low stumpage value which practically amounts to tlie same 

 thing, con. be /guarded against in two ways: IPirst , by an 

 arbitrary minimum set "by the Secretary ~ a figure which in 

 his .judgment represents a price "below which it will "be fita- 

 poscible to sell many "blocks of National D'orest timber that 

 our "horse sonse" tells us ought to be sold no 1 ,/ on the 

 present market in order to secure the railroad development 

 that would corae through their exploitation* To gain this 

 railroad development and at the same time to keep from sell- 

 ing timber at an absolutely low figure - a figure which would 

 Give to the public the impression that the Forest Service 

 wa,s selling the people's timber below its actual value - 

 the "differential" was devised. This means arbitrarily add- 

 ing to the lumber values a figure which will malre it pos- 

 sible for the buyer to operate at a fair profit. 



To ernxLain this it is necessary to go bad: and take 

 up briefly the question of readjusting sturnpage prices at 5 

 year intervals. Assuming the present price set in accord- 

 ance with the principle outlined, above the prices 5 years 

 from now will be readjusted on the basis of a division in 

 the rise of lumbar values, 25 per cent to the operator and 

 75 per cent -jo the stumpage - The theory being, first, that 

 a steady rise is unearned increment which of right accrues 

 to the stumpage, but the 25 per cent of the total rise is 



necescarv to offset to the operator the perfectly natural 



219 



