-ONSOLIDATION OF FOREST LANDS IN OREGON

ES | HEARINGS

BEFORE THE

COMMITTEE ON AGRICULTURE

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SIXTY-FOURTH CONGRESS

First SESSION

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FRIDAY, AUGUST 4, 1916

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CONSOLIDATION OF FOREST LANDS IN OREGON.

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CoMMITTEE ON AGRICULTURE,
Housk or REPRESENTATIVES,
Friday, August 4, 1916.

The committee met at 10.30 o’clock a. m., Hon. Asbury F. Lever
(chairman) presiding.

The Cuainman. The committee will Come to order. Gentlemen,
we have met this morning to take up again House bill 13046, a bill
to consolidate certain forest lands in the Oregon National Forest, in
the State of Oregon. By direction of the committee, I referred that
bill to the Secretary of Agriculture for report and have this morning
received hisreport. [ will ask that the clerk read his report and that
it be made a part of the record.

(Said report follows.),

Hon. A. F. LEVER,
House of Representatives.

Dear Mr. Lever: Receipt isacknowledged of your request for a report on bill H. R.
13046 to consolidate certain forest lands in the Oregon National Forest, in the State of
Oregon. It is understood that your committee also wishes a full explanation of the
procedure followed in effecting such exchanges.

This bill proposes that for the purpose of consolidating forest lands belonging to the
United States within the Oregon National Forest, the Secretary of the Interior be
authorized, upon the recommendation of the Secretary of Agriculture, to exchange
upon the basis of equal value lands belonging to the United States in national forests in
the State of Oregon for privately owned and lying within the exterior boundaries of
the Oregon National Forest. Upon the consummation of any such exchange the lands
deeded to the United States shall become parts of the Oregon National Forest.

Section 2 of this measure apprpriates $6,000 for the purpose of carrying out the pro-
visions of section i.

The immediate reason for suggesting the introduction of this bill was to make it pos-
sible for the Federal Government to obtain conveyance of title to private lands in that
part of the Oregon National Forest forming the original Bull Run Forest Reserve and
embracing the source of the water supply of the city of Portland.

The Bull Run Forest Reserve was established by proclamation of the President,
dated June 17, 1892, under authority of the act of March 3, 1891, entitled “‘An act to
repeal timber culture laws, and for other purposes.”’

In order to obtain full protection of the source of the water supply of the city, Con-
egress passed the act of April 28, 1904 (33 Stat., 526). This act provides a penalty for
trespass on these lands by anyone other than Government officers and certain officials
of the State. In administering the Oregon National Forest this department has
endeavored to carry out the clear intent of Congress to maintain the purity of the
municipal water supply by preventing the use of the land within the Bull Run
division in any way which might pollute the water.

It appears, from the records of this department, that there were 21,422.11 acres held
in private ownership within the Bull Run division of the Oregon National Forest.
There were 10,706.47 acres of land within the grant to the O. & C. Railroad Co. The
title to these lands has been revested in the United States under the provisions of sec-
tion 1 of the act of June 9, 1916, Public, 86. This leaves 10,715.64 acres of privately
owned land within the Bull Run division. Of this amount, however, 2,068.6 acres
have been acquired by the city of Portland, leaving a total of 8 647.04 acres of land on
this watershed not in public ownership. These lands are distributed among 25
owners, the most extensive holdings being those of the Bridal Veil Lumber Co. (owning

3

4 CONSOLIDATION OF FOREST LANDS IN OREGON.

about 2,600 acres), the Crown Caifornia Pu'p & Taper Co. (owning about 800 acres).
W. ©. Goodfellow (owning about 1,240 acres), while the ba‘ance is distributed in small
lots ranging from 40 a-res upward. : be

The officers of this department have been working in harmony with the municipal
officials who have been endeavoring to ascertain the attitude of the owners of these
private lands toward an exchange of their holdings within the Oregon National Forest
tor lands not on this drainage area. Most of these owners have expressed a willingness
to consummate such an exchange. Some desire that the exchange shall be of lands of ~
equal value, while others have indicated a preference for selecting national forest
timber of equal value to the lands reconveyed. :

Considering the purpose for which the Bull Run Forest Reserve was established, and
the present administration of this area to protect the municipal water supply of the
city of Portland, this department would approved of eliminating the titles held in
private ownership. Since some of those desiring to exchange would prefer timber to
lands your committee may wish to insert the word ‘“‘land”’ in line 8, page 1 of the bill,
the words ‘‘or timber.’’. This recommendation has already been submitted to the
Senate Committee on Agriculture which has under consideration bill 8. 5515, the terms
of which are identical with those of the measure before your committee.

The desirability of obtaining public control of all the lands embraced in this water-
shed requires little explanation or argument. The lands are all heavily timbered and
if left in private ownership this timber will ultimately be cut and the slashings left
without protection from fire. It is desirable to maintain the uniformity of the forest
cover in order to regulate the water flow and maintain a supply at full volume and
highest palatability. Inaddition, it isdesirable to exclude human habitations and all
domestic animals from the area in order the protect the water from danger of pollution.
The security of the health of 300,000 people, whose lives might be menaced by the
pollution of their drinking water at its source, far outweighs consideration of volume
of supply or the immediate utilization of the relatively small amount of timber in-
volved. Unquestionably, the highest use to which this land may be put is that of
furnishing a pure supply of water for human consumption.

The general features of this measure have a great many legislative precedents.
General exchange bills for the following national forests have already received legis-
lative sanction: Kansas National Forest, Paulina National Forest, Ochoco National
Forest, and Florida National Forest. In addition, a number of special exchanges
have been authorized by Congress. At the present time there is pending before the
House a measure authorizing the exchange of Government timber for privately owned
land in the Whitman National Forest, which measure has been favorably reported by
the Public Lands Committee of the House; and, finally, the Senate has passed a gen-
eral measure authorizing exchanges of this nature involving privately owned land in
any of the national forests in the United States.

Some inquiries have been made regarding the procedure followed by the Forest
Service in consummating exchanges of this nature, after legislative authority is”
granted. The initial step will be for the private owner to submit an application,
expressing his willingness to effect an exchange, giving a description of his privately
owned land by legal subdivisions and stating the area of Government land which he
desires to select in exchange. A preliminary report is made by the forest supervisor,
or by his deputy or a forest examiner under his direction, and if from this report it
appears that such an exchange would not be in the interests of the public, even in
the event that the values are found to be equal, the application is rejected and the
applicant is advised of the reason it is not considered desirable to consummate the
exchange. The applicant may then amend his application by applying for Govern-
ment land so located or of such a character that an exchange would be in the public
interest. If the supervisor’s report upon the amended application indicates that the
exchange would be desirable, the district forester then directs that a valuation survey
be made covering the private land offered in exchange and the Government land —
applied for.

Such a survey requires the accurate location of the land, a careful cruise of the tim-
ber, and the preparation of a topographic map and descriptive report. The report
must show by legal subdivisions the amount, character, and sale value of merchant-
able saw timber by species, the amount of cordwood material, and the amount, age,
character, and condition of reproduction, elevation, and character of the topography,
and character of soil. It must show the value of the timber by thousand feet board
measure, the value of the cordwood per cord, and the desirability of the young
species from a silvicultural standpoint. It must also show the general productive
capacity of the land as a timber-producing area, together with the favorable or unfavor-
able characteristics of topography or location which may affect valuations. In the
report upon the privately owned land offered in exchange, the valuation survey will

CONSOLIDATION OF FOREST LANDS IN OREGON. 5)

show what administrative or other public advantages will be gained by the proposed
transfer, what obstructions to efficient protection and utilization will be removed by
such a consolidation, together with the objectionable features to the exchange itself,
if any appear.

Conversely, the report upon the Government land applied for in exchange will
cover the same points, which report contains a final summation of values, together
wa ie recommendations. The final recommendation is not necessarily a ‘“yes”’
or ‘‘no”’ decision upon the applications, but is usually a constructive solution of the
ceahianee problem, the recommendation stating that certain enumerated subdivisions
of Government land applied for have been found to be of equal value to the privately
owned land offered in exchange, that an exchange upon such a basis would be desir-
able, and that the applicant should be advised that his application must be rejected
as to the remaining areas before a favorable consideration will be given to an exchange.

Where the area involved is small and the work can be done with the regular force
without additional assistance, the valuation survey is usually made by the forest su-
pervisor, a deputy supervisor, or forest examiner, all experienced men, This report
must receive the approval of the forest supervisor and is then transmitted to the dis-
trict office where it is checked by the logging engineer and the assistant district forester
in charge of timber sales. If the values are considerable, or these officers are not per-
sonally ‘familiar with the region. a field check will be ordered before the exchange re-
change receives the approval of the district forester. This check will be made prefer-
ably ‘by the logging engineer assigned to that district, or some other lumbermen or
cruisers of known skiil and integrity. All large exchanges are handled more directly
from the office of the district forester. The cruisers are specialists attached to the
district organization, and all estimates are checked for the accuracy of the cruise and
valuations either by the logging engineer or one of his assistants.

Ii the exchange receives ‘the final approval of the district forester, the entire record,
including the maps and reports, is transmitted to the Forester at Washington, D. C.
Here they are again carefully checked by the four administrative branches of silver-
culture, operation, lands, and grazing, and if approv ed by them and the Forester, the
entire record is then transmitted to my office with a draft of a letter to the Secretary
of the Interior recommending that he accept reconveyance of the certain described
privately owned lands, provided satisfactory title be shown, and that in lieu thereof
certain other described Government lands which have been examined by this depart-
ment and found to be of equal vaiue to the reconveyed lands be patented to the apph-
cant.

The Department of the Interior passes upon the sufficiency of title before such recon-
veyance is accepted. Upon the acceptance of reconveyance, patent is issued to the
area selected, all parties are notified and the exchange is complete and permanent.

This department has uniformly favored exchanges upon the basis of equal value
>, beve such exchanges would be desirable froma public standpoint. In land exchange
a p:iccls due weight has uniformly been given to the amount and character of tim-
ber, the character and productive quality of the land, together with its location and
the surroundings influencing the value of its production. But we have not placed
a valuation upon the removal of an administrative interference, nor have we allowed
the private owner to capitalize the dangers of a public menace. It has been the
belief of this department that neither the Government nor the private owner can
advantageously capitalize the inconvenience resulting to either party because of the
presence of land owned by the other. Such inconvenience is not a “‘value” to be
expressed in terms of dollars and cents, but is instead an injury to be avoided, and is,
in fact, the very element which induces both parties to desire an exchange. Usually
the inconvenience to one party is as great as the inconvenience to the other, but even
when one party is very materially the sufferer, no attempt has been made to equalize
the situation by placing an increased money value upon the lands of the other.

