10 13be Conservative ,
THE CAPITALIST AND KCONOMIC
FOHESTKY.
An address read at the asocial inootiiiR h'-ld
by the Ainiirican Forestry Association on
August 2 , ' and 1,18W , at Columbus , Ohio.
Purport of Private Forestry.
Gradually people nro rising to a better
understanding of the term "Forestry. "
They begin to see tlmt eighty-five per
cent , of the woodlands in the United
States are owned by private individuals ,
that the salient point in forestry is the
business point , and that forestry does
not have a chance to exist in this country
unless it pays.
Hero and there "fancy forestry"
might be practiced for a short while in
spite of its unproductiveness , but fancy
forestry will never assume large pro
portions.
What the country needs is forestry
on a grand scale , which , however , the
country can have only by allowing con
servative lumbering to yield returns at
least equal to the o expected by the cap
italist from equally safe investments in
other industries.
In Europe investments in forests are
considered safer than investments in
government bonds. It is therefore that
far-sighted institutions , families and
individuals are fond of forestry invest
ments abroad. In this country forest
property is the only one which is not
protected by state authority , with the
result , that investments in wood-
lauds are constantly exposed to loss.
Fori'st Firth.
m
The main source of losses is fire ravag
ing the forest. "Whilst old trees , pro
tected by their heavy bark , ore as a rule
only damaged and weakened by con
flagration , young trees invariably suc
cumb to it. No wonder , then , that the
capitalist is anxious to rather withdraw
his money from the forest as FOOU as he
succeeds in selling whatever trees
are marketable. For him it means a
financial perversity to look forward to a
second growth. "Why ? Because he
knows a priori that the second growth
is unlikely to live. Only a maniac will
try and plant beets in the midst of New
York street. Five hours traffic will
sweep every trace of them away. It is
almost as foolish to start tree-seedlings
in an American forest continuously
swept by fire.
From my experience in the adminis
tration of Mr. George W. Vanderbilt'n
forests I can say , that on largo forest
estates favorably situated , fires may be
controlled to a certain extent only at a
comparatively high expense. Still ,
owing to the high premium to be paid
for the safety of the investments , forest
ry will not be able to pay that interest
which the capitalist must require. As
long as the people look at fires as an un
avoidable calamity like heavy rains and
severe draughts ; as long as they do not
provide for the protection of forests as
well as for the protection of any other
property , conservative lumbering must
be considered a risky investment.
Forest Taxation.
It is remarkable that the taxes on
forest land are high in spite of the fact
that the state does not do anything for
it. The economic authority for the
government , when squeezing taxes out
of the pockets of its constituents , lies in
the protection which the government
promises and bestows on the taxpayer's
property. In the case of forests , no
ptotection is given. But that is not all !
To crown the foolishness , in many cases
the forests are left at the mercy of
short-sighted tax assessors , who as a
matter of fact compel the owner to
either cut his trees or else to endure the
plague and annoyance of paying higher
taxes than the productiveness and the
value of the property justify.
In the case of young forests , no
immediate revenue whatever is deriv
able. The revenue will come only after
another GO or 70 years when the trees
have attained log size. Still the county
and the state require the owner of such
land to pay taxes during the period of
unproductiveness. How would the con
tracting architect or the ship-builder
remonstrate if taxes were imposed upon
the unfinished house or unfinished craft I
Hon. Verplanck Colvin , Superintend
ent of the New York State survey , has
advanced a new scheme , the plan of
allowing the owner of immature forests
to postpone the payment of taxes until
the time of maturity arrives. The state
will acquire that is Mr. Colviu's idea
a mortgage on the laud and trees equal
the amount pf taxes unpaid ; the mort
gage shall become due at the moment
at which the owner of the forest begins
to put the axe to its trees.
Taxes on realties , as every one knows ,
are sure to hit and therefore relatively
high , whilst taxes on personal property
are comparatively low , since every tax
payer is allowed to put his own valua
tion on his own personal property. Wo
all know that this different method of
assessment results in a comparative over
taxation of realities , and among re
alties of forests.
The commonwealth , there is no doubt
about it , derives considerable advantage
from the mere existence of forests by
their influence on public health and on
the flow of the rivers , and by the fact
that forests form the basis of the lumber
industry , one of the best wealth pro
ducers of the country. Thus the com
monwealth uses the forests for its own
purposes , and might bo justly held to
bear part of the tax burden. But far
from assuming this position , the public
nay we ourselves by unwise taxation
and by not offering any protection to
the forent , have made forestry the last
remunerative business iu America.
Forcxt Pasture.
Another item of considerable import
ance in the forest budget of many
sections of the country is the fast that
forest lands are considered every one's
lauds as far as their use is concerned ,
The damage which the berry-picker , the
ginseng-man , the moss-gathorer , the
hunter , the fisherman and other "in
truders" into private property inflict up
on the forest , is insignificant. Signifi
cant , however , is the harm which horses ,
cattle , sheep and hogs , driven into the
forest and authorized by law to roam
about unrestrainedly , carry with them.
As long as pasturing auimals are per
mitted to feed upon the seeds aud seed
lings , it is impossible to grow forests ;
and as long as the counties or the states
allow such pasturage , a second growth
of timber cannot bo obtained. It is no
more feasible for the farmer to raise
vegetables and cattle on the same land ,
than it is for the forester in the case of
seedlings aud cattle.
In olden times when forests were
property of the states , there was some
excuse for the practice of pasturing the
forests , the much more so as in many
sections no other use could be made of
the forests. From the moment on , how
ever , at which the forest became private
property , the owner should be entitled
to demand that other people be forbidden
by the state to use such property for
their benefit and to the detriment of the
owner , who has paid for the land and
who is paying the taxes.
No one will embark in forestry un
dertakings as long as the production of
the forest is endangered by fires , as long
as the forests are heavily and unjustly
taxed , and as long as all stock-owners
are allowed to use the forest alongside
with the rightful proprietor.
Miscellaneous.
Less important is the iinjust legisla
tion still found in many states which
enables the forest squatter by tilling the
ground for a few years to acquire
property under a colored title ; still such
laws should not be suffered by a civiliz
ed population as they invite theft.
There are other drawbacks of forestry
as an investment in the United States.
1st. It is more difficult to dispose of
forest realties , if the owner is compelled
or desirous to sell , than of any other
property. Conservative forestry is a
clumsy investment , and does not allow
of gains by quick-minded speculation.
2nd. It is not easy for the owner to
watch the faithfulness of those iu charge
of his forestry interests , which neces
sarily extend over a large area.
3rd. There are no foresters available
in America to have charge of the work
in the forests.
4th. An annual revenue cannot be
derived , unless forestry has boon
practiced on a large scale for a long
time.
5th. It is difficult to separate "net
revenue" from "capital withdrawn
from the forest , " unless stock is taken
