendency is to allow such clearings to reforest themselves and holdings of this kind which are neither pasture or timberland may be purchased for from $3 to $15 an acre, depending upon their location. But these figures cannot be taken as representa- 28 NORTHERN HARDWOOD TYPE live for the whole type because they only apply to the most accessible lands. On the basis of a i co-year rotation with compound interest at 3 per cent and assuming a final yield of 15M board feet per acre hardwood lands show a value of $4 per acre. This yield is con- servative because it does not include thinnings. These latter should easily give a margin above possible losses from fire, insects, fungi, etc. For agricultural purposes this type of soil has a higher value than spruce land because it is deeper, has a higher percentage of loam with less raw humus and the growing season is longer. Reference has already been made to the use of these lands for pasture prior to the Civil War. It is conceivable that a similar demand may recur but it seems more probable that the steepness of the slopes and number and size of the rocks will prevent profit- able cultivation. Taken as a whole at least 90 per cent of the type may safely be said to be better adapted to the growing of timber than to either tillage or pasture. Titles. — The past history of land in the hardwood type makes the searching of titles a difficult problem. The unit areas are small, the surveys are poor and transfers are not recorded accu- rately or completely. Such a condition of affairs is inevitable with land which has been considered of little value for a long period. The only saving factor is that these so-called '' back pastures " and " sugar bushes " have in many cases been regarded as integral parts of the farm and transferred accordingly. It is, however, always necessary to look up the probate and tax sale records to make sure that there are no liens on the property which do not appear in the County Recorder's Office. CHAPTER III WHITE PINE TYPE General Conditions. — This is the type from which the colon- ists obtained the masts and shipbuilding timber to which Pepys made such feeling reference in his diary — " From New England ships come home safe to Falmouth with masts for the King; which is a blessing mighty unex- pected, and without which we must have failed the next year." Here were trained the loggers who have made Maine so famous by their exploits with axe and peevy and in this type they have gone westward thru New York and Pennsylvania to the Lake States as the virgin supplies were exhausted on the Atlantic coast. Its exact boundaries are frequently difficult to delimit where the type merges into the hardwood type but roughly it covers the lower parts of Maine, New Hampshire, Vermont and Massachu- setts and the more elevated portions of Connecticut. In New York and the Lake States it is a lowland tjrpe but only occurs in the northern parts. The growing season is distinctly longer than with the two types previously considered. Ordinarily frosts do not occur between May I and September 15 so that there is a vegetative period of about five months. Moreover, the temperatures are higher. For the year the mean is 50° F. while during the summer the maxi- mum is 100° F. with an average of 65° F. This means consider- ably more transpiration and evaporation than with the spruce and hardwood types. Another factor which decreases the total available moisture is the lessened precipitation. This is mainly the result of lower altitude above sea level. The hardwood and spruce types cover the mountains and hills which intercept the moisture-laden winds from the west. Consequently instead of being over 45 29 30 WHITE riNE TYPE inches as with the other two types it seldom exceeds that figure as a maximum. In fact, the pineries of the Lake States have an average annual precipitation of 30 inches. There is, however, one factor which tends to conserve the pre- cipitation. That is the comparatively level topography which retards rapid runoff. Generally speaking the pine t>pe is con- fined to the overwash plains formed by the streams which drained from the retreating ice sheets in the Glacial Age. These are gently sloping sand or gravel beds from which the runoff is slow. But the openness of the oil tends to counteract in part, at least, the lack of slope. As a consequence the availaole moisture is so deficient that the predominating species, white pine, red pine, jack pine and pitch pine, are all adapted to sites not abundantly supplied with moisture. Species wliich cannot endure dry sites are restricted to those within the type which by reason of drainage or soil con- ditions have more available moisture. Hence, hemlock and hardwoods are only found in this type in deep-soiled, well-watered vaUeys. Moreover, but few of the deciduous leafed trees charac- teristic of the hardwood type just described occur in this type. The important ones are white oak, chestnut, cherry or black birch, gray birch and black cherry. Paper and yellow birch, beech and red and white ash occur sparingly on the cooler sites included within the type. Since the pine type is most abundant on lands which were early sought for agricultural purposes, lire and clearing have had profound effects upon the composition of the type. In addition lumbering has played an important role in modifying the original forest conditions. As a consequence there are very few stands left which are representative of the type as the early settlers found it. These virgin stands were either pure pine or pine mixed with hemlock and tolerant hardwoods like sweet birch and beech. The usual course of history after the removal of the virgin stands was more or less repeated burnings. Fire was used intentionally to clean up the land for cultivation or allowed to run unchecked in the logging slash. As a consequence the poorer sandy lands are now covered with a scrubby growth of GENERAL CONDITIONS 31 pitch pine and scrub oak in New England and jack pine in the Lake States. All three of these species are capable of standing repeated burnings. Pitch pine and jack pine have thick bark which does not burn readily and their cones are also almost fire- proof. The scrub oak holds its own thru its ability to sprout after being injured. Fire is, in fact, responsible in most cases for the failure of white pine to replace itself. In places where fire is kept out the pine comes in either in pure stands or in mixture with hardwoods. For example, old pastures within the type are quickly covered with pine " bushes " while the hardwoods are kept in check by grazing if the pasture is still used. This results in practically pure stands of pine. If, on the other hand, the hardwoods are not held in check by grazing they frequently occupy the old fields to the apparent exclusion of pine. This is particularly true with such light seeded, vigorous species as gray birch and aspen. But the pine slowly but surely works its way in under the thinner crowned hardwoods and eventually replaces them because it is longer Uved so that the final result is a nearly pure stand of pine again. In fact white and red pine are so well adapted to the climatic and soil conditions in this type that they can be relied upon to take possession of the ground if they are given even half a chance. The commonest subtypes in this type and their composition by number are as follows: Pure white pine — over 90 per cent white pine. White pine and hemlock — • 50 per cent white pine and 50 per cent hemlock and hardwoods. White pine and gray birch — 60 per cent white pine, 40 per cent gray birch. White pine and oak — 40 per cent white pine, 60 per cent red, white, and black oak. White pine and pitch pine — 50 per cent white pine and 50 per cent pitch pine. Besides these subtypes based on composition there are also, of course, subtypes due to various degrees of logging, as, for example, virgin, culled, and cutover stands. 32 WmTE PINE TYPE Both the fire hazard and liability are high in this type so that damage from this cause is frequent and severe. Locomotive engines and smokers riding on the railroads, in automobiles, behind horses, or walking for business, pleasure or to hunt are the commonest offenders. Two-thirds of the forest fires are due to these two causes alone. For the other third, fires started to clear land, stationary engines and incendiaries are responsible. The important point to recognize with reference to the fire hazfl,rd in tliis type is that it is so situated that it is brought into direct contact with nearly all the human activities of the states in which it is found. It occupies the low lying land near the seacoast where the railroads form networks of interlacing tracks. Farms surround it and cut it up. As a consequence it has had to suffer from every kind of fire carelessness of which man is capable. But worst of all is the amount of damage which fire can do. The young stands are completely wiped out because the inflam- mable tops furnish fuel for even a gentle ground fire. Older stands suffer as badly if there is a wind because the fire leaps from the ground and becomes a crown fire. In both cases the thin bark is usually scorched so that the tree dies. Taking every- thing into consideration white pine stands are as poor a fire risk as any of our timber wealth. After a fire they must be imme- diately cut. If allowed to stand the sapwood quickly decays and the loss is often as high as 50 per cent within three years. In addition to fire white pine stands have recently been threatened with another devastating agency. This is the white pine blister rust, an imported European disease with two hosts, the five needle pines and currants or gooseberries. Unless prompt measures are taken for its suppression it threatens aU our five needle pines and there is a chain of them across the con- tinent including such important commercial species as the eastern white pine, the Idaho white pine or silver pine, and the sugar pine of California. It is most serious with small trees. Fortunately the disease can be controlled by the eradication of currant and gooseberry bushes, both wild and cultivated. Prompt action on the part of New Hampshire, Vermont, Massa- GENERAL CONDITIONS 33 chusetts, Rhode Island and Connecticut will effectually check the disease. As compared with the capital invested in white pine timber and woodworking plants the value of all the culti- vated currants is practically negligible. Red pine and pitch pine are subject to a similar native blister rust which has as its alter- nate host sweet fern, but fortunately this disease is not so virulent as the imported white pine blister rust. Another fungus which occasionally kills white pine is the bracket fungus, Trametes pini, or red rot. This is a heart rot which enters thru a dead limb and destroys the tree by eating away the heartwood. Sapwood it cannot attack. But the decay of the heartwood leaves the tree without a backbone, so to speak, and the wind tumbles it over. The wood of such a tree is, of course, useless since there is but a shell of sound sapwood around the rotted heartwood. It is, however, usually possible to get one or more sound logs from an infected tree because the fungus com- monly enters near the ground and works within a limited area. To prevent the spread of this parasite all infested trees should be removed as quickly as possible. Another imported pest is the gypsy moth. While the larvae carmot feed on conifers for the first week after hatching they can and will defoliate white pine, red pine and hemlock if they get started on hardwood. Consequently stands of gray birch and white or red pine offer ideal conditions for its development. All the egg clusters laid on the gray birch have the proper kind of food to give them a good start so that after the first week the larvae are able to digest coniferous foliage. In the individual woodlot there are two methods of control. By all odds the best way is to cut out the hardwoods because they can usually be made to yield some returns as cordwood at least. Painting the egg clusters in the winter with creosote is effective if thoroly done but the expense is usually prohibitive in large lots. It is difficult and time consuming to chmb thru a large oak for example. Such methods, while justified for shade trees, are usually not feasible for woodlots. White pine is attacked by two forms of plant lice — Chermes — which occasionally become abundant enough to disfigure or even 34 WHITE PINE TYPE destroy it. In the woodlot the best control measure is to cut and burn the infested trees. Another insect which disfigures the white pine is the white pine weevil. It kills the terminal shoot by girdling it. The eggs of this beetle are laid in the upper part of the terminal shoot during the latter part of the summer and the larvae burrow around underneath the bark the following summer. The large number of deformed trees in nearly every second growth stand of white pine shows that the insect is no new pest but has been attacking white pine for at least a century. Nevertheless, it could be greatly diminished, if not eradicated, by a determined and con- certed effort. If the infested shoots are cut and burned before the first of August the weevils are destroyed before the adult form emerges. The principal insect and fungus enemies of the commercial tree species in this type arc listed below : White pine — gypsy moth, Chermes, weevil, blister rust, and red rot. Red pine — blister rust. Hemlock — no serious enemies. Butternut — no serious enemies. Shagbark hickory — no serious enemies. Black birch — gypsy moth, heart rot (Fomes igniarius and f omentarius) . Grey birch — gypsy moth, heart rot (Fomes igniarius and f omentarius) . Beech — gypsy moth, heart rot (Fomes igniarius and f omentarius) . Red and white oak — gypsy moth, browntail moth, heart rot (Fomes igniarius, squamosus, and sulphureus). Elm — gypsy moth, elm leaf beetle, heart rot (Polyporus squamosus) . More complete data probably exists for the growth in this type than for any other in the United States. On account of their high value white pine stands have been very thoroughly studied in New Hampshire, Vermont, Massachusetts, and Micliigan. The best information on the diameter and height growth and yield of the species in this type is summarized below : GENERAL CONDITIONS 35 >-° -^ Xi ^ ^ o ■* O <£> M 't t>. CT> ^ M 00 O CO m O >o (?» ro C/1 M :« Vh l-c li (Tl rt cl 03 0) 0) a; ,>.>.>> VO o •o 8 cs u-> i^ o o o o o o o o lo lo lO O coco iH ro rt ctJ cd cd (U O 0) pes previously considered. The total amount of mois- ture available for plant growth is still further reduced by the rapid runoff which takes place on the hillsides. In fact there is probably no place in the United States, with the possible excep- tion of the southwest, where the erosion is so great. Denuded 71 72 SOUTHERN HARDWOODS hillsides arc quickly gullied by the heavy summer rains and even during the winter erosion keeps up at a rapid rate because the ground is not protected by snow but is alternately frozen and Fig. 7. Distribution of the Southern Hardwood Type thawed so that the top layer of soil is rapidly broken up and sloughs off down hill. On account of the rapidity of erosion the characteristic topog- raphy of the type is an alternation of sharp ridges and narrow valleys. There are no natural lakes in the southern Appala- chians or middle and lower Mississippi valley. GENERAL CONDITIONS 73 This type has a greater variety of species than any other forest type in the United States because it is the meeting ground ol northern and southern species. The cool summers on the mountaintops allow such species as white pine, hemlock, and red oak to extend their range southward while typically southern species like loblolly and shortleaf pine, yellow poplar and cucum- ber tree have worked their way from the foothills up on the higher elevations. While it is impossible on a small scale map to sub- divide the hardwood region, in the examination of any particular tract it soon appears that there are three distinct types with different climatic and soil conditions and consequently a distinct tree composition. The mountain valleys ■ — called coves in the southeast — with deep, rich, alluvial soil, well watered, possess the greatest variety of species. In fact all the kinds of trees would grow here by preference, but yellow poplar, hemlock, the oaks, the hickories, and occasionally the chestnut possess greater reproductive capacity, more rapid growth or greater tolerance, so that they are usually able to crowd out other species. Normally a cove stand which has been untouched by the lumberman's axe is either pure hemlock, pure chestnut, or a mixture of yellow px)plar, white oak, cucumber, hickory and hemlock. In this type is found the best timber. It has been the main source of the yellow poplar for which the southeast is so famous. But while it produces large, long boled timber the stands are seldom very heavy. While hemlock coves may occasionally cut better than 30,cx>o board feet per acre the average for the type is nearer 15,000 feet because the hardwoods do not stand so close together as a tolerant species like hemlock. Unfortunately, also, the total extent of the coves is not great. They seldom occupy more than 1 5 per cent of a tract and 5 per cent would more nearly repre- sent the mountain conditions. Hence, reports of tracts in the southern Appalachians which average 10,000 board feet to the acre over large areas are always open to serious question. It is the two other types, slope and ridge, which make up the bulk of such tracts and their average stands are much less than that of the cove type. The slope type is an intermediate one between the cool, moist 74 SOUTHERN HARDWOODS climatic conditions of the cove type with its deep alluvial soil and the ridge type which as its name implies occupies the overdrained ridges where the soil is shallow and sterile and evaporation and transpiration are at their maxima on account of exposure to wind and sun. Since, then, the soil of the slope type is not quite so well supplied with moisture as the cove type nor the soil so deep, only the hardier tree species will be found climbing up thru it from the more sheltered coves. On the margin where the two join it is cUtlicult to draw the dividing line by composition alone, but at the upper edge where the slope type merges into the ridge type no yellow poplars, cucumber trees or hemlock are found. Typically its composition by number in virgin stands is as follows: Per cent Oaks 30 Chestnut 20 Yellow poplar 10 Black cherry 5 Hickory 5 Hemlock 5 Other species 15 100 The average stand per acre under virgin conditions is 5000 board feet. Naturally it is the most extensive type in the south- ern Appalachians. It usually makes up at least 60 per cent of the total area of a mountain tract. In the ridge type the number of species is still further reduced. Chestnut and hickory occur sparingly but the important species are chestnut oak and shortleaf pine. The latter preempts the southern and western exposures while the chestnut oak is more abundant on the cooler north and east slopes. Seldom do virgin stands average more than 2000 board feet per acre. Fortunately for the productive capacity of the region this type is compar- atively limited in area. It usually occupies not more than one- third of a tract. Fire is here as everywhere the great enemy of the forest. The drier slope and ridge types suffer most. The latter has usually been burnt over at least every other year and frequently annu- ally. As a consequence most of the trees are fire scarred at the GENERAL CONDITIONS 75 butt and more or less damaged by insects and fungi as a result. Amongst the hardwoods, however, loss from insects and fungi is not serious, probably because there are few pure stands. With pine, on the other hand, which occurs in pure groups, insect damage is frequently very serious, usually after the tree has been weakened by fire. For example, in 1890-1892 the southern pine beetle, Dendroctonus frontalis, killed practically all the mature shortleaf pine and pitch pine in an area extending from North Carolina to southern Pennsylvania and aggregating over 75,000 square miles. ^ Fortunately chestnut blight is the only serious fungus enemy as yet reported from any of the three types altho there are many species which will attack trees which have been weakened by fire. The growth of individual trees in diameter and height is usually very rapid as the following figures show : Yellow poplar Chestnut sprouts. . Chestnut seedlings Locust Hemlock Red oak Black oak Red cedar Shagbark hickory. 8-57 8"-so' 5"-2S' 7"- 5"-35' 4 "-40' 5"- 2 -25 iS"-83° 13-77° ii'-65" 12"- II "-64° i3"-7o° 11"- 6 "-45° 7"-5o° 19 -93 i7"-88° i6"-8o° 15"- i6"-82° i5"-85° 14"- i2"-6o° io"-67° 22 -100 2o"-93° 2o"-9o° 16"- 2o"-98° i6"-95°, 15"- i8"-6s° 13 "-80° But in spite of the rapid growth of single trees the yield per acre per annum is not high because the trees do not stand close to- gether. Generally speaking the density per acre is one-half to one-third of that in the types previously considered. This is due to the lack of available moisture. Both the runoff and the flyoff are rapid and hence there is not as much available for tree growth as in the cooler northeast. The low average yields per acre in virgin stands have already been referred to and the yield figures available tell the same story, large trees individually but few per acre. 1 See reports by Dr. A. D. Hopkins, U. S. Bureau of Entomology. 76 SOUTHERN HARDWOODS YIELD PER ACRE — SOUTHERN HARDWOODS U. S. Forest Service Data Scrub pine, Maryland. . . . ; Yellow poplar, Virginia. . . Yellow poplar, Tennessee. Hickory Red cedar Quality l site, pure, even aged stands cubic feet 2510 3425 2000 75 cubic feet 4650 545° 4000 500 1500 cubic feet 925 2400 cubic feet 1300 These figures are unsatisfactory at best because they do not differentiate between the types, cove, slope and ridge. Unfor- tunately, there are no really satisfactory yield data in existence. However, as a guess, using the meagre information available, the average annual growth conditions in even aged stands is esti- mated to be: Cubic feet Cove 50 Slope 30 Ridge 10 Or in other words it is unreasonable to expect in a rotation of 100 years more than the following amounts unless the stands are thinned intensively: Cubic feet Board feet Cove 5000 30,000 Slope 3000 18,000 Ridge 1000 6,000 And even these figures could not be realized unless there was complete stocking and thoro fire protection. Timber Valuation, — It is difficult to generaKze in regard to the method:3 of estimating. There are so many variable factors. In the first place the size of the tracts differs greatly in the different regions. In the southern Appalachians they tend to be large because there are few farms to cut them up, but even there there is no uniformity. The grant system of selling land has led to the setting aside of small holdings of less than 100 years in between TIMBER VALUATION 77 the boundaries of the larger tracts. In the Ohio and upper Mis- sissippi valleys the holdings are commonly small since they are merely portions of farms which could not be tilled to advantage. Obviously a larger per cent of a small tract must be estimated than of a large tract. Another complicating factor is the variation between tj^es. This has already been referred to. Fortunately, however, the type which contains the most timber, the cove type, is the most accessible while the scantily timbered ridge type is the least so- In estimating, therefore, it is not necessary to take a uniform percentage of the three types but the amounts covered should stand in the ratio of 5 : 3 : i. In other words, if a 5 per cent estimate is to be made of the ridge type, 1 5 per cent of the slope type should be covered, and 25 per cent of the cove type. The third obstacle to be overcome is the variation in merchant- able limits. Each species must be investigated locally before it is impossible to say to what size it should be estimated because the diameter limits are determined by the local markets. In general, however, it may be said that lumber should not be esti- mated below 10 inches dbh. and six inches in the top, cord wood eight inches dbh. and four inches in the top, poles to a top diam- eter of five inches and posts to three inches at the top end. The actual costs per acre of estimating southern hardwoods run from 45 cents to 3 cents with an average of 10 cents per acre where the work is done in the usual way, i.e., strips 66 feet wide run out from the base line in cardinal directions so as to cross the topographic features as nearly as possible at right angles. The Twelfth (1900) Census gives the following figures for aver- age stumpage values for the species in this typ^ : Per M WTiite pine $3 . 66 Hemlock 2.56 Shortieaf pine 1.12 Black walnut 5 . 00 Chestnut 2. 71 Oak, white 318 Yellow poplar 2.81 ijS SOUTHERN HARDWOODS These have, of course, no interest at the present time except a historical one and to show relative values. What the stumpage prices may be on any tract depends upon the cost of logging and manufacture and the average sale value for the lumber f.o.b. the mill. For softwoods, including yellow poplar, the following figures were conservative in 1914: PerM Felling and bucking $1 .00 Skidding 2 . 00 Hauling to the mill 4 . 00 Sawing, planing and loading 7 .00 Total $14.00 Hardwoods cost at least S5 more per M because the felling, haul- ing and sawing are more expensive on account of the greater weight, hardness and crookedness. In order to determine costs with varying labor prices average costs in man and horse hours per INI are given below, separately for hardwoods and softwoods: Softwoods Hardwoods Man Hours Horse Hours Man Hours Horse Hours Felling and bucking Skidding and hauling to mill (5 miles) Milling 3 6 4 16' 6 10 ■ 6 25 Totals 13 16 22 25 Since labor makes up 80 to 90 per cent of the total cost of these items it is possible to get a very close approximation of the whole charge from these figures. The uses to which white pine and hemlock are put have already been discussed. Shortleaf pine, like most softw^oods, has a variety of uses. The better grades command a good price as flooring and interior finish, wliile the poorer grades make excel- lent common lumber, railroad ties and wood pulp. The prices which material fit for these various uses brought in 19 14 were as follows f.o.b. the mill: TIMBER VALUATION 79 Floorins; and finish (30 to 35 per cent of the total cut) $25 . 00 per M Common lumber lo.oo per M Railroad ties lo.oo per M Wood pulp 5 . 00 per cord Black walnut, hickory, chestnut, and oak have already been discussed under the white pine type so it is not necessary to detail here the uses to which they are put and the values received for the various grades. Yellow poplar is one of our most valuable and widely used woods. On account of its large size, clearness, and softness it is in great demand for interior finishing. For this purpose it com- manded a value at the mill of $40 per M in 1914. The lower grades go into boxes, crates, vehicles, etc., in fact everywhere where durabiHty in contact with the ground is not a prerequisite. The average mill run value was $25 per M in 1914. The tops and limbs may be worked up into pulpwood and brought $5 to $9 per long cord at the pulp mills in 1914. Black cherry has its main use in furniture where it may be used as a substitute for mahogany or in its own name. The wide clear boards demanded for this purpose were worth $45 per M f.o.b. the mill in 1914. Smaller pieces are worked up into handles for small tools. Locust has a hard, durable yellow wood which takes a high polish. Its most important uses are for insulator pins, railway ties and fence posts. The average value of lumber at the mill did not exceed $25 per M in 19 14. SUMMARY — COSTS AND VALUES 1914 Species White pine. . . Shortleaf pine Hemlock Black walnut. Hickory Chestnut Oak Yellow poplar Black cherry. Locust Logging and manu- facturing costs Average sale value Margin for stumpage rrice and profit $14.00 $25.00 $11 .00 14.00 20.00 6.00 14.00 18.00 4.00 20.00 40.00 20.00 20.00 25.00 5.00 15.00 20.00 5.00 20.00 25.00 5.00 14.00 30.00 16.00 20.00 3500 15.00 20.00 25.00 5.00 8o SOUTHERN HARDWOODS Land Values.^ — Land values are easier to determine for these types than in the previous ones because all except the ridge types have some agricultural value. The coves, in fact, are usually deep soiled and fertile enough for fami land and should be so used if they are sufficiently large and accessible. In other words farming is their highest use if workable farm units can be made from them. This is the case except in the mountains, and prac- tically all the cove type throughout the Mississippi and Ohio val- leys is so used. Its value is mainly determined by its accessibil- ity. In a region of railroads and good roads $200 an acre is not excessive while uncleared stump land of the same quality and having the same climate but inaccessible may not sell for more than $10 per acre. For timber productive purposes it is worth between $5 and $10 per acre. The slope t}^e naturally has a lower value because it will yield less. Hence, more than $5 per acre cannot profitably be paid for it for forest purposes under present market conditions. It is generally too steep for farming but can be used for pasture in limestone regions. Other types of soil wash so badly that a grass cover cannot be maintained. The ridge type is likewise usable for grazing but only lime- stone soils w^ll make permanent pastures. For timber produc- tion the value is less than $1 per acre because of the excessive washing and drainage. Taking the three types together the land has practically no present value. Sales of large tracts of mountain land including the three t}q>es have never taken into account the land values but have been based entirely on the amount and quality of the timber until the Forest Service began buying land in the southern Appalachians. The Government has used the following figures: Per acre Cove type $5 . 00 Slope type 3 00 Ridge type i . cxj CHAPTER VIII PINON AND JUNIPER General Conditions. Location and Extent. — This is the type of woodland which occurs on the foothills of the Rocky Moun- tains in western Texas, New Mexico, Arizona, Colorado, Utah, Nevada, California, Idaho and Oregon. Above it lies the western yellow pine and below it stretches the plains country with its sparse vegetation of sage brush and buffalo grass. The climate of the type may be characterized as a hot, dry one, but as might be expected in a type with such a wide range there is a considerable local variation. The mean annual temperature, for example, ranges from 65 degrees to 45 degrees. With the annual precipitation there is less variation. It is quite uniformly 10 to 15 inches. But again, the length of growing season differs greatly from north to south. In New Mexico five to six months are free from frost whereas barely four months have mean annual temperatures above 32 degrees in the northern part of the types range. The topography and soil are varied and do not seem to have any controlling influence on the distribution of the type. Gen- erally, however, it occupies a well drained slope with a deep loamy soil but the type is found on shallow soiled hillsides pro- vided the climatic conditions are right. The two species which give their names to the type are the only arborescent forms which occur in any abundance. The pinon, Pinus edulis, is not more abundant numerically but the larger size which it attains and the edible character of its seeds makes it the more important commercially. The junipers, Juniperus. are often more numerous individually but their small size makes them less valuable for firewood and hence they are the subor- dinate species. A striking feature of the type is the openness of the stands. The trees are scattered with open places in between 81 82 PINON AND JUNIPER which are covered with grass if fertile and moist enough but bare if dry and sandy. Since the trees arc seldom large enough to make saw timber an idea of the total volume can not well be expressed in board feet. The cubic foot is the usual unit of measurement. The stand per acre seldom exceeds two cords and an average for the type thruout its range would be nearer one cord. The growth is relatively slow on account of the dryness of the climate. For yield prediction there is little foundation. The type has had so Uttle commercial value that its growth has not been investigated. It is only possible to say that the average growth per acre per annum does not exceed one-quarter cord. Even this small annual accretion may be retarded by such parasites as mistletoe and the cedar apple. No especially destructive insects have been reported as yet from this type. Timber Values. — The only wood products that the type fur- nishes arc fence posts and fuel. These may be cut as small as an inch at the top end and three feet long. The cost of cutting is relatively high on account of the scantiness of the stand but labor is cheap so that $2 a cord is usually ample. Delivering is done in great part by burros, the wood being bound on pack saddles. This costs about 50 cents per mile per cord on account of the expense in handling the many small pieces into which fuel- wood has to be cut to allow it to be packed readily on the burros. As a consequence the total delivered value is in the neighborhood of $5 per cord. This leaves a stumpage value of about $1 per cord for the owner of the standing trees. Land Values. — From the figures given above it follows that the pinon-juniper t>TDe has a negative value for the production of wood alone. It is only where the tree growth has additional use- fulness as a protective covering to prevent erosion and hinder rapid runoff that the trees can profitably be retained. This use is difficult to measure but it is a real one as the many instances where water is conserved in this way for domestic and irrigation purposes show. The absolute value depends upon the demand but $1 per acre may safely be set as a minimum. An equitable way to determine the value in a specific case would be to deduct TITLES 83 from the sale value all costs of construction, as, for example, the masonry work in a retaining dam, and assign the remainder as the conservation value of the growth on the watershed. To make this more concrete assume the case of a town that gets its water supply from a valley in the pinon-juniper type. The capital- ized value of the annual water rentals in the town amount to $5000. The cost of constructing a dam including ail necessary roads, interest charges, etc., and the capitalized value of the annual costs of operation and maintenance total $4500. This leaves a balance of $500 for the conservation value of the water- shed, or $2 per acre if there are 250 acres. Titles. — Titles present no special difficulties because this type usually occurs on land that has been surveyed. This means that the boundaries are easy to locate and that transfers have been accurately described by quarter sections. Smaller areas have not usually been sold because the land has so small a value per acre. Its main use is for grazing and at least 40 acres are needed to keep a cow or horse during the year. Consequently the transfers have commonly been in large blocks for the use of some large cattle or sheep outfit. CHAPTER DC CHAPPARAL General Conditions. — The plant formation in which occur sclerophyllons, dwarf, evergreen shrubs and trees is confined to southern Cahfornia and southern Arizona. Various species of shrubs are found but the type takes its name of " chapparal " from the dwarf oaks which occur in it. Approximately 10,000,000 acres are included. The rainfall according to the Weather Bureau records varies from 9.54 inches at San Diego to 21.42 inches at San Luis Obispo. The average is, however, less than 15 inches. 60° F. is the mean annual temperature with a range from 22 degrees to 109 degrees and hence the evaporation is high. As a consequence there is a very small amount of moisture available for plant growth more especially since the rainfall is concentrated during the winter months and runs off rapidly. The length of the growing season is not determined so much by the number of months during which the thermometer is above freezing but by the period during which there is enough moisture. Chapparal is confined to the slopes of the mountain ranges which are high enough to be above the arid plains country. This is arid because the mountains intercept the rain bearing clouds from the Pacific Ocean. Even the drought resisting vege- tation of the chapparal cannot creep down into these areas of scant rainfall. The type is therefore confined to the lower slopes of the mountains of California and Arizona between elevations of o to 8000 feet above sea level. The lower Hmit is only reached near the Pacific Ocean where the rainfall is relatively abundant. Inland the chapparal has to ascend the mountains to obtain enough soil moisture. As a consequence the topogra- phy of the type is characteristically steep and much cut up while the soil is thin. 84 TIMBER AND LAND VALUES 85 Plummer's studies show that in southern California the distri- bution of genera by number is as follows: Per cent Adenostama 39 Quercus 14 Ceanothus 14 Arctostaphylos 10 Cercocarpus S Artemisia 4 Other genera 14 100 Of these only the species of oak (Quercus) attain tree form but even they are much dwarfed and can only be used for fuel and fencing. As might be supposed from the dry climate growth is very slow. An annual increment of one-fifth of a cord of firewood per acre per annum is the best that may be expected. Fire is the worst enemy of the type and may burn the roots so deeply that a ground cover will not reestablish itself for years. Timber Land and Values. — Since the type furnishes nothing but low grade fuel and fencing the question of stumpage values can be treated briefly. Were better material available the dwarf trees would not even be considered for these purposes but the scarcity of trees in the arid region gives chapparal firewood and fencing an average value of $8 per cord, delivered. The cutting, stacking, seasoning and delivering cost a great deal on account of the scattered condition of the trees and the high price of labor. Hence there is seldom a margin of more than $3 per cord for stumpage and profit. With the average stand of two cords per acre, the stumpage value of the timber never exceeds $5 per acre. For the conservation of water, however, the chapparal possesses a high value whenever settlement creates a demand for domestic or irrigation supplies. This is the prime use of the Cleveland, Angeles, and Santa Barbara National Forests and without such protection the cities of San Diego, San Bernardino, Los Angeles and Santa Barbara would suffer greatly for lack of water. This value is difficult to appraise accurately but $10 an acre does not seem an excessive figure where the water supply of a large city is in puestion. 