UNITED STATES DEPARTMENT OF AGRICULTURE, 

 FOREST SERVICE. 



THE NATIONAL FOREST MANUAL. 



AMENDMENT NO. 129 INSTRUCTIONS. 



JULY 16, 1912. 



Timber sales. Paragraph 8 of the Instructions on page 42, with 

 marginal heading " Reliability and financial standing of appli- 

 cants," is hereby amended by adding the following: 



A specific statement of financial ability will be required in all 

 sales of 10,000,000 feet or more and in smaller sales in the discretion 

 of the approving officer. (Regulation S-14.) Such a statement 

 may be required when necessary in the judgment of the approving 

 officer before the approval of a sale application, either formal or 

 tentative, and in any event before the timber is awarded to the 

 successful bidder. 



In dealing with established local firms of a substantial character, 

 a simple statement of assets is sufficient. No further check than a 

 report from the local forest officers that the applicant or bidder 

 is financially able to carry out the contract will be required. 



In dealing with firms established in the lumbering business but 

 not locally known, a statement of assets will be required, together 

 with a list of references to the financial standing of the firm. The 

 statement should be checked by the Credit Rating Book and by 

 inquiry from at least one of the references given. 



In dealing with established local firms of a substantial character, 

 lumbering business, a specific statement of present and anticipated 

 resources, together with a list of references, will be required. The 

 statement should be checked by inquiry from one or more of the 

 references given and, if there is any question as to the financial 

 ability of the applicant, by a special rating from one of the estab- 

 lished agencies. This rating can be secured from the Division of 

 Accounts and Disbursements of the Department upon application 

 to the Forester. 



The object of this requirement is to restrict sales to bona fide 

 operators or firms prepared to operate if the timber is secured, of 

 adequate financial ability to carry out the contract succevssfully, and 

 to prevent sales to promoters and speculators. The foregoing in- 

 structions will be applied with a view to eliminating awards to 

 bidders who are not organized or financially equipped to carry out 

 the contract but who will use the award of timber, which is prac- 

 tically an option, as the principal basis for organizing a new com- 

 pany to handle the timber or as a possible basis for speculation 

 through stock issues or otherwise. 



HENRY S. GRAVES, 



Forester. 



54129 No. 12912 



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