FOREST TAXATION IN THE UNITED STATES 257 
some money if taxes had been reasonable. [A. L. Osborn, a lumberman of 
Oshkosh, Wis.] 
Taxes have been a factor, but in few cases in my judgment have they been 
anything but an average factor, not a major one, so to avoid the charge of propa- 
ganda I feel no large issue should be made of taxes as in compelling overproduc- 
tion. [R. W. Vinnedge of the North Bend Timber Co., North Bend, Wash. Mr. 
Vinnedge made the following amplification of this statement in later correspond- 
ence:] I think, however, that this statement should be qualified to except the 
cases of very large timber holders who have suffered a great deal by reason of 
excessive carrying charges. Such companies, which represent the “few cases”’ 
mentioned in my statement have had a pyramiding of all sorts of taxes during 
the number of years they have held their stumpage and I am inclined to believe 
liquidation of their holdings has been hastened by reason of the tax charge added 
to other carrying charges. 
Further expressions of opinion on this point were obtained by the 
Timber Conservation Board in 1931. A few representative opinions 
of timberland owners, selected from this testimony, are here presented: 
Timber taxes have been a very material consideration in the management of 
mature forests and an important cause of overproduction. 
To refer to our own experience, I can recall at this time at least three cases 
wherein we had to decide whether to continue operations over a period of years at 
a normal rate or speed up the cutting and materially shorten the life of the plants. 
The tax situation in each case was the decisive factor that caused us to increase 
production and cut out as rapidly as we could. In another case we were in- 
fluenced finally to sell a choice tract of timber because of mounting taxes and the 
sale necessarily entailed immediate operation. 
At the present time our operations here in the Northwest are on a basis of 37.5 
percent of our former running time and we are not selling our production and have 
twice the stock on hand that is necessary to successfully conduct our business. A 
more radical reduction in our output is urgentiy needed, but this does not seem 
possible of accomplishment because of the pressing need of funds to meet certain 
obligations, of which the payment of taxes is one of the most important. We are, 
therefore, continuing to sacrifice our capital assets for it is common knowledge 
that we and all other owners of timber in the Pacific Northwest and probably 
throughout the entire country are not nearly realizing through conversion the 
cost of our timber properties. [J. D. Tennant of the Long-Bell Lumber Sales 
Corporation, Longview, Wash.] 
Our opinion is best supported by calling * * * attention to the situation 
which confronts us today in Clatsop County, Oreg. We have in that county a 
logging operation and sawmill supported by 800,000,000 feet of timber, which at 
our normal rate of production would last us from 8 to 10 years. With the excep- 
tion of one company which owns considerable pulp timber, the owners of the other 
larger tracts of timber in the county will under normal conditions cut out in about 
the same period. The port of Astoria, which includes all of the county, has a 
bonded indebtedness of about $4,000,000, and, with the exception of a small 
amount of agricultural land, timber i is the only property of real value in the county. 
The port is now so hard pressed for funds that it will have to default on January 1 
on its bond interest and the bondholders will be faced with the necessity of nego- 
tiating with the taxpayers for a reduction of the indebtedness to a point where it 
may be possible for the port to pay out. Under these conditions could anyone say 
that the tax burden is not a compelling force in the cutting of timber? It is 
perfectly obvious that no owner of timber who is faced with a certain and rapid 
increase in tax rate will sit idly by and permit other owners to liquidate their 
timber if there is any possible chance for him to do so himselt. Every owner in 
that county is going to cash in as rapidly as possible * 
The tax burden is undoubtedly an important and alco factor forcing 
timber onto the market at too rapid a rate. [A. R. Watzek of the Crossett 
Western Co., Portland, Oreg.] 
At the time of the investigation of the Select Committee on Reforest- 
ation of the United States Senate in 1923, those representatives of the 
various forest industries who mentioned ‘taxation in connection with 
its effect on the rate of cutting mature timber numbered 16. Of these, 
13 stated that taxation hastened cutting of mature timber, the other 
101285°—35—17 