86 CHAPPARAL Agriculturally the type is valueless except for a limited amount of grazing on account of the arid climate and steep slopes. Goats and sheep can obtain a certain amount of winter grazing but this use seldom creates a land value of more than $io an acre adjacent to settlements. The greater part of this t}T>e which is grazed has been considered too poor for private appropriation and remains in the hands of the Federal Government. Occasionally these lands are valuable for mineral deposits. Land Titles. — Titles are seldom difficult to trace because the nearness to settlement and demand for mining have forced the survey of the lands within the type. Holdings are for the most part small. CHAPTER X WESTERN YELLOW PINE TYPE General Conditions. — The timber type in which western yel- low pine is the dominant species is found all the way from the Canadian line to the Mexican border. Patches of greater or less extent occur in all the states west of the Great Plains. Large solid bodies do not, however, occur in Nevada. With such a range the cHmate of the type must necessarily vary within wide limits. For example, the annual average temperature varies from 45 degrees to 60 degrees while the num- be'r of months during which there is no growth on account of cold range from three in southern New Mexico and Arizona to seven in northern Montana. In fact the only climate factor which is fairly uniform is the annual precipitation. This never exceeds 25 inches and has a normal range between 15 and 20 inches. Its distribution is not, however, nearly so regular. In the southwest 44 p>er cent of the annual precipitation comes in the summer months of June, July and August while in the northwest only 25 per cent falls during the same period. Such a wide range of climatic conditions has naturally resulted in considerable varia- tion in the form of the species. In the warmer and drier parts of its range where the scant rainfall is barely sufficient the cones are small and the seeds encased in thick scales. Where there is more abundant moisture the cones are larger and do not retain the seeds so tenaciously. The yellow pine type is confined to the foothill region of the Rocky Mountains and hence occurs on the lower slopes of the higher mountains. These are usually alluvial in origin or at least covered with loam, sand or gravel to a good depth. The exact effect of the soil upon western yellow pine has not been definitely determined because it grows thriftily on a variety of soils provided they are well drained. Swampy or alkaline soils 87 WESTERN YELLOW PINE TYPE Fig. 8. Distribulion of the Western Yellow Pine T>T>e . GENERAL CONDITIONS 89 are apparently unfit. But the soil seems to be secondary in importance to the climate. In other words yellow pine is now occupying the foothill region of the Rocky Mountains not because the soil conditions are particularly favorable but because it has been more successful than any other western species in adapting itself to the cUmatic conditions which characterize the foothill region. Western yellow pine is so predominant within the type that the other species which sometimes occur with it may be briefly disposed of. On the lower edge of the type where the foothills run out into the plains pinon and juniper advance a short dis- tance into the type. On the upper edge or on north or east slopes within the type Douglas fir, lodgepole pine, western larch, and Alpine fir sometimes occur but all these species are typical of climates cooler and moister than that of the yellow pine type. Hence for the present purpose the type may be said to be uni- formily pure in composition. The other species are never of great commercial importance. Damage is confined to four main causes, fire, insects, fungi and wind. Of these the most active, the most serious, and yet the easiest prevented is fire. The white man has adopted the Indian's habit of frequent burning so that there is scarcely an acre of the type that has not been burnt over at one time or another. The danger is the more insidious because the apparent damage done is small. The mature trees are thick barked, crown fires are rare and a fire seems to merely burn up old grass and use- less fitter. But countless young trees are killed in this way, the soil is impoverished and an investigation reported by T. T. Hunger in the Proceedings of the Society of American Foresters for April, 191 4, shows conclusively that serious harm is done the mature timber. He concludes that, " each surface fire, no matter how fight, kifis a merchantable tree to each two or three acres, fire scars 42 per cent of the remaining merchantable trees so that they may fall victims to the next high wind or surface fire, and ' pitches ' the butts of a large proportion of the best trees." But more serious in the long run than this direct damage is the indirect loss thru the trees being weakened by fires so that they go WESTERN YELLOW PINE TYPE fall an easy prey to insects and fungi. One of the most destruc- tive members of the genus Dedroctonus, or bark beetles, attacks western yellow pine and if the conditions are favorable for its rapid increase damage over a wide area may result. For example in the Black Hills of South Dakota the numbers of this beetle increased so rapidly that practically all the mature timber over an area of 500,000 acres was killed and forced sales were neces- sary to salvage any of it. The National Forests in California are having a similar experience at the present time. Such infestations get started because the beetles find weakened trees in which they may breed in large enough numbers so that they successfully attack vigorous trees and overcome them by sheer force of numbers. In fact this habit of seeking out weakened individuals where there are but few of the beetles is taken advan- tage of in combating infestations in the early stages. So called " trap " trees are girdled in the late summer so that the beetles may lay their eggs in them. Then these trap trees are felled, peeled, and the grubs destroyed before the adult beetles can emerge the following spring. In the same way certain species of fungi, notably red rot, Trametes pini, attack the western yellow pine when trees have been weakened by fire or other causes and spread rapidly unless the surrounding timber is thoroughly sound and healthy. With the great variety of climatic conditions under which yellow pine grows it is natural that there should be a Avide range in rates of growth. The following figures are for growth under favorable natural conditions but do not represent what can be done under intensive management. GROWTH IN 100 YEAR S Diameter Height Arizona Inches 14 20 13.2 Degrees 48 California 94 Oregon 62 Unfortunately no accurate figures can be presented for density and yield per acre in a given time. It is only possible to state TIMBER VALUES 9I in a general way that from 75CX) to 17,500 board feet — 1500 to 3500 cubic feet — has been grown under natural conditions in 100 years. Protection and thinning should, of course, greatly increase these yields. Timber Values. — The cost of estimating stands of yellow pine should be relatively low because the topography is not rough, the stands are of a uniform density and size, and the Government section — a square mile — is the standard unit of subdivision. Hence, the cost per acre for an estimate which shows the amount and quality of the timber, the topography and the cost of logging should not exceed 5 cents for a 10 per cent estimate. The only feature that is liable to increase this cost is the presence of box canyons which must be crossed. This is always time con- suming and sometimes dangerous. A 10 per cent estimate is usually intensive enough because of the uniformity in the stands and the present relatively low value u- of the timber. The smallest merchantable tree at the present time is one with a top diameter of 10 inches while logs can seldom be run higher than to a diameter of six inches in the tops. The average stumpage value of western yellow pine according to the 12 th Census was slightly over $1 per M. This was 20 years ago and prices have of course risen in the meantime but the fact remains that this tree does not yield a large per cent of high grade finishing lumber. It is mostly used for framing and rough construction so that while it is true that about 15 per cent of it on the average brought $30 to $40 f.o.b. the mill in 1916, the mill run sold for not more than $20 per M. Only rarely can the slabs, edgings and tops be disposed of to advantage for cord- wood. The average grades, the per cent of each and the price they bring at mill are given in the table shown on p. 92, com- piled from data in Hunger's " Western Yellow Pine in Oregon," Bulletin 418, Department of Agriculture. The possibility of using this species for turpentine deserves mention at least. It was so used in California during the Civil War when the southeastern supply was cut off and can be utilized again but so far it has not been possible to compete with the 92 WESTERN YELLOW PINE TYPE Grades B and better. . C select D select No. I shop. . . . No. 2 shop. . . . No. 3 shop. . . . No. I common No. 2 common No. 3 common No. 4 common Per cent of total cut F.O.B. value 6 $35 oo 7 30 oo S 20.00 lO 25.00 i6 16.00 7 II .00 8 21 .00 i6 14.00 20 II .00 5 8.00 southeast under normal conditions by reason of the cheap negro labor obtainable in working long leaf pine. Hence, the turpen- tine value need not be reckoned in calculating the stumpage price of the average tract. The normal method of utilizing western yellow pine is to fell and buck the trees into logs 16 feet long, bunch the logs, use four-wheeled truck or big wheels to get them to the railroad and then freight them to the mill. Portable mills have not been used to any great extent because the difficulty in getting water in suitable quantities has made it better to locate a large mill in a central place. Then too such a mill is better equipped to turn out the higher grades. This is an advantage since the local market will not absorb readily the total annual cut and much of it must be shipped to such middle western markets as Kansas City, St. Louis and MinneapoHs. Average costs in 19 14 were as foUows: Felling and bucking $1 . 00 Skidding and hauling to railway 4 . 00 Freight to mill, 15 miles 1 . 00 Milling 5 . 00 Si I .00 There is, therefore, a possible margin of S9.75 for stumpage and profit if an average sale value of $20 can be secured. No account need be taken of possible returns from cordwood because LAND VALUES 93 this is too uncertain. As a matter of fact stumpage prices range all the way from $i to $6 per M with $3 a high average. Expressed in terms of man hours and horse hours per M the costs of an average operation would be as follows: Man hours Horse hours Felling and bucking 2 To mill 7 15 Milling 4 13 15 Railway hauling is only about half labor costs so that man hours are of little value for it. Land Values. — Besides its value for the production of timber yeUow pine land can frequently be used for agriculture. For tliis purpose, however, it cannot have more than a 5 per cent slope because other\\'ise it cannot be irrigated and will not " dry farm " well by reason of the rapid drainage. But if fairly level the land can be used for any crop suited to the climate. In fact much of the homesteading in the foothills of the Rockies has been done in this type and very good results obtained where there was opportunity to irrigate. The cost of clearing the land for cultivation is not excessive because there are relatively few stumps. Fifty dollars an acre ought to clear and fence such land and the net annual returns should total $5, so that its pro- ductive value at 3 per cent would be over $100. As a private investment the growing of yellow pine is not attractive. Even with a stand of 15,000 board feet in 100 years and interest at 3 per cent a reasonable return cannot be secured. Where other considerations enter, however, the returns are well worth while. For example, the National Forests yield not only timber but watershed protection for the irrigation interests and support annually a large number of cattle and sheep. Hence from the pubUc point of view the highest use to which any of the yellow pine land not fit and needed for tillage can be gut is the raising of timber as the main crop. It would therefore appear that land of this tj^e should not be cleaned for tillage unless it can be irrigated or dry farmed. The tendency has been to clear up more land than can be properly farmed. 94 WESTERN YELLOW PINE TYPE While grazing does not bring large returns in itselt — 5 to 10 cents per acre per annum — it deserves consideration as a second- ary source of income since it can be practiced in connection with forestry. After suitable reproduction has been secured cattle and horses will do little damage to the young trees, and even sheep may be allowed to graze the area as soon as the trees get more than 10 feet high. Titles. — Land disputes are rare within this type because the boundary lines are plainly marked and there have not been many changes of title since the Federal Goverrmient issued patent. For land of level or gently rolling character the mile square section system of subdivision is ideal. Furthermore there has been little excuse for slipshod work in surve3dng so that yel- low pine land is generally well marked and accurately subdivided. Likewise the record of transfers is generally free from the con- fusion that is found in the archives of the counties which have been settled for 30 years or more. CHAPTER XI LODGEPOLE PINE TYPE General Conditions. — This type occurs in the higher mountains — at least 4000 feet above sea level — of Colorado, Utah, Wyoming, Idaho and Montana. Altitudinally it is the next important timber type above the western yellow pine and reaches nearly to tree Hne on some of the lower and more protected mountains. Generally, however, it gives place to Engelmann spruce and alpine fir before tree Hne is reached. Since it occurs at a relatively high altitude the precipitation is naturally greater than in the yellow pine type. Exact figures are not available but it seems safe to estimate that the annual precipitation averages between 25 and 35 inches. The mean annual temperature is low, 40 degrees to 45 degrees, as might be surmised from the altitude. Likewise a high percentage of the year has temperatures below freezing. In fact the growing season does not exceed five months. From the previous description it follows that the topography is generally steep and rough. Lodgepole pine does, however, need a fair degree of Boil depth so that it is never found in abund- ance on ledges or rock cliffs. Usually no other species is vigorous enough to contest succesls- fully with lodgepole pine for the possession of soil adapted to the latter. It is a prohfic seeder, a thrifty grower and has few enemies. Hence it usually occurs in pure stands over large areas. Only occasionally are there small groups of aspen, Douglas fir, alpine fir, white bark pine or western larch mixed with it. While there is great range in the growth conditions the follow- ing figures give a fair notion of what lodgepole pine can do under good conditions in 50 and 100 years. so years loo years Diameter 7.5 inches 9 inches Height 46 feet 68 feet Density per acre 1250 600 Yield per acre 2250 cubic feet 10,800 board feet 95 96 LODGEPOLE PINE TYPE Fig. 9. Distribution of the Lodgepole Pine and Engelmann Spruce Types TIMBER VALUES 97 Timber Values. — The roughness of the topography is the only factor that makes estimating in the lodgepole pine type expensive. The stands are uniform in size and density and the section cor- ners are easy to find. Therefore, a cost of five cents per acre for a 10 per cent estimate is representative of average conditions. Lodgepole pine is not quoted separately in the census figures because it is only of importance locally, but the stumpage price for any particular tract can be figured by deducting the cost of log- ging and milling from the sale value of the finished product. On account of its small size — very few trees attain a diameter breast- high of more than 14 inches — relatively little lodgepole pine is sawn. Most of it is used in the round as mining timbers, fencing or hewn railroad ties. Moreover, the little that does go thru the sawmill makes narrow, low grade lumber which sells for less than $30 per M at the mill. The market for slabs and edgings is neg- lible and the tops are so small that little cordwood can be cut from them, so that no return can be expected except that to be obtained from the main bote. Since a tie operation is more typical than a lumbering job figures \vill be given for the former in order to show what the cost of getting lodgepole timber in shape for market is under normal conditions. Per tie Felling, hacking and peeling 15 cents Hauling four miles to railway 15 " Total cost 30 " Value at railway 40 " Margin for stumpage and profit 10 " To convert this margin per tie to the basis of M feet it is neces- sary to multiply by 30 since the average tie contains 33^ board feet. Hence the margin per Mis $3.33. Actual stumpage prices range from $1 to $5 per M with an average of not more than $3. Even this is relatively high for such small sized limiber but lodge- pole pine occurs in a region where large timber is scarce and the settlers are glad to get almost anything in the way of wood. In man hours and horse hours the average costs per M will be as follows: 98 LODGEPOLE PINE TYPE Man hours Horse hours Felling and bucking 4 To mill 7 15 Milling -. 4 15 15 Land Values. — Most lodgepole land is too rough to be tilled so that its main value is for the production of timber. For this pur- pose alone it will not pay a profit but a combination of timber raising, grazing and watershed protection does yield well. Where the land is not too rough and steep to till and irrigate it commands the same prices as raw yellow pine land, $5 to $10 per acre, and has the same productive capacity. For grazing it is not so valuable because the shade of lodgepole pine stands does not permit the more valuable grasses to thrive. Hence, only so called " weeds " are found in this type and they are not palatable except to sheep. Five acres are needed to keep a full grown ewe or wether during the summer which means a value of about $2 per acre. Titles.— Titles are in all respects similar to those in the yellow pine type except that the land is less liable to have been surveyed because of its greater inaccessibility. CHAPTER XII ENGELMANN SPRUCE TYPE General Conditions. — Capping the tops of the higher peaks in northern New Mexico, Colorado, Utah and Wyoming are unique stands of timber which in their luxuriance and density remind one of the tree growth of the northeast Qr northwest. In these Engelmann spruce is the dominant species. Naturally they do not occupy any considerable area because the peaks extend upwards and not outwards and they are not much known either commercially or scenically. But no description of Rocky Moun- tain timber resources would be complete without a reference to this very distinct and locally important type. On account of the inaccessibility and bleakness of their location no accurate, long time climate records have been kept within this type. It is merely possible to say in a general way that the precipitation is evenly distributed, relatively heavy, at least 35 inches, and that the mean annual temperature is below 35 degrees. Hence it follows that the growing season is short. In fact at least eight months of the year have average temperatures below freezing. As stated above this type is confined to the higher peaks so that the topography is rough and steep and the soil shallow. Like its eastern relative, the red spruce, Engelmann spruce can cling to mountain sides where the actual mineral soil is not deeper than a few inches. Normally the stands are nearly pure in this type but on the lower edges on the deeper soiled sites lodgepole pine, Colorado blue spruce, aspen and Douglas fir occur. In the southern part of its range Engelmann spruce is also occasionally associated with bristle cone and limber pine. It loses its capacity to dominate as it approaches the Canadian line. For example in northern Idaho pure stands are very rare and Umited in extent but mixtures 99 lOO ENGELMANN SPRUCE TYPE in which spruce is found with Douglas fir, lodgepole pine, western hirch, silver pine, hemlock and western red cedar are not uncom- mon. The only other species that has the same tolerance for the thin soil and high wind of the mountain summits as Engel- mann spruce is alpine fir but it is seldoin more than a subordinate associate. The merchantable contents vary from 3000 to 50,000 feet with an average of 5000 feet per acre. As might be expected from the rigorous climate and thin soil growth is slow. The following figures show what 100 years will give under average conditions: Diameter 6.2 inches Height 60 feet Timber Values. — The cost of estimating is neither cheap nor very expensive. Five cents an acre should give a 10 per cent estimate. The factors that make for cheapness are uniformity of stand and size of timber while the rugged topography and rela- tive inaccessibility increase the cost. Inaccessibility has two phases wliich may both be of importance. In the first place the Engelmann spruce type is usually a long distance from roads and hence transportation is slow, difficult and costly. Secondly, the fact that the type is hard to reach reduces the probability of its having been surveyed. The Land Office has naturally con- centrated on the more accessible public land in the foothills which was in demand for tillage and grazing as well as for the timber. Furthermore, even when surveys have been made they are likely to be poor in quality. The contract method of surveying is not conducive to accurate work under difficulties because the surveyor's main object is to cover the largest possible area at the minimum cost. In addition the inspection of moun- tain survey work has been notoriously lax. The temptation to hurry over the inaccessible mountain peaks is very strong and only the most conscientious inspectors have resisted the impulse to be lenient with contract work in such localities. This failing of inspectors has been taken advantage of to the fullest by the contract surveyors. The following minimum diameter limits are used in esti- matmg timber within this type: TIMBER VALUES lOl Species Engelmann spruce Alpine fir Lodgepole pine Douglas fir Aspen Top diameter Inches 5 S 4 5 •3 Lodgepole pine is cut to a smaller size because its taper is less abrupt than the other species. Aspen may be cut to eight inches in diameter breast-high since it is the best firewood to be had in the southern Rocky Mountains and much sought for this purpose. It is the only species that should be estimated in cords. None of the species in this type are listed separately in the Census because they are of only minor commercial importance as they grow in the type. This does not mean that Douglas fir, for example, is not an important timber tree but only that the individuals which are found in this type do not reach the general market. When used at all they are employed for local purposes only. Hence there do not exist any figures which show the varia- tion in stumpage prices for the species found in this type in dif- ferent states and in various years. It is only possible to say in a general way that no stumpage in this type is worth more than $5 per M. The values applicable to individual tracts must be figured out on the basis of average sale values and logging and manufacturing costs. Generally speaking logging costs are high because of the inaccessibility and small size of the timber. Its density and uniformity of diameter and height are the only factors that help to decrease the cost. Inaccessibility means high cost of suppHes and labor and small timber is more expensive to buck, haul and saw, the main items of logging and manufacturing cost. The following figures are averages based on the methods commonly employed in this type and representative of conditions in 191 5: — PerM Felling and bucking $1 5° Skidding 2 . oo Sawing 4 • 00 $7.50 I02 ENGELMANN SPRUCE TYPE Portable mills are the rule and they are placed as near the tim- ber as possible. This is why the cost of getting the logs into the mill is low. But this is offset by the distance from market. A mill set up near the head of a timbered gulch may be close to its source of raw material but there is always a long haul to the rail- road or the ranches in the valley beneath. Hence the sale value at the mill was seldom more than $15 per M in 191 5 for the log run and commonly less. This left a possible margin for stumpage and profit of $8.50. This was the maximum. The average was nearer $5 per M, nor could this be materially in- creased by the sale of firewood. The tops and slabs will seldom pay for salvaging. Aspen is the only good fire wood in the type. The costs in man hours and horse hours will average as follows: Man hours Horse hours Felling and bucking 3 Skidding to mill 3^ 45 Milling 3I 10 4^ No appreciable difference exists in the average sale value per M of the log run of the different species, because they are all used for the same purpose — rough construction. Of course there is variation in the durability and workability of the species for different purposes. For example, no one would use a spruce barn sill if a Douglas fir one could be obtained, but the difference in durability would amount to only a few dollars per M and per- haps be offset by the greater usefulness of spruce for other pur- poses. The fact remains that nearly all the species fouad in the Engelmann spruce type can be used interchangeably in the uses for which they are desired provided the sizes are right. Land Values. — Since tillage is out of the question on Engel- mann spruce land it has value only for the production of timber, occasionally for grazing, the protection of water suppUes, and for scenery. For the first purpose it is not an attractive investment for the private individual because the rigorous climate inhibits rapid growth and the yields are therefore low in spite of the density of the stands. This very density reduces its value for grazing because grass and herbs do not find sunlight enough for TITLES 103 their growth. Only sheep can find anything to eat in this type. But the density is a favorable factor again when it comes to con- serving moisture and spruce stands play an important role in this way. They are especially useful because they are commonly located at the heads of the valleys of the streams which furnish the supplies of irrigation water for the valley farms below. Another very important use from the national point of view is their scenic value. No one will deny that much of the beauty of the higher Rocky Mountain peaks is due to the dark green patches of Engelmann spruce clinging to the mountain sides. We are at last beginning to recognize this function as a useful one and insisting that such mountain slopes be protected from reckless denudation. In other words this intangible use has so great a value that the public will not- permit cutting in which no provision is made for a second crop and to enforce this mandate has created National Forests and Parks thru Congress. Hence, lands which will not pay dividends for the production of timber alone give handsome returns when the by-product uses, grazing, the prevention of erosion, the protection of water supplies, and recreation are considered. These by-product values the public, thru its agent, the Government, can afford to conserve. Titles. — No special difficulty need arise under this heading when the lands have been well surveyed. Unfortunately, for reasons explained above, this is sometimes not the case. Hence the location of much of this type is very vague and the chain of title is correspondingly confused. Unsurveyed lands cannot legally be transferred because the title remains in the Govern- ment until surveys are made and accepted by the General Land Ofiice. CHAPTER Xm SILVER PINE TYPE General Conditions. — This is a well developed but restricted t3^e confined to northwestern Montana, northern Idaho and northeastern Washington. Even within this area it is not found thruout but merely on the lower slopes of the mountains. It does not reach the upper slopes nor descend into the valleys but occurs abundantly only between elevations of 3000 and 6000 feet above sea level. This does not, of course, mean that the dominant species, silver pine (Pinus monticola,) is not found above or below these elevations. As a matter of fact it descends to sea level at the Straits of Fuca and attains an elevation of 10,000 feet in the Sierras. But the type is not of commercial importance except in the region referred to above. Climate seems to be the controlling factor in the distribution of this type. In general it is moderately cool and moist. To be specific, the total annual precipitation does not exceed 40 inches, the mean annual temperature is about 45° F., and only five months have average temperatures above 32° F. The type is probably restricted from extending to lower elevations because the precipitation is less in the semi-arid valleys while its upper limit seems to be determined by the length of the growing season. The topography of the lower slopes upon which the type is found is characteristically gentle. The type does not reach up on to the upper slopes. Hence the soil is deep and alluvial in character being derived mainly from the wash of the slopes above. While silver pine is the most abundant species and the most important commercially, red cedar (Thuya occidentalis) and hem- lock (Tsuga occidentalis) are also found in the t>^e. They always occupy a subordinate position, however. Both are tol- erant enough to grow well under the silver pine and mixed stands 104 GENERAL CONDITIONS 105 Fig. 10. Distribution of the Silver Pine Type Io6 SILVER PINE TYPE are two storied with the pine always on top. Stands may be divided by their composition into the following groups or sub- types : Stands per acre Pure silver pine 100,000 board feet maximum, 30,000 board feet average Pine and red cedar 200,000 board feet maximum, 50,000 board feet average Pine and hemlock 200,000 board feet maximum, 50,000 board feet average Growth conditions for silver pine on good sites may be sum- marized as follows: Age Diameter Height Yield in board feet «;o years Inches 7 10 14 5° 100 25,000 40,000 60,000 7K vears 100 years These figures are simply estimates since there are unfortunately no accurate measurements for the tree species in this type. Damage may be either negligible or very severe. Fires, for example, can ordinarily do little harm in the type because the stands are so dense as to keep the ground cover moist except in times of long continued dry weather. But when the woods do dry out a fire that starts on the ground quickly becomes a top fire and kills the entire stand. Hence, the damage is appalling in a serious drought. For example, the fires of 19 10 in northern Idaho killed outright thousands of acres of silver pine. While there are species of insects which attack the silver pine none of them have so far been reported in large numbers. Three fungi, Trametes pini, Polyporus schweinitzii and Fomes annosus have, however, been found to cause a large amount of heart rot. In the Cceur d'Alene region of Idaho investigation showed 7 per cent of the volume of the stand affected by these fungi. These studies by Weir and Hubert (U. S. Dept. of Agr., Bui. 799) covered 1400 trees on seven National Forest sale areas. Timber Values. — In this type as with eastern white pine the high value of the timber makes an intensive estimate necessary so that the cost is high in spite of the easy topography and uni- formity of composition. In fact, nothing less than a lo per cent TIMBER VALUES 107 estimate is safe in such valuable timber. As a consequence the costs per acre range from 5 to 10 cents, with the latter as a safer figure if an accurate estimate is to be made. Nor can the relatively level topography, uniformity of the stands in compo- sition, size and density, and the accessibility of the timber offset this single cost factor. Tliis is in brief a problem similar in every way to the estimating of Lake States white pine with the single exception that silver pine is not so near the market and hence not quite so valuable. The only Census figures available, those for 1900, give low average stumpage values because at the time they were gathered the white pine of the " Central Empire " had not been put on the market in any large amount. The following values obtained at that time: Silver pine $1 . 50 per M Red cedar o. 77 per M Hemlock Not considered merchantable Larch Not considered merchantable At present, however, stumpage values are much higher. This is the natural'result of market development. Intrinsically silver pine is as valuable as eastern white pine and can be used for exactly the same purposes. Naturally, however, trade preju- dices had to be overcome before a wide market could be found. Furthermore, a relatively low value can only be secured as long as wood is marketed as rough ungraded lumber. High prices are only paid for carefully graded lumber which is especially selected for the particular purpose to which it is to be devoted. The careful grading of silver pine only dates from 1903 while the sash and door mills which now work up the rough lumber into semi-finished form, are no older. Since, however, silver pine is a wood w^hich can be used for pattern work, cabinet making, and fine finishing it is fast commanding the same sale value as eastern white pine. This means that the average value of the mill run at Minnesota transfer was $35 to $40 per M board feet in 19 10 based on the following percentages of grades: Fine finishing lumber 10 per cent at $roo = $10.00 Sash and door stock 20 per cent at 40 = 8.00 Lower grades 70 per cent at 25 = 1 7 . 50 $35-50 io8 SILVER PINE TYPE While silver pine competes successfully with eastern white pine, the high stumpage prices which prevail in the Lake States do not hold good for Idaho and Montana. Nor is it reasonable to expect that they should when it is remembered that there is a long freight haul to the eastern markets. This is in fact the main item of cost and averages about $io per M. To this must be added the usual logging and milling charges so that it is seldom that there is a margin of more than $5 per M for profit and stump- age value. The costs of a typical operation in 1910 may be sum- marized as follows: Per M Felling and bucking $1 . 50 Skidding 2 . 00 Hauling, 5 miles 5°° Milling (sawing, planing, seasoning, etc.) 5 - 50 Marketing i • 5° Freight 10.00 Total costs $25.00 Average sale value 35 • 00 Margin for profit and stumpage 10 . 00 Expressed in man hours and horse hours per M these costs would be: Man hours Horse hours Felling and bucking 2 Skidding 3 4 Hauling 9 15 Milling 7 21 19 These figures may be safely used in estimating an average " chance " and presuppose the erection of a fair sized mill at some point on the railroad not too far from the timber. Then the logs are either brought in by the railroad, by tractor or by horses. The latter are the most expensive because they suffer severely from the dust. Especially during the summer this frequently gets to be six inches or more deep and only an iron lunged traction engine can keep hauling thru it day after day. At the mill the logs are washed and then put thru the saw, the plane and the dry kiln in order to get out of them the highest percentage of finishing lumber which will show a margin above the TIMBER VALUES 109 transportation charge to the eastern markets. For the low grade lumber, slabs and edgings there is no market unless the mill itself can use them for fuel. Many plants pay as much as 50 cents per M simply to dispose of them. Consequently the whole profit of the operation must be sought in the lumber which will repay shipment cost. The three main uses of red cedar are for shingles, poles and piling. For these purposes it commanded the following prices in 1915: Shingles: Extra stars, $1.43 per thousand shingles. Extra clears, $1.71 per thousand shingles. Approximately, $13 per M board feet f.o.b. the mill. Poles: Prices ranged from 55 cents for 20-foot, 4-inch top diame- ter pole to $33 for an 80-foot, 9-inch diameter pole or from $25 to $60 per M board feet. On account of the liigher proportion of small size poles $40 per M is a fair average price f.o.b. the shipping point. PiHng sells for slightly better prices than poles but must gen- erally be straighter and sounder. The cost of logging shingle material and making the shingles averaged as follows in 191 5: Per M board feet Cutting ". $2 . cx) Skidding i.oo Transportation to mill 2 . 00 Milling 5 . cxD $10.00 Poles and piles costs were as follows: Per M board feet Cutting and peeling $5 . 00 Hauling 20 . 