48 



National Resources Committee 



supplied bj' the United States Bureau of Entomology 

 and Plant Quarantine. As the disease threatens the 

 future welfare of the Region rather than that of the 

 private owners of mature timber, its control, even on 

 private lands, is a matter of public concern. 



Decreasing the Waste in Lumbering 



The Forest Products Laboratory of the United States 

 Forest Service at Madison, Wis., is the central investi- 

 gative agency which is studying the better utilization 

 of wood. The experiment stations, the Imnber asso- 

 ciations, and the State educational institutions are 

 worldng along similar lines. AVliile some progress has 

 been made, the volumetric waste remains very high. 

 Recent investigations, ui fact, have tended to mcrease 

 it by showing that in the past some material had been 

 removed from the forests at a loss. The present trend 

 in logging methods, however, may faciUtate leaving the 

 submargmal material in the form of growing trees rather 

 than of debris. 



Development of New Industries to 

 Replace or Supplement Existing Industry 



The rapid growth of the regional pulp industry near 

 tidewater has already been mentioned. Particularly 

 when associated with the paper industry, this is espe- 

 cially welcome because of its relatively high ratio of 

 labor to raw material. Pulp of the highest grade, such 

 as that suitable for rayon and cellophane, is being made 

 from hemlock pulpwood. The rapidly increasing use 

 of rayon and other new products based on ceUidose 

 suggests that this growth of industry can be continued. 



Many other new uses for wood and its constituent 

 materials are being developed in the laboratories of 

 governmental agencies and of industrial organizations. 

 There is promise of growth of other important indus- 

 tries, based upon waste wood and upon lignin and dis- 

 tillates, as well as cellulose. While such uses are in 

 their infancy as commercial ventures, they also repre- 

 sent potential progress toward continuing forest indus- 

 tries in localities where they cannot be continued at 

 their present level if based on lumbering alone. 



Controlling Overproduction 



The Lumber Code made production control manda- 

 tory upon the industry. In spite of many administra- 

 tive difficulties, compliance was nearly universal within 

 this region. When the N. I. R. A. was declared un- 

 constitutional, even voluntary control was considered 

 a possible violation of the Sherman Antitrust Law. 

 The trade associations have collected and distributed 

 information on such matters as stocks on hand, ship- 

 ments, and anticipated future demand which give the 

 mdividual operator a better basis for determining his 

 rate of cut, but the result leaves much to be desired. 



Sustained yield exerts an effective control on that 

 part of the timber supply which is under this form of 

 management. Too much of the cut comes from timber 

 which is not thus managed to make this control of much 

 present help to the industry. 



Tax Reform 



In three of the four States, some progress has been 

 made in connection with the taxation of young, growing 

 tmiber. 



In Idaho, by agreement between the owner and the 

 State Board of Forestry, land classified as reforestation 

 land is assessed at not to exceed $1 per acre. In addi- 

 tion to the annual tax on this basis, the owner pays a 

 12}^ percent jaeld tax when the young crop of timber 

 has matured and is cut. About 130,000 acres have 

 been thus classified. By recent legislation, trees left 

 uncut under the forest practice rules are exempt from 

 taxation, but must be left standing for 15 years. 



In Oregon, lands classified by the State tax commis- 

 sion as reforestation lands pay an annual fee per acre of 

 5 cents in the fir region and 4 cents in the pine. An 

 additional yield tax of 12}^ percent is paid when the 

 timber is finally cut. About a million acres have been 

 thus classified. 



In Washington, lands classified as reforestation lands 

 are assessed at $1 per acre if in the fir region and at 

 50 cents per acre if in the pine region. In addition to 

 the annual tax thus determined, a yield tax of 12,'^ per- 

 cent must be paid on all timber cut 12 years or more 

 after the time of classification, and according to a 

 sliding scale of lesser percentages if the timber is cut 

 more promptly. About 200,000 acres have been thus 

 classified. In addition, the possibility of classification 

 has in many counties reduced excessive valuations on 

 cutover lands. 



Various proposals have been introduced into the 

 State legislatures for a revision of the tax system as 

 applied to mature timber, but none has been adopted. 



Stabilization of Ownership 



In the State of Washington alone has substantial 

 progress been made in managing tax-foreclosed forest 

 lands. This State may insist that such lands be turned 

 over to the State Forester for management. The 

 revenues are then turned back to the counties, after a 

 deduction of the costs of management and of an addi- 

 tional 10 percent wliich goes into the State forest de- 

 velopment fund. Tills right has been exercised only 

 where there is no objection on the part of the counties, 

 but nevertheless about 200,000 acres have already been 

 put under State control. 



Oregon has a somewhat similar law authorizing 

 management by the State, provided, however, that the 

 counties must ofl^er the land and the State accept it. 



