128 REPORT OF THB FORESTRY COMMITTEE 



Whenever the forest is given up or is not maintained according to the 

 standard set by the law as determined by the State forester, the property shall 

 then become subject to the ordinary property tax, after all payments of yield taxes 

 due have been made to the State. 



3. Administration. The discussion of administrative problems which has 

 already been given in connection with the plan for taxing "new forests" applies 

 equally to the plan here proposed for taxing "established forests." 



WESTERN CONDITIONS (Taxing Mature Forests— Continued) 



THE most notable peculiarity of the Pacific coast mature timber problem, in 

 addition to the relative great dependence upon forest taxes of such heavily 

 timbered States, is the existence of huge supply that cannot and should not 

 be logged for American consumption for a long time to come. It is not needed 

 yet and the cost of its transportation to the main centers of demand makes its 

 competition with nearer supplies exceedingly limited at present. But carrying 

 costs are so great that much of this timber seemingly cannot be carried until 

 needed without a cost beyond what lumber will be worth. The welfare of the 

 consumer demands not that this timber should be manufactured prematurely but 

 that it be held, while the tendency of unwise taxation is to hasten wasteful 

 cutting for the highest grades only and for foreign export. 



While it is becoming apparent that carrying charges are soon to enforce 

 wasteful and premature cutting in Pacific coast forests unless stumpage prices 

 advance more rapidly than they promise, there are serious local obstacles to the 

 adoption of the theoretically remedial yield tax. Chief of these are the immense 

 storage of timber in excess of true demand, the irregular distribution of cutting, 

 and the necessity of fixed revenue where cutting is small. However practicable 

 the yield tax may be when in general and permanent operation, it is essential, to 

 bring about the transition without too great disturbance, to bridge the lean period 

 while cutting is still mostly in the future, and to equalize between counties with 

 greatly differing cutting rates at present. For some time to come there must be 

 expedients to solve these difficulties and it would seem that these must : 



(a) Make the transition gradual by having it optional with the forest owner 

 whether he continues the present system or adopts the new, under an arrange- 

 ment which properly protects the community and gives relief on the class of forest 

 land needing it most — that not to be cut soon. 



(b) Let the State act as equalizer and banker between the forest counties, 

 affording a medium by which the heavily cutting counties of today contribute the 

 excess above their needs to the counties whose present revenue is reduced by the 

 system, in turn receiving assistance when they are cut out and the now unex- 

 ploited counties become the chief collectors of yield tax. 



(c) In case the above plan still leaves shortage of revenue for a few years, 

 due to insufficiency of cutting to make a total yield tax equal to the total received 

 under the present system, let the State issue bonds annually to the amount required 

 to make up the deficiency, these bonds to be paid at such future time as the yield 