In accordance with this policy, the department has not considered the influence
of a tract of land upon the desirability of a watershed as a ‘“‘value” which might be
advantageously capitalized in considering a land exchange, although it may have
imporiaat public consideration which justifies the exchange. Such influence is an
element from which the private owner himself could never realize the slightest direct
monetary return. The presence of a typhoid patient on a tract of priva ately owned
land within the watershed utilized by a municipality might result in incalculable
injury to the public, but by no possible means could it result in profit to the individual
owner. The presence of slash on logged-oif private land intermingled with stands of
valuable Government timber might ‘result in erave injury to public ORE ON YT, but
that injury could not result in profit to the individual, and therefore the danger of
that injury should not be capitalized in considering the value of such private holdings.

6 CONSOLIDATION OF FOREST LANDS IN OREGON.

Accordingly, for the purposes of land exchange appraisals, this department has con-
sidered only such elements as actually enter into commercial transferable values.
To attempt to include more intangible factors might not only lead us into absurdities,
but might even result in the equivalent of public blackmail. Nor has it been neces-
sary to take such factors into consideration 1n order to effect exchanges advantageous
to the private owner as well as to the public. Such consolidations usually result in
increased value to both parties and are consequently mutually profitable.

The department therefore recommends that this measure receive your favorable
consideration.

Very truly, yours,
D. F. Houston, Secretary.

The Cuarrman. We have present this morning gentlemen from the
Forest Service, and if any member of the committee desires to ask any
questions of these gentlemen he may do so. I will ask Mr. Potter to
answer such questions as may be asked or have his associates do so.

Mr. AnpErRson. I would like to ask one question.

The Cuarrman. All right.

STATEMENT OF MR. ALBERT F. POTTER, ASSOCIATE
FORESTER, DEPARTMENT OF AGRICULTURE.

Mr. AnpERson. How will these exchanges be effected where an
exchange is proposed of timber for land and timber ?

Mr. Porrer. That would always be in a case where the land and
timber were owned by a private party who desired to exchange them
for Government timber. In that event a valuation would be placed
upon the land separate from the timber. For example, if the land
only had a value for timber production the base value might be con-
sidered to be $3 an acre; if it also had a value for grazing the base
value might be considered to be $5 an acre, and if it had a value for
farming the base value would probably be considered to be as high
as $10 an acre. ‘That value would be added to the appraised value of
the timber in accordance with the number of thousand feet that were
upon the land. Then the sum of those two values would be equalized
by a body of timber on Government land which had in itself a value
equal to the value of the combined land and timber values on the
private lands.

In the exchanges which are pending with the States of Idaho,
Montana and Washington we have found, in all three instances, that
the States desired to select, as land which will be retained by the
States, an area which has an average timber stand greater than the
stand of timber on their scattered sixteens and thirty-sixes, and in
order to bring about those exchanges it will be necessary for us to
allow the States to take, for example, in exchange for 250,000 acres
of school lands a tract of 150,000 acres of timberland, which 150,000
acres will contain as much timber as there is on the entire 250,000
acres of State lands. Then the State will take 100,000 acres of non-
timbered land, which will equalize the value. So that the State, on
the whole, will get the same amount of timber and will give the same
acreage of land that it gets, but the timber land that it gets will
average higher in value than the timber land that it gives, although
the total value of both the land and timber will be the same. We wiil
have to adjust all three of those State exchanges in that way, that is,
by giving them an area of timber land which will carry a heavier
stand per acre than the average on the State lands, and then equalize

CONSOLIDATION OF FOREST LANDS IN OREGON. Tl

it by getting them to take the residue in nontimbered land, which
would only have a base value.

Mr. Haugen. Are the differences in value always adjusted ?

Mr. Potter. They are always adjusted through a selection of land
which, as a whole, would be equal in value.

Mr. Haucen. For instance, one section is to be exchanged for
another section, and there could be a thousand dollars difference in
value. In that event, how is that adjusted—simply by finding
some more land ?

Mr. Porrer. No; the exchange, in that event, would not be made
unless the values were approximately equal.

Mr. Hawiny. And unless the party who wanted to make the
exchange was willing to take a less acreage ?

Mr. Potter. Yes, sir.

Mr. Heicesen. For the purpose of illustration, let us take a cut-
over piece of land. In most instances, such a piece of land is prac-
tically valueless, is it not ?

Mr. Potrsr. It only has what we call a base value; it would not
be worth, probably, over $2 or $3 an acre—that is, if it is only suitable
‘e timber. If it is suitable for farming, then it would have a higher
value.

Mr. Hevtcrsen. If you trade for a cut-over piece of land and pay
for it in Government timber, then the Government will be getting
that cut-over piece of land instead of valuable timber, will it not ?

Mr. Porrrr. Yes; it would, and the kind of a trade that would be
made in that event would be that if we placed a base value of $2 an
acre on a section of land of that kind it would mean that we consid-
ered that section worth $1,280 for the purpose of growing timber, and
we would give for such a section $1,280 worth of timber upon its ap-
praised stumpage value.

Mr. Heicrsen. That is a very nice proposition for a private owner
who wants to dispose of that kind of land, but I do not see wherein
the Government gets any particular value.

Mr. Porrmr. li gets value by getting land that is suitable for the
production of timber, and on which it can afford to raise timber.

Mr. SrmeL_e. Your object is to solidity it?

Mr. Porrmr. Yes; and it also solidifies the ownership so that it
simplifies administration by the Government.

Mr. Hawiey. But that particular question would not come up in
this proposed exchange. The only object here is to eliminate private
owners from the watershed of a great city’s water supply. That is
the purpose of this bill, to prevent contamination of a great city’s
water supply and to protect the health of the city by eliminating
private ownership from about 8,600 acres in the Bull Run water-
shed and giving them lands outside of that watershed. It is prac-
tically the same kind of country all through there.

Mr. STEELE. From your statement it would appear that your ans-
wer was that you are trading for cut-over lands and giving timber-
lands in exchange; but that is not true unless it is beneficial to the
Government.

Mr. Porter. No, sir; not unless it is beneficial to the Government.
As a rule, the majority of the land is not of that character, although
sometimes there are tracts of cut-over lands included in the exchanges.
That, of course, is bound to happen in our exchanges with the States,

Ps) CONSOLIDATION OF FOREST LANDS IN OREGON.

because some of the school lands have been cut over. In that event —
we must only consider the base value—that is, what the land itself
is worth—and give the State that value in return.

Mr. Hetcesen. Is it anticipated that there would be any such
exchanges under this particular bill ? |

Mr. Porrer. It would be possible to make such an exchange under
the wording of the bill; yes, sir.

Mr. AnpErson. Under the wording of the bill as it was introduced ?

Mr. Porter. Yes, sir.

Mr. Haueen. In exchanging a one-half section for another half
section, suppose it were found that the section in the forest owned by
the Government is worth, say, $1,000 more than the other half-section,
how are you going to adjust that difference ?

Mr. Potrer. We can adjust that difference only by adding a few
acres.

Mr. Haueen. By adding a few sections ?

Mr. Potrer. By adding a few acres to the tract.

Mr. Haueen. And thus making up the difference ?

Mr. Potter. Yes.

Mr. Haucen. And only in that way can it be adjusted ?

Mr. Porrer. Yes. That is one of the reasons for suggesting that
possibly the committee would desire to include the words “or timber,”
so that in the event the land values were different we might adjust
them with timber without having a difference in the acreage.

Mr. Haucen. In adjusting or appraising the values of these lands
are the interests of the Government safeguarded in every instance ?

Mr. Porrer. Yes, sir. We only consider exchanges when it will
be advantageous to the Government to make them; we have never
favored exchanges that were to be made merely for the convenience
of the private owner, but it is always when we consider that it will
be a benefit to the public. In this case, of course, it will be of special
benefit to the city of Portland. :

Mr. Anperson. I understand that that is the first question to
determine, that if it is not determined that the exchange is advan-
tageous in the first instance the proposition does not go any further.

Mr. Porrer. We would not consider it at all.

Mr. Haucen. Now with reference to the cruises. How are the
cruisers appointed ¢

Mr. Porrer. Mr. Chairman, | would like very much to have you
hear Mr. Greeley as to how the cruises’ are made, as well as the
appraisals. That work is under Mr. Greeley’s direction, and I know
that he can answer the questions asked in reference to every detail.

STATEMENT OF MR. W. B. GREELEY, ASSISTANT FORESTER,
IN CHARGE OF SILVICULTURE, DEPARTMENT OF ARGI-
CULTURE.

Mr. Haveen. I would like to have you make it clear that the
interests of the Government are safeguarded in every move made.

Mr. Greetry. These cruises are made, in the first instance, by
experienced woodsmen who have had from six to eight years practical
experience in the identical region. ‘Their cruises are checked by
lumbermen who are all men of practical experience in lumbering and
wood estimating in the several regions, and who are the most compe-
tent men in our organization.

»

CONSOLIDATION OF FOREST LANDS IN OREGON. 9

Mr. ANpERSON. Let me ask you a question, because I want to eet
this clear in my mind. When you speak of cruisers do you mean
men who are regularly and permanently employed by the Govern-
ment ?

Mr. GREELEY. In nearly every case; yes, sir. They are permanent
employees.

Mr. AnpEerRson. When you speak of lumbermen what do you
mean ?

Mr. Greetey. The tumbermen are also permanent employees of the
Forest Service. They are engaged on that class of work and selected
for their capacity in that particular line. For example, in this par-
ticular region

Mr. Havucen (interposing). How is their capacity for this work
determined ?

Mr. GREELEY. They are selected, in the first instance, through
competitive examination; then they are tried out, and if they make
good they are assigned to that class of work. Then they build up
through conemmed ¢ experience.

Mr. Hawxey. The parties you have out there appraising timber
have the benefit of practical experience in that section of the country
all the time ?

Mr. GREELEY. Yes, sir. In this instance in Oregon, for example,
we have a lumberman who has had some 15 years of practical exper-
ience in the lumber industry in that region and who has been in our
employ for upward of 12 years. He is one of the most competent
lumbermen in that region. A check is always required on every
exchange about which there is the slightest question, a personal
examination and check of both the quantity of timber and of the
value placed upon it.

The Cramman. Is there anything further, gentlemen ?

Mr, Haver. I think the letter from the department explains
the matter very well.

Mr. Greeny. I would like to suggest, Mr. Chairman, that I have
here a copy of an appraisal made of a tract of timber which happens
to adjoin the Bull Run watershed, which will indicate to the com-
mittee, if you care to incerporate it in the record, just how the values
are arrived at. It will show the detail into which our lumbermen
go in determining the value of timber.

The CuarrMan. What about that, gentlemen ?

f>. Remy. You follow the usual practice, do you not?

Mr. GrReEeLry. Yes, sir.

Mr. Havuenn. Are there any water powers on any of these lands?

Mr. Greevey. I do not know as to that.

Mr. Hawxeny. Hf there are, they would be acquired by the Goy-
ernment, because most of those that would be exchanged are on the

watershed, where the streams are only trickhi ling ones, and the Gov-
‘ernment would get them where the streams have become of more
size.

