2 tn a4 Aeeeat *% rash CONSOLIDATION OF FOREST LANDS IN OREGON HEARINGS BEFORE THE COMMITTEE ON AGRICULTURE Ye", HOUSE OF REPRESENTATIVES SIXTY-FOURTH CONGRESS First SESSION ON H. R. 13046 FRIDAY, AUGUST 4, 1916 WASHINGTON GOVERNMENT PRINTING OFFICE 1916 lroy Ze Ne \ \ Dé of pe SEP 9 1916 Pe 7 % e oa : . CONSOLIDATION OF FOREST LANDS IN OREGON. COMMITTEE ON AGRICULTURE, House or REPRESENTATIVES, Friday, August 4, 1916. The committee met at 10.30 o’clock a. m., Hon. Asbury F. Lever (chairman) presiding. The Carman. 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 his report. I 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 areport 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 ‘land 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 |. 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- gress passed the act of April 28, 1904 (33 Stat., 526). This act provides a penalty for trespass on these lands by anyone bebe 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. & CG. 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 CCNSOLIDATION OF FOREST LANDS IN OREGON. about 2,600 acres), the Crown Ca‘iiornia Pu'p & Paper Co. (owning about 800 acres). W. E. Goodfellow (owning about 1,240 acres), while the ba:ance is distributed in small lots ranging from 40 ares upward. 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 for 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. In addition, it is desirable 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 asa 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 with final recommendations. The final recommendation is not necessarily a ‘‘yes”’ or ‘‘no”’ decision upon the applications, but is usually a constructive solution of the exchange 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 skill 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. li 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 approved 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 value to the reconveyed lands be patented to the appli- 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 ». ve such exchanges would be desirable froma public standpoint. In land exchange .~pi_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 cousidering a land exchange, although it may have important 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 privately 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-off private land intermingled with stands of valuable Government timber might result in grave injury to public property, 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. Accordinely, 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 in order to effect exchanges advantageous to the private owner as well as to the public. Such consolidations usuaNy 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, Secrelary. 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. Anperson. I would like to ask one question. The CuarrMan. All right. STATEMENT OF MR. ALBERT F. POTTER, ASSOCIATE FORESTER, DEPARTMENT OF AGRICULTURE. Mr. AnpEerson. 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 inctances, 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 will have to adjust all three of those State exchanges in that way, that 1s, 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. 7 it by getting them to take the residue in nontimbered land, which would only have a base value. Mr. Havaeen. Are the differences in value always adjusted ? Mr. Porrer. They are always adjusted through a selection of land which, as a whole, would be equal in value. Mr. Haueen. 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. Porter. No; the exchange, in that event, would not be made unless the values were approximately equal. Mr. Hawuery. And unless the party who wanted to make the exchange was willing to take a less acreage ? Mr. Pottrr. Yes, sir. Mr. Heicrsen. 