EDITORIAL 



Taxation the Primary Issue the reasons why the 



"THE discussion of state regulation of J he P resent scheme of taxation have not 

 1 timber cutting at the annual meet- bee " more keenl y felt hitherto ; but the 

 ing of the American Forestry Associa- = f udy f f r r est taxation in New Hamp- 

 tion brought out some interesting * mre by Mn Coster, of the United 

 points. Not the least of these was the Service, showed that in 

 conclusion, reached by both Mr Gary , at state ' wmch 1S n t exceptional in 

 and Mr. Hollis, whose papers are pub- , re f ard ' timberlands were taxed at 

 lished in our pages this month, and from three to 150 per cent of their 

 agreed to by several who took part in actual market value, a condition very 

 the general discussion, that state regu- satisfactory to the three per cent 

 lation would be unjust, impracticable, OVfn * rs > ^ far from that to the owners 

 and unconstitutional, unless preceded by at ^ e other extr eme. 

 a reform in methods of taxing forest Lhe s y stem proposed by Mr. Hollis 

 lands. The argument, made from dif- x ;' as generally stated at follows : 'Tax 

 ferent angles of approach, seems tinan- t , la " d merel y wh at it is worth un^ 

 swerable, that for the state to place a circumstances, varying as it 

 cumulative tax on growing timber and JX 1 by chmat e, location, soil, and the 

 then to undertake to restrict and regu- when we come to tax the 

 late its use may and often would t ! mber ltsdf taking a share of 

 amount to practical confiscation. ' gross lncome which will represent 

 An equitable adjustment of taxation ^ he sam f share of the g ros s income 

 must, therefore, precede any legislation iro "? other . property." While he re- 

 looking to state regulation of the man- " ard f d this due proportion as not 

 agement of timber crops. clearly worked out, Mr. Hollis person- 

 Mr. Hollis, who in his paper pre- estimated it at about twenty per 

 sented the subject from a lawyer's 



viewpoint, added an illuminating ap- . n .George H. Maxwell declared 

 penclix in the discussion that followed, belief " that the establishment in 

 when he argued on somewhat broader evei T sta te of a right system of forest 

 grounds. After explaining that in his taxa tion would do more than anything 

 paper he undertook "to define the con- lse to deve lop rapidly the creation of 

 dition of the question as it stands on new fores t plantations and the better 

 the authorities to-day," he said that his care of those already existing that have 

 "conclusion as a citizen would be that " ot alread 7 grown to maturity." Mr. 

 whatever regulation of forest cutting divided forest property into 

 is necessary and useful for the protec- three classes the land, the growing 

 tion of the public welfare ought to be timber, and _the matured timber. The 

 introduced now or before "a great value is easily ascertained, the 

 while," even if it required constitutional growing trees that have not reached 

 changes. Turning, then, to taxation, their maximum value should not be 

 Mr. Hollis made the further points that taxed, but the matured trees should 

 taxation on potential values, after the ^ taxed. In reply to a question by 

 German method, is impracticable in this Ayres as to who will determine 

 country because forest production is wn en the timber is mature, Mr. Max- 

 not sufficiently systematized. The tax- we ^ sai( ' there is no other way except 

 ation system must be made attractive lj y state or local tax collectors'or coin- 

 to private owners The low market missions. We must simply do the best 

 value of timber, until recently, and the we can, as we do with other assess- 

 mocleration of boards of assessors are ments. Mr. Maxwell took the same 



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