Mr. Greecey. [| think that is the cas
with this particular section.

The CHatrMAN. Suppose you leave that with the committee.

Mr. Haucen. How many exchanges are contemplated under this
bill ?

Mr. Greevry. There is just the smgle proposition mvolved of the
holdings of several parties in the Bull Run watershed.

e, although I am not familiar

10 CONSOLIDATION OF FOREST LANDS IN OREGON

Mr. Haucen. That takes in the 8,000 acres and 11,000 acres ?

Mr. Greevey. I understand so; yes, sir.

Mr. Haucen. About 8,000 acres owned by individuals, 2,000 acres
by the city of Portland, and the Government owns about 11,000
acres, I believe the letter states.

Mr. Greevey. The exchange would cover only the 8,000 acres
owned by individuals and not that owned by the city of Portland.

The Cuarrman. Is there anything further, gentlemen ?

Mr. Haucen. Is it necessary to go to that extent ?

Mr. GreeLey. I do not understand you.

Mr. Haueen. Is it necessary to make all of those exchanges ?

Mr. Gree ey. It is necessary to acquire all of those tracts in order
to place the whole watershed under proper supervision.

Mr. Haucen. It was stated the other day that a half section, or
possibly one or two more sections added to the half section, was all
that would be required or all that was contemplated.

Mr. Hawiny. That was what was to be immediately done because
of the logging operations.

Mr. Brieas. I intended to make it plain the other day that the half
section was the only one in which I was interested. I did not mean to
infer that the Forest Service did not wish to get other owners as
well as ourselves out of the reserve. As far as the city is concerned,
the water commissioner told me before I left home that he was very
anxious to eliminate all private owners within the reserve. There
have been times when hunters, berry pickers, and so on, have gone
into the reserve and claimed that they had the right to go in there
because of ownership or permission from owners. He said they
wanted to eliminate any possible excuse for muy lnody going within
the limits of the reserve.

Mr. Hercesen. Is it contemplated to take over the 2,000 acres
owned by the city of Portland?

Mr. Hawiery. Oh, no.

The CHarrman. I would suggest that we print the memorandum
that Mr. Greeley has presented to us. It will give us an idea how
these exchanges are made. Without objection that will be done.

(Said memorandum follows:)

Sates, West Fork or Hoop River AREA, OREGON.
[Report and appraisal by W. T. Andrews and L. A. Nelson, June 1, 1916.]
DESCRIPTION.

The tract of timber covered by this report and appraisal lies on the watershed of
the West Fork of Hood River and tributaries, Ladd, McGee, Elk, and Jones Creeks,
Oregon National Forest, Oregon. The area is reached by wagon road and trail from
Dee, Oreg., a station on the Mount Hood Railway, 12 miles south of the town of Hood
River, Oreg., on the O. W. R. & N. Railway. Automobiles can be used a portion of
the year for a distance of 6 miles out of Dee; for the remaining 3 miles to the trail it
is possible to use wagons. The wagon road continues on to Lost Lake, but it 1s in
very poor condition for wagon traffic. The trail to and through the area is well con-
structed on a maximum 5 per cent grade. There is a Forest-Service telephone line
along this trail in secs. 23 and 35, T. 1 8., R. 8 E., Willamette meridian, of the pro-
posed sale area.

A portion of the West Fork of Hood River watershed is in the Bull Run Reserve,
which was created for the purpose of protecting the water supply of the city ont Port-
land, Oreg. The sections in the reserve bordering on the sale area are secs. 1, 2, and
3h T. 2 Se R. 8 E., and secs. 22, 27, and 34, T. if S., R. 8 E., Willamette meridian.
The water supply oi Portland is obtained from Bull Run River and tributaries.
There is a high divide between the Bull Run and West Fork Hood River watershed.

CONSOLIDATION OF FOREST LANDS IN OREGON. Hak

The west boundary of the sale area is from one-half to 2 miles from the summit of
this divide. The drainage on the sale area is away from the Bull Run watershed,
therefore the logging of the timber can in no way aifect the water supply of the city
of Portland.

The total area of the West Fork Hood River drainage within the forest boundary
is 18,780 acres, made up of the following:

Acres
Fe aietae Gl] aun Gey emus sae me oa Nua aUS MTR Sane ce vane ern MiM a Ayr ean oe/. US| Oc ath Ui oun 1, 960
SIG PURSE a SESE ss GSE SR a aN ete a eS SN EG Se a GT ae a a ae 7, 340
TP YROAHEXC DOTA WON RETSH HO CE tes Se as I ie ge a ae 2c a a ee 9, 480

The sale area comprises all of secs. 1, 2, 11, 12, 14, 23, 26, and 35 and portions of
secs. 13 and 36, T.18S., R. 84 E., Willamette meridian, unsurveyed, all of sec. 6 and
portions of secs. 5 and 7, T.158S., R. 9 E., Willamette meridian, unsurveyed, all of
sec. 23 and portions of secs. 13, 14, 24, 25, 26, 35, and 36, T.18., R. 8 E., Willamette
‘meridian, surveyed, a total area of approximately 7,340 acres.

The amount of timber estimated to be on the sale area, by species, and the tctal
amount is as follows:

|

M feet |
‘ board | Per cent.

measure. |
TDXO WIG) THR ae atid OS Ghins 8 AOE GH AeIse SEES Uae a ans SETS s aoseee pyran teats Ota DURA: Pie ate ceteea 258, 000 71.7
AGS Gib plate OI abe KOS Ae aos Sence ROS EA a See On Sone A ese Sepn nae Mele Matyas A aaa 4, 000 1.1
INIGUOND SIR yo SESS NCO ES A AIR a So as Ua ae Me i 6, 000 1.6
elWesuenmene dice danse cee mene eieaie hnce ne veka telecom Sick oe suse eae dg RN RS Oe 9, 000 2.5
Western hemlock....-.--- EHS CG UBEOE Rta CGS DO HO RSTn OSE EE eH ebite SESE eee ae 63, 000 17.5
ANTS OWNS ANTES aS ee er ka yo a a a 20, 000 5.6
BTR trea Reo ee a tae em eS LIE EE Sah Raya saab eer MCR ADD OO SY Ceo LR Be al ea aes 360, 000 100. 0

Old cuttings —There are no old cuttings within the boundaries of the area.

. Private interests —There are no private interests within the boundaries of the prc-
posed sale area. Portions of secs. 13, 24, 25, 26, 35, and 36, T.18., R. 8 E., Willamette
meridian, totaling 1,960 acres are patented. A portion of this land is owned by the
Oregon Lumber Co. and the rest by individuals. Practically all cf the above land
lies along the main streams, seldom going up the slopes any distance. The stand of
timber is of a better quality than on the forest. It is estimated the stand of timber on
this area is 120,000,000 feet b. m. There would seem to be a favorable opportunity
for a blocking of lands here possibly by the exchange of stumpage for land if the com-
pany later acquires the private lands within the forest.

Timber considered in the appraisal—tlt is estimated that there is approximately
1,000,000,000 feet of merchantable timber on the West Fork of Hood River and tribu-
taries that will come out over the main line railroad. The estimated amount of timber,
private and national forest, embraced in this appraisal is 480,000,000 feet b.m. Inthe
portion of T.18., R. 8 E. not inciuded in the contemplated sale the amount of mer-
chantable national forest timber is 90,000,000 feet, and on patented land there is
70,000,000 feet. The merchantable timber in T. 1 N%, R.8 E. on the national forest
is approximately 260,000,000 feet. Outside of the forest 1t is estimated that there is
approximately 100,000,000 feet.

This totals as follows in thousand feet board measure:

National | “djacent | Private aoe Atak
3 Forest national timber o | eon ot
Area. qe forest considered | 2 Total,
timber ca A considered
iriteale timber not in ap- Go ae
in Sale. praisal. praisal:
Ab, US, IS Ca diontssy Wing Be aban esanepoeee SiO); O00) lens codecadies 10 OOO eonekastncce 480, 000
ARO Ih Shas dada eo Disaes ce ance ao Gee Ora eeepc een oer tenes SOKO00 2 a eae 70, 000 160, 000
Whe Th When Lite Gy Gs See Si ety Se ea al Ie tages See Nae ZBO OOO Ale eee Se Bese | Screen 260, 000
(QHDUISTISN® TONE ees i i eC EA A a bac eae No 100, 000 100, 000
PIO Gea Raa speastetatiNe aa eens MACNN NC 360, 000 350, 000 120, 000 170, 000 1, 000, 000

12 CONSOLIDATION OF FOREST LANDS IN OREGON.

Soil.—The soil on the area is a shallow, sandy loam. A few cases occur where it
is from 1 to 14 feet deep. Frequently it is almost entirely replaced by broken rock,
this latter condition being an important consideration in determining the agricul-
tural value. The poor quality of the silo and the steepness of the slope make the area
unsuited for agricultural purposes.

Reproduction.—The reproduction on the area containing merchantable timber is
an understory of western hemlock, amabilis fir, and western red cedar, with a small
percentage of Douglas fir. For restocking the area it has no value, and no effort
should: be made to protect it during logging operations. The burned areas within the
sale boundary have restocked fully with Douglas fir, western hemlock, western red
cedar, western white pine, and amabilis fir, the first species mentioned predominat-
ing. These areas should be protected during logging operations.

Character of forest—Although this area is east of the Cascade Mountains, it is dis-
tinctly west-side type, consisting of Douglas fir, western hemlock, amabilis fir, west-
ern red cedar, noble fir, and western white pine, named in the order of their impor-
tance. The area is situated in a bit of country lying on the eastern extremdty of the
humid coast region and in the central portion of the Cascade Mountain Range. There-
fore the climate is neither humid nor arid.

Douglas fir.—This species comprises 71.7 per cent of the total stand on the sale area.
The character and condition of the stand within the sale boundary are those of a
mature, even-aged, irregular in tree diameter and quality and above normal in sound-
ness. The typing of the map is, perhaps, misleading in defining of age classes. While
there is a wide difference in tree sizes, conservative judgment would define the stand
as above. ‘The green timber is unusually sound, in a comparative way, scarcely any
trees being totally defective from fungous diseases. It is noted, however, that there
is an enormous amount of dead Douglas fir occurring in groups and singles in a more
or less regular manner throughout the entire area. ‘This serious deterioration 1s
ascribed to two causes, viz, first, it is believed that climatic conditions is the principal
one. From November until May there is an almost incessant fall of rain or snow,
while the months of June, July, August, and September are very hot and dry. The
second contributing factor is probably poor soil. Where the snow had disappeared it
was noted that the surface was very rocky with a mixture of nonporous clay.

It appears that the timber grows very rapidly for about 100 years, lessening greatly
with an increased age. There does not appear to be many trees in a suppressed or dying
condition, leading to the assumption that deterioration takes place quickly. It is
clear that the timber is on the decline in quantity and gaining nothing in quality.