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. Porter. It only has what we call a base value; it would not be worth, probably, over $2 or $3 an acre—that is, if 1t is only suitable for timber. If it is suitable for farming, then it would have a higher value. Mr. Hetcrsen. 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. Porrer. 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. Heicesen. 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. Porrer. It gets value by getting land that is suitable for the production of timber, and on which it can afford to raise timber. Mr. Srpevte. Your object is to solidify it ? Mr. Porrmr. Yes; and it also solidifies the ownership so that it simplifies administration by the Government. Mr. Haw ey. 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. Steere. 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, 8 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. Pottrr. 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. Porrer. We can adjust that difference only by, adding a few acres. Mr. Haucen. By adding a few sections ? Mr. Porrer. By adding a few acres to the tract. Mr. Haucen. And thus making up the difference ¢ Mr. Porrerr. Yes. Mr. Haveen. 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. Havucen. In adjusting or appraising the values of these lands are the interests of the Government safeguarded in every instance 4 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. Anprerson. 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, I 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 datail. STATEMENT OF MR. W. B. GREELEY, ASSISTANT FORESTER, IN CHARGE OF SILVICULTURE, DEPARTMENT OF ARGI- CULTURE. Mr. Haucen. I would like to have you make it clear that the interests of the Government are safeguarded in every move made. Mr. Greevry. 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. AnpEerson. Let me ask you a question, because I want to get 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. AnpERsOoN. When you speak of lumbermen what do you mean ? Mr. GreeLey. The lumbermen 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. Haucen (interposing). How is their capacity for this work determined ? Mr. Greetey. 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 continued ¢ experience. Mr. Haw ey. 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 Cuarrman. Is there anything further, gentlemen ? Mr. Havcen. I think the letter from the department explains the matter very well. Mr. Greevey. 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 incorporate 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 Caarrman. What about that, gentlemen ? My. Reitity. You follow the usual practice, do you not ? Mr. Grmevry. Yes, sir. Mr. Haucen. Are there any water powers on any of these lands? Mr. Greezey. I do not know as to that. Mr. Hawtey. If 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 trickling ones, and the Gov- ernment would get them where the streams have become of more size. Mr. Greecey. I think that is the case, although I am not familiar with this particular section. The CHainMAN. Suppose you leave that with the committee. _ Mr. Haucen. How many exchanges are contemplated under this bill ? Mr. Greecey. There is just the single proposition involved of the holdings of several parties in the Bull Run watershed. 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. Haueen. 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. GREELEY. The exchange would cover only the 8,000 acres owned by individuals and not that owned by the city of Portland. The CHAIRMAN. Is there anything further, gentlemen ? Mr. Havaen. Is it necessary to go to that extent ? Mr. GREELEY. I| do not understand you. Mr. Havueen. Is it necessary to make all of those exchanges ? Mr. GREELEY. 