Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1929-01-31
Forest Income Increasing
Each Year Counties Get
25 Per Cent Gross Receipts

NATIONAL forests are now contributing
three times as much as if taxed and
these contributions will increase
steadily as forest resources come to be
fully utilized under an economic process
of development, according to a study
made last year to determine the actual
relation of the national forests to local
development and finances that was made
by Fred Morrell, district forester of the
United States department of agriculture.
A memorandum of the facts derived
from the study has been furnished oun
ty boards of commissioners by Mr.. Nor
rell, who in an accompanying letter
stated that ever since national forests
were established the question Of their
benefits or otherwise to local people has
been one of lively interest.
Varied Opinions
Naturally" he declares, many diff
ferent opinions exist n proposals have
been made that the national forest sys-
tenn be changed or abolished. The ad
visibility Of turning the forests over tc
the states has been advocated. Others
lave suggested opening them up to pri-
vate acquisition, while still others plead
that a large share Of the receipts from
timber sales and other uses be turned
over to the states or counties.
These are questions Of serious i'm
portance to the people of this state and
1t has seemed to me that every one
should have a chance to know the facts
which have a direct bearing on them"
In a summary to the memorandum, Mr.
Morrell declares that national forests are
contributing three times as much now
as if taxed; these contributions will in
crease steadily as the forest resources
come to be fully utilized under an eco
nomic process of development and. If pri
vately acquired, much of the national
forest lands would ultimately revert to
public ownership after the timber is cut,
and meanwhile many major benefits of
public ownership would be lost or i'm
paired.
The summary further recites that the
federal government, in its 25 per cent
payment of gross receipts to the coun-
ties, is making q far more liberal return
than any industry could stand, and II
the states acquired national forests they
would assume a heavy financial burden
and federal forest road appropriations
would 10 doubt cease at once. 1t is
further asserted hat there is ample OPP
portunity and obligation for the state tc
enter the forestry business.
Concerning the proposition that ma
tional forests pay no taxes. Mr.. Morrell
declares that the forests comprise less
than l6, 900 900 acres or IT per cent Of
the "a ,000, 900 acres in the state and &C.
cupy rough. mountainous lands which
up to the time of withdrawal OF thu
forests % years ago had been rejected
by prospective claimants either for tim
Der or farm lands. Unde the law, q
per cent of the gross derived
was returned to the state for distribution
among counties in which forests are 10
Gated. For the f~ve-year period from 1872;
TO 1928, this averaged $67,432 and thu
total receipts averaged S269, 808. An ad
ditional 10 per cent of the receipts wa!
expended for roads and trails.
During the same period, the direct APP
preparations Of federal funds for road
md trails in adjacent to Montana ma
tional forests, including the 10 per cen
fund, averaged 81 ,036,698 a year.
Lists Benefits
Regarding the indirect contribution
of national forests to local communities
Mr.. Morrell's survey shows that Che an
nual cash value of the benefits was $43,
$40 by estimates. The benefits included
free permits for timber for home use b,
settlers and prospectors, sale of timbe
at cost to farmers and settlers for i'm
provements on their farms, issuance 0
free grazing permits for milk and worl
stock for each resident rancher in or ad
jacent to forests and propagation ant
conservation of fish and game
Consequently, 1t is stated, the expendi
lures for roads and trails, the paymen
Of 25 per cent of gross evenue to tn
state INC the indirect contributions ar
equivalent to a tax of slightly more thai
seven cents per acre for all national for
est lands, including barren, non-timberet
n non grazing lands.
In order to establish a comparison be
tween this sum of 81 148 900 a year ant
tax revenues if the lands were taxed. tn
forestry service made a thorough stud
to determine the yield Of national fores
land IL taxed on the same basis as simila
property in private ownership.
AS a matter of fact, according to MI
Morrell, a most liberal classification
shows only 2,686, 212 acres out of tn,
total area of 1919, 558 acres to be in tn
taxable category, while the balance o
ID 1888 ,346 acres consists of non merchant
able stands of young growth. brush land
and area above the timber line. TIN
probable annual tax returns on the 2,
686,2l2 acres, referred to possible place
ment in the taxable category, would b
about $341 $40.
AS a contrast, 1t is estimated hat Whel
the national forest timber and other re
sources are fully utilized the annual re
turn to the counties under the 25 pc
cent fund will be approximately s242 ,00
and the total return to the state ant
county will approximate ST. 400, 600
year.
Concerning the proposition that state
are entitled to a large share of the ma
tional forest receipts, Mr.. Morrell cite
that the gross receipts nave at no tim
equalled the expenditures, which actual,
average four times the receipts. The rec
ord for the five years from 1928 to 1872
shows total receipts of $1,349, 039 a
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