On a numerical basis the stand is about normal. The heaviest stand on this basis
occurs in sections 5 and 6. Here the normal maximum diameter is 34 inches; the
trees are tall, straight, with few limbs, but knotty down to the base. On the lower
elevations the trees are fewer per acre, larger, and of a better quality. A similar
stand, on a numerical basis, in the Pacific coast region, would grade much eect in
quality. The timber on the tract under consideration appears to hold (is inbs per-
sistently. It is true that from a casual observation the boles of the trees appear to
be clean, but a close inspection reveals small dry limbs and pin knots.

Amabilis fir—The amabilis fir stand is confined mostly to the higher elevations in
nearly pure stands along the south and west sides of the sale boundary and in an
irregular manner over other portions of the area. The trees are tall and shapely, but
knotty and for the most part defective. %

These species are similar in quality and texture and are suitable for boxes and light
dimension.

Western hemlock.—Western hemlock, comprising 17.5 per cent of the estimated
stand, occurs over the entire area in mixture with the other species. In places it is
found in nearly pure stands. In portions of the area it is of a good size and quality,
but as a rule it is rough and defective and will only cut into the lower grades of lumber.

Western red cedar —The quality of this species averages very low. Here and there
there are small groups of and single trees having a short surface-clear log or a surface-
clear side which would qualify as either good shingle timber or produce a fair per-
centage of clear lumber. On the whole, however, the timber is knotty, coarse
grained, and much of it small. While no doubt the timber would produce a fair
amount of shingles of the Star grade, it is not believed that this product could meet
the competition of the shingles manufactured in the State of Washington.

Noble fir —This species is tall, shapely, and of good quality, but forming only 1.6
per cent of the stand. It occurs in small bunches generally in the southern portion
of the area.

Western white pine—The small amount of white pine occurs in a scattered manner
over the entire area. Tree diameter and quality cover a wide range. There are
many fine specimens, 36 to 40 inches in diameter, apparently in a good state of preserva-

CONSOLIDATION OF FOREST LANDS IN OREGON. 133

tion. On the other hand there are groups of small, short trees 10 to.16 inches in diameter
occurring mostly on exposed points, in a dying or decadent condition. In one such
place more than one-half of the stand is dead.

Types within west Hood River watershed.—In order to discuss the types of this region
to better advantage the area will be divided into two parts, that within and without
the sale boundary. but in the watershed. Within the sale boundary are found all the
age classes of the Douglas fir type, western hemlock, mountain hemlock, fir and cedar
types.

Othe Douglas fir type comprises practically the entire area within the sale boundary.
The two types designated in the map as the older age classes are of most importance in
point of area cover ed and stand of timber represented. This fact still holds true when
the patented land is not considered. Trees between 20 and 48 inches in diameter
have a merchantable length ranging from 70 to 150 feet. The younger age classes
are to be found where fire has destroyed the original stand, but these areas are not of
great Importance.

In mixture with this type are found western hemlock, western white pine, cedar,
and noble fir, in order of their importance. These species form, with afew exceptions,
the second story of the forest, and as a rule do not attain a large size nor form a large
factor in the stand.

Although considerable western hemlock is scattered over the entire area, in a few
cases it 1s prominent enough to form a type by itself, but the extent of this type is
oi minor importance. The timber in its own type does not attain a large size; it is
limby and rough. The better class of hemlock is found in the Douglas fir type.
This is especially true when it occurs even-aged with Douglas fir and has been thrifty
enough to keep up with it and form a part of the main stand. On the whole the
quality i 1s poor.

The fir type occurs in the southwestern part of the sale, on the higher elevations.
The chief species in this type are amabilis fir and noble fir, both of them attaining
commercial size. The noble fir is the better of the two, growing tall, straight, and
clean, and usually of good quality. The amabilis fir is more limby, even when it
attains its best development.

The mountain hemlock is almost of negligible area within the sale. The timber is
of no commercial value and of very poor ‘quality.

Western red cedar type has an extent of a few acres. The timber is of medium

uality.

The types outside and east of the sale boundary are very similar in character to
those within, but differ considerably in extent of their area. Here the mountain hem-
lock and western hemlock types attain their greatest development. The younger
age classes of Douglas fir and the true fir type are also represented. The species in
these types are generally poorly developed, limby, and altogether a very poor quality,
with no commercial value.

The area south of the sale boundary is within the Bull Run division of the Oregon
National Forest. Since this area has been set apart to protect the water supply of
the city of Portland, it can not be logged. The timber soon runs into undesirable
species, which are neither commercial in size nor quality.

For 3 miles on the west the sale boundary and the boundary of the Bull Run divi-
sion are the same. The timber in this portion of the Bull Run division and along
the west boundary of the sale is of good quality. It is composed very largely of
amabilis fir, noble fir, and second-growth Douglas fir.

From the southeast corner of section 15 the boundary runs in a general northeast
direction until it reaches the base line. Along this boundary one finds either the
ends of long fingers of timber extending up the mountain side from the stand lower
down, or a deforested (burned) area which is restocking with Douglas fir, but nothing
of commercial value.

Topography.—The proposed sale area is in a mountainous region. In one place
the west boundary is one-half mile east of the summit of the Cascade Range. Mount
Hood, an extinct volcano reaching an elevation of 11,225 feet, is 5 miles southeast
of the south boundary. This region has been the scene of a oreat deal of volcanic
activity, as evidenced by the tilted and twisted condition of the rock formation.
The country has been covered by lava flows from Mount Hood which have been
planed down by glacial action, fragments of these glaciers still clinging to the slopes
of the mountain. Ladd Creek, one of the streams on the area, has its source in a
glacier of the same name 3 miles southeast of the south boundary.

The topography within the boundary of the sale area can be classed as steep and
rough. Along the main streams in the lower portions of the watershed south of the
forest boundary there is a considerable amount of bottom and bench land, the greater
portion of which is patented. The portion of the watershed within the sale boundaries

14 CONSOLIDATION OF FOREST LANDS IN OREGON.

is practically all on the slopes, which are steep and broken. Numerous rock slides,
cliffs, and rock outcrops occur 1n some places, the slides covering 20 to 50 acres. The
streams on the sale area are as a rule small and with a heavy fall, the slopes rising di-
directly from the stream beds and asa rule are steep, in some places occurring as can-
yons. These rocky areas and streams make railroad construction and logging opera-
tions difficult. The West Fork of Hood River and main tributaries do not affect the
sale area to any extent, as their course is for the greater part through patented lands.
The beds of the streams are rocky; there are no falls, but rapids are numerous. The
eradient along tributary streams is too great to permit the construction of railroads
up their valleys. A detailed description of the topographic features of the area is un-
necessary, as the accompanying map shows it better than a description could give it.

Accessibility.—The Oregon Lumber Co. operates a sawmill, with a capacity of
30,000,000 feet b. m. per annum, at Dee, a stacion on the Mount Hood Railway, which
is owned by the same interests that own the mill. Dee is 12 miles distant from Hood
River, a station 64 miles east of Portland, Oreg., on the O.-W. R. & N. Co. transconti-
nental line. The log supply for the mill during the past season has been obtained
from the logging camp operated by the company in the West Fork of Hood River
Valley, 54 miles southwest of the mill. The north boundary of the proposed area is
approximately 3 miles southwest of the logging camp; therefore the sale area is 84
miles from the sawmill where the timber under consideration will be manufactured.

The discussion of freight rates is a complicated matter, as there are so many variables
The freight rate on lumber from Hood River, Oreg., to Chicago is 53 cents per 100
pounds; the coast rate is 55 cents; the Dee rate is the same as the coast. The coast
rate to Denver is 40 cents, the Dee rate 36 cents, the Hood River rate 34 cents. To
the Salt Lake market the Dee rate is 14 cents less than the coast rate. The coast
rate to Omaha is 50 cents, the Dee rate is the same, the Hood River rate is 48 cents.
This then puts Dee on the same basis as the coast mills to the markets outside of
Denver and Salt Lake market, while Hood River has the advantage over the coast
rate of from 2 to 6 cents per 100 pounds. The local rate from Dee to Hood River is
5 cents per 100 pounds; on through shipments the rate is 2 cents, which makes up
the 2 cents difference between the Hood River and Dee rates.

It is evident that any gain due to a lower freight rate is dependent upon the distri-
bution of the output. If all of the cut goes to Omaha and Chicago rate points there
would be no difference between Dee and the coast mills. If all of the cut goes to
Denver rate points the gain on shipments from Dee over the coast would be 4 cents
per 100 pounds, or approximately $1 per thousand feet. If shipped to both markets
the gain will be in proportion to the grade of lumber shipped to each market. On
clears shipped to the Denver market the gain would be about 80 cents per thousand
feet, and on-rough common $1.30 per thousand feet. The gain is therefore not only
dependent upon the distribution of the output, but upon the distribution of the
grades of lumber produced. Due to the number of factors to be considered the de-
termination of the gain from advantageous freight rates is a dificult matter. The cut
of the mill has been distributed by grades over the market that the mill can reach
without a differential against them and the gain computed on that basis. This gain
amounts to 20 cents per thousand feet, which has been distributed over the lumber
values by grades.

The appraisal is based upon the timber being manufactured at the sawmill at Dee,
Oreg., the use of the present railroad up the West Fork of Hood River, the construction
of a railroad to and through the sale area.

INVESTMENT,

Ratlroads.—The railroad from the sawmill at Dee to the present terminus is of
standard construction throughout with light curvature and gradient. This road will:
tap approximately one billion feet of private and national forest timber on the West
Fork of Hood River, Lake Fork and Divers Creek. Depreciation is based upon this
amount of timber. The investment is the present value of the road and a residual
instead of a wrecking value is allowed at the end of 12 years.

From the terminus of the present line the railroad to the sale area as surveyed is
on the south side of the valley, well above the river to avoid rock cliffs and canyons,
entering the forest at an elevation of 2,050 feet. This portion of the road will not pass
through timber. A great deal of rock will be encountered in the construction of this
portion of the railroad. Several canyons are crossed, necessitating long and high
trestles. The construction as a whole is heavy, with a correspondingly heavy cost.
From the forest boundary the road will continue up the valley into sec. 26, with
spurs into secs. 13 and 23, T.18., R. 8 E.

CONSOLIDATION OF FOREST LANDS IN OREGON. 15

To tap the timber on the higher elevations switchbacks or an incline must be used.
The appraisal plan for reaching the timber on the higher elevations is to construct an
incline from the main line to the high lines on the slopes. The high lines to be con-
structed through secs. i, 12, 13, and 14, AVS WSs 1 ° E., secs. 6and 7, T.18., R. 9 E.,
and through secs. 24, 25, 26, 35, and 36, T. it S., 8 E. , Willamette meridian, and
loading spurs to be constructed at landings. With this dev elopment the greater part

of the timber can be yarded direct to the cars. The unit cost of construction south
of the forest boundary is less than outside. On the patented land inside the forest
construction will be lighter than on forest land, the railroad being on the valley floor
or on gentle slopes. The new construction necessary to log both private and national
forest timber will be 2 23 miles, exclusive of temporary spurs, of which there are 6 miles.

