126 JOURNAL OP FORKSTKY 



under e;xisting legislation, and in most cases under existing regula- 

 tions. This can be accomplished under any one of several plans, of 

 which one may be best adapted to one case, another somewhere else. 

 Under all plans it will usually be best to have exploitation carried on 

 by a separate corporation^ which shall pay for public-owned and pri- 

 vate-owned stumpage of equal value at like rates. Any one of the 

 following plans of sale to the manufacturing corporation can then be 

 used. 



Plan I. — Sell the amount determined as a conservative annual cut 

 under ah ordinary long-term timber sale agreement. A few special 

 clauses may be required to assure distribution of the cut over the whole 

 period. A ten to twenty year contract is here contemplated, with re- 

 appraisal of the timber at suitable intervals. The private owner should 

 execute a similar contract to cover sales on like holdings. 



Plan 2. — Sell under ordinary timber sale agreement of five years or 

 more duration, but in all contracts, especially the first on the co-opera- 

 tive unit, provide that all mills, camps and other improvements, to- 

 gether with easements for right of way and building sites, shall become 

 the property of the United States (or the private co-operatoi j at the 

 expiration of the sale agreement. In future sales the successful bidder 

 shall have the right of using all improvements owned by the Service or 

 private co-operator, either free or under special-use permit, with 

 charges equivalent to say 5 per cent on the appraised value of the 

 properties. The timber sale contract should provide for such use. 

 Each contract should also provide for just what improvements are to 

 be made, with complete plans for them. It is perfectly obvious that 

 under the Forest Service method of timber appraised the costs of 

 these improvements will appear as an item of cost in the appraisal, and 

 the stumpage price lessened accordingly in early sales. In later sales 

 the prices will increase because logging and manufacturing improve- 

 ments are already available. The principal object to be attained by 

 this plan is to maintain complete freedom of competition in bidding for 

 timber without introducing competitive mill construction, as sometimes 

 happens under present methods. Absense of competing mills will re- 

 lieve the co-operative unit from pressure for over-cutting. On the 

 whole, therefore, this is a very desirable plan, designed to tree the 

 Service from charges of recogniton of monopoly, avoid the waste of 

 competitive mill construction, while at the same time the annual cut 

 can be restricted to any desired proportions, and the limitations ad- 

 hered to. It should also prove fairly acceptable to the private owner 



