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(6) That only a fully developed and separate system of management and 

 administration, carried on by competent men under expert advice, can accom- 

 plish the objects of a rational forest policy. 



(c) That the object of the public forest reservations is twojold, namely, to 

 maintain desirable forest conditions with regard to waterfiow, and, at the same 

 time, to furnish material to the communities in their neighborhood. 



(d] That ivhile the service of protection of watersheds would warrant an 

 expenditure out of other funds for such service it should, nevertheless, pay for 

 itself by the sale of surplus forest material. 



It is only necessary to add a few words of explanation on this latter point, 

 says the chief of the forestry division in discussing the practicability of a 

 government forest administration : 



To meet any objections on the score of expense, a rough estimate of this question may be 

 made as follows : 



Allowing 50,000,000 acres of timber land reserved, I find that a tolerably efficient adminis- 

 tration may be provided for a round $2,500,000, or 5 cents per acre. It would be satisfactory 

 of course if only this expense be covered by the revenue. While the annual growth of wood per 

 acre on the reserved area would exceed in value the assumed cost of administration the local 

 market and consumption is restricted. But when we consider that the present saw-mill capacity 

 -of the region affected is over 3,000,000,000 feet B. M., and the resident population 3,000,000, 

 requiring at least 50 cubic feet of wood material per capita, sufficient margin is assured even if 

 only half of these amounts are furnished from the government reservations and the average 

 charge for stumpage is taken at 10 cents. 



And in another place (see Annual Report, 1886) : 



(7) The cost of the total service depends of course on the number of districts to be formed. 

 'Take Colorado al ne, which we will assume contains about 5,000,000 acres of public domain. For 

 this we may require three hundred rangers and ten inspectors, and the expense may be placed in 

 round figures at $300,000. This amount could be saved by preventing only one-third of the 

 forest fires, which seem to destroy over $900,000 worth of public property in that State yearly, 

 and the 50,000,000 cubic feet or so of timber, which may be cut to satisfy the needs of the 

 country for its development, would certainly, without hardship to any one, yield enough to help 

 pay the expenses of less favorable localities and of the central bureau. The expense of the latter, 

 with the necessary staff of clerks, etc., could certainly be kept within the sum of $50,000. Even 

 if the whole forest area were as thoroughly organized as proposed for Colorado, the expense of 

 the service would not be more than 30 per cent, of the income which might be derived from this 

 domain, or, which could be saved, by preventing one-half of the fires that yearly destroy about 

 an equal amount. 



Referring to the operations of several European forest administrations we 

 -find that their expenditures represent from 37 to 58 per cent, of their gross 

 income, or from $1.33 to $5 per acre, the net revenue being 96 cents to $4.40 per 

 acre. These are results under conditions of very extensive management and 

 under highest economic development. Taking Prussia alone, with a round 

 6,000,000 acres of forest and much poor and undeveloped country, the cut in 1890 

 amounted to round 333,000,000 cubic feet of wood, of which 215,000,000 feet 

 -went into cord- wood and 118,000,000 feet in saw-logs, or round 56 cubic feet of 

 wood representing the annual growth per acre per year over the entire 6,000,000 

 acres, with a proportion of 45.6 per cent, in saw timber and wood for manufac- 

 tures. The price received for this material in the woods, butt cut, was at the 

 average rate of $10.63 per M feet, board measure, and $3.69 per cord, or both 

 together about 5 cents per cubic foot of wood, the total income from wood being 

 $16,225,000, of which 62 per cent, came from saw timber. Other revenues of the 

 fores o administration amounted to $17,632,810, or about $2.63 per acre, as against 

 $10,888,893 in 1870. 



