470310
CORRESPONDENCE
HELANDER, MELVIN H ; TAHOLAH INDIAN AGE
District Director
U.S. Indian Service
Building 34, Swan Island
Portland 18 Oregon
Dear Sir:
Reference to circular letter from District Director of 03/04/47.
As requested we are inclosing budget estimates for the Forestry
Division, Taholah Indian Agency, Fiscal year 1949, prepared by Mr.
Patrick Gray, Logging Engineer of the District Office, and Mr. Lester C.
McKeever, Forest Ranger, of this office.
Very truly yours,
MELVIN H. HELANDER
Superintendent
LCMcK:meh
Under the jurisdiction of the Taholah Indian Agency there are ten
Indian Reservations lying along the West side of the Olympic Peninsula
from Willapa Harbor to Puget Sound in the State of Washington.
There are approximately 185,000 acres of timbered land valued
principally for present and potential timber crops.
A cruise of portions of this area was made about thirty years ago,
but logging, fires, and storms have taken their toll to such an extent
that the information desired from this cruise is now obsolete and
inadequate.
New growth both in the old stand and in the cut-over lands makes a
detailed study of the timber resources necessary if a workable sustained
yield plan is to be carried out.
The time of the present forestry staff is so fully occupied with the
present work that nothing can be done towards a management plan or
surveys to determine the possibilities of increasing and conserving the
returns to the Indians of their wild life resources.
If a sustained yield management plan is to be carried out, a fire
protection organization with plenty of equipment is one of the best
insurances of crop rotation. If this organization is of sufficient
strength to strike hard and quickly at the first sign of fire, the
chances of sustained yield will be assured, but, if the fire protection
is inadequate to handle any emergency and large fires occur, the whole
plan of crop rotation is thrown out of balance.
This proposed budget is made up with the thought in mind that the
forest resources of this jurisdiction should be developed and protected
using highly trained, competent personnel, sufficient in number so that
no important phase of good forest management will be neglected.
There are some 185,000 acres of timbered land with an estimated stand
of 2,200,000 feet of merchantable timber under the jurisdiction of the
Taholah Indian Agency.
In order to properly administer this body of timber on a
sustained-yield basis to provide the highest income possible for the
individual Indian owners, an organization with the needed equipment and
funds to carry on the work of cruising, surveying, research, growth and
yield studies, management planning, and public relations is needed.
POSITIONS:
Forest Supervisor ............. P-5 .......... $5,905.00
2 Foresters ................... P-3 ........... 8,800.00
Clerk-Stenographer .......... CAF-5 ........... 2,896.00
Auto-Mechanic ................ SP-3 ........... 2,545.00
$20,146.00
EQUIPMENT:
2 Automobiles .................................... $3,200.00
Office equipment (Computing machines
................(Typewriter ....................... 1,000.00
$4,200.00
OPERATIONS:
Material and Supplies ...................... $300.00
Travel ...................................... 500.00
Repairs ..................................... 200.00
$1,000.00
TOTAL
..................................
. $25,346.00
If a detailed management plan is set up, approximately $71,000.00
would be needed to make a new cruise of all remaining uncut timber.
At present there are four active large timber sales and several small
ones in operation with an annual output of 56,719 M. feet board measure,
valued at $234,407.00.
There is also an area of 30,000 acres with an estimated stand of
520,000 M. feet board measure which is expected to be offered for sale
in the near future, besides many small salvage sales, the number,
volume, and value of which would be hard to estimate, but which take
considerable time to administer.
To handle this volume of timber, a force of men filling the following
positions would be required.
POSITIONS:
2 Rangers ........... SP-8 .......... $8,045.00
4 Scalers .......... CPC-7 .......... 12,044.00
4 Scalers .......... CPC-8 .......... 13,589.00
$33,678.00
EQUIPMENT:
2 Cars (Coupes or Sedans) ............... $2,800.00
6 1/2 Ton Pick-ups ....................... 9,000.00
Scale rulers, computing machines,
marking hatchets, hammers, etc. .......... 1,000.00
$12,800.00
OPERATIONS:
Supplies .......... $800.00
Repairs ............ 500.00
Travel, etc. ....... 900.00
$2,200.00
TOTAL ........................
$48,678.00
The duties of this staff consists of Supervision, Scaling, Marking,
and Surveying as this area is nearly all alloted and selective logging
is to be practiced wherever possible. The costs of administration will
necessarily be high.
Supervision .......... $8,045.00
Scaling .............. 35,000.00
Marking ............... 1,500.00
Surveying ............. 4,133.00
$48,678.00
TABLE OMITTED SEE ORIGINAL
As timber cutting increases, so does the costs of fire protection.
There are now approximately 60,000 acres of cut over lands under the
jurisdiction of this Agency where there is a severe fire hazard.
Although the fire season in this district is only about four months in
duration, they are extremely hazardous months.
Due to the large amount of debris left on the ground after logging
and the rapid growth of Bracken and Sword Fern, all of which burns very
readily when dry, a fire in this district may start very easily, and
because of constant winds it is extremely hard to extinguish.
One fire in the logged off areas in this district sets reproduction
back at least five years. Because of the extreme heat of fires, the
duff in which seeds are stored is burned away therefore eliminating
chances for an immediate re-stocking.
POSITIONS:
1 Forest Guard ................ CPC-7 ..... $3,021.00
1 Forest Guard ................ CPC-5 ...... 2,244.00
10 Fire Control Aids ........... SP-4 ..... 11,600.00
(6 months)
10 Fire Control Aids ........... SP-2 ..... 10,100.00
(6 months)
$26,965.00
EQUIPMENT:
4 1/2 Ton Pick-ups ................ $7,500.00
3 Trucks ........................... 6,000.00
(1 1/2 Ton Stake Body)
(2 Dump Trucks)
Fire pumps, Hose, Tools, ........... 3,500.00
Misc. Equip.
OPERATIONS:
Material and Supplies ............. $3,000.00
Repairs ............................ 1,000.00
Travel ............................... 500.00
$4,500.00
TOTALS ..................
$48,465.00
During periods of light fire hazard this crew would be used on
improvement work on trails, telephone lines, and various other jobs
which may come up.
An income of $311,301.00 was realized from wild life resources,
principally fish, during the past year. If this level is to be
maintained or improved upon, it will be necessary to set up at least one
technical position to carry on this work.
PERSONNEL:
1 Biologist .......... P-3 .......... $4,401.00
EQUIPMENT:
1 Automobile ........................ $1,600.00
OPERATIONS:
Material and Supplies - Repairs .. $500.00
Travel ............................ 300.00
....................................... $800.00
TOTAL .....................
(ILLEGIBLE)
Due to the small amount of grazing land and cattle no amounts were
set up under this activity.
1 Forest Supervisor ...... P-5 ........ $5,905.00
2 Foresters .............. P-3 ......... 9,500.00
1 Biologist .............. P-3 ......... 4,451.00
2 Rangers ............... CP-3 ......... 8,045.00
8 Scalers (four ........ CPC-7 ........ 12,044.00
...........(four ........ CPC-8 ........ (illegible)
1 Clerk-Stenographer ... CPC-5 ......... 2,826.00
1 Fire Guard ........... CPC-7 ......... 3,921.00
1 Fire Guard Aid ....... CPC-5 ......... 2,244.00
1 Auto Mechanic ........ CPC-5 ......... 2,545.00
20 Fire Control Aids.................... 21,700.00
..... (ten ............... CP-4 )
..... (ten ............... CP-2 )
TOTAL ....................
(ILLEGIBLE)
HES-003-1572-1580
HES-003-1572-1580
IIA47.2
DIST DIR ; US INDIAN SVC
470401
CORRESPONDENCE
HELANDER, MELVIN ; TAHOLAH INDIAN AGE
Forestry and Grazing
District Director
U.S. Indian Service
Building 34, Swan Island
Portland, 18, Oregon
Sir:
Transmitted herewith are the original and one copy of "Report on
Status of Cutover Land, Quinaielt Indian Reservation, Washington, 1947."
This report has been written to fulfill the need for current
information concerning the condition of the cutover lands on this
reservation, and was instigated in particular by a verbal request for
the information contained therein by Mr. Patrie in a visit to this
agency during the latter part of August 1946.
In order to obtain sufficient factual basis for this information
approximately three months of field work were necessary in addition to
the work previously accomplished. Consequently, we were not able to
furnish the information to Mr. Patrie as soon as he wished it. We feel,
though, that since the information derived from this additional field
work has altered our conceptions entirely, the delay has indeed been to
the best advantage. Any plans which may have been based on hasty
assumptions on our part would certainly have been of little merit.
You will note that the statistics are shown separately for the two
portions covered by different types of survey. The need for rapid
coverage of all lands not covered before Aug. 1946 dictated that we
adopt a new and less intensive method of survey. Thus it became neces-
sary to evaluate separately the statistics for each area covered by the
different types of survey.
As stated in the report, our field work even now is but a sketchy
framework. However, we believe that it is sufficient on which to base
our first estimates, which certainly are much better than any previous
estimations.
The second copy is included so that it may be forwarded to the
Chicago Office after your review and approval.
Very truly yours,
Melvin Helander
Superintendent
ERW
Page
I INTRODUCTION 1
II PURPOSE OF REPORT 1
III HISTORY OF CUTOVER LAND 1
IV METHOD OF CONDUCTING SURVEY 2
V METHOD OF STATISTICAL ANALYSIS OF REPRODUCTION SURVEY 4
VI MAPS 5
VII FEE PATENT LAND 5
VIII APPLICATION OF RESTOCKING DATA TO AREAS CUT BY YEAR 6
A. Calculation of areas cut by year 6
B. Modification of areas cut by areas burned 6
C. Reproduction survey data applied to areas by year reproduction
could start 7
IX SITE QUALIFICATION 7
X GENERAL CONDITION OTHER THAN RESTOCKING 7
IX CONCLUSIONS 8
TABLE NO. 1 Summary of condition of Restocking on Cutover Lands of
Quinaielt Indian Reservation 9
TABLE NO. 2 Classification of Reproduction Second Surveyed Area Only
10
TABLE NO. 3 Summary of Data for Burned Areas of Quinaielt Indian
Reservation First and Last Surveyed Areas 10
TABLE NO. 4 Summary of Reproduction by Species, Quinaielt Indian
Reservation 11
TABLE NO. 5 Comparison of Species cut with Species Found in
Reproduction 11 & 12
TABLE NO. 6 Area by Date of Last Removal of Timber or Reproduction
and Break down of Areas into classes of reproduction 12
TABLE NO. 7 Average Volume per Acre 13
FIGURE 1 Graphical representation of areas of cutover land by classes
of reproduction found thereon 14
FIGURE 2 Graphical representation of burned cutover land by class of
reproduction appearing thereon 15
FIGURE 3 Area graph interpretation of stocking of all cutover lands
within units 16
MAP NO. 1 Map of reproduction survey, Quinaielt Indian Reservation
MAP NO. 2 Reproduction by Classes within Burned Areas
I. INTRODUCTION:
The field work and accompanying statistical compilations on the
condition of the cutover lands of the Quinaielt Indian Reservation are
far from being as complete as we desire. However, enough information
has been obtained for our first conclusions as to the approximate
proportion of the area stocked by each class of reproduction, as well as
the relative occurrence of reproduction by species. Following, is a
discussion of the work done and conclusions obtained through the efforts
of many individuals throughout several years since the work was started.
II. PURPOSE OF REPORT:
Needless to say, the cutover lands of the Quinaielt Indian
Reservation represent considerable in value to the Indian allottees
concerned as well as to the surrounding community which some day will be
supported in part by the young trees getting a start there at present.
The exact value of this cutover land cannot be stated as any certain
amount in dollars and cents per acre at present without the acceptance
of many arbitrary values concerning trends of future markets and all
those factors influencing the cost of growing and harvesting a timber
crop. Nor is it the purpose of this report to delve into any such
elusive values. Such values, we know, are there and can be definitely
enhanced by a well-planned program of forest protection and development.
At present, under our program of sustained yield management, it is
essential that cutting quotas be established for the remaining stands of
virgin timber in order that cutting operations on the reservation can
continue in virgin timber until the second growth coming in on the
present cutover areas has become large enough for harvest. It thus has
become imperative to make an immediate evaluation of the condition of
cutover lands in order to calculate the potential forest growth on these
cutover areas. This report is the first complete breakdown of
information concerning the status of the cutover lands to be made for
this reservation. From the information contained herein much closer
estimates concerning potential forest growth should be possible than
have been made in past gropings and guesses.
III. HISTORY OF CUTOVER LANDS:
Large scale cutting of timber on the Quinaielt Indian Reservation was
begun in 1922 when operations were started on the Moclips Unit at the
south end of the reservation. Since that beginning, contracts for ten
additional units have been awarded to contractors. Additional small
areas of timber, usually of a salvage nature have been sold. However,
since these latter are small in size with very adequate sources of seed
on all sides they have not been included in this report. Of the larger
areas, designated as units, eight have been completed, three have timber
remaining to be cut. A total area of approximately 50,000 acres has
been cut to date, while almost 9,000 acres remain uncut on the areas
under existing contract.
To make the status of our cutover lands somewhat more involved than
would otherwise have been, fires have occurred quite often since the
first fire in 1924. Several areas have been burned repeatedly, and
natural reproduction, which has seemed almost eager to reclothe most
areas denuded by logging, has been removed to the extent that only
costly methods of reforestation will yield an adequate coverage of
commercial timber thereon during our time. Luckily, such areas though
rather large, comprise only about one quarter of the total of the
cutover land. Many thousands of acres that have been burned only once
are restocking satisfactorily.
IV. METHOD OF CONDUCTING SURVEY:
The statistics displayed in the following pages are derived from two
separate surveys covering different portions of the cutover land area.
The first survey work was carried out in the Cook Creek Unit and part of
the Quinaielt Lake Unit at the eastern part of the reservation. The
second part of the survey, all accomplished since September 1946, em-
bodies all cutover lands west of the Cook Creek Area.
The first survey work was carried on for a period of about two years
by various members of the forestry staff under direction of former
Forest Supervisor A. G. Hauge. No written plan for the procedure of
that survey has been found in our records. It seems apparent from
examination of field notes that no definite procedure was followed in
the execution of the work. Also, no complete summary of results of the
survey was made other than the designation of reproduction classes by
color classification on large scale maps of the areas covered. However,
a great deal of effort was expended to obtain a relatively intensive
sampling of those areas.
In September of last year, in an endeavor to produce statistics
desired by the District Office, the forestry department of this agency
started the work of completing the reproduction survey interrupted by
Mr. Hauge's departure from this jurisdiction. We were faced with quite
an undertaking. To have covered the 32,000 acres lying west of Cook
Creek Unit with the intensity of survey desired would have required one
man's time completely for more than one year. This, in view of the
deluge of work anticipated should the proposed Taholah Timber Unit be
approved, was prohibitive. Consequently, a plan was adopted whereby a
more rapid coverage of the area could be made by accepting a less
intensive method of sampling. In order to hasten things further, we did
not attempt to cover those areas in the Cook Creek and Quinaielt Lake
Units that remained uncovered by the first survey work, except for one
small area burned in 1935. The unburned areas in those sections are
restocking satisfactorily or better, so the percentages derived from
surveys made on other similar areas were accepted as applicable to the
whole of the eastern portion of the reservation.
PROCEDURE OF SURVEY OF WESTERN PORTION OF CUTOVER LANDS:
In order to enable a more rapid arrival at satisfactory figures
concerning reproduction stocking on the large area lying to the west of
Cook Creek Unit, the following plan was inaugurated, and the first part
has been completed to yield a background of statistics for this area.
First, a preliminary light survey was made in such a way that the whole
area was covered. This was done by running strips north and south with
a definite spacing between strips. These strips were selected so that
they would be one-half mile apart in burned areas. Strips in unburned
areas were originally planned to be one mile apart, but due to the
consistent quality of stocking on such areas the amount of time spent
thereon was shortened. All unburned areas, except for a narrow margin
fronting on the ocean and some eight hundred acres of river bottom land,
have shown consistently to possess satisfactory to excellent restocking.
The individual strips were run in standard fashion with stations
(serving as a common point for four quadrats) being located two chains
apart on each strip. Record was kept showing quadrats stocked by each
species and the size of the largest seedling of each species in each
quadrat.
So that the work involved in this first part of the survey can be
used when later work of increasing the intensity of survey is attempted,
complete records of each strip through each 40 acre tract have been kept
in files listed according to an ascribed number for each strip. The
strips were placed in such a manner that they can be used with future
strips through each forty to determine the stocking of that forty.
These later strips are planned to be run between the existing strips in
such a manner that there will be two strips across each 40 acre tract.
These strips, running north and south, will be five and fifteen chains
east of the west side of each forty. Thus the area as a whole will be
crossed by strips ten chains apart.
At present, however, with only the initial part of the survey
completed, we do not claim that our statistics are sufficient to enable
us to point to any certain forty and state with any degree of certainty
what its stocking of reproduction is. In those forties with strips
running through them we have an indication of what might be true for the
individual forties crossed. More important, since we are primarily
interested in percentage figures for the area as a whole, we have enough
statistical background to indicate very closely what percentage of the
area can be placed under each class of restocking. Also, we have a very
good idea concerning which general areas are in need of artificial
restocking. Should there be an indication that funds were to become
available for a large scale planting program, these areas could be
covered by an intensive survey. In most ways, our overall picture is
somewhat more reliable for the area covered thusly than it is for those
areas covered more intensively by the previous survey work. This is true
because the latter work was executed with no definite plan or method of
procedure.
V. METHOD OF STATISTICAL ANALYSIS OF REPRODUCTION SURVEY:
The breakdown of statistics for the strips which were run in this
most recent survey work has been done by one-quarter mile segments,
corresponding to the length of the strip through each 40 acre tract.
Each quarter mile strip has forty quadrats (or possibly 36 or 44, where
adjustment of error in pacing indicated an uneven number of stations in
crossing a 40-acre tract). The number of quadrats stocked in each
quarter mile strip was calculated as a percentage of 40 (36 or 44).
Each such segment was tallied, as a percentage of reproduction, into the
proper class of reproduction. Thus, by tallying into their respective
classes the 192 one-quarter mile segments of line run inside burned-over
area (see Table No. 2) we ascertained that 47 of them or 25% of the
total showed class 1 restocking, 48 (25%) showed class 2 restocking,
etc. These percentages, applied to total area of burned over land
covered by this type of survey, produced the number of acres qualified
under each class of restocking. These areas, with but brief
modification, are shown in Table No. 1, Part B.
In grouping these statistics into classes of restocking we have used
the broad classifications recommended by the West Coast Forestry
Procedures Committee in which class 1 equals 70 to 100 percent stocked,
considered "good stocking"; class 2 equals 40 to 70 percent stocked,
considered "medium stocking"; class 3 equals 10 to 40 percent stocked,
considered "poor stocking"; class 4 and 5 less than 10 percent stocked,
considered "nonstocked". The work carried on in the original area
covered by survey listed class 5 as being 0%, or barren, while class 4
contained more than 0% but less than 10%. These two classes have been
maintained as separate classes in statistical breakdown, but are not
differentiated on that portion of the map showing the most recent
surveyed area.
The method of analyzing the statistics obtained from the work carried
out in the Cook Creek and Quinaielt Lake Unit areas was not quite so
clear cut. Many individuals had taken part in the field work, and with
no written instructions for procedure, the methods of sampling and ways
of keeping notes in the field varied to such an extent that an accurate
breakdown of statistics directly from the records is impossible.
The work was accomplished by blocking the area into its allotment
divisions. When any individual in the forestry division was free from
other duties he would cover one or more allotments, depending on how
much time he had available. The direction in which lines were run and
the number of quadrats sampled in any allotment depended mainly on the
individual doing the work and the easw with which the area could be
covered. Thus, the correlation of many of the statistics between
allotments would be of doubtful value. However, since each individual
allotment covered in this manner was classified into one (or more) of
the five classes of stocking, the total area of each class of stocking
could be obtained. These areas are used in Table No. 1, Part A, and are
combined with the areas of Part B to yield the total for all cutover
land.
As stated at the beginning of this report the statistics presented in
the tables are based on field work that is far from as complete as we
should like it to be. Many factors, especially for the areas not burned
over, have been assumed on the basis of very limited sampling in
representative areas. We feel that conclusions derived are quite
conservative. When time has enabled us to fill in the gaps of our
present field work, the figures derived, should they vary appreciably
from those we have accepted in this report, will probably indicate an
increase in areas of class 1 and class 2 reproduction and a
corresponding decrease in the poorer classes of reproduction.
The determination of percent of species found in reproduction (Tables
Nos. 4 and 5) was based on the percent of quadrats stocked by each
species rather than the total number of individual specimens in the area
covered. Thus, a quadrat with but one representative of a species
possessed the same weight in the determination of the percentage for
that species as a quadrat with ten or more seedlings. One interesting
fact can be observed in Part B of Table No. 4, which shows an apparent
favoring of cedar reproduction as opposed to hemlock in those areas
burned over.
VI. MAPS:
The maps accompanying this report are two in number. Map No. 1 is a
map of scale one inch equal one mile, and shows areas of each class
restocking by color designation. The cutover land is divided into two
sections covered by different types of survey. The colored areas shown
for the western portion are based on statistics derived by the running
of strips 1/2 mile apart, so the intensity of sampling in this area was
not sufficient to establish positive classification or to demark the
division between classes quite as definitely as shown on the map.
However, the areas of each class as shown on the map, when calculated by
the use of a planimeter, check very closely with the areas as figured
from the statistical breakdown as explained in a previous section of
this report.
Map no. 2, scale 1/2 inch equals one mile, is used merely as a
background over which a series of overlays may be fitted. These
overlays, four in number, are used to show the areas of each class of
restocking inside burned areas separately without the distracting
influence of a large number of other colored areas. Ticks for matching
overlays to the map are found in the northwest and southeast corners of
both map end overlays.
VII. FEE PATENT LAND:
The statistics shown in this report are for lands of Indian ownership
only. An additional 5700 acres of fee patent land lie within the
boundaries of our active and completed timber sale units. Although we
haven't made an endeavor to cover these areas in our field work, we can
form a rough approximation of their restocking from adjacent areas of
Indian-owned land. The following figures are only approximate but might
be used should one be interested in making an all-inclusive plan of
forest management. Uncut area, 700 acres; class 1 reproduction, 1400
acres; class 2 reproduction, 1100 acres; class 3 reproduction, 800
acres; class 4 and 5 reproduction, 1700 acres; total, 5700 acres.
VIII. APPLICATION OF RESTOCKING DATA TO AREAS CUT BY YEAR:
A. Calculation of Areas cut by year.
The calculation of number of acres cut each year since 1922, when the
first cutting was done on the Quinaielt Indian Reservation, was not as
easy as might be assumed. Records maintained at this office showed the
annual cut in volume, but a complete record of area cut by year was
lacking.
There were two ways to determine the number of acres cut each year.
The first way considered was to measure by planimeter the areas logged
each year as shown by color designation on large scale maps of the
various units. However, this did not give an accurate picture of the
amount cut during many of the years because an area was not considered
logged (and therefore wasn't colored in on the map) until the landing
had been completed and the pickup of material left behind was made by
the scalers. Quite often areas which were almost completely logged
during one year would not be shown as completed until the following
year. When much timber was being cut, perhaps as much as a hundred
acres or so of cutover land might accrue from one year to the next
before final pickup was made. This condition is apparent at the
conclusion of cutting on many of our units when a small volume
(representing the pickup of usable material left behind) is shown on the
maps as covering a comparatively large area during the last year of
logging. In reality, most of that area may have been logged in the
preceding year and was not indicated as complete until the final year.
Also, and probably effecting greater errors in determining the area cut
each year, the designation of such areas on our maps were maintained by
fiscal year during the greater part of the time of cutting activities on
this reservation. Thus a determination of areas cut by calendar year,
specifically requested by the District Office, could hardly be
considered accurate if accomplished in this manner.
The second method of calculating area logged each year was by
figuring the average volume per acre cut from each unit. Then, by
applying this to the volume cut each year for each unit (as obtained
from our records) an approximate number of acres cut in each unit can be
determined for each year. By adding together the number of acres cut
each year in all the units, we have the total area cut by year for the
reservation. This latter method, although based on the assumption that
the stands of timber within each unit are uniform in volume per acre,
was the method we chose as giving the closest approach to area actually
cut and logged each year. We have used areas obtained in this manner as
the basis for the breakdown of cutover land into age classes.
B. Modification of Areas cut by Areas Burned.
As mentioned in a previous section of this report, the natural
condition of restocking has been altered very drastically by the many
fires which have occurred. Thus many acres which were logged in the
early 20's had all the reproduction, which started soon after logging,
burned off in the big fire of 1941. Even in those areas where an
adequate number of seed trees remained to reestablish reproduction for a
second time, the fire retarded the growth on these areas for upwards of
two decades. Thus, the areas cut over each year must be reduced by the
area burned over, and those areas burned must be then calculated as
being susceptible to reseeding after the year in which the last fire
destroyed the reproduction thereon.
Column 2 of Table No. 6 shows by year the number of acres cut over
and not burned. Column 3 shows the number of acres burned, listed
according to the last year fire occurred on that area. A total of these
two appears in column 4 and is our conception of the earliest period
that reproduction could start on the areas shown.
C. Reproduction Survey Data Applied to Areas by year Reproduction
could start.
If the determination of area cut by year was fraught with difficulty
it certainly could hardly compare with the difficulty encountered when
these areas (modified by effects of fire) were broken down into the
proportionate portions to be placed under the various classes of
restocking. The most difficulty was encountered in placing the unburned
cutover areas in their proper position. Some adjustments had to be made
in order to balance totals derived in this table with the totals of part
C of Table No. 1. It should be understood that no claim is made for
exactness in this table for it is based on two inexactitudes. First,
the reproduction survey was not as complete as would have been
desirable. Second, the method of calculation of area cut by year was but
an approximation at best. However, every endeavor has been made to
render as accurate a picture as possible, and we feel that the use of
the figures we have shown are suitable as a basis for the determination
of the yield capacities of our cutover area.
IX. SITE QUALIFICATION:
No attempt has been made in this report to qualify the land by site
factor. We realize that such a qualification should be made in order
that growth possibilities can be ascertained from existing yield tables.
However, the determination of site quality on lands from which the
timber has been removed is something that at most can be little more
than guess work. We know that the areas already harvested were the
heaviest timbered portions of the original unbroken expanse of timber
and were, correspondingly, the areas of better site quality. Probably
our best indication of site quality can be obtained from comparative
volumes per acre. We have, therefore, included in Table No. 7 an
analysis of the average volume per acre found on the areas cut over each
year. No further breakdown of quality is attempted for it is felt that
the person using this data to write a plan of management will be able to
interpret his own site qualities with as great an accuracy as we could
with the facts available.
X. GENERAL CONDITION OTHER THAN RESTOCKING:
No effort has been made in this report to evaluate the condition of
cutover lands for such things as presence of snags and condition of
brush. Since the prevalence of such is primarily of interest at the
time plans are being made for planting an area, an elaboration of brush
and snag conditions should be an integral part of any plan for planting.
We will note, however, that as a whole our cutover lands possess a
great many snags which increase fire hazard considerably. In many areas
a program of snag falling should precede any large expenditures for
planting.
Brush is also a very important factor to be considered before
planting. In many areas, especially within two miles of the coast,
extreme density of salal is such that ordinary planting by hand could be
accomplished only with the greatest of difficulty. These areas would
probably be handled most easily by burning immediately before planting.
Although the brush is not quite so dense farther inland, the growth of
bracken and sword fern is sufficient to present a problem to be solved
in any planting project.
XI. CONCLUSIONS:
The results of our survey of cutover lands of the Quinaielt Indian
Reservation have been somewhat enlightening to many of us who were prone
to consider our burned over areas as being almost completely devoid of
reproduction. Too little time had elapsed since the 1941 burn to
produce reproduction of size that could be readily discerned by casual
observation, and we were ready to believe that the whole of the area
burned in that fire was as barren as the areas in Cook Creek Unit and
Moclips Unit which had been burned by many reoccurring fires. It is
true that we have several areas of considerable extent which are
practicially barren of reproduction. However, it is also true that
within our burned areas are many thousands of acres of land that can be
classified as areas of good and medium restocking.
From the tables found in the Appendix of this report we find that
only 6470 acres or about 15 percent are classed as nonstocked (class 4
and 5). As additional 8788 acres or about 18 percent are classed as
poorly stocked (class 3). Of this latter area perhaps almost one-half
will require planting to insure an adequate stand of timber during the
second rotation. The remainder of the area listed under this
classification should improve in condition of restocking during the next
few years. A good proportion of this class of reproduction is found
within areas burned in 1941. Certainly we can hope that the sources of
seed which were able to establish stocking of 25 to 40 percent in five
years will be able to improve that percentage of restocking to a
condition of medium stocking during the next five years.
TABLE NO. 1. SUMMARY OF CONDITION OF RESTOCKING ON CUTOVER LANDS OF
QUINAIELT INDIAN RESERVATION: TABLE OMITTED SEE ORIGINAL
TABLE NO. 2. CLASSIFICATION OF REPRODUCTION - SECOND SURVEYED AREA
ONLY. LISTING SHOWS NUMBER OF 1/4 MILE STRIPS IN EACH OF PERCENTAGE
CLASSES OF REPRODUCTION. TABLE OMITTED SEE ORIGINAL
TABLE NO. 3. SUMMARY OF REPRODUCTION DATA FOR BURNED OVER AREAS OF
QUINAIELT INDIAN RESERVATION (BOTH FIRST AND LAST SURVEYED AREAS) TABLE
OMITTED SEE ORIGINAL
TABLE NO. 4. SUMMARY OF REPRODUCTION BY SPECIES TABLE OMITTED SEE
ORIGINAL
TABLE NO. 5. COMPARISON OF SPECIES CUT WITH SPECIES FOUND IN
REPRODUCTION. TABLE OMITTED SEE ORIGINAL
TABLE NO. 6. TABULATION SHOWING NUMBER OF ACRES CUT AND BURNED EACH
YEAR, LISTED BY YEAR OF LAST REMOVAL OF TIMBER OR REPRODUCTION, AND
BREAKDOWN OF THESE AREAS INTO CLASSES OF RESTOCKING. TABLE OMITTED SEE
ORIGINAL
TABLE NO. 7. AVERAGE VOLUME PER ACRE: Found on Acres Cut Each Year
(1922-46) TABLE OMITTED SEE ORIGINAL
Figure 1. Graphical representation of areas of cutover land by
classes of reproduction found thereon. This graph includes all cutover
land within units. FIGURE OMITTED SEE ORIGINAL
Figure 2. Graphical representation of areas of burned cutover land
by class of reproduction appearing thereon. FIGURE OMITTED SEE ORIGINAL
Figure 3. Area graph interpretation of stocking of all cutover lands
within units on the Quinaielt Indian Reservation. Colored portion of
graph represents area stocked by class of stocking. Uncolored portion
represents area not stocked within class limits. FIGURE OMITTED SEE
ORIGINAL
HES-003-1581-1604
HES-003-1581-1604
IA47.1
DIST DIR ; U.S. INDIAN SVC
461003
CORRESPONDENCE
KEELER, VINCENT J ; TAHOLAH INDIAN AGE
Forestry and Grazing
October 3, 1946
District Director
U.S. Indian Service
Building 34, Swan Island
Portland 18, Oregon
ATTENTION: District Forester
Sir:
Submitted herein is part of the information concerning the status of
the cutover lands of the Quinaielt Indian Reservation as requested by
Mr. Patrie last month when he was working at this agency. This
information has been derived from past records of cutting, and since
these records were kept by amount cut rather than by area cut there has
been considerable difficulty in arriving at what we consider to be the
correct acreage cut by year.
To date only about 20 per cent of the cutover land has been covered
by reproduction survey, so we cannot furnish an accurate breakdown
showing class of stocking by age of reproduction at the present time.
However, our records thus far show that where fires have been kept out
of an area, the class of stocking of reproduction has been satisfactory
to excellent. On areas burned after cutting, the following stocking of
reproduction has been found in general:
Satisfactory (40% fully stocked or better) -- 20% of area
Unsatisfactory (10%-40% fully stocked) -- -- -- 40% of area
Unstocked (0%-10% fully stocked) -- -- -- -- -- -- 40% of area
The above figures applied to areas not yet covered might be accepted
as a temporary means of estimating future growing possibilities of our
cutover lands. However, inasmuch as the area covered thus far has been
only a small portion of the total cutover area and has all been located
in the eastern portion of the reservation where conditions are somewhat
different than they are in the western portion, conclusions made at
present should be adjusted as more complete information is derived.
We are now starting a very extensive survey of all cutover areas not
previously covered. Within two or three months we should have
available, figures suitable for calculating the future growth of the
reservation. However, since this first extensive coverage of cutover
lands will not give adequate sampling to establish definite percentages
by 40 acre subdivisions we are considering it as the initial part of a
more intensive survey plan which will require all available time during
the next year to complete. As our information is obtained we shall
forward the results to your office in order that plans of management can
be altered accordingly.
Below is shown the cutover land divided into areas burned and
unburned. The burned areas are listed by year that the last fire
covered the area TABLE OMITTED SEE ORIGINAL
There are 1,200 acres of timber considered as unmerchantable and
9,469 acres of land remaining uncut within active timber sale units.
Very truly yours,
Vincent J. Keeler
Chief Clerk In Charge
EW:wm
HES-003-1605-1606
HES-003-1605-1606
IIA46.2
DIST DIR ; U.S. INDIAN SVC DIST FORESTER
460311
CORRESPONDENCE
LAVATTE, GEORGE P ; TAHOLAH INDIAN AGE
Forestry
Commissioner of Indian Affairs
Merchandise Mart
Chicago 54, Illinois.
Sir:
Enclosed herewith is a report on proposed planting projects,
Quinaielt Indian Reservation, prepared by A. G. Hauge, Forest
Supervisor.
As stated in the report there is considerable burned area on the
Quinaielt Indian Reservation on which there is no reproduction. Other
units will be presented as additional field data is secured.
Very truly yours,
GEORGE P. LAVATTA
George P. LaVatta
Superintendent
AGH:fgb
enc.
cc to: Spokane Regional Office.
Forestry
Taholah Indian Agency
Hoquiam, Washington.
February 27, 1946
In connection with Forest Management, and the sale and cutting of
timber on the Quinaielt Indian Reservation a responsibility of the
Indian Service is to take necessary measures to insure restocking to
young growth. The Quinaielt Indian Reservation is within what is termed
the coastal strip bordering the Pacific Ocean shore line and the
climatic conditions are such that this vicinity is one of the most
favorable forest growth areas of the United States. Because of this and
the fact that the practicability of development for farming or other
uses are lacking, the lands should be managed to promote the highest
use, namely forest growth.
In reference to the proposed tree planting projects the following is
a brief summary of the situation on the Quinaielt Reservation as to the
extent of the logged area, the areas on which there is no restocking,
and the extent of planting that has been done to date.
The cutting of timber on the reservation was begun in 1922, and with
the exception of a few years during the depression of the 1930's, has
continued to the present date on a substantial scale. The net
reservation areas involved in connection with a planting program are as
follows:
Cut over area .......................... Acres
Green ................................... 27,681
Burned .................................. 20,692
Total ................................... 48,373
Of the green acreage the stocking is generally satisfactory to fully
stocked and in view of the urgent need for planting in burned areas, no
planting of any of this green acreage is contemplated at this time.
In reference to the burned acreage, while there are limited areas on
which stocking is satisfactory the major portion, is entirely barren of
stocking or nearly so. The first fire on logged area is recorded in
1924. This was only 10 acres, but in 1925, 1200 acres burned over in
the Moclips logging areas of 1922 - 1923 - and 1924. Fires have
occurred every year since with the exception of 1929 and 1939. Much of
the area has experienced repeated burns and the only extensive burned
area with satisfactory stocking is within the Cook Creek Unit as shown
on the accompanying map. The largest acreage to burn in a single year
was in 1941, when approximately 12000 acres burned over. Due to the
intensity of this burn and that it was of recent occurrence, most of
this area is barren of reproduction and also has a less dense covering
of vegetation to hamper planting.
To date two planting projects have been undertaken on the
reservation. These are summarized following. (For location of the
areas see accompanying maps)
I. Area designated as the U.S. Forest Experiment Station.
Practically all of the Quinaielt Indian Reservation is allotted, but
in the southwestern portion of the reservation an area was reserved in
Tribal ownership for the purpose of inaugurating a tree planting project
on logged lands which had been burned over by forest fires and on which
there was no stocking of reproduction. The area set aside for this
purpose in 1980 acres.
Planting was begun in 1929 by the forestry organization and was
completed in 1934 as a CCC-ID project. This planting included spruce,
Douglas fir, White pine, Western red and Port Oxford cedar and redwood.
The planting, including all of the above named species, was very
successful and there is now a dense stand of trees, the larger sizes of
which are 30 to 40 feet in height and 3 to 6 inches breast high
diameter. A part of this plantation was burned in the 1941 fire.
Following is data on the situation as to this area at the present time:
Acres planted, 1929 1934.............. 1070
Natural reproduction ................... 45 ..... 1115
Area burned in 1941 fire
Area light burn, not total destruction and area restocking
....................... 40
Net acreage requiring planting ........ 340 ...... 380
Swamp land and area supporting unmerchantable timber not cut over
.................. 485
Total area .......................
1980
Planting project 340 acres. This area is protected on the south and
west by green timber, and is accessible as to truck trails and to water
reservoirs for fire suppression. There are no standing snags to
constitute a hazard, and the vegetation is not as dense as on areas
burned prior to 1941. In reference to planting projects, as this area
is in a tribal status and established for reforestation purposes it
should be given first priority in future planting.
II. Red Creek Reforestation Area:
To make additional areas available for planting, allottees owning
lands in the Red Creek Watershed of the reservation were solicited and 7
allotments totaling 520 acres was deeded to the U.S. Government in trust
for the Quinaielt Tribe for reforestation. In 1940 as a CCC-ID project
approximately 480 acres was planted on these allotments. Consent to
transfer was obtained from owners of 9 more allotments totaling 730
acres but the transfer of these allotments to the tribe was not
prosecuted and accomplished as no opportunity for planting in the near
future was forseen.
The plantings of 1940 were burned over in the 1941 fire and
destroyed. In that these allotments were transferred for the express
purpose of reforestation and are in tribal ownership this area should
constitute a project when planting is resumed. The transfer to tribal
status of the allotments on which transfer was authorized should be
prosecuted, so that these allotments could also be included. In
addition there are other adjacent allotments as indicated in the
attached map which should be included so as to make a solid block of
planting. The total acreage in need of planting are as follows:
1. Area now in tribal status .............. 300 acres
2. Area on which authorization to tribal status was secured
..................... 560 acres
3. Adjacent allotments to complete the unit 420 acres
Total ..................................... 1280 acres
This area as a whole has much more of a standing snag menace than the
other units which are herein presented for consideration but in view of
the nucleus of lands in tribal status this area should be given
consideration as to planting. The area is accessible for a fire
suppression view point as it has two main truck trails within the area,
and there are secondary roadways. There is green timber on the south and
east, a branch of Red Creek within the area and two water reservoirs
that have been developed are sources of pump water.
III. Elk Creek Area:
An area between Cook Creek and Elk Creek, as shown on the attached
map is proposed as a planting area, at this time for the reasons
following:
1. This area was burned over in the 1941 fire and had been
burned previously in 1933. However, due to its location between
Elk Creek and Cook Creek, by brushing out all secondary truck
trails with necessary extensions to creek water the fire hazard
can be reduced.
2. There are no snags on most of the acreage. The ground
cover, consisting principally of bracken ferns with a smaller
percentage of salal, does not constitute as great a handicap to
planting on this area as in some other areas.
3. It is made accessible by the main truck trails, and by the
secondary truck trails within the area and both Cook Creek and Elk
Creek are sources of water for fire suppression purposes. This is
considered one of the most favorable of the proposed planting
areas. The total area is 1040 acres.
IV. Moclips Planting Area:
This area is located west of the Forest Experiment Station area and
within the former Moclips Unit. It was cut in the years, 1922, 1923,
and 1924 and the first fire was in 1925 and much of it has been under
repeated burns. None of it was in the 1941 burn. The majority of the
acreage is free of snags, but the vegetation growth consisting of
principally bracken fern, salal, huckleberry, and salmonberry is
becoming an increasing handicap to planting. Reference to the attached
map shows that the area constitutes an isolated tract. It is bounded on
the east by the green timber of the Forest Experiment Station, the south
boundary is the reservation boundary, the west boundary is unburned
green timber left because of unmerchantability and it is bounded on the
north by Fee Patent lands. There are two branches of the Moclips River
and two water reservoirs within the area as a source of pump water for
fire suppression and the Moclips-Cook Creek truck trail and former
railroad spurs, some of which will require reconstruction, form a net
work of access roads. The fire hazard from the area directly south of
the reservation boundary is low as the area supports standing green
timber, brush or young growth. This area should have early
consideration as to planting. The number of allotments is 28 and
approximate acreage 2240.
In presenting the above areas of allotted lands for planting
projects, the question arises as to whether authorization will be
secured to plant allotment ownership acreages. From past experience it
is indicated that consent to transfer of some allotments to a tribal
status will not be obtained, thus making impossible the planting of all
lands within prescribed boundaries.
In reference to planting costs, at the current price and wage levels,
the cost would be in the neighborhood of $10 per acre.
In giving consideration of the planting project listed above,
headquarters camp construction would not be necessary for prosecution of
the work on any of the locations. The Red Creek and Elk Creek areas can
be handled from the Quinaielt Lake headquarters, a distance of 14 miles,
and the Moclips area by the labor sources at Taholah, a distance of 10
miles.
With the inauguration of planting projects on the reservation the
extent to which the areas are exposed to forest fires must be given
consideration. As indicated on the attached maps there is a network of
truck trails within the areas. Many of the secondary truck trails,
however, have had no improvement or maintenance work since abandoned for
use as rail road spurs and others require, renewal of road bed, and
drainage structures. Dead end spurs should be connected to make through
roads and extensions to creeks or other pump water sources are
necessary. With the added slash areas resulting from the heavy
production of logs during the 4 year war period and the present
extensive inflamable acreage of burned over logged areas of the
reservation, extra appropriations of funds for rehabilitation and new
construction of truck trail mileage is an urgent necessity. As a fire
protection measure, this work should be begun immediately and in the
proposed planting areas should not be delayed pending the beginning of
planting operations.
Without taking into consideration, the land status, tribal or
allotment ownership, below is a list as to priority of the planting
areas listed above, including the following factors: Vegetative ground
cover, inflamable material and fire protection chance, as to truck
trails, pump water, and snags:
1. Replanting of Forest Experiment Area .. 340 Acres 2. Elk
Creek Area ....................... 1040 Acres 3. Moclips
Area......... 2240 Acres 4. Red Creek Area..... 1280 Acres
The above listed areas form only a minor portion of the extensive
burned acreage barren of reproduction on the Quinaielt Indian
Reservation, and in need of planting. It is believed, however, that
they warrant consideration as the first units to be planted within a
logical plan of planting for the reservation. In connection with the
burned acreage of the reservation, adjacent to the main and secondary
truck trails, there is a considerable mileage of thrifly second growth
trees not destroyed by the fires which will serve as sources of seed for
adjacent areas. There are also unburned isolated tracts which will also
serve as sources of seed for natural reproduction.
Attached are pictures taken on the proposed planting sites and of the
original planting made on the U.S.F. Experiment Station area. Also of
natural reproduction. The enclosed Truck Trail pictures show the need
of road clearing and improvement projects.
As a fire hazard reduction measure, a field survey for the
inauguration of snag felling and truck trail improvement and extension
project is under way and a report will be submitted as soon as the data
is compiled.
Respectfully submitted,
A. G. Hauge
Forest Supervisor
Approved:
1946
George P. LaVatta
Superintendent.
MAP OMITTED SEE ORIGINAL
MAP OMITTED SEE ORIGINAL
HES-003-1607-1615
HES-003-1607-1615
IIA46.1
COMM OF INDIAN AFF
450312
CORRESPONDENCE
HAUGE, A G MCKEEVER, L C
MEMORANDUM
To: Mr. George P. LaVatta,
Superintendent
Referring to the letter dated 02/28/45, to Mr. George P. LaVatta,
Superintendent, from Mr. Paul R. Smith, President of The Aloha Lumber
Co., protesting the proposed increase in stumpage prices listed in
Office letter dated February 17, 1945 for the Hall and Mounts timber
units, Quinaielt Indian Reservation, the following pertinent data is
herewith submitted.
Comparison of Log Sizes -- on all logging to-date CHART OMITTED SEE
ORIGINAL
On the Log Resume, 1944, of the Aloha Lumber Co., the attention is
called to the amount of timber, over 14 million feet, used in the mill
and that was charged in at $17.00 to $19.00. These prices are
comparatively low and should be justified by the Aloha Lumber Company.
Following is a comparison of cedar log grades:
Comparison -- Grade Percentages of Cedar
Unit Lumber Grade Shingle Grade
Hall .................. 12% .............. 88%
Mounts ................ 15% .............. 85%
Quinaielt Lake ........ 17% .............. 83%
Grays Harbor .......... 25% .............. 75%
The remaining timber on the Hall and Mounts Units will show no
improvement in grades. The Hall Unit will very likely grade 1 to 2 per
cent lower. Taking into consideration the low grade and extra cost of
logging small logs, the cost of cedar lumber or shingles is increased
accordingly. Falling and bucking costs of the company are high because
of the small timber and brush. The short haul of the logs to Aloha is a
factor in the comparatively low total cost of logging, but this is
compensated for in the necessity of freight charges on logs shipped to
Grays Harbor or other points. Logging costs, less stumpage is reported
at $15.83.
Cost of Logs -- Mounts and Hall Units -- Increase in Log Prices
Applied on Remaining (ILLEGIBLE)
Mounts Unit -- Estimated 30 million feet remaining
Specie Million Feet Increase in price per M Amount
Douglas fir .. .5 .......... $0.35 ......... $ 175.00
Spruce ....... .5 ............ - ................ -
Cedar ...... 13.75 .......... 0.40 .......... 5,500.00
White Pine ... .25 .......... 0.40 ............ 100.00
Hemlock ..... 3. .............. - ................ -
............ 20 ............................ $5,775.00
Hall Unit -- Estimated 20 million feet remaining
Douglas fir . 1.0 .......... $2.58 ........ $ 2,580.00
Spruce ...... 1.0 ............ .70 ............ 700.00
Cedar ...... 12.0 ............ .98 ......... 11,780.00
White Pine ... .5 ........... 1.21 ............ 505.00
Hemlock ..... 5.5 ............ .50 .......... 2,750.00
............ 20 ........................... 18,295.00
............................................. 5,775.00
Estimated increase Hall and Mounts Units .. $24,170.00
We do not have the Grays Harbor log sale prices by grades for Douglas
fir, White pine and cedar, but note that the grade sale prices of spruce
as listed are below the Grays Harbor log prices by grades.
Respectfully submitted,
March 12, 1945
A. G. Hauge
Forest Supervisor
L.C. McKeever
Forest Ranger
HES-003-1616-1617
HES-003-1616-1617
IIA45.2
LAVATTA, GEORGE P
451026
CORRESPONDENCE
LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
Forestry and Grazing
Taholah Indian Agency
Hoquiam, Washington
October 26, 1945
Commissioner of Indian Affairs
Merchandise Mart
Chicago 54, Illinois
Sir:
Enclosed herewith is a memorandum prepared by A. G. Hauge, Forest
Supervisor, on the selective logging, sample plots, following:
1. Cultee Allotment -- Tagged Sample Plot
2. Memorandum and letter on U.S. Forest Service and Indian
Service Sample Plots
3. Pictures of Residual Stands
It is desired to call your attention to the last paragraph of the
enclosed copy of Mr. Munger's letter in which he states that they are
extending their studies of decay following selective logging injury to
hemlock, and that he would like information on any available location on
which there is a suitable reserve hemlock stand. He was informed that
there were some high land areas on the reservation on which the hemlock
was left that might furnish the desired information. These areas are
some on which the hemlock stumpage was paid and the trees left standing.
Mr. Leo Isaccs of the Forest Service has recently been making a study
of hemlock cutting in Grays Harbor County, south east of Aberdeen,
Washington. At the time his operation was visited by Messrs. McKeever
and Hauge, Mr. Isaacs indicated that he would secure the desired data
without visiting the Quinaielt Reservation but that he would furnish
data compiled from the results of his study. On receipt of this
information copies will be forwarded to the Regional Foresters office
and the Indian Office.
Very truly yours,
GEORGE P. LAVATTA
George P. LaVatta
Superintendent
agh/wm
cc: Regional Forester
Spokane
Taholah Indian Agency
Hoquiam, Washington
October 25, 1945
This area is a thrifty second growth stand of Douglas fir with a few
individual old growth Douglas fir trees. In 1937 it was tractor logged,
piling and logs being removed. Measurement and count of the stumps and
residual trees was made and the residual trees were tagged.
Trees cut ....... 93 ........ 51,660 .......... 555
Trees residual . 171 ........ 62,600 .......... 365
Total ....... 264 ....... 114,260 ......... 433 av.
Trees cut ....... 37 ............. 20,664 board feet
Trees residual .. 68 ............. 25,040 board feet
Total ....... 105 ............. 45,704 board feet
When the residual trees in this plot were tagged on the establishment
of the plot in 1938, the D.B.H. measurements were obtained by holding a
scale stick against the tree and estimating the diameter. In Aug.,
1945, new tags were put on and the D.B.H. obtained by use of a diameter
tape. It was demonstrated by means of an increm- ent borer that there
was considerable discrepancy in the two diameter measurements due to the
different methods of measurement used. As a means of measuring the
actual growth made since cutting, increment borings were taken on 43
trees. For comparison as to growth rates before and after cutting the
tree borings also included the growth ten years prior to the cutting.
For future data on growth rate it is believed comparisons can be made
with the present tree tape diameter records. The increment borer
results show growth rates following:
Growth rate 10 years previous to cutting - - - 1.34 inches
Growth rate 7 year period since cutting - - - 1.09 inches
equivalent to 1.56 inches for a 10 year period.
While there have been 8 growing seasons since the cutting of this
timber no pick up in growth would be in effect the first year after
cutting. The increment boring records were therefore based on a 7 year
growth period to determine the rate of growth since cutting. At the
present time the crowns of the released trees are extending their width
and length indicating increased growth rate.
TABLE OMITTED SEE ORIGINAL (2 pages)
To obtain data as to approximate age of the stand, stump counts were
made on 8 stumps on which the rings were discernible. The record is as
follows:
............... 20" .................. 105
............... 15" ................... 67
............... 23" ................... 69
............... 18" ................... 83
............... 16" .................. 85
............... 29" ................... 87
............... 18" ................... 91
............... 25" ................... 81
Average ....... 20.8 .................. 86 Yrs.
As a record of the stand since cutting the following is an inventory
of the trees on the area as of Aug. 1945. Trees in stand that are dead
are because of injury in logging, sun scald, wind damage (broken tops or
boles snapped off by wind) or in logging and windthrow.
The following is list of dead trees and cause of mortality:
Sun scald injury, etc. Wind Snapped Bole Down Lean Total
No. of trees .. 9 ............ 8 ........... 1 ... 1 .... 19
Trees Numbers 3 to 10 all dead which are consecutive in numbering do
not constitute a group of trees. It is noted that two of these have
broken tops.
This plot over-laps on the Cultee allotment plot (untagged) on which
a previous report has been submitted. Pictures enclosed with this
report are of the over-lapping area.
Respectfully submitted,
A. G. Hauge
Forest Supervisor
Approved:
GEORGE P. LAVATTA
George P. LaVatta, Superintendent
cc: Indian Office
Spokane Regional Office
Forestry and Grazing
Taholah Indian Agency
Hoquiam, Washington
October 25, 1945
In connection with this memorandum, reference is made to the original
data compiled by Mr. James A. Howarth, Forest Supervisor, and the letter
to the Indian Office dated 03/04/39, written by Mr. Frank B. Lenzie,
Regional Forester, Mr. Carthon R. Patrie, Forester, and Mr. Patrick
Gray, Logging Engineer, of the Spokane Regional Office.
Since the establishment of this plot in 1939 tagged trees as follows
have been windthrown or damaged by the wind:
1. Tree No. 17, Douglas fir, 66" D.B.H., 5 logs -- 9,900 bd.
ft.
2. Tree No. 20, Hemlock, 30" D.B.H., 2 1/2 logs -- 1,085 bd.
ft. (Broken top at approx. 14" diameter
Loss per acre -- 4,400 bd. ft. .............. 10,985 bd. ft.
Accompanying are views of the residual stand, within the sample plot
area, and also of other parts of the Morrow sale. The original plan
provided for a light cut, removing the high value trees. During logging
additional trees injured in logging were designated for cutting.
Enclosed herewith is the Forest Service memorandum on the plots and a
letter dated 08/01/451, giving information on the establishment and
recording of data on the plots.
Respectfully submitted,
/s/A. G. Hauge
A. G. Hauge
Forest Supervisor
Approved:
GEORGE P. LAVATTA
George P. LaVatta, Superintendent
cc: Indian Office
Regional Forester
HES-003-1618-1623
HES-003-1618-1624
II45.1
COMM OF INDIAN AFF
450000
CORRESPONDENCE
MONGER, THORNTON T ; DEPT OF AGR
RS-NW
SILVICULTURE
Harvest Cuttings
Olympic P.S.P.'s 19, 20, & 21
423 U.S. Court House
Main St. & Sixth Ave.
Portland, 5, Oregon
Mr. George P. LaVatta, Superintendent
Taholah Indian Agency
Hoquiam, Washington
Dear Mr. LaVatta:
I am sorry that reply to your letter of July 19 has been delayed
until there was time to check the status of the plots.
The three 5-acre permanent sample plots were rechecked for windfall
and other mortality in July 1944 but not since then. At that time there
were found a few small trees windfallen and dead since the previous
examination, but the amount was not sufficient to justify recomputing
and preparing a report.
The 48 one-acre mortality plots have not been reexamined since early
in 1944 and will not be for a couple of years yet.
We have not heard whether or not the heavy winds of the past winter
caused damage to this area but Mr. Isaac will probably be in the
vicinity in a month or so and will look in on the area.
Perhaps some further explanation is necessary for the variation in
losses (17,000 feet and 5,757 feet) between the permanent sample plot
and the strip survey.
The permanent sample plots were put in sometime in advance of logging
and all trees were tagged, measured, and recorded. Prior to and during
logging some of these were windfallen or injured or knocked down by the
operation. These were then logged or, if too small or unmerchantable,
were pushed aside and often covered by debris. Later, when the area was
checked after logging, these trees that were no longer present show up
as losses in addition to the trees that died or were windfallen since
logging.
The strip survey made after logging shows only such losses as are
still visible and not those that have been destroyed or hauled away.
One other point, the strip survey covers a rather extensive area and in
all probability corsses parts of the stand where the cutting was very
light as well as where the cut was normal. This would naturally result
in lighter losses than are shown on the permanent plots.
We are now extending our study of decay following selective logging
injury to hemlock and white fir and are very anxious to find areas that
have been partially cut 10 to 25 years ago where a reserve stand of
hemlock was left. If you know of such an area, on or off the Indian
Reservation, we would be very glad to hear about it.
Very sincerely yours,
/s/Thornton T. Munger,
THORNTON T. MUNGER, Chief
Division of Forest Management
HES-003-1624-1624
HES-003-1618-1624
II45.1
LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
440603
CORRESPONDENCE
HAUGE, A G
Memorandum to Mr. George P. LaVatta, Superintendent (ILLEGIBLE)
In response to a request from Mr. J. S. Lamont, Assistant Director of
Forestry, Chicago Office, letter of May (illegible), 1944, for
information in regard to the timber in (illegible text) in the first
cutting cycle, and amount of timber in the reserve stand, the
(illegible) of some of the factors covering the management and
(illegible text). ILLEGIBLE PARAGRAPH SEE ORIGINAL ILLEGIBLE PARAGRAPH
SEE ORIGINAL
In regard to the maximum wind velocity along the coast within the
Quinaielt Indian Reservation, the U. S. Coast Guard informs us that the
Tatoosh Island wind velocity records will apply to (illegible) area.
This indicates that the wind velocities on the Quinaielt Indian
Reservation are comparable with the Makah Reservation where wind
velocities to 75 miles per hour have been attained.
Several sample plots have been established on the Quinaielt
Indian Reservation on relatively (illegible) areas which were cut in
1937 and one in 1939. Some of these indicate heavy wind throw losses
but most of the (illegible) of the storm of December 21, 1940. How-
ever, there has since been a small percentage of wind throw once a year.
The evidence of these plots to date indicate that there is an annual
loss factor to be given consideration.
It is believed that only clear cutting is practical but that improved
fire control methods and assurance of more successful establishment of
reproduction are necessary.
In new sales provision should be made to leave continuous reserved
green blocks or strips. This could be accomplished through leaving of
uncut blocks connecting there possible with prarie or lodge pole pine
swamp areas. Cutting of (illegible) should also be required.
In regard to the (illegible) virgin timber on the Quinaielt Indian
Reservation the following is the estimated amount: 2 billion feet.
Cutting of (illegible) million feet a year would require a period of 40
years to complete the cutting on the reservation. This could work in
with (illegible) plans for all (illegible) that have been worked out for
sustained cutting of timber within the Grays Harbor region based on a
total estimate of 10 to 20 billion feet, and an annual approximately
(illegible) million feet. However, the Indians have expressed a desire
that their allotments be cut so that they will obtain the profits to be
derived from their timber and have (illegible) an annual cut of 100
million feet per annum.
This recommendation submitted as explanation as to reason cutting
(illegible) have not been formulated for the Quinailet Indian Reserva-
tion providing for the establishment of cutting cycles within a rota-
tion. It is believed that these conditions of (illegible) will apply
very nearly to all of the uncut area of the Quinaielt Indian Reservation
with the possible exception of some areas of comparatively small
(illegible) and it is questioned if these could be worked out
(illegible) if exposed to clear cut areas.
Respectfully submitted,
A. C. Hauge
June 3, 1944
HES-003-1625-1626
HES-003-1625-1626
IIA44.6
LAVATTA, GEORGE P
440322
CORRESPONDENCE
THORBERG, C ; TAHOLAH INDIAN AGE HAUGE C ; TAHOLAH INDIAN AGE
Taholah Indian Agency
March 22, 1944
Memorandum to Mr. George P. LaVatta, Superintendent
Forest Road and Truck Trail Maintenance
Road and Forestry Divisions
For the Taholah jurisdiction, road maintenance of forest roads is
necessary and incorporated in this maintenance program for the Quinaielt
and Nakah Reservations only. All the other reservations are of nominal
acreage and are served by State or County Roads.
Accompanying this memorandum are road and truck trail maps of the
Quinaielt and Nakah Reservations and the following is an inventory of
mileage and a brief outline as to types and conditions of roads and a
general maintenance program.
I. Quinaielt Reservation
1. Primary truck trails ............... 35 miles 2. Secondary
truck trails.............. 38 " 3. Fire (chiefly) "
............... 67.3 "
The classification of these truck trails is based principally on use
rather than on type of construction. As indicated on the map the
primary truck trails are through routes, the secondary are branches and
the fire truck trails are generally short dead end spurs.
The forest truck trails are all abandoned railroad grades or logging
truck roads, which are all heavily graveled, and on ground that is
generally level or moderate slopes. The principal maintenance items are
the following: Blading, reshaping on a limited mileage, drainage work
(ditching and repair of culverts) and brushing out where the truck
trails location is within a forest young growth area. Within the areas
of the reservation burned over, reproduction has generally not been
established and brushing out on this mileage is not necessary.
With the exception of the sections of the truck trail mileage used by
the Aloha Lumber Co. for log transportation and which is maintained by
them, there is little traffic, and maintenance work twice a year, in the
spring and in the fall, should keep the truck trails in shape. However,
in addition to this, emergency repair work such as for washouts, culvert
repair, and clearing of fallen trees or snags may be necessary at any
season of the year.
Following is the annual maintenance cost:
Primary truck trails ... 35 miles at $100 .. $3,500.00
Secondary truck trails . 38 miles at 85 ... 3,230.00
Fire - truck trails .... 67.3 " at 75 ... 5,047.00
........................................... $11,777.00
Bridge repair and maintenance ............... 2,000.00
........................................... $13,777.00
II. Nakah Reservation
Truck trail mileage classification on the Nakah Reservation is as
follows:
1. Primary truck trails ............... 24.76 2. Secondary truck
trails............... 3.00 3. Fire - truck
trails...................4.00
........................................ 31.76
In addition to this is 10.7 miles of road constructed in 1942 and
1943 by the Army Engineers in the Cape Flattery area but which is under
control of the Army and on which no maintenance can be planned at the
present time.
The Nakah Reservation is very rough as to topography and the forest
truck trail mileage is confined to the logged off areas. All these truck
trails are abandoned railroad grades and while their location is all
side hill construction, the grades of the truck trails are within
railroad grade limits. These truck trails are not graveled but the
ground surface is composed chiefly of decomposed shale. Most of the
mileage withstands traffic during the rainy season. Because the truck
trails are located on the steep slopes there is a considerable drainage
problem. The chief maintenance items are the following: Blading, or
reshaping, maintenance of drainage ditches and culverts, and brushing on
a limited portion of the mileage. The main traffic on these roads is
for forest or fire administration. Maintenance twice a year, in the
spring and in the fall, is necessary with emergency repair work
necessary to keep the truck trails open, and to forestall extra repair
expenses.
Annual Maintenance Costs are as follows:
Primary truck trails . 24.76 miles at $200.00 . $4952.00
Secondary truck trails 3.00 " .. at 150.00 ... 450.00
Fire truck trails ..... 4.00 " .. at 150.00 ... 600.00
............................................. $6002.00
Accompanying this memorandum is Road and Truck Trail Maintenance
Program to be accomplished prior to 06/30/44. Estimated expenditures as
follows:
Quinaielt Reservation .......... $4038.00
Nakah Reservation ............... 1588.00
Respectfully submitted,
C. A. Thorberg, Road Engineer
A. G. Hauge, Forest Supervisor
HES-003-1627-1628
HES-003-1627-1628
IIA44.5
LAVATTA, GEORGE P ; ROAD AND FOREST DI
440810
CORRESPONDENCE
ARNOLD, L D
Forestry & Grazing
31184-44
AUG 10, 1944
Mr. George P. LaVatta,
Supt., Taholah Agency.
My dear Mr. LaVatta:
We have received your letter of July 27 with which you enclosed
reports on five selective cutting sample plots located on six allotments
on the Quinaielt Indian Reservation.
These reports show the amount of windthrow which has occurred on
these sample plots since 1938 following selective cutting in 1937. You
also enclosed a table showing the ten highest wind velocity recordings
for each of the years from 1926 to 1943 inclusive. We trust that
further reports will be made on these sample plots from time to time in
order that we may have further information concerning the results of
selective logging on the Quinaielt Reservation.
Future correspondence concerning these sample plots should refer to
the above file number in order that the reports may be kept together.
Sincerely yours,
(Sgd.) L. D. Arnold
L. D. Arnold,
Director of Forestry.
JDL:et 08-09-44
cc: Lenzie, Regional Forester
Forestry chrono
Holdup
Forestry and Grazing
Taholah Indian Agency
Hoquiam, Washington
July 27, 1944
Commissioner of Indian Affairs
Merchandise Mart
Chicago, 54, Illinois
Sir:
There is enclosed herewith reports compiled on the results to date on
five selective cutting sample plots, located on sale areas on the
Quinaielt Indian Reservation. The data is on the sample plots which
were established on the allotments following:
1. Wm. Butler Allotment No. 992 2. Wilfred Salakike Allotment
No. 1345 3. Scott Clark Allotment No. 180 4. Henry Cultee
Allotment No. 496 5. Annie & Leda Clark Allotments No's. 177 and
178
There is also enclosed a list showing for each year from 1925 to 1943
inclusive, the ten highest wind velocity recordings for the year,
compiled from the Tatoosh Island, U.S. Weather Bureau records. These
wind velocity records are submitted as evidence of the high wind
velocities to which the coastal strip timber is exposed. Tatoosh Island
is in the Neah Bay district, but there are no closer weather bureau
stations that have wind velocities applicable to the timbered area
adjacent to the coast. The Coast Guard at Aberdeen, Washington,
headquarters for this region, state that the wind velocities of the
coast from Neah Bay south to the mouth of the Columbia River, would be
very nearly the same.
In reference to the storm of 12/21/40, the recorded velocity was 78
miles per hour. Since, in the years 1942 and 1943, the recorded
velocities of 71 and 73 miles per hour were nearly as high. There was,
however, considerably more damage done in the storm of 12/21/40, than
the slight difference in wind velocity would indicate. In the storm of
12/21/40, many trees were blown down across the Olympic Highway, and
there were some individual trees or small groups of trees within virgin
stands broken off or windthrown on situations most exposed or vulnerable
to this storm. As shown by the sample plot records there has been very
little windthrow since the heavy windthrow recorded which resulted from
the 12/21/40 storm. This storm caused damage both in the Neah Bay
district and the Quinaielt region.
As to the selectively cut areas on the Quinaielt Reservation within
which sample plots were established, the windthrow, except in the case
of the timber directly west of the Scott Clark allotment, there was
practically no windthrow in the virgin timber adjacent to the
selectively logged areas. West of the Scott Clark allotment windthrow
was caused within the adjacent virgin Douglas fir-hemlock stand. This
40 acre tract, however, was previously exposed by cutting on all sides
and has since been cut. Within the virgin cedar-hemlock type adjacent to
the Butler and Salakike allotments there was no windfall.
As noted in the sample plot records after the noticeable mortality
recorded for the period immediately following cutting in 1937, to the
time of establishment of the plots in Aug. 1938, there has since been a
very low percentage of mortality in the residual stand. While many of
the residual trees were damaged in logging and apparently are in very
poor condition, possibly because of the average high air moisture
content and the favorable tree growth conditions and the fact that the
older trees were cut, the mortality rate has been consistently low.
Data on the balance of the sample plots will be forwarded as it is
brought up to date.
Very truly yours,
GEORGE P. LAVATTA
George P. LaVatta
Superintendent
egh:wm
enc.
cc: Spokane office
TABLE OMITTED SEE ORIGINAL (2 PAGES)
HES-003-1629-1633
HES-003-1629-1633
IIA44.4
LAVATTA, GEORGE P ; TAHOLAH AGENCY
441211
CORRESPONDENCE
LENZIE, FRANK B
Forestry & Grazing
40527-43-(339)
Commissioner of Indian Affairs,
Chicago 54, Illinois
AIR MAIL
Sir:
Reference is made to the letter of 12/04/44, addressed to this of-
fice by Mr. L. D. Arnold, Director of Forestry, and having to do with th
forthcoming stumpage revaluations due early in 1945. A copy of a
memorandum prepared by Mr. Kephart was enclosed for our review and
comment, and inquiry was made as to when the Western Pine Association
lumber sales compilations for 1944 could be made available to Mr.
Phillips. We were urged to submit our revaluation reports to the Office
as near February 1 as possible to assure ample time for review and the
issuance of notices to the contractors.
Our stumpage revaluation studies are already under way and every
effort will be made to complete them all and have them in the Office for
consideration by February 1. However, it will be extremely difficult if
not impossible to do this in the very limited time at our disposal
without some assistance from the agency forestry personnel. As the
Office is aware, stumpage reappraisals will have to be made on five
different reservations including the Klamath, Warm Springs, Quinaielt,
Colville, and Spokane, and will involve more than a dozen separate
contracts. In addition, special consideration will have to be given to
the Hall Logging Unit, Quinaielt Reservation, where a revision of rates
and revaluation procedure is indicated in connection with the probable
extension of the contract beyond March 31, 1945.
For the past several years Mr. Harold Weaver, Forest Supervisor at
the Colville jurisdiction, has rendered very valuable assistance to us
by preparing the annual revaluation reports covering the units on the
Colville and Spokane reservations. He has worked very closely with us on
this somewhat involved task and has always done excellent work, a point
on which we are sure the Office will agree. This year it is more
important than ever that he assist us and we respectfully suggest that
the Office direct a letter to Colville Agency, as it has in previous
years, requesting his assistance in preparing the revaluation report
coverning the Colville and Spokane units jointly. This office will
expect, of course, to furnish him the necessary lumber price
compilations and such other information as he may require, and to review
and concur in the recommendations.
Only yesterday we were pleased to receive an offer from Mr. R. W.
Taylor, Forest Supervisor at Klamath Agency, to assist us by preparing
the revaluation report covering the Klamath Reservation units. This has
always been a somewhat lengthy task because of the number of separate
units involved and his assumption of it would represent a considerable
saving in time to us. Mr. Taylor has been at Klamath Agency for a
number of years and is very familiar with operating conditions and local
peculiarities of this market. He has also become very familiar with the
revaluation procedures in customary use at Klamath, having assisted each
year in gathering and compiling data for use in these studies. Since
the valuation procedures used at Klamath are standardized and fully
explained in the previous reports on record at the Agency there is no
apparent reason why he could not handle the task very satisfactorily.
This office would furnish him with the necessary lumber sales price
compilations and other useful data, and advise and assist in whatever
way needed if problems arose. In view of his expressed willingness
through the Superintendent to assume this task it is recommended that
the Office request him to prepare the current Klamath revaluation
report.
The Western Pine Association lumber sales compilations covering the
full year 1944 cannot be completed until the last weekly report is
received on or about January 2. Compilations have been kept current so
that only about three days will be required to complete the
quarter-annual and annual summary sheets and type them. We should,
therefore, be able to mail the sales record to Mr. Phillips at Phoenix
and to Mr. Carter at Billings on or before January 6. Copies of the
several compilations will also be sent to the Indian Office at that time
for such advance purpose as they may serve.
We were very much interested in Mr. Kephart's memorandum of 11/22/44
and are in agreement with his conclusion insofar as the current war
period is concerned. There is not entire agreement, however, with the
assumptions upon which the conclusions are based nor are we sure that
the use of "actual" mill run lumber prices will work out best in the
long run. At the present time there is no question but that "actual"
prices should be used as the basis of our stumpage reappraisals because
we have a Government controlled market which is affecting both price and
character of the output. The war has created demands for certain grades
of lumber and the Office of Price Administration has stimulated the
production of these grades by raising the ceiling prices thereon. In
addition, operators seem to have developed ways and means of evading
price ceilings, particularly by upgrading, which tends to increase the
volume of higher priced grades sold. Since it is our conviction that
the Indian stumpage owner is entitled to share in the benefits of any
circumstance which increases the value of the stumpage product, we feel
that the "actual" mill-run prices should be used at the present time.
Inevitably, however, when Government controls are released and lumber
is again sold in the open highly competitive market there will be a
return to the former standards of manufacture and sales. Civilian
requirements are not likely to be greatly different after the war than
they were during prewar years, which means that the various grades will
assume about the same position in relation to total sales as they did
before the war. Markets will be highly competitive and the various
operators will be forced to adhere strictly to grading standards or lose
their customers, whereas at the present time the demand is so acute that
the lumber buyers are apparently willing to collaborate with the sellers
in evading ceiling prices by upgrading. We may expect, therefore, that
there will be a marked decline, immediately after war controls are
removed, in the proportions of the lumber grades sold which are above
the median point in value.
The "actual" mill-run lumber price averages will continue to give
better results to the stumpage owner so long as the artificial market
controls remain in effect and the upper grade proportions tend to
improve. They will show exactly the opposite effect when the
proportions of these grades begin to decline, as they most certainly
will when the war demands diminish and the free competitive markets are
restored. When this occurs the mill-run lumber prices will reflect a
decline if "actual" mill-run averages are used, whereas if "weighted"
averages are used the only change will be that resulting from increases
or decreases in the individual grade prices. It is entirely conceivable
that we may have a contradictory situation at that time in which the
trend in "actual" mill-run lumber prices indicates a decrease in
stumpage prices, whereas the trend in "weighted" averages indicates an
increase in stumpage rates. Table I following shows the changes that
have occurred in ponderosa pine lumber grade proportions since the
beginning of 1942 and, contrary-wise indicates the extent of the
reversal that can be expected immediately after the war.
Not only can we expect a quite pronounced decline in upper grade
proportions after free competitive lumber markets are restored, but
there is good reason to expect a gradual decline thereafter. It is no
secret that the western commercial forests, and particularly the
privately-owned better quality stands, have become seriously depleted in
recent years. Remaining stands are not of as high average quality in
the western region as a whole and can hardly be expected to produce as
good a run of upper grades as they did formerly. The decline in quality
as reflected by regional lumber sales will be gradual because mill
operators are exercising more care than formerly to get the maximum
output of upper grades from their logs. The fact remains that this
trend is not favorable to the post-war use of "actual" mill-run lumber
price averages as a basis for stumpage revaluations, because declines
will be registered in regional mill-run lumber values which are not
characteristic of the timber within the units sold. The use of
"weighted" averages, on the other hand, will not be affected by this
regional decline in lumber quality but only by changes in the prices of
the individual grades.
It is appreciated that the use of "actual" averages during the period
of the war and the use of "weighted" averages later has the appearance
of inconsistency, and might be objectionable for that reason. Actually
we favor the use of "weighted" averages as being more nearly sound
procedure because it more closely reflects the price trend of the market
than the "actual" mill-run price averages. The latter are involved with
two variables, both grade prices and grade volumes, and the latter can
easily offset the effects of the former as we anticipate will be the
case when the lumber market is released from war controls. If we
continue the use of "actual" averages after the war, the Indian stumpage
owners will suffer from the reversion in grade volumes to their normal
civilian market status. On the other hand, if "weighted" averages are
used the only effect of the change back to civilian business will be
from variations in the prices of individual grades.
As Mr. Kephart has demonstrated in his tabulations there is very
little difference in practical effect between the use of "actual" and
"weighted" averages during the course of normal business periods. The
volume of individual grades does not vary greatly from year to year
within a specific lumber industry such as the western pine, being
limited by the character of the timber itself and the demands of the
trade. It may be argued that the operator may vary his output of
certain grades to suit the market but actually he has little opportunity
to do this. The lumber market in peacetimes is notoriously erratic and
grade prices are extremely sensitive to the interacting forces of supply
and demand. The timber itself can produce at best only a limited
quantity of upper grades and since these are shortest in quantity bring
the best prices on the market. Consequently the manufacturer devotes
himself to securing the maximum output of these uppers and to filling
the demands of his customers as best he can. He is powerless to convert
No. 2 boards to No. 1 or to convert either grade to B and Better Selects
irrespective of the added price received. He will, however, by care in
manufacture secure the maximum of each of these grades from his logs
because he knows they will bring the maximum returns regardless of
market fluctuations.
The situation which has obtained during the current war period was
vastly different from normal civilian business periods. Certain grades
were demanded in larger amounts by the war agencies and a premium was
offered for their production. There was greater lenience in grading
than would have been tolerated by civilian trade, so that certain grades
took sharp upturns in volume. This variation could hardly occur in
normal times since neither the timber nor the trade would permit it.
After the war is over and there has been a complete restoration to
civilian business there will probably be very little annual fluctuation
in grade volumes. Over the course of several years, however, as we have
explained before, there will be a gradual decline in the output of upper
grades in the region as a whole. Such a decline favors the use of
"weighted" mill-run averages because they will on the average bring a
higher return to the stumpage owner than "actual" mill-run prices.
Sincerely yours,
FRANK B. LENZIE,
Regional Forester.
CRP/at
TABLE OMITTED SEE ORIGINAL
HES-003-1634-1639
HES-003-1634-1639
IIA44.1
COMM OF INDIAN AFF
441122
441207
CORRESPONDENCE
CORRESPONDENCE
KEPHART, GEORGE S.
KEPHART, GEORGE S.
Mr. L. D. Arnold, Director of Forestry
November 22, 1944
Mr. George S. Kephart, Forester
Recommends the use of actual mill-run lumber prices rather than
weighted prices in the revaluation of stumpage.
On June 7, 1944, at your request I prepared a memorandum concerning
our procedure for readjustment of stumpage rates. It included this
statement:
"Further thought should be given to the question whether actual
average market values of lumber or the weighted average market
values should be used in our reappraisals."
For the reasons set forth below I recommend that the "actual" values
be used:
To obtain the "actual" mill-run lumber value for a given year, the
average price received for each grade of lumber is multiplied by the
percent of that grade sold during the year. The sum of these
computations is the actual average mill-run price of lumber for the year
in question. Separate computations are made for each species.
To obtain a "weighted" mill-run lumber value for a given year, the
average price received for each grade during that year is multiplied by
the percent of that grade sold in some previous year or period.
For example the "actual" mill-run price in 1943 is obtained by using
1943 grade prices with the 1943 grade percentages. "Weighted" mill-run
prices for 1943 are obtained by using the same 1943 grade prices, but
applying them to the percentages of grades sold in 1937, or 1933, or any
other period for which the weighted price is desired.
To determine which is better suited to our needs I have used sales
records of the past ten years to make estimations on the basis of
"actual" and of "weighted" mill-run lumber prices. The sales records
used are from the Western Pine Association.
The "actual" mill-run price of lumber was calculated for each of the
years 1934 to 1943 inclusive, and the percent of range from year to year
determined.
I then assumed a large bloc of timberland that is of uniforms
stumpage value throughout. The unit of this bloc is sold in 1935 at
$4.00 per ft. b.d.h. Each year thereafter the stumpage price is changed
by the same percent as the percent of change in "actual" mill-run lumber
price. In 1936 a second unit of this bloc is sold, at the price than in
effect for the first unit. Stumpage revaluations are again carried
through the succeeding years in the same manner. This is continued,
with a new sale being made each year, and each sale being revalued
annually on an "actual" lumber price basis. The natural result is that
the stumpage prices on all units are the same for any given year,
confirming the fact that the stumpage is of uniform value throughout.
TABLE OMITTED SEE ORIGINAL
The same procedure is then repeated except that revaluations are
based on "weighted" mill-run prices. The initial stumpage price for
each contract is the then current price from the above table, but
subsequent revaluations are based on lumber prices "weighted" according
to the percentage of grades developed in the year the sale was
negotiated. For example, the 1935 sale is revalued on "weighted" lumber
prices using the 1934 percent of grades as a base. The 1936 sale is
revalued on "weighted" prices using 1935 percent of grades as a base,
and so forth. The result is shown below: (See attached tables for
details of these calculations)
TABLE OMITTED SEE ORIGINAL
The same procedure is then repeated except that revaluations are
based on "weighted" mill-run lumber prices. The initial stumpage price
for each contract is the then current price from the above table, but
subsequent revaluatuions are based on lumber prices "weighted" according
to te percentages of grades developed in the year the sale was
negotiated. For example, the 1935 sale is revalued on "weighted" lumber
prices using the 1934 percent of grades as a base. The 1936 base, and
so forth. The result os shown below: (See attached tables for details
of these calculations) TABLE OMITTED SEE ORIGINAL
All of the stumpage is actually of identical value, and yet, these
revaluations based on "weighted" lumber prices result in a variety of
stumpage prices for any given year. Although the prices are erratic,
they fall within a reasonable range above and below the rates based on
"actual" mill-run price -- until the year 1944. In that year the
"actual" stumpage price stands at $26.45 while all of the "weighted"
prices are distinctly lower, grouped around $6.20.
This sudden difference is evidently caused by an abnormal change
during 1943 in the percentage of grades sold. It may be that the Office
of Price Administration made "even Stephen" price adjustments during the
year. These are deliberate changes in price differentials between
grades in order to encourage the production of grades or dimensions that
are needed in the war effort. /1/ There is some evidence of this in the
fact that substantial price increases were allowed for the year 1943
over 1942 on all 5/4 Common. As a result, 16.14% by volume of all 1943
sales was 5/4 Common, compared with 6.29% in 1942. (see Table Ia,
attached)
It is apparent that changes in grade prices and changes in the demand
for each grade of lumber are both important in determining the trend of
market conditions. In a seller's market the prices of all grades tend
to rise. Manufacturers are also in a position to accept only the more
advantageous orders and, therefore, tend to produce and sell the more
profitable grades of lumber. In a buyer's market, prices of all lumber
grades tend to decline, and the manufacturer is forced to concentrate on
the lumber grades for which there is a market, although these may be the
less profitable ones.
The above study leads to these conclusions:
In the first place, our stumpage revaluations are made annually with
the evident intention of following the trend of economic conditions as
closely as possible.
This trend has a direct effect upon both the lumber grade prices and
the volume of each grade sold.
Since "actual" mill-run lumber prices reflect changes in both grade
prices and the percent of grade sold, while "weighted" prices do not, it
appears that the former should be used in our stumpage revaluations.
If our revaluations were made at intervals of three years or longer
we would be interested in the longer-term trends. A new stumpage price
would remain in effect for several years and we would not want to base
it upon strictly temporary changes in the market. In that case the
"weighted" lumber price might be preferable. But it can be repeated
that our revaluations are made annually. We should, therefore, follow
the annual changes in market conditions as closely as possible.
Another reason for using "actual" mill-run price is that it maintains
a constant relationship between stumpage values on sales made in
different years, whereas the "weighted" prices do not. This is brought
out in the foregoing tables.
Finally there is the advantage of simplicity. If stumpage prices are
revalued on the basis of "actual" mill-run prices, only one computation
of the price of a given species is required each year. This one price
is applied to all contracts regardless of the years in which they were
approved. If "weighted" averages are to be used, a separate computation
of lumber price must be made for every year in which a currently active
contract was approved. Or else the average percentage of grades for an
arbitrarily determined year or period must be used for the "weighted"
averages. This may be more cumbersome, and is surely subject to greater
criticism, than the use of "actual" average mill-run prices.
George S. Kephart,
Forester.
11-16, 23-44
0001748
December 7, 1944
Mr. L. D. Arnold, Director of Forestry
Mr. G. S. Kephart, Forester
Justification of our stumpage revaluation procedure
At the close of this calendar year we shall make the annual stumpage
reappraisals on about forty timber sale contracts. Unless our studies
indicate clearly that some new method is required we shall again base
these stumpage revaluations primarily upon the percent of change during
the past year in the average market value of timber or logs. The
procedure to be followed is explained in previous stumpage reappraisal
reports and in other correspondence.
The subject is of sufficient importance to justify a restatement at
this time of some underlying facts that have led to this procedure.
The timber sale contracts in question contain stumpage revaluation
provisions substantially as follows:
"The Secretary of the Interior is authorized and directed to
revise stumpage prices at any time upon 30 days notice to the
purchaser as the trend of economic conditions in the lumber
industry shall warrant; Provided, That any rates so established
shall not be less than those specifically set forth above."
The wording and details differ in various contracts (samples of each
type are attached to this memorandum) but they all have the common
requirement that stumpage prices shall be adjusted as the "trend of
economic conditions" shall warrant.
At first thought it would seem that the term, "economic conditions"
is concerned entirely with the contractor's ability to make a profit
from his operations under the contract. Further study will show,
however, that this is but one of at least two fundamental
considerations.
In the first place, these economic conditions include the factors
that effect either the cost of production or the sales value not only of
goods produced from the stumpage under contract but of competing goods
as well. These are factors that control the contractor's opportunity to
make a profit in competition with other manfacturers. They are not
concerned with the contractor's individual ability to take advantage of
or to combat those factors. For example, an industry-wide change in
lumber prices, or in wage rates, would be a change in economic
conditions. On the other hand, it is no change in economic conditions
if one operator makes a particularly good sales connection and receives
a better-than-average price for his lumber. Some local condition, such
as the abandonment of a railroad serving the contractor's mill, may
affect the stumpage value under a particular contract. But this is
cause for adjusting the basic fair value of the stumpage rather than
being a change in economic conditions.
In the second place, this, "trend in economic conditions" reflects
any industry-wide change that favors or injures one of the contracting
parties more than the other. A striking example of this is the current
trend towards monetary inflation in spite of Federally imposed price
ceilings.
As the value of the dollar is reduced, production costs and selling
prices tend to rise, but in the upward struggle cost may push selling
prices so hard that there is little or no increase in dollar profit from
the contractor's operations. The ceilings on selling price emphasize
this condition. In these circumstances it is manifestly unfair to the
stumpage owner if we consider an increase in the industry's profit
margin as the only change in economic conditions upon which an increase
in stumpage rates is warranted.
The reasons are farily obvious. The industry's increasing costs
include salary and wage increases to officers and laborers, increases in
many overhead items, the added cost of supplies and equipment, etc.
When these increased costs become too burdensome the industry obtains
limited relief, through the Office of Price Administration, by means of
an upward revision of the price ceiling. These upward revisions are
made by the O.P.A., ". . . when the return to an industry falls below
that which it earned in a representative peace-time period." /1/
In other words, neither the employees in an industry, nor the
industry's financial structure is expected to suffer undue hardship, but
any tendency towards increased profits is discouraged or prevented.
Such an arrangement could permit an upward retreat of lumber prices
before the advance of costs (other than stumpage) that double or treble,
without any substantial increase in profits. The operator's profit
would stand still while most items of cost and the selling price were
soaring. If increases in stumpage rates were dependant upon increased
profits the stumpage rates would necessarily stand still also.
Meanwhile the stumpage owner, like the manufacturer, would find his
costs mounting. He would be forced to pay increased wages to his forest
protection crews, scalers and others, and higher prices for the supplies
and equipment retained to protect and administer his forest property.
For this reason alone there should be some increase in stumpage rates.
In periods of inflation there is also another reason why stumpage
rates should be increased, even when there is no commensurate increase
in the operator's profit. Stumpage (i.e. standing timber) is a form of
real property. Profit, on the other hand, is measured in terms of cash.
Profit is a return, in excess of normal interest, on the money invested
in the enterprise. In periods of inflation the value of the dollar
tends to shrink, but there is a much greater tendency for real property
to retain its value. Other things being equal, a given unit of stumpage
or other real property will be worth an increasing number of dollars as
the value of those dollars depreciates.
There is, then, this distinction. The stockholder in an enterprise,
having invested his cash, can only expect to find his investment less
attractive in times of inflation. The stumpage owner, on the other
hand, is investing his real property in the enterprise, and should not
suffer to the same extent as the investor of cash.
A period of inflation, combined with Federally imposed price
ceilings, is therefore an example of changing economic conditions that
may injure one of the contracting parties more than the other unless
remedial measures are taken through stumpage revaluations.
How can the trend of economic conditions be measured? Assuming that
this is a reasonable definition of economic conditions we can decide how
the trend is to be measured. The ideal method might be to maintain a
constant check upon the entire business history of the industry -- the
market value of goods produced, the cost of producing them, the
resultant profit or loss, the dollar price level at which the
transactions take place, etc.; but not all of this can be done. A
steady record of the volume and market value of goods produced can be
obtained with acceptable accuracy through information published by
various trade associations. An acceptable measure of the dollar level
at which transactions take place could probably be found. But
unfortunately the true average cost of production within the industry is
not so readily or accurately available. There is a natural
disinclination on the part of the operators to publish this information.
Furthermore, differences in accounting methods make comparisons
difficult. It is even difficult to compare the financial statements we
obtain from purchasers of Indian timber.
Since reliable cost figures cannot be obtained it was recommended by
the regional office personnel that the average selling price (market
value) of lumber or other goods produced should be used as the yardstick
with which to measure this "trend of economic conditions." /2/ (It is,
of course, understood that there would be a continued study of the best
information as to manufacturing costs, general business conditions,
stumpage prices in current sales, etc. Such studies may either confirm
the trend as indicated by the behavior of market values, or may show
that some new element is altering the picture.)
In order to understand why the selling price of the manufactured
product can be used for this yardstick we must understand the important
role it plays in the original stumpage appraisals. This relationship
between selling price of the manufactured article and the value of the
stumpage from which it is produced is discussed at some length by
Chapman /3/ and Matthews /4/; and these two authorities are referred to
for confirmation of some of the opinions which follow.
In appraising stumpage values, preparatory to making a sale, the
estimated cost of production, plus a margin for profit and risk, is
subtracted from the sales value of the products to be manufactured. The
remainder is the appraised value of the stumpage at the time. Or
expressed in another way, the sales value of the manufactured product is
distributed to these three elements:
1. Cost of production 2. Margin for profit and risk 3. Stumpage
Two important facts are revealed in this breakdown of the stumpage
appraisal. In the first place, ample provision is made for the cost of
production in accordance with the best available information. Secondly,
a profit and risk margin is provided, the importance of which will be
discussed later.
These original appraisals are made by the Indian Service. The unit of
timber is then offered for competitive bidding, with the appraised value
being used as the upset price. The successful bidder, by his own
action, helps to confirm this stumpage valuation. In fact the accepted
bid price is often higher than the appraised value. This may mean that
the bid was either speculative or the result of poor business judgement.
Or it may have been the desperation bid of a concern greatly in need of
the timber; or a freeze-out bid by one operator against another; etc.
On the other hand it may indicate that the original appraisal was too
conservative. More often, however, the difference between the appraised
and bid prices represents the enhanced value of the stumpage created by
a strong competitive market. All but the latter two conditions
represent abnormal bids, and do not establish a fair stumpage value.
Except for the abnormal bids, however, the purchaser's action helps to
confirm the fact that, taking operating costs and a fair margin for
profit and risk into consideration, the stumpage had a specified value
at the time of sale. The average market value of products manufactured
by his competitors was also known, so this action establishes an
acceptable ratio between the value of the stumpage and the value of
those manufactured products.
We have previously stated that the selling price of the manufactured
product is distributed to production cost, margin for profit and risk,
and stumpage. Obviously, if production cost increases while selling
price remains stationary, there must be a corresponding reduction in
either "profit and risk", or stumpage, or both. In this connection the
true meaning and function of the margin for profit and risk should be
understood.
In the first place, an investment and use of money is required to
conduct any enterprise such as a lumber business. The lumberman should
pay interest for the use of this money, because it could be earning
interest elsewhere if not tied up in the business. Provision is
therefore made for this in the original stumpage appraisal. Interest
may be computed as an item of production cost, or it may appear in the
allowance for profit and risk. In either event, there is a profit and
risk provision in the item of that name, in addition to and entirely
distinct from the earned interest. This true profit and risk feature
allows a profit to the manufacturer, when it can be earned, for his
initiative and energy in promoting the enterprise. (Salaries of
officers are an item of cost.) Furthermore, it provides a margin for the
unforseen or unpredictable -- the risks of the business -- as for
instance an upset in the original balance between selling price and cost
of production.
It is not intended that the full amount allowed for profit and risk
in the stumpage appraisal will be obtained at all times throughout the
life of the contract. It is the reservoir that should be tapped first
when the margin between sales value and production cost is reduced. It
is also the reservoir that should receive any additional margin that the
operator can create through his own ingenuity.
Naturally, the reservoir can be drained completely, and beyond that
point the operation will be run at a loss. On the other hand,
industry-wide improvement in manufacturing technique or utilization
might fill the reservoir beyond all reasonable limits, and this might
warrant a revision of the basic stumpage appraisal. This letter
condition is not apt to happen during the life of the ordinary timber
sale contract.
Accordingly there seems to be ample justification for basing our
stumpage revaluations upon changes in the market value of lumber or
logs. A fair ratio between stumpage value and value of the manufactured
product was established when the contract was entered into. Provision
was made at that time for a profit and risk reservoir to absorb the
operator's normal risks or to provide his profits. The selling price of
the manufactured product is, to a considerable degree, a barometer of
the price level at which transactions are taking place. This being true
we can accept the trend in selling price of the manufactured product as
a yardstick with which to measure the trend of economic conditions. We
are therefore justified in maintaining, through periodic adjustments,
the ratio that prevailed originally between stumpage rates and the value
of the manufactured product.
There are times when the use of the ratio (or percentage) method of
reappraisal will favor the seller; at other times the buyer. In other
words, the profit and risk reservoir will be drained at times and
replenished at others. Fairness to both parties requires that this be
permitted. At the same time, all other information that might indicate
the trend of economic conditions should be studied regularly as a check
upon the reliability of the market value trend, for it is always
possible that some new manufacturing process or standard of utilization
might change completely the fair basic ratio between the value of the
stumpage and the value of products manufactured from it.
No claim is made that this ratio, or percentage, method of
reappraisal is a new idea. When modifications of certain Indian Service
timber sale contracts were being negotiated, under authority of the Act
of 03/04/33, as amended, six operators on the Klamath Reserva- tion
recommended a new form of contract which provided for stumpage
revaluations by the ratio method. In commenting on this proposed form
of contract, Mr. Lee Muck, now Assistant to the Secretary of the
Interior, said that he had been pointing out the relationship which
exists between the value of stumpage and the wholesale selling price of
lumber for the past ten years, and had fathered the thought that therein
lies a fundamental principal in price fixing with respect to long term
contracts. /5/ He stated that several logging contracts had been
executed and brought to a successful conclusion under the plan. He
called attention, however, to certain wording in the Act of 03/04/33, as
amended, which made it necessary to state in the contracts that stumpage
revaluations would be based upon the trend of economic conditions.
More recently, timber on the Yawkey tract, adjoining the Klamath
Indian Reservation, was sold with a stumpage revaluation clause of this
type. We have talked with the manager of the Algoma Lumber Company,
Purchaser; and with Mr. Jack Kimball, who represented the Yawkey
interests, and each agreed that this ratio method of determining
stumpage prices was highly satisfactory. Mr. A. J. Voye, president of
the Big Lakes Box Company of Klamath Falls, Oregon, and a recent
president of the Western Pine Association, has often told us that he
believes this ratio method could be the most fair method of adjusting
stumpage prices.
The ratio method is fundamentally sound and has the endorsement of
both buyers and sellers of stumpage. It is acceptable in connection
with these contracts as the principal means of measuring the trend of
economic conditions. It is, however, necessary that other pertinent
information be studied constantly in order to discover any new elements
that may enter and distort the picture.
We must recognize a state of inflation if it exists, but we should
not be charged with inflationary motives when we increase stumpage
prices under this procedure. Each of our upward adjustments is made
only after there has been a full year's increase in the average price of
lumber (or other product upon which the revaluation is based). There
are sound economic reasons for making these adjustments and, under the
terms of the contracts, we are required to do so.
George S. Kephart,
Forester.
GSK:GI
cc: Forestry chrono Holdup
Associate War Goods Price Coordinator for O.P.A. Journal of Forestry,
October, 1944.
Committee by James F. Brownlee, Deputy Administrator for Price, Office
of Price Administration (quoted in the Journal of Forestry, October,
1944, page 710)
25, 1944. Conclusions with Respect to Stumpage Appraisals, Reappraisals
and Timber Contracts.
Matthews.
by Lee Muck, November 25, 1933 (52866-33 Klamath 339).
HES-003-1640-1643
HES-003-1644-1650
HES-003-1640-1643
HES-003-1644-1650
IIA44.1
IIA44.1
ARNOLD, L.P.
ARNOLD, L.D.
431213
CORRESPONDENCE
LENZIE, FRANK B. PATRIE, CARTHON R.
Forestry and Grazing
AIR MAIL
Commissioner of Indian Affairs
Chicago 54, Illinois
Sir:
Reference is made to the letter of November 30, 1943, addressed to
this Office by Mr. L. D. Arnold, Director of Forestry, having regard to
the General Timber Sale Regulations which are attached to each Indian
Service timber sale contract. Mr. Arnold points out that there have
been changes in logging practices and other conditions since these
regulations were originally issued and asks for our recommendations as
to possible revisions.
In accordance with Mr. Arnold's request Mr. Patrick L. Gray and the
writer have very carefully reviewed, analyzed, and thoroughly discussed
the General Timber Sale Regulations in the light of our experience with
sales in the Northwest Region. On the basis of this review and analysis
a number of revisions of existing clauses and several entirely new
provisions have been prepared and are herein submitted for the
consideration of the Office. It should be understood, however, that we
submit these recommendations for changes with considerable diffidence
for our almost constant use of these formulations for many years has
instilled in us a very wholesome respect for the original regulations
and the wisdom and skill with which they were drawn. For the most part,
the regulations are as sound and applicable today as when they were
first made, and require only such changes as have been made necessary by
changing conditions, how procedures, or to clarify points on which there
has occasionally been some dispute.
The suggested revisions of existing sections of the regulations are
presented below in numerical order, followed in each cash by a brief
explanation as to why the changes are recommended.
7. Cash Deposits.
CASH DEPOSITS IN ADVANCE of cutting will always be required. At no
time shall the stumpage value of the timber cut exceed the total amount
of the advance deposits paid in to the Indian Service and additional
deposits in amounts stipulated by the contract will be called for as
often as required to maintain a favorable balance. At any time that the
stumpage value of the timber cut shall exceed the amount of the advance
deposits operations shall be suspended. Statements of timber scaled,
and of estimated volume cut and not scaled, will be rendered to the
purchaser at monthly intervals during the progress of cutting
operations.
Explanation: The change is suggested to agree with current procedure
of demanding additional deposits in fixed amounts as stipulated by the
contracts, and at any time when needed to maintain a favorable balance.
In some cases, several deposits may be required during a monthly period.
8. General Advance Deposits.
THE GENERAL ADVANCE DEPOSITS required by a contract which includes
both allotted and unallotted timber will be credited so far as necessary
on allotments cut during the period coverd. The fact that special
advance payments have been made on allotments which are about to be cut
will not operate to reduce the size of the required general advance
deposits, but rather will postpone the necessity of making demands for
them until the advance payments on the particular allotments being cut
have also been exhausted. The deposit made with the bid for the timber
will ordinarily be applied as a general advance deposit, except where
the deposit with bid is held as a cash bond, in which case an advance
deposit in equal or greater amount will be required in advance of
cutting.
Explanation: The last sentence is changed to provide for the current
procedure on many smaller sales of holding the deposit with bid as a
cash bond.
9. The Areas to be Logged.
THE AREAS to be logged in any season may be designated by the officer
in charge when in his judgment this is necessary to prevent
deterioration or serious losses from fire, insects, windthrow, stain,
worms, or other cause or to insure the logging of the sale unit in such
a manner as to fully protect the interests of the Indians and the United
States. When logging is begun on a natural logging unit it will not be
discontinued and started elsewhere, except as made necessary because of
unfavorable weather or ground conditions, without the written consent of
the officer in charge.
Explanation: Insects, windthrow, and stain were added because these
are important factors in causing timber losses in the Northwest. In the
last sentence, the words "on an allotment" were deleted because more
often than not, due to the topography, it is not practicable for an
operator to complete an allotment before proceeding elsewhere on a sale
unit. Provision was also made in the last sentence to permit an
operator to move operations if compelled to do so by unfavorable logging
conditions.
11. All Dead Trees.
ALL DEAD TREES standing or fallen which are one third or more
merchantable will be logged for their merchantable contents. All other
dead standing trees exceeding fourteen inches D.B.H. and twenty feet in
height will be felled unless specifically exempted therefrom by the
contract or the written consent of the officer in charge. Providing
that the purchaser will not be required to fell the dead standing trees
on areas where the total number and gross volume of such trees exceeds
the number and merchantable volume of the trees designated for cutting.
Explanation: It is generally impracticable for an operator to fell a
tree unless the volume of merchantable lumber is sufficient to defray
his costs of felling and bucking, and it is doubted whether he can
generally afford to fell and buck any dead tree that is less than one
third merchantable. We are suggesting, therefore, that this be the
minimum requirement for felling rather than one merchantable log. We
also suggest practical minimum size standards for snags to be felled,
and an equitable basis for determining areas on which the snag felling
requirement should be waived.
12. Firewood and Improvements.
FIREWOOD AND IMPROVEMENTS will be made as far as practicable from
unmerchantable material, and material so used will not be charged to the
purchaser so long as it is used by the purchaser in connection with his
logging operations and is not cut for sale. Wood cut for sale, and wood
or improvements taken from merchantable material, will be scaled or
measured, charged, and paid for at regular stumpage rates.
Explanation: To eliminate any confusion as to the purchaser's right
to cut wood free of stumpage charge for subsequent sale. A serious
dispute occurred over this assumed right several years ago.
15. Waste.
WASTE in butts, tops, breaks, skids, and partially sound logs and all
trees designated for logging which are not logged and all trees which
are left falled or lodged or badly damaged by the logging operations
will be scaled for their merchantable contents and charged against the
purchaser. Excessive waste in high stumps may be penalized by scaling
all unnecessarily high stumps as a two feet log having the mean top
diameter inside bark of the stump. All cutting will be done with a saw
if possible.
Explanation: The second sentence was added to enable the exasting of
an adequate penalty for the persistent cutting of high stumps.
19. The Overlength.
THE OVERLENGTH allowed on logs for trimming will not exceed one inch
to each four feet of lenght, except that two inches additional trim may
be allowed per log on all butt logs exceeding twenty-four inches top
diameter, the four inches per log on butt logs exceeding forty-eight
inches top diameter. Logs which overrun these allowances will be scaled
as if cut two feet longer. Logs longer than the maximum scaling length
named in the contract will be scaled as if bucked into two or more
shorter logs and with the top diameters they would actually have if so
cut.
Explanation: Additional trim allowances are provided for larger butt
logs to allow for saw "run". These added allowances are necessary to
prevent unnecessary waste in the sawmill from inadequate trim.
25. The Slash.
THE SLASH resulting from the logging operations, including all
branches up to four inches in thickness lopped from tops and logs, will
at the time of skidding or as soon thereafter as possible be piled
compactly and away from reserved trees on the whole area to be logged,
unless some other method of slash disposal is provided in the contract
or is authorized in writting by the officer in charge.
Explanation: We do not believe it advisable to limit slash piling to
selectively cut areas. We have, therefore, eliminated the words "on the
whole area to be selectively logged" from the original section.
Provision also has been made for some other method of slash disposal
where conditions are not suitable for piling and burning.
28. Forest Fires.
FOREST FIRES on the sale area or adjacent lands during the contract
period will be prevented or suppressed by the purchaser, his employees
and subcontractors, wherever possible. When called upon by an
authorized forest officer, they will work under his directions to
suppress fires. The purchaser will ordinarily not be requested to fight
fires outside the sale area but may be required in emergencies to
utilize part or all of his available facilities, as determined by the
responsible Indian Service forest officer, to assist in the control of
forest fires on any part of the reservation. If the purchaser or his
employees or subcontractors were not directly or indirectly responsible
by act or neglect for the origin or spread of the fire, reimbursement
will be made, except that such reimbursement for fires within the sale
area will not exceed one half the total cost of suppression within that
area. When fires spread into or outward from the sale area suppression
costs will be pro rated on an area basis and reimbursement made not to
exceed one-half the proportionate cost for that portion of the fire
lying within the sale area. The purchaser's expenditures when made both
within and without the sale area on the same fire will also be pre rated
on an area basis and reimbursement made in full for that proportionate
part expended outside the sale boundaries. Any claims for reimbursement
must be submitted within sixty days from the last date on which the
expenditures were incurred and be supported by detailed statements
certified to by responsible officers of the purchaser.
Explanation: Changes in this section were made primarily to clarify
the current procedure and make it easier to determine amounts for which
the purchaser is to be reimbursed for fire suppression. It will be
noted that the one-half mile strip outside the sale boundary has been
eliminated from consideration. This was done because of the difficulty
in apportioning expense on large fires, which may overlap several sale
areas and involve more than one operator.
29. Donkey Logging.
DONKEY LOGGING may be permitted in the discretion of the Commissioner
of Indian Affairs but ordinarily will be excluded except in the Douglas
fir region of the Pacific Coast. The ground around the doneky engine
will at each setting be cleared of dry trees for a distance of ten rods
and of all other combustible material for a distance of fifty feet in
all directions during the season from April 1 to October 15 and any
other season of fire danger. The purchaser will be expected to comply
with applicable State fire and safety regulations in the operation of
steam, gas, or diesel powered heavy equipment.
Explanation: The fire season was lengthened to include the month of
April and the first fifteen days in October, as this more nearly
corresponds with average fire seasons on the Pacific Coast. It was also
believed desirable to require compliance with State fire and safety
regulations since these are usually made to correspond to local
conditions and needs.
33. Right of Way Slash.
RIGHT OF WAY SLASH resulting from clearing operations for the logging
railroad, its spurs, or logging truck roads, must be piled and burned by
the purchaser unless this provision is specifically waived in writing by
the officer in charge. The right of way slash to be piled will include
seriously injured or broken down reproduction, and all green and dead
branches and other combustible woody material up to four inches in
thickness. Merchantable material, as defined by the terms of the
contract, which is slashed in right of way clearing operations must be
left in suitable condition to permit scaling. The purchaser shall for
such periods as may be required by the forest officer in charge patrol
all logging railroad tracks after the passage of each locomotive.
Explanation: Changes and additions made to include logging truck
roads on which we have had difficulty in securing satisfactory disposal
of slash from right of way clearing, and to prevent burial of
merchantable material in fills. Piling of right of way debris is
specifically prescribed to prevent windthrowing of large and small
material with its usual harmful and otherwise unsatisfactory results.
The following sections are suggested as additions to the General
Timber Sale Regulations. They include two special provisions for fire
protection on truck and tractor logging operations, a provision for the
payment of fire damages, a stipulation prohibiting employee
discrimination, and a cut or pay clause. With the exception of the two
fire protection provisions all of the suggested additions are already in
force on most Indian Service timber sales, being embodied in the general
contracts. All are believed to be practical and of such general
application as to be properly included in the general sales regulations.
The new sections are presented by number so as to indicate the order in
which they should appear if embodied in a revised draft. These numbers
do not indicate that the clauses are intended to replace the original
clauses of the same number, but that they should be inserted at these
points. The clauses follow.
29. Payment of Fire Damages.
PAYMENT OF FIRE DAMAGES will be required of the purchaser when he or
any of his employees, his subcontractors, or their employees, shall be
responsible by act or neglect for the starting or spread of fires which
damage the forest cover. Young growth under ten inches in diameter
which has been seriously damaged or destroyed shall be paid for at the
rate of ten dollars per acre for the areas thus burned over unless
lesser rates are approved by the Commissioner of Indian Affairs. In
addition to these liquidated damages, the purchaser will pay the damage
that shall be caused to all timber ten inches and larger in diameter at
four and one half feet from the ground or to any other property of the
Indians or the Government. If merchantable timber is injured by a
forest fire for the origin or spread of which the purchaser, his agents,
employees, subcontractors, or their employees are in no way responsible,
the purchaser shall be accountable for the loss sustained only to the
extent that such loss is due to his failure to cut and remove the
injured timber as expeditiously as shall be possible under the existing
circumstances and the terms of this contract.
31. Truck Logging Operations.
TRUCK LOGGING OPERATIONS by the purchaser will be conducted under
reasonable safeguards for the prevention of forest fires. When such
operations are of sufficient size and so planned and operated to justify
additional protection from fire, the purchaser may be required upon
thirty days notice in writing by the officer in charge to provide a tank
truck or portable water tank of not less than two hundred gallons
capacity properly equipped with a power pump of sufficient size to give
forty pounds pressure at a nozzle one-fourth inch or larger in diameter
when attached to three hundred feet of one inch or larger hose, said
pressure to be measured at the pump level. Said truck shall be equipped
with eight hundred feet of hose one inch or larger in diameter. All
such equipment shall, during the fire season of each year, be kept in
constant readiness for instant use in preventing forest fires.
32. Chemical Fire Extinguishers.
CHEMICAL FIRE EXTINGUISHERS of not less than one quart capacity will
be required on each and every tractor employed in the woods operations.
Each truck used in hauling forest products from the forest area will be
required to carry as regular equipment a chemical fire extinguisher of
not less than one quart capacity, and hose, and the shovel.
44. Failure to cut Minimum.
FAILURE TO CUT TIME MINIMUM of timber required by the contract to be
cut during any year or other designated period shall be covered by the
deposit by the purchaser on or before the end of such contract period of
an advance payment to the Superintendent for the uncut balance of the
required minimum calculated at the price of the predominant species
under the contract. Advance payments so made shall be applicable to
timber cut in a subsequent contract period only after the purchaser in
such subsequent period has cut and paid for the minimum of timber
required to be cut in that period under the contract, Provided, That the
officer approving the contract may relieve the purchaser in whole or in
part from the minimum cutting and paying requirements because of adverse
market conditions, fire damage to the purchaser's logging equipment or
manufacturing plant, acts of God or Government control, or for other
cause deemed sufficient by the approving officer.
48. Discrimination Against Employees.
DISCRIMINATION AGAINST ANY EMPLOYEE or applicant for employment
because of race, creed, color, or national origin will not be permitted
in the purchaser's operations and the purchaser shall require an
identical provision against such discrimination in all of his
subcontracts executed under the general contract.
It is hoped that the foregoing suggested changes and additions to the
General Timber Sale Regulations will prove to be of some value to the
Office in its consideration of possible revision.
Very truly yours,
FRANK B. LENZIE,
Regional Forester.
By: CARTHON R. PATRIE,
ACTING.
CRP/AT
HES-003-1651-1659
HES-003-1651-1659
IIA43.2
ARNOLD, L. D. COMM OF INDIAN AFF
430708
CORRESPONDENCE
PATRIE, CARTHON R.
Forestry and Grazing
Mr. L. D. Arnold, Director,
Division of Forestry, Indian Service,
Merchandise Mart,
Chicago, Illinois.
Dear Mr. Arnold:
In accordance with arrangements made during your recent visit to this
regional forest opfice, I have prepared and enclose herewith two copies
of a proposed form of contract for the sale of timber from Indian lands,
together with attached copies of an explanatory memorandum discussing
the various clauses of the contract in detail.
The contract has no particular advantages for use in sales of timber
in small blocks, where the period of cutting will not extend longer than
two to three years at most. It was designed for use on those
reservations where location, topography, natural lines of development,
and sustained yield considerations dictate the sale of timber in large
blocks under a long term contract.
While past experience has indicated that the sale of timber in large
blocks under long term contracts enables the sale of good and poor
timber alike at a fair price, permits the purchaser to undertake the
development of logging roads, installation of sawmills, etc., and
generally is conducive to stable operations, this method has presented a
few disadvantages which have not always been easy to solve or adjust.
The principal difficulties have been found to arise from radical changes
in market and operating conditions, which were impossible to foresee and
make adequate provision for in the contract, and secondly, with the
methods of adjusting stumpage rates from time to time.
The proposed form of contract submitted herewith has been prepared in
the hope that it will assist in the solution of some of the problems
that have arisen in the past twenty years in connection with long term
timber sale contracts. The general form of the contract and most of the
provisions are not new, but have been in use for many years and have
stood the test of past experience. I have merely attempted to
incorporate the best features of a number of contracts and to add
thereto a few new provisions that appeared to be essential.
At first glance the revaluation clauses would seem to be quite
radical, and it is quite true that they do not appear in this form in
any other Indian Service contract known to me. Actually the principle
is identical in results with the ratio method developed by Mr. Lee Muck,
stumpage rates rising or falling in exact proportion with the annual
trend in the lumber market. An advantage of the clause is that is is
known and agreed to by all the parties to the contract in advance.
It will be noted also that a minimum stumpage rate is stipulated
which is neither the originally appraised rate or the bid rate. There
are several advantages to this as will be seen in the memorandum. There
has been incorporated as well a special clause providing for a reduction
in rates, without regard to lumber market trends, when adverse trends of
the cost factor make adjustment in stumpage rates temporarily necessary.
I believe the contract to be fair to both the Indian owners and the
prospective purchasers and hope that it will be of some assistance in
working out the difficulties that have most frequently occurred in
connection with long term contracts.
Any comments you care to make will be much appreciated.
Respectfully submitted,
CARTHON R. PATRIE,
Forester.
CRP/AT
Enclosures
The attached contract has been drafted for use in connection with
long term sales of timber in large blocks from Indian reservation lands.
It is in no sense radical and represents an attempt to incorporate the
best features of a number of active Indian Service contracts rather than
the preparation of something now. The general form and arrangement and
most of the individual clauses are identical with those that have been
in use in the Indian Service for many years and have met the exacting
tests of experience.
Upon first glance the clauses pertaining to stumpage revaluations may
appear to be entirely new, but it will be found upon review that they
merely crystallize proven procedures, and make the adjustments
practically automatic. Results are exactly the same as with the ratio
method, stumpage rates varying in direct proportion with the trend in
the lumber market, but certain safeguards are added to prevent a
repetition of the situation which occurred during the depression, when
Congressional action was required to enable a modification of the
contracts.
The contract has been made as understandable as possible by applying
it specifically to a sale of timber on the Klamath Reservation. Some
slight variations will naturally be required to meet the different
conditions found on other reservations, but the principles and
procedures will apply equally well anywhere.
The various clauses are discussed below in the numerical order in
which they appear in the contract.
1. This clause is in the standard form used in all long term
contracts involving sales from the lands of unorganized tribes.
2. This clause is in standard form except for the addition of the
underlined words in the statement "within a tract having a total
estimated stand to be cut, which estimate is not guaranteed, of +++
board feet." Experience in the Twin Lakes Unit (Colville Reservation)
damage suit several years ago indicates the desirability of showing in
the contract the approximate amount of timber available for cutting.
3. This clause need not be included in sales of timber from
reservations that have not been opened to homestead or mineral entry.
4. As in Clause 2 above the estimate of timber to be cut is given to
prevent questions being raised as to the amount of timber actually
available.
5. The initial period of the contract during which the bid rates
would be in effect will depend upon the time required for development
before actual cutting begins. Ordinarily one year or more should be
allowed to get operations under way. If the sale is made in July, 1943,
and cutting would probably not begin until late in 1944, the first
adjustment of stumpage rates ought to be made on April 1, 1945.
6. It is provided that stumpage readjustments shall be made at
annual intervals throughout the life of the contract. Experience has
indicated that it is not equitable to base readjustments on less than
annual periods, since lumber and log markets under normal conditions can
and do fluctuate violently from month to month without indicating
definite trends. An annual average evens up these fluctuations and
closely reflects the general upward or downward tendency of the lumber
market.
7. To furnish a basis for comparison and determination of the lumber
market trend it is proposed to definitely stipulate the wholesale
mill-run gross average annual mill-run price in the contract for each of
the species involved. If the timber sale was made during the year 1943
the stipulated price would be the annual average price for the calendar
year 1942. Averages would be calculated in advance from the weekly
sales summaries of the Western Pine Association and a summary sheet
prepared for each species showing in column form the grade, volume sold,
per cent of total sales by volume, and the average price received. It
is intended that the purchaser will be furnished copies of these summary
sheets so that he may determine by independent calculation if he so
desires what the new stumpage rates will be at each readjustment period.
It should be explained that weekly price summaries published by the
Western Pine Association are the best source of information obtainable
on lumber sales in the Western pine region. The Association represents
94-99 per cent of the total lumber production in the region and
maintains a regular statistical service for the benefit of its members.
Its sales data are compiled accurately and consistently and are of
unquestioned authenticity, being used by several Governmental bureaus
and statistical agencies, including the Indian Service.
This regional office subscribes to and receives regularly the weekly
sales summaries referred to in the contract, and compiles the data for
use in stumpage revaluation studies. No extra compilation work would be
required to prepare the annual summaries for the use of the agencies in
connection with their sales contracts and stumpage price readjustments.
It will be noted that the average prices for incense cedar and
lodgepole pine have been indicated in blank to show no averages are
available for these species. The volumes of lumber sold of these
species are so small that the Association does not compile separate
individual reports of sales for them. Since the trend in price is very
closely parallel to that of laroh-Douglas fir lumber this price will be
used as a basis, as noted in Clause 9.
For sales of timber from reservations in the West Coast region
stumpage readjustments could be based on either log selling prices, as
reflected by the quarterly sales analyses of the Pacific Northwest
Loggers Association, or on lumber prices as published by the West Coast
Lumbermen's Association. In the past, stumpage readjustments on
Quinaielt Reservation contracts have been made on the basis of the log
sales reports compiled for the Grays Harbor Region by the Pacific
Northwest Loggers Association. However, the Grays Harbor Region is
rapidly declining in importance and it may be that within a decade the
volume of logs produced in the area will be too small to furnish a
satisfactory basis for stumpage appraisals. Any long term sale of
Quinaielt Reservation timber would probably best be made, therefore,
with stumpage readjustments predicated on a lumber basis. This would be
entirely practicable.
8. As indicated, at the end of each calendar year preceding the
readjustment date April 1st, the annual gross wholesale mill-run lumber
prices of the species involved will be determined by compilation of the
weekly price summaries, and a direct comparison made with the average
annual lumber prices stipualted in clause 7 as the basis averages. Any
increase or decrease in the lumber price from the basic averages will be
reflected by a corresponding proportionate increase or decrease in the
stumpage rates from the prices bid and stipulated for the initial period
of the contract.