00 Storage, loading, etc 1500 $40.00 no SILVER PINE TYPE Consequently the margins for profit and stumpage were $3 per M in the case of shingles and $5 for poles and piles. Western hemlock is similar to its eastern relative in properties, so that it can be used for the same purposes. There is not, however, as good a market for it. None of it is of sufficiently high quaUty to be shipped across the continent so that it is all used locally for dimension lumber and rough boarding. For these purposes it commanded an average price of $14 per M f.o.b. the mills in 1915. Since the logging, milling and other costs amounted to at least $10 there was only a margin of a few dollars for profit and stumpage. Land Values. — As explained above in discussing the typical soil of the type it is commonly a deep, well drained alluvdal loam. This is, of course, first rate agriculturally when the slopes are right for cultivation and in this connection it must be remem- bered that erosion is not the determining factor with reference to the slope but suitability for irrigation. Obviously steep slopes cannot be irrigated successfully without an expensive sys- tem of terraces so that only the level stretches have been sought for tillage. Still another factor has restricted the use of this type for agriculture and that is the cost of clearing the land. With the large number of stumps, frequently over 150 per acre, and the high cost of labor, land can seldom be cleared for tillage for less than $75 per acre. Such a large initial investment demands high returns such as can only be secured by a local market. As a consequence clearing has as a rule been confined to those level pieces of soil which can be cheaply irrigated and which lie close enough to a town to insure an eager demand for the hay, vege- tables and fruit raised. In other words, this is not a small' grain soil but one where the cost of clearing enforces intensive cultivation. For the same reason grazing is not extensively practised. The natural openings in the woods are few, mainly beaver meadows, and the crown cover is too dense to permit abundant grass or weed growth. Clearing the woods for grazing is, of course, out of the question. For growing trees this type has a value of at least $5 per acre. The value per acre for grazing is much less than this, $1 per acre, LAND TITLES III while the tillage value may be $ioo an acre if slope and market conditions are right. Generally speaking, however, the highest . use for at least 90 per cent of the type is the production of saw logs. Land Titles. — Northern Idaho and northwestern Montana are new regions but recently surveyed so that there are few cases in which title cannot be traced directly back to the Federal or State Government. The surveys themselves are for the most part well done because the high quality of the timber, the poten- tial agricultural value of the soil, and the presence of mineral deposits have all conspired to secure good surveys from the General Land Office. CHAPTER XIV SUGAR PINE TYPE General Conditions. — The sugar pine type is one of the illus- trations of how favorable the climate on our Pacific Coast is for the growth of trees. It lies immediately above the giant sequoia t>T)e on the western slopes of the Sierra and Coast ranges in southern Oregon and northern California and merges on the north into the luxuriant Douglas fir type, the heaviest yielding timber type in the world. In other words, the sugar pine type is that association of trees which has developed the capacity to thrive under conditions which are not moist and warm enough for the sequoias and are too warm for the best growth of Douglas fir. Commercially the type is of importance from Douglas County, Oregon, to Kern County, California, along the Sierra Range, a distance of 500 miles. In the Coast Range the north and south extent is less, 200 miles from Jackson County in Oregon to Glenn County, California. In an east and west direction the type ranges from 50 miles to 100 miles in width with an average of 60 miles. There is, consequently, roughly 40,000 square miles included within the type. Much of this area is, however, sparsely timbered. Three-fourths of the total stand is concentrated in the mountainous portions of Siskiyou, Trinity and Shasta Coun- ties, California. Altitudinally the type ranges from 3000 to 9000 feet above sea level but in any particular locahty there is seldom a variation of more than 3000 feet. In other words, where the type descends within 3000 feet of the sea as in the northern Sierras it does not ascend beyond 6000 feet while in the southern Sierras the range is from 6000 to 9000 feet. The climate of the type has certain marked <:haracteristics which differentiate it from that of its neighbors. As stated above the growing season is shorter and the available moisture less than GENERAL CONDITIONS "3 Fin. II. Distribution of the Sugar Pine Type 114 SUGAR PINE TYPE in the sequoia type while the Douglas fir type on the north has a shorter growing season but much more precipitation. To be specific, sugar pine and its associates thrive best with an annual precipitation of at least 40 inches altho they can endure a mini- mum of 20 inches. Likewise, the largest trees, 10 feet in diameter and 200 feet in height and scaling over 25,000 feet, are only found where the growing season is at least seven months long. Like the rest of California the heat of summer in this type is unrelieved by showers. Fully four-fifths of the precipitation falls during the early spring, late fall and winter. As was seen in discussing the location and extent of the type it is essentially a mountain form of vegetation. The valleys are too hot and dry to allow tree growth. At the other extreme sugar pine does not reach the summits of the Sierras, at least as a commercial tree, because of the cold. The type may, therefore, be characterized as a middle slope type. From this it naturally follows that the soil is of medium depth because great accumula- tions of alluvial soil are not found on mountain slopes but still the grades are gradual enough so that the bed rock is covered in most places with a moderate layer of soil. As with other forms of tree growth the chemical composition of the soil has little effect upon the growth of sugar pine and its associates. The physical characters of the soil are the controlling factors, reason- able depth, good drainage and good capillarity. By composition the type may be divided into two subtypes or cover types, the sugar pine-yellow pine subtype and the sugar pine-fir subtype. The former is the more abundant in the southern part of the type's range since it is an association of trees which are well suited to the hot, dry summers of the middle and southern Sierras. The important species in order of their abund- ance are as follows: Per cent by volume Sugar pine 25 Western yellow pine 20 ' White fir 15 Douglas fir 15 Incense cedar 10 JciTrey pine ^ 10 Sequoias 5 100 GENERAL CONDITIONS II5 Stands in this subtype range from 60,000 board feet per acre on the moister sites within its range to 2000 board feet on the drier sites with an average of 20,000 board feet. The sugar pine-fir subtype, on the other hand, is character- istic of the northern part of the type's range and is found where the cHmate is moist and cool enough for Douglas fir. The average stand per acre is 30,000 board feet with a range from 150,000 board fee't to 5000 board feet. The composition by vol- ume is as follows: Per cent Sugar pine 30 Douglas fir 40 White fir 30 This subtype occupies a much smaller area than the sugar pine- yellow pine subtype. Growth within the type is summarized in the following table: 25 years 50 years 75 years 100 years Diameter Height in feet 1 Sugar pine Yellow pine 3 Incense cedar I 2 3 Inches I 5 10 18 Inches 4 8 14 20 Inches I 5 8 14 10 35 60 92 15 45 65 94 5 20 35 65 Yield per acre all species board feet 400 1600 4000 7300 These figures are low because they have come from the measure- ment of virgin timber. Stands under management can be expected to grow much more rapidly because the better species could be aided to dominate the poorer individuals at an early age and thus shorten materially the struggle for supremacy. The yield, particularly, can be much increased. This will come, however, by making the stands more dense so that more trees will grow per acre. Virgin stands have been greatly decimated by fires, insects and fungi but there is no reason why reasonable care may not prevent the greater part of these losses. Fire is, as always, the main source of damage in this type. On account of the openness of the stand fires do not, however, get off the ground and burn the tops except in rare cases where a long Il6 SUGAR PINE TYPE continued drought is followed by very high wind. As a conse- quence only the small trees are killed outright but the larger trees are injured at the butt. This is particularly the case on a hillside where leaves, cones and branches collect on the upper side of the tree and form an accumulation of inflammable material that will burn long enough and hard enough to make deep scars. Such damage is not so serious in itself as in its indirect effect in weakening the trees so that they are more susceptible to insect and fungus injury. Similar results follow breakage by light- ning, wind, and snow. In such damaged trees bark beetles of the genera Dendroctonus and Buprestidie reproduce in numbers great enough to attack live timber successfully. Losses of 5 to 10 per cent of the total stand are not uncommon in this way. While several species of fungi attack the weakened trees in this type no serious damage to sound, living timber has been yet reported. In fact, sugar pine when protected from fire seems unusually resistant to diseases. Timber Values. — On the whole the advantages offset the dis- advantages in estimating in the sugar pine type. The stands are open with comparatively little underbrush. This means few trees per acre with few shrubs and vines to impede the estimator's progress. Then, too, the trees are large size and a few big trees are easier to estimate than the many small trees which it would take to make up the same volume. Another aid is the high pro- portion of the type which has been surveyed so that tracts may be readily located on the ground. These factors make it pos- sible to get fairly good results from a 10 per cent estimate where areas of more than 100 acres are to be valued. Hence the cost need seldom exceed 10 cents per acre in spite of the inaccessi- bility of some of the mountain tracts and the fact that the type is usually a mixture of several species. Separate stumpage prices for the different species in the type were unheard of two decades ago. Private holdings of a size great enough to be lumbered economically were secured by grouping timber and stone claims which were bought at a fiat rate of $2.50 per acre from the Government or approximately 15 cents per M board feet. From this minimum there has been TIMBER VALUES 117 a steady increase until in 1900 accessible sugar pine was worth $1 per M; in 191 5 the following prices prevailed in private sales: Maximum Average Minimum Sugar pine. . . Yellow pine. . Douglas fir. . . White fir Incense cedar. .00 •SO lt>2.so 2 .00 1 .00 0.7s 0.50 l>i.So 1 .00 On the National Forests the highest price which has been paid for sugar pine is $3.50 per M feet (191 6). The uses to which sugar pine lumber is put depend upon the distance from the place of manufacture. In CaHfornia the important industries depending upon this species in whole or part are the box makers, and the manufacturers of sashes, doors, blinds, and general millwork. In the east only the higher grades appear because they alone can stand the freight rate of $8 to $15 per M required to transport lumber to the Mississippi valley and Atlantic seaboard. Hence, east of the Mississippi sugar pine is only in demand for the high grade uses which the native white pine cannot supply more cheaply. It is therefore seldom used for boxes and packing but is generally found in the planing mills and manufacturing establishments that need wide and clear stock. For such purposes it is technically qualified to supplant eastern white pine which has been the standard for two centuries both here and abroad. In general the wood of sugar pine may be briefly described as moderately hard, heavy, strong and stiff but straight grained and smooth textured. It shrinks, swells and warps very little on exposure to weather but is only fairly durable in contact with the ground. Altho resinous it wiU not impart undesirable odors or jflavors to articles packed in it. Its sale value at the mill depends upon the quality. Five main use classes are distinguished: thick finish, siding, factory plank or shop common graded for door cuttings, common lumber, and thick common lumber (tank stock and step planks) . These Ii8 SUGAR PINE TYPE are commonly further subdivided into Nos. i, 2 and 3 clear, select Nos. i, 2 and 3 shop, Nos. i, 2, 3, common, and box. The percentages of the various grades in the mill run vary greatly with the stands. In general the larger trees are found in the southern part of the type's range while those on the northern limit yield less wide clear lumber. However, the following figures give a notion of average conditions: Grade Average value Clear and select ..... 20 per cent at $40 per M = $8 . 00 Shop 30 per cent at 25 per M = 7 . 50 Common 30 per cent at 15 per M = 4 . 50 Box 20 per cent at 12 per M = 2 . 40 100 per cent $22.40 average mill run value. These prices are for 191 2. Since then there has been an increase of about 100 per cent. Western yellow pine may be briefly described as a poor quality of sugar pine. It has practically the same properties and hence uses but does not yield so much high grade lumber because of the larger amount of pitch. This is not, however, a drawback when durability is desired and for rough construction lumber for use outdoors unpainted or in contact with the ground yellow pine is better than sugar pine. Nor for such purposes is its weight a drawback. It is a third heavier than sugar pine. The value of the average mill run may be computed as follows based on 191 2 figures : Clear and select 15 per cent at $35 = Shop 25 per cent at 20 = Common 30 per cent at 15 = Box 30 per cent at 12 = 100 per cent Detailed figures by grades cannot be given for the average sale value of Douglas fir, white fir and incense cedar but they are lower than those of sugar and yellow pine because they supply lower uses. Douglas fir while preeminent for rough con- struction purposes is not soft enough to make good finishing and pattern makers' lumber. White fir does not season well, decays rapidly, is weak and not of large size so that the greater part of $5 25 5 00 4 50 3 60 $18 35 TIMBER VALUES I19 it is used for boxmaking. Incense cedar finds its widest use as shingles alLho it is occasionally employed for interior finish. The average mill prices at present common are: Per M Douglas fir $40.00 White fir 25.00 Incense cedar 30.00 The main difference between the logging methods used in this type and those so far considered is that steam donkey engines are commonly used in yarding. The large size of the timber, the density of the stands and the comparative evenness of the topog- raphy make this method much more economical than skidding with horses. A yarding crew consists of a dozen men and handles 25 to 40M per day. The donkey engines are placed alongside the logging railroads whenever possible so that the logs may be loaded on to the cars by steam after being yarded. Where the topography does not permit this a dry log chute may be used to get the logs from the yarding engine to the railroad. The average costs of a typical operation were as follows in 191 5: PerM Felling and bucking '. . . . $0 . 65 Yarding i . 80 Chuting (54 per cent of cut) o. 50 Loading 0.25 Railroad haul i • 50 Supervision o . 25 $5-3° Large mills capable of turning out 250,000 feet in 24 hours are becoming more common because they turn out better lumber at less cost. Average figures for such a mill were as follows: PerM Unloading logs in mill pond $0 . 07 Milling 1.50 Maintenance o. 50 Yard charges o. 73 PlaningJ(part only) and loading 0.90 $3-70 Adding the logging and milling costs gives a total cost of $9 per M. Hence there is a possible margin for stumpage and profit I20 SUGAR PINE TYPE of $13 for sugar pine, $9 for yellow pine and Douglas fir, $5 for incense cedar, and $3 for white fir. Nor can these figures be increased ordinarily by the sale of tops or slabs for firewood because the local demand is small. In man hours the costs of an average operation would be as follows: Man hours per M Felling and bucking 2 To mill 7 Milling 7 16 In addition to these labor costs there would be considerable charges for interest and depreciation in the case of niilUng and getting the logs to the mill. Land Valuation. — The use of sugar pine land for farming is generally impracticable on any large scale because the slopes make irrigation expensive. In addition the shallowness of the soil and frequent outcrops of rock are obstacles to cheap cultiva- tion. As a consequence there is no sale for land for this purpose with the exception of an occasional mountain meadow. For grazing there is more demand for this type. It will sup- port from one to two head of cattle or 10 sheep during the sum- mer months on 40 acres and a fair renta' per acre is 10 cents. Hence the capital -value may safely be taken as $1.25 per acre using an 8 per cent interest rate. The main reason why land in this type cannot be given a high value per acre for the production of lumber is that growth is slow during the early stages. This is, however, better than the returns from grazing and of more importance to the large owner than the possible use of a small fraction of his land for tillage purposes. Therefore it would seem that the highest use to which most of the type can be put is the growing of timber supplemented by grazing on lands where the reproduction will not be injured by the browsing of cattle or sheep. Furthermore these uses are in many cases supplemented by the values accruing from water- shed protection whether the water so conserved is used for irriga- tion or power purposes. L.\ND TITLES 121 Land Titles. — This subject may be quickly disposed of because the title conditions obtain here which have been already dis- cussed in connection with the other tree types occurring in the western public land survey states. CHAPTER XV REDWOOD TYPE General Conditions. — The redwood, Sequoia sempervirens, must be distinguished from its near relative, the big tree, Sequoia Washingtonia, because they are very different in many respects. They are unHke botanically, the wood has not quite the same commercial value, and their ranges are not identical. The red- wood is confined to a belt about lo miles wide and within 30 miles of the Pacific Ocean on the west side of the Coast Range in northern California and southern Oregon. Its distribution is well defined in the following quotation from Forest Service Bulletin No. 38: The Redwood is "popularly thought to occupy a strip of country 10 to 30 miles wide, from the Oregon line to the Bay of Monterey, but these boundaries do not cover its actual distribution. Two thousand acres of Redwood, in two separate groups, are growing in Oregon along the Chetco River. South of the Chetco a continuous Red- wood belt begins. By way of the river valleys and low- lands it increases its width from 10 miles, at Del Norte County, to 18 or 20 miles, and keeps on unbroken to southern Humboldt County. Here, for about a township, it thins out, but becomes dense again six miles north of the Mendocino line, and after entering that county widens to 35 miles, its greatest width. The Redwood belt ends in Mendocino County, but isolated forests of the species are growing in sheltered spots as far south as Sal- mon Creek Canyon, in the Santa Lucia Mountains, Mon- terey County, 12 miles south of Punta Gorda, and 500 miles from the northern limit of the tree along the Chetco River. GENERAL CONDTTIONS 123 i;0O___30O 400 500 60O mllg Fig. 12. Distribution of the Redwood and Sequoia Types 124 REDWOOD TYPE The climate is the controlling factor in the redwood's distri- bution. It is only found where there is at least 30 inches of rain- fall during the fall and winter and constant sea fogs during the summer. This minimum precipitation is characteristic of the southern part of its range where the trees do not reach as large size as they do farther north. In fact the greater the rainfall the better the trees, always provided the growing season is long. This latter factor of temperature prevents the spread of the species north. A mean annual temperature of 50 degrees or 60 degrees is necessary with not less than six months free from frost. In other words, the cUmate is Hke that of the southeast at Charleston, S. C, for example, in the absolute amount of precipitation, and the range and duration of temperature, but there are two marked differences. The great evaporation of the southeast is checked by the summer fogs while there are no high winds such as sweep our eastern coast in the fall and winter. Hence the redwood grows under almost ideal conditions. There is a long growing season to give large diameter and height growth and enough moisture to not only further these but also permit of a fair degree of density. These favorable climatic factors are still further enhanced by favorable soil conditions. Situated on the lower slopes of the coast ranges there is sufficient depth of soil together with the requisite drainage to prevent sourness. The most desirable soil conditions are found on the flats along the streams. Here the soil is fertile, deep and well watered and the redwood reaches a diameter of 20 feet and the magnificent total height of 350 feet, the tallest of all American tree species. With it are associated hemlock and Sitka spruce but the redwood usually makes up at least half of the total number of trees. The virgin stands per acre in this flat subtype range from 150M board feet in the northern part of its range to about a third of that in the south. The other subtype recognized by Fisher, the slope subtype, is located on the relatively drier and more shallow slopes. With less favorable conditions for redwood the competition from other species is keener, such a large size is not attained and growth is less rapid. The following table summarizing the principal facts STUMPAGE VALUES 125 in regard to each subtype also offers a basis for comparing the two: Composition by number Flat Slope Redwood Per cent 80 15 5 Per cent 60 Hemlock 20 Spruce S 10 White fir Tanbark oak 5 100 100 Feet Feet Maximum diameter 20 10 Maximum height 350 225 Growth in 30 years: Diameter 16 9 Height 80 55 Timber Values. — There are only two reasons why the esti- mating of redwood need cost more than a very moderate sum per acre. The mere size of the trees is the least important of these two but large trees are somewhat harder to estimate rapidly than medium sized ones. Redwood may, however, occur on slopes which are difficult to negotiate. But against these two unfavor- able factors can be set the favoring ones of accessibihty, uniform- ity of composition, and low value of the standing trees per M. Hence it is seldom necessary to estimate more than 10 per cent of the total stand and the cost per acre should not exceed five cents for tracts of any size. As stated above stumpage values are low. The prime reason for this is the freight charge to the eastern markets but it must be remembered that redwood in spite of its large size is a soft, weak wood mainly used for rough construction purposes. This is the way in which its great durabihty in contact with the ground and when exposed to the weather can be best taken ad- vantage of. In other words it is an excellent wood for shingles, rough boards, boxes, and railroad ties where the trafi&c is not heavy. The average sale value in 191 7 at the mill as stated in Forest Service Bulletin No. 768 was $21 per M. This was 126 REDWOOD TYPE much above the pre-war value because for the five years between 1 916 and 1909 inclusive the average was $14.35 per M. This lat- ter figure is naturally a safer one to use in determining the margin available for stumpage than the abnormal value of 191 7. Logging and milling costs present no unusual features except that the large size of the timber makes steam logging the most economical. But this merely tends to reduce costs if handled on a large enough scale. It is, of course, no business for a small operator. The holdings must be large, the logs skidded by steam, a railroad built to haul the logs, and heavy sawmill machinery employed. In 1900 Fisher found that costs were as follows: Per M Logging $300 to $5.50 Milling 3.00 to 3.50 Loading 0.25 to 0.50 Freight to local towns in California 2 . 50 to 4 . 00 OfiSce costs, etc 2 . 00 $10.75 Converted to labor hours per M these costs would be as follows: Man hours plus fixed^charges Logging 7 Milling 7 14 With a sale value of $11 to $13 per M for rough lumber and $18 to $25 for clear boards th^re was naturally httle margin for stump- age. Even today redwood is worth less than $5 per M standing. Land Values. — • Fisher estimates that but two per cent of the redwood type may be classified as " flat " so that the tillage pos- sibilities are not great. At best it will only pay to faAn compar- atively small areas. There is no chance for the development of agricultural communities. Grazing is only feasible on the drier ridges where the stands of redwood and its associated tree species are open enough to permit grass and weed growth. Unquestion- ably the highest use to which most of this type can be put is for the production of timber. Except on the dry ridges reproduc- tion is vigorous enough and growth sufficiently rapid to justify the TITLES 127 land being held for a second crop. This is one of the few types in the United States which can average 1000 board feet per acre per annum under management. This means that the soil is worth at least $10 per acre for timber production. With fire eliminated — and this is not a difficult task in the humid climate of the type — there is very Httle risk since insect and fungus enemies are not abundant. Titles. — With only a short chain of title possible resting upon the original grant from the Federal Government and each square mile surveyed there can be little difficulty in identifying, describ- ing or passing title to redwood land. The only precaution that needs to be observed is to make sure that no fraud was practised in obtaining title from the United States. The methods used in the early days to secure timber lands under the homestead and timber and stone laws were not always exactly regular. CHAPTER XVI BIG TREES — SEQUOIAS What has been said about the redwood applies with certain exceptions to the big trees. The wood has the same general uses, logging methods are identical, and costs, sale values, and stump- age prices are similar. The major differences are in distribution, and vigor of growth and reproduction. The groves of big trees are the remnants of much larger forests which have been restricted in area by climatic changes and more vigorous competitors. Whether they will be able to increase in area with real protection from fire, insects and fungi is a question. At present the big tree is confined to about 15 localities on the lower western slopes of the Sierra Mountains in California aggregating not more than 10,000 acres. In altitude the species is found from 5000 to 8000 feet above sea level and reaches its best development on cool, moist, sandy or rocky soils in full enjoyment of the sunlight. Unlike its cousin, the redwood, the stands are rarely more than 50 per cent big tree by number. Sugar pine, white fir and Doug- las fir are its commonest associates. Little difference exists in the quality of the wood from the two kinds of sequoia. Both have the same uses. Even their size does not vary enough to affect their market value. The red- wood reaches a greater height while the maximum diameter of the big tree is 30 feet as against 20 feet for the redwood. As an investment for timber production the big tree does not offer the advantages that redwood stands do. The latter occupies a well defined and extensive area in which the climatic conditions are favorable for vigorous reproduction and rapid growth. The big tree, on the other hand, seems to be merely holding its own in certain restricted localities. It is not even certain that its competitors would not give higher returns on the same sites. 128 CHAPTER XVII DOUGLAS FIR General Conditions. — Altho the Douglas or red fir is one of our most widely distributed timber trees and is found throughout the Rocky Mountain and Cascade ranges from Northwestern Texas to British Columbia it is not the dominant species over wide areas except in the extreme northwestern part of the United States. There it occurs in nearly pure stands with high yields. In California the type occupies the middle slopes of the west side of the Cascades between the sequoia and sugar pine types. All of western Oregon is covered with it from the summit of the Cascades to the Pacific Ocean except the valley of the Willamette River, a sheltered basin lacking in precipitation. Northward in Washington there are no such dry valleys and the type is the dominant vegetation west of the Cascades. Altitudinally the type may occur anywhere between o and 6000 feet above sea level but in accordance with the laws of climate is only abundant at sea level in Washington. South- ward in Oregon and CaHfornia it is commonly forced to keep to the mountain slopes by tree species like the sequoia which are better adapted to the warmer, drier cUmate and even on these slopes it prefers the cooler north slopes. With a north and south extent of 500 miles and an east and west width of 150 miles there is naturally considerable variation within the type in climate. The north and south extent is less important, however, than the distance from the Pacific Ocean. The moisture laden winds come from there and ascend the steep slopes of the Cascade Range. At the point where they are cooled down to the temperature at which they give off their moisture freely the Douglas fir type is most vigorous. While it can exist vnih an average annual precipitation of 50 inches it does better where the total annual rainfall is 50 to 100 per cent 129 I30 DOUGLAS FIR greater. In fact within its boundaries occurs the heaviest measured rainfall in the United States, loo inches in 12 months. The growing season is relatively long as compared with locali- ties of the same latitude in the eastern part of the United States. This is because the Pacific Coast climate is much modified by the warm moist winds from the ocean. Hence there are no months at Seattle when the mean temperature is below freezing. Taking the type as a whole in the United States from northern CaUfornia to the Canadian line the growing season is approximately six months long. Temperatures too cold for tree growth are rare from April thru September. As explained above this type is most abundant on the middle slopes of the western side of the Cascade Range. This includes the headwaters of the Illinois and Rogue rivers, the entire course of the Umpdua, and the upper reaches of the Willamette and its tributaries in Oregon. Between the States of Oregon and Washington the Columbia River cuts thru the Cascade Range at right angles but has very little effect on the distribution of the type. Its northern tributary, the Cowlitz River, however, is entirely within the type and the same applies to the other princi- pal rivers of western Washington, the Chehalis, the Queniult, the Skagit, and the Nooksak. All of these are characterized by short, steep courses, with an abundance of water. As might be inferred from the steep to moderate slopes which the type occupies the soil is fairly deep but yet not free from outcrops and loose rocks. In origin it is partly glacial and in Oregon and California residual or volcanic. While Douglas fir is the dominant species in the t}qDe it has many associates on the sites which it does not possess the special ability to preempt. For example, in the river bottoms in the interior and along the seashore red cedar, Sitka spruce and Lawson cypress share the ground with it. This is called the fir cedar subtype. On the drier lower slopes above the shore line and river bottom the fir is preeminent. Here it finds the deep, loose soil, the long growing season and abundant rainfaJl which it requires to reach its maximum development. Higher up, that is, extending from 3000 to 4000 feet above sea level to 6000 or TIMBER VALUATION 131 7000, the Douglas fir is mixed with western hemlock and several species of balsam. All the tree subtypes referred to above occur in the western slope of the Cascade Range. Its eastern side being sheltered from the moist Pacific winds has much less precipitation. As a consequence the stands are more open and the Douglas fir shares preeminence with western larch, a species which makes only moderate demands upon soil moisture. A comparative stand table for these different subtypes under virgin conditions is given below: M Fir-cedar 60 Pure fir 100 Fir-hemlock 75 Fir-larch 30 Accurate growth data for all the species found in the type are not available, but good figures do exist for Douglas fir and it seemed wise to make estimates for the other species in order to give at least a relative notion of their growth. Species Douglas fir Red cedar Lawson cypress. . Sitka spruce Western hemlock. Grand fir Amabilis fir Western larch Diameter Height Yield 50 yrs. 100 yrs. so yrs. 100 yrs. 50 yrs. 100 yrs is" 24" 102° i,S4° 28M 79M 30" 50" slowe r growing than Dc )uglas fir 30" 20" 10" 20" 25" Timber Valuation. — The following quotation from Comp- ton's " Organization of the Timber Industry " sets forth the early conditions in regard to stumpage prices of Douglas fir. '" During the eighties the prevailing price of stumpage in Washington was not over 15 cents per M feet. Between 1898 and 1908 prices trebled. A stand of eight million feet (estimated) was bought in 1891 for $800 or for 10 cents per M feet. In 1909 the same tract was sold for $18,500 or for $2.31 per M feet. As late as 1903 a stand of 472 million feet (estimated) was purchased 132 DOUGLAS FIR at 12.9 cents per M. In 1907, 59 cents per M was offered for the entire tract. A great deal of the timberland of the Pacific North- west has been alienated from the public domain under the general land laws. Some of the timber in select areas has thus been sold by the United States at less than four cents per M feet. Similar conditions have largely prevailed in Oregon which now has a greater supply of merchantable timber than has any other state. Because of the extremely low original prices, a very large relative increase in stumpage prices in the Pacific Northwest does not necessarily imply a great absolute rise." No figures for an extended period exist for the subordinate species in the type such as hemlock, balsam, cedar, etc., for the reason that they have only recently become merchantable at all. They are now, however, being cut more and more and command an average stumpage value of not more than $1.50 per M in this type. As far as use value is concerned Douglas fir easily leads all its associated species. In fact it ranks second in the lumber cut of the United States and the amount produced annually is only exceeded by the combination of three southeastern species usu- ally grouped together under the name of yellow pine. This fact alone is enough to show that it is strong, easily worked wood in demand for general construction purposes, for a wood must answer these requirements to stand high in the annual lumber cut. In comparison with white pine it is harder but stronger, while the better grades of yellow pine exceed it slightly in strength and durability. It is consequently eagerly sought for such a wide variety of uses as railroad bridges, ties, boat building, flooring and interior finish. In 19 10 the main uses to which the lumber was put were as follows: Per cent Mill work 87 Tanks and silos 4 Car construction 4 Boats 2 Pumps and wood pipe i Other uses 2 100 TIMBER VALUATION 133 On Nov. 24, 1920, the following prices prevailed f.o.b. the mills for the principal grades of Douglas fir: Flooring (vertical) $40 per M Finish 35 " Drop siding 35 " Boards and shiplap No. i 19 " Dimension No. i S & E 16 " The average mill run price in 1912 was $11.58. Lawson cypress is important locally but does not reach the general eastern market at least under its own name. In the first place there is not enough of it to make it an important factor in the lumber market and secondly it is used for purposes which do not demand high priced lumber. Hence, while it is a common wood in Oregon for fence posts, railway ties and poles, it is only occasionally cut into lumber and then only for local consumption. Its sale value per M is accordingly low. At the mills it does not exceed $10 per M for the mill run. Red cedar is of more than local importance but not as lumber. It is in the form of shingles that it has invaded the eastern market. This western species is not to be confused with the eastern red cedar which belongs to another genus. The latter finds its highest use as pencil wood and usually grows too small for high grade shingles. The western red cedar on the other hand is a magnificent tree four to six feet in diameter and yields the widest shingles on the general market. But even for this pur- pose the mill run value will not exceed $15 per M. Sitka spruce is another species which has not been sold in the general markets, at least before the Great War. Recently, how- ever, it has been in great demand as airplane stock where its lightness and strength meet a special need and help to relieve the strain on the producers of eastern spruce. The two woods are essentially the same in structure and properties so that it is safe to predict a mdening market for Sitka spruce when it can be sup- phed to the manufacturers of musical instruments, pulp manu- facturers, etc. At present, however, the mill run cannot be sold for more than $15 per M. Western hemlock is in an even worse pHght. It has no special 134 DOUGLAS FIR high value uses but merely makes good rough construction lum- ber. For a long time, therefore, it was not cut at all and even now is only shipped east when cut in special sizes of extra length or width. Hence, the mill run never averages better than $io per M. Balsam is another low grade species the bulk of which must be used locally for boxes, cheap finish and other purposes for which a soft, weak wood which is not durable may be used. Its mill run also a»verages about $io per M at the point of manufacture, and this is true in spite of the fact that large sizes may be obtained. Larch commands a better figure because it is fairly hard and much more durable. It can, therefore, be used for flooring, rail- way ties, and general construction work. Its only fault is that it is liable to split if cut into inch boards of over six inches in width. Consequently all the clear lumber goes into flooring which is always made in narrow widths. This brings up the average mill run value to about $12 f.o.b. the mill. Logging costs in the Douglas fir present certain marked dif- ferences from those in other types because the conditions to be met are unique. Felling and bucking are difficult on account of the large size of the timber. It is obvious that different methods must be used with a tree containing 8 to 16 foot logs and five feet in diameter at the top end of the first log than are employed for ordinary sized trees. In the first place a spring board is com- monly used to put the sawyers up above the root swelling. Then the fallers need so much time to saw thru the tree that they do none of the notching, but a head chopper takes over all this work. Even the bucking is often done by special buckers by contract or better yet the logs are hauled in to a steam saw in as long lengths as possible and hand work thus eliminated in this operation. But the situation has its relieving features. The cost of felling and bucking are low per M because of the large size of the trees. Where a single tree contains 5 to 10 M feet it can readily be seen that the cost of felling and bucking will be much less per M than for small trees. Ordinary skidding methods are likewise wholly inadequate. Donkey engines are the only successful method by which sufii- TIMBER VALUATION 135 dent power may be developed to handle the immense logs. Oxen and horses have proved futile. But if properly applied, steam skidders give low costs per M when there is sufficient timber to justify the heavy initial investment. The large size of the timber has also dictated the methods employed to transport the logs from the skidding yards to the mills. There are plenty of drivable streams in the region for timber of ordinary size but they are too steep, too rocky, and too crooked to carry large logs. Hence railroads had to be built into the timber even tho it is all softwood and not hardwood. But railroads are the most economical method of log transport where there is enough timber to cover the heavy initial invest- ment. In fact logs in this type cost as little per M laid down in the mill pond as those from any type simply because there are heavy stands per acre and steam can economically replace hand labor. This is more especially the case where rafting on salt water can take the place of rail transport. This, of course, only applies to timber on tidewater but a large percentage of what has been so far cut has been thus advantageously situated. Milling charges do not differ much from those that prevail in other regions altho the saw, carriages and other equipment have to be unusually large. The high cost of labor seems to offset any advantage there is in the large logs. Average costs per M from the stump to the car in 191 5 may be summarized as follows: Felling and bucking $0 . 60 or one and one-half man hours. Yarding and loading 2 . 00 or three man hours plus fi.xed charges. Transport to mill: By raft i . 25 ^ ., , I or five man hours plus fixed charges. By railroad 2 . 00 J Milling 4 . 00 or four man hours plus fixed charges. Total cost $7 . 85 or $8 . 