Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1912-09-20
sl.5o PER ANNuN.

not be opening the way to monop-
oliStic control of local lumber markets.
Other correspondents are disturbed
lest the sale prove bad bargain for
the Government through the rise In
value of the timber in the twenty
two years during which the com pany
will cut.
'Such large and longtime sales of
National Forest timber as that to
the California CONF pany are a new
development in the Forest Service.
Great bodies of mature but inaccessi-
BILE timber can be put on the market
only if sale contracts are let on terms
which will Justify very heavy in
itial investment in transportation
facilities. In entering into such con-
tracts, however, special safeguards to
protect the public against monopoly
and to prevent an undue speculative
profit to the purchaser are employed.
1.-THE National Forests contain, in
all, the equivalent OF nearly 900 bill
lion feet of timber now of merchant
able size, besides young growth for
future harvest. Because of it's remot-
eness from market and the wild,
mountainous country, without trans
portation facilities, in which most of
it lies, only small percentage can
now be sold on any terms. Most of it
would cost more to get it out than 1t
would bring. The sale of less than
one-tifth of one per cent of our total
supply to one company leaves plenty
of room for competition by other COM
panies.
"The timber which, has been sold to
the California company lies we'll back
In the Sierra Nevada Mountains and
will require the construction Of 10
miles of standard-gauge railroad to
open up the area. Since this road
will also open up other National
Forest timber and will be a common
carrier, 1T creates another safeguard
against monopoly. The company is
given cutting period OF twenty-five
years to remove the timber, besides
an additional two years for the con-
struction of logging and manufactur-
ing facilities The sale was publicly
advertised for six months in order to
give an opportunity for all VINO wish
ed to complete for the contract to
make bids, as is done In all large Ma
tional Forest sales.
"No business organization would
undertake the heavy Investment nec-
essary in such cases unless the hand
ling of d large body OF timber and q
sufficient period in which to remove
it under practicable logging condi-
tions are assured. The great difficulty
in making such long-term sales is TO
establish price which will be fair to
both Sides No one can fore-see future
conditions well enough to know what
stumpage will be worth ten, fifteen,
or twenty years hence.
consequently the terms of sale
provide for the readjustment Of
stumpage prices every five years. The
basis for fixing the prices will be, In
each case, the prices OF manufactured
lumber in the markets where the
tim Der is sold during the preced ing
two years.
"For several years the Forest Ser
vice has been selling in the neighb0r-
hood of a million dollars worth of
National Forest stumpage per year,
but this combined with what Is cut
for free use is only about one-eighth
of what might be cut without reduc-
ing the permanent stock Of the
Forests. The supply will be kept up
through growth. BY making long
term sales it will be possible greatly
to increase the amount available for
present needs of the timber consum-
ing public, without endangering fu-
ture supplies through overcutting. It
will always remain true, however,
that vastly the greater part of our
timber sales will be to small pur-.
chasers, who are favored wherever
possible. Monopoly is impossible as
long as the door is kept open for such
purchasers. Out of over $500 sales
made in the fiscal year 1911, about
forty were for over $4,000 worth of
81 Lor a 81; ,,,,robacor