While nothing is said about ratios in this or other clauses of the
contract the effect is identically the same as if a ratio were
established between the prices bid and the wholesale lumber price. The
purchaser when he makes his bid determines what represents a fair
relationship between the value of the stumpage and the prevailing
average price of lumber, from the standpoint of his own particular
operation. The value to him may be comparatively high if he needs
timber badly to amortize his investment, or he may afford to pay more if
he has a relatively low cost operation. In any event, he knows in
advance and agrees that he will pay this proportion of the lumber price
for his stumpage. No one knows an operator's costs or what he can
afford to pay for his stumpage as well as himself. If, therefore, he
makes a high bid in relation to the average lumber price, knowing that
this ratio will prevail through the life of the contract, he can be
presumed to know what he is doing and should have no complaint if
stumpage rates increase. The principal fault in some other contracts
has been lack of complete understanding by the operator as to the
stumpage readjustment procedure that would be followed.
9. As has been previously noted in the discussion of Clause 7,
provision is made in this clause that the stumpage rates for incense
cedar, lodgepole pine and other species shall vary in accordance with
the annual trend in the lumber price of larch-Douglas fir. This
arrangement has been made because these species are produced in such
small volume that the Western Pine Association has not seen fit to
compile and publish lumber sales summaries for them.
It is provided further that stumpage rates shall never be reduced
below certain basic minimum values. These values in the case of
Ponderosa pine-sugar pine on the Klamath Indian Reservation should
probably be in the neighborhood of $4.00 per thousand board feet, for
Douglas fir and incense cedar approximately $2.25, and for other species
$1.00. It has been the practice in the past to establish the basic
minimum values at the original bid levels and this has on occasion, as
will be recalled, resulted in considerable difficulty, especially when
the timber was sold during a good lumber market and high bids were made.
In making the survey of the unit prior to sale a determination can be
made by the appraising officer as to what should represent the minimum
value that will be acceptable under serious depression conditions. This
value may or may not be the lowest that has been received in the past on
the particular reservation concerned. Obviously, it should not be at
levels at which the Indians can better afford to discontinue the sale of
their timber, and hold it for a better market several years in the
future.
I have considered in this connection the introduction of an
additional provision excusing the operator from his minimum cutting
requirements when the indicated stumpage rates were below the basis
minimum values stipulated in the contract. I would appreciate having
consideration given to this point since it would appear to be of mutual
benefit to both the Indians and the purchaser.
10. Provision is made in this clause that the purchaser shall be
notified by letter of the new schedule of stumpage rates prior to March
15 proceeding the first day of April when the new rates become
effective. This has been done because it was felt that there would be
no difficulty, as in the past, in completing all arrangements for the
readjustment and notifying the operator by that time. The readjustment
procedures are automatic, only requiring the compilation of the weekly
price summaries and the preparation of the annual price schedule, all of
which can easily be done by February 1st.
It will be noted in the last part of this clause that stumpage rates
are to increase or decrease in accordance with the actual true trend in
lumber prices. This provision has been made to eliminate the effect of
annual variations in certain high or low priced grades which may
seriously affect the mill-run price. It will be appreciated that
comparison of actual wholesale mill-run prices with the basic prices
might not give a true picture of the lumber trend unless allowance was
made for the variation in grade proportions. It is therefore proposed
that the annual mill-run price each year will be determined upon the
basis of the same grade proportions that were used in determining the
mill-run prices stipulated in Clause 7 of the contract.
11. This clause has been modeled after similar clauses in some of
the older Indian Service contracts and is included here to take care of
situations when serious maladjustments occur between lumber markets and
operating costs. Under normal conditions, when the forces of supply and
demand are allowed free play, there is usually a fair spread between
lumber prices and operating cost, the spread being widest in a rising
market and diminishing in a falling one. However, during depression
conditions, such as occurred between 1930 and 1933, lumber costs,
although reduced to rock bottom levels, may be substantially higher than
the market value of the lumber. In cases of this kind, it may be to the
advantage of the Indian stumpage owners to temporarily drop the
relationship fixed by the contract between stumpage rates and lumber
markets so as to enable the operator to continue in business. While we
recognize that the Indians are under no obligation to reduce stumpage
rates in order to assure the purchaser of their timber of a substantial
profit, there have been occasions when it would be very much to their
advantage to reduce stumpage rates temporarily. The clause has been
introduced for this purpose.
12 to 14, inclusive. These are standard provisions of Indian Service
contracts now in effect. No changes have been made since they are
believed to be entirely satisfactory in their present form.
15. Provision is made that the maximum cut in any contract logging
year ended March 31 shall not exceed one-fourth in excess of the minimum
cut. A limitation of this sort is believed desirable to assure that
cutting on the operation does not exceed allowances provided for in the
reservation forest management plan.
16. This is a standard Indian Service contract provision except for
the addition permitting the approving officer to relieve the purchaser
of making further advance payments for deficiencies in cutting when the
advance payments already held on deposit by the superintendent are
obviously more than sufficient to cover the remaining uncut timber on
the unit. If a contract is otherwise in good standing, it does not
appear advisable to require the purchaser to make further advances for
the dificiencies in cutting when advance deposits already on hand are
more than sufficient to cover the remaining uncut timber.
18 to 21, inclusive. These are standard provisions of Indian Service
contracts now in effect. No changes have been made since they are
believed to be entirely satisfactory in their present form.
CARTHON R. PATRIE,
Forester.
July 8, 1943.
HES-003-1660-1667
HES-003-1660-1667
IIA43.2
ARNOLD, L. D. ; DIV FORESTRY INDIA
420430
CORRESPONDENCE
HAUGE, A.G. ; TAHOLAH INDIAN AGE PHILLIPS, FLOYD H. ; TAHOLAH INDIAN
AGE
Forestry and Grazing
Taholah Indian Agency,
Hoquiam, Washington,
April 30, 1942.
In accordance with telephone instructions on April 27, 1942, from C.
R. Patrie, Acting Regional Forester, for estimate and locations of
available spruce, Douglas fir, alder and maple for airplane stock and
army requirements, the following is information as requested for the
reservations within the Taholah jurisdiction. Areas on the Quinaielt
Reservation on which is all of the spruce and Douglas fir as reported
are shown on the accompanying map.
The estimates and grades as follows were compiled by L. C. McKeever,
Senior Forest Ranger.
CHART OMITTED SEE ORIGINAL
Area No. 1. Quests River, Sitka Spruce Area.
Estimate 25000 M ft. 2 to 3 per cent No. 1 logs.
This timber is between the Olympic Highway and the Quests River and
is readily accessible as a logging chance.
Area No. 2. Quinaielt River, Sitka Spruce Area.
Estimate 105 million M ft. 6 to 8 per cent No. 1 logs.
All of the area directly south of these areas across the Quinaielt
River have been logged and the old roads and spurs of these areas can be
used. Additional expense involved in temporary bridges across the
Quinaielt River would be necessary. No additional extra cost of
development would be necessary.
Area No. 3. Consists of the Sitka Spruce and Douglas fir on the
Quinaielt Lake Unit now under contract to the Ozette Railway Company.
Estimate -- Sitka Spruce 20000 ft. 6 to 8 per cent No. 1 logs.
...............Douglas fir
This timber as a part of the Quinaielt Lake Sale area is accessible
as to logging possibility without excessive development and logging
expense.
Area No. 4. Douglas fir area in T. 32 N.R. 11 and 12 W.W.M.
Estimate Douglas fir 21,000 m ft. 6 to 7 per cent No. 1 logs.
This timber is in mixture with other species within a virgin stand
and would involve considerable extra expense in development. A road
would have to be constructed from the Olympic Highway or from the logged
areas south of the Quinaielt River.
Area No. 5. Hall Creek Timber Sale Contract Area.
Estimate -- Sitka Spruce 1500 m ft. 6 to 8 per cent No. 1 logs.
.............. Douglas fir 3000 m ft. 3 to 5 per cent No. 1 logs.
This timber as a part of the Hall logging Unit is considered as
accessible.
There is no Sitka spruce or Douglas fir timber excepting limited
amounts of low grade timber on any of the other reservations within the
Taholah jurisdiction. CORRECTION SHEET DUPLICATE DOCUMENT-SAME AS 1669
All of the Alder and Maple as reported on all the reservations is of
the river bottom type. On the Quinaielt Reservation the estimate
includes those areas considerd as being accessible from roads or
formerly logged over lands. On the other reservations, because of the
limited area of each one, all alder or maple is accessible to roadways.
The alder and maple on all the reservations is of such quality that it
will produce eight to sixteen feet logs and practically no clear logs.
A. G. Hauge,
Forest Supervisor.
Approved
April 30, 1942.
Floyd H. Phillips,
Superintendent.
HES-003-1668-1672
HES-003-1668-1672
IIA42.1
410203
CORRESPONDENCE
HAUGE, A. P. ; TAHOLAH INDIAN AGE MCKEEVER, L. C. ; TAHOLAH INDIAN AGE
PHILLIPS, FLOYD H. ; TAHOLAH INDIAN AGE
Forest and Grazing
On the night of December 21, 1940, there occurred a windstorm that
was general along the Pacific Coast region of the Northwest which
resulted in considerable windthrow on the Quinaielt Indian Reservation.
The windthrow was confined principally to some of the more exposed
portions of the selective cutting areas or the timber along the edges of
the cutting and including some damage within the 200 feet reserve strip
along the Olympic Highway. While this storm was a general high wind
having a reproted velocity of 75 miles per hour, there were accompanying
squalls which caused windfall in small separate areas and in some cases
twisted off or broke off the boles of trees 20 to 30 or 40 feet from the
ground. Some of these areas were noted within the 200 foot strip along
the Olympic Highway.
The following is a resume of the areas in which most of the windthrow
occurred and situation as to possibilities of salvage operations:
This unit is under contract to the Aloha Lumber Company who is
operating on it at the present time. On investigation of the Hall Unit,
the windthrow damage was confined principally to the residual stand
which consists chiefly of hemlock timber left after clean cutting of the
other species. This hemlock timber was not cut by the company because
of low market price of the logs and as it was included in the contract,
was included and paid for on the pick-up scales. Within the past two to
three months the hemlock market has improved to the extent that the
company is now taking all merchantable hemlock and they are in a
position to salvage some of the down timber that is accessible to their
logging.
In reference to the Quinaielt Lake Unit, of the windthrow along the
railroad right of ways and areas exposed by cutting of adjacent timber
in their present logging operations, the company has been instructed to
salvage this timber. Crews have been put in and the down timber will be
logged prior to any deterioration. In the selectively logging areas,
the damage was not as serious as had been expected. In allotment No.
813, Patrick Martin, on the Polson main line railroad, there is a blow
down in the selectively logged area. This blowdown extends into uncut
timber on the allotment and the logged timber will be logged along with
the standing timber. It is noted that in other areas of the selective
logging including some that are considered as in exposed position, the
damage was limited. In reference, however, to the Lavina Millett,
allotment No. 507, 40 acres, on Company Spur designated as the B line,
there was heavy windthrow and to date the company has taken no steps to
salvage this timber. The Indian owners of the Lavina Millett allotment
have not signed the contract modifica- tion agreement providing for
reduction in stumpage price and on prev- ious cutting in the vicinity
the company have not cut it. Because of cutting of surrounding adjacent
timber the blow down in this area was particularly heavy and amounted to
an estimate 30 per cent or 500 M feet. The windthrow on this allotment
consisted principally of Douglas fir with some hemlock.
In further reference to the Quinaielt Reservation, there are certain
areas outside of the sale units on which there percentage of windthrow
and on which salvage operation should be accomplished. These areas are
as follows:
DAISY WILLIAMS, Allotment No. 1433, Lot 11 and 12, Sec. 3, T. 23 N.,
R. 12W.W.H.80 ac.
In 1938 a sale of cedar was made in this allotment on a 10 acre tract
along the east boundary. This allotment is along the Olympic Highway
and in cutting on the sale of 1938, there was reserved a strip 200 feet
wide adjacent to the Highway. The timber on this 200 feet strip was
particularly exposed because of the highway right of way and the fact
that the reserved area is on higher ground than the adjacent cut-over
area. In this reserved strip the blow down was an estimated 25 to 30
per cent amounting to 50 to 60 feet, B. N., principally cedar. As there
is a good market for cedar at the present time and because of the
location next to the highway, a salvage sale could be made. In
addition, there was a small amount of hemlock windthrow that might be
salvaged at the same time.
HARLOW ALLOTMENTS:
HENRY HARLOW, Allotment No. 111, Lots 12, 14-16, Sec. 29, T 24 N, R.
12W. and Lot 1, Sec. 32, T.24 N, R 12 W, W.N. 85.95 ac.
FRANK HARLOW, Allotment No. 114, Lot 17, Sec. 29, T. 24 N, R. 12 W.
and Sec. 32, T. 24 N, R. 12 W. W.M. 79.65 ac.
These allotments are located on the Queets River approximately one
half mile north of the junction of the Clearwater and Queets River.
On these allotments the stand of timber was practically 100 per cent
Sitka spruce estimated at approximately 3,000,000 feet B. M. On the two
allotments, during 1936 and 1937, several small sales including all the
area of merchantable timber, was made on a selective cutting basis and
approximately 60 per cent of the volume was removed. Of the residual
stand, estimated at 1,000,000 feet B. M., 50 to 60 per cent or 500 to
600 M feet has been windthrown or damaged.
In reference to the cutting that has been done on the Harlow
allotments, selective cutting was done in order to sell the mature and
over mature timber that was merchantable and that could be sold under
the prevailing market prices. The trees cut produced a preponderance of
No. 1 and 2 logs. In the over mature and mature trees, there was some
poor quality and many diseased trees that were left and the stand now
consists of these trees with a stand of second growth timber. However,
in considering quality of this residual stand, it will produce No. 3
logs, with not over 5% No. 2 logs.
Due to the extent of windthrow damage on the Harlow allotments,
salvage sale should be made. Due to the distance from market, a 65 mile
truck haul to Hoquiam, on the current market price of No. 3 logs, there
appears to be a very narrow margin of profit over the cost of logging
and hauling. Recommendation, however, is made for sale of this timber
at prices that can be obtained in consideration of the market.
In regard to sale of allotment timber, at the present time pending
final decision of the Eastman case, under instructions from the
Commissioner of Indian Affairs, Office letter of March 8, 1940,
instructions were issued prohibiting the entering into of new contracts
for allotment timber on the Quinaielt Indian Reservation.
In regard to the windthrow on the Daisy Williams allotment and the
two Harlow allotments, recommendation for sale should be made and in
view of the decision in the Harvey Eastman case, request should be made
for authority and instructions as to procedure to be followed.
Respectfully submitted,
A. G. Hauge
Forest Supervisor
L. C. McKeever
Senior Forest Ranger.
Approved:
Floyd H. Phillips
Superintendent
February 1941
AGH:hcp
HES-003-1673-1675
HES-003-1673-1675
IIA41.1
400229
CORRESPONDENCE
JOHNSON, STANLEY J.
Forestry and Grazing
339.5
The Commissioner of Indian Affairs,
Washington, D.C.
thru Mr. Raymond Bitney, Superintendent,
Taholah Indian Agency,
Hoquiam, Washington
And
Mr. Frank Lenzie, Regional Forester,
424 Federal Building,
Spokane, Washington.
Pursuant to instructions as contained in Office telegram of January
31 to Supt. M. A. Johnson, of the Yakima Indian Agency:
"Relet 18 from Regional Forester Lenzie Taholah. You are
authorized detail Stanely Johnson to Taholah for month of February
with traveling expense and reasonable per diem expenses to be paid
by Taholah Agency"
I reported February 2 to Supt. Bitney and went over with him in a
general way the work that I should do while on my detail here.
The below report contains information as to the check that I have
made of the timber records and refers to journal voucher entries for
timber scaled and adjustments made to bring about a balance as of
December 31, 1939.
HALL TIMBER UNIT -- Aloha Lumber Company, Contractor: TABLE OMITTED
SEE ORIGINAL
The above indicates controlling accounts in balance on date
indicated. * Checks with amount in Special Deposits to Contractor 's
credit.
As of December 31, 1939, check made of individual scaling unit
sheets, both Timber Money and Scale % Record Sheets -- in agreement with
controlling account.
UPPER WRECK CREEK UNIT -- Aloha Lumber Company, Contractor
January 1, 1935, check of Controlling Account TABLE OMITTED SEE
ORIGINAL
Above check indicates controlling account in balance on date
indicated.
*Checks with amount in S. Deposits to Contractor's credit.
Check made, as of December 31, 1939, of individual scaling unit
sheets, both the Timber Money and Scale Record Sheets -- summary made
indicates that they are in agreement with Controlling Account.
MOUNTS UNIT -- Aloha Lumber Company, Contractor
January 1, 1935, check of Controlling Account TABLE OMITTED SEE
ORIGINAL
* Interest on delinquent Advance Payments included in Timber Money
Record "Disposition:Dep.Cr.Ind." column -- not Advance Payment or
Advance Deposit collection. MOUNTS UNIT December 31, 1939, check of
Controlling Account TABLE OMITTED SEE ORIGINAL
* Agrees with amount in Special Deposits to Contractor's credit.
Summary, as of Dec. 31, 1939, made of individual scaling unit sheets,
both Timber Money and Scale Record -- in agreement with Controlling
Account, after latter Spruce footage increased by 750feet and Cedar
decreased by the same number of feet, Scale Report #2, Allot, 762,
07/10/30 having been recorded in the Controlling Account, Page 9, as
Cedar instead of Spruce -- corrected volumes to be brought forward on
next monthly "Report of Timber Cut".
QUINAIELT LAKE UNIT - Ozette Railway Company, Contractor TABLE
OMITTED SEE ORIGINAL
QUINAIELT LAKE December 31, 1939, check of Controlling Account TABLE
OMITTED SEE ORIGINAL QUINAIELT LAKE UNIT (Continued) - Summary as of
Dec. 31, 1939, made of individual scaling unit sheets, Timber Money and
Scale Record, but addition of figures not yet completed - controlling
account now being in balance, addition should check, if all entries
recorded correctly. WA_ACH UNIT -- Washington Pulp & Paper Company,
Contractor:- TABLE OMITTED SEE ORIGINAL
Regarding JV 158 2/28/1940, covering removal from Disposition: Dep.
Cr. Ind" column, Timber Money Record sheet of $2.524.10 Mounts Unit
(Page 4) and JV 157 02/28/40 as to interest items totaling $5,838.35,
Quinaielt Lake Unit (Pages) the following explanatory information is
quoted, embodied as the heading for the two journal vouchers referred
to:
"To record deductions from "Disposition of money" Dep.Cr. Ind.)
column of controlling account and individual allotment Timber
Money Record sheets as to interest received on delinquent Advance
Payments, Quinaielt Lake Timber Unit, Aloha Lumber Company,
Contractor.
Mounts Timber Unit, Aloha Lumber Company, Contractor. The
Controlling Account and affected Scaling Unit Sheets are not in
balance as these interest payments have not been and cannot be
correctly included in the "Collected from Contractor" (Adv.
Payments Adv. Deposits columns of the Timber Money Record Sheets,
which serve the purpose for which they are intended, namely:
Advance Payments collections present money agreed and required to
be paid in on certain dates, to insure funds being available from
time to time for use of the owners of an allotment, usually so
that a certain portion of the stumpage value of the timber will be
made available if cutting is deferred on that particular area for
some time, deductions from these advance payments being made when
the timber is cut. Advance Deposits record balances to the
Contractor's credit deductions from which are made from Scale
Reports, after the Advance Payments have been used up as to
allotments, and at all times as to timber cut from Tribal land (no
Advance Payments required as to the latter) the balance thereof
representing funds on hand to cover timber down but not yet scaled
so as to guard against the cutting of timber without availabe
funds being on hand to cover its stumpage value, and for future
cutting operations. "Funds collected as "Interest" cannot be
included in the timber records as "Advance Payments" or "Advance
Deposits", not being available to cover the stumpage value of any
timber scaled or to be cut in the future, and therefore, should
not be included in the "Disposition of Money" (Dep. Cr. Ind.)
column.
If desired, as a matter of information, a notation as to the amount
of such interest collected can be recorded in the "Remarks" column of
the Controlling Account and affected individual allotment scaling unit
sheets without involving the prescribed figures required to be shown in
the various columns of the Timber Money Record sheet".
The reason for the removal of the referred to "Interest" items is
believed to be fully explained above, and it would seem that no further
comment is necessary.
Office "General Instructions for the Preparation of Timber Records",
effective July 1, 1924, provides that:
"Column #7 headed "Disposition of Money" x x x records the
disposition of money as the result of any one transaction.
"Distributions should not be made on each scale report, but once
every month, right after the first of the month. Under this system
deductions are made from the contractor's balance as reports come in,
reducing such balance as operations progress. At the end of the month
the amount to be distributed is very easily determined by comparing the
total value of the timber out with the amount of money previously
distributed. One Journal Voucher transfers all money received on
allotted lands from "Special Deposits" to the credit of several
individual Indians and "Expense Account, Timber", and another Journal
Voucher transfers all moneys received on several sections of tribal land
to "Sundry Receipts" and "Expense Account, Timber", or one Journal
Voucher may transfer money from "Special Deposits" to Expense Account,
Timber "Sundry Receipts" and credit of individual Indians. After each
distribution, the money accounts in Forms 5-949 and 5-951 are balanced."
Apparently, during the past several years the above general
instructions have been entirely disregarded here for, instead of
clearing out by Journal Voucher from Special Deposits at the first of
each month for timber scaled during the previous month, transfers have
been made at irregular times, sometimes, although timber has been scaled
during the same period on other allotments as well, from one allotment
only -- then again for a number of allotments, at times covering the
scale for a period of four to six months or more, and omitting for
transfer at some future time the scale as to timber on certain other
allotments which apparently did not seem urgent, with the result that it
is impossible, without considerable figuring, to ascertain just what has
been done. Naturally, it would not be possible for any one to ascertain
readily certain desired information that ordinarily should be available
by just referring to the timber records. It isn't at all surprising
that some rather serious mistakes have occurred.
To fully remedy the situation it will be necessary to go over the
records for all other timber units as has been done in the case of the
Hall Sale, Upper Wreck Creek, Mounts and Quinaielt Lake Units, make JV
transfers from Special Deposits for all timber scaled to date, adjust
discrepancies that have been made and follow thru by carrying out Office
"General Instructions for the Preparation of Timber Records" effective
July 1, 1924, which are on file here.
One matter should be commented on at this time, has reference to a
problem encountered in the carrying out of the instructions, as referred
to on Page 6, that distributions to Column #7 "Disposition of Money"
should not be made for each scale report but the first of the following
month (for the previous month's scale) -- that the money accounts in
Forms 5-949 and 5-951 are then balanced and resulting in the Advance
Deposit Balance and the funds to the Contractor's credit in Special
Deposits being the same.
As an illustration of this problem, take a situation where scale
report deductions have been made during the previous month from the
Advance Deposit balance as shown by the timber records and it is the
first part of a month and we are ready to make the JV transfer from
Special Deposits for this scale and included with the others there has
been recorded $5.00 as the value of timber scaled on Allotment #523,
John Adams. Taking out the 8% E.A.T. timber deduction of 40 cent leaves
$4.60 for transfer to IIM. It happens that John Adams is deceased, his
heirs determined and there are twenty heirs. If the complete detailed
distribution is made by the Forestry division then this $4.60 is shown
on the JV distributed to the twenty heirs. When the JV reaches the IIM
division for posting, a notation on the records there indicates
uncollected heirship fees or some other authorized bills against the
decodent's estate, that first have to be paid before funds can be
distributed to the heirs. The $4.60 would have to be credited to the
estate. If the JV comes to the IIM division showing that it represented
$4.60 not for timber scaled from the allotment of John Adams it is true
that some additional work would result there, to make the distribution,
but no unnecessary work would be involved, for if there were no
uncollected heirship fees or other bills against the estate the money
would go to the heirs, and if there were other bills outstanding it
would be credited to the estate. It might be that there are no bills
against the estate but the IIM clerk or head of the office may know of
some other revenue soon to be received from some other source and, in
view of the large number of heirs, would consider it advisable to place
this $4.60 item to the credit of the estate temporarily, do the same
with the other referred to income item when received, the total to be
transferred at that time or later by JV to the heirs. Each division at
the Agency would not then have to be furnished with schedules of
heirship decisions or go to the heirship cards or take them into a
different room from the designated place where they should be kept. For
the reasons stated, it is my belief that the IIM division at an Agency,
either the responsible IIM clerk or an assistant, depending on the
amount of work involved, should have the particular responsibility of
making the detailed distribution of funds derived from timber or other
sources, after the various departments in which the transactions
originated had designated the particular allotments on which they apply.
This to a certain extent, I realize, may be considered as a local
administrative problem, but if a uniform practice in this respect, at
various agencies, is followed it would seem that some misunderstandings
and oftentimes unnecessary work can be avoided and is to be preferred to
a variety of different methods.
Although in a way the above is a digression from the way in which
timber records have been kept at this agency, yet it has some bearing on
the subject matter and for that reason has been referred to at this
time. It is undoubtedly partly due to the desire to avoid every month
detailed distributions of timber funds to heirs and the consequent more
numerous disbursements to heirs of small amounts derived wherefrom,
involving considerable added work, that has resulted seemingly in
entirely disregarding the General Instructions referred to.
Reverting back to the check of timber records that has been made. In
the examination of records as to the Mounts Unit it was necessary to
devote almost an entire week in checking over the accounts before a
balance could be arrived at as of Dec. 31, 1939.
All of ten days was devoted to going over records covering the
Quinaielt Lake Unit and making journal voucher transfers from Special
Deposits, with the assistance of the local force, before the controlling
account was balanced as of December 31, 1939. On this Unit, as to
timber scaled from allotment No. 753, Jake Freeman, the sum of $1577.49
was transferred December 13, 1937, by JV 124 but thru inadvertence was
not posted to the Timber Money Record sheet for that scaling unit. A
duplicate transfer, for the same timber scale, was made November 24,
1939, JV 101. Fortunately an adjustment was possible for the heir,
Sarah M. Freeman, had ample funds to her credit so that the 92% which
had been credited to her account by the last referred to JV, together
with the 8% E.A.T. deduction in Mscls. Receipts (Sundry Receipts) was
transferred back to the Contractor's Special Deposit account, JV 159
dated 3/1/1940.
A check as to the Wa-Ach Timber Unit records (Page 6) was not
completed. A start was made but work discontinued for the reason that
scale reports and other essential records were not available, being at
Neah Bay and time did not permit going there, so efforts were
concentrated on checking over records for the other units reported on
above. The check made of the controlling account, Wa-Ach Unit, as of
January 1, 1935 (Page 6) indicates a discrepancy at that time of
$2,360.37. A thorough check was not possible and the reason for this
discrepancy ascertained, although it was noted that no timber had been
scaled during the month of December 1934, that in December of that year,
by JV, transfer was made to cover the November scale, and so if that
procedure had been consistently followed the check made of the
controlling account should have resulted in a balance being arrived at.
Regarding Wa-Ach Unit controlling account as of Dec. 31, 1939, transfer
had been made for timber scaled just prior to Sept. 1, 1939. It was
taken into consideration that transfer had not been made for timber
scaled from September 1 to December 31, 1939, inclusive. Taking that as
the total not yet cleared from Special Deposits by journal voucher
resulted in the difference of $4,817.36. The reason for the difference
will have to be ascertained before any adjustment can be made.
My assignments here was for the month of February, and it is
necessary that I report back to the Indian Agency at this time for duty
there. It is my understanding that during March, with one of the other
Forestry employees, I am scheduled to make a cruise of the timber on a
number of Columbia River allotments near White Salmon. It it is desired
that I do so, it may be advisable that I continue, after that time, and
complete auditing the timber records here, or, if it is considered that
the differences can be ascertained and corrected by the local force, I
could, if it is considered necessary and authorization obtained, be
detailed back here the first part of June, for a week or ten days, to go
over the records and render such assistance as might be needed at that
time, which would be just prior to the close of the current fiscal year.
Respectfully yours,
Stanley J. Johnson,
Sr. Forest Ranger.
Copy to Mr. Bitney, Superintendent,
Copy to Mr. Lenzie, R. F., Spokane, Wn.
HES-003-1676-1686
HES-003-1676-1686
IIA40.1
COMM OF INDIAN AFF BITNEY, RAYMOND ; TAHOLAH INDIAN AGE LENZIE, FRANK
Sir:
390519
CORRESPONDENCE
LYNCH, H.M. ; TAHOLAH INDIAN AGE
CC-ID
Memorandum for N. O. Nicholson Supt.
In accordance with instructions contained in your memorandum of May
10th, I have in company with W. T. Wilson made an inspection of the
following operations on the Quinaielt Reservation. Operations are
listed in the order of their inspection, with fire equipment as found,
followed by recommendations as to the equipment and precautions needed
that would insure proper fire prevention and protection in accordance
with the requirements of the Indian Service and the Forest Protection
Laws of the state of Washington.
May 17. Pape & Wilson shingle mill.
From a point of fire hazard it would be almost impossible to find any
worse condition then exists here. The inspection disclosed the
following facts:
1. Boiler of the Donkey type is being used with sawdust and other
cedar refuse for fuel, there is only about four feet of stack above the
smoke box which has little if any clearance above the mill roof-which is
open and the stack does not have a spark arrester or screen of any type.
2. Boiler is fired by means of a Dutch oven or Dog house and the
sawdust is taken from the conveyor by means of an open galvanized iron
chute which discharges directly on the fire through an open hole
directly in the top of the oven. There is no means of keeping the fire
from burning back to the chute and the excess sawdust which spills from
the chute to the Deck, in fact during a period of about 15 minutes while
we were standing there the sawdust on the deck caught fire twice, and
had to be scraped up with a shingle by the fireman and thrown back in
the chute, all was needed was a little wind to scatter thr fire
throughout the entire mill.
3. The chain or conveyor taking care of the refuse operated directly
over the ash pan end of the fire box, there is every poor deck under
this chain and the sawdust seeps through to the pit around the fire
door. There is no door here but simply a piece of tin hung over the
opening with some wire, making it possible for fire to either fall out
or be carried out by wind. It is noted that they make an effort to keep
this wet down here and no doubt have had fires here before.
4. An open fire directly between the mill and the pond burns
continuously to take care of the refuse. This fire is not over 20' from
the mill and a large sawdust pile, and there is plenty of refuse between
the mill and the fire, which is not confined in any way.
A 3 1/2 X 2 1/4 X 4 steam pump is located at the pond. This is used
to pump water to a supply tank at an elevation slightly higher than the
supply barrels at the boiler, which are fed by gravity from this tank.
There is no fire hose for this pump and no means of connecting any
without breaking the supply or discharge line between this pump and the
supply tank. A small Ross pumper is set up at the pond and 200' of hose
is available. However 150' is now hooked up to the pumper and appears
to be in use daily for wetting down around the fire box; it is thrown
in a pile near the ash pan, and in being strung from the pump to this
point is about 5' from the open fire. Numerous shacks are located all
the way from 75 feet to more and very little effort is made to clean up
either around the buildings or the mill.
Recommendations
1. That a longer stack and a spark arrestor be installed on the
boiler.
2. That a fire proof cover closed on top be installed where the
boiler is being fired and that the fuel be introduced through a closed
chute for some distance behind this point, with a swinging door in this
chute to elimate the possibility of fire burning up the chute.
3. That a cast iron door with a draft that can be closed be
installed at the ash pan and that this pit around the ash pan be lined
and floored with fire proof material.
4. That a tight deck be constructed under the refuse conveyor and
eliminate sawdust from seeping down to the pit around the ash pan.
5. That a connection be installed in the discharge line between the
steam pump and the supply tank that will allow connecting hose not less
than 1' to this line and that at least 300' -- preferably 500' -- of
hose be installed here on a suitable reel, and be available for fire
only at any time.
6. That at least 4 barrels of water be placed at different points in
and around the mill, with not less that 6-12 qt pails to be there at all
times for fire only. That the gravity tank be kept full of water at all
times and arrangements made to use this supply for keeping the barrels
full in case of fire either through a pipe line or hose.
7. That a metal lined refuse burned be provided for the open fire
and give some protection to the mill and sawdust pile from this open
fire.
8. That they be required to keep a watchman at the mill during the
noon hour and at all other times that there is fire in the boiler and
the open fire is burning.
9. That they provide not less than 500' of hose for the pumper, and
that several barrels of water be placed near the houses for fire
protection.
10. Due to the fact that cedar is burned for fuel in all of the
houses and no screens are provided on the pipes extreme care be taken in
building dires during the heat of the day in hot weather.
11. That due to the extremely hazardous location of this mill and
the size of the clearing, they be given a reasonable time to comply with
the state law as regards the requirements for fire protection, or close
the operation, and that after complying with the law or securing the
necessary equipment, they be required to cease operations at all ti es
that the humidity drops below 30%.
May 18, Nestos Pole Co.
Not operating while we were there. Outfit consists of a Gasoline
Donkey with a Buick Auto Engine. No chemical Fire extinguisher and no
fire tools in evidence. Gasoline fed to the motor through a pipe line
directly from a 50 gal bbl, by gravity. No exaust pipe on motor, exaust
discharges directly from the end of the manifold towards the ground and
very close to the bbl of gasoline and the feed line.
Recommendations
1. That a chemical fire extinguisher and the tools required under
state law be placed on this Donkey immediately, and that an exaust pipe
is to be installed on the motor that will discharge upward and that it
be long enough to extend above the motor and fuel supply.
2. (have also asked them to replace a sign post which was torn down
in moving the donkey to the present setting.
Gordon Simmons
Ralph Howard ....... Have cutting contract for Nestos Pole Co.
Sam Blevin
These men are living in a cabin on Spur 203. Water is hauled in cans
and not more than 10 gallons is available at any time.
Recommendations
That at least one barrel of water is kept at this cabin to be used
for fire only, and that more clearance be given between the roof and the
roof jack on the pipe from the cook stove.
Aloha Lumber Co.
Diesel Lidgerwood Skidder, equipped with 2-2 1/2 gal soda acid fire
extinguishers, and three five gallon pump cans, no fire tools in
evidence.
Loading Engine. No fire extinguisher, no fire tools in evidence 2
five gallon pump cans near the loader. Exaust pipe only about 2'' long
and discharging inside the roof of the cabin.
Oil House
Equipped with 2-2 1/2 gal soda acid extinguishers, 1 Ross Pumper, 1
Indian back Pack pump, and 1550' 1 1/2'' linen fire hose.
Crane at Landing Oil burning steam
Has a spark arrester but it was not being used today.
Gas Electric Shovel at Moclips River
Not equipped with an extinguisher.
No fire tools.
Trucks contract hauling for Aloha Lumber Co.
P. A. Reincke 2 Internationls, both equipped with pyrene fire
extinguishers, no ash trays.
G. E. Weber Mack Truck, no fire extinguisher, no ash trays.
Perry Smith No fire extinguisher, no ash tray.
Locomotive was not inspected as it had just pulled out with a load
when we arrived at the landing.
Mr. Millward of the Aloha Lumber Co. was contacted at the landing
where trucks are loading. He was bringing out additional fire pumps and
hose and was placing barrels of water along the plank roads. He was
advised of the equipment short, and agreed to place additional hose at
the main landing where logs are being loaded on the train, and in
general to equip all units with the required tools etc.
The no-smoking provision seems to be generally enforced, and truck
drivers have been instructed that there will be no smoking while
traveling. It is believed that this Co. will have complied with every
precaution before the end of this week. However it is believed that all
of the trucks hauling should also carry a shovel and an axe, and a 2
gallon water bag.
Iskra Brothers Construction crew for Polson Logging Co. have a camp
just between the Polson RR and the Aloha RR, have cleared away with a
Bulldozer and camp appears to be reasonably safe, a cook is here during
the day, and this camp will be moved shortly.
D. A. Weidman is getting out shingle bolts no far from the Moclips
gate for Walter Hunley. Operates a Model T. Donkey and Model T. Truck
no fire extinguishers, and no water available. Has fire tools. He was
instructed to secure fire extinguishers, and to place not less than two
barrels of water where he is operating, with buckets for fire
protection.
Walter Hunley, has four cabins and a barn at the junction of spurs
26, and 27, no one was here. This is a rather hazardous location and
while water is available now it will dry up shortly. The cook house
needs a new roof jack, and three or four barrels of water should be
placed at this Camp with buckets for fire protection as well as shovels,
and axes. Do not know his address but will make it a point to check
again on him when he is operating and see that he takes the necessary
precautions.
Up to this time the Aloha Lumber Co. have not provided a Watchman for
their truck road, but Mr. Millward advised me that he was going to make
the necessary arrangements at an early date.
H. M. Lynch
Sr. Project Mgr. CCC-ID
HES-003-1687-1691
HES-003-1687-1691
IIA39.3
NICHOLSON, N. O.
391130
CORRESPONDENCE
; TAHOLAH INDIAN AGE
MEMORANDUM Re Case of Eastman et al. v. United States, et al. now
pending in the United States District Court in the State of Washington.
Conference between Regional Forester, Frank H. Lenzie; Forest
Supervisor, James Howarth; Docking Engineer, Patrick Gray; Senior
Forester, MacKeever, and Superintendent Raymond H. Bitney
Apparently, there are two questions involved in this case. The first
attacks the authority of the Secretary of the Interior to promulgate or
approve the promulgation of forestry regulations governing the
protection of Indian interests in the harvesting and handling of Indian
timber.
The second point attacks the reasonableness and fairness of the
regulations promulgated by the Department and approved by the Secretary
in applying the selective method of cutting on a sustained yield basis,
which provides for the removal of only a portion of existing timber
values. This point is given particular stress in its application to the
200' strip that is required to be left along highways, streams, etc.,
under amended Sec. 22 of the General Forest Regulations as approved May
18, 1936, and amended Nov. 17, 1936.
In addition to the two definite points which are raised, the
complaint questions the authority of the Secretary to regulate timber
cutting on Indian allotments. Basing the contention on the premise that
the right to control cutting operations on tribal lands does not extend
to timber on individual allotments.
It is also pointed out that the timber sale regulations in effect at
the time the original timber sale contracts on the Quinaielt Reservation
were approved definitely provided that logging would be conducted under
the clear-cut method; i.e., the removal of all merchantable timber up
to a specified diameter limit of 14" d.b.h. which procedure contemplated
the removal of all commercial values existing under economic conditions
obtaining at that time.
Selective logging as objected to in the complaint consists of
removing a part of the merchantable stand of timber and leaving enough
merchantable trees and young growth standing and undamaged by logging
operations to maintain proper forest conditions and form the nucleus of
a later cutting.
Selective logging falls into three classifications: Area selection,
where certain areas are clear cut (usually single settings), and
surrounding areas are left uncut for the time being; group selection,
where small patches (from two to ten acres) are cut clean, tree
selection, or taking individual trees from the stand. (See Sec. 10,
Forest Practice Hand Book, by Pacific Northwest Loggers' Association).
The three methods described above take into consideration all
physical factors within the area to be logged, such as topography, site
and exposure, precipitation, density of stand, economic values involved,
etc. It can readily be seen that the term "selective logging" is in
itself a flexible designation, in that it provides for the application
of the principles of scientific forestry, looking to sustained yield
timber management in all timber types.
A partial analysis of the history of logging in the Pacific Northwest
indicates that the sustained yield objective has been contingent to a
large degree on the changes which have taken place in the logging
industry. Extensive improvements and refinements in logging machinery,
road building equipment, etc., together with the rapid development of
excellent highways has played an important part in bringing about the
logging practices now being followed generally throughout the west coast
timber belt.
The early-day method of logging, which followed closely on the heels
of the settlement of the country, was termed "hand logging", and
consisted of taking only the most accessible timber immediately adjacent
to the various water courses, into which the logs were rolled by hand or
animal power, for transportation by water to the mill. There being no
shortage of timber and little or no restriction as to its use, only the
best trees were selected and the finest logs from these trees removed.
In reality, this was a form of economic selective logging, it being a
selection based on the economic conditions of that time. As the country
became more heavily settled and timber less accessible to water
transportation the construction of logging railroads became necessary.
This type of logging utalized steam power equipment and the heavy
investment which was incurred in railroad construction, etc.
necessitated the removal of all timber that had any economic value
whatsoever to the operator.
As a result, the areas logged under this practice of logging
presented a highly devastated appearance and was subject to severe
fires, which destroyed everything the logger may have left behind. The
rapid development that has been made in truck, tractor, and heavy
logging equipment within the past decade has revolutionized logging
methods and made it possible to remove the timber from logging areas in
such a manner that a satisfactory forest cover can be left on the
ground.
Timber operators who still have heavy investments in railroads,
donkeys and heavy logging machinery that have not yet been retired and
which must be liquidated before it is economically possible for them to
change over to new equipment and more modern practices are making this
change as rapidly as possible. This change is being encouraged by all
timber productive agencies and the loggers are cooperating to the
fullest degree possible under the circumstances under which they must
operate to remain in business.
Sample study plots were established on areas which had been
selectively logged on the reservation several years ago. Sites were
chosen which were representative of the different timber types within
the cutting area. On these plots a careful study has been conducted,
the original stand and that remaining after cutting being carefully
measured and recorded. At specified times these areas were examined and
the results are shown on the attached schedule.
It would be well to consider the fact that the Quinaielt timbered
area is suited primarily for the production of timber crops and that
there are only very small isolated tracts which can be considered as
possible of development for agricultural purposes. For this reason, it
is imperative that every provision possible be taken to the end that the
Quinaielt Forest will be perpetuated.
On November 27 and 28 Messrs. Lenzie and Patrie, of the Spokane
Regional Office, visited Portland to discuss the sustained yield logging
practices with members of the Northwest Forest Experiment Station, the
Regional Office of the Forest Management of the National Forest Service
and others interested in the problem. The following individuals were
interviewed in greater or less degree: Mr. T.T. Munger, of the Forest
Experiment Station, Messrs. Andrews, Aimes, and Wright, of the Forest
Management Office of the National Forest Service, Mr. E.T. Stern, of the
Crown Willamette Paper Company, and Mr. Bruce Hoffman. In addition the
office of Mr. Axel Brandstrom, of the Forest Experiment Station, was
visited and an informal discussion of the subject was held with a member
of Mr. Brandstrom's staff. Mr. Brandstrom was at the time out of the
city and could not be interviewed personally. It is now planned to
interview Mr. Tom Murray, of the West York Logging Company, and members
of the West Coast Lumber Association staff during the early part of the
week beginning Monday, December 4 and, if possible, arrange a field
examination of the Quinaielt timbered areas with Mr. Murray and one or
more individuals from the West Coast Lumberman's Association who are
well qualified to pass upon the practicability of following selective
cutting methods on the Quinaielt Indian Reservation.
When this has been completed, a detailed memorandum, discussing the
facts secured or the opinions expressed will be prepared.
HES-003-1692-1969
HES-003-1692-1698
IIA39.2
LENZIE, FRANK B. HOWARTH, JAMES GRAY, PATRICK
391207
CORRESPONDENCE
BITNEY, RAYMOND H. ; TAHOLAH INDIAN AGE
Mr. Frank B. Lenzie,
Regional Forester,
424 Federal Building,
Spokane, Washington.
Dear Mr. Lenzie;
Herewith are copies of the sample plot data as worked up when you and
Mr. Gray were here recently, and which are a part of the "MEMORANDUM Re
case of Eastman et al. v.".
Will you want more than the three copies enclosed? If so we can
furnish more.
jahjr.
TABLE OMITTED SEE ORIGINAL
HES-003-1697-1698
HES-003-1692-1698
LENZIE, FRANK B.
390301
CORRESPONDENCE
HOWARTH, JAMES A. ; OFC OF INDIAN AFF NICHOLSON, N. O. ; OFC OF INDIAN
AFF
Forestry.
Taholah Indian Agency,
Hoquiam, Washington
March 1, 1939.
Mr. Frank B. Lenzie,
Regional Forester, U.S.I.S.
Spokane, Washington.
Dear Sir:
Herewith are submitted in duplicate the results of strip cruises made
last summer on six allotments logged selectively with tractors in 1936
and 1937. In explanation of the data note that (144) 502,750 (93P)
means as follows; -- 144 trees (18 inches DBH and larger) scaling
502,750' and also 93 poles, the poles being trees 10 to 16 inches DBH.
Also enclosed in duplicate are the volume tables used which are the
H.B. Steer volume tables converted from 20 ft. lengths to 32 ft. log
lengths, by interpolation. Note that I had to extend these tables much
beyond the H. B. Steer figures and in doing so, used the ratio found to
hold between the volumes for a few diameters immediately above.
The four square 2 1/2 acre plots, where we put lead tags on the
trees, are not worked up for volumes.
Forwarded
N. O. Nicholson, Supt.
encl
JAH Jr/WNH. TABLE OMITTED SEE ORIGINAL (HAND WRITTEN)
#1345 Wilfred Salakike NW1/4NW1/4 Sec 16-23-11 Selectively logged
with tractor by Ernest McBride and Leighton Salakike (Indians) in 1937.
Cruise 7-18-38 4 acre 4 ch N.S.X10 ch E.W. in NE corner TABLE OMITTED
SEE ORIGINAL
#496 Harry Cultee Lot 4 Sec 22-23-10 Quinaielt Lake Timber Unit.
Selectively logged with tractors 1936-37. Ozette Railway Company.
Cruise of 7/15/38 of 4 acre strip on south line lot 4. TABLE OMITTED
SEE ORIGINAL
#180 Scott Clark SE1/4NE1/4 Sec 27-23-10 Quinaielt Lake Timber Unit.
Selectively logged with tractors 1936-37 by Ozette Railway Company.
Cruise of 8-17-38 of 4 acre strip on south line. TABLE OMITTED SEE
ORIGINAL
#177 Annie Clark Lot 9 Sec 26-23-10 Quinaielt Lake Timber Unit.
#178 Leda Clark SE1/4SE1/4 Sec 26-23-10 Quinaielt Lake Timber Unit.
TABLES OMITTED SEE ORIGINAL
#992 William Butler lot 9 Sec 4-23-12. Selectively logged with
tractors in 1936-37 by Butters Shingle Co. Cruise 8-16-38 of 4 acre
strip on N. line Lot 9. TABLE OMITTED SEE ORIGINAL
#111 Henry Harlow lot 16 Sec 29-24-12
#114 Frank Harlow lot 17 Sec 29-24-12
Selectively logged with tractor in 1937 by J. A. Sandell. Cruise
7-19-38 4.53 acres 1/2 on each allotment along line between 111/114
TABLES OMITTED SEE ORIGINAL
#1345 Wilfred Salakike NW1/4NW1/4 Sec 16-23-11. Selectively logged
with tractor by Ernest McBride and Leighton Salakike (Indians) in 1937.
Cruise 7-18-38 4 acre 4 ch N.S.X10 ch E.W. in NE corner. TABLE OMITTED
SEE ORIGINAL
#496 Harry Cultee Lot 4 Sec 22-23-10 Quinaielt Lake Timber Unit.
Selectively logged with tractors 1936-37 Ozette Railway Company. Cruise
of 7/15/38 of 4 acre strip on south line lot 4. TABLE OMITTED SEE
ORIGINAL
#180 Scott Clark SE1/4NE1/4 Sec 27-23-10 Quinaielt Lake Timber Unit.
Selectively logged with tractors 1936-37 by Ozette Railway Company.
Cruise of 8-17-38 of 4 acre strip on south line. TABLE OMITTED SEE
ORIGINAL
#177 Annie Clark Lot 9 Sec 26-23-10 Quinaielt Lake Timber Unit.
# Leda Clark SE1/4SE1/4 Sec 26-23-10 Quinaielt Lake Timber Unit.
TABLES OMITTED SEE ORIGINAL
#496 Harry Cultee Lot 4 Sec 22-23-10 Quinaielt Lake Timber Unit.
Selectively logged with tractors 1936-37. Ozette Railway Company.
Cruise of 7/15/38 of 4 acre strip on south line lot 4. TABLE OMITTED
SEE ORIGINAL
#111 Henry Harlow lot 16 Sec 29-24-12
#114 Frank Harlow lot 17 Sec 29-24-12 TABLES OMITTED SEE ORIGINAL
Explanations * indicates extensions by using ratio as to next column to
right ** indicates further extensions by using ratio as to 2nd column to
right. One log colnmn is 80% of HBS 40 foot column. Otherwise
figures are interpolations of HBS data. 03/31/39 (illegible)
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL (2 PAGES)
The following (illegible) gives the results of a study on a sample
plot on this area.
Area of sample plot = 2 1/2 acres
Location Olympic National Forest- Cook Creek Selective logging
area.
TABLE OMITTED SEE ORIGINAL
Volumes figured by "Lacey table)
for Fir, Cedar, Spruce)
TABLE OMITTED SEE ORIGINAL (4 PAGES)
HES-003-1699-1728
HES-003-1699-1728
IIA39.1
LENZIE, FRANK B. ; USIS
381101
CORRESPONDENCE
NICHOLSON, N.O. ; TAHOLAH INDIAN AGE
MEMORANDUM FOR MESSRS BRIGGS, MCKEEVER AND HOWARTH:
We are, of course, familiar with timber conditions on the Quinaielt
Reservation and with logging methods that have in the past been used on
the Quinaielt Reservation and this general locality. You are probably
also familiar with proposals that have in the recent past been made as
to changes in logging methods that shall be applied to the logging of
timber as on the Quinaielt Reservation.
I would suggest that you obtain from the records such information
covering these proposals so we will enable you to outline the plan I am
about to call for. Detailed methods and plans as to carrying out
policies proposed by the Office have not yet been formulated. It
appears that attempt to carry out these policies will result in a
conflict of such policies with the interest of the Indian allotees
involved. I seriously question that these policies as proposed by the
Office can be put into effect without resulting in actual laws to the
Indians; however, it is possible that some plan can be evolved that
will substantially protect the interest of the Indians and also carry
out the policies proposed by the Department. I wish, therefore, that
you would give me in writing and in such detail as is necessary to
clearly present your plan, answers to the two following problems:
(1) Your plan as to how the policies proposed by the Office and
Department can best be carried out with a minimum of loss to the
Indians. In this plan the need of conforming with departmental policies
should govern.
(2) A plan that will actually protect the interests of the Indians in
the utalization and disposal of timber on their individual allotments.
In this plan the real interest of the Indians owners should govern and
should be made to fit proposed changes and policies as far as possible,
but not to the extent that substantial loss to the Indians will probably
result.
N. O. Nicholson
Superintendent
NON:I.
HES-003-1729-1729
HES-003-1729-1736
IIA38.3
BRIGGS MCKEEVER HOWARTH
CORRESPONDENCE
MCKEEVER, L. C. ; TAHOLAH INDIAN AGE BRIGGS, FRANK E. ; TAHOLAH INDIAN
AGE HOWARTH, JAMES A. ; TAHOLAH INDIAN AGE
Supt. N. O. Nicholson,
Hoquiam, Washington.
Dear Sir:
This discussion is as to whether it is possible to work out a
sustained yield policy on the Quinaielt reservation which is nearly one
hundred percent allotted to Indians.
The Wheeler-Howard Act (48 Stat. 984) of June 18, 1934 in sec. 6
reads "The Secretary of the Interior is directed to make rules and
regulations for the operation and management of Indian forestry units on
the principal of sustained yield management". Under date of May 18,
1936 the Secretary of the Interior approved new "General Forest
Regulations" for Indian Forests. The following are quotations from
these regulations;
"The following objectives are to be sought in the management of
Indian Forests; (a) The preservation of Indian Forest lands in a
perpetually productive state providing effective protection, preventing
clear cutting of large contiguous areas, and making adequate provision
for new forest growth when the mature timber is removed."
"Whenever practicable, from 25 to 60 percent of the merchantable
timber volume will be left standing in order to protect the site,
provide seed for a new stand and make possible a second cut before the
reproduction matures."
"Clear cutting of large contiguous areas will not be permitted,
except on lands which will be used for agricultural development. It is
the policy of the Indian Service to promote the use of logging methods
which will ensure a reasonable degree of protection for reserve stands
and to limit the use of donkey engines and other high power machinery to
areas upon which the use of animal or tractor logging is not feasible.
Whenever circumstances necessitate the use of high power machinery which
results in destructive logging, cuttings will be so broken up by stands
of green timber as to secure adequate protection against fire and ample
provision for reseeding the cutover area."
"Inferior species of low commercial values should generally be
withheld from cutting until a reasonable consumer demand developes.
Species of this character are ordinarily most valuable when left
standing in the forest because they protect the ground, provide seed,
and do not lower the general value of the stumpage to be harvested.
Accordingly such species should generally be reserved for utilization at
a later date when they will have a positive value and only those trees
marked for cutting which if left standing would be injurious to the
future value of the forest. Areas containing large volumes of inferior
species should be excluded from sales wherever possible".
"22. Recreation. In the making of timber sales careful
consideration should be given as to whether it will be more beneficial
for the Indians to have a specific area logged or reserved for
recreational and scenic purposes. Cutting of timber along stocked
streams should be carried out conservatively so as to disturb the
environment of the fish as little as possible. A strip of timber should
be reserved for at least 250 feet on the side of all highways in the
ponderosa pine timber type and in the Lake States forests. In the large
west coast timber the reserved strip should be at least 200 feet wide on
either side of the road and timber areas back of these strips must be
cut selectively. In these strips no trees other than those that are
dead and down can be cut. Timber operations should never by permitted
to interfere with Indian Ceremonial sites." (Note that the underscored
phrases just above agree with the revision of this paragraph by the
Assistant Secretary on November 17, 1936. Forestry 846157)
The Indian Service publication entitled "The Status of Indian Forests
in Relation to a National Program of Sustained Yield" written in 1931 by
Mr. Lee Muck now our Director of Forestry, proposes a policy of
adjusting the annual cut on Indian Reservations, along with privately
owned and nationally-and state owned timber, on a cutting cycle basis
and for the Grays Harbor Unit he proposes a sixty year rotation. (see
page 50) For the Indian timber which is practically all Quinaielt
reservation, he proposes a cut of seventy million per year for forty
years. Growth would enter into the amount cut during the next twenty
years. He estimated the stand of old growth timber on the reservation
in 1931 as 3,103 million feet.
For the Olympic Peninsula as a whole Mr. Muck's report finds for a
sixty year rotation, a possible growth of 23 M on fair soils to 62 M on
good soils. This averages 700 board feet per acre per annum and so
totals 122,500,000 feet per annum growth for the 175,000 acres of the
Quinaielt reservation that are still under U.S. control.
From the Technical Bulletin 201, U.S. Dept. Agr., page 24 we note
that for douglas fir on sites II and III the average growth on a 60 year
rotation is about 1,000 bd. ft. per acre-year for fully stocked areas.
We have no independent data for the other species but if we assume for
all the species growing on the reservation a factor of 70% of the above
to fit the average stocked acre we have an average growth equalling that
gotten from averages in the publication by Mr. Muck and it therefore
appears that the proposal to log on the Quinaielt reservation for the
next forty years at the rate of seventy million feet a year is
conservative since the growth figured to be 122 1/2 million feet per
year when the cutting cycle is established.
We now have three large units with a number of years logging in sight
and two that are right now being completed. The logging requirements of
the contracts are as follows:
25 million feet on the Quinaielt Lake Unit
25 million feet on the Mounts Unit
8 million feet on the Hall Unit
58 million feet on the three units with years to run
28 million feet on the two units now winding up
86 million feet on the five units has been required up to this year.
The Director of Forestry in a letter of October 15, 1938 to
Superintendent N. O. Nicholson replying to the suggestion that a
conference be had in Washington, D.C. with some of the Quinaielt Indians
states "that all future sales should be made with a clear understanding
that destructive methods will not be permitted and a policy of light
selection cutting must prevail". This decision as to light selection
cutting may rest largely upon the report and and recommendations of Mr.
Carthon R. Patrie, Forester, dated June 28, 1938 and we here question
the sufficiency of data by Mr. Patrie and the correctness of his
observations and conclusions. Also we note inconsistencies.
Mr. Patrie found the 80% volume cut was OK in old growth of douglas
fir on the Scott Clark allotment and this allotment was split its entire
length by a wide clear cut right of way for railroad. Yet in the
"conclusions" he later recommended for old growth douglas fir (and
spruce) removing less than 25%. As to the spruce selective logging he
reported the results quite satisfactory on the Harlow allotments logged
by Sandell and where he estimated 20 to 30% of the original volume was
cut. The percent cut was really much more and our estimate of the
volume removed is about 60%.
If cutting of old growth douglas fir and spruce must be less than 25%
(say about 20% of the volume) and of successive cuttings 30 years apart
are restricted to a like percentage of the original volume then it would
be 120 years after the first cutting before the last of the original
stand is cut. This is far beyond a human life span and such a rule if
enforced would in effect be depriving the owner of the use of his
property without compensation and so unconstitutional as a law or
regulation. We expect that it will not be long before some Indian or
group finances a test case if the percent of timber that can be removed
is held even as low as 50%. Such a test would likely try the
constitutionality of the Wheeler-Howard Act which deprives Indians of
their right to fee patents to lands allotted them with a promise of fee
patent to follow.
It is not because we are opposed to conservation or the
Wheeler-Howard Act that we make the statements above but because we know
the Indians point of view and believe he can win out in the test case.
Turning now to the older timber sales on the Quinaielt Reservation we
note that the interpretation put upon them by all concerned, purchaser,
Indians, Taholah Indian Agency and Washington Office, has been that they
were clear cutting contracts to a 14" d.b.h. diameter limit
notwithstanding that all those contracts read on the front page "that
the superintendent -- agrees to sell to the purchaser -- all the
merchantable live timber marked or otherwise designated by the officer
in charge for selective logging as required by the attached General
Timber Sale Regualtions comprising trees fourteen inches and larger."
These General Timber Sale Regulations in paragraph 10 include the
provision that "In the discretion of the Officer in Charge a strip not
exceeding three hundred (300) feet in width on each side of streams,
roads and trails and in the vicinity of camping places and recreation
grounds may be reserved in which little or no cutting will be allowed."
These regulations are capable of just as severe (from the Indian
allottee point of view) interpretation as is proposed under the
Wheeler-Howard Act and regulations of May 18, 1936.
None of us desire to see a continuation of the practice of logging
clean over wide areas even if fire can be kept cut, and we believe that
fire rarely can be kept out. Instead we favor leaving a good looking
stand on the ground and this includes the use of tractors instead of
donkeys and cable. But there must be some kind of compromise between
the very light selection cutting and the older methods of cutting or
knocking down everything. The Indians want all their timber is worth
and they want it now. If the individual Indian title is extinguished by
the United States buying his land and timber all problems will be
solved. The idea that all those whose land is included in future large
sales pool their interests in proportion to the worth of their
individual timber interests and accept annual shares in the income from
the sale, (this idea) has been proposed but discussion with the Indians
has not developed any enthusiasm for the plan. It would solve the
forestry difficulties but not the book keeping and inheritance problems.
We should, as soon as possible, get away from numerous small sales
because they are;
1. Expensive to handle, far exceeding the 8% deductions,
2. Often sold to operators who are poorly financed and the danger is
high that timber will be cut and left on the ground unpaid for,
3. Sometimes made to Indians who claim to be the real contractor but
in fact are lending their name to some white logger,
4. Removing the more valuable and accessible timber alongside or
near the highway and lessening the value of timber further back,
5. Sure to make it difficult later to get rights for purchasers to
get into the timber back from the highway.
ONE BIG SALE of the timber in the north-west half of the reservation
appears to be the best solution in sight since we doubt that the
Government will buy up the timber. But this will take an operator with
a big pocket book. This area, advertised as four units in 1929, shows
stand and values estimated as follows; TABLE OMITTED SEE ORIGINAL
The unit contracts heretofore made here apparently contemplated
removing all the timber the first time that the land was logged over and
they called for advance payments three years apart till 50% was paid in.
But the newer contracts hereafter will contemplate removing 50%, or
maybe less, of the timber during the first time logged over and
accordingly it seems fair that they should call for not more than a
total of 20% in advance payments on individual allotment contracts, same
to be in five payments of not less than three years apart and to be five
percent each. Even than the purchaser will pay in 12 years
$1,054,000.00 or more in advance payments. Though he might have done 12
years logging he would still have probably much over half a million
dollars so still invested.
If the first cutting over the entire big unit is provided to be
completed in thirty years and the overrun factor proves 50% and 50% of
the stand is cut during this first 30 years there would be an average
annual cut of 45 million feet, ignoring growth. To cut over the big
unit in twenty years would mean an average yearly cut of 67 1/2 million
feet which is practically the average limitation proposed by Mr. Muck in
the plan of 1931 before mentioned. But there are three large units
still under contract and with a number of years to run and a present
annual cut requirement totalling 83 million ft. This would result in
reducing cut permitted under a new contract.
Below is a rough estimate of the life of these three units based on
the approximate area logged to date and an overrun of 50% and assuming
that the cut each year will equal the required minimum; also that when
the Ozette Railway Co. finishes operations on the revised Quinaielt Lake
unit contract it will have cut only about 67% of the now remaining stand
including overrun. All the figures below are in million feet. CHART
OMITTED SEE ORIGINAL
Holding strictly to the 70 million per annum total, the new big unit
would be restricted to 12 million feet for the first five years, then
increased by 25 million for two years and then increased by another 25
million. This restriction on cutting in so big a unit would be unfair
to the buyer required to make such big investment in advances on
individual allotment contracts and there would be strong opposition by
the Indians. It appears that it would be necessary to considerably
increase the 70 million ft. total limitation on the reservation annual
cut and that the new big unit contract would better provide for 30 to 50
million feet limits for the first five years and then for two years be
50 to 75 million feet and be 75 to 100 million feet thereafter. These
figures are proposed to run from the present time and therefore if a
number of years elapse before such a contract is made the limitations
would be made to fit.
Arguments that should have weight with the Indians in submitting a
big sale, especially in favor of selectively logging only 50% of the
volume the first time over the land, are that thus in a much shorter
number of years all the allotments would be once logged over and, the
money being probably spent, there would still be timber left to be
removed the next time over the land.
Whatever the difficulties and opposition we must stick out for
improved forestry practices. There must be tractor logging wherever it
can be done even though it will restrict the length of the logging
season. Only in too swampy places and where the land is too steep
should donkey logging be hereafter permitted. Tractors leave the stand
in condition to grow and log again and the roads will be useful in
confining fires to small areas and also permit getting out windfall if
it should be bad in some later year.
You have presented two questions substantially thus;
1. How should the logging be done following present regulations,
fitting them if we can to the individual ownership of the timber?
2. How much change in regulations appears necessary to protect the
Indian interests and forestall contest in the courts?
It is assumed that this applies to the Quinaielt Lake unit and
north-west half of the reservation only because Mr. Muck in his letter
of October 13, 1938 says "contracts which were in force, making
exception of the Quinaielt Lake Unit contract, at the time the
organization of the Quinaielt Indians was effected, probably will not be
developed under selection cutting methods".
1. (Conforming as closely as possible to new regulations)
a -- Avoid logging the stands of pure or nearly pure hemlock and/or
white fir in most cases until there is a good consumer demand and price
for the species;
b -- In other types, log at least 50% of the volume, which often
would be as high as 70% of the values considering that there would often
be hemlock and white fir in the stands left uncut;
c -- Establish a minimum of 50 million and maximum of 105 million per
year cut with average of 70 million enforced.
2. (Modifying to meet the interests and demands of Indians)
a -- Log 20 to 50% of the old growth hemlock and white fir but
generally nothing in younger stnads of these species;
b -- In other types, log up to 75% of the volume, which often would
be 85% to 90% of the values because of hemlock and white fir;
c -- Increase the average per annum cut under contracts to not less
than 100 million feet.
Respectfully submitted
L. C. McKeever,
Senior Forest Ranger.
Frank E. Briggs,
Senior Forest Ranger,
James A. Howarth Jr.
Forest Supervisor.
jahjr.
HES-003-1730-1736
HES-003-1729-1736
IIA38.3
NICHOLSON, N. O.
380321
CORRESPONDENCE
NICHOLSON, N. O. ; TAHOLAH INDIAN AGE
Forestry
The Commissioner of Indian Affairs
(Through Regional Forester)
Spokane, Washington
Sir:
Reference is made to the inclosed report of Mr. James A. Howarth,
Forest Supervisor, covering the logging costs on the Quinaielt and Makah
Reservations, under this jurisdiction and suggesting methods of reducing
the excess costs over and above the 8% deductions now being made.
The report of Mr. Howarth sets forth clearly and in detail the
deductions and he suggests six ways of remedying this situation. I take
no exception with any part of the report in general, and agree in the
main with his remedial suggestions, but I do not agree with suggestion
No. 1, and am accordingly discussing these suggestions separately rather
than concurring entirely in his report.
No. 1. I do believe that the 8% deductions should be raised to 10%
on the Makah sales. These prices have been too low and will continue
too low to permit of a favorable balance on an 8% deduction. I, also,
believe that a 10% deduction should apply on any future small sales that
may be made. I do not, however, believe that the present 8% deduction
should be raised to 10% on our current large sales on the Quinaielt
Reservation. Part of the increase in administrative costs has been due
to changes in logging procedure required by the Department, as to which
changes the Indians were not in favor. The Indians have accepted some
of these changes rather than face entire closing of logging operations,
but they have opposed them and I do not think it would be proper to
impose an increase in the deductions for timber sale administration
expenses when some of these increased expenses have been due to changes
in policy to which the Indians objected.
No. 2. The branding of logs should certainly be taken over by the
purchaser.
No. 3. The program calling for training Indians as assistants for
scalers appointments has worked out well, and a number of capable
Indians, with no previous woods or scaling experience have not qualified
as scalers and are doing acceptable work. The training of these men
does, however, require considerable time on the part of other scalers
and supervisory personnel and, as these efforts are educational, part of
this cost should be borne from other funds or it should be clearly
recognized that part of this expense is not a timber sale administrative
expense.
No. 4. Selective tree logging unquestionably must necessarily result
in higher administrative cost and, even though there is real question of
how effective this method of logging will be, I would hesitate to
suggest in so brief a space and without further jurisdiction that this
method of logging be discontinued. I will say, though, that in my
opinion, based on the small areas so logged on the Quinaielt Reservation
to date, that this method of logging probably will not prove very
satisfactory.
We have satisfied ourselves that selective tree logging can be
practiced on certain areas and that on these areas this method of
logging is working out better than we had thought. We have found,
though, that on these same areas, even though substantial stands of
timber have been left, that the blow-down of remaining timber has been
greater than we had expected, and at some time it is going to be
necessary to explain to these individual owners of timber the reason for
insisting that these trees be left, and that the Indian be denied these
values in revenue over and above his objections to this method of
logging.
No. 5. Some of our small timber sales have afforded Indians
opportunity to engage in logging and obtain employment, and have
afforded the Indian owners income from their timber. From this
standpoint these sales are quite advisable, but the administrative cost
of such sales must be higher than those of larger sales, and we must
weigh the increased cost of such sales against the advantages to the
Indians themselves.
No. 6. While most of the efforts of the two Senior Rangers are
devoted to timber sale administration, some of their time must
necessarily be devoted to other forestry work, and it would accordingly
be deemed proper that recognition be made of this fact. Now that a
number of our larger sales are "playing out" I very much doubt the need
of a Forest Supervisor and two Senior Forest Rangers at this
jurisdiction, and consideration should be given to the elimination of
one position of Senior Forest Ranger.
Sincerely yours,
N. O. Nicholson
Superintendent
Concur
Frank B. Lenzie,
Regional Forester.
HES-003-1737-1738
HES-003-1737-1738
IIA38.2
COMM OF INDIAN AFF REGIONAL FORESTER
reasons for the accumulative excess costs over and above the 8%
380402
CORRESPONDENCE
GRAY, PATRICK
Forestry and Grazing
424 Federal Building
Spokane, Washington
April 2, 1938
The Commissioner of Indian Affairs
Washington, D.C.
Sir:
Following instructions from Mr. Frank B. Lenzie Regional Forester, I
have recently visited the Taholah jurisdiction, during the period March
12th to 19th, the purpose of the trip was to make an inspection of
forest activities.
While there, the fire plans for the coming season were discussed with
Superintendent Nicholson and Forest Supervisors Howarth and (ILLEGIBLE)
and Project Manager Lynch. Apparently the provisions of the fire plan
are fully understood and will be followed, and should result in giving
the property of the Indians efficient fire protection.
There is not much activity in the timber sales; the M. R. Smith
Lumber & Shingle Co. and the Aloha Lumber Company are operating one side
each and also doing some pickup along the tracks with cranes. Their
output is approximately seventy thousand feet each daily. Mr. J. M.
Elliott is now working along the highway cutting approximately 20,000
feet daily. The (Ozette Railway Company and the Washington Pulp & Paper
Company are closed down. An examination of the records shows that the
H. R. Smith Lumber & Shingle Company and the Aloha Lumber Company and
the Ozette Railway Company will not fulfill their contractual
requirements in regard to the minimum cut foir the contract year ending
March 31, 1938 on the Point Grenville, Mounts and Quinaielt Lake Units.
The following table lists and the major timber sale contracts on the
Quinaielt and Makab Indian Reservations, with the amounts cut to date,
during the contract year expiring March 31, 1938, and the deficiency as
of March 10, 1938:
No. 2. Comr. of Indian Affairs 4-2-38 CHART OMITTED SEE ORIGINAL
Operations have been hampered by strikes and labor troubles caused by
the fight for jurisdiction control between the A.F. of L. and the C.I.O.
organizations. Of twenty-one major sawmills in the Grays Harbor Region,
fourteen are closed down, four are working half time, and three are
operating at full capacity. This is accounted for partly by labor
troubles, and partly by poor business conditions in the lumber industry,
and explains to some extent the failure of the logging companies to make
their required minimum cut on the Quinaielt Reservation for the contract
year ending March 31, 1938.
It is the opinion of the writer that favorable consideration should
be given to the applications for relief by the companies, for their
failure to cut their required minimums, without penalty.
The matter of the granting of waivers for failure to make required
minimum cut has not been taken up either with the allottees or the
Tribal Council, in view of the ruling given in Office letter dated May
1, 1935 (20627-27), addressed to Superintendent Nicholson. The ruling
is as follows: " +++ It will not be necessary to secure the consent of
the Tribal Council and the allottees to the waiver. The contract
provides that the approving officer may relieve the purchaser of any
deficiency in cut. The Office sent you on May 18, 1934 a copy of the
Solicitor's opinion of March 31, 1934, which upheld such a provision of
the contract."
The controlling accounts show that all the above listed contracts are
in good financial standing, having favorable balances in the headings -
"Advance Payments" and "Advance Deposits".
No. 3. Comr. of Indian Affairs 4-2-1938
At the present time five of the scalers are working, two each at
Aloha and Smith operations, and one on the Highway. Five scalers are
taking their accumulated annual leave, and there are no Indian assistant
positions filled. These Indian assistant positions have proved very
valuable in the past, but unquestionably they add considerably to the
cost of administration of the timber sales, which is now in excess of
the proceeds of the eight per cent which has been authorized for
deduction from the total timber sale receipts and which is credited to
the fund "Expenses-Sale of Timber-Reimbursable".
The M. R. Smith Lumber & Shingle Co. expect to complete its contract
on the Point Grenville Unit in August, and the Aloha Lumber Company is
planning on finishing the Upper Wreck Creek and Mounts Units in
September, 1938.
The Ozette Railway Company expect to start operating one side in a
cedar show on the Quinaielt Lake Unit south of the river, using trucks
and tractors, and the Washington Pulp & Paper Company plans to start
three steam sides on the Wa-ach Unit early in April. If these plans are
carried out the recall of the scalers now on annual leave will be
necessary and an additional appropriation of at least $2500.00 from the
fund "Expenses-Sale of Timber" must be provided in order that effective
administration of the timber sales be carried on.
The sale of timber on the Milwaukee Trail Unit to Frank Morgan is
inactive, owing to weather conditions. It will probably be the middle
of May before any further programs can be expected in the development of
this tract of timber. At the present, the road into the unit has been
chunked out and partially graded for a distance of two and one quarter
miles from the highway, but is now too wet for construction work to be
done economically. On the first half mile poles have been laid fore and
aft to help retain the gravel which is to be spread later and which it
is hoped will make a surface satisfactory for the operation of motor
trucks. It is estimated by the writer that the construction already
accomplished has cost at least five thousand dollars, and that an
additional fifteen thousand dollars must be expended before the road is
in condition to stand the heavy wear and tear of log hauling without
undue maintenance. It is hoped that the contractor can make the advance
payment and be granted the additional time that he has requested, as the
sale is a very advantageous one for the Indians, especially in view of
the present depressed condition of the lumber and log markets.
No. 4. Comr. of Indian Affairs 4-2-1938
The area surrounding and partly included in the Milwaukee Trail Unit
suffered very severely during the 1921 blowdown, but is now covered by
an excellent stand of young hemlock, from two to six inches in diameter
and from six to fifteen feet in height. The hemlock trees which were
blown down are almost completely rotted through, but the Douglas fir and
cedar still have considerable salvage value, only the sapwood in these
species being sadly decayed, and the heartwood still fairly sound. This
area affords a very good illustration in cutover areas in the Coast
belt, provided all fires are kept out.
On the Makah Reservation, over half of the cutover area has been
replanted to Douglas fir and Sitka spruce by the CCC-ID under an
approved project. It is too early yet to make any statements as to the
survival of the transplants, but an optimistic viewpoint prevails. It
would appear that after September, 1938, owing to the probable
completion of two Point Grenville, Mounts and Upper Wreck Units by that
time, there will be only three major timber sales under the jurisdiction
of the Taholah Indian Agency, and that the Forestry force can be reduced
to a considerable extent. In furloughing or transferring personnel, the
governing factor in determining those who should be retained should be
seniority, provided that efficiency is equal. The percent scalers all
appear to be competent and to do their work in a satisfactory manner.
Experience has shown that the practice of making small sales to
Indians along the highway has not been very satisfactory. Difficulties
have been encountered in making collections and in getting the areas
cleaned up and completed; consequently it is the writer's opinion that
this method of handling the timber should be discouraged as much as
possible, and only accepted where a refusal would cause serious
embarrassment to the officials in charge.
Recommendations in a previous report to the effect that all log
branding should be done by the purchasers, and that the accounts should
be kept in the Taholah Agency office at Hoquiam are being carried out.
Where selective cutting is being carried on, a very close watch is
being kept on the areas involved, and if
No. 5. Comr. of Indian Affairs 4-2-1938 the blowdown proves to be
excessive, clear cutting will be the policy, to avoid direct losses to
the Indian allottees. This will apply where the majority of the trees
in the stand are mature or overmature. Where the stand has a good
proportion of young; second growth and thrifty trees, the hazard is not
so serious and a much lighter out may be made. Accordingly the cutting
practice is being determined for each tract by the conditions obtaining
thereon, and blanket provisions regarding marking and selection
eliminated. The matter of whether or not to burn the slash is an open
one. It is the opinion of the writer that in the Coast region no slash
burning should be permitted as, owing to the amount of debris on the
ground and the usually abundant rainfall, the burn is seldom clean and
renders the fire hazard greater in place of eliminating it. When fire
runs over a slashing several times, all the young growth and seed are
destroyed and planting becomes necessary if another forest stand is to
be developed. The land on the Quinaielt Reservation is of practically
no value from an agricultrural and grazing standpoint, and to secure
financial returns in the future another stand of timber must be provided
for, and the cheapest method of securing this is by the prevention of
all fires.
Respectfully submitted,
PG-ctj
Patrick Gray
Logging Engineer
cc Supt. Nicholson
HES-003-1739-1743
HES-003-1739-1743
IIA38.1
COMM OF INDIAN AFF
371010
CORRESPONDENCE
HOWARTH, JAMES A ; QUINAULT INDIAN RE
DOCUMENT SAME AS DOCUMENT 1751-1757 (ILLEGIBLE)
HES-003-1744-1750
HES-003-1744-1750
IIA37.2
NICHOLSON, N O ; TAHOLAH INDIAN AGE
371010
CORRESPONDENCE
HOWARTH, JAMES A ; QUINAIULT INDIAN R
Hoquiam, Washington
October 10, 1937
Supt. H. O. Nicholson
Taholah Indian Agency,
Hoquiam, Washington.
Dear Sir;
This is a SPECIAL REPORT on the two slash fires on the Quinaielt
Indian Reservation that started 06/03/37 along the logging railroad of
Aloha Lumber Company and which ran out of control and eventually covered
3830 acres within the reservation.
On 06/02/37, the day before the fires, Senion Forest Ranger Frank R.
Briggs, and I looked over the logging operations of Aloha Lumber Company
and M. R. Smith Lumber and Shingle Company. It was a very hot and dry
day following two or three similar days. We observed that Aloha Lumber
Company on 06/02/37 had a bicycle speeder patrol following its logging
trains. But we did not then know that the patrolman, Everett,
Burlingame, only followed these trains to section 14, T 21 N, H 12 W,
W.H. and not down into the area further south in which the fires of the
next day started. See the letter of Mr. T. H. Dole, Aloha's manager,
dated 06/11/37, which confirms this distance of patroling.
On 06/05/37, so we learned from the patrolman on the 4th, he found
and put out four fires started along the track by the logging train in
the area he was patroling north of section 14.
FIRE NO. 1 apparently started about 3:00 P.M. 06/03/37 following the
passing south of Aloha's logging train headed to the mill. It started
close to the tracks on the trust patented logged off allotment No.
(ILLEGIBLE) section 26, T 21 N, H 12 W, W.H. in the Upper Wreck Creek
Unit and about 1 1/12 miles north of where FIRE NUMBER TWO started at
apparently about the same time. Fire No. 1 was reported by the lookout
Fred Morg, at the Point Grenville tower about 3:30 to both Mr. F. E.
Briggs house at Moolips and the Spruce Orchard E.C.W. Company. He did
not call to Hoquiam.
FIRE NO. 2 apparently started at same time as No. 1 fire and about
four feet from the rails of Aloha's logging railroad on fee patented
logged off lands not included in one of our timber sales, the
(ILLEGIBLE) section 35, T 21 N, R 12 W, W.H. about 1000 feet north of
the intersection of the E.C.W. truck trail to Spruce Orchard camp. Mr.
Briggs discovered this No. 2 fire (but not No. 1 fire) about 3:45 and
about 4:00 P.M. he met the E.C.W. foreman, Mr. Frank Wells along the
road nearby and told him of this No. 2 fire.
Mr. Briggs first learned of Fire No. 2 on getting home and called me
about 5:15 at my house and I put a call in for the foreman of the Queets
E.C.W. camp. The phone at Queets is in the Barbell store. Arrivals at
the fire were as follows;
About 4:45 Aloha logging train coming in from the woods dropped off
about 25 men at Fire No. 1 and 8 men at Fire No. 2. About 6:00 or 6:15
the E.C.W. crew at Spruce Orchard, ten men, under Frank Wells foreman,
arrived at No. 1 fire with two pumpers and 2000 feet of hose.
About 7:00 the Queets crew, about 15 men of that crew, under the air
foreman, Ernie Gleason, arrived with a pumper and hose. About 7:30 Mr.
Briggs got to No. 1 Fire with one of our big pumpers and a line of hose
which he had come to (ILLEGIBLE TEXT)
The crew of Aloha Lumber Company stayed with our men at the two fires
till 09:00 P.M. when Aloha's men went to their homes at Aloha. Our men
stayed all night working on Fire No. 1 which spread to cover 20 acres
before dark. Fire No. 2 was only about 20 feet across and appeared out
as early as 7:00 P.M. when Mr. Briggs examined it enroute with pumpers
and hose to Fire No. 2.
About 10:00 P.M. Mr. Briggs arranged with Mr. Millwood, the woods
superintendent of Aloha Lumber Company for next day emergencies, asking
for a locomotive and tank car to stand by all day, but was promised
instead that the gas speeder would stand there all day the 4th.
06/04/37 about 7:00 A.M. Fire No. 2 appeared still to be out to Mr.
Briggs. Mr. Millwood and three of Aloha crew worked all forenoon with
our men on Fire No. 1 but the Promised speeder was not on hand and
showed up at about 2:00 P.M. Aloha crew logged all day the 4th. About
10:00 P.M. Mr. Briggs noticed that Fire No. 2 was again smoking up. At
that time also Fire No. 1 was spreading again and water was giving out
for the pumpers.
It appeared to Mr. Briggs that Fire No. 1 was past holding and that
Fire No. 2 could be held and that our greatest assets were in the Spruce
Orchard Plantation which Fire No. 2 threatened. So when the logging
train went down at noon our pumpers and hose was loaded onto it and
taken about 1 1/2 miles south to Fire No. 2.
When loading our equipment onto this train our scaler, Mr. Cogswell,
discovered fire on the truck of one of the railroad cars and was
informed by the brakeman, Mickey Armstrong, that the train had that day
set four fires along the tracks north of Fire No. 1 and which he had put
out.
On 06/04/37 at 9:15 A.M. Mr. Briggs phoned me that the fire was O.K.
and maybe 20 acres covered. There were no further reports till 5:12
P.M. when Fred Borg, the Point Grenville lookout called me reporting" a
new fire coming up fast about a mile west of Spruce Orchard camp." This
was my first information of the No. 2 Fire. I told Mr. Borg to take in
his car the equipment he had there, 400 feet of hose and a light pumper,
to the fire and tell Mr. Briggs or Gleason of the new fire. All our
Quinaielt hose and pumpers were then on these fires.
About 3:40 Mr. Briggs called me up with information as to conditions
and I put in a call to the Queets camp, E.C.W. for the balance of the
crew and a call to Noah Bay for Mr. Otinger, E.G.W. forester, to bring
down to the fire that night one of the Noah Bay pumpers, (Pacific
Barins) and 2000 feet of the hose. This he did. Because it appeared
that more equipment would be needed I telephoned to Mr. Shirley Buck of
the Forest Service in Portland and to Edwards Machine Shop in Longview
to locate and price hose and pumpers. That evening I ordered a new
pumper,model 80 Edwards, from Edwards Machine Shop, for special
delivery, but it did not arrive till early Sunday morning, 06/06/37.
Contact with Queets camp was made at about 4:00 P.M. Later in the
evening Mr. Harry M. Lynch, Project Manager, E.G.W. went to the fire to
assume charge and relieve Mr. Briggs. We arranged for groceries to be
delieverd by Mr. Lawrence Porter next morning, also for two new pumpmen,
Messers. Duvall and Riddell. Queets crew arrived that evening. Duvall
was E.C.W. mechanic and Riddell soaler at the Lake.
On 06/05/37, Saturday, at 9:10 Mr. Lynch called reporting that the
fire could not be controlled because of its great size and complaining
that Aloha had no crew on the fire Friday or Saturday. I located the
Aloha manager, Mr. W. W. Dole, at his home in Hoquiam where his daughter
was to be married that day. He said that Aloha had 'four crews in the
fire Friday and a crew till 2:00 A.M. Saturday and a fresh crew out at
7:00 Saturday morning. Mr. Briggs related this by phone. However, Mr.
Dole promised us plenty of help for that day.
Towards noon Mr. Briggs fetched from Taholah the available crew of
W.P.A., only four men. Spruce Orchard E.G.W. camp was only about a mile
from the south east front of the fire where fighting was being
concentrated, and was used for headquarters and sleeping and eating
place.
At 11:25 A.M. that day, 06/05/37, I placed order with Edwards Machine
Shop for 2000 feet of new hose for delivery that day. But this hose and
the pumper ordered the evening before all came in about 7:00 A.M. next
day, Sunday the 6th and all was picked up and brought straight to the
fire by Messrs. Porter and McKeever.
On 06/06/37 the fires were still going strong but being kept out of
our Spruce Orchard Plantation. At 9:00 A.M. Mr. Briggs reported that
Aloha had lost two 'donkeys' and the railroad bridge over Moolips River.
At 12:00 he called for another pump unit, Model 80 Edwards for one
damaged and out of use. As Edwards reported he hadn't another in stock
of that model I ordered a model '60' complete for delivery same day. It
arrived next morning, early.
06/07/37, Monday started out cloudy and some mist fell in afternoon
and a little rain fell during night of 06/07/37 and 06/08/37. More rain
fell during night of 06/08/37 and 09 and on afternoon of 06/09/37. The
fire was pretty well out on all fronts for several days but on the 12th
and 13th it broke out and burned some on the north end. Light rains
beginning again on 14th became heavy rains on 16th and 17th and
completely controlled the fire for the summer.
On 06/07/37, Monday, the E.C.W. crews were pulled off the fire and
Aloha Lumber Company was advised that it was from them on its
responsibility to patrol and check the fire. The fires had come
together on 06/04/37 and made their big runs on the 4th and 5th reach-
ing green timber at east and north and crossing (ILLEGIBLE). It did not
cross south off the reservation though it was not fought on that side
excepting toward the Spruce Orchard.
The reservation area burned is estimated as follows -- 3880 acres
total; 2200 acres trust patented and 1600 acres free patent; 1350
acres only being new burn and half each trust and the patented area,
1520 acres was reburn of areas burned once or often before and on which
there was scanty reproduction; 1600 acres of the reburned area was
trust patented and 920 acres was fee patented.
Our appraisal made for the Annual report for 06/30/67, gave the
damage as $1320.00 for reproduction only. A recent appraisal of the
area shows that the fire killed cedar pole timber in swamp areas burned
across as follows; 193 acres averaging 80 poles each worth 40[cents
stumpage and so totalling $3,840.00 for the poles. Of which 122 acres,
$2440.00 was fee patented and 70 acres, $1400.00 was trust patented land
and damage to cedar poles. In addition the damage to Aloha Lumber
Company R. H. Bridge was $3,000.00.
On the fire were altogether of our men, all the E.C.W. (excepting the
small crew at the Lake and the lookouts) and four men of W.P.A., also
timber sale man from the sales at the Beaches and for part of the time
Messrs. McKeever and Riddell. All our pumpers and hose was also in use
from the second afternoon.
This report is not written to put the blame on anyone that the June
1937 fire got so large nor to (ILLEGIBLE) myself from any neglect or
mistakes as to planning or exception. I believe that our men did the
best that could have been done under conditions. but I state below
lessons that should have been learned.
All our pumpers had been worked over during the winter as had always
been our practice. Our then E.C.W. mechanic, Thomas Riddell, put them
in condition. Pacific Marine pumpers had not proved strong enough to
stand long hour use on fires. We needed larger stronger pumpers of the
Edwards type and were aware of it, also more hose, but we did not have
funds for such purchases.
I believe that the distribution of the pumpers and hose as is shown
in the 1937 (ILLEGIBLE) (ILLEGIBLE) was a good distribution for the
season 1937. I believe that the lookout at Lone Mountain should have
been out a lot earlier but this fire of June 1937 came after all look-
outs were at stations. We doubt the need of the lookout at guests tower
till there is more logging in that part of the reservation.
The two lookouts at the two more vital sections, Fred Berg at Point
Grenville, and Frank Mounts at Lone Mountain, had been lookouts during
the 1936 season and all the June lookouts and fire guards at Toppalish.
I relied on their previous years experience and the schooling at
Toponish and neglected to personally instruct them when they went to
their stations on June first. I realize now that I should have given
them first day personal instruction at their stations and intend to do
this another year.
The get away time for the crews with equipment was not slow but could
have been speedier. The Queets camp was about 55 miles distant and was
without a telephone. We were dependent upon a messenger from Rubbell's
store distant about two miles walk. It will be better for another
season to have a phone right at the camp but it will have to be thru the
Clearwater switchboard because in that territory the P. T. & T. Co. will
not give us service by a direct connection, so I have
A very good arrangement to have made with Aloha Lumber Company and
the others would have been that during the long summer days the crew go
out about daylight and come out of the woods for the day at noon. This
is something that we will plan to do another season and I believe that
the operators will be willing to do it.
The State laws of 1937, chapter 152, revising section 5806 reads in
section 3 thereof as follows -- When in the opinion of the supervisor of
Forestry or his authorized deputies, weather conditions arise which
present an extreme fire hazard, whereby life and property may be
endangered by spreading forest fires, the supervisor of forestry, or his
authorized deputies, may issue, or cause to be issued, an order closing
such logging, land clearing, or other industrial operations which may
cause a forest fire to start, and such dangers shall be for the period,
or periods, and regions, designated in the aforesaid order.' We believe
that this law is applicable on the Quinaielt Indian Reservation and that
by being appointed special deputies of the state supervisor of forestry
we can and should avail ourselves of the authority and close down
operations on days that the fire hazard is extremely high.
Each spring we should not only make the usual check of the fire
protection equipment of the logging operators on the reservation and the
condition of this equipment but it appears that the forest supervisor
should personally discuss with the company managers and woods
superintendents, plans for fire prevention and of speedy suppression
cooperation. This appears especially needed as to the Aloha Lumber
Company whose record for fires has been worst.
We need more Edwards pumpers to replace the Pacific Marines that we
believe will not be fit to use another season. Additional hose also is
needed. But funds are lacking for the purchases. All our pumpers will
be gone over during the winter. We are depending upon the E.C.W.
mechanic for this but if extensive repairs appear necessary we probably
should send them to the manufacturer to repair. We believe that two of
the Pacific Marine pumpers should be condemned for repair parts to be
used in others of same type.
To prevent more successfully trespass during the fire season, I think
very favorably of Mr. Lynch's proposal for E.C.W. project to move two of
the fire station cabins to the gates at southwest entrance and Cook
Creek entrance respectively. Guards there during the fire season could
keep out all cars with the help of a gate at the Point Grenville tower
under the eyes of that lookout.
Radio equipment seems essential for speed in contacting a crew out on
the orad and other construction jobs to proceed to a fire and to keep in
contact with the crew on the fire line. The E.C.W. organization here is
now getting some such equipment. It is the plan now that we should have
a good man qualified to dispatch to all fires and an expert in radio,
stationed at the new warehouse at Quinaielt Lake. There and at the
Hoquiam office should be a radio set capable of reaching out 50 miles or
more. Smaller sets would be required at least at the road jobs and in
the truck specially equipped to go first to the fires with pumper and
hose. Additional ones in the car of the Project Manager of E.C.W. and
one or more of the regular forestry cars are desirable.
Attached hereto is a copy of the three page instructions and
information for the 1937 fire season which was prepared by myself and
approved by the Project Manager and Superintendent last May and sent out
to lookouts and others the first week of June which was the week of the
fires. It is not an elaborate plan and is mostly a schedule of Sunday
and Holiday duty and information as to telephone rings and connections.
Prior to its fame, for about a month, the week end fire duty had been
arranged without written schedule, between us by Messrs. McKeever and
Lynch and myself for Hoquiam and between Mr. Briggs and his men for
Moclips duty.
THIS REPORT IS SUBMITTED FOR INCLUSION WITH THE LETTER TO THE
REGIONAL FORESTER AT UPCHANS, DATED 10/14/37 AND ARE ENTERED.
"STATISTICS FOR FIRE CONTROL PLAN OF REGIONAL OFFICE FOR 1937."
Respectfully submitted,
James A. Howarth Jr.
(Forest Supervisor)
jahjr
HES-003-1751-1757
HES-003-1751-1757
IIA37.2
NICHOLSON, N O ; TAHOLAH INDIAN AGE
371021
CORRESPONDENCE
SUPT ; TAHOLAH INDIAN AGE GRAY, PATRICK ; TAHOLAH INDIAN AGE
Forestry
424 Federal Building
Spokane, Washington
October 21, 1937
Commissioner of Indian Affairs
Washington, D. C.
Sir: THROUGH: Superintendent, Taholah Indian Agency
Following instructions from Mr. Lee Muck, Acting Director of
Forestry, I have recently made an inspection of timber sale activities
on the Quinaielt and Makah Indian Reservations under the jurisdiction of
the Taholah Indian Agency.
All active operations were visited, and the men in charge and the
scalers and markers were contacted. Written statements from each of the
employees as to their precise duties were obtained, and copies thereof
are attached to this letter for the information of the office.
The administration of the sales was discussed with Superintendent
Nicholson, who has a thorough understanding of the problems involved.
The supervision of the work is complicated and rendered extremely
difficult by reason of the nature of many of the small timber sales,
which are scattered along the highway between Quinaielt Lake and Queets.
Many of these were entered into to satisfy the insistent demands of the
individual Indian owners, who do not recognize any value in proper
forestry practice or selective cutting to leave the stand in a
permanently productive condition. A limit and brief history of the
small areas on which small sales have recently been made is attached to
this letter.
Most of the small operators are underfinanced and consequently
cnsiderable difficulty has been encountered in making collections in
advance of cutting, as is required by the regulations. The theory under
which the small sales were approved was that they would afford
employment to Indians in harvesting their own timber and thus enjoy to
the fullest extent not only the money received from the sale of stumpage
but additional emoluments from the values added by their labor and good
training in initiative and business methods.
A clause now being inserted in the contracts that only dead and down
timber may be cut within two hundred feet of the highway tends to
improve the appearance of the sale area and at least keeps the debris
and slash necessarily caused by logging operations from bieng an eyesore
to the passing public. The administration of these small sales takes
the full time of one scaler, half of the time of the ranger in charge of
the north end, and practically one-third of the time of the Forest
Supervisor.
None of these sales, particularly to Indians, have been successful
financially to any marked extent. In fact, it is believed that the
Indians involved would have made a good deal more money by working for
wages at jobs available in the larger operations now progressing on the
Reservation.
On the Point Grenville, Mounts, Upper Track Creek and Quinaielt Lake
Units five sides are operating, and there are now twelve men, including
the two Senior Rangers, Briggs and McKeever, who devote most of their
time to branding, scaling and supervision. Three scalers have recently
been dropped.
The country is rough and difficult of access, travel being mainly by
logging train and on foot. It is impracticable to attempt to confine
logging operations to one allotment at a time. Consequently, it is
necessary to brand the logs so that, when scaled, they may be credited
to the proper allotment. Scaling in the woods would be extremely
dangerous to the personnel involved and, in addition, would not be as
accurate as the present method of scaling on the landing, owing to the
fact that the scaler in the woods cannot see both ends of the log and,
as the timber is often crisscrossed in felling, it is probable that many
logs would be missed entirely.
The General Timber Sale Regulations, approved 04/10/20, have been
made a part of each contract and carry the following clause :
"Section 22. For convenience in scaling the logs or other
products will be bunched as the scaler may direct on the land
where cut or at the landing or point of shipment and will not be
moved therefrom until he has scaled, numbered, and stamped them.
Logs that are moved contrary to the scaler's instructions will be
double scaled. Where a separate record of the scale of timber
from an allotment or other area is necessary, the logs cut from
such area will be marked by the purchaser with a distinctive brand
as prescribed by the officer in charge."
From the above it would appear that there is ample authority for
cutting the burden of this activity on the contractors in place of the
Indian Service. This seems the most feasible method of reducing the
expenses of administration and should be given serious consideration.
The distances between logging areas and the 'hot logging' being pursued
are such that it is virtually necessary to keep a scaler constantly at
each point where loading is in progress. To attain this objective, it
is necessary in many cases for the scalers to leave their headquarters
before seven A.M. and return after five P.M. At Neah Bay on the Makah
Reservation, the train leaves the camp at six A.M., taking about ninety
minutes to go out and returning to the camp about five P.M. The
distance covered is about eleven miles by rail, four miles in an
airline.
The country is so rugged and broken up and covered with debris that
the rate of travel on foot could seldom be expected to average more than
one mile per hour. It is observed that the scale reports and
controlling account are kept at Neah Bay. It is believed that the
logical place for all official documents such as original scale reports
is at headquarters at the Taholah Indian Agency in Hoquiam, as any
business must necessarily be transacted through the Superintendent of
that office. Ten-day scale reports could be mailed by the Forest
Supervisor and he could retain copies for his own use.
The Washington Pulp and Paper Company are running three sides with an
output of aobut seven million feet per month and, according to their
logging superintendent, they intend to continue at about this rate for
the next year or two.
An examination of the records shows that the eight per cent deduction
is by no means equal to the cost of administration. For the period
beginning January 1, 1935 and ending Sept. 31, 1937, a total of
60,065,760 feet B.M. was cut on the We-ach Unit, with a value of
$83,062.67, the eight per cent deduction amounting to $6,645.04 and the
cost of administration being $11,471.77, a deficit of $4,826.73. On the
Quinaielt Reservation during the months of Aug.and Sept., 1937, the
total volume cut was 17,278,220 with a value of $44,535.95, eight
percent deduction being $3,581.78 and cost of administration $4,336.89,
a deficit of $755.11.
The scalers all appear to be capable and to have a good knowledge of
their work and to be conscientious in carrying out their duties.
The results of recent check scales by Briggs and McKeever are as
follows:
No. of Original Check
Pieces Scale Scale Difference Percent
5049..........3,888,000...3,821,430....66,650........plus 1.7 I
consider that this is a very satisfactory showing, especially in the
very defective types of timber encountered. The writer checked a number
of individual logs with the different scalers and discussed methods with
them, and in the majority of cases was in close agreement with the
original scale.
Selective logging is being practiced in stands where hemlock, Douglas
fir, and spruce predominate. This is still very much in the
experimental stage and many people are of the opinion that there will be
an excessive amount of windthrow in the residual stand. In dense cedar
stands, it does not appear to be practical to attempt selective logging.
The soil condition is a light loan on top of either harpoan or heavy
clay, and the root systems of the trees do not penetrate deeply.
Consequently, when the protection afforded by the mature trees is
removed, the chances for survival of the remainder are considerably
diminished. The writer is of the opinion that no burning of slash
should be permitted as observation indicates that the burning does not
remove the fire hazard and merely delays the start of new reproduction,
if it does not kill the seed entirely and render planting necessary. It
is admitted that this opinion is in conflict with general practice and
also the state laws. The subject is a complicated one and requires
further study.
To sum up, it would appear that the timber sales under the
jurisdiction of the Taholah Indian Agency are being effectively
administered and that the interests of the Indian owners can be best
served in the long run by restricting as much as possible the practice
of making small sales.
Attached to and made a part of this report are Exhibit A, "List of
Small Sales', Exhibit B, Statements from Forestry Personnel as to Their
Respective Duties', and Exhibit 'C, 'Analysis of Controlling Accounts as
of Septmeber 30, 1937".
Respectfully submitted,
Patrick Gray
(Logging Engineer)
Concurred (ILLEGIBLE)
Superintendent of Taholah
Indian Agency
PG/me
enc
cc-Taholah
1. Ida May Bradford -- #711. Contract #920. This contract was a
trespass. There were 476,690 feet of spruce timber with a value of
$2,645.63 out under this contract. The last of this timber was removed
April 29, 1937.
2. Fred Woodruff -- #1446. Contracts 746, 756, 765, 767, 777, 879.
There were several small contracts ocvering all the spruce on the
allotment and the cedar north of the Olympic Highway. There were
167,500 feet of cedar and 793,060 feet of a spruce with a total value of
$2,638.89. The last of these contracts was finished 11/03/36.
3. Martha Gray -- #1101. Contracts 711, 774. There were 251,580
feet of source with a value of $317.64 out from this allotment. This
contract was finished August 31, 1936.
4. Adele Martin -- #1257. Contract #961. This is a new contract
covering the whole allotment and the cedar, spruce, hemlock, and fir on
the allotment. No timber has been removed.
5. Jonah Cole -- #1033. Contract #752. There were 213,790 feet of
cedar with a value of 741.02 cuts from this allotment. This contract
was finished October 5, 1936.
6. Joe Cole -- #1031. Contract 973, 989. This is a new contract on
which no timberhas been removed. A price of $3.90 was received on the
cedar on this allottment.
7. Arthur Yorkes -- #1447. Contract #877. There have been two
contracts on this allotment and some timber cut and removed which was
not under contract, 307,900 feet of cedar with a value of $1,347.74.
There is still due $165.89 on this allotment.
8. Caesar Yorkes -- #1448. Contracts 679, 717, 728, 739, 905. There
have been several contracts and some trespass on this allotment. There
were 1,175,550 feet of cedar with a value of $5,509.33 cut from this
allotment. There is now due $429.13 on these contacts. Mr. Yorkes has
paid up on this debt from time to time, but at present is still in the
red. His operation is now involved in the courts and it is very
doubtful if he will be able to resume operations in the near future.
Mrs. Sophia Yorkes, whose name appears on the contracts, said she will
pay this balance in full if and when the Millett claims in the Quinaielt
Lake Unit are signed up by these claims.
9. Milwaukee Trail Unit. Contract #970. There is an estimated
amount of some eight million feet of timber to be cut in this unit,
which is located about two and one-half miles south of the Olympic
Highway in Sections 28 and 33, T. 23, R. 11. There has been no timber
cut in this unit at present. The contractor, Mr. Morgan, is building a
road to the timber.
10. Josephine Elliott -- #1072. Contract #754 (878 not signed).
There have been 173,220 feet of cedar with a stumpage value of $519.66
cut and removed from this allotment. There is a balance of $323.68 yet
due. Mr. Elliott, who is logging his wife's allotment, has made very
little effort to keep his stumpage paid up. One contract has been
signed on this allotment.
11. Wilfred Bobb Salakike -- #1345. Contracts 928, 968, This was a
contract of a sale to an Indian. Soon after the contract was made, the
Indian contractor sold out to white men, who finished the contract
09/08/37. Timber in the amount of 576,520 feet, with a value of
$2,012.38, was removed.
12. Lelia Penn Sailto -- #1296. Contract #742. This contract was
between wife and husband, both Indians. There is still a samll amount
of timber cut and left on this allotment. We are making an effort to
get this area cleaned up. There have been 169,740 feet of cedar with a
vlaue of $509.24 cut and removed from this claim. There has been no
work done on this allotment since September 9, 1936.
13. Betsy Moses -- #207. Contracts 715, 716, 727. This contract was
a salvage of some cedar which was fire-killed in 1925. The contract was
completed 360610. 440,020 feet of cedar with a stumpage value of
$1,309.63 were removed.
14. Daisy Eastman Williams -- #1433. Contract 985. This is a cedar
contract of recent date. No timber has been cut on this allotment.
15. Edward Dewey Butler -- #990. Contract 748. This was a cedar
contract where 334,480 feet of timber with a value of $1,003.43 were
removed. This contract was finished September 22, 1936.
16. William Butler -- #992. Contracts 773, 786. There have been two
ten-acre contracts on this allotment; one having been completed and the
second will be completed soon. There have been 1,001,270 feet of timber
with a value of $3,540.45 removed.
17. Frank Harlow -- #114. Contracts 749, 923, 927, 984. There have
been several contracts on this allotment, the last of which is just
about completed. There have been 912,540 feet of spruce with a value of
$2,332.69 cut.
18. Henry Harlow -- #111. Contracts 937, 971, 938. This allotment
is nearly completed, only about two hundred thousand feet remain to be
cut. There have been 595,530 feet of spruce with a value of $1,696.59
cut and removed from this allotment to date.
19. John Shale -- #63. Contracts 740, 741, 744, 755. This was a
salvage contract on spruce which was very defective. There were 399,630
feet, worth $998.40, cut and removed. Contract completed July 30, 1936.
20. Martha Shale -- #64. Contract 766. This was also a salvage
contract on spruce; 408,180 feet with a value of $1,020.45 were cut and
removed. This contract was completed September 30, 1936.
21. Jennie Major -- #103. Contract 723. This was a small sale of
cedar salvaged from timber cut by the Highway Department, value $25.00.
James A. Howarth, Jr.
Willard N. Hamilton
Lenter C. McKeever
Paul H. E. Briggs
Celestin J. Hopkins
George J. Tucker
Thomas Riddell
O. E. Brooks
Ole H. Tronnes
Francis H. Jarnagin
F. P. Branson
Glenn D. Cotterill
W. A. Whitener
Mark D. Gentry
Charles Peterson
Francis Murphy
Clay C. Cogswell
J. W. Bryson
Ernest B. Cocneke
J. H. Quinn
Ben Allwanger
Mr. Patrick Gray
Logging Engineer, U.S.I.S.
424 Federal Building,
424 Spokane, Washington
Dear Mr. Gray:
As requested by you, I have asked each of the forestry men, including
those at Neah Bay, to report this week in writing a statement of their
present work and duties.
Here follows my own statement of duties and work as Forest Supervisor
for the Quinaielt and a number of smaller reservations. (Paul Brodersen
looks after the field work and regular reports for the Makah and I spend
none of my time there).
30 % Small timber sales; Interviews, appraisals advertising, making
contracts, inspections, etc.
15% Larger timber sales: interviews, readjustments, appraisals,
inspections, contract and bond modifications, (including Makah
modifications and assignments) tabs on collections, etc.
2 1/2% Employing scalers and assistants, instructing and assigning
their locations.
2 1/2% Trespass cases on Quinaielt and smaller reservations,
examining, appraising, reporting, collecting consulting the U.S.
Attorney, etc.
15% Fire control, including week end duty and general planning.
5% Map work, miscellaneous.
5% Right of way field and office work
5% Miscellaneous field work, not forestry
10% Preparing special reports called for by Washington Office.
10% Misscellaneous other office work too various to break down.
Emergency Conservation: Practically none of my time at present is
spent in planning or supervising this latter kind of work since the
present project manager works directly under the Superintendent.
Sincerley,
James A. Howarth, Jr.
Forest Supervisor
CORRECTION SHEET
James A. Howarth, Jr.
Willard N. Hamilton
Lester C. McKeever
Paul H. E. Briggs
Celestin J. Hopkins
George J. Tucker
Thomas Riddell
O. E. Brooks
Ole H. Tronnes
Francis H. Jarnagin
F. P. Branson
Glenn D. Cotterill
W. A. Whitener
Mark D. Gentry
Charles Peterson
Francis Murphy
Clay C. Cogswell
J. W. Bryson
Ernest R. Cocneke
J. H. Quinn
Ben Ellwanger
Mr. Patrick Gray,
Logging Engineer, U.B.I.S.
424 Federal Building,
Spoanoke, Washington
Dear Mr. Gray:-
As requested by you I have asked each of the forestry men, including
those at Noah Bay, to report this week in writing a statement of their
present work and duties.
Here follows my own statement of duties and work as Forest Supervisor
for the Quinnielt and a number of smaller reservations. (Paul Brodersen
looks after the field work and regular reports for the Hakah and I spend
none of my time there).
30% Small timber sales: Interview, appraisals, advertising, making
contracts, inspections, etc.
15% Larger timber sales: Interviews, readjustments, appraisals,
inspections, contract and bond modification, (including Makah
modifications and assignments) tabs on collections, etc.
2 1/2% Employing scalers assistants, instructing and assigning their
locations.
21/2% Trespass Cases on Quinaleit and smaller reservations, examin-
ing appraising, reporting, collecting, consulting the U.S. Attorney,
etc.
15% Fire control, including week end duty and general planning.
5% Map work, miscellaneous.
5% Right of way field and office work.
5% Miscellaneous field work, not forestry.
10% Preparing special reports called for by Washington Office.
10% Miscellaneous other office work too various to break down.
Emergency Conservation: Practically none of my time at present is
spent in planning or supervising this latter kind of work since the
present project manager works directly under the superintendent.
Sincerely,
James A. Howarth, Jr.
Forest Supervisor
Willard N. Hamilton, Clerk, $1980.00. Supp. of Indian and Adm. Ind.
Property.
1. Forestry.
Forestry Accounts:
a. Collection and distribution of timber monies including
preparation of official receipts and journal voucher.
b. Checking, proving, and posting.
c. Forestry ledgers, proved and checked against Senior Clerk's
D.O. Cash Accts.
d. Monthly accounts, check D.O. vouchers for expenditures,
Quinaielt, Makah check O. receipts and J. vouchers for timber
receipts. Quinaielt, Makah Forestry employee report, check form 5
-- 453, Employees monthly time distr. report. Preparation of
forms:5-486 Report of timber cut for active units. 5-486a timber
sale cost sheet. Cost accounts.
Reports:
Calendar year -- costs.
Readjustment -- assist Supervisor in preparation of misc.
Miscellaneous.
Correspondence Contractors, on matters of timber payments,
contracts, scale reports, personnel Indians, on matters of
allotment location, cruise, appraisal, contract revisions, powers
of attorney, etc. Personnel, on matters of changes, transfers,
past records, etc.
Filing timber records, scale reports, etc correspondence --
miscellaneous reports
Conference with office visitors on matters of forestry.
2. Agency
Property Accounting. Preparation monthly accounts in its
various phases. Annual physical inventory, including the office
work involved. Boards of condemnation, etc.
Miscellaneous: Checking and certification agency D.O.
vouchers, inclduing payroll. Assist on matters pertaining to
leases and revocable permits. Number local bears Civil Service
Examiners Special assignments by Superintendent and Senior Clerk.
W.M. Hamilton 09/29/37
Genreal supervision of the Quinaielt Lake and the small timber sales
along the Olympic Highway.
My duties are making all timber for selective logging, scaling, check
soiling, line running, making pickup, office work, cruising, land and
building appraisals, securing signatures on stumpage reduction,
contracts and various other papers and a small amount of non-forestry
work.
My time is distributed as follows:
Small sales..........50%
Quinaielt Lake.......25%
Office................5%
Misc. Forestry.......15%
Misc. Non-Forestry .. 5%
Lester C. McKeever
Mr. Pat Gray
Hoquiam, Wash.
Dear Pat:
Mr. Howarth requests that I mail you a statement of my duties and how
time is distributed.
My duties are of a supervisory nature in connection with timber sales
work. This consists of check scaling, relief man (in case scaler is on
leave or sick) checking log lengths, stumps, checking scale reports,
instructing scalers and assistants, also men in direct charge of sale
area. Often, too, there are appraisals to be made which include
cruising and placing a valuation on timber and lands. This constitutes
about 90% of my time. The balance of my time is taken up with gypo
operators who are cutting shakes and shingle bolts on the reservation.
About once a month a day is taken up on other reservations, surveying
or some such other non-forestry job.
Respectfully,
Paul H. E. Briggs
Neah Bay, Wash.
Sept. 29, 1937
James A. Howarth, Jr.
Taholah Indian Agency
Hoquiam, Washington
Dear Mr. Howarth:
In compliance with your circular request of 09/27/37, I am herewith
listing the various Forestry duties that take up my time at present:
1. Making the "pick-up scale" on areas being logged by three sides,
which are composed of two Lidgerwood skidders, one gas slackline, and
four cold-decking machines.
2. Check scaling.
3. Keeping survey lines well established.
4. Keeping in touch with cutting crews, their locations, stump
heights, log lengths.
5. Collecting taper data on one skidder setting, that is now being
felled and bucked into 72-foot log lengths (wherever practical) an
experimental plan of the contractors for increasing production in stands
of small timber.
6. Informing landing scalers on proper area segregation of logs
coming to their respective landings.
7. Keeping informed of railroad grade construction, which is
progressing about one mile each month and scaling all merchantable logs
used in culverts, fills, etc.
8. On Saturdays the camp does not work, but we always perform enough
Forestry detail such as making reports, checking scale books, repairing
equipment, etc., to take up at least four hours.
Yours respectfully,
Celestin J. Hopkins
Scaler
Sept. 29, 1937
Raft River Ranger St.
Mr. Pat. Gray:
In regard to a recent letter received, inquiring just what are my
duties at present.
Might state my main duties is scaling the small operation along the
Olympic Highway.
Mr. McKeever who is in direct charge does most of the marking and
runs most of the lines. But at times when he is not present, or when he
needs help I assist him in marking, running the lines for the various
small logging operations. Besides this, when it is necessary, make out
the required reports and do my forestry, as needed.
The schedule is as following. Of course, some days it vary, but it
is nearly correct. (Please note distance between operations).
Scale and mark .... Butlar Shingle Co 8 A M to 10 A M
4 miles west
Scale ............. Salakike 10:30 A M to 11 A M
5 miles east
Scale ............. Jackson 11:30 A M to 12:30 A M
7 miles east
Scale ............. Sandell 1:30 P M to 2:30 P M
8 miles west
Scale ............. Butler 3 P M to 3:30 P M
4 miles west
Scale & Mark ...... Salakike 4 P M to 5:30
5 miles east
Of course, book work, reports, etc., are done in the evening probably
require about one hour per day or more. Since the operations are small
it is necessary to make at least two scales a day, sometimes more, as
the trucks are loaded as soon as yarded.
The mill cut the timber up nearly as fast as a turn is brought in.
Mr. McKeever is here a great deal of the time when there is lines to
run, and more marking than I can do, he scales and marks, and then I
have time to help him run out the tract which is needed.
The following is the list of operators along the Olympic Highway:
Daily Out Put
(1) Cleveland Jackson ...... 40,000
(2) Leghton Salakike ....... 16,000
(3) Sophia Yerkes
(4) Butler Shingle Co. ...... 8,000
(5) Morgan and Co.
(6) Chas Salito
(7) David Baker
(8) J. A. Sandell .......... 25,000
(9) Josche Elliott
Hope this is the required information.
George J. Tucker
Scaler
CORRECTION SHEET DOCUMENTS IDENTICAL TO 1776-1777
September 29, 1937
Polson Camp No. 14
Hoquiam, Wash.
Mr. Pat Gray
c/o Taholah Indian Agency
Hoquiam, Wash.
Dear Sir:
In compliance to Mr. Howarth's letter of Sept. 27, I make reply
thereto.
My duties here as a Student Scaler occupy my time as follows:
About two thirds of my time is taken up by branding logs, and the
remaining time is taken up in running lines and practicing with the
scale stick at the landing, but the latter takes up but a small part of
my time for selective logging opens up new allotments much faster and
that keeps me at branding most of the time.
Thomas Riddell
117 (ILLEGIBLE) Ave.,
Hoquiam, Wash.
Hoquiam, Wa.
September 29, 1937
Mr. Pat Gray
Taholah Agency
Dear Sir:
Replying to your request for a statement as to my work, I am at
present scaling the "cat" side at Polson Camp 14, getting on an average
of 10 cars per day for an average scale of 72,000 bd. feet. This is a
selective logging show on allotments No. 177 and 178, using cats and
arches, hauling as far as 2000 feet. Timber is Douglas fir and hemlock,
containing about 15% defect.
Very truly yours,
O. E. Brooks
Polson Camp No. 14
Hoquiam, Wa.
September 29, 1937
Mr. Pat Gray
c/o Taholah Indian Agency
Dear Sir:
Replying to letter from Mr. Howarth, Jr., for a statement as to my
work.
At present over half of my time has been occupied at running
allotment lines and taking "pick up" on logged over land. The rest of
my time has been divided between looking over and see that the logs are
properly branded in the woods and helping branding them and that there
is no unnecessary breakage in felling the timber and stumps out at
proper height.
Respectfully
Ole H. Tronnes
Neah Bay, Wash.
Sept. 30, 1937
Mr. James A. Howarth, Jr.
Taholah Indian Agency
Hoquiam, Washington
Dear Sir:
I will reply to your circular relating to my present duties as
temporary scaler on the Makah Indian Reservation.
I scale from three to five hundred logs per day, the scale averaging
between 125,000 and 250,000 B.M. per day. The scale for the current
month being 2,512,410 B.M. The log count was 6,900. The scale for the
Skidder that I am scaling for the month of August was over 3,000,000
B.M. The log count being directly proportional. This work constitutes
on the average of nine hours per day, not including the two hours taken
going to and coming from work.
I also perform on Saturday various forestry details, such as nursery
work, etc. These duties take at least four hours.
Yours truly,
Francis H. Jarnagin
Neah Bay, Wash.
Sept. 30, 1937
Mr. J. A. Howarth, Jr.
Supervisor of Forests
Taholah Indian Agency
Hoquiam, Wash.
Dear Mr. Howarth:
Following is an outline of my work on the Makah Reservation at the
present time.
I leave the house at 6:00 o'clock A.M. to catch the train that leaves
at 6:15 A.M. We arrive back at camp at about 5:45, making a total of
over 11 hours from home to home, with 45 minutes out for lunch. Without
going into detail, I will give you the scale and logs for this month's
work. 385 loads, 9,856 logs, 3,300,780. An average of over 150,000 per
day for 22 days work. Then on Saturday morning we always do some
forestry detail around the Agency.
Yours truly
F. P. Branson
Neah Bay, Wash.
Neah Bay, Wash.
Oct. 1, 1937
Mr. James A. Howarth, Jr.
Dear Sir:
In answer to your letter of September 27, my duties consist of
scaling cars after the crane, for the Washington Pulp and Paper Corp.,
at Makah Reservation, daily except Saturday and Sunday.