60 Using an average logging cost of $7.25 per M there are the following margins possible for stumpage and profit with the species which occur in this type: 136 DOUGLAS FIR Per M Douglas fir S5 00 Cypress 3 °° Red cedar 5 00 Sitka spruce 5 00 Hemlock 3 00 Balsam 3 00 Larch 5 • 00 Land Values. — Of the three possible uses of Douglas fir land exclusive of the timber and minerals, tillage, grazing and timber production, the first will undoubtedly give the highest returns where the conditions are favorable. But tillage requires gentle slopes, reasonable freedom from rock outcrops and loose stones, and a ready market, and this combination of characters is seldom met with in the type. The slopes are usually too steep, especially if irrigation is to be employed, the soil is frequently too shallow, and the local market will only absorb a limited amount of produce while the general market is across the continent and only acces- sible for high grade products. For example, northwestern apples have earned an enviable reputation but simply because it is only the very best grades that will stand the freight charges that must be paid to reach the general market. Hence, very little of this type has yet been cleared. The famous agricultural sections of the northwest the Palouse, the Willamette, etc., are treeless sec- tions which have been rendered fertile by irrigation. In other words it has been more profitable to irrigate arid regions than to clear off the timber in the sections where there is abundant mois- ture. Another factor which needs at least passing mention is that even in the humid parts of the northwest there is a defi- ciency of moisture during the summer; for example, at Olym- pia, Washington, only three inches of rainfall during June, July and August or merely 5 per cent of the total annual precipita- tion of 55 inches. This illustrates why irrigation is desirable for many crops even in places where there is a superabundance of moisture in the winter. Hence, the cost of irrigation must usu- ally be added to that of clearing in the Douglas fir type. Three factors, then, make tillage a doubtful proposition, the heavy cost of clearing, the steep slopes, and the cost of irrigation. Grazing TITLES 137 is also little practiced within this type for the very good reason that the trees stand so close together that very little grass can grow underneath them. The only exceptions to this general rule are occasional localities where the fir-larch subtype is open enough to permit some grass growth but these are practically negligible. Hence it follows that taking the type as a whole the production of timber is the highest use of the soil. There is only one unfavor- able factor. That is the distance to market. But improvements in transportation and growing scarcity of timber in other regions are bound to lead to an increase in stumpage prices. In fact it seems safe to figure that these prices will be at least $10 per M within the next rotation of 100 years. With this assumption and using an interest rate of 3 per cent the value of the land within the type is $22 per acre. Titles. — Land titles present no special problems. In surveyed sections they are easy to trace since the land has been obtained from the Federal Government within a short period either thru the homestead or timber and stone claim laws or purchased out- right from the State or land grant railways. CHAPTER XVIII ALASKA Climate and Topography. — As a preliminary to a description of the timber distribution in Alaska an understanding of the cUmatic factors is desirable. In the first place it is necessary to correct the general impression that low temperatures preclude all tree growth. This probably arises from a failure to understand that Alaska is 1400 miles long. In other words, it would reach from Cape Cod to Key West if set down on the Atlantic Coast. Hence the southern third is outside the Arctic Circle. Sitka, the capital, for example, has an average annual temperature equal to that of Philadelphia. This is true even tho Sitka is in the same latitude as northern Labrador because of the warm winds which blow off the Pacific Ocean. These are also responsible for the heavy precipitation of southern Alaska where 80 inches per annum is not uncommon. The northern or continental part of Alaska has an entirely different cKmate, however. This part may be said to consist of a basin, the Yukon and Kuskokwim river val- leys with the Alaska Range on the south and the Endicott Range on the north. The former is particularly rugged, running up to 15,000 feet above sea level in many places and attaining the mag- nificent altitude of over 20,000 feet in Mt. McKinley the highest peak in North America. This means that many of the mountains are too high to permit tree growth on them. The Endicott Range while not so lofty is, however, high enough to also have considerable areas above timber hne. In all, approximately one third of the territory is so far above sea level that tree growth is out of the question. Another third of the land area is also treeless but for another reason. This is the so called " tundra " upon which tree growth cannot exist because of the short growing season. To this category belong the slopes draining into the Arctic Ocean and Behring Sea. The glaciers and snowfields are also without tree growth. 138 THE COAST FORESTS 139 There remains less than one third of the land area, 27 per cent to be exact. Of this 6 per cent is capable of producing large sized saw timber. It is confined to southwestern Alaska whose climate has already been described. The remainder of the timber producing area, 21 per cent of the whole territory, has, however, an entirely different climate. The conditions at Fairbanks in the Yukon Valley may be taken as typical of this region. The mean annual precipitation is 15 inches. The winters are long and cold while the summers tho short are warm. July, for example, has an average of 57° F. Furthermore, there is almost continual day- light during the vegetative season. Consequently the upper surface of the soil thaws out sufficiently to permit vegetative growth while the frozen layers beneath supply ample moisture by capillary attraction. There results, therefore, rapid growth in spite of the short season and scant rainfall. White spruce (Picea canadensis) and three cottonwoods (Populus balsamifera, tricho- carpa and tremuloides) and white birch (Betula alaskana) are the dominant species with black spruce (Picea nigra) and tamarack (Larix alaskensis) much less common. These trees reach their best development in the deep soiled river bottoms and are short and stunted on the hillsides. Diameters of more than 18 inches breast-high and total heights of over 50 feet are rare. The stands are relatively open so that the yields per acre are not large. In fact the wonder is that trees do so well rather than that they are not larger and denser. Scant rainfall and a long winter are only partially offset by the long summer days and abundant supply of ground moisture. The Coast Forests. — By contrast with the interior forests the coast timber seems magnificent. It is in fact a northern exten- sion of the luxuriant Douglas fir type of Washington and Oregon. The composition is, however, considerably altered by the lower temperatures. Douglas fir is no longer found but the dominant species are western hemlock (Tsuga heterophylla) and Sitka spruce (Picea sitchensis). Western red cedar (Thuya plicata) and yellow cedar (Chamaecyparis Nootkatensis) occur sparingly in southwestern Alaska. Species of little commercial importance which are more or less abundant in this type are : 140 ALASKA Lodgepole pine (Pinus contorta). Black Hemlock (Tsuga mertensiana). Alpine fir (Abies lasiocarpa). White spruce (Picea canadensis). Black spruce (Picea mariana). Balsam poplar (Populus balsamifera). Black Cottonwood (Populus trichocarpa). Birches (Betula). Willows (Salix). From the description given above it is evident that hemlock and spruce are the species which determine the stand per acre. Kellogg estimates that together they constitute 95 per cent of the total average volume per acre with the hemlock much more abundant and making up 75 per cent of this total. For an average stand per acre a midway location must be chosen. Around Cook Inlet the stands are distinctly less in volume than at the southern end of the territory where it touches British Columbia. This is because the trees do not attain such good diameter and height growth in the north. Diameters of over four feet and heights of more than 100 feet are not common north of Juneau. South of there, however, the stands often average better than 25,000 feet per acre. From these heavy stahds there is a gradual decrease northward in the diameters and heights until around Cook Inlet the timber averages two feet in diameter and 60 feet in height with stands averaging less than 10,000 feet per acre. For the type as a whole 15,000 feet is a conservative figure. Except for a small amount of insect and fungus damage the type is remarkably free from disease. This is undoubtedly due to the absence of fire, a result of the heavy precipitation. The ground is covered with a thick mat of undergrowth and moss which is kept continually wet by the ocean fogs. Hence, the trees grow unchecked until they are overmature unless the soil is so thin that the wind overthrows them. Such damage is, however, slight except near the upper limit of tree growth where the mountain slopes are steep and the soil is shallow. Growth cannot be satisfactorily set forth on account of lack of data. There are only a few figures available for the best sites. INTERIOR FORESTS 141 At the southwestern end of Alaska the following diameters were attained in 100 years' growth: Inches Sitka spruce i8 Red cedar 18 Farther north the growth would, of course, be slower because of the shorter growing season so that the average for the type would be comparable to growth conditions in the spruce type of the northeastern United States where the yield per acre in 100 years is 15M board feet. Interior Forests. — The composition of the forests in the Yukon and Kuskokwim River valley basins has already been referred to above. All the species are specially adapted to cold, dry climates. White spruce, Picea canadensis, is the most abundant and the most important commercially. It is the only species that is suitable for even small saw timber and also shares with the other species the burden of supplying the firewood needs. Birch and cottonwood are, however, considered better for this latter purpose. With the variation in soil conditions there is a corresponding variation in the composition of the stands. In the deep soiled bottomlands along the streams pure stands of white spruce some- times occur but a mixture of this species with cottonwood and birch is more common. On the slopes immediately above the stream bottoms the same mixture prevails but the individual trees are distinctly smaller and less vigorous. On the ridges tree growth is scattered and stunted and generally confined to the depressions. On such poorly drained sites black spruce is the common species. Growth is slow even in the bottoms. The following data are taken from Kellogg's " The Forests of Alaska ": * Annual growth Diameter, inches Height, inches White spruce. White birch. . J- * Forest Service Bull. 81, " The Forests of Alaska," R. S. Kellogg, 1910. 142 ALASKA Yield varies with the kind of timber which in turn depends upon the soil conditions as has already been shown, consequently the heaviest stands are those of pure or mixed white spruce in the bottoms. Ten thousand board feet per acre is not uncommon but the average is more nearly half that. The slope and ridge stands yield much less per acre. Twenty cords per acre is high for the former while much of the latter growth is too small to be merchantable. Fire is the principal cause of damage. It is especially destruc- tive after lumbering and many thousands of acres have been seriously if not permanently damaged in this way. In a region where tree growth has so much to struggle against fire may be the deciding factor in preventing the return and spread of a forest cover. No serious insect or fungus diseases have been reported. Timber Valuation. — Since climatic and market conditions are so radically different for the different parts of Alaska it will be necessary to consider timber estimating, logging costs, sale and stumpage values separately for the coast and interior forests. An estimating crew in the coast forests outfits in one of the sea- board towns like Seattle, Sitka or Juneau and goes by boat to the tract to be looked over. An outfit of several units or one with a large amount of work ahead should by all means have its own vessel. Then the men can live aboard and be more comfortable than they would ashore. A power craft varying in size with the number in the crew makes an ideal boat for this purpose. Arrived at their destination a base line should be laid out along the beach. Then the strips may be run into the timber. Only a small percentage, relatively, need be estimated because the composition is usually uniform. But the actual running is dif- ferent because of the rough topography, heavy undergrowth and uneven surface. The slopes from sea level are always abrupt and covered with rocks and boulders which have rolled down from above. While the undergrowth is dense it seldom covers up completely the holes between the boulders but merely serves to conceal them. Furthermore, it is generally so wet from fog or rain that the estimating crew is thoroly drenched before going 100 yards from the beach. These tilings do not make for rapid TIMBER VALUATION 143 progress when the trees are close together even tho not large. In fact 20 strip acres a day is a good average. Hence, the cost per acre can seldom be brought down less than 5 cents even on tracts of more than 1000 acres. For smaller tracts it would of course be more. The typical logging job is handled much as follows: A crew of two to five men agree to put the logs into the water for $3 to $5 per M. After felling the tops are lopped and the tree put full length into the water. In the early days there was plenty of timber that could be either felled directly into tidewater or warped to the high water mark by hand. But most of these chances are gone now and it is more common to use the slack rope system of power skidding with a donkey engine mounted on a scow. In this way a distance of 900 feet can be covered. Once landed in the water it is generally an easy matter to gather the logs into a raft and tow them to the sawmill which is also located on tidewater. To get fair weather for these opera- tions logging is usually confined to the summer months. At the mill the full length logs are bucked and then passed by the saw, edger, trimmer, etc. Seldom can lumber be manufactured for less than $15 per M where all expenses are included. Sitka spruce, the commonest species, cuts the following per- centages of grades on the average: Per cent Clear 15 No. I common 20 No. 2 15 Box 20 Dimension 20 CuU 5 95 For the mill run the pre-war price was $15 per M but the demand for airplane spruce has, of course, forced this up. For hemlock the demand has been and is less so that the mill run value is at least $2 lower. Cedar goes mostly into shingles where it has brought a mill run wholesale price of about $18 per M. Con- sequently there is a very small margin for stumpage and profit. 144 ALASKA On the Tongass National Forest the following stumpage prices prevailed in 191 7: PerM Cedar $2 . 50 Spruce ■ 2.CXD Hemlock. i 00 In general, therefore, it is safe to say that there is very little profit in manufacturing lumber in southwestern Alaska. Wages and supplies are high. Unless there is an active local demand mills cannot operate successfully. Competition on the general mar- ket is out of the question. The manufacture of wood pulp is a different proposition. The finished product can be marketed successfully in the Pacific Coast cities to the south like Seattle, Portland and San Francisco. In addition to accessible timber there are many excellent water- powers within reach of tidewater. Consequently pulp mills are being installed even tho a large initial investment is required which makes their minimum period of profitable operation at least 10 years. Both hemlock and spruce are being used. The shingle business is profitable enough in normal years to justify placing an Alaskan product on the general market where red cedar is abundant. But it only occurs sparingly. The mills which have been operating are therefore small affairs merely supplying the local market. While all woods work is best carried on along the southern coast in the summer time, estimating, at least, in the interior can be done most advantageously during the winter. There are no mosquitoes then, the wet places are frozen over, and there is enough snow for snowshoes or skies. Of course it is cold, but a dry cold in which much lower temperatures can be borne than in a wet climate. Travel, off the short railroad lines, is entirely by dog team, reindeer or on foot. Two factors prevent rapid and cheap work. The timber is small and the bunches of merchantable trees are unevenly dis- tributed. As explained above the character of the soil determines in large measure the composition and quality of the stands. Hence the timber fit for sawing is confined to the river bottoms LAND VALUES 145 and is limited in extent. In fact tliis is much like a second growth woodlot region in size of the timber and extent of the stands. The logging methods are different, however. While the mills are small they are permanent and draw their lumber from a con- siderable area by driving the streams. This means summer operation at the mill but the woods work may well be carried on during the winter. The snow is not heavy enough to interfere. It is merely sufficient to make skidding to the stream bank easy; consequently the modtis operandi is similar to that on small jobs in the northeastern United States. The trees are felled and bucked early in the fall and then the logs are skidded to the water's edge when the snow comes. There they stay until the spring break up carries them to the mill. On account of the high cost of supplies and consequent high wages logging costs are much above ordinary standards. Kel- logg reports that in 1909 the Fairbanks mills were paying $20 per M for ordinary spruce logs and $25 for extra long ones. Most of this charge represents logging costs because the Land Office was only charging a stumpage price of $1 per M for timber on Government land. There is, therefore, some compensation to the mill operator in the sale values of lumber. Again quoting Kellogg "common lumber brings about $35 per M at Fairbanks; boat lumber, which is of extra length and must be entirely sound, $80 a thousand." Allowing $6 per M for milling and yard charges there is a probable margin of $5 to $10 per M for profit. Ex- pressed on an acreage basis, the net yield per acre would not ordinarily exceed $150 for lumber. To this might in some cases be added $20 for cordwood, but usually cordwood cutting is a separate operation. Birch and spruce bring the best prices, $10 a cord in Fairbanks in 1909 and $6 to $8 on the river bank. The usual price for cutting was $4 at that time so that there is a mar- gin of about $4 for profit, the stumpage charge of 25 cents being negligible. Hence a good stand of cordwood averaging 10 cords p>er acre would >aeld a net return of $40. Land Values. — When land is not mineral bearing there is a limited range of possible uses in Alaska. Tillage in the south- western part is greatly restricted by the small demands of the 146 ALASKA scant population and the limited area of soil free enough from stones. A dense population, of course, forces the cultivation of even the steepest and rockiest soils but there is only one town with a population of over io,coo people and not more than a half dozen with 1000 or more people. Taking the territory as a whole there is only one inhabitant to every nine square miles. Hence, even in the neighborhood of the larger towns, tillage land does not bring a high price. An additional reason is, of course, the climate which sets very definite Umitations on the variety of crops. , These three factors, the small amount of level, stone-free soil, the limited demand, and the rigorous cHmate have kept the price of agricultural land low even in southwestern Alaska and in the central part of the territory they are even more restrictive. It is only in the vicinity of the larger towns that more than $20 an acre may be obtained for stump land to be used for tillage. The use of cutover land for grazing likewise offers no adequate market for the great bulk of timberland. Grazing never can become an important industry because there is not the chance to produce feed to carry the stock thru the long winters. This holds true in spite of the fact that horses have been known to winter in the interior without shelter. They pawed thru the light snow and subsisted on the dried grass, but this was mere existence. For the production of timber the lands have a low valuation because even in the southwestern portion growth is relatively slow. In the interior the yields are so meagre that only very low returns can be expected from land devoted to timber production. In fact only the best of the coast forests will show land values of $5 or better for timber production and yet this is the highest use to which large portions of Alaska can be devoted. In fact the burden of proof should always be upon the other possible uses. In other words, while the returns from timber production per se are low they are much greater than from tillage or grazing in practically every case. In addition the indirect returns of the forest, its stream protective value especially where water powers are concerned and its aesthetic value should always be con- sidered. TITLES 147 Titles. — Since the township system with sections a mile square is being extended to Alaska its land title problems are no different from those of the newer parts of the west. Tracts are easy to locate on the ground and claims of title are short and hence free from compUcations. CHAPTER XIX PORTO RICO General Conditions. — As in temperate climates the amount of available moisture is the controlling factor in tropical tree dis- tribution. This is the amount left in the soil after that evapo- rated and that which is run off is deducted from the total annual precipitation. For Porto Rico the latter varies from 169 to 21 inches. The trade winds are the dominant influence. Where they blow directly off the sea the rainfall is abundant but where they must rise up over a mountain range the leeward side is invariably dry. This accounts for the great variation in annual precipitation. The south or leeward side is sheltered from the trade winds by three ranges of mountains which comprise the greater part of the islands. Hence it is only the northern slopes of these mountains that are well enough" watered to support vigor- ous tree growth because the evaporation and runofif are so great in the tropics- that the total annual precipitation must be at least 60 inches to support dense vegetation. Its distribution is a mat- ter of secondary importance since many tree species are able to endure a prolonged dry season by shedding their leaves. The great evaporation due to high temperatures has already been referred to above; 76° F. is the annual mean for the whole island. This means, of course, tnat there is no cessation 61 growth thruout the year by reason of cold. The effect of the mountain ranges on the distribution of rain- fall has already been described. To give a more definite picture of the island it is merely necessary to add that only 20 per cent is plains country while the remaining 80 per cent is made up of mountains, ranging in elevation from a few hundred feet above sea level to a maximum of 3400 feet. From the mountains flow over 1300 named streams of which the Plata River is the largest and longest. Unfortunately not enough is known about the tree distribution 148 GENERAL CONDITIONS 149 to make tree types based on differences in soil conditions as well as climatic differences. That can only come with more intensive study than even was possible for L. S. Murphy in his careful ex- amination of the forest resources of the island.* In view of more detailed information his types are followed, viz. : Per cent 1. Mangrove type 8 2. Dry tidal woodland typ)e 3. Moist deciduous tj^je 7 4. Rain forest type 62 5. Dry deciduous type 23 The area percentages do not represent present acreages but the areas contained within the various types now and before the settlement of the island. The first, or mangrove type,- is confined to the margins of tide water not subject to strong wave action and on the northern and eastern sides of the island where the precipitation is high. In other words, it needi protection from direct wind and abundant moisture. Hence, on the leeward south and west portions of the island where the rain bearing winds are shut off by the mountains the i-ype is only found along the mouths of the larger streams where the sea water is diluted enough to offset the lack of rain water. Commercially the mangrove type is valuable for two purposes, firewood and tanning material. Virgin stands should yield six cords per acre of fuel and 10 tons of bark, but there are few such stands in Porto Rico because this type is usually found close to the settlements and has consequently been heavily exploited. Immediately above the mangrove swamps on the sandy and gravelly beaches occurs a type which has become purely man- made in its composition. This is where the introduced cocoanut palm has taken root most readily until it is characteristic of the West Indies that the shores of the sheltered coast line should be fringed with stands of this exotic species. In fact it is impossible to determine at this time what the original species were but rather * U. S. Forest Service Bulletin 354, " The Forests of Porto Rico," L. S. Murphy, 1916. I50 PORTO RICO than name it after the dominant tree at present Murphy has pre- ferred to call it the " dry tidal woodland type." The next two types contained the greatest amount of timber before settlement disturbed natural conditions because they occupied the portions of the island that are favored with heavy precipitation. The first of these, the moist deciduous type, is confined to areas having at least 60 inches of rainfall but with a short but distinct dry season which forces many of the trees to shed their leaves. Most of the type has been cleared for tillage but a few remnants indicate its composition. Tabanuco — Da- cryodes excelsa Vahl — is the only important species which can be used as a substitute for softwood. Its wood is similar to that of yellow poplar and the tree is also found in pure stands so that it may be logged cheaply. The other commercial species in this moist deciduous type are hardwoods not suitable for general construction work but mainly used for cabinet work. The rain forest type, on the other hand, which is characterized by the lack of a dry season and abundant precipitation thruout the year has several important species which have wood soft enough to make good substitutes for pine. The most valuable of these are: Cedro — Cedrela Odorata L. Tabanuco — Dacryodes excelsa Vahl. Laurel sabino — MagnoUs splendeus Urba Guaraguao — Guarea trichilioides L. All are large trees, that is, over 75 feet in height and three feet in diameter when mature. Best of all they form stands dense enough to log economically; 15,000 board feet per acre is not uncommon in virgin stands. In addition there are scattered hardwoods like mahogany — Swietenia mahagoni Jacq — and ausubo — Sider oxylon foetidissimum Jacq — valuable on ac- count of their durability and ornamental qualities to increase the productivity of this type. Unfortunately very little of the original forest is now left in this type because the land has been practically all cleared for agriculture. The dry deciduous type is preeminently the home of the GENERAL CONDITIONS 151 heavy, hard woods like lignum vitae, ebony, etc. The dry season is long, so long in fact that the trees are not able to attain large diameter or height growth. Sixty feet for the latter and two feet for the former are the maxima. Neither are the stands dense and except for the undergrowth of cacti a horse may be ridden anywhere. At the same time the following species have such valuable qualities that they are logged in spite of their short and crooked boles: Cabinet woods. Lignum vitae — Guajacum officinale L. Algarroba — Hymenaea courbaril L. Moca — Andira jamaicensis (W. W.) Urb. Dye wood — logwood — Haematoxylum campech. Corkwood or balsa wood. Oshroma lagopus Siv. But highly prized as these species are they do not offer attractive logging because they never occur in pure stands but are found singly, seldom more than one to the acre of any one species. Consequently even virgin stands are low in yield, rarely exceeding 2000 board feet per acre. Murphy's estimate of the present stand is 2,487,000 cords, or approximately one cord per acre, only half of which can be sawn into logs. Hence, it is evident that except in the most inacces- sible places there is not enough timber to attract a lumberman. Nothing else can be expected when it is remembered that the rural population is denser than in any state of the Union. In fact only 2 per cent of the total land area still has virgin forests and not more than 8 per cent has saw timber. The rest of the 20 per cent is simply brushland which will yield merely firewood . CHAPTER XX PHILIPPINES The Philippine Islands are one of the few reservoirs of tropical timber which have been carefully investigated. The Spanish Government had granted very few alienations so that when the United States took possession of the islands in 1898 there were 41,000 square miles of virgin forests placed under our control. Since that time the Philippine Bureau of Forestry has been sys- tematically estimating the stands, looking for suitable logging chances and testing the different kinds of timber. Hence, there are few equal areas of tropical woodland which have been so thoroughly described. The data here presented were obtained from the publications of the Insular government and special papers in the technical journals. The total land area in the islands of 123,000 square miles is divided as follows: • Per cent Tillage 10 Grassland 4° Second growth timberland i6f Virgin forest 333 100 Only the virgin forest has been reported upon by the Philippine Bureau of Forestry. The second growth stands occur on areas which have reforested after being abandoned for tillage and do not contain merchantable timber in amounts large enough to repay anything but local development on a small scale. The Bureau of Forestry has divided the virgin forest into the following forest types : Per cent of virgin forest area Dipterocarp types 75 Molave type 10 Pine type 5 Mangiove type 2 Mossy (mountain) forest tj^e 8 100 152 DIPTEROCARP TYPES 1 53 Dipterocarp Types. — Commercially as well as In extent the dip- terocarp types arc the most important. The average stands per acre of valuable timber range from 2 to 45M board feet \vith an average of loM. Fortunately, too, a high percentage of the stands consists of species which yield easily worked construction lumber similar in characteristics to the yellow poplar of the southern Appalachians. In fact, the determination of this impor- tant point was unique in tropical lumbering. It had been assumed heretofore that the only valuable species were the cabinet woods like mahogany, ebony, and lignum vitae and that tropical build- ing construction must depend upon the pines of the temperate zone for its cheap building material. Moreover, this puts an entirely different aspect on things for the lumberman. The cabinet woods do not occur in heavy stands but scattered singly so that only the crudest logging methods have been employed in their exploitation but a stand of loM board feet per acre justifies the installation of the economical steam skidding methods developed for the heavy stands of the northwest and reduces greatly the cost per M of getting out tropical lumber. Of all the dipterocarp types the one with the heaviest stands per acre is the lauan type on which the lauans, with wood like our yellow poplar, predominate, and in which stands of 45M per acre are not uncommon. This occurs, as might be expected, on the deep soiled sites where the rainfall is evenly distributed thruout the year and abundant, i.e. over 60 inches per annum. Given plenty of precipitation it may extend up to an elevation of 1000 feet above sea level where the temperature conditions become unfavorable. A good idea of the composition of the type may be obtained from the following table which is based on the measurement of over 100 acres of strip surveys: Per cent Red lauan 41 Almon-lauan^ 20 Apitong 14 Tanguile 13 White lauan Bagtican lauan . Other species 6 100 154 PHILIPPINES The red, almon, white and bagtican lauan and tanguile are all suitable for light and medium construction work having wood similar to that of yellow poplar and Douglas fir, hard pine. This means that they are not durable in contact with the ground or resistant to white ant attack but neither are their competitors. Nevertheless, they can fill the demand in the tropics which is now being met by importations of northern softwoods. Further- more, the better grades are being shipped to the United States as " Philippine mahogany." Apitong, altho also a dipterocarp, is harder and heavier than the lauan group and tanguile. It is suitable for heavy construction work where it will not be in con- tact with the ground, and enters directly into competition with the imported hard pine. The second dipterocarp type, the lauan hagachac type, occupies sites similar climatically to those of the lauan type but the growth conditions are less favorable because during the rainy season there is an excess of soil moisture in the bottomlands which this type preempts. Light construction woods like lauan and amugius make up 41 per cent of the total average stand of 16,000 board feet per acre while the heavier woods suitable for interior framing compose 25 per cent. Among the remaining 34 per cent, narra, the most common commercial wood of the PhiHppines and a sub- stitute for mahogany and padouk, is the only one that deserves special mention. It makes up 5 per cent of the total stand. Summing up, 7 1 per cent of the total volume of this type finds a ready sale on the local markets with the export trade compara- tively undeveloped as yet. In the yacal-lauan type a smaller percentage of the total stand is readily marketable but the stands are heavier. Of the average stand of 28M feet per acre 17 per cent consists of the softer dip- terocarps, 20 per cent of the harder varieties of wood suitable for interior framing but not where great durabiHty is required, and 20 per cent of durable woods which can be used in contact with the ground and will resist white ant attacks. This type occurs on volcanic soil at low elevations where the rainfall is abundant but irregular. The dry season is often prolonged enough to cause the fall of many of the leaves so that the type is semi-deciduous. MOLAVE TYPE 155 A dry season and consequent falling of the leaves Is also charac- teristic of the lauan-apitong type. This is, in fact, the main character which separates it from the lauan type. Otherwise, it occupies much the same sort of sites, the foothills below an eleva- tion of 400 meters above sea level. Ordinarily, no durable woods occur in this type but 42 per cent of the average stand of 28M feet per acre are the harder dipterocarps suitable for interior framing and cabinet purposes. The soft dipterocarps compose 26 per cent of the stand. The remaining dipterocarp type, the tanguile-oak type, has not yet been so thoroly studied as the other types because it is not so important commercially on account of its relative inacces- sibility. It occupies the middle mountain slopes between the lauan and lauan-apitong types and the mossy-forest type at ele- vations between 400 and 900 meters above sea level. Tanguile is the important species commercially. Its wood is fairly soft but not durable so that it is mainly used for interior construction purposes. The composition of the dipterocarp types is summed up in the following table: COMPOSITION OF DIPTEROCARP TYPES Types Dipterocarps suitable for construction woods Durable woods Misc. species Total stand per Soft Hard Lauan Per cent 80 41 17 26 Per cent IS 25 20 42 (Data Per cent 5 20 lacking) Per cent 5 29 43 32 Mbd.ft. ! 