The railroad from the terminus of the present railroad to and inside the national
forest will tap approximately 480,000,000 feet of timber; depreciation is based upon
this amount. The roadbed, ties, and bridges have no value at the end of the sale;
steel and fastenings have a wrecking value for removal and use elsewhere.

Railroad equipment.—The equipment for the transportation of logs from woods to
mill to consist of 1 direct connected locomotive for main line haul, 2 general locomo-
tives for spur haul, and 60 connected logging trucks equipped with air. With the
exception of one locomotive the present railroad equipment of the Oregon Lumber Co.
is too small in size and capacity tor the economical transportation of logs from the sale
area and the appraisal contemplates the purchase of new equipment.

Logging.—The timber in the valley bottom is on patented land; the national forest
timber within the sale area is as arule on the slopes or at the heads of streams. Logging
the privately owned timber can be done at-a low cost, as it stands on good ground.
Logging national forest timber will be a different proposition; the timber standing on
the slopes, which in places are broken by cliffs and rock slides, will have a higher
breakage than that in the valley, yarding distance will be greater, roading will be nec-
essary to reach timber where railroad construction cost is prohibitive. Railroad con-
struction will be heavier, as the roads will be on the slopes above the valley floor. All
these factors make for higher logging costs.

_f& The method of logging by which the timberv can be removed economically is by the
combination of overhead and ground yarding, the equipment to consist of 3 overhead
yarders, 1 yarder, 1 roader, 3 loading engines, and 1 incline engine. The output per
annum is placed at 40,000,000 feet in an operating season of nine months.

The stand of timber, national forest and private, is 480,000,000 feet, and the output
~ 40,000,000 feet per annum, therefore it will require 12 years to ‘log the timber embraced
in the appraisal.

The following is a tabulation of investments:

Existing main line railroad (5 miles).

Deprecia- F
Present Residual Average
Ttem. worth. Hepes value. investment.
CONS HUCTIONMUIN Ger Talls: see ele 5 eee cae sos e ee $22, 000 $10, 650 SU 0h ase
Slee eamGstaslOnIn eS Semen meae ch can mea ter 2. UL eens | 20, 000 10, 800 OF 2005 rasa soe
RO Gale ep tn crear he NO ae | 42, 000 21, 450 20, 550 $32, 168
Logging plant railroad, under rails (23 miles)
Addi | Addi
Invest- spew | Invest- : ara
Depre- tional Z Depre- tional
: HEE 2 ciation | invest- Average | ment at | Giation | invest- | a erage
Years. begin- = invest- Years. | begin- oe | invest-
nine of | Curing | ment at eit | nine of | Curing | mentat | sent
Ben year. end of s eae year. end of |
pare year. ; year. |
|
$4, 487 EHUD) lec ebesonaae Saeeeciocs $47, 366 = au 2 pe aa Ube
7, 141 &} GPE eecbuasesoe Osea 43) 345 by DS0MEEeesesee
10,016 ALSO; eens aa. Ws ooeee 36,042 | 12,009 64000) een eee
9, 216 652008 | Peer eee 1 ee ee 30, 233 LO OOS em erierce isl seriertisceer
9,991 GEO) lola ae TOME TRL || TLIO Woe dlosencadone
8,391 SR BDO Ne saeeme es
ASG 24 ae 114420) |e aa ents Total... 531,998 | 119,650] 65,800 | $44,333

16

Logging plant—Rails and fastenings.

CONSOLIDATION OF FOREST LANDS IN OREGON.

Invest- - Additional
eas ment, be- Tepes invest- Wrecking | Average
miei FAUST rae ment at value. investment.
of year. 8 year. | end of year.
np marae eae ea eR nd ae Ur $33, 350 $1, 500 SOE QOO Me Liha i a i anc eae
Disa a Ns SOM 8 an a a ae. Rau oe MLE UI UE 41, 050 1,914 95: 200) |) 3 ae oe ee eee
SNS rier RPURETZ fT ENYA SU CR ache ER Se 48, 336 2,328 GY 200) etc Ve Rea ee
ARCCRS ERE MMEA PU CAD RUMI) Bach a spell ANS vals Bera tet 52, 208 PANG Vi RE SERIAE eccl MRSIae [ete oa aa
Lay VE RRC Le pr ag Ep am eRe AG SCE Na a es Ey 4 49, 601 ZOO TENS crate eee | NEE | SEARS ae Se
LGhetP SG etal VST ee A np RAUB ea RES DT LEE 46, 994 2,607 AVL 3O) eis OAs Se ee eee ee
UTR USAR SN CEE 1 Bot El SAR IRB 5 eC chai Mca SER 48, 517 2, 792 852604 ce oe oe ae eae
53, 985 3, 180 6200) Se te | ee
57, 005 By AO a ei S UTE WI Ne a
53, 546 3,450: [202 Soa 2 Gann Rape a
50, 087 5 AO ils Ses chai tetas zal 2 Bel a Jin coe
46, 628 SAO nS MURR. Toa ANAS Se eT ne a
ETN GERD see ee cot sles Neca ap ae it a Eo Soe 581, 307 33,371 $43, 169 $48, 442
Locomotives and trucks.
: vee Deprecia- sss
coals Initial 5 Wrecking | Average
Years in use. investment. eee value. investment.
BUD ee Setar se ye a ya ca Ua ecm up a aA oe URS et aitpeg $81, 250 $05, 344 $15, 906 $56, 259
Investment includes present worth of one locomotive in use by mill company.
Donkey engines.
Invest- Hcy Additional
i ment, be- Deprecia- invest- Wrecking | Average
Years. maser. tion each P
ginning aa ment at value. |investment.
of year. year. | end of year.
STG Oh eau PSD SSN MIRED ees PON LEG au $47, 000 GAL OOO: | VSesr a ae ee a el na
DLE SLU ay ne ere ae NESTA) DAI Hs ERE 42,910 ANOSOs | ESTEE Sh SR ATS ee
Pr eRe a ca A A a ae ap Ca 38, 820 rN 120 is Ppa Ne oa ETRY VA UT NUT ON We iy Be
0. Se CS cae FL ES a ln ai 34, 730 Ae OS is eae Se See
La SEA Sn Sa Rate cee eee ena ea Ey A A eee Oe 30, 640 CSCO) i Pa aa te eae PN BS a ee eos s
(Sn ye aU ay Aa I SS a os a a ee 26, 550 e110) 0 a Reeeateertamraes 047 I Re SIA Sle Seis
AGS eS Ga a RA UO a 22, 460 Be QO eee ie Sy sicaras cet pape SRN LCT a (Pe
ANN i idlinelen Ents pon Ro Rian ior Ee ae uote pata Peo 18,370 AN O90 lis Bye Sa oven Ay Sd On (RE ae ee
1G Fs Ss Uae Aa ab Ra cae IR Ni ike AAC NO ER as NL 14, 280 ALQSO | 8 ee eee ce cha ey se ei ya Dee Ue
10 Pe a a LSE eo ENN Dee a 10, 190 4,090 GB Lo OU OMe ea Neca mys Bacto,
1 CS Ten tC A eRe a do a eo a ao ha 42, 100 O90 oes SiO i lr ee ea
iDEA RO ai AS AR NAMA RC eS ULE) 38, 010 42090 |. cei ee eae
Ht BYay ra Va a ae eR Ye 366, 060 | 49, 080 36, 000 $33, 920 $30, 505
Camps.
Initial Deprecia- ; fe: Average
Years in use. invest- tion, 12 Wrecking invest-
ment. years. value. ment.
A IPH DAC ea a te A nM ane rea a ae ea een Te rag $7, 800 $7, 200 $600 $4, 500

CONSOLIDATION OF FORESL LANDS IN OREGON.

Blocks and tools.

17

| |
Invest- F Additional S
Voars ment at ee invest-_ | Wrecking | Average
: beginning air ment, end value. | ah
of year. years of year | oat
iis. i SEE te RAE Te aap laced A Reaiane $6, 120 $1, 400
4, 720 1, 400
3, 320 1, 400
4, 920 1, 400
3, 520 1, 400
3, 420 1, 400
5, 020 1, 400
3, 620 1, 400
2, 220 1, 400
3, 820 1, 400
1 re SA ESOS See Be Sea ee See ae eS Se 2,420 1,400
LL pS ees trate ern ns Naja aa nists als 2, 320 1, 400
54, 440 16, 800 11, 600 | $920 | $4, 533
Summary—Logging-plant investment.
Initial Yearly Total Addi- Wreck- | Average
invest- | deprecia- | deprecia- | tional in- ing invest-
ment. tion. tion. j|vestment.| value. ment.
Ikan Ihiaye rent hols See ceeaneecseoneccoeaose $42, 000 $l, 787 | $21,450 |:....-.2:- $20, 550 $32, 168
Ra. Jroad West Fork construction.....---- 53, 850 9,971 LTO GOOME SGD S00) |ae sae 44, 333
West Fork, rails and fastenings. ....--...- 33, 350 2, 781 33, 371 43,190 43, 169 48, 442
Locomotives and trucks...-.--.:---------- 81, 250 5, 445 OH Bie Rane ossens 15, 906 56, 259
Donkeyrenein ese sas soeee asec aioe cea 47, 000 4, 090 49, 080 36, 000 33, 920 30, 505
Wamp Sete oe as) es cep eects wise wie ata 7, 800 600 200) aera 600 4, 500
BIOCKsfanGabOOlSe em sees eens 6, 120 1,400 16, 800 11.600 920 4,533
EEG aT SS a Ia i See 271,370 | 26,074 | 312,895 | 156,590 | 115,065 220,740
: Logging cost.
Items. C. M. G. ANG R. D. AT
Woods:
Ballineyandsbwekan chess seer ee seem SOHOSS eI ase tae oe | eat es eka OR 2 ee $0. 638
Narndinevanditoa dunce mene seme eeseeeaoae HEOSO RSS parr eee cic [fSeovte vasa eel ersanepetey sel Nevers 1. 050
TEA ONG Ura ep ete ie arte eine elec ony NSA ae AAO Ae esseral Nea eS eis eel geese tua tele auseten . 290
NG AMA IIOSES eaceecn ets) eed nea eal es pe Ne SOG SM rs sees rarest Ae eae No aig he - 063
Railroad:
Operati oneesaiene orate eens aces Se HOOK Stemasatelsaeeenece erences nee | een | Pa vw - 300
DUG. BSS Roa SH See Rae Bee ORE be Sms ener SSO) | Sr eee ites el ep S| Eee eal Seta) Ua - 150
ERempOLaTyIS DUBS eee eee eee eras see Seo es Soceeia Sear cee) Berscedticn | smtaetate [arto macan 041
Maintenance:
EVO e de gte he trer see ee se He aE En aloo cea RMS Oe COE Be See nnel Se ceecae MEeBe ea atest ae . 160
POCONO LVeSEra eee meee ee tees see NUM i tesa hr 2 are [ees cere can ce aes . 040
ARS DY GAS) Si AN Nal RS a) a a a a a ta SO80u | easeeecte eeee aoe Bose sone Geeeae - 085
Donkeyiencines rere Se Tee Sables JOOS Weoeence PA es (NS eae RC eee - 067
ogeingequipment=seee. easel ane ale esl eee OGO Reece | i cia Ee oe ea - 090
Supplies:
AAVIURS TRO) OCs 4. ioe eS SE SAC ne eae ALU 2721 etree chee eeepc seta a ona ACO aetna . 240
Oiltanndhwas temo ae eee eka rs No tae Soe Moe elccas ODO Maes 2 oars eset ieys | gee eee | ewe - 020
(Gear Cea pap areapes eters Ym cP lal msl eet ei EUS Ese bea nese on bea mae | aeewi nts 035
Insurance and taxes:
FIA Uli hygitls Ura Cem ear tye aaa ep a ees | eee nad |e Fa SOSOGON eases tera ete . 060
ADEE SS GSES Re TS Ue iether Usd oScccoslbasocese - 080
F.S. regulations:
SHES. Tins INES Amal EI loMOINe EAP somal e we liane mene odeecesl|toasoces SOL O38) | Pees eee - 108
General expense:
SUIOTMMMIOM oa cuigdeds SBSH ESCA BASES OB CSSaS MASEEELe| papeaoee SON260 sass eee eee salle sees . 260
IMirS Cell aim COUSE Meet see et nner eee emia Sms eee evacuees AUN OM paisa becaonoE| eeesaces . 050
Depreciation: :
MoconTOLivestan GulTW Gk Seeere matin Sas ieee eee [Racin tas | meta ee [aoe el Dyan raat $0. 136 . 136
TD Yaya Gay GVA GES Ss FS RSs ee De SZ ITE Sh | Fee | a | ee | E - 102 . 102
SheeWamderas tent popes ieey ae namterey are nerenia en Lee Ta WEN ee es Oh Sues - 069 - 069
PVP 3 Os Se tess ab OS SR OAC EET SESE Ses) SASS EOEe See beer Gee ete ose eased (seers - 015 - 015
TOONS BAC IGA S ose nade e suse e ne malbee noone aha rll Poet E Ea | ya tl beech ss - 035 - 035
IRA RORE! COMBA NS Gas ose os can aaa ete SEtoee Sh BOSSA SAG a eair el ame Sarl nmgen . 249 . 249
IMainelin Oss sesern es nue Me emer eo rei os PEA Ns Oe ae ena aseee een aauee cca - 045 - 045
MINOT is TERE a ee ANISTON pe oh 2. 532 737 - 310 - 140 - 108 - 651 4.478