Saturday's duties are miscellaneous forestry duties of not less than
four hours, such as caring for equipment, checking scale books, making
reports.
Yours truly,
Glenn D. Cotterill
Pacific Beach, Wn.
Sept. 30, 1937
Taholah Indian Agency
Dear Sirs:
My present duties for the Indian Service, Forestry Branch, are
scaling and branding.
Very truly
W. A. Whitener
Aloha, Wash.
Sept. 28, 1937
Mr. J. A. Howarth Jr.
Supervisor of Forests
Taholah Indian Agency
Hoquiam, Wash.
Dear Sir:
In regards to your letter of Sept. 27 about my duties and work. At
present I am in charge of Aloha Lbr. Cos. sales on the Quinaielt
reservation and my work consists of surveying allotments; making
penalty scale, checking and typing ten day reports, estimating felled
timber each ten days, checking scaling and supervising the marking and
scaling and any other work that might be necessary.
Mark D. Gentry
Scaler
Aloha, Washington
September 28, 1937
Mr. J. A. Howarth, Jr.,
Supervisor of Forests,
Taholah Indian Agency
Hoquiam, Washington
Dear Sir:
In regards to your letter of the 27th, I am marking logs and when I'm
not kept too busy at that I practice scaling on the landing.
Yours truly,
Charles Peterson
Aloha, Wash.
Sept. 28, 1937
Taholah Indian Agency
Hoquiam, Wash.
Dear Sirs:
In answer to your letter of the 27th I am scaling logs as they are
loaded onto cars in the woods and my time is fully occupied at this
work.
Yours truly
Francis Murphy
Moclips, Wash.
Sept. 28, 1937
Mr. James A. Howarth
Supervisor, Forestry,
Taholah Indian Agency,
Hoquiam, Washington.
Dear Sir:
The duties of the undersigned, Clay C. Cogswell, Scaler, U.S.I.S. are
as follows:
Surveying allotment lines.
Scaling for the crane when and wherever it is loading logs or poles.
Checking fallers and buckers for high stumps, unnecessary breakage,
splits, long lengths and waste through improper bucking.
Checking the branding and making the branding reports and maps for
the landing scalers.
Checking logged off area for merchantable timber left on sale area by
logging operator and reporting the same in the pick up books and in the
scale books and the ten day reports.
Checking books, daily scale reports with ten day reports by
allotments.
Check scaling and scaling or branding if scaler or assistant scaler
are on leave or assigned to duties elesehwere.
Making necessary repairs to Moclips, Taholah telephone line.
Yours respectfully,
Clay C. Cogswell
Scaler, U.S.I.S.
Quinaielt Res.
Pacific Beach, Wn.
Sept. 28, 1937
Taholah Indian Agency
Forestry Dept.
Hoquiam, Wn.
Dear Sir:
My duties in the woods now is branding and scaling and watching out
for fires.
Yours truly
J. W. Bryson
Pacific Beach, Wash.
Sept. 28, 1937
Mr. James A. Howarth, Jr.
Forest Supervisor
Taholah Indian Agency
Hoquiam, Wash.
Dear Sir:
My present duties consist of scaling at M. R. Smith Lbr & Shgle Co.
in Moclips.
Sincerely yours,
Ernest R. Soeneke
Sept. 28, 1937
402 Chenault St.
Hoquiam, Wash.
Dear Sir:
My duties in the forestry department is scaling logs. Eight hours a
day and book work after hours, which only requires a few minutes if a
person has no trouble.
I remain
Truly yours,
J. H. Quinn
Pacific Beach, Wash.
Sept. 28, 1937
Mr. J. A. Howarth, Jr.
Supervisor of Forestry
Hoquiam, Washington
Dear Sir:
In regards to your request of Sept. 27, I wish to inform you that my
duties at the present time consists of log scaling on the Aloha sale,
Quineielt Indian reservation. Also, assisting the ranger with penalty
scale, instructing Indian apprentice scalers and working in the branch
office when necessary.
Respectfully,
Ben Ellwanger
Scaler
HES-003-1758-1795
HES-003-1758-1795
IIA37.1
COMM OF INDIAN AFF SUPT ; TAHOLAH INDIAN AGE
361002
CORRESPONDENCE
; TAHOLAH INDIAN AGE
Mr. Lee Muck,
Assistant Director of Forestry,
424 Federal Building,
Spokane, Washington.
Dear. Mr. Muck:
This is the general history of Indian logging on the Quinaielt Indian
Reservation and individual history of the several sales which you
requested of me a few days ago.
This history dates from the request early in 1932 of Ernest C.
Wilson, allottee No. 1443, to log the cedar from his allotment E 1/2SE
1/4 9/23/11. At that time he did not state that he intended to clear
the land to live on it and I told him that the Washington Office and
ourselves of the Hoqiuam office were opposed to operations of this
character. Late in the year Ernest and his sister, Dorothy J. Wilson
and their father, Clyde Pape came into the Office seeking right of way
to the Ernest C. Wilson allotment and the Dorothy J. Wilson allotment,
No. 1444, W 1/2 SE 1/4 9/23/11 and permission to clear for home the
latter allotment. I told them their land was not suited for a home and
farm notwithstanding it had been allotted them for that purpose but that
if they insisted they wanted to make the bona fide attempt I would issue
a five acre permit to log and clear and after a fairly good house had
been built and the five acres cleared sufficiently to indicate their
bona fide intention to make the land into a farm we could give
additional permits to log and clear. Our letters of Dec. 7 and Dec. 21
to the Office were written because we expected trouble to develop from
the applications and to be set right if we had taken the wrong attitude
toward the proposed logging and home building. Also I set about to
secure the desired right of way for them.
I was transferred to Klamath Reservation in June 1933 before any-
thing more developed in this case. Soon after my return in June 1934
the superintendent told me he had discovered a road leading into the
Dorothy J. Wilson allotment and a shingle mill in operation there. This
I investigated and found Ernest C. Wilson getting out cedar bolts from
the Dorothy J. Wilson cedar and delivering them to a shingle mill on her
allotment which he represented as being hers. This had been initiated
without further consultation with our office after the 1932 requests and
letters and in spite of the Office reply that we had taken the right
position in letters mentioned.
Because the new administration held views regarding the Indians that
were in many ways different than the previous administration we
presented the facts to the Office and asked instructions, under date of
09/04/34. Office reply of 09/10/34 required that they enter into some
sort of contract and asked if they had a right of way. The right of way
was completed and forwarded 01/04/35 but was returned by the Office not
approved under date of 02/01/35 with advice that revocable permits
instead of rights of way be submitted if we thought essential. The
letter again required a contract. It took many months to get signatures
to an acceptable form of contract which was finally approved by the
Department 01/06/36, and required that we mark for selective logging the
green cedar on the south forty acres of the allotment of Dorothy J.
Wilson that Mr. Pape, the owner then of the mill, report monthly the
cedar shipments and that Dorothy J. Wilson each month send us receipts
for the stumpage money paid her by Mr. Pape at 30[cents per square
produced.
Bud Yerkes logging of cedar on the allotment of his minor son Caesar
James Yerkes, 1448, W 1/2 SE 1/4 15/23/11 was the next operation and
opened with the effort of George H. Butters (who for about three years
had been operating a shingle mill further up the highway on a fee
patented allotment) seeking a new site for his mill on this allotment of
Caesar's on Lunch Creek. Bud Yerkes wanted to put up a store and gas
station there and clear a few acres for home and also to log dead and
down cedar from his sons' allotments and deliver to the Butters mill.
This was all presented to the Office in our letter of 03/29/35 in which
he recommended against the mill site lease and said that we anticipated
much grief if the cedar operation started and that there would be
pressure from other Indians to log and sell cedar bolts.
On 04/08/35 the Commissioner referred the requests to Mr. Lee Muck
and stated that if he approved the plan only dead and down cedar should
be cut. Soon afterward Mr. Muck looked over the proposition on the
ground and discouraged Mr. Butters in his plan to move the mill but was
agreeable to dead and down cedar logging by Bud Yerkes. Accordingly
contract I-101-ind-697 was approved by the Superintendent on 05/20/35
between the parents for their minor son, Caesar and as loggers, and
Butters Shingle Company, a partnership, as buyers of cedar bolts,
estimated at 1000 cords more or less and at a price of $1.00 per cord
reading for "dead and down and green cedar from home site clearing and
dead and down cedar from balance of allotment of Caesar James Yerkes."
Our letter of 05/25/35 to Mr. and Mrs. Yerkes stated that there should
be a bona fide clearing up of the two acres (laid out next the highway
for a home site) suitable for a home and garden. As you know, this
clearing has never been done.
In my letter of 09/25/35, concerning this sale I wrote "we antici-
pated that many Indians would want to follow the lead of the Yerkes
family and log their cedar and therefore we advised the parties that we
were experimenting in this case and would not for some time at least
approve any more contracts of similar nature" -- "The contract was made
after a visit here by Mr. Lee Muck who looked over the proposition with
us and agreed that it would be well to let one of the allottees try what
success he could make of logging his dead and down cedar".
On 08/26/35 we presented to the Office thru Mr. Lee Muck, the re-
request by Bud Yerkes to log green cedar and put in a shingle mill. We
recommended disapproval. About 09/18/35 Messrs. Robert Marshall and Lee
Muck looked into the propositions on the ground. As a result of the
decisions then made on the ground we submitted on 10/01/35 cancell-
ation of earlier contract, I-101-ind-697 for dead and down cedar with
Butters Shingle Company and in lieu thereof two new contracts as
follows:
I-101-ind-716 between Bud and Sophia Yerkes, acting for their
son Caesar and for themselves as loggers for selective logging of
175 7 of live cedar on 12 acres at price of $3.50 per 7 and
I-101-ind-717 between Bud and Sophia Yerkes and the Butters
Shingle Company for 320 cords of dead and down cedar, the amount
figured to be due to complete the cancelled contract and at the
former pride $1.00 per cord.
Our letter of October 1, 1956 to the Office read that "The selective
logging contract covers about 12 acres in the NE corner of the
allotment. -- The cedar is big timber that is overmature and
deteriorating. The stand was looked over recently in company with
Messrs. Marshall and Muck of the Indian Service forestry branch and they
favored this Indian logging contract. -- The contracts are accomplished
as on experiment in ability of Indians of this reservation in logging
and business."
10/17/35 letter of Mr. Lee Muck to Mr. L. D. Arnold Assistant Dir-
ector of Forestry read "that the change in contracts effected by the
superintendent -- is the outcome of a conference between Mr. Howarth,
Mr. Marshall and myself during our recent visit to the Taholah Indian
Agency and that the contracts as drawn meet with our approval".
A reason for cancelling the first contract with Butters Shingle
Company was because of the belief of Mr. Butters that all the dead and
down cedar on the allotment was sold to him and to which interpretation
we were all opposed.
I-101-ind-728 was additional contract similar to 717 confined to live
cedar because the dead and down contract with Butters was still not
completed. This contract was dated 11/14/36 and covered not to exceed
275 M on 12 acres in E 1/2 SW 1/4 SE 1/4 15/23/11 south of highway.
Selective logging was provided.
I-101-ind-739 was the next contract submitted to cover all the
remaining dead and down cedar and live cedar for selective logging from
the Caesar J. Yerkes allotment. This large contract was disapproved by
the Assistant Secretary of the Interior 03/10/36 with instructions that
contracts be limited to ten acres. Because we had agreed with Mr. and
Mrs. Yerkes that, in event of the large contract being turned down for
reason of covering too much timber, we would execute a smaller contract
within the authority of the superintendent to approve we then executed a
ten acre contract for an estimated $375.00 of cedar and gave it the same
date and contract number as the unapproved contract above (739). This
new contract was drawn between "Caesar James Yerkes, a minor, by Dud
Yerkes, father and natural guardian" etc "party of the first part and
Sophia Yerkes, mother of Caesar James Yerkes as logger, party of the 2nd
part".
The reason for naming Mrs. Yerkes as the logger in these contracts
was that Dud was in the hospital and expected not to live long. The
Office letter of 03/10/36 read that "Superintendent should sign the
contract for and on behalf of the minor allottee". We interpreted this
as not mandatory but rather in view of the anticipated death of the
father.
Mr. Dud Yerkes again requested to put in a shingle mill which was
presented to Mr. Muck on his visit here early in Apr. 1936. Since the
proposed mill was to be small and so-called portable type it was
believed that such a mill to carry out for himself his cedar
exploitation would not require lease and prior approval of the Office.
Accordingly he was permitted to place such a mill on the allotment and
he negotiated a contract therefore with J. W. Womer of 921 W. Cushing
St., Aberdeen, Washington. But the contract turned out to the
disadvantage and loss of Mr. Yerkes because Mr. Womer after collecting
for and shipping a considerable quantity of shingles left these parts
with labor and other bills reported unpaid. Mr. Yerkes now operates the
mill and has made arrangements to acquire title to it. All along Mr.
Yerkes has been financed by Mr. H. Kobayashi, a Japanese of this city.
He has continued to back him but with less promptitude since the
disappearance of Mr. Womer.
But at the time of Mr. Womer's skipping out the contract was much in
arrears in stumpage payments so we shut down the operation till these
payments should equal or exceed the timber scaled. This was a new
procedure because the contract forms had lent themselves to payment so
many days after the Indian logger delivered his product. They had been
drawn theretofore favorable to Indians, without cash for advance
payments, to log and deliver the product and we arranged with the buyer
for payment of the stumpage. This was a risky way to do but we believe
it is the way that Indian logging contracts were always handled
elsewhere and heretofore in the Service. As stated the contract form as
drawn apparently contemplated this procedure.
Mr. Yerkes, or rather his wife who has the contract in her name has
not been permitted to resume delivery of Caesar's bolts to the mill
since the shut down dated 06/24/36. Considerable has been paid on
account but we are now intending to require advance deposits on this
contract as per Office letter of 09/01/36. It should be bourne in mind
that the cedar bucked ahead in the woods and scaled and reported more
than covers the amount that is due for stumpage which amount at this
date is $442.48.
For several months past Mr. Yerkes has been operating his shingle
mill on stumpage from the Jonah Cole allotment on which he has contract
but as to which we have consistently from the beginning required advance
deposits to cover stumpage. This contract will be discussed later in
this history.
In 1935 we made some dead and down cedar sales from a fire killed
area near the Butters mill. After advertising Mr. Butters bid in this
cedar the first time and Dud Yerkes bid it in the next time. Mr. Yerkes
however permitted Mr. Butters to take out the cedar under contract made
in name of Dud Yerkes. The prices were $1.00 per cord under the first
contract, and $1.65 under second contract. A third advertising at the
latter figure was bid in by Butters Shingle Co. at advertised price.
These contracts were numbered and dated as follows: June 11,
1935-I-101-ind-698; --and Sept.15,'35-I-101-ind-715; --and Dec 4,
1935-I-101-ind-727. Each contract was for 200 cords. They were on
Another small contract to clean up along the highway beyond Queets
was entered into, after advertising, with date of 11/04/35, I-101-ind
723 between heirs of Jennie Major, No. 108, on lot 9 and SE 1/2 SE 1/4
27/24/13. It sold for $1.00 per cord for estimated 25 cords. The
timber was trash left on the ground after highway construction in 1929.
The buyer was A. Ashenbrenner with small shingle mill off the
reservation about three miles beyond Queets.
Mrs. Josephine J. Elliott, allottee No. 1072, W 1/2 SW 1/4 15/23/11
is a sister of Mr. Sophia Yerkes and started in to log her cedar and
sell to the Japanese, H. Kobayashi without consulting our office. We
wrote her on 11/27/35 with copy to the Jap buyer to cease operations.
On 12/02/35 she came into the Office and said that she desired to build
a home on her allotment, which was on the highway a quarter mile beyond
the Caesay J. Yerkes allotment. I explained that I could give her a
permit for clearing a small area for constructing the home and I gave
her such a permit limited to a quarter acre only. Also I told her that
it had been agreed between Messrs. Marshall and Muck and Nicholson and
myself that the Yerkes cedar operation was an experiment and no more
like it would be permitted for a long time. However those working for
her (she living then in Astoria most of time) continued to expand
operations but on a small scale and Mr. Elliott claimed that the Indians
who had sued for allotments and won them before Judge Cushman were not
bound by our regulations and did not have to sign contracts. Contract
I-101-ind-764 was eventually entered into between wife and husband and
forwarded the Office 06/25/36. As was stated in that lett- er they are
the ones in whom I have most faith in their bona fide intention to live
permanently on their allotment and try to make a farm of it.
Mrs. Leila Penn Sailto allottee No. 1296, NE 1/4 SE 1/4 7/23/11 is a
sister of William E. Penn who has had so many contracts to log. This
case opened up with a letter from Mr. Penn to the Superintendent saying
that they had decided to log this down cedar. The letter was referred
by the superintendent to Mr. F. E. Briggs to show them the lines. On
03/02/36 I issued to Mrs. Sailto a permit to cut and sell 60 cords of
cedar, down timber only. The letter signed by Mr. H. O. Nicholson which
accompanied the permit read in part "Please note that only cedar already
on the ground is covered in this permit".
They started in soon after to log standing dead and green trees. On
03/27/36 we wrote Mrs. Sailto insisting that she "live up to the terms
of the permit and no more standing trees either dead or green be fell-
ed." This brought Mrs. Sailto with her husband and brothers Fred Penn
into the office here on 03/31/36. My one page letter to the superin-
tendent of same date tells the story and how she said she would keep
right on logging. (A copy of that memorandum is attached.)
Because of our opposition to more contracts like the Yerkes contracts
and because of their desire to be free from restraints to their logging
there was a meeting at Queets on the evening of 03/25/36 at which the
Indians decided to finance a test case if we continued to prevent their
logging their allotments and selling the products.
On 03/27/36 we wrote Mr. Muck advising that he contact Mr. Marshall
and both be here soon because the Indians were determined to make a test
case of our authority to prevent their logging their allotments and
selling as they chose. Shortly thereafter, Mr. Muck visited the
reservation without Mr. Marshall. It was his opinion that we probably
could not prevent the Indians going onto their allotments to log and
sell the products so we should try to keep them within regulations as to
how they conducted operations and that it was the policy of the present
administration to encourage Indians in industry.
Accordingly we took a new attitude toward those who desired their
timber out and have approved or recommended approval of contracts where
the allottee or another Indian would do the falling and bucking. But
bonds were nor required not advance payments nor had the new regulations
been approved.
Contract I-101-ind-747 between Mrs. Leila Penn Sailto and her husband
Charles Sailto was executed and forwarded to the Office 05/06/ 35. The
contract provided that the husband would fall and buck. It reads to
cover "all the dead and down cedar merchantable for shingle or Jap
export material and all the live cedar marked for falling by a
representative of superintendent, Taholah Indian Agency, for selective
logging, with clear cutting on an area of about two acres for home site
purposes". The area was limited in description to ten acres and the
estimate was 300 7 more or less, price $3.00. Work on this contract has
been 100% Indian.
Jonah Cole on 06/12/36 entered into contract I-101-ind-752 to sell to
Dud Yerkes 140 M more or less of "cedar bolts cut by himself from trees
marked for logging by representative of the Superintendent, Tah- olah
Indian Agency, "from 10 acres of his allotment on the highway. He
turned over his part of the contract to fall and buck to Dud Yerkes.
Because the latter had been slow pay on the contracts on Caesar's
allotment we required under this contract that he pay in advance of
removing material, and he has been held to this. He installed a gas
donkey to yard bolts out there felled and was recently intending to
install a steam donkey to yard longer lengths for bucking at the
landing. This we have forbidden by letter of Sept. 25, 1936.
Edward Dewey Butler, allottee No. 990, minor son of Lawrence Butler
entered into contract I-101-ind-748 on 05/06/36 with his father, the
latter to fall and buck an estimated 300 M of dead and down cedar and
live cedar marked for selective logging, at price of $3.00 per M. Bolts
were sold to the Butters mill on adjoining land. Believing the next
contract should fetch $4.00 we set that price and same was not executed
because Mr. Butters would not pay more for the bolts.
HES-003-1796-1802
HES-003-1796-1809
IIA36.2
MUCK, LEE
360331
CORRESPONDENCE
HOWARTH, JAMES A ; TAHOLAH INDIAN AGE
Supt. N. O. Nicholson:
This afternoon Mrs. Leila Penn Sailto with her husband and Fred Penn,
her brother, were in our office and talked with Mr. F. E. Briggs and
myself about the logging of her allotment. They had received our letter
of last Friday telling her that her permit covered only down cedar and
that we had found that she was logging a lot of the standing green cedar
and she must cease the logging of the standing timber.
She said that she had made arrangements to get a donkey to log all
the timber on the forty acres, that other Indians on the Olympic Highway
were logging their entire allotments. I told her that last fall we had
agreed, (Mr. Muck and you and I) that we would not allow more Indians to
start up logging operations on their land than those then planned,
meaning general logging operations but that we would give permits, to
any who wanted to build homes on their land, to clear about two acres,
and we would give her such a permit. She said that it would not pay her
to put in the donkey she had arranged for just to clear two acres and
she was going to cut the whole forty acres.
She said that she wanted an order from you to stop logging and until
she got such an order she was going to tell her men to keep right on
logging. I told her that your letter of 27th was such an order to quit
logging the standing cedar but she said, No, that you would have to
write her again telling her to quit, and then she left the room.
Fred Penn and Mr. Sailto stayed a while and were more conciliatory.
Mr. Penn was spokesman and agreed that they would wait till Mr. Muck
arrived and they wanted him to either come to Queets some evening to
talk with all the Indians who want to log their own allotments or they
would come down to our office to see him.
James A. Howarth Jr.
William Butler, allottee 992, entered into contract No. I-101-772 on
08/03/36 with Butters Shingle Company to fall, buck and sell at stump
300 M of cedar, dead and down and green for selective logging at $3.50
per M from NE 1/4 lot 9 sec. 4/23/12. This allotment is more than a
quarter mile from highway. It is however adjacent to Butters mill. It
is the first $3.50 cedar that the mill has bought under the many Indian
contracts.
On 09/25/36 contract I-101-ind-777 was executed between Frederick
Woodruff, allottee 1146, and William E. Penn, a Queets Indian, selling
dead and down cedar only from a portion of Woodruff allotment along the
Olympic Highway to be felled and bucked by Mr. Penn who agrees that half
the labor to point of delivery on Grays Harbor shall be Indian. Also on
this contract with value under $500.00 we required $100.00 in lieu of
bond and a like amount as advance payment.
There are two contracts entered into some time ago on which no work
has yet been done and which we under todays date have written that
advance deposit in lieu of bond be placed in (ILLEGIBLE) hands before
operations start up and deposits in advance of felling be also made on
them. These are as follows:
Cedar contract I-101-ind-773 between heirs of Harold George No. 2 and
David Baker, which contract along the highway was approved, with
reservations regarding logging the live cedar, by Mr. Muck on 08/20/36.
This is Allot. 1089.
Spruce contract I-101-ind-779 between Mrs. Jennie Martin and William
E. Penn for selective logging of 525 M of spruce from allotment 1254,
being on ten acres NE 1/2 SE 1/4 24/23/11. This ten acres is over one
quarter mile from the Olympic Highway.
We doubt that the deposits will be made on either of these contracts
and if not made they will be cancelled.
John Shale, allottee 63, in 1932 was trying to find a buyer for his
spruce at the mouth of Clearwater River 65 miles from Grays Harbor by
highway, the reasons being that the river and the spruce bud worm were
fast getting his spruce. In 1934 Ind Esses, who buys and logs much
spruce north of Hoquiam, looked over this spruce of John Shales and
considered it not worth $1.00 per M stumpage then. When the
Indian-delegates from here were in Washington in Jan. 1936 they took up
the matter of selling the Shale timber (John's and Martha's) to salvage
it and informed me on return that the forestry section was favorably to
a salvage proposition.
Mr. Shale had about three parties look over his timber and talk
matters over with us and finally he brought in J. A. Sandell a white man
from Forks to sign contract I-101-ind-744 on 04/16/36 without
advertising, stumpage payments for all merchantable grades 1, 2, 3 to be
$2.50 per M, and John Shale to fell and buck the timber, estimate 275 M.
Another similar contract for 500 M, I-101-ind-755 was dated 06/06/36.
Money for felling and bucking was by this, as with other similar
contracts that we made, payable by the buyer direct to the Indian in
charge of falling and bucking. But Mr. Shale, when he was paid this
falling and bucking rate by Mr. Sandell, did not pay his fallers and
buckers but spent the money for other purposes. This he did on two
different occasions and each time it became necessary for us to go to
his assistance and figure his bills and draw checks from his funds in
the office to be individually endorsed by John Shale to the several
fallers and buckers. In the wind up of the operation Mr. Sandell had to
pay direct to the fallers and buckers for their later work. John Shale
filed saws and did some of the falling and bucking along with one of his
sons.
The Martha Shale spruce, allotment 64, was also contracted to Mr. J.
A. Sandell, I-101-ind-766 on 07/06/36. The estimate was 1000 M and
price $2.50. Sale was approved by the Assistant Director of Forestry.
Reasons for sale were as with the adjoining sale of John Shale spruce,
encroachment of river and the bud worm.
Neither allotment was adjoining a highway and both were across the
Clearwater River necessitating that Mr. Sandell build a bridge over this
river. Being a salvage proposition and the land river bottom suited for
agriculture we did not make these selective logging contracts, but all
merchantable trees were logged.
Frank Harlow, allottee 114 was very industrious hunting up prospects
to buy his spruce and eventually contracted ten acres of it to George H.
Butters (of the Shingle company before mentioned) in NE 1/4 lot 17 sec.
29/34/13 estimate 350 M at $2.50 per M for all merchantable No. 1 and 2
and 3 grades; I-191-ind-749 approved 05/11/36. For over three months
Mr. Butters did nothing with the spruce and could not see how he could
come out even on it. After waiting so long Mr. Harlow brought in Mr.
Sandell who was about done on the Shale allotments and signed up a
contract with him and Messrs Butters and Harlow signed cancellation of
their contract. This was all done with the understanding between the
three parties and ourselves that if both the cancellation and new
contract were not approved Mr. Sandell would work under the Butters
contract because he wanted to start on the road about 3/8 mile long to
get out the spruce. The new contract was not approved nor the older one
cancelled and the contract is now about completed as the Butters
contract.
The Sandell contract was not approved by the Assistant Director of
Forestry because it did not provide among other things for cash deposit
in lieu of bond and for advance deposits on timber to be cut. The
operation was closed temporarily till all these deposits were made and
then was allowed to continue under the Butters contract which however
had not called for these advances.
About ten days ago Messrs Lee Muck and Pat Gray were here looking
over the cedar and spruce sales. They thought that the Harlow spruce
should fetch more money and accordingly we advertised by posters and
circulars another 500 M of the spruce on the west half of the lot 17 at
a price of $3.00 bids to be received at 2 o'clock Sept. 30. No bids
were received. Distribution of the advertising was in the post offices
of Clearwater (about two miles from the timber) and Hoquiam and to
Messrs. Sandell, Butters, William E. Penn and Ind Esses, the latter
doing a big contracting of spruce up the Olympic Highway near Quinaielt
Lake. Below are estimates of the worth of this spruce of Frank
Harlow's.
The first 173,574 feet of this spruce to reach market here brought
these prices.
grade ..... pieces ..... scale ........ at ...... Amt. Recd. 1
........... 1 ...... 3,162 ..... $20.00 ..... $ 63.24 2 ..........
44 .... 111,921 ...... 15.00 ...... 1678.81 3 .......... 34 .....
58,591 ....... 9.00 ....... 527.32
Totals ......... 79 .... 173,674 .................. $2269.37
Average price ........................... $13.07
COSTS The first cost was a road on which $1,000.00 was spent.
$1.00 per M paid Frank Harlow to fall and buck.
5.97 union rate for trucking logs to Grays Habor about 65 miles
.50 booming .07 scaling .13 discount of 1% by buyer.
2.00 to skid and load would be a fair contract price but Sandell
owns the cat and does much of this work himself.
$9.67 subtotal excludes stumpage and road cost. $9.67
3.00 stumpage ................................... 2.50 (old price)
3.53 road cost on 500 M ... ($1.43 on 700M) .... 1.00 on 1000M
$16.00 total cost .............................. $13.17 total
13.07 selling average .......................... 13.07 selling
$2.93 per M loss on one sale 300M at $3.00 stumpage per M loss on
sale of 1000M at $2.50 stumpage ten cents.
Note: There is an estimated 1482 M of spruce on the whole allotment
and selective logging it is estimated would result in removal of 1000 M.
There seems no profit in this spruce even at $2.50 per M.
Comparing the stumpage prices above covering all merchantable logs of
grades 1 and 2 and 3 with the prices for similar timber and same
approximate distance I call attention to the sale of about 3 million
feet of spruce up the "Kelley" or Upper Queets road north of the
reservation and approximately the same distance as Harlow timber from
Grays Harbor. Only numbers 1 and 2 grades were required to be taken and
paid for and the price for this outside timber was $1.50 per M. Buyer
was Maynard Jones who was working with William H. Penn to get out the
Frederick Woodruff spruce.
Frederick Woodruff, allottee No. 1446, contracted 300 M of his
spruce, I-101-ind-746, at $2.50 per M to William E. Penn, Indian of
Queets on 05/04/36. A subsequent contract, I-101-ind-756 of 06/30/36
was for 200 M at same price. A third contract, I-101-ind-767, dated
07/08/36 was for 200 M again at same price. A fourth and last contract
was for 500M and a price of $3.25 advocated by Mr. Lee Muck while here
on 07/20/36. This was contract I-101-ind-765, dated 360723. This
allotment was on the highway about 13 miles nearer town than the Harlow
and Shale Spruce. The timber was selectively logged.
The Bessie Gray Johnson allotment No. 1104 was contracted 08/05/36,
I-101-ind-770 to William E. Penn, Indian, for 150 M of spruce at $3.25
per M, total $487.50 and approved by superintendent. It called for
selective logging on ten acres, NE 1/4 SE 1/4 NE 1/4 24/23/11 on which
all the spruce of the allotment was located. Contract was completed
some weeks ago.
The Jennie Martin spruce contract to William E. Penn was mentioned on
page 8 of this report. Mr. Penn reports the costs too high for the
small volume well back from the highway and we believe that it will
eventually have to be cancelled.
Special reference is made to Office letter of 09/01/36 which reads
with reference to the Indian logging contract form where John Shale sold
spruce logs and not spruce stumpage, the logs being cut by himself, to
J. A. Sandell, a white man. Office letter read "that it would appear
that the timber should have been advertised in accordance with section
10 of the regulations" approved 05/18/36. Referring to that paragraph
shows it to require advertisement of "all sales of tim- ber". No
mention is made of sales of logs or other products cut by Indians.
Referring again to the earlier regulations which the new ones supercede
I note that the regulations approved 06/29/27 read in para- graph 16
word for word the same for first half paragraph. Also the Green book
approved 02/05/18 in paragraph 15 read the same exactly as the last
mentioned above.
It has been my understanding that under the earlier regulations of
similar wording it was not required that advertising was necessary in
sales to whites of products cut by Indians from Indian stumpage. Since
the above instruction there has been advertising where whites were
solicited to buy the products of the Indian labor. However we do not
see good reason for the distinction since ultimately whites are the
consumer buyers of all the products and the result of the rule will be
that the whites will find an Indian to be the party of the second part
to the contracts and the latter will buy the products from the first
Indian who makes bolts or logs from his own timber. The Indian party of
this second part will contribute little if anything to the total work
and be free to sell to whites.
As stated earlier in this history we started out with sales on the
Dud Yerkes allotment operation restricting to dead and down cedar except
in the few acres that were to be clean cut and later well cleared for
home site and farming use. Not until Mr. Yerkes had personally
requested of the Director of Forestry permission to log green cedar and
had his approval to selectively logging it did that kind of logging
start except that I find I did issue to Dud on 08/29/35 permit to cut
two cedar green trees from Arthur Yerkes allotment. It was not until
after the meeting of the Indians at Queets on Mar.1925 of this year and
the subsequent visit of Mr. Muck that general ban against logging by
Indians and involving logging of green timber was raised. Thereafter we
made contracts with all who applied and where the Indian was to do the
falling and bucking or looking after it as did Mr. Yerkes on the Caesar
allotment. Contracts thereafter made were for selective logging either
the cedar or the spruce green timber except as noted that the Shale
spruce contracts were a salvage proposition taking all that was
merchantable.
The new General Forest Regulations dated 04/23/36 were received here
06/06/36. On that same day I prepared a letter that was signed by the
Superintendent in which we set forth reasons for our construing the
paragraph 22 as applicable to tribal lands only and saying that unless
"and until otherwise instructed we will mark the cedar and spruce for
selective logging of the larger timber including dying and healthy
trees. No decision having been had we again wrote enlarging on the
subject on 08/03/36. We did tell several of the Indians that we might
any day have instructions that we must forbid the cutting of any green
trees, except where actually dying, that were within a quarter mile of
the Olympic Highway. As a result of this information came the meeting
in protest at Taholah on 08/15/35 and our letter transmitting the
resolutions, (letter 08/19/36).
Reviewing this letter as written thus far I note that I have
neglected to say that we advertised the timber wherever it was a
stumpage sale and not a sale of products. For example we advertised the
sale to Mr. Butters of the Betsy Moses dead and down cedar stumpage and
the sale of small roadside cedar waste to Athenbrenner. But from the
very first sale early in 1935 on the Caesar Yerkes allotment made to the
Butters Shingle Company of dead and down cedar we did not advertise when
the cedar was to be made into bolts by the Indians. Other similar sales
to this company later made were not advertised when the allottee
contracted to deliver bolts or logs and not sell stumpage.
In the next few days we will endeavor to put all the active sales,
made before instructions came out to that effect, on a basis of advance
deposits.
Respectfully reported,
James A. Howarth Jr.
Forest Supervisor.
Read and Forwarded
N. O. Nicholson,
Superintendent.
HES-003-1803-1809
HES-003-1796-1809
IIA36.2
NICHOLSON, N O
361002
CORRESPONDENCE
; TAHOLAN INDIAN AGE
Mr. Lee Muck,
Assistant Director of Forestry,
424 Federal Building,
Spokane, Washington.
Dear. Mr. Muck:
This is the general history of Indian logging on the Quinaielt Indian
Reservation and individual history of the several sales which you
requested of me a few days ago.
This history dates from the request early in 1932 of Ernest C.
Wilson, allottee No. 1443, to log the cedar from his allotment E 1/2SE
1/4 9/23/11. At that time he did not state that he intended to clear
the land to live on it and I told him that the Washington Office and
ourselves of the Hoquiam office were opposed to operations of this
character. Late in the year Ernest and his sister, Dorothy J. Wilson
and their father, Clyde Pape came into the Office seeking right of way
to the Ernest C. Wilson allotment and the Dorothy J. Wilson allotment,
No. 1444, W 1/2 SE 1/4 9/23/11 and permission to clear for home the
latter allotment. I told them their land was not suited for a home and
farm notwithstanding it had been alloted them for that purpose but that
if they insisted they wanted to make the bona fide attempt I would issue
a five acre permit to log and clear and after a fairly good house had
been built and the five acres cleared sufficiently to indicate their
bona fide intention to make the land into a farm we could give
additional permits to log and clear. Our letters of Dec. 7 and 21,1932
to the Office were written because we expected trouble to develop from
the applications and to be set right if we had taken the wrong attitude
toward the proposed logging and home building. Also I set about to
secure the desired right of way for them.
I was transferred to Kamath Reservation in June 1933 before anything
more developed in this case. Soon after my return in June 1934 the
superintendent told me he had discovered a road leading into the Dorothy
J. Wilson allotment and a shingle mill in operation there. This I
investigated and found Ernest C. Wilson getting out cedar bolts from the
Dorothy J. Wilson cedar and delivering them to a shingle mill on her
allotment which he represented as being hers. This had been initiated
without further consultation with our office after the 1932 requests and
letters and in spite of the Office reply that we had taken the right
position in letters mentioned.
Because the new administration held views regarding the Indians that
were in many ways different than the previous administration we pre-
sented the facts to the Office and asked instructions, under date of
09/04/34. Office reply of 09/18/34 required that they enter into some
sort of contract and asked if they had a right of way. The right of way
was completed and forwarded 350104 but was returned by the Office not
approved under date of 02/01/35 with advice that revocable permits
instead of rights of way be submitted if we thought essential. The
letter again required a contract. It took many months to get signatures
to an acceptable form of contract which was finally approved by the
Department 01/06/36, and required that we mark for selective logging the
green cedar on the south forty acres of the allotment of Dorothy J.
Wilson, that Mr. Pape, the owner then of the mill, report monthly the
cedar shipments and that Dorothy J. Wilson each month send square
produced.
Dud Yerkes logging of cedar on the allotment of his minor son Caesar
James Yerkes, 1448, W 1/2 SE 1/4 15/23/11 was the next operation and
opened with the effort of George H. Butters (who for about three years
had been operating a shingle mill further up the highway on a fee
patented allotment) seeking a new site for his mill on this allotment of
Caesar's on Lunch Creek. Dud Yerkes wanted to put up a store and gas
station there and clear a few acres for home and also to log dead and
down cedar from his son's allotments and deliver to the Butters mill.
This was all presented to the Office in our letter of 03/29/35 in which
we recommended against the mill site lease and said that we anticipated
much grief if the cedar operation started and that there would be
pressure from other Indians to log and sell cedar bolts.
On 04/08/35 the Commissioner referred the requests to Mr. Lee Muck
and stated that if he approved the plan only dead and down cedar should
be cut. Soon afterward Mr. Muck looked over the proposition on the
ground and discouraged Mr. Butters in his plan to move the mill but was
agreeable to dead and down cedar logging by Dud Yerkes. Accordingly
contract I-101-ind-697 was approved by the Superintendent on 05/20/35
between the parents for their minor son, Caesar and as loggers, and
Butters Shingle Company, a partnership, as buyers of cedar bolts,
estimated at 1000 cords more or less and at a price of $1.00 per cord
reading for "dead and down and green cedar from home site clearing and
dead and down cedar from balance of allotment of Caesar James Yerkes."
Our letter of 05/25/35 to Mr. and Mrs. Yerkes stated that there should
be a bona fide clearing up of the two acres (laid out next the highway
for a home site) suitable for a home and garden. As you know, this
clearing has never been done.
In my letter of 09/25/35 concerning this sale I wrote "we anticipated
that many Indians would want to follow the lead of the Yerkes family and
log their cedar and therefore we advised the parties that we were
experimenting in this case and would not for some time at least approve
any more contracts of similar nature". "The contract was made after a
visit here by Mr. Lee Muck who looked over the proposition with us and
agreed that it would be well to let one of the allotees try what success
he could make of logging his dead and down cedar".
On 08/26/35 we presented to the Office thru Mr. Lee Muck, the re-
quest by Dud Yerkes to log green cedar and put in a shingle mill. We
recommended disapproval. About Sept. 18, 1935 Messrs. Robert Marshall
and Lee Muck looked into the propositions on the ground. As a result of
the decisions then made on the ground we submitted on October 1, 1935
cancellation of earlier contract, I-101-ind-697 for dead and down cedar
with Butters Shingle Company and in lieu thereof two new contracts as
follows:
I-101-ind-716 between Dud and Sophia Yerkes, acting for their
son Caesar and for themselves as loggers for selective logging of
175 M of live cedar on 12 acres at price of $3.50 per M and
I-101-ind-717 between Dud and Sophia Yerkes and the Butters
Shingle Company for 320 cords of dead and down cedar, the amount
figured to be due to complete the cancelled and at the former
price $1.00 per cord.
Our letter of 10/01/36 to the Office read that "The selective log-
ging contract covers about 12 acres in the SE corner of the allotment.
The cedar is big timber that is overmature and deteriorating. The stand
was looked over recently in company with Messrs. Marshall and Muck of
the Indian Service forestry branch and they favored this Indian logging
contract. The contracts are accomplished as an experiment in ability of
Indians of this reservation in logging and business."
10/17/35 letter of Mr. Lee Muck to Mr. L. D. Arnold Assistant
Director of Forestry read "that the change in contracts effected by the
superintendent -- is the outcome of a conference between Mr. Howarth,
Mr. Marshall and myself during our recent visit to the Taholah Indian
Agency and that the contracts as drawn meet with our approval".
A reason for cancelling the first contract with Butters Shingle
Company was because of the belief of Mr. Butters that all the dead and
down cedar on the allotment was sold to him and to which interpretation
we were all opposed.
I-101-ind-728 was additional contract similar to 717 confined to live
cedar because the dead and down contract with Butters was still not
completed. This contract was dated 11/14/35 and covered not to exceed
275 M on 12 acres in E 1/2 SW 1/4 SE 1/4 15/23/11 south of highway.
Selective logging was provided.
I-101-ind-739 was the next contract submitted to cover all the
remaining dead and down cedar and live cedar for selective logging from
the Caesar J. Yerkes allotment. This large contract was disapproved by
the Assistant Secretary of the Interior March 10, 1936 with instructions
that contracts be limited to ten acres. Because we had agreed with Mr.
and Mrs. Yerkes that, in event of the large contract being turned down
for reason of covering too much timber, we would execute a smaller
contract within the authority of the superintendent to approve, we then
executed a ten acre contract for an estimated $875.00 of cedar and gave
it the same date and contract number as the unapproved contract above
(739). This contract was drawn between "Caesar James Yerkes, a minor,
by Dud Yerkes, father and natural guardian" etc "party of the first part
and Sophia Yerkes, mother of Caesar James Yerkes, party of the 2nd
part".
The reason for naming Mrs. Yerkes as the logger in these contracts
was that Dud was in the hospital and expected not to live long. The
Office letter of 03/10/36 read that "Superintendent should sign the
contract for and on behalf of the minor allottee". We interpreted this
as not mandatory but rather in view of the anticipated death of the
father.
Mr. Dud Yerkes again requested to put in a shingle mill which was
presented to Mr. Muck on his visit here early in Apr. 1936. Since the
proposed mill was to be small and so-called portable type it was
believed that such a mill to carry out for himself his cedar
exploitation would not require lease and prior approval of the Office.
Accordingly he was permitted to place such a mill on the allotment and
he negotiated a contract therefor with J. W. Womer of 931 W. Cushing
St., Aberdeen, Washington. But the contract turned out to the
disadvantage and loss of Mr. Yerkes because Mr. Women after collecting
for and shipping a considerable quantity of shingles left these parts
with labor and other bills reported unpaid. Mr. Yerkes now operates the
mill and has made arrangements to acquire title to it. All along Mr.
Yerkes has been financed by Mr. H. Kobayashi, a Japanese of this city.
He has continued to back him but with less promptitude since the
disappearance of Mr. Womer.
But at the time of Mr. Womer's skipping out the contract was much in
arrears in stumpage payments so we shut down the operation till these
payments should equal or exceed the timber scaled. This was a new
procedure because the contract forms had lent themselves to payment so
many days after the Indian logger delivered his product. They had been
drawn theretofore favorable to Indians, without cash for advance
payments, to log and deliver the product and we arranged with the buyer
for payment of the stumpage. This was a risky way to do but we believe
it is the way that Indian logging contracts were always handled
elsewhere and heretofore in the Service. As stated the contract forms
as drawn apparently contemplated this procedure.
Mr. Yerkes, or rather his wife who has the contract in her name has
not been permitted to resume delivery of Caesar's bolts to the mill
since the shut down dated 06/24/36. Considerable has been paid on
account but we are now intending to require advance deposits on this
contract as per Office letter of 09/01/36. It should be bourne in mind
that the cedar bucked ahead in the woods and scaled and reported more
than covers the amount that is due for stumpage which amount at this
date is $442.48.
For several months past Mr. Yerkes has been operating his shingle
mill on stumpage from the Jonah Cole allotment on which he has contract
but as to which we have consistently from the beginning required advance
deposits to cover stumpage. This contract will be discussed later in
this history.
In 1935 we made some dead and down cedar sales from a fire killed
area near the Butters mill. After advertising Mr. Butters bid in this
cedar the first time and Dud Yerkes bid it in the next time. Mr. Yerkes
however permitted Mr. Butters to take out the cedar under contract made
in name of Dud Yerkes. The prices were $1.00 per cord under the first
contract, and $1.65 under second contract. A third advertising at the
latter figure was bid in by Butters Shingle Co. at advertised price.
These contracts were numbered and dated as follows: June 11,
1935-I-101-ind-696; and Sept.13,`35-I-101-ind-715; and Dec. 4,
1935-I-101-ind-717. Each contract was for 200 cords. They were on the
Betsy Moses allotment, No. 207, lots 9 & 10, 3/23/12.
Another small contract to clean up along the highway beyond Queets
was entered into, after advertising, with dates of 351104, I-101-ind-723
between heirs of Jennie Major, No. 105, on lot 9 and SE 1/4 SE 1/4
27/24/13. It sold for $1.00 per cord for estimated 25 cords. The
timber was trash left on the ground after highway construction in 1929.
The buyer was A. Ashenbrenner with small shingle mill off the
reservation about three miles beyond Queets.
Mrs. Josephine J. Elliott, allottee No. 1072, W 1/2 SE 1/4 15/23/11
is a sister of Mrs. Sophia Yerkes and started in to log her cedar and
sell to the Japanese, H. Kobayashi without consulting our office. We
office. We wrote her on Nov. 27, 1935 with copy copy to the Jap buyer
to cease operations. On December 2, 1935 she came into the Office and
said that she desired to build a home on her allotment, which was on the
highway a quarter mile beyond the Caesar J. Yerkes allotment. I
explained that I could give her a permit for clearing a small area for
constructing the home and I gave her such a permit limited to a quarter
acre only. Also I told her that it had been agreed between Messrs.
Marshall and Muck and Nicholson and myself that the Yerkes cedar
operation was an experiment and no more like it would be permitted for a
long time. However, those working for her (she living then in Astoria
most of time) continued to expand operations but on a small scale and
Mr. Elliott claimed that the Indians who had sued for allotments and won
them before Judge Cushman were not bound by our regulations and did not
have to sign contracts. Contract I-101-ind-754 was eventually entered
into between wife and husband and forwarded the Office 06/25/36. As was
stated in that letter they are the ones in whom I have most faith in
their bona fide intention to live permanently on their allotment and try
to make a farm of it.
Mrs. Leila Penn Sailto allottee No. 1296, NE 1/2 SE 1/4 7/23/11 is a
sister of William E. Penn who has had so many contracts to log. This
case opened up with a letter from Mr. Penn to the Superintendent saying
that they had decided to log this down cedar. The letter was referred by
the superintendent to Mr. F. E. Briggs to show them the lines. On
03/02/36 I issued to Mrs. Sailto a permit to cut and sell 60 cords of
cedar, down timber only. The letter signed by Mr. N. O. Nicholson which
accompanied the permit read in part "Please note that only cedar already
on the ground is covered in this permit".
They started in soon after to log standing dead and green trees. On
trees. On March 27, 1936 we wrote Mrs. Sailto insisting that she "live
up to the terms of the permit and no more standing trees either dead or
green be felled". This brought Mrs. Sailto with her husband and brother
Fred Penn into the office here on 03/31/36. My one page letter to the
superintendent of same date tells the story and how she said she would
keep right on logging. (A copy of that memorandum is attached.)
Because of our opposition to more contracts like the Yerkes contracts
and because of their desire to be free from restraints to their logging
there was a meeting at Queets on the evening of 03/25/36 at which the
Indians decided to finance a test case if we continued to prevent their
logging their allotments and selling the products.
On 03/27/36 we wrote Mr. Muck advising that he contact Mr. Marshall
and both be here soon because the Indians were determined to make a test
case of our authority to prevent their logging their allotments and
selling as they chose. Shortly thereafter Mr. Muck visited the
reservation without Mr. Marshall. It was his opinion that we probably
could not prevent the Indians going onto their allotments to log and
sell the products so we should try to keep them within regulations as to
how they conducted operations and that it was the policy of the present
administration to encourage Indians in industry.
Accordingly we took a new attitude toward those who desired their
timber cut and have approved or recommended approval of contracts where
the allottee or another Indian would do the falling and bucking. But
bonds were not required nor advance payments nor had the new regulations
been approved.
Contract I-101-ind-747 between Mrs. Leila Penn Sailto and her hus-
band Charles Sailto was executed and forwarded to the Office 05/06/36.
The contract provided that the husband would fall and buck. It reads to
cover "all the dead and down cedar merchantable for shingle or Jap
export material and all the live cedar marked for falling by a
representative of superintendent, Taholah Indian Agency, for selective
logging, with clear cutting on an area of about two acres for home site
purposes". The area was limited in description to ten acres and the
estimate was 300 M more or less, price $3.00. Work on this contract has
been 100% Indian.
Jonah Cole on 06/12/36 entered into contract I-101-ind-752 to sell to
Dud Yerkes 140 M more or less of "cedar bolts cut by himself from trees
marked for logging by representative of the Superintendent, Tah- olah
Indian Agency, "from 10 acres of his allotment on the highway. He
turned over his part of the contract to fall and buck to Dud Yerkes.
Because the latter had been slow pay on the contracts on Caesar's
allotment we required under this contract that he pay in advance of
receiving material, and he has been held to this. He installed a gas
donkey to yard bolts cut there felled and was recently intending to
install a steam donkey to yard longer lengths for bucking at the
landing. This we have forbidden by letter of 09/23/36.
Edward Dewey Butler, allottee No. 990, minor son of Lawrence Butler
entered into contract I-101-ind-748 on May 6, 1936 with his father, the
latter to fall and buck an estimated 300 M of dead and down cedar and
live cedar marked for selective logging, at price of $3.00 per M. Bolts
were sold to the Butters mill on adjoining land. Believing the next
contract should fetch $4.00 we set that price and same was not executed
because Mr. Butters would not pay more for the bolts.
HES-003-1810-1816
HES-003-1810-1823
IIA36.1
MUCK, LEE
360331
CORRESPONDENCE
HOWARTH, JAMES A ; TAHOLAH INDIAN AGE
Supt. N. O. Nicholson:
This afternoon Mrs. Leila Penn Sailto with her husband and Fred Penn,
her brother, were in our office and talked with Mr. F. E. Briggs and
myself about the logging of her allotment. She had received our letter
of last Friday telling her that her permit covered only down cedar and
that we had found that she was logging a lot of the standing green cedar
and she must cease the logging of the standing timber.
She said that she had made arrangements to get a donkey to log all
the timber on the forty acres, that other Indians on the Olympic Highway
were logging their entire allotments. I told her that last fall we had
agreed, (Mr. Muck and you and I) that we would not allow more Indians to
start up logging operations on their land than those then planned,
meaning general logging operations but that we would give permits, to
any who wanted to build homes on their land, to clear about two acres,
and we would give her such a permit. She said that it would not pay her
to put in the donkey she had arranged for just to clear two acres and
she was going to cut the whole forty acres.
She said that she wanted an order from you to stop logging and until
she got such an order she was going to tell her men to keep right on
logging. I told her that your letter of 27th was such an order to quit
logging the standing cedar but she said: No, that you would have to
write her again telling her to quit, and then she left the room.
Fred Penn and Mr. Sailto stayed a while and were more conciliatory.
Mr. Penn was spokesman and agreed that they would wait till Mr. Muck
arrived and they wanted him to either come to Queets some evening to
talk with all the Indians who want to log their own allotments or they
would come down to our office to see him.
James A. Howarth Jr.
William Butler, allottee 992, entered into contract No. I-101-ind-772
on 08/03/36 with Butters Shingle Company to fall, buck and sell at stump
300 M of cedar, dead and down and green for selective logging at $3.50
per M from NE 1/4 10t 9 sec. 4/23/12. This allotment is more than a
quarter mile from highway. It is however adjacent the Butters mill. It
is the first $3.50 cedar that the mill has bought under the many Indian
contracts.
On 09/26/36 contract I-101-ind-777 was executed between Frederick
Woodruff, allottee 1446, and William E. Penn, a Queets Indian, selling
dead and down cedar only for a portion of Woodruff allotment along the
Olympic Highway to be felled and bucked by Mr. Penn who agrees that half
the labor to point of delivery on Grays Harbor shall be Indian. Also on
this contract with value under $500.00 we required $100.00 in lieu of
bond and a like amount as advance payment.
There are two contracts entered into some time ago on which no work
has yet been done and which we under todays date have written that
advance deposit in lieu of bond be placed in Supt's hands before
operations start up and deposits in advance of felling be also made on
them. These are as follows:
Cedar contract I-101-ind-773 between heirs of Harold George No. 2 and
David Baker, which contract along the highway was approved, with
reservations regarding logging the live cedar, by Mr. Muck on Aug. 20,
1936. This is Allot. 1089.
Spruce contract I-101-ind-779 between Mrs. Jennie Martin and William
E. Penn for selective logging of 325 M of spruce from allotment 1254,
being on ten acres NE 1/4 NE 1/4 SW 1/4 24/23/11. This ten acres is
over one quarter mile from the Olympic Highway.
We doubt that the deposits will be made on either of these contracts
and if now made they will be cancelled.
John Shale, allottee 63, in 1932 was trying to find a buyer for his
spruce at the mouth of Clearwater River 65 miles from Grays Harbor by
highway, the reasons being that the river and the spruce bud worm were
fast getting his spruce. In 1934 Ind Esses, who buys and logs much
spruce north of Hoquiam, looked over this spruce of John Shales and
considered it not worth $1.00 per M stumpage then. When the Indian
delegates from here were in Washington in Jan. 1936 they took up the
matter of selling the Shale timber (John's and Martha's) to salvage it
and informed me on return that the forestry section was favorable to a
salvage proposition.
Mr. Shale had about three parties look over his timber and talk
matters over with us and finally he brought in J. A. Sandell, a white
man from Forks to sign contract I-101-ind-744 on 04/16/36 without
advertising, stumpage payments for all merchantable grades 1, 2, 3 to be
$2.50 per M, and John Shale to fall and buck the timber, estimate 275 M.
Another similar contract for 300 M, I-101-ind-755 was dated 06/04/36.
Money for falling and bucking was by this, as with other similar
contracts that we made, payable by the buyer direct to the Indian in
charge of falling and bucking. But Mr. Shale, when he was paid this
falling and bucking rate by Mr. Sandell, did not pay his fallers and
buckers but spent the money for other purposes. This he did on two
different occasions and each time it became necessary for us to go to
his assistance and figure his bills and draw checks from his funds in
the office to be individually endorsed by John Shale to the several
fallers and buckers. In the wind up of the operation Mr. Sandell had to
pay direct to the fallers and buckers for their later work. John Shale
filed saws and did some of the falling and bucking along with one of his
sons.
The Martha Shale spruce, allotment 64, was also contracted to Mr. J.
A. Sandell, I-101-ind-766 on 07/06/36. The estimate was 1000 M and
price $2.50. Sale was approved by the Assistant Director of Forestry.
Reasons for sale were as with the adjoining sale of John Shale spruce,
encroachment of river and the bud worm.
Neither allotment was adjoining a highway and both were across the
Clearwater River necessitating that Mr. Sandell build a bridge over this
river. Being a salvage proposition and the land river bottom suited for
agriculture we did not make these selective logging contracts, but all
merchantable trees were logged.
Frank Harlow, allottee 114 was very industrious hunting up prospects
to buy his spruce and eventually contracted ten acres of it to George H.
Butters (of the shingle company before mentioned) in NE 1/4 lot 17 sec.
29/24/12 estimate 350 M to $2.50 per M for all merchantable No. 1 and 2
and 3 grades; I-101-ind-749 approved 05/11/36. For over three months
Mr. Butters did nothing with the spruce and could not see how he could
come out even on it. After waiting so long Mr. Harlow brought in Mr.
Sandell who was about done on the Shale allotments and signed up a
contract with him and Messrs. Butters and Harlow signed cancellation of
their contract. This was all done with the understanding between the
three parties and ourselves that if both the cancellation and new
contract were not approved Mr. Sandell would work under the Butters
contract because he wanted to start on the road about 3/8 mile long to
get out the spruce. The new contract was not approved nor the older one
cancelled and the contract is now about completed as the Butters
contract.
The Sandell contract was not approved by the Assistant Director of
Forestry because it did not provide among other things for cash deposit
in lieu of bond and for advance deposits on timber to be cut. The
operation was closed temporarily till all these deposits were made and
then was allowed to continue under the Butters contract which however
had not called for these advances.
About ten days ago Messrs. Lee Muck and Pat Gray were here looking
over the cedar and spruce sales. They thought that the Harlow spruce
should fetch more money and accordingly we advertised by posters and
circulars another 300 M of the Spruce on the west half of the lot 17 at
a price of $3.00 bids to be received at 2 o'clock Sept. 30. No bids
were received. Distribution of the advertising was in the post offices
of Clearwater (about two miles from the timber) and Hoquiam and to
Messrs. Sandell, Butters, William E. Penn and Ind Esses, the latter
doing a big contracting of spruce up the Olympic Highway near Quinaielt
Lake. Below are estimates of the worth of this spruce of Frank
Harlow's.
The first 173,674 feet of this spruce to reach market here brought
these prices.
grade ..... pieces ..... scale ........ at ...... Amt. Recd. 1
........... 1 ...... 3,162 ..... $20.00 ..... $ 63.24 2 ..........
44 .... 111,921 ...... 15.00 ...... 1678.81 3 .......... 34 .....
58,591 ....... 9.00 ....... 527.32
Totals ......... 79 .... 173,674 . ................ $2269.37
Average price ........................... $13.07
COSTS The first cost was a road on which $1,000.00 was spent.
$1.00 per M paid Frank Harlow to fall and buck.
5.97 union rate for trucking logs to Grays Harbor about 65 miles
.50 booming .07 scaling .13 discount of 1% by buyer.
2.00 to skid and load would be a fair contract price but Sandell
owns the cat and does much of this work himself.
$9.67 subtotal excludes stumpage and road cost. $9.67
3.00 stumpage .................................. 2.50 (old price)
3.33 road cost on 300 M ... ($1.43 on 700M) .... 1.00 on 1000M
$16.00 total cost .............................. $13.17 total
13.07 selling average .......................... 13.07 selling
$2.93 per M loss on one sale 300M at $3.00 stumpage
per M loss on sale of 1000M at $2.50 stumpage ten cents
Note: There is an estimated 1482 M of spruce on the whole allotment
and selective logging, it is estimated, would result in removal of
1000M. There seems no profit in this spruce even at $2.50 per M.
Comparing the stumpage prices above covering all merchantable logs of
grades 1 and 2 and 3 with the prices for similar timber and same
approximate distance I call attention to the sale of about 3 million
feet of spruce up the "Kelley" or Upper Queets road north of the
reservation and approximately the same distance as Harlow timber from
Grays Harbor. Only numbers 1 and 2 grades were required to be taken and
paid for and the price for this outside timber was $1.50 per M. Buyer
was Maynard Jones who was working with William E. Penn to get out the
Frederick Woodruff spruce.
Frederick Woodruff, allottee No. 1446, contracted 300 M of his
spruce, I-101-ind-746, at $2.50 per M to William E. Penn, Indian of
Queets on May 4, 1936. A subsequent contract, I-101-ind-756 of June 30,
1936 was for 200 M at same price. A third contract, I-101-ind-767,
dated July 8, 1936 was for 200 M again at same price. A fourth and last
contract was for 500 M and a price of $3.25 advocated by Mr. Lee Muck
while here on July 20 1936. This was contract I-101-ind-765, dated
07/23/36. This allotment was on the highway about 13 miles nearer town
than the Harlow and Shale spruce. The timber was selectively logged.
The Bessie Gray Johnson allotment No. 1104 was contracted 08/05/36,
I-101-ind-770 to William E. Penn, Indian, for 150 M of spruce at $3.25
per M, total $487.50 and approved by superintendent. It called for
selective logging on ten acres, NE 1/4 SE 1/4 NE 1/4 24/23/11 on which
all the spruce of the allotment was located. Contract was completed
some weeks ago.
The Jennie Martin spruce contract to William E. Penn was mentioned on
page 8 of this report. Mr. Penn reports the costs too high for the
small volume well back from the highway and we believe that it will
eventually have to be cancelled.
Special reference is made to Office letter of 09/01/36, which reads
with reference to the Indian logging contract form where John Shale sold
spruce logs and not spruce stumpage, the logs being cut by himself, to
J. A. Sandell, a white man. Office letter read "that it would appear
that the timber should have been advertised in accordance with section
10 of the regulations" approved 05/18/36. Referring to that paragraph
shows it to require advertisement of "all sales of tim- ber." No mention
is made of sales of logs or other products cut by Indians. Referring
again to the earlier regulations which the new ones supercede I note
that the regulations approved 27 06/29/27ad in para- graph word fword
the same for first half paragraph. Also the Green book approved
02/05/18 in paragraph 15 read the same exactly as the last mentioned
above.
It has been my understanding that under the earlier regulations of
similar wording it was not required that advertising was necessary in
sales to whites of products cut by Indians from Indian stumpage. Since
the above instruction there has been advertising where whites were
solicited to buy the products of the Indian labor. However we do not
see good reason for the distinction since ultimately whites are the
consumer buyers of all the products and the result of the rule will be
that the whites will find an Indian to be the party of the second part
to the contracts and the latter will buy the products from the first
Indian who makes bolts or logs from his own timber. The Indian party of
the second part will contribute little if anything to the total work and
be free to sell to whites.
As stated earlier in this history we started out with sales on the
Dud Yerkes allotment operation restricting to dead and down cedar except
in the few acres that were to be clean cut and later well cleared for
home site and farming use. Not until Mr. Yerkes had personally
requested of the Director of Forestry permission to log green cedar and
had his approval to selectively logging it, did that kind of logging
start except that I find I did issue to Dud on Aug. 29, permit to cut
two cedar green trees from Arthur Yerkes allotment. It was not until
after the meeting of the Indians at Queets on Mar. 25 of this year and
the subsequent visit of Mr. Muck that general ban against logging by
Indians and including logging of green timber was raised. Thereafter we
made contracts with all who applied and where the Indian was to do the
falling and bucking or looking after it as did Mr. Yerkes on the Caesar
allotment. Contracts thereafter made were for selective logging either
the cedar or the spruce green timber except as noted that the Shale
spruce contracts were a salvage proposition taking all that was
merchantable.
The new General Forest Regulations dated 04/23/36 were received here
06/06/36. On that same day I prepared a letter that was signed by the
Superintendent in which we set forth reasons for our construing the
paragraph 22 as applicable to tribal lands only and saying that unless
"and until otherwise instructed we will mark the cedar and spruce for
selective logging of the larger timber including dying and healthy
trees". No decision having been had we again wrote enlarging on the
subject on 08/03/36. We did tell several of the Indians that we might
any day have instructions that we must forbid the cutting of any green
trees, except where actually dying, that were within a quarter mile of
the Olympic Highway. As a result of this information came the meeting
in protest at Taholah on 08/15/36 and our letter transmitting the
resolutions, (letter 08/19/36.)
Reviewing this letter as written thus far I note that I have
neglected to say that we advertised the timber wherever it was a
stumpage sale and not a sale of products. For example we advertised the
sale to Mr. Butters of the Betsy Moses dead and down cedar stumpage and
the sale of small roadside cedar waste to Ashenbrenner. But from the
very first sale early in 1935 on the Caesar Yerkes allotment made to the
Butters Shingle Company of dead and down cedar we did not advertise when
the cedar was to be made into bolts by the Indians. Other similar sales
to this company later made were not advertised when the allottee
contracted to deliver bolts or logs and not sell stumpage.
In the next few days we will endeavor to put all the active sales,
made before instructions came out to that effect, on a basis of advance
deposits.
Respectfully reported,
James A. Howarth Jr.
Forest Supervisor.
Read and Forwarded
N. O. Nicholson,
jahjr Superintendent.
HES-003-1817-1823
HES-003-1810-1823
IIA36.1
NICHOLSON, N O
320000
CORRESPONDENCE
FOREST SUPERVISOR ; TAHOLAH INDIAN AGE NICHOLSON, N. O ; TAHOLAH
INDIAN AGE
Commissioner of Indian Affairs,
Washington, D.C.
Sir:
I have the honor to submit herewith the Quinaielt Indian Reservation
Forestry Report for the fiscal year 1933.
Respectfully submitted,
(SIGNATURE ILLEGIBLE)
Forest Supervisor
APPROVED
N. O. Niclolson
Superintendent
Introduction
1. Area and location
The Quinaielt Indian Reservation is located on the Pacific coast of
the State of Washington, at the base of the Olympic Penninsula. The
general shape is triangular the sides being about twenty miles in
length, embracing an area of slightly over three hundred square miles.
2. Topography etc.
The general topography is that of a plane with an average elevation
of approximately three hundred feet. Along the western portion of the
Reservation along the Pacific Ocean, there is a strip of land about five
miles in width that is comparitively rough being cut up by numerous
small streams that empty into the Ocean. In the extreme north eastern
portion elevations rise rapidly to as high as 1800 feet.
There are four principal river systems all emptying into the Pacific
Ocean.
The northern part of the Reservation is drained by the Queets and
Raft Rivers and their tributaries.
The Quinaielt flows from Quinaielt Lake to the ocean which with its
many tributaries drain the central and major portions of the
Reservation.
The Moclips near the southern boundary drains some of the southern
part.
There are large areas of poorly drained land resulting in cedar
swamps and numerous small prairies. The soil is generally clay. The
underlying formations are for the most part conglomerate and
sedimentary.
3. Forests
The principal tree species are Western Red Cedar, Western Hemlock,
Sitka Spruce, Douglas Fir, Amabilis Fir and Western White Pine, with
lesser amounts of Lodgepole Pine, Cottonwood, Maple and Alder.
a Hemlock, pure or nearly pure
b Cedar swamps, mixed with spruce and White Pine
c River bottom spruce, mixed with Cottonwood, Maple and Alder
d Old Growth Douglas Fir, and Hemlock
e Second growth Douglas Fir, pure and with Hemlock
f Lodge pole Pine and cedar, a transition type between the
forests and prairies.
Four logging companies have opened up the area south of the Quinaielt
River and the eastern end of the Reservation. These are the M. R. Smith
Lumber and Shingle Company, the Aloha Lumber Company, the Hobi Timber
Company, and the Ozette Railway Company. The latter now has a right of
way along the northern edge of the Reservation, but has built only about
three miles of railroad on the north side of the Quinaielt river. The
Hobi Timber Company has completed their contract on the Cook Creek Sale
area, release of contract is pending.
The M. R. Smith Lumber and Shingle Company and the Aloha Lumber
Company both have connections with the Northern Pacific Railroad, but
the Ozette Railway Company has no common carrier connection, dumping
their logs in the Hoquiam river about three miles east of Hoquiam,
Washington. None of the above logging roads are common carriers.
The Quinaielt River is a stream suitable for log driving, but there
are at the present several large log jams composed of whole trees that
would seriously interfere with driving unless they were removed.
The Olympic Highway traversing the Reservation from Quinaielt Lake to
the north western corner is being used by logging trucks.
In 1929 four units of timber north of the Quinaielt River were
advertised for sale. These units were laid out in such a manner that
each unit would be accessible by two or more of the companies operating
on the Reservation at that time, however only one bid was received on
each Unit. One from each of the operators then logging on the south
side of the Quinaielt River. The Secretary of the Interior turned all
bids down on these Units.
Since that time however all four operators have expressed themselves
as not being interested in having these units readvertised for sale. At
least until such time as marked conditions justify.
As previously stated the Hobi Timber Company has completed its
contract on the Cook Creek Sale Area. They have removed from the
Reservation all of their logging and camp equipment, even to the taking
up of some thirty miles of track. They have thus shown that they are
not interested in bidding on another unit of timber on this Reservation.
At the time of advertising these four units, the Northern Pacific and
the Union Pacific were contemplating on a joint extension of the
Northern Pacific line from Moclips north thru the reservation to the Hoh
River. Owing to economic conditions they have asked permission of the
Interstate Commerce Commission for time extensions on several occasions,
and now it is problematical if they will ever build into that territory.
4. Statistics
(A). Estimated Forest Resources June 30, 1933.
Land not ...... Acres ...... M feet ..... Value ... Total Value
Logged .................... at 20 M ..... Per M ... Timber only
Allotted .. 151,596.49 .. 3,031,929.8 .. $2.50 .. $7,579,824.50
Unallotted .. None
Total .... 151,596.49 .. 3,031,929.8 .. $2.50 .. $7,579,824.50
Allotted .... 20,777.92 acres
Tribal ...... 3,036.74 acres
Total ....... 23,814.66 acres
(B) Estimated value of timber land still under Indian Office
jurisdiction and exclusive of the timber thereon as of 06/30/33.
Land value .. 175,411.15 at $1.50 per acre ... $ 263,116.73
Timber value ................................. $7,579,824.50
$7,842,941.23
(C) Estimate percentage of predominating species
Cedar ........ 48%
Hemlock ...... 26%
Spruce ....... 10%
Douglas Fir ... 8%
Amabilis Fir .. 7%
White Pine .... 1%
Organization and Personnel
(ORGANIZATIONAL CHART OMITTED SEE ORIGINAL)
2. Analysis of personnel in table form.
Paid from Expenses, Sale of Timber, Reimbursable, 1933. Authority
30841-32.
(TABLE OMITTED SEE ORIGINAL)
3. Personnel, General Discussion
The principal forestry activity on the Quinaielt Indian Reservation
has consisted principally of timber sale administration the organization
and personnel has proved excellent for the work. We have at the present
time only a skeleton organization, but in the event of improved economic
conditions and logging again will assume its former place in industry,
it will be necessary to build up one organization to the point where it
can take care of the work.
4. The organization at present consists of
Forest Supervisor .... 1
Senior Forest Ranger 2
Forest Rangers ....... 2
Scalers .............. 4
Financial clerk ...... 1
With the letting down in timber sales activities there has been and
still is an increase in miscellaneous forestry work such as surveying,
road and bridge construction and maintenance, cruising, appraisals and
trespass cases for which the senior forest rangers are best trained so
that they have been always busy and indeed have had much of the time,
more work assigned them than they had time to do.
5. The total acreage under Indian Office jurisdiction is 175,411.15
acres therefore the total number of acres per each employee on duty
06/30/33 is 17,541.12 acres.
Salaries of regular field employees when detailed to office work
General Expense Forestry - Total Cost $1741.94 ........... Unit Cost
.001 Classification of Operating Expenses ........... Amount .. Unit
Cost
.01 Salaries & Wages Regular Employees .... 1565.82
.02 Salaries & Wages Irregular Employees
.03 Materials and Supplies .................. 63.42
.04 Repairs and Preservation of Property .... 18.40
.05 Traveling Expenses
.06 Expense not otherwise classified ........ 94.30
Gross operating cost...................... $1741.94
II. OPERATION OF FORESTRY AUTOMOBILES
(TABLE OMITTED SEE ORIGINAL)
III. OPERATION OF AGENCY SAWMILL
There is no mill owned or operated by the Agency.
This year not being divisible for 5 there is not required a detailed
Fire Plan Report.
Outline of system of Control
Two lookout stations are maintained on this Reservation as follows:
Near Point Grenville in the SE/4 of NE/4 Sec. 17, T. 21 R. 12, is an
80 ft. steel tower standing on a hill with about a 500 feet elevation.
This lookout is equipped with an Osborn Fire Finder, and is connected
with the Indian Service telephone line from Taholah to Moclips which is
in turn connected on the Pacific Telephone and Telegraph line at
Moclips.
Near Cook Creek on high ground in the NE/4 or NW/4 Sec. 26 T. 22 R.
11, we have a second lookout. We are using a Douglas Fir tree 170 feet
in height with a 7 ft. by 7 ft. house on the top. This also has an
Osborn Fire Finder, and is connected with the Taholah-Moclips line. It
also has a direct connection with the National Forest Service to the
District Rangers' headquarters at Quinaielt Lake.
At present we have a fire guard stationed at the Forest Experimental
Station who patrols that area and his quarters is connected by telephone
with the Cook Creek tree and the Point Grenville tower. Another guard
patrols the Cook Creek sale Area and he too has telephone connections
identical with the other guard. A third forest guard is stationed at
Raft River and patrols the Olympic Highway from Quinaielt Lake to the
north boundary of the Reservation. His quarters are on the Pacific
Telephone and Telegraph line.
There is urgent need of two additional lookouts. One at Queets and
one at Lone Mountain. This would give us an excellent loookout system.
The National Forest Service has a new lookout on Higley Peak north of
Quinaielt Lake but owing to its location, a fire in the northern portion
of the reservation cannot be detected by that station.
It is hoped that money will be available in the near future for the
construction of the two above named lookouts.
Cooperation with other fire fighting agencies has been of the very
best. The companies operating on Indian timber each have a "smoke
chaser" follow the logging trains thru the logged areas during the
entire fire season besides maintaining an excellent fire fighting
organization with adequate equipment.
The only fire occurring the fiscal year 1933 occurred in the Cook
Creek area. The relative humidity had been low up until twenty-four
hours after the fire had started. With only five available employees
plus a like number furnished by the Hobi Lumber Company we immediately
started back fires which were of considerable benefit later on. From
this time on the weather came to our rescue. About every three days it
would rain slowing up the fire. Until the twelfth day a drenching rain
put the fire in such shame that it was easily put out. However a clean
burn was not obtained and a fire hazard still exists in that area.
Fire Protection ............. Area under .. Tot'l Unit cost
Protection .. Cost .. per acre
#189,620.99 .. $2236.44 .0012
Classification of operating costs ............. Amount Unit cost
per acre
.01 Salaries & Wages Regular Employees ........... 730.13
.02 Salaries & Wager Irregular Employees ........ 1420.85
.03 Materials and Supplies ........................ 30.58
.04 Repairs and Preservation of Property .......... 16.88
.05 Traveling Expenses ............................ 18.00
.06 Expenses not otherwise classified ............. 20.00
Total Cost ........................ $2236.44
Above includes an overpayment of $200 to M. F. Tucker, Forest Guard
for July. Refunded in cash 10-25-33. O. R. 92812.
#Includes Fee Patent Lands.
ANNUAL FOREST FIRE REPORT FOR FISCAL YEAR ENDED June 30, 193
QUINAIELT INDIAN RESERVATION
(REPORT OMITTED SEE ORIGINAL)
As there is no grazing on the Quinaielt Indian Reservation, there is
no Grazing Report.
See 1932 Forestry Report
(TABLE OMITTED SEE ORIGINAL)
VI. Analysis of New Road Construction
(TABLE OMITTED SEE ORIGINAL)
VII. INVENTORY TELEPHONE LINES
(TABLE OMITTED SEE ORIGINAL)
VII. COST OF OPERATION
(TABLE OMITTED SEE ORIGINAL)
VII.
2. MISCELLANEOUS IMPROVEMENTS .......... Total Cost
............................................. $72.79
Classification Operating Costs ............. Amount
.01 Salaries and Wages Regular Employees ..... 17.57
.02 Salaries and Wages Irregular Employees
.03 Materials and Supplies ................... 34.97
.04 Repair and Preservation of Property ...... 20.25
.05 Traveling Expenses
.06 Expenses not otherwise classified
Total . ....... 72.79
MISCELLANEOUS FORESTRY ................... Total Cost .. Unit cost
........................................................ per acre
......................................... $5635.22 .... .00034
Classification of Operating Expense ........ Amount
.01 Salaries and Wages Regular Employees ... $5658.07
.02 Salaries and Wages Irregular Employees
.03 Materials and Supplies .................. 102.56
.04 Repairs and Preservation of Property ..... 17.69
.05 Traveling Expenses ....................... 39.60
.06 Expenses Not Otherwise Classified ........ 17.50
Total ..................................... $5835.22
Included in the above is salaries for one scaler for portion of five
months and two cruisers for portion of two months at Neah Bay.
IX.
MISCELLANEOUS FORESTRY .................. Total Cost Unit cost
per acre
.......................................... $6220.48 .. .00554
Classification of Operating Expense
.01 Salaries and Wages Regular Employees ... 1283.33
.02 Salaries and Wages Irregular Employees . 2653.81
.03 Materials and Supplies ................. 1799.43
.04 Repairs and Preservation of Property ... 120.00
.05 Traveling Expenses ..................... 1.50
.06 Expenses not otherwise classified ...... 362.41
Total .................................... $6220.48
X. Timber Sale Administration, 1933.
1. Analysis by Units of Quinielt Timber Sales, 1933.
(TABLES OMITTED SEE ORIGINAL) 5 PAGES
4
(A)
UNIT .............. PURCHASER ............. ATTITUDE
Point Grenville ....... Smith ........... Satisfactory
Cook Creek ............ Hobi ............ Bond Canceled
Quinaielt ............. Ozette .......... Satisfactory
Mounts ................ Aloha ........... Satisfactory
Moclips ............... Aloha ........... Bond Canceled
Hatch ................. Aloha ........... Bond Canceled
Upper Wreck Creek ..... Aloha ........... Satisfactory
Hall .................. Aloha ........... Satisfactory
(B) When normal conditions prevail the entire forestry force is
organized to handle timber sales which is 95% or more of our forestry
activities. The organization is well adapted to handle the sales of the
remaining operators. We have two senior forest rangers at large for
general supervision, and one ranger in charge of each of the operations
who is responsible for timber scaling, running of allotment lines,
marking and pick up. As this reservation is composed entirely of
allotments it means that great care must be taken in order to assure
that each allotment is credited with the timber that is actually cut
from it. The scale reports are promptly, neatly and accurately made and
checked.
(C) Check scale reports are submitted at the end of each calendar
year.
ANNUAL FORESTRY RPT 1933
(TABLE OMITTED SEE ORIGINAL)
ANNUAL FORESTRY RPT 1933
(TABLE OMITTED SEE ORIGINAL)
ANNUAL FORESTRY RPT 1933 - QUINAIELT LAKE
(TABLE OMITTED SEE ORIGINAL)
ANNUAL FORESTRY RPT 1933 - UPPER CREEK AND HALL
(TABLE OMITTED SEE ORIGINAL)
COST ANALYSIS OF TIMBER SALE UNITS
(TABLE OMITTED SEE ORIGINAL)
C. List of allotments, dates and amounts of advance payments which
will come due in fiscal year 1934.
(TABLE OMITTED SEE ORIGINAL) 8 PAGES
8. Summary of work to be completed during coming year, shown as
follows:
A. List of units upon which a readjustment of stumpage rates becomes
effective.
1. Stumpage prices on the Quinaielt Lake, Hall and Upper Wreck
Creek Units will come up for readjustment to become effective on
April 1, 1934.
B. List of Units upon which bonds will expire and date of such
expiration.
1. No bonds will expire during the coming year.
2. Logging operations in the Cook Creek Unit of the Quinaielt
Indian Reservation, under the contract with Frank D. Hobi and
Edwin A. Hobi, which was approved on 09/02/22 by the Assistant
Secretary of the Interior, have been entirely completed, and the
bond furnished by said Frank D. Hobi and Edwin A. Hobi may
properly be cancelled.
Logging operations in the Cook Creek Unit started in November,
1924 and were completed in January 1933. On March 29, 1933 a full
report on the Cook Creek Unit was submitted to the Office,
together with the recommendation that the bond of the United
States Fidelity and Guaranty Company, of Baltimore, Maryland, be
cancelled, and that the Superintendent be authorized to advise
said Company to that effect.
C. List of allotments, dates and amounts of advance payments which
will come due.
(Immediately follows this page)
X a. TIMBER SALE ADMINISTRATION (Reservations other than Quinaielt)
Timber contracts in force June 30, 1933, NONE.
XI. RECAPITULATION OF OPERATING COSTS
Statement of Costs and returns.
(TABLE OMITTED SEE ORIGINAL)
XI. ANALYSIS OF GROSS OPERATING COSTS
(TABLE OMITTED SEE ORIGINAL)
Disbursements during the fiscal year ending 06/30/33
(TABLE OMITTED SEE ORIGINAL) CORRECTION SHEET DOCUMENT IDENTICAL TO
1866
HES-003-1824-1867
HES-003-1824-1867
IIA32.1
COMM OF INDIAN AFF
CORRESPONDENCE
NICHOLSON, N. O ; TAHOLAH INDIAN AGE
Taholah Indian Agency,
Hoquiam, Washington,
July 23, 1932
Commissioner of Indian Affairs,
Washington, D.C.
Sir:
Moneys totaling $53,625.82, and carried on the books of the Taholah
Indian Agency as undistributed, tribal funds, are ready for
distribution. A separate record has been kept of the timber logged from
each particular 40 acre tract and Government lot; and as certain
selections for allotments have been made (in some cases before the
beginning of timber operations, in other cases after the completion of
timber operations, and in other cases after the beginning and before the
completion of the cutting) from the tribal lands from which the above
timber money was derived, it has been deemed advisable, in view of a
certain sentence, hereinafter quoted, and contained in Office letter of
07/13/32 to Mr. Charles R. Roblin, Special Allotting Agent, approved by
the Assistant Secretary on 07/15/32 to request instructions from the
Office as to how this money should be distributed.
The matter will be presented in a seven-fold view:
(1) Moneys totaling $15,162.12, and derived from timber operations on
lands which have not yet been selected for allotment, and on which
timber operations have not yet been completed.
This money will be treated as tribal money, and will be distributed
as such, unless the Office otherwise directs.
Timber moneys accruing after selection and approval thereof, and
before the completion of timber operations, will be treated as belonging
to the selector, or allottee, from the date of selection; but up to
this point it will be treated as tribal unless the Office otherwise
directs.
(2) Moneys totaling $19,126.20, and derived from timber operations on
lands which have not yet been selected for allotment, and on which
timber operations have been finished.
This money will be treated as tribal money, and will be distributed
as such, unless the Office otherwise directs.
(3) Moneys totaling $4,195.14, and derived from timber operations on
lands which were selected for allotment after the timber was all cut and
timber operations completed.
In Office letter of 07/13/32 to Mr. Charles R. Roblin, Special
Allotting, it is said:
"It is our contention that where logging operations started
before the selection was filed, and no account was kept of the
amount of timber taken from each subdivision, the allottees are
not entitled to the proceeds derived from the sale of the timber."
This carries with it the clear implication that where an account has
been kept of the amount of timber taken from each subdivision, the
allottees are entitled to the proceeds derived from the sale of the
timber.
As before stated, a separate record has been kept of the timber
logged from each particular 40 acre tract and Government Lot.
The above sentence also appears to be in conflict with the language
of Mr. Marschalk, Chief Land Division, in his memorandum of 05/09/32
(L-A 20807-32), a copy of which was attached to a copy of the prepaid
and unsigned letter to Mr. Roblin, which was later dated 07/13/32 and
signed by the Assistant Commissioner, and approved by the First Assist-
ant Secretary on 07/15/32.
In this memorandum Mr. Marschalk says:
"We agree with Mr. Kinney that Indians are not usually allowed
the money derived from the sale of timber cut from the lands
before they selected them as allotment." (L-A 20807-32).
While the language used in Office letter of 07/13/32 is broad if
taken in its general sense, and leaves it uncertain whether the money
should be treated as tribal, or whether it should be treated as belong-
ing to the selectors of the allotments should their selections be fin-
ally approved, it would seem plain that, when considered in connection
with the unusual situation which was then before the Office, it was not
intended to be construed in connection with ordinary matters which were
not then before the Office for consideration and determination.
This money will accordingly be treated as tribal money, and will be
distributed as such, unless the Office otherwise directs.
(4) Moneys totaling $2,766.32, and derived from timber operations on
lands which were selected for allotment after the cutting began, and on
which timber operations have not yet been completed.
This money, which represents the value of the timber cut up to the
date of the selection, would seem to be tribal money up to this point,
and will be treated as such unless the Office otherwise directs.
Timber moneys accruing hereafter from these lands will, in case of
the approval of the selections, be treated as belonging to the allottee
unless the Office otherwise directs.
This subdivision (4) is closely connected with the proceeding
subdivision (3), and what is said thereunder is applicable to this
subdivision.
(5) Moneys totaling $3,048.41, and derived from timber operations on
lands which were selected for allotment before cutting began, and on
which timber operations have not yet been completed.
These moneys will be treated as belonging to the selectors upon
approval of the selections, and will be distributed as such upon the
issuance of trust patents unless the Office otherwise directs.
Alvin Walkowsky is one of the selectors whose rights are properly
considered under this subdivision, and his right to the value of the
timber cut from the NW/4 SE/4 Section 29-21-11, less the 8% deduction
for timber expense, is recognized by the Office in Office letter of
06/03/32 to Mr. Webster Sallinger. (L-A 25389-32).
(6) Moneys totaling $6,796.80, and derived from timber operations on
lands which were selected for allotment before the cutting began, and on
which timber operations have been completed.
This money will be treated as belonging to the selector upon approval
of the selection, and will be distributed as such upon issuance of the
trust patent, unless the Office otherwise directs.
This allotment was selected by Andrew B. Barichio, allottee No. 1539,
on 12/06/23. Cutting began on 11/10/25, nearly two years thereafter;
and timber operations were completed on 03/20/31. The schedule was
submitted on 06/04/32.
Mary Barichio Petit now claims that the land from which this timber
money was derived, namely, the E/2 NW/4 Section 2-21-11, should have
been allotted to her. The whole controversy between these two claimants
is now before the Office.
(7) Moneys totaling $2,531.83, and derived from timber operations on
lands which were selected after the timber had been cut, and with the
express understanding that the selection was being made subject to the
right of the tribe to the timber money.
The original allotment of Mrs. Old Man Gray, No. 692, described as
Lots 9 and 10 of Section 1-23-13, was approved 12/05/24. (L-A 27788-
24) Trust patent No. 956967 issued 04/02/25.
The allotment was thereafter canceled, and a lieu allotment described
as N/2 NE/4 Section 17-21-12, located in the Point Grenville Logging
Unit, was approved on 02/17/26. (L-A 2612-26). Trust Patent No. 977126
issued on 04/03/26.
On 05/01/29, the SE/4 NE/4 of this lieu allotment, namely, the SE/4
NE/4 of Section 17-21-12, located in the Point Grenville Logging Unit,
and on which logging operations had been completed on 01/20/29, was
relinquished in order that it might be used for forestry administration
purposes -- the Point Grenville tower site; and on the same date the
selection, in lieu thereof, of Lot 3 in Section 21-22-10, located in the
Cook Creek Logging Unit, and on which logging operations had been
completed on 10/04/28, was approved. (L-A 18292-29). Trust Patent No.
1029080 issued on 06/29/29.
Prior to the above exchange, all timber moneys derived from timber
operations on said SE/4 NE/4 of Section 17-21-12, less the usual 8%
deduction for timber expense, had been credited to the account of said
Mrs. Old Man Grey.
She, therefore, was plainly not entitled to the moneys derived from
timber operations on said Lot 3 in Section 21-22-10, for which said SE/4
NE/4 of Section 17-21-12 was exchanged.
The exchange was simply an exchange of cut-over land for cut-over
land, the timber moneys derived from logging operations on said lot 3 in
Section 21-22-10 still remaining tribal.
The moneys derived from timber operations on said Lot 3 in Section
21-22-10 amounts to $1,646.69, and will be treated as tribal money, and
distributed as such, unless the Office otherwise directs.
The setting aside of the SE/4 NE/4 of said Section 17-21-12 for
forestry administration purposes was approved by the Secretary of the
Interior on 06/26/29. See Office letter of 06/14/29. (L-A 52381-28).
The case of the heirs on Nina Jackson, deceased allottee No. 300, is
similar to that of Mrs. Old Man Grey, deceased allottee No. 692.
The original allotment of Nina Jackson, deceased allottee No. 300,
described as the S/2 NW/4 Section 26-22-11, located in the Cook Creek
Logging Unit, was approved on 12/31/08 and Trust Patent No. 43624 issu-
ed to the allottee on 01/28/09.
On 02/16/30 the NE/4 of the NW/4 of this allotment, namely, the
NE/4NW/4 of Section 26-22-11, located in the Cook Creek Logging Unit,
and on which logging operations had been completed on 08/31/29 was
relinquished by the heirs of said Nina Jackson, deceased, who died on
05/26/16 (Prob. 70356-18), in order that it might be used for forestry
administration purposes -- the Cook Creek Lookout; and on the same date
the selection, in lieu thereof, of the SW/4 SW/4 of Section 21-22-10,
also located in the Cook Creek Logging Unit, and on which logging
operations had been completed on 10/04/28 was approved (L-A 4597-30).
Trust Patent No. 1037318 on 05/05/30.
Prior to the above exchange all timber moneys derived from timber
operations on said NE/4 NW/4 of Section 26-22-11, less the usual 8%
deduction for timber expense, had been credited to the heirs of said
Nina Jackson, deceased allottee No. 300.
They, therefore, were plainly not entitled to the moneys derived from
timber operations on said SW/4 SW/4 of Section 21-22-10, for which said
NE/4 NW/4 of Section 26-22-11 was exchanged.
The exchange was simply an exchange of cut-over land for cut-over
land, the timber moneys derived from logging operations on said SW/4
SW/4 of Section 21-22-10 still remaining tribal.
The moneys derived from logging operations on said SW/4 SW/4 of
Section 21-22-10 amounts to $885.24, and will be treated as tribal
money, and distributed as such, unless the Office otherwise directs.
Accompanying this letter is a schedule of 8 pages containing the
names of the selectors, descriptions of the selections, dates of the
selections, dates when cutting began, and value of the timber removed
from the various tracts of tribal land with which this letter deals.
Attached to this schedule is an additional page which summarizes the
contents of the preceding 8 pages.
This schedule and the summary have been prepared with the object in
view of furnishing the Office with a convenient and ready reference to
the details with which this letter is concerned.
It will be noticed by referring to the summary under the headings
"Not finished. Selected after cutting began," and "Finished. Selected
after timber was cut," and then referring to the preceding pages of the
schedule where the corresponding values shown in the summary will
readily be found, that all of the selections made after cutting began
were made in 1932 on the dates noted with lead pencil on the summary,
and that one of the selections made after the timber was all cut was
made in 1932 on the date noted with lead pencil on the summary.
Regarding these particular selections Mr. Roblin, the Special
Allotting Agent, desired me to say that in each and every case the
selection was made with the plain understanding on the part of the
selector that the selection was being made subject to the rights of the
tribe to all moneys which shall be determined to be tribal by the
Office.
There were really two selections made in 1932 after the timber was
all cut, namely, that of Kenneth Johnson Rosander, son of Katherine Hawk
Rosander, No. 616, who selected the NE/4 NW/4 Section 20-22-10 on
06/18/32.
Timber operations were completed on 04/10/28 and the value of the
timber cut is $729.79.
See page 4 of the schedule, and see also the summary under the
heading "Finished. Selected after timber was cut."
The other selection which was made in 1932, and after the timber was
all cut, is that of Marie R. Johnstone Brickson, No. 1556, described as
NE/4 SE/4 of Section 30-21-11, which was selected for her, subsequent to
the completion of the accompanying schedule, as a substitute for the
NW1/4 NW1/4 of Section 22, Twp. 21 North, Range 11 W of the W.M. which,
though decreed to her by the Federal Courts, had been previously
allotted and patented to Frank Mounts.
See Office letter of 07/13/32 to Mr. Charles E. Roblin, Special
Allotting Agent, approved by the Assistant Secretary on 07/15/32.
This lieu selection, if acquiesced in by the Indian and approved by
the Office, will, of course, constitute an exception to the ruling that
where a selection is made from tribal land, after the timber is all cut,
the timber money belongs to the tribe and not to the selector.
The value of the timber cut from this selection which was first
selected for Donald Williams on 05/26/32, and on which timber opera-
tions were completed on 02/20/29, and later selected for Marie E.
Johnston, is $1,879.64.
This sum of $1,879.64, less the usual 8% deduction for timber
expense, will accordingly be placed to the credit of Marie E. Johnstone
Erickson in the event that the change is acquiesced in by the Indian and
approved by the Office.
See Office letter of 07/13/32 to Mr. Charles E. Roblin, Special
Allotting Agent, approved by the Assistant Secretary on 07/15/32.
See also page 7 of the schedule and the summary thereto.
Another exception to the ruling that where a selection is made from
tribal land after the timber is all cut, the timber money belongs to the
tribe and not to the selector, arises in the case of Lawrence Ward, No.
1597, for whom was selected, subsequent to the completion of the
schedule, the NE/4 SW/4 of Section 19-21-11 as a substitute for the SW/4
SW/4 of Section 15-21-11 which, though decreed to him by the Federal
Courts, had been previously allotted and patented to Catherine Mounts.
See Office letter of 07/13/32 to Mr. Charles E. Roblin, Special
Allotting Agent, approved by the Assistant Secretary on 07/15/32.
See also page 6 of the schedule and the summary thereto.
Timber operations on this selection were completed on 04/20/29, and,
as before stated, the selection was made subsequent to the completion of
the accompanying schedule. The value of the timber removed is
$1,770.23. This sum, less the usual 8% deduction for timber expense,
will accordingly be placed to the credit of Lawrence Ward, in the event
that this lieu selection is acquiesced in by the Indian and approved by
the Office.
See Office letter of 07/13/32 to Mr. Charles E. Roblin, Special
Allotting Agent, approved by the Assistant Secretary on 07/15/32.
See also page 6 of the schedule and the summary thereto.
Two other selections were made on 03/20/28, after the timber had all
been cut.
One of these selections is that of Robert George McAllister, son of
Grover G. McAllister, No. 480, who selected the SW/4 NW/4 of Section
26-21-12 on which timber operations had been completed on 02/20/28. The
value of the timber is $241.66. Under the ruling that where a selection
is made from tribal land, after the timber is all cut, the timber money
belongs to the tribe and not to the selector, this selection is
worthless to the Indian, unless the fact that a separate record has been
kept of the timber logged from each particular tract and Government Lot
will operate in the Indian's favor.
The other selection is that of Delbert John McBride, son of Pauline
McAllister-McBride, No. 478, who selected the SW/4 NE/4 of Section
26-21-12 on which timber operations had been completed on March 10,
1928, -- ten days before the selection was made. The selection was
made, as before stated, on 03/20/28. The value of the timber is
$1,344.06. Under the ruling that where a selection is made from tribal
land, after the timber is all out, the timber money belongs to the tribe
and not to the selector, this selection also is worthless to the Indian,
unless the fact that a separate record has been kept of the timber
logged from each particular tract and Government Lot will operate in the
Indian's favor.
See page 2 of the schedule and the summary thereto.
Moneys derived from timber operations on these two selections,
namely, the selections of Robert George McAllister and Delbert John
McBride, (page 2 of the schedule and the summary thereto), as well as
moneys derived from timber operations on the selection of Kenneth
Johnson Rosander (page 4 of the schedule and the summary thereto), will
accordingly be treated as tribal money, and distributed as such, unless
the Office shall rule that the fact that a separate record has been kept
of the timber logged from each particular tract and Government Lot
operates in the Indian's favor, and directs that, in each of these
cases, the timber moneys, less the usual 8% deduction for timber
expense, be deposited to the credit of the Indian.
Unless the Office otherwise directs, as before stated, all timber
moneys derived from timber operations on tribal lands selected after the
timber was all cut, will be treated as tribal funds, and distributed as
such, with the exceptions above noted, namely, those of Marie E.
Johnstone Erickson, No. 1556, noted on page 7 of the schedule in red
ink, and that of Lawrence Ward, No. 1597, noted on page 6 of the
schedule in red ink.
Unless the Office otherwise directs, as before stated, all timber
moneys derived from timber operations on tribal lands selected after
cutting began, but on which timber operations have not yet been
completed, will be treated as tribal funds up to the date of selection,
and distributed as such.
By referring to the summary under the heading "Not finished.
Selected after cutting began," it will be noted that 8 selections were
made from tribal lands after cutting began, but on which timber
operations have not yet been completed.
Two of these selections were denied, namely, that of Barbara Jean
Tuttle, who selected the SE/4 SE/4 of Section 15-21-11 (page 4 of the
schedule and the summary thereto), and that of Jack Maxwell Williams who
selected the SW/4 NW/4 of Section 29-21-11 (page 7 of the schedule and
the summary thereto).
These denials simply place the property in the class of unselected
tribal lands, instead of in the class of tribal lands selected after
cutting began, and before the completion of timber operations.
It would seem that all selections, made after the timber was all out,
would avail the selectors nothing, unless the Office shall rule that the
fact that a separate record has been kept of the timber logged from each
particular tract and Government Lot operates in the Indians's favor, and
should be charged except in the cases of Lawrence Ward and Marie E.
Johnstone Erickson above noted.
It would also seem that all selections made after cutting began, and
where the timber operations have not yet been completed, should be
changed where the value of the timber cut is of any considerable amount;
for, in such cases, the money would seem to be tribal money, at least
up to the point of the date of selection, unless the Office shall rule
that the fact that a separate record has been kept of the timber logged
from each particular tract and Government Lot operates in the Indian's
favor and entitles him to the money after the usual deduction of 8% for
timber expense.
Where the logging is not finished, and the selection was made after
cutting began, and the value of the timber so far cut is inconsiderable,
as, for instance, in the case of Alvin Oya's selection where the value
of the timber cut is only $5.51 (page 3 of the schedule), and in the
case of the Henry Petit selection where the value of the timber cut is
only $12.57 (page 3 of the schedule), in both of which cases the cutting
consists of the cutting of ties for use in the construction of a road
bed for a logging railroad through tribal lands outside of the
contractor's logging unit, it would seem that these selections should
not be changed. The value of the timber cut is small, and the selection
is not materially affected, though the money would seem to be tribal up
to the date of the cutting, and should be distributed as such unless the
Office shall rule that the fact that a separate record has been kept of
the timber logged from each particular tract and Government Lot operates
in the Indian's favor, and entitles him to the money after the usual
deduction of 8% for timber expense.
The attention of the Office is specially invited to the summary and
to the headings "Not finished. Selected after cutting began," and
"Finished. Selected after timber was cut."
The heading of the summary "Not finished. Selected after cutting
began", concerns the following selections:
Jesse Lawrence Jensen, the value of the timber cut being $246.40.
(page 2 of the schedule. See also the summary).
Alvin Oya, the value of the timber cut being $5.51. (page 3 of the
schedule. See also the summary).
Henry Petit, the value of the timber cut being $12.87. (page 3 of
the schedule. See also the summary)
Paul W. Williams, the value of the timber cut being $1,068.30. (page
5 of the schedule. See also the summary)
Phyllis Ann Cowan, the value of the timber being $613.29. (page 6 of
the schedule. See also the summary)
Florence Williams, the value of the timber being $46.30. (page 5 of
the schedule. See also the summary)
NOTE: The selections of Barbara Jean Tuttle, the value of the timber
cut being $192.48, and Jack Maxwell Williams, the value of the timber
cut being $580.17, as before stated, were denied. See pages 4 and 7 of
the schedule and also the summary.
The heading of the summary "Finished. Selected after timber was
cut", concerns the following selections:
Robert George McAllister, the value of the timber cut being $241.65.
(page 2 of the schedule. See also the summary)
Delbert John McBride, the value of the timber cut being $1,344.06.
(page 2 of the schedule. See also the summary)
Kenneth Johnson Rosander, the value of the timber cut being $729.79.
(page 4 of the schedule. See also the summary)
NOTE: The selection of Donald Williams, the value of the timber cut
being $1,879.64, was changed, and, pursuant to the ruling in Office
letter of 07/13/32 to Mr. Charles E. Roblin, Special Allotting Agent,
approved by the Assistant Secretary on 07/15/32, was selected for Marie
E. Johnstone Erickson, as before stated. See page 7 of the schedule,
and also the summary.
It is assumed that this selection will, when acquiesced in by the
Indian and approved by the Office, constitute an exception to the ruling
that where a selection is made from tribal land, after the timber is all
cut, the timber money belongs to the tribe and not to the selector.
It is also assumed that the selection made for Lawrence Ward (page 6
of the schedule and also the summary), pursuant to the aforesaid letter
of the Office under date of 07/13/32, will constitute another exception
to the said ruling when acquiesced in by the Indian and approved by the
Office.
An early reply from the Office is respectfully requested.
Very respectfully
N. O. Nicholson,
Superintendent.
HES-003-1868-1877
HES-003-1868-1877
IIA32.3 320723
COMM OF INDIAN AFF
320217
CORRESPONDENCE
MUCK, LEE
424 Federal Building
Spokane, Washington
February 17, 1932
Commissioner of Indian Affairs
Washington, D.C.
Sir:
Reference is made to the radio message received from the Office under
date of 02/16/32, which reads as follows:
"Consult Howarth Nicholson readjustment report Feb. 5, Taholah,
and submit recommendations by letter."
The report referred to covers the readjustment of stumpage prices on
the Point Grenville Unit of the Quinaielt Indian Reservation, as
effective 04/01/32. After carefully reviewing the trend of the log
market and the cost of production in the Grays Harbor Region and
outlining the unfavorable position of the lumber industry in that
locality, the report recommends that the price of the spruce timber be
reduced from $2.50 to $2.25 per thousand and the hemlock from $.80 to
$.60 per thousand, namely, the minimum prices stipulated in the
contract.
Before proceeding to a discussion of the facts which should be taken
into consideration in the determination of action on the case, I wish to
direct attention to certain obvious inconsistencies in the log values of
spruce used in the Howarth report as against the value for this same
specie and period exhibited in the Steer report of 02/05/29. The
details in this connection are as follows:
Page 2
Commissioner of Indian Affairs
February 17, 1932
Steer Report 02/05/29....................... Howarth Report
02/05/32
Grade ... Price ..... % .... Extension .... Grade .... Price
1 ..... $28.50 ... 11 ..... $ 3.135 ....... 1 ..... $28.87
2 ...... 17.75 ... 43 ....... 7.6325 ...... 2 ...... 18.18
3 ...... 11.50 ... 46 ....... 5.29 ........ 3 ...... 11.77
Average ..................... $16.06 .... Average ... $15.47
The average value of $16.06 per thousand was established in the Steer
report through the application of the grade percentages of 11, 43 and 46
for Nos. 1, 2 and 3 spruce respectively, namely the percentage of the
log grades obtaining in the Point Grenville Unit up to and inclusive of
12/31/25. Mr. Steer states in this connection that "the percentages of
the different grades of spruce used in the above computations are those
actually obtained from the Point Grenville Unit up to 12/31/25 and are
the same percentages of spruce used in the first readjustment report."
The Howarth report approaches the determination of the average value
of spruce from a different angle by introducing the actual weighted
average into the calculations and establishing an average value for
spruce covering the three-year period ended 12/31/28 of $15.47, which is
not consistent with the average value of $16.06 determined and used for
the same period in the Steer report of 04/05/29. There is consid-
erable merit in the method advocated and applied in the Howarth report.
However, the average value of $16.06 per thousand was used in the
readjustment effective 04/01/29 and
Page 3
Commissioner of Indian Affairs
February 17, 1932
it follows that this figure must be brought forward and applied in
the determination of the readjustment effective 04/01/32.
For the reasons above given, it is my opinion that the log value set
forth on page 4 of the Howarth report of 02/05/32 for the three-year
period ended 12/31/28 should be changed so as to conform to the values
established in the Steer report of 02/05/29, and that the average value
established for spruce logs for the period ended 12/31/31 should be
redetermined on the basis of the actual percentages of No. 1, No. 2 and
No. 3 logs developed in the Point Grenville Unit during 1929-1930-1931.
The direct weighted average method introduced into the record by Mr.
Howarth would probably reflect the trend of average spruce values more
accurately than the method used by Mr. Steer. However, consistency
demands that the percentage method adopted in the first reports be
followed through in order that the trend of values may not be disturbed.
Proceeding to a discussion of the recommendation contained in the
Howarth-Nicholson report, I wish to direct attention to my report on
this case of one year ago, namely, Forestry 31250-21, dated 02/21/31.
In that report, I took the position that the stumpage prices of $2.50
per thousand for spruce and 80 cents per thousand for hemlock should be
continued for the period 04/01/31 to 03/31/32 because of the favorable
price differential which existed on the Point Grenville Unit.
Conditions in this connection have not changed during the past
unfavorable year and although log prices have declined, it must be
admitted that from the angle of comparative values there is only a
limited justification for a reduction in the sumpage prices in effect
under this contract. It must be further admitted that the price
obtaining on the hemlock is especially
Page 4
Commissioner of Indian Affairs
February 17, 1932
favorable and that a reduction to the original valuation of 60 cents
per thousand would place the hemlock in the Point Grenville Unit
seriously out of line with other contracts on the Quinaielt Indian
Reservation. Another pertinent fact which should receive consideration
is that there has been little decline in the value of hemlock logs
during the year 1931, and that a reduction of 20 cents per thousand
would take 25 percent of the value of the stumpage, whereas log prices
during the past three years reflect a decline of only about 10 percent
over the preceding three-year period.
Spruce logs reflect a material decline in value during 1931 as
compared with 1930 and the trend in this connection provides some
justification for a reduction in the value of the spruce stumpage. On
the other hand, however, spruce logs have shown only a moderate decline
in value for the three-year period ended 12/31/31, as compared with the
preceding three-year period.
When viewing the problem from the lumberman's point of view, the fact
must be recognized that the industry is in a very serious position and
that it is seeking every possible means of relief in order to maintain
itself. The M. R. Smith Lumber & Shingle Company has experienced
especially severe business reverses and one can readily understand its
desire to have stumpage costs reduced to a minimum. Such action would
materially assist the corporation during this period of extreme low log,
lumber and shingle values and is clearly authorized under the terms of
the contract.
The trend of the log market during the past three years has been such
that the average value of spruce and hemlock for that period is under
the basic log values stipulated in the contract, namely, a stipulated
price of $15.75 for spruce as against a three-year average of $15.49 for
the period ended 311231 and a stipulated price of $9.50 for hemlock as
against a three-year average of $8.92 for the period ended 12/31/31.
Clearly, conditions
Page 5
Commissioner of Indian Affairs
February 17, 1932
with respect to a downward readjustment in stumpage prices have been
met and there is ample authority for taking such action.
In view of the above trend in log values, requirements with respect
to the revaluation of the timber under this contract and the uncertainty
which exists with respect to the log market during the year 1932, it is
my opinion that equitable action on this case would best be effected
through a reduction in the price of spruce and hemlock stumpage to the
original prices stipulated in the contract for a period of one year,
with the provision that there will be a return to the prices now
obtaining on 04/01/33 if conditions so warrant.
Accordingly it is hereby recommended that the following schedule of
prices be placed in effect on the Point Grenville Unit as of 04/01/32,
namely:
Specie .......... Price ........ Period
Cedar ........... $2.60 ........ 04-01-32 to 03-31-35
Spruce ........... 2.25 ........ 04-01-32 to 03-31-35
W. Pine .......... 1.50 ........ 04-01-32 to 03-31-35
D. Fir ........... 2.25 ........ 04-01-32 to 03-31-35
Am. Fir ........... .60 ........ 04-01-32 to 03-31-35
Hemlock ........... .60 ........ 04-01-32 to 03-31-35
Cedar Poles:
20/6 ............. 1/2[ ......04-01-32 to 03-31-35 21/6 to 45/9
... 1-1/2[ ......04-01-32 to 03-31-35 Over 45/9 ...... 1-3/4[
......04-01-32 to 03-31-35
D. F. Piling ...... .01 ........04-01-32 to 03-31-35
prespectfully submitted,
Lee Muck
Asst. Director of Forestry
LM/AT
cc - Taholah Indian Agency
- J. A. Howarth, Jr.
HES-003-1878-1882
HES-003-1878-1882
IIA32.2
COMM OF INDIAN AFF
380926
CORRESPONDENCE
HERITAGE, WILLIAM ; TAHOLAH INDIAN AGE
Commissioner of Indian Affairs,
Washington, D.C.
Dear Sir:
I spent from Sept. 12 to Sept. 16, inclusive, in examining the fire
problem of the Quiniault Indian reservation, Washington. On Sept. 17,
in company of Forest Supervisor Horwath and Senior Rangers McKeever and
Briggs, visited the operations of the Simpson Logging Company, of
Shelton, Washington, where "cats" are being used in logging fir timber.
At the camp we visited the nature of the coil is such that as soon as
the fall rains start the cats become mired, but we were told that at
Camp No. 3 the soil was such that they were able to operate them the
year around. There is no doubt that they save much of the timber
ordinarily knocked down by the skidder. But it appears that the high
line yarder, with its tight main line, does no more damage to the
remaining stand than the cats. Also, because of the soil of the
Quiniault reservation, it would not be possible to operate tractors.
The Quiniault reservation, of some 200,000 acres, contains about
3,000,000 M feet of timber, with a value in excess of $7,000,000. The
entire area, with the exception of some seven forties of land, has
either been allotted or selected for allotments which will be approved
within a short time. The allotting of this land, with the issuing of
fee patents in many cases, makes the practice of forestry impossible;
and, in my opinion, the only thing the Indian Service can do is to
secure the highest value possible for the forest products, protect the
standing timber from fire, giving the cut-over land only that protection
which is necessary to protect the uncut timber.
Almost all the timber lying south of the Quiniault river, and some
11,000 acres lying north of the river in the northeast corner of the
reservation, is under timber contract. Operations were being conducted
by three companies during the time of my visit but at a much restricted
rate as compared to their normal capacity.
All operators log by railroad; and by purchasing the tressels at the
completion of the logging, which can usually be secured at a figure much
below their value, it is possible for the Indian Service to construct
fire protection roads for a low figure. Due to the heavy rainfall the
companies use considerable gravel on their railroad grades, and this
gives a firm foundation to the fire protection roads.
It has not been the policy to run fire over the logged area, as it is
believed that this causes the growth of ferns and fire woods which
furnish fuel for a second and hotter fire than the first. In discussing
this problem with Forest Service officials they seemed to believe that
it was necessary to run one fire over the area and then try to keep out
the second one. At present there is a large area of slash that has not
been burned, and within it is considerable young growth. However, it
presents a chance for incendiarism which was shown by the number of
fires set on July 1 of this year. After such discussion by Forest
Supervisor Howarth and Superintendent Nicholson it was believed that a
chance would be taken; and no one was hired to fight these fires which,
then they ran together, covered several thousand acres. Only the
regular men were sent to this fire, and they with three or four men who
were watching the Hobi camp were all who worked on the fire, which
burned for three days and did only small damage to a few of the logging
operators' tressels. But, it requires nerve to decide to allow a fire
of this size to run. It had one desired effect. No more fires were set
during the entire season, for why set a fire when no one was hired to
put it out?
After the operators move out and the fire roads are built it may be
advisable to burn certain blocks in order to break up this large area of
slash so that, in case it was necessary to fight fire, some opportunity
for control would exist.
An eighty foot lookout tower is located in Section 17, T.21 N. 2 R.
12 W. However this covers only a limited area, and, being located so
near the Pacific ocean, the vision is often obscured by fogs. A road,
using old railroad grades, has been constructed to it. A spar tree 170
feet in height was developed as a Lookout. This is located in Section
26, T. 22 H., R. 11 W., on land which is now reserved for administrative
purposes. This tree lookout covers only a limited area, and, altho of
great value while logging was being conducted in that area, will soon be
of little use. A forty of land north of the Queets river, in Twn. 24
N., Range 13 W., which contains a hill about 400 feet high, has been
reserved for administrative purposes and will make a lookout site when
logging reaches that area.
Supervisor Howarth and I, in company of Ranger Fulton of the Olympic
National Forest, walked to the top of a hill lying north of Quinault
Lake, known as Higley Mountain. The Forest Service wish to develop this
as a lookout site. They have constructed a trail over four miles in
length, costing about $400 per mile to build, and have built a telephone
to the site of the lookout. At the time of our visit they were cutting
the timber from the top of the mountain, which will cost $300,000. The
day we were there, due to smoke hanging over the area, only a partial
view of the reservation could be had, but it appeared that almost all
the reservation would be visible on a clear day. When the rest of the
timber is removed Supervisor Howarth is planning on making another trip,
as soon as proper conditions occur.
The only other spot which can cover any of the area is Ions Mountain,
which is allotted and from which it would be necessary to cut not less
than 2,000 M feet of timber in order to see out. However, this may be
the proper point for a lookout after logging has been conducted. The
Forst Service plan on constructing a house on Higley Mountain which they
estimate will cost $450.00. They desire that the Indian Service
cooperate in the cost of constructing the building, and I believe if the
view from this mountain is what it appeared to be that we should invest
the $225.00. If Mr. Howarth makes a favorable report I urge that we
cooperate to at least that extent.
In constructing roads now being built on the Quiniault reservation
there is urgent need for a "cat" and a heavy grader. I believe a
tractor with a power of at least 50 horse is needed and a ten-foot heavy
grader, and urge that favorable consideration be given the request this
Agency now has before your Office for the purchase of this equipment.
This equipment will prove of great value in building the fire roads from
the old logging railroad grades, of which there will be a large mileage
as soon as the Hobi Timber Company completes their operation, which it
is now planned will be in about six months.
The Forest buildings at Raft river, Tree Lookout, and Experimental
area, were in excellent shape and presented a pleasing appearance.
The Public camp grounds at Raft river has been kept in excellent
shape, and the Forestry Officers are to be commended on its fire
appearance and attractiveness.
All tools and fire fighting equipment was found in proper shape. The
present equipment, consisting of seven fire pumps and two miles of hose,
with axes and the usual other small tools, appears to be sufficient for
a normal season. However, I believe the purchase of 6 "Propane" gas
back-firing torches and the necessary containers for the liquid gas,
which would cost approximately $100.00, would greatly strengthen the
equipment. I visited the Forest Service fire equipment warehouse at
Vancouver, Washington, with Forest Supervisor Gray, of Warmsprings
Agency, on Sept. 23. They carry the extra suppression equipment for
Region No. 6 at that point. At the time of our visit they had equipment
for about 500 men, but were expecting to purchase considerable more this
coming winter. I was told by the Assistant Regional Forester, in charge
of Fire Protection, that they would be glad to lend us equipment in case
of an emergency, should their equipment not be in use. With our limited
funds I cannot see how we can hope to hold suppression equipment for
more than the normal season, but our Forest Supervisors should know
where additional equipment can be secured and in what amount, should it
be needed in case of a "blowup".
Only a few minutes was spent at the Experimental Area, because of it
being almost dark at the time of our visit, but the planted trees have
made rapid growth, and the work should give some interesting data.
The fire plan has not been revised for several years, altho the
Office instructions call for a revision each year and submission of the
plan to the Office on years divisibly by five. A record is kept at all
camps of railroads, swamp area, roads, and skidder trails so they may be
used as fire breaks in case of fire. A copy of this record is also
maintained in the office at Hoquiam.
In view of the limited funds available for fire protection and
suppression it appears that the building of protection roads from old
logging railroad grades, the maintaining of fire tools for a normal
season, the securing of data showing all natural and man-made fire
barriers and the incorporating of this data into a fire plan, copies of
which are furnished all members of the regular force, is about all that
can be done at this Agency because of the fact that every acre is
allotted to individual Indians, much of which has or will be alienated
from government supervision.
RECOMMENDATION:
I recommend: (1) that a fifty horse power "Cat" and a ten foot heavy
road grader be granted this Agency for road building, and that all old
logging railroad grades necessary for fire roads or fire breaks be
cleared and maintained;
(2) that cooperation by approved in the construction of a lookout
building on Higley Mountain in case Forest Supervisor Howarth reports
that it properly covers the Quiniault reservation;
(3) that purchase of several new type back-firing torches be made.
Respectfully submitted,
William Heritage,
Logging Engineer,
On Special Forest Protection
Detail.
cc to Supt. Nicholson,
Forest Supervisor Howarth,
Sr. Ranger McKeever,
Asst. Director Muck.
HES-003-1883-1889
HES-003-1883-1889
IIA32.1
COMM OF INDIAN AFF
310810
CORRESPONDENCE
HOWARTH, JAMES A NICHOLSON, N O
Hoquiam, Washington,
August 10, 1931
Mr. Lee Muck,
Asst. Director of Forestry,
424 Federal Bldg.,
Spokane, Washington.
Dear Mr. Muck:
Herewith is submitted a report answering your recent Forest Resours-
es Questionaire which was called for by 08/15/31. The data is as of
06/30/31. It should be noted that the big fire of July was not
included. This fire covered probably 1000 acres of new burn and 2000
acres of reburn.
Very truly yours,
James A. Howarth Jr.
Forest Supervisor.
Approved:
N. O. Nicholson,
Superintendent.