45 Lauan-hagachac 16 Yacal-lauan 28 Lauan-apitong 28 Tanguile-oak Molave Type. — The molave, a near relative of teak and a sub- stitute for it, gives its name to a type which occurs on dry lime- stone soils where the drainage is so rapid that there is insufficient moisture for dense growth even tho the dry season is short. The type does not occur at elevations greater than 500 feet above sea level so that the temperature conditions are always tropical in 156 PfflLIPPINES character. The great evaporation and rapid runoff produce con- ditions which are not favorable to either dense growth, rapid growth or great individual development. The traces are short and far apart. Commercially, however, this has been and is an important type because of its accessibility and the great demand for the hard, durable woods Uke molave, narra, trudalo, acle, banuyo, etc. Hence, altho the average stand under virgin con- ditions is only 3M per acre the tjq^e has been heavily exploited. Mangrove Type, — Another type which has relatively lowstands per acre but which has been heavily exploited by reason of its accessibility and the special value of its products is the man- grove type which fringes the shore line of protected salt waters. The trees cannot stand heavy surf but form a low dense growth in such relatively sheltered locations as the muddy flats at the mouths of the larger streams. Under virgin conditions the stand per acre has been found to run as high as 13M board feet of saw lumber altho this included a relatively small proportion of the trees. The type has been principally exploited for firewood and for tanbark and stands of five cords per acre or 10 tons of bark are not unusual. Growth is fairly rapid so that the same area may be cut over for fuel and bark at intervals of at least 20 years. Pine Type. — Stands of pine averaging 7M per acre and made up of trees 100 feet high and 30 inches in diameter occur in the high plateau region of northern and central Luzon at elevations ranging from 3000 to 5000 feet above sea level. The climate is distinctly cooler than at sea level so that growth is fairly rapid in spite of the long dry season. Unlike many species of pine these stands can stand considerable burning and are able to hold their own against the encroachments of the grass in spite of the frequent fires. Beach Type. — On the sandy beaches above tide water which have not been preempted for settlement and consequently had their original vegetation much modified there are light stands not exceeding 3M board feet per acre of such durable woods as ipil, narra, dungon, palo maria and agoho scattered among less val- uable species. TIMBER VALUES 157 Mossy Type. — Another relatively unimportant type is the dense but scrubby tree growth found on the exposed mountain summits. None of these produces in sufficient amount to pay for its exploitation. Timber Values. — The determining factor in the methods of tropical estimating are the low values of stumpage per M and per acre. Even the valuable cabinet woods like mahogany and ebony are worth very little standing. They only become so when transported long distances to the user. As a consequence it is not worth while to estimate thern closely. It is sufficient to dfetermine that there is at least so much on a given tract. In other words, estimates of tropical timber need to be especially conservative. A wide margin of safety must be present in an enterprise which involves so many risks. By way of comparison the woodlots of New England lie at the other extreme. The manufacturing plants are close at hand and transportation never makes up more than 20 per cent of the sale value and from 50 to 25 per cent is paid for stumpage. The problem being then to determine within 25 per cent how much timber there is on a tract relatively crude methods may be used, provided care is taken at every point to be on the safe side. Liberal allowance must be made for defect. While strips are safer, sample plots will often be good enough especially for large tracts. They should, however, be distributed in some regular manner or the tendency will be to take them in the better timber. Preferably they should be at fixed distances apart but time inter- vals will serve for large tracts if the rate of travel is kept uniform. For example a tract may be traversed at intervals of a mile and sample plots one-quarter acre in size taken every one-quarter mile. The costs of such estimates will necessarily be low per acre but relatively they will be high because of the cost of travel to the tropics. There are few firms that make a specialty of estimating tropical timber and maintain local agents. Consequently it is usually necessary to send from the temperate zone a man who is sufficiently acquainted with tropical conditions to make a safe estimate. But even under these circumstances a tract of 100,000 acres ought to be valued for two cents per acre. 158 PHILIPPINES The same principle holds with reference to stumpage prices that applied to estimating. An ample margin must be ensured on account of the risks involved. Markets are uncertain, methods are crude and inefficient and labor unskilled in the aver- age tropical lumbering job. For example, mahogany logs have commonly been felled with an axe, dragged overland with oxen or driven down the nearest stream. Even with cheap native labor these operations have been expensive so that there are very few mills whose logs cost less than $5 per M and many where the cost is two or three times that. Of course, the opera- tions equipped with modern steam skidding appliances do not have to pay so much but they are the exception rather than the rule. In fact, they are only feasible in heavy stands Hke the dip- terocarp forests of the Philippines. The logging of the better known tropical woods like mahogany. West Indian cedar, ebony, etc., is still carried on in a primitive way because the trees do not occur in dense stands but grow scattered. Likewise, the milling is expensive for several reasons. In the first place the timber is generally hard, heavy and difficult to season. Hardwood mill costs are always greater in the states than softwood costs. In the tropics there are two other factors which need consideration. Skilled labor is hard to obtain and hold. It must be imported at great cost and the men do not find living conditions for themselves and their families which attract them. Furthermore, deterioration of the machinery and buildings is very rapid in the moist, warm climate. Tools and machines can only be kept in order by extraordinary vigilance. Hence, mill charges in the tropics must be put at least 50 per cent higher than in the states. There are in fact few mills that got sawing alone done for less than $3 per M prior to the War. Planing, kilndrying and yard charges are proportionately high. Transportation from the mill to market is, however, the most difficult factor. This is, of course, simply another way of saying that the tropics are for the most part unequipped with cheap and rapid means of moving heavy freight. Water transport is the cheapest and it is safe to say that no sizable sawmill can be made to pay under present conditions unless it is on tidewater or TIMBER VALUES 159 a navigable stream. Even then small steamers or sailing vessels must be relied upon which are not built specially for this kind of cargo. In the PhiUppines the cost varied from $5 to $30 per M, while an operation in Brazil marketing its product in Buenos Ayres had a charge of $20 per M to meet in 1915. Sale values in the wholesale markets may be illustrated by the prices paid in Manila in 19 10 when the softer, non-durable con- struction woods hke the dipterocarps were seUing for $25 to $30 PQr M, hard durable timbers from $75 to $100, and the cabinet woods from $80 to $1 50. These prices would give ample margins, especially in the case of the cabinet woods, if there were no acci- dents, but the two limiting factors of primitive logging methods and poor transportation to market generally cut down the aver- age margin to less than $10 per M. In conclusion Dr. Whitford's words (Bulletin 10, The Forests of the Philippines, Part I) may be used to give a bird's-eye view of the situation because they apply to all kinds of tropical lum- bering: — " To sum up, the high cost of placing the timber of the Philip- pines on the market is due to the following causes: (i) The high cost of logging, due principally to the crude methods em- ployed and to lack of proper supervision; (2) the excessive cost of milUng, due to (a) insufficient equipment and poor arrangement of the mill, (b) to the difficulty of getting compe- " tent men to manage the operations, and (c) to a consequent loss in sawing due to excessive waste and poorly manufactured material; (3) as yet no company has a capacity sufl&cient to warrant their owning or hiring vessels especially adapted to carrying lumber to the home or foreign markets. The condi- tions above described are distinctly pioneer in nature. A few companies have successfully met some of them, but none have as yet succeeded in meeting the entire situation. When they do, they will be able to compete with all other timbers of like grades in the foreign and home markets." Besides the value of the Philippine forests for the production of lumber a number of other special products are obtained from them. Fuel purposes, for example, actually consume a larger i6o PHILIPPINES total amount of wood than lumber uses but it is nearly all for local consumption and is gathered in small amounts. The man- grove swamps being nearest to the settlements along the shores have had to furnish most of this material. Firewood was worth $12.50 a cord in Manilla in 1910. Another important use of the mangrove swamps is for dye- stuff. Tannins are also obtained from this type, the " cutch " being made from the bark. The resins for caulking, paint and illuminating purposes come from the native pines and the diptero- carps. Gutta percha and rubber can be obtained from many wild species of trees and vines and the cultivation of rubber has passed the experimental stage. Various oils useful for soap or medicinal purposes are collected for local consumption. Tying material also comes largely from the forest. Rattan is another tropical forest product which is not only used for tying large packages like bales of hemp and tobacco but is also employed for furniture and hats. But unquestionably the erect palms are the most useful of any single class of trees. Their trunks are used in building either on the round or spUt, the leaves make mats, roofing, etc., and the fruit is edible in several species. What the value of these minor products is per acre for any given type of forest cannot be stated in general terms. Each case must be examined separately because of the paramount influence of local market conditions. Many of these have no value at all over wide areas under present transportation con- ditions. Land Values. — In figuring the value of the land itself in the Philippines there are the same three possibilities to be considered in each case as in temperate climates, — tillage, pasturage and forestry. It must be assumed that because the cHmate is warm enough for a great variety of plant growth that all soil is poten- tially tillable. Other factors need to be considered, the most important of which are the amount of rainfall and the slope and to a lesser degree the kind of soil, whether clay, sand or gravel, and percentage of rocks in the surface layer. The common conception of the tropics as a place of ample rainfall is erroneous for the regions where the mean annual precipitation is less than TIMBER VALUES l6l 30 inches. There must be at least that much to offset the rapid evaporation and for the growing of crops without irrigation 60 inches well distributed throughout the year is a safe minimum. Consequently there are some parts of the Philippines where irrigation is the sine qua non of successful agriculture. Slope is the Hmiting factor second in importance. With the heavy downpours of rain and the open winters slopes cannot be tilled as long as in the temperate zones. As a consequence only the level lands are kept in permanent tillage and clearings made on slopes are only cultivated a few years before being allowed to revert to tree growth. The character of the soil is of importance primarily from the standpoint of its abiHty to hold water. The open gravels and sands are only tillable where the rainfall is over 6b inches per annum. The percentage of rocks in the upper layer is of less importance in the tropics than in temperate regions because the processes of disintegration are rapid and surface rocks quickly break down. Summing up, then, only the level clays and loams are desirable for tillage and the rainfall must be abundant or irrigation possible. Such lands near the market and extensive enough to make up large units are worth fully $100 an acre when ready for cultivation. The extent of the tillable area is a matter of prime importance because tropical agriculture is neces- sarily a large scale enterprise because of the remoteness of markets. Aside from the trifling local demand which is mainly met by produce from their own gardens all foodstuffs must be shipped to the temperate regions for the feeding of the dense populations there. This means that transportation is the con- trolling factor. Consequently there are no large plantations which do not have their own wharfs or ready access to ones where sea-going vessels may dock. Furthermore, a plantation must have its own fleet of vessels or be at the mercy of the transportation companies. In other words the tropics are no place for the small scale agriculturist. Only large concerns farming vast areas and shipping in their own bottoms have been successful. Grazing is, as always, a low use of land and this dictum applies with special force to the tropics because there are no high class l62 PHILIPPINES grazing lands. A sod cannot form except on level land suited to tillage. The slopes erode as fast as the tree growth is cleared from them. This should not be understood to mean that there is not a large acreage which is being used as range in the Philip- pines but it is in relatively small bodies, poor in quaUty and dete- riorating in carrying capacity. None of it is worth more than 50 cents an acre for this purpose alone. Comparatively little is as yet known in regard to the producing value of tropical timberlands. The problem of determining the age of stands is more complicated than in temperate regions because annual rings are not formed. It becomes necessary, therefore, to depend upon records of growth. From these it would appear that the better watered soils can produce stands of merchantable saw timber in less than 50 years. Hence it follows that tree production or forestry is second to tillage as a use of land. On the steeper and more arid soils it is often the only profitable use. As a general policy it may safely be stated that a change from forestry to tillage or grazing will not be profitable in the long jun unless the land can be devoted to cultivated crops. Land Titles. — ^As explained above, the title to the principal forest areas in the Philippines is in the United States by direct transfer from the Spanish Government. In the few cases where timberland is in private hands a satisfactory title is hard to obtain. Accurate surveys are practically unknown and many transfers unrecorded. Then, too, the problem of undivided ownership often occurs. For example the title to a tract of land may rest in the descendants of a grantee several generations back without any attempt by the heirs to parcel the land out. CHAPTER XXI TIMBER VALUATION In the determination of the value of standing timber, or stump- age value, the following four factors must be considered: 1 . The amount of the timber in board feet, cubic feet, coras or other unit. 2. The quality of the timber. 3. Sale value of the finished product whether lumber, cord- wood, etc. 4. The costs of manufacture including logging, milling, etc., and a reasonable profit to the logger and mill man Estimating. — It is not necessary to discuss here in detail the various methods employed in determining the amount of stand- ing timber. It does seem apropos, however, to summarize the facts which have been developed in the discussion of the different types of timber with reference to the costs of estimating. The cheapest kind of an estimate is, of course, a guess and strangely enough this method is employed widely with one of our most valuable types of timberland, second growth white pine. The reasons for this are that the stands are remarkably uniform in size and density while there is but one merchantable species and the tracts are small. It is perfectly possible for an experi- enced operator to guess within 5 per cent of the true amount. But no man would feel safe in applying this method to large tracts which he could not walk all over in a day. Hence it happens that large tracts of cheap stumpage such as are found in the tropics must be taken as examples of the second cheap method of estimating, the sample plot method. In this way a large area can be covered expeditiously and yet sufficiently accurate results ob- tained. For most cases the third method — the strip system — is the best. Where the tract is large, the stand uniform and the stumpage cheap the percentage of the area actually measured may 163 l64 TIMBER VALUATION be small while on small tracts of valuable timber, and especially in complex stands, the percentage should be high. As an illus- tration of the former conditions the Douglas fir type on the Pacific may be cited. The percentage estimated may run as low as I per cent and seldom exceeds 5 per cent. On the other hand, only high percentages will give satisfactory results in the valuable white pine of the Lake States or the mixed stands in the southern Appalachian coves. The following table summarizes the methods and percentages applicable in the different types: Per cent Northern spruce strip method 5 to 10 Northern hardvvoods White pine Swamp Southern hardwoods Bottomlands Southern pine Western yellow pine Lodgepole pine Engelmann spruce Silver pine Sugar pine Douglas fir Sequoia Alaska 10 to 20 25 to 100 5 to 25 5 to 100 5 to 10 5 to 10 5 to 10 5 5 to 10 10 10 to 20 5 to 10 I to Tropics strip or sample plot i to 5 Wages and food costs vary in general directly with the acces- sibility. A man demands more to go into the wilderness and his food costs more than when he is working near settlements. The accessibihty is also the most important factor in base line and corner location. The longer a region has been settled the better the surveys are in most cases. Unfortunately, this rule does not hold for most of the thirteen original states. The south- eastern Atlantic states are notorious for their confused and over- lapping land grants, while many of the newly settled western states have fairly good surveys to tie to, thanks to the rectan- gular land survey system. The size of the trees, their number per acre and their variety are also factors which afifect the cost of estimating. Medium sized trees are the easiest to estimate closely while the stands with ESTIMATING 165 a great range in diameter and height require constant checking to prevent errors. It is, of course, axiomatic that more time is required to cover dense stands than open stands. Likewise, a large number of different species slows down the estimator. Estimating in the mixed stands of the Southern Appalachians takes more time than estimating in pure stands of white pine other things being equal. The following table summarizes estimating costs including the necessary office work in the different regions and offers a chance for a comparison of the amounts required under various condi- tions: Type of timber Spruce Northern hardwoods. . . White pine Northern swamp Southern hardwoods Cove Slope Ridge Bottomlands Southern pine Western yellow pine Lodgepole pine Engelmann spruce Silver pme , Sugar pine Douglas fir Redwood Alaska (?^"^^°^if.-^Pr^^^ I Spruce-birch. . . . Tropics Per cent covered Minimum cost per acre Cents 10 15 10 ID 10 10 10 ID 25 45] }■» 10 average 5 3] 10 15, 10 7l 10 4 5 10 10 IS 10 10 10 10 5 6 10 10 5 7 % 7 2 Minimum costs are given because average figures would be of little value without some knowledge of the range and the upper hmits are exceedingly variable. In fact the main use of the table is to show the relative costs. For example, costs are ordinarily lowest — two cents to four cents an acre — in such widely separated regions as the western yellow pine type of the Rocky Mountains and the tropics. In the case of the latter the low per- centage estimated is sufficient to account for the low cost while the uniformity of the stands, freedom from underbrush and low value l66 ' TIMBER VALUATION of the timber explain why western yellow pine can be estimated cheaply. The timber of Alaska also falls into this group. In the next group — that in which the cost per acre is seldom less than five cents — are types from various parts of the United States. They have the same minimum cost for various reasons. The lodgepole pine of the Rocky Mountains occurs in dense stands of uniform size, not readily accessible and hence not especially valuable. Silver pine stands on the other hand are valuable but they are so uniform in size and composition that they can be covered rapidly. The costs for southern hardwoods are also low in spite of the variety of species because of the low stump- age values and openness of the stands. This statement is true even tho the southern hardwood coves contain dense stands of valuable species for the reason that the coves form but a small percentage of the type. In the seven to eight cent group fall the open stands but high priced stumpage of the southern pine type; the dense, inacces- sible Engelmann spruce, and the heavy but low priced stands of Douglas fir, redwood and sugar pine. Northern hardwoods and northeastern white pine cost about the same per acre because the stumpage values are liigh. The greater value of the pine offsets the larger number of species in the hardwood type. The most expensive types to estimate are northern spruce and the southern bottomlands. Both have relatively valuable stumpage and both are inaccessible with poorly marked boundary lines. Quality of Timber. — Of the factors that effect the quahty of timber, size is the most important. Other things being equal the wider and longer a stick of lumber is the more valuable it is. The largest sizes can naturally be secured from the Pacific Coast where the cUmatic conditions have favored the growth of large, tall trees of unusual dimensions, so that the sequoias, Douglas fir, sugar pine, silver pine or western larch are sought when excep- tionally wide or long lumber is needed. The east can, however, give lumber of no small size from its white pine, southern yellow pine and yellow poplar. In fact, these species grow large enough QUALITY OF TIMBER 167 for common uses and it is the practice to cut down to normal size most of the western coast lumber put on the market. The other types of timberland not listed above produce medium sized trees with the exception of considerable spruce and lodge- pole pine which comes on the market in small sizes. Technical defects vary with the use to which the trees are to be put and the species. For example, less than 10 per cent of the average eastern red spruce tree could be used for airplane stock because only clear, straight grained wood would meet the require- ments. On the other hand at least 60 per cent of a tree of the same species can be used for pulp wood. Hence it is always neces- sary m estimating the value of a tract of timber to be armed with a full knowledge of the uses to which the trees are to be put and what technical defects preclude them from such use. This means that the estimator must know exactly what effect knots, spiral grain, and color of sap wood or heartwood have on the sale value of the species being valued. Closely related to the deductions for technical defects are allowances made for damage from fire, insects, fungi, wind, snow- break, noxious gases, etc. They are in fact determined in the same way, by a close study of the cull made at the sawmill or manufacturing plant. Usually it is not necessary or possible to separate the efTects of the different kinds of damage. Simply a lump estimate of cull is sufficient. This may run from 60 per cent of the log in the case of high grade quartered stock to less than 2 per cent in the case of boxboards. It must always be deter- mined locally because use possibilities, amount and degree of damage vary from tract to tract. The ideal to be attained in any logging operation is the most complete utilization that market conditions will permit. This should take into consideration not only the logs fit for lumber but the whole tree. By volume an average tree is made up as follows: i68 TIMBER VALUATION Stump. . . Bole Limbs. . . Branches Bark Softwood Per cent S 60 15 Hardwood Per cent 5 45 20 IS IS 100 It is readily seen that an operation which only takes out the butt logs is utiUzing a very small per cent of the whole tree. This often falls as low as 30 per cent where transportation is expensive. Reports on the value of a tract of timber should always take this factor into consideration. It may well happen that a tract only capable of turning out low grade lumber, posts and cordwood may yield much more per acre, gross and net, than a tract of high quality timber on which market conditions do not permit close utilization. Sale Values. — The per cent of utilization is also a very impor- tant factor in determining sale values per acre because a high value per M may give no real notion of the returns to be expected from a tract if only a small portion of the tree can be gotten to the sawmill. In this discussion the value per acre will, therefore, be taken as the criterion altho lumbermen are more accustomed to think in terms of a thousand board feet than in terms of acres. In other words the point of view assumed is that of the man who wants to know how much a given tract will yield him rather than that of the operator who is interested in turning out a certain product. However, the determination of the sale value per M is, of course, the first step in figuring sale values per acre. A list is therefore given of these values for the important species at their nearest market point. These points must necessarily vary because there is no central market in which all kinds of lumber compete on an equal footing. Western fir, for example, only reaches the Atlantic Coast in the best grades while the lower grades are widely used locally. Further it must be remembered that the values given are averages for the log run. Grades can- SALE VALUES 169 not be compared directly because they are intended to fill the requirements of special uses to which other species may not be suited at all. But in reaching the average values per M, log run, the percentage of the different grades and their respective sale values must be considered. This introduces a serious diffi- culty because these percentages vary within wide limits. Fur- thermore, the prices per M of the different grades are subject to fluctuations. Consequently it is impossible to give even for a specified date absolutely accurate figures. All that can be hoped is that the figures are relatively correct. The first table is a list of wholesale values by use classes. These prices are intended to represent the values at which retail yards may purchase from the mills that do their own marketing or from wholesalers handhng the product of several mills. They give for the principal classes of wood products the prices that obtain for lumber, cordwood, etc., designed for a certain purpose irrespective of species. Boston was chosen because it is a mar- ket close to the manufacturing centers and its prices represent maximum values. A fairer comparison of relative values can be secured in this way than if a market were selected which is not equally favorable to all kinds of wood. WHOLESALE VALUES PER M FOR THE PRINCIPAL USE GRADES OF WOOD PRODUCTS Based on Boston prices, Jan. i, 1920 PerM Liunber: Tropical cabinet woods $250 Quarter sawn oak 250 Clear, extra wide softwood 200 Native cabinet woods like black walnut 200 Ash (clear stock) 15° Hickory (clear stock) 125 Hardwood finish 125 Hardwood flooring 100 Softwood dimension 60 Softwood inch boards 45 Boxboards 35 Shingles 4° Laths SO lyo TIMBER VALUATION Cord wood: Best hardwood $12 per cord 24 Softwood $7.50 per cord 15 Poles SO Ties 30 Cooperage (tight and slack) 50 Pulp 20 Tanbark 10 The next step is to use these figures in determining the values per M by species. Two considerations enter into this problem. It is necessary to know not only to what uses each species can be put but also what are the best uses for each part of the tree. To illustrate the first point the difference between cottonwood and curly maple may be cited. The former is wholly unfit for cab- inet wood. A recent example, fresh in everyone's mind, of the second point is airplane spruce. Material that will meet the rigorous specifications of the airplane manufacturer can only be secured from the butt logs of the larger trees. The upper logs are wholly unfit for this purpose. Taking up the use classes in order, the first may be quickly disposed of because tropical cabinet woods come only from the Philippines and to a very limited extent from Porto Rico, Panama and southern Florida. Mahogany and Spanish cedar are the most important species but only a very small proportion of the whole tree reaches the market. While there are no exact data it seems safe to say that not more than one-third of the whole tree reaches the market. In the first place only relatively clear, sound lumber can be used while poor transportation facilities make it desirable to leave in the woods all non-merchantable material. Consequently while the prices of merchantable tropical cabinet woods are high, the value per M of what would be salable with most tree species is low. With one-third of the tree reaching the market and a value per M of $150, the sale value judged by the ordinary standards of merchantability is reduced to $50 per M. Quarter sawn oak is exactly the same kind of a proposition — high prices for a small selected portion of the whole merchantable part of the tree judged by the stand- ards of merchantibility applied to other species. SALE VALUES 171 Extra wide, clear softwood presents a different problem for while merely a small percentage of the tree gives lumber which can be included in this use class the rest of the tree is not wasted. As an example of the kinds of lumber obtainable, the sugar pine figures of Larsen's Bulletin No. 426 of the U. S. Forest Service may be cited. Converting lumber grades into use classes gives the following percentages: Per cent Wide clear lumber (firsts and'seconds) 15 Sound lumber with small knots, "dimension" or "shop" 30 Timber with large knots only suitable for cutting up, " common " and " boxboard " grades 55 The only other kinds of softwoods which would have as high a percentage of wide, clear stock are cypress, virgin white pine, silver pine, yellow poplar, and redwood. Basswood, cottonwood,, and yellow pine seldom average better than 10 per cent while Douglas fir and spruce cannot be depended upon for more than 5 per cent. Of the native cabinet woods black walnut stands in a class by itself but like the tropical cabinet woods only a small proportion of the tree is ordinarily used. Fifty per cent would be a generous estimate even when the narrow strips used for gun stocks were to be cut. Ash and hickory are not used for the same purpose but their utilization is similar in method. While each possesses a special field in which it distances all competitors, only clear, sound stock can be used. This in turn means much waste judged by the ordinary standards of merchantability. Hardwood finish and flooring can be conveniently grouped because they are both made from narrow, clear lumber. While flooring is seldom over four inches wide the maximum width for No. I absolutely clear finish is six inches, so that there is no great difference in this regard. Braniff 's figures in U. S. Forest Service Bulletin 73 furnish the best indication of what may be expected from hardwood timber as far as high grade stock is concerned. He found that not more than 30 per cent of a lot of large, sound 172 TIMBER VALUATION logs would give No. i and 2 grade which may have a limited num- ber of defects if more than 6 inches wide. The remaining 70 per cent of the log was only fit for common lumber from which no clear stuff was obtainable except in short lengths and narrow widths. Consequently finish and flooring do not give close utilization or high net returns. Softwood dimension lumber is really the first group which uses a reasonably large proportion of the log. Thirty per cent is the figure for sugar pine while species like Douglas fir and spruce which have very little clear lumber naturally give larger percen- tages if " dimension " or " shop " lumber. Both these grades are essentially the same. Soundness is the desideratum. If the species has stiff wood like spruce, dimension is the best use. If it is weak like pine it is graded as " shop " and cut up for door or sash stock. It is not, however, until the common inch board is reached that the greater part of a log can be thrown nto one use class. '' Com- mon " and " boxboards " are the grade names for the knotty lumber which comes from small and top logs and the inside of large logs. Even in such a large species as sugar pine 55 per cent of the average log must go into these grades. Small logs like those of second growth pine yield nothing else. Both hardwood and softwood " common " lumber go mostly into boxes and crates. Summing up, the grades of lumber which can be obtained from the average log are as follows: Per cent Softwood lumber: Clear, wide stock 15 "Dimension" or "shop" 30 Common and boxboards 55 Per cent Hardwood lumber: Finish or flooring 30 Common boards 70 SALE VALUES I 73 Ordinary sawn shingles utilize the same parts of a tree that lumber does. The only difference is that a higher per cent is manufactured than with square edge lumber because there is less waste in slabs and edgings. Shingles sell for $25 to $35 per M board feet, log scale. Laths furnish the only outlet for the sale of the slabs and edg- ings in the ordinary sawmill and even they cannot be manu- factured at a profit where there is a long freight haul to market. Reduced to board feet laths sell for about $20 per M (1920). So far only that 30 to 50 per cent of the solid cubic contents of the tree has been considered which is in the bole. Little attention need be paid the stump because it is only rarely merchantable and then at a low figure. This does not, however, apply in the case of the limbs which may be made to yield much valuable pulpwood, extract wood or firewood. All tree species may be cut for the latter purpose but there is a wide difference in their fuel value. A cord of pine will not give more than half the heat that a cord of hickory vdW. Distance to market is the con- trolling factor, however, since cordwood is bulky, heavy material which is hot valuable enough to repay shipping far. In the ordinary logging job it must be left in the woods. But where the haul is not too great the cordwood may add $1 to $5 to the profit on each thousand feet of lumber. Similar returns may be expected from pulpwood, extract wood and wood alcohol in favorable locahties. Yellow poplar is the most commonly used limb wood for the former while chestnut is the only species widely used for extract wood. Beech, birch and maple are most sought in the manufacture of wood alcohol. Poles are one of the few uses which utilize a high per cent of the tree. In addition to all that could be turned into lumber much that would otherwise be only fit for cordwood is taken. Unfor- tunately, relatively few species have sufficient durability in con- tact with the ground to be suitable for this purpose. Hence, 90 per cent of all poles used in the United States are either cedar, chestnut or oak. Railway ties also make use of parts of the tree that are ordi- narily considered too coarse for lumber so that the utilization is 174 TIMBER VALUATION midway between that of lumber alone and lumber and cordwood combined. Durability is of the first importance here as with poles while hardness is scarcely less important. The species commonly used for poles are also those most sought for railway ties For tight staves only a few species are suitable and oak, white and red, is. the most desirable. In fact more than four fifths of all tight staves are of oak while whiskey and beer casks are made from white oak only. Moreover, these uses demand clear lum- ber so that they are not close in their utilization. Slack staves, on the other hand, can be made from medium grade lumber from a number of species and from small logs so that they utilize about 60 per cent of the total cubic contents of the average tree. Summarizing the utilization obtainable with the various uses referred to above gives the following figures: Per cent of the whole tree Clear wide softwood 5 to 10 Clear hardwood 15 Dimension or shop lumber 15 Common boards 35 Shingles 60 Laths 10 Cordwood 20 to 80 Poles 70 Ties 20 to 70 Cooperage, tight 15 Pulp 20 to 80 Tanbark (usually in addition to other uses) Having discussed the sale values of the various kinds of wood products and the per cent of each which can be obtained from the different commercial tree species, the two may be combined to give average sale values per M for each species. These differ from the Forest Service log run average prices f.o.b. mill in two important respects. In the first place, the table given below takes into consideration the use of wood for other purposes than . lumber. Tops and bark are included wherever merchantable. Secondly^ the values are wholesale prices in a recognized market, not values f.o.b. the producing point to which uncertain freight SALE VALUES 175 rates must be added to make it possible to compare them intel- ligently. The Forest Service figures were, of course, used as a check. Two objections may be validly made against these figures. They are, in the first place, merely for one market. Other mar- kets may vary greatly in their prices for a given product. While it is obviously impossible to deny this criticism, it is equally out of the question to correct it by giving in the limited space available data for all the wood markets. Even a selection of the most important would be difficult to decide upon and not espe- cially helpful. The prime use of the figures is for purposes of comparison. No work of this kind could be expected to be revised frequently enough to keep up to date with daily market changes. The second objection is that the values given are more nearly maximum than average. Minimum prices would be of no use because there is no lower limit beyond which the necessities of a seller may not force him. If he must sell current market quota- tions merely represent an unattainable maximum. Since there is, therefore, no absolute minimum maximum prices are the only ones that can be secured in sufficient abundance to prevent gross errors. They are the prices sellers Uke to give out. They are published in all trade journals while figures of actual transactions are guarded jealously. Much the same conditions prevail in the choice of uses to which wood may be put. High grade mahogany is frequently used in the tropics for firewood or railway ties, but such uses do not interest the woodland owner. He wants to know how he may get the most out of his timber. Therefore, it has been assumed in figuring the average values that each part of the tree is put to its highest use. The tree species which have been discussed so far fall into three groups when arranged according to their values per M with all parts of the tree included. This grouping may appear strange at the first glance unless it is remembered that all the mer- chantable parts of a tree are considered, tops and bark as well as those portions which will make lumber. The importance of such figures is easily apparent to the woodland owner who plans on 176 TIMBER VALUATION producing continuous crops of timber. What he wants to know is what will bring him the most per acre. In other words, his point of view is different from that of the lumberman who thinks only in terms of logs. In fact the acreage, and not the log, basis seems the reasonable attitude for all timberland owners to take irrespective of whether they are going to raise continuous crops. In purchasing or operating a tract the owner is anxious to get a large net yield per unit area irrespective of whether it comes from choice logs or branchwood. Like the meat packer the timber- owner can no longer afford to neglect his by-products. Wholesale values per M feet board measure in timber and supplementary products at mill, January i, 1920. Group I. Values of $50 per M and more. A . Cabinet and furniture woods with merchantable tops. Yellow poplar, walnut, white and red oak, maple, ■birch, and black cherry. B. Wide, clear softwoods, tops not merchantable. Virgin white pine, silver pine, sugar pine, and red- wood. C. Softwood valuable for interior finish and dimension stock, tops usually merchantable. Southern yellow pine. D. Special hardwoods, tops merchantable. Ash and hickory. Group II. Values of $40 per M and more. A. Second grade hardwoods, tops usually not merchant- able. Chestnut, black oak, basswood, red gum, cotton- wood and tupelo, beech. B. Softwoods mostly used for dimension timber. Cypress, western yellow pine, western larch, spruce, and Douglas fir. C. Shingle woods. White cedar and western red cedar. D. Pencil and chest wood — eastern red cedar. SALE VALUES I 77 Group III. Values of $25 per M and more A . Low grade softwoods. Hemlock and balsam. B. Tropical hardwoods. Mahogany, ebony, etc. With this table of values for the individual species and figures for stand per acre for each type it is possible to figure comparative gross values per acre by types. As with the other tables of the same kind the absolute values per acre are not as useful as a com- parison of the values. To bring out more clearly this essential feature, the relative returns which can reasonably be expected, the types are arranged in descending order. GROSS RETURNS PER ACRE OF THE FOREST TYPES IN THE UNITED STATES AND ITS POSSESSIONS Per acre Douglas fir $2400 Virgin white pine 2250 Hemlock-spruce (.\laska) 1800 Cove (Appalachian Mts.) 1800 Bottomlands 1800 Redwood 1575 Silver pine 135° Spruce, northern 1000 Northern hardwoods 1000 Slope (Appalachian Mts.) 1000 Southern pine 1000 Second growth white pine. 800 Engelmann spruce 800 Lodgepole pine 600 Northern swamp 400 Wet hardwoods 375 Western yellow pine 315 Sugar pine 315 Ridge (Appalachian Mts.) 225 Spruce-birch 200 Dry hardwoods 75 No discussion of sale values is complete without some reference to the future trend of prices. In this field of prophecy absolute accuracy is, of course, out of the question but an examination of the past history of wood prices should give a sound basis for pre- 178 TIMBER VALUATION dieting the probable trend. On account of the lack of data for other products, attention will be wholly confined to lumber prices. Fig. 2 shows graphically the course of prices from i860 to 19 18 in the United States. These were prepared in the main by Compton by computing the average prices of the important grades and species of lumber and weighting the various species. "Organization of the Lumber Industry," Wilson Compton, 1916. The figures for 1915 to 1918 were secured from the War Industries report on Prices of Lumber by R. C. Bryant. The following species are included: 1860-1865 White pine, spruce, oak and hemlock. 1865-1887 Southern pine added. 1887-1896 Douglas fir and redwood added. 1896-1910 North Carolina pine and cypress added. 1910-1912 Maple added. 1912-1914 Yellow poplar and western red cedar added. 1914-1918 Eastern white pine, eastern hemlock, spruce, southern yellow pine, plain oak, Douglas fir, hard maple, gum, chestnut, birch, yellow pop- lar, ash and hickory. The base price, 100, is the average price for the 36 months, 1901-1903. Relative prices are used rather than absolute prices to eHminate possible errors in quotations. In many cases it is difficult if not impossible to determine the exact sale value of any particular grade so that the trade journals from which the data for the curve has been obtained are Uable to make minor errors in this way. While the curve shows a general upward tendency there are many small depressions and two periods during which lumber went back to prices nearly as low as those obtained before the Civil War. The first of these, from 1875 to 1880, marked the opening up of the Lake States region. Prior to that the indus- tries of the country had depended mainly upon lumber cut in New England, New York, and Pennsylvania. But the depletion of these sources of supply was ofifset in large measure by the development of railroad transporation from the Lake States to SALE VALUES 179 the Atlantic seaboard. This made it possible to market cheaply the splendid white pine of Michigan, Wisconsin, and Minnesota 248 I8GO 1870 1880 1890 1900 1910 1920 Fig. 13. The Cost of Living and Lumber Prices 1860-1920 SO rapidly that the market was glutted. From the bottom of this depression in 1879 there was a gradual rise until 1883 as it became more and more apparent that the Lake States white pine was not inexhaustible. In fact the increasing cost of buying and logging led to the development of the southern pine region which in turn l8o TIMBER VALUATION flooded the market with lumber brought and logged so cheaply that it could compete successfully with that from the northeast and Lake States in spite of higher freight rates. Then the price went down again. Another low level was reached in 1896. The Spanish War in 1898 upset the usual course of prices somewhat but history bade fair to repeat itself as the northwest began to supplant the southeast as the principal lumber producing center. There was in fact a decided drop in lumber prices after 1907. This followed the tremendous expansion in the northwest and was largely the direct result of the attempt to market lumber too rapidly in order to meet carrying charges on mill equipment and stumpage. By 191 2 a slow recovery had been made followed by a depression which reached its lowest point in 19 14 when lumber prices were back at the 1905 level. The effect of the Great War was almost immediate. Prices commenced to advance even before the United States declared war against Germany in spite of the impossibility of shipping lumber abroad with the submarine campaign in full swing. The demand from American manufacturers busy with war orders was, however, sufficient to absorb all the lumber that was not needed for ordinary business. With the addition of the United States to the belligerents a new set of factors influenced lumber prices. It was immediately evident that the Government would need large supplies of lumber in the raw form for ships, warehouses, and cantonments and also indirectly for such manufactured articles as wagons, airplanes, gunstocks and boxes; hence, the necessity for centralized control of prices. This was effected by cooperation between the Govern- ment and the lumber industry and took the foUowing forms: 1. Standardizing and centralizing. Government purchases. 