20 



THE USE BOOK. 



received. The period of advertising will be at least 30 days, and in large sales 

 may be 90 days or 6 months. Forms for bidding will be furnished to the 

 original applicant and others who signify their intention to bid. 



DEPOSIT WITH BID. 



A deposit is required with all bids to show the good faith of the bidder. In 

 large transactions it is usually from 3 to 5 per cent of the purchase price. 



AWARDING A SALE. 



On the date specified in the advertisement the supervisor (or district forester) 

 opens all bids received and awards the sale to the highest bidder. A sale con- 

 tract is then prepared and executed by the purchaser. 



FINANCIAL STANDING OF APPLICANT. 



A specific statement of financial ability will be required in all sales of 

 30,000,000 feet or more and in smaller sales in the discretion of the approving 

 officer (Reg. S-14). Such a statement may be required when necessary in 

 the judgment of the approving officer before the approval of a sale application, 

 either formal or tentative, and in any event before the timber is awarded to 

 the successful bidder. 



BONDS. 



The contract must be supported by a suitable bond given by two responsible 

 sureties or by a surety company authorized to do business with the United 

 States (^Reg. S-14), The following table indicates the amount of the bond 

 to be furnished : 



Iii sales exceeding 100,000,000 feet the amount of the bond required is ap- 

 proximately 5 per cent of the value of the timber at the initial stumpage rates. 

 For bonds in connection with steam sawmills, see p. 68. 



THE SALE CONTRACT. 



The sale contract contains in full all the conditions under which the cutting 

 is to be done. 



General stipulations. 



In all sales of National Forest stumpage the contract provides that no timber 

 shall be cut until it has been paid for, and that it shall not be removed until it 

 has been scaled by the Forest officer. All live timber will be marked or other- 

 wise designated before cutting, and any merchantable timber utilized for im- 

 provements will be scaled and paid for. The maximum stump height ordi- 

 narily is 18 inches, and merchantable timber must be used to a specified diam- 

 eter in the tops, which is adjusted for each species in accordance with local 

 manufacturing and market conditions. The officer in charge of the sale is 

 authorized to vary the stump height and top diameter in individual cases when 

 those specified in the contract are not practicable. Tops must be trimmed up 

 and, as a rule, brush must be piled and burned, or burned without piling, 

 under the direction of Forest officers. Merchantable timber which is not cut 

 and removed, and unmarked trees which are cut, must be paid for at double the 

 specified stumpage rates. 



All camps, buildings, railroads, and other improvements necessary in logging 

 and manufacturing the timber may be constructed upon National Forest land 

 without charge. Railroads which open up inaccessible regions may be required 

 to be made common carriers or to transport logs or lumber for other purchasers 

 from the Government at reasonable rates. 