I. Area of Forest ............................... Acres
1. Merchantable Timber Area .................. 153,242.67
2. Cut over area that bore timber# ............ 20,008.28
2 1/2. Sub-total natural timber land ......... 173,251.15
3. Non Merch. timber land cut over ............... 160.00
Non Merch. timber land not cut over .......... 1,920.00
4. Total land area under I. O. Jurisdiction .. 175,331.15
5. Percent of above that is trust patented ....... (60.4)
6. Additional fee patented area## ............. 14,289.84
7. Total land area ........................... 189,620.99
8. Water area including Quinaielt Lake ......... 7,023.98
9. Total land and water ...................... 196,644.97
# Items 2 and 3 totalling 20,168.28 acres represents the total cut
over area as covered by certificates of completion which are promptly
filled out and so compare closely with the land actually logged.
the total prairie area of the reservation total about 2400 acres.
Note that the cut over land includes the following:
Allotted land cut over .................... 17,251.54
Unreserved Tribal land cut over ............ 1,953.98
Reserved Tribal land cut over ................ 952.76
Total land cut over ....................... 20,158.23
excluding fee patented areas.
II. Volume of Virgin Merchantable Timber by Species, on lands under
Indian Office jurisdiction.
1. Cedar .......... 48% ........... 1,489,563.6 M
2. Hemlock ........ 26% ............. 006,846.9 M
3. Spruce ......... 10% ............. 310,325.7 M
4. Doug. Fir ....... 8% ............. 248,260.6 M
5. Amab. Fir ....... 7% ............. 217,228.0 M
6. White Pine ...... 1% .............. 31,032.6 M
7. Total ......... 100% ........... 3,103,257.4 M
7 1/2. % of unlogged area that is allotted 57.2%
8. % of virgin timber on allotted land about 80%.
Note that the last estimate disagrees with page 4 of the annual
report of 1931 where for purposes of estimating values it was assumed
that allotted and unallotted lands averaged equal in timber stand. This
is not the fact as the unallotted lands have much the poorer stands of
timber.
III. Volume of merchantable timber left standing on logged over
lands.
Practically nothing.
IV. Volume of Unmerchantable timber left standing on 20,168.28 acres
of logged over lands, mostly cedar swamps.
1. Cedar ................ 200 M
2. Hemlock .............. 300 M
3. Spruce ................... practically nothing.
4. Doug. Fir ................ practically nothing.
5. Amabilis Fir ............. practically nothing.
6. White Pine................ practically nothing.
7. Total ................ 500 M
8. Percent of volume on allotments @ 57.2 (on area basis) V.
Average Annual Increment BM per acre.
1. Unlogged Merch. Timber Land ..................... None
2a. Logged Areas 15,408 acres not burned ........... 100 Bd. FT.
2b. This is figured on basis of area being 20% stocked with
seedlings.
2c. Logged areas 4306 acres burned over, not planted, nominal.
2d. Logged Areas 294 acres, burned over and planted .. 500 Bd.Ft.
Note these are figured on a rotation period of 90 years or more.
3. Non-Merch. timber land, 2080 acres ............ nothing
4. Average new growth all forest land .......... about 100 Bd. Ft.
(actual average on above date @ 97 Bd. Ft.)
VI. Volume of timber cut annually from all units
(TABLES OMITTED SEE ORIGINAL) 2 PAGES
Moclips Unit Fiscal Year:
TABLE OMITTED SEE ORIGINAL
Point Grenville Fiscal
TABLE OMITTED SEE ORIGINAL
Cook Creek Fiscal
TABLE OMITTED SEE ORIGINAL
Quinaielt Lake Fiscal
TABLE OMITTED SEE ORIGINAL
Mounts Unit Fiscal Year
TABLE OMITTED SEE ORIGINAL
Hatch Fiscal year - Upper Wreck Creek
TABLE OMITTED SEE ORIGINAL
Hall Units Fiscal years
TABLE OMITTED SEE ORIGINAL
Moclips Calendar years
TABLE OMITTED SEE ORIGINAL
Point Grenville Calendar year
TABLE OMITTED SEE ORIGINAL
Cook Creek Calendar years
TABLE OMITTED SEE ORIGINAL
Quinaielt Lake Calendar years
TABLE OMITTED SEE ORIGINAL
Hatch Calendar years - Upper Wreck Creek Calendar Years
TABLE OMITTED SEE ORIGINAL
Mounts Unit - Hall Unit
TABLE OMITTED SEE ORIGINAL
VII. Operators dependent more or less on timber from Quinaielt
Indian Reservation. All located in Grays Harbor, Washington.
(TABLE OMITTED SEE ORIGINAL)
VIII. Real and Personal Taxes paid by Operators developing Indian
Reservation Timber.
Ozette Railway Company, Grays Harbor County, Washington.
Real Property Tax 1930 none
Personal Property Tax $3,111.25 - 1929 paid 1930.
Hobi Timber Company, Grays Harbor County, Washington.
Taxes on land and timber 1930 $4,781.10
Taxes on Personal property 1930 $5,249.26
Aloha Lumber Company, Grays Harbor County, Washington.
Real property taxes 1930 $3,114.16
Personal property taxes 1930 $5,973.70
M. R. Smith Lbr. & Shgl. Co., Grays Harbor County, Washington.
Real Property Tax 1930 $1,491.47
Personal Property Tax 1930 $4,608.24
IX. Schedule of Current Timber Contracts
(TABLE OMITTED SEE ORIGINAL) 4 PAGES
XI. Indians Employed in Timber Operations.
Ozette Railway Company none
Hobi Timber Company employed one Indian during the past year in the
woods and his earnings were about $1,400.00
Aloha Lumber Company employ no Indians at present, but occasionally
one is employed.
M. R. Smith Lumber & Shingle Company employed two Indians in 1930.
and their total earnings were only $329.78.
Indians rarely seek employment of these companies.
XI. There are no government owned or Indian owned saw mills on the
Quinaielt Indian Reservation or connected with the Taholah Agency.
XII. Average annual drain on forest other than lumber during the
nine fiscal years 1923-1931 that timber sales have been in operation.
Cut under permits for fuel, posts, etc. nothing.
Fire loss; fires do not burn in green timber.
Windstorms; loss since the big storm of 1921 nearly equals
the growth.
Insect damage; principally to spruce near beach.
Fungus deterioration together with the loss from other causes above
is believed to equal the annual growth in the virgin stands of timber.
XIII. General Condition of Timber.
Like all virgin stands of timber there is a large percentage of
mature and hyparmature timber and timber dying from age and fungus
attack. Insect damage is mostly confined to inferior limby spruce
stands near the ocean.
XIV. Sustained yield possibilities.
Very much of the reservation is poorly drained so that it is not
likely that the average per acre annual yield will exceed 400 bd. ft.
per acre Scribner Dec. C log scale figured on a rotation of 90 years or
longer. If fully stocked the normal yield might be 500 bd. ft. average.
On a basis of 400 bd. ft. growth per acre per year the sustained yield
would equal to practically 70 million bd. ft. per year (exactly
69,300,460 bd. ft.) for the 173,251,15 acres of natural timber land
still under Indian office jurisdiction (about 60 percent is allotted and
more will be allotted).
XV. Indian Population, Present and Possible Income.
The income from stumpage sales on the reservation for the past nine
fiscal years has totalled $3,102,713.41 which is an average of
$344,745.93 per year.
As the census roll shows 1005 persons this is equivalent to $343.03
per cap. per year. But the land logged is mostly allotted so that there
is not an even distribution of this money, each Indian getting 92
percent of the value of the timber logged from land allotted to him or
inherited by him. If the population should remain about 1000 this would
be a sustained yield of 70 M per head per annum. The value of this is
impossible to forecast. If it should be worth on the average $5.00 per
M, the gross income would be $350.00 per head per year which is
practically the same as the average for the past nine fiscal years.
08/10/31
JAH Jr
For Supr.
HES-003-1890-1913
HES-003-1890-1913
IIA31.1
MUCK, LEE
500724
CORRESPONDENCE
ASST FORESTER ; TAHOLAH INDIAN AGE
HES-003-1914-1952-A
HES-003-1914-1952
IIA30.3
COMM OF INDIAN AFF
300725
CORRESPONDENCE
SAMS, WILLIAM B. ; TAHOLAH INDIAN AGE KEELER, O ; TAHOLAH INDIAN AGE
The Commissioner of Indian Affairs,
Washington, D.C.
Sir:
There is transmitted herewith, through the Taholah Indian Agency, the
forestry report for the fiscal year 1930 for the Quinaielt Indian
Reservation.
Very respectfully,
(SIGNATURE ILLEGIBLE)
Assistant Forester
Approved and forwarded to the Indian Office.
INTRODUCTION:
General Description, (Narative).
1. Area and location.
The Quinaielt Indian Reservation is located in the extreme western
central part of the State of Washington, and embraces about 195,644.97
acres, as follows:
Lane area ............. 189,620.99 #
Rivers .................. 2,023.98
Quinaielt Lake .......... 5,000.00
Total ................. 195,644.97
(# Including the following amount of alienated land)
Fee patented allotments ..... 12,351,71 acres.
Land Sold .................... 1,938.13 acres.
Total ....................... 14,289.84 acres.
2. Surface features, topography, etc.
The general topography is level with the exception of a strip about
five miles in width along the Pacific Ocean and a small area of
foot-hills of the Olympics in the extreme northeastern part. Four
rivers (Queets, Raft, Quinaielt and Moclips) flowing west constitute the
main drainage system, but on the whole the reservation is very poorly
drained, resulting in large areas of Cedar swamp and several large
prairies which are under water in the winter.
3. The Forest.
The principal trees are Cedar, Spurce, Douglas Fir, Hemlock, Amabilis
Fir and White Pine. The forest types are those of the western slope of
the Cascades. Because of poor drainage, the stand of timber is very
unever, heavy and light stands of timber, Cedar swamp and open prairie
being mixed.
The completion of the Olympic Highway from Quinaielt Lake to the
Queets River has opened considerable of the northern part of the
reservation to tourist travel. In logging the eight timber sales which
have been made (totalling 1,400,000,000 feet B.M.) four logging
railroads are being built by as many different companies, making a
considerable part of the reservation lying south of the Quinaielt River
fairly accessible. Practically all of the reservation lying north of
the Quinaielt River is still accessible only by means of poor and
infrequently travelled foot trails, and will remain so, in all
probability, until the timber is sold.
4. Statistics.
(A). Estimated forest resources 300630.
............... Acreage .. M. Bd Ft Value per M Total Value
Allotted Land 92,097.84 1,841,957 ... $3.00 .... $5,525.870.00
Unallotted Land 64,159.51 1,283,190 ... $3.00 .... $5,525,570.00
# Total ...... 156,257.35 3,125,147 .............. $9,375,440.00
# This does not include the following lands:
Fee Patented Lands ............... 12,351.71 acres.
Acreage Sold ...................... 1,938.13 acres.
Reserved lands, none of
which are timbered ................ 2,522.92 acres.
Cut-over allotted land ........... 13,834.14 acres.
Cut-over unallotted land .......... 2,716.74 acres.
Total ............................ 33,563.64 acres.
(B). Estimated value of timber lands, exclusive of timber 06/30/30.
................. Acreage ...... Value per acre .. Total Value
Allotted Land ... 105,931.98 ....... $1.50 ....... $158,897.97
Unallotted Land .. 69,399.17 ....... $1.50 ....... $104,098.75
# Total ......... 175,331.15 ..................... $262,996.72
# This does not include fee patented lands, nor acreage sold.
(C). Estimated percentage of predominating species.
Cedar ......... 48%
Hemlock ....... 26%
Spruce ........ 10%
Douglas Fir .... 8%
Amabilis Fir ... 7%
White Pine ..... 1%
ORGANIZATION AND PERSONNEL
(ORGANIZATIONAL CHART OMITTED SEE ORIGINAL)
2. Analysis of personnel in table form.
(TABLE OMITTED SEE ORIGINAL) 3 PAGES
3. General discussion of personnel and organization from the point
of view of efficiency.
The principal forest activity on the Quinaielt has been and will
continue to be timber sale administration. Cutting operations are on a
large scale and almost entirely from allotments and the proper
administration of this work requires a thorough and efficient
organization.
It is believed that the forestry organization on the Quinaielt
presents a thoroughly capable and efficient organization for the
carrying out of the Forestry work under this jurisdiction in all its
phases. The positions now authorized are sufficient for the
administration of cutting operations at present rates and the
distribution of the men and positions is such as to afford a complete
and thorough system. The men engaged in this work are thoroughly
familiar with all phases of the work and are capable and dependable.
The Senior Rangers have the general work well in hand and the Rangers in
charge of the several units are well grounded in all phases of their
work and well able to break in the new men constantly coming in and to
deal with the current run of the work. It is sincerely hoped that it
will be possible to obtain and hold the men required to keep such an
organization running properly.
The increase in the cut over areas on the reservation increases the
fire danger proportionally and the heavy accumulation of brush on the
areas logged to date present a serious fire hazard. It is believed that
this situation is being reasonably taken care of through the
establishing of 2 Lookout Towers and Patrolmen and Guards at strategic
points and that reasonably adequate protection is afforded the Quinaielt
Reservation.
4. Total number of Forest employees. 19 Regular
6 Irregular
25
5. Number of acres to each employee. 8,000 acres.
1. General Expenses, Forestry.
1. Analysis of items included under this cost feature.
(a) Salaries of employees on office work.
(b) Cost of office equipment.
(c) Expenses not otherwise classified.
2. Cost of General Expense.
General Expense, Forestry .................... Total Cost ... Unit
Classification of Operating Expenses ............ Amount .... Cost
.01 Salaries and Wages, Regular Employees ...... $3,794.38#
.02 Salaries and Wages, Irregular Employees .... $ 18.00
.03 Material and Supplies ...................... $ 114.50##
.04 Repairs and Preservation of Property ....... $ -- -- -
.05 Traveling Expenses ......................... $
.05 1/2 Auto Travel ............................ $ -- -- -
.06 Expenses not otherwise classified .......... $ 37.25
Gross Operating Cost ........................... $3,964.63
# Includes $979.18 paid during 001100 and 001200 shut down.
II. Operation of forestry automobiles.
1. List of automobiles.
A. No. 6 June 1, 1926
B. Ford Light Truck
C. F. E. Briggs
D. 5,083
E. $194.85
F. 4[cents
G. Poor
A. No. 10 July 13, 1929
B. Ford Light Truck, coupe type cab.
C. Lester C. McKeever
D. 11,000
E. $215.13
F. 2[cents
G. Good
A. No. 9 June 1928
B. Ford Tudor Sedan
C. Nels O. Nicholson
D. 12,200
E. $331.19
F. 3[cents
G. Poor
2. Cost of operation of all automobiles.
Operation automobiles .... Miles Travelled .. Amount .. Unit Cost
..............................28,283 ................. Per Mile
Classification of Operating Expense
.01 Salaries and Wages, Regular Employees .... -- -- --
.02 Salaries and Wages, Irregular Employees .. -- -- --
.03 Materials and Supplies ................... $311.25 #
.04 Repairs and Preservation of Property ..... $249.43
.05 Traveling Expenses ....................... -- -- --
.06 Expenses not otherwise classified ........ $166.87
Gross Operating Cost ......................... $727.55 .. .0257
# $1,227.01 additional expended for equipment.
III. Operation of Agency Sawmill
No sawmill is operated by the Taholah Agency.
IV. Fire Protection.
The big fire danger on the Quinaielt Reservation is in the cut-over
land and, to a much lesser extent along the roads and trails traversing
the Reservation. Fires will rarely burn in green uncut timber. Two
look-out stations are in operation on the Reservation and cover the
entire logged area and most of the timbered portion of the Reservation.
One, the Point Grenville tower, is an 80 foot steel Aermotor tower. The
other, the Cook Creek Station, consists of a 7 x 7 Look-out built in a
Douglas fir tree at a point 170 feet from the ground. Both of these
stations are equipped with standard Osborne Fire Finders on which maps
of the Reservation have been mounted and with high power binoculars.
The Point Grenville tower is tied into the Government owned
Taholah-Moclips telephone line, affording direct connections with the
government house at Taholah and with two Forest Rangers at Moclips, and
to Hoquiam through the telephone control at Moclips. The Cook Creek
Look-out is tied in by phone with the headquarters camp of the Hobi
Timber Company and thence to Pacific Beach and outside points. Direct
telephone connection is also possible from the Cook Creek Station by way
of the Quinaielt Ranger Station over a co-operative telephone line built
by the Indian Service and the Forest Service. Fire fighting equipment
is in constant readiness at all logging camps and the crews, totalling
about 800 men are constantly available in case of fire.
Two men are on constant duty at the Raft River Station and are tied
in by phone with Quinaielt Lake and thence to Hoquiam. One of these men
patrols the Olympic Highway from the Queets River to Quinaielt Lake at
least once daily during the fire season, and the other patrols the
trails used by fisherman and hunters during the periods of high fire
danger. Regulations restricting camping along the Olympic Highway to
the Raft River Camping Grounds are strictly enforced by these men. The
beach between Moclips and Taholah is further patrolled during periods of
fire danger to insure that campers observe fire regulations.
Two new portable pumps, 5,000 feet of hose, axes, saws, mattocks and
other fire fighting tools for the equipping of three tool units for
crews of 25 men, were purchased during the fiscal year 1950. Two
portable pumps, 3,000 feet of hose, and enough other equipment for a
crew of 40 men is kept at the Moclips Ranger Station. One portable
pump, 1500 feet of hose, and other equipment for a crew of 35 men is
kept in Hoquiam where it can be sent out promptly, in case of emergency,
by Forestry trucks.
A recording hydro-thermograph of the most improved type is installed
in Hoquiam and furnishes continuous temperature and humidity records.
Hygrometers are also stationed at the Moclips, Point Grenville, Cook
Creek and Raft River Ranger Stations. Whether changes and forecasts are
obtained from the weather bureau at Seattle by wire such that data as to
changes in weather conditions are constantly available.
Much progress has been made in the purchase of fire fighting
equipment and in the development of a fire fighting organization. Much
additional equipment and improvements are still needed for properly
safeguarding the large areas of slash resulting from the logging
operations but, if funds are made available for a continuation of
present plans, a complete fire fighting organization for the Quinaielt
Indian Reservation will soon be obtained.
2. Discussion of character of fire season.
The annual precipitation throughout the Quinaielt Reservation is
high. The 10 year average annual precipitation at Aberdeen is about 84
inches while that around Quinaielt Lake is reported as being about 125
inches. Frequent heavy fogs, especially along the coast materially
reduce the fire hazard. There are however, periods during the summer
months when very little rain falls and when the relative humidity drops
down into the twenties for days at a time. The slash on the logged
areas is very heavy and is normally piled so high that the steady winds
prevalent to this area dries the brush out very readily and creates
periods of intense fire danger in very short order. The amount of
material on the ground is so heavy as to make the construction of fire
lines and lines of communication expensive and exceedingly slow and
fires rapidly become almost uncontrollable once they obtain headway.
3. Analysis of forest fires as outlined on Form 5-483.
Three fires occurred on the Reservation during the year 1930 and were
placed under control by the Aloha and Hobi Timber Companies at a cost of
$827.00. The total cost of fire suppression and control to the
government was $4177.60, in addition to which $2544.33 was expended for
equipment.
4. Cost of Fire Protection, as follows:
............................. Area Under ................ Unit Cost
Fire Protection ............. Protection .. Total Cost .. per acre
............................. 189,620.99 ... 4068.54 ... .021
......................................................... Unit Cost
Classification of Operating Expense .......... Amount ... per acre
.01 Salaries and wages Regular Employees ..... 601.19 ..... .003
.02 Salaries and wages Irregular Employees .. 3117.51 ..... .016
.03 Material and Supplies .................... 276.59 # ... .001
.04 Repairs and Preservation of Property ...... 18.33
.05 Traveling Expenses ........................ 12.35
.05 1/2 Auto Travel (4243 Miles) ............. 109.15 ..... .001
.06 Expenses not otherwise classified ......... 42.57
Gross Total Cost ............................ (ILLEGIBLE)
# 2544.33 additional expended for equipment.
5. Discussion of the problem.
As the area of cut over land becomes greater the fire danger on the
Quinaielt is increased proportionately. As logging operations are
completed on portions of the sale areas all necessary steps should be
taken for properly protecting these areas from forest fires. While much
progress in the line of preventive and suppressive fire protection has
been made during the past two years there is still need of much
improvement before the reservation can be considered as being properly
protected. Even though telephone connection is possible to the several
Ranger stations it often is so difficult to get in touch with the
Pacific Central as to make it advisable to construct about 4 miles of
line connecting the Taholah-Moclips line directly with the Moclips
Station-Cook Creek line, this making it possible for these stations to
communicate directly with each other. The road just completed to the
Point Grenville Lookout should be extended easterly along abandoned
railroad grades so as to make as large area of logged land accessible
and to ultimately connect the Point Grenville and Mounts logged areas.
Funds for the completion of this work are not now available but it is
proposed to do as much of the work as will be possible from any
additional funds received or from any savings made from funds already
allotted.
QUINAIELT INDIAN RESERVATON
(REPORT OMITTED SEE ORIGINAL)
V. Grazing Management.
There is no grazing on the Quinaielt Reservation.
VI. Construction and Maintenance of Roads and Trails.
1. The location of roads and trails is shown on the attached map.
2. Cost of Maintenance of Roads and Trails.
Roads and Trails ............ Total Number .. Total .. Unit Cost
............................... of miles ..... cost .. per mile
.................................. 10 ... $4,762.71 .. $476.27
...................................................... Unit Cost
Classification of Operating Expenses ....... Amount .. per mile
.01 Salaries and Wages, Regular Employees .. $ 12.78
.02 Salaries and Wages, Irregular Employees $3,581.17
.03 Material and Supplies .................. $ 788.92 #
.04 Repairs and Preservation of Propert[ ... $ 276.75
.05 Traveling Expenses ..................... -- -- -- -- -
.06 Expenses not otherwise classified ...... $ 103.09
Gross Total Cost ........................... $4,762.71
# $3.50 additional expended for equipment.
3. Analysis of new construction
(A) Point Grenville Tower Road
(B) From Moclips-Taholah Road to Point Grenville Tower
(C) One and one-half miles
(D) Dirt and gravel road over rolling and broken ground
(E) 0% to 17%
(F) $1,878.41
(G) $1,252.25
4. Cost of new construction
Point Grenville Tower Road .. Total Number .. Total .. Unit Cost
............................... of miles ..... Cost .. per mile
................................ 1 1/2 .. $1,878.41 .. $1,252.25
Classification of Operating Expense ....... Amount .. Unit Cost
...................................................... per mile
.01 Salaries and Wages, Regular Employees .. $ 519.44
.02 Salaries and Wages, Irregular Employees $ 535.00
.03 Materials and Supplies ................. $ 185.02
.04 Repairs and Preservation of Property ... $ -- -- --
.05 Traveling Expenses ..................... $ -- -- --
.05 1/2 Auto Travel (1,980 miles) .......... $ 50.95
.06 Expenses not otherwise classified ...... $ 587.00
Gross Total Cost ........................... $1,878.41
5. Outline of proposed construction.
(a) Analysis of proposed road construction.
(A) Point Grenville Tower Road (Cont)
(B) From Moclips-Taholah Road to Mounts Logging Unit.
(C) Two and one-half miles
(D) Rolling topography; dirt and gravel road.
(E) $1,000.00
(F) $400.00
(b) Estimated cost of proposed new construction.
Point Grenville Tower Road .. Total Number .. Total
(Cont) ........ of miles .....
Cost
................................ 1 1/2 .. $1,000.00
Classification of Operating Expense ....... Amount
.01 Salaries and Wages, Regular Employees .. $ 400.00
.02 Salaries and Wages, Irregular Employees ... 400.00
.03 Material and Supplies ..................... 200.00
.04 Repairs and Preservation of Property ...... -- -- --
.05 Traveling Expense ......................... -- -- --
.05 1/2 Auto Travel ........................... -- -- --
.06 Expenses not otherwise classified ............ -- -- --
Gross total cost ........................... $1,000.00
Cost per mile ................................ $ 400.00
VII. Telephone Operation and Construction.
1. Inventory
A. Taholah-Moclips
B. Taholah-Moclips
C. About 9 1/2 miles
D. None
E. About 9 1/2 miles
1. Insulators, 600, No. 16 Glass
2. No. 10 copper wire
3. 25 ft poles
4. Value $2991.55
F. Value $2991.55
G. Excellent
A.A. Extension to Taholah-Moclips Line,
B.B. Point Grenville Look-out Tower to rain line
C.C. About 1 1/2 miles
D.D. No tree line
E.E. About 1 1/2 miles
F.F. 1. Insulators, 50, No. 16 Glass
2. No. 10 copper wire
3. 25 ft poles
4. Value $237.62
F.F. Total Value $237.62
G.G. Excellent
A.A.A. Co-operative Indian and Forest Service line.
B.B.B. Cook Creek Look-out to Quinault Ranger Station and, through
Hobi camp, to Pacific Beach.
C.C.C. About 12 miles #
D.D.D. Combined tree and pole line. This line was strung on trees,
where available, or on small poles made from convenient and handy
material.
No. 12 galvanized iron wire.
About 700 insulators, (ILLEGIBLE) Porcelain Split and Poly
Glass.
Cost $486.27
F.F.F. Total value $486.27
G.G.G. Excellent
# On 04/01/30 the Hobi Timber Company turned over to the Indian
Service about seven and one-half miles of telephone line. This line was
repaired at a cost of $86.97, and is used for fire protection. The line
connects the Hobi Timber Company camp with the Cook Creek Look-out tree.
Total miles of telephone line 23.
Total value based on cost $3,715.44
2. Cost of Operation (Maintenance)
Telephone Lines ............. Total Number .. Total .. Unit Cost
............................... of miles ..... Cost .. per mile
.................................. 23 ... $418.90 .. $18.21
Classification of Operating Expense ....... Amount .. Unit Cost
...................................................... per mile
.01 Salaries and Wages, Regular Employees .. $344.19
.02 Salaries and Wages, Irregular Employees -- -- -- -
.03 Materials and Supplies ................. $ 6.65 #
.04 Repairs and Preservation of Property ... $ .60
.05 Traveling Expenses ..................... $ 6.85
.05 1/2 Auto Travel (1697 miles) ........... $ 43.70
.06 Expenses not otherwise classified ...... $ 18.00
Gross Total Cost ........................... $418.90
# $68.56 additional expended for equipment.
3. No new construction during the past year.
4. Total cost of new construction $0.00
3. Analysis of new construction
(A) Point Grenville Tower Road (B) From Moclips-Taholah Road to
Point Grenville Tower (C) One and one-half miles (D) Dirt and
gravel road over rolling and broken ground (E) 0 to 17 (F)
$1,878.41 (G) $1,252.25
4. Cost of new construction
Point Grenville Tower Road
(TABLE OMMITTED)
VIII. Miscellaneous Improvements.
1. Analysis of Miscellaneous Improvements.
A. Pt. Grenville Tower
B. 80 foot steel
C. Excellent
D. SESE Sec 17-21-12
E. $1705.00
A. Cook Creek Tree
B. 170 foot tree
C. Excellent
D. NW W Sec 26-22-11
E. $1000.00
A. Pt. Grenville Cabin
B. Lumber cabin
C. Excellent
D. SENE Sec. 17-21-12
E. $222.36
A. Cook Creek Ranger Station
B. Lumber Cabin
C. Excellent
D. NW W Sec. 26-22-11
E. $238.35
A. East Moclips Ranger Station
B. Lumber Cabin
C. Excellent
D. R 12 E Sec 2-20-12
E. $376.06
A. Quinaielt Forest Experiment Station
B. Lumber Cabin
C. Excellent
D. S/2 NE/4 and SE/4, Section 31, T. 21 N., R. 11 W., W.M.
All of Section 32, T. 21 N., R. 11 W., W.M.
Lot 7, Section 33, T. 21 N., R. 11 W., W.M.
NE/4, Section 2, T. 20 N., R. 12 W., W.M.
All of Section 1, T. 20 N., R. 12 W., W.M.
Lots 8, 9 and 10, Section 6, T. 20 N., R. 11 W., W.M.
a total of 1,780.26 acres, more or less.
E. $2,310.73
2. Cost of Maintenance of Cook Creek Ranger Station, Cook Creek
Tree, and Point Grenville Tower. (TABLE OMITTED SEE ORIGINAL)
3. Analysis o new improvements during year.
Cook Creek Ranger Station, East Moclips Ranger Station and
Quinaielt Forest Experiment Station were constructed during
year.
4. Cost of New Construction, as follows:
TABLE OMITTED SEE ORIGINAL
5. Outline of proposed construction.
(a) Analysis of proposed road construction.
(A) Point Grenville Gower Road (Cont)
(B) From Moclips-Taholah Road to Mounte Logging Unit.
(C) Two and one-half miles.
(D) Rolling topography; dirt and gravel road.
(E) $1,000.00
(F) $400.00 (b) Estimated cost of proposed new construction.
of miles Cost
1 1/2 $1,000.00
Classification of Operating Expense Amount .01 Salaries and Wages,
Regular Employees $400.00 .02 Salaries and Wages, Irregular "
400.00 .03 Material and Supplies 200.00 .04 Repairs and
Preservation of Property ------ .05 Traveling Expense ------ .05
1/2 Auto Travel ------ .06 Expenses not otherwise classified
------
5. Outline of proposed miscellaneous improvements. Cont.).
(a) Quinaielt Experiment Station.
The purposes of the Quinaielt Experiment Station, together with the
proposed plans for the accomplishing of these purposes have been taken
up in detail in previous reports submitted to the Office and it is not
thought necessary to again go into detail as to the status of this
project except to state what it is felt that this project is
particularly worthy of continued support and that plans for the carrying
out of Forestry work under this jurisdiction will constantly bear in
mind the possibilities of extending the work on this project.
No estimate is made of funds for the further development of this work
nor are detailed plans submitted for the carrying out of any particular
amounts of this work for the next year. A Fire Guard has been stationed
at this location from the early part of the fire season and plans are
for the stationing of a man here throughout the entire fire season.
During the periods when the fire situation is not acute this man has
been and will be engaged in various improvement work on this Experiment
Station, this work consisting largely in the further clearing up and
improving of the area around the cabin and in the extension of the fire
lines being constructed around and through this site.
The amount of actual planting that will be done this coming year will
depend to a large extent on the amount of time that will be available
from our regular personnel. Insofar as possible, it is proposed to
arrange the administration of the current logging work as to permit
taking men away from logging operations for the maximum amount of time,
both in the Fall and in the Spring, and it is hoped that it will be
possible to plant up to 100,000 trees this coming Fiscal Year. While a
considerable amount of planting can definitely be planned on, the actual
total amount will to a large extent depend on the amount of time that
our regular personnel will be able to devote to this work and to the
savings from other projects that might be available for some of this
work. The scope of this project is such that fairly large amounts of
work can be extended here for a number of years with reasonable
assurance that worthwhile results will be obtained, and, plans for the
coming year will be towards the end that as much planting as will be
possible will be done during the Fall and Spring planting seasons.
IX. Miscellaneous Non-Forest Work.
Expenses incurred under this activity are trips to reservations other
than the Quinaielt, work in connection with the Raft River Camp Site,
and general agency activities not in connection with timber work.
Non-Forest Work ................................ Total Cost
Classification of Non-Forest Work
.01 Salaries and Wages, Regular Employees ...... $536.84
.02 Salaries and Wages, Irregular Employees .... $ 5.00
03. Materials and Supplies .................... -- -- -- -
.04 Repairs and Preservation of Property ...... -- -- -- -
.05 Traveling Expenses ......................... $ 73.68
.05 1/2 Auto Travel (1414 miles) ............... $ 36.40
.06 Expenses not otherwise classified .......... -- -- -- -
Gross Total Cost ............................... $651.92
I. Timber Sale Administration.
Analysis by Units of Quinaielt Timber Sales. 1930.
(TABLE OMITTED SEE ORIGINAL)
2. Analysis of out for year 1930.
(TABLE OMITTED SEE ORIGINAL)
Note: For statistical purposes, in compiling the foregoing analysis
of the out for the year 1930, to convert Cedar Poles and R.R. Ties to M.
Bd. Ft., it is believed that the following will be approximately
correct:
652,066 linear feet of poles equals about 650,000 Feet B.M.
31 R.R. Ties equals about .................. 1,000 Feet B.M.
Total .................................... 651,000 Feet B.M.
Total Log Scale ...................... 142,269,810 Feet B.M.
Grand Total .......................... 142,920,810 Feet B.M.
3. Total Cost of Administration and Income
Timber Sales .................... Volume Cut .. Total .... Unit
................................................ Cost .... Cost
.......................................................... Per M
................................. 142,920,810 $26,156.86 $.18
Classification of Operating Expenses ........ Amount ..... Unit
.......................................................... Cost
.......................................................... Per M
.01 Salaries and Wages, Regular Employees ... $24,023.31
.02 Salaries and Wages, Irregular Employees . $ 1,052.24
A. Scaling ......... $15,257.87 B. Marking ......... $ 3,426.44
C. Supervision ..... $ 6,391.24
.03 Materials and Supplies .................. $ 34.25
.04 Repairs and Preservation of Property .... $ 12.50
.05 Traveling Expenses ...................... $ 135.00
.05 1/2 Auto Travel (17818 miles) ........... $ 458.25
.06 Expenses Not Otherwise Classified ....... $ 441.30
Gross Total Cost ............................ $26,156.85
# $78.19 additional expended for equipment.
Net Gain
................................. Value .... Exp Acct .. Unit
................. Volume Cut ... of Cut ...... Tbr .... Income
Operating Income 142,269,810 $453,441.73 $36,275.32 .. 25[cents
Deduct Expenses ........................... $26,156.85 .. 18[cents
Net Gain .................................. $10,118.47 ... 7[cents
4. General discussion of timber sales by units.
A. Attitude of purchaser.
Unit ................... Purchaser ...... General Attitude
Moclips ................ Aloha .......... Satisfactory
Pt. Grenville .......... Smith .......... Satisfactory
Cook Creek ............. Hobi ........... Satisfactory
Quinaielt Lake ......... Ozette ......... Satisfactory
Mounts ................. Aloha .......... Satisfactory
Hatch .................. Aloha .......... Satisfactory
Upper Wreck Creek ...... Aloha .......... Satisfactory
Hall ................... Aloha .......... Satisfactory
No complaint can be made as to the attitude of any of purchasers of
timber on the Quinaielt as regards the fulfillment of any of their
contract requirements. Requests for payments are met immediately.
Whenever minor differences occur they are settled on the ground between
representatives of the companies and this Office.
B. General efficiency of Forest Officers.
About 98% of the timber cut on the Quinaielt is from allotments, the
balance being from tribal areas which are scaled in forty acre units.
The need of segregating the entire cut into these small acres, in a
region where the brush is dense and the lines hard to run and maintain
renders the timber sale administration particularly difficult. The men
engaged in this work are all thoroughly capable and efficient. The
scale is carefully credited to the proper areas; the scale is carefully
made; scale books and other field reports are neatly and accurately
made and automatically checked as to practically preclude the
possibility of errors and all the office records and entries are
particularly well and accurately kept. It is believed that the entire
force engaged in the various phases of timber sale administration is
entitled to much credit for the character of the work done.
ANALYSIS OF CONTROLLING ACCOUNTS June 30, 1930.
(TABLE OMITTED SEE ORIGINAL) 2 PAGES
Amount Collected
Advance Payments ........... $ 475,200.06 Advance Deposits
........... $2,600,833.18 Total
......................................... $3,076,033.24
Distribution
Individual Indian Moneys ... $2,514,545.19 Treas. U.S.
................ $ 195,512.02 Expense Account Timber ..... $
235,613.57 Total .........................................
$2,946,670.78
Difference ...................................... $ 129,362.46
"Special Deposit" Accounts at Taholah
Agency June 30, 1930. Moclips (Completed) ........ $ -- - Point
Grenville ............ $ 15,215.50 Cook Creek ................. $
28,830.22 Quinaielt Lake ............. $ 25,735.72 Mounts
..................... $ 17,537.80 Patch (Completed) ........... $
-- - Upper Wreck Creek .......... $ 9,385.33 Hall
....................... $ 32,657.89 Total
........................................... $ 129,362.46 # # This
amount is accounted for as follows:
1. The amount in "Advance Deposits" on each unit.
2. The value of the timber cut in June (about $37,000.00) not
distributed yet.
3. We hold $300.00 on each scaling allotment until operations
are completed and the books checked (as explained in previous
reports).
8. Summary of work to be completed during coming year, shown as
follows:
A. List of units upon which a readjustment of stumpage rates become
effective.
1. Stumpage readjustment will become effective on the
Quinaielt Lake, Hall, and Upper Wreck Creek Units on 04/01/31.
Prior to 03/31/31, data and another recommendation as to price of
spruce are to be submitted.
B. List of Units upon which bonds will expire and date of such
expiration.
1. No bonds expire during the coming year.
2. Logging operations on the Hatch Unit of timber in the
Quinaielt Indian Reservation, under the contract of the Aloha
Lumber Company, which was approved on 05/26/27 by the Acting
Commissioner of Indian Affairs, have been entirely completed, and
the bond furnished by the Company may properly be cancelled.
Logging operations in the Hatch Unit started in Sept. 1927 and
were completed in August 1929.
On 06/19/30 a full report on the Hatch Unit was submitted to
the Office, together with the recommendation that the bond of the
Aetna Casualty and Surety Company be cancelled, and that the
Superintendent be authorized to advise said Company to that
effect.
C. List of allotments, dates and amounts of advance payments which
will come due.
(Immediately follows this page).
C. List of allotments, dates and amounts of advance payments which
will come due.
(LIST OMITTED SEE ORIGINAL) 2 PAGES
X a. TIMBER SALE ADMINISTRATION (Reservations other than Quinaielt)
Timber contracts in force 06/30/30.
Georgetown or Shoalwater
Nisqually Indian Reservation
XI. Recapitulation of Operating Costs and Returns from Operation.
1. Statement of Costs and Returns.
(TABLE OMITTED SEE ORIGINAL)
2. Analysis of Gross Operating Costs.
(TABLE OMITTED SEE ORIGINAL)
Analysis of Funds from which all expenditures of the year, for
all purposes, were paid.
Expenses, Sale of Timber, Reimbursable, 1930...... $43,454.48
Expenses, Sale of Timber, Reimbursable, 1929...... $ 1,092.74
Industrial Work and Care of Timber, 1930.......... $ 75.48
I.M.P.L. Quinaielt Indians Support, 1930.......... $ 4,685.79
I.M.P.L. Taholah Agency .......................... $ 26.51
Total ............................................ $49,335.10
HES-003-1914-1914-B
HES-003-1914-1952
IIA30.3
300402
CORRESPONDENCE
LAMB, FRANK H ; GRAYS HARBOR FORES ALBORTON, CHAS ; GRAYS HARBOR FORES
MUMAW, W. C ; GRAYS HARBOR FORES
The purpose of the reforestation endeavor is to bring every acre of
land better adapted for growing timber than for any other purpose into
producing condition, regardless of the ownership of the land.
Whether held in private, State or Federal ownership, timber from
forest lands will be available to sustain the economic life and timber
industries of Grays Harbor.
The Grays Harbor district is abundantly blessed by the fact that on
the great majority of its lands natural reproduction can be relied upon
to re-seed fully and properly such lands when cut over, if the lands are
properly handled during logging and if proper consideration is given to
fire protection; further, the annual growth under favorable conditions
of 1,000 feet B.M. or two cords of pulp wood per acre, may be expected.
This is from two to ten times that of other timber producing sections.
LOGGING METHODS
The reseeding of cut-over lands to fir depends on an adequate seed
supply coming in contact with exposed mineral soil under favorable
conditions of shade and moisture. Under present methods of clean
logging by highlead and other systems, a large part of the mineral soil
is properly exposed for reseeding.
A portion of the seed for restocking is stored in the soil. In order
that this may germinate and produce seedlings, the prevention of fire on
cut-over lands is absolutely essential.
Another source of seed for restocking is from standing seed trees,
either left in logging or from adjacent areas of standing timber.
To leave a small group of seed trees in the midst of cut-over lands
is practically impossible, owing to the difficulty of protecting them,
under present logging methods, and the impossibility of preventing them
from being overturned by high winds.
Abundant evidence is available, both in the detailed studies of the
Forest Service and in the readily available experience obtainable from
cut-over lands under various methods of handling, to demonstrate that
the burning of slash is detrimental to prompt and full reproduction.
Even one burning of slash destroys the larger part of the seed stored
in the soil, generally kills seed trees, and furthermore consumes very
little of the accumulated slash excepting the smaller branches and
twigs; it leaves the heavy material dried out, exposed to the sun
without the protection of the growth of annuals and temporary vegetation
which springs up at once on unburned lands.
Cut-over lands on which slash has been burned following logging show
from three to ten years delay in reseeding, and due to the destruction
of the shade producing plants and the drying out of the larger material,
they are far more susceptible to future fires than lands that have never
been burned.
The best possible fire protection obtainable at any reasonable cost
for cut-over lands is the adventitious annual and shrubbery growth which
springs up immediately following logging, affording shade to the land,
conserving the moisture of the soil, and thereby promoting the wet rot
of the accumulated debris which soon reduce it to a slow-burning
condition.
Your Committee therefore recommends the following:
RECOMMENDATION 1.
THAT OPERATORS BE ENCOURAGED TO PLAN THEIR CUTTING AREAS, SO
FAR AS POSSIBLE, SO THAT THERE MAY BE A BELT OF GREEN TIMBER
BETWEEN ADJACENT OPERATORS FOR AS LONG A PERIOD AS POSSIBLE.
RECOMMENDATION 2.
THAT PRIVATE OWNERS, COUNTY, STATE, AND FEDERAL AUTHORITIES
SHALL CO-OPERATE IN ALL MEASURES NECESSARY TO ENTIRELY PREVENT THE
BURNING OF CUT-OVER LANDS THAT HAVE NO OTHER VALUE THAN GROWING OF
FOREST CROP, AND ALL LAWS RELATING TO THE COMPULSORY BURNING OF
LOGGING SLASHING SHOULD BE REPEALED.
FIRE PREVENTION
Lands once restocked must have continued protection from forest fire.
This is obvious since the destruction of the young growth would mean
that the stores of seed in the soil would no longer be sufficient to
reseed the land, and in the meantime adjacent areas of seed trees would
probably have been removed.
Fire prevention activities should be extended to the protection of
every acre of cut-over land, both on account of the necessities of
reproduction as already stated, and also because it is the neglected
fire on cut-over lands which becomes unmanageable in periods of dry
weather and destroys areas of standing timber.
In controlling fires on cut-over lands, the first essential is to be
able to reach all areas quickly with men and fire fighting equipment.
If we are to confine fires on cut-over lands to limited areas, a
thorough system of fire lanes must be provided, making it possible for
men, tractors and equipment to reach danger points.
The difficulties of suppressing fires on cut-over lands are
aggravated exceedingly by the presence of standing snags and dead trees.
These become fire brands which cannot be reached by fire fighters, and
continually spread new fires as fast as ground fires are put out.
While the subject of fire prevention is covered by another committee,
yet it is so intimately associated with reforestation that our committee
begs leave to submit the following recommendations:
RECOMMENDATION 3.
THAT ALL FIRE FIGHTING AGENCIES TREAT FIRES ON CUT-OVER LANDS
AS DESTROYERS OF THE REPRODUCTIVE CAPACITY OF THE FOREST AND AS AN
OUTSTANDING DANGER TO STANDING TIMBER IN PERIODS OF DRY WEATHER:
THEREFORE FIRE PREVENTION IN ITS FULLEST EXTENT SHOULD BE EXTENDED
TO CUT-OVER LANDS AND YOUNG GROWING TIMBER.
RECOMMENDATION 4.
THAT THE VARIOUS AGENCIES ENGAGED IN FIRE PREVENTION BE ASKED
TO STUDY THE QUESTION OF LEGISLATION PROVIDING FOR FIRE LANES IN
CUT-OVER LANDS.
RECOMMENDATION 5.
THAT STATE FOREST FIRE SERVICE ENFORCE PRESENT LEGISLATION FOR
THE FALLING OF SNAGS AND DEAD TREES ON CUT-OVER LANDS.
REFORESTATION BY PRIVATE OWNERS
The proper handling of cut-over lands in private ownership to promote
timber growing depends on legislation permitting sensible taxation of
such lands. No owner can stand an annual general property tax upon a
growing crop maturing in from sixty to one hundred years. Such a tax,
regardless of leniency of taxing bodies, is confiscation. In
practically every other timber nation of the world, taxes on growing
timber are based upon a percentage of yield when marketed. In the
United States eighteen states, -- to wit: Alabama, California,
Connecticut, Georgia, Idaho, Iowa, Louisiana, Maine, Massachusetts,
Michigan, Minnesota, Mississippi, New Hampshire, Ohio, Oregon,
Pennsylvania, Vermont and Wisconsin -- have passed legislation providing
for the taxing of growing timber at a nominal annual rate with a yield
tax whenever any product is taken from the land.
In Washington the enactment of laws of this sort by the Legislature
is prohibited by the terms of the Constitution. Various amendments to
the Constitution to permit taxation of timber growing property on the
yield basis have been proposed but have been defeated. At the next
election another amendment providing for the classification of property
will be submitted, containing the following provision.
"That the Legislature may tax lands devoted to reforestation by
either a yield tax or an ad valorem tax at such rate as it may fix
or by both."
The approval of this amendment will permit the Legislature to enact
laws providing for the taxation of privately owned timber growing lands
on a basis that will enable the private owner to hold, protect and
manage them for future timber crops. The committee therefore submits
the following recommendations:
RECOMMENDATION 6.
THAT THE CONSTITUTIONAL AMENDMENT RELATING TO CLASSIFICATION OF
PROPERTY FOR TAXATION PURPOSES TO BE SUBMITTED AT THE NEXT
ELECTION BE APPROVED.
RECOMMENDATION 7.
THAT IN THE EVENT OF THE APPROVAL BY THE VOTERS OF THE
CONSTITUTIONAL AMENDMENT ABOVE REFERRED TO, THE LEGISLATURE
IMMEDIATELY ENACT A YIELD TAX LAW SIMILAR IN ITS GENERAL
PROVISIONS TO THE LAW PASSED BY THE OREGON LEGISLATURE IN THE
SESSION OF 1929.
STATE TIMBER LANDS.
The State is in a most advantageous position to engage in
reforestation. With its present large ownership of standing timber and
cut-over lands, its ability to acquire from counties and private owners
additional lands at little or no cost, and with freedom from taxation,
the State should be the most important agency in making Washington a
continued producer of timber crops.
The State of Washington is the owner of approximately one million
acres of timber lands. A large part of these lands are Sections 16 and
36 in each township, donated to the State for the benefit of the public
schools. In addition, however, the State has acquired thru lieu land
selections, large tracts of land on the west side of the Olympics and on
the Pilchurch water-shed in the Cascades. The forest property of the
State has never been appraised, and no information regarding the extent
of standing timber or its value is available, but certainly it
constitutes an enormous resource for the perpetual benefit of our public
schools. With only approximately 25% of State lands disposed of to
date, approximately 25 million dollars are in the permanent State school
funds. It is safe to assume that at the lowest valuation the remaining
lands are worth in excess of 100 million dollars.
The solid tracts of State timber already referred to should be sold
and managed strictly on a sustained yield basis, since very few of these
lands have any other value than for timber growing.
In every county of the State many tracts of cut-over lands have
reverted to the counties on account of non-payment of taxes. These
lands are receiving no attention whatever, are of no tax benefit to the
county, and if left in the present condition will become entirely
unproductive. Tax reverted lands should be placed under the jurisdiction
of the State forest service, and those suitable for timber growing be
managed accordingly, and the counties reimbursed from a percentage of
the returns from such lands when future sales are made.
Under a law of 1923 the State was authorized to consolidate present
state lands, to acquire by purchase or gift additional cut-over lands,
and to form state forests with more or less continuous ownership, and to
manage the same as State Forests under a State Forestry Board. In the
first few years of this law three state forests, aggregating over 63,000
acres, were consolidated and acquired.
During the past five years, owing to executive disapproval, the State
Forestry Board has been inactive, and no further steps have been taken
to carry out the provisions of the law.
The State of Washington should immediately organize a State forest
nursery and begin, on a conservative scale, the planting of those areas
of State lands which need replanting.
The committee presents the following recommendations:
RECOMMENDATION 8.
THAT THE LANDS OWNED BY THE STATE, ASIDE FROM SCATTERED
SECTIONS, BE NOT SOLD UNTIL LEGISLATION IS PROVIDED FOR THEIR SALE
AND MANAGEMENT ON A SUSTAINED YIELD BASIS.
RECOMMENDATION 9.
THAT THE LEGISLATURE APPROPRIATE NECESSARY MONEYS FOR THE
SURVEY AND APPRAISAL OF ALL STATES TIMBER LANDS IN ORDER TO
ASCERTAIN THE AMOUNT of TIMBER HELD BY THE STATE AND TO CLASSIFY
THE LANDS AS TO FUTURE USE.
RECOMMENDATION 10.
THAT THE PROVISIONS OF THE LAW OF 1923 PROVIDING FOR THE
CONSOLIDATION OF STATE LANDS AND THE PURCHASE OF CUT-OVER LANDS TO
FORM STATE FORESTS BE CARRIED OUT, AND THE STATE OF WASHINGTON
ACQUIRE AS SOON AS POSSIBLE, IN ADVANTAGEOUS LOCATIONS, AS LARGE
AN AREA AS POSSIBLE OF LANDS SUITABLE FOR STATE FORESTS, PROVIDED
THAT COUNTIES WITHIN WHICH SUCH AREAS ARE INCLUDED SHALL RECEIVE
FROM THE STATE AN ADEQUATE PORTION OF THE NET FOREST SALE.
RECOMMENDATION 11.
THAT LEGISLATION BE PROVIDED SO THAT LANDS REVERTED TO THE
COUNTIES FOR UNPAID TAXES MAY BE TURNED OVER TO THE STATE FORESTRY
DEPARTMENT FOR MANAGEMENT, PROTECTION AND OPERATION UNDER THE
FORESTRY LAWS, AND THAT PROVISION BE MADE FOR RECOMMENDING THE
COUNTIES WITH A PERCENTAGE OF THE NET PROCEEDS OF SALES FROM SUCH
LANDS.
RECOMMENDATION 12.
THAT THE LEGISLATURE PROVIDE FUNDS FOR THE ESTABLISHMENT OF
STATE FOREST NURSERIES AND THAT THE STATE PROCEED IN A
CONSERVATIVE WAY TO THE PLANTING OF STATE CUT-OVER LANDS WHERE
MOST DESIRABLE.
FEDERAL LANDS.
Approximately 22% of the State of Washington is held by the Federal
Government as National Forests. These lands were withdrawn from entry
to create a reserve of standing timber available when the timber would
be necessary in the industrial life of the community and the nation.
It was further generally understood that the Federal forest lands
would be handled as future producers of timber crops, and that sales and
cutting would be made only on the basis of whatever sustained yield the
area would produce.
Comprised within the National Forest are large tracts of land
suitable only for growing timber, which for one reason or another are
not properly restocked. In several instances, such as the Solduck fire
area, burned over since the creation of the National Forest, these lands
have been burned so hard that reproduction has not followed.
The country has a right to expect that the Federal Forest Service
shall be a loader and an example in forest work and that the wealth of
this great nation justifies placing in productive condition, as soon as
possible, every acre of Federal lands not properly stocked.
The results however of Federal management are disappointing to those
who are familiar with the facts and the costs. In the North Pacific
District, comprising the States of Oregon and Washington, the Federal
Government, with more than 23 million acres of land and over 214 billion
feet of standing timber, has sold in the years from 1921 to 1927
inclusive, over 4 billion feet for which it received in excess of 91
billion dollars. Sales made since 1927 and on which cuttings will be
made in the years following will probably double the present annual
returns of over 1 1/4 million dollars per year. In the meantime, and
notwithstanding the expenditure of more than 20 million dollars by the
Forest Service for National Forest purposes, of which only 2 1/2 million
dollars has gone for fighting fires, the Service has planted in the
eight years from 1921 to 1927 only 11,313 acres on an average of 1,414
acres per year. Personal observation shows that a considerable portion
of this area has been only spot-planted, and a lot of it has been only
the broadcast sowing of seed with very indifferent results.
Some idea of the cost of administering the National Forest can be
obtained from the following:
In Oregon and Washington in 1927 expenditures for fire protection and
suppression were .0505 per acre, equal to the acre cost of State work
with its far greater exposure and risk to forest fires. The cost of
administering timber sales was 42.8[ per thousand for ordinary sales and
$1.68 per thousand for special use sales. What private owner would
complacently contemplate any such cost of disposing of a natural
resource such as the timber of the National Forests? The cost of
collecting grazing fees per head grazed was approximately 30[, a rather
expensive supervision for managing mostly the grazing of sheep.
During the past twenty-two years the expenditures in Oregon and
Washington for all National Forest purposes have been 38 million
dollars. The receipts from sales of one of the greatest resources of
standing timber in the world have been 12 1/2 million dollars, making an
excess Federal expenditure of more than 25 million dollars, of which 15
million has gone for various road purposes and 3 million dollars paid to
the State under the 25% provision.
In the twenty-two years it has cost more than 16 million dollars
simply as overhead to administer the National Forests of Washington and
Oregon. The expenditures for fighting forest fires, for reforestation
and replanting and otherwise putting the forest in maximum producing
condition have been too infinitesimal to tabulate. The overhead and
supervision costs of the Forest Service are ridiculous. The
productivity of the forest is no greater than when the forests were
created. National Forest cut-over lands are in no better condition than
private denuded lands. It is time the Forest Service realized that its
chief function is to promote timber growing.
The committee recommends the following:
RECOMMENDATION 13.
THAT IN THE SALE AND MANAGEMENT OF NATIONAL FORESTS THE
PRINCIPLE OF SUSTAINED YIELD SHOULD BE RELIGIOUSLY MAINTAINED, AND
THAT THE APPLICATION OF THE SUSTAINED YIELD PRINCIPLE SHOULD BE
NOT ONLY APPLIED TO THE FORESTS AS A WHOLE BUT TO AREAS NATURALLY
TRIBUTARY TO THE FOREST CONSUMING CENTERS ADJACENT TO THE FOREST.
RECOMMENDATION 15.
THAT IN ANTICIPATION OF VASTLY INCREASED HAZARD TO NATIONAL
FORESTS DUE TO INCREASED CUTTING ON ITS BOUNDARIES AND INSIDE THE
FOREST, ADDITIONAL APPROPRIATIONS BE MADE AND A LARGER FOREST FIRE
PERSONNEL BE DEVELOPED.
RECOMMENDATION 16.
THAT THE NATIONAL FOREST SERVICE AT ONCE OUTLINE A
COMPREHENSIVE PROGRAM OF REPLANTING ALL AREAS IN THE NATIONAL
FOREST NOT PROPERLY STOCKED WITH TIMBER AND SUITABLE FOR TIMBER
GROWING, AND THAT CONGRESS BE ASKED TO PROVIDE THAT RETURNS FROM
NATIONAL FORESTS, LESS SUCH AMOUNTS AS ARE ALLOCATED TO THE STATES
AND COUNTIES, SHALL BE PLACED IN A FOREST PLANTING FUND AVAILABLE
FOR CARRYING OUT THE NATIONAL FOREST PLANTING PROGRAM.
PROTECTION FOR FOREST PRODUCTS.
The growing of forest crops is a business, and the extent to
which private capital goes into it will depend on returns and profits.
There is likewise no reason why the nation or the state should engage in
forestry on any different principles. If timber and forests are
necessary in the industrial life of the nation, the consumer will have
to pay the cost of production or seek substitutes in other materials.
In Canada, Russia, Siberia and the tropics are vast supplies of
virgin standing timber which, by sacrificing values, in the standing
stumpage, are now coming, and to an increasing extent in the future will
come into competition with American forest products.
American industry has been built on the foundation of wage and profit
protection through an import tariff, and if American forestry is to be a
business rather than a subsidized governmental plaything it must have a
similar protection.
In the long run the consumer will be the gainer since the home grown,
close-to-consumption products will be cheaper than the foreign,
cheaper-at-source supplies with their increasingly heavy cost for
transportation.
With an estimated fifty million acres of lands that should be growing
forest crops now largely unproductive it is insane to talk of forestry,
and at the same time admit free, cheap stumpage forest products from
Canada, Russia Soviet lumber produced under a labor serfdom unequalled
in the world's history, and the free products of other lands where
values are only a fraction and labor earnings a mere pittance as
compared to America.
Few realize the extent of our dependence on imports for our vitally
necessary pulp and paper requirements. More than 60% of our news print
and approximately 30% of our total pulp requirements are from free
imports. This at a time when millions of cords of excellent pulp
material are being destroyed in private and Federal timber sales, all
for the lack of a tariff protection that would make its utilization
profitable.
Tariff protection on forest products would largely benefit the
government and the farmer, since these two are the largest owners of
standing timber.
Your committee submits:
RECOMMENDATION 17
A MODERATE PROTECTIVE TARIFF IS VITAL TO THE PROGRESS OF
AMERICAN FORESTRY. WE URGE THE CONGRESS TO ENACT A TARIFF
APPLYING TO ALL COMPETITIVE FOREST PRODUCTS INCLUDING LUMBER,
SHINGLES, PULP WOOD, WOOD PULP and PAPER.
Respectfully submitted
COMMITTEE ON REFORESTATION
GRAYS HARBOR FORESTRY BOARD
Frank H. Lamb - Chairman
Chas. Albertson
W. C. Mumaw
Phil S. Locke
J. E. Calder.
HES-003-1953-1960
HES-003-1953-1960
IIA30.2
300312
CORRESPONDENCE
SAMS, W B ; TAHOLAH INDIAN AGE
Forestry
16028-29
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
There is transmitted herewith a report of Henry B. Steer, Supervisor
of Forests, concerning the work just completed on the Quinaielt
Experiment Station.
The outline of this experimental work is very interesting and
instructive. It is a well known fact that the Quinaielt Reservation is,
in the main, after it has been logged of little or no value for
agricultural purposes, and I fully believe that re-forestation will
result in great benefit to the Indians in future years and that no other
method will bring in an equal amount of value for the Indians as a
tribe.
This work cannot be carried on without an annual appropriation of
funds, and I trust that the Office will, after full consideration of the
matter, use their best endeavors to provide the funds to carry on this
re-forestation work in the Quinaielt Indian Reservation. I desire to
especially commend the work as outlined by Mr. Steer, and report that in
my opinion the time and money expended so far has been to the best
possible advantage and reflects great credit upon the Service.
Very Respectfully,
W.B. Sams
Superintendent
Forestry
16028-29
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
Under dates of July 11, 1929 and December 17, 1929, the Department
reserved about 2,000 acres of logged and burned over tribal land in the
Quinaielt Indian Reservation for administrative purposes, setting the
land aside as the "Quinaielt Forest Experiment Station", and gave its
approval to the plan of artificially reforesting the land to demonstrate
the practicability of forest planting in this locality.
In the spring of 1929 forestry employees of the Taholah Agency set
out about 3,500 young Spruce trees, obtaining the first year a survival
rate of over 95% with every indication pointing not only to the survival
of the trees but to their rapid growth, many of them having grown four
and six inches the first year they were set out. Last spring's planting
was reported to the Office under date of March 23, 1929 by myself, and
under date of July 4, 1929 by James A. Howarth, Supervisor of Forests at
Large who made an inspection of the 1929 planting.
Due to the curtailment of logging operations at some of the camps
operating on the reservation this past winter, we have been able to
plant about one hundred and fifty acres of land this winter, and have
done other work on the experimental area on which the following report
is respectfully submitted. The Office is requested not to lose sight of
the fact that this is the first re-forestation work of its kind ever
attempted in Grays Harbor County and that our work has been in the
experimental stage. We have acquire some experience in reforestation
work in this locality, and will benefit by the same in future years.
This report has been divided into four parts, each of which will be
discussed separately, as follows:
1. The construction of the East Moclips Ranger Station.
2. Preparation of the map of the Experiment Station.
3. Construction of fire lines.
4. Tree planting.
Since the experimental station is about five miles from Moclips, the
nearest settlement or logging camp, it was necessary for us to build
some kind of quarters where the men engaged in work at the station could
stay. As has been reported to the Office previously, in developing our
plan of general fire protection for the whole reservation, we had
previously decided upon the establishment of a Ranger station at a point
within the boundary of the experiment station, such Ranger station to be
used during the fire season as the headquarters of a Forest Guard and as
a supply depot for fire fighting equipment and supplies. The necessity
for this Ranger Station is set forth in my report of November 6, 1929
concerning the 1930 fire plan for the entire reservation. The site of
this Ranger Station is shown on the accompanying maps and is in the
extreme north eastern part of Section 2, T20N R12W, at an abandoned camp
site of the Hobi Timber Company. The Hobi Company had left a "shake"
building previously used as a machine shop, and this building was
re-constructed by Senior Rangers McKeever and Briggs. The building,
which is about twenty four by thirty two, was practically entirely
rebuilt. A double floor was laid, the walls and roof ship-lapped and
shingled, and the foundations re-enforced. Here we learned lession #1,
namely that it does not pay to rebuild an old building, for while our
costs are reasonable, and the building is satisfactory, I believe we
could have built an entirely new building a little cheaper. The
following were the costs:
Salaries and Wages, Regular Employees .. $196.55
*Materials and Supplies ................... 145.56
Travel Expense ............................. 12.95
Total paid by Taholah Agency .................... $354.86
Supervision, Steer ... $10.00
Grand Total .............................................. $364.86
* Including all building supplies and two stoves.
In later compilations only one-half of this expense is charged
against reforestation work, and the other half is charged against
general fire protection in view of the situation as given above.
This building will be the headquarters of a Forest Guard during the
coming fire season, who will be responsible for fire protection not only
on the experiment station, but also in that district of the reservation.
The station will be given a telephone, and a supply of fire fighting
equipment kept there. Since the station is on the Hobi-Aloha railroad,
we plan on furnishing the Forest Guard with a small speeder.
We found that existing maps of the area were not very accurate as to
the meandering of streams inside the section lines, that the area of
swamp land was not accurately shown, and because the boundaries of the
area reserved did not follow section lines in all instances it was
thought advisable to make an accurate map of the entire experiment
station, which was done in December 1929. The exterior boundary lines,
nine miles in length were re-run; old section corners or reservation
boundary mile and half mile posts re-established and the township line
between townships 20 and 21, two miles in length, was re-run, all
corners re-established, and used as a base line in stripping the area.
The 2,000 acres was then "stripped" by running north and south, once
through a forty, from this base line, the topographers sketching in the
streams, old railroad spurs, swampy areas, and other topographic
features. The difference in elevation on the area was not sufficiently
great to warrant the expense of running Abuey levels, but form lines
indicating in a general way the topography of the ground were sketched
in the field. The maximum difference in elevation in the experimental
area will not exceed one hundred and fifty feet.
The field sheets obtained in the field were compiled at the ranger
station by myself, and the attached map, exhibit #1 prepared, which will
serve as the basic map during the life of the experiment station work.
Exhibit #2, which is also attached to this report, is a map showing
the logging record of the area. This is important and has a direct
bearing on our re-forestation work for the best timber was logged by the
Hobi Timber Company; the second rate timber was logged by the Empey
Logging Company, who sub-contracted from the Hobi Timber Company; and
the poorest timber was logged by the Aloha Lumber Company.
Exhibit #3 shows, as closely as is practicable, the different types
of the virgin timber which stood originally on the area. There is
really no such a thing as a pure stand of any species in the area in
question, but we endeavored to classify the types by the predominating
species occurring in any given area, and arrived at the following
general types:
1. Cedar.
2. FIR, Hemlock, Spruce.
3. SPRUCE, Cedar.
4. SMALL CEDAR, Hemlock.
5. Fir, Spruce, Cedar, Hemlock.
6. Small unmerchantable timber.
7. Swamp land, no timber.
Exhibit #4 shows the location of the Ranger Station; the fire trails
built in 1930; the 1929 planting; the 1930 planting; and the 1930
broadcast seeding.
The preparation of this map as a result of gathering the necessary
data in the field was necessary for the following reasons:
1. The boundaries of the experimental area were carefully run
and posted with metal signs and all corners re-established.
2. The topography of the area has been accurately mapped.
3. A study of the original stand of timber has been made which
has a direct bearing of the type of reforestation and the species
of trees which will be planted.
4. The natural fire lines (streams); the existing artificial
fire lines (abandoned railroad grades); and the swampy areas are
accurately shown making possible the laying out of additional fire
lines to be built connecting the existing fire breaks so that the
maximum amount of fire protection can be had.
5. An accurate record of all work done can be kept.
The following were the costs: 3 Map Preparation.
Salaries and Wages, Regular Employees ..... $330.35
Travel Expense ................................. 4.64
Miscellaneous Expense ......................... 15.80
Total paid by Taholah Agency ...................... $350.79
Supervision and map compilation, Steer. $102.00
Grand Total ............................................... $452.79
In later compilations this cost is pro-rated on an acreage basis, and
the acreage re-forested has been charged with only the pro-rated amount.
After an area of cut over land has been re-forested by planting, the
all important thing is fire protection. Fifteen year's experience in
this locality has clearly demonstrated to me that the poorest time to
construct fire lines is when a fire is burning. I believe that if stock
is properly selected and carefully planted the success of such
plantations is assured if fire can be kept out, and there is no question
but that a carefully laid out system of fire protection, mainly by
blocking out the area into tracts varying in s;te from twenty acres up
depending on the topography an the surrounding and encircling of these
blocks by fire lines will pay. If this is done and a fire should occur,
the plan of defense is pre-determined, and the fire can be put out by a
smaller number of men with less damage and with less expense than would
be the case if no fire lines had been built.
It was my original intention to have half of the men employed at the
experiment station building fire lines, and the other half planting, but
due to the severe weather experienced in January it was not possible to
do any tree planting, so the entire crew was engaged in building fire
lines. Exhibit #4 shows the location of the nine fire lines built this
year. These Fire lines were located carefully to give the maximum
amount of protection with the minimum amount of construction through the
use of old railroad grades where ever possible. A line six feet at
least in width was cleared and all inflammable material removed
therefrom. Notwithstanding the fact that the entire experimental area
had been burned over three times, the amount of material left on the
ground is surprising, and the clearing of these fire lines was hard and
laborious work.
The following were the costs:
Salaries and Wages, Regular Employees .... $788.13
Repairs and Preservation of property ........ 3.15
Travel Expense .............................. 6.50
Total paid by Taholah Agency .................... $797.78
Supervision, Steer, $45.00
Grand Total .............................................. $842.78
Man days ... 119. New fire lines built ... 15,250 feet
Feet per day per man .. 128.
Total Cost ... $842.78
Cost per 100 feet of new line ....... $5.52
Old railroad spurs utilized .......... 23,000 feet
New lines built ...................... 15,250 feet
Total fire lines ..................... 38,250 feet
Total Cost ......................... $842.78
Acreage encircled .................... 560
Cost per acre ....................... $1.50
Cost of all fire line per 100 feet .. $2.20
I believe conditions in the experimental area are average for this
locality insofar as the amount of abandoned railroad grades which can be
used as fire lines and the difficulty of the construction of new fire
lines are concerned, and I see no reason why the above costs cannot be
used as an estimate of the cost of similar future work.
Due to the severe weather which we experienced in January, we built
more fire line that was used this year, and in a later compilation I
have pro-rated the cost per acre against the acreage actually planted
this year.
The following trees were planted during the month of February.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
Also about 20 pounds of eastern White Oak acorns from Ithaca, New
York, and about five pounds of Sitka Spruce seed received from Paul
Brodersen at Neah Bay, Wash. TABLE OMITTED SEE ORIGINAL
Pulling wild trees
Salaries and Wages ...... $90.08
Travel Expense ............ 1.60
Cost of hauling ........... 23.08
Total ................................... $114.76
Planting trees
salaries and Wages, Regular Employees ... 913.56
Materials, including nursery trees ....... 108.53
Travel Expense ............................. 2.97
Freight on trees .......................... 43.18
Total paid by Taholah Agency ................. $1,183.00
Supervision, Steer, - $150.00
Grand Total ............................................. $1,313.00
Total man days ....... 121
Number of trees planted .. 45,500
Trees per man per day ... 380
Acreage ................. 150
Trees per acre .......... 300
Total Cost ............ $1315.00
Cost per acre ............. $8.75
Cost of actual planting .. $913.56
Cost per acre ............ $6.00
Before given in detail the methods used in planting, etc., an
explanation of the source of the trees planted may be in order. The
trees purchased from the Longbell and Union Lumber Companies were
obtained first to experiment with nursery stock Spruce as compared with
local wild stock, and to experiment with Port Orford Cedar, Redwood, and
Bigtree. The United States Forest Service of the Department of
Agriculture, through the district offices in Portland and Missoula
co-operated by furnishing us with 5,000 Douglas Fir and 2,000 Western
White Pine at no cost except a charge of about $1.00 per M for packing
and the freight. The Crown-Willamette Paper Company, through Mr. J. W.
Walker who is in charge of their re-forestation work furnished us with
1,200 Spruce of varying ages and 25 Port Orford Cedar, we paying the
express and agreeing to furnish them with an accurate survival record.
(Incidentally I had a very interesting and instructive time exchanging
ideas and experiences with Mr. Walker during the recent meeting of the
Western Forestry and Conservation Association which I attended at
Portland.
The local wild stock was obtained mainly in two places, namely along
the Olympic Highway west of Quinaielt Lake, and along the Polson Logging
Railroad south of Quinaielt Lake. The Olympic Highway, for some
distance west of Quinaielt Lake is very narrow, and is constructed
through an especially fine stand "f Spruce. Young trees, as a result of
the intensive seed scattering by parent trees, have sprung up very
thickly along this road right up to the edge of the gravel. They can be
pulled in the spring when the ground is saturated with water very
cheaply and with no appreciable root damage, and if these trees were not
so utilized by planting, the majority of them would be destroyed in
ditching, widening, and keeping up the highway. A portion of the Polson
Logging railroad goes through an excellent stand of Douglas Fir and
Cedar, which have re-seeded the right of way with great numbers of Cedar
and D. Firs right up to the ties and in between them. The big majority
of these young trees would not reach maturity because it is necessary
for the logging company to keep their right of way clear and the young
trees would all be cut down after they reached the height of a few feet.
There are two distinct advantages of wild stock where they can be
economically gathered, namely the cheapness of cost and the known
quality of the seed. We cannot hope to obtain as many wild trees every
year as we have this year, for the majority of those we did not get from
the highway have been or will be destroyed by road improving operations,
and the stretch of track along the Polson railroad where we can obtain
young trees is very limited. While we may be able to obtain wild trees
from other sorces yet to be discovered, I feel sure that in the future
our main supply of young trees for re-forestation purposes must come
from nurseries.
Some explanation of the cost data given on the previous page will be
pertinent, for as mentioned early in this report, the work was
experimental and many of the details had to be worked out after
experience had shown the way.
No straight planting of any species was done with the exception of a
rather limited area of Spruce in the Moclips river bottom. Rodent
damage to Douglas Fir and White Pine is certain; a certain amount of
similar damage to Spruce can be expected, but it is not believed that
rodents will nibble either Cedar or Hemlock. On this account, as well
as because of soil conditions, we mixed our species in the hope that
rodent damage would be lessened. The Douglas fir, Western White Pine,
and the Crown Willamette Port Orford Cedar were mixed with Cedar and
Spruce and planted only on high well drained ground. Spruce and Cedar
were planted on low lying lands. The Port Orford Cedar, Redwood and
Bigtree obtained from the Union Lumber Company were planted on high well
drained ground in pure plantations in order that an accurate check on
the results might be obtained. The oak acorns were planted as in
seedbeds in convenient locations with a view to later transplanting the
young trees should our experiment be a success.
The men were instructed to plant the young trees nine feet apart
where possible, but no rigid spacing was to be followed. The
instructions were to plant carefully and only in mineral earth. The
survival of the trees planted was first consideration and the number
planted was considered of secondary importance. This was the way we did
our planting last spring, and the survival record of practically one
hundred percent justifies this system.
We planted 45,500 trees on about 150 acres, or an average of 300
trees per acre, which is approximately equal to a spacing of twelve feet
between the trees. While we reduced our cost somewhat through planting
only three hundred per acre, I believe we have obtained the maximum
number of trees per acre which will successfully survive transplanting,
as a considerable portion of the cut-over area is covered by partially
decayed wood and debris in which the survival of a tree planted therein
is very doubtful.
The cost per acre of planting, namely $8.75, which includes all
costs, can be materially decreased I am sure. Our costs this year were
high than can reasonably be expected in years to come for the following
reasons:
1. Every forestry employee employed at this agency was detailed
for at least one week to this work. I thought it was proper to
give all the men the experience; to familiarize them with the
work; and by showing them the practicability and feasibiltty of
the work make them "re-forestation minded" (if I may use the
term). Naturally we lost some efficiency through frequent changes
in the crew. The men engaged in this work, besides myself, were:
Senior Rangers McKeever and Briggs; Rangers Quast, Gilbreath,
Branson and Lamey; and Scalers Cogswell, Tucker; Gentry, Shull,
Brooks, Hopkins, Roth and Tronnes. Not over six men were engaged
in work on the experiment area at one time, for that number was
the most we could accomodate in the Ranger station at one time. 2.
The work was in its experimental stages, and as mentioned
previously many of the details had to be worked out after
experience had shown the way. For instance we started out with
two man crews, one man taking the shovel and digging the hole and
the other carrying the trees and planting them. He found that two
men working separately, each packing his own trees, would plant
more in one day than would the same two men working together.
Contrary to the usual practice in other regions, the boys did not
take kindly to the use of mattocks, but found a stiff straight
handled shovel a better implement. I believe the use of a shovel
will produce better results for it makes a larger hole for the
root system and prevents crowding. 3. We had no cook, as such,
nor bull cook, but various men, depending on their cultnary
ability, got the meals. This meant that one man had to come in
early to get dinner and supper every day. Wood for the stoves had
also to be cut, and this was done by the entire crew on days when
the worst storms were experienced. I believe it would be economy,
in the future, to have one man to do the cooking, wood cutting,
and general camp work, however all of the time spent in activities
dur ng our recent planting was charged to "tree planting" and
naturally increases the cost. 4. We had to replant a relatively
small acreage, not over ten acres, which we had planted mainly to
Hemlock. We found that Hemlock does not survive planting as well
as the other species, and an exceptionally heavy frost killed off
considerable Hemlock and some Cedar which had been planted.
On the other hand our crew was probably more efficient than the
average planting crew which could be hired locally, for all the boys
took an i tense interest in the work and put forth their best efforts to
make it a success. They not only put in a full day planting, building
fire lines, or mapping, but took turns doing the dishes and helping to
prepare meals. The men paid for their own board in the following
manner. An accurate record of the cost of all meals was kept and the
cost per meal per man computed -- each man then paying for the number of
meals he had had.
I desire to commend to the Office the spirit of co-operation and
interest which has been manifested during this work by the entire crew,
particularly to Scaler Willis A. Shull, who was in charge of the fire
trail building and tree planting work in my absence. Scaler Shull was
designated for this work because all of the four rangers were busy on
their respective logging operations and could not be spared for the
entire two months time; Senior Ranger McKeever was at Neah Bay for
about two weeks at the height of the planting work; and it was expected
that the services of Senior Ranger Briggs would be needed in connection
with the extension of the N-P U-P Railroad.
There follows a compilation of all the money spent on the experiment
station during the present season, and the computation of the cost per
acre of the area actually re-forested.
TABLE OMITTED SEE ORIGINAL
Basis 150 acres.
TABLE OMITTED SEE ORIGINAL
A report on the success of the planting cannot be made until next
fall at the earliest, however, I am convinced that the results will
justify the expenditure. The extent to which rodents damage the Douglas
Fir and White Pine will determine, in a large measure, the extent to
which these species should be used in the future, however, I would think
that Spruce and Cedar should be the main species planted in seasons to
come.
I believe the cost of $10.50 per acre can be reduced to about $8.00
per acre if a minimum of 100,000 trees were set out next year and we
were able to plan the work accordingly.
I would strongly recommend an inspection of the plantation during the
coming summer by an at large forestry official and the making of a full
report thereon which I am sure will justify my present recommendation
that a definite sum of not less than $2500 be allotted this Agency for
the next fiscal year for work on the experiment station for the
employment of irregular labor and the purchase of nursery stock. I
believe this sum will enable us, by using our regular employees whenever
possible, to set out about 100,000 trees on approximately 300 acres.
Our experimental work has aroused quite a little local interest and
comment, and is certain to react to the best interests of not only the
Quinaielt Indians and the Quinaielt Reservation but also of the
community at large. Under date of February 19th, I forwarded to the
Office newspaper clippings giving the details of a trip made on
Lincoln's Birthday, February 12th., by a number of the members of
Hoquiam Lodge of Elks #1082 to the experimental station and the Cook
Creek firs look-out. This was an excellent thing from all standpoints,
and largely because of the interest aroused both by this trip and by
comment aroused because of it, I was requested to give the Board of
Directors of the Hoquiam Chamber of Commerce the cost data on our
reforestation work to dat when the same was compiled, which I did in an
informal way at their noon meeting on March 19, 1930.
Very respectfully,
/s/HENRY B. STEER
Henry B. Steer
Supervisor of Forests
HES-003-1961-1974
HES-003-1961-1974
IIA30.1
COMM OF INDIAN AFF
290717
CORRESPONDENCE
STEER, HENRY B ; TAHOLAH INDIAN AGE
HES-003-1975-2009-A
HES-003-1975-2009
IIA29.5
COMM OF INDIAN AFF
290717
CORRESPONDENCE
SAMS, W B ; TAHOLAH INDIAN AGE
The Commission of Indian Affairs,
Washington, D. C.
Sir:
There is transmitted herewith, through the Taholah Indian Agency, the
forestry report for the fiscal year 1929 for the Quinaielt Indian
Reservation.
Very respectfully,
/s/ Henry B. Steer
Henry B. Steer
Superviser of Forests
/s/ W. B. Sams
W. B. Sams
Superintendent
INTRODUCTION:
General Description. (Narrative).
1. Area and location.
The Quinaielt Indian Reservation is located in the extreme western
central part of the State of Washington, and embraces about 196,644.97
acres, as follows:
Land area ..... 189,620.99 *
Rivers .......... 2,023.98
Quinaielt Lake 5,000.00
Total ......... 196,644.97
(* Including the following amount of alienated land)
Fee patented allotments ... 12,231.71
Land sold .................. 1,938.13
Total ..................... 14,169.84
2. Surface features, topography, etc.
The general topography is level with the exception of a strip about
five miles in width along the Pacific Ocean and a small area of
foot-hills of the Olympics in the extreme north eastern part. Four
rivers (Quests, Paft, Quinaielt, and Moclips) flowing west constitute
the main drainage system, but on the whole the reservation is very
poorly drained, resulting in large areas of Cedar swamp and several
large prairies which are under water in the winter.
3. The Forest.
The principal trees are Cedar, Spruce, Douglas Fir, Hemlock, White
and Amabilis Fir, and White Pine. The forest types are those of the
western slope of the Cascades. Because of poor drainage, the stand of
timber is very uneven, heavy and light stands of timber, Cedar swamp and
open prairie being mixed.
The completion of the Olympic Highway from Quinaielt Lake to the
Queets River, has opened considerable of the northern part of the
reservation to tourist travel. In logging the eight timber sales which
have been made, (totalling about 1,400,000,000 fee B. M.) four logging
railroads are being built by as many different companies, making a
considerable part of the Reservation lying South of the Quinaielt River
fairly access accessible. Practically all of the reservation lying
North of the Quinaielt River is still accessible only by means of poor
and infrequently travelled foot trails, and will remain so, in all
probability, until the timber is sold.
4. Statistics.
(A.) Estimated forest resources June 30, 1929. TABLE OMITTED SEE
ORIGINAL
(B.) Estimated value of timber lands, exclusive of timber June 30,
1929. TABLE OMITTED SEE ORIGINAL
(C.) Estimated percentage of predominating species.
Cedar .......... 48%
Hemlock ........ 26%
Spruce ......... 10%
Douglas Fir .... 8%
White Fir ...... 7%
White Pine ..... 1%
Organization and Personnel.
1. Graphical representation of organization as follows:
GRAPHIC OMITTED SEE ORIGINAL
2. Analysis of personnel in table form. TABLE OMITTED SEE ORIGINAL
(3 PAGES)
3. General discussion of personnel and organization from the point
of view of efficiency.
We take particular pride in the ability and efficiency of our
forestry organization, and would like to refer to the report of Mr.
James A. Howarth, Jr., submitted under date of July 4th, 1929 after he
had spent better than a month in inspecting our forestry work, had been
in every camp, and seen and worked with every employee. (Indian Office
file No. 20717-29). Mr. Howarth commends the organization in several
places in his report, and concludes the same as follows:
"The loyalty of the forestry organization on this reservation to
its chief, Mr. H. B. Steer, and the fine spirit of co-operation
and the snap with which all the work is attended to is so evident
here that I desire to note it in this report and say that I hope
that it may be my good fortune on many other reservations that I
may have to visit to find a loyalty and spirit that is fairly
comparable with it."
We believe we have a particularly efficient and smooth running
organization in all its necessary phases. The completeness of our
office records and the accuracy and great detail in which they are kept
has been reported to the Office by several inspecting officials.
Although over three quarters of a billion feet of timber, with a
stumpage value of over $2,300,000.00 has been removed from the
reservation, 95% of which is allotted, the records have been kept
accurately and in great detail. Our field records are just as complete
and accurage, and the efficiency and competency of the field men reflect
credit on the Indian Service.
4. Total Number of Forest Employees. 25
5. Number of acres to each employee. 6,000
I. General Expense, Forestry.
1. Analysis of items included under this cost figure.
A. Salaries of employees on office work.
B. Purchase and repair of office equipment.
C. Expenses not otherwise classified.
2. Cost of General Expense. TABLE OMITTED SEE ORIGINAL DOCUMENT
IDENTICAL TO 1983
III. Operation of Agency Sawmill.
No sawmill is operated by the Taholah Agency.
IV. Fire Protection.
Outline of system of control.
The big fire danger, on the Quinaielt Reservation, is in cut over
land and along the roads. Fire will very rarely burn in green, uncut
timber. During the past fiscal year two look-out stations have been
erected, both of which have been reported to the Office in previous
reports. One, the Pt. Grenville tower, is an 80 foot steel Aermeter
tower. The other, the Cook Creek station, is a 7 x 7 house built in a
Douglas Fir at a point 170 feet from the ground. Both of these stations
are equipped with standard Osborne Fire Finders, properly oriented, on
which maps of the surrounding country have been mounted; and high power
binoculars. The Pt. Crenville tower is tied into the Government owned
Taholah-Moclips telephone line by phone, which has direct connections at
the government house at Taholah and with two Forest Rangers at Moclips.
The Cook Creek station is tied in by phone with the headquarters camp of
the Hobi Timber Company and thence to Pacific Beach, and also by a
co-operative phone line built jointly by the Indian Service and the U.
S. Forest Service with the Quinaielt Ranger Station at Quinaielt and
Bell phone to Hoquiam. Fire fighting equipment is in constant readiness
at all logging camps and the crews, totalling about 750 men are
constantly available in case of fire.
Two patrolmen are on constant duty at the Taft River Station, (see
map attached to this report) and are tied in by phone with Quinaielt
Lake and thence to Hoquium by Bell phone. One of these men patrols the
Olympic Highway from Queets to Quinaielt at least once daily, and the
other patrols the trails taken by fisherman during periods of high fire
danger. One man patrols the road and beach from Moclips to Taholah
during periods of fire danger to warn campers etc.
Two new portable pumps were purchased during the fiscal year 1929 and
also 3,000 feet of inch and a half hose was purchased. Three dozen
shovels, and axes, saws, mattocks, and other fire fighting tools were
also purchased during 1929 besides two dozen back pumps (of five gallon
capacity). Two Ross Pumps, 1,500 feet of hose, and enough other
equipment for a crew of 25 men is kept at Moclips at the Ranger Station.
One Pacific Marine pump and enough other equipment for 25 men is kept
at the Taft River Ranger Station, together with about 1,000 feet of
hose. One Pacific Marine Pump, 1,000 feet of hose and other equipment
for 25 men is kept in Hoquiam where it can be sent out promptly, in case
of emergency, by forestry trucks.
This is the first year that funds for forest fire protection have
been available at this Agency in a large enough amount to do anything
with, and it is felt that we have accomplished commendable results. We
have now about 25% of the organization that we should have; we are now,
and have been seriously handicapped in our fire program by lack of
funds, and in the absence of additional funds for the procuring of
needed additional equipment and help, we can only do the best we can
with what we have to work with.
A hygro-thermograph of the most modern type was purchased and has
been installed in Hoquiam. The meteorologist from the Seattle Weather
Bureau very kindly came to Hoquiam and adjusted this instrument. Five
hygrometers have been purchased and will be placed at various points on
the reservation. These instruments are very valuable for we will be
warned of especially dangerous times, and can increase our patrol and
take other precautionary measures.
If we are to properly protect the cut over lands, which are
increasing yearly by thousands of acres, we must have additional funds
and help.
2. Discussion of character of fire season.
The relative humidity on the Quinaielt is generally considered to be
high, however on Friday July 12th 1929 at 6:00 p.m. it was only 24. We
believe the records which will be available after our new instruments
hav been in use for even a short period, will show that periods of very
low humidity are not uncommon in this locality. There are, however,
frequent night fogs, especially along the coast, which materially reduce
the fire danger. The annual precipitation is about 70 inches, most of
which falls during the winter months. Due to the proximity of the
ocean, there are generally steady winds, which die down during the
night. On the other hand the slash remaining after logging operations
is very heavy, especially in Cedar, and during the summer periods of
intense fire danger may come without much warning.
3. Analysis of forest fires as outlined on Form 5-483 (following)
Five years were reported during the fiscal year, three of which were
small ones, and two large ones. Since these fires originated on sale
areas, the burden, financial and otherwise, was mainly borne by
operating companies. The total cost of fire protection and suppression
to the government was $6,157.73. The value of co-operation on the part
of operating companies, was $15,409.50.
4. Cost of fire protection. TABLE OMITTED SEE ORIGINAL
5. Discussion of the problem.
As the area of cut over land increases year by year, and the
contractors complete their operations on portions of the sale areas, the
Service should be equipped to properly protect these lands from forest
fires. While a great deal in the line of preventive measures has been
done during the past fiscal year, the budget for the coming fiscal year
(1930) for this Agency does not carry one dollar for fire prevention or
suppression. We have no money for salaries of look-outs and patrolmen;
none for the purchase of equipment or any other fire purpose; and on
the contrary have not even enough funds to meet the payroll of regular
employees, most of whom are engaged in timber sale work. During the
coming year we should establish a Ranger Station in the East end of the
Moclips Unit, connect this station with the look-outs already
constructed by phone lines, and properly equip the station with fire
fighting tools and pumps so that the same would be ready for instant use
in case of fire. We should have funds available for the payment of
salaries of look-out men, patrolmen and fire guards, equipment and
supplies, and an emergency fund to be instantly available in case of a
fire which could not be handled by the regular force.
V. Grazing Management.
There is no grazing on the Quinaielt Reservation.
VI. Construction and Maintenance of Roads and Trails.
1. The location of trails and roads is shown on the attached map.
2. Cost of maintenance of Roads and Trails. TABLE OMITTED SEE
ORIGINAL
3. No new road or trail construction during past year.
4. Total Cost of new Construction $0.00
5. No new trail or road construction proposed. * Includes $3.92
spent for non expendable property
VII. Telephone Operation and Construction.
1. Inventory
A. Taholah-Moclips
B. Taholah-Moclips
C. About 9 1/2 miles
D. None
E. About 9 1/2 miles
1. Insulators, 600, #16 Glass
2. #10 copper wire.
3. 25 ft poles
4. Value $2991.55
F. Value $2991.55
G. Excellent.
A.A. Extension to Taholah-Moclips Line,
B.B. Pt. Grenville Look-out Tower to main line
C.C. About 1 1/2 miles
D.D. No tree line
E.E. About 1 1/2 miles
F.F. 1. Insulators, 50, #16 Glass
2. #10 copper wire
3. 25 ft poles
4. Value $237.62
F.F. Total Value $237.62
G.G. Excellent
AAA. Co-operative Indian and Forest Service line.
B.B.B. Cook Creek Look-out to Quinault Ranger Station
and Hobi Camp.
CCC. About 4 1/2 miles
DDD. Combined tree and pole line. This is a temporary line
and was strung on trees, where available, or on small poles made
from convenient and handy material.
#12 Galvanized iron wire.
About 300 insulators, #57 Porcelain Split.
Cost $486.27
FFF. Total Value $486.27
GGG. Excellent
Total miles of telephone line 15 1/2
Total Value based on cost $3,715.44
2. Cost of Operation (Maintenance) TABLE OMITTED SEE ORIGINAL
3. Analysis of new construction.
Given under 1. (Inventory)
4. Cost of new construction
Construction of extension from Taholah-Moclips line to Pt. Grenville
Tower TABLE OMITTED SEE ORIGINAL
Construction of co-operative line between the Cook Creek Look-out and
the Hobi Timber Company Camp and the Quinault Ranger Station of the U.
S. Forest Service. (Distance about 4 1/2 miles to reservation boundary
constructed by Indian Service) Clssificaton of Operatin Expenses Total
Number Total Unit cost
of miles Cost per mile
.01 Salaries and Wages, Regular 4 1/2 $254.01
Employees
.02 Salaries and Wages, Irregular 100.00
Employees
.03 Materials and Supplies 82.26 .04 Repairs and Preservation of ----
Property
.05 Traveling Expenses ---- .06 Expenses not otherwise ----
classified
Gross Total Cost 486.27 $108
5. Outline of proposed construction.
A phone line should be constructed connecting the Pt. Grenville and
Cook Creek Look-out Towers with a Ranger Station to be constructed in
the extreme Eastern part of the Moclips Unit. About 20 miles of line
would be needed, and the construction will depend upon the appropriation
which can be obtained for forest fire prevention and suppression on the
Quinaielt Reservation. A full report on this proposed telephone line
will be made to the Indian Office before the next fire season.
VIII. Miscellaneous Improvements.
1. Analysis of Miscellaneous Improvements.
TABLE OMITTED SEE ORIGINAL
2. Cost of Maintenance.
All new construction in Spring of 1929, no maintenance.
3. Analysis of new improvements during year.
All three items were constructed during year.
4. Cost of new construction, as follows:
Miscellaneous Improvements .......... Total Number Total Cost
Classification of Operating Expenses ...... 3 TABLE OMITTED SEE
ORIGINAL
(Note the total value of the Cook Creek Tree is about $1,000.00.
This station was built through a co-operative agreement between the
Indian Service and the Hobi Timber Company, the company co-operating to
the value of $750.00.)
(Note: All three of the above miscellaneous improvements were built
for purposes of fire prevention, and the cost of the same was included
in the cost of fire protection, item IV 4 of this report. To avoid
duplication the item miscellaneous improvements will not be included in
the summary.)
5. Proposed miscellaneous improvement construction.
A. It is entirely probable that recommendations will be made
to the Office for the establishment of another look-out station
midway between the Pt. Grenville and the Cook Creek Stations
during the coming year, however it will take a very thorough field
investigation, and if the same shall disclose that the
establishment of another tower is necessary, proper
recommendations will be made.
B. It will be necessary, in the future, to build at least two
more look-out stations North of the Quinaielt River, however these
will not be built during the coming year.
C. A Ranger station will need to be built in the extreme
Eastern end of the Moclips Unit, and connected with the two
look-outs by telephone. The establishment and equipment of this
station will cost about $2,000.00, and a full report to the Office
will be made concerning this matter in the near future.
IX. Miscellaneous Non-Forest Work.
Expense incurred under this activity are trips to reservations other
than the Quinaielt, work in connection with the Raft River Camp Site,
trips with inspecting officials not in connection with timber work, and
general agency activities such as hauling of supplies, etc.
Non-Forest Work .......................... Total Cost
Classification of Non-Forest Work ........ Amount
.01 Salaries and Wages, Regular Employees . $257.22
.02 Salaries and Wages, Irregular Employees 353.67
.03 Materials and Supplies ................... 8.53
.04 Traveling Expenses ....................... 7.00
.05 Repairs and Preservation of Property .... -- -
.06 Expenses not otherwise classified ....... -- -
Gross Total Cost .......................... $626.42
X. Timber Sale Administration.
TABLE OMITTED SEE ORIGINAL (2 PAGES) Note: For statistical purposes, in
compiling the foregoing analysis of the cut for the year 1929, to
convert Cedar Poles and R. R. Ties to M. Bd. Ft., It is believed that
the following will be approximately correct:
385,629 linear feet of poles equals about 400,000 Feet B. M.
1,606 R. R. Ties equals about ........ 50,000 "
....................... Total ....... 450,000
................ Total Log Scale 145,994,430
................ Grand Total .... 145,444,430 feet B. M.
3. Total Cost of Administration and Income TABLE OMITTED SEE
ORIGINAL
4. General discussion of timber sales by units.
A. Attitude of purchaser
Unit ................... Purchaser .... General Attitude
Moclips ................ Aloha ........ Satisfactory
Pt. Grenville .......... Smith ........ Satisfactory
Cook Crrk .............. Hobi ......... Satisfactory
Quinaielt Lake ......... Ozette ....... Satisfactory
Hatch .................. Aloha ........ Satisfactory
Mounts ................. Aloha ........ Satisfactory
Upper Wreck Creek ...... Aloha ........ Satisfactory
Hall ................... Aloha ........ Satisfactory
B. General efficiency of forest officers.
Timber sale administration on the Quinaielt presents peculiar
difficulties, a large part of which is due to the inaccessibility of
some of the camps; the fact that 98% of the timber is allotted; the
heavy stand per acre; the fact that we must scale on the landings as
the logs are loaded; and the excessive rain. Our employees are
competent and efficient. We take a great deal of pride in the men who
compose our organization and in the results which are obtained. The
attitude of all the purchasers is very satisfactory, especially in the
matter of fire protection.
TABLE OMITTED SEE ORIGINAL (2 PAGES)
Amount Collected
... Advance Payments .. $ 451,064.55
... Advance Deposits ... 2,210,833.18
... Total ............................... $2,661,897.73
Distribution
... Ind. Indian Money $2,112,644.57
... Treas. U.S. ........ 150,568.32
... Expense Acct. Tbr... 196,670.07
... Total ............................... $2,459,876.96
Difference .............................. $ 202,020.77
"Special Deposit" Account at Taholah
... Agency June 30, 1929.
... Moclips ........... $34,416.53
... Pt. Grenville ..... $17,785.49
... Cook Creek ........ $52,935.28
... Quinaielt Lake .... $16,454.54
... Mounts ............ $21,178.87
... Hatch ............. $21,934.93
... Upper Wreck Creek $9,657.24
... Hall .............. $27,657.89
... Total ............................... $ 202,020.77 *
* This amount is accounted for as follows:
1. The amount in "Advance Deposits" on each unit.
2. The value of the timber cut in June (about $43,000.00) not
distributed yet.
3. We hold back $300 on each scaling allotment until
operations are completed and the books checked (as explained in
previous reports).
8. Summary of work to be completed during the coming year.
A. List of units on which re-adjustments will become
effective.
1. Stumpage re-adjustment will become effective on the Cook
Creek Unit on April 1, 1930.
2. No bonds expire during the coming year.
C. List of allotments, dates and amounts of advance payments
which will come due. (Immediately following).
payments which will come due.
TABLE OMITTED SEE ORIGINAL (2 PAGES)
Timber contracts in force June 30, 1929.
Squaxin Island
.. Kalapin or John #2 ......................... $ 825.00
Georgetown or Shoalwater
.. Sale to United States Fidelity and
.. Guaranty Company, of Baltimore, Maryland $8651.56
....................... Total Value ........... $9476.56
Note -- The field work in connection with these sales is done without
cost to the Taholah Agency, since appraisal, etc., is done by Steer and
paid from other funds.
Operation
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
Title ................................... Amount
Expenses, Sale of Br. Re-im '29 .... $41,012.61
Ind. M. Pro. L. Q. Sup 1929 ........ 2,628.51
Expenses, Sale of Tbr Re-im '28 ........ 146.01
Ind. Wk. C of Tbr. Forestry '29 ....... 718.05
Total .................................. 44,505.18
Deduct $5.70 entered in cost ledger
... in 1928 but not paid until July '29 .... 5.70
Grand Total .......................... $44,499.48
Credits
..... Balance on hand 6-30-28 ..... $56,325.47
..... Deposits during fiscal yr '29 . 35,616.39
..... Deposited on 10-31-28 from
......(ILLEGIBLE) of Tbr R. '28.......... 15.60
..... Total Credits ............................ $91,957.46
Debits
..... Placed to Supt's credit
....... during fiscal yr '29 ......... 42,430.20
..... Total Debits ............................. $42,430.20
Balance in Treasury on June 30, 1929 ........... $49,527.26
..... On hand, Taholah Agency, June 30, 1929
.......... Exp S of Tbr Re-im 1929 ... $1,202.39
................ (1929 encumbrances)
HES-003-1975-2009-B
HES-003-1975-2009
IIA29.5
290618
CORRESPONSPONDENCE
SAMS, W B ; TAHOLAH INDIAN AGE
Forestry
6331-29
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
In accordance with the provisions of the approved forms of
advertisements and instructions from your Office, bids were opened at
this office at noon to-day on the following units of timber in the
Quinaielt Indian Reservation: Raft River; Cape Elizabeth; Lunch
Creek; and Joe Creek. Four bids were received, one bid on each unit,
as follows:
Lunch Creek Unit, bid by Ozette Railway Company at minimum
advertised prices. Raft River Unit, bid by Aloha Lumber Company at
minimum advertised prices. Cape Elizabeth Unit, bid by M. R. Smith
Lumber and Shingle Company at minimum advertised prices. Joe Creek
Unit, bid by Hobi Timber Company, $3.75 per thousand for Spruce
and Douglas Fir, all other prices bid were the minimum given in
the advertisement.
The original bids are transmitted with this report, and the duplicate
copies which were submitted are being retained in the files of this
office. A certified check drawn in favor of the Superintendent of the
Taholah Indian Agency accompanied each bid, and these checks are being
held at this office pending instructions. The bids are in order, comply
with the regulations, and the Office has been advised by wire that we
recommend acceptance of all bids received.
Our reasons for recommending acceptance of the bids received to-day
are as follows:
FIRST, We believe the prices bid to be a fair return to the Indian
owners of stumpage under present conditions of the lumbering industry on
Grays Harbor or for the past several years. All the contracts provide
for the re-adjustment of stumpage prices every three years, and should
conditions in the lumbering industry improve in the future, it will be
possible to adjust the prices under contract provisions. It was hoped
that outside competition would be obtained for this timber, and to our
knowledge several concerns who are not now engaged in logging timber on
the reservation sent cruisers over the proposed sale areas for an
examination of the same. The Office is respectfully referred to our
report of February 2, 1929 recommending these units for sale, especially
to the portions of the report giving the percentage of the different
species, the light stand per acre, and the approximate cost of logging
operations. The new units contain a very small percentage of Douglas
Fir, there being none in the Cape Elizabeth, and relatively large
amounts of Hemlock and Amabilis Fir, and as logging changes in this
locality can certainly not be classed as expecially desirable. The fact
that no outside bids were received, in view of the provisions of the
contract which made such bids possible, leads us to believe that those
concerns who are not now operating on the reservation who had the sale
areas examined came to the conclusion that they were not sufficiently
desirable to bid on. We believe that when all pertinent factors were
taken into consideration, including the species and density of timber,
the nature of the ground, and the condition of the industry generally,
that the prices bid represent fair values for the timber.
SECOND, We believe that the big majority of the Indians whose
allotments are included in the sale areas are in favor of the sale of
their timber. We have been unable to give as much time to the securing
of powers of attorney from allotees as perhaps should have been done
under the circumstances, because of the illness of the Superintendent,
which has been of almost a month's duration, and also because one of our
Senior Forest Rangers underwent an operation which necessitated his
absence for a like period. With regular work and preparation for the
forest fire season, the time which we could spend in seeing individual
Indians has been limited, for the majority of them live in out of the
way places which requires that fairly long trips be made to interview
them. However, Powers of Attorney have been secured for over three
hundred allotments, and it is our opinion that the large majority of the
remaining allottees will execute Powers of Attorney for the sale of
their timber fairly promptly after the bids have been accepted. The
Office is respectfully advised that many of these allottees are urgent-
ly in need of the funds which will accrue to them from the sale of their
timber in these sale areas. Especially is this true of the Quileute
Indians living at LaPush. We made a trip to LaPush, and in spite of the
fact that several of the Taholah agitators visited LaPush before we did
and advised the LaPush Indians not to consent to the sale of their
timber, every Indian at LaPush who had timber included within the
proposed sale areas signed a Power of Attorney after we had met with
them and explained the provisions of the contract to them. It took us
less than twenty four hours to obtain the signatures of approximately
two hundred LaPush Indians.
The only opposition which we expect to develop against these sales
will be on the part of a few Taholah agitators who have opposed every
sale of timber made on the Quinaielt, and a few outside allottees who
are of mixed blood. In the eight timber sales which have previously
made every allotment, to the total number of 640, is under contract. We
believe the big majority of the Indians realize that they obtain more
for their timber when the same is sold in large bodies, and that they
are in favor of these four sales being made.
THIRD, We do not believe that the present sales should be held up
because of the possibility of the construction of a common carrier
railroad through the Quinaielt Indian Reservation. While we believe
that a common carrier railroad through the reservation to the Hoh River
would be of great benefit to the Quinaielt Indians and to the entire
Grays Harbor community, yet the Interstate Commerce Commission has not
as yet held a hearing on the application of the N. P. and U. P.
railroads to construct such a line; the date of the hearing has not
been set; and there is very strong opposition against the building of
such a railroad. We have received bona fide bids from responsible
companies for the units of timber after due and wide advertisement, and
we believe that the prices bid represent fair value for the timber. If
these bids are not accepted and the common carrier is not built, we
doubt very seriously if we will be able to obtain as good prices within
the next few years, and in the meantime one or more of our present
operators, having completed the logging of the timber they now have
under contract, will scrap their present investments for lack of timber
and would not be in the market for additional units. On the other hand
if these bids are not accepted and the common carrier railroad is built,
it is doubtful, or at least problematical, if this timber could be sold
at any higher stumpage prices than we have obtained as a result of the
recent advertisement. Three out of the four bidders ship their logs now
over the Northern Pacific; any outside concern would have to do the
same; and the fact that the units contain in the main undesirable,
scattering timber mostly of inferior species would still remain. Again
if these bids are not accepted, it is certain that a large number of
allottees will apply for and obtain fee patents to their allotments
which they will sell for a fraction of their true value. The Office is
respectfully requested to refer to our report of February 2, 1928, and
to a report by Steer under date of October 2, 1928. The issuance of
many fee patents and the subsequent sale of the same, which is sure to
follow, will result in making the units of timber less desirable and
will depreciate the value of the remaining timber.
FOURTH, Due to the provisions of the approved form of contracts for
all of the new sales under consideration, and to the fact that the
bidders are all concerns now operating on the reservation, no
appreciable difference will be noted in the Grays Harbor Log Market
insofar as the volume of logs received is concerned, and we are hopeful
that arrangements can be made for the disposal of pulp material not only
from the new sale areas before operations therein get under way, but
also from the uncut portions of sale areas previously sold. A
considerable amount of work toward the building of a new pulp mill has
been done by the Aloha Lumber Company, and both the Hobi and Smith
Companies have signified their entire willingness to remove pulp
material from the reservation when and if a new pulp mill is obtained.
We are working with a committee from the Hoquiam Chamber of Commerce,
which is communicating with several pulp mills with the view to
establishing a new pulp mill on Grays Harbor and are very optimistic of
results. We believe that in view of the attitude of the Aloha, Hobi,
and Smith Companies with regard to the removal of pulp material, and in
view of the contract provisions which make the removal of such pulp
material possible, that the approval of the bids received to-day will be
a very strong factor in bringing a new pulp mill to Grays Harbor, for
the three concerns just mentioned, can, if their bids are accepted,
guarantee a pulp company a supply of raw material for the next 25 years.
This is a very important factor, for we are informed that the question
of a constant supply of raw material is one of the reasons why
additional pulp plants have not located on Grays Harbor.
The Office is probably aware that the Polson Logging Company and the
Ozette Railway Company are furnishing the new Zellerbach Pulp mill on
Grays Harbor with the bulk of its raw material. The Ozette Railway
Company removes a great deal of Hemlock, unmerchantable for logs, from
the Quinaielt Lake Sale area now, and will undoubtedly continue to do so
from the Lunch Creek Unit if their bid for that unit is accepted.
FIFTH; We do not believe that the approval of the bids for the four
units of timber under consideration will in any way interfere with the
building of a common carrier railroad across the reservation if a
careful study and analysis of the situation is made. Three out of the
four concerns now operating on the reservation, who have also bid on the
new units, ship the majority or all of their logs over the Northern
Pacific now. The Hobi Timber Company ships all their logs over the
Northern Pacific, and both Aloha and Smith ship all of their logs except
the Cedar that they manufacture at their shingle mills over the same
railroad. If the N. P. and U. P. extend through the reservation to the
Hoh, these three concerns will continue to ship their logs over the
common carrier, and due to the zone rate on logs will deliver their logs
to the common carrier at the closest point to the operations. The
tariff on logs is as follows:
10 miles or less ........ $1.75 per m ft
10-15 .................... 1.95
15-20 .................... 2.10
20-25 .................... 2.20
25-30 .................... 2.275
etc. increasing by five mile zones and 7 1/2[ per zone to
90-95 .................... 3.25
95-100 ................... 3.30
etc increasing by five mile zones and 5[ per zone to
200 miles ................ 4.30 From Aloha to Grays Harbor is in the
20-25 mile zone. If Aloha should ship all the logs from the Raft River
over the N. P. at a point approximately in the center of the unit, a
distance of thirty miles would be added to the haul which would increase
the charge to $2.65 per M or an increase of 45[ per M. Aloha cannot
operate and maintain thirty miles of private railroad for 45[ a thousand
feet. Mr. Carlson, majority owner of the Hobi Timber Company, told us
that he had told Mr. Donnelly, President of the Northern Pacific
Railroad that if the N. P. was extended that he would scrap his mainline
and use it to build spurs to the N. P. extension and would ship his logs
over the N. P. at the point nearest his operations, and we see no reason
why Aloha and Smith should not do the same.
In conclusion we recommend the approval and acceptance of the bids
submitted because:
1. We believe the prices bid to be fair values for the timber.
2. Many of the allottees are urgently in need of funds, and we
believe the majority will execute Powers of Attorney for the sale
of their timber because they are in favor of such sale.
3. We do not believe the sales should be postponed because of
the possibility of a common carrier railroad being built across
the reservation and are doubtful if any greater prices would be
obtained were such railroad built.
4. We believe that the acceptance of these bids will stimulate
the establishment of additional pulp mills on Grays Harbor through
making available a large supply of pulp material.
5. We do not believe that the approval of these sales will
interfere in the building of a common carrier railroad across the
reservation.
Very respectfully,
W. B. Sams
Superintendent
Supervisor of Forests
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IIA29.4
COMM OF INDIAN AFF
290618
CORRESPONDENCE
STEER, HENRY B ; TAHOLAH INDIAN AGE
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
We feel, and Superintendent Sams is of the opinion also, that we
should report to the Office that at the opening of bids to-day at noon
at this office on several timber sale units that a disturbance was
created and serious charges made by David Baker, a white man who married
Ellen Baker, Quinaielt allottee #925. The opening of the bids was
attended by several timber buyers, representatives of the press, members
of the Hoquiam Chamber of Commerce, and several Agency employees. David
Baker, Stuart H. Elliott, and D. H. Rowland also attended.
After bids were opened, Mr. Baker came to the desk at which the
Senior Clerk was seated and demanded the envelopes in which the bids
were submitted that his attorney (Mr. Elliott) might examine them. He
was allowed to see the envelopes and took them across the room to Mr.
Elliott who put in them in his pocket and started from the room. We
told him that those envelopes were a part of the records of this Agency
and could not be taken from the room. He refused to give them up but
did surrender them just as we were about to phone the police. Whereupon
Mr. Elliott and Mr. Baker both stated that the timber sales were "cut
and dried" before-hand, and that employees of this Agency were in
collusion with the timber companies to defraud the Indians.
While this matter may seem of small importance, it is reported to the
Office as evidence that certain parties are continually stirring up
trouble among the Indian wards of the government through making serious
charges against employees which cannot be substantiated.
Very respectfully,
Henry B. Steer
Supervisor of Forests
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IIA29.4
COMM OF INDIAN AFF
290215
CORRESPONDENCE
STEER, HENRY B ; QUINAULT INDIAN RE
Rec: Feb. 15, 1929
Forestry
/s/ HENRY B. STEER
Supervisor of Forests
Forestry
The Commisioner of Indian Affairs,
Washington, D. C.
Sir:
I have gone very carefully over the attached report of Mr. Henry B.
Steer, Supervisor of Forests, concerning the offering of the proposed
Lunch and Joe Creek, Raft River, and Cape Elizabeth Logging Units within
the Quinaielt Indian Reservation, and concur fully in his report and
recommendations.
Very respectfully,
W. B. Sams
Superintendent
MAP OMITTED SEE ORIGINAL
Sealed bids in duplicate, marked outside "Bid Lunch Creek Unit", and
addressed to the Superintendent, Taholah Indian Agency, Hoquiam,
Washington, will be received until 12 o'clock noon, Pacific time, 1929,
for the purchase of the merchantable timber on a tract in Township 23
North, Ranges 11 and 12 West, Williamette Meridian, in the Quinaielt
Indian Reservation. The unit includes about 23,500 acres with a total
stand of approximately 480,000,000 feet, of which about 400,000,000 feet
stands on about 16,000 acres of allotted land, as to which separate
contracts with the Indian owners are authorized and may probably be
made. The sale embraces approximately 119,000,000 feet of Hemlock;
252,000,000 feet of Cedar; 11,000,000 feet of Spruce; 3,000,000 feet
of Douglas Fir; 88,000,000 feet of Amabilis Fir; 7,000,000 feet of
White Pine; 1,000,000 linear feet of Cedar Poles; and an unestimated
amount of Douglas Fir Piling. Each bid must state the price per
thousand feet Scribner Decimal C Log Sale that will be paid for timber
cut and scaled prior to April 1, 1933. Prices subsequent to that date
are to be fixed by the Commissioner of Indian Affairs by three year
periods. No bid for the first period will be considered of less than
the following rates per thousand feet: Three Dollars ($3.00) for live
and dead Cedar, Spruce, Douglas Fir, and White Pine; One Dollar ($1.00)
for Hemlock, Amabilis Fir, and other species: and per linear foot: for
Cedar Poles 20 feet and under in length with not greater than a 6 inch
top diameter, one half cent ($.005); for Cedar Poles 21 to 45 feet in
length and with not greater than a 9 inch top diameter, one and one
quarter cents ($.0125); for Cedar Poles 46 feet and over in length, and
with not greater than a 9 inch top diameter, one and one half cents
($.015); and for Douglas Fir Piling with not greater than an 18 inch
butt diameter, one half cent ($.005). Each bid must be accompanied by a
certified check on a solvent National Bank in favor of the
Superintendent of the Taholah Indian Agency in the amount of $20,000.00.
The deposit will be returned to unsuccessful bidders, applied as part
of the purchase price of successful bidder, or retained as liquidated
damages if the successful bidder shall not execute contract and furnish
satisfactory bond for $60,000 within 60 days of the acceptance of his
bid. At least 5,000,000 feet board measure, log scale, must be cut and
removed from some portion of the sale arear prior to March 31, 1933, and
not less than 25,000,000 feet during each twelve months thereafter until
the contract is completed. All timber covered by the contract must be
cut and removed prior to March 31, 1952. The right to waive technical
defects and to reject any of all bids is reserved. For copies of the
contract and regulations, topographic and stand maps of the sale area,
blanks for the submission of bids and other information, apply to the
Superintendent of the Taholah Indian Agency, Hoquiam, Washington.
Washington, D. C. ,1929
Commissioner
LUNCH CREEK UNIT:
THIS AGREEMENT made and entered into at the Taholah Indian Agency,
Hoquiam, Washington, this ... day of ..., 1929, under authority of the
act of Congress of June 25, 1910 (36 Stat. L. 355-357), between the
Superintendent of the Taholah Indian Agency, hereinafter called the
Superintendent, for and in behalf of the Quinaielt Tribe of Indians,
party of the first part, and .......... of .........., party of the
second part, hereinafter called the purchaser:
WITNESSETH, that the Superintendent, in consideration of the
agreements by the purchaser, agrees to sell to the purchaser upon the
terms and conditions herein stated and the General Timber Sale
Regulations hereto attached and made a part of this contract, all the
merchantable dead timber, standing or fallen, and all the merchantable
live timber marked or otherwise designated by the officer in charge for
selective logging as required by the attached General Timber Sale
Regulations, comprising trees fourteen inches and larger in diameter at
a point four and one half feet from the ground, estimated to be
80,000,000 feet on unallotted land within a tract having a total
estimated stand as follows:
Hemlock .......... 110,000,000 feet B. M.
Cedar ............ 262,000,000 "
Spruce ............ 11,000,000 "
Douglas Fir ........ 3,000,000 "
Amabilis Fir ...... 88,000,000 "
White Pine ......... 7,000,000 "
Cedar Poles ........ 1,000,000 linear feet
Area ............ about 23,500 acres. and an unestimated amount of
Douglas Fir Piling, all located on allotted and unallotted lands within
a tract of about 23,500 acres, known as the "Lunch Creek Logging Unit",
lying in the north-central portion of the Quinaielt Indian Reservation
and described as follows:
Lot 1 of Sec. 2; Lots 1, 2, 3, and 4 of Sec. 3; Lots 3, 4, 5, 6,
and the S/2 SE/4 of Sec. 4; all of Sections 5 and 6 within the
Reservation; all of Sec. 7 except the SWNW, SENW, and the SWNE; Sec.
8; Sec. 9; Sec. 10; all of Sections 11 and 12 within the Reservation;
Sec. 13; Sec. 14; Sec. 15; Sec. 16; Sec. 17; Sec. 18; Sec. 19;
Sec. 20; Sec. 21; Sec. 22; Sec. 23; Sec. 24; Sec. 25; Sec. 26;
Sec. 27; Sec. 28; Sec. 29; Sec. 30; all in Township 23 North, Range
11 West. All of Sections 1 and 2 within the Reservation; and Sections
11; 12; 13; 14; 23; 24; 25; and 26 in Township 23 North, Range 12
West, excepting areas of swamp and open meadow land, and land so poorly
timbered that the Commission of Indian Affiars shall consider logging
thereon to be inpracticable.
400,000,000 feet of this timber is on an area of about 16,000 acres
of allotted land, and the Superintendent authorizes the purchaser to
enter into separate contracts with Indians holding trust patented
allotments within the limits of the sale area above defined for the
purchase of their timber, subject to Indian Service regulations, which
require an approval of each separate contract.
FOR AND IN CONSIDERATION of the agreements by the Superintendent, the
purchaser agrees that prior to March 31, 1952, he will cut and remove
all the timber covered by this contract, and will pay to the
Superintendent for the use and benefit of the Quinaielt tribe of
Indians, the full value of the said timber, as shall be determined by
the actual scale of the timber at fixed rates per thousand feet, board
measure, Scribner Decimal C Log Scale, which rates for specified periods
of the contract shall be as follows:
(a) For the period ending March 31, 1933:
For live and dead Cedar .......... Dollars and ... Cents
For live and dead Spruce ......... Dollars and ... Cents
For live and dead Douglas Fir .... Dollars and ... Cents
For live and dead White Pine ..... Dollars and ... Cents
For live and dead Amabilis Fir ... Dollars and ... Cents
For live and dead Hemlock and
...... other species ............. Dollars and ... Cents
and per linear foot:
For Cedar Poles 20 feet and under in length with not
greater than a 6 inch top diameter ............... cents.
For Cedar Poles 21 to 45 feet in length with not greater
than a 9 inch top diameter ....................... cents.
For Cedar Poles 46 feet and over in length with not
greater than a 9 inch top diameter ............... cents.
For Douglas Fir Piling with not greater than an 18 inch
butt diameter ................. cents.