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. Hawtey. That was what was to be immediately done because of the logging operations. Mr. Briggs. | 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 anybody going within the limits of the reserve. Mr. Herassen. Is it contemplated to take over the 2,000 acres owned by the city of Portland ? - Mr. Hawtey. 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:) SaLes, West Fork or Hoop River AREA, OREGON. [Report and appraisal by W. T. Andrews and LL. 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 is 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 S., 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 of Port- land, Oreg. The sections in the reserve bordering on the sale area are secs. 1, 2, and 3, T.28., R. 8 E., and secs. 22, 27, and 34, T.1S., R. 8 E., Willamette meridian. The water supply of 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. dit 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 affect the water supply of the city of Portland. The total area of the West Fork Hood River drainage within the forest boundary is 18,7 80 acres, made up of the following: Acres Reviegatie@h Teincle 2k Jk eee eed OA er A ee ae eee en A ey Sa a Re ee 1, 960 SE DUGRLS SEL SES RES RE Es Cee aeiy 2 ene ena MP ee cee A ee 7, 340 ECO MMT ORCS Urge met tye tere ith ee ICS Ay ae a den Baaiedayotvtace A aor 9, 480 The sale area comprises all of secs. 1, 11, 12, 14, 23, 26, and 35 and portions of secs: 13 and 36, T.15S., R. 84 E., Willamette meridian, unsurveyed, all of sec. 6 and portions of secs. 5 and 7, 'T, 1 8., 8. 9 EB: , Willamette meridian, unsurveyed, all of sec. 23 and portions of secs. 13, 14, 24, 25, 26, 30,,and 36. Ds. 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 total amount is as follows: M feet board | Per cent. measure. | TEES) TR. 2 SORE Oe coe BOCES COBO Se te aeae Se aan Le ey Se Se een al 258, 006 | (e7 \MiRSHGID AWLORIO OUI a Cones prs ea cooRne tire cece et ee aenro aes Sabor a eb oOd ae cea oe 4, 000 | atl INGEN 225 5c Serecictoe oa Se ESP OED Meet pe MMe eg tee Mea A eye Me, PH par Ne 6, 000 1.6 VAG SHG Taras HEL | (CLS Lae ee rene a Brey ties Seon ee ceise vt eS 9, 000 2.5 WES EOTMENSIMIOC Kumar mame sso eee tee! We dec eS eR eee lek de een 63, 600 17.5 PEPE ESILASELUTe pS 15 ee ite eer Ae eel es salen es Smee SS Ao Tey. tisha Selah meee 20, 000 5.6 TUOEN RS 2 Be CAB EEOC raters nee een Bee ec PSEEURN alates Rata a eer sey sees TAC ope ye he 360, 000 100. 0 Old cuttings —There are no old cuttings within the boundaries of the area. } are no private interests within the boundaries of the pro- posed sale area. Portions of secs. 13, 24, 25, 26, 35, and 36, T.18S., 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 of 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. There would seem to be a favorable opportunity for a blocking of lands here so nasiio ky by the exchange of stumpage for land 1f the com- pany later acquires the private lands within the forest. Timber considered in the appraisal—tt 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. In the portion of T.18., R. 8 E. not included 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 it is estimated that there is approximately 100,000,000 feet. This totals as follows in thousand feet board measure: Neioael Adjacent Private eo ; forest national timber _ | timber not Area. Ri BOL forest considered boncidenad! Total in sale, | timber not in ap- Wai Bie 5 in sale. praisal. deal We Uepense S.,. 