The circular states that part of the gross receipts 

 of the national forests was first raacle available for schools 

 and roads when the agricultural appropriation act of June 3O ? 

 1906, directed the Secretary of the Treasury to pay over to 

 the state or territory in which any forest reserve was situ- 

 ated ten per cent of all money received during the fiscal 

 year from such reserve. The money was to "be expended "by the 

 state or territorial legislature for the benefit of public 

 schools and roads in the counties in which the forest re- 

 syrvc-j lay. This legislation was recommended by the forest 

 service because of the recognized burden imposed locally 

 where national forests operate to prevent much land from 

 besoirln/j ta^ablCo 



In 1903 the amount to be paid to the states was 

 increased to 25 per cent, and a proviso of the earlier act 

 that no more should be paid to a county than 40 per cent of 

 its total income from other sources was eliminated. Since 

 this proviso was removed 7 some of the counties receipts 

 from national forest lands have equalled their income from 

 all other sources. 



In August, 1912, the agricultural appropriation act 

 for the year made available an additional 10 per cent of the 

 money received from national forests to build and maintain 



c. 3 and trails T^ihiii i:at3.?inal forests for the benefit of 

 the public, in the states from which these proceeds are de- 

 rived. This 10 per cent "road item, " as it is called, is 



