FOREST SERVICE. 355 



tional Forests (exclusive of Alaska) would be equivalent to $31,000,000 

 added each year to the value of the present stand. There is also 

 the increase which takes place through the growth of small timber. 

 The Government can well afford, in consideration of the rising value 

 of its property, to give it protection irrespective of wdiat the Forests 

 are now bringing in. It would be inexcusable folly to do otherwise. 



If the expenditures of the Forests can not be curtailed, the natural 

 query follows, Wiiy can not the receipts be largely increased to meet 

 the expenses ? This could only be done by throwing large bodies of 

 timber on the market at prices much below its real value. The 

 market is now glutted through overproduction from private lands. 

 To sell public timber when it is not really needed at prices below its 

 value and under conditions which would be injurious to the Forest 

 itself, thus sacrificing the great public reserve which will be badly 

 needed later on, would be notliing less than a betrayal of the people's 

 trust. The truth is that, regarded as public property, the National 

 Forests form an aggregate so stupendous that the most conservative 

 statements and estimates appear visionary. In consequence it is 

 difficult to secure a consideration of questions of business policy on 

 their actual merits where questions of value are involved. It cost 

 the Nation no outlay of capital to reserve for public use timber which 

 it would require an outlay approximately equal to the present national 

 debt to buy; but that does not alter the actual situation. The pres- 

 sure for throwing down the barriers which now prevent this great prize 

 from passing into private hands is a natural result of this situation. 



While the gap between expenditures and receipts can not be 

 expected to close entirely for some years unless a shortsighted and 

 false economy is attempted, there is every prospect that the net cost 

 to the Government will decrease yearly. In the fiscal year 1912 the 

 gross cost will probably be slightly less and the receipts somewhat 

 greater than in 1911, and the estimate of appropriations needed for 

 1913 keeps within the total for 1912. 



Although the receipts for timber and grazing fell off, the number of 

 persons who made beneficial use of the Forests was greater than in 

 any previous year. The total number of timber sales made (5,653) 

 was 5 per cent above the number in 1910, the pay grazing permits 

 issued were within one-third of 1 per cent of the number in 1910, the 

 permits for free use of timber rose from 35,364 in 1910 to 40,660 in 

 1911, while the free special use permits fell from 2,986 to 2,844, but 

 the pay special use permits rose from 2,222 to 2,301. 



The most important development in the field of special uses was in 

 connection witli applications for the use of land for water-power 

 purposes. The new form of permit and stipulation described in last 

 year's report was approved on December 28, 1910. Its fairness was 

 generally recognized, and the applications for permits which have 

 been made show that preparations for local development of the water- 

 power resource are now well under way. The following statement 

 indicates the extent to which this has gone. It does not include 

 noncommercial projects utilizing or contemplating the utilization of 

 less than 1,000 horsepower. 



Number of projects operating June 30, 1911 28 



Number on which constniction had been begun 12 



Number for which permits had been issued 91 



Number of permits issued in fiscal year 1911 49 



Number of applications for permits received in 1911 75 