84 E., OVW. i... ees S60 0005 Bose ean ee: L2OSO00) ee acess pein rs 480, 000 MBBS TS Dis SN OP ee eee eae eed es Se 90, 000)||Paeeeeen 70, 000 160, 000 abc Ul Nino 1s Gel Se ee ee ee ee 260, OOO) | Lae asi ae ele ore at BR oh 260, 000 Outside forest ..... BSS SOOO OEE Ce TEND Screed ne cal Ln Cote. Bam Led ee ah gl Na 100, 000 100, 000 Ova ae Contino ate ee Seen eae eens 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 logeing 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 extremfty 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 iudgment would define the stand as above. The green timbey 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 is 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 soul. 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 treesin a suppressed or dying condition, leading to the assumption that deterioration takes place quickly. It is_ clear that the timber is on the dec line 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 mueh higher in quality. The timber on the tract under consideration appears to hoid -{. i-mbs 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 eccurs 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. ha 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. vine 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 covered 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 is prominent enough to form a type by itself, but the extent of this type is of 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 is 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 quality. ———— 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 great 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 in 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 gradient along tributary streams is too great to permit the construction of railroads up their v alleys. 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 b y 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 $4 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. Ii 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 difficult matter. The cut of the mill has been distributed by g ‘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 gistributed over the lumber values by grades. The appraisal is based upon the timber being manufactured at the sawmill at Dee, Oree., the use of the present railroad up the West Fork of Hood River, the constr uction of a railroad to and through the sale area. INVESTMENT, Railroads.—The railroad irom 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 pr ivate 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. V5 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. 1, 12, 13, and 14, T.18., R. 84 E., secs. 6 and 7, T.18., R. 9 E., and through secs. 24, 25, 26, 35, and 36, T. 1S., R. 8 E., Willamette meridian, and loading spurs to be constructed at landings. With this development 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 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 for 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 a rule 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 timber can be removed economically is by the combination of overhead and ground yarding, the equipment to consist of 3 overhead yarders, 1 yarder, | 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- : : Present 5 Residual Average Item. worth. WO value. investment. years. Consmienoniunder rails:= ce o29 .- 22teees doce eseieeetdes $22, 000 $10, 650 $11, 350 DiC ELAS LORINE SS soonao nonce. ns cee eet cw sce. seees 20, 000 10, 800 9, 200 aM oS po Ss Sse ctieele anise ede crore | 42,000 21,450} 20, 550 $32, 168 Logging plant railroad, under rails (23 miles). Z Addi- | . Addi- Invest- : Invest- ; : ment at | Depre- | tional | Average | mentat | Depre- | tional | average Year: - ciation | invest- Canes Years. | begi ciation | invest aS Ss. | begin- during | mentat | 12° est- ears. | begin- | Guring | ment at | i2vest- ning of year. endlof ment. ping of year. end of | ment. year, year. Meas year. | te tens: $53,850 | $4,487] $8,500 |........... Beets | $47,366 | $0,471 | $5,450 |.........