2. Price fixing. 3. Restriction in use for non-essential purposes. 4. Restrictions on imports and exports. Obviously the first thing to do where the Government was in the market for large amounts of lumber was to standardize the re- SALE VALUES l8l quirements of the different departments so that the utmost economy could be practiced in meeting their specifications. There was no reason, for example, why the War Department should have a difTerent requirement for ammunition box material from that enforced by the Navy. Furthermore, it was equally apparent that these and other Departments should be kept from bidding against each other. Great economies in money and time were effected in this way. But it was soon clear that the Govenment needs were so great that some control of prices was necessary. Thru a subcommittee of the Raw Materials Division of the Council of National Defense emergency bureaus were established in the principal lumber pro- ducing centers. Besides acting as a distributing agency in plac- ing government orders these bureaus aided materially in furnish- ing data upon which to fix reasonable prices. The aim was to set values which would ensure rapid and continuous production with- out disproportionate cost to the Government. To reach such a decision naturally entailed much research into actual costs of pro- duction and a thoro knowledge of marketing methods. The elimination of non-essential industries was accomplished in various ways. Appeals to the patriotism of both producer^ and consumers did much. Actual division of raw material was also an active force in curtailment. But by far the most effec- tive agency in securing this end was the drafting of employees from such industries while those in the so-called " essential indus- tries " were exempt from the draft. Restrictions on imports still further curtailed the supply of raw material for the manufac- tures that did not contribute directly to the winning of the War while demand for their products was restricted by refusing export licenses. But in spite of the large measure of cooperation be- tween the Government and the lumbermen who were patriotic it was necessary to markedly increase prices to keep up production to a satisfactory basis. Between 1914 and the signing of the Armistice average lumber prices rose approximately 90 per cent. The major portion of this rise took place during 1917 and 1918 when the United States was a belUgerent. Lest, however, it should be assumed that this was a disproportionate rise it should i 182 TIMBER VALUATION be remembered that most articles necessary to the prosecution of the War rose even more rapidly than lumber. Balson (Eco- nomics of the Lumber Industry, U. S. Department of Labor, 1919) found, for example, that more lumber could be bought with a dollar in 1919 than farm products as compared with 1914. Farm products advanced during the War so that a dollar would only buy 46 cents' worth while 58 cents' worth of lumber could be pur- chased for the same amount. In fact the slowness with which lumber advanced during the War was one of the reasons why there was an advance immedi- ately after the removal of war restrictions. Other factors which gave impetus to this upward tendency were subnormal supplies of logs, no surplus of lumber at the mills, short stocks of lumber in the retail yards, and inability of the railroads to handle ship- ments rapidly with depreciated rolHng stock and inefficient labor. Although the country had responded nobly to all war demands it must be remembered that all efforts had been concentrated on the production of war material. Other supplies were neglected. Repairs on buildings were postponed. Every energy was directed with feverish intensity toward the German overthrow. The reaction after the Armistice was sudden and complete. It was only slowly that the routine of peace was resumed. But lum- ber was in great demand almost immediately to meet the need for accumulated repairs and to make up for the home building which had been abandoned during the War. This demand found all departments of the lumber business short on raw material with employees loathe to turn at once from fighting Germans to felHng trees. Added to our own needs were those of our Allies. France and Belgium were in especial need of lumber for reconstruction and drew on us for hardwoods in large quantities. The price of oak and ash jumped at once, with other hardwoods follomng sympathetically. To show the exact effect of this in a few con- crete cases take oak, ash and maple in the Boston wholesale mar- ket. Below are given the prices per M at the end of 1915, 1918, and 1919 with the rise in per cent for each year after 1915: SALE VALUES 183 191S 1918 1919 Plain white oak S60 80-33 i% 160-166% Maple $40 7^ 75% 116-190% Ash S55 ilS-109% 150-172% There has not been, however, any such marked advance in the average price of lumber. The hardwoods make up only about 25 per cent of the total lumber cut. The advance in softwoods has been much less on the whole. Spruce frames, one of the most used grades of eastern lumber, increased 116 per cent. To get a true notion of how this compares with other prices it should be compared with advances of 92 per cent in food and 135 per cent in clothing (National Industrial Conference Board Report, 1920). To sum up the situation at the beginning of 1920, lumber was in great demand with stocks low, labor in the woods and saw- mills subnormal and distribution hampered by railroad deprecia- tion. What are the prospects in the future? The factors that tend to keep prices up are as follows : Low stocks at the mills and retail yards. Shortage of dwelHng houses. Accumulated repair work. Depreciated rolling stock and lowered efficiency of railways which prevent normal delivery. Demand from Europe for reconstruction material. Diminishing supply of accessible stumpage. General inflation of currency. Low productivity of labor. Over against these influences are such depressing factors as: Increasing substitution. Decrease of exports on account of unfavorable exchange rates and rehabiHtation of lumber business in Russia and Austria. Development of waterways to relieve the strain on the rail- roads. 1 84 TIMBER VALUATION Economic pressure on timberland holders to meet carrying charges by cutting even at a low profit. Increased productivity of labor. Deflation of currency. Striking a balance between these two sets of factors is difficult. It involves forecasting the probable course of prices after the greatest war in history with the world facing a timber famine due to overcutting in the past. Stumpage prices seem bound to go up. The cost of production in Europe is $io to $15 per M for softwoods and $20 to $30 for hardwoods. These seem to be what the United States will have to come to. The softwood stumpage prices have already been attained in the northeast. Lumber prices are a different problem. They need not neces- sarily go up along with stumpage prices. In fact European pre- war prices would indicate that increased efficiency of manufac- ture and distribution may keep them from going much higher than they are now. Certainly there is every prospect of a tem- porary falling off when the peak of general commodity prices is reached. Eut on the other hand the times are apparently past when softwood lumber of even medium grade can be purchased for less than $50 per M or clear hardwood for less than $100. Logging Costs for Lumber. — The difficult and complex sub- ject of logging and milling costs must necessarily be considered briefly, at least, because a knowledge of stumpage prices is a prime essential in determining timber values. Stumpage prices in turn are dependent upon the difference between sale values and costs. Needless to say the subject is so complex that a full dis- cussion of the various phases must be left to such special treatises as Bryant's " Logging." What is needed here is merely a bird's- eye view and a comparative notion of costs under different topo- graphic and forest type conditions. Since lumber is the most important single product of the forest its manufacture will be considered in detail. For other products like cordwood, tanbark, poles, etc., it will be sufficient to merely point out the ways in which their handling differs from that of lumber. LOGGING COSTS FOR LUMBER 185 Briefly, then, all lumber goes thru the following lour steps in passing from tree form to tlnished board: 1. Felling and bucking. 2. Skidding. ^ 3. Hauling or driving. 4. ]\Iilling, including seasoning. In some operations numbers two and three are combined as, for example, in the New England portable sawmill type of logging but these four steps are in general typical of the average logging operation the country over. Felling and bucking are commonly considered together because it is usual to have the same crew do both, tho here, again, usage varies in the different parts of the country. The simplest form is a two-man crew who notch, fell, buck, bump, and pile brush all as one operation and their methods will exemplify the principles. The first step in felUng a tree is notching it so that it will fall where it will do the least damage to itself and the young timber to be left standing. Since this is an operation which demands con- siderable skill and judgment it is usually done by the more experienced member of the crew. It is not, however, a task which takes much time. Ordinarily 10 to 15 per cent of the total time per M is used. The actual sawing off from the stump after the tree has been notched with an axe takes double the time. But what determines the cost per M more than any other item is the time required to saw the felled tree into logs or " bucking." This usually requires one-half to two-thirds of the time and explains why the cost of felling and bucking varies directly with the size of the timber. In other words, the larger the trees the less the cost per M. To illustrate this by examples at the two extremes, the cost of this step on the Pacific Coast in the heavy stands of redwood and Douglas fir has been 50 cents per M while in the second growth stands of New England the usual contract price was $1.50 per M before the War. Expressed in man hours the costs are one and one-half and three man hours per M respectively, or expressed in another way, two men in the Douglas fir region will fell and buck 10 M in a day as against four to five M in the north- east l86 TIMBER VALUATION Brush disposal! so as to reduce the fire hazard and prevent smothering volunteer young growth is not a universal practice but it requires in softwoods not more than 20 per cent of the total time. There is a vast deal of difference between the cost of felling hardwoods and softwoods. The latter cut very much more rapidly. Hardwoods may, in fact, require three times as long in small logs. Ashe states (Cost of Logging Large and Small Timber, Forestry Quarterly, XIV-3) that " the cost of felling oak, with which are included birch, beech, maple, and other species of heavy wood, is shown to be about 20 per cent greater than the cost of felling the lighter and softer woods such as white pine, yellow pine, poplar and basswood." This refers to relatively large timber. Applying the facts brought out here to forest types they fall into several groups. In the first are the large softwoods like: Redwood and sequoia. Sugar pine. Douglas fir. Western red cedar. With these tne cost of felling and bucking has always been less than $1 per M, i.e., the daily output for two men would exceed 8M or in man hours the cost per M ranges from one and one-half to two. The second group includes the medium sized softwoods such as are found in the : Silver pine type. Western yellow pine type. Hemlock spruce type. Yellow poplar cove. Cypress bottoms. In these stands the costs have ranged from $1 to $1.25 per M or two to three man hours per M. This would reduce the daily output for a two man crew to an average of eight M. LOGGING COSTS FOR LUMBER 187 The small softwoods, like Eastern spruce, Engelmann spruce, Lodgepole pine, Alaskan spruce, White cedar, Second growth white pine, require so much bucking to get a M feet of logs that the average cost has been $1 .50 per AI or three to four man hours per M giving an output of about five M per day. The hardwoods — north and south — make up the last group with costs ranging before the War from Si. 50 to $2.50 depending upon the size of the trees. This means that two men can only cut three to four M per day and that the cost in man hours is not less than five. The operation of gathering together the felled and sawn logs so that they may be economically transported to the sawmill is variously known as skidding or yarding. In northern New England " yarding " includes felling and bucking as well as skid- ding. " Skooting " is the term applied to this operation in the northeastern portable sawmill region but it is combined with the next step, hauling, for the reason that the stands are so heavy and the distances to the mill so short that it does not pay to bunch the logs before hauling them. Various methods of skidding are employed. The simplest is with a single horse. One end of the log is made fast to and the horse simply pulls it out to the yard or skidway where a pile is built up in such a way that the logs can be rolled onto the wagon or sled handily. Large logs require two or more horses. In the early days before the advent of steam skidders several pairs of oxen were required to haul the large logs of the northwest, but this method was quickly replaced by steam when the power skidder evolved to the point of practicable operation. Now it is used in all operations where the logs are large and the stands heavy. Naturally, however, it requires a large initial invest- ment and cannot be applied except where the stands are dense enough per acre to justify such an expenditure. l88 TIMBER VALUATION The main factor in determining the cost of skidding is the distance skidded. This in turn depends upon the stand per acre because it is naturally easier to get a reasonable sized pile where the stand is heavy than where the stand is thin and the logs have to be hauled long distances. Second in importance to the time required to skid the log is the time taken on the return trip. This may exceed the time consumed on the way to the skidway when logs are hauled off a steep hillside where the horses have to toil slowly back up again. Fastening onto the log and unfastening are items of minor importance. Since then the factors which determine the cost of skidding are primarily the time consumed going and coming the lowest costs must be where these times make up the smallest per cent of the total time. Heavy stands of large logs are the first prerequisite and fast motive power the second. Consequently the types in which the lowest cost of skidding is found are the dense stands of conifers — redwood, Douglas fir, western red cedar — in the Pacific northwest and the C3^ress of the southern bottomlands where steam skidders are used. Costs have run in such stands from 50 cents to $2 per M. With the other softwoods $2 per M has been the standard price. Even variation in the number of logs per M and different methods, bare ground, bobsleds, skoots, or big wheels, have pro- duced little deviation. Hardwoods on the other hand cost considerably more. They are heavier and more crooked. Costs have ranged from $2.50 to $3.50 per M. Summarizing skidding costs, the forest types fall into three main groups as follows: I. Costs ranging from 50 cents to $2 per M or about three man hours per M plus interest and depreciation charges on the machinery. Steam skidders used. Large logs. Soft, light woods. Redwood. Douglas fir. Western red cedar. Sugar pine. LOGGING COSTS FOR LUMBER 189 Cypress. Southern pine (to some extent). Hemlock-spruce. II. Costs ranging from $1.50 to $2.50 per M or three to four man hours and four to five horse hours per M. Various methods employed. Medium sized logs. Soft, light woods. Southern pine. Virgin white pine. Western yellow pine. Silver pine. YeUow poplar cove. Hemlock. Eastern and western spruce. Lodgepole pine. Second growth white pine. III. Costs ranging from $2.50 to $3.50 per M or four and one- half to five man hours and six horse hours per M. Various methods employed. Hard, heavy woods. Northern hardwoods. Southern hardwoods. Tropical hardwoods. The third step in the typical lumbering operation, hauling, is similar in principle to skidding. The time going and coming is what determines the cost. But naturally, since distances rang- ing from I mile to 20 are involved greater care is taken to pro- vide an easy running conveyance and a smooth hauling surface. The simplest and cheapest method of log transport is driving. Starting from the mere rolling of logs into a deep channel it has developed into a highly specialized business with elaborate sets of reservoirs, splash dams, channel improvements, bank reinforce- ments, miles of booms and various ways of rafting across still water. Comparatively small streams are now successfully driven. A standard figure in the northeast where the conditions have been very favorable for the development of this method has long been a cent a mile per M board feet. With such a low charge igo TIMBER VALUATION no other method can compete. Unfortunately, however, driving cannot be employed everywhere. It is first of all necessary that the timber to be taken out will float readily. This most hard- woods will not do and even some softwoods need special treat- ment. Then, too, many sections of the United States do not have suitable chmatic conditions. The rainfall is either inade- quate or improperly distributed. Consequently, this cheap and effective method is frequently impossible. Under such circumstances railroad logging offers the most effective substitute. In the redwoods the cost per M has usually been estimated as five cents per mile. Naturally such a cheap method is the first choice with all kinds of hardwood and where the climate and topography are unfavorable to driving. But the initial investment per mile is always heavy and is not justified unless the stands are heavy per acre or the railroad can ultimately be converted into a common carrier. As a result there are many woods operations where the use of railroads is out of the question. These fall into four main groups: 1 . Operations where sleds can be used 2. Operations where wagons must be used. 3. Operations where chutes must be used. 4. Operations where flumes are most economical. Snow is the best road material in the world and where several months of good sledding are assured that is by all odds the best method to employ. Thirty-five cents per M and mile have been attained in many cases. Like driving, sledding has evolved from simple beginnings to elaborate processes for icing and keeping clean the roadbed. There are, however, many sections of the country where the snowfall is not great enough to permit of the use of sleds. Wagons are then the only recourse. The motive power may be either oxen, mules, horses or tractors and the wagons either low wheeled or high. But whatever the appli- ances used this is a relatively expensive method. Seldom can it be done for less than $1 per M per mile. The remaining two methods, chutes and flumes, are special ones only applicable in special cases. Chutes are often the only recourse in steep, rocky country while flumes require a large supply of water. No general LOGGING COSTS FOR LUMBER 191 figures can be given for the cost of these last two methods since each case presents a separate problem. The forest types cannot be grouped definitely by methods of hauling because two or more methods are commonly used in each. The circumstances of the individual operation determine which is the most economical. However, the following summary of costs of transport from stump to mill may be useful as a general guide : I. Cost per M low — $2 per M or less before the War — three man hours and four horse hours per M — short haul to mill. Second growth white pine. Engelmann spruce. II. Steam yarding and railroad hauHng — heavy stands of large timber — long haul to mill — $5 per M in 19 14. Three to four man hours per M and large interest and depreciation charges on machinery. Douglas fir. Redwoods and sequoia. Western red cedar.' Sugar pine. Alaska coast. III. Short haul to drivable stream — $6 per M in 1914. Six man hours and not more than our horse hours per M Southern bottomlands. Alaska interior. IV. Animal skidding and hauling — long haul — 9 to 10 man hours and 10 to 20 horse hours per M. Seven to eight dollars per M in 1914. Lake States white pine. Silver pine. Southern pine. Western yellow pine. Northern spruce. Northern swamp. Lodgepole pine. 192 TIMBER VALUATION V. Hardwoods. Long haul. At least lo man hours and 20 horse hours per M. Ten to fifteen dollars per M. Northern hardwoods. Southern hardwoods. Tropical hardwoods. The cost of milling is determined directly by the number of operations carried on in the mill in question. A small portable mill which only does sawing used to charge from $2 to $3 per M depending upon the size and amount of timber to be sawn, i.e., the cost of sawing was three to four man hours per M plus fixed charges. This is the simplest case. Even the sticking of the lumber was contracted separately. In larger mills, however, the cost of milling or manufacture includes a large number of items. Even before the logs reach the saw boom charges have to be met in mills located on streams where the logs of a number of com- panies are passing. They are then hauled up the ladder into the mill and go to circular, gang, or band saws. Just beyond the saws stands a grader who marks the number of board feet and the quality on each board. Some boards go directly to the mill yard to be stacked while others are taken to the planer, dry kiln, or cut up for special purposes. Slabs go either to the engine room for fuel or are made into shingles or laths. Not every mill of even moderate size has all these supplemental processes. Hence the total sawmill charge varies with each individual case. For mills equipped with planers, kilns, and lath machines the charge is never less than $5 per M and may run up as high as $7. This means seven to eight man hours per M plus interest and depre- ciation charges on the mill equipment. These figures apply to softwoods only. Hardwoods always cost more, varying from 150 to 200 per cent of the charges for softwood. Regionally the great variation in milling costs comes with the use of permanent or portable mills. The standard mill has been one which assumed at least a 20-year cut and was, therefore, equipped with all the supplemental machinery that economic conditions permitted. Commonly it had two or three different kinds of saws, a capacity of over 20M feet per day and might even build up enough of a population in its immediate vicinity to fur- LOGGING COSTS FOR LUMBER 193 nish a market for the waste wood which would otherwise have to be burnt. Frequently, one or more wood using industries sprang up in the neighborhood and depended upon its by-products for their raw material. Such a mill is economical in its use of the logs brought to it but it must have a large body of good timber to draw upon. In the woods the utilization is usually low because only the better logs will repay transportation. Consequently it has frequently happened that only 30 per cent of the tree has been taken out for lumber. The portable mill is an attempt to meet conditions entirely opposite to those under which the large mill works most advan- tageous y. When a section has passed from the pioneer timber- mining stage into the farming era there still remain many bodies of timber which are too 'small for the large mill to handle. In- stead of hauling the logs to the mill, the mill goes to the timber. The good roads of a farming community make this possible. All the valuable timber is salvaged and yet only light, seasoned lum- ber is hauled out. The portable mill justifies itself by the saving in transportation charges alone. However, conditions do not warrant its use in many regions as yet. The farm woodlot is its field of greatest usefulness so that it is successfully employed in the following types in many instances: Northern spruce. Northern hardwoods. Second growth white pine. Southern pine (especially second growth). Southern hardwoods (cove, slope, and ridge). Likewise the scattered stands of the Rocky Mountains make it applicable in the following types: Engelmann spruce. Lodgepole pine. Western yellow pine. Fir-larch. The other types are almost universally logged to a large mill because they have extensive stands of timber which justify the development of means of log transportation. 194 TIMBER VALUATION Neither type of mill so far discussed fills the needs of a tract which is being handled on a " sustained yield " basis. The large mill demands logs and more logs. The larger the output, the less the depreciation charge per M. As a consequence this type of mill has always left in its wake denuded hillsides cut without any thought of regeneration. Future growth was sacrificed ruthlessly to present profits. The portable mill has Hkewise been an active agent of forest destruction. The desire to get enough to make a setup pay has frequently led to the cutting of immature timber and little attention has been paid to keeping the logged area in productive condition. Furthermore the portable mill is not well adapted to the manufacture of anything but low grade softwood lumber. The foundations are not stable enough to permit accurate sawing of hardwood nor is the circular saw economical with high grade softwood. And yet the circular saw with its big saw kerf has proven more satisfactory in the portable mill than the more thrifty band saw. When a tract is being handled as a permanent forest invest- ment no more than the growth should be cut so that the capacity of the mill must not determine the annual fellings. Furthermore, every tract has a variety of species demanding various methods of manufacture if they are to be put in the best form for sale. Consequently, the mill should have planers, edgers, lath machines, shingle machines, and perhaps a dry kiln. In other words, a versatile mill well within the growth capacity of the tract is needed, not a highly specialized one devoted to a high output of one kind of lumber. Cost of Logging and Manufacturing Other Products. — Rank- ing next in importance to lumber firewood [receives second con- sideration. From stump to stove it passes thru the following processes: Felling, splitting and cutting up into four or eight foot lengths. Seasoning. Hauling. Sawing up. Marketing. COST OF LOGGING 195 The standard pile of firewood is four feet high, eight feet long and four feet wide. One man may work effectively in putting up wood in this way but two are better when there is much split- ting and sawing. The amount that can be done in a lo-hour day varies with the species, the size of the timber, and the skill of the workman. Softwood is roughly twice as easy to chop as hardwood. In other words the chopper who will put up two cords of softwood per day cannot average better than a cord of hardwood. The size of the timber is also an important factor. Either large or smaU stulT goes slowly The ideal size for chop- ping is a tree about eight inches in diameter breast-high. Assum- ing then that from one to three cords may be cut per day the cost per cord of putting up firewood in four foot piles with all the pieces over six inches at the top and split, ranges from $1 to $4. Ordinarily the wood is seasoned in the place where cut before hauling. The cost of this is so small that it is usually neglected. It simply amounts to the interest on the money tied up in the firewood for four to eight months. The shorter period will remove two-thirds of the moisture but eight months is required to thoroughly air dry hardwood. The cost of hauling varies directly with the weight of a cord of seasoned wood. This ranges from over tw^o tons for hickory to one ton for soft pine. Consequently the cost per cord has varied from 50 cents to $1 per cord per mile. Firewood may be marketed either in four foot lengths or sawn to 16 inches so that it will go into a stove and then retailed. Sawing into short lengths has cost from 50 cents to $1 although prices have advanced since 191 7. It is apparent from the foregoing discussion that the main factor in determining the price of firewood is the distance which it has to be hauled. The other operations have cost uniformly before the recent advance in prices about $3 per cord for soft- wood and $5 for hardwood. Consequently the maximum dis- tance w^hich wood could be economically hauled was fixed by the price per ton of its competitor, coal. With the latter retailing at $10 per ton both hardwood and softwood could be hauled about five miles with the ordinary types of conveyances. This is based 196 TIMBER VALUATION on the assumption that hardwood has twice the fuel value of softwood and is equal in fuel value per cord to a ton of coal. To the objection that this is too favorable to wood it may be urged that wood is a more flexible fuel than coal and is therefore used more economically. Pulp wood, extract wood, and acid wood present the same problems as firewood and have the same costs. Poles, whether intended for telegraph, telephone, or mining purposes, represent one of the most economical ways of using timber because there are few steps in their manufacture. They are simply cut off at the stump and top and peeled and are ready for use. These operations seldom cost more than $3 per M so that the determining factor was the distance they had to be hauled. One dollar per M per mile has been an outside figure for the latter operation although recent advances in wages and horse hire have upset even such a conservative figure. Railway ties go through the following processes: Felling and bucking. Hewing or sawing. Hauling. The cost of these steps per tie varies with the size of the average tie. The standard for steam railway use has been a tie with an eight-inch face and eight feet long. Switch ties were even longer, usually 12 feet. Trolley railroad ties, on the other hand, are smaller, being satisfied with a five or six inch face. Hence the number of ties per M ranges all the way from 40 to 20 with an average of 30 for the standard railway tie. Hewing is the only new item and this has been done in most cases for less than $1 per M. The distance hauled has, of course, varied a great deal but the margin between the sale value, $12 to $18 per M and all costs including stumpage has seldom permitted ties to be hauled by wagons more than eight miles. The cost of handling tanbark can best be expressed in values per M of timber felled because it is seldom advisable to cut hem- lock or chestnut oak bark for the tanning material alone. The usual method is to handle it as a by-product. Hence, the wood- land owner wants to know not how much bark an area will yield PROFIT 197 but how much bark he will get from a certain amount of timber. This cannot, however, be stated with exactness, because it varies with the locality. In fact the factors which control it have not yet been worked out for all conditions. But the range is not great. From one and one-half to two M board feet are required to yield a cord of bark. The important factor m bark costs is, of course, the distance which it has to be hauled although this seldom amounts to as large a sum as the cost of peeling and drying. The latter is, however, a more or less fixed quantity in all parts of the country so that the factor which fixes the difference in value between the bark of different localities is after all the distance which it has to be hauled. Average bark costs have been as follows: Peeling and drying $2 . 00 per cord. (Four men will cut and peel five to eight cords per day.) Hauling o. 75 per cord. Loading o . 75 per cord. $3.50 per cord. Expressed in terms of board feet it took in 191 5 approximately $1.75 extra per M to take care of the bark. Posts are a relatively unimportant item as compared with the other products of the woods yet in the aggregate they total a billion board feet annually the country over. The cost of get- ting them is small per unit but large per M because of the small size of the units. Seldom do posts cost more than 20 cents to make and deliver but this amounts to approximately $20 per M. Profit. — Trade secrecy has been the main obstacle in reaching a general agreement as to what is a reasonable profit in a lumber- ing operation. Lumbermen have been loath to speak frankly of anything but their losses but even this has failed to allay the suspicion — often wholly unfounded — on the part of the general public that enormous and unearned fortunes were being made out of the business. Much of this misunderstanding has arisen from a failure to realize that the returns must be high in lumbering because the risks are great. Weather conditions cannot be con- 198 TIMBER VALUATION trolled in the woods as they can under a factory roof. Labor is necessarily nomadic under the present system because the men cannot take their famihes into the woods with them. The pro- fessional lumberjack is notoriously a drifter. It is a common saying that a large operation needs three full sized crews, one working, one going out and another coming in. In other words, the difficulty of breaking in new men, common to most industries, is magnified and accentuated in lumbering. Then, too, capital- ists are commonly not so famiUar with the technique of the busi- ness as with that of the merchandising and manufacturing indus- tries so that they are less willing to finance logging operations. Added to their unfamiliarity with the methods of the business is the long period frequently required to reaHze on the investment. Where an expensive mill must first be erected and logging rail- roads built the capital cannot be retired for 10, 20 or more years. The combination of these factors makes the rate of return neces- sarily higher than it is in industries with a quicker turn over, better understood, more easily standardized and less hazardous. While a gross margin of 10 per cent is ample in the wholesale grocery business, or the manufacture of shoes, 25 per cent is none too much in many lumbering operations. What the rate should be for any particular operation depends upon several factors. The highest return is naturally demanded in the more hazardous operations like the opening up of a new region. An example of such an enterprise is the beginning which has just been made in the exploitation of Brazilian timber. Methods and markets must be developed and the operation has all the hazards of a pioneer enterprise and is accordingly entitled to a high return to offset the extra costs and unforseeable losses. On the other hand an operation in a region where the methods are standardized does not require so great a return. An example of this latter kind is a New England portable sawmill enterprise. Intermediate between these two extremes are the medium sized job in a region where logging is one of the principal industries and large enterprises which open up new blocks of timber in sections where markets are assured and the best methods have already been worked out. PROFIT 199 Next to hazard the most important factor in determining the proper rate of return is the frequency of turnover. A chestnut acidwood operation in which wood may be converted into ready money as soon as cut and hauled does not, naturally, require a large return on the single job because the capital invested may be utilized again and again during the year. For example, if two months of cutting give a return of 3 per cent on the investment and five such operations are carried on during the year it is obvious that the annual return will be 15 per cent. On the other hand an enterprise which must have its logs come on a six months' drive and season its lumber another six months, must in justice receive higher return per unit of finished product whether that be cords or M feet board measure. Size is a factor likewise in determining a fair profit. A large amount of capital invested for a long period in an enterprise which is safeguarded by its own bulk does not need such a high return as a small enterprise which must fight its way at every step to keep its larger competitors from crowding it out. Hence the small jobs involving relatively few men and teams should pay a higher return per M than the large sawmill fed by its own logging railroad and controlling many thousands of acres of stumpage. While generalizations cannot be safely made without allowance or exceptional cases it may be said that the following rules will apply in most cases: 1. Operations in regions where the methods are thoroughly standardized, as for example the New England portable sawmill region, are content with net profits of $1 to $2 per M. 2. Operations of medium size in less well settled regions demand average returns of 25 per cent per M on the capital invested. 3. Large operations involving investment for 20 years or more are content with a return of 10 per cent on the total investment. 4. Pioneer enterprises, whatever their size, should have a return of 25 per cent per M on the investment. 200 TIMBER VALUATION Exactly what constitutes the investment per M is sometimes difficult to determine. Small operations present no special difficulty because the capital is small, consisting of relatively few- tools, a team or two, wagons or sleds, and the amount necessary to carry the payroll, interest charges, taxes, and insurance. The sum of these items divided by the number of M feet to be logged gives the investment per M. Furthermore, the contract prices being paid in the region for the different steps from the stump to the stick furnish the best kind of a check since they are the com- bined judgment of the community as to what must be invested per M to get the desired results. Much more difficult to deter- mine accurately is the proper charge in large and complicated enterprises. However, the following Ust of items which may enter into this total may be useful in checking over to make sure that nothing has been overlooked : 1. Permanent improvements or durable equipment Hke a railway or sawmill to be used over a long period. The charge per M is determined by dividing the total for these items by the whole amount of timber to be manufactured with them. 2. Operating costs such as wages, food supplies, destructible tools, interest on operating capital, taxes, overhead costs, etc. These are usually totaled annually and di- vided by the cut for that period. 