50495—16—-—_2

18 CONSOLIDATION OF FOREST LANDS IN OREGON.

Milling.—The old mill at Dee, Oreg., was destroyed by fire about four years ago.
The present mill is built on the site ‘of the old one and has been in operation two
years. It is a modern, electrically driven, individual motor band mill, with an
annual capacity of 30 ,000, 000 feet, which is ‘to be increased to 40 ,000,000 feet. The
power is generated in a hydroelectric plant at the mill. The available flow of Hood
River is given at 220 second-feet. The power plant requires 312 second-feet. Owing
to this lack of water, the mill is shut down on an average of two hours each day wait-
ing for the storage basin to fill. The irrigation associations of the Hood River Valley
obtaining water “from the East Fork of Hood River filed suit to restrain the Oregon
Lumber Co. from using the water, claiming it was needed for irrigation. The court
held that irrigation is the highest use for the: water, and that the company could install
a steam plant and utilize the mill waste to generate power, while the irrigationists
had no alternative. The company is installing a steam-electric plant and increasing
the mill capacity to 40,000,000 feet per annum by installing additional machinery.

Investment in milling plant i is the depreciated value of the present plant plus the
new equipment to be added.

Milling plant investment.

present ess |
wort A reck- verage
and new erect ing eee
equip- : value. ment.
ment.
SAV Cer Naas geek Cees MER RMB AUN Se HOOD sel ee Sea Bt US $3 10908 ees eee $3090) eae ee
Pome iid ame ss ed ee Pd ee eae ge fee ena repeater ays 7, 200- $7200 le S37. 22 See ee
JeUMNKGIN a aes Oost ab sadauon SHbeu abe seoduentooebecosbooouodaE 22, 450 22,450 ||! o_o ee 2 | eee
Sawaal gma chime niyy hee ee ea rea rarayats jacana eee = 65, 300 55, 200 1031003 |2=a=see eee
Planing=mill;machin erypassseeaeeeer errr cee nse eect eee 17, 900 14, 900 22100) F ee eee
ROW ETD AN tease sees aes ae eee ise eer eee oee cere ccene 35, 200 28, 200 10008 eee ee x
Mardian die quipmenttesssssase ene ee eee eee cree eee 28, 350 27, 200 aL 150} erate
DY Baye Kaya ee ee Ney POY aN YALE ge se st hs 14, 890 14, 300 590 ae
Mire ProtectioMecc “ess sece ose eee se eee esse oe eee seas ears 10, 800 10, 200 6008 | Sie
Machine shop iceccs ec saan seein) aera ec Seer ee ease 2, 880 2, 600 280) os eee
iPlansandspeciticationses~ seer hese ee seers cer ees eee ee eee eere 7, 650 Upc Sap secnenallosssoccc s=
Totaliaeyse ss tareice sere fayavagesat esate Nis at tin Sterol age SE ae ead 214,810 | 189,900 24,910 | $127,772

The present worth of the milling plant is the value at the beginning of the operation
on the sale area. The total life of the mill is 15 years, 3 of which are prior to and 12
during the life of the sale. The plant has a wrecking instead of a residual value.

Total investment, logging and milling plant.

Initial | Yearly | Total ee Hesidual Average
Item. invest- | deprecia-|deprecia-| 7 act. | wre cking invest-
men, tion. tion. meats Sih. ment.

Worsineyplantec meester je eee eee eee $271,370 | $26,074 | $312,895 | $156,590 | $115,065 | $220,740
Milling plant............- Lee eee 214, 810 15,825 | 189,900 |.........- 24,910 127, 772
Logs in pond and woods.........-...---.. T5000 si cereale eee ee ere aes 15, 000 15, 000
MuMibersineyardess ae eee eee BS OOO [ere eee pee eter Ceres |e see nas Sees CEE | eecadssuc
TOGA eS ass ore ae a ease ee 589, 180 41,899 | 502,795 | 156,590 | 242,975 451, 512

Working capital.

Initial | Average
invest- invest-

ment. ment.
UN CCOUNUSITECOLVADLO = 215 Fe eae 2 ee Sera eis ec OY See Pane ay ge Nr Pen eee NOOR ye $62, 000 $62, 000
Advan ceistum pages /40 i. Meise). 8 ON Ea) ae snk Ap Cer ene eee eee eee 5, 500 5, 500
PSUBT) 0 Ob (=i Sesto eA SS eee OUNCE A ra. deo i RU ER CSE A IR Hy as a Ta Pas Tek ae 18 6, 500 6, 500
CEI) ce a COU LSI ZA Oa ES eM ED GE a UA PS Re aE ls 10, 000 10, 000

SEG aN Se cect io aie ie 0 SE Selah Th Ag ae aca at Re RS a 84, 000 84, 000

\

CONSOLIDATION OF FOREST LANDS IN OREGON. seal)

Milling costs.

Item C M G. T D Total
Milling pOndsiOlCariesa ee ae eicscre a sees siaceaiseccee [Piel aera dal oe caenel laawarere becoccas $2. 25
(Mainbenian coepsase eisai = rales eneloop eieic es cece la paterete: ee BONGO) | Sse Beal eras weiare peers = 56
Owjerhiead ys cei ee ee ce ae Seek Soy Se apeidec ays scald w acpele eee celeees ooige EOBG UO) Wee a oesellancweore - 50
WN Geis) CHG L IAGO BNICOS | Kose dake Bebe oo deep Oon Co ONce Is SABE AE Bo SSeeease lasaeraae S05 200 |peeeeeee - 20
Salary. Sos nédcubotouetondetoocdeodandospoEbacuSHnersosl esuesoulsHebaees BOLIC EHCE Ge atone ae Say
Costelumber, tally es os. ee Soa ee os 2. 25 56 1.07 QO ual pase 4.08
IHD TTOS CHCA S «. oSeUC se Cea ee RU UAE REC ONS SORTA AUG HCO [SERIA e Gals Eeeleres nel (eons Rey aie legis ese Leeder Auras 61
4.69
IDG HOOE AGS Suna seo dame GAGA EOC ECTS TA Se IS Pien es te) | aetesene ge ee eos eae $0.35 235
MD) EPUCCIAUIONYOMOLLUME priya ieta Seite erst arc lessy apoio poem siete gellar ane ec aee alee Sl We aoe 05 -05
40 5.09

}

MallingycostilessidepKecia toms artsy het iste ste elt a stroke fe celts vere eee pele isrates aie istaree are cae rel enorme ema $4. 69
NeOP SIN PCOS tHESSIGe pKreClaliOMise | ean sen eA sae ne aegeeba e i See RS Se ee ee 3. 83

HD) SPORE CLA CLO ra pera ira yeas arlene pa NS EU ey Dead RE AON fk . 40
1D) SpPRECIAtION HORST Sere ais es nary rend 2) NU chee Magi sels ee a een SOE al aha eee We ee - 65
1.05

Douglas fir and noble fir.—The Douglas fir is admirably suited for the manufacture
of No. 1 common lumber of all sizes and patterns, with a fair percentage of select
common. The quality inspection shows an average of 104 per cent of No. 2 clear and
better lumber. This amount can be produced with reasonable care in manufacture.
It is true, however, that in texture, mellowness, and color these upper grades will not
be equal to those from timber in the coast region.

The small percentage of noble fir is included with the Douglas fir. The quality
averages good, the best of any species on the area; here and there occur many single
specimens representing the typical growth in volume and quality. It appears that
in places noble fir has been tallied and computed as amabilis fir.

Grades of lumber based on No. 1 logs, 3 per cent; No. 2 logs, 28 per cent; No. 3
logs, 69 per cent.

