Fire protection.

Since fire protection is one of the most important duties of the Forest Service, provision is made in all contracts that the purchaser place himself and employees, as well as the employees of contractors, at the disposal of authorized Forest officers in fighting fires. Reimbursement for such services will be made at the wages in vogue for fighting fire on the Forest in question, unless the fire threatens the timber purchased or property of the operator, or is started in connection with the operation. Under these conditions the purchaser is expected to furnish his available employees to assist the Government in fire fighting without charge. Efficient spark arresters are required on wood and coal burning boilers or locomotives. (Reg. S-10.) Inflammable material must be cleaned up in the vicinity of logging engines, and other precautions taken to insure against fire spreading from this source. Snags and diseased trees upon the sale area must usually be felled, whether merchantable or not, in order to remove fire menace and to check the spread of timber infection or insect pests.

WHEN CUTTING MAY BEGIN.

As soon as the contract is executed and the first payment made a portion of the timber will be designated for cutting and the purchaser may begin operations at once.

ADVANCE CUTTING.

Applications for permission to begin cutting in advance of the execution of the contract will be approved or recommended only to prevent serious hardship and delay or unnecessary expense to the purchaser. (Reg. $-8.)

The permit for advance cutting does not give the applicant the right to take all the timber which he has applied for at the rate of the highest bid, but merely to take such timber as he cuts before the completion of the advertisement. In no case will he be allowed to cut timber in excess of the amount covered by his deposit. If the only bid received is from the applicant for advance cutting, and if this is accepted, the supervisor will allow cutting to continue after the expiration of the advertisement until the contract is presented for execution, provided the deposits are sufficient. The bid must be submitted and a contract providing for payment at the highest price bid executed immediately, otherwise cutting will be suspended until these requirements are met.

PRIVATE SALE OF ADVERTISED TIMBER.

Contracts to dispose of timber which has been advertised but for which no satisfactory bid was received or sale consummated may be made at any time, through private negotiations, by the officer having authority to sell the amount of timber involved. The price must not be less than the highest price offered, if any bid was received, and in no case less than the minimum named in the advertisement. (Reg. S-9.)

UNADVERTISED SALES TO SETTLERS AND FARMERS.

Sales to homestead settlers and farmers under Regulation S-9 will be made without advertisement, in any amount desired, at the price fixed annually for each National Forest region of similar conditions by the Secretary as equivalent to the actual cost of making and administering such sales.

Only material to be used by the purchaser for domestic purposes exclusively on homesteads or farms will be sold under this regulation. Such uses include the construction or repair of farm buildings of any character, fences and other improvements, and fuel. Sales under this regulation will not be made to agents employed by the person or persons who will use the timber cut, to manufacturers or others who propose to sell the material to settlers or farmers, or to persons who have on their own lands a sufficient and reasonably accessible supply of material suitable for the purposes required. Such sales will, furthermore, be restricted to mature dead and down timber which may be cut without injury to the Forest, as close utilization of inferior species and grades of material as practicable for the purposes of the purchaser will be required.

MARKING TREES TO BE CUT.

In order to insure proper restocking of the ground, all live trees must be marked or designated by the Forest officer before cutting. If desired, sample areas will be marked for the information of the purchaser before the final contract is signed. Usually one-tenth to one-third of the stand is reserved, either scattered over the entire tract or distributed in groups.

SCALING TIMBER.

Although the contract contains an estimate of the timber to be cut, National Forest timber is not sold upon mere estimate. Payment is made upon the actual log scale of the timber cut, according to the Scribner Decimal C Rule. Scaling will be done by an officer of the Forest Service and proper allowance made for defects. Purchasers may be required to skid logs for scaling, unless this will greatly increase the cost of logging.

Log lengths.

On all National Forests, except those in Alaska and west of the summit of the Cascade Mountains in Washington and Oregon, logs over 16 feet long will be scaled as two or more logs in lengths not less than 12 feet, if possible.

Special rule for Alaska and west slope of Cascades.-On the National Forests in Alaska and west of the Cascade Mountains in Washington and Oregon logs up to and including 32 feet long will be scaled as one log; lengths from 34 feet to 64 feet, inclusive, will be scaled as two logs, dividing them at the center as near as may be in even feet. Thus a 34-foot log will be scaled as an 18-foot log and a 16-foot top log. A 36-foot log will be scaled as two 18-foot logs. Unnecessary loss in manufacture not considered.