3. Maintenance charges such as depreciation costs, amortiza- tion payments, insurance, etc. These may be most con- veniently calculated on an annual basis. Freight Charges. — Absolutely and relatively freight charges are the most important single item in wood product costs. For example in lumber retail prices the various steps are divided as follows on the average: Percent Logging 25 Milling '20 Freight 27 Wholesaling 3 Retailing 25 100 FREIGHT CHARGES 20I For the northwest the ratio of freight costs is even greater. For example in the case of Oregon or Washington Douglas fir 35 to 40 per cent of the retail cost goes for freight costs. Even in the southeast the charge to the large markets represents 15 to 25 per cent of the total cost. In Butler's report on " The Distribution of Softwood Lumber in the Middle West," he gives the following freight charges per M and per 100 lb. using pre-war rates: PerM Per 100 lb. Portland to Chicago Westwood, California to Chicago $13-75 12.50 9.88 6.12 3.20 Cents 55 60 CcEur d'Alene, Idaho to Chicago 52 245 Bogalusa, Louisiana to Chicago Bemidji, Minnesota to Chicago 16 Briefly summed up, it may be said to cost less than $5 to get northeastern lumber onto the general markets, between $5 and $10 for freight from the southeast, and $10 and $15 per M from the Rocky Mountain and Pacific coast regions. The Interstate Commerce Commision Report for 191 8 gives the annual freight bill paid by the lumber and forest products producers of the United States as $215,000,000. Of the total railway tonnage they constitute 1 1 per cent, being exceeded only by mineral products and general manufactures. As compared with lumber soft coal yields 34 per cent less revenue per ton mile, hard coal 13 per cent less, and grain 9 per cent less. Dressed meat and cotton pay 26 per cent and 60 per cent more per ton mile, respectively. Freight rates are of various kinds. The following need defini- tion before the general subject can be discussed further: (i) Commodity rate — a freight charge levied against all articles of the same kind. For example the rate for lumber for a 60-mile haul on the Boston & Maine Railway is $2.85 per M while logs take a different commodity rate and cost $3.95 per M even for softwoods. With forest products three commodity classes are usually made: *' (i) rough products such as logs, bolts, or 202 TIMBER VALUATION flitches; (2) lumber or other partially finished articles, not yet worked into a final manufactured product; (3) finished articles like boxes, barrels, doors or blinds; and (4) ' woods of value ' such as walnut and mahogany." (2) Local rates are rates which apply between stations on the same railway system, usually within a state. (3) Thru or joint rates, on the other hand, apply to shipments made for long distances, commonly over two or more railways. (4) Combination rates are rates which are the sum of two or more local rates with or without reduction. (5) Basing rates are the sum of a thru rate 10 a terminus like New York and a local rate to the point of destination. For example, the all rail rate from Chicago to Bridgeport, Conn., would be the thru rate from Chicago to New York plus the local rate between New York and Bridgeport. (6) Manufacture-in-transit rates permit the conversion of logs into rough or dressed lumber en route. For example, a lumber concern may ship its logs to the mill where they are sawn and planed and then re-ship the lumber, all on the same rates. Such rates are really combination commodity rates with special privi- leges in regard to the use of the freight cars employed. In any consideration of the subject of forest product freight charges it must be constantly borne in mind that these industries have seldom received any special consideration on the part of the railroads. The freight agent has tried to make his charges " as high as the traffic would stand." Consequently higher rates are applied to the more valuable classes and grades whenever they can be easily distinguished. This is usually taken care of by the commodity classification already discussed. For example, cabi- net woods pay more than ordinary softwood lumber. There is, however, one apparent exception to this general rule. Dressed lumber commonly pays no higher - rate than rough lumber, although there may be a difference of $50 per M in the sale value of the two. But the reason for this is not far to seek. It is simply a matter of convenience. The cost of inspection on the part of the railroad would be excessive, it is feared, were the freight rates varied with the grades. As a result seasoned and dressed FREIGHT CHARGES 203 lumber pays much higher returns than unseasoned rough lum- ber because it is lighter in weight, less bulky for the same quan- tity and has a wider margin for profit. To show how this works out take the case of the sawmills in Oregon and Washington. With a $15 per M freight charge to meet they can only afford to ship east their best grades. There is no margin for profit on common and boxboard lumber. And the same holds true in greater or less degree for all the centers of forest production. Freight rates encourage skimming off the cream only. Foreign freight rates per ton mile are higher as a rule than ours for all commodities. For example, our average rate per ton mile in 19 1 4 was approximately 8 to 10 cents while in the United Kingdom the rate was nearly three times this in 1913. Den- mark's rates were even higher. Russia and Japan were the only countries that had average rates at all approaching ours. Forest product rates furnished no exception to this general rule. As against an average rate of 3 to 10 cents per ton mile for transcon- tinental lumber shipments the lowest rate that Dr. Schenck cites in his discussion of freight rates is 4 to 10 cents per ton mile and this was a special rate from Austria to Germany and France intended to offset the import duties levied by the latter against Austrian lumber. But there is one marked difference between European and American practice. The former makes a differ- ence between grades of lumber. For example, the rate for dis- tances over 220 miles is double for lumber what it is for pulp- wood, firewood, mine props and railway ties. From the stand- point of forest production this is a very valuable arrangement since it places no premium on the marketing of the higher grades but gives the poorer grades a fair chance to reach the general market. What such a change would mean to the American for- ests can be quickly shown by two examples. In the northern hard wood type the principal silvicultural problem is the removal of the mature hardwoods in order to give the more profitable spruce, fir and pine a better chance. At the present time only the very best parts of the hardwood trees are reaching the saw- mills. By lower rates on the poorer grades of hardwood lumber and especially on cordwood the woods in, this type could in many 204 TIMBER VALUATION instances be put in good silvicultural condition. A still more striking illustration is furnished by the freight rates on north- western lumber. Since no difference is made in the rates on clear and common lumber, the profits are much greater on the former and only the good butt logs are taken out of the woods. The second grade logs rot in the woods and the slabs are burnt at con- desirable expense. Stumpage Prices. — Using the formula that stumpage prices should equal the difference between the average sale value of the various grades obtainable from a stand of timber and the sum of all the costs of logging, manufacture and transportation including a fair profit, the determination of stumpage prices would appear simply a matter of mathematical calculation. There is, however, still another factor that needs to be considered. This is the lag ^ of stumpage prices behind fluctuations in lumber prices. The main reason for this is that standing timber is not at present an easily negotiable commodity. Forest conservation has not as yet reached the point where timberland is considered as first class security. Fires, insects, fungi, uncertain labor conditions and inclement weather must be circumvented before stumpage can be converted into ready cash. Consequently, when lumber advances there is no immediate rise in stumpage prices because a standing tree has to go thru many processes before it yields boards. Furthermore, the cost of these processes may have increased to the point where any advance in the price of the finished prod- uct is absorbed long before the stumpa-ge price is reached. For example, a 40 per cent increase in lumber prices has no prospect of effecting a similar rise in stumpage figures when there is a 100 per cent increase in the cost of food and wages. This condition V actually prevailed during the Great War. How much difference there should be between the rate of change in lumber prices and the rate of increase or decrease in stumpage cannot, of course, be definitely stated. It depends upon various factors which differ with the locality and season. In general, however, it may be taken as a safe rule that the stumpage price determined by formula needs discount by an amount sufficient to allow for probable changes in costs. The STUMPAGE PRICES 205 future trend of costs must be considered because no one is going to make changes in stumpage prices for passing fluctuations in costs. For example, a temporary increase in the price of corn need not aflfect disadvantageously the price of pine stumpage even tho corn is fed to both men and mules. There is a good chance that by the time the lumber is ready for market the price of corn may have changed again, and for the better. Yet, on the other hand, the logger and sawmill man must be on the lookout for possible increases in costs so that they do not pay so much for their logs that their margin is entirely wiped out by an advance in food or labor. Of the factors that determine stumpage prices the costs of hauling the logs and the lumber are the most important. The other factors only vary within narrow limits. As a consequence the stumpage price of any piece of timber is dependent primarily upon its distance from a sawmill and the length of freight haul from the mill to a market. To illustrate take two such unlike softwoods as second growth white pine and redwood. Of course, the latter yields very much better grades than second growth white pine because the pine has seldom been allowed to grow more than 100 years while five times that would be nearer the average age of the redwood which is now being cut. In fact second growth pine yields no wide clear lumber. The percentages of the grades obtained from each would be about as follows: Wide clear lumber Shop Common Boxboards Second growth pine Per cent s 10 8s Nevertheless the average sale value for both at the mill has been about $30 per M for the log run, with redwood averaging not more than 20 per cent higher than the pine. In the same way the log- ging costs did not vary greatly. Before the war $5 per M would have covered all costs from stump to mill pond in either case. 2o6 TIMBER VALUATION Milling has been slightly higher in the case of redwood because some of it was planed but $io was a safe figure for the total cost of the finished lumber in California or New England. Conse- quently there would remain a margin of $20 — sale value of $30 less costs of $10 — to cover freight charges and stumpage price. In the case of redwood even pre-war charges took fully three- quarters of this margin of $20 while one-quarter was ample to cover all freight costs in the case of second growth pine. Hence, the stumpage price of redwood has never been over $5 per M while that of second growth white pine has already gone over $10 per M in the case of accessible tracts. The general rule that sale values, logging costs and manu- facturing costs are relatively constant and that freight charges fix stumpage holds for hardwoods as well as softwoods with a few rare exceptions. These deviations from the rule are the rarer cabinet woods like walnut, mahogany, etc., in which the sale value is far above that of ordinary lumber. But even with these the stumpage price of different stands of the same species is fixed by the distance from mill to market. For example, wal- nut near a furniture or gun factory in Ohio is worth two or three times what the same or better quality of tree is valued at in the mountains in Kentucky. Since then the general rule holds that stumpage prices depend upon distance from market it follows that they must be approxi- mately the same within a given region tributary to any one mar- ket. Markets may be either local, special or general. The first are the best in all cases because they reduce freight charges to a minimum but unfortunately no local market is unlimited. Most are, in fact, of small capacity in power to absorb such a common product as lumber. The same appHes to special markets. They can only take particular grades and those in limited quantities. Hence it follows that the general markets are the great price . fixers in the forest product industries. Indirectly they also deter- mine sale values in the local and special markets because no local price can exceed for any length of time the general market level plus the freight charges from the general market to the locality in question. STUMPAGE PRICES 207 The great general lumber markets of the United States are simply distributing points into which the mill men ship their lumber and from which the wood users purchase. This means that they are located at the termini of water routes and the sup- ply points for manufacturing and agricultural centers. Every city of any size answers one or both of these qualifications in some measure but the following are preeminent as lumber markets: Boston — the commercial center of New England. New York — a great supply point for all sorts of native lumber and also the largest importer of tropical hardwoods. Baltimore — by reason of its advantageous tidewater loca- tion an important distributing point for pine from the south Atlantic states. Norfolk — a good harbor makes this city the natural export center for Virginia, West Virginia and North Carolina. Buffalo and North Tonawanda — ■ at the eastern end of the Great Lakes and hence the natural eastern market place for lumber from the Great Lakes region and the upper Mississippi valley. Chicago — the distributing point for the north central states. Minnesota Transfer — the transfer point for western lumber coming east, especially that from the northwest. Cincinnati — an important distributing center for southern hardwoods. St. Louis — important in the southern pine and hardwood trade because of its location on the Mississippi River. New Orleans — used both as a market for southern pine and cypress from Texas, Arkansas and Louisiana and an exporting port. San Francisco — the export center for redwood and sugar pine. Portland, Oregon — a red cedar shingle center and shipping point for northwestern lumber in general. Seattle — the principal port of export to the Far East of Douglas fir lumber and red cedar shingles. 208 TIMBER VALUATION Spokane — the distributing center for the Inland Empire and the marketing point for silver pine, western larch and Douglas fir from northern Idaho and eastern Washington. Since then the timber with the shortest haul to market has the highest value it follows that the highest stumpage prices will be found in the eastern part of the United States where the bulk of the population lives and the major portion of the manufacturing is done. White pine, walnut and white ash have already reached stumpage prices of $15 per M board feet in New England, New York, Pennsylvania and the Lake States. From this maximum prices taper off to the vanishing point for the less desirable species in inaccessible localities. In the southeast yellow poplar, yellow pine, cypress, walnut, ash and oak have all risen in value to nearly $10 per M on accessible properties. The less valuable hardwoods, like black oak and tupelo gum for example, are, how- ever, still selling for less than $5 per M. In the Rocky Mountain region and on the Pacific coast stumpage prices are in general well below $5 per M even for the largest and most accessible tim- ber. In fact the only places where anything like this amount has been realized have been isolated communities in the semi-arid districts where the supply of standing timber was limited and long wagon hauls made importation out of the question. Stumpage prices are governed by distance from market almost irrespective of use value. In other words, no matter how fine timber may be it must be near to market to bring a good price standing. An extreme example of this is the case of the tropical hardwoods. Bringing fancy prices at the wholesale markets in the form of boards or even hewed logs the trees themselves are worth less than $1 per M. The cost of logging with native labor in a tropical climate and the long sea voyage absorb all the mar- gin which with more accessible species goes to the owner of stumpage. In order to determine what prices will be in the future it is necessary to know how they have acted in the past. Fig. 14 brings together figures on past stumpage prices. Furthermore Sauerbeck's index figures are given in order to give a basis for comparing fluctuations in stumpage prices with the changes in STUMPAGE PRICES 209 general commodity prices. The Prussian and Saxon figures are perhaps most interesting because they cover the longest period. For instance, during the period 1830 to 1875 Saxon wood values increased at the rate of 45 per cent compound interest annually. In Prussia, which has poorer markets, the rate of increase during the same period was 25 per cent. For the 70-year period from 1830 to 1900 the rate of annual increase in Saxony was a trifle less than 3 per cent while Prussia maintained a rate of 2| per cent for this longer period too. Hence Doctor Fernow's statement that German stumpage prices have been increasing at the rate of 2 per cent per annum, compound interest, for the last hundred years is amply conservative. Nor is the force of this vitiated by corresponding increases in the prices of other commodities. On the contrary general commodity prices decreased quite steadily from 1820 to 1895 with a few minor exceptions. Their rise during the Great War is, of course, due to special causes outside the usual laws of supply and demand. Our own experience substantiates European experience. White pine stumpage, for example, increased at the rate of 6^ per cent, compound interest, in Michigan from 1865 to 1905 and at the annual rate of 7I per cent in Minnesota from 1880 to 1905. These increases are all the more remarkable in the face of a marked decrease in general commodity prices, from 1865-1895. Another point still more clearly brought out in the chart is that the rate of increase has not been uniform. There have been distinct ups and downs. For example, the effect of the Franco- Prussian War is clearly shown in both the Saxon and Prussian curve — a sharp rise followed by a drop and that in turn giving place to a slower recovery. In the same way 1907 marked the highwater mark for stumpage prices in the United States imtil the rise brought about by the Great War. In fact the period from 1908 to 19 14 was one of distinct stagnation if not depression in American lumber circles. But in spite of occasional drops the general increase is so appar- ent that it may safely be laid down as a general law that the trend of stumpage prices has been upward the world over for the last hundred years in spite of the opening up of many new timber 2IO TIMBER VALUATION regions. For example, the export of lumber from America to Europe in any considerable quantity has all occurred during this period and the center of production has moved from the north- eastern states to the southeastern pine region and is now about to jump across the Rocky Mountains to the Pacific northwest. Substitution has also been a factor which might have affected seriously the demand for wood and been reflected in lower stump- age prices. The consumption of cement, for example, has in- creased from II milUon barrels in 1892 to 90 million barrels in 1913 with a corresponding decrease in the cost per barrel. Coal and steel have hkewise taken the place of wood in many ways. Thelen estimated in 191 7 that " approximately 70 per cent of the present cut of lumber goes into forms of use whose demands appear to be decreasing." The plain fact is that substitution will undoubtedly go much farther. The crest of lumber pro- duction is undoubtedly behind us. There has been a steady decrease in the amount of lumber sawn since 1909. But the important point is not that we are using less wood but that we have been using it lavishly. Our consumption per capita was estimated in 1900 to be approximately six times that of Germany, seven times that of France and 16 times that of Great Britain. We have not only used wood " from the cradle to the coffin " but wallowed in it en route. This does not, however, mean that wood will in time be replaced either in whole or to any considerable extent. It has too many valuable qualities to be entirely superseded. It is light, strong, easily worked, durable, a non-conductor of heat and electricity and best of all relatively cheap even assuming that prices will reach throughout the world the level attained in the European countries which do not grow enough for their own use. As com- pared with a piece of iron of the same weight a stick of yellow pine is six times stronger and very much cheaper. So it is safe to assume that wood will always be in great demand for a very large number of uses. But its value in construction and manufacture is not the main reason for predicting advancing values for wood. The decreasing supply is the controlUng factor. This fact is one difficult for STUMPAGE PRICES 211 4 CENTS PER CUBIC FOOT ^^' 2 CENTS PER CUBIC FOOT $1.00 fER M FT. B.M, 1820 1840 1900 1860 1880 Fig. 14 Comparison of the cost of living and stumpage prices. 1920 212 TIMBER VALUATION most of us to realize. We may have seen one kind of lumber vanish from the market because it had been overcut but there have usually been competitors to take its place. For example, eastern white pine is very difficult to secure at the present time in large clear boards but western silver pine and sugar pine are essentially the same in quality and obtainable in large sizes. Cannot this substitution continue indefinitely? Prior to the Civil War the New England and Middle states were the principal producers of lumber. Then the ascendancy passed to the I.ake States without necessitating any great economic readjustment because the species were the same. It was simply a question of paying a greater freight charge. But by 1900 the southeast was cutting more than the Lake States and by 1909 nearly four times as much. This meant not only a longer haul for northern wood users but entirely different species. Hence, serious read- justments in machinery, methods, costs and selling prices were made necessary. Now the southern pine region is being forced into second place by diminishing supplies of standing timber and the Pacific northwest is forging ahead. By 1925, 3000 sawmills will have to shut down because there is no more southern yellow pine for them to cut. Had the War come 10 years later the lumber for cantonments, ships and airplanes would have had to be shipped almost entirely from the Pacific northwest. What this would have meant in delay and extra freight charges is almost incalculable. Furthermore, the supplies in California, Oregon, Washington and Alaska are not unhmited. The large merchantable timber is confined to a rather narrow belt along the coast where the influence of the moist winds from the Pacific is felt. Behind — to the east of — the Cascades and Sierras there is no good timber except on the scattered islands of mountains which reach up far enough out of the arid plain below to get some rainfall. The Rocky Mountain region has been sarcastically characterized as "fit only for prairie dogs, rattlesnakes and invalids." Certainly it has no timber to spare for export. In other words, the states of New Mexico, Colorado, Wyoming, Montana, Idaho, Utah, Arizona and Nevada need all the timber they have for their own domestic development. This STUMPAGE PRICES 213 also applies to southern California, and eastern Oregon and Washington. So it sums up to this: the supplies of virgin timber are virtually exhausted except for a limited area on the Pacific Coast making up less than 5 per cent of the total area of the United States. Nor does the fact that some of the biggest trees and the heaviest stands in the world are located here offset the fact that the end of the original supply of timber is in sight. What relief can be expected from other parts of the world? England has long since given up producing her own wood supplies but depends upon importing them. Why cannot we do likewise? This seems all the more plausible because the ordinary description of any new country, and of many that have a long history, makes much of " the inexhaustible forest resources." It will come then as something of a shock to most people to know that only 25 per cent of the earth's surface is capable of producing trees of saw- timber size. The rest is either too cold or too dry. Further- more the area of good softwood timber is still further restricted. Practically speaking, there is no good softwood out of the northern hemisphere. Siberia, Prussia, Scandinavia, Canada, and the United States are the only countries that even had large bodies of pine, spruce or fir. Tropical forests are primarily hardwood forests. The dipterocarps will only be used for the local softwood demand and they will have to make slow headway against the northern softwoods which now preempt the tropical markets. Consequently no help may be expected from Europe, Asia, Australia, Africa or South America. All these continents have, in fact, been drawing upon our suppHes in the past and would like to continue to do so. In other words, we know that the original world supply of wood will not last indefinitely. We must either use substitutes or grow more. Entire replacement is neither desirable nor necessary so that the cost of gro^ving it will soon determine throughout the world the value of the standing timber. What the cost of production will be is dependent upon a num- ber of factors. Most important of all is the length of time re- quired to produce material of any given size. Minimum and average figures are the only ones worth considering because they 214 TIMBER VALUATION will determine in the main. It is conceivable that under untoward climatic conditions cordwood may require for its growth as long as high class sawtimber, but the places that can produce cordwood in a reasonable period are going to set the price. Accordingly the following figures will be used: Years Cordwood requires 25 Boxboards require 50 Dimension lumber requires 75 Lumber for " cutting up" requires 100 Wide, clear lumber requires 150 To illustrate how these figures were derived take white pine as an illustration of a softwood and red oak for the hardwoods. For the periods given above their diameters breast-high are as follows: Red oak 25 years 50 years 75 years 100 years 150 years Inches 5 IS 20 Next to the question of time required the problem of determin- ing the proper interest rate is the most vital. It is also the most complex and difficult to reach common ground on. Where most of the misunderstanding comes is in the varying conceptions of what constitutes " net income." The ordinary business man takes this as meaning what is left for him after he has paid his debts and frequently he forgets such untangible liabilities as interest on his investment, depreciation, overhead expenses, etc. Consequently he assumes, and rightly, that he must make from 10 to 20 per cent per annum on his investment. But the busi- ness of growing wood differs radically from the ordinary business of small capital and quick turnover. The main item of expense is the interest on the capital tied up in the land, the expense of planting or regenerating naturally, and the annual cost of ad- ministration and protection. While none of these is large in itself the interest on them for a period of 50 to 100 years STUMPAGE PRICES 21$ amounts to a large sum. In other words forestry is one of the few businesses in which no proper idea of the real cost of doing business may be obtained unless due allowance is made for interest charges. In merchandising and manufacturing on the other hand the main items of expense are the cash outlays for material and labor and interest charges play a relatively unim- portant role. Interest is, in fact, a comparatively modern in- vention. Certainly the business man of loo years ago worried little about interest, overhead charges, and depreciation. For- estry, a very new form of enterprise, is ultra modern in this respect. Consequently it must know what the net return will be after deducting all interest and charges for depreciation and other forms of overhead expense. The only kinds of business which are at all comparable are long time, conservative invest- ments sought by those who wish a steady, sure income over a long period without the risk and bother of shifting their funds. The rents from an office building are an excellent illustration. Built to last for 50 to 100 years without radical alteration the main items of expense are the interest on the original cost of construction, the constant repairs to prevent depreciation, yearly taxes, annual insurance, premiums and administrative costs. Such a building gives a net return, when all these items of cost have been deducted, of not more than 3 or 4 per cent for long periods. In other words the capital is as safe and en- titled to the same rate of return as funds invested in a savings bank. Government bonds are, perhaps, an even better illustra- tion of what net income actually is. The recent Liberty Loans were floated at 3 per cent or more and at periods could be bought at enough below par to make the interest rate as high as 4 or 5 per cent. But no one expects them to remain at par. The Civil War loans did not and there is every reason to predict that both the Victory Loan and the three Liberty Loans Avill soon be seUing for enough above par to bring their net return down to 2 or 3 per cent. And this will be a true net return barring per- haps the cost of the safe deposit box in which they are kept. They are not subject to taxes, they do not depreciate, or need repairs or insurance. 2l6 TIMBER VALUATION This then is the sort of income which is meant when net returns from forest land are referred to. All costs are included and interest figured on them from the time the trees are an inch high to their maturity. Furthermore, due allowance is made for pos- sible loss from fire, insects, and fungi, and such items as are covered by insurance and depreciation charges, in the case of an office building. It seems reasonable, therefore, to use a low interest rate and 3 per cent has been chosen for the calculations given below. The cost of the land has been set at $10 per acre. Only such soils should be devoted to tree crops as are unfit for tillage. This means steep, rocky or sandy land not good enough to plow. Hence a low figure is justifiable. Even in England with its ready markets and dense population the Forestry Sub-committee of the Reconstruction Committee estimated in 1918 that land could be bought for reforestation purposes for an average of $15 per acre. For securing regeneration, whether natural or artificial, the cost is estimated at $10 per acre. This is somewhat low for planting on steep sites hable to wash, but high for natural regeneration. As an average it compares very favorably with the English estimate of $17 per acre " for planting, fencing, drain- ing, beating up, etc.," where no natural regeneration could be expected. This same report gives figures for the annual cost of protection and administration which are useful as a guide. For $1.50 per acre per annum it is expected that the protective and administra- tive ofiicers may be paid and the necessary roads and buildings constructed and maintained. Hence, a figure of $1 per acre for protection, administration and taxes seems conservative for American conditions. The total cost of growing timber per acre summing up all the items enumerated above is as follows: stujmpage prices 217 Years 25 SO 75 100 150 Land at Sio per acre $20 20 36 $43 43 112 $91 272 $192 192 607 $842 Regeneration at Sio per acre 842 Protection, administration and taxes .... 2766 Total $76 $198 $454 $991 $4450 To determine the cost per M a uniform production of 500 board feet per acre per annum has been assumed. Hence, the following values hold at various age periods. PerM 25 years $6 50 years 8 75 years 12 100 years 20 150 years 60 That these figures are not far out of the way is shown by the fact that some of them have already been attained in parts of the United States. Three dollars a cord or $6 per M is not an un- usual stumpage price for accessible hardwood cordwood. Box- board material is selUng for over $8 per M in all the more accessible parts of the second growth white pine region of the northeast. In fact it is only the production costs of the larger material which have not already been equalled or surpassed. So far the supply of large virgin timber has been great enough to supply the demand for high grade lumber at much less than it will cost to grow it. Yet, abroad, many stands are being managed on rota- tion of 150 years or more so that it seems only a matter of time before the United States, too, will be doing the same thing. Or, stated in a little different form, our stumpage prices for cordwood and the lower grades of lumber have already gone about as high as they will in the older, better settled parts of the country. High grade softwood and hardwood on the other hand, are now selling for much below the cost of production and will advance rapidly as soon as the accessible virgin supplies are depleted. This statement refers simply to stumpage prices, not to lumber prices. They are governed by entirely different laws. Even a decided 2i8 TIMBER VALUATION advance in the price of standing timber may produce only a slight increase in lumber prices because the cost of the latter is made up of many more elements than that of standing timber. Logging costs, milling, and. freight charges are the important factors and far outweigh stumpage prices in determining the market price of lumber. CHAPTER XXII LAND VALUATION While the value of the land itself has been practically negligible in the past in most sales of timbered lands, it is daily assuming a more important role. The days when a timberland owner could afford to throw the land away after he had cut off the merchant- able material are over. The land itself, even tho it is rough and stony, can be used for the production of other timber crops or selected portions devoted to tillage, residence purposes, etc. Then, too, few cuttings absolutely denude the ground. There is usually some young growth which will become merchantable within a short time. For these reasons every timberland owner is more or less interested in knowing how much his land is worth irrespective of the merchantable timber on it. The first step is to determine the area. Usually this is done in connection with the estimate of the timber and may vary in accuracy from the roughest kind of a guess to an accurate transit survey. Usually, however, a method midway between is chosen. Transit work is much too expensive except where the land values exceed $50 per acre which is seldom the case with woodland. The compass is the instrument most widely used in woods work because it is rapid and accurate enough if due care is taken in its use. Unlike the transit the adjustments are simple, it is quickly set up, stands hard service, and does not require much brushing or swamping. The commonest source of error is local attraction of the needle but this can be guarded against by back sighting. All in all it is the ideal instrument for the woodsman. For the rapid filling in of details a hand compass is sufficient, in deep soiled woods a larger instrument mounted on a Jacob's staff gives more accurate results, while on roads and rocky ground a tripod is handy. The only kind of woods work for which it is not adapted is rough mountainous regions where a few high points command the territory. There some form of planetable cuts 219 220 LAND VALUATION down the expense because a network of triangulation can be built up which will locate the main features better than many miles of compass traverse. With this primary control as a basis the details can be readily filled in with the compass. To illustrate the methods used in the determination of the area of timbered tracts take the case of a loo acre lot as the first example. The simplest way to handle this would be to run a base line with a staff compass and chain along one side or on a convenient road or trail crossing it. Then the estimate strips could be run at regular intervals from this base line and at right angles to the principal streams. By recording the ridge tops and stream crossings on the estimate strips a very complete map may be made at very Httle expense in addition to the cost of the esti- mate itself. A larger tract of say 20,000 acres would be handled in exactly the same way except that greater pains should be taken to make sure that the framework, or primary control, was well fastened together. For this a compass would not be accurate enough. The best instrument would be a planetable with tele- scope aHdade so that either triangulation or traverses and stadia measurement could be employed. The relative accuracy and cost of the various methods of area determination may be summed up as follows: Method Transit and tape Transit and stadia Planetable and stadia Traverse board and chain. Staff compass and chain. . . Staff compass and pacing. . Traverse board and pacing Hand compass and pacing . Accuracy Acres per man hour Per cent 100 6 98 9 98 12 95 16 95 16 92 32 90 64 90 80 Cost per acre Cents 16 12 8 6 6 3 2 While this Hst aims at completeness in enumerating the methods employed in woodland area determination this is not the place to describe each in detail. Surveying manuals like that of Breed and Hosmer should be consulted for such information. It is sufficient' for the immediate purpose to give some notion of their LAND VALUATION 221 comparative accuracy and cost. A tract containing 640 acres was taken in making these calculations and a unit cost of $1 per man hour assumed. Hence the cost per acre would be too low for smaller tracts. These data will, of course, be most useful in determining which method will give sufficiently accurate results at the minimum cost under any given set of conditions. While the determination of the area is the step of first import- ance in valuing woodland it is far less perplexing than the deci- sion as to the uses to which the land can most profitably be devoted. The possibiUty of tillage is constantly recurring even with the roughest and stoniest tracts because tillage gives the highest and quickest returns and it is the use which has the sanction of longest usage. All land can be tilled if enough labor is put on it and the idea that there are soils which will give higher net returns when used in other ways makes headway very slowly. This explains why the lumberman tries first of all to dispose of |/ his cutover land to the farmer. Usually, however, there are only limited areas really fit for tillage in any large tract of timber. This is more particularly the case with the areas now covered with virgin timber, restricted as they are to the mountain regions and overflow lands. Few people realize how much good labor has L been thrown away clearing up land which is really unfit for tillage. The abandoned farms of New England and the " sand farms " of the Lake States cutover areas are cases in point. This does not mean, of course, that there are not level stretches reasonably free from stones even in the mountains which cannot be profitably tilled. It means simply that no area can be kept in good cultiva- tion unless it has more good soil than rocks and is not so steep that it will wash. Given these two fundamentals there are three other criteria by which it must be judged : 1. Is it subject to destructive overflow? 