No 1 V. G. flooring, 1 by 4 inches, 1.2 per cent, at $25.10........-...---.-..--- $0. 30
No. 2 V. G. flooring, 1 by 4 inches, 2.8 per cent, at $22.10..............--..--. . 62
Now 2 Ee Gatioorins. “1 by finches: i per cent, at) $13.80 0 222 2 eas Se .14
No. 2 clear and better finish, 2.5 per cent, at $25.20.......2.......------------ . 63
No. 2 clear and better siding and rustic, 3 per cent, at $16.10..............--- . 48
Noworclean siding and) rustic, 3-0 pen cent, at, pl210s 2222205. 6a 22 ee . 42
CarsillswiNost common oyper cent, ati pla o0ns 5.5.6 osae-io = 2 Saree ls eye es io
SelectteonmmonAypercemteatipla. a2 cose cee asc acces os he doc ees So aces 52
Timbers, No. 1 common, 40 per cent, at $10.30.............------------------ 4.12
No. 1 common dimensions, 15 per cent, at $9.40.......-.------------+--------- 1.41
No. 1 common boards and shiplap, 10 per cent, at $10.40...............------- 1. 04
INO 2) commons Sapern centages ease) ca eiela na cere ses sain aren ssraeers . 06
Nomercommone4 7 per cemt. ati paca ces 222 oe cea oe elles ce nena = . 20
Tle UZ?

NSH ETCENERS) VEN Sis SEG SES es Re cE NR $11.17

OGL ssp eG be ES AON Oe Ee IO Eee ES ear Ua Ey ea See A 1.48

12.65

APD ISOM eae a ee ee were ees. 4) RIS ut aa Rd eS ectopic GSU le o Aly

12.48

Wirlerawelelnts es) Oe ere tier pe eG SANT eee Aly a ee Sp ene aah Sa EY . 90

AST aT hy 3 epee esr ee ere oA IN mis Aa Ge Nn aca ad GCs Ta a . 20
ae PLES

MinlliMeRCOSt Mle SSE Pre Clatloms sale) ai he etss tae eetyaiaars(aecte setae 4. 69
ogoimencostulessdepreclamomes 4555 (ois. ai iuns ee hea Be le 3.83 nee
AN AfexT; ocinerentevay spate paces eutrys PN Soar ey OS AE RON Sc eibl oN aaa epesur es ie ave aewievaabe 5. 06

One CONSOLIDATION OF FOREST LANDS IN OREGON.

Depreciatroms: milling) ee. ooo RAG Oak NN pata Rea eee sae eae $0. 40
Depreciation, Jog emg xc. 22 ie site e155 Be ete a see 1) By Mises gE em ta ee . 65
1.05

The Mount Hood Railway and the Oregon Lumber Co. use slabs from the mill for
fuel in their locomotives. Surplus slabs are sold at the town of Hood River and in
the valley; this surplus is not large, as the locomotives require most of the slabs pro-
duced. The price received for slabs could not be learned, therefore their value is
computed on a fuel-value basis, which has been placed at $0.20 per thousand feet.

The overrun value in this appraisal is 13.2 per cent of the average value of the
product; the overrun in volume, 15 per cent. The product being cut into heavy
material and the taper of logs quite large it is believed that this overrun is justified.
The gain from overrun in Douglas fir 1s $1.48, from slabs $0.20, from underweights
$0.90 per thousand feet, a net gain of $2.58 per thousand feet, which added to the
average value of $11.17 makes an average value of $13.75 from which $0.17 per thousand
feet must be deducted for discounts, leaving an average value of $13.58 per thousand
feet log scale.

Discounts.—Discounts are based upon two-thirds of the value of the cut, being dis-
counted at 2 per cent. This makes a discount of 1.33 per cent on the total cut, which
is the basis of the discount of $0.17 deducted from the average value plus overrun
of $12.65 per thousand feet.

Western white pine.—This species comprises 1.1 per cent of the total stand, it is of fair
size and quality, and is estimated to cut 20 per cent No. 2 shop and better.

Band: better, 2iper central SAaeats sees yeh ees ene Pee aN a $0. 90
CG: select. 3-5 percent at GA0 shen gases Sei Nee Gee ier es re 1. 40
Deselects di by yoemicemt tat, BAM ss iN i a ayes arn erage ge . 40
Nos shop 4 iperece mt, Hat ape Oy ape i te cartes ne tate et Gigs ga ree Ben 1, 20
IN.of2:shop;.0; per Cent wat P20 0s. 8 oie nee toe eee 8 Nae 1.80
INow3:shop,\3) per Cent, at pl4 ses se eee eee eee e ae "ola Efe Serene Wr acaen SD ae . 42
Nos jcomimon, 4 percent) atip24 35 pop cael ae os ee ie Oe ae ere nan a . 96
Nos2 common, 30 percent, ati Glos soe. 2 see eee eet eee eee 5. 70
No: 3acommon, 3d percent, sat play eee oe eR ea a 4. 90
No? 4and’5; commion;/8: percent, at SOs ss. secre eee ea Gers bebege seeds . 80

18. 48

The cost of operation is higher than in the other species, due to the fact that this
species does not occur in any body, but scattered singly throughout the area, making
it necessary to rehandle the product in small quantities, which is an expensive opera-
tion.

Average. value ic 22552 Se Mee Pe ete cee RRR Jee tse ce et are nana $18. 48
Ker Gi Bole ction leae rata ree tyne tec IR Sean Anant CAM LUM Mantas ean pI Ae 1 o2
20. 00
Discowmts: 22 65 Py See ee ns ae Ue PN A ORE aR aga nee a . 26
19. 74
ROE of eae ae aealitsh ens R ence eA RRP R MEA Athy) stale oa . 20
plone
Cost otzproductions lessidepreciatlonses sce sen eerie eee ee eee 10. 00
Moan: 37 Pon ent ON ON AE AAR Ll ACERS We 9 a et 9. 94

Hemlock and amabilis fir.

Value | Propor-

Per cent +
Grade. per thou-| tional
ofeach. |"'sand. | value.
(OforaabuclorayobbeaKeai hoya eee s ar aeener te Aten C We aoe A ie am aue 40 $9. 40 $3. 76.
INO 2sV 0 ORG ETE Osea OOS Se Me ET ES rd ete eee eee 35 10. 40 3. 64
INO 2 Hb Oxcer acl ees 2 MN a SECA ee a UREA she CUP erear nace rh tees Ne ne 25 6. 00 1.50
AV OTA CIV EINIO So oUt Se ete LN a eek Ula DR at Uo are kL ira (Fea et | 8. 90

CONSOLIDATION OF FOREST LANDS IN OREGON. Peal

AXWRTEGE VUNG LB Ses SE SR IIR ei Sale aah laa ona aneermar $8. 90

(OW CRA Rads cca dee SoG Rb BE eS EES AGE OE eas Ae ee tee PO Ibs Aly

10. 07

VT SUSE DIOLS spy kg ee es SN ge SE SE SR 18}

9. 94

Underweight. ob bebe EE IEE SEEN BS IO Oe reel ies SIC eee gee 1.10

SVEN OS an ere evenere SiGe ae a RIES Ect sige Looe are Ga 7 AL cats oS aR aE ROG 20
: $11. 24

Milling, less depreciation........-....-...-.- SOs Baile Mie a RE ATG 4, 69

Mosomeamessidepreciatione (os sence st sss ae ol Gee oe ens 3. 83
x 8. 52
2. 72
WepreelalOumnmilllino pews ee ere Ae ee RR ea eee a a a . 40
Depo Ke eratOMe nl OO MUNG Ms ot eee El Se VES A hue Suh sar ie Sy . 65
1.05

Overrun value is $1.17, underweights $1.10, slabs $0.20 per thousand feet, a net gain
from these sources of $2.47 per thousand feet, which added to the average value of
lumber of $8.90, makes a total value of $11.37, from which $0.13 must be deducted,
making a net value of $11.24 per thousand feet log scale.

Western red cedar.

aeper cent No: 2 clear and better finish, at $35.-........22.2...002.20222--: $1. 05

80 per cent No. 1 common boards and shiplap, AGB Mareen ye erseeel ayer aie 8. 32
Hie pemcenti Nost2iandis common’ ab PG ees hse aa sees Sl ee 1. 02
10.39
ASV CTRNRSY RVD aS a STS RI ene et ANAT el aL a eer $10. 39
(DY CLG ATR se 0 esen e e Wooeoo sar suscunsmamemoceEE aoe Sit
11. 76
IDNISKOOUIONHSS Sl ae ae ROS Se ONS OEE Sy na ee Rens Um en ree an ALG
; 11. 60
iL TROLS CS SAREE Ae Gabeira mci ete cree namie ae BRS en 1. 25
SUB OVS ects ee BN Si RE a i et Pr em a Up 0 AIR re oe . 20
: — 13. 05
Mallineccost lessidepreciatomens 2.8 SOL ea te a oh 4. 69
Mosoimercost less: depreciation sae hose oe sealer st cle ac ce Sele oe al 3. 83
8.52
JALAN Sie SSG ESN (Gs aa orl Me SCE UE Rar ato ah nies Ree 4.53

Investment and profit margin.—Total average investment in logging and milling
plant, logs and lumber in stock, ts $451,512, on which a margin of 20 per cent is allowed,
or $90,302 per annum, which prorated over a cut of 40,000,000 feet per annum is $2.26
per thousand feet.

Average investment in accounts receivable, stumpage, supplies, and cash is $84,000,
on which 8 per cent profit margin is allowed, or $6,720, which prorated over a cut of
_ 40,000,000 feet per annum is $0.17 per thousand feet. The combined profit margin
is $2.26 plus $0.17, or $2.43 per thousand feet log scale. Depreciation is $0.65 on
logging plant and 80. 40 on milling plant, a combined depreciation of $1.05 per thousand
feet log scale. Profit margin and depreciation is $3.48 per thousand feet.

22 CONSOLIDATION OF FOREST LANDS IN OREGON.

Selling | Operat- 5
miice” | ine cost | Menem
@)eDowglasinsan diol e iin eee eee tea aaa eee ae eee eterna $13. 58 $8. 52 $5. 06
(QVawihitte pines Scores Sse As eee eee eran epee ee ee 19. 94 10. 00 9.94
(3) Wiestermnediced arte ees sae recieaa cemeteries eerste ere inet nse 13.05 8. 52 4.53
(4) Western hemlock and amabilis fir..............-.-../.--.------------- 11. 24 8. 52 2.72
(1) 73.3 per cent by $5.06=$3.71
(2) 1.1 per cent by 9.94= .11
(3) 2.5 per cent by 4.53= .11
(4) 23.1 per cent by 2.72= .63
4.56
Depreciation $1.05 plus profit $2.43 =$3.48+-4.56=$0.7631.
(1) $5.06 by $0.7631=$3.86
(2) 19294 by = 47631 — 97258
(3) 4.53 by —.7631= 3.46
GQieZei2sbiye = y03l— e207,
Prices
approved.
@) $5106 =—$3786—$1.20; Douglastinstumpe ee | aoe = sep ee ee eee $1. 20
(2) $9.94—$7.58=$2.36, western white pine stumpage.............----------- 2. 50
(3) $4.53 —$3.46=$1.07, western red-cedar stumpage.-_..........-.------------ 1. 20
(4) $2.72 —$2.07=$0.65, western hemlock and amabilis fir stumpage.........-- 50

Cedar poles —The major portion’of the cedar stand is of low quality, varying in tree
sizes from small poles up to 5 feet in diameter. It appears that there is, on the
lower elevations, small cedar timber that is more valuable for poles and piling than
for sawtimber. While no detailed estimate was made of the percentages of sizes, the
number of each length and size as set out below is the result of several acre estimates
taken at random.