- ae ee 57, 863 7,141 CiGoist tek aan Gee Grains 43,345 | 10,833 35530) esnaoanee Dis eee eee 59, 347 10, 016 A BOO): | eit) dooce Ee eee 36, 042 12,009 6; 200t ese cere eh eee 53, 831 9, 216 Cd eee Hee 8 30, 238) ho 15,109): 22: see ea eames De sae 50, 815 9,991 POOO) |ephocertac Pe sao gaya emi La I ee |-2----22-- Gs eA. 43, 374 8,391 Lyte Par | ee Le es | ia: a 40, 808 E860) (eel a 20) | oneal eee Total... 531,998 | 119,650| 65,800| $44,333 16 Logging plant—Rails and fastenings. CONSOLIDATION OF FOREST LANDS IN OREGON. Invest- A Additional eee ment, be- | }j°DTecla- |“ invest- | Wrecking | Average ; ginning Sale aoe ment at value. investment. of year. 8 year. | end of year. eee O ODES RSE SLE ASeaopadkartacaar: $33, 350 $1, 500 41, 050 1,914 48, 336 2, 328 52, 208 2,607 49, 601 2,607 46, 994 2, 607 48, 517 2, 792 53, 985 3,180 57, 005 3,459 53, 546 3, 459 50, 087 3, 459 46, 628 3, 459 POA srPSee Shes eccee ae Mice ee 581, 307 33, 371 43,190 $43, 169 $48, 442 Locomotives and tricks. ; See | Initial | Peprecia- | Wrecking | Average Years in use. linvestment.| 00, 12 value. investment. years. TOs. sa SIRS See a eens Sw oo yenige bse areas ees $81, 250 $65, 344 $15, 906 $56, 259 Investment includes present worth of one locomotive in use by mill company. Donkey engines. Invest- : Additional Years ment, be- pees invest- Wrecking | Average : ginning eae ment at value. |investment. of yeat year. —_| end of year. Drareeis oan sce cca yas De cemee See aa eee $47, 000 $4090) | Cee 3S oc aloe eee ae Ree ae 7 RS She ie Re en Ament Se 42,910 45090) | ofa oe Serio See ere eee eee SPesaeeheeas Se eteee ee he yee eestor 38, 820 4090+) ;< son aac ce seit] sei eee ee 4 plese sec ade tec weacenee Uso ems aeooes 34, 730 A090 ec ccece neces sce cee veeene eee eee Dis ERS Sate Secabs oes Sst ete akties me neta raisins Sa 30, 640 4510903) os veces omen eee has cone eee tema e ae eae Ga Mes ssesetee i. ee Laws be teeter ode eee 26, 550 45090") 2222004 c2c} seen a nce cee eee eee eees Wee deti hide cee cooks ete tees ce eeosecaeeee 22, 460 45090) | -.2i cen cicce|- cet Ree Se eee Borer re ied crepe pape Natticre eae See eerie tise Cree ete 18,370 45090!) ooosia ore ecins 3 ne oboe ee eae eee BS EBS asec ce COSUE A paceociama aces aac 14, 280 45090 | ocean ss! U.Glon steel eee eee 1 i ere oe ee Tare Se ae 10, 190 4, 090 $36;000: [225.2 22E See Se eee VD baie hrenitza bet ces seem ebeeme totes meee 42,100 4,090) }2222242oc22c|co00 ee ee 1 Se eR OPED Semen orca = a ores 38, 010 4,090) | sss c's Gece clot ecciieeecmel | seieee ee eee otal: ese isc aens eee eee eerie 366, 060 49, 080 36, 000 $33, 920 $30, 505 1 Camps. Initial Deprecia- 3 Average Years in use. invest- tion, 12 bah eS invest- ment. years. 7 ment. | Cee OMe SM cee oar ia Bie mek ara: ou $7, 800 $600 $4, 500 $7, 200 CONSOLIDATION OF FORES£ LANDS IN OREGON. 17 Blocks and tools. | Invest- Additional | : Wale ment at eeerer, invest- | Wrecking paede le bee beginning ane & ment, end | value, bs t of year. y of year. [tte Tl cag noel AoA dk eo $6, 120 SIF AOR ze eas Ps eee ke poh et PN en a dat ee 4, 720 I SAU Pa FH AS OS i a ae coho Osc cope eRe OSES aa eeens Re oe Lie 3, 320 1, 400 $s OUR |e 5 te Serta. NAC ee Ae Jt as See ns oe Cees RS Re 4,920 TRAOON EBook A Sees ee ae eee. Ran Wales 2o'3 5 cise Ste slag ae Jkieeie Jase e 3, 520 1, 400 LS BOOM | encore to ae ede tee ad = Ro a2 AEP ORS IPR RE Arce an, tea 3, 420 1, 400 BROT Gens See eal oe ee ncey ae. oe CRASHES. Ses See eee tc See ae Bun oaree 5, 020 bid leeenarerctecieacs [Seer rein ten een ek errr Le LSS. ER TE » 3,620 Nee eee eee aes serial tt oe eee Ost a ee ee ears oh Sey 2, 220 1, 400 SY OOO | ae te eae | RR Se | 1. UE 2 Rae See Sec ee eens ne Re Seo 3, 820 bE eS ae eee ee | afk Oea eRe I ao ae Tb oh et eR ae ae She BEE eas Se 2,420 1, 400 8) Us SSB eo oe dell RAE pee eee 1S RAE OS BERS CE Rete Se eer eee cr See 2,320 TA 00 ees SaeecS | DD eee chee eae 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. | Mainline railrodd'. 