128 JOURNAL OF FORESTRY 



stumpage rate is moderately low market risks are largely eliminated 

 and errors in appraisal obviated. Under these conditions capital will 

 enlist at low interest rates. The premium given for efficiency, how- 

 ever, will insure economy and full enlistment of individual initiative 

 in the manufacturing process. This form of contract will be especially 

 adapted to continuous production forest because with a moderate base 

 stumpage price manufacturing can go on uninterrupted through ordi- 

 nary market fluctuations. This will give continuous employment to 

 labor and attain what should be one of the main objects of forest 

 management, namely, protection of the human factor. Opinion will be 

 divided as to the effect on the industry in general. It is obvious that 

 lumber manufacture will go on, good times or bad. If manufacturing 

 units coupled with continuous production forest are organized so as to 

 be in a strong competitive positon, then so much faster will all forests 

 be so organized. Moreover, since competition is the fetish of a large 

 part of the American people, no objection can be made to its perfect 

 working. 



In some cases none of these plans may meet the needs of the private 

 co-operator who owns his own manufacturing plants. In such cases 

 it may be necessary to include a clause in the co-operative agreement 

 permitting his withdrawal in case he is the unsuccessful bidder when 

 National Forest timber is up for sale, which would very seldom be 

 the case. 



It is contemplated, as heretofore stated, in all of these plans that 

 manufacturing will usually be carried on by a separate corporation, 

 which may or may not be financed by the private co-operator. Sales 

 to the manufacturing corporation will be made by the Forest Service 

 covering National Forest timber, and the private co-operator usually 

 on the same terms. 



In the foregoing I have sketched in outline form suggestions for co- 

 operation between the Forest Service and adjacent owners for the 

 complete management according to the economic conditons of the 

 locality of forest units not yet in vmified ownership. In closing I de- 

 sire to say that where complete co-operation is not yet possible, then 

 the co-operative agreement should cover as much as the present feeling 

 of the private owners involved in each case will accept. If the 

 Service displays genius in this respect, and wins the confidence, of 

 private owners, functions will be added to the co-operative agreement 

 from time to time in somewhat the following order : 



