26 C. A. SCHENCK. 



estry. The certainty of a high tariff to remain for a long time 

 \x^ould be an inducement, without a doubt, towards investments 

 in conservative forestry. 



9. In the United States is absent the minute net-work of 

 public roads and of railroads which forms, in Germany and in 

 France, the means of ready access to the woods. The cheap 

 transportation of wood goods results in a high value of pro- 

 spective forests. 



10. Forestry productive of timber is possible only on large 

 holdings. The American land policy has been, as far as the 

 public lands are concerned, a policy made to order for the 

 farmer, supplying him with 160 acre lots. The land requirements 

 of forestry have never been considered. Farm woodlands of small 

 size can never solve the forestry problems of the United States. 



11. Forestry requires, besides investments in soil and in timber, 

 a large number of other investments: notably investments for 

 transportation, for milling, and that like. In the old countr}-, 

 these additional investments form, stumpage values being very 

 high, a small percentage of the timber investment. In America 

 stumpage values being low, the additional investments frequently 

 require more of an outlay than the original investments made in 

 soil and in timber. 



12. Whenever a railroad or any other industrial enterprise 

 requires additional capital it covers its requirements by an issue 

 of bonds or by taking a mortgage on its property. Mortgages 

 are not compatible with conservative forestry. Mortgages and 

 bonds will force the owner, to the detriment of conservation, to 

 cut heavily when the prices are low, so as to meet the require- 

 ments of the bondholders by a heavier cut. In addition, con- 

 servative forestry does not yield, usually, a rate of interest as 

 high as that, or higher than that, at which mortgages or bonds 

 may be placed. 



13. Constructive forestry is easy; destructive forestry is easy: 

 conservative forestry, however, holding the balance between con- 

 structive forestry and destructive forestry that is to say removing 

 from the forests exactly as much value per annum as it constructs 

 in them is very difficult to maintain. The majority of the 

 owners, in Germany and elsewhere, actually do not know whether 

 they are over-cutting or under-cutting their woodlands. 



