TIMBER SALES, TIMBER SETTLEMENT, FREE USE. 25 



intervals. The readjusted prices will be based upon increases in the average 

 selling price of the lumber. A certain percentage of the increase in the average 

 selling price during the two years preceding each readjustment will be added 

 to the initial rates by the Forester, fixing the price for the next three or five 

 years. This proportion is always specified in the contract and is intended to 

 allow the purchaser a sufficient part in the increase in selling price to cover 

 any possible increase in the cost of production. The readjustment provision 

 will be varied in specific cases to make the contract equable for the purchaser 

 under actual conditions as to amount of investment, estimated profits, risk, etc. 

 Contracts may be modified to prevent unnecessary hardships to purchasers, 

 when such modification will not cause damage or loss to the United States. 

 No Forest oflicer can modify a contract verbally. (Reg. S-7.) 



ADMINISTRATION OF SALES BY FOREST SERVICE. 



The chief objects of timber-sale administration are to obtain complete utiliza- 

 tion and to leave the sale area in the best possible forest condition at a minimum 

 cost to the Service. Operations must conform to reasonable requirements in 

 the interest of economical administration. Scaling or measuring timber must 

 be made possible without unnecessarily frequent visits by a Forest officer. 

 Cutting will be required in amounts to permit this principle to be applied. 



CANCELLATION OF CONTRACTS. 



Contracts may be canceled by mutual agreement when for valid business 

 reasons the purchaser becomes unable or unwilling to continue operations, 

 provided no loss or damage to the interests of the United States will result 

 from such cancellation. 



Enforced cancellation may take place on account of serious violation of the 

 terms of the contract by the purchaser. This action is taken only by the 

 superior of the oflicer who approved the contract, and after the purchaser has 

 been given a reasonable time to show cause, in writing, why the contract should 

 not be canceled. 



MONOPOLY. 



Should any question of monopoly through the possible control of large quan- 

 tities of National Forest timber by affiliated operators arise, a certified state- 

 ment of the relation of the applicant or operator to other purchasers of National 

 Forest timber may be required. A certified statement of the membership of 

 firms and lists of stockholders in corporations may similarly be required. Lum- 

 ber companies already holding large amounts of timber on private lands may be 

 refused sales if there are any other purchasers, and companies having one sale 

 may be refused others until the first has been cut. 



TIMBER SALE REGULATIONS. 



Appraisal of timber. 



BEGULATION S-l. No timber shall be designated for cutting, by stamping or 

 otherwise, until the officer approving the sale is satisfied that the cutting will 

 preserve the living and growing timber, promote the younger growth, and be 

 compatible with the utilization of the Forest. Upon application for the purchase 

 of any timber or in any cases where timber is to be advertised in advance of 

 application such timber shall be examined and appraised, and the area from 

 which the timber is to be cut shall be described by legal subdivisions or other- 

 wise. The officer making the field examination shall report the quantity and 

 value of the various kinds of timber involved, and shall base his appraisal 

 upon the character of the timber, the cost of logging, transportation, and manu- 

 facture, and the sale value of the manufactured products at practicable markets. 

 (Issued October 31, 1911, to take effect December 1. 1911.) 



Authority to make sales. 



REGULATION S-3. The Forester is authorized to make timber sales for any 

 amount on any National Forest, provided the limit fixed by the Secretary for 

 any Forest is not exceeded by the year's cut, under sales and free use on such 

 Forest; and to delegate this authority for any specified amounts to the district 

 foresters, but in no instance to exceed 20.000,000 feet board measure. The 



