The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1913-07-28
FOREST INCOME
SHOWS GROWTH
Demand for Timber Barometer of
Commercial Activity

Washington. July 2S.-The national
forest business done during the fiscal
year which ended June 30 surpassed all
previous records. The receipts from
the forests approached 81, 500, 900, of
which about one-half was for timber,
while contracts entered into for the
sale of timber to be cut either al once
or In later years totaled about $4,000
900. These sales contracts permit the
cutting period to extend over "a num-
Der of years when large bodies of tim
Der are involved.
Under existing laws 30 per cent of
the gross receipts, or between $500, 900
and $4,000 will go to the benefit of
the states i'm which the forests are
situated. for schools and roads.
The records show that the volume of
sales contracted for in different years
iiuctuated widely, with ups and downs
according To general business condi-
tons. while the actual cut has shown
Il fairly steady tendency to advance.
In the fiscal year 1906 July 1, 1905 to
June 80, 1900, the first full year after
the forest service was put i'm charge
of the forests, the timber receipts were
about S25O.000, in the fiscal year 1907
something less than 100000, and in
1905 about ss50,OO0 In 1909 timber
receipts dropped back to less than
s750.000. but i'm 1910 and again in 1911
were over s1,00O,0OO. and i'm 1912 were
nearly $1l00.000. as against about
$125O,000 for the year just closed.
Commercial Barometer.
Forestry officials say that the prin-
cipal factor in determining how much
timber will be sold i'm any given year
is the general lumber market, which
in turn depends largely on general
business conditions. Thus, when indi-
cations are that "A period of brisk de-
mand is ahead, with increased build
ing activity, railroad construction, min
ing development, and other forms of
business expansion that call for lum-
Der or timber, operators are seeking
contracts. When business halts lum-
bermen naturally so slowly i'm the
matter of committing themselves by
new purchases on large scale. Some
cutting under earlier purchases and
small sales continues even in periods
of depression. The gradual diminu-
ton of outside sources of supply and
the steady development of the country,
which create increased local demands,
tend to offset the effects of such
periods.
AS an illustration of this the fig
ures for 1907 and the Immediately fol-
lowing years are cited. In the fiscal
year 1907 the forest service sold more
timber than has been sold in any later
year prior to that just closed Con-
tracts were made covering over a
billion feet. board measure. But in the
fall Of 1907 came business panic, fol-
lowed by inactivity. Sales in 1908 dis
posed of less than 400 million feet, and
in 1909 of less than 300 million In both
these years more timber was cut under
sales than was disposed of through
new sales. The difference was the re-
suit of cutting under the contracts Of
tarlier years.
Increase Year by Year.
Last years sales of over $4,000. 900
worth of timber does not necessarily
mean prospective income from tim
her of this large amount i'm the i'm
mediate future. bring this about
there would have to be a series of big
sale years. The present year may or
may not see sales equal to those Of
the last. While general market con-
ditions are at present less favorable to
large commitments than they were six
months ago, the aggressive sales policy
now i'm force, with its opportunities
for long term purchases on fair terms
where sales are possible in no other
way. will probably counterbalance to
a greater or less degree influences that
may tend to check sales. The need
Of the country for national forest tim
Der is growing and every year brings
normally more of this timber within
the radius of effective demand. The
yearly cut and the income from the
forests can reasonably be expected to
rise in the future as IT has been rising
however the number of sales contracts
mayfluctuate