MICHIGAN ROADS AND FORESTS. 



13 



crease in timber values in 60 years the original in- 

 "cstmcnt of $15.00 would prove a 12 per cent in- 

 vestment, and more likely 20 per cent would be 

 realized. How does such encouragement com- 

 pare with that of the tax release? 



But, on the other hand, will even the promising 

 returns from a forest growing venture induce pri- 



:< enterprise to engage in this business, the 

 profits of which are so long in coming, the risks 

 of which are not only great, but the future of 

 which is clouded somewhat in uncertainty. 



The Business of the State. 



If I were for a moment to abandon the position 

 of the charging judge and express an opinion, I 



uld declare that forestry is the business of the 

 state, or the community, if for no other reasons 

 than because of the long time element involved. 

 That only large capital and large continuous cor- 

 porations can really afford to go into this long- 

 winded business, and that to such the small tax 

 releases, cannot possiblv act as an inducement. 



The sooner, therefore, the stumplands either 

 by abandonment for tax or otherwise fall into 

 the hands of the state or corporation, and the 

 sooner these realize that the future of timber sup- 

 plies and favorable monetary returns are their 

 concern, the simpler will become the tax question. 



There is one other form of taxation which has 

 -en believed to have a bearing on for- 

 ry practices, namely, a customs tariff. I re- 

 member a committee of lumbermen waiting on 

 me at Washington to ask me to assist their tariff 

 agitation by an argument which should show 

 that a tariff of $2 per 1,000 feet would promote 

 forestry. I promised to do so, if they in turn 

 could vouch that at least one-half of this tax on 

 the public would find its way from their pockets 

 into the woods for improved practice. Needless 

 say, that the argument was not called for. 

 Where, as in Germany, a well established forestry 



-tern needs protection against the imports from 



ploiting countries, the argument might appear 

 reasonable, but as a matter of fact, even there 

 the tariff duty was counterbalanced by a reduc- 

 tion in freight rates of the exploiting countries, 



:d has not had the desired effect. Theoretically, 

 an import duty on lumber should make timber 

 lands so valuable as to induce the conservative 

 use of them, practically such a result has not 

 been experienced, the present dollar being a 

 greater attraction than the possible future two. 



Conditions in Ontario. 



I may be .expected to add a few words as re- 

 gards conditions in Ontario, my newly chosen 

 of activity. A- i- well kr."\vn. the bulk of 

 5t properties, --me '.MI.IIOO square m 

 owned by the crown, or virtually by the province. 

 icnce pays no taxes. The so-called "ground 

 which is paid by the lumbermen, holding 

 timber limits from the crown, in addition to the 

 ;>age dues and the bonus, can hardly be 

 classed as a tax : it is rather a payment per unit 

 area irrelative of values for the privilege of con- 

 tinuing to hold on to the limits. It can !> 



monstrated that the present method of sell- 

 ing timber limits, while for the moment financially 

 really destructive, and inimical to 

 ry practice. But this is a subject which 

 - not belong here. 



Regarding the taxation of privately owned 

 lands, and timber lands especially, the same or 

 even a greater lack of equitable and uniform 

 methods of assessment than in the states exists 

 throughout Canada. Since only towns and mu- 

 nicipalities raise direct taxes and no uniform law 

 of taxation exists, each assessor is a law to him- 

 self, and an all pervading principle of assessment 

 is not discoverable. On the whole the burden has 

 not been great, and hence clamor for tax reform 

 has not been heard. Lately, however, some mu- 

 nicipalities had undertaken to levy excessive taxes 

 "ii crown timber limits, and this provoked appeal 

 to the courts, which naturally declared the limits 

 exempt. 



Ontario, in its 222.000 square miles of country, 

 equal in size to the "States of Michigan. Wiscon- 

 sin and Minnesota, exhibits such a great diversity 

 of cultural and populational conditions, that nec- 

 essarily from region to region at least different 



White Pine Grove in Which Thinning and Pruning 



has Taken Place, Plymouth, Mass. (Courtesy 



Forestry and Irrigation.) 



' points of view and different methods of assess- 



; ment must continue to prevail for 'a long time to 

 come. The southwestern portion, the rich agri- 

 cultural section, bordering on the lakes, where the 

 bulk of the 2,500,000 people live, .is almost desti- 



i tute of timber, and even farmer- is are 



scanty. The northeastern part is largely covered 

 with cut-over timber limits and stump limits, 

 and since the agricultural soils are rather scanty, 

 this will be eventually the great forest r 



from this region that I cited the case of a 

 timber land owner who is satisfied with tax con- 

 ditions. Conditions 'of transportation rather more 

 than taxation are the prominent considerations. 



1 Xorth of Lakes Huron and Superior the districts 

 of Rainy River. Thunder Bay, Algoma and Xip- 

 g, a territory of some 90,000 square miies, is 

 still almost entirely" in the woods, to a large ex- 

 tent of inferior character, and mostly still gov- 

 ernment land, where the tax gatherer has not yet 

 found entrance. In the agricultural regions the 

 government of the province very proper 



1 the last two years has begun to encourage forest 

 planting on waste lands by furnishing cheap plant 

 material and advice. Whether the municipalities 

 will release these plantations from additional tax 

 because of the improvement, remains to be seen. 



There is on the statutes an act passed ii; 

 providing for the exemption of woodland from 

 taxation, one acre in ten. and not more than 

 twenty-five, with the usual limitation of numbers 

 of trees ridiculously low and limitation of spe- 

 cies. The application of this law is optional with 

 the council of the township, and so far does not 



1 seem to have found acceptance anywhere. On 



the whole, as far as I have been able to ascertain 

 the tax question in Ontario is not a burning one, 

 like such others as fire protection, export tariffs, 

 settlers' restrictions and reform in timber limit 

 sales. 



In conclusion, while I may have left the im- 

 pression that not much hope is to be 

 the u^e of the tax power for advancir 

 practices. I am convinced that the di- 

 the subject of taxation must be of c 

 educational value, and that the e' 

 an equitable and uniform tax as- 

 ever such uniformity is practical 

 couraged 



(The continuation of the discussion on the for- 

 :;ttion problem will appear in the December 

 number of Michigan Roads and Forests, together 

 with the other papers read at the convention.) 



OFFICERS AND DIRECTORS. 



President, John H. Bissell, Detroit. 



Vice-President, R. Hanson, Grayling. 



Secretary, J. Fred Baker. Lansing. 



Treasurer, John J. Hubbell, Manistee. 



Board of Directors Mrs. Frances King, Alma; 

 Hon. Arthur Hall, Saginaw ; Prof. Filibert Roth. 

 Ann Arbor; Henry X. Loud, Au Sable; Samuel 

 Lemon, Grand Rapids ; T. B. Wyman, Munising. 