2s. 2225-22205 22 -. J< $42, 000 + ASA Ve 2 Lt: 65) 0) Ee eee $20, 550 $32, 168 Ra. lroad West Fork construction.......-- 53, 850 9,971 |. 119,650: | $65,800 |. ....-122- 44, 333 West Fork, rails and fastenings.....-.-.-.-- 33, 350 2, 781 33, 371 43,190 43, 169 48, 442 Locomotives and trucks.........---------- 81, 250 OS ON ER Oo oda (eee ewan. 15, 906 56, 259 WON Ke yIENEIN eS: 2 oases eames ae clacin 47, 000 4,090 | 49,080 36, 000 33, 920 30, 505 Wass cota oe esee seas Sicestouons 7,800 600 fig Pl ene ae 600 4, 500 Blocksand tools. ° -. 293525... J226 eae 32 6, 120 1,400 16, 800 11.600 920 4,533 Ot ee 2 2.56 DEAT SSR OR Le erence 271, 370 26, 074 312, 895 156, 590 115, 065 220, 740 Logging cost. Items. C. M. G. dN R D. TT Woods: Haitinotands bucking. 2:64. 4Pss5 hes Yarding and roading PRIBO RUTH OM oS see SCE Irena HIRES Siegen ee ce = Aces acteurs s/arais Siero Railroad: PTERAUIOM Stok sees Peete ole a conse Se wis ote HNIC eee cee fe foe os eood seen MemipPoraby: SPUlSsenGse Aw =e sees scene Maintenance: puacinedee a es. terean Oe ER ee HROUD EN OHMS Satan or ie Sees oes owes see STUER = 3 SEE SBE o SES ee ere WMouwkeysentings 2.22. ese- seca = ee Logging QUMP MCN se Sees cans cuee e Supplies: ‘Wire rope - 240 Oil and waste. . - 020 (SHISHA ED 6 ee eae aes ee ae ee i 035 Insurance and taxes: ETI yaITISHIRAACO/af oe sort ciated x cist oe eas 0)5.sifo slew sere|| Heeb ewee lo msicictne- $03060 7 ee Seine eecse a - 060 CUS SRES)- shes chet Coa a ee ie tog fae pate (eins [ee O80) Rese eee ne cee - 080 F.S. regulations: EaaPonroines and slash: DUrmine > Seee Nee na eee esis s cee ek eee eee ce. 10, 800 10, 200 600 | nate Ss See Machine shopers-ne= sn ee cei bees uns soaceabsbooncDdgoacoc 2, 880 2, 600 280. |.5.saeee IPeTans and spe chica lOnseee. ces eee eee aeee scene eee eee 7, 650 7,'650) || 222222 ecee| eee ! UO Ee Speearmnaocscan tor cpanoqnonaososasnosedmasaodsad 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 oe ee Average Item. invest- | deprecia-|deprecia-| j 7 vect- wrecking invest- ment. tion. tion. manat saeelnietl ment, Moreing plant... aces secs eeccencn ss ewaes $271,370 | $26,074 | $312,895 | $156,590 | $115,065 | $220,740 Millineiplant=e peace este cece ee 214, 810 1558207)|7 189: 9000 aaeeeeeee 24,910 127,772 Logs in pond and woods............-...-- AOU Ree eee Wee Geese Salignie ha SS oc 15, 000 15, 000 Hmiberin yard asad essence eae 88; 0008). os eos esata ees eeenee S83 OOOH ceria ere AN) GRAS 8 Sarerone SOA aan osoe ao SceLS 589, 180 41,899 | 502,795 | 156,590 | 242,975 451, 512 Working capital. Initial | Average invest- | invest- ment. ment, ACCOUNTS TECH VAIO aeee ene e alee eee eae $62, 000 $62, 000 AVANCE SUMP Are sities see ecs ke eh ee eeaces 5, 500 5, 500 DUP DUES fee sect eee eM Set ees Pere a ie I Na eRe asa ea AS ee 6, 500 6, 500 GASH 35 Stat f yo Reeth e RN? ee a ew BLA Nan DAE ne tte aCe em GEES SEO Same Beale 10, 000 10, 000 AG | ee Mele Us Ste Sateen os ee Rae eee at Aap ete ae 84, 000 84, 000 CONSOLIDATION OF FOREST LANDS IN OREGON, 19 Milling costs. Item C M G. EN D Total MULE HONGNCONAL To. 652 05 Skis cee Ble aeiediadeeeasoemes $2525) |aee ae |8s Ey Se eet tal. IS eee $2. 25 MAINEONAN COS. oe. 24s 2cc6 aise ee eee Hee Ran ae loo nee S056: eae So cal Mice ciao [oso eters 5 56 MOICIATIES ACES ree) aioe 2 olen Soe rale ale 8 tee Set Pete CTO an ee care fe vaieer eee CORSON oes ses ne ene 50 Taxes and insurance........... eS Rd RE SRE SE Selb sce sas ere see $0200 0 otek . 