(b) For each of the three year periods of the contract term beginning
April 1, 1936; April 1, 1939; April 1, 1942; April 1, 1945; April 1,
1948; and April 1, 1951; such prices for each species as shall be
fisced by the Commission of Indian Affairs in the manner hereinafter
described.
The purchaser further agrees that within two months from the date of
approval of this contract he will enter into approved separate contracts
with such Indians holding trust patented al allotments within the above
defined tract as desire to sell their timber and that he will pay to the
Superintendent in trust for such Indians the full value of the allotted
timber covered by such contracts at the prices stipulated for unallotted
timber and subject to the same regulations, restrictions, and provisions
as to periodic increase in price, and he also agrees that within thirty
days of the approval of the contract on any allotment he will pay 10
percent of the estimated value of the timber thereon as an advance
payment, and further that within three and six years, respectively, from
the approval of the contract on any allotment, he will make two
additional 10 percent payments of the estimated value, and further that
within nine years from the approval of the contract on any allotment he
will pay an additional 20 percent of the estimated value of the timber
thereon.
The purchaser agrees that prior to the time when the stumpage value
of the timber cut from both allotted and unallotted lands hall exceed
the cash deposit of Twenty Thousand Dollars ($20,000.00) submitted with
his proposal to purchase the timber, he will make another cash deposit
of not less than Twenty Thousand Dollars ($20,000.00) and subsequent
payments of Twenty Thousand Dollars ($20,000.00) at such times as may be
necessary to insure that the stumpage value of the timber cut and not
paid for shall not exceed the cash deposit than in the hands of the
Superintendent.
The purchaser further agrees that he will, unless relieved by the
Commission of Indian Affairs, cut and remove from some portion of the
sale area, including allotments, at least five-million feet, board
measure, log scalp, prior to March 31, 1933, and not less than
twenty-five million feet during each twelve months thereafter until the
contract is completed. The purchaser further agrees that he will remove
and pay for, as merchantable timber, pieces twelve feet and longer, will
utilize the trees to a diameter of twelve inches in the tops where
straight and sound, and will pay for all logs on the basis of a scale
recognizing thirty-two feet as the maximum scaling length of a single
log; that all timber will be considered merchantable as provided for in
the attached regulations, except that Hemlock and Amabilis Fir must be
one-half or more sound; and that he will conform with all requirements
of the Indian Service General Timber Sale Regulations, approved April
10, 1920, which are attached hereto and made a part of this contract.
For purposes of stumpage price readjustment by the Commissioner of
Indian Affairs at the close of the first period of the contract as
specified above, it is hereby stipulated by the Superintendent and the
purchaser that the average value of the following standard log grades as
recognized generally in Grays Harbor markets for the three-year period
ending January 1, 1929, have been as follows: TABLE OMITTED SEE
ORIGINAL
In determining the stumpage rates to be designated for all timber
scaled during the three-year period, beginning April 1, 1933, the
average value of logs at mills operating in Grays Harbor during the
three years directly preceding January 1, 1933, will be compared with
the values of logs as stipulated in the preceding paragraph as basic
values, and the cost of logging operations during the said three years
will be compared with the cost of such operations during the three-year
period directly preceding January 1, 1929, for the purpose of
ascertaining, so far as is practicable, whether there has been generally
in the logging industry in the specified region an increase in the
margin of profit on logging operations during the three-year period
directly preceding January 1, 1933.
Any advance in stumpage rates prescribed by the Commissioner for the
three-year period beginning April 1, 1933, shall not exceed 50 percent
of the difference between the average value of logs of that species at
mills as stipulated above and that for the same species during the three
years directly preceding January 1, 1933. And further, the Commissioner
of Indian Affairs shall have the right, on dates set for readjustment of
the saw timber stumpage prices, to readjust the stumpage prices to be
paid for Cedar Poles and Douglas Fir Piling and to increase the stumpage
on Cedar Poles not more than one-half cent per linear foot, and to
increase the stumpage price on Douglas Fir Piling not more than
one-fourth cent per linear foot. In the discretion of the Commissioner,
a reduction in the stumpage price of any species may be subsequently be
made to correct any error, or to afford the purchaser relief from a
market depression that deprives the purchaser of a substantial margin of
profit; PROVIDED, that the stumpage price of no species will ever be
reduced below the rate bid for the initial period of the contract.
For the periods of the contract beginning April 1, 1936, April 1,
1939, April 1, 1942, April 1, 1945, April 1, 1948, and April 1, 1951, a
readjustment of stumpage prices may be made in the same manner as for
the period beginning April 1, 1933, except that the prices determined
and used for any three-year period will be considered as the stipulated
prices that are to be compared with the average prices obtained during
the succeeding three-year period.
Notice of the new schedule fo prices shall be given the purchaser by
letter not later than the first day of March in the years 1933, 1936,
1939, 1942, 1945, 1948, and 1951. Although the determination of the new
rates shall lie wholly within the discretion of the Commissioner of
Indian Affairs, a hearing will be afforded upon written request
presented at least fifteen days before the date upon which the new
stumpage rates are to become effective for any period.
The burning of slashings on restricted areas for the protection of
logging camps, bridges, and other structures or equipment will be
allowed under written permits from the forest officer in charge and
under his supervision, and the Commissioner of Indian Affairs may, in
his discretion, require the purchaser to burn the slash on all parts of
the sale area, both that already on the ground and that resulting from
logging operations, at such times and in such manner as the officer in
charge may direct. No slash shall be burned during the period from May
1 to September 30 without the written consent of the officer in charge.
Such fire lines as are necessary for the safe burning of all slash shall
be cleared by the purchaser for a width of not to exceed eight feet, and
when necessary a strip of mineral earth three feet in width will be
exposed in the fire line parallel to its sides.
The following provisions supercede Paragraph 30 of the General Timber
Sale Regulations. During the period from May 1 to September 30, and at
such other times as the officer in charge may prescribe.
1. All locomotives and locomotive cranes will be equipped with
modern spark arresters acceptable to the officer in charge, and will
also be equipped with a steam force pump of not less than one inch
discharge, two hundred feet of serviceable hose, two shovels, two axes,
one mattock, two twelve-quart pails, and a constant supply of not less
than twelve barrels of water.
2. Oil burning logging machines will be equipped with modern spark
arresters acceptable to the officer in charge, a suitable power pump
with not less than two hundred feet of serviceable hose, three shovels,
two axes, one mattock, two twelve-quart pails, one hand force pump, and
two fifty-gallon water barrels constantly filled with water.
3. Gasoline or other internal combustion logging machines will be
equipped with a modern exhaust screen acceptable to the officer in
charge, one hand force pump or chemical fire extinguisher, two shovels,
two axes, one mattock, two twelve-quart pails, and one fifty-gallon
water barrel constantly filled with water.
4. Gasoline or other internal combustion water pumps will be
equipped with a modern exhaust screen acceptable to the officer in
charge.
5. Gasoline or other power speeders will be equipped with one hand
force pump, one axe, one shovel and one mattock.
All of the above equipment, excepting the arresters and screens which
will be in constant use during the fire season, shall be kept in
serviceable condition and ready for instant use during the fire season.
The tools such as axes, shovels, etc., shall be kept in special tool
boxes plainly marked "FOR FIRE ONLY" and shall not be used except in
case of fire.
Coal or wood burning machines of any nature will be allowed only upon
the written consent of the officer in charge, and will be equipped with
such tools and appliances during the fire season as he may prescribe.
Material unmerchantable, under the provisions of this contract and
the attached General Timber Sale Regulations, for saw logs, may be
utilized for pulp wood by the purchaser under regulations to be
prescribed by the Commissioner of Indian Affairs, PROVIDED, that the
stumpage price per cord of such material shall not exceed one-fourth of
the rate paid per thousand feet log scale for Hemlock and Amabilis or
White Fir, or one-eighth of the rate paid per thousand feet log scale
for other species.
If the purchaser of this unit shall be the purchaser of other units
of timber on the Quinaielt Indian Reservation, logging performed by him
on his other logging units beyond the minimum amount required annually
thereon will be accepted as performance on this contract during the
first four years of this contract, provided he completes this contract
within the period named, but subject to the provisions of Paragraph 9 of
the General Timber Sale Regulations; and the initial deposit of
$20,000.00 shall not be credited against the cutting of timber on other
units. The term of the contract may be extended on such conditions as
the Commissioner of Indian Affairs may impose.
It is further understood and agreed that this contract shall be null
and void and of no effect until approved by the Secretary of the
Interior, and until the latter shall approve a bond of the purchaser in
the penal sum of Fifty Thousand Dollars ($50,000.00) conditioned on the
faithful performance of all of the terms of this contract and the
regulations attached hereunto.
Signed and sealed in quintuplicate this ... day of ..., 1929.
WITNESSES:
Purchaser
Superintendent
The above contract approved this ... day of ..., 1929.
Secretary.
Sealed bids in duplicate, marked outside "Bid Joe Creek Unit", and
addressed to the Superintendent, Taholah Indian Agency, Hoquiam,
Washington, will be received until 12 o'clock noon, Pacific time, ....
1929, for the purchase the merchantable timber on a tract in Township 22
North, Ranges 11 and 12 West, Williamette Meridian, in the Quinaielt
Indian Reservation. The unit incudes about 23,700 acres with a total
stand of approximately 435,000,000 feet, of which about 314,000,000 feet
stands on about 11,600 acres of allotted land, as to which separate
contracts with the Indian owners are authorized and may probably be
made. The sale embraces approximately 145,000,000 feet of Hemlock;
182,000,000 feet of Cedar; 42,000,000 feet of Spruce; 27,000,000 feet
of Douglas Fir; 33,000,000 feet of Amabilis Fir; 6,000,000 feet of
White Pine; 1,000,000 linear feet of Cedar Poles; and an unestimated
amount of Douglas Fir Piling. Each bid must state the price per
thousand feet Scribner Decimal C Log Scale that will be paid for timber
cut and scaled prior to April 1, 1933. Prices subsequent to that date
are to be fixed by the Commissioner of Indian Affairs by three year
periods. No bid for the first period will be considered of less than
the following rates per thousand feet; Three Dollars ($3.00) for live
and dead Cedar, Spruce, Douglas Fir and White Pine; One Dollar ($1.00)
for Hemlock, Amabilis Fir and other species; and per linear foot; for
Cedar Poles 20 feet and under in length with not greater than a six inch
top diameter, one half cent ($.00t); for Cedar Poles 21 to 45 feet in
length and with not greater than a nine inch top diameter, one and one
quarter cents ($.0125); for Cedar Poles 46 feet and longer in length
with not greater than a nine inch top diameter, one and one half cents
($.015); and for Douglas Fir Piling with not greater than an 18 inch
butt diameter, one haf cent, ($.005). Each bid must be accompanied by a
certified check on a solvent National Bank in favor of the
Superintendent of the Taholah Indian Agency in the amount of $20,000.00.
The deposit will be returned to unsuccessful bidders, applied as part
of the purchase price of the successful bidder, or retained as
liquidated damges if the successful bidder shall not execute contract
and furnish satisfactory bond for $50,000 within 60 days of the
acceptance of his bid. At least 5,000,000 feet, board measure, log
scale, must be cut and removed from some portion of the sale area prior
to March 31, 1931, and not less than 25,000,000 feet during each twelve
months thereafter until the contract is completed. All timber civered
by the contract must be cut and removed prior to March 31, 1952. The
right to waive technical defects and to reject any or all bids is
reserved. For copies of the contract and regulations, topographic and
stand maps of the sale area, blanks for the submission of bids and other
information, apply to the Superintendent of the Taholah Indian Agency,
Hoquiam, Washington.
Washington, D. C., ......, 1929
Commissioner
JOE CREEK UNIT:
THIS AGREEMENT made and entered into at the Taholah Indian Agency,
Hoquiam Washington, this ... day of ..., 1929. under authority of the
act of Congress of June 25, 1910, (36 Stat. L. 855-857), between the
Superintendent of the Taholah Indian Agency, hereinafter called the
Superintendent, for and in behalf of the Quinaielt Tribe of Indians,
party of the first part, and second part, hereinafter called the
purchaser:
WITNESSETH, that the Superintendent, in consideration of the
agreements by the purchaser, agrees to see to the purchaser upon the
terms and conditions herein stated and the General Timber Sale
Regulations hereto attached and made a part of this contract, all the
merchantable dead timber, standing or fallen, and all the merchantable
live timber marked or otherwise designated by the officer in charge for
selective logging as required by the attached General Timber Sale
Regulations, comprising trees fourteen inches and larger in diameter at
a point four and one half feet from the ground, estimated to be
121,000,000 feet on unallotted land within a tract having a total
estimated stand as follows:
Hemlock ............ 145,000,000 feet B. M.
Cedar .............. 182,000,000 feet B. M.
Spruce .............. 42,000,000 feet B. M.
Douglas Fir ......... 27,000,000 feet B. M.
Amabilis Fir ........ 33,000,000 feet B. M.
White Pine ........... 6,000,000 feet B. M.
Total .............. 435,000,000 feet B. M.
Cedar Poles .......... 1,000,000 linear feet.
Area .............. about 23,700 acres. and an unestimated amount of
Douglas Fir Piling, all located on allotted and unallotted lands within
a tract of about 23,700 acres, known as the Joe Creek Logging Unit,
lying in the central portion of the Quinaielt Indian Reservation and
described as follows:
Lots 5 and 10 of Section 6; Lots 2 and 3 of Section 7 in Twp 22
North, Range 10 West. Sections 31 to 36 inclusive in Twp 23 North,
Range 11 West. Sections 1 to 11 inclusive that part of Sections 12 and
14 lying North of the Quinaielt River; Sections 15 and 16; Section 17
except the W/2 SW/4; Section 18; Section 19 except the E/2 SW/4; that
part of Section 20 lying North of the Quinaielt River except the W/2
SW/4; that part of Section 21 lying North and East of the Quinaielt
River; that part "f Section 22 lying North and West of the Quinaielt
River; Lots 2, 3, 4, and the NWNW of Section 27; Lots 1 and 4 and the
NENE of Section 28; Lots 2 and 3 of Section 29; and Lots 2 and 3 of
Section 30, all in Twp 22N Range 11 West. Sections 35 and 36 in Twp 23
N, Range 12 West. Sections 1, 2, and 11; Section 12 except the N/2
NW/4 and the W/2SW/4; Sections 13 and 14; Section 23 Except the
S/2SE/4; Section 24 except the E/2 SE/4; Lots 1, 2, 3, and 4 of
Section 25; all of Section 26 lying North of the Quinaielt River; and
Lot 2 of Section 35 in Twp 22N, Range 12 West, excepting areas of swamp
and open meadow land, and land so poorly timbered that the Commissioner
of Indian Affairs shall consider logging thereon to be impracticable.
314,000,000 feet of this timber is on an area of about 11,600 acres
of allotted land, and the Superintendent authorizes the purchaser to
enter into separate contracts with Indians holding trust patented
allotments within the limits of the sale area above defined for the
purchase of their timber, subject to Indian Service regulations, which
require an approval of each individual contract.
FOR AND IN CONSIDERATION of the agreements by the Superintendent, the
purchaser agrees that prior to March 31, 1952, he will cut and remove
all the timber covered by this contract, and will pay to the
Superintendent for the use and benefit of the Quinaielt tribe of
Indians, the full value of the said timber, as shall be determined by
the actual scale of the timber at fixed rates per thousand feet, board
measure, Scribner Decimal C Log Scale, which rates for specified periods
of the contract shall be as follows:
(a) For the period ending March 31, 1933:
For live and dead White Pine ....... Dollars and .... Cents
For live and dead Cedar ............ Dollars and .... Cents
For live and dead Spruce ........... Dollars and .... Cents
For live and dead Douglas Fir ...... Dollars and .... Cents
For live and dead Amabilis Fir ..... Dollars and .... Cents
For live and dead Hemlock and
....... other species .............. Dollars and .... Cents
and per linear foot:
For Cedar Poles 20 feet and under in length, with not
greater than a 6 inch top diameter .......... Cents.
For Cedar Poles 21 to 45 feet in length with not
greater than a 9 inch top diamerter ......... Cents.
For Cedar Poles 46 feet and over in length with not
greater than a nine inch top diameter ....... Cents.
For Douglas Fir Piling with not greater than an
18 inch butt diameter .............. Cents.
(b) For each of the three year periods of the contract term beginning
April 1, 1936; April 1, 1939; April 1, 1942; April 1, 1945; April 1,
1948 and April 1, 1951, such prices for each species as shall be fixed
by the Commissioner of Indian Affairs in the manner hereinafter
described.
The purchaser further agrees that within two months from the date of
approval of this contract he will enter into approved separate contracts
with such Indians holding trust patented allotments within the above
defined tract as desire to sell their timber and that he will pay to the
Superintendent in trust for such Indians the full value of the allotted
timber covered by such contracts at the prices stipulated for unallotted
timber and subject to the same regulations, restrictions, and provisions
as to periodic increase in price, and he also agrees that within thirty
days of the approval of the contract on any allotment he will pay 10
percent of the estimated value of the timber thereon as an advance
payment, and further that within three and six years, respectively, from
the approval of the contract on any allotment, he will make two
additional 10 percent payments of the estimated value, and further that
within nin years from the approval of the contract on any allotment he
will pay an additional 20 percent of the estimated value of the timber
thereon.
The purchaser agrees that prior to the time when the stumpage value
of the timber cut from both allotted and unallotted lands shall exceed
the cash deposit of Twenty Thousand Dollars ($20,000.00) submitted with
his proposal to purchase the timber, he will make another cash deposit
of not less than Twenty Thousand Dollars ($20,000.00) and subsequent
payments of Twenty Thousand ($20,000.00) at such times as may be
necessary to insure that the stumpage value of the timber cut and not
paid for shall not exceed the cash deposit then in the hands of the
Superintendent.
The purchaser further agrees that he will, unless relieved by the
Commissioner of Indian Affairs, cut and remove from some portion of the
sale area, including allotments, at least five million feet, board
measure, log scale, prior to March 31, 1933, and not less than
twenty-five million feet during each twelve months thereafter until the
contract is completed. The purchaser further agrees that he will remove
and pay for, as merchantable timber, pieces twelve feet and longer, will
utilize the trees to a diameter of twelve inches in the tops where
straight and sound, and will pay for all logs on the basis of a scale
recognizing thirty-two feet as the maximum scaling length of a single
log; that all timber will be considered merchantable as provided for in
the attached regulations, except that Hemlock and Amabilis Fir must be
one-half or more sound; and that he will conform with all requirements
of the Indian Service General Timber Sale Regulations, approved April
10, 1920, which are attached hereto and made a part of this contract.
For purposes of stumpage price readjustment by the Commissioner of
Indian Affairs at the close of the first period of the contract as
specified above, it is hereby stipulated by the Superintendent and the
purchaser that the average value of the following standard log grades as
recognized generally in Grays Harbor markets for the three-year period
ending January 1, 1929, have been as follows: TABLE OMITTED SEE
ORIGINAL
In determining the stumpage rates to be designated for all timber
scaled during the three-year period, beginning April 1, 1933, the
average value of logs at mills operating in Grays Harbor during the
three years directly preceding January 1, 1933, will be compared with
the values of logs as stipulated in the preceding paragraph as basis
values, and the cost of logging operations during the said three years
will be compared with the cost of such operations during the three-year
period directly preceding January 1, 1929, for the purpose of
ascertaining, so far as is practicable, whether there has been generally
in the logging industry in the specified region an increase in the
margin of profit on logging operations during the three-year period
directly preceding January 1, 1933.
Any advance in stumpage rates prescribed by the Commissioner for the
three-year period beginning April 1, 1933, shall not exceed 50 percent
of the difference between the average value of logs of that species at
mills as stipulated above and that for the same species during the three
years directly preceding January 1, 1933. And further, the Commissioner
of Indian Affairs shall have the right, on dates set for readjustment of
the saw timber stumpage prices, to readjust the stumpage prices to be
paid for Cedar Poles and Douglas Fir Piling and to increase the stumpage
on Cedar Poles not more than one-half cent per linear foot, and to
increase the stumpage price on Douglas Fir Piling not more than
one-fourth cent per linear foot. In the discretion of the Commissioner,
a reduction in the stumpage price of any species may subsequently be
made to correct any error, or to afford the purchaser relief from a
market depression that deprives the purchaser of a substantial margin of
profit; PROVIDED, that the stumpage price of no species will ever be
reduced below the rate bid for the initial period of the contract.
For the periods of the contract beginning April 1, 1936, April 1,
1939, April 1, 1942, April 1, 1945, April 1, 1948, and April 1, 1951, a
readjustment of stumpage prices may be made in the same manner as for
the period beginning April 1, 1933, except that the prices determined
and used for any three-year period will be considered as the stipulated
prices that are to be compared with the average prices obtained during
the succeeding three-year period.
Notice of the new schedule of prices shall be given the purchaser by
letter not later than the first day of March in the years 1933, 1936,
1939, 1942, 1945, 1948, and 1951. Although the determination of the new
rates shall lie wholly within the discretion of the Commissioner of
Indian Affairs, a hearing will be afforded upon written request
presented at least fifteen days before the date upon which the new
stumpage rates are to become effective for any period.
The burning of slashings on restricted areas for the protection of
logging camps, bridges, and other structures or equipment will be
allowed under written permits from the forest officer in charge and
under his supervision, and the Commissioner of Indian Affairs may, in
his discretion, require the purchaser to burn the slash on all parts of
the sale area, both that already on the ground and that resulting from
logging operations, at such times and in such manner as the officer in
charge may direct. No slash shall be burned during the period from May
1 to September 30 without the written consent of the officer in charge.
Such fire lines as are necessary for the safe burning of all slash shall
be cleared by the purchaser for a width of not to exceed eight feet, and
when necessary a strip of mineral earth three feet in width will be
exposed in the fire line parallel to its sides.
The following provisions supercede Paragraph 30 of the General Timber
Sale Regulations. During the period from May 1 to September 30, and at
such other times as the officer in charge may prescribe.
1. All locomotives and locomotive cranes will be equipped with
modern spark arresters acceptable to the officer in charge, and will
also be equipped with a steam force pump of not less than one inch
discharge, two hundred feet of serviceable hose, two shovels, two axes,
one mattock, two twelve-quart pails, and a constant supply of not less
than twelve barrels of water.
2. Oil burning logging machines will be equipped with modern spark
arresters acceptable to the officer in charge, a suitable power pump
with not less than two hundred feet of serviceable hose, three shovels,
two axes, one mattock, two twelve quart pails, one hand force pump, and
two fifty-gallon water barrels constantly filled with water.
3. Gasoline or other internal combustion logging machines will be
equipped with a modern exhaust screen acceptable to the officer in
charge, one hand force pump or chemical fire extinguisher, two shovels,
two axes, one mattock, two twelve-quart pails, and one fifty-gallon
water barrel constantly filled with water.
4. Gasoline or other internal combustion water pumps will be
equipped with a modern exhaust screen acceptable to the officer in
charge.
5. Gasoline or other power speeders will be equipped with one hand
force pump, one axe, one shovel and one mattock.
All of the above equipment, excepting the arresters and screens which
will be in constant use during the fire season, shall be kept in
serviceable condition and ready for instant use during the fire season.
The tools such as axes, shovels, etc., shall be kept in special tool
boxes plainly marked "FOR FIRE ONLY" and shall not be used except in
case of fire.
Coal or wood burning machines of any nature will be allowed only upon
the written consent of the officer in charge, and will be equipped with
such tools and appliances during the fire season as he may prescribe.
Material unmerchantable, under the provisions of this contract and
the attached General Timber Sale Regulations, for saw logs, may be
utilized for pulp wood by the purchaser under regulations to be
prescribed by the Commissioner of Indian Affairs, PROVIDED, that the
stumpage price per cord of such material shall not exceed one-fourth of
the rate paid per thousand feet log scale for Hemlock and Amabilis or
White Fir, or one-eighth of the rate paid per thousand feet log scale
for other species.
If the purchaser of this unit shall be the purchaser of other units
of timber on the Quinaielt Indian Reservation, logging performed by him
on his other logging units beyond the minimum amount required annually
thereon will be accepted as performance on this contract during the
first four years of this contract, provided he completes this contract
within the period named, but subject to the provisions of Paragraph 9 of
the General Timber Sale Regulations; and the initial deposit of
$20,000.00 shall not be credited against the cutting of timber on other
units. The term of the contract may be extended on such conditions as
the Commissioner of Indian Affairs may impose.
It is further understood and agreed that this contract shall be null
and void and of no effect until approved by the Secretary of the
Interior, and until the latter shall approve a bond of the purchaser in
the penal sum of Fifty Thousand Dollars ($50,000.00) conditioned on the
faithful performance of all of the terms of this contract and the
regulations attached hereunto.
Signed and sealed in quintuplicate this ... day of ..., 1929.
WITNESSES:
Purchaser
Superintendent
The above contract approved this ... day ..., 1929.
Secretary.
Sealed bids in duplicate, marked outside "Bid Raft River Unit", and
addressed to the Superintendent, Taholah Indian Agency, Hoquiam,
Washington, will be received until 12 o'Clock noon, Pacific time,
.........., 1929, for the purchase of the merchantable timber on a tract
in Townships 21, 22, 23, and 24 North, Range 12 West, Williamette
Meridian, in the Quinaielt Indian Reservation. The unit includes about
31,700 acres with a total stand of approximately 481,000,000 feet, of
which about 350,000,000 feet stands on about 15,000 acres of allotted
land, as to which separate contracts with the Indian owners are
authorized and may probably be made. The sale embraces approximately
97,000,000 feet of Hemlock; 284,000,000 feet of Cedar; 32,000,000 feet
of Spruce; 1,000,000 feet of Douglas Fir; 59,000,000 feet of Amabilis
Fir; 8,000,000 feet of White Pine; 3,000,000 linear feet of Cedar
Poles; and an unestimated amount of Douglas Fir Piling. Each bid must
state the price per thousand feet Scribner Decimal C Log Sale that will
be paid for timber cut and scaled prior to April 1, 1933. Prices
subsequent to that date are to be fixed by the Commissioner of Indian
Affairs by three year periods. No bid for the first period will be
considered of less than the following rates per thousand feet: Two
dollars and Fifty cents ($2.50) for live and dead Cedar, Spruce, Douglas
Fir and White Pine; One Dollar ($1.00) for Hemlock, Amabilis Fir and
other species; and per linear foot; for Cedar Poles 20 feet and under
in length with not greater than a 6 inch top diameter, one half cent
($.005); for Cedar Poles 21 to 45 feet in length with not greater than
a 9 inch top diameter one and one quarter cents ($.0125); for Cedar
Poles 46 feet and over in length with not greater than a 9 inch top
diameter, one and one half cents ($.015); and for Douglas Fir Piling
with not greater than an 18 inch butt diameter, one half cent ($.005).
Each bid must be accompanied by a certified check on a solvent National
Bank in favor of the Superintendent of the Taholah Indian Agency in the
amount of $20,000.00. The deposit will be returned to unsuccessful
bidders, applied as part of the purchase price of the successful bidder,
or retained as liquidated damages if the successful bidder shall not
execute contract and furnish satisfactory bond for $50,000 within 60
days of the acceptance of his bid. At least 5,000,000 feet, board
measure, log scale, must be cut and removed from some portion of the
sale area prior to March 31, 1933, and not less than 25,000,000 feet
during each twelve months thereafter until the contract is completed.
All timber covered by the contract must be cut and removed prior to
March 31, 1952. The right to waive technical defects and to reject any
or all bids is reserved. For copies of the contract and regulations,
topographic and stand maps of the sale area, blanks for the submission
of bids and other information, apply to the Superintendent of the
Taholah Indian Agency, Hoquiam, Washington.
Washington, D. C., ......, 1929.
Commissioner
RAFT RIVER UNIT:
THIS AGREEMENT made and entered into at the Taholah Indian Agency,
Hoquiam Washington, this ... day of ..., 1929, under authority of the
act of Congress of June 25, 1910 (36 Stat. L. 855-857), between the
Superintendent of the Taholah Indian Agency, hereinafter called the
Superintendent, for an in behalf of the Quinaielt Tribe of Indians,
party of the first part, and ...... of ......, party of the second part,
hereinafter called the purchaser:
WITNESSETH: that the Superintendent, in consideration of the
agreements by the purchaser, agrees to see to the purchaser upon the
terms and conditions herein stated and the General Timber Sale
Regulations hereto attached and made a part of this contract, all the
merchantable dead timber, standing or fallen, and all the merchantable
live timber marked or otherwise designated by the officer in charge for
selective logging as required by the attached General Timber Sale
Regulations, comprising trees fourteen inches and larger in diameter at
a point four and one half feet from the ground, estimated to be
131,000,000 feet on unallotted land within a tract having a total
estimated stand as follows:
Hemlock .......... 97,000,000 feet B. M.
Cedar ........... 284,000,000 feet B. M.
Spruce ........... 32,000,000 feet B. M.
Douglas Fir ....... 1,000,000 feet B. M.
Amabilis Fir ..... 53,000,000 feet B. M.
White Pine ........ 8,000,000 feet B. M.
Total ........... 481,000,000 feet B. M.
Cedar Poles ....... 3,000,000 linear feet
Area ........... about 31,700 acres. and an unestimated amount of
Douglas Fir Piling, all located on allotted and unalloted lands within a
tract of about 31,700 acres, known as the Raft River Logging Unit, lying
in the west central portion of the Quinaielt Indian Reservation and
described as follows:
All of Township 24 North Tange 12 West within the Reservation execpt
Lots 13 and 14 Section 29 and Lots 3, 5, and 6 of Section 31. Section
3, Section 4 except Lots 1, 7, and 8; Sections 5 and 6; Section 7
except the S/2 NW/4; Sections 8, 9, 10, 15, 16, 17, 18, 19, 20, 21, 22,
27, 28, 29, 30, 31, 32, 33, 34, in Township 23 North, Tange 1 West.
Sections 3, 4, 5, 8, 9, 10, 15, 16, 17, 20, 21, 22, 27, 28, 29, all of
Section 32 North of the Quinaielt River, all of Section 33 North of the
Quinaielt River except the W/2 SE/4; all of Section 34 North and West
of the Quinaielt River except the SESW, all in Township 22 North, Range
12, West. All of Sections 3-4 and 5 lying North of the Quinaielt River
in Township 21 North, Range 12 West, excepting areas of swamp and open
meadow land, and land so poorly timbered that the Commission of Indian
Affairs shall consider logging thereon to be impracticable.
350,000,000 feet of this timber is on an area of about 15,120 acres
of allotted land, and the Superintendent authorizes the purchaser to
enter into separate contracts with Indians holding trust patented
allotments within the limits of the sale area above defined for the
purchase of their timber, subject to Indian Service regulations, which
require an approval of each individual contract.
FOR AND IN CONSIDERATION of the agreements by the Superintendent, the
purchaser agrees that prior to March 31, 1952, he will cut and remove
all the timber covered by this contract, and will pay to the
Superintendent for the use and benefit of the Quinaielt tribe of
Indians, the full value of the said timber, as shall be determined by
the actual scale of the timber at fixed rates per thousand feet, board
measure, Scribner Decimal C Log Sale, which rates for specified periods
of the contract shall be as follows:
(a) For the period ending March 31, 1933:
For live and dead White Pine ..... Dollars and ... Cents
For live and dead Cedar ........... Dollars and ... Cents
For live and dead Spruce .......... Dollars and ... Cents
For live and dead Douglas Fir .... Dollars and ... Cents
For live and dead Amabilis Fir ... Dollars and ... Cents
For live and dead Hemlock and
......... other species ............. Dollars and ... Cents
and per linear foot:
For Cedar Poles 20 feet and under in length, with not
greater than a six inch top diameter ...... Cents
For Cedar Poles 21 to 45 feet in length with not
greater than a nine inch top diameter ..... Cents
For Cedar Poles 46 feet and over in length with not
greater than a nine inch top diameter ..... Cents
For Douglas Fir Piling with not greater than an
18 inch butt diameter ............. Cents term beginning April 1,
1936, April 1, 1939, April 1, 1942, April 1, 1945, April 1, 1948, April
1, 1951, such prices for each species as shall be fixed by the
Commissioner of Indian Affairs in the manner hereinafter described.
The purchaser further agrees that within two months from the date of
approval of this contract he will enter into separate contracts with
such Indians holding trust patented allotments within the above defined
tract as desire to sell their timber and that he will pay to the
Superintendent in trust for such Indians the full value of the allotted
timber covered by such contracts at the prices stipulated for unallotted
timber and subject to the same regulations, restrictions, and provisions
as to periodic increase in price, and he also agrees that within thirty
days of the approval of the contract on any allotment he will pay 10
percent of the estimated value of the timber thereon as an advance
payment, and further that within three and six years, respectively, from
the approval of the contract on any allotment, he will make two
additional 10 percent payments of the estimated value, and further that
within nine years from the approval of the contract on any allotment he
will pay an additional 20 percent of the estimated value of the timber
thereon.
The purchaser agrees that prior to the time when the stumpage value
of the timber cut from both allotted and unallotted lands shall exceed
the cash deposit of twenty thousand dollars ($20,000.00) submitted with
his proposal to purchase the timber, he will make another cash deposit
of not less than twenty thousand dollars ($20,000.00) and subsequent
payments of twenty thousand dollars ($20,000.00) at such times as may be
necessary to insure that the stumpage value of the timber cut and not
paid for shall not exceed the cash deposit then in the hands of the
Superintendent.
The purchaser further agrees that he will, unless relieved by the
Commissioner of Indian Affairs, cut and remove from some portion of the
sale area, including allotments, at least five million feet, board
measure, log scale, prior to March 31, 1933, and not less than
twenty-five million feet during each twelve months thereafter until the
contract is completed. The purchaser further agrees that he will remove
and pay for, as merchantable timber, pieces twelve feet and longer, will
utilize the trees to a diameter of twelve inches in the tops where
straight and sound, and will pay for all logs on the basis of a scale
recognizing thirty-two feet as the maximum scaling length of a single
log; that all timber will be considered merchantable as provided for in
the attached regulations, except that Hemlock and Amabilis Fir must be
one-half or more sound; and that he will conform with all requirements
of the Indian Service General Timber Sale Regulations, approved April
10, 1920, which are attached hereto and made a part of this contract.
For purposes of stumpage price readjustment by the Commissioner of
Indian Affairs at the close of the first period of the contract as
specified above, it is hereby stipulated by the Superintendent and the
purchaser that the average value of the following standard log grades as
recognized generally in Grays Harbor markets for the three year period
ending January 1, 1929, have been as follows: TABLE OMITTED SEE
ORIGINAL
In determining the stumpage rates to be designated for all timber
scaled during the three year period, beginning April 1, 1933, the
average value of logs at mills operating in Grays Harbor during the
three years directly preceding January 1, 1933, will be compared with
the values of logs as stipulated in the preceding paragraph as basic
values, and the cost of logging operations during the three year period
directly preceding January 1, 1929, for the purpose of ascertaining, so
far as is practicable, whether there has been generally in the logging
industry in the specified region an increase in the margin of profit on
logging operations during the three year period directly preceding
January 1, 1933.
Any advance in stumpage rates prescribed by the Commissioner for the
three year period beginning April 1, 1933, shall not exceed 50 percent
of the difference between the average value of logs of that species at
mills as stipulated above and that for the same species during the three
years directly preceding January 1, 1933. And further, the Commissioner
of Indian Affairs shall have the right, on dates set for readjustment of
the saw timber stumpage prices, to readjust the stumpage prices to be
paid for Cedar Poles and Douglas Fir Piling and to increase the stumpage
on Cedar Poles not more than one-half cent per linear foot, and to
increase the stumpage price on Douglas Fir Piling not more than
one-fourth cent per linear foot. In the discretion of the Commissioner,
a reduction in the stumpage price of any species may subsequently be
made to correct any error, or to afford the purchaser relief from a
market depression that deprives the purchaser of a substantial margin of
profit; PROVIDED, that the stumpage price of no species will ever be
reduced below the rate bid for the initial period of the contract.
For the periods of the contract beginning April 1, 1936, April 1,
1939, April 1, 1942, April 1, 1945, April 1, 1948, and April 1, 1951, a
readjustment of stumpage prices may be made in the same manner as for
the period beginning April 1, 1933, except that the prices determined
and used for any three-year period will be considered as the stipulated
prices that are to be compared with the average prices obtained during
the succeeding three-year period.
Notice of the new schedule of prices shall be given the purchaser by
letter not later than the first day of March in the years 1933, 1936,
1939, 1942, 1945, 1948, and 1951. Although the determination of the new
rates shall lie wholly within the discretion of the Commissioner of
Indian Affairs, a hearing will be afforded upon written request
presented at least fifteen days before the date upon which the new
stumpage rates are to become effective for any period.
The burning of slashings on restricted areas for the protection of
logging camps, bridges, and other structures or equipment will be
allowed under written permits from the forest officer in charge and
under his supervision, and the Commissioner of Indian Affairs may, in
his discretion, require the purchaser to burn the slash on all parts of
the sale area, both that already on the ground that that resulting from
logging operations, at such times and in such manner as the officer in
charge may direct. No slash shall be burned during the period from May
1 to Spetember 30 without the written consent of the officer in charge.
Such fire lines as are necessary for the safe burning of all slash shall
be cleared by the purchaser for a width of not to exceed eight feet, and
when necessary a strip of mineral earth three feet in width will be
exposed in the fire line parallel to its sides.
The following provisions supercede Paragraph 30 of the General Timber
Sale Regulations. During the period from May 1 to September 30, and at
such other times as the officer in charge may prescribe,
1. All locomotives and locomotive cranes will be equipped with
modern spark arresters acceptable to the officer in charge, and will
also be equipped with a steam force pump of not less than one inch
discharge, two hundred feet of serviceable hose, two shovels, two axes,
one mattock, two twelve-quart pails, and a constant supply of not less
than twelve barrels of water.
2. Oil burning logging machines will be equipped with modern spark
arresters acceptable to the officer in charge, a suitable power pump
with not less than two hundred feet of serviceable hose, three shovels,
two axes, one mattock, two twelve-quart pails, one hand force pump, and
two fifty-gallon water barrels constantly filled with water.
3. Gasoline or other internal combustion logging machines will be
equipped with a modern exhaust screen acceptable to the officer in
charge, one hand force pump or chemical fire extinguisher, two shovels,
two axes, one mattock, two twelve-quart pails, and one fifty-gallon
water barrel constantly filled with water.
4. Gasoline or other internal combustion water pumps will be
equipped with a modern exhaust screen acceptable to the officer in
charge.
5. Gasoline or other power speeders will be equipped with one hand
force pump, one axe, one shovel and one mattock.
All of the above equipment, excepting the arresters and screens which
will be in constant use during the fire season, shall be kept in
serviceable condition and ready for instant use during the fire season.
The tools such as axes, shovels, etc., shall be kept in special tool
boxes plainly marked "FOR FIRE ONLY" and shall not be used except in
case of fire.
Coal or wood burning machines of any nature will be allowed only upon
the written consent of the officer in charge, and will be equipped with
such tools and appliances during the fire season as he may prescribe.
Material unmerchantable, under the provisions of this contract and
the attached General Timber Sale Regulations, for saw logs, may be
utilized for pulp wood by the purchaser under regulations to be
prescribed by the Commissioner of Indian Affairs, PROVIDED, that the
stumpage prices per cord of such material shall not exceed one-fourth of
the rate paid per thousand feet log scale for Hemlock and Amabilis or
White Fir, or one-eighth of the rate paid per thousand feet log scale
for other species.
If the purchaser of this unit shall be the purchaser of other units
of timber on the Quinaielt Indian Reservation, logging performed by him
on his other logging units beyond the minimum amount required annually
thereon will be accepted as performance on this contract during the
first four years of this contract, provided he completes this contract
within the period named, but subject to the provisions of Paragraph 9 of
the General Timber Sale Regulations; and the initial deposit of
$20,000.00 shall not be credited against the cutting of timber on other
units. The term of the contract may be extended on such conditions as
the Commissioner of Indian Affairs may impose.
It is further understood and agreed that this contract shall be null
and void and of no effect until approved by the Secretary of the
Interior, and until the latter shall approve a bond of the purchaser in
the penal sum of Fifty Thousand Dollars ($50,000.00) conditioned on the
faithful performance of all of the terms of this contract and the
regulations attached hereunto.
Signed and sealed in quintuplicate this ... day of ..., 1929.
WITNESSES:
Purchaser.
Superintendent.
The above contract approved this ... day of ..., 1929.
Secretary
Sealed bids in duplicate, marked outside "Bid Cape Elizabeth Unit"
and addressed to the Superintendent, Taholah Indian School, Hoquiam,
Washington, will be received until 12 o'clock noon, Pacific time, .....,
1929, for the purchase of the merchantable timber on a tract in
Townships 23 and 24 North, Range 13 West; Township 22 North, Ranges 12
and 13 West; Township 21 North, Ranges 12 and and 13 West, Williamette
Meridian, in the Quinaielt Indian Reservation. The unit includes about
33,000 acres with a total stand of approximately 450,000,000 feet, of
which about 208,000,000 feet stands on about 11,200 acres of allotted
land, as to which separate contracts with the Indian owners are
authorized and may probably be made. The sale embraces approximately
60,000,000 feet of Hemlock; 287,000,000 feet of Cedar; 41,000,000 feet
of Spruce; 60,000,000 feet of Amabilis Fir; 2,000,000 feet of White
Pine; 5,000,000 linear feet of Cedar Poles; and an unestimated amount
of Douglas Fir Piling. Each bid must state the price per thousand feet
Scribner Decimal C Log Scale that will be paid for timber cut and scaled
prior to April 1, 1933. Prices subsequent to that date are to be fixed
by the Comissioner of Indian Affairs by three year periods. No bid for
the first period will be considered of less than the following rates per
thousand feet: Two Dollars and Fifty Cents ($2.50) for live and dead
Cedar, Spruce, and White Pine; One Dollar ($1.00) for Hemlock, Amabilis
Fir and other species and per linear foot; for Cedar Poles 20 feet and
under in length with not greater than a six inch top diameter, one half
cent ($.005); For Cedar Poles 21 to 45 feet in length with not greater
than a 9 inch top diameter, one and one quarter cents ($.0125); for
Cedar Poles 46 feet and and over in length and with not greater than a 9
inch top diameter, one and one half cents ($.015); and for Douglas Fir
Piling with not greater than an 18 in h butt diameter, one half cent
($.005). Each bid must be accompanied by a certified check on a solvent
National Bank in favor of the Superintendent of the Taholah Indian
Agency in the amount of $20,000.00. The deposit will be returned to
unsuccessful bidders, applied as part of the purchase price of
successful bidder, or retained as liquidated damages if the successful
bidder shall not execute contract and furnish satisfactory bond for
$50,000 within 60 days of the acceptance of his bid. At least 5,000,000
feet, board measure, log scale, must be cut and removed from some
portion of the sale area prior to March 31, 1933, and not less than
25,000,000 feet during each twelve months thereafter until the contract
is completed. All other timber covered by the contract must be cut and
removed prior to March 31, 1952. The right to waive technical defects
and to reject any or all bids is reserved. For copies of the contract
and regulations, topographic and stand maps of the sale area, blanks for
the submisston of bids and other information, apply to the
Superintendent of thp Taholah Indian Agency, Hoquiam, Washington.
Washington, D. C., ......, 1929
Commissioner
CAPE ELIZABETH UNIT:
THIS AGREEMENT made and entered into at the Taholah Indian Agency,
Hoquiam, Wahsington, this ... day of ..., 1929, under authority of the
act of Congress of June 25, 1910, (36 Stat. L., 855-857), between the
Superintendent of the Taholah Indian Agency, hereinafter called the
Superintendent, for and in behalf of the Quinaielt Tribe of Indians,
party of the first part, and ...... of ......, party of the second part,
hereinafter called the purchaser:
WITNESSETH, that the Superintendent, in consideration of the
agreements by the purchaser, agrees to see to the purchaser upon the
terms and conditions herein stated and the General Timber Regulations
hereto attached and made a part of this contract, all the merchantable
dead timber, standing or fallen, and all the merchantable live timber
marked or otherwise designated by the officer in charge for selective
logging as required by the attached General Timber Sale Regulations,
comprising trees fourteen inches and larger in diameter at a point four
and one half feet from the ground, estimated to be 242,000,000 feet on
unallotted land within a tract having a total estimated stand as
follows:
Hemlock .......... 60,000,000 feet B. M.
Cedar ........... 287,000,000 feet B. M.
Spruce ........... 41,000,000 feet B. M.
Amabilis Fir ..... 60,000,000 feet B. M.
White Pine ........ 2,000,000 feet B. M.
Total ........... 450,000,000 feet B. M.
Cedar Poles ....... 5,000,000 feet B. M.
Area ........... About 33,000 acres and an unestimated amount of
Douglas Fir Piling, all located on allotted and unallotted lands within
a tract of about 35,000 acres, known as the Cape Elizabeth Logging Unit.
lying in the western portion of the Quinaielt Indian Reservation and
described as follows:
All of Township 24 North, Range 13 West within the Reservation except
Lots 6 and 7 of section 27 and Lots 6 and 7 of Section 35. All of
Township 23 North, Range 13 West except Lots 18 and 23 of Section 3, Lot
2 of Section 4; W/2 NE/4 of Section 12, S/2 SW/4 and the W/2 SE/4 of
Section 23; the W/2 NE/4 of Section 26; and the W/2 SE/4 and the
W/2SW/4 of Section 27. All of Township 22 North, Range 13 West except
the Cape Elizabeth Light House Reserve; the Indian cemetery in Section
35; the NESW, Lot 3, N/2 SE/4, and the SESE of Section 36. Sections 6,
7, 18, 19, 30, and 31 in Township 22 North, Range 12 West. That part of
Section 6, Twp 21 North, Range 12 West lying North of the Quinaielt
River. That part of Section 1, Twp 21 North, Range 13 West lying North
of the Quinaielt river, excepting areas of swamp and open meadow land,
and land so poorly timbered that the Commissioner of Indian Affairs
shall consider logging thereon to be impracticable.
208,000,000 feet of this timber is on an area of about 11,200 acres
of allotted land, and the Superintendent authorizes the purchaser to
enter into separate contracts with indians holding trust patented
allotments within the limits of the sale area above defined for the
purchase of their timber, subject to Indian Service regulations, which
require an approval of each individual contract.
FOR AND IN CONSIDERATION of the agreements by the Superintendent, the
purchaser agrees that prior to March 31, 1952, he will cut and remove
all the timber overed by this contract, and will pay to the
Superintendent for the use and benefit of the Quinaielt tribe of
Indians, the full value of the said timber, as shall be determined by
the actual scale of the timber at fixed rates per thousand feet, board
measure, Scribner Decimal C Log Scale, which rates for specified periods
of the contract shall be as follows:
(a) For the period ending March 31, 1933:
For live and dead Cedar ........... Dollars and ... Cents
For live and dead Spruce .......... Dollars and ... Cents
For live and dead White Pine ..... Dollars and ... Cents
For live and dead Amabilis Fir ... Dollars and ... Cents
For live and dead Hemlock and
.......... other species ............ Dollars and ... Cents
and per linear foot:
For Cedar Poles 20 feet and under in length with not greater than a 6
inch top diameter ..... Cents
For Cedar Poles 21 to 46 feet in length with not greater
than a 9 inch top diameter ............. Cents
For Cedar Poles 46 feet and over in length with not greater than a 9
inch top diameter ...... Cents
For Douglas Fir Pilings with not greater than an
18 inch butt diameter ........ Cents
(b) For each of the three year periods of the contract term beginn;ng
April 1, 1936; April 1, 1939; April 1, 1942; April 1, 1945; April 1,
1948; April 1, 1951; such prices for each species as shall be fixed by
the Commissioner of Indian Affairs in the manner hereinafter described.
The purchaser further agrees that within two months from the date of
approval of this contract he will enter into approved separate contracts
with such Indian" holding trust patented allotments within the above
defined tract as desire to sell their timber and that he will pay to the
Superintendent in trust for such Indians the full value of the allotted
timber covered by such contracts at the prices stipulated for unallotted
timber and subject to the same regulations, restrictions, and provisions
as to periodic increase in price, and he also agrees that within thirty
days of the approval of the contract on any allotment he will pay 10
percent of the estimated value of the timber thereon as an advance
payment, and further that within three and six years, respectively, from
the approval of the contract on any allotment, he will make two
additional 10 percent payments of the estimated value, and further than
within nine years from the approval of the contract on any allotment he
will pay an additional 20 percent of the estimated value of the timber
thereon.
The purchaser agrees that prior to the time when the stumpage value
of the timber cut from both allotted and unallotted lands shall exceed
the cash deposit of twenty thousand dollars ($20,000.00) submitted with
his proposal to purchase the timber, he wil make another cash deposit of
not less than twenty thousand dollars ($20,000.00) and subsequent
payments of twenty thousand dollars ($20,000.00) at such timas as may be
necessary to insure that the stumpage value of the timber cut and not
paid for shall not exceed the cash deposit then in the hands of the
Superintendent.
The purchaser further agrees that he will, unless relieved by the
Commissioner of Indian Affairs, cut and remove from some portion of the
sale area, including allotments, at least five million feet, board
measure, log scale, prtor to March 31, 1933, and not less than
twenty-five million feet during each twelve months thereafter until the
contract is completed. The purchaser further agrees that he will remove
and pay for, as merchantable timber, pieces twelve feet and longer, will
utilize the trees to a diameter of twelve inches in the tops where
straight and sound, and will pay for all logs on the basis of a scale
recognizing thirty-two feet as the maximum scaling length of a single
log; that all timber will be considered merchantable as provided for in
the attached regulations, except that Hemlock and Amabilis Fir must be
one-half or more sound; and that he will conform with all requirements
of the Indian Service General Timber Sale Regulations, approved April
10, 1920, which are attached hereto and made a part of this contract.
For purposes of stumpage price readjustment by the Commissioner of
Indian Affairs at the close of the first period of the contract as
specified above, it is hereby stipulated by the Superintendent and the
purchaser that the average vaue of the following standard log grades as
recognized generally in Grays Harbor markets for the three-year period
ending January 1, 1929, have been as follows: TABL OMITTED SEE ORIGINAL
In determining the stumpage rates to be designated for all timber
scaled during the three year period, beginning April 1, 1933, the
average value of logs at mills operating in Grays Harbor during the
three years directly preceding January 1, 1933, will be compared with
the values of logs as stipulated in the preceding paragraph as basic
values, and the cost of logging operations during the said three years
will be compared with the cost of such operations during the three-year
period directly preceding January 1, 1929, for the purpose of
ascertaining, so far as is practicable, whether there has been generally
in the logging industry in the specified region an increase in the
margin of profit on logging operations during the three-year period
directly preceding January 1, 1933.
Any advance in stumpage rates prescribed by the Commissioner for the
three-year period beginning April 1, 1933, shall not exceed 50 percent
of the difference between the average value of logs of that species at
mills as stipulated above and that for the same periods during the three
years directly preceding January 1, 1933. And further, the Commissioner
of Indian Affairs shall have the right, on dates set for readjustment of
the saw timber stumpage prices, to readjust the stumpage prices to be
paid for Cedar Poles and Douglas Fir Piling and to increase the stumpage
on Cedar Poles not more than one-half cent per linear foot, and to
increase the stumpage price on Douglas Fir Piling not more than
one-fourth cent per linear foot. In the discretion of the Commissioner,
a reduction in the stumpage price of any species may subsequently be
made to correct any error, or to afford the purchaser relief from a
market depression that deprives the purchaser of a substantial margin of
profit; PROVIDED, that the stumpage price of the species will ever be
reduced below the rate bid for the initial period of the contract.
For the periods of the contract beginning April 1, 1936, April 1,
1939, April 1, 1942, April 1, 1945, April 1, 1948, and April 1, 1951, a
readjustment of stumpage prices may be made in the same manner as for
the period beginning April 1, 1933, except that the prices determined
and used for any three-year period will be considered as the stipulated
prices that are to be compared with the average prices obtained during
the succeeding three-year period.
Notice of the new schedule of prices shall be given the purchaser by
letter not later than the first day of March in the years 1933, 1936,
1939, 1942, 1945, 1948, and 1951. Although the determination of the new
rates shall lie wholly within the discretion of the Commissioner of
Indian Affairs, a hearing will be afforded upon written request
presented at least fifteen days before the date upon which the new
stumpage rates are to become effective for any period.
The burning of slashings on restricted areas for the protection of
logging camps, bridges, and other structures or equipment will be
allowed under written permits from the forest officer in charge and
under his supervision, and the Commissioner of Indian Affairs may, in
his discretion, require the purchaser to burn the slash on all parts of
the sale area, both that already on the ground and that resulting from
logging operations, at such times and in such manner as the official in
charge may direct. No slash shall be burned during the period from May
1 to September 30 without the written consent of the officer in charge.
Such fire lines as are necessary for the safe burning of all slash shall
be cleared by the purchaser for a width of not to exceed eight feet, and
when necessary a strip of mineral earth three feet in width will be
exposed in the fire line parallel to its sides.
The following provisions supercede Paragraph 30 of the General Timber
Sale Regulations. During the period from May 1 to September 30, and at
such other times as the officer in charge may prescribe,
1. All locomotives and locomotive cranes will be equipped with
modern spark arresters acceptable to the officer in charge, and will
also be equipped with a steam force pump of not less than one inch
discharge, two hundred feet of serviceable hose, two shovels, two axes,
one mattock, two twelve-quart pails, and a constant supply of not less
than twelve barrels of water.
2. Oil 0urning logging machines will be equipped with modern spark
arresters acceptable to the officer in charge, a suitable power pump
with not less than two hundred feet of serviceable hose, three shovels,
two axes, one mattock, two twelve-quart pails, one hand force pump, and
two fifty-gallon water barrels constantly filled with water.
3. Gasoline or other internal combustion logging machines will be
equipped with a modern exhaust screen acceptable to the officer in
charge, one hand force pump or chemical fire extinguisher, two shovels,
two axes, one mattock, two twelve-quart pails, and one fifty-gallon
water barrel constantly filled with water.
4. Gasoline or other internal combustion water pumps will be
equipped with a modern exhaust screen acceptable to the officer in
charge.
5. Gasoline or other power speeders will be equipped with one hand
force pump, one axe, one shovel and one mattock.
All of the above equipment, excepting the arresters and screens which
will be in constant use during the fire season, shall be kept in
serviceable condition and ready for instant use during the fire season.
The tools such as axes, shovels, etc., shall be kept in special tool
boxes plainly marked "FOR FIRE ONLY" and shall not be used except in
case of fire.
Coal or wood burning machines of any nature will be allowed only upon
the written consent of the officer in charge, and will be equipped with
such tools and appliances during the fire season as he may prescribe.
Material unmerchantable, under the provisions of this contract and
the attached General Timber Sale Regulations, for saw logs, may be
utilized for pulp wood by the purchaser under regulations to be
prescribed by the Commissioner of Indian Affairs, PROVIDED, that the
stumpage price per cord of such material shall not exceed one-fourth of
the rate paid per thousand feet log scale for Hemlock and Amabilis or
White Fir, or one-eighth of the rate paid per thousand feet log scale
for other species.
If the purchaser of this unit shall be the purchaser of other units
of timber on the Quinaielt Indian Reservation, logging performed by him
on his other logging units beyond the minimum amount required annually
thereon will be accepted as performance on this contract during the
first four years of this contract, provided he completes this contract
within the period named, but subject to the provisions of Paragraph 9 of
the General Timber Sale Regulations; and the initial deposit of
$20,000.00 shall not be credited against the cutting of timber on other
units. The term of the contract may be extended on such conditions as
the Commissioner of Indian Affairs may impose.
It is further understood and agreed that this contract shall be null
and void and no effect until approved by the Secretary of the Interior,
and until the latter shall approve a bond of the purchaser in the penal
sum of Fifty Thousand Dollars ($50,000.00) conditioned on the faithful
performance of all of the terms of this contract and the regulations
attached hereunto.
Signed and sealed in quintuplicate this 1929.
WITNESSES:
Purchaser.
Superintendent
The above contract approved this---day of---, 1929.
Secretary.
HES-003-2016-2046
HES-003-2016-2046
IIA29.3
290000
CORRESPONDENCE
MUCK, LEE ; TAHOLAH INDIAN AGE
Forestry
34549-29
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
In accordance with instructions from your Office directing me to make
an investigation of the trial of the practice of scaling logs after the
cars have been loaded on the Quinaielt Indian Reservation, the following
report is respectfully submitted.
As reported to the Office under date of July 23rd., both verbal and
written instructions to the Rangers in charge of the several logging
operations to give the proposed system of scaling a thorough trial were
given by local officials prior to the receipt of Indian Office letter of
July 19th.
Proceeding under these instructions, the proposed system of scaling
(on cars after the logs were loaded) was given a thorough trial at all
operations, and prior to my return to this reservation, the proposed
system was entirely abandoned by the several Rangers in favor of the
previous method, that of scaling the logs as they are loaded, for the
following reasons:
1. While the system of scaling the cars after they have been loaded
can be used to advantage for certain periods of time, yet fully 60% of
the cars which are loaded cannot be accurately scaled after they are
loaded. This is due to the large number of short chunks which are
loaded, especially in Cedar, but also holds true, to a certain extent,
in logs of all species. Several of the men who were in favor of scaling
the cars after they have been loaded expressed themselves as being
convinced, after they had tried the proposed system, that the new system
was impracticable and that they preferred to scale the logs the old way.
2. If the system of scaling is changed, the system of branding must
also be changed, for more branding in the woods must be done. Not only
is this true, but when logging in short chunks the brands are much
harder to get when the cars are scaled after they have been loaded. The
crediting of logs to the proper description of land, through noting all
the brands, is as important as the actual scaling.
3. It frequently happens that loaded cars are removed by switching
engines immediately after they are loaded, and a scaler could not scale
the cars after they are loaded without holding up the switching of the
cars, which in some cases would interfere with the operations of the
companies.
4. All the men feel that our scaling practice must be uniform
between the different camps on the reservation, and I personally feel
that such consistent practice should be followed.
I discussed this matter thoroughly with practically all the men on
the ground, and it is their unanimous opinion that the scaling can be
done more accurately and to greater advantage as the logs are loaded.
In my opinion herein lies the crux of the whole matter, and the wishes
of the men actually doing the work should be given first consideration
in the determination of the method to be adopted provided, of course,
the results obtained fully protect the interest of the Indians and are
also fair to the operators.
I found, upon my arrival at Hoquiam, that it was the plan to call
another meeting of the forestry employees responsible for the
supervision of the work and at that time request each employee to make a
report of the trial of the new scaling system which he made under
instructions from the Office. It is expected that this report will be
made promptly at the close of the forest fire season, however my
investigation leads me to believe that the new system, namely that of
scaling cars after they have been loaded, cannot be put into effect
without a loss of accuracy, and will entail a change in methods and an
additional personnel.
I have not lost sight of the fact that scaling on the Quinaielt
Reservation is a dangerous occupation, but any job in a logging camp in
the Pacific Northwest is more or less of a hazardous nature and entire
freedom from accidents cannot be expected under the circumstances.
Instructions have been issued to all scalers and Rangers working on the
Quinaielt Indian Reservation that when they consider a spar tree to be
unsafe that the scaler shall not scale on the landing but drop back and
scale the cars after they are loaded, holding up the switching if
necessary. These instructions have been in effect for a number of
years, and on several occasions have been followed.
There is attached to this report a copy of the branding report which
has been used on the Quinaielt for a number of years. This report is
not used generally in the Service, but was developed on the Quinaielt to
take care of the peculiarities of the local timber sales. There is also
attached a mimeographed report which the various Rangers are required to
submit for each landing before loading operations start. The Rangers
are required to imspect each landing before loading operations start to
make sure that proper arrangements have been made for the safety and
convenience of the scalers, and these reports are made a part of the
Agency records.
In conclusion, it is respectfully recommended that the Office, upon
receipt of reports from local forest officers above referred to, issue
instructions that the logs on the Quinaielt Indian Reservation be scaled
as they are loaded, except when in the judgment of the men on the ground
the spar tree is unsafe or some special hazard shall make the scaling of
cars after they are loaded advisable.
Very respectfully,
LEE MUCK
Forest Valuation Engineer
Tahola Indian Agency,
Hoquiam, Wash.
FORESTRY
BRANDING REPORT
DIAGRAM OMITTED SEE ORIGINAL
(Camp)
(Date)
Henry B. Steer
Supervisor of Forests
Indian Agency
Hoquiam, Washington
Dear Sir:
I have inspected the arrangements made for the safety and convenience
of scalers at Landing Number ___, as shown on branding reports
previously submitted, and find that suitable brow logs and/or runways
have been provided.
Remarks:
Very truly yours,
Forest Ranger
HES-003-2047-2052
HES-003-2047-2052
IIA29.2
COMM OF INDIAN AFF
290202
CORRESPONSPONDENCE
STEER, HENRY B ; TAHOLAH INDIAN AGE
Forestry
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
There is attached hereto a small scale map of the reservation showing
the location of the four concerns now operating in Indian timber on the
Quinaielt Indian Reservation and the boundaries of the four sale areas
which are now being recommended for sale. The units which have been
purchased by the four concerns now operating, namely the Ozette Railway
Company (Polson Logging Company), the Hobi Timber Company, The Aloha
Lumber Company, and the M. R. Smith Lumber and Shingle Company, are
outlined in colors. The proposed sales areas, namely the Lunch Creek
Unit, the Joe Creek Unit, the Raft River Unit, and the Cape Elizabeth
Unit, are outlined in black.
The following table gives the estimated stand of timber, in millions
of feet, on the proposed units; the number of trust patented allotments
included in each unit, and the acreage. TABLE OMITTED SEE ORIGINAL
Included with the proposed sale areas are thirty nine (39) allotments
granted as a result of suits brought in the United States District Court
at Tacoma, Washington. These allotments are not shown on the maps of
the sale areas which I have prepared. There is no information at this
Agency as to whether or not the Indian Office will appeal the decision
of the court in these cases, but in any event I do not believe the new
allottees will object to the sale of their timber and the inclusion of
the same in the proposed units.
While the present condition of the logging and lumber industry in
Grays Harbor is not especially in a favorable condition, yet it is
believed that these sale areas should be placed on the market,
substantially as recommended, for the following reasons:
1. The Hobi Timber Company, our largest operators, have less than
two years logging, at their present rate, in the Cook Creek Unit, and
are in the market for an additional large unit, or perhaps units. This
Company would seem to be the logical purchasers of the Joe Creek Unit,
and the contract and regulations for the proposed Lunch Creek Unit, as
well as the Raft River Unit, have been so drawn up that the Hobi Company
can comply with our regulations on any one, or all three of the Units
mentioned.
2. The Polson Logging Company has extensive holdings North of the
Quinaielt Reservation, and are interested to such an extent that I am
sure that they will bid on at least one, and possibly more of these
units through their subsidiary company namely the Ozette Railway
Company, the purchasers of the Quinaielt Lake Logging Unit.
3. The Aloha Lumber Company estimates that they have less than six
years logging South of the Quinaielt River in the present holdings, and
their management has expressed the wish that other timber might be
offered in order that they could plan their operations and purchase
equipment according to whether or not they would go North of the
Quinaielt River.
4. The M. R. Smith Lumber and Shingle Company estimate that they
have less than four years of logging South of the Quinaielt River in
their present holdings, and have also requested that additional timber
be placed on the market in order that they might plan their operations
in the same manner as the Aloha Company.
Thus all four of the concerns now operating on the Reservation are
keenly interested in additional units, and with the exception of the
Ozette Railway Company (Polson) the end of operations in their present
holdings is in sight and they naturally would like to plan their
operations according to whether they are to log other Indian timber at
the conclusion of their present operations or not.
The Quinaielt Indian Reservation is the topographic key to the vast
stands of timber on the Olympic Penninsula, at least as far as access to
the Penninsula from the South is concerned. There is no reason why this
situation should not act to the benefit of the Indians. This was one of
the reasons why we have obtained the stumpage prices for our timber
which we have in the past and now is an even better time to capitalize
the situation. The opening up of the Olympic Penninsula by a railroad
is a timely topic in Grays Harbor now. Much agitation for a common
carrier railroad is being carried on, in fact a bill to authorize the
Port of Grays Harbor to build such a road recently passed the State
Senate at Olympia. Our operators are keenly interested in extending
their logging railroads so that they can continue to build North of the
Reservation. The attitude of the Polson Logging Company is well known
to certain officials in the Indian Office, and we know that the other
three companies would like to keep on building to the North. In
outlining the proposed four sales of timber I have had this situation in
mind, and have blocked the units out and drawn up the regulations in
such a way as to encourage competition.
There are other reasons why I believe we should offer these units for
sale at this time.
1. Of the 703 trust allotments included in the proposed units, at
least six hundred are comparatively new allotments, having been made as
a result of the decision in the now famous Tommy Payne case.
Practically all of these new allottees are very anxious to dispose of
their timber, and while we should not be in too great a hurry to offer
additional sales of timber unless it is advantageous to do so, yet the
fact remains that many of these Indians will apply for fee patents the
granting of which will seriously effect the possibility of making
advantageous sales of timber at some future time and so depreciate the
value of the remaining Indian timber. In this connection the Office is
respectfully requested to refer to my letter of October 2, 1929, in
which I discuss the question of issuing fee patents on this reservation
and the results.
2. Many of the allottees whose allotments are included in the
proposed sale areas are in need of funds, and the proposed sales, if
made, will relieve their distress.
3. Some damage was done, in the proposed sale areas, by the big wind
storm of 1920, and while the timber which was wind thrown by the
original storm has decayed beyond any hope of salvage, yet the areas of
damage by wind throw are increasing each winter for the wind has gained
a foothold in the timbered areas through the areas of original damage
and each winter additional trees around the outside of the original
areas are wind thrown. On this account, logging of the timber as soon
as is practicable is very much to be desired.
Attached hereto also please find copies of proposed forms of
advertisement and contract for the units which are now being
recommended, namely;
1. The Lunch Creek Unit.
2. The Raft River Unit.
3. The Joe Creek Unit.
4. The Cape Elizabeth Unit.
These units have been named in a way which I believe to be
distinctive, and from the main topographic feature of each.
These contracts follow the form of previous contracts on the
Quinaielt with certain additions which will be discussed in detail.
1. At the end of the description of each sale area is added the
following:
"Excepting areas of swamp and open meadow land, and land so
poorly timbered that the Commissioner of Indian Affairs shall
consider logging thereon to be impracticable."
This clause has been added because of the fact that there are large
areas in each of the proposed units of swamp and open meadow, and also
around the edges of such land the timber is very poor, scattering, and
will not furnish a practicable logging show. Under this provision the
Commissioner must pass on the question of not logging certain areas.
2. Advance payments on allotments provide for the payment of 10% of
the estimated value of the allotments within 30 days, three and six
years, and 20% within nine years from the date of approval of the
allotment contract. These are the same provisions that have been made
on the eight sales of timber previously made on this reservation, and to
which the Indians and operators have become accustomed. Any more
liberal scale of advance payments will hinder advantageous sales because
of the large number of allotments included within each unit and the
amount of money which each operator must advance on account of allotted
timber.
3. The price re-adjustments are based on the three year period
ending December 31, 1928, and the provisions are standard.
4. The provision regarding the burning of slash (Page 4) was gone
over carefully with the Chief Supervisor of Forests, as were the
provisions regarding fire fighting equipment (on Page 5).
5. On the last page of the contract will be found a provision
regarding the utilization of material for pulp wood, which was also
discussed with the Chief Supervisor.
6. Inasmuch as the purchasers of the proposed units will probably be
concerns who are now logging Indian timber, the inclusion of the second
paragraph on the last page of the contract, which is identical with the
provisions included in recent contracts on the Klamath Reservation, and
which provides for the credit of logging operations on other units to
the new unit purchased by the operator within certain time limits, has
been included.
The contracts all provide for the removal of at least five million
feet prior to March 31, 1933; for the completion of the contract by
March 31, 1952; for a deposit with the bid of $20,000.00; and for a
bond of $50,000.00.
It is recommended that the period of advertising be fixed at at least
ninety days, and longer if possible to enable prospective purchasers to
investigate possible railroad locations and also to look over
considerable of the units in the field. It is felt that advertisement
in one local newspaper, and one or two lumber trade journals will give
sufficient publicity to these sales, for we will be able to get news
stories in the local papers concerning the sales which will in all
probability be released through the Associated Press.
It is also recommended that bids on all four units be opened on the
same day and at the same hour, which we believe to be very important if
we are to obtain competition for the units.
Under separate cover I am to-day mailing tracings of the various
units as follows:
1. Topography of the Lunch and Joe Creek Units.
2. Topography of the Raft River and Cape Elizabeth Unites.
3. Timber Estimate of Lunch Creek Unit.
4. Timber Estimate of Raft River Unit.
5. Timber Estimate of Joe Creek Unit.
6. Timber Estimate of Cape Elizabeth Unit.
and also one print of each map. These tracings and prints are being
mailed to the Forestry Branch of the Indian Office. If the Office and
Department shall approve the offering of these units as recommended, we
will need at least 50 blue prints of each map, and fifty copies,
mimeographed, of each advertisement and contract.
The following stumpage prices are recommended for the various units:
TABLE OMITTED SEE ORIGINAL
As the first stumpage price re-adjustment has been placed in 1933, it
seems proper to compare log sales made by contracting concerns on the
Reservation for the four year period ending December 31, 1928, and the
logging costs of such concerns, with the log sales which may be expected
from the various units during the next four years, (1929-32 inc.)
according to the amount of the various species on the several units, the
probable cost of logging in such units, and the stumpage prices which
have been recommended.
The following tabulation of actual log sales for the years 1925-1928
inclusive of logs from the Quinaielt Indian Reservation, has been taken
from the annual reports of concerns operating in Indian timber.
TABLE OMITTED SEE ORIGINAL
The percentage of different grades of Douglas Fir and Spruce is
computed as follows. TABLE OMITTED SEE ORIGINAL
Rounding off the prices and the percents, we arrive at the following
average prices obtained for logs actually sold from the Reservation
during the four year period 1925-1928 inclusive. TABLE OMITTED SEE
ORIGINAL
A sufficient amount of Amabilis Fir has not been sold during the past
four years to determine the actual sales value. Most of the Amabilis
Fir sold has been sold as Hemlock, so the value for Hemlock may properly
be used for Amabilis Fir.
The following are the logging costs of the four concerns operating on
the reservation for the four year period 1925-1928 inclusive. These
costs have been taken from the annual reports of the companies on file
at this office.
TABLE OMITTED SEE ORIGINAL
The 1928 costs of the M. R. Smith Lumber and Shingle Company have not
been received as yet, but I am advised that they will be no lower than
the 1927 costs. The 1925 and 1926 costs of the Hobi Timber Company are
too low and cannot be used fairly, for these figures do not include a
proper amount of depreciation on equipment nor was a sufficient amount
of the main line construction written off during these years. Please
refer to my report of February 8, 1928 considering the re-adjustment of
stumpage prices on the Quinaielt Lake Logging Unit to be effective April
1, 1928. We know, further, that the Polson Logging Company favors the
Ozette Railway Company in every possible way, and as reported to the
Office in the report just mentioned, the operating costs of the Ozette
Company are low because of this fact.
Taking the above tabulated costs for what they are worth, and
allowing for the special factors which are know to exist, it is felt
that an average logging cost of $11.00 f.o.b. the cars at the common
carrier terminals, without stumpage, would be fairly representative, as
a general figure, of the logging cost which may reasonably be expected
in the proposed units.
Assuming that the same grades of timber will be cut from the proposed
units, in proportion to the amount of the various species in each unit,
we can compute the sales price of the logs from each unit for the next
four years using the prices for the last four years as shown on Page 7
of this report. TABLE OMITTED SEE ORIGINAL
We arrive at the average stumpage prices to obtain in the proposed
four units for the next four year period by multiplying the percentage
of each species by the stumpage price recommended and adding the
weighted results for each unit as follows:
TABLE OMITTED SEE ORIGINAL
The data on the last few pages will now be consolidated to show, as
nearly as possible, the returns which may be expected in the next four
years, prior to the first re-adjustment of stumpage prices, on the
proposed four units, assuming that the cost of logging f.o.b. cars
without main line freight and stumpage will be $11.00; that the sales
returns will be approximately what they have been during the past four
years; and that the stumpage prices will be as recommended. TABLE
OMITTED SEE ORIGINAL
It would appear, from the above computations, that even at the
stumpage prices recommended the proposed units could not be logged at a
profit, and if the proposed units were to be considered in the light of
straight logging chances under present market conditions and logging
costs, I honestly believe the above figures represent, as closely as any
computations can, the actual conditions.
An analysis of logging operations from 1922 to date on the Quinaielt
Indian Reservation will show that the only concern than has made any
money in a straight logging show has been the Hobi Timber Company, and
they have made about four percent on the capital invested. The logging
superintendent who runs the woods operations of the Hobi Timber Company
is known as one of the best loggers in the Pacific Northwest, and this
concern, especially in the last two and one half years, has been very
efficiently managed and have made an output per man not excelled in this
entire locality. During the years 1925-1928 inclusive the Aloha Lumber
Company shows a total loss on logging operations of $166,142.45
according to their annual statements on file in this office, copies of
which have been submitted to the Indian Office with the annual
re-adjustment reports. The only way this Company can stay in business
is through the profit they make on round Cedar logs exported to Japan.
Similarly the M. R. Smith Lumber and Shingle Company have shown a loss
on logging operations, but this is a big concern, and they make a profit
by handling their Cedar products until they are sold to the consumers.
The Ozette Railway Company has sustained a heavy loss in their logging
operations, as reported to the Office in numerous reports.
As mentioned earlier in this report, the Quinaielt Indian Reservation
is the key to the Olympic Peninsula, and it is felt that this and the
other factors mentioned earlier will enable these sales to be made,
however, I feel that the stumpage prices recommended are the maximum
which should be given in the advertisement as the lowest bids which will
be considered. CORRECTION SHEET DOCUMENTS DUPLICATES OF 2062-2063
While the above computations as to logging costs, etc. have taken
into consideration all the known factors at our disposal, yet in these
costs have not been taken into consideration the following conditions:
1. The cost of bridging the Quinaielt River.
2. The comparatively light stand per acre.
3. The amount of wind thrown timber.
4. The fact that the timber on these units as compared with
average logging changes in Grays Harbor Generally, is of inferior
species and grade. There is less than two percent of Douglas Fir
on the entire area, and there is a very high percentage of Hemlock
and Amabilis Fir which are considered inferior species and are not
in demand.
I feel that due to the more level nature of the country, which will
render logging easier, that Lunch and Joe Creek Units are more desir-
able units. The stand per acre on both the Lunch and Joe Creek Units is
much heavier than on the Cape Elizabeth and Raft River, which also makes
them more desirable. The stand per acre on the four units is as
follows:
............... Elizabeth ... Raft ...... Lunch ...... Joe
Acres .......... 33,000 ..... 31,700 ..... 23,500 ..... 23,700
Stand per acre
.. M feet ...... 13,600 ..... 15,200 ..... 20,400 ..... 18,400
The above two reasons are the main ones why I have recommended $3.00
for the principal species on the Lunch and Joe Creek Units and $2.50 for
the principal species on the Raft River and Cape Elizabeth Units.
Very respectfully,
Henry B. Steer
Supervisor of Forests
HES-003-2053-2067
HES-003-2053-2067
IIA29.1
COMM OF INDIAN AFF
280802
CORRESPONDENCE
STEER ; TAHOLAH INDIAN AGE
HES-003-2068-2101-A
HES-003-2068-2101
IIA28.1
COMM OF INDIAN AFF
280802
CORRESPONDENCE
SAMS, ; TAHOLAH INDIAN AGE
Forestry
The Commissioner of Indian Affairs,
Washington, D. C.
Sirs:
There is transmitted herewith, through the Taholah Indian Agency, the
forestry report for the fiscal year 1928.
Ver respectfully,
/S/ Steer
Supervisor of Forests.
Approved and forwarded to the Indian Office.
/s/ Sams
Superintentent
INTRODUCTION:
General Description. (Narrative)
1. Area and location.
The Quinaielt Indian Reservation is located in the extreme western
central part of the State of Washington, and embraces about 196,644.97
acres, as follows:
Land area ........... 189,620.99 *
Rivers ................ 2,023.98
Quinaielt Lake ........ 5,000.00
Total ............... 196,644.97
(* Including the following amount of alienated land)
Fee patented allotments ..... 12,191.71
Land sold .................... 1,933.13
Total ....................... 14,129.84
2. Surface features, topography, etc.
The general topography is level with the exception of a strip about
five miles in width along the Pacific Ocean and a small area of
foot-hills of the Olympics in the extreme northeastern part. Four
rivers (Queets, Raft, Quinaielt, and Moclips) flowing west constitute
the main drainage system, but on the whole the reservation is very
poorly drained, resulting in large areas of Cedar swamp and several
large prairies which are under water in the winter.
3. The forest.
The principal trees are Cedar, Spruce, Douglas Fir, Hemlock, White
and Amabilis Fir, and White Pine. The forest types are those of the
western slope of the Cascades. Because of poor drainage, the stand of
timber is very uneven, heavy and light stands of timber, Cedar swamp and
open prairie being mixed.
The completion of the Olympic Highway from Quinaielt Lake to Harlow
Creek, has opened considerable of the northern part of the reservation
to tourist travel. In logging the 8 timber sales which have been made
(totalling about 1,400,000,000 feet B. M.) four logging railroads are
being built by as many different companies, making a considerable part
of the reservation lying South of the Quinaielt River fairly accessibe.
Practically all of the reservation lying North of the Quinaielt River is
still accessible only by means of poor and infrequently travelled foot
trails, and will remain so in all probability, until the timber is sold.
4. Statistics.
(A.) Estimated forest resources June 30, 1928.
Acreage M Bd Ft Value Total
Per M Value
Allotted Land 94,944.70 2,000,000 $3.00 $6,000,000.00
Unallotted Land 68,986.45 1,500,000 $3.00 $4,500,000.00
*Total 165,951.15 3,500,000 $10,500,000.00
(B.) Estimated value of timber lands, exclusive of timber June 30,
1928.
Acreage Value Per Acre Total Value
Allotted Land 102,944.70 $.75 $77,208.52
Unallotted Land 72,546.45 .75 54,409.84
*Total 175,491.15 131,618.36 * Difference in acreage explained by
amount cut over.
(C.) Estimated percentage of predominating species.
Cedar ............ 48%
Hemlock .......... 26%
Spruce ........... 10%
Douglas Fir ....... 8%
White Fir ......... 7%
White Pine ........ 1%
Organization and Personnel.
1. Graphical representation of organization as follows: GRAPH
OMITTED SEE ORIGINAL
2. Analysis of personnel in table form. TABLE OMITTED SEE ORIGINAL
(2 PAGES)
3. General discussion of personnel and organization from point of
view of efficiency.
The principal forest activity on the Quinaielt during 1928 was timber
sale administration. During the fiscal year 169,336,130 feet of timber
with a stumpage value of $549,969.76 was cut and removed by contractors.
98% of this timber was allotted. In order to efficiently handle a
proposition of this size, under the peculiar conditions existing on the
Quinaielt, a capable, smooth running organization must be engaged in the
work. I believe we have such an organization here.
Our organization, with regard to timber sales, has been given in
detail in previous reports, frequently inspected by at large officials,
and is functioning the same as it has in previous years. It is not
thought necessary to go into detail in this regard here.
While the major activity on this reservation has been timber sales,
and will probably continue to be timber sale work for some years to
come, the question of fire protection and suppression is going to become
more acute each year as the amount of cut-over land increases. With the
limited funds at our disposal for this purpose, we are doing the best we
can to properly protect the Quinaielt forests. Our major risks are the
roads and the logging camps. The Quinaielt Lake to Harlow Creek section
of the Olympic Highway is patrolled during periods of fire danger by a
Guard whose headquarters are at Raft River. We have a gasoline pump,
hose, and other tools at Raft River. The Moclips-Taholah road is
patrolled by a Forest Ranger, and we have a Ross pumper and hose at
Moclips. One man in each lumber camp is a Deputy State Ranger with
authority to enforce the laws of the State, as well as the Indian
Service rules and regulations concerning the prevention and suppression
of forest fires.
We must, during the coming fiscal year, purchase additional tools and
equipment for fire fighting purposes, and outline and install a system
of protection for cut over lands.
4. Total Number of Forest Employees. 18.
5. Number of acres to each employee. 10,000.
I. General Expense, Forestry
1. Analysis of items included under this cost feature.
(a). Salaries of employees on office work.
(b). Cost of office equipment.
(c). Expenses not otherwise classified.
2. Cost of General Expenses. Total Cost Unit Cost
Classification of operating expenses Amount .01 Salaries and
Wages, Regular $2,138.32
Employees
.02 Salaries and Wages, Irregular 16.15
Employees
.03 Materials and Supplies 354.41* .04 Repairs and Preservation of
8.09
Property
.05 Traveling Expenses .06 Expenses not otherwise classified 34.82
II. Operation of Forestry Automobiles.
1. List of Automobiles. TABLE OMITTED SEE ORIGINAL
2. Cost of operation of all automobiles. TABLE OMITTED SEE ORIGINAL
Operation Automobiles Miles Travelled Amount Unit Cost
23,100 per mile
Classification of Operating
Expensee
.01 Salaries and Wages, ---
Regular Employees
.02 Salaries and Wages, ---
.03 Materials and Supplies $718.24* .04 Repairs and Preservation
324.56
of Property
.05 Traveling Expenses --- .06 Expenses not otherwise 117.50
classified
III. Operation of Agency Sawmill.
There is no Sawmill operated by the Taholah Agency.
IV. Fire Protection.
Outline system of control.
Until recent years, when operations started on timber sales, no
timber was cut on the Quinaielt Reservation. Conditions under which a
fire will burn in green timber are very unusual. With the area of
logged off land increasing year by year, the completion of the Olympic
Highway from Quinaielt Lake to Harlow Creek (it will be completed
through the Queets and to the northern boundary of the Reservation
during the fiscal year 1929), and the construction of a road from
Taholah to Moclips, campers and vacationists are finding the Reservation
more accessible each year, and as a result the fire problem will become
constantly more acute.
It is felt that the roads and the logging operations constitute the
main fire risk. On the stretch of the Olympic Highway from the Queets
to Quinaielt Lake, we have a Guard patrolling the road, furnishing his
own car, who is also in charge of the Raft River Camp Ground, which is
located about in the center of the reservation on the Olympic Highway.
Camping or the building of fires has been prohibited on the reservation
along this highway except at Raft River, where a camp ground has been
cleared, camp stoves and toilets installed, and other conveniences
provided for the use of those who wish to use the camp ground. A Ross
pumper and 850 feet of hose, and other fire fighting tools are at this
camp ground in the ranger cabin, and the cabin is connected with the
phone line (built by the state) which ties at Quinault with the Bell
phone, so that the Forest Guard can call the Agency office promptly over
the phone. F. E. Briggs, the Ranger at Moclips, patrols the
Moclips-Taholah road in times of fire danger, in connection with his
duties on the Pt. Grenville Sale Unit and also with the upkeep of the
Government phone line running from Moclips to Taholah. A Ross pumper
and 850 feet of hose and other fire fighting tools are at Moclips, and
the Ranger has a phone in his house over which he can call Taholah or
the Agency in Hoquiam.
Lumber companies operating on the reservation must bear primarily the
responsibility of fires in their respective sale areas, however the
Indian Service Rangers in charge of the various units (as well as the
Supervisor, the Senior Ranger, and the Forest Guard at Raft River) have
been appointed Deputy State Rangers and are under instructions to see
that the State laws as well as Federal requirements relating to forest
fire prevention and suppression are rigidly enforced.
It has been the custom, in previous years, to employ fire guards
temporarily during the fire season, and use them on road and trail work
with the understanding that they would be immediately available in case
of forest fires. With the area of cut over land increasing year by
year, and as operations are completed on portions of sale areas as well
as on entire units, the services of temporary fire guards will be needed
for patrol work not only along the roads and in connection with the Raft
River Camp Ground, but also to patrol cut over areas. During the fiscal
year 1927 a comprehensive outline of an organization for the detection
and suppression of forest fires was recommended to the Office, but we
were not allowed any funds for the same. We are now, and have been,
seriously handicapped in our fire program by lack of funds, and in the
absence of sufficient funds for additional equipment and help, we can
only do the best we are able to with the employees who are employed
primarily for work on other projects, principally timber sale
administration.
We have two Ross pumpers with 1300 feet of hose. We should have at
least four pumps with 1500 feet of hose for each pump.
2. Discussion of character of fire season.
The relative humidity of the Quinaielt atmosphere is high, and
frequent night fogs, especially along the coast, materially reduce the
fire danger. The annual precipitation is about 70 inches, most of which
falls during the winter months. Due to the proximity of the ocean,
there are generally steady winds, which lie down during the night. On
the other hand the slash remaining after logging operations is very
heavy, especially in Cedar, and during the summer, period of intense
fire danger may come without much warning.
3. Analysis of forest fires as outlined on Form 5-483 (following).
Three forest fires were reported during the fiscal year, all of which
were extinguished without extra cost to the government. One fire was
put out by a Ranger, and the other two were put out by companies
operating on the Reservation.
4. Cost of Fire Protection. TABLE OMITTED SEE ORIGINAL Fire
Protection Area under Total Unit Cost
Protection Cost Per Acre
Classification of Operating 189,620.99
Expense acres
.01 Salaries and Wages, Regular
Employees ___
.02 Salaries and Wages, Irregular
Employees ___
.03 Materials and Supplies $4.50 .04 Repairs and Preservation of
Property ___
.05 Travel Expense ___
Gross Total Cost 4.50
TABLE OMITTED SEE ORIGINAL
5. Discussion of the problem.
During the fiscal year 1927, a policy of non-burning the slash after
logging operations was approved by the Indian Office. As the cut over
area increases year by year, we must have a system of patrol and tools
and aid available in short notice in case of fire. Lines of
communication must also be established. It is our intention to present
to the Office, early in the fiscal year 1929, a plan of fire protection
for the next fire season, accompanied by a request for the needed funds.
In the meantime we are doing the best we can with the funds and
employees at our disposal, and as mentioned above, have men patrolling
the roads, and State wardens in each camp.
It should, perhaps, be mentioned here, that with all the best
timberlands on the Quinaielt allotted to individual Indians, and with
the number of fee patented allotments growing larger, the problem of
adequate fire protection and suppression will become more acute with
time. As long as the majority of the land is held by Indians and is
under the jurisdiction of the Indian Service, every effort should be
made to protect these lands from fire, and this is our earnest endeavor.
V. Grazing Management.
There is no grazing on the Quinaielt Reservation.
VI. Construction and Maintenance of Roads and Trails.
1. The location of trails and roads is shown on the attached map.
2. Cost of maintenance of Roads and Trails. Roads and Trails Total
Number Total Cost Unit Cost
of Miles Amount per Mile.
Classification of Operating (Roads)
Expenses 9
.01 Salaries and Wages, Regular ___
Employees
.02 Salaries and Wages, Irregular $8,155.85
Employees
.03 Materials and Supplies 221.11 .04 Repairs and Preservation of ___
Property
.05 Traveling Expenses ___ .06 Expenses not otherwise ___
classified
Gross Total Cost $8,376.96* $930.00 *Includes a labor item of
$1,221.74 for completion of construction of
Taholah- Moclips Road.
3. Analysis of new road construction during the past year.
Work on the new portions of the Taholah-Moclips Road was completed
during the past year.
A. Moclips-Taholah Road.
B. Moclips-Taholah.
C. About 5 1/2 miles of new construction, road is nine miles
long.
D. Built along the coast, through dense timber, with
exceptionally heavy underbrush, old windfalls,
etc. Level grade, with the exception of one hill leaving the
sea level. Many swampy areas made construction, especially
grading, very difficult and expensive.
E. 0% to 5%.
F. Total Value based on cost.
Paid in 1927 ..... $54,216.53
Paid in 1928 ....... 1,221.74
Total ............ $55,438.27
G. $10,000.00
4. The cost of completing the Moclips-Taholah road, whtch was done
during the fiscal year 1928, was $1,221.74, and since this entire amount
was for labor in surfacing the road with gravel, this amount was
included in the maintenance cost given above.
5. No new road construction is proposed.
No maintenance work was done on trails during the fiscal year, and no
new trails were constructed.
VII. Telephone Operation and Construction.
1. Inventory.
A. Taholah-Moclips.
B. Taholah-Moclips.
C. About 9 1/2 miles.
D. No Tree line.
E. About 9 1/2 miles pole line.
1. Insulators -- 600, #16 Glass.
2. #10 copper wire.
3. Poles 25 feet long; not less than 5" top.
4. Value (Construction commenced in 1927, completed in 1928)
1927 cost ..... 712.39
1928 cost ..... 2279.16
Total ......... 2991.55
F. Total Value 2,991.55
G. Excellent.
2. Cost of operation (Maintenance). Telephone Lines Total number
Total Cost Unit Cost
of miles Amount per mile
Classification of Operating
Expenses 9 1/2
.01 Salaries and Wages, Regular $32.45
Employees
.02 Salaries and Wages, Irregular 23.33
Employees
.03 Materials and Supplies ___ .04 Repairs and Preservation ___
of Property
.05 Traveling Expenses 3.99 .06 Expenses not otherwise ___
classified
Gross Total Cost $59.77 $6.00
3. Analysis of new construction.
Construction on the Taholah-Moclips line was completed during the
year.
A. Taholah-Moclips.
B. Taholah-Moclips.
C. About 9 1/2.
D. No tree line.
E. 9 1/2 miles of pole line.
1. 600 insulators, #16 Glass.
2. #10 Copper wire.
3. 25 feet, not less than 5" top.
4. 2991.55 as follows
1927 ...... 712.39
1928 ..... 2279.16
.......... 2991.55
F. Total Value 2,991.55
4. Cost of new construction. TABLE OMITTED SEE ORIGINAL
5. No new telephone line construction is proposed.
VIII. Miscellaneous Improvements.
None.
IX. Miscellaneous Non-Forest Work.
Expenses incurred under this activity were in connection with the
scaling of timber cut in the construction of the Olympic Highway from
Quinaielt Lake to Harlow Creek, and in the establishment of the Raft
River Camp Site. Non-Forest Work Total Cost Unit Cost Classification of
Non-Forest Work Amount .01 Salaries and Wages, Regular $398.14
Employees
.02 Salaries and Wages, Irregular 229.50
Employees
.03 Materials and Supplies 102.04* .04 Repairs and Preservation of ___
Property
.05 Traveling Expenses ___ .06 Expenses not otherwise classified ___
Gross Total Cost $729.68 * Includes $17.91 spent for non-expendable
property.
X. Timber Sale Administration.
1. Analysis by units.
TABLE OMITTED SEE ORIGINAL
2. Analysis of cut for the year. TABLE OMTTTED SEE ORIGINAL
3. Total Cost of Administration and Income. Timber Sales Volume Cut
Total Cost Unit Cost Classification of Operating Per M
Expenses 169,336,130
.01 Salaries and Wages Regular $19,462.19
Employees
A. Scaling $14,223.95 B. Marking 3,075.02 C. Supervision 8,224.36
.02 Salaries and Wages, Irregular 4,091.14
Employees
.03 Materials and Supplies 616.16* .04 Repairs and Preservation of 6.20
Property
.05 Traveling Expenses 122.30 .06 Expenses not otherwise 322.71
classified
Gross Total Cost 24,620.70 $.146
*Including $545.22 spent for non-expendable property Operating Income
Volume Cut Value of Cut E.A. Tbr, Unit Income
Per M
Operating Income 169,336,130 $543,969.76 $43,035.59 $.25 Deduct
Operating Expense 24,620.70 .14 Net GAIN 18,464.89 .11
4. General discussion of timber sales by units.
A. Attitude of purchaser.
Unit .................. Purchaser ... General Attitude.
Moclips ................ Aloha ........ Satisfactory
Pt. Grenville ......... Smith ........ Satisfactory
Cook Creek ............ Hobi ......... Satisfactory
Quinaielt Lake ........ Ozette ....... Satisfactory
Mounts ................. Aloha ........ Satisfactory
Hatch .................. Aloha ........ Satisfactory
Upper Wreck Creek ...... Aloha ........ Satisfactory
Hall ................... Aloha ........ Satisfactory
While one or two minor matters have arisen during the fiscal year
1928, the general attitude of the purchasers remains entirely
satisfactory, as reported for the fiscal year 1927. The companies keep
their office records in the same manner as we do, and we have had no
serious difficulty in the field. Whenever a point of difference arises,
the same is settled in the field, on the ground, between representatives
of the company involved and this office.
B. General efficiency of Forest Officers.
Timber sale administration on the Quinaielt presents peculiar
difficulties, a large part of which is due to the fact that 95% of the
areas sold are allotted, and where tribal timber is left, our scaling
units are forty acres, or less. The heavy timber, the method of
logging, the only place where we can scale, and other factors require
that we have competent men who are not only efficient, but competent and
capable in every sense of the words. We take a great amount of pride in
the men who compose our organization, and in the results obtained.
5. Analysis of controlling accounts on each unit as of June 30,
1928. TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
Department of the Interior
U. S. Indian Service
Forestry Branch
Report No.
Period from June 30th, 1927,
to June 30th, 1928, inc.
QINAIELT INDIAN RESERVATION
DEDUCTIONS FROM FOREST RECEIPTS TO REIMBURSE UNITED STATES FOR
EXPENSES
Previous deductions during fiscal year ________ Deductions during the
period covered by this report $43,085.59
Total $43,085.59
Deductions deposited in Treasury during the fiscal year $43,085.59
Balance of deductions in disbursing officer's hands _______ Expenditures
from "Expenses, Sale of Timber, Reimbursable"
(fiscal year) $28,805.64
Expenditures from "Expenses, Sale of Timber, Reimbursable"
1927 $ 2.59
Expenditures from Expense Account Timber $ 1,705.51 Expenditure by
Washington Office $ 125.27
Total $30,638.96
Approved July ,1928
Supervisor of Forests
Superintendent
8. Summary of work to be completed during the coming year.
A. List of units on which re-adjustment will become effective.
1. Stumpage re-adjustment will become effective on the Pt.
Grenville and Mounts Units on April 1, 1928.
2. No bonds expire during the coming year.
C. List of allotments, dates and amounts of advance payments which
will come due.
(Immediately follows this page).
payments which will come due.
TABLE OMITTED SEE ORIGINAL (3 PAGES)
X. a. Timber Sale Administration (Reservations other than
Quinaielt).
Timber Contracts in force June 30, 1928.
Skokomish .................. Value
..Thos. Pulsifer .......... $250.00
Georgetown
..Armstrong Sale ........ 15,160.00
Total Value ............ $15,400.00
X. b. Timber Sale Administration (Check Scales) TABLE OMITTED SEE
ORIGINAL
XI. Recapitulation of Operating Costs and Returns from Operations.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
HES-003-2068-2101-B
HES-003-2068-2101
IIA28.1
270712
CORRESPONDENCE
STEER, H B ; TAHOLAH INDIAN AGE
HES-002-2102-2134-A
HES-002-2102-2134
IIA27.2
COMM OF INDIAN AFF
270712
CORRESPONDENCE
SAMS, W B ; TAHOLAH INDIAN AGE
Forestry
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
There is transmitted herewith, through the Taholah Indian Agency, the
forestry report for the fiscal year 1927.
Very respectfully,
H.B.(ILLEGIBLE)
Supervisor of Forests
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
In order that the Office may have full information as to the cost of
timber work in this jurisdiction (the Taholah Indian Agency) for the
fiscal year 1927, I am submitting herewith a list of my salary,
expenses, etc., which should be added, I believe, to the item "General
Expense" of the Taholah Agency accounts, feature I of the attached
report.
Salary (including Retirement Deduction ... $3137.50
Expenses (Travel, auto, etc) ............... 226.48
Total ..................................... 3363.98
Very respectfully,
B. B. Steer
Supervisor of Forests
INTRODUCTION:
General Description. (Narrative)
1. Area and location.
The Quinaielt Indian Reservation is located in the extreme western
central part of the State of Washington, and embraces about 202,595.22
acres, as follows:
Land area ......... 195,571.24 (inc. 13,779.56 acres of alienated
Meandered rivers .... 2,023.98 land)
Quinaielt Lake ...... 5,000.00
Total ............. 202,595.22
2. Surface features, topography, etc.
The general topography is level with the exception of a strip about
five miles in width along the Pacific Coast and a small area of
foot-hills of the Olympics in the extreme north eastern part. Four
rivers (Queets, Raft, Quinaielt, and Moclips) flowing west constitute
the main drainage system, but on the whole the reservation is very
poorly drained, resulting in large areas of Cedar swamp and several
large prairies which are under water in the winter.
3. The forest.
The principal timber trees are Cedar, Spruce, Douglas Fir, Hemlock,
White and Amabilis Fir, and White Pine. The forest types are those
typical of the western slope of the Cascades. Because of poor drainage
the stand of timber is very uneven, heavy and light stands of timber,
Cedar swamp, and open prairie being mixed.
Until recent years the reservation was very inaccessible, there being
no (ILLEGIBLE) roads or railroads, and only a few foot trails. Six
sales of timber (five of them very large ones) have been made since
1921, and fewer (ILLEGIBLE) railroads are being built in a general
northerly direction. The Olympic Highway, from Quinaielt Lake to the
Queets is nearing completion, which will open up the extreme northern
part of the reservation. The larger part of the reservation is
relatively inaccessible.
4. Statistics.
(A) Estimated forest resources June 30, 1927. TABLE OMITTED SEE
ORIGINAL
(B) Estimated value of timber lands, exclusive of timber
Allotted Land 60,043.86 $1.00 $60,043.86 Unallotted Land 121,747.82 .50
60.873.91 Total* 181,791.680 120,917.77 *Difference in acerage explained
by cut over area
(C) Estimated percentages of predominating species
Cedar .......... 45%
Hemlock ......... 26
Spruce .......... 10
Douglas Fir ..... 8
White Fir ....... 7
White Pine ...... 1
Organization and Personnel.
1. Graphical representation of organization, as follows: GRAPH
OMITTED SEE ORIGINAL
2. Analysis of personnel in table form. TABLE OMITTED SEE ORIGINAL
3. General discussion of personnel and organization from the point
of view of efficiency.
The principal forestry activity on the Quinaielt during 1927 was
timber sale administration. During the fiscal year 158,459,190 feet of
timber with a stumpage value of $500,344.82 was cut and removed by
contractors. 98% of this timber was allotted. In order to efficiently
handle a proposition of this size, under the peculiar conditions
existing on the Quinaielt, a capable, smooth running organization must
be engaged in the work. I believe that we have such an organization
here.
Office records are kept on prescribed forms and posted promptly
according to instructions. Although timber from allotted land to the
value of $1,209,924.73 has been removed from the reservation, we have
not overpaid any allottee, and the Indian Office has never been asked
for authority to refund one cent of over payment to an individual
Indian. Every scale book is promptly and completely checked before full
and final distribution of the proceeds of the timber sale on any cutting
area is completed, and due to the system of checking the scale books in
the woods every night, it is seldom that an error in scale books is
found by the timber clerk.
Our field work is kept constantly up to date, especially in regard to
pick-up scale which is never more than two weeks behind actual logging
operations. Every possible precaution is taken to assure the crediting
of logs to the description of the land from which they are cut. All
allotment lines are carefully run before logging operations commence,
and where necessary in order that a proper segregation may be made, logs
are branded with a distinctive brand in the woods before they are
yarded. The employee in charge of each unit keeps a map of that unit
showing the location of each camp, railroad spur, landing (by numbers)
and the cut over area on which pick-up has been made in crayon, using a
different color for each year. This map record is also kept in the
Hoquiam office by unit maps which are posted on the office wall and kept
up to date and also on a large cloth backed map of the entire
reservation.
4. Total number of forest employees. 14.
5. Number of acres to each employee.
Acres 181,791.68 .. Employees 14 .. Acres per employee 13,000
I. General Expense, Forestry.
1. Analysis of items included under this cost feature.
(a) Office salaries. (1) Timber clerk (2) Office work of Senior
Forest Ranger (b) Cost of office equipment. (c) Expenses not
otherwise classified.
2. Cost of General Expense. General Expense, Forestry Total Cost
Amount Unit Cost Classification of operating
Expenses
.01 Salaries and Wages Regular $1,652.68
Employees
.02 Salaries and Wages Irregular ___
Employees
.03 Materials and Supplies 345.43 .04 Repairs and Preservation of ___
Property
.05 Traveling Expenses ___ .06 Expenses not otherwise 44.47
classified
Gross Operating Cost $2,040.78
II. Operation of Forestry Automobiles.
1. List of automobiles. TABLE OMITTED SEE ORIGINAL
2. Cost of operation of all automobiles. TABLE OMITTED SEE ORIGINAL
Operation Automobiles Miles Traveled Amount Unit Cost Classification of
Operating 14,450 per mile
.01 Salaries and Wages Regular ___
Employees
.02 Salaries and Wages Irregular ___
Employees
.03 Materials and Supplies $255.19 .04 Repairs and Preservation of
170.32
Property
.05 Traveling Expenses ___ .06 Expenses not otherwise classified 120.00
Gross Operating Cost $545.51 .037
* This amount was paid from another fund by Steer. Only the amount
paid by the Taholah Agency is used in a later compilation (345.51)
III. Operation of Agency Sawmill.
There is no sawmill operated by the Taholah Agency.
IV. Fire Protection.
1. Outline system of control.
Unitl recent years, when operations started on timber sales, no
timber was cut on the Quinaielt Reservation. Conditions under which a
fire will burn in green timber are very unusual. With the area of
logged off land increasing year by year, and the construction of the
Olympic Highway from Quinaielt Lake to the Queets, and also with the
construction of a road from Moclips to Taholah, campers and vacationists
are finding the reservation more accessible each year and as a result
the fire problem will become more acute.
Lumber companies operating on the reservation must bear primarily the
responsibility of fires in their respective sale units, however the
Service men in charge of the various sale areas have been appointed
Deputy State wardens and are under instructions to see that State
regulations and Federal requirements relating to forest fire prevention
and suppression are rigidly enforced.
During the fire season temporary fire guards are employed on forest
improvement work and are immediately available in case of fires.
An outline of a comprehensive plan of organization for the prevention
and suppression of forest fires on the Quinaielt was submitted to the
Office during the fiscal year. It has been estimated that $62,250.00
would be needed for the installation of look-out towers, trails, phone
lines, etc., and that an amount of at least $5,850.00 would be required
annually for salaries of regular employees alone if the fire plan
submitted should be adopted. We are now, and have been, seriously
handicapped in our fire program by lack of funds, and in the absence of
sufficient funds, we can only do the best we can with the employees who
are employed primarily for work on other projects, principally timber
sale administration.
Among fire fighting equipment available at this time are two "Ross"
portable gasoline pumps and 800 feet of 1 1/2" hose.
2. Discussion of character of fire season.
The relative humidity of the Quinaielt is very high, and frequent
night fogs, especially along the coast, materially reduce the fire
danger. The annual precipitation is relatively high, being about 70
inches, a very small part of which normally falls during the summer
months. Due to the proximity of the ocean, there are generally steady
winds, the velocity of which is not usually high, and nights are apt to
be calm during the fire season. The dangerous periods are when the
humidity drops and an east wind springs up.
3. Analysis of forest fires as outlined on Form 5-483 (following)
Two forest fires were reported during the fiscal year.
Fourth of July campers on the beach left a fire in drift logs which
spread to standing timber and burned over about five acres before it was
extinguished.
A fire staring on July 20th burned over about 80 acres in the Cook
Creek Unit adjacent to the Hobi Timber Camp. About 500,000 feet of down
logs were scorched, but no loss in stumpage was borne by the allottee,
as the logs were scaled for their full merchantable content before the
fire occurred.
4. Cost of Fire Protection, as follows. Fire Protection Area Under
Total Cost Unit Cost Classification of Protection Amount per acre
Operating Expenses 181,791.68 .01 Salaries and Wages ___
Regular Employees
.02 Salaries and Wages $396.00
Irregular Employees
.03 Materials and Supplies 5.00 .04 Repairs and Preservation ___
of Property
.05 Traveling Expenses ___ .06 Expenses not otherwise ___
classified
Gross total cost $401.00
CHART OMITTED SEE ORIGINAL
5. Discussion of the problem.
The question of fire protection on the Quinaielt will yearly become
more acute as the area of cut over land becomes larger. During the
fiscal year, the Office decided that a policy of non-burning of cut over
areas he adopted, and that policy of requiring the slashings to be
burned be abandoned. If an organization is successful in keeping fire
out of the cut over area, it must be efficiently organized, have a large
personnel, and proper equipment. As mentioned above, we have been
handicapped through lack of funds, and the fact remains that we must
have adequate funds if we are to successfully cope with the fire
problem.
It should, perhaps, be mentioned here, that with all the best
timberlands on the Quinaielt allotted to individual Indians, and with
the number of allotments which have been fee patented and sold, and
which will, in all probability continue to be sold, the problem of fire
protection and suppression has become greatly involved. As long as the
majority of the land is held by Indians and is under the jurisdiction of
the Indian Service, every effort should be made to protect these lands
from fire, and that is our earnest endeavor.
V. Grazing Managment.
There is no grazing on the Quinaielt Reservation.
VI. Construction and Maintenance of Roads and Trails.
1. The location of trails and roads is shown on an attached map.
2. Cost of Maintenance of Roads and Trails.
There was no item for maintenance of trails during the fiscal year
1927. What maintenance work was done on the Taholah-Moclips road was
done by men engaged on new construction work, and it is such a
relatively small percentage of the cost, that it was impracticable to
segregate the same from the cost of new construction.
3. Analysis of new road and trail construction during 1927.
(No new trails were built during the year)
(A) Moclips-Taholah road.
(B) Moclips-Taholah.
(C) About 5 1/2 miles.
(D) Built along the Coast, through dense timber, with
exceptionally heavy underbrush, old windfalls, etc. Level grade,
with the exception of one hill leaving the level of the beach.
Many swampy areas made construction, especially grading, very
difficult and expensive.
(E) 0% to 5%
(F) Since the work is not yet completed, it is impossible at
this time to give the total value of the same.
(G) Cost per mile cannot be given until completed.
4. Cost of Taholah-Moclips Road. Total number Total Cost per
of miles Cost mile
Classification of Operating Expenses 5 1/2 .01 Salaries and Wages
Regular
Employees $39.38
.02 Salaries and Wages Irregular
Employees 18,863.27
.03 Materials and Supplies 1,625.08 .04 Repairs and Preservation 6.10
of Property
.05 Traveling Expenses 3.10 .06 Expenses not otherwise 34,379.60
classified
Gross total cost 54,216.53 $10.00
5. Outline of proposed construction.
It is expected that graveling the Taholah-Moclips road will be
completed during the summer of 1927. It is not proposed, at this time,
to construct any additional roads.
VII. Telephone Operation and Construction.
1. The old Taholah-Moclips phone line, as inventoried in the 1926
report, was abandoned during the fiscal year 1927. The iron wire used
in the old line was rusted and corroded badly; continual breaks
occurred, and the mixed pole and tree system was not successful.
2. There was no cost of maintenance or operation during 1927.
3. Construction of a new pole line between Taholah and Moclips was
begun in June 1927.
(A) Taholah-Moclips
(B) Taholah-Moclips
(C) about 9 1/2 miles
(D) About 9 1/2 miles
(1) Insulators 600 # 16 Class
(2) #10 copper wire.
(3) Poles 25 feet long, not less than 5 inch top.
(4) It will not be possible to give the value of the line until
the same is completed, which will probably be in July, 1927.
(F) The only phone line on the Quinaielt is the Taholah-Moclips
(above) and that is not completed.
4. Cost of new construction.
The following is the cost of the phone line work done on the
Taholah-Moclips line in June 1927. The work is not completed, and the
following figures should be added to the amount which will be spent in
1928 and reported as of that year.
.02 Salaries and Wages, Irregular Employees .... $567.00
.03 Materials and Supplies ...................... 145.39
Total 1927 cost ................................. $712.39
5. No additional phone construction is contemplated or proposed,
other than the finishing of the new Taholah-Moclips line, except in the
event that our plan for a comprehensive fire detection organization, as
submitted to the Office under date of April 30, 1927, is approved by the
Office.
VIII. Miscellaneous Improvements.
None.
IX. Miscellaneous Non-Forest Work.
(A). The expense incurred under this activity represents the time of
a forest employee used in scaling logs and other materials used by
contractors in building the Olympic Highway from Quinaielt Lake to the
Queets. Non-Forest Work Total Cost Unit Cost .01 Salaries and Wages,
Regular Employees $32.72 .02 Salaries and Wages, Irregular Employees ---
.03 Materials and Supplies --- .04 Repairs and Preservation of Property
--- .05 Traveling Expenses --- .06 Expenses not otherwise classified ---
Gross Total Cost $32.72
X. Timber Sale Administration.
1. Analysis by Units.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
3. Total Cost of Administration and income. TABLE OMITTED SEE
ORIGINAL
4. General discussion of timber sales by units.
(A). Attitude of purchaser.
Unit .............. Purchaser .. General Attitude
Moclips ........... Aloha ...... Satisfactory
Pt. Grenville ..... Smith ...... Satisfactory
Cook Creek ........ Hobi ....... Satisfactory
Quinaielt Lake .... Ozette ..... Satisfactory
Mounts ............ Aloha ...... Satisfactory
Hatch ............. Aloha ...... Satisfactory
While the above report as to the general attitude of the purchasers
of timber units on the Quinaielt seems to be rather stereotyped, yet the
fact is that there has never been any serious trouble between any
operating company and the representatives of the Service. There is no
difficulty in the matter of accounts, mainly because at my suggestion,
all of the operators purchased controlling accounts exactly the same as
the main controlling account used at this Agency, which the operators
keep up to date, and check with the Agency once a month. In all
financial matters pertaining to a sale of timber, they keep the same
records as the Agency, and thus are constantly informed as to the status
of the funds which they have on deposit. We have had no serious
difficulty in the field work -- we have contracts governing the sale of
timber units, and these are followed. Whenever a point of difference
arises, the same is settled in the field at a conference between
representatives of the Company and Service employees.
(B). Efficiency of Forest Officers.
Due to the fact that 98% of the timber now sold on the Quinaielt is
allotted, the duties of all forest officers require constant and very
painstaking efforts to assure the proper crediting of logs to the
allotment from which they were cut. All phases of timber sale
administration are attended to promptly and I believe efficiently. The
promotion to the position of Senior Forest Ranger of Mr. L. C. McKeever,
effective April 1st, 1927 filled a long felt need. Mr. McKeever's
principal duties are the checking of scalers, and of log branding, and
with four Rangers and eight scalers, the need for these services is
readily apparent.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
Department of the Interior
U. S. INDIAN SERVICE
FORESTRY BRANCH
Report No.
Period from ___,192
to___, 192, inc.
I.O. File No.____ QUINAIELT Indian Reservation
(OPERATING INCOME)
Opening Balance _________ Credited during the period ____________
Total ______________
Deductions during the period _______________ Closing balance
ANALYSIS OF CLOSING BALANCE
Allotted ______________ $1,978.22 Unavailable funds ____________
________ Approved July 8th, 1927 H.B. STEER
W B Sams Supervisor of Forests
Superintendent
Because of the two different funds which were used for the payment of
expenses incidental to forestry work during the fiscal year 1927, the
following table, showing the status of the two funds:
"Expenses, Sale of Timber Reimbursable" and "Expense Account, Timber"
as of June 30, 1927, follows.
It will be remembered that on June 30, 1926, the Superintendent was
instructed to deposit his unexpended balance in "Expense Account,
Timber" to the credit of the Treasurer of the United States, and he was
further instructed that the 1927 expenses would be paid from "Expenses
Sale of Timber, Reimbursable" as appropriated by Congress. Because the
amount allotted to this Agency from the fund just mentioned was grossly
inadequate for our needs, we ran out of funds by the first of April,
1927. According to instructions received from the Indian Office,
expenses from April to June 1927, were paid from "Expense Account,
Timber" and moneys were made available in this fund through the deposit
of the 8% deductions from the sale of timber to the official credit of
the Superintendent in the fund "Expense Account, Timber".
On June 30, 1927, the balance then in the hands of the Superintendent
in the fund "Expense Account, Timber", less encumbrances, was deposited
to the credit of the U. S. Treasurer.
The full record of these two funds follows:
June 30, 1927.
EXPENSES, SALE OF TIMBER, REIMBURSABLE
TABLE OMITTED SEE ORIGINAL
EXPENSE ACCOUNT, TIMBER
TABLE OMITTED SEE ORIGINAL
ON HAND AT THE TAHOLAH AGENCY 07/01/27
TABLE OMITTED SEE ORIGINAL
8. Summary of work to be completed during the coming year (1928).
A. List of units on which re-adjustment will become effective.
1. Stumpage re-adjustment becomes effective on the Quinaielt
Lake Logging Unit on April 1, 1928.
2. No bonds expire during the coming year.
C. List of allotments, dates and amounts of advance payments which
will come due.
D. Recommendations for the sale of at least one more unit of timber
will be made during the coming year.
E. Under date of April 30, 1927, there was forwarded to the Office a
fire fighting organization plan. The amount of work put in on this
proposed project depends entirely upon the degree of acceptance of this
report, by the Office, and the amount of funds provided for the work.
payments which will come due.
TABLE OMITTED SEE ORIGINAL
Quinaielt).
TABLE OMITTED SEE ORIGINAL
Operations.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
Costs.
TABLE OMITTED SEE ORIGINAL CORRECTION SHEET DOCUMENT IDENTICAL TO 2132
HES-003-2102-2134-B
HES-003-2102-2134
IIA27.2
270921
CORRESPONDENCE
SUPERVISOR ; TAHOLAH INDIAN AGE
Forestry
56777-22
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
Reference is made to Indian Office letters of June 22, July 19, and
August 5, 1927, regarding the advisability of reserving from logging a
strip of timber not exceeding three hundred feet in width along the
shore of Quinaielt Lake, especially to Office letter of August 5, which
extended the study of the advisability of reserving a strip of timber of
about three hundred feet in width to include areas adjacent to the
Olympic Highway, other roads and streams. In this connection my report
in two parts -- (1) Quinaielt Lake, and (2) Olympic Highway, is
respectfully submitted.
1. Quinaielt Lake.
Exhibit #1, attached to this report, is a blueprint of a map which I
have prepared of Quinaielt Lake showing the ownership of lake frontage.
The distance around the lake, following the shore line, is about twelve
miles. Of this distance about two miles, or one-sixth, is held in trust
for Indians; the remaining ten miles being either privately owned, or
under the jurisdiction of the United States Forest Service of the
Department of Agriculture. This map has been prepared and is attached
to this report in order that the Office may have full information as to
the relative importance of the Indian owned lands; privately owned
lands; and national forest lands bordering on Quinaielt Lake.
Exhibit #2, attached to this report, is a blueprint of a map which I
have prepared of that portion of the Quinaielt Indian Reservation
bordering on Quinaielt Lake. This map shows the reservation shore line
on Quinaielt Lake; the Quinaielt River near the lake; the Olympic
Highway near the lake; the logging railroad of the Ozette Railway
Company (Polson) now under construction; the former Indian allotments
now owned in fee simple by the Polson Logging Company and N. A. Jones;
and trust Indian allotments.
Plans for the logging of the timber near Quinaielt Lake by the Ozette
Railway Company to this date include only that portion of the
reservation shown on exhibit #2, lying south and east of the Quinaielt
River. The allotments included in this special study are as follows:
TABLE OMITTED SEE ORIGINAL
All of these contracts were approved by the Indian Office on March
25, '23.
We are not concerned with regard to leaving a strip of timber along
the shore of Quinaielt Lake with regard to allotment #30, for there has
apparently been an error made in the meander line of Quinaielt Lake.
Exhibit #2, which has been prepared in accordance with Land Office maps,
shows the northeast corner of allotment #30 as right on the shore of the
lake. This corner is approximately two hundred feet due south of the
lake shore, and only about seventy five feet due north of the Olympic
Highway.
