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than the 25% decrease currently projected by the Forest Service. The forest-products industry 

 has questioned this data more than one time, but has been unable to convince the agency that it 

 should be reviewed. 



Recently, the Governor of South Dakota requested that this inventory data be reviewed by an 

 independent third party to learn whether or not more timber exists that might be added to the 

 ASQ. The Forest Service refuses to open their books to an independent review. In this day and 

 age of politically driven forest planning, the small business men and woman of the Black Hills 

 cannot afford a forest plan based on perceived political correctness. 



We request this Committee intercede with the Secretaiy of Agriculture to ensure the forest- 

 inventoiy data is reviewed by an independent third party, before the draft forest plan is released. 



SMALL BUSINESS FACES AN UPHILL BATTLE FOR SURVIVAL IN THE BLACK HILLS 



To understand the demise of small business sawmills in the Black Hills, one must examine: (1) 

 the tendency of the Forest Service to favor large business over small business; (2) timber-sale 

 contract hurdles which all purchasers must overcome; and (3) the implications of reduced timber 

 supply on small business. 



The Tendency of the Forest Service to Favor Lai^e Business 



"1914, two severe fires destroyed the old mill site of [a] new development because of 



this was reported by the Forest Service which stated that, without other mills bidding on 

 the timber; the Homestake had more or less been promised the timber m the Nemo area 

 since they had invested considerable money in the Nemo plant and railroad."^ 



Sawmills of the Black Hills, Martha Linde 1984. 



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