and the maturing of the second growth on the lands 
they now own. Selective logging of the remaining 
old-growth timber where feasible would greatly 
assist in the establishment of conditions more favor- 
able to sustained yield. For the region as a whole 
the forests are far from being in a normal condition, 
that is, a condition of even representation of the 
various age classes. Figure 41 shows the very un- 
even acreage distribution of the four major size 
classes of timber and figure 9 (p. 24) shows that of 
10-year age classes for the types less than 20 inches 
d. b. h. In general, progress toward sustained 
yield on a strictly private-ownership basis would in- 
volve blocking up of private properties either through 
mergers or through direct acquisition. 
In a large part of the region the ownership pattern 
is so complex that the initial step in establishing 
sustained-yield practice on private lands depends 
mainly upon the integration of policies and pro- 
cedures of the various public agencies administer- 
ing forest land. In the spruce-hemlock coastal 
districts, and possibly in the Douglas-fir forests in 
southwestern Washington, public lands are less 
important and the pattern of private land is such 
that the integrating of public lands and policies 
is not of vital concern. 
A few private owners of forest land who have 
serious intentions of owning and operating their 
lands continuously are selecting the areas of better 
site and second-growth conditions from their cut- 
over land and dropping the remainder. 
Factors Influencing Liquidation of Private Ownership 
The principal reasons given by owners of most 
timberland other than farm land as to why they 
are not interested in holding forest property beyond 
the time when they can liquidate their present 
stumpage are as follows: 
1. Taxes (ad valorem property tax and Federal estate 
tax). 
2. Risk of loss of capital investments through fire, insects, 
wind throw, and disease. 
3. Uncertainty of future markets for wood. 
4. Other investment fields more attractive. 
5. Difficulty of financing. 
6. Extent of public-owned forests 
TAXES 23 
The tax problem of forestry in the Douglas-fir 
region, and elsewhere in the United States for that 
126 
STATE AND 
SIZE CLASS NATIONAL FOREST 
OTHER LANDS 
WESTERN 
WASHINGTON 
20+ in.D.B.H | 
160 + Yeors 
20 iniDIB\H| eon (eee lesen 
O —160 Yeors 
6-20in.D.BH} }------4-------t------ == 
Ok="6)i0 DAB A igen {EP SORCs REeCC Ces Ha Saa 
WESTERN 
OREGON 
20+ in. D.B.H. 
160+ Years } 
20+in DBH 
O - 160 Yeors 
6-20in.D BH.) |-------4------- 
0 - 6in DBH) be------fo---2-- Janene en geo =e} S 
4 3 2 1 ° 1 
MILLIONS OF ACRES 
2 3 4 
Ficure 41.—Size-class distribution of timber in the Douglas-fir 
region 
matter, is concerned chiefly with the property tax. 
The only other taxes which may handicap forestry 
more than other enterprises are those imposed on 
transfer of property at death. Under some cir- 
cumstances, continuity of ownership, which is 
generally conceded to be favorable to good forestry 
practices, may be interrupted by the necessity of 
paying the heavy inheritance and estate taxes 
levied by the State and Federal Governments. 
No systematic study has been made of this subject 
under present conditions, however, and therefore 
further discussion of the forest-tax problem will be 
confined to the property tax. 
The weight of property taxation is in large meas- 
ure determined by the extent to which State and 
local governments rely upon the property tax to 
meet their revenue requirements, the need for local 
revenues as affected by organization and function- 
ing of local government, and the manner in which 
the property-tax burden is distributed among 
classes of property and among individual owners. 
What is the present situation in the Douglas-fir 
region of Oregon and Washington in respect to 
these factors? 
23 For a detailed presentation of the forest tax problem 
refer to Miscellaneous Publication 218, (4). For a brief 
treatment, see Circular 358, (6). 
