FOREST SERVICE. 353 



Comparison of receipts from the several sources for fiscal years 1911 and 1910. 



Refunds of excess deposits (as, for example, deposits made by 

 buyers of timber in advance of cutting) have not been deducted from 

 the receipts given above. The refunds of timber receipts in 1911 

 amounted to $48,170.43 and of all receipts to S57, 912.73. A deduc- 

 tion of the refunds would leave the total of receipts for 1911 

 $1,968,993.42, as against $2,041,181.22 for 1910. These figures show 

 a dechne in total receipts of $72,187.80. The decline in receipts 

 from timber, after deducting refunds, was $45,249.97, and from 

 grazing $42,004.45, while from special uses there was a gain over the 

 previous year of $15,066.62. 



The reasons for the decreased receipts from timber and grazing 

 are explained in detail under the heads of "Forest management" and 

 "Range management." The salient facts are: (1) That in both timber 

 sales and grazing use fluctuations of the receipts take place in response 

 to business conditions affecting the lumber and live-stock industries; 



(2) that the National Forest range is now utilized, in most regions, 

 substantially up to its capacity and no considerable increase in 

 receipts from grazing is to be anticipated while the charge for tl e 

 grazing privilege remains on the present basis; and (3) that only a 

 very small part of the merchantable timber on the National 

 Forests has as yet come into demand, and increase in the income 

 from the sales of timber depends primarily on the rate at which 

 the upbuilding of the West develops better markets and transpor- 

 tation facilities. 



The lumber industry has never made full recovery from the depres- 

 sion which follo%ved the panic of 1907. The improvement manifest 

 in the period covered by the fiscal year 1910, and reflected in increased 

 receipts from National Forest timber sales in that year, was checked 

 early in the fiscal year 1911; and to the unfavorable effects of a 

 general business policy of retrenchment and economy was added tl e 

 depressing influence of overproduction of lumber in the Northwest. 

 Nevertheless, receipts from timber sales in 1911 were within 3 per 

 cent of what they were in 1910, while contracts of sale for timber to 

 be cut in the near future disposed of 45 per cent more timber than 

 was sold in 1910. Sales under existing contracts practicaUy assure 

 a substantial gain in receipts for 1912. 



The fact that for a year in which receipts from the Forests decUncd 

 about 3 per cent, the gross expenchtures for administration, pro- 

 tection, and improvement showed an increase over the previous 

 year, raises t]>." question whether this accords with good business 

 policy, and also the question whether the net cost of the Forests to 

 the Government year by year ought not to be gro^ang less. 



Tlie cost of the National Forest w^ork may be analyzed into: 

 (I J Expenditures necessary to provide for present use; (2) expendi- 

 tures in connection with claims and tlie listing of land for settlement; 



(3) expenditures to protect the standing timber, young growth, and 



23165°— AGB 1911- 



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