Another factor tending to discourage sustained yield is 

 that most of the sawmills are large -too large in the aggre- 

 gate for the present productive capacity ot the forest. 

 The investment in these mills is in proportion to their 

 size. Thus, the necessity for a large production of lumber 

 to support the heavy depreciation charges has been and 

 to a certain extent still is one ot the causes for overcutting 

 the resource. 



What conclusions can be drawn regarding private 

 forestry in northern Idaho. ^ There are several. 



(1) It appears that liquidation is hard to beat on finan- 

 cial grounds for a property containing much merchantable 

 timber. To maintain a continuous production, the opera- 

 tor would be obliged, because of the lengthv rotation, to 

 spread his present saw timber over too long a period. 



(2) \\ hile taxes and fire-protection costs fall tar short ot 

 being make-or-break factors between sustained-yield 

 forestry and liquidation, they are important. 



(3) There is probably an inherent desire on the part of 

 most lumbermen to stay in business as long as they can. 



(4) Since in the long run the public rather than the 

 lumber industry is the principal gainer from sustained- 

 yield forestry, every effort should be made to whittle 

 down the margin between liquidation and sustained yield 

 to the pomt where the private operator can see his way 

 to stay in business. Equitable taxation and increased 

 public aid for fire protection to the individual wishing to 

 engage in permanent forestry are both proper steps in this 

 direction. 



(5) Conditions undoubtedly exist wherein the gap be- 

 tween liquidation and sustained-yield forestry is not so 

 wide. For example, suppose a mill operator owned part 

 ot the timber in a particular management unit and the 

 public owned the rest. He might find it to his advantage 

 to embark on sustained-yield management if he could be 

 assured that a certain volume of public timber would be 

 available tor his mill. It is to be expected that there will 

 be increasing opportunity for cooperation of this .sort in the 

 future. 



(6) More intensified management offers another means 

 ot reducing the trend to liquidation. The advantages of 

 partial cutting are very marked in the case developed by 

 Davis, it should be remembered, however, that in this 

 example the yields are about as high as may be founii over 

 an extensive area. .Moreover, the forest was assumed to 

 be in a regulated condition; that is, the species composi- 

 tion and the size and age of timber were such as would be 

 found after many years ot management. The current 

 margin lictween the 1-cut and 4-cut systems would 

 probably be much less tor a person starting with a wild 

 forest. 



In view ot all this, it can be said that probably a very 

 large part ot the remaining private merchantable saw-log 

 timber will be liquidated; that all of the possil>i!ities for 



promoting private sustained-yield forestry have not been 

 fully exploited; that the best opportunities for permanent 

 private forestry are in areas with a fairly heavy volume of 

 western white pine per acre. 



Go'vernmenf Participation Necessary 



If the markets for the forest products of northern 

 Idaho were to evaporate suddenly, private forest owner- 

 ship and responsibilities would tor the most part cease 

 just as quickly. The individual is concerned primarily 

 with making a living. But, revenues or no revenues, the 

 public's responsibility for the condition ot the forest 

 cannot be ignored. The government must continue to 

 protect the enormous assets in wooded watersheds and 

 recreational facilities, though the costs be heavy. Prin- 

 cipally, this is a matter ot fire protection. .Although it is 

 difficult to measure the complete value of green stands, 

 tew will deny the reality of the public obligation to keep 

 the forests green. 



Shall the public obligation be considered, however, to 

 go beyond the minimum expenditure necessary to keep 

 the forest green and to include the spending of additional 

 money for the purpose ot improving its financial produc- 

 tivity? For example, not a tew have questioned the 

 wisdom ot the Federal Government's engaging in blister 

 rust control activities. Unlike fire protection, blister 

 rust control can be justified only if the social and economic 

 returns from western white pme timber utilization exceed 

 the cost of protecting this timber from disease. 



It is evident from the preceding financial calculations 

 that the private forest owner could not carry blister rust 

 control costs in addition to his other expenses. Money 

 now spent by him in the control of this disease represents 

 an investment locked in growing stands for probably 50 

 years or more — an investment which must return itself, 

 plus a reasonable rate of interest. Government invest- 

 ments on the other hand, may be judged not only by the 

 tangible direct returns but also by the indirect and largely 

 intangible returns in the form of greater opportunities 

 tor the members ot society as individuals. If the judg- 

 ment ot the pathologists is sound in its essentials, and this 

 must be assumed, it is a choice between blister rust control 

 with a permanent white pine industry, or no blister rust 

 control and some day no white pine industry. The com- 

 parison is, therefore, more than one ot control costs against 

 eventual stumpage returns. The loss ot wages and em- 

 ployment, plus the social losses in disrupted communities, 

 must be considered. 



Because ot unknown factors which must be dealt with 

 arbitrarily, the making of financial calculations which 

 reach far into the future involves the risk of later appear- 

 ing ridiculous. Yet, no sound action program can be laid 

 out without attempting to evaluate fviture results. Recv>g- 

 nizing those lumriruiTw, ir will Iv ^h.iwn rli ir 'Sc- i^-ni' 



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