Forest Service Revenue and Organization 193 



justice of giving the preference range right to the small local resi- 

 dent. They must realize that even if the rates were largely 

 increased the small owner would still be able to make an equita- 

 ble return on his investment ; the smaller the outfit, the larger 

 the proportion of his stock would be grazed free (if Regulation 

 G-5 were modified). Under the modified G-5 regulation pro- 

 posed, a man running 30 head of stock would pay on 2/3 ; the 

 man running 1,000 head would pay on 99/100. Its fairness is 

 obvious. As already explained, there are the alternatives of 

 abolishing all free grazing, or, if preferred, the small settler could 

 be allowed a few head of stock at rates based on the cost of 

 administration. The point argued by the writer is that the present 

 system exemplified by Regulation G-5 is unsatisfactory. 



How far would increases in special use and grazing fees go 

 toward making the National Forests self-supporting? 



According to the Forester's Report for the fiscal year ending 

 June 30, 1915 : 



"Approximately $5,281,000 was expended for the protection, 

 utilization, and improvement of the National Forests, including 

 all overhead administrative costs." 



The cash receipts were $3,481,469.35— a deficit of $3,799,530.65. 

 The special use returns were $176,000, and for grazing $1,130,000. 

 By doubling the special use fees $176,000 would be saved and by 

 tripling the grazing $3,260,000 — enough to wipe out the deficit 

 when coupled with administrative economy, and when it is realized 

 that last year the expenses were "beyond the normal" because of 

 an extraordinarily severe fire season, and that $400,000 was spent 

 on improvements. Even if the grazing fees were merely doubled 

 it is likely that, with a 'better demand for timber, coupled with 

 the abolishment of all free use of timber and grazing, the deficit 

 would be wiped out by 1918. Some saving could be made admini- 

 stratively by perfecting the present organization. An analysis 

 of this phase of the problem is of such interest professionally 

 that it will be discussed in some detail under the following heads : 

 Forest Reserves under the Land Office ; Forest Service In- 

 spection Districts ; Western Administrative Districts ; Centralized 

 Supervisor Organization ; Arguments Favoring Consolidations ; 

 Organization Development ; Possible Organization Reform ; Con- 

 clusions. 