Upon receipt of Indian Office letter of July 19th, which mentions
that the general timber sale regulations, which are attached to and made
a part of every timber sale contract, provide that a strip of timber not
exceeding three hundred feet in width on each side of streams, roads,
and trails and in the vicinity of camping places are recreation grounds
may be reserved in which little or not cutting will be allowed, the
matter of leaving a three hundred foot strip bordering the lake on
allotments 23, 28, and 292 (north and east of the bridge site) was given
very careful consideration. It was found that the reserving of a three
hundred foot strip along the lake shore in which no cutting would be
allowed would leave the following amounts of timber, worth a certain sum
which is determined by using the stumpage prices now being paid for
timber within the Quinaielt Lake Unit. TABLE OMITTED SEE ORIGINAL
The above cruise, which was made by Senior Forest Ranger McKeever and
myself, includes only live standing timber, and is very conservative.
Snags or windfalls are not included in the above estimate.
It became immediately apparent that the Indian owners of this timber
could not be reasonably expected to leave timber to the value given
above unless it was distinctly to their advantage to do so.
The allotments listed above, especially that portion of the same
lying between the Olympic Highway and Quinaielt Lake, are very desirable
sites for summer houses. Would the leaving of at least thirteen
thousand dollars worth of timber increase the value of these allotments
as summer home sites an equal amount? The stumpage prices paid for
timber in the Quinaielt Lake Unit, in which these allotments are
included, are so high that it is a reasonable certainty that the Indians
can never sell again any timber which is not cut at this time for equal
prices. In determining this question, the silvicultural characteristics
of the forest type standing on these lands, in-so-far as wind resistance
is concerned, should properly be considered. The typical tree on the
area under consideration (lying between the Olympic Highway and
Quinaielt Lake), is very tall and will average at least two hundred feet
in height, with a small crown and an unusually small and shallow root
system. While it cannot be definitely determined at this time, it is my
belief that the majority of those trees, if left standing, would be
blown down in the course of a very few years and would be a direct
economic loss, both to the Indian owner and to the community. The
Indian lands under consideration are now, and will become more, valuable
as summer home sites, and it is doubtful if people familiar with wind
storms in this locality would erect summer homes in a strip of timber
three hundred feet in width such as would remain if this timber were
left. It is an entirely different thing to build a house in an
untouched forest and to build a house along the edge of an old cutting.
The danger of windfall in the latter case far exceeds that in the first.
If this three hundred foot strip of timber were left, I do not believe
that the property, as summer home sites, would be enhanced in value to
the extent of the stumpage value of the timber left standing. I further
believe that the Indian owners of this timber would not consent to the
leaving of this amount of timber were they fully advised as to the
stumpage value of the same.
At this point in my investigation, this matter was taken up with the
joint committee of the Hoquiam and Aberdeen Chambers of Commerce, and
there is attached to this report of that committee modifying their
request which was submitted to the Indian Office through Congressman
Albert Johnson. The report of this committee, as enclosed, was adopted
by the Hoquiam Chamber of Commerce and the committee was discharged.
The whole matter was gone over in detail with this committee, and their
intention was invited to the fact that it is entirely possible to
practice selective logging in the three hundred foot strip of land
directly adjacent to the lake, for an examination on the ground reveals
the fact that there are numbers of wind firm trees; that is young or
middle aged trees with well developed crowns, standing close to the
waters edge which can be reserved from cutting and which will preserve,
to a certain degree, a green fringe around the lake front.
From the standpoint of the logging company, there is no reasonable
reason why this practice of selective logging cannot be put into effect
for the three hundred foot strip will be at the extreme end of the
yarding area in all directions, and the leaving of trees in this area
will cause a minimum amount of trouble to the logging crew.
Furthermore, there is approximately one-half a mile of lake frontage on
the extreme northern part of allotment #28 on which there is no
merchantable timber on a strip three hundred feet wide next to the lake.
The contracts for the sale of the timber on allotments #29 and #292,
and the Powers of Attorney which are attached thereto, provide that five
acres on each allotment will be reserved from cutting. On allotment
#292 the five acre area is designated as the five acres lying at the
east end of the bridge across the Quinaielt River directly south of the
Olympic Highway.
On allotment #29, the exact location of the five acre tract was not
designated in either the contract or the Power of Attorney, but Jonas
Hyasman, the allottee, agreed to designate the five acres to be reserved
prior to April 1, 1927. The Superintendent and I have, on numerous
occasions, tried to get Mr. Hyasman to go to the lake with us and
designate the five acres on his allotment which he desires to reserve
from cutting, but to date he has not complied with our request. On
exhibit #2 of this report, in allotment #29, the little "x" in black
India ink, denotes the location of a small shingle mill which is
operating under the permission of the department. The area is Allotment
#29 bounded on the west by this shingle mill site; on the South and
west by the Olympic Highway; on the south-east by the reservation
boundary; and on the north by the shore of Quinaielt Lake, contains
approximately six acres and, in my opinion, should be reserved from any
cutting for two reasons:
First: because it is my understanding that Jonas Hyasman
desires a homesite and this, from a topographic standpoint, is the
best area for this purpose on his allotment, and
Second: because if the timber in this six acre area is logged,
the only feasible way to log it, due to the topography of the
country, is directly into the waters of the lake, then tow the
logs to the shoreline of allotment #28, sky-line them to the
railroad spur and load them cut.
The area in allotment #29 lying south of the Olympic Highway can be
sky-lined to the end of the railroad spur in allotment #30. Due to a
ridge running in a north-westerly direction through the center of
allotment #29, the cost of building a railroad spur across allotment #29
to tap the six acres in question is prohibitive, in view of the small
amount of timber involved, and the timber on the six acre tract in
question cannot be logged across the state highway.
It is believed that Jonas Hyasman will designate this six acre tract
as the area to be reserved from cutting. In case he is not willing to
do this, the matter will be reported to the Office with the
recommendation that the area shall be reserved and no cutting allowed in
it. The balance of the timber on allotment #29 north of the Olympic
Highway, can be sky-lined to the end of the railroad spur in allotment
#28.
The following recommendations are respectfully made as to the plan of
logging the timber adjacent to Quinaielt Lake and east of the Quinaielt
River in the Quinaielt Indian Reservation:
(1). That the six acres on the extreme north-east corner of
the allotment of Jonas Hyasman, #29 be reserved from cutting.
(2). That no slash shall be burned in this area in accordance
with the present policy now in vogue, and that all snags in the
area between the Olympic Highway and Quinaielt Lake be felled.
(The Ozette Railway Company, through Mr. Robert Polson, has orally
agreed to do this).
(3). That selective logging be practiced in a strip of timber
three hundred feet in width adjacent to the Quinaielt Lake, which
is feasible and possible both from a logging standpoint and from
the standpoint of practical forestry, and obviously to the
advantage of the Indian owners.
As to the area near Quinaielt Lake lying west of the Quinaielt River
to the reservation boundary, all of the land fronting on the lake is
privately owned with the exception of approximately five-eights of a
mile, which is on allotments #31, Mary Hyasman, deceased, and #438 Mrs.
Lottie Wain. I am informed that the Polson Logging Company has
contracted for the timber on the allotment which H. A. Jones purchased
from Addie Hyasman, and that they will log this allotment and former
allotments #57, #493, #492, and #86, which they own in fee simple,
clean.
However, it is recommended that the same policy be pursued on
allotments #31 and 488 which has been recommended for allotments lying
east of the river, principally that selective logging be practiced
where-ever possible in the three hundred foot strip bordering on the
lake.
2. Olympic Highway.
Office letter of August 5, 1927, instructs me to report on the
practicability of conservative selective logging along the Olympic
Highway. The practicability of conservative selective logging in areas
bordering on the Olympic Highway and other roads and streams, depends
upon a number of factors, among which are the following:
(1). The ownership of the land and timber.
(2). The silvicultural characteristics of the forest type, and
(3). The feasibility of such a plan with reference to the of
logging generally used in the locality.
These points and their bearing upon the reserving of timber along the
Olympic Highway will be discussed in turn.
(1). Nearly all of the land on both sides of the Olympic Highway
between Quinaielt Lake and the northwestern boundary of the Quinaielt
Indian Reservation, either has been allotted or has been selected for
allotment by individual Indians. The reservation of a strip of timber
three hundred feet in width on both sides of the Olympic Highway would
mean the leaving uncut of a very considerable amount of timber, which is
the property of individual Indians. Because of the exceptionally high
stumpage prices prevailing in the Quinaielt Lake Logging Unit, and the
prices which will in all probability be paid for timber not yet sold,
the stumpage value of this timber will run into thousands of dollars on
each allotment, and it is doubtful in my mind whether any individual
Indian can reasonably be expected to assume an economic loss in the
amount that would be necessary were a strip of timber six hundred feet
in width be left on his allotment adjacent to the Olympic Highway.
(2). The silvicultural characteristics of the Quinaielt type of
forest are of such a nature that a plan of reserving a strip of timber
three hundred feet in width on each side of the highway in its entirety
is not feasible in most localities. The root system of our forest trees
is very small in extent and very shallow. The average root system is
certainly not over two feet in depth. This is due to the abundant
moisture in the ground which does not necessitate trees throwing out a
large rambling tap root in order to obtain sufficient moisture. Our
trees are generally very high, heights of from two hundred and fifty to
three hundred and fifty feet being common. The atmospheric conditions
are such that where trees of such height and with such shallow root
systems are left exposed to winter storms, it is a moral certainty that
a large part of them will be wind thrown within a few years after
logging operations in the vicinity cease. There may be places where the
timber is poor, due to poor soil conditions (generally poor drainage)
where a minimum of windfall would occur in a three hundred foot strip of
timber if the same were left, but in the average stand of merchantable
timber I feel that a large part of the timber on a three hundred foot
strip would be blown down in a very short lapse of time if the same were
left in its entirety.
(3). The system of logging universally used in this locality is that
commonly known as high-lead logging with high powered steam donkeys. It
would be entirely feasible from a logging standpoint to leave a three
hundred foot strip of timber in its entirety along roads, but it is a
very difficult thing to practice selective logging, that is, to remove
part of the timber in a certain designated area and leave part of the
timber standing under this system of logging.
I believe it may be possible to practice selective logging, to a
certain degree, along the Olympic Highway, other roads and streams in
the Quinaielt Indian Reservation. I believe that whenever a tree which
has a well developed crown, is of not over middle age, and not too tall,
occurs along any road or stream, that this tree should be left and that
it can be left, but I do not believe it is either feasible or
practicable to reserve a three hundred foot strip on either side of the
Olympic Highway or along any other road or any stream on the Quinaielt
Indian Reservation, nor can selective logging, in the generally accepted
interpretation of the term, be practiced, due to the system of logging.
I am, however, very strongly in favor of leaving occasional wind firm,
young or middle aged trees along roads or streams wherever it is
practicable to do so.
Very respectfully,
Supervisor of Forests
HBS/S
I concur in the above report and recommendations.
Superintendent
HES-003-2135-2144
HES-003-2135-2144
IIA27.1
COMM OF INDIAN AFF
260810
CORRESPONDENCE
STEER, H B ; TAHOLAH INDIAN AGE
HES-003-2145-2168-A
HES-003-2145-2168
IIA26.2
COMM OF INDIAN AFF
260810
CORRESPONDENCE
SAMS, W B ; TAHOLAH INDIAN AGE
Forestry
The Commissioner of Indian Affairs,
Washington, D. C.
Sirs:
There is transmitted herewith, through the Taholah Indian Agency, the
Forestry report for fiscal year 1926.
In order that the office may have full information as to the cost of
timber work in this jurisdiction, I am submitting herewith, a list of my
salary, expenses, etc., which should be added, I believe, to item
"General Expense" of the Taholah Agency accounts, feature 1 of the
attached report.
Salary (inc. Retirement Deduction) ....... $3,000.00
Expenses, travel, auto, and misc. ........... 268.64 *
Total ..................................... 3,268.64
(* Includes the expense of the trip to the Neah Bay Agency, about
$75.00)
Very respectfully,
B. B. STEER
Supervisor of Forests
Approved and forwarded to the Indian Office.
INTRODUCTION:
General Description. (Narrative)
1. Area and location.
The Quinaielt Indian Reservation is located in the extreme western
central part of the State of Washington, and embraces about 202,595.22
acres, as follows:
land area ................ 195,571.24 (inc. 13,481.49 acres of
meandered rivers ........... 2,023.98 alienated land)
Quinaielt Lake (approx) .... 5,000.00
.......................... 202,595.22
2. Surface features, topography, etc.
The general topography is level with the exception of a strip about
five miles in width along the Pacific Ocean and a small area of
foothills of the Olympics in the extreme north eastern part. Four
rivers (Queets, Raft, Quinaielt, and Moclips) flowing west constitute
the main drainage system, but on the whole the reservation is very
poorly drained, resulting in large areas of Cedar swamp and several
large prairies which are under water in the winter.
3. The forest, including a discussion of species, types,
accessibility, possibility of development, etc.
The principal timber trees are Cedar, Spruce, Douglas Fir, Hemlock,
White and Amabilis fir, and White Pine. The forest types are those
typical of the West slope of the Cascades. Because of poor drainage the
stand of timber is very uneven, heavy and light stands of timber, Cedar
swamp and open prairie, being mixed heterogeneously.
Until recent years the reservation was very inaccessible, there being
no wagon roads or railroads, and only a few foot trails. Five large
sales of timber have been made since 1921, and four different logging
railroads are being built in a general northerly direction. It is
expected that the Olympic highway will be completed from Quinaielt Lake
to the Queets by January 1, 1927. The larger part of the reservation is
still relatively inaccessible.
4. Statistics.
(A) Estimated forest resources June 30, 1926. TABLE OMITTED SEE
ORIGINAL
(B) Estimated value of timber lands, exclusive of timber, June 30,
'26 TABLE OMITTED SEE ORIGINAL
(C) Estimated percentages of predominating species
................. %
Cedar .......... 48
Hemlock ........ 26
Spruce ......... 10
Douglas Fir ..... 8
White Fir ....... 7
White Pine ...... 1
Organization and Personnel.
1. Graphical representation of organization, as follows:
GRAPH OMITTED SEE ORIGINAL
2. Analysis of personnel in table form. TABLE OMITTED SEE ORIGINAL
3. General discussion of personnel and organization from the point
of view of efficiency.
Practically the only forestry activity on the Quinaielt during 1926
was timber sale administration. Under normal market conditions timber
operations are in progress during the entire year, with the exception of
a few days suspension during Xmas and 4th of July shut-downs. Because
of the isolated location of the logging camps, the heavy timber (90% of
which is or will be allotted), the inclement weather, and the necessity
of scaling logs as they are loaded on cars, the Quinaielt presents
peculiar difficulties in timber sale administration. It is believed
that the present organization is functioning in a very efficient manner.
The Office records are kept on prescribed forms and posted promptly
according to instructions, the field work is kept constantly up to date,
especially in regard to pick-up scale which is never more than two weeks
behind actual logging operations. The employee in charge of each unit
keeps a map of that unit showing the location of each camp, railroad
spur, landing (by numbers), and the cut over area on which pick-up has
been made in crayon, using a different color for each year. This map
record is kept in the Hoquiam office on unit maps and also on a large
cloth backed map of the entire reservation.
4. Total number of forest employees.
Positions are authorized for fourteen regular employees. During the
fiscal year 1926 five regular employees were on duty during the entire
year, and seven regular employees were on duty for part of the year.
Ten temporary employees, which were hired only during the necessity of
such employment, were on duty for short periods.
5. Number of acres to each employee.
Number of positions authorized (regularly) ... 14.
Timbered area of reservation .... 195,571.24.
Acres to each employee ..... 14,000.
I. General Expense, Forestry.
1. Analysis of items included under this cost feature.
(a). Office Salaries.
(b). Cost of Forestry Sedan.
(c). Expenses not otherwise classified.
General Expense, Forestry Total Cost Amount Unit Cost Classification
of Operating
Expenses
.01 Salaries and Wages Regular $1423.34
Employees
.02 Salaries and Wages Irregular ____
Employees
.03 Materials and Supplies 675.65 .04 Repairs and Preservation of ___
Property
.05 Traveling Expenses ____ .06 Expenses not otherwise 19.50
classified
Gross Operating Cost $2118.49
II. Operation of Forestry Automobiles.
1. List of automobiles.
(A) #5, August 3, 1925 ...... #6, June 1, 1926
(B) Ford Tudor Sedan ........ Ford Light Truck
(C) H. B. Steer ............. H.L. Bower
(D) 9,625 ................... 775
(E) $307.68 ................. $12.25
(F) $.034 ................... $.016
(G) Good .................... Excellent
2. Cost of Operation of all Automobiles Operation Automobiles Miles
Travelled Amount Unit Cost
10,400 per mile
Classification of Operating Expenses .01 Salaries and Wages, Regular ---
Employees
.02 Salaries and Wages, Irregular ---
Employees
.03 Materials and Supplies $155.46 .04 Repairs and Preservation 98.72
of Property
.05 Traveling Expenses --- .06 Expenses not otherwise 65.75
classified
Gross Operating Cost $319.93 $.03
To the above should be added $18.63 which is the amount paid for
automobile expenses by Steer and paid from another fund. Only the
amount paid by the Taholah Agency ($319.93) is used in a later
compilation.
III. Operation of Agency Sawmill.
There is no sawmill operated by the Taholah Indian Agency.
IV. Fire Protection.
1. Outline system of control.
Until recent years, until operations started on timber sales, no
timber was cut on the Quinaielt Reservation. Conditions under which a
fire will burn in green timber are very unusual, if not improbable.
With the area of logged off land increasing year by year, and the
construction of the Olympic Highway from Quinaielt Lake to the Queets,
throwing open the entire northern part of the reservation to campers and
vacationists, the problem of forest fires on the Quinaielt will become
more acute each year.
Lumber companies operating on the reservation must bear primarily the
responsibility of fires in their respective sale areas, although the
Service men in charge of the various units have been appointed as Deputy
State fire wardens and are under instructions to see that State
regulations and Federal requirements (as contained in timber contracts)
are rigidly enforced.
During the fire season temporary forest guards are employed on road
and trail work, and are immediately available in case of forest fires.
With the expected completion of the Olympic Highway from Quinaielt Lake
to the Queets during the present fiscal year (1927) a system of
patroling this highway should be provided for, as well as a patrol of
the Taholah Moclips road. Among fire fighting equipment available at
the Agency are two "Ross" gasoline pumps and 800 feet of 1 1/2" hose.
2. Discussion of character of fire season.
The relative humidty on the Quinaielt is very high, and almost
nightly fogs in the summer, especially along the coast, materially
reduce the fire danger. The annual precipitation is relatively high,
being around 70 inches, a very small part of which normally falls during
the summer months. Due to the proximity of the ocean, there are
generally steady winds, the velocity of which is usually not high, and
nights are apt to be calm during the fire season.
3. Analysis of forest fires as outlined on Form 5-483 (following).
The three fires occuring during 1926 were confined, with the
exception of about 5 acres, to cut over land. Tentative reports of
these fires were included in the 1925 report, to which reference should
be made. Two of the fires were on the Pt. Grenville Unit, and the
third, which was caused by one of the first two, occurred in the Moclips
Unit. Fire Protection Area Under Total Cost Unit Cost
Protection Amount per acre
Classification of Operating 195,571.24 $972.24 $.005
Expenses
.01 Salaries and Wages Regular 96.27
Employees
.02 Salaries and Wages Irregular ___
Employees
.03 Materials and Supplies 777.17 .04 Repairs and Preservation 98.80
of Property
.05 Traveling Expenses ___ .06 Expenses not otherwise ___
Gross Total Cost $972.24 $.005
5. Discussion of the problem .......
The question of fire protection on the Quinaielt will yearly
become more acute as the area of cut over land becomes larger.
This problem is directly related to the method of slash disposal
followed after logging operations. A request is now before the
Office to have a special investigation made of slash disposal
methods in Grays Harbor generally, and to determine the best
course to follow on the Quinaielt. On the results of this
investigation and whether or not the findings of the same are
approved depends the plan of organizations of a system of fire
protection on cut over lands, for it is with cut over lands that
we are primarily, if not entirely concerned. As mentioned above
the contracting concerns are held responsible for the protection
from fire of their respective sale areas, with Indian Service men
enforcing State and Federal regulations. Temporary forest guards
with the usual equipment supplemented by two gasoline pumps, are
available for duty in case of a forest fire outside a timber sale
area.
V. Grazing Managment.
There is no grazing on the Quinaielt Reservation.
VI. Construction and Maintenance of Roads and Trails. Roads and
Trails Total Number Total Unit Cost
of Miles Cost per mile
Classification of Operating Roads -3 Amount
Expenses Trails-40
.01 Salaries and Wages, Regular $286.29
Employees
.02 Salaries and Wages, Irregular 6482.00
Employees
.03 Materials and Supplies 890.20 .04 Repairs and Preservation ---
of Property
.05 Traveling Expenses --- .06 Expenses not otherwise classified 126.45
Gross Total Cost $7783.94 $2594.65 3. Analysis of new
construction.
No new trails were constructed during the year 1926. Under the
direction of F. M. Wilkes, about five miles of new wagon road,
connecting the previously constructed ends of the Taholah-Moclips
road, was located, and some work in clearing the right of way was
done during 1926. This road, however, will be constructed during
1927. $50,000.00 is available for this work, or about $10,000.00
per mile.
VII. Telephone Operation and Construction.
1. Inventory.
(A.) Name of line. Taholah
(B.) Terminals. Taholah-Moclips
(C.) Length. 9 1/2 miles.
(D.) The line is a mixed tree and pole line, about 3 miles
pole, and 6 1/2 tree.
(1). Insulators -- 700 pd-6-Western Electric.
(2). Wire -- #10 B 2 Galvanized
(3). Size of poles -- about 26' with 7" top.
(4). Value -- Unknown. (G). Present condition -- fair.
2. Cost of Operation (Maintenance). Telephone Lines Total Number
Total
of miles Cost Unit Cost
Classification of Operating Expense 9 1/2 Amount per mile .01 Salaries
and Wages, Regular Employees ------ .02 Salaries and Wages, Irregular
Employees $62.00 .03 Materials and Supplies ------ .04 Repairs and
Preservation of Property ------ .05 Traveling Expenses ------ .06
Expenses not otherwise classified ------ Gross Total Cost
3. No new construction during the year.
5. No proposed construction.
VIII. Miscellaneous Improvements.
None.
IX. Miscellaneous Non-Forest Work.
(a). The expense incurred under this activity represents the time
of a forest employee used in scaling logs and other materials used
by contractors in building the Olympic Highway from Quinaielt Lake
to the Queets.
Non-Forest Work Total Cost Amount Unit Cost Classification of Operating
Expenses .01 Salaries and Wages Regular $217.30
Employees
.02 Salaries and Wages Irregular ___
Employees
.03 Materials and Supplies ___ .04 Repairs and Preservation of ___
Property
.05 Traveling Expenses ___ .06 Expenses not otherwise ___
classified
Gross Total Cost $217.30
X. Timber Sale Administration.
1. Analysis by units.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
3. Total Cost of Administration and Income. Timber Sales Volume Cut
Total Cost Unit Cost
per M
Classification of Operating Expenses 122,594,910 $14,570.33 $.11S .01
Salaries and wages, Regular Employees 13,566.46
(A) Scaling 9576.33 (B) Marking 1001.91 (C) Supervision 2966.22
.02 Salaries and wages, Irregular Employees --------- .03 Material and
supplies 747.55 .006 .04 Repairs and Preservation of Property 6.00 .05
Traveling Expenses 10.55 .06 Expenses not otherwise classified 259.77
.002 Gross Total Cost 14,570.33 .118
Total Operating Income
Operating Income Volume Out Value of Out Exp. Acct. Tbr. Unit Income
per M
122,594,910 $369,554.14 $29,564.34
5.34
Ednot Operating Expenses 14,570.33 .12 Net Gain 14,994.01 .12
4. General discussion of timber sales by units.
(A). Attitude of purchaser.
(1). Moclips, Unit, Aloha Lumber Company, Satisfactory.
(2). Pt. Grenville, Unit, M. R. Smith Lumber and Shingle Co.
Improved since last year. Fairly satisfactory.
(3). Cook Creek Unit, Hobi Timber Company. Satisfactory.
(4). Quinaielt Lake Unit, Ozette Railway Company.
Satisfactory.
(5). Mounts Unit, Aloha Lumber Company, satisfactory.
(B). Efficiency of Forest Officers.
Due to the large number of allotment selections that have been
made in what was tribal timber, the duties of forest officers on
timber sale work require very painstaking efforts in order that
the timber may be properly segregated and credited to the proper
description of land. We have a very efficient timber sale
organization at the Taholah Agency. All phases of the work are
attended to promptly especially in the matters of correct
segregation of the timbers accurate and prompt reports; and the
making of a pick-up scale after operations.
5. Analysis of Controlling Accounts on each unit as of June 30,
1926.
TABLE OMITTED SEE ORIGINAL
8. Summary of work to be completed during the coming year (1927).
A. List of units on which re-adjustment becomes effective.
Stumpage re-adjustment becomes effective on the Cook Creek Unit
on April 1, 1927.
B. No bonds expire during the coming year.
C. List of allotments, dates and amounts of advance payments
which will come due.
TABLE OMITTED SEE ORIGINAL (2 PAGES)
X a. TIMBER SALE ADMINISTRATION (Reservations other than Quinaielt)
Timber contracts in force June 30, 1926.
Chehalis
Stanley Petoie #3a........................ 37.50
Wm. Choke #25.............................1225.00
Chehalis Tie Unit.........................1225.00
Jacob (ILLEGIBLE) #32 (Fir)............... 330.00
Jacob (ILLEGIBLE) #32 (Cottonwood)........ 510.00
Niscually
Peter Martin #22 ......................... 281.25
James Nimrod (lieu lands) ................ 130.00
Georgetown or Shoalwater
Sale to Armstrong ...................... 15150.00
Squaxin Is.
Tobilitsa #21 ............................. 245.00
Public Domain
Total Value ..............................19608.75
Note -- The field work tn connection with these sales is done without
cost to the Taholah Agency, since appraisal, etc., is done by Steer and
paid from other funds.
DEPARTMENT OF THE INTERIOR
U.S INDIAN SERVICE
FORESTRY BRANCH
Report No. . . .
Period from . . . 192
to . . . 192, inc.
I. O. File No.________ QUINAIELT Indian Reservation
(OPERATING INCOME)
Opening Balance $16,273.34 Credited during the period $22,883.36
Total $39,156.70
Deductions during the period $18,250.26 Closing Balance $20.906.44
ANALYSIS OF CLOSING BALANCE
Allotted Unavailable funds Approved July 8th 1926
Supervisor of Forests
Superintendent
Operation.
Feature Operating Operating Net Net
Costs Returns Operating Operating
Income Expense
1. General Expense $2,118.49 --------- --------- 2,118.49 2. Operation,
Agency Autos 319.93 --------- --------- 319.93 3. Operation Sawmill
-------- --------- --------- -------- 4. Fire Protection 972.24
--------- --------- 972.24 5. Grazing Management -------- ---------
--------- -------- 6. Roads, Trails 7,783.94 --------- ---------
7,783.94
A. Construction 1575.50
B. Maintenance 5240.44 7. Telephone Lines 52.00 --------- ---------
52.00
A. Construction -------
B. Maintenance 52.00 8. Miscellaneous Improvements -------- ---------
--------- -------- 9. Miscellaneous Non-Forest Work 217.30 ---------
--------- 217.30 10. Timber Sale Administration 14,570.33 22,883.36
6,313.03 -------- Totals 26,034.23 22,883.36 6,313.03 11,463.90 Total
Net Operating Expense 5,150.87
TABLE OMITTED SEE ORIGINAL
HES-003-2145-2168-B
HES-003-2145-2168
IIA26.2
260724
CORRESPONDENCE
LUMBERMAN ; TAHOLAH INDIAN AGE
Forestry
JPK
July 24, 1926
Commissioner of Indian Affairs
Washington, D. C.
My dear Sir:
Reference is made to Office letter of May 21, 1926 instructing me to
report to the Quinaielt Reservation and report on timber sale activities
and office recording and accounting methods in use on this reservation.
In this connection the following report is submitted.
The various logging operations were carefully gone over with Mr. H.
B. Steer, Supervisor of Forests, in sufficient detail to permit of my
obtaining first hand knowledge of the methods of logging employed by the
various operators.
In the Moclips sale area, but one side was operating on Indian timber
at the present time, this timber being removed at a rate of 70 M feet
per day. Supervision of operations on this unit are in charge of
Phillip A. Stover, Scaler, and the scaling is being done largely by J.
P. Hardy. The utilization of the timber is fairly close, and there is
left upon completion of logging operations, as little merchantable
timber as is possible in these types of operations.
Operations in the Point Grenville logging unit are in charge of
Lester C. McKeever, Forest Ranger, assisted by A. W. McCalvy, Scaler.
But one side is operating on this unit at the present time. While the
operations of the Smith Lumber and Shingle Company of this unit do not
appear to be particularly efficient, they are, at the present time
utilizing the timber quite closely. There are, however, large areas
logged in the past on which the utilization was very poor and which
resulted in heavy pick-up on logged areas.
The operations on the Cook Creek Unit are in charge of L. P. Branson,
Forest Ranger, assisted by the following three scalers, each of whom
scale for one side -- Clarence Shaw, Paul Broderson, and Malcolm A.
Campbell. This company is now, and has been for some time, operating at
top speed, and are removing a large volume of timber, as evidenced by
reports submitted to the Office. The utilization has generally been good
and they are, at the present time, a very efficient organization,
cutting and removing all the merchantable timber at as low a cost as it
is possible to do.
Operations on the Quinaielt Lake unit to date, have consisted
entirely of the building of railroads and constructions of improvements
necessary for the removal of timber. It is expected that operations on
this sale will be under way within the next two weeks. These operations
to date have been in charge of Frank E. Briggs, Forest Ranger, who has
scaled all the timber out along the right of way and run out and blazed
allotment lines over the area that will be logged in the vicinity of the
present camp.
The supervision and scaling on all the above units is being carried
cut in an efficient and business-like manner. All allotment lines are
run out, blazed and stamped in advance of cutting and logging
operations, and the scaling is done by scalers, one stationed at each
side, the logs being scaled on the car as they are loaded. This permits
of accurately segregating and crediting all logs to the area from which
they are cut and enables the scaler to obtain a good view of the entire
log such that he is in the best position possible to pass on the
merchantable scale within each separate log. The method of entering,
recording, checking, and submitting scale reports, which has been
referred to the Office in detail on several occasions, is such as to
afford an accurate check on scaling records and further permits of very
few errors in the entering or transferring of scale records. In the
keeping of records in the office at Hoquiam, the system is in accordance
with the new system of accounts placed in effect on July 1, 1924, except
that the 'Allotment Scale and Money Records' are kept in allotment books
5-950, 5-951. A careful check is made of all accounts at the end of
each month in order to insure that no errors in entries or computations
have been made during the month and that 'Report of Timber Cut, R-486,
are correct.
All phases of the work are kept up to date, allotment lines are run
in advance, scale books are brought up to date each day, pick up scale
is made directly upon completion of operations on 'each turn or tree',
entries are made in the controlling account, timber scale and money
records immediately upon receipt of scale bills and segregations, are
made once a month.
It is not believed that the system of keeping the timber accounts in
the office require any mention except that they are kept strictly up to
date, are checked so as to eliminate all reasonable chances of error,
and are, in my opinion, in strict accordance with the method placed in
effect on July 1, 1924. However, the method of keeping various cost
accounts are at variance with my understanding of methods to be used in
a number of particulars. In view of the fact that the methods employed
have been in use at this agency for some time, it would appear that this
method is entirely satisfactory to the Office. On form 5-466a "Timber
Sale Statement of Operating Income and Operating Expense," under the
heading 'Status of the Fund Expense Account Timber,' there are added to
the 'opening balance' for each month the amounts credited during the
month, giving the "total" for that month. The deductions during the
period cover salaries and other expenses paid from this fund for the
month involved. On all salaries of the regular employees on which a 2
1/2% retirement deduction is made, the total salary is included every
month. This account, therpfore, will differ from the same account in
the 'appropriation ledger' at the end of each quarter. In order to
check this account as submitted during the first two months of any
quarter on form 5-486a, with the appropriation ledger, it is necessary
to subtract from the 'deduction during the period' the amounts of the 2
1/2% deductions, and in my opinion, the statements as submitted on this
form from month to month do not reflect the status of this account
except at the end of the quarter, as these deductions are actually not
made on the appropriation ledger except at the end of the quarter.
On pages two and three of form 5-486a under the heading "Cost
Analysis of Timber Sale Units", there are included only such costs as
are paid from the fund "Expense Account Timber." Expenses paid from any
other fund such as "Industrial Work and Care of Timber" are not included
in this account, and this cost analysis, therefore, would not be a true
reflection of the cost of administration of sale units to the extent
that cost features, properly chargeable to this activity, have been paid
from funds other than "Expense Account Timber." This 'Cost Analysis'
should include all cost items properly charged against timber sale
activities regardless of the funds from which paid and no attempt should
be made to restrict the cost account items included in this analysis to
those paid from the fund "Expense Account Timber." In the keeping of the
cost analysis at this agency, the check as to the accuracy as to the
cost account, appears to be that the total cost as shown on the third
page under the heading of 'Cost Analysis of Timber Sale Units' should
check with 'deductions during the period' as listed on the first page of
this statement. These items need not necessarily check and would very
seldom be the same as I understand the present cost accounting system.
The actual deductions (disbursements) made from this fund might greatly
exceed the actual cost of timber sale administration, or in the event
that a considerable portion of the cost of administration was paid from
other funds, the actual cost of timber sale administration as shown
under 'Cost Analysis from Timber Sale Units' would greatly exceed the
Deductions during the period', as shown on the first page of this
report.
It is further noted that equipment such as automobiles purchased for
use in connection with timber operation from the fund "Expense Account
Timber" have been charged as a cost against timber sale supervision for
the month purchased and the cost prorated among the different sale units
now in effect. In addition to the original cost of the car, other
expenses incurred in connection with the use of said cars, (gas, oil,
repairs, etc.) are charged under 'Auto Expense.' This procedure makes
the 'Cost Analysis of Timber Sale Units' nothing more than an
expenditure rather than a cost account, and it is an expenditure account
only in so far as it applies to items paid from the account "Expense
Account Timber."
It is my understanding that in the keeping of cost analysis on all
forestry operations, timber sales included, that equipment shall be
carried in the same manner as in other cost accounts covering agency
(non-forestry acitivities). It is also my understandtng that auto
expense shall be charged against forestry activities on a mileage basis
of 7 cents a mile and that a comparison of the amounts charged to th
cost features 'Operation Forestry Autos,' over a given period with the
arbitrary value obtained by charging 7[ a mile, will afford a mean of
arriving at a depreciation figure for the use of government cars.
Equipment such as adding machines purchased for use in connection with
timber sale operations from the fund "Expense Account Timber," which,
under the procedure in effect at this agency, would be charged against
timber activities at the time of purchase, should not, under the cost
account system in effect, be charged against activities at any time, but
should be carried as equipment necessary for the proper conduct of
business for which purchased.
In view of the fact that no exception has been taken by the Office to
the method of cost accounting in effect at this agency, it has been and
is assumed that this system meets with the approval of the Office. In
case the Office desires that the cost accounting system to be used at
this agency be made to conform with instructions issued from the Office
on July 1, 1924, this agency should be so advised, and if it is intended
that this cost accounting system be generally used, I would desire to be
informed accordingly in order that I would be in a better position to
report on accounting systems used in connection with forestry operations
on reservations that I will have occasion to visit in the future.
It is my understanding that the system used here was adopted largely
because of the fact that practically the only activities on this
reservation consisted of timber sale administration, and that in view of
the bulk of the expenses being paid from "Expense Acount Timber," the
disregarding of any expenses paid from other funds from month to month
and, further the making of the total cost of timber sale administration
as shown on page three of form 5-486a correspond with 'deductions during
the period as shown on page one of said form, would make this method so
much easier and so much more nearly fool proof that this deviation from
the method outlined on July 1, 1924, would be advisable.
However, I am of the opinion that in order that the 'Timber Sale
Statement of Operating Income and Operating Expense' should truly
reflect activities on the reservation in question, and in order that it
would indicate a true cost account in accordance with regulations and
instructions issued from the Office, that the method here used should be
made to conform with said instructions and that the following steps
should be taken at this agency to make these changes possible:
1. That under the heading 'Status of the Fund Expense Account
Timber' (Operating Income) -- Deductions during the period' --
should be the actual deductions made during that month and that
this item should check with the balance shown in the appropriation
ledger at the close of each month. This would mean in effect that
'Retirement Deductions' (4%) would show as a deduction only at the
end of each quarter.
2. Auto expense should be shown at the rate of 7 cents per
mile and properly charged to the timber sale or other forestry
activities for which incurred.
3. Equipment should be carried as such, and the cost thereof
not charged to timber sales or other forestry activities for which
it was prchased as a 'Cost Account' item.
4. The 'Cost Analysis of Timber Sale Units' should contain all
items of cost properly chargeable to timber sale activities
regardless of the fund from which paid. Items such as salaries,
travel expense, or expendable materials used in connection with
timber sale activities, should be charged against sales for the
period covered.
5. On page three, under 'Total Cost,' there should be shown
what portion of this cost has been paid from "Expense Account
Timber" and what portion has been paid from other funds.
This would make a 'Cost Analysis of Timber Sale Units' complete as
regards this activity (except for the salary and expenses of the Forest
Supervisor) and the statements sent in from month to month and at the
close of the year, would properly indicate the cost of such activity.
In case my understanding of keeping these accounts is incorrect and the
changes I suggested would not be in line with procedure desired by the
Office, I would like to be advised accordingly.
In conclusion I wish to state that the timber sale administration is
such as would call for no criticism nor suggestions as to improvements
of methods of administratton. All work is absolutely up to date and of
a high standard. The rangers in charge of each sale unit all have their
work well in hand, and all that would be necessary to take care of
additional cutting, through the starting of additional sides, would be
the placing on an additional scaler and there would be no danger of logs
not being properly scaled or being properly credited to the respective
cutting areas. The scalers, men in charge of sale units, the supervisor
generally in change of all activities, and entire forestry organization,
are to be commended for the high standard of their work, and even though
I am of the opinion that the present method of keeping the cost accounts
should be modified to conform with regulations made effective July 1,
1924, the work actually done under the present system is of the standard
to deserve nothing but favorable criticism.
Very respectfully,
Lumberman
(ILLEGIBLE)
HES-003-2169-2174
HES-003-2169-2174
IIA26.1
COMM OF INDIAN AFF
250710
CORRESPONDENCE
SUPERVISOR ; TAHOLAH INDIAN AGE ; INDIAN OFC
HES-003-2175-2197-A
HES-003-2175-2197
IIA25.3
COMM OF INDIAN AFF
250711
CORRESPONDENCE
SUPERVISOR
Forestry
JPK
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
There is transmitted herewith, through the Taholah Indian Agency, the
Forestry report for the fiscal year 1925 as requested by the Office
under date of July 2 and on prescribed forms.
In order that the Office may have full information as to the costs of
timber work in this jurisdiction, I am submitting herewith a list of my
expenditures which should be added, I believe, to the item "General
Expense," of the Taholah Agency Accounts, feature I of the attached
report.
Balance July 1, 1984 0.00
Deposits to my official credit $3635.50
Returned to Treasurer 6-30-25 422.24
Expenditures $3,213.25
Add amount of Retirement Deduction 75.00
Actual Expense 3,288.26
Salary $3,000.00
Auto Expense 205.50
Other Expense
subsistence per diem Misc 82.76
Total
Very respectfully,
Supervisor of Forests at Large
Approved and forwarded to the Indian Office
INTRODUCTION:
General Description. (Narrative)
1. Area and Location.
The Quinaielt Indian Reservation is located in the extreme western
central part of the State of Washington, and embraces 223,840 acres
(including 13,242.54 acres of fee patented allotments).
2. Surface features, topography, etc.
The general topography is level with the exception of a strip about
five miles in width along the Pacific Ocean and a small area of
foothills of the Olympics in the extreme North Eastern part. Four
rivers (Queets, Raft, Quinaielt, and Moclips) flowing West constitute
the main drainage system, but on the whole the reservation is very
poorly drained, resulting in large areas of Cedar swamp and several
large prairies which are under water in the winter.
3. The Forest: species, types, development, etc.
The principal timber trees are Cedar, Spruce, Douglas Fir, Hemlock,
White and Amabilis Fir, and White Pine, and the forest types are those
typical of the West slope of the Cascades. Because of poor soil
drainage, the stand of timber is very uneven, heavy and light stands of
timber, and Cedar swamp and open prairie being mixed heterogenously.
Until recent years the Reservation was very inaccessible, there being
no wagon roads nor railroads, but only a few foot trails. Five large
sales of timber have been made since 1921, and four different logging
railroads, are being built in a general northerly direction, and the
timber on the reservation which has not been sold will be marketable
within a few years. The Olympic Highway is being built West from
Quinaielt Lake, and will be completed within the coming year, making the
Queets and the entire nortern end of the reservation readily accessible
by auto.
4. Statistics.
(A). Estimated forest resources June 30, 1925.
Acreage II Pd. Ft. Value Total Value
Per M
Alloted land 41,829.09 975,000 $3.00 $ 2,925,000.00
Unalloted land 167,568.75 2,950.000 $3.00 $ 8,850,000.00
Total 209,597.82 3,925,000 3.00 11,775,000.00
(B). Estimated Value of timber lands, exclusive of
timber, June 30, '25.
Acreage Value Per Acre Total Value
Alloted land 41,829.09 $1.00 $ 41,829.09
Unallotted land 167,558.72 .50 85,784.36
Total 209,597.82 125,613.45
(C). Estimated percentages of predominating species
Species Estimated percentage
Cedar 48
Hemlock 26
Spruce 10
Douglas Fir 8
White Fir 7
White Pine 1
Organization and Personnel.
1. Graphical representation of organization. GRAPH OMITTED SEE
ORIGINAL
2. Analysis of personnel in table form. TABLE OMITTED SEE ORIGINAL
3. General discussion of personnel and organization from the point
of view of efficiency.
Practically the only forestry activity on the Quinaielt is timber
sale administration. Under normal market conditions timber operations
are in progress for 12 months each year, with the exception of a few
days suspension at Xmas and 4th of July. Because of the isolated
location of the logging camps, the heavy timber, (90% of which is or
will be alloted) the inclement weather, and the necessity of scaling the
logs as they are loaded on cars, the Quinaielt presents peculiar
difficulties in timber sale administration. It is believed that the
present organization in functioning tn a very efficient manner, as has
been reported to the Indian Office by inspecting officials. The office
records are kept on prescribed forms, and are posted promptly. The
field work is kept constantly up to date especially in the case of
pick-up scale, which is never more than two weeks behind actual logging
operations. The Ranger or Scaler in charge of each unit keeps a map of
that unit up to date showing the location of each camp, railroad spur,
landing (by numbers) and the cut over area on which pick-up has been
made in crayon, using a different color for each year. This map record
is kept in the Hoquiam office on unit maps and also on a large cloth
backed map of the entire reservation.
Operations for the fiscal year 1925 were 50% of normal (the actual
cut was a little better than 70 million feet) due to adverse market
conditions. Each operation normally calls for one man in charge and one
scaler for each side, of which there are usually two.
4. Total number of forestry employees.
Positions are authorized for 16 regular employees. During 1925 there
were 6 regular employees employed during the total year, and 17
temporary employees, only 7 of which were employed on timber sale work.
All temporary employees were employed for short periods of time, as they
were needed.
5. Number of acres to each forestry employee -- 32,000.
I. General Expense, Forestry.
1. Analysis of items included under this cost feature.
a. Salary of timber clerk.
b. Office equipment.
c. Rent of Supervisor's quarters, fuel, etc.
2. Cost of General Expense.
General Expense, Forestry Total Cost Unit Cost Classification of
Operating Expenses Amount .01 Salary and Wages Regular Employees
$1,320.00 .02 Salary and Wages Irregular Employees -------- .03
Material and Supplies 107.41 .04 Repairs and Preservation of
Property -------- .05 Traveling Expenses -------- .06 Expenses not
otherwise classified 545.95 Gross Operating Cost $1,971.36
II. Operation of Forestry Automobiles.
(A). Car #2 purchased June 27, 1922.
(B). Ford Touring
(C). Operator -- H. B. Steer
(D). Total Miles travelled 10,000
(E). Cost per mile $.043
(F). Total Cost of operation $431.06
(G). General Condition -- poor.
Operations Automobiles Miles Traveled Amount Unit Cost
10,000 per mile
Classification of Operating Expenses .01 Salary and Wages Regular
Employees ------ .02 Salaries and Wages, Irregular Employees .03
Materials and Supplies (21.54) $206.99 .021 .04 Repairs and Preservation
of Property (144.02) 144.32 .014 .05 Traveling Expenses ------ .05
Expenses not classified (storage) (60.00) 79.75 .008 Gross Operating
Cost (225.56) 431.56 .043
Explanation: The figures given in parentheses are the amounts paid
by the Taholah Indian Agency for the auto expense of the car used by Mr.
Steer. The difference between the figures in parentheses and the
figures shown in the "Amount" column were paid by Mr. Steer from funds
other than Taholah Agency. Only the amounts actually paid by the
Taholah Agency are used in a later compilation, but the gross total of
auto expense is shown here in order that accurate information as to the
expense of upkeep of the car may be shown.
III. Operation of Agency Sawmill.
There is no Service sawmill in this jurisdiction.
IV. Fire Protection.
Outline of system of control.
In past years three temporary forest guards have been employed during
the summer months, and stationed at Quinaielt Lake, the Queets, and near
Moclips to warn campers and others against making camp fires and to
patrol their respective regions for fires. For the past two years the
temporary guards have been placed at work on roads and trails with the
understanding that they would be immediately available in case of fire,
with the result that considerable work has been done on the
Taholah-Queets Trail and the Taholah-Moclips road. Until recent years
no timber has been cut on the Quinaielt Reservation, and conditions
under which a fire will burn in green timber and very unusual if not
entirely improbable. With the area of logged off land increasing year
by year, and the construction of the Olympic Highway from the lake to
the Queets, throwing open the entire northern part of the reservation to
campers and vacationists, the problem of fires on the Quinaielt will
become more and more acute year by year. The present plan is to place
one reliable fire guard at Quinaielt Lake and one at Taholah next summer
and furnish them with a gasoline pump and about 500 feet of hose. The
pumps and hose have been purchased. The guard at Quinaielt should
patrol the Olympic highway daily in an auto, while the guard at Taholah
would be available for fires along the beach. It is felt that lumber
companies operating on the reservation must bear primarily the
responsibility of fires in their respective sale areas, although the
Service men in charge of the various units have been appointed as Deputy
State Fire Wardens and are under instructions to see that State
regulations and Federal requirements (as contained in the timber
contracts) are rigidly enforced.
2. Discussion of character of fire season, etc.
The relative humidity on the Quinaielt is very high, and almost
nightly fogs in the summer, especially along the beach, materially
reduce the fire danger. Due to the very dense timber and the large
amount of material on the ground, when a fire "gets away" on logged off
land, in other words when it gets out of control. it is practically
impossible to put it out by ordinary means. The only feasible means of
control are to back fire from green timber or a railroad grade, and let
the fire burn out. In case of a heavy wind it is impossible to do
anything. The only thing to do in this country is to patrol thoroughly
and get the fires while they are small, as ordinary methods of
trenching, etc. are absolutely useless here. The lumber companies
patrol their railroads in summer, and smoking in the woods is absolutely
prohibited.
3. Analysis of forest fires.
In August, 1924, a fire was started at the mouth of Wreck Creek by
campers, which was extinguished at a cost of $38.70 in regular and
irregular labor. This fire did no damage worth mentioning, but burned
in the drift logs and just behind the drift logs along the beach.
On June 27, 1925 two fires started on the Reservation, one about one
half mile from the mouth of Wreck Creek, and the other from slash
burning on the southern end of the Pt. Grenville Unit. Embers from the
latter fire blew over one mile of green timber and started a very bad
fire in the Moclips Unit, which burned over all the logged off land in
the eastern end of that unit, destroyed the Aloha camp, and burned out
three large railroad trestles. It will be impossible to get complete
and accurate data compiled as to these fires and submit this report as
promptly as is desired in view of Office letter of July 2, 1925 to the
Superintendent. The Indian Service lost approximately $300.00 worth of
equipment which was burned when the Aloha camp was lost, but it has been
definitely been ascertained that the fire damage to green timber up to
this time has been negligible, and at the present writing the damage to
logs which were felled and bucked on the reservation has also been very
small. The Aloha and Hobi Companies have been fighting this fire with
their entire equipment, being materially aided by the Smith Company, and
it is now believed that the fire is under control.
In the discretion of the Office a complete report can be made of
these fires to file with this report, or in the absence of instructions
from the Office, these fires will be included in the report for the next
fiscal year.
With regard to the fire in the Aloha workings, it is interesting, at
least, to note that perhaps the hottest fire occurred on an area that
had previously been burned over three times. This I know from personal
observation, and it is mentioned to show the amount of debris and
rubbish which is left on the ground after logging.
It is estimated that the loss to the Aloha and Hobi Companies will be
in excess of $60,000.00 the larger part of which has been suffered by
the Aloha Company. Fire Protection Area under Total Cost Unit Cost
protection per acre
209,397.82
.01 Salaries and wages regular employees 32.70 .02 Salaries and wages
irregular employees 16.00 .03 Materials and supplies 492.50 .04 Repairs
and preservation of property ------ .05 Traveling expenses 10.25 .06
Other expenses ------ Gross total cost 551.45 .0026
5. Discussion of problem: improvement; needs; etc.
As mentioned above two fire pumps have been purchased (as per the
attached cut, and it is planned during the coming season to place one of
these pumps at the lake and the other at Taholah which are considered
strategic points for fires not inside timber sale areas.
With regard to fires in timber sale areas the Service employee in
charge of each Unit is a Deputy State Fire Warden under instructions to
enforce not only State regulations, but also to see that thp provisions
of the approved form of timber sale contracts with regard to fire
prevention and suppression are carried out.
V. Grazing Management.
There is absolutely no grazing on the Quinaielt Reservation.
VI. Construction and Maintenance of Roads and Trails. Roads and
Trails Miles Total Cost Unit Cost per
Road -3- Mile
Trails 40
.01 Salaries and Wages, regular employees 816.07 .02 Salareis and Wages,
irregular employees 417.00 .03 Materials and Supplies 9.10 .04 Repairs
and preservation of property ------ .05 Traveling expenses 3.35 .06
Other expenses ------ Gross total cost $1245.52 $415.17* *This cost per
mile is based on the approximately three miles of wagon road between
Moclips and Taholah on while all the money shown above was expended by
temporary forest guards and irregular labor. No trail work was done
during the past year.
3. No new trails or roads were constructed during the past year.
4. ---
5. No construction is proposed.
VII. Telephone Operation and Construction.
1. Inventory
(A). Name of line. Taholah
(B). Terminals. Taholah-Moclips
(C). Length. 9 1/2 miles.
(D). The line is a mixed tree and pole line, about 3 miles
pole and 6 3/4 tree.
1. Insulators 700 #d-6-Western Electric.
2. Wire #10 B.B. Galvanized.
3. Size of poles -- About 25' with 7" top.
4. Value Unknown.
(G) Present condition -- Good.
Telephone Lines Total number of miles Total Cost
9 3/4 Cost per mile
.01 Salaries and Wages regular employees ---- .02 Salaries and Wages,
irregular employees 50.00 .03 Materials and Supplies ---- .04 Repairs
and Preservation of property ---- .05 Traveling Expenses ---- .06 Other
Expenses ---- Total gross cost 50.00 5.12
3. No new construction during the year
5. No proposed construction
VIII. Miscellaneous Improvements.
None.
IX. Miscellaneous Non-Forest Work.
None.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
3. Total cost of Administration and Income, as follows:
Timber Sales Volume Cut Total Cost Unit Cost per M .01 Salaries and
Wages, 70,345,210 39,756.38
Irregular Employees
a. Scaling 67,167.12
b. Marking 313.95
c. Supervision 2,275.30 .02 Salaries and Wages,
Irregular Employees ---------
.03 Materials and Supplies 180.00 .04 Repairs and Preservation
of Property .75
.05 Traveling Expenses 9.75 .06 Other Expenses 747.20 Gross operating
total *10,694.08 *Covers only field expense salary of Agency timber
clerk, office equip- ment, or rent of Agency employees quarters.
Operating income Volume Cut Value of Out Exp. Acct. Tbr. Unit Income
Per M
70,345,210 $186,218.84 $14,897.53
$.08
Deduct Operating
Expense *12,872.31 .068 Total not Gain 2,025.22 .012 *See Form-485a
attached to this report.
4. General discussion of timber sales by units.
(A). Attitude of purchaser as to fulfilling the terms of the
contract with respect to stump height, utilization, etc.
1. Moclips Unit, Aloha Lumber Company, entirely satisfactory.
2. Pt. Grenville Unit, M. R. Smith Lumber and Shingle Company.
This Company maintains a system of continual protest against
sealing, proper utilization, and has even protested the prompt
payment of Advance Deposits. The pick-up scale on the Pt.
Grenville Unit has been and is entirely too high -- the matter has
been repeatedly called to the attention of officials of the
Company, and inspection by Indian Servtce offictals shows that Mr.
McKeever, who is tn charge of this unit, is making the pick-up
scale in a manner which is both fair to the Company and at the
same time just to the Indian owners of the timber. This report is
not made to give the office the impression that there is a
continual battle between the Smith Company and the Taholah Agency,
as the Agency has insisted and will continue to insist on a
reasonable compliance with contract provisions, however the files
of the Tahola Agency will show the continual protests that have
been made by the Company in the face of what we know to be fair
treatment.
3. Cook Creek Unit, Hobi Timber Company. Entirely
satisfactory.
4. Quinaielt Lake Unit, Ozette Railway Co. Entirely
satisfactory.
5. Mounts Unit, Aloha Lumber Company, entirely satisfactory.
(B). Efficiency of Forest Officers in fulfilling their duties.
1. Moclips Unit. P. A. Stover Scaler in Charge. Mr. Stover,
who is the only employee on this sale area at this time, has been
with the Service since February 4, 1924, is performing his duties
in all respects in an entirely satisfactory manner.
2. Pt. Grenville Unit. L. C. McKeever Forest Ranger in
Charge. Mr. McKeever, who has been with the Service since
September 27, 1922, is performing his duties in all respects in an
entirely satisfactory manner. A. W. McCalvy, Forest Guard
(Scaler) who entered the Service on June 4, 1923 is an old
experienced scaler and as competent as can be obtained.
3. Cook Creek Unit, P. P. Branson, Scaler in Charge. Mr.
Branson, who entered the Service on September 16, 1923, is
performing his work in an entirely satisfactory manner in all
respects. Mr. Clarence Shaw, temporary scaler, who has been with
us since January 1, 1925, is an exceptionally competent scaler,
and it is hoped that he will be given the opportunity to obtain
Civil Service standing in the near future. 4. Quinaielt Lake
Unit. F. (ILLEGIBLE) Briggs' Scaler in Charge. Mr. Briggs, who
entered the Service on July 9, 1925, is performing his duties in
an entirely satisfactory manner in all respects.
While it may seem from the above reports that a stereotyped form of
report has been used in setting forth the efficiency of these men, the
fact remains that the timber sale work in this jurisdiction is being
performed in a highly efficient and creditable manner, as has been
reported to the Office by Mr. Muck and others.
Two instances may be cited to show the Office that this efficiency is
a fact. When (ILLEGIBLE) who was in charge of the Moclips Unit, re-
signed without notice on March 9, 1925, the records of the sale unit the
field work were up to date and so complete that Mr. Stover took over the
responsibility of this sale area with no loss of efficiency. It is our
constant aim to keep our timber sale work up to date, com- plete and
accurate, and to know that this is being done. When the Aloha Camp
burned on June 27, 1925, destroying all the records in the scalers
cabin, it was possible to duplicate all these records except of course
the original (ILLEGIBLE) books, from those in the Hoquiam office. All
the scale books had been recently checked for errors, and all logs cut
and scaled had been reported, including pick-up scale, which was up to
date.
Due to the curtailment of logging operations during 1925 we have had
only a skeleton organization, employing temporary scalers as needed. As
has been reported to the office before, we can stand a high turnover in
scalers provided we have competent men continuously in charge of the
various units. TABLE OMITTED SEE ORIGINAL (2 PAGES)
8. Summary of work to be completed during the coming year.
(A). Stumpage re-adjust becomes effective on the Pt. Grenville
Unit April 1st, 1925.
(B). No bonds will expire during the coming year.
(C). List of allotments and amounts due follows.
X a. TIMBER SALE ADMINISTRATION (other reservations than Quinaielt)
Skokomish
74047-22 Sale of unit #3 to John Whittaker
still in progress Value $5,683.25
Additional sale to be advertised in near future Chenalis
57729-23 Sale to W. H. S. Clark still in Value 1,950.00
progress
85781-24 Sale to Blevin and Sullivan made on Value 1,225.00
Nov. 28, 1924
Additional sale now being advertised Niscually
One sale advertised but not sold. Georgetown
8381-25 Sale to Armstrong made Dec.18, 1924 Value 15,150.00
Total value under contract 24,008.25
Receipts into "Exp. Acct. Tbr." from above sales and
land sales during 1925--$302.20
Note----These sales are made and administered without cost to
the Taholah Agency, since appraisal, etc., is done by Steer
and paid from other funds.
XI. Recapitulation of Operating Costs and Returns from Operation.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
HES-003-2175-2197-B
HES-003-2175-2197
IIA25.3
250112
CORRESPONDENCE
SUPERVISOR ; TAHOLAH INDIAN AGE
Forestry
The Commissioner of Indian Affairs, Washington,D. C.
Sir:
There is transmitted herewith a report of the forestry work in the
Taholah jurisdiction for the calendar year 1924, together with a letter
of transmittal from Superindendent (ILLEGIBLE).
Please be referred to reports for 1922 and 1923, for it has not
seemed necessary to go into detail with regard to the peculiar
conditions pertaining on the Quinaielt Reservation or with regard to the
method of handling the timber sales here. The attached report is mainly
statistical.
Very respectfully,
(ILLEGIBLE)
Supervisor of Forests.
Forest Fire Control and Forest Improvement are very closely related
on this Reservation, and it is a difficult matter to keep these
activities entirely separate, for the three temporary forest guards,
whose employment is authorized for four months, are kept on trail or
road work but are immediately available in case of a forest fire.
Three temporary guards worked during the months of May and June on
the Taholah Queets trail which was in very bad condition. All windfalls
were cut out, parts of the trail were re-purchased and approaches from
the beach and rivers were re-built. Miles of trail rebuilt and repaired
were approximately three at a total cost of $427.55.
An additional appropriation or allotment of $500.00 from "Industrial
Work and care of Timber, Forestry 1925" was granted this Agency soon
after the beginning of the fiscal year 1925. After the first of July
the temporary forest guards were put to work on the Taholah-Moclips
road, and teams and additional men were hired from the additional amount
given us. It was not possible to do very much with the limited amount
of funds available, but places in the road which needed it the worst
were re-gravelled, and drainage ditches were dug for a distance of about
one half a mile between Point Grenville and Taholah. The cost of this
road work was $853.45. Materials and supplies purchased for use on road
and trail work amounted to $90.20. An additional amount of $9.00 was
expended from "Indian Moneys and Proceeds of Labor'. Ditching the road
is slow work because of the large amount of snags, roots, and windfalls
that must be blasted out.
The up-keep of the Taholah-Moclips phone line cost $67.50 during the
past year.
Three fires, outside of slash burnings at logging operations, were
reported during the calendar year. Two of those were on road
construction work on the Olympic Highway, both of which were
extinguished without expense to the government. One of these fires did
no appreciable damage, while the other killed and damaged 204 M feet of
timber which was cruised by Scaler F. B. Briggs. The road contractor
has been charged with the value of the timber destroyed or damaged, but
since he has experienced serious financial difficulties on his contract,
claim has been filed with the State Highway Division in the amount of
$258.00 and will be paid in time.
The third fire was caused by campers leaving a camp fire at the mouth
of Wreck Creek on the beach, and while the fire did no damage, being
confined to drift logs along the beach, at times it threatened green
timber. The cost of fighting this fire was $48.70. The temporary
forest guards were used on this work.
There is attached to this report on Form S-486a a complete statement
of the receipts and disbursements from "Industrial Work and Care of
Timber, Forestry" for the calendar year 1924, consisting of the
activities mentioned above.
There is also attached on Form S-483 a list of the fires reported
during the calendar year.
Needs for 1925 are as follows:
2 Forest Guards, 4 months, at $ 95.00 ....... $760.00
1 Forest Guard, 4 months at $110.00 .......... 440.00
Equipment, materials and supplies ............ 200.00
Total ..................,...................$1,400.00
It is believed that much better results will be obtained from the
work of the Forest Guards if one position is authorized at $110.00 per
month which will permit the hiring of a responsible part to be in charge
of the work.
With regard to the road work, this matter has been taken up in great
detail with the Office by Superintendent Sams, and it does not seem
necessary to discuss it here except to say that in the absence of an
appropriation for road work, an additional allotment from "Industrial
Work and Care of Timber, Forestry" could be used to advantage in
re-gravelling and ditching the Taholah-Moclips road.
There are at present five timber sales in force on the reservation,
i.e. TABLE OMITTED SEE ORIGINAL
Early in 1925 an additional unit containing 1,560 acres will be
recommended to the Office for sale. This unit lies East of Baker's
Prairie between the Mounts and Moclips Units and includes six
allotments.
Logging operations during 1924 were largely confined to the Moclips
Unit although about 320 acres was logged in the Ft. Grenville Unit.
Each unit will be discussed separately.
Moclips -- The Hobi Timber Company has been operating practically
continuously in the East end of this Unit. The Smith Company logged the
five far western allotments, and the Aloha Lumber Company logged only
during the first four months of the year.
Ft. Grenville -- The M. R. Smith Company has logged approximately 320
acres during the year.
Cook Creek -- No logging during 1924, but the railroad is now built
into this unit and operations will start about February 1, 1925.
Quinaielt Lake -- No logging. All timber reported is construction
materials and wood logs. It is estimated that actual logging will start
in this unit
during the summer or fall of 1925, although the company is in a position
to log earlier if they so desire.
There is attached to this report a blue print giving graphically the
status of timber sales on the reservation at the end of 1924. The
method of compiling this map was given in the 1923 manual report, and
there has been no change in the method since that date. This map shows
accurately the railroad locations, the exact location of every landing,
and the cut over areas by years. The pick-up scale has been made on all
the areas shown as out-over with the exception of the North forty of
allotment 670 in the Ft. Grenville Unit -- this forty has been logged
but practically all of the Hemlock has been left. McKeever, in charge
of this unit, is working on this pick-up now and it will be completely
reported in the near future.
Three exhibits immediately follow this page giving the following
data:
The pick-up scale has been made on all
the areas shown as out-over with the exception of the North forty of
allotment 670 in the Ft. Grenville Unit -- this forty has been logged
but practically all of the Hemlock has been left. McKeever, in charge
of this unit, is working on this pick-up now and it will be completely
reported in the near future.
Three exhibits immediately follow this page giving the following
data:
1. Statement of Controlling Account for each unit on December 31,
1924.
2. Amount and value of timber cut during 1924 by units.
3. Log cut by months.
These exhibits show that $515,261.79 has been paid to the
Superintendent by contractors: of this amount $367,027.01 has been
placed to the credit of individual Indians: $133,741.74 to the
Treasurer of the U. S.: $43,545.08 to the fund "Expense Account,
Timber": and $70,977.96 is held as advance deposits against timber to
be cut.
74,207,130 feet of logs, 94,517 linear feet of Cedar Poles, and 2,264
railroad ties with a total value of $197,534.61 were cut and removed
from the Quinaielt Reservation during the calendar year 1924.
TABLE OMITTED SEE ORIGINAL
There is attached to this report on Form S-486a a complete record of
receipts and expenditures from "Expense Account, Timber" for the year
1924. Although the new system of accounting with regard to expenditures
was not put into effect until July 1st, it was a simple matter to
compile this information of the prescribed forms from Agency records as
they had been kept. The Office will note that I have used the same form
to show receipts and expenditures from "Industrial Work and Care of
Timber, Forestry". The statement, condensed, shows the following:
Balance first of year ..................$14,015.58
Closing balance .........................16,001.32
Gain during year ........................ 2,787.27
The only safe way to show whether our operations are self-supporting
or not is to take the amount actually earned during 1924 (from Exhibit
2) $15,802.74, and subtract from that the actually expenditures during
the year, $15,612.40 which leaves a net gain of $2,190.34. My salary
and expenses are not included in the above expenditures and have
amounted to a total of $2960.68. It will be immediately seen that had
"Expense Account, Timber" born all this expense that we would have had a
deficit of $770.34 during the year. Our expenses at Quinaielt Lake have
been heavy for it has been necessary to have a man constantly there to
check up on construction work and to do preliminary work in the nature
of running allotment lines, etc. Also production was considerably
curtailed on the other units due to a depressed condition of the log
market which reduced our receipts. I believe that we are running the
timber work here as efficiently as it can be done due to the peculair
conditions pertaining to these timber sales. Mr. Lee Muck, Forest
Valuation Engineer has twice
gone into this matter in detail and reported to the Office that our
organization was efficient.
We continue to have a high turn-over in sealers. The list of our
1924 employees follows: TABLE OMITTED SEE ORIGINAL
The 1924 turn-over in sealers was over 200%. In spite of this fact I
believe that we have managed the timber sales here efficiently during
1924 because we have been very fortunate in securing the services of
competent men in charge of the various units. I desire to call the
attention of the Office to two things in this connection. First the
turn-over in sealers is the result of two conditions, namely the
hazardous nature of the work and the isolated life that must be led, and
the inadequacy of the
salaries paid. I personally know that the majority of the separations
were to accept similar positions with greater pay. Secondly, as I have
previously reported, however serious the turn-over in sealers may be,
still more serious would be a turn-over in the positions in charge of
units. Messrs. McKeever and Quaut are now receiving $1600 year annum.
Mesers. Stover, Briggs and Branson recently took the Civil Service
Examination for Forest Ranger, and in the event that they passed they
should be certified as Forest Rangers, positions created for them, and
appointments made at $1680. The re-classification of field employees
was a great disappointment to the field man attached to this Agency, and
the sum of the whole condition is simply this -- if the Office expects
efficient results to continue, salaries must be raised.
The office work has followed the plan outlined in my report for the
year 1923. We take considerable pride, which I believe is justified, in
the completeness of our records. There is attached to this report a
statement giving the total amount of pick-up to date, and the amount of
wood logs used. Our pick-up scale keeps pace with the logging
operations and is promptly reported. The pick-up record shows that the
operations of the Hobi Timber Company are the best from the standpoint
of efficient utilization. Smith's operations are by far the worse, and
Aloha's could be considerably improved upon. I know that we are making
thin pick-up scale in a way that is fair both to the operator and to the
Indians, for it is not made as a penalty scale, but only logs left that
can fairly be considered merchantable under the terms of the contract
are sealed and charged to the operator.
I will not go greatly into detail with regard to 1925 activities on
timber sales, for I know now, from the experience of 2 1/2 years that
sufficient funds will be received in the fund "Expense Account, Timber"
to pay operating costs for we will put on or take off sealers as the
volume of work to be done requires.
It is entirely possible that 150,000,000 feet of logs will be removed
from the reservation during 1925 for all the units (except the Mounts)
are now opened up by railroads and our 1925 cut will be limited only by
market conditions and the desire of the four operating concerns to get
out the logs. I believe that our 1925 cut will not greatly exceed
100,000,000 feet.
1. Skokomish. The sale of Unit #3 to John Whittaker which was
approved on September 19, 1922 (77047-22) has been active during 1924.
The total estimated value of the timber has been cut (5,683.25) and paid
for, but the time limit for removal has not expired. The sale of the
timber on an additional allotment (20-B) was effected during 1924. See
Office file 15726-24.
2. Chehalis. The timber sale for the allotment of George Walker
(73700-23) is still in effect. An additional sale of tie timber on five
allotments was made during 1924, 87581-24 having a total value of
$1,225.00
3. Nisqually. All sales on the Nisqually have been closed and so
reported.
4. Georgetown or Shoalwater. The sale of the timber on this
reservation comprising 5,550,000 feet valued at $15,160.00 was made
during 1924. Contract and bond are now in the hands of the purchaser
for execution and will be forwarded to the Office promptly.
It is estimated that there will be additional sales made on the
Chehalis
and Nisqually Reservations during 1924.
Under instructions from the Washington Office I was detailed to the
Neah Bay Agency for approximately two weeks during the year 1924, which
is the only work I have done outside of the Taholah jurisdiction.
Complete Copy placed in Taholah Files.
TABLE OMITTED SEE ORIGINAL (2 PAGES)
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
I. O. File No. _____ Quinaielt Indian Reservation
STATUS OF THE FUND EXPENSE ACCOUNT TIMBER
(OPERATING INCOME)
Opening Balance 197.50 14,014.55 Credited during the period 1748.75
16,399.67
Total 1946.25 30,141.22
Deductions during the period 1487.40 13,612.40 Closing balance 458.85
16,801.82
ANALYSIS OF CLOSING BALANCE
Allotted 458.85 13,201.53 Unavailable funds (ILLEGIBLE) 3,600.29
Approved Jan 10, 1925 H. B. STEER
W. B. Sams Supervisor of Forests
Supt.
STATEMENT OMITTED SEE ORIGINAL
COST ANALYSIS OF TIMBER SALES
UNITS
TABLE OMITTED SEE ORIGINAL (2 PAGES)
HES-003-2198-2220
HES-003-2198-2220
IIA25.2
COMM OF INDIAN AFF
250227
CORRESPONDENCE
STEER, HENRY B ; QUINAULT INDIAN RE
February 27, 1925
Supervisor of Forests at Large
Forestry
The Commissioner of Indian Affairs, Washington, D. C.
Sir:
I am submitting to the Office today the result of my investigation of
log prices and logging costs for the year 1924 in the Grays Harbor
District.
Please be referred to my letter of February 11, 1924 which
accompanied my report on a re-adjustment of stumpage prices in the
Moclips Unit, in which letter I have the names of the firms from whom
data was obtained.
While I have placed a complete copy of my report of even date in the
files of the Taholah Agency, I have not placed my information in the
file showing who the firms were (that are not operating on the
reservation) from whom data was obtained, for it has been necessary for
me to promise operators that I would not disclose their identity to
anyone other than the Commissioner.
The following is a list of firms, by the number used in the attached
blue print, from whom information as to 1924 log prices was obtained:
Firm # .................. Concern
1 .......... Grays Harbor Lumber Co. Hoquiam
2 .......... National Lumber and Box Co, Hoquiam.
3 .......... Wilson Bros Lumber Co, Aberdeen.
4 .......... Grays Harbor Commercial Co. Cosmopolis
5 .......... Bay City Lumber Co Cosmopolis
6 .......... Robert Gray Shingle Co. Hoquiam.
7 .......... Northwestern Lumber Co. Hoquiam
8 .......... Polson Logging Company, Hoquiam
9 .......... Humptulips Logging Company, Aberdeen
10 ......... River Logging Company, Aberdeen.
11 ......... Woodlawn Mill Co. Hoquiam.
12 ......... Donovan Lumber Co. Aberdeen (2 mills)
13 ......... Wynooche Timber Co. Hoquiam
14 ......... American Lumber Company, Aberdeen.
15 ......... Anderson and Middleton Lumber Company, Aberdeen
16 ......... Grays Harbor Shingle Co. Cosmopolis.
17 ......... Independence Logging Co. Aberdeen.
18 ......... E. K. Bishop Lumber Co. Junction City
List of firms as to logging costs.
Firm # ................. Concern
1 .......... National Lumber and Box Company, Hoquiam.
2 .......... Northwestern Lumber Company, Hoquiam.
3 .......... Polson Logging Company, Hoquiam.
4 .......... Humptulips Logging Co. Aberdeen.
5 .......... Wynooche Timber Co. Hoquiam.
6 .......... Independence Logging Co. Aberdeen.
7 .......... River Logging Co. Aberdeen.
The mill of the National Lumber and Box Company of Hoquiam burned
last August and will not be re-built. I have included their log sales
for the first six months of 1924 and have also shown their logging
costs. The loss of this source of information will be keenly felt, for
the company maintained a very complete system of accounting, using the
standard forms put out by the West Coast Lumberman's Association.
While the Woodlawn Mill and Boom Company did not operate during 1924
they have resumed operations now.
For reasons given above a copy of this letter is not being placed in
the Taholah Agency Files.
Very respectfully,
H. B. Steer
Supervisor of Forests.
Forestry
The Commissioner of Indian Affairs, Washington, D. C.
Sir:
There is submitted herewith the data which I have collected regarding
the 1924 Grays Harbor Log Market, and the cost of logging during 1924.
This information has been gathered in exactly the same manner as was the
data submitted with my report of February 11, 1924 concerning a
re-adjustment of stumpage prices in the Moclips Unit; to which report
the Office is respectfully referred.
I have made no attempt to compile logging costs, nor to compare log
prices, but this information has been gathered in order that next
Spring, when the Ft. Grenville Unit is to be re-adjusted, I may have the
information for 1924 at hand and will be put to the necessity of
gathering information for 1924 only.
The following information is submitted herewith.
1. Grays Harbor Log Market for 1924: Logs cut from Quinaielt Indian
Reservation during 1924; Comparison of 1922-1923-1924 prices and
average for period.
2. Graph showing log prices by species and grades from 1917-1924
inclusive.
3. Logging costs of 7 representative Grays Harbor Logging Companies.
4. Aloha Lumber Company statement.
5. M. R. Smith Lumber and Shingle Company statement.
6. Hobi Timber Company statement.
Very respectfully,
H. B. Steer
Complete copy placed in
Taholah Agency Files.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
BALANCE SHEET DECEMBER 31, 1924 TABLE OMITTED SEE ORIGINAL
Trial BALANCE DECEMBER 31, 1924 TABLE OMITTED SEE ORIGINAL (2 PAGES)
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL (2 PAGES)
TABLE OMITTED SEE ORIGINAL (2 PAGES)
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
February 14, 1924.
TAHOLAH INDIAN AGENCY
HOQUIAM, WASH.
File No. Re-Analysis Logging
operation-Point Grenville
Unit-1924.
Gentlemen: Attention: Mr. Steer.
Note that the amount actually expended for Falling and Bucking in
1924 was only $56,220.11 but the inventory at the end of the year showed
$6300.00 less than at the beginning, which we added to this under costs
and also added on the right side to make the account balance.
According to our scale in the woods we fell and bucked 31,175,278'
which amounts to $1.80 per M. We did not allow anything for windfalls
in this scale as we knew that this would more than be offset by the
difference between the selling scale and the woods scale. As a matter
of fact, our falling and bucking for 1924 probably cost a little less
than I have shown but cost more in 1923. We will soon be thru with the
falling and bucking on our present spurs and will keep that on Wreck
Creek separate so that we can tell exactly where we stand on falling and
bucking when we close our books the 1st of July. My opinion is that we
didn't get enough for our money when we were falling and bucking by the
day the first few months we operated and that this extra cost has been
partly taken out in 1924.
Murphy, our present woods scaler, is the best man we have had and I
believe cuts the scale for defects as much as any other scaler would cut
it after the fallers and buckers. If we cut it more we would have to
pay them a higher rate per M so that we wouldn't gain anything. I
believe they are doing as much work for the money they get as the
average fallers and buckers but big Cedar like we have is more defective
than the smaller and sounder types of Cedar farther east on the
Reservation and will also break easier in yarding, so that we will
always have a greater difference between the woods scale and the selling
scale both on account of the defects and the greater breakage you get in
big overripe timber when yarding. In fact, the country is rougher and
brushier close to the coast and the trees shorter which also adds to the
falling and bucking cost, and probably is a very good reason why you had
only one bid on the Point Grenville Unit.
The stumpage rates I show are the nominal rates on Point Grenville
Unit tho as a matter of fact we cut more of the timber which we took
over from Aloha on the Moolips Unit. Furthermore the actual stumpage is
about 7% greater than the nominal stumpage on account of the selling
scale being under the Government scale and on account of pick-up. Our
actual delivered cost, therefore, is a little higher than that shown.
The logs sold on Puget Sound brought enough over the Grays Harbor
price to cover the additional costs. We shipped more logs to Tacoma
than to Grays-Harbor because we couldn't move all of them at a price on
Grays Harbor which would net us as much money.
The price charged our mill at Moclips probably is as much as that
class of logs would have brought on Grays Harbor although if we consid-
er this as a logging unit we would be justified in charging the mill at
Moclips the Grays Harbor price less the cost of getting the logs to
Grays Harbor, but even considering it as a milling unit we would be
justified in charging the Moclips mill enough under the Grays Harbor
price to offset the difference in manufacturing costs. The two
principal differences are -- first that a certain percentage of the
Cedar close to the Ocean will not dry satisfactorily and can be more
profitable shipped green. It costs about as much to pay the freight on
Green shingles to Grays Harbor as it does to pay the freight on the
logs, but, of course, this doesn't apply on more than 25% of the logs we
cut into shingles.
Perhaps the greatest advantage that a tidewater mill has over our
mill at Moclips is that they can produce more shingles in proportion to
the capital invested. This is due to the fact that the entire shingle
industry is considerably below 100% valuation basis. Shingle mills have
been bought during the past year on Puget Sound and can be bought today
for 25% of their replacement value. The Woodlawn Mill at Hoquiam was
sold for about half what our Moclips Mill cost altho it is twice as big.
On the other hand, the General Appraisal Co. say that our Moclips Mill
is worth all it cost us. The point is that when you build an inland
mill on a specific location you have to pay 100 cents[ for every dollars
worth of construction, whereas you can buy mills on tidewater locations
for anywhere from 25 to 50 cents[ on the dollar. They can' be bought on
Grays Harbor for 25 cents[ on the dollar but have bee but have been
bouhgt not over 50 cents there and there are probably more which can be
bought for halfof their replacement cost. The old Coates Shingle Co.
operated by the Eureka mill, after considering the value of the site,
brought a figure which was not greater than half of its replacement
value. This means that the depreciation and interest on the investment
are considerably greater at a mill like Moclips than at most tidewater
mills. We charge 10 cents[ per M depreciation at Moclips but only cents
[ at our othe mills and the interest on the extra investment amounts to
another 5 cents. After considering these factors it is just about as
cheap to pay the freight on the logs to Grays Harbor to manufacture them
at the end of our own logging railroad but the only reason we decided in
favor of the latter is because it enables us to take up the slack in the
supply of log flats.
With reference to wire rope and fuel oil used, a small portion of the
fuel oil in charged to railroad construction and the wire rope used on
pile driver and chunk-out donkey is also charged to railroad
construction and not included in this analysis of logging expense.
With reference to Cedar logs used at Moclips, you know that we have
always picked out the best logs to sell outside and only at rare
intervals have we ever made a point of picking out any good logs for our
mill at Moclips. In other words, the timber used at Moclips would
nearly all be classed as shingle timber and is a poorer grade of shingle
timber than that which we ship out but, of course, we try to get enough
for the Cedar we ship out to justify this method of handling. Anyone
who had not seen the logs can tell by the difference in the average size
that the Cedar shipped out is much better than that used at Moclips.
The Cedar logs we sell are based on two grades, that is, Lumber Cedar
and Shingle Cedar, and a flat price put on each raft which varies
according to the percentage of Lumber Cedar.
We are sending you an extra copy of this letter and report as you
might want to send one of them to Washington and keep the other.
Very truly yours,
M. R. SMITH LUMBER & SHINGLE CO.
By Paul R. Smith
HRS/B
TABLE OMITTED SEE ORIGINAL (2 PAGES)
Feb. 24, 1925
Mr. Henry B. Steer, Supervisor of Forests
Taholah Indian Reservation,
Hoquiam, Wash.
Dear Sir:
In accordance with your request of the 20th inst. we enclose herewith
a statement of our 1924 logging costs subject to correction by the
Auditor.
We have used the 1923 average on stumpage as we still awaiting this
information from our auditor covering the year 1924.
We believe that this report will not be far from correct although the
final audit may vary a little in some details.
Yours very truly,
ALOHA LUMBER CO.
BY W. H. Dole
Vice Pres.
WHD/S
TABLE OMITTED SEE ORIGINAL CORRECTION SHEET DOCUMENT DUPLICATE OF
2243-2244
TABLE OMITTED SEE ORIGINAL
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HES-003-2221-2252
HES-003-2221-2252
IIA25.1
COMM OF INDIAN AFF
250112
CORRESPONDENCE
STEER, H B ; TAHOLAH INDIAN AGE
Forestry
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
There is transmitted herewith a report of the forestry work in the
Taholah jurisdiction for the calendar year 1924, together with a letter
of transmittal from Superintendent Sams.
Please be referred to reports for 1922 and 1923, for it has not
seemed necessary to go into detail with regard to the peculiar
conditions pertaining on the uinaielt Reservation or with regard to the
method of handling the timber sales here. The attached report is mainly
statistical.
Very respectfully,
(ILLEGIBLE)
Supervisor of Forests.
Forest Fire Control and Forest Improvement are very closely related
on this Reservation, and it is a difficult matter to keep these
activities entirely separate, for the three temporary forest guards,
whose employment is authorized for four months, are kept on trail or
road work but are immediately available in case of a forest fire.
Three temporary guards worked during the months of May and June on
the Taholah Quects trail which was in very bad condition. All windfalls
were cut out, parts of the trail were re-puncheoned and approaches from
the beach and rivers were re-built. Miles of trail rebuilt and repaired
were approximately three at a total cost of $427.55.
An additional appropriation or allotment of $500.00 from "Industrial
Work and care of Timber, Forestry 1925" was granted this Agency soon
after the beginning of the fiscal year 1925. After the first of July
the temporary forest guards were put to work on the Taholah-Moclips
road, and teams and additional men were hired from the additional amount
given us. It was not possible to do very much with the limited amount
of funds available, but places in the road which needed it the worst
were re-gravelled, and drainage ditches were dug for a distance of about
one half a mile between Point Grenville and Taholah. The cost of this
road work was $853.45. Materials and supplies purchased for use on road
and trail work amounted to $90.20. An additional amount of $9.00 was
expended from "Indian Moneys and Proceeds of Labor". Ditching the road
is slow work because of the large amount of snags, roots, and windfalls
that must
be blasted out.
The up-keep of the Taholah-Moclips phone line cost $67.50 during the
past year.
Three fires, outside of slash burnings at logging operations, were
reporeted during the calendar year. Two of these were on road
construction work on the Olympic Highway, both of which were
extinguished without expense to the government. One of these fires did
no appreciable damage, while the other killed and damaged 204 H feet of
timber which was cruised by Scaler F.E. Briggs. The road contractor has
been charged with the value of the timber destroyed or damaged, but
since he has experienced serious financial difficulties on his contract,
claim has been filed with the State Highway Division in the amount of
$258.00 and will be paid in time.
The third fire was caused by campers leaving a camp fire at the mouth
of Wreck Creek on the beach, and while the fire did no damage, being
confined to drift logs along the beach, at times it threatened green
timber. The cost of fighting this fire was $48.70. The temporary
forest guards were used on this work.
There is attached to this report on Form 5-486a a complete statement
of the receipts and disbursements from "Industrial Work and Care of
Timber, Forestry" for the calendar year 1924, consisting of the
activities mentioned above.
There is also attached on Form 5-483 a list of the fires reported
during the calendar year.
Needs for 1925 are as follows:
2 Forest Guards, 4 months, at $95.00 ..... $760.00
1 Forest Guard, 4 months, at $110.00 ...... 440.00
Equipment, materials and supplies ..........200.00
Total ................................. $1,400.00
It is believed that much better results will be obtained from the
work of the Forest Guards if one position is authorized at $110.00 per
month which will permit the hiring of a responsible party to be in
charge of the work.
With regard to the road work, this matter has been taken up in great
detail with the Office by Superintendent Sams, and it does not seem
necessary to discuss it here except to say that in the absence of an
appropriation for road work, an additional allotment from "Industrial
Work and Care of Timber, Forestry" could be used to advantage in
re-gravelling and ditching the Taholah-Moclips road.
There are at present five timber sales in force on the reservation,
i. e. TABLE OMITTED SEE ORIGINAL
Early in 1925 an additional unit containing 1,560 acres will be
recommended to the Office for sale. This unit lies East of Baker's
Prairie between the Mounts and Moclips Units and includes six
allotments.
Logging operations during 1924 were largely confined to the Moclips
Unit although about 320 acres was logged in the Pt. Grenville Unit.
Each unit will be discussed separately.
Moclips -- The Hobi Timber Company has been operating practically
continuously in the East end of this Unit. The Smith Company logged the
five far western allotments, and the Aloha Lumber Company logged only
during the first four months of the year.
Pt. Grenville -- The M. R. Smith Company has logged approximately 320
acres during the year.
Cook Creek -- No logging during 1924, but the railroad is now built
into this unit and operations will start about February 1, 1925.
Quinaielt Lake -- No logging. All timber reported is construction
materials and wood logs. It is estimated that actual logging will start
in this unit
during the summer or fall of 1925, although the company is in a position
to log earlier if they so desire.
There is attached to this report a blue print giving graphically the
status of timber sales on the reservation at the end of 1924. The method
of compiling this map was given in the 1923 annual report, and there has
been no change in the method since that date. This map shows accurately
the railroad locations, the exact location of every landing, and the cut
over areas by years. The pick-up scale has been made on all the areas
shown as cut-over with the exception of the North forty of allotment 670
in the Pt. Grenville Unit -- this forty has been logged but practically
all of the Hemlock has been left. McKeever, in charge of this unit, is
working on this pick-up now and it will be completely reported in the
near future.
Three exhibits immediately follow this page giving the following
data:
1. Statement of Controlling Account for each unit on Dec.31, 1924.
2. Amount and value of timber cut during 1925 by units.
3. Log cut by months.
These exhibits show that $615,261.79 has been paid to the
Superintendent by contractors: of this amount $367,027.01 has been
placed to the credit of individual Indians: $133,741.74 to the
Treasurer of the U. S.: $43,545.08 to the fund "Expense Account,
Timber": and $70,977.96 is held as advance deposits against timber to
be cut.
74,207,130 feet of logs, 94,517 linear feet of Cedar Poles, and 2,244
railroad ties with a total value of $197,534.61 were cut and removed
from the Quinaielt Reservation during the calendar year 1924.
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
There is attached to this report on Form 5-486a a complete record of
receipts and expenditures from "Expense Account, Timber" for the year
1924. Although the new system of accounting with regard to expenditures
was not put into effect until July 1st, it was a simple matter to
compile this information on the prescribed forms from Agency records as
they had been kept. The Office will note that I have used the same form
to show receipts and expenditures from "Industrial Work and Care of
Timber, Forestry". The statement, condensed, shows the following:
Balance first of year ... $(ILLEGIBLE)
Closing balance .......... (ILLEGIBLE)
Gain during year ......... (ILLEGIBLE)
The only safe way to show whether our operations are self-supporting
or not is to take the amount actually earned during 1924 (from Exhibit
2) $15,802.74, and subtract from that the actually expenditures during
the year, $13,612.40 which leaves a net gain of $2,190.34. My salary
and expenses are not included in the above expenditures and have
amounted to a total of $2960.68. It will be immediately seen that had
"Expense Account, Timber" borne all this expense that we would have had
a deficit of $770.34 during the year. Our expenses at Quinaielt Lake
have been heavy for it has been necessary to have a man constantly there
to check up on construction work and to do preliminary work in the
nature of running allotment lines, etc. Also production was
considerably curtailed on the other units due to a depressed condition
of the log market which reduced our receipts. I believe that we are
running the timber work here as efficiently as it can be done due to the
peculiar conditions pertaining to these timber sales. Mr. Lee Muck,
Forest Valuation Engineer has twice
gone into this matter in detail and reported to the Office that our
organization was efficient.
We continue to have a high turn-over in scalers. The list of our
1924 employees follows: TABLE OMITTED SEE ORIGINAL
The 1924 turn-over in scalers was over 200%. In spite of this fact I
believe that we have managed the timber sales here efficiently during
1924 because we have been very fortunate in scouring the services of
competent men in charge of the various units. I desire to call the
attention of the Office to two things in this connection. First the
turn-over in scalers is the result of two conditions, namely the
hazardous nature of the work and the isolated life that must be led, and
the inadequacy of the
salaries paid. I personally know that the majority of the separations
were to accept similar positions with greater pay. Secondly, as I have
previously reported, however serious the turn-over in scalers may be,
still more serious would be a turn-over in the positions in charge of
units. Messrs. McKeever and Quast are now receiving $1680 per annum.
Messrs. Stover, Briggs and Branson recently took the Civil Service
Examination for Forest Ranger, and in the event that they passed they
should be certified as Forest Rangers, positions created for them, and
appointments made at $1680. The re-classification of field employees
was a great disappointment to the field men attached to this Agency, and
the sum of the whole condition is simply this -- if the Office expects
efficient results to continue, salaries must be raised.
The office work has followed the plan outlined in my report for the
year 1923. We take considerable pride, which I believe is justified, in
the completeness of our records. There is attached to this report a
statement giving the total amount of pick-up to date, and the amount of
wood logs used. Our pick-up scale keeps pace with the logging
operations and is promptly reported. The pick-up record shows that the
operations of the Hobi Timber Company are the best from the standpoint
of efficient utilization. Smith's operations are by far the worse, and
Aloha's could be considerably improved upon. I know that we are making
this pick-up scale in a way that is fair both to the operator and to the
Indians, for it is not made as a penalty scale, but only logs left that
can fairly be considered merchantable under the terms of the contract
are scaled and charged to the operator.
I will not go greatly into detail with regard to 1925 activities on
timber sales, for I know now, from the experience of 2 1/2 years that
sufficient funds will be received in the fund "Expense Account, Timber"
to pay operating costs for we will put on or take off scalers as the
volume of work to be done requires.
It is entirely possible that 150,000,000 feet of logs will be removed
from the reservation during 1925 for all the units (except the Mounts)
are now opened up by railroads and our 1925 cut will be limited only by
market conditions and the desire of the four operating concerns to get
out the logs. I believe that our 1925 cut will not greatly exceed
100,000,000 feet.
1. Skokomish. The sale of Unit (ILLEGIBLE) to John Whittaker which
was approved on Sept.19,1922(77047-22) has been active during 1924. The
total estimated value of the timber has been cut ($5,663.25) and paid
for, but the time limit for removal has not expired. The sale of the
timber on an additional allotment (20-3) was effected during 1924. See
Office file 15725-24.
2. Chahalis. The timber sale for the allotment of George Walker
(73700-25) is still in effect. An additional sale of tie timber on five
allotments was made during 1924, 87581-24 having a total value of
$1,225.00.
3. Hisqually. All sales on the Hisqually have been closed and so
reported.
4. Georgetown or Shealwater. The sale of the timber on this
reservation comprising 5,550,000 feet valued at $15,150.00 was made
during 1924. Contract and bond are now in the hands of the purchaser for
execution and will be forwarded to the Office promptly.
It is estimated that there will be additional sales made on the
Chehalis
and Misqually Reservations during 1925.
Under instructions from the Washington Office I was detailed to the
Neah Bay Agency for approximately two weeks during the year 1924, which
is the only work I have done outside of the Taholah jurisdiction.
Respectfully submitted this 12th day of January 1925.
Supervisor of Forests
Complete Copy
placed in Taholah
Files.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
STATEMENT OMITTED SEE ORIGINAL
HES-003-2253-2270
HES-003-2253-2270
IIA24.1
COMM OF INDIAN AFF
230206
CORRESPONDENCE
FOREST EXAMINER
Forestry
JPK
P. O. Box 676,
Hoquiam, Wn.,
Feb. 6, 1923.
The Commissioner of Indian Affairs,
Washington, D. C.
Sir:
Reference is made to Office letter of Jan.24, 1923 to Superintendent
W. B. Sams concerning the preparation, by me, of a complete report on
forestry work in the Taholah jurisdiction during the calendar year
ending Dec.31,1922. As directed, the following report is submitted, and
before transmittal to the Office, the same is submitted to
Superintendent Sams for such comment as he desires to make.
Due to the peculiar conditions on the Quinaielt Reservation, the
phases of fire control and forest improvement are very closely related
and somewhat difficult to discuss separately. As actual work in the
field has been combined for these two activities, it is thought
pertinent to report on them together.
We are authorized to employ three forest guards at $75.00 per month
and bonus, (a total of $95.00 per month) for a total of four months.
Due to the late spring experienced in 1922, it did not seem necessary
nor advisable to put these men exclusively on fire patrol work in May
and June, but there was considerable work repairing and rebuilding
trails that could be done to advantage. The reservation is, as the
Office is aware, somewhat inaccessible, and with the exception of the
regions around Quinaielt Lake and the Queets River, is not frequented
except by an occasional hunter and trapper. As mentioned above, the
Spring of 1922 was very late, and there was no real danger of fire until
about July 1st.
On May 1st Mr. Quast, in the position of Forest Guard at $1300 per
annum, was assigned to trail work and given two forest guards to help
him. Both of the temporary guards employed were Indians. Mr. Quast
submitted a report under date of July 6th which was forwarded to the
Office giving the amount of work accomplished. Mr. Quast stated that
the following amount of work was done:
Miles of trail repaired ..... 12
Miles of new trail built ..... 2
Miles of new wagon road built 1
Bridges constructed .......... 2 and the approximate cost of the same
was about $400.00. Mr. Quast was detailed to the Aloha operations about
the 10th of June and left the two forest guards working on the
Taholah-Queets trail which follows along the coast from Waholah to the
mouth of the Queets River. The two forest guards were on trail work
until July 1st. All of the work was on trails which were badly in need
of repair, and which are in constant use by Indians, namely the trail
from Taholah to the mouth of the Queets, and the trails and road up the
Queets River. Some work must be done on those trails every year as they
form the only means of communication from Taholah to the Queets country.
The summer of 1922 was an exceptionally dry one, and on July 1st the
two Indian forest guards were placed on fire patrol work, Ernest Obi in
the Queets country (district #2 on the attached map) and Bert Jones in
the Quinaielt Lake country (district # on the attached map). These men
were under instructions to warn the numerous campers, etc., to take the
necessary precautions as to camp fires, see that all such fires were
properly distinguished, and patrol their respective areas. Weekly
reports were made to Superintendent Sams, setting forth their
activities. In dry summer seasons, such as 1922, this phase of the work
is very important, especially in the region of Lake Quinaielt, for
numerous tourists and vacationists camp out on the reservation, and in
the absence of a forest officer, are apt to be careless and negligent
with their camp fires, with disastrous results.
The fall rains started about the end of August, and the forest guards
were dropped on September 1st. Under ordinary circumstances we should
have employed the third forest guard during the months of July and
August and detailed him to the Cook Creek area, however the Polson
Logging Company was operating just outside the reservation, and since
the region was being patrolled by men in the employ of the company (who
were deputy state forest fire wardens) and U. S. Forest Service men, it
did not seem as though the expense of hiring a guard on our part would
be warranted.
No forest fires were reported on the reservation during 1922.
The cost of fire control work for the year was $380.00 or about two
mills per acre. No equipment was purchased, as sufficient camping
equipment including tents, axes, etc., was on hand. However, while no
definite amount can be given for the purchase of necessary equipment
during 1923, it will be necessary, from time to time, to purchase new
tents, axes and other materials.
1923 estimate of needs. It is not thought practicable to estimate
our needs for fire control and forest improvement work separately, for
if the season is a dangerous one from the fire standpoint, the forest
guards will be put on fire patrol work -- while if the season is fairly
wet and there is no marked danger of forest fires, they will be put on
much needed trail repair work.
The Office is requested to continue the authorization of the
employment of three forest guards at $75.00 per month, positions 12, 13
and 14, (and bonus) for a period of four months, and one Forest
Assistant at $1300 per annum and bonus, position #11. It is estimated
that those positions represent the minimum necessary to take care of our
needs.
There are at present four timber sales in force on the reservation,
including 38,920 acres with an estimated stand of 1,123,000,000 feet and
a minimum stumpage value of $3,692,241.00. One sale, the Moclips
Logging Unit, was effected prior to 1922. The other three were
advertised and sold during 1922, as follows:
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
During 1922 the necessary preliminary work-ups done preparatory to
the offering of an additional unit for sale, namely the "Mounts" Unit,
containing about 7,320 acres with an estimated stand of 156,000,000 feet
and a minimum stumpage value of $309,725.00, including 55 trust
allotments.
During 1922 the general contracts and bonds for the Pt. Grenville,
Cook Creek, and Quinaielt Lake Units were prepared and forwarded to the
Office, and 161 allotment contracts were also prepared and forwarded to
the Office for approval as follows: TABLE OMITTED SEE ORIGINAL
Allotment contracts for the Quinaielt Lake Unit will be forwarded to the
Office in the near future.
To discuss each sale separately:
1. Quinaielt Lake. Bids for this unit were opened on November 1st,
and the only work done in connection with this sale was the obtaining of
signatures of individual Indians to the Power of Attorney blanks for the
sale of Allotment timber; the furnishing of complete information
regarding the sale to prospective bidders, and the following up of
inquiries received; and preliminary office work before the sale was
advertised. Contract and bond for the unit were also prepared.
2. Cook Creek. Bids for this unit were opened on July 6th, and work
on this sale was similar to that done on the Quinaielt Lake Unit with
the addition of preparing 81 allotment contracts, requesting of
rights-of-way, etc.
3. Pt. Grenville. Bids for this unit were opened on March 30th, and
work was the same as on the Cook Creek unit, 77 allotment contracts
being prepared. The M. R. Smith Lumber and Shingle Company, the
purchasers of this unit, started railroad construction during the summer
of 1932, and Mr. Lester C. McKeever was assigned to this sale in the
position of Forest Assistant on October 7th. The only material cut by
this Company during 1922 was poles, piling and other material necessary
in railroad construction. During November Mr. Michael A. Murphy, in the
position of scaler, was assigned temporarily to this sale, and together
these men re-ran and blazed about 12 miles of allotment lines. The cost
of administration of the Pt. Grenville Unit for 1922 was approximately
$515.00 as follows:
Salary, Forest Asst. $360.00 (three months)
Salary, Scaler . . . . 110.00 (one month)
Rent quarters . . . . . 45.00 (three months) ........................
$ 15.00
This cost represents only the cost in the field, for the cost of
office work and general supervision, including the salaries of Forest
Examiner and Timber Clerk, equipment, etc, have not been included. This
total cost can be divided approximately between supervision and
surveying (necessary before operations start) as follows:
General supervision ..... $270.00
Surveying .................245.00 ............................
$515.00
It is impossible to arrive at figures more accurate than these, for
part of Mr. McKeever's time was put in on the Moclips sale area. It was
necessary that we have someone in constant touch with railroad
construction and general work on the Pt. Grenville Unit, but there were
times when Mr. McKeever was able to get away for a few days to assist
Mr. Quast on the Moclips Unit. This matter is not thought to be of
sufficient moment to attempt to segregate the costs further, for if the
two sales had not been so situated as to allow a man to arrange his work
between the two to advantage, it would have been necessary to detail a
man continually to the Pt. Grenville Unit. The fact that Mr. McKeever
was able to spend a part of his time on the Moclips Unit represents a
saving on our part, for otherwise it would have been necessary to employ
another man to help Mr. Quast.
4. Moclips. Railroad construction was started in the Moclips
Logging Unit by the Aloha Lumber Company during the late spring of 1922.
Actual logging operations started early in August and continued until
the middle of December when due to exceptionally cold weather and the
annual Xmas shut-down, operations were temporarily suspended. During
the period of logging activity, from one to three sides were operated.
During the 5 months of operation the Aloha Lumber Company removed from
trust allotments included within the Moclips Logging Unit, a total of
7,374,520 feet of timber, as follows, (no tribal timber was cut) TABLE
OMITTED SEE ORIGINAL having a total stumpage value of $24,119.38.
Mr Ray C. Quast was assigned to this sale area on June 10, in the
position of Forest Guard at $1300.00 on June 10th and up to the time
when actual logging operations started he re-ran and blazed (with some
assistance on my part) approximately 16 miles of allotment lines besides
checking up and recording the amount of material used in railroad
construction, etc.
Mr. L. C. McKeever was employed as scaler on August 27th at $1080.00
and was employed until October 7th when he was assigned to the Pt.
Grenville Unit.
Mr. Chas. A. Smith was employed as scaler from September 11th to
December 3rd at $1080.
Mr. Michael A. Murphy was employed as scaler at $1080 from October
7th to November 1st.
TABLE OMITTED SEE ORIGINAL
However this balance would be over-drawn if this operation were made
to bear its proportionate share of expense incurred for my salary,
salary of timber clerk, and equipment. The surveying work is
approximately one year in advance of operations, and it is always more
expensive to start an operation than it is to supervise and administer
it after it once gets under way. This operation will be entirely self
supporting from January 1, 1923 on, and will bear its share of
book-keeping, and general supervision from the Taholah office.
It is realized that the above costs are not accurately segregated as
to the various phases of administration and are approximate only.
Itemized costs of administration were not kept during 1922, but on Jan.
1,1923 we started using form 5-486a, and will segregate the cost of each
operation and, in so far as is practicable, the cost of each phase of
each operation.
A special effort has been made to start a complete set of records of
timber sales, including opening the timber books, maps, etc.
1. Maps. The land and timber classification maps, similar to those
sent to the Office on Jan.23, 1922 by myself, were completed. I
requested two large cloth backed contour maps of the reservation from
the office, which were furnished. On each of these maps the allotments
have been placed, the boundaries of the same being ruled in red ink and
the number of allotments shown. One map shows all the fee patented land
on the reservation, and also the status of all the lands included in the
timber sales which have been made, whether tribal, fee patented,
allotted under contract, or allotted not under contract. The other map
will be my annual cutting map on which will be shown accurately the
location of all railroad lines, the number and location of each spar
tree, and by using crayons of separate color, the actual land cut over
each year. This map will be a complete graphical record of logging
operations. When, early in December, operations of the Aloha Lumber
Company were curtailed, and later shut down, Mr. Michael A. Murphy was
detailed to Hoquiam, and worked on these maps (mainly in completing the
land and timber classification maps) during the month. The cost of
these maps (outside of my salary) was $110.00 to date.
2. Timber Books. Timber books 5-450 and 451 (allotted land) were
opened for all four sales. Forms 5-448 and 449 (tribal land) have not
been opened as yet, but sufficient books to take care of all four sales
now made are on hand. In addition to these a controlling account book
was drawn up and printed for each operation. This record combines the
scale and money record books on both allotted and tribal land and has
been found of great value. Complete information regarding this account
was forwarded to the Office on November 13, 1922. The cost of these
books (6) was $135.00. 3.Files. We have a separate file for each
contract, grouped by sales. In these files will be kept only the
contract and scale reports. Our general forestry files are being bound
chronologically the same as the files of the Washington Office. We are
keeping a daily forestry file of all letters written.
4. Scale books. We are issuing scale books to men in charge of
operations the same as non-expendible property. We have a scale book
record in the office which gives, by units, the number of the scale
book, the land on which it will be used, the date issued, to whom
issued, and the date of return and of checking for error. Scale books
are numbered, and the description of the land on which they will be used
are placed in them before they are sent to men in the field.
5. Contracts, etc. Besides the three main or general contracts and
bonds forwarded to the office, 161 allotment contracts were prepared and
approved by the Office during 1922. It is interesting to note that of
197 allotments (trust) included within the Moclips, Pt. Grenville and
Cook Creek Units that only 7 allotments are not now under contract, as
follows: Moclips, one; Pt. Grenville, 5; Cook Creek, 1. Powers of
attorney have not been signed for 32 allotments within the Quinaielt
Lake Logging Unit (51 are signed), but this is due to pending
applications for fee patents within the area, and because we have been
unable, as yet, to personally see the individual allottees who have not
executed the Power of Attorney for the sale of their timber.
6. Office equipment. Prior to 1922 there was no forestry man
assigned to this jurisdiction and consequently there was no office
equipment for a forester. During 1922 the following equipment was
requisitioned:
1 desk
1 table
1 chair
1 typewriter
1 three section filing cabinet
1 upright section cabinet (for timber books).
The total cost of this equipment was $279.45.
7. Other work. During 1922 many matters of timber sale
administration have arisen on the Moclips Logging Unit which will also
come up on other units. I have made a separate file of my letters to
Mr. Quast on these matters, and plan, as soon as possible and
practicable, to incorporate them as general instructions in a
mimeographed form to forest employees on timber sales. Among these
matters are
1. Preparation and keeping up to date of maps showing r.r.
location, number and location of spar trees, land on which pick-up
has been made (which will automatically show the cut over area)
lines re-run and blazed, etc. 2. Branding of logs along allotment
lines. 3. Time to make and manner of making pick-up scale. 4.
Preparation of scale reports. 5. Matter of wood logs. 6. Record
of equipment and scale books. 7. Manner of recording log scale by
carloads to permit check scaling, etc.
8. Timber money on hand Jan.1, 1923. The balance of timber money on
hand on the first of the fiscal year against which future cuttings may
be charged, was as follows: TABLE OMITTED SEE ORIGINAL
Before outlining our future activities with regard to timber sale
administration, more especially with reference to 1923, it may be
pertinent to discuss briefly the timber sale situation and the
circumstances which are, I believe, peculiar to the Quinaielt.
Operations of the Aloha Lumber Company have been in progress for six
months on the Moclips Logging Unit, and since the operations of this
company are similar to those which will be carried on on other units, we
have had an excellent chance to estimate our needs in timber sale
administration and to plan an organization which will efficiently handle
the sales. We have found it impracticable to scale in the woods before
the logs are yarded, and since our log output is being, and will be
partly or entirely continually shipped to Hoquiam, it is not practicable
to scale in booms. Because of the large number of allotments within
each sale area, it is difficult, but nevertheless of primary importance
to credit these logs to the allottee from whose land they were cut. We
have found the best place to scale is at the landing as the logs are
being loaded, and we will need one scaler to every side. It is not
practicable to scale cars after they are loaded for reasons obvious to
one familiar with methods of loading in this vicinity and general
scaling practice. Besides the scalers we will need one man for each
sale area to be directly in charge of the operations on that unit. All
the allotment lines must be re-run and corners located before any timber
is felled, and this work is of special importance where we have fee
patented and alienated land scattered throughout our sale areas. After
the timber is down the lines must be re-run and all the logs near the
line branded with hammers furnished for that purpose, each allotment
being given a distinctive brand, which is, of course, known to the
scaler. The work of making a pick-up scale follows directly on logging
operations, and railroad work, which is practically continually going
on, needs constant checking up. With regard to the pick-up, we are
making this as soon as the lines and blocks are moved from one quarter
section of a spar tree. It is very important that the work of making a
pick-up shall not be allowed to fall behind, for if the pick-up is made
while the operator is still logging in that vicinity, disputes can be
threshed out at the time the operator is still in that immediate
locality and the manner and details of logging the area in question are
still fresh in his mind. Very recently Mr. Quast found at Aloha what he
thought was too much merchantable material left. He got in touch with
me, and Quast and I, the logging superintendent and the hook tender,
went over the area together. Officials of the company admitted that
they were leaving too much merchantable material, and the prompt taking
up of this matter has resulted in the company logging cleaner and a
better understanding all around. Had this phase of the work on our part
been allowed to lag, a dispute might have arisen as to the unjustifiable
size of our pick-up. The man directly in charge of the sale must also
check up on the scalers and record his check scales in books furnished
for that purpose. He also has the fallers and buckers to check up on
continually as to height of stump and log lengths. When all our timber
sales are under way we will need approximately the following
organization: Forest Officer in charge of all timber work, Timber
Clerk, one forest Officer directly in charge of each sale area, or a
total of four, and at least two scalers to a sale area, or a total of
eight. I have carefully compared the cost of timber sale administration
with an organization such as I believe to be necessary with the amount
which we can reasonably expect to receive from "Expense Account,
Timber", and find that our operations will be entirely self supporting.
Our work in connection with timber sales during the calendar year
230000 will depend a great deal on the outcome of the offering of the
proposed Mounts Logging Unit, for this reason. The Hobi Timber Company
has a railroad agreement with the Aloha Lumber Company whereby logs from
the Cook Creek Unit will come out over the Aloha railroad. However to
reach the Cook Creek Unit promptly, the Hobi Timber Company must build a
railroad through the tribal land included in the Eastern part of the
Moclips Unit, which the Aloha Lumber Company has not tapped as yet. The
Aloha Lumber Company, as I am lead to believe, is contemplating bidding
on the Mounts Unit, and should they be the successful bidder, they will
sub-contract the tribal land in the eastern part of the Moclips Unit to
the Hobi Timber Company. In the event that this happens, Hobi will be
in a position to start logging heavily this coming summer with two full
sides, and we will need two additional scalers. Mr. Quast, who is now
in charge of the Moclips sale area, will be able to handle, with my
assistance, the supervisory work in connection with the Hobi operations
until they get in the Cook Creek Unit proper, at which time, and from
then on, we will need the services of an additional forest officer to be
directly in charge of the Cook Creek operation. However I do not think
we will need this position during 1923.
Our need for employees directly on timber sales during 1923 will be
approximately as follows: TABLE OMITTED SEE ORIGINAL
Computing the amount of timber which will be cut during 1923 on the
assumption that a sufficient degree of activity will be attained which
will require the services of the employees listed above, gives us
approximately as follows: TABLE OMITTED SEE ORIGINAL
It will be noted that I have used the average value of $3.00 for
timber cut. During 1922 the average value of over 7 million feet of
logs removed from the Moclips Unit was $3.26. The M.R. Smith Company
will log the E/2 of Section 5 and the S/2 SW/4 of Section 34 in the
Moclips Unit during 230000, being approximately 17 million feet at
Moclips Unit prices. Stumpage prices of timber logged by Hobi will be
at least at Moclips Unit prices, and it is thought that $3.00 will about
represent the average stumpage value of timber cut during 1923.
If the amount of timber cut is not as great as estimated, the number
of employees will be reduced, or if the amount of timber cut is greater
than estimated, it may be necessary to employ additional men, however
the amount of actual necessary expense in relation to "Expense Account,
Timber" received will be about in the proportion given above.
There will be approximately $4,000.00 received in Expense Account,
Timber during 1923 from the 10 percent advance payments on Quinaielt
Lake allotments.
As our needs with regard to additional employees will increase in
1924, so also will the amount of timber cut increase, and I do not think
that there is any doubt but that our operations will be entirely self
supporting, especially in view of the fact that the stumpage prices of
the Cook Creek and Quinaielt Lake Units are considerably higher than
those of the Moclips and Pt. Grenville Units.
The amount of Expense Account, Timber available on 230101 was
$6,525.95 which was encumbered to the extent of $5,634.19 under existing
authorities. I would estimate the amount that will actually be expended
from this fund up to July 1st as follows: TABLE OMITTED SEE ORIGINAL
The following is the amount of money actually expended in forest
activities by the Taholah jurisdiction during the calendar year 1923.
TABLE OMITTED SEE ORIGINAL
A sale of timber on the Skokomish Reservation was effected in 1922,
the tract being known as unit #3, containing approximately four million
feet on an area of 280 acres with a value of $5,683.25. Mr. Whittaker,
the purchaser of this unit, has not started his operations as yet.
We endeavored to effect a sale of timber on the Georgetown or
Shoalwater reservation, but interest in this timber did not seem to be
sufficient to warrant the expense of advertising, due to the very poor
quality of the stand.
Under instructions from the Washington Office, I was detailed to work
on other reservations during the year 1922, and was absent from this
jurisdiction approximately two months.
Because of the fact that operations are just starting on this
reservation, I have made a somewhat detailed report in order that the
Office might have full information as to what organization we have now
and will need to efficiently conduct timber sales and other phases of
forestry work.
Very respectfully,
Forest Examiner at Large.
HES-003-2271-2283
HES-003-2271-2283
IIA23.2
COMM OF INDIAN AFF
231124
CORRESPONDENCE
FOREST VALUATION ENG ; TAHOLAH INDIAN AGE
76040-23
November 24, 1923
Commissioner of Indian Affairs
Washington, D. C.
Sir:
Please refer to your letter of October 8, 1923 directing me to make
an investigation of the scaling practice in effect on the Quinaielt
Indian Reservation.
In accordance with your instructions I reported at the Taholah Indian
Agency, accompanied by Mr. T. C. White on Nov.8,1923 and made a complete
check scale on all of the timber contracts under operation. The field
work covered a period of eight days and upon its completion, Mr. White
returned to the Coeur D'Alene Agency to assume his regular duties. Mr.
White's assistance proved invaluable in making this investigation, and I
wish therefor to take this opportunity of commending him to your Office
for the able service which he rendered in this connection.
The findings of our investigation covering the scaling practice in
effect on the Quinaielt Indian Reservation follows:
Owing to the fact that the log numbering plan in general use
throughout our Service is not practicable of application in this Coast
Country, the method of procedure followed in our investigation used the
log car number as the checking unit. This method has several
disadvantages, chiefly among which is the difficulty experienced in the
scaling of logs in the center of the load and in obtaining the length
accurately. We proceeded with a great deal of care, however, and I am
convinced that our results are reliable.
The fact that the figures obtained are the result of a balance check
and represents the combined judgment of two experienced scalers in this
class of timber makes the findings doubly dependable. Mr. White has had
considerable experience in scaling coast timber and during the six years
that I was at Tulslip, I had the opportunity of checking over
100,000,000 feet of Fir, Cedar and Hemlock timber which was scaled by
the Puget Sound Log Scaling and Grading Bureau, thus making it possible
for me to ascertain definitely the practice in effect in Puget Sound
Waters. During my experience on Puget Sound, I checked less than 2
percent above the Bureau, consistently and I am convinced, therefore
that the results of our investigation are representative of the general
practice which is in effect in the Puget Sound and Grays Harbor
District.
In view of the fact that the contracts covering the sale of the
timber on the Quinaielt Reservation specify a maximum scaling length of
32 feet, this length was used in our check scale. It is the general
practice on Puget Sound and in Grays Harbor, however, to use 40 feet as
the maximum length. This difference in the maximum scaling length has
considerable influence on the resultant volume and is one of the causes
for the comparative high scale on the Quinaielt Indian timber. Since
the influence of this factor will be discussed in a following portion of
this report, I will not comment upon it further here, other than to
state that the 32 foot maximum is the one which was used in our check
scale and that as a result our check scale is therefore comparatively
high, but in accord with the practice in effect on the Quinaielt Indian
Reservation.
The necessity of check scaling by car number limited the scope of our
investigation to logs in current operations and after the first three
days all of the scalers were aware of the fact that we were making a
check scale. This condition did not influence the results to any great
extent except in one case which will be discussed more fully in the
following portion of this report.
M. R. Smith Lumber & Shingle Company.
TABLE OMITTED SEE ORIGINAL
Co.
TABLE OMITTED SEE ORIGINAL
Co.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
An examination of the foregoing analysis discloses the fact that all
of the scalers, with the exception of two were above the volume shown in
the check scale and that the total volume checked was 2.5 per cent under
the original scale on this timber. It further shows that there are
three scalers, i. e. Murphy, McMillion and Van Cleve who are not making
sufficient deduction for deffect and whose practice should be corrected
so as to conform more closely to the results which we obtained. In the
case of Mr. McMillion the 6.2 per cent shown is based on a rather
limited volume and should therefore not be given the weight indicated.
In the case of Murphy, however, there was sufficient volume checked and
an analysis of his scale by car number brings out the fact that he is
always consistently high. The very fact, however, that he is consistent
in his scale is an excellent feature and there can be no doubt but that
his practice can be corrected.
A study of the results of the check scale covering Van Cleve shows a
very unconsistent practice. The first cars which we checked on him
showed a difference of 16 per cent and on two very deffective cars he
showed more net scale than the gross scab which we obtained on these
cars. After he was aware that we were running the check, he dropped too
low, which is undoubtedly a serious condition. A close check is now
being kept on his work and I believe that he will eventually adjunt
himself to conditions. Van Cleve is a capable, willing young man and
can no doubt be trained so that he will be a competent employee.