It is assumed that purchasers utilize the maximum amount of material in manufacture. Since the Government can not be held responsible for loss caused by poor equipment or poor management, the scaler will not take them into consideration.

The loss may be caused by too thick slabbing, cutting material too thick or too wide at the main saw, poorly "sized lumber, excessive "crowding" by the sawyer, poorly kept saws which "run," waste in topping and trimming through ignorance or carelessness, or sawing for a certain class of material regardless of the waste it involves.

Measuring diameters.

All diameters will be measured inside the bark at the top end of the log. Diameters will be rounded off to the nearest inch above or below the actual diameter.

Merchantable material.

In general a log containing sufficient sound material to saw out salable lumber equal to one-third of its contents as given by the scale rule is termed merchantable. This will be varied in accordance with the character of the timber and local market conditions.

Ties.

Ties are sold by the piece, actually scaled or counted, and the number multiplied by the average contents as the contract provides. The following ratios are used: 8-foot ties, standard face, 333 board feet each, or 30 ties to the thousand; 8-foot ties, second class, and 6-foot ties, standard face, 25 board feet each, or 40 ties to the thousand.

Shakes and shingle bolts.

Shake and shingle material is measured by the cord or by the thousand feet, board measure, acording to local custom. As a rule, a cord of shingle bolts is considered equal to 600 board feet.

Lagging.

Lagging is measured by the cord or linear foot or by the piece, or where split lagging is used by the board foot, each cubic foot counting as 12 board feet.

Poles, posts, etc.

Poles, posts, piles, and stulls are scaled and sold by the linear foot or by the piece, as circumstances warrant.

STAMPING LOGS AND OTHER MATERIAL.

After scaling, each merchantable log will be stamped "US" on at least one end; each stick of timber, tie, post, pole, and pile is stamped on at least one end. Cordwood is stamped at both top and bottom of each pile.

Scribner Decimal "C" Log Rule.

FOR LOGS UP TO AND INCLUDING 32 FEET IN LENGTH.

6.

0.5

0.5

1

2

123346

1223 +

1223 30

1123∞

51123

46791

45679

34567

67891

4

10

12

14 16 18

Board Board Board Board Board Board Board Board Board Board Board Board Board Board feet. feet. feet. | feet. feet. feet. feet. feet. feet.

feet. feet. feet. feet. feet.

20

14

37 44

70 80 90 100

90 105 120

98 112 126 140 154 168
135 150 166

95 111 127 143 159 175 191

84 101 117 134 151 168 185

12

13

14

99 107 115

98 106 115 124 133

142

Payment must be made for all timber in advance of cutting. (Reg. S-5, p. 26.) This, however, does not imply that one advance payment must be made covering the stumpage value of all the timber included in the sale. Frequent

installments are allowed, sufficient usually to cover the cut of one or two months. (Reg. $-6.) As soon as one installment is exhausted the purchaser is requested to make another.

This arrangement makes it possible to secure large tracts of National Forest timber at a very slight initial outlay and to hold them with almost no interest charges. The other usual carrying charges, taxes, and fire protection are eliminated. The timber is protected from fire by the United States throughout the life of the contract.

Requests for postponements of payments can not be considered. In sales of $100 or less the full amount will as a rule be required in one payment in advance of cutting.

Money deposited to cover cost of advertisement or to secure advance cutting may be credited toward the amount to accompany bid.

REFUNDS.

Deposits to cover cost of advertising and to accompany bids apply on the first payment if a sale is awarded to the depositor; otherwise they will be refunded. If, however, an examination is made and timber advertised as a result of an application and the applicant fails to complete the purchase, a sum sufficient to cover the cost of making the examination and advertising the timber may be retained, at the discretion of the officer approving the sale. (Reg, S-4.) Refunds to bidders will be made in Class C sales on vouchers prepared by the supervisor and in Class D sales on vouchers prepared by the district forester.

If a purchaser who has deposited money in a timber sale afterwards violates any of the terms of his contract, an amount sufficient to cover damages caused to the United States may be withheld from the refund otherwise due him.

Purchasers who have complied with the terms of their contract and have cut all the designated timber from the sale area are entitled to the refund of any balance they may have on deposit. (Reg. $-5.) When a contract is canceled by mutual agreement a refund of the amount not due the United States may be made, provided the terms of the contract have been complied with. Generally speaking, all money not due the Government on any transaction will be refunded unless the purchaser has willfully neglected to remove his timber within the time specified, or has been negligent in carrying out the terms of the contract. Refunds of $1 or less will not be made unless the purchaser definitely requests it. Refunds can be made only to the original depositor or his executor or administrator, and in the latter case an exemplified copy of letters testamentary or of administration must accompany the voucher. The original will be executed by the depositor or his legal representative.

