1906 



FORESTRY AND IRRIGATION 



175 



may yield returns should not be consid- 

 ered as the full time required to grow 

 the average tree; some trees mature 

 more quickly than others, and all nat- 

 ural forests contain trees of various 

 sizes and ages. It is doubtful if any 

 forest, containing the usual diversity 

 in size or species, and now market- 

 ripe, would not yield again within 

 twenty years if cut carefully. This 

 point is often overlooked, yet it is of 

 great importance in considering the 

 periods during which a given piece of 

 forest would pay only on the ground 

 tax. 



(4) The deferred tax should bear a 

 fair relation to the net yield of the 

 property ; that is, it should not exceed 

 a sum that will leave the owner the 

 equivalent of a fair annual return on 

 his investment. 



(5) Forests occupying land of the 

 kind here considered grow too slowly 

 in most situations to yield by their an- 

 nual increment a rate of interest com- 

 parable with that commonly expected 

 from ordinary business enterprises, 

 they may easily produce wood at a rate 

 that will compare favorably with the 

 interest derived from State or national 

 obligations. 



(6) Forests are exposed to unusual 

 risks from fire and depredation, owing 

 to their very general use by the public. 



OBJECTIONS. 



What are the objections that may be 

 urged to a law embodying these prin- 

 ciples? The fundamental proposition 

 that forests be assessed apart from 

 the land upon which they stand sug- 

 gests a radical change in the tax sys- 

 tem of most States ; but forestry itself 

 is radical and demands new methods. 

 Apart from that the only difficulty is 

 to fix the values of land and forest. 

 If it be admitted that forest owners 

 are entitled to special rates on such 

 property on account of its public value, 

 the constitution of no State is likely 

 to prove a bar to the necessary legis- 

 lation, since existing bounty and ex- 

 emption acts evidence the power of the 

 legislatures. But if such difficulty be 

 encountered it probably can be over- 



come by putting forests into a special 

 class for purposes of taxation. The 

 real questions, then, are how to fix the 

 value of a forest and how to provide 

 for the collection of the tax at inter- 

 vals. The problem is less difficult than 

 it appears to be. If the land alone is 

 made to pay a yearly tax on its actual 

 value, determined by the assessors in 

 the usual way, the county gets at least 

 as much income as it would if the for- 

 est were not there. 



Then let the whole question of tim- 

 ber value be determined by what it 

 sells for, and base the forest tax on 

 that. Everything that comes out of 

 the forest must pay the accepted rate 

 of tax. Of course, safeguards must be 

 provided ; intermediate yields as well 

 as the main crop must pay their shares, 

 a proper return of quantities and value 

 of material sold or used must be in- 

 sured, and provision made for an ad- 

 justment of loss in the event of serious 

 damage to the property by fire or 

 storm. If theft is committed, it may 

 be assumed that the county is equally 

 responsible with the owner. The coun- 

 ty being thus protected against loss, 

 the owner, on the other hand, must be 

 assured that the rate will not be raised 

 when it is known that his timber is 

 ready for market. The deferred re- 

 turns from this source would be viewed 

 as sinking-fund accumulations, or they 

 might be used as a basis for bond is- 

 sues to supply special needs. 



A law framed along these lines 

 would, of course, have to be adapted 

 to local conditions and practices. Its 

 proper execution would involve some 

 increase in the executive personnel, yet 

 even without that the change could not 

 fail to be an improvement on the pres- 

 ent system. 



HOW THE PLAN WOULD WORK. 



It is difficult to illustrate this plan as 

 applied to a forest already grown, but 

 which may not be cut for several 

 years, without accurate knowledge of 

 the value of the stand and of local 

 conditions. Perhaps it would be found 

 safe and entirely reasonable, in most 

 cases, to remit the taxes until the trees 