20 eeiper e825. wail Sa oan ROSNY Sack ORE ae ee ge 8Gs| ete: lsh Bee 57 Wosiwltimper tally... snsscocces cocner coe cranes 2520 56 1.07 BY 0) neeeeee 4.08 Lid OTRAS (Gh bi a a ee nee a ee ee ee Gace le pametae eke cea ic Bere asa aeeee 61 4.69 SONS TON EU TET UNO eerste nx ats avarnee ody peels BEe miele oernieie ete ame cherie nee eases al eee sate ate | stoiaes tral state einretets $0.35 AB) WepreeiatlonVOVerruns (fos. vee wes cas Sales oa cis lca sal eamecicte Hssinicssaalbete wees [ems ceia te -05 05 40 5.09 MAN PECOS HESS: CAOPLEClaLlOMes =. 424-4 s ae oes ee Selo fe a lo aislem acids sella oie te ees aaectee $4. 69 Logging cost less depreciation................-.---. BO COE ERE Ore ee CE note COCenOE 3. 83 8. 52 Wepreciatvion= MUling - <5 < 06 sons Saccyesineea etc hee Rosae 1s /s)sloie ere ices olateeas oS patniae, shattols slates] >eteetsio =e Pe vara . 40 WADLACINHIOM PGE PING. cet. vas. aaa aon sce meeees See ace ciels Meee oa sete ee coinien se ccttmenme nee ranieye . 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. Wo 1 VY. G. flooring, 1 by 4 inches, 1.2 per cent, at $25.10...........-..---.-8- $0. 30 No. 2 V.G. flooring, 1 by 4 inches, 2.8 per cent, at $22.10...................-- «62 No: 2 FG. flooring, 1 by 4 1nches, 1 per cent, at $13.80 ....-......---.---+.- .14 No.2 clear and better finish, 2.5 per cent, at $25.20............-....--20-2+5-- . 63 No. 2 clear and better siding and rustic, 3 per cent, at $16.10...........-.---- . 48 No. 3 clear siding and rustic, 3.5 per cent, at $12.10...........-..-.-2-------- . 42 Smilin, No. l-econtmon, 5 per cent; at $14:50. 2.22550... ifs 2see fe ce fee: ike Be rearanmon. 4. Wer Gent, Ab Glo. .s..c eek sled e oe ce y ated ce wa eee tae decaes ny fmpers. Wo. 1 common, 40 per cent, at $10.30.........-...-.22--0--552 2+ eens 4.12 Nom tweommon dimensions, 15 per cent, at $9.40: : 2222.22.52 2222.08s 44. eee 1.41 No. 1 common boards and shiplap, 10 per cent, at $10.40.-........-.--.------- 104 MUmecCemimnOn. 6 Per CONG, At G1... 4... 455 -cc05- 2 one eres oe Gee tee cee esses . 56 Rameevamuons, 4 Her Cent, at G0. 522.225 2 ksh 262523508 tees2 sess ance etse ke . 20 Dey, EMP EP eo) 28S US ays 2 oe aes aaa ayn tale eel ae he $11.17 MMM ers A 66S yeh ts ees needa s eds ase ese 1.48 12.65 TEIN MNES HN cha. Ryoho es Bs calles 17 12.48 MEET PERM 2 on 2) cola k nce 2 Pale ag wg Hae twee eeiame ees . 90 Se 6 Prey en acter va Cees Ps Rae staid Samimilnicde avec seioks . 20 $13. 58 Mlinnencont@iless depreciation... . << -<..-0c-+-eca+nceeseeesne tess 4.69 mies Cosh, less deprectation::. 22:20. : Wades eet ews ee see eee ewes 3.83 ae, . 20 CONSOLIDATION OF FOREST LANDS IN OREGON. Depreciation, milling... oo. sccc5 Paseo eee eee eee ae ee eee $0. 40 Depreciation logging 2. sea Se ee he eciee oe oe ens eee ne . 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 is $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 percent. 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. Biandsbetter}2 per centiat: S45: ye Geek Tee BAe: AE eee eee ee Sven $0. 90 Grselect, '3:5 per centAat P40 lee col SESE Soe he Ae ease eee 1, 40 Dselect;, 1 duper cent) ati P27: Pepe Ne eae eee te 2 Sane eee . 40 Nol lshops4 percent Jat $30.3 5.c2/ 982 22 Ae ee 1. 20 INO. 2 shopy 9h percents at 20205 Lo oe eae ae eis Se ee 1.80 No..3'shop,;3. per cent, at $14... 100220 Sey Bibb es Sa ee . 42 INool:common; 4 percent,jat $24.2 ete eek Ae oe iri ee ree ee . 96 No! 2 common,’ 30:pericent sat PlOn 228 Hane Set eee eee eee 5. 70 Noi:3/common,;35:per centMat Plau2e 22 evs one eee eee ee 4, 90 No. 4 and'5,; ‘common; '8iper centaatipl0lges soca. Sees ee ee eee eee eee . 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.