\

|
| i
Poles. | Length. Dimensions. | Maret
; Number. Feet. | Cents.
Groupyeee aaa 1,000 20 | 6-inch top 120 000/lin'eanteetsss4-peee ee eeeee seers 5
1, 500 25 | 6 to 7inch top= 37,500 linear feet-.-.......-.-.----.-.- | 64
3, 000 30 | 7-inch top —7 90000linear feet sseese ese eee eee eee | 8
(CHRO GI) Aesosesgussee 3, 000 35 | 7to 8 inch top=105,000 linear feet..-......----.-.----.- 9
2, 000 40 | 7to8inch top= 80,000 linear feet........-...-------..- | 9s
Groupis-seee22 Heme 1, 500 45 | 7to8inch top= 67,500 linear feet.-...-:...-...------.- | 10
1,000 150 | 7to8 inch top= 50,000 linear feet...........--...--..-- | 11
Rotaleaeeees |e SOOO" Mee seeee 450:000iineanteetssee= sees - eee eee | aN Sra Se

1 And up.

ae poles, average length 35 feet, representing approximately 800,000 feet log
scale,

Average values.—Group 1, $0.0755 per linear foot =$0.075; group 2, $0.0927 per linear
foot=$0.090; group 3, $0.1042 per linear foot=$0.105.

Pole costs.—Cutting and peeling, $0.0125; skidding and decking, $0.0275; loading
and railroad haul to Dee, $0.0075; reloading at Dee for final shipment, $0.0075;
general expense, $0.0050; $0.06 per linear fect for 40 feet and under; one-half cent
higher for 45 feet and up.

Value. | Percent.| Cost. Margin. | Profit. eee
(Gagoynhaye Ipieuwenyeprn are ak. Sa Men Rae eea el s $0. 075 33 $0. 06 $0. 015 $0. O1 $0. 005
(ENON OL elSs sie ey eae Lae: Sea nia eea ea . 090 41 . 06 . 030 -O1 . 020
GO Up eae MV eG ts atk AN cs ai NE - 105 26 . 065 . 040 - O01 - 030

Average stumpage price for 450,000 linear feet, $0.01765; total value, $7,942.50.

CONSOLIDATION OF FOREST LANDS IN OREGON. as)

The selling prices per linear foot are the most relable that could be obtained for the
years of 1914-15, and three months of 1916.

Applicant.—The applicant J. W. Palmer, of Hood River, Oreg., was engaged in
_ the milling business at Blaine, Wash., several years ago. Mr. Palmer has had a wide
experience in lumber manufacture and selling in Minnesota and the south. He is at
present living on his ranch near Hood River. He stated that he and his associates
have an option to lease or purchase the Oregon Lumber Co.’s mill at Dee, Oreg., but
have not decided which they will do, but in all probability they will buy the plant.
In conference with the applicant, Mr. West, general manager of the mill at Dee, has
either been present or his name brought into the conversation. Mr. West has made
the surveys for the railroad by which the timber will be tapped.

Fire lines.—A fire line should be constructed around the exterior boundaries of the
sale, these lines to be constructed as logging progresses, and should be built in accord-
ance with contract specifications. All dead trees should be felled as logging pro-
gresses.

Administration.—The sale should be in charge of a man who has had experience in
scaling and sale administration. The manner in which the timber will be opened
up will determine the number of scalers required; if the cut is concentrated so that
the yarders are working close to each other, one man can handle the scaling, otherwise
two will be necessary. The Oregon Forest has not a man at present that could be
assigned to scaling or administration. Provisions should be made for increasing the
force by two men.

Management.—Provisions for reforesting the cutover area by the methods of broad-
cast slash burning and reseeding by the reservation and preservation of virgin areas
and single totally defective and other trees is not as simple as in most Douglas fir types.
The most serious factors in leaving seed trees or groups of seed trees in the nature
stand are that, first, the timber in the Douglas fir type is tall and of scanty crown,
making it very susceptible of windthrow, aside from being very poor for producing a
satisfactory volume of seed. Again, selection of seed groups on points and ridges,
where the timber is short and reasonably safe from windthrow, the stand is, in most
instances, made up of thirty to fifty per cent of hemlock.

It is not believed that there is a sufficient quantity of totally defective trees for
reseeding the area. There is, however, a fair number of veteran, wolf trees that will
not qualify as merchantable. These trees occur mostly around the edges of rock slides,
but many are found here and there throughout the area.

The stand outside the sale boundary is made up of a stunted growth of hemlock,
Douglas fir, amabilis fir, and noble fir.

It is believed that the best plan to follow would be to reserve areas on points and
ridges where the timber is reasonably safe from windthrow, protect all unmerchantable
green trees, and reserve in some cases partially defective or other single trees that
would be safe from windthrow. These three safeguards together with the stand
outside the sale boundary will be sufficient to reseed the area in case the reproduction
that will naturally follow the slash burning is ever destroyed.

The water flow is an important factor in this region since there are large areas in both
what is locally designated as upper and lower Hood River Valley dependent upon
irrigation for the successful raising of tree fruits and berry crops. It is not believed
that the removal of the Government timber will in any way affect the stream flow.
The opinion is based upon two factors: (1) approximately 50 per cent of the drainage
area will not be logged. This area supports a fairly heavy stand of unmerchantable
timber, practically all of which is located on the heads of the several streams forming
the main river. (2) Ladd Creek, the principal tributary of the West Fork of Hood
River is a glacial stream. Also, McGee has its source near the perpetual snow beds
of Mount Hood.

W. T. AnprEws, Logging Engineer.
L. A. Netson, Lumberman.

Mr. Greetey. I might leave with the committee, for examination
by members of the committee, a complete set of maps, estimate
details, and valuation appraisals on a watershed in Idaho. They
will give the entire record from the start, including the estimates,
topographic maps, and the method of arriving at the value of the
stumpage.

24 CONSOLIDATION OF FOREST LANDS IN OREGON.

STATEMENT OF HON. C. N. McARTHUR, A REPRESENTATIVE
FROM THE STATE OF OREGON.

Mr. McArtuur. Mr. Chairman and gentlemen of the committee,
this measure is of great importance to the city of Portland, whichis
located in the congressional district which I have the honor to repre-
sent. Portland is a great city of nearly 300,000 inhabitants and has
gone to considerable expense to provide itself with a wholesome and
bountiful supply of pure mountain water. This water is taken
from Bull Run, a stream situate in that portion of the Oregon National
Forest, which was formerly known as the Bull Run Forest Reserve,
and which was set aside by Executive proclamation a number of
years ago. The intake for the city water supply is approximately
30 miles east of Portland, the water being piped from this intake
to the city’s reservoirs. The Bull Run Forest Reserve, which includes
more than six townships, is situate in the eastern end of Multnomah
County and in the northeastern corner of Clackamas County. The
actual Bull Run watershed is considerably smaller in area than the
reserve, but it has been thought best to include the areas outside
the watershed within the limits of the reserve as the growth of the
city will, within a few years, require more water than can be obtained
from Bull Run, so it will be necessary to tap some of the streams that
flow in other directions from the summit of the watershed. The
question of maintaining our water supply is vitally affected by this
bill for the reason that there are approximately 8,000 acres of privately
owned land within the reserve at the present time. It is true that
only a small portion of this 8,000 acres actually les within the Bull
Run watershed, but there is nevertheless a strong desire on the part
of the residents of Portland that all of this 8,000 acres be acquired
by the Government and maintained in perpetual public ownership.
The major portion of this 8,000 acres of land 1s owned by various lum-
bering and logging companies, the principal owner being the Bridal
Veil Lumbering Co. Thus far the operations of this company have
not seriously affected the water supply of the city and the company
has shown its willingness to deed over to the Government its logged-
off land areas within the reserve.

The Government at present owns a considerable amount of timber
land within the reserve, but without the limits of the watershed,
while the Bridal Veil Lumbering Co. owns other timber lands of
equal value within the watershed. Officials of this company have
conferred with the water commissioner of the city of Portland and
with representatives of the Forestry Service, and have agreed upon
certain exchanges which will enable the Government to take over
lands within the watershed in exchange for lands ourside the water-
shed upon the basis of equal value. The only obstacle in the way
of the consummation of this exchange is the one of legal authority,
and it is for this reason that the bill in question is being pressed at
this time. The bill vests in the Secretary of Agriculture—the
governing authority of the Forest Service—the right to make such
exchanges as he may deem proper and in accordance with the public
welfare. I feel quite certain that no man occupying this position
would ever abuse the trust imposed in him by exchanging valuable
timber lands for lands of less value and, therefore, feel that there is
no way by which the public could be swindled or defrauded by the

CONSOLIDATION OF FOREST LANDS IN OREGON. D5

passage of this bill. On the other hand, I regard it as imperative
that some measure of this kind be enacted in order that there be no
further logeing operations, or no settlement of any character within
the Bull Run watershed. These logging operations and the sewage
and refuse which naturally follow in the wake of settlement would,
in time, pollute the purity of our water which is second to none in
the United States. We desire to maintain not only the purity, but
the sufficiency of this water supply, but it is a well-known fact that
if land is once logged, the supply of water will not be as great as if
it were left in its natural state. The presence of trees on a watershed
tend to preserve the snow fall of the winters and equalize the dis-
tribution of water. When an area has been denuded by logging
operations, the winter snows melt rapidly upon the approach of
summer weather and flood conditions ensue. The promise of the
Bridal Veil Lumbering Co. to deed over to the Government its logeed
off lands means that these lands can be reforested and that within
a few years there will be an abundant covering of second growth
timber which will, in a measure, protect the headwaters of the small
streams flowing into Bull Run.

In addition to the 8,000 acres of privately owned land within the
Bull Run Forest Reserve, there are approximately 11,360 of Oregon
& California Railroad grant lands included within the exterior limits.
These lands are withheld from settlement for two years by virtue of
the Oregon and California land grant bill, recently signed by the
President, but I am preparing a general bill providing that they be
taken over by the Government and maintained in public ownership.
There has been an effort on the part of speculators and their repre-
sentatives to acquire these and other public lands in the Oregon and
California grant for selfish purposes, but I am confident that Congress |
will take the necessary action to protect public interests in this
matter.

The pending bill is of great importance to the people of the city
of Portland, and I trust that you will give it your favorable con-
sideration and report it out at an early date. The Forestiy Service
is heartily in favor of this measure and, while it is apparently local in
character, it is of great importance in that it affects the health and
happiness of the people of one of our great cities. I do not know of
any local bill that has come before this Congress that is of such great
concern as the one now before you.

(Thereupon the committee proceeded to the consideration of
executive business.)

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