DETERMINATION OF STUMPAGE RATES.

The minimum stumpage rates applicable in each proposed sale are determined by a careful study of the conditions in the particular case. A careful estimate of the cost of operation is first made. This includes the cost of brush disposal, cutting snags, and other special requirements of Forest Service contracts. If not already at hand, the average selling price of the manufactured material is ascertained for the locality in which the product will be marketed. A deduction is then made to assure the purchaser a profit at a reasonable rate upon his investment. The rate of profit will vary with the degree of risk involved. The stumpage rate for each species is then determined by deducting the cost of operation and the profit from the average sale price.

PERIOD OF CUTTING.

Ordinarily the cutting period allowed in each sale will be only sufficient to permit the removal of the timber at a reasonable rate, approximately equivalent to the working capacity of the plant. Sales of accessible timber usually do not exceed five years in length. However, in the case of inaccessible tracts requiring a large investment for transportation facilities an exception may be made and longer cutting periods granted. (Reg. $-13.)

READJUSTMENTS OF STUMPAGE RATES BY PERIODS.

In all sales exceeding five years in length provision will be made to have the stumpage rates readjusted by the Forester at the end of three or five year

intervals. The readjusted prices will be based upon increases in the average selling price of the lumber. A certain percentage of the increase in the average selling price during the two years preceding each readjustment will be added to the initial rates by the Forester, fixing the price for the next three or five years. This proportion is always specified in the contract and is intended to allow the purchaser a sufficient part in the increase in selling price to cover any possible increase in the cost of production. The readjustment provision will be varied in specific cases to make the contract equable for the purchaser under actual conditions as to amount of investment, estimated profits, risk, etc. Contracts may be modified to prevent unnecessary hardships to purchasers, when such modification will not cause damage or loss to the United States. No Forest officer can modify a contract verbally. (Reg. S-7.) ·

ADMINISTRATION OF SALES BY FOREST SERVICE.

The chief objects of timber-sale administration are to obtain complete utilization and to leave the sale area in the best possible forest condition at a minimum cost to the Service. Operations must conform to reasonable requirements in the interest of economical administration. Scaling or measuring timber must be made possible without unnecessarily frequent visits by a Forest officer. Cutting will be required in amounts to permit this principle to be applied.

CANCELLATION OF CONTRACTS.

Contracts may be canceled by mutual agreement when for valid business reasons the purchaser becomes unable or unwilling to continue operations, provided no loss or damage to the interests of the United States will result from such cancellation.

Enforced cancellation may take place on account of serious violation of the terms of the contract by the purchaser. This action is taken only by the superior of the officer who approved the contract, and after the purchaser has been given a reasonable time to show cause, in writing, why the contract should not be canceled.

MONOPOLY.

Should any question of monopoly through the possible control of large quantities of National Forest timber by affiliated operators arise, a certified statement of the relation of the applicant or operator to other purchasers of National Forest timber may be required. A certified statement of the membership of firms and lists of stockholders in corporations may similarly be required. Lumber companies already holding large amounts of timber on private lands may be refused sales if there are any other purchasers, and companies having one sale may be refused others until the first has been cut.

Appraisal of timber.

TIMBER SALE REGULATIONS.

REGULATION S-1. No timber shall be designated for cutting, by stamping or otherwise, until the officer approving the sale is satisfied that the cutting will preserve the living and growing timber, promote the younger growth, and be compatible with the utilization of the Forest. Upon application for the purchase of any timber or in any cases where timber is to be advertised in advance of application such timber shall be examined and appraised, and the area from which the timber is to be cut shall be described by legal subdivisions or otherwise. The officer making the field examination shall report the quantity and value of the various kinds of timber involved, and shall base his appraisal upon the character of the timber, the cost of logging, transportation, and manufacture, and the sale value of the manufactured products at practicable markets. (Issued October 31, 1911, to take effect December 1, 1911.)

Authority to make sales.

REGULATION S-3. The Forester is authorized to make timber sales for any amount on any National Forest, provided the limit fixed by the Secretary for any Forest is not exceeded by the year's cut, under sales and free use on such Forest; and to delegate this authority for any specified amounts to the district foresters, but in no instance to exceed 20,000,000 feet board measure.

The