Several possible avenues for such action exist; 

 it might be done through a federally sponsored 

 corporation, or through a federally owned corpora- 

 tion. If Federal aid becomes necessary, its exten- 

 sion should be predicated upon observance of 

 satisfactory forest practice on the part of the private 

 owners benefited. 



Instability of Markets for Forest Products 



Lumber from this region is almost entirely dis- 

 tributed in domestic markets, most of which are 

 distant: exports are a negligible factor. Compared 

 to some other forest regions, the element of in- 

 stability represented by a fluctuating foreign 

 market is absent or at least of little importance. 

 Ponderosa pine lumber prices are less sensitive 

 than Douglas-fir, but are much more sensitive 

 than many other commodities. The general feel- 

 ing of uncertainty of future markets is current 

 among lumber manufacturers in this region, as 

 in other forest regions. A large part of the lumber 

 produced in this region is used in the manufacture 

 of box shooks. Competition of paper box containers 

 and other substitutes for wooden boxes is a con- 

 stant threat. The bulk of the remaining produc- 

 tion is used in building construction where the 

 threat of wood substitutes is also present. Owing 

 to excessive cost of transportation, marketing of 

 lower grades of ponderosa pine is restricted. 

 Dependence upon the box-shook market for dis- 

 position of the low-grade material is unsafe. 

 Other uses and wider markets for this material 

 must be found. Continued research is needed on 

 reduction of manufacturing waste, development of 

 new products, and general diversification of 

 products. This should be coupled with expansion 

 of utilization extension. These activities should be 

 undertaken jointly by public and private agencies. 



Conclusions 



The ponderosa pine region offers encouragement 

 to private forestry in many respects, in spite of 



the obstacles previously discussed in this report. 

 Its products enjoy a comparatively stable market. 

 Grazing under proper management offers a stable 

 secondary revenue. Fire-protection costs and fire 

 losses are relatively low. Satisfactory growth rates 

 can be obtained through methods of cutting that 

 also have many economic advantages. Existing 

 private holdings are fairly well consolidated. 

 Public timber is so located and of such character 

 that it can be used to stimulate private forestry in 

 many cases. 



A serious problem in this region is maldistribu- 

 tion of forest industries in relation to forest-land 

 productive capacity. There are no geographic ob- 

 stacles which prevent correction of this situation 

 or give one part of the region great advantage 

 over another with respect to transportation. 

 Difference in quality of timber stands, however, 

 has been an important factor in the concentration 

 of forest industries. 



It is improbable that private initiative alone 

 will correct the liquidation process and coordinate 

 the industrial capacity of the forest land so as to 

 produce raw materials permanently in this region. 

 The program presented by the Forest Service to 

 the Joint Congressional Committee on Forestry 

 established by the Seventy-fifth Congress (S. Con. 

 Res. 31) contains measures of Nation-wide appli- 

 cation designed to correct critical situations such 

 as obtain in this region. Measures of special signi- 

 ficance to this region are those relating to (1) cooper- 

 ative protection against forest insects and disease, 

 (2) public credits to owners of forest land, (3) 

 utilization research and extension, (4) cooperative 

 sustained-yield units, (5) public regulation, and 

 (6) extension of public ownership. 



A program for specific action in this region, to 

 be of highest value, should be based on analyses 

 of local situations, such as it is now planned to 

 present in a series of reports analyzing in consider- 

 able detail forest problems of smaller units and 

 recommending specific remedial measures. 



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