24 THE USE BOOK. 



installments are allowed, sufficient usually to cover the cut of one or two 

 months. (Reg. S-C.) As soon as one installment is exhausted the purchaser is 

 requested to make another. 



This arrangement makes it possible to secure large tracts of National Forest 

 timber at a very slight initial outlay and to hold them with almost no interest 

 charges. The other usual carrying charges, taxes, and. fire protection are 

 eliminated. The timber is protected from fire by the United States throughout 

 the life of the contract. 



Requests for postponements of payments can not be considered. In sales of 

 $100 or less the full amount will as a rule be required in one payment in 

 advance of cutting. 



Money deposited to cover cost of advertisement or to secure advance cutting 

 may be credited toward the amount to accompany bid. 



REFUNDS. 



Deposits to cover cost of advertising and to accompany bids apply on the 

 first payment, if a sale is awarded to the depositor; otherwise they will b 

 refunded. If, however, an examination is made and timber advertised as a 

 result of an application and the applicant fails to complete the purchase, a 

 sum sufficient to cover the cost of making the examination and advertising the 

 timber may be retained, at the discretion of the officer approving the sale. 

 (Reg. S-4.) Refunds to bidders will be made in Class C sales on vouchers 

 prepared by the supervisor and in Class D sales on vouchers prepared by the 

 district forester. 



If a purchaser who has deposited money in a timber sale afterwards violates 

 any of the terms of his contract, an amount sufficient to cover damages caused 

 to the United States may be withheld from the refund otherwise due him. 



Purchasers who have complied with the terms of their contract and have 

 cut all the designated timber from, -the sale area are entitled to the refund of 

 any balance they may have on deposit. (Reg. S-5.) When a contract is can- 

 celed by mutual agreement a refund of the amount not due the United States 

 may be made, provided the terms of the contract have been complied with. 

 Generally speaking, all money not due the Government on any transaction will 

 be refunded unless the purchaser has willfully neglected to remove his timber 

 within the time specified, or has been negligent in carrying out the terms of 

 the contract. Refunds of $1 or less will not be made unless the purchaser 

 definitely requests it. Refunds can be made only to the original depositor or 

 his executor or administrator, and in the latter case an exemplified copy of 

 letters testamentary or of administration must accompany the voucher. The 

 original will be executed by the depositor or his legal representative. 



DETERMINATION OF STUMPAGE RATES. 



The minimum stumpage rates applicable in each proposed sale are determined 

 by a careful study of the conditions in the particular case. A careful estimate 

 of the cost of operation is first made. This includes the cost of brush disposal, 

 cutting snags, and other special requirements of Forest Service contracts. If 

 not already at hand, the average selling price of the manufactured material is 

 ascertained for the locality in which the product will be marketed. A deduc- 

 tion is then made to assure the purchaser a profit at a reasonable rate upon 

 his investment. The rate of profit will vary with the degree of risk involved. 

 The stumpage rate for each species is then determined by deducting the cost 

 of operation and the profit from the average sale price. 



PERIOD OF CUTTING. 



Ordinarily the cutting period allowed in each sale will be only sufficient to 

 permit the removal of the timber at a reasonable rate, approximately equivalent 

 to the working capacity of the plant. Sales of accessible timber usually do not 

 exceed five years in length. However, in the case of inaccessible tracts requir- 

 ing a large investment for transportation facilities an exception may be made 

 and longer cutting periods granted. (Reg. S-13.) 



BEADJUSTMENTS OF STUMPAGE RATES BY PERIODS. 



In all sales exceeding five years in length provision will be made to have 

 the stumpage rates readjusted by the Forester at the end of three or five year 