Branson, McCalvy, McKeever and Walton are consistent and sufficiently
close to the check scale that in my opinion their practice cannot be
improved. McCalvy and McKeever are especially competent and experienced
and show excellent results for the very difficult class of timber in
which they are working. I think I can safely say that the cedar which
is being scaled at the H. R. Smith Lumber and Shingle Co's camp is the
most difficult to scale of any that has come within my experience. This
statement also applies to the cedar being logged at the Aloha Camp and
which is being scaled by Van Cleve. The timber in question is all very
deffective. It must be handled in the form of slabs, chunks, etc. which
are very irregular in shape and require the soundest kind of judgment to
scale. I feel therefore, that the results shown by our check on this
deffective timber is very satisfactory. The work of Murphy and Van
Cleve, however, should have very careful attention in order that the
Purchasers involved, i. e. The Aloha Lumber Company and the Hobi Timber
Company, may not suffer losses because of a comparatively high scaling
practice.
LENGTH of 32 feet as against 40 feet.
As stated in a foregoing portion of this report the maximum log
length used in connection with the Quinaielt sales is 32 feet as against
a maximum length of 40 feet which is the general practice in Puget Sound
waters and in the Grays Harbor District. This difference in the maximum
scaling length in effect has considerable influence upon the volumes
obtained and I have therefore made an analysis of the two methods in
order to place the practice at Quinaielt on a comparative basis with
that generally in effect in this Coast Country.
Of the 96,270 feet B. M. covered by this study, 68,560 feet B. M. or
71.2 percent was composed of 73 logs which were over 32 feet in length
and which therefore, under the terms of the contracts, were required to
be scaled as two logs with the proper rise in diameter. These 73 logs
were scaled as 34, 36, 38, and 40 feet, i. e. as one log showed a volume
of only 63,880 feet B. M. or a decrease under this practice of 4,680
feet B. M. This 4,680 feet B. M. represents a decrease of 4.8 per cent
on the total volume of 96,270 feet covered by the study. It is obvious
therefore from these figures, which can only be taken as an indication,
that the practice of using the 32 foot maximum is resultant in
increasing the scale over that obtained by using the 40 foot maximum
from 4 to 6 per cent, dependent upon the general character of the timber
and the conservatism with which the scaler proceeds. In view of this
condition, I feel satisfied that the practice in effect on the Quinaielt
sales will always result in showing a greater volume than that generally
shown by Commercial scalers in the Coast Country. This difference,
however, should never be more than 6 per cent if the proper deductions
are being made for defect and conservatism practiced in estimating the
taper.
As your Office is aware the Purchasers holding contracts on the
Quinaielt Reservation have contended that the scaling practice in effect
on the Quinaielt sales results in an increase of from 16 to 20 per cent
in the volume over that generally obtained in Puget Sound and Grays
Harbor. The reason for this contention lies in a check which the M. R.
Smith Lumber and Shingle Company and the Aloha Lumber Company obtained
on some logs which were shipped to the Puget Sound markets. This
condition worried me to considerable extent until I inquired carefully
into the method which was used in obtaining this check. I ascertained
after careful investigation that in the final analysis, neither of these
companies were sure of the comparative scale on these logs.
In the case of the Aloha Lumber Company eleven cars were included in
their check which came from their own operation and upon which they had
no scale whatsoever, but only an estimate. This estimate, mark you, was
based on a volume of 6500 feet per car or fully 1500 feet feet over the
average for car loads of cedar in this country. It is obvious therefore
that in reality the Aloha Lumber Company had no check on the government
scale whatsoever, and that the figures upon which they based their
contention were wholly unreliable. This same condition applies also to
the M. R. Smith Lumber Companies' statement and I therefore gave no
further consideration to these complaints. I am convinced after a
careful study of the problem that there is only one way in which a check
scale can be made of this timber and that is by checking on the cars
before they go into transit. Any other method is wholly unreliable.
The Hobi Timber Co had made a check on the cars either in the woods
or at the landing and they show a discrepancy of less than seven per
cent. This is due as I have stated above to the use of the 32 foot
maximum by the government scalers and cannot be eliminated, unless the
40 foot maximum is adopted.
The officials of the Quinaielt Indian Reservation have informed me
that during the life of the timber operations here there has been a
constant turnover in the scalers positions. Since Oct.1, 1923 to the
present writing, five men have been dropped from the pay roll and six
new men taken up. This is a turnover of 66 2/3 per cent of the active
personnel and indicates a rather serious condition. The chief reason
for the constant separations appears to be the inadequate compensation
received in proportion to the salaries paid for this class of work in
the commercial world.
This constant turnover in the personnel has a direct bearing on the
efficiency in scaling practice and we cannot hope for any efficient
results until there is a fixed personnel. Mr. Steer has assured me that
he has done all that is possible to hold the men but that they are
constantly leaving to accept positions with larger salaries.
I realize fully that the basic salaries for scalers throughout our
Service is $1080.00 per annum, but when one considers the type of man
that is required for this class of work on the Coast in comparison to
the men on our pine sales this basic salary is hardly applicable.
Scaling in this class of timber is very much more difficult than scaling
on our pine sales. It requires that the men be constantly on the
operation in the field for fully nine hours a day besides bing
classified in a very hazardous occupation. The scalers on our pine
sales really undergo very little risk and have a position which is much
more desirable than our men on these sales at Quinaielt. In view of
this condition, I am fully convinced that the basic salary for scalers
at Quinaielt should be placed at $1200.00 and that the men in charge of
the sales should receive not less than $1400.00 per annum. Unless there
is an adjustment made of the salaries in these positions it will be
impossible to reduce the scaling practice here to a sound and efficient
basis, since the constant turnover experienced in the past can never
result in an efficient personnel.
In view of the findings of our investigation covering the scaling
practice in effect on the Quinaielt Indian Reservation, I hereby make
the following recommendations:
(A) That all scalers be instructed to use conservatism in
estimating the taper on logs and than an increase of not more than
one inch be made for taper except in sound logs.
(B) That the proper deduction be carefully made for all
defective hemlock butts. The hemlock on the Quinaielt sales is
cut comparatively low and almost without exception there is a
presence of butt defect to a point above the root swelling. The
presence of this defect has not been given the proper
consideration in making deductions.
(C) That proper deductions be made on all wind fall fir and
spruce logs. These are seldom more than two thirds merchantable
and it is the general practice among experienced scalers to cut
them from one third to one half, regardless of the appearance on
the end of the log. There is much defect in this class of timber
that is difficult to detect.
(D) That the presence of "conk" in spruce and fir be given
careful consideration by the scalers. This is a very tricky
defect and my observations have led me to believe that the men do
not fully understand how serious this defect is. It sometimes
shows only in a very small spot or a rotten knot but may be
present throughout the log when it is opened up.
(E) That McCalvy be given the opportunity of instructing the
men in scaling defective cedar. Mr. McCalvy is a very competent
log scaler and if conditions permit the younger men should be
given the advantage of his experience.
(F) That the basic salaries for scalers under the Taholah
Agency be increased from $1080.00 to $1200.00 per annum and the
men in charge of the sales to $1400.00 per annum in order to
eliminate the constant changing personnel.
(G) That as soon as the opportunity will permit a study be
conducted at the M. R. Smith Lumber and Shingle Company's mill and
the Aloha Lumber Company's mill, to determine the shingle cut from
the very defective cedar on these units. I am convinced that this
will prove an excellent plan and assist materially in reducing the
scaling practice in effect at Quinaielt to a practicable basis.
This cedar is very hard to scale and it will simplify the problem
greatly if the results are carefully checked against the cut. It
is impossible to do this at present since both companies are
logging some of their own timber, but this opportunity will no
doubt present itself in the near future.
In conclusion of my report on this matter I wish to state that in
general the check scale has proven very satisfactory, especially when
one considers the very difficult class of timber with which these men
are working and the very severe and hazardous conditions surrounding
this activity on the Quinaielt Reservation. I have talked with all of
the scalers involved and instructed them along the lines which I
believed needed correction and I feel assured that the practice will
adjust itself, provided the men now employed continue to remain in
service. Mr. Steer has done all in his power to hold the men but this
is a very difficult matter under existing conditions and unless there is
some adjustment made of the salaries, the large turnover in positions
experienced here during the life of these operations will no doubt
continue to be a serious problem.
Respectfully submitted
Forest Valuation Engineer.
HES-003-2284-2294
HES-003-2284-2294
IIA23.1
COMM OF INDIAN AFF
210827
CORRESPONDENCE
NICHOLSON, NELS O
Forestry
40280-21
W V B
Hoquiam, Wash.
Aug.27, 1921
Commissioner of Indian Affairs
Washington, D. C.
Dear Sir:
In accordance with Office letter of June 17, 1921, and wires of
August 11 and 18, there are enclosed herewith two copies of a form of
contract and attached General Timber Sale Regulations covering the sale
of approximately 12,000,000 feet B.M. of timber, application for which
was made by P.L. Granstom, of Hoquiam, Washington, in his letter of June
8.
The form of contract used is the same as that applying on the Moclips
Unit Sale, the differences being those deemed necessary by the different
type of operation and because of the fact that the proposed sale
includes only allotted timber. Attention is called to these differences
by underling them on the second copy enclosed in order that changes can
be made if deemed advisable.
A six year operating period is figured as being sufficient to log
this unit, except that extended periods of market depression,
necessitating shutdowns, may draw this period out somewhat. It is
thought advisable to hold the contract period down to six years and, if
necessary, extend it under Regulation 43, rather than to include either
one more three year period or part of one. Seven years might be a
better period and would more nearly insure the logging within the
contract period. Nine years would however be longer than is necessary
and it might be that there would be objections to signing
powers-of-attorney for a longer period where there would be none for a
six year period.
For purposes of stumpage price readjustments for the period of the
contract beginning April 1, 1925, log values for the three year period
ending January 1, 1920(1917-1918-1919)have been taken, rather than
figures for the three year period 1918-1919 and 1920, which should
ordinarily have been used.
Log prices for all species were unusually high during the year 1920.
Since then log values have taken a decided drop and were 1920 included
in the three year period, there would have been obtained an average
figure so high, that it would practically preclude any readjustment
April 1, 1925, even though actual conditions for the years
1922-1923-1924 might have justified an increase on that date.
There are listed below average log values for the three year periods
1917-1918-1919 and 1918-1919-1920; the first six months of 1921 and for
the month of July, 1921 in order that comparisons might be made of the
variations.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
It will be noted that the prices for the three year period
1918-1919-1920 are considerably higher than those for the three year
period 1917-1918-1919; the Douglas Fir average being $4.00 higher;
Spruce $3.00; Cedar $5.25 and Hemlock $4.50. Also, that while the
prices for the first half of 1921 were much lower than those for the
three year period 1918-1919-1920 they are slightly higher than those for
the period 1917-1918-1919. All log values have fallen since the first
of the year and it will, I believe, be safe to figure that the log
values for the three year period of the contract 1922-1923-1924, will
not be in excess of those for the period 1918-1919-1920. Were the
figures for 1918-1919-1920 to be taken it would mean that no adjustment
would be possible and it would seem advisable to adopt the
1917-1918-1919 values in order that a readjustment would be possible at
least, and, in the event that comparative cost and selling figures for
the three year periods 1917-1918-1919 and 1922-1923-1924 would indicate
that no increase in stumpage should be made such action would be left to
the discretion of the Office.
Falling & Bucking ......... $ 1.40 per M. ft B.M.
Yarding & Loading ........... 3.60
Woods r.r. haul ..............2.60
Freight to Hoquiam .......... 2.20
Booming, towing etc ............40
General Expense ............. 1.40
Total .......................11.60 per M. ft. B.M.
The costs are figured on the basis of logging costs per M. feet B.M.
Should this Unit be sold as offered, for a shingle mill location, the
timber will be logged as bolts, by the cord, but in as much as this Unit
could be included as part of a larger logging unit it should be held to
be worth, either as a logging unit or mill location, what it would
figure on a log basis, as from a shingle mill standpoint the number of
uncertain factors entering would scarce make the indicated stumpage
values greater than those figured on a logging basis.
TABLE OMITTED SEE ORIGINAL
I would recommend that the following prices be used as minimum
prices:
Cedar ........ $2.50 per M. ft. b.m.
Spruce ........ 2.25 per M. ft. b.m.
Hemlock and
other species. 0.60 per M. ft. b.m.
Cedar poles ... 0.01 1/2 per linear foot.
With the large variations in both log values and logging costs for
three year periods such as 1917-1918-1919 and 1918-1919-1920, or for
periods such as the first six months of 1921 or the month of July 1921,
fair and representative figures for different periods could be submitted
that would tend to show corresponding variations in the indicated
stumpage values. Wages, cost of materials and logging prices are still
varying, but the costs submitted above would be fair basis on which to
base prices effective at present and would also serve as a basis of
comparison for 1917-1918-1919 data with that of 1922-1923- 1924.
If used as a shingle mill location very little of the Hemlock could
be utilized, but the entire amount, if charged against the Cedar at the
price of $0.60 per M. would increase the Cedar price but $0.076 per M.
In the same manner the Spruce, if charged against the Cedar would
increase the cost of the Cedar $0.28 per M. It is likely however that
even as a bolting operation that much of the Spruce can be utilized as
veneer blocks.
The above prices are considerably lower than those for which the
Moclips Unit timber was offered and sold. While the cedar on this unit
is of fair quality none of it is first class. The spruce and hemlock
are both poor in quality. The timber being on a bench with a sharp
break to the beach represents a difficult and expensive logging show,
either as a bolting or a logging operation.
Except that there is at present considerable demand for high grade
cedar for 'Jap blocks' the market for cedar is poor. Shingles are low
with little inducement for operators to go into shingle mill locations.
At the time the Moclips Unit was offered cedar logs had been selling
from $20 to $35 per M for almost a year and continued at those peak
prices for several months after the sale was made. While immediate high
prices, with no prospect of their holding up for any length of time,
should not have much weight on prices effective over a long period, they
still do, and the prices realized on the Moclips Unit were to a large
extent due to the fact that log values, cedar especially, were high at
the time the Unit was offered. While the Moclips Unit has considerable
advantage over a Unit along the beach, were it to be offered today I
doubt that prices within $0.50 to $0.75 per M of those realized, could
be obtained.
Whether or not this Unit will sell is problematical. There is,
however, enough probability to justify its being offered. There are a
number of small shingle mill operators in this vicinity who would at
least be interested in the unit and would probably bid if they can see
their way clear to do so. While there is no assurance that the present
demand for 'Jap blocks' will continue, the present demand might serve to
interest prospective purchasers.
No Douglas fir is shown on the cruise of the area included in this
unit and while there may be a few trees, none were seen in the several
times I went over the area. Average figures are, however, included in
connection with the readjustment data and while they probably will not
be used there should be no objection to their being included. If an
occasional tree be found it would be small and scrubby and under the
regulations submitted, it would come under the classification of 'other
species' and would be priced the same as Hemlock, which would be proper
enough in this case.
Very truly yours
/s/ Nels Nicholson
Forest Examiner at large
c.c. Taholah Indian School
ANSON UNIT:
THIS AGREEMENT entered into at Taholah Agency, Washington, this . . .
day of . . 1921, under authority of the Act of Congress of June
25,1910,(36 Stst. L., 855-857) between the Superintendent of the Taholah
Indian School, hereinafter called the Superintendent, for and in behalf
of Mike Simmons, Mrs. John Tyee, John Tyee, and Johnnie Johns, Quinault
Allottees, party of the first part, and . . . of . . . party of the
second part, hereinafter called the purchaser.
WITNESSETH, that the Superintendent, in consideration of the
agreements by the purchaser, agrees to sell to the purchaser upon the
terms and conditions herein stated and the General Timber Sale
Regulations hereto attached and made a part of this contract, all the
merchantable dead timber, standing or fallen, and all the merchantable
live timber marked or otherwise designated by the officer in charge for
selective logging as required by the attached General Timber Sale
Regulations comprising trees fourteen inches and larger in diameter at a
point four and one-half feet from the ground and estimated to be
approximately as follows:
Live Cedar ......... 5,712,000 feet B. M.
Dead Cedar ......... 3,967,000 feet B. M.
Spruce ..............1,209,000 feet B. M.
Hemlock .............1,224,000 feet B. M.
Total ..............12,112,000 feet B. M.
Cedar poles ........... 61,000 linear feet.
Area ............... 320 acres all located on alloted lands within a
tract of about 320 acres, known as the Anson Logging Unit, lying in the
southwest portion of the Quinault Indian Reservation and described as
follows:
3 1/2 Sec. 33, T. 21 N., R. 12 W.; Wilamette Meridan.
All of this timber is on an area of 320 acres of allotted land and
the Superintendent authorizes the purchaser to enter into separate
contracts with Indians holding trust patented allotments within the
limits of the area above defined for the purchase of their timber,
subject to Indian Service regulations.
FOR AND IN CONSIDERATION of the agreements by the Superintendent, the
purchaser agrees that prior to March 31, 1928, he will cut and remove
all the timber covered by this contract and will pay to the
Superintendent, for the use and benefit of Mike Simmons, Mrs. John Tyee,
John Tyee and Johnnie Johns, Quinault Allottees, the full value of the
said timber at fixed rates per thousand feet, board measure Scribner
Decimal C log scale, which rates for specified periods of the contract
shall be as follows:
(a) For the period ending March 31, 1925.
For live and dead Cedar . . . dollars and . . . cents.
For live and dead Spruce . . . dollars and . . . cents.
For Hemlock, White fir and all other species . . . dollars and . . .
cents.
AND per linear foot:
For cedar poles with not greater than 9'' top diameter . . . cents.
(b) For the three year period of the contract term beginning April
1,1925, such prices for each species as shall be fixed by the
Commissioner of Indian Affairs in the manner hereinafter described.
The purchaser further agrees that within three months from the date
of approval of this contract he will enter into approved separate
contracts of purchase with such Indians holding trust patented
allotments within the above defined area as desire to sell their timber
and that he will pay to the Superintendent in trust for such Indians the
full value of the allotted timber covered by such contracts at the
prices stipulated and subject to the attached regulations, restrictions
and provisions as to periodic increases in price, and he also agrees
that within thirty days from the approval of the contract on any
allotment he will pay ten per cent of the estimated value of the timber
thereon as an advance payment and, further, that within 3 years of the
approval of this contract he will pay an additional fifteen per cent of
the estimated value of the timber thereon as an advance payment.
The purchaser further agrees that prior to the time when the stumpage
value of the timber cut shall exceed the cash deposit of fifteen hundred
dollars ($1,500) submitted with his proposal to purchase timber, he will
make another cash deposit of not less than fifteen hundred dollars
($1500) to cover further cutting and that he will make additional
deposits of $1500 each at such times as may be necessary to insure that
the stumpage value of the timber cut and not paid for at any time shall
not exceed the cash deposit then in the hands of the Superintendent.
The purchaser further agrees that he will cut and remove from some
portion of the sale area at least one million feet board measure, log
scale, prior to Mar. 31,1923, and not less than one million during each
twelve months thereafter until the contract is completed; that he will
remove and pay for pieces twelve feet and longer, will utilize the trees
to a diameter of twelve inches in the tops where straight and sound, and
will pay for all logs on the basis of a scale recognizing thirty-two
feet as the maximum length of a single log; that all timber will be
considered merchantable as provided for in the attached regulations,
except that Hemlock and White Fir must be one-half or more sound; and
that he will conform with all requirements of the Indian Service General
Timber Sale Regulations which are attached hereto and made a part of
this contract.
For the purpose of stumpage price readjustments by the Commissioner
of Indian Affairs at the close of the first period of the contract as
specified above, it is hereby stipulated by the Superintendent and the
purchaser that the average value of the following standard log rates as
recognized generally in Grays Harbor markets for the three year period
ending January 1,1920, have been as follows: TABLE OMITTED SEE
ORIGINAL.
In determining the stumpage rates to be designated for all timber
scaled during the three year period beginning April 1, 1925, the average
value of logs at mills operating in Grays Harbor during the three years
directly preceding January 1, 1925, will be compared with the value of
logs as stipulated in preceding paragraph as basic values, and the cost
of logging operations during the said three years will be compared with
the cost of such operations during the three year period preceding
January 1, 1920, for the purpose of ascertaining, so far as is
practicable, whether there has been generally in the lumber industry in
the specified region an increase in the margin of profit on logging and
manufacturing operations during the three year period directly preceding
January 1, 1925.
Any advance in stumpage price prescribed by the Commissioner for the
three year period beginning April 1, 1925, shall not exceed fifty per
cent of the difference between the average value of logs of that species
at mills as stipulated above and that for the same species during the
three years directly preceding January 1, 1925. And further, the
Commissioner of Indian Affairs shall have the right on dates set for the
readjustment of the saw timber prices, to readjust the stumpage prices
to be paid under this contract for Cedar poles, and to increase the
stumpage on cedar poles not more than one half cent per linear foot. In
the discretion of the Commissioner a reduction in the stumpage price of
any species may subsequently be made to correct any error or to afford
the purchaser relief from a market depression that deprives the
purchaser of a substantial margin of profit; PROVIDED THAT the stumpage
price of no species will ever be reduced below the rate bid for the
initial period of the contract.
Notice of the new schedule of prices shall be given the purchaser by
letter not later than the first day of March, 1925. Although the
determination of the new rates shall lie wholly within the discretion of
the Commissioner of Indian Affairs a hearing will be afforded the
purchaser upon written request presented at least fifteen days before
the date upon which the new stumpage rates are to become effective for
any period.
The slash on the sale area, both that already on the ground and that
resulting from the logging operations, shall be burned by the purchaser
at such times and in such manner as the officer in charge may direct.
No slash shall be burned during the period from May 1 to September 30
without the written consent of the officer in charge. Such fire lines
as are necessary for the safe burning of all brush shall be cleared by
the purchaser for a width of not to exceed eight feet, and when
necessary a strip of mineral earth three feet in width will be exposed
in the fire line parallel to its sides. If it shall be found that the
cost of clearing fire lines and burning slash for any of the three year
periods has exceeded ten cents per thousand feet, board measure of saw
timber, log scale, such excess without interest, will be reimbursed to
the purchaser. Any reimbursement under this regulation will be charged
to the timber owners whose timber has been cut during the three periods
in question on a pro rata log scale basis.
It is further understood and agreed that this contract shall be void
and of no effect until approved by the Commissioner of Indian Affairs
and until the latter shall approve a bond of the purchaser in the penal
sum of two thousand dollars ($2,000) conditioned on the faithful
performance of all the terms of this contract and the regulations
attached hereunto.
Signed and sealed in quadruplicate this . . . day of . . . , 19 . . .
Witnesses:
Purchaser
. . .
. . .
Superintendent
. . .
. . .
The above contract is approved this . . . day of . . . , 19 . . .
. . .
. . .
Sealed bids in duplicate, marked outside, "Bid, Anson Unit," and
addressed to the Superintendent, Taholah Indian School, Taholah,
Washington, will be received until twelve o'clock noon, Pacific time, .
. . for the purchase of timber on the tract in township 21 north, range
12 west, Wilamette Meridan, in Quinault Indian Reservation. The said
unit contains about 320 acres with a total stand of about 12,000,000
feet, all allotted, as to which separate approved contracts with the
Indian owners may probably be made. The said embraces approximately
10,000,000 feet of cedar, 1,000,000 feet of spruce, 1,000,000 feet of
hemlock, and 81,000 linear feet of cedar poles. Each bid must state the
price per thousand feet Scribner decimal C log scale that will be paid
for timber cut and scaled prior to April 1, 1925. No bid will be
considered for the first period of less than the following rates per
thousand feet: two dollars and fifty cents ($2.50) for live and dead
cedar; two dollars and twenty-five cents ($2.25) for live and dead
spruce, sixty cents ($0.60) for hemlock, white fir and other species;
and per linear foot for cedar poles with not greater than a nine-inch
top diameter, one and one-half cents (.015). Each bid must be
accompanied by a certified check of $1,500. The deposit will be
returned if the bid is rejected, but retained as liquidated damages if
the required contract and bond are not executed and presented for
approval within sixty days from the acceptance of a bid. The right to
reject any and all bids is reserved. Copies of the bid and contract
forms and other information may be obtained from the Superintendent,
Taholah Indian School, Taholah, Washington. Prices subsequent to April
1, 1925, will be fixed by the Commissioner of Indian Affairs by three
year periods.
Forestry
49280-21
W V B
Hoquiam, Wash.
Aug. 23, 1921.
Commissioner of Indian Affairs
Washington, D. C.
Dear Sir:
There are submitted herewith two copies of a form of contract and
advertisement covering the proposed sale of the Anson Logging Unit. I
have no copies of the General Timber Sale Regulations here at present
and will send the other data through rather than hold it up until I get
them from Taholah.
No steps have been taken to secure powers-of-attorney from the
allottees affected and none will be taken until so instructed from the
Office.
The Unit being small it probably would not interest distant operators
and it would seem that if well advertised for thirty days that
sufficient advertisement would be secured.
Very truly yours
/s/ Nels Nicholson
Forest Examiner at large
c.c. Taholah
HES-003-2295-2306
HES-003-2295-2306
IIA21.1
COMM OF INDIAN AFF
200107
CORRESPONDENCE
NICHOLSON, NELS O
Forestry
J P K
Hoquiam, Wash.
(ILLEGIBLE)
Commissioner of Indian Affairs
Washington, D. C.
Sir:
I am submitting herewith some data in connection with the proposed
sale on the Quinault Indian Reservation.
With the exception of the (ILLEGIBLE) all of the track, where there
is quite an abrupt (ILLEGIBLE) to the (ILLEGIBLE) as a whole is quite
level and will present no real difficulties as to logging. As
(ILLEGIBLE) of (ILLEGIBLE) the area: either along the (ILLEGIBLE) River
or in the extreme West end and as I consider the letter (ILLEGIBLE)
likely of (ILLEGIBLE) two the (ILLEGIBLE) was outlined (ILLEGIBLE) good
railroad location from this end. (Illegible) boundary was made such as
it is so as also to (ILLEGIBLE) the entrance of another possible sale
(ILLEGIBLE), from the West boundary of this proposed unit to the beach
and North to the Quinault River.
Directly north of this unit as outlined there (ILLEGIBLE) patented
allotments. (ILLEGIBLE) sale were made (ILLEGIBLE) of these patented
areas would no doubt be acquired by the purchaser, in which event it
would be possible to (ILLEGIBLE) of allotments which it would not be
possible to reach at present. In (ILLEGIBLE) to these patented areas,
about 1000 acres, there is about 400 acres of merchantable timber in
this portion of the reservation.
Below are (ILLEGIBLE) logging costs for this area (ILLEGIBLE) at
present. These costs are (ILLEGIBLE) to the markets at Hoquiam and
include a main line railroad haul of (ILLEGIBLE) miles (ILLEGIBLE) to
Hoquiam. As it is customary in this region for the (ILLEGIBLE) to
deliver logs to the mill, a (ILLEGIBLE) cost is included. This is
however made low as in many cases the logs could be dumped at the mill
pond.
Falling and bucking ......................... 1.60
Yarding and loading ......................... 4.00
Wire rope .................................... .40
Depreciation, logging equipment ................30
Spur tract construction ..................... 1.30
R.R. haul, coal, oil .........................1.00
R.R. haul, Moclips to Hoquiam ................1.00
Depreciation, R.R. transportaion equip..........30
Booming and rafting ............................50
Scaling ...................................... .06
Salaries and wages .............................40
Sundry expenses .............................. .60
Taxes, industrial and Medical Aid Insur.........90 E)
Administrative expense ....................... .35 IBLE)
Total ...................................... 12.00 per M.
These figures are somewhat higher than those submitted as applying to
the Tulslip. This is partly due to the fact that a main line haul is
necessary from Moclips to Hoquiam. At present there is a rate of $1.44
per M. from Moclips to Hoquiam and it is probable that a better rate can
be secured for the amounts that would result from this sale. These
rates are, however, based on a minimum of (ILLEGIBLE) per car and with
the large amount of Cedar the average loads would fall below this
minimum and bring the rate per M up to the above figure. A stand with a
larger amount of Douglas Fir or Spruce could be logged somewhat cheaper
and it is probable that with the amount of Cedar on this area that the
costs for the Cedar at least will be in excess of this figure.
The wages in effect at present are as follows. These wages were
agreed on between the operators and loggers and are to serve as a
minimum for the respective kinds of work. In practice men who remain in
the job for three months generally receive an increase of $0.25 per day
and men, better than the average for the various positions often receive
considerable in excess of the minimum. These wages, will be of value in
comparing costs at present with future costs and as they are so much
higher than those pervailing under normal times there will be
considerable room for variation.
Standardized Wage as agreed on by employees and employers of the
Loyal Legion of Loggers and Lumbermen and as general by used on Grays
Harbor. TABLE OMITTED SEE ORIGINAL
Taking the prices for the past six months and the logging cost
submitted as a basis the following would result.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
The price of cedar has jumped so greatly that it can not be taken as
anything stable for any long period. All shingle shipping having been
practically (ILLEGIBLE) during the war the present prices are a natural
reaction now that shipping has commenced and though present prices are
high they could not be figured on for a period the duration of this
sale. The price that might be obtained would depend to a large extent
on how much an operator would be willing to gamble on present prices.
While a small tract that could be logged in a year or two would bring a
larger price it could not be held that any such prices would prevail
during a term of eight years.
On the above basis with the average value of 20.00 for the last half
year of 100000 the indicated stumpage would be 10.82. The average value
of cedar for the last three years was 16.15 and for the last five years
was 14.10.
White pine in this vicinity is not listed and is bunched in with the
hemlock and sold as such. Using the same basis as above and the average
price for the past half year stumpage @ 13.00 - 1.20(ILLEGIBLE) or a
loss of 2.12. They will however pay for all actual operating expenses,
including overhead and the prices recommended are fair values.
Some of the White Pine on the area is of good quality and trouble
were taken to sort out the small amounts a better price than that of
Hemlock could be obtained.
Much of the Cedar on this area is of poor quality and the 40's with
the lightest stands are of cedar of a poor quality which will be
expensive to log. The area was made so as to include anything that
represented fair logging stands although some of the 40's stand quite
light.
I would urge that this unit be offered as soon as possible and if
possible sometime this spring in order that, if sold, work could be
started this summer with the dry weather. There will be a number of
operators interested I am certain all of whom would want to get started
as soon as possible. I have gone over parts of the area with a number
of possible operators who seemed anxious to bid on the unit if offered.
With one or two possible exceptions I doubt that powers of attorney
have been obtained but I have no doubt but that all the Indians affected
would be willing to sell at the above prices.
Very truly yours
/s/ Nels O. Nicholson
Deputy Supervisor of Forests
Forestry
J P K
200108
Hoquiam, Wash.
Commissioner of Indian Affairs
Washington, D. C.
Sir:
There are submitted herewith proposed regulations for a sale in the
southwest portion of the Quinault Indian Reservation.
In the estimates the Hemlock estimate has been cut 25%. Owing to the
large amount of defect in a large part of the hemlock, I think that this
species, as compared with the others is probably overestimated to that
extent. Cutting the hemlock this amount, will I think make the amounts
of the different species more nearly correct. This is of importance
only in that the amount of hemlock in a stand is always held against it
and overestimating the % of hemlock would act as a drawback to a unit of
timber.
It will be noted in the log values submitted that there is a great
variation. In this connection I would call attention to clause (e),
page 4. It is very probable that on any of the adjustment periods that
although the actual log selling prices may be lower than the average
prices used in the adjustment clause, that there may be a greater
difference between the logging price and selling price due to a marked
decrease cost of logging. It would seem no more fair to give the
operator credit for the increase in cost of logging since a sale were
made than it would to give the Indians the benefit of a decrease in cost
of logging, which might or might not, of course, act as a real increase
in stumpage values. I would think it wise at least to leave the way
open for an adjustment based on a fair appraisal of operating conditions
and not alone on log values which might vary and in no way affect
stumpage values.
Regulation 3 (page (ILLEGIBLE)) calls for ten per cent of the
estimated value of the allotted timber only.
Regulation 13 may be of importance under a number of probable
conditions.
Regulation 20 calls for the branding of logs by the operator. With
government scalers doing the scaling there may be nothing to be gained
by this. In the event though that there will be two or more sides in
operation it is quite likely that the number of scalers can be reduced
as it would be possible to scale on the cars after they have been made
up and in that way scale for one or more landings and a number of
allotments.
The advertisement should be carried in the 'Timberman' of Portland,
'The Washingtonian' of Hoquiam and in the 'Postintelligencer' of
Seattle.
Very truly yours
/s/ Nels O. Nicholson
Deputy Supervisor of Forests
HES-003-2307-2314
HES-003-2307-2314
IIA20.1
COMM OF INDIAN AFF
000000
CORRESPONDENCE
U.S. DEPARTMENT OF JUSTICE - LAND & NATURAL RESOURCES DIVISION
CAMERA OPERATOR CASE NAME DATE PAGE OF LOCATION FILE CABINET # BOX #
THRU DRAWER# FOLDER# LABEL NAME MICROFILM NUMBER
FRAME
REEL START END
TARGET SHEET HES003 0001 -
IL40.1-K24.1 7-110
CUTTING, GRENVILLE,
CONTRACT, LOGGING,
STUMPAGE PRICE 1926-4 0002 - 0190
IR29.1 - IR70.8 167
REFORESTATION, TI MBER
CUTS ALLOTMENTS CONTRACTS
SCALING STUMPAGE MIS MAN-
AGEMENT 1929-70 0191 - 953
IIA73.1 167
1972-73 REFORESTATION -
QUINAULT RESERVATION 954 - 967
IIA72.8 179
MEMO DEALS WITH REPRO-
DUCTION SURVEY QUINAULT
INDIAN RESERVATION 968 - 970
II A72.7 167
MEMO 1971-1972
REFORESTATION 971 - 983
IIA72.6 162
RPT ON FORESTRY AND
RELATED RESOURCES
MANAGEMENT 984 - 1009
IIA72.5 162
MEMO FORESTERS COMMENTS
WAYNE CHAPMAN RPT 1010 - 1025
IIA72.4 162
MEMO ON FORESTRY AND
RELATED RESOURCES
MANAGEMENT HES003 1026 - 1038
CONTRACT COMPLIANCE
UNDER TIMBER CONTRACTS
WITH ITT RAYONIER 1039 - 1051
IIA72.7 101
COMPARISON SCALING RPT 1052 - 1056
IIA72.1 101
BUFFER STRIPS FOR
STREAMSIDE PROTECTION 1057 - 1069
IIA71.5 179
REPRODUCTION SURVEY
CRANE CREEK AND TAMOLAH
LOGGING UNITS 1070 - 1099
IIA71.4 167
MEMO ON REFORESTATION
1971 1100 - 1104
IIA71.3 156
INSECT INFESTA-
TION DOUGLAS FIR
SEEDLINGS 1971 1105 - 1109
IIA71.2
MEMO ON TSI,
REFORESTATION
ACTIVITIES 1970 1110 - 1116
IIA71.1 101 HES003
MEMO ON FUNDS WITH-
HELD TAHOLAH CRANE
CREEK 1971 1117 - 1118
IIA70.2 190
ANALYSIS OF LOG PRICES
PLUS STUMPAGE RATES
1970 1119 - 1120
IIA70.1 161
SUMMARY OF RESERVATION
DEVELOPMENT STUDIES
1970 1121 - 1141
IIA69.7 153
INDIAN TIMBER
PRODUCTION 1142 - 1148
IIA69.1 149
SUGGESTED SUBJECTS
FOR INDIAN ECONOMIC
DEVELOPMENT 1149 - 1152
IIA68.10 160
RPT ON SUMMARY TABLES
OF INDIAN FORESTRY
PROGRAM 1153 - 1200
IIA69.6 153
MEMO ON INDIAN
FORESTRY PROGRAM 1201 - 1202
IIA69.5 153
MEMO PRINCIPLES APPLY
BY GOVT MANAGING
INDIAN FORESTS 1203 - 1210
IIA69.4 153
MEMO ON DISCRIMINATORY
PRACTICES BY GOVT 1211 - 1214
IIA69.3 150
MEMO REASONABLENESS
OF ROAD FEES 1215 - 1216
IIA69.2 150
MEMO ON RPT OF
QUINAULT LAND, TIMBER
SALES 1217 - 1221
IIA68.9 158
MEMO ON RESEEDING
STUDY 1222 - 1225
IIA68.8 153
ANALYSIS OF INDIAN
CONTRIBUTION PAYING
COST ON FOREST 1226 - 1231
IIA68.5 - A68.7 150
MEMOS ON SPECIAL TASK
RPT ON QUINAULT LAND,
TIMBER SALES 1234 - 1242
IIA68.4 150
MEMO PROPOSAL FOR
BUREAU ACQUISITION
PRIVATE ROAD RIGHTS 1243 - 1245
IIA68.3 150
APPROVAL RECOMMEN-
DATIONS BY SPECIAL
TASK FORCE 1246 - 1259
IIA68.2 145
TEN YEAR REHABILITA-
TION PLANNING PROGRAM
1968 1260 - 1269
IIA68.1 140
SLASH DISPOSAL 1968 1270 - 1274
IIA67.5 184
COMPARISON OF STUMPAGE
RATES ALLOTMENT 2087 1967 1275 - 1277
IIA67.4 183
SCALING PRACTICE TAHOLAH
UNIT AS AFFECT STUMPAGE 1278 - 1283
IIA67.2 - A67.3 158
EMERGENCY FISH PROTECTION
MEASURES RAFT RIVER 1284 - 1289
IIA67.1 149
INDIAN EMPLOYMENT FOREST
INDUSTRIES 1290 - 1294
IIA65.1 - A66.1 156
1965, 1966 FOREST PEST
CONDITIONS 1295 - 1296
IIA64.4 164
CONSOLIDATION OF ALLOT-
MENTS IN CRANE CREEK
TAHOLAH LOGGING 1297 - 1299
IIA64.2 - A64.3 164
PROGRAM FOR ACTION FOR
TAHOLAH, CRANE CREEK
TIMBER SALES HES003 1300 - 1309
IIA64.1 156
1964 FOREST PEST
CONDITIONS 1310 -
IIA63.3 180
STUMPAGE ADJUSTMENTS 1311 - 1315
IIA63.2 165
LOG SCALING BY WEIGHT 1316 - 1345
IIA63.1 89
ACCELERATED PUBLIC
WORKS PROGRAM 1346 - 1356
IIA62.4 - A62.5 178
REPRODUCTION SURVEY
CRANE CREEK 1962 1357 - 1357
IIA62.3 164
IMPROVING ADMIN AND
MANAGEMENT TIMBER
SALE UNIT 1368 - 1371
IIA62.1 104
PROBLEMS OF ORDERLY
MANAGEMENT OF TIMBER
RESOURCES 1962 1372 - 1381
IIA61.5 166
FOREST MANAGEMENT
PROCEDURES HES003 1382 - 1400
IIA61.4 165
REPRODUCTION SURVEY 1401 - 1405
IIA61.3 165
REPRODUCTION SURVEY
OF TAHOLAH LOGGING
UNIT 1961 1406 - 1409
IIA61.2 152
SPECIAL ALLOTTEE
TIMBER CUTTING
PERMITS 1961 1410 - 1411
IIA61.1 151
ADMINISTRATION OF
INDIAN LANDS TIMBER
CONTRACTS 1961 1412 - 1419
IIA60.3 149
EMPLOYMENT PROVIDED
BY INDIAN FORESTS 1420 - 1427
IIA60.2 88
FORESTRY ACTIVITIES
1960 1428 - 1431
IIA60.1 89
TIMBER STAND CONDI-
TIONS AND FORESTRY
ACTIVITIES 1960 1432 - 1444
IIA59.6 171
STUMPAGE READJUSTMENT
1959 1445-1452
IIA59.5 171
VOLUME VALUE OF
TIMBER CUT AND
SCALED 1958 1453 - 1454
IIA59.4 87
RPT ON NEGOTIATED
CEDAR SALVAGE SALE 1455 - 1456
IIA59.3 87
FORESTRY ACTIVITIES
1960 1457 - 1461
IIA59.2 87
INSPECTION OL LOGGING
OPERATIONS ON SOPHIA
WATCHMAN ALLOTMENT #444
1959 1462 - 1501
IIA59.1 87
FORESTRY PROGRAM
1959-1960 FISCAL
YEARS 1502 - 1506
IIA58.3 86
ANNUAL FORESTRY
REPORT 1958 1507 - 1511
IIA58.2 85
LOGGING BY ALTERNATE
CLEAR-CUT BLOCKS
1950 TO 1958 1512 - 1519
IIA58.1 85 HES003
COMMENTS ON APPRASIAL
RPT ON ALLOTMENT #988
1958 1520 - 1522
IIA55.1 163
ACTIVITIES OF PONDER-
SONA PINES 1523 - 1528
IIA51.1 95
PROCEDURE USING THE LOG
SCALING BUREAU 1529 - 1533
IIA48.1 107
RPT COVERING SALE
OF TIMBER 1948 1534 - 1571
IIA47.2 128
BUDGET ESTIMATES
FOR THE FORESTRY
DIVISION 1947 1572 - 1580
IIA47.1 5
STATUS OF CUTOVER
LAND 1947 1581 - 1604
IIA46.2 127
INFORMATION ON
CUTOVER LANDS 1946 1605 - 1606
IIA46.1 5
PROPOSED PLANTING
PROJECTS 1946 1607 - 1615
IIA45.2 126
PROPOSED INCREASE IN
STUMPAGE PRICES 1945 1616 - 1617
IIA45.1 5
SELECTIVE LOGGING,
SAMPLE PLOTS 1945 1618 - 1624
IIA44.6 125
INFORMATION ON
CUTTING CYCLE,
TIMBER RESERVE AND
PROPER MGMT 1944 1625 - 1626
IIA44.5 125
ROAD MAINTENANCE 1944 1627 - 1628
IIA44.4 5
SELECTIVE CUTTING
SAMPLE PLOTS 1944 1629 - 1633
IIA44.1-A44.3 3
STUMPAGE REVALUATIONS
1944 1634 - 1650
IIA43.2-A43.3 90
CHANGES IN LOGGING
PRACTICES ADVANTAGES
1943 1651 - 1667
IIA42.1 123
ESTIMATE AVAIL-
ABILITY OF SITKA
SPRUCE DOUGLAS
FIR 1942 1668 - 1672
IIA41.1 122
WINDTHROW DAMAGE 1941 1673 - 1675
IIA40.1
TIMBER RECORDS FOR
TIMBER SCALED 1940 1676 - 1686
IIA39.3 119
FIRE PREVENTION 1939 1687 - 1691
IIA39.2 80
MEMO ON EASTMAN ET
ALV. UNITED STATES 1939 1692 - 1698
IIA39.1 2
STRIP CRUISES ON SIX
ALLOTMENTS 1939 1699 - 1728
IIA38.3 2
SUSTAINED YIELD POLICY
1938 1729 - 1736
IIA38.2 1
REDUCING LOGGING
COSTS 1938 1737 - 1738
IIA38.1 1
INSPECTION OF FOR-
EST ACTIVITIES 1938 1739 - 1743
IIA37.2-A37.3 115
SPECIAL RPT ON FIRES
1937 1744 -
IIA37.1 1
INSPECTION OF TIMBER
SALES ACTIVITIES 1937 1758 -
IIA36.2-A36.1 114
HISTORY OF INDIAN
LOGGING 1936 1796 -
IIA33.1 138
ANNUAL FORESTRY RPT
1933 1824 -
IIA32.3 112
DISTRIBUTION OF TRIBAL
FUNDS 1932 1868 -
IIA32.2 112
VALUE OF SPRUCE LOGS
GRAYS HARBOR 1932 1878 -
IIA32.1 1
EXAMINING THE FIRE
PROBLEM 1932 1883 -
IIA31.1 105
ANSWERS TO FOREST
RESOURCES QUESTIONAIRE
1931 1890 - 1913
IIA30.3 138
FORESTRY RPT FOR FISCAL
YEAR 1930 1914 -
IIA30.2 129
RPT ON REFORESTATION
COMMITTEE GRAYS HARBOR
1930 1953 -
IIA30.1 1
RPT ON EXPERIMENT
STATION 1930 1961 -
IIA29.5 138
ANNUAL FOREST RPT
FISCAL YEAR 1929 1975 -
IIA29.4 105
BIDS ON UNITS OF
TIMBER 1929 2010 -
IIA29.3 1
RPT ON PROPOSED
LOGGING UNITS 1929 2016 -
IIA29.2 1
INVESTIGATION OF THE
PRACTICE OF SCALING
LOGS AFTER CARS LOADED
1929 2047 -
IIA29.1 1
FOUR SALE UNITS UP FOR
PURCHASE 1929 2053 - 2067
IIA28.1 138
ANNUAL FORESTRY RPT
FOR FISCAL 1928 2068 - 2101
IIA27.2 138
ANNUAL FORESTRY RPT
FISCAL YEAR 1927 2102 -
IIA27.1 111
ADVISABILITY OF RE-
SERVING A STRIP OF
TIMBER 1927 2135 -
IIA26.2 138
ANNUAL FORESTRY RPT
FISCAL YEAR 1926 2145 -
IIA26.1 1
TIMBER SALE ACTIVITIES
AND ACCOUNTING METHODS
USED 1926 2169 -
IIA25.3 106
ANNUAL FORESTRY RPT
FISCAL YEAR 1925 2175 -
IIA25.2 106
ANNUAL FORESTRY RPT
FISCAL YEAR 1924 2198 -
IIA25.1 1
GRAYS HARBOR LOG MAR-
KET LOGGING COSTS 1924 2221 - 2252
IIA24.1 138
RPT ON FORESTRY WORK
IN 1924 2253 - 2270
IIA23.2 109
RPT ON FORESTRY WORK
IN TAHOLAH 1923 2271 -
IIA23.1 1
INVESTIGATION OF
SCALING PRACTICE 1923 2284 -
IIA21.1 131
TIMBER SALE REGULATIONS
AND CONTRACTS 1921 2295 -
IIA20.1 134
DATA CONCERNED WITH
PROPOSED SALE OF
INDIAN RESERVATION 2307 -
CASE NAME: HELEN MITCHELL
DOCKET NUMBER: 775-71
REEL IDENTIFIER: HES; HELEN MITCHELL SEATTLE HES003-0001-2330
DATE OF FILMING: 5/16 AND 5/17 84
PRODUCTION SITE
NAME OF ORGANIZATION OR PERSON: ARTHUR BIGGS/RICHARD DECHREK
DISCOVERY LOCATION: US DEPT OF INTERIOR, OFFICE OF SOLIICITOR,
PACIFIC N.W.
500 N.E. MULTNOMAH ST
PORTLAND 97232
ROOM # 607
FILMED AT CONTRACTOR SITE YES NO X NAME OF CONTRACTOR: OCTO
DOCUMENTS PRODUCED BY:
PLAINTIFF DEFENDANT THIRD PARTY
INTERPLEADER
INTERVENOR
IMPLEADER
OTHER US SOLICITORS OFFICE
DOCUMENTS PRODUCED IN RESPONSE TO:
PRODUCTION REQUEST:
WAVE #
INTERROGATORY:
NAME:
DATE:
NO.
C.I.D.: OTHER:
LEAD DISCOVERY ATTORNEY (OR PARALEGAL):
PHONE #
HES-003-2315-2330
HES-003-2315-2330
000000000000000
840517
CORRESPONDENCE
TARGET SHEET
CASE NAME: Helen Mitchell
DOCKET NUMBER: 775-71 REEL IDENTIFIER: HES; Helen Mitchell Seattle
HES004 0001-
DATE OF FILMING: 5/16 & 5/17 84 PRODUCTION SITE
NAME OF ORGANIZATION OR PERSON: ARTHUR BIGGS/RICHARD Dedarek
503-231-2145
DISCOVERY LOCATION: U.S. DEPT OF INTERIOR, OFFICE OF Solicitor,
Pacific N.W.
ROOM # 607
FILMED AT CONTRACTOR SITE NO
NAME OF CONTRACTOR: UTC
DOCUMENTS PRODUCED BY:
PLAINTIFF
DEFENDANT
THIRD PARTY
INTERPLEADER
INTERVENOR
IMPLEADER
OTHER US. SOLICITORS OFFICE
DOCUMENTS PRODUCED IN RESPONSE TO:
PRODUCTION REQUEST:
INTERROGATORY:
C.I.D. :
OTHER : PRETRIAL DISCOVERY Transcripts & Expert Reports And Studies
LEAD DISCOVERY ATTORNEY (or paralegal): John Hitzelberg Paralegal Dan
Steel Attorney
PHONE # 724-7357
HES-004-0001-0001
HES-004-0001-0001
000000000000000
370320
CORRESPONDENCE
; QUINAULT INDIAN RE
STUMPAGE VALUATION REPORT
POINT CHEWVILLE UNIT (31250-21)
QUIMALULE INDIAN RESERVATION,
WASHINGTON
REPORT DATA MAR 20, 1937
RE: CHANGES TO BE EFFECTIVE 90 DAYS AFTER NOTICE, ETC.
This report is a finding of facts as to past and present worth
of stumpage on the Point Crenville Unit, Quinaielt Indian
Reservation, Washington, and particularly, whether there are
"sufficiently improved economic conditions" to warrant increase in
the stumpage prices charged under the revised contract approved
March 3, 1935, and recommendations to the Commissioner of Indian
Affairs, through the Assistant Director of Forestry, Mr. Lee Huck,
of the Spokane Office.
II. CONTRACTUAL PROVISIONS RELATING TO STUMPAGE PRICE RE-ADJUSTMENTS.
(a) The original contract on this unit was approved 5/25/22, and
was due to expire 3/31/35. The provisions of this original con-
tract as to stumpage price changes were that revision of stumpage
price could be made for three (3) year periods, beginning April
1st. in the years, 1926, 1929, 1932; the raw prices to be founded
on a comparison of log values and logging costs by three year
periods. The details of this procedure are now obsolete by reason
of revision in contract extension terms and so it is un- necessary
to quote them here. (b) The five year extension of Point
Grenville contract (from original expiration date 3/31/35 to
3/31/40) was approved March 3, 1935 by Assistant Secretary of the
Interior, and it reads as follows regarding procedure to modify
stumpage prices: (Quote)
"1. That the basic contract stumpage prices which
are in effect for the period ending March 31, 1935,
shall continue for the period of the extension be-
ginning April 1, 1935, except that the prices may be
revised in accordance with the provisions of the
following paragraph No. 2.
2. In order to afford mutual protection to the
Indians and the purchaser, prices may be revised
as follows: In the event of sufficiently im-
proved economic conditions the Commissioner of
Indian Affairs is authorized, after consultation
with the purchaser and after 90 days notice to
him, to increase the basic stumpage prices of
timber; and from thence forward the Commissioner
of Indian Affairs pay in his discretion, after
consultation with the purchaser and after 90
days notice to him, revise the stumpage prices
from time to time and for such portions as the
trend of economic conditions requires: Pro-
vided, that any new rate so established shall
not be less than the prices specified in the
contract. Provided further, that the require-
ment of notice is this paragraph shall be sat-
isfied when new stumpage prices, established
under its authority, are made effective 90 days
after the Commissioner of Indian Affairs has
given notice to the purchaser that he intends
to proceed under the authority of this para-
graph to change stumpage prices." (c) Other Contract
Modifications, Point Grenville Contract.
1. Moratorium on advance payments to allottees.
On July 29, 1952 the first Assistant Secretary of the
Interior approved a moratorium postponing in five install-
ments (with 6% interest) six months apart, the last advance
payments (totaling $5,014.72) due on eight allotment con-
tracts, then falling due in the unit. The last installment
fell due June 30, 1934, all were paid with interest as they
fell due.
2. Reduction in size of advance deposits.
On August 19, 1952 the 1st Assistant Secretary of the
Interior approved a modification (after consent by bonding
company) the letter accompanying the formal modification
reading that advance deposits might be made "as small as
$1000 each during the period of the present depression" in-
stead of the $10,000 each be resumed as soon as - the lumber
company is in a position to comply with the provision of the
contract." This company is now in a much better financial
position than in 1932 and we call for $5,000 deposits. When
we believe the $10,000 deposits can be made we will again
require them.
III. HISTORICAL
(1) Progress of cutting by contract years.
This data is shown in the accompanying sheets entitled
"Depletion, Point Grenville Units by contract years." (2) Waivers
of cutting requirements.
This information is also included at the end of this
"Depletion" schedule. (3) Original stumpage rates and subsequent
changes.
Effective dates of changes shown below. Species Orig 4/1/26
1/1/27 4/1/29 4/1/31 4/1/32 S. Fir $2.25 ------ ------ ------
------ ------ Spruce 2.25 2.75 ------ 2.50 ------ 2.25 Cedar 2.60
3.00 2.00 ------ 2.60 ------ W. Pine 1.50 ------ ------ ------
------ ------ Hemlock .60 .80 ------ ------ ------ .60 W. Fir &
other Species .60 ------ ------ ------ ------ ------
Cedar poles and Douglas Fir Filing, no changes, were made in prices
or piling during the life of contract to date.
Pole prices were 1/2 cent per lin. ft. for Cedar poles to 20 ft.
length 6" top limit.
Pole prices wer 1-1 1/2 cents per lin. ft. for Cedar poles 21-45
ft. length 9" top limit.
Pole prices were 1-3/4 cents per lin. ft. for Cedar poles 46 and
longer 9" top limit.
D.F. Oukubg 1 cent per lin. ft. not exceeding 18" butt diameter
limit.
(4) Stumpage price adjustments, effective letters.
2//19/26 Commissioner raised prices for 4/1/26 Cedar to $3.00
Spruce to $2.75, Hemlock to 80 cents.
12/15/26 Commissioner dropped for 1/1/27 Cedar down to $2.80.
2/28/29 Commissioner dropped for 4/1/29 Spruce down to $2.50.
3/8/30 Commissioner continued same prices another year.
3/18/31 1st. Assistant Secretary for 4/1/31 reduced Cedar to
$2.60 1 year only.
3/14/32 Secretary reduced for 4/1/32 Hemlock to 60 cents,
Spruce to $2.25 for 1 year.
2/16/33 Commissioner for 4/1/33 continued all the basic
prices for 1 year.
11/21/34 1st. Assistant Secretary for 4/1/34 continued all
the basic prices for another year.
1/12/35 1st. Assistant Secretary continues basic prices under
extended contract with new terms as to method of modification
of prices. TABLE ILLEGIBLE SEE ORIGINAL.
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL TABLE OMITTED SEE ORIGINAL
IV ECONOMIC SITUATION Trend in Grays Harbor Log Prices 1917-1936
TABLE OMITTED SEE ORIGINAL
PROBABLE FUTURE TREND GRAYS HARBOR LOG PRICES AND OF
Factors influencing future trends are as follows: First as to log
prices which are based on supply and demand and the competition of
lumber with other building materials;- Plywood mills have created a big
demand for douglas fir peelers the price of which has gone quite high
and is expected to go higher. Mills cutting lower grade douglas fir
have not run so steadily and there is therefore a good supply of these
lower grade logs with a short supply of peelers.
Spruce for upper grades is believed to be at about the peak of prices
because of the competition with other materials, but for the lower
grades, including fast growing timber, the demand is decreasing and
prices are believed going lower.
Cedar shingles competing with other roofing materials, are believed
not going higher and the price of cedar logs is believed will remain
stationary.
Hemlock logs are produced in quantity beyond Grays Harbor demands and
therefore there is a price here on them about two dollars lower than on
Puget Sound. There is an excessive proportion of hemlock in the stands
of timber here especially on the reservation and marketing it along with
the more valuable species results in glutting the market with hemlock.
With the anticipated coming in of additional pulp mills to Grays Harbor
the hemlock prices should go up to equal the Puget Sound prices.
Factors influencing COSTS of production are as follows:- Complete
unionization of the industry by aggressive leaders will likely put labor
costs too high and result in shutdowns. Also the new abstract taxes,
social security and others now before the legislature and independent of
income taxes, are believed by the operators likely to raise the cost of
logging $1.00 per M and to raise the mill costs another $1.00 per M.
As to present log supply on the Harbor here it is reported thus Short
on Cedar;- Long on Spruce;- Short on Fir Peeler logs but plenty of lower
grade fir;- Too much Hemlock produced.
As to the TREND IN LOG AND LUMBER PRODUCTION on Grays Harbor it is
noted that generally-as fast as a logger or a mill outs its timber it
does not acquire more stumpage but instead goes out of business. This
has been the general tendency since before the depression began in 1929.
Production here on the Harbor will not pick up in the post depression
years to be anything near what it was in the nineteen-twenties. TABLE
OMITTED SEE ORIGINAL b- Discussion of above cost figures and trend.
They exclude stumpage
Heretofore in our readjustment reports we have presented the costs on
basis of actual operations of the several companies and as extracted
from their reports. Ozette hauls logs to Grays Harbor on its own rail-
road without carton carrier and manufactures none out at the Beaches.
Hobi hauled and sold each on Puget Sound and manufactured none. Aloha
and Smith manufactured some out at their Beach mills and sold balance
after common carrier had either on Orange Harbor or Puget Sound. The
operations were therefore not on a comparative basis and we have thought
better this year to put all on a comparative basis of selling all logs
on Grays Harbor. Accordingly we have ignored partial freight, etc. and
figured uniform freight and other charges to Grays Harbor for all logs
produced, except that Ozette figures are not altered because its logs
are all delivered on Grays Harbor market, but not by common carrier. c-
Comparing Smith Costs with Aloha Costs, and other costs.
(1) The Point Grenville timber does not compare with that in the
eastern part of the reservation as to species, quality or stand
per-acre. The costs of exploitaton must necessarily be much higher
than for the better timber. Alohas units fjust east of Point
Grenville unit are better than Point Grenville but are the nearest
in cooperative worth. But it will be noted that almost consistently
Smiths reported costs were higher than Alohas and during the 14
years covered. Smiths costs have averaged $1.79 per M higher than
Alohas.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
(4) Factors making for higher costs on Point Grenville Unit.
A leading factor in making high costs on this unit is the high
percent of defect in cedar, the principal species. The estimates
of defect in the following tabulation are averages of careful esti-
mates by the two senior forest rangers who have been long familiar
with these units.
Cedar Spruce Hemlock Douglas Fir
Point Grenville 35% 30% 17% xx Mounts 25% 30% 15% xx Hall 20% 15% 15% 5%
Upper Wreck Creek 35% 10% 15% xx Quinaielt Lake 25% 12% 10% 12%
Other contributing factors are shown in following paragraphs.
TABLE OMITTED SEE ORIGINAL
(1) COMPARISON OF SPRUCE AND DOUGLAS FIR GRADES BY OPERATORS.
The total Douglas fir and Spruce volumes sold by the four
operators to date are given below with percents of grades reported.
All these logs came from reservation units or areas of foe patented
lands within units. TABLE OMITTED SEE ORIGINAL
(9) Cedar loading and transportation charges are high
Following are average R.R. car loads of the various species.
With smaller footage per car the loading and transportation charges
increases.
(10) Discussion of the factors influencing high costs on Point
It should be noted that the percentage of Cedar on the Point
Grenville Unit is higher than on any other unit thus far developed.
It is nearly twice the average for the reservation thus far devel-
oped. It is over three times greater than on the Cook Creek Unit
and nearly six times that developed on the Quinaielt Lake Unit.
The Point Grenville cedar is more defective than other units ex-
cepting Upper Wreck Creek. Smith takes such of very poor cedar to
his mill on his own railroad at resulting higher costs to load and
haul. There is rarely a douglas fir tree on Smiths unit to con-
tribute to a profit. The spruce compares well with other spruce
of the reservation but as shown later spruce has not risen in price
sufficiently to overcome increased costs in recent three years and
hemlock log prices have declined. 5. Increase in Operating Margin
of profit in recent years.
a. If we compare and operations on the Quinaielt Reservation for
the past two-tribe year periods, 1231-36 we have the following
results. TABLE OMITTED SEE ORIGINAL
There therefore appears to be lower costs $.45 during 1934 to
1936 but this showing is largely due to the logging of fifty
million feet by Quette Railway during the second three year period
and only eight million feet during the first three year period.
For Smith and Aloha we have figured freight and booming, raft-
ing, etc., on their whole cut for delivery in Grays Harbor. The
rates used were; for 1931 $2.275 frt. and 65 cents for B.R.T.S. -
for 1932 the same - 1933 - $2.463 frt. and 45.2 cents for b.r.t.s.
- for 1934 - $2.465 frt and 30 cents for B.R.T.S. Same rates used
for 1955 and 1956.
Attention is called to the fact that Ozette Railway having its
own railroad to Grays Harbor pays no common carrier freight rate.
Also Ozette transportation item includes booming, rafting, towing,
scaling charge.
A comparison of costs of Smith and Aloha only for the past two-
three year periods (eliminating Ozette and Hobi) serves fairer for
the following (Illegible) - first; Smith and Aloha log more nearly
the same class of (Illegible) and second; they logged consistently
through the six years whereas Ozette and Hobi did not. The follow-
ing comparison is of Smith and Aloha costs only and leaving out the
costs of Ozette and Hobi for the two-three year periods. 1931-33
and 1934-36. Logging Costs for Two-Three Year Periods for Only Two
Companies M.R. Smith L. & S. Co. and Aloha Timber Co. TABLE OMITTED SEE
ORIGINAL Comparison by Three Year Periods for Only Smith and Aloha TABLE
OMITTED SEE ORIGINAL
LOG VALUES AND COSTS AT TIME CONTRACT WAS ENTERED INTO.
The stipulabel log values in the contract for the three year period
1917 to 1919 inclusive were as follows- TABLE OMITTED SEE ORIGINAL
There was no stipulation as to logging costs for this same period and
there is no report in our records that shows what the costs of logging
on the Quinaielt (Illegible) Reservation was calculated to be during
those years. Mr. H. B. Stoar in a report of Feb. 11, 1924 gives same
cost figures for this period but his costs are those of logging
companies operating off the reservation in very different kind of
timber. Their costs were $9.06 per M as shown below. TABLE OMITTED SEE
ORIGINAL
TABLE OMITTED SEE ORIGINAL
Hobie Timber Company Report as Follows: TABLE OMITTED SEE ORIGINAL
SUMMARY 1923 TO 1936 TABLE OMITTED SEE ORIGINAL
Additional data in the APPENDIX to this report will include
the following:-
a- M. R. Smith Lumber and Shingle Company logging costs
and sales and profit and loss statement. (Similar data for
Aloha Lumber Company and Ouette Railway Company will be
found in the Hall Unit readjustment report dated Feb.
19, 37)
b- Map of Point Grenville Unit showing progress of
logging. (Similar maps for Aloha's units will be found in
the Hall Unit report just mentioned and the Ouette
Railway Company data is also in the Hall Unit report.)
c- Grays Harbor log sales and purchases, 1936, by
operators.
d- Supporting data for the averages shown in the report for
trend in log prices by grades and species since 1917.
CONCLUSIONS AND RECOMMENDATIONS: AS TO STUMPAGE
INCREASES.
At the outset of this report we quoted the revised and extended
contract provision that:- "in the event of sufficiently improved
economic conditions the Commissioner of Indian Affairs is authorized,
after consultation with the purchaser and after 90 days notice to him,
to increase the basic stumpage prices of timber". The material of this
report has been to show whether there are now sufficiently improved
economic conditions to make it just for the Commissioner to exercise his
discretion and raise stumpage prices.
The main points developed are that the Point Grenville Unit is a 62%
cedar stand with about 35% of defect in the cedar, that cedar logs on
Grays Harbor advanced from average of $10.48 in three year period 1931
to 1933, to $11.96 average in 1934 to 1936 and that during the same time
periods costs of logging on the operations nearer the beach on the
quinaielt Indian Reservation advanced 55[ per M, that the costs on the
Point Grenville operation have been higher than the Aloha costs and much
higher than operations in reservation units further from the ocean, that
Smith has lost money at an increasing rate per M for the past four years
as follows, $2.24 in 1933, $3.83 in 1934, $4.44 1/2 in 1935, $5.09 in
1936. That these losses increased notwithstanding the pick up in cedar
log prices. As to 53[ increase in logging cost. Spruce timber has been
10% of stand. As to hemlock the log values dropped 37[ during same
three years. Hemlock has been 25% of stand. Our conclusion is that
there is not sufficient improvement in the economic conditions to make
it fair to now increase stumpage prices on this unit especially after
the long period of losses that the operator has endured. We recommend
that there be no increases.
Logging Costs, 1936 TABLE OMITTED SEE ORIGINAL Logging Costs Continued.
TABLE OMITTED SEE ORIGINAL Moslips Pulpwood Operation TABLE OMITED SEE
ORIGINAL
TABLE OMITTED SEE ORIGINAL
MAP OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
HES-004-0002-0036
HES-004-0002-0036
IIL37.1
310221
CORRESPONDENCE
MUCKY, LEE
Commissioner of Indian Affairs,
Washington, D.C.
Sir:
Reference is made to Office letter of January 2, 1931, enclosing
letters of the M.R. Smith Lumber & Shingle Company, and instructing me
to consider this data, together with additional information to be
received from the Taholah Indian Agency, and submit recommendations with
respect to action on the case.
The original and one carbon copy of the report of the officers of the
Taholah Indian Agenyc, which is dated February 6, 1931, and the original
of which is submitted herewith as requested by Taholah Indian Agency
letter of February 10, 1931, was received by me under date of february
12, 1931.
This report reviews the facts surrounding the revaluation of the
timber in the Point Grenville Logging Unit, which is under contract to
the M.R. Smith Lumber & Shingle Company, and recommends a reduction in
the price of cedar, spruce and hemlock timber from the readjusted
valuations obtaining to the original proces bid by the purchaser for the
timber under consideration.
The contract covering the Point Grenville Unit was approved in favor
of the M.R. Smith Lumber & Shingle Company of Seattle, Washington, under
date of May 25, 1922, on the basis of the following valuations per
thousand feet B.M., namely:
Western red cedar..................................... $2.60
Douglas fir............................................ 2.25
Silka spruce........................................... 2.25
White pine............................................. 1.50
Western hemlock........................................ .60
White fir.............................................. .60
The contract provided for a readjustment of stumpage prices, based on
log market trends, as effective April 1, 1926, April 1, 1929 and April
1, 1932. Owing to the fact that the log market reflected an upward
trend for the three-year period ended December 31, 1925, an increase in
the price of the cedar, spruce and hemlock timber was recommended and
made effective April 1, 1926, by office telegram of February 20, 1926,
namely, as follows:
Cedar from $2.60 to $3.00
Spruce from 2.25 to 2.75
Hemlock from .60 to .80
Page 3 re Readjustment Point Grenville Unit February 21, 1931
Although these revaluations were very reasonable from the standpoint
of comparative stumpage prices then obtaining in this corpetitive field,
the M.R. Smith Lumber & Shingle Company vigorously portested the action
of the Office and the representations made by the company, together with
the decline being registered in the log market, finally resulted in a
reduction of the price of the cedar from $3.00 per thousand to $2.80 per
thousand under authority of Office letter of December 15, 1926, and as
effective January 1, 1927.
The log and lumber markets continued to sag through 1927, 1928 and
the early part of 1929, and acting upon the recommendations of the
officers of the Taholah Indian Agency and representations of substantial
losses presented by the M.R. Smith Lumber & Shingle Company, the spruce
was reduced from $2.75 to $2.50 per thousand, as effective April 1, 1929
with the provision that the former valuation would govern for the period
April 1, 1930 to March 31, 1931, unless otherwise specified by the
Commissioner of Indian Affairs. The close of the year 1929 reflected
little if any improvement in the price of spruce logs and a serious
decline in the price of all other species of logs and the products
derived Page 4 re Readjustment Point Grenville Unit February 21, 1931
from their exploitation.
However, the officers of the Taholah Indian Agency recommended under
date of March 1, 1930 (Forestry 31250-21) that the price of the spruce
be increased from $2.50 to $2.75 per thousand, a procedure, while having
some justification, was not consistent with the low ebb of business
generally and especially the lumber business, which existed at that
writing. The Indian Office, in its review of the case, pointed out the
situation clearly and again reserved action on the case thereby making
the price $2.50 per thousand effective for the period April 1, 1930 to
March 31, 1931. This action has now been completedly substantiated in
retrospect and it is obvious to those having a knowledge of conditions
that it would have been a serious mistake to have increased the price of
the spruce stumpage on this unit as effective April 1, 1930.
The third and last readjustment date incorporated in the Point
Grenville contract is that which becomes effective April 1, 1932; and
the revaluation question now under consideration, therefore, is
concerned solely with the fact as to whether the Commissioner is
justified in retaining for the period April 1, 1931 to March 31, 1932,
the revaluations made effective April 1, 1926 and sub- Page 5 re
Readjustment Point Grenville Unit February 21, 1931 sequently amended as
set forth above; whether existing conditions in the log market warrant
a restablishment of the value of the spruce timber from $2.50 to $2.75
per thousand feet B.M., or wheather the declining trend reflected in the
log market requires a return to the original prices for all species as
established by competitive bid.
The Superintendent and Forest Supervisor of the quinaielt
jurisdiction have recommended a return to the original valuations of all
species and the M.R. Smith Lumber & Shingle Company, in its letter of
December 12, 1930 (31250-1921), has requested that the price of the
cedar stumpage be reduced from $2.80 to $2.60 and have supported this
request with an array of facts covering the log and shingle market which
are more or less conclusive. According to the Howarth report, this
corporation submitted additional argument in its letter of January 17,
1931, and therein requested a sweeping reduction in the values of all
the species. We have not reveived a copy of this let- ter and are
therefore not in a position to judge the merit of the argument presented
covering the request for a reduc- tion in the prices of the spruce and
hemlock timber. These Page 6 re Readjustment Grenville Unit February
21, 1931 two species were not mentioned in the letter of December 12,
1930.
There can be little doubt of the soundness of the recommendation
presented for the consideration of the Office in the Howarth report of
February 6, 1931, when viewing the value of the Point Grenville stumpage
through the trend in the log market. Both the log and lumber mar- kets
have declined more or less steadily since 1925 and the year 1930
witnessed reductions in value which approached the pre-war average of
some of the species. Just what the future has to offer in this
connection is difficult of determination, but it seems safe to predict
that a material rise in prices cannot be expected in the immediate
future. Lumbermen generally are expressing the opinion that the bottom
has been reached and the low prices now obtaining have remained
comparatively firm for several months. However, inventories are
generally out of line and there can be little hope of real improvement
until these surpluses are disposed of.
Although a return to the original valuations is no doubt justified in
the light of existing conditions in the log market, I seriously question
such action from the Page 7 re Readjustment Grenville Unit February 21,
1931 angle of comparative stumpage values in this competitive field. It
is a fact that the Point Grenville Logging Unit is the least desirable
logging chance on that portion of the Quinaielt Indian Reservation which
is now under development. However, it is also a fact that the stumpage
valuations now obtaining with respect to this contract are extremely
reasonable and that a sweeping reduction in the price of all species at
this time would recreate the material differential which formerly
existed.
For the convenience of the reader in reviewing the case, a
comparative analysis of the stumpage prices on the Quinaielt Indian
Reservation is hereby presented, namely: TABLE OMITTED SEE ORIGINAL
An analysis of the above valuations will disclose the fact that those
obtaining on the Point Grenville Unit Page 8 re Readjustment Point
Grenville Unit February 21, 1931 are very favorable from a comparative
point of view and that a further reduction in the price of the cedar,
spruce and hemlock timbber from $2.80 to $2.60, $2.50 to $2.25, and $.80
to $.60 per thousand respectively would operate to further increase the
differentials which exist. Material price differentials for like
products are not desirable in any competitive field and especially so
onthe Quinaielt Indian Reservation because of the inequalities reflected
in the net returns on allotted timber.
A careful consideration of the facts surrounding this case leads me
to the opinion that the most logical and advisable solution, when
viewing the problem from the interests of all concerned lies in a
reduction of the price of the cedar timber from $2.80 to $2.60 per
thousand, the establishment of the value of the spruce at $2.50 per
thousand, and the maintenance of the value of the hemlock at $.80 per
thousand. Certainly such action would be fair to the purchaser and at
the same time, would operate to give full protection to the interests of
the Indians, when exist- ing conditions in the log market are given
proper considera- tion. There is a full justification for a reduction
in the Page 9 re Readjustment Point Grenville Unit February 21, 1931
price of the cedar timber, and as I have said heretofore, sound merit in
the position taken by the officials of the Taholah Indian Agency in the
recommendation looking forward to a reduction in all species. However,
it is my opinion that the reasonable prices now obtaining with respect
to the spruce and hemlock stumpage justifies the retention thereof in
spite of the unfavorable trend which has been reflected in the log
market.
It is, therefore, hereby recommended that the stumpage prices on the
Point Grenville Unit, for the period April 1, 1931 to March 31, 1932, be
stipulated as follows:
Western red cedar...............................$2.60 per M.
Douglas fir..................................... 2.25 per M.
Sitks spruce.................................... 2.50 per M.
White pine...................................... 1.50 per M.
Western Hemlock................................. .80 per M.
White fir, etc.................................. .60 per M.
In conclusion, it is further recommended that the authority to
increase the stumpage valuations in the Point Grenville Unit, which was
created by virtue of the trend in the log market as reflected for the
three-year period ended December 31, 1925, be not surrendered at this
time, Page 10 re Readjustment Point Grenville Unit February 21, 1931 but
that the reduction in the value of the cedar timber which has been
recommended above be made effective for one year only and subject to
such review and action as the Commissioner may then deem necessary, to
the protection of the interests of the Quinaielt Indians.
LM/AT
Encl
cc - Superintendent Nicholson
Hoquiam, Washington
- Supervisor Howarth
Hoquiam, Washington
HES-004-0037-0046
HES-004-0037-0046
IIL31.1
COMM OF INDIAN AFF
420203
CORRESPONDENCE
MUNGER, THORNTON T ; PACIFIC NORTHWEST
RB-NW SILVICULTURE Harvest Cuttings - D.F. Olympia P.S.P.'s 19, 20, &
21
REPORT ON 1941 EXAMINATION OF OLYMPIC P.S.P.'S 19, 20, & 21 ON
COOK CREEK
THORNTON T. MUNGER - PRINCIPAL SILVICULTURIST PACIFIC NORTHWEST
FOREST EXPERIMENT STATION
MEMORANDUM FOR THE FILES
On June 19, 1941 I made a short visit to the Morrow Bros. selective
logging sale on Cook Creek where Olympia plots 19, 20, and 21 are
located, accompanied by Ranger Fulton who was scaling.
The original stand was very irregular in mixture and size of the
trees, so that an attempted uniform 20 percent removal (by not
merchantable volumbe cruise) leaves inevitably a spotty stand. In
places a very desirable stand of small and medium-sized trees, with a
fairly unbroken crown canopy, is left. In other places the reserve
consists of quite scattered large trees and a rather sparse stand of
inferior understory trees.
Ranger Fulton tells me that these very large trees, which comprise
most of the cut and which are obviously the relicts of an older
generation than the main body of the timber, have a great deal of pitch
ring, and that as a consequence the proportion of peeler logs is less
than estimated. This is undoubtedly the result of ring shake caused by
tension from wind. These very tall semi-isolated trees are subject to
great stresses in this windy country. When a portion of the overwood
trees are cut the remainder will be still more subject to wind stresses
and I, therefore, fear their quality will suffer, even if they are not
wind-sprung or wind-thrown. ...I saw several instances of wind throw
end Ranger Fulton tells me there has been considerable already. It
seems to work in patches. On the plot crossed by the railroad track
several big reserve trees are down, so that one part of this plot looks
like a shambles. An ocular analysis of the remaining trees gives to me
little hope of the future value of the reserve stand, certainly of no
increase in volume or value.
Considering this fog belt climate the fire hazard following a light
cut seems not serious; 25 cents per M feet is allowed for localized
slash disposal. ...If windfall adds to the debris, further opens the
crown, and blocks the cat roads the fire hazard will be serious, and it
would take a lot of money to abate it.
/s/ THORNTON T. MUNGER RS-NW SILVICULTURE Harvest Cutting - D.F.
Olympic P.S.P.'S 19,20,&21 February 3, 1942
REPORT ON 1941 EXAMINATION OF
OLYMPIC P.S.P.'s 19,20, & 21 ON COCK CREEK **1
BY
Thornton T. Munger - Principal Silviculturist
Pacific Northwest Forest Experiment Station
History of Plott
In August-September 1936 three 5-acre plots were established on the
Morrow Bros. selective logging sale south of Lake Quinault, in a mixed
virgin stand of old timber, by Wayward, Dunford, etc. They were at
first called plots numbers 18, 19, and 20, then Cook Crock plots 1, 2,
and 3, and now Olympic P.S.P.'S 19, 20, and 21. The species, diameter,
and crown class of all trees over 6 inches in diameter were recorded on
Form B. Later these data were transferred to 2 sets of Form 114, one
for the files and one for field use.
They were not cut over at once as expected; number 19 was cut in the
early part of 1940, number 20 in the late summer of 1940, and num- ber
21 a few months later. Prior thereto some construction of cat roads was
done that felled a few trees on the plots.
In June 1937 some heights were taken by Hayward and Dunford. In 1938
and again in May 1939 these plots were checked over by Isaac, Peterson,
and Cross and record made of some windfalls that had occurred. In
August 1940 plot 19, which had by then been cut and logged, was examined
by Isaac and Ranger Anderson and a record made on the field sheets, Form
B, of the trees out, killed, and damaged by logging.
In September 1941, after all plots had been cut and logged (but no
slash burned), they were reexamined by Isaac and Lauridson. Every
living standing tree over 6 inches was then measured by diameter and the
heights of a few understory trees taken; record was also made of the
injuries to the reserved trees. Of the trees living in 1936 which are
not now alive note was made whether they were "cut", "dead", or
"missing". Previous Reports on These Plots
Memorandum regarding Cook Creek selective logging area by L. A.
Isaac, September 11, 1936. A 2-page memo commenting upon the plots and
broadly describing them. **1 Assistance in the compilation of the data
contained in this report was furnished by the personnel of Work Projects
Administration official project 3228.
Memorandum regarding Cook Creek selective logging sale area by L. A.
Isaac, May 9, 1939. A brief description of the plots, with comments on
the marking, but containing no statistics. This is largely incorporated
in the next title.
Progress report including record of establishment, Cook Ceek
permanent sample plots 1, 2, & 3 by L. A. Isaac, June 30, 1959. This
describes the plot establishment and photographic record, but contains
no stand statistics.
Memorandum of examination of Cook Creek area by L. A. Isaac, August
15, 1940. One page reporting the chocking of plot 19; no data.
Memorandum for the files by Thornton T. Munger, July 7, 1941. Two
pages of comment on brief inspection of area; no data.
Supplement to Isaac's "Progress report...........of June 30, 1939" by
Thornton T. Munger, January 26, 1942. A summary of the original stand
statistics of 1936 as computed by Hayward et al, but never before
compiled and typed. It also contains a table and memo by Gross
comparing two methods of marking. Increment Calculations. In 1936
increment cores were taken of over 100 sample trees on plot 19, ranging
in size from 6 to 72 inches, all spruce and hemlock. These were
computed by Hayward both to show the number of years reqired to grow 2
inches and the board-foot volume increment. The penciled tabulations
(which apparently were never completed, checked, and written up) show a
.6 percent volume growth for both the spruce end the hemlock trees
involved aggregating some 117,383 board feet. This, of course, is the
gross volume growth with no offset for mortality.
Purpose of Present Report. This report aims to present for all 3
plots uniformly (regardless of date cut):
(1) The number and volume of the reserve trees by species
as of September 1941.
(2) The total stand befoe cutting, based on the 1936
measurement of the felled or dead trees and the 1941 measurement
of the reserved trees, and its relation to the cut stand.
(3) The losses to the original stand from cutting, logging
damage, and windfall between 1936 and 1941, both before and
after logging.
(4) Injury to base, trunk, and crown of reserved trees from
logging.
As computations of the reserve stand were made by tenth-inch diameter
measuremens, they may be used as the basis for measuring growth when the
plots are reexamined 5 or 10 years hence, using the same volume tables.
Volume Tables. In 1937 a considerable amount of office work was done
on those plots preparing height-diameter curves and computing basal
area, volumes in cubic feet, board feet Scribner for 16' x 8" logs, and
board feet Scribner for 32' x 12" logs. (See Munger's "Supplement" of
January 26, 1942.) The origin of the volume tables used therefore is not
clear from the files, but a set of diameter-height curves, obviously
carefully compiled, carried volume values which were evidently
considered applicable and which coincide satisfactorily with the
original tables. These values for Douglas-fir, Sitka spruce, and
western hemlock were then recurved and read off to the nearest inch and
then arithmetically interpolated to tenth inches.
The table for western red cedar was curved from the Steer-Clements
volume table, for the medium tall trees-there being no diameter-height
values taken for the cedar on these plots. These tables (in curved and
pencil form) are in the project file for use at subsequent remeasure-
ments. Number of Trees in 1936 and in 1941 After Logging
The number of trees in the original stand as of 1936 and the number
cut, the number dead or missing from 1936 to 1941, and the number in the
reserve stand as of 1941 are shown in table 1. The last three
categories obviously add up to the original stand. The dead or missing
category includes windfalls and tress that dies from other causes be-
fore logging, trees killed by road construction and logging, and trees
that cannot be found now, mostly small trees probably crushed by logging
or dragged away. It is impossible to deduce from those figures what is
the loss from logging damage and what from natural causes dur- ing the
period between the first examination and the after-logging examination.
Moreover, 5 Douglas-firs and 15 hemlocks that were clas- sified as "dead
or missing" were subsequently logged. Some trees were windfallen after
1936, as the logging approached the plots, and were later salvaged.
Trees from 6 to 16 inches in diameter are listed separately from
those over 14 inches in diameter.
It is apparent from table 1 that the stand was before logging quite
irregular in composition and structure. One plot had no Douglas-fir,
one had no spruce, the hemlock was fairly uniformly distributed,
averaging about 50 small trees and 28 large trees per acre; there were
but few cedars, mostly large, in this stand. All the Douglas-fir and
nearly all the spruce and cedar were well over 20 inches in diameter.
The cut has taken more than half by numer of the Douglas-firs in-
cluding those which first were windfallen. Only 17 percent of the
spruces were cut, and 4.7 percent of the hemlocks over 14 inches in
diameter (or 8 percent including those which were first windfallen).
Volume of Stand Before and After Cutting
Using the volume tables described above, the gross volume of all
trees over 14 inches in diameter was calculated using the 1941 diame-
ters for the trees now alive and standing and the 1936 diameters for the
cut trees and those that were knocked over, wind thrown, or died between
1936 and 1941. This obviously makes a slight disparity in computing the
proportion of the original stand that has been lost and been cut, but
the growth was so small in the 5 years that the per- centage ratio will
not be greatly affected.
Though the cull trees were so tallied in 1936 and computed separ-
ately by Hayward (see Munger's "Supplement" of January 20, 1942) they
were not separated in the 1941 examination. The gross volumes in vol-
umes in table 2, therefore, include the cull trees (which are compara-
tively few) and the defective volume in merchantable trees. According
to a rough calculation of the cull trees in 1936 they comprised 12 per-
cent of the gross living volume of all species at that time.
Original Stand. The average volume per acre of the virgin stand was
161,878 board feet, of which Douglas-fir comprised about 45 per- cent,
spruce about 28 percent, hemlock about 25 percent, and cedar about 2
percent. The individual acres varied in volume as widely as in number
of trees, as discussed above. One acre had the the prodigious gross
living volume of 270,935 board feet, while another had only 51,392 board
feet, all hemlock.
Cut Stand. Table 2 shows by species the volume cut on each acre. It
runs from 177,525 board feet (mostly Douglas-fir) on one acre to only
15,050 on another, all spruce. Little of the hemlock or small spruce
was logged and of the former only that which was windfall on and had to
be cut to get it out of the way.
It is important to note that the volume of merchantable material
actually utilized was very much less than the gross volumes here re-
ported as out. The operator was selling on the log market and hence
left in the woods many logs both large and small because of defects;
hemlocks were reported as "cut" whenever a cut stump was evident, even
though the entire tree was left as it fell.
Of the original stand, 35.1 percent was felled in logging, com-
prising 54.6 percent of the Douglas-fir, 31.3 percent of the spruce, 4.5
percent of the hemlock, and 19.7 percent of the cedar, as shown in table
3. In addition there were 5 Douglas-firs and 15 hemlocks that were
classed as "dead and down", i.e. windfallen or otherwise killed between
1936 and 1941, which were logged. These volumes and the per- centage of
the original stand that they comprise are shown in table 2A. All
together the total cut is 40 percent of the original gross volume, the
cut of Douglas-fir is nearly 62 percent of the original stand, that of
hemlock a little less than 11 percent, and for other species as shown in
table 3.
Dead and Missing. A very considerable part of the trees that were
alive and were tagged in logs were dead (or missing) at the time of the
post-logging examination. This amounts to nearly 11 percent by volume
of the original stand; the proportion of hemlock is particularly high.
The causes of loss are several as discussed under the heading "Number of
Trees", and they cannot now be absolutely separated. There was con-
siderable windfall before logging (see Isaac's reports of May 7 and June
30, 1959) and while the logging of adjacent areas was in progress and
afterward. Five Douglas-firs grossing 81,000 board feet were so killed
on plots 20 and 21. Some of these trees were subsequently logged (see
table "A)> Some of the "missing" trees (mostly quite small hemlocks)
were undoubtedly smashed in logging. Some were killed in out-road
construction in 1938. Others died from the effects of falling and
skidding.
Regardless of specific causes in mortality in the stand from 4 (or 5)
years before logging to just after logging was very high. As stated
above, some of the dead and missing trees were culls of no economic
value; some represent just the normal loss in a virgin forest. The
windfall of 4 large Douglas-firs on plot 20 alone is particularly
Reserve Stand. The volume of the reserve stand as of 1941 is listed
in table 2. There is so much variation in stand structure that average
stand figures are not silviculturally very significant. The percentage
of the original stand by species now remaining averages as follows:
Douglas-fir 36.1%
Sitka spruce 63.5%
Western hemlock 74.1%
Western redcedar 80.3%
This indicates that only about a third of the Douglas-fir volume
remains standing and three-quarters of the hemlock -- (however, most of
the hemlock that is gone was lost from windfall and logging damage, not
from cutting).
The average composition of these 15 acres has changed as follows:
Douglas-fir from 45.5% before logging to 30.4 afterward
Spruce from 28.1% before logging to 33.0 afterward
Hemlock from 24.8% before logging to 33.9 afterward
Cedar from 1.5% before logging to 2.7 afterward
It is too soon to interpret these figures in terms of the silvical
and economic welfare of the forest; the stand is so diversified that
the composition and stand structure of a very small area per quarter-
acre, for example--is more important than averages for the 3 plots.
No data were taken on log quality or clear length of the trees in the
reserve, so that it is impossible now to comment on the reserve trees in
terms of the economic value. Logging Injury
In the after-logging examination of 1941 note was made of the in-
jury from falling and logging to the reserved trees. It was recorded as
affecting the base, the trunk, or the crown, and expressed in tenths
according to the proportion of that part of the tree affected. In table
4 the data are summarized for each plot and for the whole 15 acres. The
entire volume by species in the reserve stand is shown in column 2, the
number of trees in the next column. Then separately for basal injuries,
trunk injuries, and crown injuries are shown the volume of the trees
affected, the number of trees affected, and the average soverity of the
injury in terms of the percentage of the volume affected.
This last factor is arrived at arbitrarily by assuming that when a
tree has suffered a 1/10 injury the severity can be expressed as 10
percent of its volume, a 8/10 injury would be rated as 80 percent of its
volume, etc.
For the "small" trees (those from 6 to 14 inches) the degree of
damage, 1/10, 2/10, etc., is expressed directly in percentage.
There is a little overlapping in types of injury as indicated in the
footnotes, because a few trees suffered from 2 or 3 types of injury.
Table 4 indicates that many more trees are affected by basal injury than
by trunk or crown injury, but that the injury of the latter classes has
a higher percentage of totality than for basal injury. The basal injury
was 18 percent for all species but Douglas-fir, which was naturally
less, being thick-barked.
Out of 464 large trees in the reserve stand, 142 had basal injuries,
37 had trunk, and 27 had crown breakage-including some overlaps. Of the
small trees, 446 in number, 69 had basal injuries, 27 had trunk
injuries, and 20 had crown breakage.
Time will prove what the biological and economic consequences of
these injuries are.
Table 5 shows the percentage of the total number of trees of each
class injured in one way or another to any degree, and also the
percentage of the total volume of each species affected. To the latter
figures might be applied the "severity of injury" factors in table 4,
though that would not give a volumetric statement of losses--because,
for example, a 10 percent injury may or may not be consequential to the
tree, and a 50 percent injury might be as bad as a 90 percent and be
fatal.
Since there has been no burning here there is no fire damage to
report.
As stated above table 4 gives but a part of the story of logging
damage; it records only the damage to reserve trees that survive. In
this instance there was a considerable additional number of trees that
were knocked over or completely smashed in logging; because of the
lapse of time between the establishment and logging of these plots this
logging loss cannot be separated from windfall and death from other
causes.
It should also be pointed out that a considerable number of the
reserve trees were culls and others were quite defective, so that the
economic loss to merchantable trees is not so large as the figures would
indicate, assuming that the severity factors are a true index of
economic damage.
Reproduction Counts
No reproduction quadrats have yet been established on these plots.
On this area the incidence of reproduction is of little silvicultural
significance, because there is already such an understory of tolerant
trees and sure to be more. The survey of reproduction would be useful
chiefly if an intensive study of seedlings of various species were to be
made in relation to release and available light. The 1940 report says
there were some seedlings of all species in the cat roads.
Fire Hazard Rating
No fire hazard rating has yet been made either before or after
logging though it would be desirable to do so both before and after
slash disposal, and for comparison, on adjoining similar uncut areas.
Photographs
No photographs were taken in 1941 following logging, but it would be
interesting to have some repeats of those taken before logging and
described in Isaac's report of June 30, 1939. Conclusions and
Recommendations
It is too seen to draw conclusions as to the silvicultural effects of
this type of cutting, except that tables 1 and 2 forcefully illustrate
the complexity and variability of stand structure in this area.
The losses prior to and during logging were considerable, over 17,000
feet per acre gross, or enough to offset 2 or so decades of net growth.
The damage from logging was here not excessive but about 35 percent
of the trees were more or less scarred up and for species like spruce
and hemlock real damage is likely to ensue before harvest.
It is recommended that the plots be checked for mortality in 1943 and
examined and remeasured in 1946 to get a line both on gross growth,
mortality, and after-effects of logging damage.
A reproduction study would throw valuable light on how seedlings by
species are filling in the openings, both the holes in virgin forest
caused by windfall and the holes more recently made by cutting.
It would be desirable to have a hazard rating made of the cut area
and adjoining virgin timber soon and in 1945.
At the next examination some repeat photographs should be taken.
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
Table 2A. --Volume of Trees Classed as "Dead or Down"
but Subsequently Cut and Percent of
Original Stand They Constitute
TABLE OMITTED SEE ORIGINAL
Table 3.--Approximate Percentage of Gross Volume of
Original Stand that is Out.
TABLE OMITTED SEE ORIGINAL
Table 4.-- Damage by Logging by Volume and Number of
Trees for Each Plot
TABLE OMITTED SEE ORIGINAL
Table 5.--Damage by Logging - Percentages Affected
TABLE OMITTED SEE ORIGINAL
Summary of 48 One-acre Plots on Morrow Sale by Species
TABLE OMITTED SEE ORIGINAL
HES-004-0047-0062
HES-004-0047-0062
IIK42.1
350423
CORRESPONDENCE
; TAHOLAH INDIAN AGE
Taholah Indian Agency,
Hoquiam, Washington.
April 23, 1935.
Mr. Robert Marshall, Director of Forestry, Indian Affairs, Washington
D.C. DOCUMENT OMITTED (ILLEGIBLE) SEE ORIGINAL DOCUMENT OMITTED
(ILLEGIBLE) SEE ORIGINAL DOCUMENT OMITTED (ILLEGIBLE) SEE ORIGINAL
DOCUMENT OMITTED (ILLEGIBLE) SEE ORIGINAL DOCUMENT OMITTED (ILLEGIBLE)
SEE ORIGINAL DOCUMENT OMITTED (ILLEGIBLE) SEE ORIGINAL DOCUMENT OMITTED
(ILLEGIBLE) SEE ORIGINAL
HES-004-0063-0069
HES-004-0063-0069
IIK35.1
MARSHALL, ROBERT
330329
CORRESPONDENCE
SUPT ; TAHOLAH INDIAN AGE FOREST SUPERVISOR ; TAHOLAH INDIAN AGE
DOCUMENT OMITTED SEE ORIGINAL Forestry 7329-22 69399-22 Taholah Indian
Agency
Hoquiam, Washington,
March 29, 1933.
Commissioner of Indian Affairs, Washington, D.C. Sir:
Logging operations in the Cook Creek Unit of the Quinaielt Indian
Reservation, under the contract with Frank D. Hobi and Edwin A. Hobi,
which was approved on September 2, 1922, by the Assistant Secretary of
the Interior, have been entirely completed, and the bond furnished by
said Frank D. Hobi and Edwin A. Hobi may properly be cancelled.
Logging operations in the Cook Creek Unit started in November,
1924, and were completed in January, 1933. The following amounts of
timber were scaled from the unit: TABLE OMITTED SEE ORIGINAL
Detailed Analysis of Log Cut
TABLE OMITTED SEE ORIGINAL
Detailed Analysis of Log Cut
TABLE OMITTED SEE ORIGINAL
Detailed Analysis of Log Cut
TABLE OMITTED SEE ORIGINAL
Detailed Analysis of Log Cut
TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
The actual cut, as shown by the Timber Money Record and Timber
Sale Record and Controller Account of Cook Creek Unit, is $1,584,765.06
while actual cut, as shown by the certificates of completion,is
$1,582,319.52 a difference of $2,445.54. This difference is the value of
timber cut from tribal land which was not, at the time of the cutt- ing
, located in any sale area; but was treated as being located in the
Cook Creek Unit, and was accordingly entered in the Cook Creek Unit
timber books and controlling account, and paid for by the Hobi Timber
Company, owner of the sale area.
No Certificates of Completion covering the lands from which this
timber was cut have been executed for the reason that the logging
thereon has not yet been completed. Hence the above difference between
the actual cut as shown by the Timber Money Record and Timber Scale
Record and Controlling Account, and the actual cut as shown by the
Certificate of Completion.
The timber logged from said lands hereafter will, of course, be
charged to the Aloha Lumber Company, owner of the Hall Unit, said tribal
lands having been included in said Hall Unit after the complet- ion of
said cutting.
Certificate of Completion of Timber Contract,5-005, have been
executed as to the above scaling units, and the originals have been
forwarded to the Forestry Division of the Indian Office. In the absence
of different instructions, we will deliver the duplicate copies of the
certificates to the contractor, and will retain the triplicate for our
files.
The following is the analysis of the moneys received from the
scale of the Cook Creek Unit: TABLE OMITTED SEE ORIGINAL.
Our present system of cost accounting in the forestry Branch was
not installed until the fiscal year 1926, and while the records of the
above sale are acurate before that date, they were not kept in the
present manner prior to July 1, 1926. This will account for the presence
of the charges entitled (?????) 4 quarters. " Fire Protection"
"Miscellaneous" and "General Expense" under the above heading as part of
the costs of timber sale administration.
Stumpage Price Record
Cook Creek Unit.
TABLE OMITTED SEE ORIGINAL
Calendar Years
TABLE OMITTED SEE ORIGINAL
Analysis of log Cut.
TABLE OMITTED SEE ORIGINAL
The entire Cook Creek Unit was logged by the contractor, Hobi
Timber Company.
Very respectfully
Forest Supervisor Superintendent.
WHS
HES-004-0070-0076
HES-004-0070-0076
IIK33.1
COMM OF INDIAN AFF
300225
CORRESPONDENCE
RHOADS, C J
Forestry T329-22 J F K Mr. William B. Sams
Dept., Taholah Agency February 25, 1930
My dear Mr. Sams:
The report of February 4, 1930, from Henry B. Steer, Supervisor of
Forests, with respect to the re-adjustment of stumpage prices on the
Cook Creek Unit of the Quinaielt Reservation has been carefully con-
sidered. In view of the data submitted in this report, showing that
there has been no increase in log values in the Grays Harbor region
during the period 1927-28-29 over the period 1924-25-26, and of the
further fact that the area remaining to be logged within the Cook Creek
Unit has a power quality of timber than those heretofore logged, an in-
crease in the stumpage prices would evidently not be justified.
Accordingly you may advise the purchasers of the Cook Creek Unit that
no increase in stumpage prices will be made effective on April 1, 1930.
Very truly yours,
(Signed) C. I. Rhoads
Commissioner
2-MMI-RI T329-22
Taholah Indian Agency
Hoquiam, Wash.,
February 6, 1930
The Commissioner of Indian Affairs,
Washington, D.C.
Sirs:
There is transmitted herewith, through Superintendent W. B. Sams, my
report on the stumpage price re-adjustment on the Cook Creek Logging
Unit in the Quinaielt Indian Reservation, to be effective on April 1,
1930.
Very respectfully,
Henry S. Steer
Supervisor of Forests
Taholah Indian Agency.
Hoquiam, Wash.,
February 6, 1930
Approved and forwarded to the Indian Office.
W. B. Sams
Superintendent
Attention is invited to paragraph #51of the General Timber Sale
Regulations, which are attached to and made a part of the contract
governing the sale of the Cook Creek Logging unit. This paragraph is in
part as follows:
"all the records of the purchaser and his sub-contractors
pertaining to this logging operation and the manufacture and sale
of the products thereof will be open to inspecttion at any
reasonable time by the Officer in Charge or any other officer
designated by the Commissioner of Indian affairs, and the
information so obtained WILL BE REGARDED AS
CONFIDENTIAL................"
Information contained in this report concerning operations other than
those on the Quinaielt Indian Reservation, was obtained by my given
promise that the same would be treated confidentially by myself and by
the Commissioner of Indian Affairs to whom I stated the information
would be submitted.
/s/ Henry B. Steer
Supervisor of Forests
1. 1927-1928-1929 Grays Harbor Log Prices, together with the
same Information for the years 1924-1925-and 1926, and the
log sales from the Quinaielt Indian Reservation for the
same three year periods. 2. 1929 loging costs. Aloha Lumber
Company. 3. 1929 Logging Costs. M.R. Smith Lumber and Shingle
Company. 4. 1929 Logging Costs. Hobi Timber Company. 5. 1929
Logging costs. Osette Railway Company.
For further Information regarding sales and costs for previous
years, please be referred to the following reports on file at the
Taholah Agency and in the Washington Office.
........... Year ....... Unit to be .......... Date of ..............
........................ re-adjusted ......... report ...............
........... 1928 ....... Mounts .............. Feb. 7, 1929 .........
........... 1927 ....... Quinaielt Lake ...... Feb. 8, 1928 .........
........... 1926 ....... Cook Creek .......... Feb. 8, 1927 .........
........... 1925 ....... Ft. Greenville ...... Feb. 10, 1926 ........
........... 1924 ....... Special report ...... Feb. 27, 1926 ........
........... 1923 ....... Moclips ............. Feb. 11, 1924 ........
NOTE -- The key to the firms, other than those logging on the
Quinaielt Indian Reservation, for the year 1929, as regards the
selling prices of logs and logging costs, is the same as that
submitted with the report of Feb. 7, 1929 on the Mounts Unit.
Introduction and contract provisions regarding re-adjustment.
The contract for the sale of the Cook Creek Logging Unit in the
Quinaielt Indian Reservation, which was approved by the Assistant to the
Secretary of the Interior on September 2, 1922, provides for the
re-adjustment of stumpage prices as follows:
For purposes of stumpage price re-adjustment by the Commissioner
of Indian Affairs at the close of the first period of the contract
as specified above, it is hereby stipulated by the superintendent
and the purchasers that the average value of the following
standard log grades as recognized generally in Grays Harbor
Markets for the three year period ending January 1, 1920, have
been as follows:
TABLE OMITTED SEE ORIGINAL
In determining the stumpage rates to be designated for all timber
scaled during the three year period beginning April 1, 1927, the
average value of logs at mills operating in Grays Harvor during
the three years directly preceding January 1, 1927, will be
compared with the values of logs as stipulated in the preceding
paragraph as basic values, and the cost of logging operations
during the said three years will be compared with the cost of such
operations during the three year period directly preceding January
1, 1920, for the purpose of ascertaining so far as is precticable,
whether there has been generally in the lumber industry in the
specified region an increase in the lumber industry in the
specified region an increase in the margin of profit on logging
and manufacturing operations during the three year period directly
preceding January 1, 1927. "Any advance stumpage rates prescribed
by the Commissioner for the three year period beginning April 1,
1927, shall not exceed fifty percent of the difference between the
average value of logs of that species at miles as stipu- lated
above and that for the same species during the three years
directly preceding January 1, 1927. And further the Commissioner
of Indian Affairs shall have the right, on dates set for
re-adjustment of the saw timber stumpage prices, to re-adjust the
stumpage prices to be paid for Cedar Poles and Douglas Fir Piling
and to increase the stumpage price on Cedar Poles not more than
one half cent per linear foot, and to increase the stumpage price
on Douglas Fir Filing and more than one fourth cent per linear
foot. In the discretion of the Commissioner, a reduction in the
stumpage price of any species may sub- sequently be made to
correct any error, or to afford the purchasers relief from a
market depression that deprives the purchasers of a substantial
margin of profit, PROVIDED THAT the stumpage price of no species
will ever be reduced below the rate bid for the initial period of
the contract. "For the periods of the contract beginning April 1,
1930, April 1, 1955, and April 1, 1936, a re-adjustment of
stumpage prices may be made in the same manner as for the period
beginning April 1, 1927, except that the prices determined and
used for any three year period will be considered as the
stipulated prices that are to be com- pared with the average
prices obtained during the suc- ceeding three year period.
"Notice of the next schedule of prices shall be given the
purchasers by letter not later than the first day of March in the
years 1927, 1930, 1933, and 1936:.........."
Re-adjustment of April 1, 1927.
Under the contract provisions as quoted on the preceeding two pages,
consideration was given, early in 1927, to the re-adjustment of prices
in the Cook Creek Unit, the new prices to be effective on April 1, 1927.
After a thorough investigation of log prices and the cost of logging
for the two three year periods 1917-1918-1919 and 1924-1925-1926 and
careful consideration of pertinent factors, the Commissioner of Indian
Affairs decided that no increase in stumpage prices should be made
effective on April 1, 1927, and so advised the superintendent of the
Taholah Agency by a letter dated Feb. 17, 1927 (File 7323-22). Under
date of February 23, 1927, the Superintendent advised the Hobi Timber
Company of the decision reached. The stumpage prices which have been in
effect in the Cook Creek Unit since the date of purchase are as follows:
TABLE OMITTED SEE ORIGINAL
In considering the question of a re-adjustment to be effective April
1, 1930, special and continual reference must be made to my re- port of
February 8, 1927 concerning the re-adjustment considered to be effective
April 1, 1927, for the log prices used in that report for the three year
period 1924-1925-1926 must now be considered as basic prices for
comparison with those obtaining in 1927-1928-1929, and a similar
comparison of the cost of logging must be made.
Consideration of the Grays Harbor Log Market and logging costs.
1923-1925-1926 vs. 1927-1928-1929.
The Hobi Timber Company had removed the following amounts of timber
from the Cook Creek Unit up to and including December 31, 1929. TABLE
OMITTED SEE ORIGINAL
Before comparing Grays Harbor Log Prices for the two three year
periods 1924-1925-1926 and 1927-1928-1929, I wish to explain why I am
using an "amended" 1928 tabulation of log prices. Last year (1929) when
I was compiling 1928 log prices on Grays Harbor, I was unable to obtain
the log sales of one of the largest concerns operating on Grays Harbor.
The data from this concern had been included in all previous
tabulations, but as I was unable to obtain the information in time to
include the same in my 1929 tabulation which was submitted with the re-
port on the Mounts Unit, submitted under date of February 7, 1929, I was
obliged to compile the information at hand without including the sales
of this concern. I have since been able to get this information, both
for 1928 and 1929, and since the data from this concern, because of the
large volume of sales, has an appreciable effect on the data, I have
thought it advisable to prepare amended sales prices for the year 1928,
and use those amended figures in the present problem rather than those
compiled last year and submitted on February 7, 1929 with the Mounts
re-adjustment report.
Amended 1928 Grays Harbor Log
Prices
TABLE OMITTED SEE ORIGINAL
The 1928 average prices, as given above, are used in compiling the
Grays Harbor Sales prices of logs for the three year period 1927-1928-
1929 in Exhibit #1, rather than the previous average for 1928 as used in
the report on the re-adjustment of the Mounts Unit under date of
February 7, 1929.
There follows a comparison of the 1924-1925-1926 log prices on Grays
Harbor and used in the previous re-adjustment report on the Cook Creek
Unit (report dated February 8, 1927) and the 1927-1928-1929 prices as
taken from Exhibit #1 of this report. TABLE OMITTED SEE ORIGINAL
DOCUMENT OMITTED SEE ORIGINAL
Grays Harbor Log Market 1917-1929 inc.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
There follows a comparison of the cost of logging of three
representative Grays Harbor concerns for the two three year periods
under consideration. (1924-25-26 and 1927-28-29). These are total
costs without stumpage. TABLE OMITTED SEE ORIGINAL
None of the above concerns are logging on the Quinaielt Indian
reservation, but they are large logging companies very representative of
average Grays Harbor conditions. The above costs have been compiled by
me from the books of the companies, are the costs are accurate and
comparable since they are kept in the same manner from year to year.
As a check on the above cost date, the following logging costs, as
compiled from representative Puget Sound concerns by the West Coast
Lumberman's Association, may be fairly considered.
Cost of Logs Processed
TABLE OMITTED SEE ORIGINAL
THE Above figures indicate a downward trend in the total cost of
logging when the three year period of 1927-1928-1929 is compared with
1924-1925-1926, and since conditions generally on Puget Sound are
similar with those on Grays Harbor, the data above may properly be
considered in connection with the problem at hand.
Three concerns have been engaged in logging Indian timber on the
Quinaielt Reservation since 1924. (The Ozette Railway Company did not
start operations until the fall of 1926)> There follows a comparison of
their costs by three year periods as compiled from reports attached to
this report and previously submitted to the office.
Aloha Lumber Company
TABLE OMITTED SEE ORIGINAL Comparison of logging costs and log sales
1924-1925-1926 and 1927-1928-1929 TABLE OMITTED SEE ORIGINAL
In the above computations I have not taken into consideration two
very pertinent factors: i.e.
1. The Hobi Timber Company is a very efficient logging concern, and
the fact that their logging costs are higher for 1927-1928-1929 than
they were for 1923-1925-1926 is caused by the poorer class of timber in
which they were operating during 1927-1928-1929, especially in 1929,
which cost more to log and brought less on the market when compared with
their 1924-1925-1926 logs.
2. The percentages of the different species in the unlogged por-
tion of the Cook Creek Unit are very different than the percentage of
the different species logged to date. The remaining timber in the Cook
Creek Unit consists principally of Hemlock and Cedar, with some spruce,
and relatively little Douglas fir.
If these two factors were taken into consideration, a much
larger decrease in the margin of profit for the three year period 1927-
1928-1929 over 1924-1925-1926 would be shown. The condition of the log
market on Grays Harbor at the present time is such that the Hobi Timber
Company has not been logging since last November, and will be unable to
resume operations until such time as the log market improves.
In view of these facts, it is respectfully recommended that no in-
crease in either saw log stumpage prices, Cedar Poles or Douglas Fir
Piling be made effective on April 1, 1930, but that the prices origin-
ally bid remain in effect for the next three year period. These prices
are as follows: TABLE OMITTED SEE ORIGINAL
Very respectfully,
Henry B. Steer
Supervisor of Forests
A L O H A L U M B E R C O M P A N Y
Aloha, Wash.
January 17, 1930.
R. B. Steer, Supervisor of Forests Taholah Indian Agency, Hoquiam,
Washington Dear Sirs:
Herewith please find our annual statement prepared by McIntosh, Cowan
and Company. The information that you asked Mr. Kurtz to prepare
prepare will follow in a short time.
Your very truly,
ALOHA LUMBER COMPANY
By W. H. Dole
Vice-President
VHD:HJ Encl.
ALOHA LUMBER COMPANY Aloha, Washington 1929. ALOHA LUMBER COMPANY
Aloha, Washington (Schedule A) TABLE OMITTED SEE ORIGINAL ALOHA LUMBER
COMPANY Aloha, Washington (Schedule B) TABLE OMITTED SEE ORIGINAL ALOHA
LUMBER COMPANY Aloha, Washington (Schedule C) TABLE OMITTED SEE ORIGINAL
ALOHA LUMBER COMPANY Aloha, Washington (Schedule D) TABLE OMITTED SEE
ORIGINAL Log Scale Average 1929 F. C. B. Hoquiam TABLE OMITTED SEE
ORIGINAL
(COPY)
M. R. SMITH LUMBER & SHINGLE CO.
SEATTLE, WASH.
JAN. 29, 1930.
Taholah Indian Agency Hoquiam, Washington
ATTENTION MR. H. B. STEER
Gentlemen: We enclose statement of our logging operations and sales for
1929. With regard to the item of camp run Hemlock, most of this was
sold to North Bay Lumber at prices ranging from $3.00 to $10.50. From
the total amount received, we deducted $12,833.57 which was the amount
of our loss agter deducting $4000.00 credit insurance received.
Sometime we may get back a few cents on this, and if so, will credit it
to our log sales. Most of our Spruce was sold in Payallup and say
excess over the Grays Harbor price was offset by higher freight rates.
Regarding the Cedar, as you know we have always made a practice of
shipping out the best of it to Cedar lumber mills and cutting the
poorest at Moclips. Based on the four grades used by the Grays Harbor
Scaling Bureau, the logs we ship cut are mostly #1 and #2, whereas those
we cut at Moclips do not average better than #3, that is, there are
enough #4's to affect a small percentage of 1 or 2. You notice that the
Cedar logs shipped out average almost 1000 ft. each, whereas those used
average only about 360 ft. each. There was just as much difference in
the quality as in the size. The analysis of log operations made up by
our Kansas City office com- bines the logs used at our Moclips mill and
those used at our Mineral mill, which accounts for the difference in the
average figure. These two items are segregated on our detailed
statement of sales. The logs snipped to the Mineral mill were selected
logs which contained a fair percentage of export bolts. We trust this
report gives you all the information you need but if not, please advise.
I believe we will have logged the full amount required by our contract
at the end of this contract year but if there is any doubt about it,
please check up and advise us. We assure of course that the Point
Grenville timber logged by Aloha applies to this contract.
Yours truly,
M. R. SMITH LUMBER & SHINGLE CO.
By Paul R. Smith
PRB/L cc:K.C.
Moc. (Copy) M. R. SMITH LUMBER & SHINGLE COMPANY ANALYSIS OF LOG
OPERA- TIONS FOR 1929 TABLE OMITTED SEE ORIGINAL POINT GRENVILLE LOGS
SOLD DURING 1929. TABLE OMITTED SEE ORIGINAL HOBI TIMBER COMPANY
OPERATING COSTS FOR THE YEAR ENDING DECEMBER 31, 1929 TABLE OMITTED SEE
ORIGINAL HOBI TIMBER COMPANY SUMMARY OF LOG SALES-YEAR, 1929 TABLE
OMITTED SEE ORIGINAL HOBI TIMBER COMPANY OPERATING COSTS FOR THE YEAR
ENDING DECEMBER 31, 1929 TABLE OMITTED SEE ORIGINAL HOBI TIMBER COMPANY
SUMMARY OF LOG SALES-YEAR, 1929 TABLE OMITTED SEE ORIGINAL HOBI TIMBER
COMPANY RECAPITULATION OF GOVERNMENT DAILY SCALE REPORTS YEAR-1929 TABLE
OMITTED SEE ORIGINAL OZETTE RAILWAY COMPANY 1929 LOGGING COSTS TABLE
OMITTED SEE ORIGINAL OZETTE RAILWAY COMPANY 1929 TABLE OMITTED SEE
ORIGINAL HOBI TIMBER COMPANY SUMMARY OF LOG SALES JANUARY 1, 1929 TO
JUNE 30, 1929 - 6 MONTHS TABLE OMITTED SEE ORIGINAL
HES-004-0077-0114
HES-004-0077-0114
IIK30.1
SAMS, WILLIAM B ; TAHOLAH AGENCY
270217
CORRESPONDENCE
BURKE, CHASE H
Forestry 7329-22 J P K
February 17, 1927
Mr. William B. Sams,
Supt., Taholah Agency. Dear Mr. Sams:
A careful consideration of all data available, including the
special report by Mr. Henry B. Steer dated February 8, 1927, in which
you concurred, indicates that we increase in stumpage price on timber
within the Cook Creek Unit should be made on April 1, 1927.
You will accordingly advise the Hobi Timber Company that there
will be no increase made on this Unit on April 1st.
Very truly yours,
(Signed) Chas. H. Burke
Commissioner
2 X-E 15
HES-004-0115-0115
HES-004-0115-0131
IIK27.1
SAMS, WILLIAM B ; TAHOLAH AGENCY
270208
CORRESPONDENCE
STEER, H B ; TAHOLAH INDIAN AGE
The Commissioner of Indian Affairs,
Washington, .D.C
Sirs:
In accordance with instructions contained in Office letter of January
11, 1927, there is submitted herewith my report on the stumpage price
re-adjustment on the Cook Creek Logging Unit in the Quinaielt Indian
Reservation to be effective April 1, 1927.
Very respectfully,
/s/ H.B. STEER
Supervisor of Forests
Taholah Indian Agency,
Hoquiam, Wash.,
February 8, 1927.
The Commissioner of Indian Affairs.
Washington, D.C.
Sir:
I concur in the attached report and recommendation.
Very respectfully,
/s/ W.B. Sams
Superintendent
Attention is invited to paragraph #51 of the General Timber Sale
Regulations, which are attached to and made a part of the contract
governing the sale of the Cook Creek Unit. This paragraph is in part as
follows:
"All the records of the purchaser and his subcontractors
pertaining to this logging operation and the manufacture and sale
of the products thereof will be open to inspection at any
reasonable time by the officer in charge or any other officer
designated by the Commissioner of Indian Affairs, and the
information so obtained WILL BE REGARDED AS
CONFIDENTIAL................"
Information contained in this report concerning operations other than
those on the Quinaielt Indian Reservation was obtained by my given
promise that the same would be treated confidentially by myself and by
the Commissioner of Indian Affairs to whom I stated the information
would be submitted.
/s/ H.B. STEER
Supervisor of Forests
List of Exhibits
1. 1917-1918-1919 Grays Harbor Log Market. 2. 1924 " " " " 3. 1925 "
" " " 4. 1926 " " " " 5. Hobi Timber Company 1926 logging costs. 6.
M. R. Smith Lumber and Shingle Company 1926 logging costs. 7. Aloha
Lumber Company 1926 logging costs.
Introduction and contract provisions regarding readjustment.
The contract for the sale of the Cook Creek Logging Unit on the
Quinaielt Indian Reservation, which was approved by the Assistant to the
Secretary of the Interior on September 2, 1922, provides for the
readjustment of stumpage prices as follows:
"The purpoes of stumpage price readjustment by the Commisioner
of Indian Affairs at the close of the first period of the Contract
as specified above, it is hereby stipulated by the Superintendent
and the purchasers that the average value of the following
standard log grades as recognized generally in Grays Harbor
markets for the three year period ending January 1, 1920, have
been as follows:
TABLE OMITTED SEE ORIGINAL
"In determining the stumpage rates to be designated for all
timber sold during the three-year period beginning April 1, 1927,
the average value of logs at mills operating in Grays Harbor
during the three years directly preceding January 1, 1927, will be
compared with the values of logs as stipulated in the preceding
paragraph as basic values, and the cost of logging operations
during the said three years will be compared with the cost of such
operations during the three-year period directly preceding January
1, 1920, for the purpose of ascertaining so far as is practicable,
whether there has been generally in the lumber industry in the
specified region an increase in the margin of profit on logging
and manufacturing operations during the three year period directly
preceding January 1, 1927. Any advance stumpage rates prescribed
by the Commissioner for the three-year period beginning April 1,
1927, shall not exceed fifty percent of the difference between the
average value of logs of that species at mills as stipulsated
above and that for the same species during the three years
directly preceding January 1, 1927. And further, the Commissioner
of Indian Affairs shall have the right, on dates set for
readjustment of the saw timber stump- age prices, to readjust the
stumpage prices to be paid for Cedar Poles and Douglas Fir Piling
and to increase the stumpage on Cedar Poles not more than one half
cent per linear foot. In the direction of the Commissioner, a
reduction in the stumpage price of any species may subsequently be
made to correct any error, or to afford the purchasers relief from
a market depression the de- rives the purchasers of a substantial
margin of profit. PROVIDED THAT the stumpage price of no species
will ever be reduced below the rate bid for the initial period of
the contract. Notice of the new schedule of prices shall be given
the purchasers by letter not later than the first day of March in
the years 1927, 1930, 1933, and 1926......."
