20 



HARDWOOD RECORD 



Miiy ir,. \\)->\ 



Tho Feilcral Forest Coiiniiu-^- lumbermen and representatives 

 ■.i<m may consult representatives of wood using imlustries. 

 of the forest industries in de 

 termininK tlie forest policy. 



By Whom Shall Law Be Executed 

 Forester of the l'nite(l Stat<>s. I'lirester of tlie I iiitcil States. 



Regulations Imposed 

 The Federal Forest Coniniis- The Secretary of Agriculture 



sion sliall establish general shall make "regulations cstab- 

 principles covering tho opera- lishiiig and defining in general 

 tion of forest industries and terms as to each forest region 

 ■ipecific regulations in accord- such reasonable standard for 

 ance with such principles ;is the harvesting of forest crops 

 shall be established and .-qiplied as he may deem necessary, 

 bv the forester. It is also specifically provided 



No provision covering differ- that local regulations "not in- 

 luces in local conditions. consistent with the regional 



regulations" shall be estab- 

 lished and enforced in order to 

 gi\'e the act greater flexibility. 



Appropriations Covering Above Regulations 



Two million dollars. Xot si)ecified. 



Fire Prevention 



The Federal Forest Conimis- Th<> Secretary of .\f,'riculture 



Aon may contribute funds for is authorized ami directed to 

 .ooperation with states for pre- "recommend for each forest re- 

 ventiou and suppression of fires gion of the Tlnited States the 

 on forest lands. essential requirements in pro- 



tecting timber and cut over 

 lands trovi fire, ' ' and to match, 

 not to exceed dollar for dollar 

 the expenditures of tlie states 

 and the expenditures of forest 

 (iwiiers ri'i|iiired by state law. 

 Appropriations for Fire Prevention 

 One million dollars. Not specified. 



Reports Required 

 Federal Forest Commission The operator re(|uiied to 



may re(piire through the Fed- make return before March 1.") 

 eral Trade t'omniissiou reports showing: 



on production, shipments, stocks, First — Number of thousand 



costs, etc. feet lumber produced in accord- 



ance with the cutting regula- 

 tions prescribed by the act. 



Second — Number of thousand 

 feet of lumber produced not in 

 accordance with prescribed cut- 

 ting regulations. 



Field inspection of books is 

 provided for. 



The Secretary of Agriculture, 

 together with the Commissioner 

 of Internal Bevenue, is given 

 compreliensive inquisitional 



powers. 

 Authorization of Combinations 

 Federal Forest Commission No ])ro vision, 



may after public notice and 

 liearing permit combinations in 

 forest industries which would 

 increase economy in production, 

 manufacturing and marketing 

 of forest jiroducts. 



United States Government in Lumber Business 

 The Forest Service may, if .N" provision. 



tlie Federal Forest Commission 

 shall think it to be in the pub- 

 lic interest, undertake logging 



and manufacturing operations, 

 efi'., in the national forests. 



Penalties for Violation 

 Any person iiitting forests in Penalty not to exceed $5,000 



violation of any provision of or one year imprisonment or 

 this act will be fined not to ex- both;, also the payment of all 

 eecd $.1,000 and one year im- taxes provided for in this act. 

 prisonmcnt, or both. 



Also a 10 per cent tax on net 

 income derived from shipments 

 of forest products during the 

 taxable year. 



Franchise Tax 

 No ]uovision. -^n excise tax on the "privi- 



lege on franchise of conducting 

 business of harvesting forest 

 crops on commercial forest 

 lands" shall be levied as fol- 

 lows: 



Five cents ])er thousand feet 

 on products which are produced 

 in accordance with the regula- 

 tions prescribed in this act. 



Five dollars per thousand feet 

 on products which arc produced 

 otherwise tliaii in accordance 

 with the standards and regula- 

 tions prescribed in this act. 



Xo provision. 



No provision. 



Void Parts 



Should any part thereof fail 

 because of ambiguity or other 

 reasons, such policy shall not be 

 construed as adversel.v affecting 

 tho remaining parts. 



Short Title 



This act may be cited as 

 "Taxation of Forest Products 

 Act 1921." 



Special Points of Difference 



The most important provision of the Capper Forestry Bill in its 

 present form is to be fouud.in the tax.ition provision analyzed below 

 in paragraph 5. 



First — The revised bill creates no new bureau or commission, but 

 uses the governmental organizations already established. 



This is perhaps intended to meet the objection to the multiplica- 

 tion of governmental commissions and bureaus. 



Second — The revised bill makes specific provision for adapting 

 the regulatory measures to the differences in local conditions in 

 various states and communities. 



This is probably to meet the objection that the standard regula- 

 tions proposed in the original Capper bill were not sufficiently 

 fiexilde. 



Third — No specific ])rovisions are provided in the revised bill 

 either for enforcement of reg\ilations or for fire prevention. 



This change may have been made in order to meet the strong 

 objection against the incurring of additional expenses by the gov- 

 ernment, or it may mean that the advocates of the bill consider it 

 only as an educational measure which cannot be passed at present,, 

 and that no useful purpose would be served in courting the opposi- 

 tion of those who are committed to a reduction in the federal 

 expenditures. 



Fourth — One of the provisions of the revised bill includes the 

 co-oper;itive fire prevention and forest protection provisions of the- 

 so-called Snell Bill. It contains also the provision that if any part 

 of the bill is unconstitutional that fact shall not affect the rest. 



Apparently this is intended to insure co-operative fire prevention 

 and forest protection in the event the timber cutting regulations 

 ( Continur<l on page 2S) 