2. Has it good frost drainage? 3. Are markets accessible? As has already been pointed out the overflow lands of the Mis- sissippi are much more profitable under tillage than those of the southeastern Atlantic States because the floods in the latter region come in the middle of the growing season. It is rather the time 222 LAND VALUATION of flood than the actual height of the water that must be guarded against. Frost drainage is an exceedingly important point. Many mountain meadows could be made into wonderful garden spots were it not for the cold air which pours into them. But even granted that all other factors are favorable no land will be permanently remunerative under tillage unless it has ready access to markets. How near those markets must be and how smooth the intervening roads depends upon the products to be marketed. Cattle, for example, can be driven for distances and over roads that would be prohibitive for apples. All in all the experience in turning cutover land into farms has been so disappointing that the burden of proof should always be upon the would-be farmer to show that his use is the highest. In this connection it must be remembered that the returns from tillage are not so great as they are commonly painted by the real estate agent. Over a period of 25 years or more there are very few farms that give a net return of over 5 per cent. In fact the long time records of the Department of Agriculture show that 3 per cent is the average net income from farm land. The following figures are taken from such long time averages and give the net returns for some of the principal farm crops: Per acre per annum Com $7 Cotton 10 Wheat 6 Potatoes 7 Oats 4 Hay 4 As further substantiating this Bulletin 645, 1914, shows that the average gross farm value of the 13 principal crops of the United States was $16 an acre. This figure also holds good for Germany during the period from 1909 to 1913, while the net income was not quite $6 per acre.* If, however, there is a comparatively small percentage of the land in forested areas fit for tillage the other agricultural use of pasturage needs to be considered even more fully. Here again there is an inherited prejudice to combat. Our ancestors de- pended in such large measure upon grazing for their meat, milk and hides that one naturally thinks of it as a remunerative way LAND VALUATION 223 to use land which is too rough for tillage. But the fundamental difficulty is that unless land is tilled at least occasionally it ceases to afford good grazing. It is only level land which has been comparatively recently turned over that will keep a cow per acre during the summer months. There must be no bare spots, stony patches, weed growth, or brush. But such land yields better under tillage so that the pasture lands are com- monly those which are too rough, stony or inaccessible to plow economically. Such fields require from 5 to 40 acres per cow per season depending upon the cHmatic conditions. Hence at $2 per cow per month the gross return will be from $2 per acre per annum to 25 cents. As a matter of fact the Government is getting less than 10 cents per acre, gross, for its western range lands. Perhaps it is not fair to bring these arid lands into the argument because forest land has invariably a moister cHmate. But it must be remembered that where trees grow well they crowd out grass so that even in the moist parts of the United States no pasture takes care of itself but becomes less and less remunerative every year unless time and money are spent keep- ing it up. In other words pasturing is an extensive use of land which seldom gives a net return of more than $1 per acre per annum. On every tract there are small areas which have special value for store, residence or water power purposes. Ideally, of course, these should be developed but it often happens that their fullest expansion calls for divided ownership or authority in a way that is sometimes difficult to manage. For example, a mountain lake may offer an ideal location for a sumimer hotel and be also valuable for hydroelectric water storage and log driving. Unless there is cordial cooperation among the interests concerned clashes of authority may arise. An unusually wise manager would be required to secure the necessary technical knowledge and yet coordinate the various activities. The various points which need consideration with reference to the use of land for store, residence, hotel or hydroelectric purposes are itemized in " The Outline for the Examination of a Timber * Forest Valuation. F. Roth. 1916. 224 LAND VALUATION Tract " given in the appendix. Those wishing to make such an examination or judge the quality of a report upon a tract are advised to consult it. The main points witn reference to mineral deposits that can be secured in a preUminary examination are also given in this outline. Of course, no forester should presume to make a final examination of coal, iron or other mineral deposits without call- ing in expert advice. But on the other hand the work of the min- ing expert can be greatly facilitated if he can have a good map of the tract and certain general information in regard to it before starting his field work. These data the forester's examination can secure at practically no additional expense. It is in general axiomatic that the best use to which timberland can be devoted is the production of crops of lumber or cord wood. While whatever is, is not always right, still the mere fact that a tract is forested indicates that there has been no urgent demand for it for agriculture, mining, etc. Furthermore, a change in kind of product must involve a revolution in the habits of the people who have been developing the tract and totally different kinds of technical skill in its administration. In other words, the presumption is always strong that a piece of woodland has been found by long experimentation to yield its highest returns in wood products or the by-product advantages derived from wooded areas. This is the task of the forester — to make over wild unregulated woods into forests giving their highest possible returns in lumber, cordwood, watershed protection and aesthetic values. But naturally forestry is more profitable under some condi- tions than others so that the next step is to examine briefly what factors determine the income from forests and how profitable the various types of woodland in the United States and its outlying possessions may be reasonably expected to become when devoted to growing forests. As has already been explained in the chapter on Timber Valuation the main item in the cost of producing tim- ber is not the labor or materials involved but the interest on the capital invested in the land and first cost of regeneration. It becomes necessary, therefore, to assume at the start an LAND VALUATION 22$ interest rate. The reasons for selecting 3 per cent have already been fully discussed, so that they need not be amplified here. Second in importance is the cost of the land itself and three values have been chosen, $5, $10 and $15 per acre, for this dis- cussion. The cost of regeneration is assumed to be $10 per acre and the annual charges for administration and protection, $1 per acre. Rotations of 50, 100 and 150 years will be considered and final yields of 250, 500 and 1000 board feet per acre per annum. A uniform stumpage price of $10 per M has been used in the cal- culations because it seems reasonable to assume that this will be an average figure for all species by the end of a rotation of 50 years. Stumpage prices in the United States range from $1 to $20 per M with the average considerably under $10 but we are fast approaching European conditions where even low grade soft- wood is bringing $10 per M and high grade hardwood four or five times that. In this connection it is interesting to note that Kellogg and Zeigler came to the conclusion in 191 1 after a study of American growth and market conditions that $10 per M was a fair estimate of the average cost of timber production. No allowance was made for either returns from thinnings or accel- erated growth as a result of such thinning in order to have an ample margin with which to offset possible losses from fire, insects and fungi. That this margin is more than sufficient will appear clearly when it is considered that annual charges of 50 cents per acre are allowed for protection and administration. While this is not large as measured by European standards it is much greater than has yet been expended over any considerable area in the United States. The National Forests, for example, are admin- istered and protected for less than five cents per acre, but the Forest Service appropriation is so inadequate that only the merest beginning has been made. Three yields have been used, 250, 500 and 1000 board feet per annum. The first gives negative values even under the most favorable conditions so that the following typ>es may be ruled out at once as unremunerative from the standpoint of timber produc- tion: 226 LAND VALUATION Northern swamp type. Southeastern ridge type. Chapparal type. Pinon-juniper type. Western yellow pine on semi-arid sites. While these types are too slow growing to make it worth while to raise timber on them they usually have secondary uses which justify their being kept wooded. An average yield of 500 board feet per annum includes a larger number of types. While this may seldom be found under virgin conditions in the following types it is obtainable under manage- ment: Northern spruce. Northern hardwoods. Cove. Slope. Southern pine. Western yellow pine on moist sites. Lodgepole pine. Engelmann spruce. Sugar pine. These lands will yield good returns with rotations of less than 100 years. In other words, they can be profitably employed for the production of ties, pulpwood and boxboards but they will not grow large sized sawtimber. In fact it is only the types of timberland which will yield at the rate of 1000 board feet per acre per annum on which large sized sawtimber may be profitably grown. Fortunately these are scattered rather evenly thruout the United States. In the north- east there is the white pine type. The southeast has the overflow bottomlands. Only the Rocky Mountain region has too severe a climate to permit such rapid growth. In the Pacific northwest there are the silver pine, cedar flat, Douglas fir, and redwood types. The length of rotation is an exceedingly important item be- LAND VALUATION 227 cause it not only sets the period of interest accumulation but determines the final yield. Generally speaking it takes about 50 years under favorable conditions to grow boxboards, pulp- wood and railway ties, 100 years to produce ordinary sawtimber, and 150 to 200 years are required for extra wide clear finishing lumber. Roth gives the following rotations for the principal European species: Pine and spruce 80 to 100 years in public forests. Pine and spruce 60 to 80 years in private forests. Balsam icxj years Beech 100 to 1 20 " Oak 150 to 200 " It is obvious, therefore, that types which cannot produce rail- way ties at least in loo years are hopelessly handicapped. Con- sequently the slower growing types such as the northern swamps, southern ridges, western yellow pine on semi-arid sites, chapparal and pinon-juniper types cannot justify themselves as wood pro- ducers no matter how long the rotation. Conversely, the types with rapid annual growth are not only the most productive for short rotations but are also the only ones that will pay dividends from timber production alone if left for over 100 years. Land values in forestry must obviously be low. Interest must run for long periods and high priced land would soon accumulate amounts of interest which even the most rapid growth could not offset. Furthermore it is fundamental that forests should be restricted to the low priced, stony, rough lands unfit for tillage. Therefore, the values used, $5, $10 and $15, err on the side of con- servatism rather than being too low. In this connection it is interesting to note that $15 per acre is the average value at which the British Reforestation Committee estimate — 19 18 — they can secure land in the British Isles. The purchases by the Federal Government under the Weeks Law have never exceeded $5 an acre for the land itself. The land value and the compound interest which it accumulates are not determining factors in deciding where forestry may be profitably practised. Any low priced land which has favorable climatic and soil conditions for rapid growth will give good returns if forested. 228 LAND VALUATION The cost of regeneration is like the value of the land, an im- portant but not a determining factor. It must be considered not so much on account of the first cost as by reason of the accumu- lated interest in a long rotation. Naturally it varies within wide limits. Where artificial regeneration is necessary the cost per acre may easily exceed $15, but there are many, many instances in which natural regeneration may be relied upon for a satisfac- tory stand at a cost much less than would be required if the young trees were sown or planted. Ten dollars an acre, before the Great War, was an average figure for the cost of planting and it has been used in these calculations since it represents very fairly a mean between the sites where natural seeding will give good results and those less favorable sites which can only be regen- erated artificially. It is certainly fair to say that $10 an acre will secure a satisfactory reproduction in all stands where the climatic conditions are at all favorable to forest growth. Taking all the factors into consideration, both costs and receipts, it is evident that what determines the profit from forest investments is the yield. In other words, types in which the yield is below 500 board feet per acre cannot be expected to be kept forested unless the tree growth is valuable for other purposes than wood production. Or expressed differently, our sawtimber will in the future be produced in the following types: White pine. Southern bottomlands Silver pine. Redwood. Douglas fir. Cedar flats. For the production of ties, pulpwood and boxboards the following types in addition to those listed above are suitable under favor- able conditions: Northern hardwood. Northern spruce. Southern pine. Southern Appalachian coves. LAND VALUATION 229 Southern Appalachian slopes. Western yellow pine on moist sites. Lodgepole pine. Engelmann spruce. Sugar pine. It will be noticed that these lists do not make any reference to the raising of large sized hardwoods. It is true that wide, clear boards of oak, ash, cherry, etc., cannot be grown profitably with a stumpage price of Sio per M. What has happened in Europe and will unquestionably happen here is that the stumpage prices of high grade hardwood will go above $10. For 200 year oak $50 per M has been paid in Germany. CHAPTER XXni TITLES There are certain legal difficulties in securing sound titles to woodland tracts which make the subject of special interest to all woodland owners, present and prospective. Briefly stated these are due to two factors. In the first place woodlands in the United States have not been of great value in the past so that their owners have neglected to have them properly marked and described. In the second place, and of even more importance, the definition of acts of possession is vague so that there is no general agreement as to what an owner must have done to prove conclusively that he owns a tract. A tract of land may be marked in various ways. The com- monest method is by fences, either of rails, stones or wire. But large tracts of woodland are seldom fenced on account of the expense of fencing as compared with the advantages of preventing grazing. It is usually cheaper in a woodland grazing country to fence the relatively small areas of tilled and cleared land and let the stock roam at will. Should an owner desire to prevent graz- ing trespass in a community of this kind the entire burden of such an innovation would be upon him. His neighbors would give him neither legal protection nor sympathy. Such primitive communities think of the woods first of all as a common pasturing ground and cannot be expected to have developed a sense of pri- vate property rights in timberland. In fact the use of woodland for forest production is much more recent historically than the pasturage use and runs counter therefore to many inherited preju- dices dating back to the time when the woodlands were used in common for grazing and what little timber and firewood a primi- tive community needs. Even the development of private rights to the timber does not break down the feeHng of common owner- ship in pasturage. Consequently, it is rare that woodlands are 230 TITLES 231 marked except by monuments at the lot corners and blazed lines in between the corners even aside from the expense of fencing. Unfortunately, too, these monuments are often of the flimsiest character and the blazes carelessly done and only renewed at rare intervals. As a result of the low regard for private interests in woodland the old descriptions are crude and hazy in the extreme. A grant of thousands of acres may be tied to " a white oak post situated on the ridge between " two creeks. When the post rots the tract is suspended in air. This has actually happened in many cases. For example, the Government's title to the famous Olmsted tract in North Carolina hung upon the location of a stake all traces of which had disappeared in 40 years. The testimony of local inhabitants as to where they had heard that it had been was the best evidence that could be found to relocate the starting point. Courses, too, may be as vague. Even when stated in degrees, and not vaguely as " westerly, northerly," etc., there is often grave reason for questioning the accuracy of the instrument used or the skill of the surveyor. Open sight staff compasses are the most accurate instruments usually employed in such work so .hat the declination and local attraction must always be con- :idered in determining the present beating from an old reading. •Vhat still further complicates the retracing of old descriptions is that the distances are frequently either vague or inaccurate, i.e., t ey may be given as approximately a fraction of a mile, measured 01 the surface without allowance for slope, or so carelessly done tl '.t large errors have been made. As a consequence the areas g en for tracts of rough woodland are seldom within 10 per cent, a /ays the saving phrase " more or less," is added in stating the icrers^e. In fairness to the old surveyors it should, however, be . aid ihat the areas usually overrun. In other words, their esti- nat ai.d they are frequently little less, have the virtue of con- erva. mi. Not ling that has so far been said should be construed as advis- ing u idue accuracy in woodland surveying. The values per acre do not justify city survey methods. All that is needed is reason- able deli iteness in locating tie points, and reasonable accuracy 232 TITLES in measuring angles and distances. To make this more concrete every survey should be tied to a United States Geological Survey or United States Coast and Geodetic Survey bench mark, a General Land Office section corner, or a railroad, stream, or road crossing. Practically speaking these are the only points which are located with sufficient definiteness. As for the measurement of angles the compass is and will remain the most convenient instrument for woods work. It simply needs to be used with a recognition of its limitations. Distances may be measured by tape, stadia, chain or pacing, but they should always be reduced to the horizontal and the method employed stated. The map resulting from such field work should show all the principal streams, lakes, ponds, roads, trails and property lines. Prefer- ably it should also show the topography by contours. It is a great help, for example, to know what the slope is like near an important corner for which one is searching. The cost of such mapping varies, naturally, with the methods employed. The following data will be helpful in estimating such costs: Method No. in crew Cost of field work. Average daily wage including board Cost per day Miles in 8 hours Cost per mile 1. Transit and tape 2. Transit and stadia 3. Compass and chain 4. Compass and pacing .... 7 5 4 2 Per Day $4 4l 3l 4 $28 22 14 8 2 3 6 8 $14 7l I The office work — drafting and area computation — would not be essentially different for the various methods and ought not to exceed one cent per acre. Expressed on an acreage basis the cost of such boundary sur- veys vary from one cent to one dollar per acre. The Federal Forest Service has been making transit and tape surveys of the lands purchased under the provisions of the Weeks Law for 23 cents per acre in 1918 including the office work of map prepara- tion, area computation by latitudes and departures, and con- siderable legal investigation necessary to the determination of the location of the tracts to be surveyed. TITLES 233 As already stated the question of determining the rightful claimant to a piece of woodland is much more difficult than in the case of farmland. A man who owns a farm either lives on it, rents it or manages it thru an agent. He must fence it, cultivate it and keep the buildings in repair. It is a matter of common knowledge who the real owner is. None of these acts of possession are necessary in the case of woodland. Even paying the taxes and cutting the timber have been held to be no sure indication of ownership. Nor should they be because many lots have been cut illegally and taxes have been paid in many cases merely to acquire color of title. For example, there have been a number of notorious cases of woodland theft in northern New England in which the title of the illegal claimant was based on a quit claim deed supported by tax receipts. The quit claim deeds were secured at a nominal figure from persons who had never seen the land, much less owned it. In order to cover up all traces of wrong doing and weaken the case of the rightful claimants the county records were often wilfully destroyed. The point of all this is, of course, that acts of possession have nowhere near the same force with reference to woodland as with other forms of real estate. It is, therefore, all the more necessary for the woodland owner to make sure that every proper act of possession is carefully put on record. This would mean filing a careful description and map in the County Clerk's Office, renewing the monuments and blazes, keeping up taxes, and curbing all forms of trespass. The mere fact that there is uncertainty as to what constitutes an " act of possession " with reference to woodland makes a title search all the more necessary. Both the owner and prospective purchaser need to know whether there are rival claimants, and this only a thoro search of the local legal records will give. The Department of Agriculture in its investigations of the titles offered for purchase under the provisions of the Weeks Law has set a standard for such work. They try to secure for each deed or mortgage the following information : 1. Kind of conveyance, date, date and place recorded and volume and page. 2. Name and address of vendor. 234 TITLES 3. Name and address of vendee. 4. Consideration. 5. Description. 6. Reservations and limitations. 7. Habendum. 8. Covenants. 9. Dower, curtesy and homestead rights 10. Signature. 11. Witnesses. 1 2 . Acknowledgment. The marital status of the grantor should be ascertained where the state laws make it of material weight. For example, in most states no married man may give a valid deed without being joined therein by his wife. Deeds are, of course, filed in the County Recorder's Office at the county seat. The records of the probate court are also kept in the county court house, usually in conjunction with the deeds. These records differ somewhat depending upon whether the owner of land made his own will or died intestate. In the former case the following points should be covered in the title search: 1. Execution of the will. 2. Names of witnesses. 3. Exact description of property devised. 4. Name of each devisee. 5. Date and location of probate. 6. Notice to creditors and other interested parties. 7. Proof of service. 8. Final disposition of property. 9. Discharge of administrator. Where no will was made and the probate court appointed an administrator the essential points to be noted are: 1. Appointment and qualifications of administrator. 2. Names of surviving relatives. 3. Notice to creditors. 4. Date and proof of service. TITLES 235 5. Application for order of sale with date. 6. Confirmation of sale with date. 7. Discharge of administrator. Partition of estates by guardians or trustees present certain special points. These are Hsted below: 1. Location (venue). 2. Names of parties. 3. Property described in petition. 4. Notice and proof of service. 5. Order of reference and report. 6. Order of disposition. 7. Final decree. Condemnation proceedings form part of the regular court records but the county recorder will be able to give anyone inter- ested access to the proper papers. The following points should be looked up: 1. Location of proceedings (venue). 2. Name of parties. 3. Date of declaration or complaint. 4. Cause of action. 5. Date of service on defendant and kind of service. 6. Date of answer and allegations therein. 7. Material orders of court and final decree, with dates. 8. Final disposition of case, with date. Data in regard to forced sales is kept by different officials in different parts of the country. In New England where the town is the unit of government the town clerk keeps the records of tax sales. In the other thirteen original states the county sheriff handles such executions while the United States Land Commis- sioner is the custodian of tax sale data in the land grant states. The final report, or abstract of title, should consist of a history of the title including a complete list of all owners or claimants for the period covered together with the opinion of the examining attorney as to its vaUdity. It would naturally be accompanied 236 TITLES by copies of all the papers examined in working up the case and maps which show not only the present boundaries of the tract but also the lots and grants of which it is composed. Anyone who has followed the discussion of titles so far must have been impressed with the great amount of local knowledge required. For this reason it is better to employ local attorneys and surveyors where they can be trusted to do the work with sufficient accuracy. Unfortunately, however, they are too often poorly trained so that a more skilled man must be employed to superintend their efforts. But local knowledge of the families, grants, lot lines and topography must be secured at whatever cost. The Federal Government has adopted the practice of secur- ing trained men by a civil service examination and then sending them directly out into the field to acquire local color. By all odds the most difficult titles to investigate are those of lands lying in the thirteen original states. Not only are these states older so that there have been a greater number of property transfers but, worst of all, the land subdivisions are poorly marked. Where the section a mile square is the unit and the land is divided into townships the process of description and identification is very much simplified. Compare, for example, the process of finding the SWjSec i5,Ti4NRi6W, Montana Principal Meridian, -with a tract 160 acres in extent and forming a part of a grant whose initial point established 100 years ago is a stake and stones on a ridge between two obscure creeks. For- tunately, even some of the original thirteen states adopted a lot system. This helps immensely even tho there may be no uniformity between states or parts of the same state as to the size of the lots and the direction of their boundary lines. But where the state land departments adopted a policy of selling any sized grant to any purchaser and put entirely upon him the bur- den of finding out whether there was any such unclaimed land, inextricable confusion arose. As has already been pointed out the land grants in certain parts of North Carolina are two or three deep. A man may have purchased a patent to 10,000 acres but be unable to find more than 500 after all the prior patents are taken out. In general it may be said that land identi- TITLES 237 fication, land description and title abstracting is easily five times as expensive in the thirteen original states as compared with work of the same quality in the states which are divided up into townships. Naturally the cost per acre varies ^vithin wide limits but it may be of interest to know that the title investigations on 1,000,000 acres in Maine, New Hampshire, Virginia, North Caro- lina, South Carolina, Georgia and Pennsylvania cost the Depart- ment of Agriculture 17 cents per acre in 1918. CHAPTER XXIV OUTLINE FOR A REPORT ON A TRACT OF WOODLAND Summary and recommendations. Total amount and value of: Timber. Land. Other products (minerals, waterpower, residence sites, etc.). Grand total value. Total value per acre. Best future use of tract. Estimated annual returns. Total annual returns. Total annual returns per acre. Title complications. Object of examination. Valuation of tract. Formulation of logging plans. Preparation of a working plan for the future development of the property. Location, area and general description. Town (postofhce if different), county, state, watershed. Nearest railway and road. Area in acres (illustrate by map) . Form — scattered lots or contiguous tracts (illustrate by map) . Subdivisions — legal and natural (illustrate by map) . Climate. Total annual precipitation and mean annual temperature of nearest U. S. Weather Bureau station. Estimated annual precipitation and mean annual tempera- ture for tract. Frost drainage of tract. 238 FOR A REPORT ON A TRACT OF WOODLAND 239 Topography (illustrate by a map) . Principal watersheds. Principal mountains or hills. Geological history of region. Geological map if possible. Distribution of soil types. Soil map if possible. Settlement (illustrate by map). Nearest towns or villages. Population per square mile of general region and particular being examined. Timber. Amount — total stand by species and subdivisions of tract (table). Quality and market value by species and products (table) Damage from fire, insects and fungi. Cost of logging and manufacture for market. Lumber — felling and bucking, brush disposal, skidding, hauling, milling, seasoning, seUing and profit. Other products — cost of steps in manufacture. Logging plan (illustrate by map) . Stumpage values by species and subdivisions. Table. Growth — best species; reproductive capacity; estimated yield per acre per annum in cubic feet and dollars, proba- bility of damage from fire, insects, fungi, trespass, etc. Land. Amount by quality classes (table) : Tillage land. Grazing land. Forest land. Areas suitable for other purposes. Hydroelectric purposes: Location of reservoirs, dams, power houses, etc. Estimated cost of development. Estimated horse power to be developed and its value. 240 FOR A REPORT ON A TRACT OF WOODLAND Residences and stores: Number and location. Annual rentals. Recreation : Number and location of hotels. Estimated cost and returns. Fishing and hunting possibilities. Minerals: Kinds, quality, and approximate location. Development work on this and adjoining properties. Value by quality classes (table). Estimated returns per acre per annum from use for: Agriculture (tillage and grazing). Forest production. Hydroelectric purposes. Stores or residences. Recreation — hotels, fishing and hunting. Mining Titles. Legal history of tract. Kind of titles. Doubtful lots and their legal defects. Local authorities and witnesses : Attorneys. Surveyors. Guides. List of maps. — Maps can best be made on the same size paper as the rest of the report even if this necessitates making more maps or reducing the scale for special large area maps and using an enlarged scale for small area maps. Several maps of workable size are better than one large map which attempts to show all the essential features. What can be advantageously combined in one map differs from tract to tract but the tendency is always to try to economize and put too much on one map. Area, form and subdivision map. FOR A REPORT ON A TRACT OF WOODLAND 241 Topographic map — preferably with contours, streams and ridges. Geological map — geological formations. Soil map — soil types. Settlement map — principal settlements, railroads, roads and trails. Timber type map. Timber stand map. Logging plan map — location of roads, drivable streams, camps, mill sites, etc. Land type map. Hydroelectric map — development plan showing reservoir and power-plant sites — detail maps of important features. Residence and store location map. Recreation map • — hotel sites, fishing and hunting grounds, trails, roads, etc. Mineral map — mineralized areas, development locations, trails, roads and railroads. Photographs should he taken to illustrate the following features: Topography. Geological structure. Settlement. Timber types, quality, damage, and growth. Logging developments — roads, camps, driving dams, mill sites, local logging methods and equipment. Land types — local agricultural methods and equipment. Hydroelectric development possibilities: Proposed reservoir and power sites. Residence and store locations and local types. Recreation possibilities: Hotel sites kinds of game and fish. Local mining developments. Diagrams illustrating the following points may often he employed to advantage: Cross sections of topographic features. 242 FOR A REPORT ON A TRACT OF WOODLAND Geological structure. Relative timber growth by species and types. Relative value by timber species and types. Relative value of land types. Relative incomes and capital investment from various types of development. INDEX Alaska, climate, 138 forest distribution, 138 coast forests, 139 interior, 141 timber values, 142 land values, 145 titles, 147 Alder, 43 Arborvitae (white cedar), 48, 50, 176, 187 Ash, white, 21, 23, 27, 61, 63, 65, 169, 171, 176 Ash, red, 30 Aspen, 41, loi, 102 Balsam, eastern, i, 18, 21, 27 Balsam, western, 134. See also Fir Basswood, 18, 21, 23, 27, 176 Beech, 18, 21, 23, 27, 34, 176 Birch, black, cherry, 18, 21, 27, 34, 43 Birch, gray, 30, 31, 34, 43 Birch, paper, i, 18, 21, 27 Birch, white, 139, 141 Birch, yellow, 18, 21, 23, 27 Bottomlands, southern, distribution, 61 subtypes, 63 damage, 63 growth, 63 timber valuation, 64 land values, 69 titles, 70 Braniff, E. A., 171 Bryant, R. C, 178, 184 Butler, O. M., 201 Butternut, 34, 42 Canal Zone, V Cedar, incense, 114, 118, 119, 120 Cedar, eastern red, 75, 76. 176 Cedar, western red, 104, 106, 109, 130, 131, 132, 133, 136, 139, 141, 143, 176, 178, 186, 188 Cedar, West Indian, 150, 158, 170 Cedar, white (see arborvitae) Cedar, yellow, 139, 143 Chapparal type, 84 Charcoal, 43 Cherry, black, 79, 176 Cherry, pin, 19 Chestnut, 21, 27, 73, 176 Cooperage, 44, 174 Cordwood, 26, 38, 50, 82, 85, 170, 173, 194 Corkwood, 15 Cottonwood, 61, 63, 64, 65, 67, 68, 139, 140 Cucumber tree, 73 Cypress, eastern, 66, 176 Cypress, Lawson, 130, 133, 136 Ebony, 151, 158, 176 Ehn, 23, 34, 45 Estimating, methods and costs, 4, 19, 36, 64, 152, 163-166 Extract wood, 173, 196 Fernow, B. E., 209 Fir, alpine, 89, 95, 100, loi Fir, amabihs, 131 Fir, Douglas, distribution, 129 associates, 130 growth, 131 timber valuation, 131 land values, 136 titles, 137 Fir, grand, 131 Fir, white, 114, 115, 118, 119, 120, 125, 128 Fisher, R. T., 124 Frothingham, E. H., 25, 40 Graves, H. S., 22 Gum, red, 66, 176 Gum,tupelo, 67, 176 243 244 INDEX Hardwoods, northern, distribution, i6 subtypes, i8 damage, 19 growth, 19 estimating cost, 19 uses, 21, 26 logging, 25 milling, 25 sale values, 27 stumpage prices, 27 land values, 27 titles, 28 Hardwoods, southern, distribution, 71 types and subtypes, 73 damage, 74 growth, 75 timber valuation, 76 land values, 80 titles, 8r Hawaii, V Hawley and Hawes, 6, 22 Hemlock, black, 140 Hemlock, eastern, 18, 21, 27, 34, 40, 177 Hemlock, western, 104, 106, no, 124, 125, 131, 132, 133, 136, 143, 144 Hickory, 176 Shagbark, 34, 42 Hopkins, A. D., 75 Hubert, E. E., 106 Juniper, 81, 83, 89 Kellogg, R. S., 141, 225 Land valuation, area determination, 219 agricultural use, 221 grazing use, 222 misc. uses, 223 forestry use, 224 Larch, eastern (tamarack), 48 Larch, western, 134 Larch, western, 89, 95, 100, 131, 134, 136, 166, 176 Larsen, L. T., 171 Laths, 169, 173 Lignum vitae, 61, 151 Locust, black, 75, 79 Logwood, 151 Lumber, prices, VI, 177 grades, 169-172 logging costs, 184 Lumber, milling costs, 192 markets, 207 cost of growing, 213 Mahogany, 61, 79, 150, 154, 158, 170, 175, 176 Mangrove, 149, 152, 156, 159 Maple, 176 hard, 18, 21, 23, 27 soft, 21, 27, 50 Munger, T. T., 89, 91 Murphy, L. S., 149 Oak, 44 black, 31, 75, 176 chestnut, 74 live, 61, 65, 69 red, 18, 21, 27, 34, 176 tanbark, 125 white, 18, 21, 34, 176 Padouk, 154 Philippines, forest distribution, 152 dipterocarp types, 153 molave type, 155 mangrove type, 156 pine type, 156 beach t3^e, 156 mossy type, 157 timber values, 157 land values, 160 land titles, 162 Pine, bristle cone, 99 Pine, Cuban, 54, 57 Pine, eastern white, distribution, 18, 29 subtj^es, 30 damage, 32 growth, 34 estimating cost, 36 uses, 21 grades, 38 logging, 38 milling, 39 stumpage prices, 37 land values, 46 titles, 47 Pine, JeS^rey, 114 Pine, jack, 30, 31 Pine, timber, 99 Pine, lodgepole, distribution, 95 growth, 95 INDEX 245 Pine, lodgepole, timber values, 97 land values, 98 titles, 98 Pine, pitch, 30, 31, 54 Pine, pond, 54 Pine, red, 30, 34, 36 Pine, scrub, 54, 55, 76 Pine, short leaf, 54, 74, 78 Pine, silver, distribution, 104 associates, 104 growth, 106 damage, 106 timber values, 106 land values, no titles. III Pine, slash, 55, 56, 57 Pine, southern type, distribution, 52 subtypes, 53 damage, 54 growth, 55 estimating costs, 56 stumpage prices, 57 uses, 57 grades, 57 logging, 38 land values, 59 titles, 60 Pine, sugar, distribution, 112 associates, 114 growth, IIS damage, 115 timber values, 116 land values, 120 titles, 121 Pine, western yellow, distribution, 87 damage, 89 growth, 90 timber valuation, 91 land values, 93 titles, 94 Pine, white bark, 95 Pinon and juniper type, distribution, 81 growth, 82 timber values, 82 land values, 82 titles, 83 Poplar, yellow, 79, 176 Plummer, F. G., 85 Poles, so, 109, 170, 173, 196 Porto Rico, climate, 148 forest distribution, 149 Posts, so, 197 Pulpwood, 10, 170, 173, 196 Redwood, distribution, 122 associates, 124 growth, I2S timber values, 125 land values, 126 titles, 127 Reports, outline for, 238 Roth, F., 223 Rubber, 159 Schenck, C. A., 203 Sequoia, 128 Shingles, 109, 169, 173 Spruce, black, 139, 140, 141 Spruce, Colorado blue, 99 Spruce, Engelmann, distribution, 99 associated species, 99 growth, 100 timber values, 100 land values, 102 titles, 103 Spruce, northern, distribution, i, 18 associated species, i damage, 2 growth, 4 estimating 4 stumpage prices, 6, 12 uses, 10, 21 grades of lumber, 10 logging, 8 milling, 10 land values, 13 titles, 13 Spruce, Sitka, 124, 125, 130, 131, 133, 136, 139, 141, 143, 144, 189 Spruce, white, 139, 140, 141, 187 Swamp tjT^e, distribution, 48 subtypes, 48 damage, 49 growth, 49 estimating cost, 49 stumpage prices, 50 uses, 50 land values, 51 246 INDEX Swamp type, titles, 51 Tamarack, Alaskan, 139 Tamarack, eastern, 48, 50 Tanbark, 41, 170, 196 Teak, 155 Ties, 45, 50, 97, 170, 173, 196 Timber valuation, estimating, 163 quality of timber, 166 sale values, 168 logging costs for timber, 184 cost of logging and manufacturing other products, 194 profit, 197 Timber Valuation, freight charges, 2cx> stumpage prices, 204 Titles, marking forest land, 230 boundary surveys, 231 investigations of title, 233 Turpentine, 56, 91 Walnut, black, 42, 77, 171, 176 Weir, J. R., 106 Whitford, H. N., 159 Willow, 43 Wood alcohol, 173 Zeigler, E. A., 225 H 1 88 1 , . \,^ 0^ •^ °,^ •''-° ^0 ^^ -'^ -.V^ c, »r * HECKMAN BINDERY INC. AUG 88 N. MANCHESTER, ^a*' INDIANA 46962