1906 



FORESTRY AND IRRIGATION 



503 



per thousand feet cut is made the basis 

 for the auction. 



- tsume, for illustration purposes., a 

 pine stand estimated to cut ten million 

 feet of mature timber, which has an 

 average market value of ten dollars 

 per M as it stands, or a total of Sioo,- 

 ooo. If sold at public auction on a 

 stumpage basis for Sio per M, the 

 operator will cut no trees which when 

 manufactured will not yield at least 

 Sio per M over and above the cost of 

 manufacture. Suppose, however, that 

 $80,000 of the purchase price be paid 

 cash in advance in form of "bonu 

 with the stipulation that the remain- 

 ing S2 per M be paid as stumpage 

 dues when the timber is cut. The same 

 operator who in the first case found 

 it in his interest to cut no trees which 

 were not worth Sio per M on the 

 stump will now find it in his inter 

 to cut whatever may have a stumpage 

 value of $2 per thousand. The cut- 

 ting of the young pines having a 

 stumpage value of between two and 

 ten dollars per M may under some cir- 

 cumstances be the main difference be- 

 tween good forestry and destructive 

 lumbering. 



(5) Bonus System Places a Pre - 

 ium on Violation of Cutting Regula- 

 tions Should it have happened that 

 in the sale of this block of pine the 

 province should have reserved trees 

 required for seed purposes, or all trees 

 below a set diameter limit that they 

 might form the basis of future cut- 

 tings, it is evident that a purchaser 

 under the bonus system having ad- 

 vanced S80.000 in cash, and being in 

 a position to reap a large profit from 

 cutting the reserved trees (because of 

 the low dues, would be under a very 

 great and constant temptation to do so. 

 It may indeed well be doubted if the 

 enforcement of reasonable cutting reg- 

 ulations be at all practicable under this 

 system. Certain it is that up to the 

 present it has not been successfully 

 accomplished. 



AUCTION SALE BY THE THOUSAND FEET. 



The placing of the whole payment 

 of the lumberman's price for the logs 

 as stumpage dues of so much per thou- 



sand feet, to be paid when the logs 

 are cut, and the determination of the 

 amount of the price by put : m- 

 petition meet even- objection which 

 can be taken to the bonv 

 auction, whether viewed from the 



ndpoint of the operator or that of 

 the province. 



Large capitalists who can command 

 sufficient credit to deal in timber lands 

 under the bonus system of auction 

 would very probably not look with 

 favor on a change to a form of auc- 

 tion which would divert a much larger 

 proportion of the natural increase in 

 mpage values to the provincial 

 tre It would, on the other hand, 



be warmly welcomed by operators : 

 limited capital and would work in- 

 ice to none. 



Its practical application on a very 

 large scale on both public and priv 

 lands has abundantly proven its prac- 

 ticability and efficiency and its special 

 value as an aid to conservative for est 

 -agement. 



It will bear emphasizing here that 

 wh&: is said below in regard to the de- 

 sirability and necessitv of defining - s. 

 protecting the rights and duties : 

 both parties to sale contracts applies 

 equally to sales on a stumpage basis 

 Experience has shown that the point 

 to be especially cared for under this 

 form of sale is the prevention of was:t 

 : inferior material in the woods. 

 Neglect of this matter may lead to 

 ; trious loss and bring undeserved dis- 

 credit on the system. 



CUTTING REGULATIC 



Wherever State or private fore ; :s 

 are managed with a view of continued 

 wood production, the most important 

 feature of a sale of standing timber 

 is the agreement as to the rights and 

 duties of the contracting parties. This 

 usually takes the form of a code of 

 regulations specifying what trees are 

 to be cut, the care to be taken in the 

 felling and removal of the timber and 

 - matters. 



These cutting regulations are. of 

 course, drawn up in advance of the 



e. and the prospective purchaser 