Consideration of the log market, logging costs, and the readjustment
possible under contract provisions.
The Hobi Timber had removed the following amounts of timber from the
Cook Creek Unit up to and including December 31, 1926. TABLE OMITTED
SEE ORIGINAL
There follow a statement of basic log prices for the period 1917-
18-19 as stipulated and agreed upon in the Cook Creek contract: TABLE
OMITTED SEE ORIGINAL
These prices are to be compared with the prices obtaining in the
Grays Harbor Log market for the years 1924-25-26. In the last three
years I have made investigations and compiled data as to the log market
on Grays Harbor. Exhibits 2, 3, and 4, attached to this report, give
this consolidated information.
There follows a statement of the 1924-25-26 Grays Harbor Log Market
using (with regard to Douglas Fir and Spruce) the same percentages of
grades as were used in the 1917-18-19 statement. TABLE OMITTED SEE
ORIGINAL
A comparison of the two three year periods, i.e. the basic 1917-18-
19 prices as stipulated in the contract, and the ruling prices in 1924-
25-26, gives the following result: TABLE OMITTED SEE ORIGINAL
The next step is the comparison of the cost of logging for the
three year period 1917-18-19 with the three year period 1924-25-26.
There follows the logging costs of four representative Grays Harbor
Logging Companies for the period 1917-19, and logging costs of four
representative concerns for the period 1924-26. These costs are all
without stumpage, and the figure gives as the "average" is the cost of
the logs at mills.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
These figures show an increased cost of logging of $1,57 per M
feet for the three year period 1924-25-26 as compared to 1917-18-19, and
as the four concerns who figures are used are very representative Grays
Harbor concerns, it is believed that this figure is at least in-
dicative of the trend of logging costs on Grays Harbor.
Taking the increases of the value of logs in 1924-25-26 as compared
with the basic 1917-18-19 log values as stipulated in the contract, and
subtracting the increased cost of logging as just determined from it,
gives the increased margin of profit which theoretically exists in
comparing the two three year periods under consideration. By adding one
half of this increased margin of profit to the present stumpage prices
now obtaining on the Cook Creek timber, we arrive at the new stumpage
prices which might be made effective April 1, 1927 under con- tract
provisions. TABLE OMITTED SEE ORIGINAL
While the above increases may be justified under a strict interpre-
tation of contract provisions, I believe that they cannot be fairly made
because of the following reasons:
1. The 1917-18-19 basic prices, as stipulated in the contract are
too low and show fictitious increases in log values when com-
pared to actual 1924-25-26 prices.
2. The percentages of grades used in arriving at the average
prices of Douglas Fir and Spruce are not those actually
obtained from Cook Creek timber.
3. There are conditions other than log sales and the cost of
logging which must in all fairness be taken into consideration.
The next part of this report will compute the re-adjustment possi-
ble by using actual Grays Harbor log values for 1917-18-19 as basic
prices, and the grades of Douglas Fir and Spruce that were actually cut
from the Cook Creek Unit. Computation of re-adjustment possible using
actual Grays Harbor log prices for 1917-18-19 as basic prices.
Early in 1924, when the Moclips Unit was under consideration for
re-adjustment, I made an investigation of the 1917-18-19 Grays Harbor
Log Market. The results of this investigation forms exhibit #1 of this
report. A comparison of these prices with the prices stipulated as
basic prices in the contract is given below: TABLE OMITTED SEE ORIGINAL
It will readily be seen that by using the basic prices as given in
the contract for comparison with the 1924-25-26 that fictitious in-
creases are shown, because the basic prices as given in the contract are
lower than actual prices obtaining in Grays Harbor for the years
1917-18-19.
There follows a tabulation showing the grades of Douglas Fir and
Spruce actually removed from the Cook Creek Unit up to and including
December 31, 1926, (taken from Hobi's 1925 and 1926 statements of oper-
ating expense).
TABLE OMITTED SEE ORIGINAL
There follows a computation of the possible re-adjustment by using
actual Grays Harbor log prices and the grades of Douglas Fir and Spruce
obtained from the Cook Creek Unit for both three year periods under
consideration.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
As a result of the above computation, the stumpage price of Douglas
Fir and Cedar might be increased somewhat after taking into considera-
tion and allowing for the logs on Spruce and Hemlock. White Pine forms
less than 1% of the Cook Creek stand of timber, and is of relatively
little importance.
Before concluding the report, and making recommendations, there are
certain conditions which must be taken into consideration, and the next
part of this report will deal briefly with them. Conditions other than
log costs related affairs readjustment.
There has been an overproduction of logs on Grays Harbor for the past
three years which has been accompanied by steadily declining log prices.
This re-adjustment comes at a time when the logging and mill- ing
industry is in a condition that is far from strong, with curtail- ment
and entrenchment being practiced wherever possible.
It is believed that the letter of January 17, 1927, of R. D. Hobi,
the President of the Hobi Timber Company, which is attached to exhibit 5
of this report, sets forth concisely and without exaggeration condi-
tions under which the company must operate in the Cook Creek Unit in
composition with other logging operations on Grays Harbor, and it is
felt that these conditions must in all fairness be taken into consider-
ation.
The operations of the Hobi Timber Company are as efficient, if not
more so, than those of any other operator on the Quinaielt Reservation,
and will compare very favorably with any in this locality, and the rea-
son why the Hobi Timber Company is unable to show a reasonable profit on
their operations to date is because of
1. Over production of logs on Grays Harbor,
2. Low level of log prices, and the
3. Geographical location of the Cook Creek Unit.
Conclusion and Recommendation
In view of the fact that when the re-adjustment is computed with
actual Grays Harbor log values for 1917-18-19 compared with similar
values for 1924-25-26 and due allowance is made for the increased cost
of logging in 1924-25-26 over 1917-18-19 that two principal species
(Spruce and Hemlock) show an operating loss and two (Fir and Cedar) show
an increase, and also
In view of the present unstable condition of the logging and manu-
facturing industry on Grays Harbor and the fact that log values have
steadily declined since operations were concurred in the Cook Creek
Unit, and also
Because it believed that when all conditions are taken into con-
sideration the present stumpage prices should not be raised,
It is hereby recommended that the stumpage prices obtaining in the
Cook Creek Unit be not raised at this time but remain at their present
levels for the three year period beginning April 1, 1927, namely TABLE
OMITTED SEE ORIGINAL and for Douglas Fir Piling with not greater than an
18" diameter-- $.005 per L. Ft.
Very respectfully,
H. B. SMITH
Supervisor of Forests
HES-004-0116-0131A
HES-004-0115-0131
IIK27.1
COMM OF INDIAN AFF
270208
CORRESPONDENCE
SAMS, W B ; TAHOLAH INDIAN AGE
HES-003-0116-0131B
HES-003-0116-0131
IIK27.1
COMM OF INDIAN AFF
721219
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
Trend of Economic Conditions
Relative to Revision of Stumpage Rates
Taholah Logging Unit, Quinault Reservation
The Taholah logging Unit Contract provides in Section 11 for revision
of stumpage rates when, in the opinion of the Approving Officer, they do
not properly reflect the true market value of the forest products.
Stumpage rates were last revised for effective date of August 1, 1972.
The rates effected August 1, 1972, evidenced a rise in log prices in
1972 following a period in which log prices were relatively stable. In
these periods logging costs have continued to rise; however, the rate
of productivity gain has also improved. The sum of the changes since
the last revision are significant and indicate an upward revision of
stumpage rates. The indicated rates herein developed use the
information of Industrial Forestry Associaton (IFA) log price
reportings, U.S. Forest Service West Side Logging Cost Guides, Bureau of
Indian Affairs unit information and other establised cost data sources.
The information and Exhibits A through J provided herein examine the
trend of economic conditions through price reportings and indexes, and
timber bid prices.
The average log values by grade for the combined Buget Sound,
Grays-Willapa Harbor Districts for the third quarter 1972, as reported
by IFA, are calculated below to show the change in log market prices.
These grade prices are used to calculate the indicated revised stumpage
rates and the prcies listed include the effect of volume and value of
mixed grade and ungraded log sales.
2nd QTR. ...... 3rd QTR.
Species .................. 1972 .......... 1972 ......... Change
White Pine
............ P. ....... $103.56 ....... $133.64 ........ $3.08
............ SM. ........ 104.77 ........ 98.46 ........ (6.31)
............ 1 ........ 105.82 ........ 107.83 ........ 2.01
............ 2 ........ 77.64 ........ 73.24 ........ (4.40)
............ 3 ........ 61.04 ........ 57.00 ........ (4.04)
White Fir
............ P. ....... $140.02 ....... $158.18 ........ $10.16
............ SM. ....... 127.77 ....... 136.82 ........ 9.05
............ 1 ....... 138.98 ....... 149.42 ........ 10.44
............ 2 ....... 111.54 ....... 113.46 ........ 1.92
............ 3 ....... 92.16 ....... 92.98 ........ .82
2nd Qtr. ...... 3rd Qtr.
Redcedar
............ 1 ....... $154.98 ....... $165.04 ........ $10.06
............ 2 ....... 123.28 ....... 137.27 ........ 13.99
............ 3 ....... 76.22 ....... 85.10 ........ 8.88
Sitka Spruce
............ S ....... $203.82 ....... $202.87 ...... $( .95)
............ SM ....... 142.37 ....... 154.31 ....... 11.94
............ 1 ....... 186.63 ....... 191.37 ....... 4.74
............ 2 ....... 115.92 ....... 113.55 ....... ( 2.37)
............ 3 ....... 73.62 ....... 60.26 ....... (13.36)
Douglas-fir
............ P-1 ....... $186.66 ....... $173.10 ...... $(13.56)
............ 2 ....... 157.38 ....... 171.28 ........ 13.90
............ 3 ....... 148.96 ....... 156.70 ........ 7.74
............ SM ....... 136.10 ....... 137.28 ........ 1.18
............ S-1 ....... 123.97 ....... 138.40 ........ 14.43
............ 2 ....... 107.19 ....... 109.50 ........ 2.31
............ 3 ....... 87.26 ....... 84.02 ........( 3.24)
Hemlock
............ P ....... $145.34 ....... $152.03 ......... $6.69
............ SM ....... 128.60 ....... 136.26 ......... 7.66
............ 1 ....... 134.99 ....... 143.48 ......... 8.49
............ 2 ....... 109.86 ....... 115.32 ......... 5.46
............ 3 ....... 92.20 ....... 95.89 ......... 3.69
The usual Exhibits A and B-1 are not included as new recovery
information is presently unavailable since the last revision of stumpage
rates. When the C.Y. 1972 recovery information becomes available, the
exhibits will be inserted. In lieu of Exhibit B-2 the following sums up
the price change. TABLE OMITTED SEE ORIGINAL
Weighted net change +$9.48
Exhibits C-1 and C-2 give transaction information of timber sales in
Forks District, State of Washington forest and the Quinault District,
Olympic National Forest. These districts are in close vicinity to the
Quinault Reservation and the forests most nearly compare to the Quinault
forest. The prices obtained from the Quinault District are affected by
the restriction on export of National Forest logs and only a minor
volume of cedar is sold.
The export market is a major factor affecting average log prices of
the markets. The volume of logs going to export continues to be high.
Random Lenghts Export Market Report lists the following log shipments
from Washington and Oregon (MBF):
........... Year .... Washington ....... Oregon ......... Total
........... 1968 .... 1,321,106 ....... 652,576 ..... 1,973,682
........... 1969 .... 1,309,340 ....... 561,492 ..... 1,870,832
........... 1970 .... 1,579,185 ....... 636,925 ..... 2,216,110
........... 1971 .... 1,319,809 ....... 517,364 ..... 1,837,173
...........#1972 .... 1,438,800 ....... 546,757 ..... 2,030,557
The volumes and percents of log sales reported as export by IFA for
the combined Puget Sound, Grays-Willapa Harbor Districts are listed in
Exhibit D and are summarized below. Redcedar and hemlock are the
principal species of the logging unit.
SPECIES ......... 1ST QTR. 1971 2ND QTR. 1972 3RD QTR. 1972
WHITE PINE ................. 88 ............ 31 ............. 49
SHITE FIR .................. 64 ............ 84 ............. 82
REDCEDAR ................... 22 ............ 19 ............. 23
SITKA SPRUCE ............... 99 ............ 95 ............. 98
DOUGLAS-FIR ................ 25 ............ 58 ............. 53
HEMLOCK .................... 88 ............ 88 ............. 63
Trends in product value, particularly to redcedar and hemlock, which
have occurred since the previous revision of stumpage rates are
illustrated in the following summary and the indicated exhibits. TABLE
OMITTED SEE ORIGINAL
A grouping of the U.S. Forest Service cost guide items furnishes an
indicator of stump to truck cost trends. The guides provide the
following: 1969 - $20.38, 1970 - $22.56, 1971 - $24.07. Labor cost
data from the Washington Labor Market publication shows average hourly
earnings as follows in the lumber and wood prodcuts industry (logging):
Dec. 1970 - $4.86, Dec. 1971 - $5.18, Aug. 1972 - $5.14. Industrial
production statistics indicate that the productivity gains have
continued to increase at an annual rate of 4+ percent. Separate
statistics are not available from the logging industry; however, the
average earning rate indicates unit labor costs are under control.
Exhibit K is a productivity development from data for the years 1961
through 1971.
The computation of indicated stumpage rates is shown in Exhibits L
and M. Source of base cost data of Exhibit L is footnoted with
reference to Exhibit M-2. Revision of log grade prices indicated for
the Taholah Logging Unit is shown below. The species rate shown is
weighted to C.Y. 1972 production to give a comparative figure.
Present ... Recommended
Species ................. Grade ......... Rate . Revised Rates
White pine ................. P .........$ 68.52 ........$ 93.92
............................ SM ......... 45.13 ........ 51.34
............................ 1 ......... 46.08 ........ 49.84
............................ 2 ......... 20.51 ........ 24.13
............................ 3 ......... 5.45 ........ 7.08
Species Rate ............................$ 24.84 ........$ 29.61
White fir .................. P .........$ 84.37 ........$103.62
............................ SM ......... 65.99 ........ 85.22
............................ 1 ......... 76.16 ........ 90.71
............................ 2 ......... 51.27 ........ 60.40
............................ 3 ......... 33.68 ........ 43.70
Species rate ............................$ 52.58 ........$ 65.43
Redcedar ................... 1 .........$ 90.68 ........$125.85
............................ 2 ......... 61.92 ........ 99.06
............................ 3 ......... 19.22 ........ 40.125
Species Rate ............................$ 50.49 ........$ 82.29
Present ... Recommended
Sitka Spruce ............... S .........$134.99 ........$105.83
............................ SM ......... 79.24 ........ 104.58
............................ 1 ........ 119.39 ........ 143.84
............................ 2 ......... 55.24 ........ 81.08
............................ 3 ......... 16.86 ........ 41.10
Species Rate ............................ $68.73 ........ $93.10
Douglas-fir ................P-1 .........$119.42 ........$141.87
............................ 2 ......... 92.86 ........ 118995
............................ 3 ......... 85.22 ........ 102.91
............................ SM ......... 73.55 ........ 68.08
............................S-1 ......... 62.55 ........ 94.94
............................ 2 ......... 47.32 ........ 60.58
............................ 3 ......... 29.24 ........ 44.26
Species Rate ............................ $62.96 ........ $77.22
Hemlock .................... P ......... $81.93 ....... $100.96
............................ SM ......... 66.75 ........ 88.07
............................ 1 ......... 72.54 ........ 85.05
............................ 2 ......... 49.74 ........ 66.62
............................ 3 ......... 33.72 ........ 48.17
Species Rate ............................ $47.05 .........$63.42
Small and Cull Material Removed with Main Logging Operation
The current operating practices of the purchaser develops sifnificant
volumes of logs which, when presented for scale by the Scaling Bureau,
do not meet the merchantability standards for the log grades listed
above. These logs are listed as No. 4 logs or cull logs. Prior to
January 1, 1972, the No. 4 was listed as a CV (cull for volume) as
different from the other culls (cull for defect). Since October 1,
u969, we have been chaging for the CVs (presently No. 4) at a rate equal
to that for pulpwood ($4 per MBM) and have desired to set up a rate for
the culls for defect. We believe this production should be encouraged
as it removes material that would otherwise be left on the site to add
to the residue problem. The material appears to be of submarginal value
if considered for logging as salvage.
The taking with the main logging operation appears to give a marginal
value as indicated from the purchaser's activity. Actual appraisal of
this material is not a practical possibility due to the operational
mixture. From long deliberation concerning possible logging residue
removal, we believe the following rates are indicated:
No. 4 logs (formerly CV) $4.00 MBM gross scale Cull for defect
$4.00 MBM gross scale
SALVAGE MATERIAL REMOVED UNDER CONTRACT MODIFICATION
Supplement I concerns the rates for cedar shakeboards, pulpwood
salvage, and cedar shingle bolts and cordwood other than pulpwood. The
ratefor cedar shakeboard was revised for effective date of July 1, 1969,
at $30 per M/Boards. The rate previous was $17 per M/Boards established
in the modification of contract approved March 21, 1956. Rates for
pulpwood, shingle bolts and cedar cordwood have never been revised from
the rates of $2 per cord and $4 per cord, respectively, established in
the modification of contract. Provision for revision of the products
produced in salvage operations is set out in section 4 of the
modification of contract. Indicated rates are:
Cedar shakeboards $50.00 per M Boards Shingle bolts and cedar
cordwood $20.00 per cord Pulpwood $2.00 per cord (No Change)
We anticipate that during the period established for consultation,
fourth quarter 1972 IFA prices will become available. We therefore
would expect that these IFA prices would be inserted in the calculations
of revised rates and that any other factors used in the rate revision
for which more current data has been developed or becomes available
would also be inserted in the calucations of revised rates. At this
time we are aiming at an effective date of February 1, 1973; six months
from the previous rate revision.
There has been continuing concern that the long process of Section 11
makes it difficult to keep stumpage rates abreast of the change in log
market prices which may be significant from quarter to quarter. Past
concern has discussed the possibility of modification of the timber
contract to reintroduce quarterly rate adjustments similar to those
contained in Sections 6-9. This has always been put aside because of
the legal questions as to authority to further modify the contract.
We are suggesting that Section 11 does not prevent revision of
stumpage rates with the rates established by the Approving Officer made
subject to quarter-year adjustment based upon change in the factors
inserted in the stumpage revisio calculation. This, in much the same
manner as the initial trend of economic conditions report, is updated
with current information. With such an adjustment Section 11 could be
regularly used to examine the trend of economic conditions and to
maintain the consultation feature of rate revisions. Prepared by:
Victor K. Meeker, Supv. Forester, December 19, 1972
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-Grays-Willapa Harbor Prices.
1972 and arithmetic average of IFA Puget Sound-Grays-Willapa Harbor
Prices.
1. Logging & Overhead
A. Direct /1/
1. Falling & Bucking ................................ $5.87
2. Yarding .......................................... 9.65
3. Loading .......................................... 2.82
Subtotal .............................................$18.34
B. Overhead /1/
1. Overhead ......................................... $4.46
2. Depreciation ..................................... 2.09
Subtotal ............................................. $6.55
C. Contractual
1. Fire Protection /1/ .............................. $.22
2. Other Costs /2/ .................................. .99
Subtotal ............................................. $1.21
TOTAL A, B, C ........................................$26.10
2. Transportation
A. Transportation /3/ ...............................$14.68
B. Road Maintenance /2/.............................. 2.91
C. Unloading /2/..................................... .48
TOTAL.................................................$18.07
3. Road Development /2/.............................. 2.44
4. Sorting Yard /2/.................................. 3.70
TOTAL LOGGING COSTS...................................$50.31 Refer to
Exhibit M-2 for base cost source. Indicated Stumpage Rates by Log Grade
and by Species, Taholah Logging Unit, Determined from 4th Quarter 1972
/1/ Log Prices and 1971 Cost Data (USFS) TABLE OMITTED SEE ORIGINAL
Indicated species rate - (Column (3) Wtd. by Column (4)) $63.42
and ungraded volume.
Stumpage Rate = Log Price/1.op - Logging Cost.
Handbook of Timber Appraisal and Cost Guide
Branch of Forestry Cost Analysis
Commission Formula - adjusted
Average net volume per acre (MBF) ........................... 55.0
Average gross volume per tree (BF) ......................... 1050
Average gross volume per log (BF) ........................... 420
Total defect ................................................. 33%
Scaling defect ............................................... 19%
Average side slope ........................................... 30%
Average unmerchantable tree diameter ......................... 28
Unmerchantable trees per acre ................................ 12
Trees per acre .......................................... over 60
1. Falling & Bucking
Merchantable trees
Size adjustment (415.22b) ............. .811
Slope adjustment (415.22c) ........... +.002
Percent net recovery ................... .67%
Net adjustment. 813 divided by .67 ....1.213
Regional average - $4.56
Adjusted average .................................$5.53
Unmerchantable trees
Total Falling & Bucking ............................... $5.87 2.
Yarding
Hilead (60%) TABLE OMITTED SEE ORIGINAL Volume per acre (net)
................................ 55.0 Net volume per log .347 Logs per
acre = 55.0 divided by .347 (rounded) ...... .160 Factor @ 250' external
(415.37k) .................... .147 Factor @ 600' external = 250 x .
147/600 = ................ .061 Total gross factor
........................................ .732 Net factor .732 divided by
.81 ............................ .904 Regional average $8.07 Adjusted
average $8.07 x .904 ............................ $7.30 move and set up
........................................... 1.06 Plus allowance for area
lifted yarding ..................... .35 Stream cleanup
............................................. .48 Total hilead yarding
..................................... $9.19 Mobile Yarder (415.63c)
(40%) Adjustments
Gross piece size........-.02...(420)
Yarding distance........-.08...(250)
Net volume per acre.....-.04...( 60)
Total ...............-.14
Regional average $8.40
Adjust. cost 8.40 (1.00 - .14)/(1.00 - .19)= ............$8.92 Move
....................................................... .93 Stream
cleanup ............................................. .48
Total mobile yarder ............................... $10.33
Wtd. Yarding Cost .............................................. $9.65
3. Loading (70%)
Hilead and lifted yarding (adjusted by net factor)
Regional average $3.45
Adjusted cost $3.45 x .904 = ............................... $3.12
Mobile yarder (415.63d) (30%)
Regional average $3.06
Adjusted cost 3.06 (1.00 - .44)/(1.00 - .19)= .............. $2.12
Wtd. Loading Cost .......................................... $2.82 4.
Logging Depreciation (70%)
Hilead (adjusted by net factor)
Regional average $2.25
Adjusted cost 2.25 x .904 = ................................ $2.03
Plus allowance for lifted yarding ............................ .09
.............................................................$2.12
Mobile (415.63c) yarding (415.63d) loading (30%)
Regional average $2.30
Yarding $2.30 (1.00 - .14)/(1.00 - .19)= ................... 2.44)
Loading $2.30 (1.00 - .44)/(1.00 - .19)= ................... 1.59)
Wtd Logging Depreciation ...................................$2.09 3.
Transportation
Truck haul
Class A - 25 miles @ .18 .............................. $4.50
Class B - 14 miles @ .255 .............................. 3.57
Class C - 6.5 miles @ .305 ............................. 1.98
...................................................... $10.05
...................................................... $13.11
x 1.120 .............................................. $14.68
Allowance for area yarded with lifting required
Total volume blocks involved ............ 8.2 MMBF
Total volume in hilead (82 MM x .60) ... 49.2 MMBF
Hilead yarding (8.36) plus 25% ..... = $10.45
41.0 MM x 8.36) Wtd. Cost .......... = 8.71
8.2 MM x 10.45) ....................... -8.36
....................................... $ .35
Hilead depreciation (2.03) plus 25%... $ 2.54
41.0 MM x 2.03) Wtd .................... 2.12
8.2 MM x 2.54) ........................ -2.03
......................................... .09
HES-004-0132-0147
HES-004-0132-0155
IIJ72.4
721214
CORRESPONDENCE
FELSHAW, GEORGE, M ; W WASH AGENCY
To Trend of Economic Conditions
Relative to Revision of Stumpage Rates
Taholah Logging Unit
United States Department of the Interior
BUREAU OF INDIAN AFFAIRS Western Washington Agency
3006 Colby Avenue, Federal Building
Everett, Washington 98201
Memorandum To: Area Director, Portland Area From: Superintendent,
Western Washington Agency Subject: Revision of Stumpage Rates - Cedar
Salvage and Other
Products - Taholah and Crane Creek Unit Modifications
Concerning the above subject, the Branch of Forestry contacted the
Washington State Department of Natural Resources, Montesano District
Office, Weyerhaeuser Incorporated at Cosmopolis and ITT-Rayonier, Inc.,
in Hoquiam, and obtained information on stumpage rates charged by them
currently for cedar salvage sold from their lands as follows:
Washington State Department of Natural Resources:
Stumpage rate if sold as logs - 35% of the selling price
Stumpage rate if sold as boards - 25% of the selling price
Stumpage rate if sold as bolts - 50% of the selling price
........................ (cords)
Current aver. selling price of logs is $125.00/MBM
Current aver. selling price of boards is .21-.22/board
Current aver. selling price of bolts is $125.00 -
.................... $140.00/cord
Stumpage rate if sold as logs = $43.75
(Lots are considered to average a #2 sawlog grade)
Stumpage rate if sold as boards = $0.215 x .25 = $0.054
Stumpage rate if sold as bolts = $137.50 x .50 =
...................... $68.75/cord
Weyerhaeuser Company:
Shakes = $30.00/cord of bolts Shingles = $20.00/cord of bolts At
600 boards/cord, the per board stumpage for shakes is $0.05/board
ITT-Rayonier Incorporated:
Shakes = $18.00 to $21.00/cord (However, they are talking about
raising the rates to $0.05/board and $30.00/cord because of the
currently increased selling prices of shakes.)
Pulpwood:
Information received from the Washington State Department of Natural
Resources indicates an estimated average stumpage rate of $2.00/cord for
pulpwood, all species, Montesano District and $1.50/MBM for the Forks
District with a limit that these may be increased because of changes in
market trends. However, their main concern is to get as much of the
ground cleaned as possible. Based on this information and the fact that
we would desire the ground cleaned also and that we have already been
charging $2.00/cord for poles ($4 (illegible) and smaller) on the
ranolan unit, we recommended the $2.00/cord be charged on both units for
pulpwood. This would be the recommended charge for cull logs gross
volumes cull for defect logs from Crane Creek and Taholah Units and
similar information for 1st Quater 1972.
Therefore, it is recommended that contract modification stumpage
rates be changed as follows:
Pulpwood (To include cull log gross converted to
cords)... $2.00/cord
Shingle bolts (& other cedar cordwood, excepting
pulpwood $20 00/cord shake boards ............................
$50.00/thousand boards.
You will note that in the second paragraph of Mr. Halbert's
memorandum of 5/19/72 hereto attached he states all pulpable culls are
used by ITI-Rayonier at their will. This represents cull for defect
logs.
................... White Wood .......... Cedar ......... Total.
July ................... 268,200 ....... 133,510 ....... 401,710
August ................. 274,030 ....... 104,290 ....... 378,320
September .............. 240,030 ....... 79,910 ....... 319,940
Total .................. 782,260 ....... 317,710 ...... 1099,970
% of Total .................. 71 ............ 29 ........... 100
................... White Wood .......... Cedar ......... Total.
July .................... 97,420 ....... 196,490 ....... 293,910
August ................. 108,530 ....... 207,720 ....... 316,250
September .............. 107,920 ....... 140,680 ....... 248,600
Total .................. 313,870 ....... 544,890 ....... 858,760
% of Total .................. 37 ............ 63 ........... 100
HES-004-0148-0151
HES-004-0132-0155
IIJ72.4
AREA DIR
720519
CORRESPONDENCE
HALBERT, VERNON S
Onnie Paakkomen, 5/19/72 Forester Vernon S. Halbert, Forestry Technician
Utilization of Cull Cedar by ITT-Rayonier For the past several years all
cull cedar that has been delivered to Rayonier's sorting yard at Crane
Creek has been moved across the road to their refuse dump where
contracted shake cutters utilize all they can recover out of this
material. This material consists of slabs, broken chunks, worry logs,
etc. What monetary arrangements have been made between the two parties,
I do not know. All so-called hardwood or pullpable culls that are
delivered to the yard are sent to Rayonier's mill in Hoquiam where they
are shipped along with the better material and utilized for their chip
content.
Sgd. Vernon S. Halbert
Forestry Technician
cc: Adm. - Evt. - Hoq. Subject - Hoq. Carony VEalbert:lr 5/19/72
HES-004-0152-0152
HES-004-0132-0155
IIJ72.4
PAAKKOMEN, ONNIE
720519
CORRESPONDENCE
PAAKKONEN, ONNIE E
Onnie E.Paakonen Forester Utilization of Cull- Cedar- Crane Unit
I called Mr. Lee Nutter, log buyer, ITT-Rayonier, Inc., on May 10,
1972, on the subject of cedar cull log use at the Crane Creek reload.
He said a Mr. Austire Hansley produces shake bolts from whatever he can
salvage from the material which is non merchantable for various reasons,
but delivered to the reload. ITT-Rayonier charges him $24.00/ cord of
bolts. He said that the productions approximates about five cords per
week, but it must be remembered that much of the material comes from
other sources than the Quinault Reservation.
Attached is a calculation sheet showing the number of logs and
total gross volume by species removed for the first quarter of 1972 from
the Taholah and the Crane Creek Logging Units.
Vern Halbert and Henry Romero will attempt to analyse the cull use
by Aloha Lumber Corporation. Pending other action it is suggested that
beginning June 1,1972, we change purchaser 75 per cent or more of the
gross volume which in discussions with Scaling Bureau personnel and BIA
check scaler appears as appropriate, all species cull log at the
modification rates of $1.50 per cord on the Crane Creek unit and $2.00
per cord on the Taholah Unit for pulp wood. Conversion to be made at the
rate of 500 board feet per cord as stated in the modification. It is
also suggested we notify the companies of our intent in the near future.
According to the volumes removed as indicated on the attached
calculations, it appears obvious that each company utilized much of the
cull material since it is not burned nor buried nor carried away.
(Sgd.) Onnie E. Paakkonen
Onnie Paakkonen,
Forster
Attachments cc: ADm. -Evt. - Hoq. Subject - Hoq. Chrony OPaakkonen:
Ir 5/19/72
TABLE OMITTED SEE ORIGINAL
1st QUARTER 1972 CULL VOLUME
TABLE OMITTED SEE ORIGINAL
HES-004-0153-0155
HES-004-0132-0155
IIJ72.4
FILES
721006
CORRESPONDENCE
WALDRIP, DOYCE L
cc: Supt., Western Wash. Agency Hoquiam Field Station, Attn. Forestry
AIRMAIL Memorandum To: Commission of Indian Affairs
Attention: Branch of Forestry
From: Assistant Area Director (Economic Development) Subject: Revision
of Stumpage Rates, Taholah Logging Unit,
Quinault Reservation
Consultations on revised stumpage rates for the Taholah Logging Unit
were held at Hoquiam, Washington, on August 7, 1972, and at Taholah,
Washington, on August 16, 1972. A meeting for the purpose of further
negotiation between the sellers and the purchaser was held at Hoquiam,
Washington, on August 25, 1972. A memoramdum on each of these meetings
and record of persons attending is enclosed.
The log grade prices (stumpage rates) which we hereinafter recom-
mend, have been recalculated from those set out in the original report
on stumpage rate revision submitted by our memorandum of June 5, 1972.
We set out in the following the changes that have been made and these
are further grouped by item (1.) where apparent agreement has been
reached and (2.) where continuing contention is evidenced.
1.a. Log grade prices have been calculated using the upgraded log
volume and value directly as reported by the Industrial Forestry
Association (IFA). In examining the first quarter 1972 IFA report, it
was evident that the ungraded volume contained significant but unknown
volume of logs of general value of less than the lowest grade considered
in the revised stumpage rates. We therefore, by a calculation, reduced
the volume and value of ungraded logs used to calculate average prices
where this condition was evident. Since then, we have had opportunity
to analyze the ungraded volumes as to the effect of the low log values
appearing and find that whereas the effect on first quarter prices is in
the range of $1 for hemlock, the effect on second quarter prices is in
the range of 20 cents. In using the "as reported" data, we have
reasoned that the 20 cents is a minor factor not unlike other
incongruous price factors which appear in the IFA reportings. Branch
Subject Branch chrony Yellow chrony
Page 2
Whereas Aloha makes extensive argument for consistency as to treatment
of ungraded volumes and other computations, we have made exceptions to
the general rules or distributing ungraded volume in the case of
redcedar where the mixed grades reported do not furnish a basis for
distributing the ungraded volume. Aloha merely notes this inconsis-
tency which they favor. We have not acceded to Aloha's request that
ungraded logs be distributed, using the total combination of graded and
mixed grade reported. This request will be studied for possible
application to future stumpage rate revisions.
b. The factor of average gross volume per log is listed at
the exact calculated value and not rounded so that no distortion occurs
in use of the various yarding adjustment tables of the U.S. Forest
Service Handbook.
c. The average hilead yarding distance is corrected from 400
to 450 feet based on review of the measurements taken to develop this
cost adjustment factor.
2. a. Log grade prices are based on second quarter 1972 IFA and
Aloha contends the second quarter prices cannot be introduced with an
effective date of revised rates of August 1, 1972. This apparently is
on the basis that they must have some period of notice of our intent to
use the prices prior to the effective date. The average prices
developed from the IFA report were furnished Aloha on August 4, 1972.
At the consultation of August 7, 1972, Aloha claimed they had had no
opportunity to review the second quarter IFA prices. The second quarter
prices were published July 20, 1972. Further, Aloha as a participant in
the log market, would have current knowledge of the status of log prices
well in advance of publication or even the end of the quarter period.
b. Aloha contends the stream cleaning cost allowance at 47
cents is short of their cost experience and questions the method of
measuring the stream length to be treated. The stream cleaning allow-
ance has been re-examined pursuant to the measuring procedures used and,
as advised by the U.S. Forest Service, as applicable to the regional
cost guide. We have then allowed the regional cost adjusted to the
Taholah conditions. This is consistent to the manner in which the USFS
cost guides are used in determining other items of logging cost allowed.
In their letter of September 25, 1972, to Deputy Commissioner Crow,
Aloha has expressed concern that road construction and maintenance cost
Page 3
allowances used in the revision of stumpage rates are sufficient to
recent instructions issued by the Western Washington Agency. The
Western Washington Agency, with our assistance, is presently developing
road construction and maintenance instructions which we believe are in
agreement with the cost allowances. We are inoperal these will settle
this issue and result in performance by the purchaser satisfactory to
our requirements. Aloha's concern with the cost allowance are at this
point on principle rather than costs. Aloha has experienced in their
road construction and maintenance operations. Various other items of
discussion raised by Aloha concern the proce- dures used to compute
stumpage rates and that these be standardized. While such consistency
is desirable, changes do occur that require consistency to be tampered
with reason or even abandoned to introduce better information. In
general, the consultations have served to resolve the procedural
questions raised and not specifically discussed herein. Representatives
of the Quinault Tribe were quite active in the discus- sion of the
consultation meetings of August 7 and 18. Allottee Committee
representatives were present only at the August 7 meeting and were
content to state their presentation would be made directly to the
Commissioner. On the issues of IFA quarter prices and effective date,
the tribal representatives were firm in holding the wecond quarter
prices should be used in the rate calculation and the effective date
should be August 1, 1972. On screen clearing costs the tribe has taken
the posi- tion that they cannot support a cost allowance against
allotted stumpage when the allottee may ahve no benefit from the
activity and may have no stream on his property. This report has
awaited any possible input from the sellers or pur- chasers during the
arbitration period or as a result of arbitration. No additional
information has been forthcoming. Revised pages to the Trend of
Economic Conditions Report which deal with the stumpage calculation
changes are enclosed (revised pages 5 and 6, Exhibits L, M-1, and -2,
N-1, -2, and-3). We recommend the following revised log grade prices
(stumpage rates) be established for the Taholah Logging Unit to be
effective August 1, 1972.
..................................... Indicated ....... Present.
Species .....................Grade... New Rate ........... Rate.
White pine ................... P ....... $ 68.52 ....... $ 35.26
Species Rate............................ $ 23.23 ....... $ 11.55
White fir .................... P ....... $ 84.37 ....... $ 62.52
Species Rate ........................... $ 49.89 ....... $ 32.13
Redcedar .................... 1 ....... $ 90.68 ....... $ 84.05
Species Rate ........................... $ 46.39 ....... $ 32.17
Sitka spruce ................. S ....... $134.99 ....... $122.08
Species Rate ........................... $ 73.12 ....... $ 70.17
Douglas-fir ................ P-1 ....... $119.42 ....... $ 98.78
Species Rate ........................... $ 73.94 ....... $ 59.14 The
species rate listed is for comparison purposes and is based on C.Y.
1971 grade recovery; whereas, actual species rates will be calculated
on the current monthly grade recovery.
(Sgd.) Doyce L. Waldrip
Assistant Area Director
(Economic Development)
cc: Supt., Western Washington Agency Hoquiam Field Station, Attn.
Forestry VKMeeker:du - 10/6/72
HES-004-0156-0160
HES-004-0156-0160
IIJ72.3
COMM OF INDIAN AFF ; BR OF FORESTRY
721005
CORRESPONDENCE
CORNELIUS, CARL ; BIA
Mr. P.H. Koehler Aloha Lumber Corporation 1121 S.W. Salmon Street
Portland, Oregon 97205 Dear Mr. Koehler:
This is in response to your letter of September 25, 1972, in which
you state your views concerning the proposed adjustment of stumpage
rates on the Taholah Logging Unit, and present certain conditions under
which the rates proposed by our representative would be acceptable to
the Aloha Lumber Corporation. We will discuss the items which you have
enumerated in the respective order they were presented in your letter.
1. We will proceed with our proposed stumpage revision,
as you have indicated we should, making such modifications
in trend data as we are advised have been agreed upon
during the consultation by our representative.
2. Insofar as item 2, we cannot speak for the Indian owner
"parties" to the contract relative to their spacement with,
or lack of agreement with, the propriety of our computation
of the proposed rates. It is our present intention to trend
furture stumpage revisions, as we have in the past, using the
best data and information available. Presumably, you will
have the right in the future to challenge previously existing
data, as you did in your contest of the January 1, 1966
revision, at least to the extent permissible under the
statute of limitations.
3. Under this item, we cannot speak for the Indian owners.
However, since the May 20, 1970 agreement has not been
cancelled, it will presumably continue in effect, subject
to the qualifications in the Assistant Secretary's letter
of August 7, 1970, to which you have agreed. One of those
qualifications was that "+ + + the Secretary shall not be
bound to approve any arbitration decision which might be in
conflict with the interests of the Indians or the United
States " This proviso would appear to rule out the approval
of any "arbitration decision" if the Indian-owners refused
to enter into arbitration.
4. Any changes in standards for road construction or
stream clearance that may be required of your company will,
of course, be properly considered at the time of future
stumpage revisions. As you are aware, all data used in
trending stumpage prices, including costs as well as log
prices, are based on cost or sales experience during some
preceding period. With the anticipated continuing rise
in the market value of forest products, it will be necessary
to examine the effects of both costs and market values on
stumpage prices at the end of each quarter annual period.
5. It is our intent to establish the new rates effective
as of August 1, 1972. We will instruct our field offices
to hold, in an escrow account, the difference between the
old and the new prices for timber cut during August and
September We suggest, however, that you should consider
the effects of such procedure on further aggravation of
the already seriously aggravated situation.
Since you will not receive this prior to October 4, 1972, the
indicated expiration of the period for negotiation, we will proceed with
our usual notification by wire that the proposed new prices are being
made effective as of August 1, 1972.
cc: Portland AO
HES-004-0161-0162
HES-004-0161-0162
IIJ72.3
KOEHLER, P H ; ALOHA LUMBER CO
720814
CORRESPONDENCE
; ALOHA LUMBER CO
ALOHA LUMBER CORPORATION
STATEMENT OF POSITION
I. Log Value Determinations
Regarding BIA distribution of ungraded logs, 1st quarter, 1972 IFA
sales reports and specifically in reference to the memo dated June 28,
1972 to Superintendent Western Washington Agency from Assistant Area
Director, Bureau of Indian Affairs, Portland, page 3, titled Treatment
of Ungraded Volumes - IFA report, it is the BIA's contention that the
"the range of ungrades prices contains prices well below the range of #3
logs."
The range in IFA price reports indicates that one or more logs were
sold at the low indicated price and one or more at the high price. No
volume for either of these extremes is given. The BIA proposal allows
for manipulation; e.g., the timber owner could report one log in all of
the ungraded categories at $10M resulting in the elimination of footage
and dollars while on the other hand, Aloha Lumber Corporation could
report one log in all the #3 categories at $5M offsetting the effect of
the above. Therefore, the BIA method employed in this review allows for
the development of a biased result.
In another section of the above referenced paragraph; i.e., "the
ungraded volume average price for certain species is well below the
average price for #3 logs---," the BIA approach involves consideration
of only the #3 log in the grades log sales and does not recognize the #3
log included in mixed log sales.
Exhibit A indicates that the ungrades average sales price for certain
species is not below the average price on #3 mixed grade sales
In past reviews, it was the practice to distribute ungraded volume
over the mixed grades only. By comparison, an exception to this
approach occurs in this review, in cedar (Grays Harbor/ Willapa, inland
sales, 1st quarter 1972), where the ungraded is distributed only over
the grade log sales. The inconsistency in approach is noted.
In respect to the foregoing, Aloha Lumber Corporation, therefore,
requests that as a standard practice, ungraded logs be distributed over
the total comination of graded and mixed grade logs. This would result
in a wider base and a more rpresentative distribution of the ungraded
log category. Further, in so far as any or all log value
determinations, we must request the elimination of the arbitrary
exclusion of certain ungraded volumes and the establishment of a uniform
procedure in determining these values for use in this and subsequent
stumpage reviews.
II. Logging Costs
Reference: Attachments to a letter from the U.S. Department of
Interior, BIA, Portland by Kenneth W. Hadley to Evans Products,
attention Richard Brown, dated June 15, 1972; 1972 revision Taholah
Logging unit, logging cost computations, exhibit L, exhibit N1 throuth
N3 and exhibit L. revision 8/3/72.
A. Average net volume per acre. Aloha Lumber Corporation is
basically in accord with the BIA findings. There is deep concern,
however, about the base year or years averaged in computing this figure
and it is requested that a consistent approach be used; e.g., the
average of the most recent three years
B. Average gross volume per tree. Aloha Lumber Corporation is not
in agreement with the BIA results because of the incongruity apparent in
the increase of logs per tree ratio from 2.17:1 in 1967 to 2.54:1 in
1972. Based upon last year's ratio of 2.33:1 the gross volume per log
sould be 2.33 times 374 which equals 871BF rounded to 850BF on the
U.S.F.S. Timber Appraisal Handbook Tables. We urge that a combined BIA,
tribal and Aloha Lumber Corporation cruise be made for purpoes of
sampling the gross volume of remaining timber and that a constant size
determination be made for this and all future stumpage reviews
C. Average gross volume per log. Aloha Lumber Corporation agrees on
the BIA gross volume per log of 374BF rounded to 380BF on high lead
yarding. However, the mobile yarding gross log size should be rounded
to 370BF as shown in the USFS Timber Appraisal Handbook Tables. The
agreed upon actual footage should be applied to the appropriate yarding
method indices.
D. Scaling defect. Aloha Lumber Corporation agrees with the BIA
findings. Here again we request consistent use of the most recent three
year's average in determining the scaling defect for future reviews.
E. High lead yarding distance. We accept the agreed upon average
distance of 450 feet.
F. Mobile yarding/cold deck loading. Approximately 25% of the
mobile yarding timber has to be "hot" loaded because of various
operational and safety factors. Allowance should be made for mobile
yarding/"hot" loading in both the loading and depreciation cost
allowance categories.
G. Stream Cleanup. Aloha Lumber Corporation is willing to undertake
whatever is specifically required in stream cleanup by the BIA in direct
proportion to the allowance given. We suggest that the 47[ MBF
currently allowed for stream cleanup b placed in a fund to be
administered by the BIA or jointly with Aloha Lumber Corporation.
Available funds would dictate the extent and duration of cleanup.
Two major disparities exist in the BIA stream cleanup rationale and
resultant allowance:
1) The amount suggested approximates 50% of the USFS
and Aloha Lumber Corp. historical experience figure.
2) The number of stations derived from measurement of
logging plan maps appears to be straight-line rather
than the actual distance when following the course
of the streams.
H. Fire lines (not in reference materials cited above). If fire
lines are to be required, an allowance must be established. If they are
not to be required, Aloha Lumber Corporation must be notified in
writing.
I. Transportation. The BIA approach in developing this cost
allowance includes arbitrary selection of an input profit ratio (12%) in
determing the hauling rate. By (documentable) comparison, the
Washington Utilities and Transportation Commission has established in
two rate hearings, a range of 5 to 6 1/2%. A maximum of 6 1/2% should
be used in the transportation computation.
J. Road Maintenance and Development. With the substantial upgrading
of construction specifications imposed on the Aloha Lumber Corporation
this year, allowances must be made commensurate; i.e., if USFS
specifications are required, USFS cost allowance indices should be used
in the computation. The current BIA cost allowance increase in labor
and other costs such as inflation. A regional highway construction
index could hardly be held indicative of forest road construction. The
identity of publications used by BIA in computation of road maintenance
and development allowance should be known to all concerned parties.
K. Slack Line Yarding. Additional cost allowance approaching that
found in local practice and USFS data should be applied to the volume
scheduled for suspension type yarding in the 1972 logging plan
L. Sorting Yard. An agreed upon format using publicly identifiable
and routinely updated data on a localized basis should be used for
computation of sorting yard allowance.
Reviewing the consultation of August 7, it becomes apparent that
numerous inconsistencies and arbitrary practices occur in the
formulation of logging cost allowances appearing in the above referenced
correspondence. The foregoing, paragraphs A through L, state the
position of Aloha Lumber Corporation. In addition, we are constrained
to request the following in general:
1) that the approach to computations and/or formulas
employed be known to all concerned parties.
2) The method of computation be standardized for all
future reviews.
3) That all informational input for the stumpage
computation be of a public or generally available nature.
4) That the information be comparable in scope to the
practices actually employed or called for by the
forest officer in charge on the Taholah unit. TABLE OMITTED SEE
ORIGINAL
HES-004-0163-0169
HES-004-0163-0171
IIJ72.2
720822
CORRESPONDENCE
ASST AREA DIR ; ECONOMIC DVLP
DOCUMENT OMITTED SEE ORIGINAL cc: Forestry Branch subject 72-5-3 -
329.5 Branch chrony Taholah Stump. Yellow chrony Memorandum August 22,
1972 To: Superintendent, Western Washington Agency. From: Assistant
Area Director(Economic Development) Subject: Revision of Stumpage
Rates, Taholah Logging Unit, Quinault
Reservation
Enclosed are revised exhibits L, H and N of the subject report and a
listing of average gross prices derived from the second quarter of 1972
IPA reports. Copies of these should be furnished each of the parties
receiving the original report for their use in discussions held towards
attaining agreement on revised stumpage rates. The revised exhibits
concern the following in relation to the original report exhibits.
1. The average gross volume per log is listed at the caculated
figure of 574 so that no distortion occurs in the use of the yarding
adjustment tables of the U.S. Forest Service Handbook.
2. The average hilcad yarding distance is corrected, based on
review of the measurements taken to develop this cost adjustment factor.
3. The number of stations of stream cleaning were remeasured to
conform with the procedures utilized by the U.S. Forest Service to
develop data used with the regional cost guide.
4. Yarding costs have been calculated to allow for the lifting of
logs across stream in specified areas. As indicated above, the grade
prices of exhibit H are obtained with the use of second quarter 1972 IPA
log price reports. It was indicated in the meeting of August 18, 1972,
at Taholah, that continuing discussions will be held under the terms of
the agreement of May 23, 1970. The parties to the Agreement of May 23,
1970, have until the close of the consultation period for negotiation
efforts. Guidance in this matter is contained in the Area letter to
Aloha Lumber Corporation of May 7, 1971, and the Commissioner's letter
of June 4, 1971.
Enclosures 5 sets cc: Commissioner, Attn. Forestry w/enclosures 2 sets
Hoquiam Field Station, Attn. Forestry VKMeeker:du - 8/22/72
HES-004-0170-0171
HES-004-0163-0171
IIJ72.3
SUPT ; W WASH AGENCY
721005
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
The Taholah Logging Unit Contract provides in Section 11 for revision
of stumpage rates when, in the opinion of the Approving Officer, they do
not properly reflect the true market value of the forest products.
Stumpage rates were last revised for effective date of August 1, 1971.
The revised stumpage rates were announced by the Deputy Commissioner
of Indian Affairs after a period of consultation with representatives of
the purchaser and the sellrs and in agreement with the decision of July
27, 1971, by the Arbitration Board convened under an agreement between
the representatives of the purchaser and the sellers
The rates effected August 1, 1971, evidenced a decline in log prices
and rising logging costs. In the period since August 1, 1971, log
prices have recovered from the decline and have risen to higher levels.
Logging costs have continued to rise but have been dampened by the use
of new types of equipment. The sum of the changes are significant and
indicate an upward revision of stumpage rates. The indicated rates
herein developed use the information of the Industrial Forestry
Association (IFA) log price reportings, U.S. Forest Service Westside
Logging Cost Guides, Bureau of Indian Affairs unit information, and
other established cost data sources. The information and exhibits
provided herein examine the trend of economic conditions through price
indexes, timber bid prices, and log market activity.
The average log values by grade for the combined Puget Sound,
Grays-Willapa Harbor Districts for the first quarter 1972, as reported
by IFA, are calculated below to show the change in log market prices.
These grade prices are used to calculate the indicated revised stumpage
rates and the prices listed include the effect of volume and value of
mixed grade and ungraded log sales.
1st Qtr. ...... 1st Qtr.
Species ................... 1971 .......... 1972 ....... Change.
White Pine
White Fir
Redcedar
Sitka Spruce
Douglas-fir
Hemlock
HANDWRITTEN MARK-UP ILLEGIBLE
In Exhibit A the average log values for the combined Puget Sound,
Grays-Willapa Harbor Districts are listed for the first quarter of 1972;
and comparable values using 1970 and 1971 grade recovery from the
Taholah Logging Unit are developed. This data is carried into Exhibits
B-1 and B-2 to arrive at value change due to log price and recovery
change, respectively. A summary of the changes is tabulated below.
TABLE OMITTED SEE ORIGINAL
Exhibits C-1 and C-2 give transaction information of timber sales in
the Forks District, State of Washington forest and the Quinault
District, Olympic National Forest. These districts are in close
vicinity to the Quinault Reservation and the forests most nearly compare
to the Quinault forest. The prices obtained from the Quinault District
are affected by the restriction on export of National Forest logs and
only a minor volume of cedar is sold.
The export market is a major factor affecting average log prices of
the markets. The volume of logs going to export continues to be high.
Random Lengths Export Market Report lists the following log shipments
from Washington and Oregon (MBF):
The volumes and percents of log sales reported as export by IFA for
the combined Puget Sound, Grays-Willapa Harbor Districts are listed in
Exhibit D and are summarized below. Redcedar and hemlock are the
principal species of the logging unit.
Species ......... 1st Qtr. 1969 1st Qtr. 1971 1st Qtr. 1972
White pine .................. 88 ............ 88 ............ 31
White fir ................... 83 ............ 64 ............ 65
Redcedar .................... 18 ............ 22 ............ 16
Sitka Spruce ................ 92 ............ 99 ............ 91
Douglas-fir ................. 44 ............ 25 ............ 60
Hemlock ..................... 89 ............ 88 ............ 70
Trends in product value, particularly to redcedar and hemlock, which
have occurred since the previous revision of stumpage rates are
illustrated in the following summary and the indicated exhibits. TABLE
OMITTED SEE ORIGINAL
A grouping of the U.S. Forest Service cost guide items furnishes an
indicator of stump to truck cost trends. The revised year guides
provide the following: 1968 - $18.75, 1969 - $21.62, 1970 - $23.88.
Labor cost data from the Washington Labor Market publication shows
hourly earnings as follows in the lumber and wood products industry
(logging): Dec. 1969 - $4.43, Dec. 1970 - $4.84, Dec. 1971 - $5.16.
Productivity in the year 1971 for private nonfarm industry is indicated
to have had a 4+ percent increase and was a reversal of a slowing trend.
The methods of logging currently in use have the capability of
exceeding the private nonfarm average gains. Exhibit K is a
productivity development from data for the years 1961 through 1970
The computation of indicated stumpage rates is shown in Exhibits L
and M. Source of base cost data of Exhibit L is footnoted with
reference to Exhibit M-2. Revision of log grade prices indicated for
the Taholah Logging Unit is shown below. The species rate shown is
weighted to C.Y. 1971 production to give a comparative figure.
Indicated ....... Present
Species ................ Grade ....... New rate .......... Rate
White pine .................. P ........ $ 68.52 ....... $ 35.26
Species Rate ........................... $ 23.23 ....... $ 11.55
White fir ................... P ........ $ 84.37 ....... $ 62.52
Species Rat ............................ $ 49.89 ....... $ 32.13
Redcedar .................... 1 ........ $ 90.68 ....... $ 84.05
Species Rate ........................... $ 46.39 ....... $ 32.17
Indicated ....... Present
Sitka Spruce ................ S ........ $134.99 ....... $122.08
Species Rate ........................... $ 73.12 ....... $ 70.17
Douglas-fir ............... P-1 ........ $119.42 ....... $ 98.78
Species Rate ........................... $ 73.94 ....... $ 59.14
Hemlock ..................... P ........ $ 81.93 ....... $ 72.89
Species Rate ........................... $ 45.44 ....... $ 36.78
Prepared by: Victor K. Meeker, Supv. Forester, June 1, 1972
Revised - Oct. 5, 1972
HES-004-0172-0177
HES-004-0172-0177
IIJ72.1
710824
CORRESPONDENCE
CLARK, DON W
Memorandum To: Commissioner of Indian Affairs
Through: Director of Economic Development
From: Chief, Forestry Program Subject: Stumpage Rate Adjustment,
Tabolah Logging Unit,
Quinault Reservation, Washington
The Taholah Logging Unit Contract No. I-101-IND-1766 provides in
Section 11 for revision of stumpage rates, when in the option of the
Approving Officer, they do not properly reflect the true market value of
the forest products. Stumpage rates were last revised for effective date
of July 1, 1969. These rates were appealed by the Purchaser and an
agreement completed between representatives of the parties to the
contract settled the rates established July 1, 1969. In the same
agreement, settlement was also made of the appeals and judicial
proceedings arising out of the revision of stumpage rates made effective
January 1, 1966.
As a result of the settlement which was approved by Assistant
Secretary Loesch on August 7, 1970, certain new features were to be
included in the proceedings in future adjustments of stumpage rates:
1. The 30-day notice prior to revision of stumpage rates remains in
effect. If necessary, an additional period of time will be grented in
which to complete arbitration, as provided under paragraph 3 of the
agreement.
2. It was understood by all martics to the agreement that the
Secretary of the Interior expects to assept the decisions rendered by
the Arbitration Board pursuant to paragraph 3 of the agreement, as
modified by number one (1) above, but that the Secretary shell not be
bound to approve any arbitration decision which might be in conflict
with the interest of the Indians or the United States.
The Aloha Lumber Corporation by Telegram of January 29, 1971, to the
Commissioner, requested a reduction of the stumpage rates. Information
available to the portland Area Office indicated a revision of stumpage
rates would be in order due to a decline in log grade prices combined
with logging cost increases. By teletype of February 24, the Area
Director was instructed to proceed to review rates presently in effect
and to advise the commissioner of the findings and recommendations.
Following the submission of a report entitled "Trend of Economic
Conditions Relative to Revision of Stumpage Dates," the purchaser and
the dellers were notified of the Commissioner's intentions to revise
stumpage rates in accordance with the trend of economic conditions in
the west coast logging and lumbering industry (as specified in Section
11 of the contract.)
Consultations were held in Portland. Oregon on Hay 3, with
representatives of the purchaser, sellers and BLA. The purchaer and
sellers were in disagreement as to stumpage reates (neither party
accepting DLA indicated rates) -- purchaser insisting on further
reduction then indicated by BLA findings: the sellers stating any
downward revision is not warranted nor justified, and that they were
prepared for arbitration.
All parties were notified that an arbitration period is established,
at the end of which a decision shall be rendered by the Board. After an
approved extension of time for arbitration, the majority of the
arbitrators arrived at their decision on July 21. The arbitrator
appointed by the Allottees Committee, Mr. H.D. Terry, did not sign the
decision, although he was present at the meeting on July 21 (his
position explained in letter of July 23 attached to the "Arbitration
Decision").
On July 26, Mrs. Helen Mitchell submitted a letter to Mr. Lee Cook
of the Office of Economic Development stating that the Allottees
Committee suspended their part in the arbitration as they falt "it is
unjustified in terms of the expense of time, effort and Indian monies."
The stated also, that she did not feel arbitration was a vorkable
method.
On August 4, the Area Director submitted comments on the report of
the Arbitration Board. The Arbitration Board included in their report a
part of the business of the meeting of the parties on June 17 This is
listed in the attachment to the Evans Products Company letter of June
18, to the Commissioner as follows (item 1):
average
Not Precedent setting either party."
This is the "Interim Stumpage" referred to in the Board's report. From
what the Portland Office has been able to obtain, this rule was intended
to insure that the Quinault Tribe would receive a stumpage rate for the
timber to be logged from an allotment they had recently purchased,
equivalent to the rate used to determine the acquisition cost. Both
Evans Products and the Allottee Committee felt that the reporting of the
meeting in the Evans Products letter of June 18, put put the rate
setting based on a three-month grade recovery in effect. We have
differed with them and maintained that until new rates are established
by the Commissioner, the grade prices put into effect July 1, 1969,
combined with individual (single) month grade recovery determine
stumpage rates to be paid to the Indian owners. Calcualtions furnished
by the Western Washington Agency, based on the rate setting using the
three-month grade recovery proposed by the purchaser and Allottee
Committee and recommended by the Arbitration Board, showed the following
differences in dollar gain or loss over the amount determined by
established procedures: TABLE OMITTED SEE ORIGINAL This difference is
nominal; however, we feel it is significant to point out that this kind
of action would set a precedent encouraging unac- ceptable manipulation
of a stumpage values between ownerships, and would be contrary to the
Secretary's decision that stumpage rates be determined on idividual
month grade recovery. The Portland Area Director has recommended the
following:
1. Increased logging cost allowance of 23 cents.
2. The stumpage rates to be paid until new grade prices are approved
be those calculated from the current grade prices and individual
(single) month grade recovery.
3. The stumpage rates to become effective August 1, 1971 are as
follows: TABLE OMITTED SEE ORIGINAL
Note: The SM (Special Mill) logs have become a significant
part of the production on the unit since the last stumpage
revision effective July 1, 1969. Therefore, the log prices for
this grade have been inserted in this adjustment.
A comparison of stumpage rates proposed by the various parties is
shown in the attached Exhibit A.
Based on our review of the information presented, the following is
recommended:
1. An increase in logging costs of 25 cents be allowed as
recommended in the Arbitrator's Decision. This increased allowance has
been included in the stumpage rates shown in Exhibit A under
"Arbitration Board Rates."
2. The Effective date of the new rates be established August 1, 1971
as stated in the Arbitrator's Decision.
3. That the calculation of the "Interim Stumpage," referred to in
the Arbitrator's Decision, be made by species based on average grade
recovery during the 3 month period, January, March and April, 1971, be
disapproved. Dates to be paid for stumpage removed prior to August 1
shall be calculated from log 103 grade prices in effect prior to that
date using individual (single) month grade recovery data.
4. The stumpage rate for cedar poles be established at 12 cents per
linsar foot.
The telegram to the purchaser and the teletypes to the Superintendent
and the Area Director effecting the above recommendations are enclosed
for your signature.
Attachment cc: AD Portland: Attn: Forestry (2)
TABLE OMITTED SEE ORIGINAL
HES-004-0178-0183
HES-004-0178-0183
IIJ71.4
COMM OF INDIAN AFF DIR OF ECONOMIC DVLP
710804
CORRESPONDENCE
GALBRAITH, A W
Forestry
339.5
Taholah Stamp. Ad
AIRMAIL August 4, 1971 Memorandum To: Commissioner of Indian Affairs
Attention: Forestry Program
From: Assistant Area Director (Economic Development) Subject: Report
of Arbitration Board, Taholah Logging Unit, Revision
of Stumpage Rates
The issues raised by Aloha Timber Corporation are in the form of
specific items with which they take exception. Basic to their argu-
ments are the tenets that in a period of general cost rise all costs
rise and further that changes should not be made to any degree in any
procedure unless perchange it follows a pattern of increased cost
allowance and/or results in lower stumpage rates. The Allottee
Committee differs with the entire process used whereby rates are derived
from log prices less costs and application of average costs. They have
indicated are of the comparable sales method as a means of revising
stumpage prices. The following treatment of the Board deci- sion is
numbered to coincide with the numbering of their findings and
recommendations starting on page 6 of the report.
1. Gross Log Size Factor:
Since the USFS procedural change that make it necessary to
determine a gross log size factor, the import pf Timber Cut
(ROTC) data has been used. The calculations have been re-
fined over the period it has been used to more accurately
arrive at the log (piece) size actually handled. We do not
agree with the Board or Aloha that pickup scale piece sizes
should be included in determing the size of the pieces they
handle in yarding and loading operations. We have no objec-
tion to the Board proposal to interpolate the Table 415.171
of the Forest Service Handbook. This will result in an 11
cent increase in logging cost allowance as the Board has
recommended.
Page 2
2. Board Maintenace Rate Per Mile.
Due to controversy over the length of road maintenance that
should be allowed representatives of Aloha, BIA and Quinault
Tribe measured and agreed upon the distance of 20.5 miles
and considered terrain difference between the Taholah and
Crane Creek units. With the changing of the distance we
felt it was appropriate that the terrain difference recog-
nized should be allowed for only the road portion with such
difference.
The rates per mile used have been based on information supplied
by the US Forest Service, however, they have indicated they
are now unable to provide similar information due to changes
in data accumulation. We recommend a technique of cost trend-
ing the same as used for road construction to replace the pre-
vious procedure. The base of 1964 (first revision under
Sec. 11 of the contract) at 10 cents per mile would thus
presently be 11.0 cents. This will result in a 12 cent in-
crease in logging cost allowance, instead of the 14 cents the
Board has recommended.
3. IFA Log Prices.
We have no evidence as to the effect of the exclusion of free
alongside snip (FAS) and loaded on ship transactions on IFA
reported log prices. Past discussion with IFA officials has
indicated that sales on a FAS basis were not a great factor
in sales reported; that they were most evident in the Grays
Harbor market but volume wise are not large; and that FAS
sales are almost unknown in the Columbia River market.
4. (Illegible) Logging Costs.
We have no comment.
5. Overhead.
We have no comment.
6. Fire Protection.
The Board evidently did not inquire into the subject to obtain
an understanding of the administrative fee taken or the fire
protection services furnished by the government. The matter
has been raised before and answered. Inclosed is the corre-
spondence of one such action for your information.
Page 3
The relationship of adminstrative fees to program costs were
examined in late 1969 with the result that the ice was re-
duced from 10 percent to 8 percent effective April 1, 1970.
7. Transportation Costs.
The original transportation cost allowance provided for haul
to Grays Harbor. In all the subsequent actions which revised
stumpage rates this condition has been retained as the basis
for transportation cost allowances. The Grays Harbor water
and export log market prices reflect prices for logs delivered
there. The hauling distance involved in the Inland IFA prices
is unknown, however, the 23 mile haul allowed for the Taholah
unit is not considered a long haul. The Inland sales over the
past 2 1/2 years account for approximately 7 percent of the IFA
report volume. Inland Redcedar sales in the same period are
approximately 5 percent of the IFA report volume.
8. Sorting Yard Costs.
We have no comment.
The Arbitration Board incorporated into their report a part of the
business of the meeting of the parties on June 17, 1971. This is listed
in the attachment to the Evans Products Company letter of June 18, 1971,
to the Commissioner as follows (items 1.): TABLE OMITTED SEE ORIGINAL
This is the Interim Stumpage referred to in the Board's report. From
what we have been able to gather this rate setting wad intended to
insure that the Quinault Tribe would receive a stumpage rate equivalent
to the rate used to determine the purchase cost of the concerned
allotment. Both Evans Products and the Allottee Committee felt that the
reporting of the meeting in the Evans Products letter on June 18, 1971,
put the rate setting based on a three month grade recovery in effect.
We have differed with them and held that until new rates are set by the
Commissioner the grade prices put into effect July 1, 1969, combined
with individual (single) month grade recovery determine stumpage rates.
We do not believe the attempted rate setting was intended to reduce
rates. This, however, would be the effect if affirmed. The dollar
Page 4
gain in May 1971, of $5,734.15 would be more than offset by the dollar
loss in June 1971, of $15,000.50 according to calculations we have
required the Western Washington Agency to furnish us. It also appears
the effect in July 1971, will be similar to that of June. This kind of
action would set a precedent encouraging unacceptable manipulation of
stumpage values between ownerships and contrary to the Secretary's
decision that stumpage rates be determined on individual month grade
recovery. Neither the Quinault Tribe or the Allottees gain from the
Interim Stumpage proposed. In summary we are recommending:
1. Increased logging cost allowances.
(a) Due to log (piece) handled - 11 cents. (b) Due to change in
calculation of road maintenance - 12 cents
2. The stumpage rates to be paid until new grade prices are
approved be those calculated from the current grade prices and
individual (single) month grade recovery.
3. The stumpage rates to become effective August 1, 1971, to be:
Species ...... Grade Recommended New Rates Present Rates
White Pine ....... P ......... 35.28 .............. 50.90
White fir ........ P ......... 62.54 .............. 66.41
Redceder ......... 1 ......... 84.07 .............. 77.04
Sitka Spurce ... SE1 ........ 122.10 ............. 143.15
Douglas-fir .... P-1 ......... 98.80 ............. 107.14
Hemlock .......... P ......... 72.91 .............. 62.39
Ceder Poles ............... 12 cents per ....... 7 cents per
The consultation regarding revision of stumpage rates occured on May 3,
1971, and a report was furnished in our memorandum of May 7, 1971. The
issues presented at the consultation that were not included in the
Arbitration Board report have evidently been withdrawn or have ceased as
an issue. The particular issue concerned with the shut-down of logging
operations and the decked logs seems to have been removed by the
rescription of operations in May 1971, the production of a designated
volume at "old rates" and the agreement for any revised stumpage rate to
become effective August 1, 1971.
(SGND) A. W. Galbraith
Assistant Area Director
(Economic Development)
Enclosure cc: Supt., Western Washington Agency Hoquiam Field Station,
Attn. Forestry Neely - 8/17/71 VKMeeker:jb-8-04-71 Branch subject Branch
chrony Yellow chrony DOCUMENT OMITTED SEE ORIGINAL
HES-004-0184-0188
HES-004-0184-0188
IIJ72.3
COMM OF INDIAN AFF ; FORESTRY PROGRAM
710516
CORRESPONDENCE
MCCAREY, REED, C TAYLOR, ALLEN
Of this date we endorse the full report submitted by the
Allottees Committee on April 5, 1971, as prepared by W. D. Terry,
and the supplemental report, attached, of May 16, 1971.
We solicit the support of the Bureau of Indian Affairs to back
the position of the Allottees Committee as stated in the report
submitted by this committee, and refuse any reduction of stumpage
prices in the Taholah Unit under contract to Aloha Lumber
Corporation.
Attest:
/s/ Anna M. Kzontz
Secretary Mr. Joe Jackson Forest Manager Bureau of Indian Affairs
Hoquiam, Washington Re: Revision of stumpage rates in the Taholah
Logging Unit,
Quinault Reservation.
Supplemental information to the April 5, 1971 report submitted by the
Allottees Committee.
Analysis of 1st Quarter State of Washington
Department of Natural Resources Sales
7 Sales in the Forks District
(sales involving salvage, thinning, & re-log were excluded) TABLE
OMITTED SEE ORIGINAL
Transportation and Development on State sales averaged $23.11 for
Hemlock and White Fir, and $23.17 on sales where bidding was permitted
on Cedar. On the Taholah Unit these costs are $15.02. Average log
values are Hemlock & White Fir, $62.78, Cedar, $70 40 per M.
These same sales also show another significant item.
Logging Costs .... Differential .
BIA Allowance
Hem & W F ............. 40.86 - 8.09 = 33.77 ......... 45.72
Cedar ................. 40.33 - 8.15 = 32.18 ......... 45.72
The above information exhibits to us and it certainly should be
apparent to people who are involved in this controversy that a lower
value log is being sold by the State of Washington for a higher price,
and also, the operators are producing these logs at a much lower costs.
On State sales streams are protected, cutting boundaries are
fire-trailed, and slash is disposed of 100% yarding is now required on
most sales.
In the area Office report of Trend of Economic Conditions", FAS &
loaded on ship log sales were not reported by the IFA. These sales are
a significant part of the export log sales picture.
The U.S. Forest Service handbook is a guide used in the Taholah Unit
appraisal system. Under USFS timber sales contracts, as under State of
Washington timber sales contract, 100% yarding of unmerchantable and
cull material is required on most contracts, resulting in a cleaner
logging job and substantually reducing the amount of slash. This cost
is a part of these appraisals and therefore, 100% yarding should be a
requirement in the Taholah Unit.
In discussions with Weyerhaeuser Company we have larned that in their
Raymond operation, logging costs are allowed only as far as their
closest mill (that is the Reymond mill), no matter what the product was
destined for. Costs on logs taken past this point to their Bay City
Yard in South Abardeen (approximately 25 miles) are charged against the
log. This situation is quite like the Aloha operation, except the
transportation of the whole Taholah Unit production is allowed into
Aberdeen. The sorting yard allowance is added on to this as a logging
cost. Our argument and the resulting costs and loss of stumpage is
reaffirmed.
As stated in the May 3, 1971 meeting in Portland Area Office there is
in excess of 25,000,000 board feet of fell & bucked and/or decked logs
in the Taholah Unit. A further check of BIA records reveals that it has
been the practice of Aloha over the past three year period to keep
22,000,000 to 29,000,000 board feet down ahead of logging operations.
In view of the approaching fire season and the complete lack of fire
trails around the logging blocks in the Taholah Unit, we strongly
question this practice. The 1967 Raft River fire is a very good example
of what could happen to the tremendous volume of cedar in a bad fire
year.
The above information is presented to show that market conditions are
more than offset by certain practices and allowances that have existed
under the Taholah Unit contract. Positive action to correct these
deficiencies is required.
We stand firm on the April 5, 1971 statement "any downward stumpage
revision is not warranted, nor can it be justified."
We are prepared for arbitration with Aloha Lumber Corporation in the
event the Commissioner's stumpage rates result in a reduction in the
Taholah Unit.
Prepared by: N. D. Terry, May 6, 1971 Cover letter attached.
HES-004-0189-0192
HES-004-0189-0192
IIJ71.2
710000
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
The Taholah Logging Unit Timber Contract provides in Section 11 for
revision of stumpage rates when, in the opinion of the Approving
Officer, they to not properly reflect the true market value of the
forest products. Stumpage rates were last revised for effective date of
July 1, 1969. These rates were appealed by the Purchaser and an
agreement completed between representatives of the parties to the
contract settled the rates effective July 1, 1969, and settlement was
also made of the appeals and judicial proceedings arising out of the
revision of stumpage rates of effective date January 1, 1966.
As a result of the settlement, certain new features were to be
included in the proceedings in future revisions of stumpage rates.
1. The 30-day notice prior to revision of stumpage rates remains in
effect. If necessary, an additional period of time will be granted in
which to complete arbitration, as provided under the terms of the
agreement.
2. It was understood by all parties to the agreement that the
Secretary of the Interior expects to accept the decisions rendered by
the Arbitration Board pursuant to paragraph 3 of the agreement, as
modified by number one (1) above, but that the Secretary shall not be
bound to approve any arbitration decision which might be in conflict
with the interests of the Indians or the United States.
Aloha Lumber Corporation, by telegram of January 29, 1971, to th
Commissioner, requested a reduction of stumpage rates. By telegram of
February 24, 1971, the Area Director, Portland, was instructed to
proceed to review stumpage rates presently in effect and to advise the
Commissioner of the findings and recommendations.
The period of time since the previous revision of stumpage rates has
seen some minor decline in activity of the forest products industry. It
has also been a period of adjustment by the industry. After the rapid
rise and decline in the end-product prices of 1968-1969, there has been
a leveling period for approximately one and one-half years. There is a
current upturn in these prices. Log prices in the same periods have
followed their own pattern of price change and did not experience the
extreme fluctuation of end-product prices.
Log prices, after a period of rise, have declined from the level of
those used in the previous revision of stumpage rates and logging costs
have increased. These changes are significant and indicated revised
rates are herein developed from the base of Industrial Forestry
Association (IFA) log price reportings, U.S. Forest Service West Side
logging cost data, and other established cost data sources. Other
information and exhibits provided herein examine the trend of economic
conditions through price indexes, timber bid rates, and log market
activity.
The average log values by grade for the combined Puget Sound,
Grays-Willapa Harbor Districts for the first quarter 1969 and the first
quarter 1971, as repoted by IFA, are calculated below to show the change
in log market prices. These grade prices are used to calculate the
indicated revised stumpage rates and the prices listed include the
effect of volume and value of mixed grade and ungraded log sales.
1st Qtr. ...... 1st Qtr.
Species ................... 1969 .......... 1971 ........ Change
White Pine
White fir
Redcedar
Sitka Spruce
Douglas-fir
Hemlock
Since the previous revision, two factors have been inserted in the
log prices. First, the SM (Special Mill) logs are priced as they have
become a significant part of the production. Second, the export
transactions reported by IFA exclude sales on a free alongside ship
(FAS) or loaded on ship basis. The range of transaction prices
continues to contain differentials due to varying points of delivery.
In Exhibit A the average log values for the combined Puget Sound,
Grays-Willapa Harbor Districts are listed for the first quarter of 1971;
and comparable values using 1968 and 1970 grade recovery from the
Taholah logging Unit are developed. This data is carried into Exhibit
B-1 and B-2 to arrive at value change due to log price and recovery
change, respectively. A summary of the changes is tabulated below.
Price Quality Net Species Percent
Species ...... Change .. Change ... .Change 1970 Production
White pine ....-$19.54..+$ .05 ... -$19.49 .... 1.37
White fir .....- 7.25..+ 4.72 ... - 2.53 .... 4.46
Redcedar ......- 6.31..+ .93 ... - 5.38 ... 68.59
Sitka Spruce ..- 26.55..- 10.67 ... - 37.22 .... 2.21
Douglas-fir ...- 2.03..- 16.64 ... - 18.67 ..... .36
He mlock .......- 3.0 .+ 2.00 ... - 1.01 ... 23.01
Weighted net change ............ -$ 5.19
Exhibits C-1 and C-2 give transaction information of timber sales in
the Forks District, State of Washington forest and the Quinault
District, Olympic National Forest. These districts are in the close
vicinity of the Quinault Reservation and the forests most nearly compare
to the Quinault forest. The prices obtained from the Quinault District
are affected by the restriction on export of National Forest logs.
State of Washington logs are not so restricted.
The export market is a major factor affecting average log prices of
the markets. The volume of logs going to export continues to be high.
Random Lengths Export Market Report lists the following log shipments
from Washington and Oregon (MBF):
Year .... Washington ........ Oregon ......... Total
1968 ..... 1,321,106 ....... 652,576 ..... 1,973,682
1969 ..... 1,309,340 ....... 561,492 ..... 1,870,832
1970 ..... 1,579,185 ....... 636,925 ..... 2,216,110
The volumes and percents of log sales reported as export by IFA for
the combined Puget Sound, Grays-Willapa Harbor Districts are listed in
Exhibit D and are summarized below. Redcedar and hemlock are the
principal species of the Taholah Logging Unit.
Percent Export
Species .......... 2nd Qtr. 1968 1st Qtr. 1969 1st Qtr. 1971
White pine .................. 85 ............ 88 ............ 88
White fir ................... 83 ............ 83 ............ 64
Redcedar .................... 21 ............ 18 ............ 22
Sitka Spruce ................ 94 ............ 92 ............ 99
Douglas-fir ................. 64 ............ 44 ............ 25
Hemlock ..................... 88 ............ 89 ............ 88
Trends in product value, particularly to redcedar and hemlock, which
have occurred since the previous revision of stumpage rates are
illustrated in the following summary and the indicated exhibits.
Forest Product..... Index ............ Index ............ Change Ave.
Realization..... 1st Qtr. 1969 .... 4th Qtr. 1970 of Lbr. Shipments
..... $119.87 ........... $88.38 .......... -$31.49
(Exhibit E) Cedar Siding (Clear) .............. 4th Qtr. 1968 ....
Aug. - 1970
(Exhibit F) .......... 121.3 ............. 136.1 .......... + 14.8
Cedar Shingles (No. 1) ............. 4th Qtr. 1968 ..... Aug. - 1970
(Exhibit G) .......... 232.6 ............. 152.9 .......... - 79.7
Redcedar Lumber ...... Apr. 1969 ....... Feb. - 1971
(Exhibit H) ......... $129.92 ........... $108.98 ......... -$20.94
Cedar Shingles ....... Apr. 1969 ....... Feb. - 1971
(Exhibit I) ......... $259.91 ........... $193.24 ......... -$66.67
Western Hemlock ...... Apr. 1969 ....... Feb. - 1971
(Exhibit J) ......... $122.01 ........... $ 92.56 ......... -$29.45
The U.S. Forest Service, Region 6, no longer publishes a stump to
truck cost sample statistic. However, a grouping of cost guide items
furnishes a similar indicator. The revised experience for the past
three years are: 1967 - 17.73, 1968 - 18.75, 1969 - 21.61. Labor cost
increases in the period, taken from State of Washington data, are
indicated by the average hourly earnings in the lumber and wood products
industries, i.e., Nov. 1967 - 3.37, Nov. 1968 - 3.62, Nov. 1969 - 3 97,
Nov. 1970 - 4.26. In the same period, productivity gain in the private
nonfarm economy was slower thatn the decade rate of 3.0 percent per
year.
Whether the rate of productivity increase has slowed in the logging
industry is uncertain. Exhibit K develops productivity information for
the years 1960 through 1969.
The computation of indicated stumpage rates is shown in Exhibits L
and M. Source of base cost data of Exhibit L is footnoted with
reference to Exhibit M-2. Revision of log grade prices indicated for
the Taholah Logging Unit is shown below. The species rate shown is
weighted to C.Y. 1970 production to give a comparative figure.
Indicated ........Present
White pine ................... P ....... $ 35.51 ....... $ 50.90
Species Rate............................ $ 11.77 ....... $ 31.18
White fir .................... P........ $ 62.77 ....... $ 66.41
Species Rate ........................... $ 34.32 ....... $ 42.03
Redcedar ..................... 1 ....... $ 84.30 ....... $ 77.04
Species Rate ........................... $ 36.73 ....... $ 46.65
Sitka Spruce ................. S ....... $122.33 ....... $143.15
Species Rate ........................... $ 68.61 ....... $ 95.04
Douglas-fir ................ P-1 ....... $ 99.03 ....... $107.14
Species Rate ........................... $ 53.23 ....... $ 58.83
Hemlock ...................... P ....... $ 73.14 ....... $ 62.39
Species Rate ........................... $ 38.55 ....... $ 43.68
Stumpage rates for cedar poles were established at 7 cents per lineal
foot in 1954. Production has been sporadic and none has occurred since
January 1968. Howver, due to the large increase in cedar prices over
the years, revision of the cedar pole rate is warranted. Exhibit O
colculates the indicated revised rate of 12 cents per lineal foot.
Prepared by: Victor K. Meeker, Supv. Forester, May 18, 1971.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
and arithmetic average of IFA Puget Sound-Grays-Willapa
Harbor Prices.
1970 and arthimetic average of IFA Puget Sound-Grays-willapa
Harbor Prices.
TABLE OMITTED SEE ORIGINAL
and arithmetic average of IFA Puget Sound-Grays-Willapa
Harbor Prices.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
Average Realization on West Coast Lumber Shipments. (Total Ave
Realization on lumber shipments from the Douglas-fir Region of Western
Washington, Western Oregon, and Northern California.) TABLE OMITTED SEE
ORIGINAL
Source-Western Lumber Facts, WWPA
(08-13-61.06) Cedar Bevel Siding Clear
TABLE OMITTED SEE ORIGINAL
(08-13-66.06) Cedar Shingles No. 1
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
WESTERN REDCEDAR Shingle INDEX Prices
(Based on Prices Published in Random Lengths)
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
EMPLOYMENT, WAGES AND PRODUC
TABLE OMITTED SEE ORIGINAL (1) Source - State of Washington, Employment
Security
Department. See attach of letters and related data.
Wages divided by employment. (3) Source - Production Prices,
Employment and Trade in Pacific
Northwest For Pacific N. W. Forest & Range Experiment
Station (Page 22, 2nd Qtr. 196) (4) Production (MMEM) divided by
employment. (5) Wages divided by production (MMBM). (6) Obtained by
phone from Brian Wall, Pacific N. W. Forest &
Range Experiment
1. Logging & Overhead
A. Direct /1/
1. Falling & Bucking ............................... $ 5.40
2. Yarding .......................................... 10.35
3. Loading ........................................... 2.31
Subtotal ............................................. 18.06
B. Overhead /1/
1. Overhead ........................................ $ 3.73
2. Depreciation ...................................... 2.00
Subtotal ............................................ $ 5.73
C. Contractual
1. Fire Protection /1/ ............................. $ .20
2. Other Costs /2/ .................................... .85
Subtotal ............................................ $ 1.05
TOTAL A, B, C ............................................. $24.84
Transportation
A. Transportation /3/ .............................. $13.18
B. Road Maintenance /2/ .............................. 2.46
C. Unloading .......................................... .45
TOTAL ..................................................... $15.95
3. Road Development /2/ .................................. $ 1.83
4. Sorting Yard /2/ ...................................... $ 3.21
TOTAL LOGGING COSTS ....................................... $45.97
Refer to Exhibit M-2 for base cost source.
Indicated Stumpage Rates by Log Grade and by Species, Taholah Logging
Unit, Determined from 1st Quarter 1971 /1/ Log Prices and 1969 Cost Data
(Revised) TABLE OMITTED SEE ORIGINAL
and ungraded volume.
Stumpage Rate = Log Price/1.op - Logging Cost.
Handbook of Timber Appraisal and Cost Guide
Branch of Forestry Cost Analysis
Commission Formula - adjusted
Average net volume per acre (MBF) ......................... 54.9 Average
gross volume per tree (BF) ..................... 1,050 Average gross
volume per log (BF) ........................ 450 Total Defect
.............................................. 32% Scaling defect
............................................ 20% Average slope
............................................. 30% Average unmerchantable
tree diameter ...................... 30 Unmerchantable trees per acre
............................. 10 Trees per acre
....................................... over 60 1. Falling & Bucking
Merchantable trees
Size adjustment (415.22b) ............. .811 Slope adjustment
(415.22c) ........... +.002
....................................... .813 Percent net recovery
.................... 68% Net adjustment .813 divided by
.68.....1.196 Regional average - $4.27
Unmerchantable trees
Regional average $1.50 per tree Adjustment factor (415.22e)
.......... 1.059 Adjusted cost per tree ............... $1.59
Cost per tree 1.59 x 14300/78,500 = ....................... .29
Total Falling & Bucking ............................. $5.40 2.
Yarding TABLE OMITTED SEE ORIGINAL
Volume per acre (net) .......................... 54.9
Net volume per log .361 M
Logs per acre = 54.9 divided by .361 (rounded) 160
Factor @ 250' external (415.37k) .............. 135
Factor @ 833' external = 250x.135/833 = .............. .041
Total gross factor ................................... .781
Net factor .873 divided by .80 ..................... 1.1012
Regional average $8.03
Adjusted average $8.03 x 1.091 ....................... 8.54
Move-in and setup .................................... 1.46
Stream cleanup ........................................ .05
Total yarding ....................................... 10.35 3.
Loading (adjustment by net factor)
Regional - $2.10
Adjusted average 2.10 x 1.091 ....................... $2.31 4.
Logging Depreciation (adjustment by net factor)
Regional average $1.82
Adjusted average $1.82 x 1.091 ...................... $2.00 5.
Transportation
Truck haul
Class A - 25 miles @ .165 ....................... $4.12
Class B - 14 miles @ .230 ........................ 3.22
Class C - 6.5 miles @ .275 ....................... 1.79
Base rate ........................................ 1.91
11 logs @ 7c ...................................... .77
................................................ $11.81
x 1.116 ........................................ $13.18
COMPUTATION OF CEDAR POLE STUMPAGE RATE
TABLE OMITTED SEE ORIGINAL
Indicating Price per Lineal Foot - 12 cents 1. Pole lengths from
Cascade Pole Company, Tacoma, Wash. 2. Average volume per pole,
Scribner Revised Log Scale Tables. 3. Current average rate indicated
$36.65.
HES-004-0193-0217
HES-004-0193-0217
IIJ71.1
700827
CORRESPONDENCE
MEEKER, VICTOR K
cc: Branch subject Branch chrony Yellow chrony Assistant Area Director
(Economic Development) August 27, 1970 Through: Area Forester
Supervisory Forester Field Trip--Hoquiam Field Station and Quinault
Reservation Purpose: To confer with Forestry staff on appraisal
procedures and examine waste scale (pickup) amd stream treatment
operations on the Crane Creek and Taholah Logging Unit. The waste scale
examination was forthcoming from objections by Aloha Lumber Corporation
to the volumes scaled and the manner and criteria of the scaling rules
applied. The mornings of August 20 and 21 were spent at the Hoquiam
Forestry Office reviewing the appraisals of current Forest Officer's
Reports and the revaluation of the Middle Creek (Makah) timber contract.
The change to standard use of the U. S. Forest Service cost guides and
appraisal techniques continues to give us problems of procedure. These
were expected and are being resolved. We are hopeful that time can be
found to formalize instructions and guides for ready and standard
reference. While using U. S. Forest Service material, we wish to
reserve freedom to use information and techniques from our own experi-
ence and knowledge. Waste Scale Operations The afternoon of the 20th
was spent on the Crane Creek Unit in company of Foresters Paakkonen and
Guthrie. The area examined for waste scaling is considered to be
relatively cleanly logged. The species was mainly hemlock with
scattered cedar with the result that the heavy cedar snag slash was not
present. On this area the routine search disclosed a uniform scattering
of waste material which was predominately loss well within
merchantability standards, even allowing to 10-inch top diameter. The
afternoon of the 21st was spent on the Taholah Unit in company of
Foresters Paakkonen and Carl Johnson. Two areas were examined, a stand
where cedar predominated and a stand where hemlock predominated. Waste
material in the cedar stand was in broken small logs, small logs, and
portions of very large cedar in the butt section of tree or log. The
question of scale to a 6- or 10-inch top had little effect in this area.
The hemlock stand was of relatively small trees with much of the waste
dependent on going to a 6-inch top diameter but there was also lots of
waste from improper bucking to utilize the small trees.
The waste scaler job requires that he look at the material left on
the ground in relation to the circumstances that prevailed in the uncut
stand. He must reasonably allow for the problems faced by the logger in
harvesting the timber. In observing the actions of the waste scalers
and discussion with them, I am of the opinion they are using such
reason. The expense of the waste scale operation does not allow the
scaler to meticulously search the cutover block. The examination of the
areas by the "waste scaler" is methodical to the degree that a search
pattern is used and insights gained from experience are applied. Four
Foresters under the supervision of Forester Paakkonen, I understand, are
assigned to the contract administration of the Crane Creek and Taholah
Units. At any one time, many logging sides may be operating to produce
approximately the 150 million board feet annually. This is indeed a
thin administrative force if the Foresters are to be allowed time to
administer the timber contract before and during the logging act.
The particular hemlock area examined on the Taholah Unit is perhaps
the core of the objections raised by Aloha Lumber Corporation. The
material left on the ground is very excessive. If this class of
merchantable material is to be left by the purchaser, decision may be
necessary to rule out cutting such areas. Forester Paakkonen was of the
opinion that the purchaser should be required to remove the waste
material in addition to payment of the waste scale and I concur in this.
The intent of the timber contract is that the purchaser cut and remove
material and does not have the option to merely pay and leave the mess
on the ground.
I was informed that the purchasers have at times requested to be
shown the identified waste scale and this has been done. At the same
time, we do not feel obligated to research the whole area again to
identify to the purchaser each piece waste scaled. The purchaser has
pointed out hat they may pay for material twice, waste scale and salvage
operations. We should not require such payments providing the
purchaser's removal allows identification of the material as waste
scale. This means that the waste material shall be taken out as the
piece waste scaled separately from other salvage material.
In conclusion, it is my opinion the waste scaling is being carried
out properly and that Aloha's objections become limited to the
controversy as to whether the waste scale has the criteria of trees 14
inches dbh and material of 10-inch top diameter, or, the criteria listed
in the rules of the Grays Harbor Log Scaling and Grading Bureau. Our
official policy has been that the latter criteria apply. Stream
Treatment Operations
Sites were examined where logging was carried out across streams and
when cutting blocks used the streams for boundaries. The stream
treatment in both were by use of tractors in the stream beds to clear
the debris. The operations are apparently acceptable as long as carried
out in dry periods. The result appears to be the immergence of a
natural appearing stream within a year or two of the cleaning. In much
of the stream lenght so treated, I would judge the resulting stream will
be an improvement over the heavily overgrown and debris-laden stream
which was present before the logging. At this point the stream
clearings should receive the examination of other persons, particularly
fisheries people; and if correlations to the process are needed, they
should be voiced now rather than in after-the-fact criticism. There are
no doubt streams where tractor clearing should not be used and other
acceptable processes should be evolved.
cc: Supt., Western Washington Agency Hoquiam Field Station, Attn.
Forestry VKMeeker:du 8/27/70
HES-004-0218-0220
HES-004-0218-0220
II70.1
ASST AREA DIR ; ECONOMIC DVLP AREA FORESTER
690804
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
Trend of Economic Conditions
Relative to Revision of Stumpage Rates
Taholah Logging Unit, Quinault Reservation
The Taholah Logging Unit timber contract provides in Section 11 for
revision of stumpage rates when, in the opinion of the Approving
Officer, they do not properly reflect the true marker value of the
stumpage. Stumpage rates ware revised in recent time for effective
dates of January 1, 1966, January 1, 1968, and January 1, 1969. The
January 1, 1966, rates are the subject of an appeal to the Courts by the
Purchaser. That portion of the stumpage rates due to the January 1,
1966, rate increase has been withheld from payment to the timber owners
since January 1, 1966. Withheld funds to date are near one million
dollars.
Since the last revision which resulted in rates made effective
January 1, 1969, log prices and product prices have increased to an
extent that current revision of stumpage rates are warranted. Upon the
determination that there has been significant change, the indicated
stumpage rates have been developed from the base of Industrial Forestry
Association (IFA) Prices U.S. Forest Service West Side logging cost
data, and other established cost data sources.
Information and exhibits provided herein examine the trend of
economic conditions in the West Coast logging and lumbering industry and
support the revision of stumpage rates action.
The average log values by grade for the combined Puget Sound - Grays
- Willapa Harbor Districts for the second quarter of 1968 and first
quarter of 1969, as reported by IFA are tabulated below to show the
changes in log market prices. These grade prices are used to calculate
revised stumpage rates and the prices listed include the effect of the
volume and value of mixed grade and ungraded log sales.
2nd Qtr.........1st Qtr.
Species ................... 1968 .......... 1969 ........ Change
Cedar
Spruce
Douglas-fir
White fir
White pine......
Hemlock ......
Exhibit A-1 lists the average log values for the combined Puget Sound
- Grays-Willapa Harbors Districts for the first quarter of 1969 and
develops comparable values using 1967 and 1968 percentage log grade
recovery from the Taholah Logging Unit. The date developed in Exhibit
A-1 is carried into Exhibit A-2 and A-3 to compare log price and log
quality changes. A summation of the changes, since the last revision
which used 2nd quarter 1968 log prices, is tabulated below: TABLE
OMITTED SEE ORIGINAL
A summary of changes in log grade prices shown in Exhibit B is listed
below with a similar summary for the previous report revising rates for
effective date January 1, 1969.
2nd Qtr. 1967 ....... 2nd Qtr. 1968
Species ................... to 2nd Qtr. 1968 .... to 1st Qtr. 1969
Cedar ................................ $9.69 .............. $25.38
Spruce ............................... 20.06 ............... 28.77
Douglas-fir ........................... 3.66 ............... 19.03
White fir ............................ 17.16 ................ 9.14
White Pine ............................ 7.39 ............... 17.13
Hemlock .............................. 14.44 ............... 16.88
Exhibits C-1 and C-2 give transaction information of timber sales in
the Forks District, State of Washington forest and the Quinault District
of the Olympic National Forest. These Forests are in the close vicinity
of the Quinault Reservation and the forests most nearly comparable to
the Quinault forecast.
The export log market continues to be a major factor in therise of
average log prices, particularly of the whitewoods within the concern of
this report. The rise in log prices for cedar, however, is most evident
in domestic (water) sales. The percent of log sales reported as export
for the combined Puget Sound - Grays-Willapa Harbor Districts by the
Industrial Forestry Association are listed in Exhibit D and are
summarized below. Cedar and hemlock are the principle species of the
Quinault Reservation timber sales.
............................... Percent Export .................
Species .......... 2nd Qtr. 1967 2nd Qtr. 1968 1st Qtr. 1969
Cedar ....................... 32 ............ 21 ............ 18
Spruce ...................... 85 ............ 94 ............ 92
Douglas-fir ................. 40 ............ 64 ............ 44
White fir ................... 65 ............ 83 ............ 83
White pine .................. 79 ............ 85 ............ 88
Hemlock ..................... 68 ............ 88 ............ 89
Trends in product value particular to cedar and hemlock which have
occurred since the 1968 revision of stumpage rates are illustrated in
the following summary and the indicated exhibits and accompanying
graphs. The general lumber and plywood prices in the West Coast markets
have showed somewhat similar movement. The product value peaks reached
within the first quarter of 1969 have had substantial falloff after the
period of unprecedented rise. Product price direction (mid-May 1969) as
indicated by weekly trade summaries has been downward in what can be
termed a hesitant market. The prices for cedar and hemlock remain well
above those of a year ago. TABLE OMITTED SEE ORIGINAL
Examination of information from several sources indicates that the
cost of producing logs has continued to follow the previous patterns.
The overall effect of costs and productivity has been a moderate
increase in logging costs. Some cost items have increased, whereas
others have decreased. Indicative of this is stump to truck cost sample
statistics developed by the U.S. Forest Service for the last three
years' experience, 1965 - $17.32, 1966 - $17 28. 1967 - $17.40 and 1967
(revised March 1969) $17.57.
The Computation of indicated stumpage rates are shown in Exhibits K
and M. Source of base cost data of Exhibit K is footnoted with
reference to Exhibit M-2.
Adjustment of stumpage rates indicated for the Taholah Unit are:
.................................. Indicated ............. Present
Cedar
Spruce
Douglas-fir
White fir
White pine
Hemlock
Prepared By: Victor K. Meeker, Supv. Forester - August 4, 1969
IFA 1ST QUARTER 1969 ARITHMETIC AVERAGE LOG VALUES
PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS
INCLUDING MIXED GRADES & UNGRADED
TABLE OMITTED SEE ORIGINAL
LOG PRICE TREND
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-Grays-Willapa Harbor Prices.
QUALITY CHANGE
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-Grays-Willapa Harbor Prices
and arithmetic average of IFA Puget Sound-Grays-willapa Harbor Prices.
IFA Average Log Grade Prices--Combined Puget
Sound-Grays-Willapa Harbor-Columbia River Market
Areas--Weighted Average Excluding Mixed Grades
Extended by Taholah Logging Unit Grade Recovery
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
COMBINED REPORTINGS OF I.F.A. FOR PUGET
SOUND--GRAY-WILLAPA HARBOR DISTRICTS SHOWING TOTAL
VOLUME and PERCENT OF EXPORT
TABLE OMITTED SEE ORIGINAL Average Realization on West Coast Lumber
Shipments. (Total Ave Realization on lumber shipments from the
Douglas-fir Region of Western Washington, Western Oregon, and Northern
California.) TABLE OMITTED SEE ORIGINAL Source--January through April
1965 - Industrial Facts--WPA
May 1965 to date - Western Lumber Facts--WWPA Average Realization on
West Coast Lumber Shipments. (Total Ave Realization on lumber shipments
from the Douglas-fir Region of Western Washington, Western Oregon, and
Northern California.) TABLE OMITTED SEE ORIGINAL Source--January through
April 1965 - Industrial Facts--WPA
May 1965 to date - Western Lumber Facts--WWPA
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
(Based on Prices Published in Random Lengths)
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
Average net volume per acre ........................ 52.1 M.
Average gross volume per tree ........................ 1,150
Average gross volume per log ........................... 480
Total defect ........................................... 32%
Scale defect ........................................... 20%
Average slope .......................................... 30%
Trees per acre ..................................... over 60
1. Logging & Overhead
A. Direct /1/
1. Falling & Bucking ............................... $ 3.96
2. Yarding ........................................... 7.78
3. Loading ........................................... 1.88
Subtotal ........................................ $13.62
B. Overhead /1/
1. Overhead ........................................ $ 3.04
2. Depreciation ...................................... 2.10
Subtotal ........................................ $ 5.14
C. Contractual
1. Fire protection /1/ ............................. $ .21
2. Other costs /2/ .................................... .85
Subtotal ........................................ $ 1.06
TOTAL A, B, & C ........................................... $19.82 2
Transportation
A. Transportation /3/ .............................. $13.91
B. Road maintenance .................................. 2.16
C. Unloading /1/ ...................................... .45
Total ................................................. $16.52
3. Road Development /2/ .............................. 1.85
4. Sorting & reload /2/ .............................. 3.06
TOTAL ........................................... $41.25
Refer to Exhibit M-2 for base cost data.
.................... Volume /1/
............. A ........ 141,260 ...... $407,568 ........ $ 2.89
............. B ......... 77,158 ....... 241,251 .......... 3.13
............. C ......... 55,182 ....... 173,961 .......... 3.15
Arithmetic Average .................................. $ 3.06
Weighted Average .................................... $ 3.01
.......... A ...... $ 1.45 ..... $ 1.18 ..... $ .26 ..... $ 2.89
.......... B ........ 1.47 ....... 1.25 ........ .41 ....... 3.13
.......... C ........ 1.25 ........ .63 ....... 1.27 ....... 3.15
Average ...... $ 1.39 ..... $ 1.02 ..... $ .65 ..... $ 3.06
Indicated Stumpage Rates by Log Grade. Taholah Logging Unit and
Weighted Average Rate by Species Determined from 1st Quarter 1969 /1/
Log Prices and 1967 Cost Data (Revised) TABLE OMITTED SEE ORIGINAL
and ungraded volume.
Stumpage Rate = Log Price - Logging Cost/1.op
Handbook of Timber Appraisal and Cost Guide
Branch of Forestry Cost Analysis
Commission Formula - adjusted
Average gross volume per tree ........................ 1,150
Average gross volume per log ........................... 480
Total defect ........................................... 32%
Scaling defect ......................................... 20%
Average slope .......................................... 30%
Trees per acre ..................................... over 60 1.
Falling & Bucking
Merchantable trees
Size adjustment (415.22b) ...................... 789
Slope adjustment (415.22c).................... +.002
........................................................ 791
Percent net recovery ................................... 68% Net
adjustment .791 divided by .68 ..................... 1.163
Regional average ................................... $3.17
Adjustment $3.17 x 1.163 ........................... $3.69
Unmerchantable trees
Regional cost per tree ..................... $1.27
Adjustment factor (415.22e) ................. 1.222
Adjusted cost per tree ..................... $1.55 Cost per M = $1.55
x 13041 / 75,441 ..................... .27
Total Falling & Bucking ............................ $3.96 2.
Yarding (portable tower 90%, spar tree 10%) TABLE OMITTED SEE ORIGINAL
Volume per acre (net ........................ 52.1 M.
Net volume per log (ROTC).................. .388 Logs per acre 52.1
divided by .388 (rounded) .140 Factor @ 250' external (415.37k)
............. .139 Factor @ 938' external 250' x .139 / 938
................. .037
Total gross factor .................................... .933 Regional
average (Wtd.) $6.27
Adjustment $6.27 x 1.166 ............................. $7.31
Move in and set up (Wtd.) .............................. .42
Stream cleanup ......................................... .05
Total yarding ........................................ $7.78 3.
Loading Adjustment by yarding net factor
Regional average $1.61
Adjustment $1.61 x 1.166 ............................. $1.88 4.
Logging Depreciation Adjustment by yarding net factor Regional average
(Wtd.) $1.80
Adjustment $1.80 x 1.166 ............................. $2.10 5.
Transportation
Truck haul
25 mile Class A @ .155 per mile ...................... $3.88
15 mile Class B @ .220 per mile ....................... 3.30
8 mile Class C @ .260 per mile ....................... 2.08
Base rate ............................................. 1.82
11 logs @ .065 per log ................................. .72
Gross transportation cost ........................... $11.80
20% defect, 12% P & R ................................. 1.116
Total ....................................................... $13.17
HES-004-0221-0247
HES-004-0221-0247
IIJ69.2
690307
CORRESPONDENCE
RAMERO, HENRY J PAAKKONEN, ONNIE E CLARK, DON W
This report is to revaluate stumpage rates for cedar salvage material
which is not logged during the regular logging operation in accordance
to Section 4, Modification of Contract, Taholah Logging Unit, Contract
No. I-101-Ind-1766. In November 1955 the Bureau of Indian Affairs in
Hoquiam, Washington saw the potentials of salvaging the cedar material
for shake boards, hand-split tapers, shingles, fence posts, and barn
shakes. An appraisal was made and a modification to the Taholah Unit
Logging Contract was prepared and approved. The stumpage value based on
the appraisal and approved was 1.7 cents per board on the basis of 10
cents per board selling price at that time.
Now, after 14 years, the stumpage has remained at this level, while
cedar sawlogs stumpage has increased greatly. The mills surrounding the
Quinault Indian Reservation today are paying prices for cedar shake
boards which are much higher than ther were at the time of the
modification of the contract. When cedar shake board production began
on the Taholah Unit, the boards were selling from 9 cents to 11 cents
per board. Now they are selling from 14 cents to 17.5 cents per board,
delivered at the mill. Shake blocks sold by the cord are selling from
$80.00 to $110.00. A cord of blocks produces approximately 600 boards.
The following information represents current market prices paid at
several of the mills in the vicinity of the Quinault Indian Reservation:
TABLE OMITTED SEE ORIGINAL
Current prices show that the average price per board is now 16 cents
as compared to 10 cents 14 years ago. This is an increase of 60 percent
Information received from the Washington State Department of Natural
Resources, Montesano District, with salvage sales in Grays Harbor
County, quotes 3 cents stumpage for shake boards. Their Forks District
reports 5 cents to be the rate for current sales. (See Exhibit A.)
Private land owners quote 3 and 4 cents per board the rate being charged
for stumpage of operators on their lands. Operators who desire to
obtain salvage material on the reservation offer to pay 3 cents per
shake board as stumpage. U.S.F.S., Quinault Lake Ranger District, quote
$18.00 per thousand board feet as a minimum charge for salvage cedar.
When converted at the rate of 500 boards per thousand and 300 boards per
cord, or 600 boards per thousand board measure, the rate per board
becomes 3 cents--Soleduck Ranger District U.S.F.S. figures.
It is impossible to obtain accurate and useable production costs from
operators producing shake boards. The operators are so widely varied
and no attempt is made to keep records that no correlations can be made
between operations to derive any averages. We must, therefore, rely
entirely upon a comparison approach. Since other government and private
land owners are obtaining 3 and 4 cents per board for shake boards,
stumpage, and operators are willing to pay it, it is recommended that
the price be increased from 1.7 cents to 3 cents per board. Date:
2/18/69
Date: 2/18/69
Date: 3/7/69
Washington State Department of Natural Resources
$30.00/M (Gross Minimum)
2 Cords/M bd. ft.
600 bd ft./Cord
300 Boards/CORD
600 Boards/MBM
$30 00 & 600 = .05/board stumpage lump sum sales
One sale in 1967 and 4 sales in 1968 show an estimated average of 4
cents per board stumpage when converted from estimated log price/MBM to
shake boards--lump sum sales.
HES-004-0248-0254
HES-004-0248-0254
IIJ69.1
681120
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
Trend of Economic Condictions
Relative to Revision of Stumpage Rates
Taholah Logging Unit, Quinsault Reservation
The Taholah Logging Unit timber contract provides in Section 11 for
revision of stumpage rates when, in the opinion of the Approving
Officer, they do not properly reflect the true market value of the
stumpage. Stumpage rates were revised in recent time for effective
dates of January 1, 1966, and January 1, 1968. The January 1, 1966
rates are the subject of an appeal to the Courts by the Purchaser. That
portion of the stumpage rates due to the January 1, 1966 rate increase
has been withheld from payment to the timber owners since January 1,
1966. Withheld funds to August 31, 1968, amount to $762,000.
Since the last revision which resulted in rates made effective
January 1, 1968, log prices and product prices have continued their
upward course and to an extent that current revision of stumpage rates
are warranted. Upon the determination that there has been significant
change, the indicated stumpage rates have been developed from the base
of Industrial Forestry Association (IFA) log prices, U.S. Forest Service
West Side logging cost data, and other established cost data sources.
The information and exhibits provided herein examine the trend of
economic conditions in the West Coast logging and lumbering industry and
support the revision of stumpage rates action.
The average log values by grade for the combined Puget Sound -
Grays-Willapa Harbor Districts for the second quarters of 1967 and 1968,
as reported by IFA are tabulated below to show the changes in log market
prices. /#/
....................... 2nd Qtr. .......2nd Qtr.
Species ................... 1967 .......... 1968 ........ Change
Cedar
Spruce
Douglas-fir
White fir
White pine
Hemlock
Exhibit A-1 lists the average log values for the combined Puget Sound
- Grays-Willapa Harbors Districts for the second quarter of 1968 and
develops comparable values using 1966 and 1967 percentage log grade
recovery from the Taholah Logging Unit. The data developed in Exhibit
A-1 is carried into Exhibit A-2 and A-3 to compare log price and log
quality changes. A summation of the changes, since the last revision
which used 2nd quarter 1967 log prices, is tabulated below: TABLE
OMITTED SEE ORIGINAL
Exhibit B reveals the change between the 2nd quarter of 1967 and the
2nd quarter of 1968 in the average prices paid for logs in the combined
Puget Sound - Grays-Willapa Harbor - Columbia River Market Districts.
Exhibit C reveals the comparable price change which has occurred in the
Grays-Willapa Harbor District. A summary of Exhibits B and C Follows:
TABLE OMITTED SEE ORIGINAL
The export log market has reached new heights of volume and log
prices, and continues to be a major factor in the rise of average log
prices. The percent of log sales report as expot for the combined Puget
Sound - Grays-Willapa Harbor Districts by the Industrial Forestry
Association are listed in Exhibit D and are summarized below. Cedar and
Hemlock are the principle species of the Taholah Logging Unit.
Species ...........3rd Qtr. 1965 2nd Qtr. 1967 2nd Qtr. 1968
Cedar ........................ 7 ............ 32 ............ 21
Spruce ...................... 83 ............ 85 ............ 94
Douglas-fir.................. 19 ............ 40 ............ 64
White fir ................... 33 ............ 65 ............ 83
White pine .................. 42 ............ 79 ............ 85
Hemlock ..................... 53 ............ 68 ............ 88
Log grade prices used in the stumpage rate computations of Exhibit M
are the IFA combined Puget Sound - Grays-Willapa Harbor reportings of
the 2nd quarter 1968. The prices include the effect of the volume and
value of mixed grade and ungraded log sales.
Trends in product value particular to cedar and hemlock which have
occurred since the 1967 review of economic conditions are illustrated in
the following summarym, and the indicated exhibits and accompanying
graphs. The general lumber and plywood prices in the West Coast markets
have similarly moved up strongly. TABLE OMITTED SEE ORIGINAL
Examination of information from several sources indicates that the
cost of producing logs has continued to follow the previous patterns.
The overall effect of costs and productivity has been a moderate
increase in logging costs. Some cost items have increased, whereas
others have decreased. Indicative of this is stump to truck cost sample
statistics developed by the U.S. Forest Service for the last three
years' experience, 1965 - $17.32, 1966 - $17.28, and 1967 - $17 40.
State of Washington information related to labor productivity is
shown in Exhibit N. The Bureau of Labor Statistics index of output per
manhour in the private economy rose 1.4 percent in 1967. Gain in the
first half of 1968 is reported at 2.4 percent.
The computation of indicated stumpage rates are shown in Exhibits K
and M. Source of base cost data of Exhibit K is footnoted with
reference to Exhibit M-2. Adjustment of stumpage rates indicated for
the Taholah Unit are:
...................... Indicated ....... Present
Species ............. New Rate .......... Rate ...... Increase
Cedar
Spruce
Douglas-fir
White fir
White pine
Hemlock
Prepared by: Victor K. Meeker, Supv. Forester - Nov. 20, 1968
TABLE OMITTED SEE ORIGINAL
LOC PRICE TREND
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-Grays-Willapa Harbor Prices
QUALITY CHANGE
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-Grays Willapa Harbor Prices
arithmetic average of IFA Puget Sound-Grays-Willapa Harbor Prices
IFA Average Log Grade Prices--Combined Puget
Sound-Grays-Willapa Harbor-Columbia River Market
Areas--Weighted Average Excluding Mixed Grades
Extended by Taholah Logging Unit Grade Recovery
TABLE OMITTED SEE ORIGINAL
IFA Average Log Grade Prices - Grays-Willapa Harbor
Market Area Weighted Average Excluding Mixed Grades
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
Average Realization on West CoastLumber Shipments. (Total Avg
Realization on lumber shipments from the Douglas-fir Region of Western
Washington, Western Oregon, and Northern California.) TABLE OMITTED SEE
ORIGINAL
Source--January 1962 through April 1965 - Industrial Facts--WPA May
1965 to date - Western Lumber Facts--WWPA MAP OMITTED SEE ORIGINAL
(08-13-61.06) Cedar Bevel Siding Clear
TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
(08-13-66.06) Cedar Shingles No. 1
TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
Index Price per MBM (Based on Lumber Prices Reported in Random
Lengths)
TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
WESTERN REDCEDAR SHINGLE INDEX PRICES
(Based on Prices Published in Random Lengths)
TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
Index Price per MBM (Based on Lumber Prices Reported in Random
Lengths)
TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
Average net volume per acre ............................ 52.6M.
Average gross volume per tree ........................ 1,050
Average gross volume per log ........................... 460
Total defect ........................................... 30%
Scale defect ........................................... 18%
Average slope .......................................... 25%
Tree per acre ...................................... over 60
1. Logging & Overhead
A. Direct /1/
1. Falling & Bucking ................................ $3.93
2. Yarding ........................................... 7.81
3. Loading ........................................... 1.85
Subtotal ............................................ $13.59
B. Overhead /1/
1. Overhead ......................................... $3.12
2. Depreciation ...................................... 2.17
Subtotal ............................................. $5.29
C. Contractual
1. Fire protection /1/ ............................... $.23
2. Other costs /2/ .................................... .85
Subtotal ............................................. $1.08
TOTAL A, B, & C ..................................... $19.96
2. Transportation
A. Transportation .............................. $12.85 /3/
B. Road maintenance .............................. 2.53 /1/
C. Unloading ...................................... .39 /1/
Total ............................................... $15.77
3. Road Development /2/ .............................. 1.76
4. Sorting & Reload /2/ .............................. 2.68
TOTAL ............................................... $40.17
Refer to Exhibit M-2 for base cost data.
Arithmetic Average ......................................... 2.68#
Weighted Average ............................................ 2.66
1.76 ........... .17 .......... 1.00 .......... 2.93
1.36 .......... 1.02 ........... .24 .......... 2.62
Avg. 1.48 ........... .67 ........... .53 .......... 2.68
(1) Based on total production, not on footage handled in yard.
Indicated Stumpage Rates by Log Grade, Taholah Logging Unit, and
Weighted Average Rate by Species Determined from 2nd Quarter (1968 /1/
Log Prices and 1967 Cost Data. TABLE OMITTED SEE ORIGINAL TABLE OMITTED
SEE ORIGINAL
Date Source - Logging Costs
Handbook of Timber Appraisal and Cost Guide
Branch of Forestry Cost Analysts
Commission Formula - adjusted
EMPLOYMENT, WAGES AND PRODUCTION FOR THE LOGGING INDUSTRY
TABLE OMITTED SEE ORIGINAL
(1) Source - State of Washington, Employment Security
Department. See attached copies of letters and related data.
(2) Wages divided by employment.
(3) Source - Production Prices, Employment and Trade in
Pacific Northwest Forest Industries,
Pacific N W. Forest and Range Experiment Station (Page 13).
(4) Production (MMBM) divided by employment.
(5) Wages divided by production (MMBM).
(6) Per telephone conversation with John W. Austin, N.W.
Forest & Range Experiment Station 9/11/68.
TAHOLAH LOGGING UNIT LOGGING COST COMPUTATION
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
HES-004-0255-0285
HES-004-0255-0285
IIJ68.2
680326
CORRESPONDENCE
MEEKER, VICTOR K
TO: To the Files FROM: Supervisory Forester SUBJECT: Taholah Logging
Unit
The stumpage rates concerned with the Taholah Logging Unit revenues
for the period January 1, 1966 through December 31, 1967 are listed in
the table below. They are: (1) rates made effective December 1, 1964,
(2) rates established by the Commissioner to be effective January 1,
1966, and (3) rates in accord with the Secretary's decision of March 10,
1967.
Over the period January 1, 1966 through December 31, 1967, timber
monies were distributed to the Indian owners by rate (1); monies were
collected from the purchaser at rate (2). The difference between
distribution and collection has been held in deposit awaiting the
outcome of litigation initiated by the purchaser, Aloha Lumber
Corporation, against the decision of the Secretary. Providing the
Secretary's rates are upheld by the courts, the actual rate for the
period will be rate (3). /#/ TABLE OMITTED SEE ORIGINAL
Previous to the Secretary's decision of March 10, 1967, stumpage
rates were determined with use of 3-year period grade recovery. The
following table compares rates that would occur had the 3-year grade
concept continued. The rates established for effective date of January
1, 1966 which used a 3-year grade recovery period (1962-63-64) are
compared with rates that would have occurred for January 1, 1968, using
a 3-year grade period (1965-66-67) and further, to the rates of January
and February 1968 which use the respective monthly grade recovery:
grade recovery (1966-67). Comparison of rates by 2-year, 1-year, and
monthly grade recovery in Exhibit 1. TABLE OMITTED SEE ORIGINAL
The Secretary's decision did not become a factor in collections until
March 1967 and the subsequent court action further delayed decision.
The collections for the period 1966-67 thus used the rate established by
the Commissioner to be effective January 1, 1966.
For the first year (1966) the two rate structures resulted in
approximately the same timber revenue. In 1967, however, the values
accruing diverged so that at 1967 year end, the value difference between
the Commissioner's (collections) rate and the Secretary's rate amounted
to $130,000; collections exceeding by that amount. The following table
describes this situation:
SPECIES ................ COMMISSIONER'S RATE SECRETARY'S RATE /#/
WHITE PINE ................... $ 33,084.30 ....... $ 27,040.90
PACIFIC SILVER FIR ............... 81,983.66 ........... 80,324.47
WESTERN RED CEDAR ............. 1,394,220.60 ........ 1,167,874.91
Sitka Spruce .................... 209,473.10 .......... 240,508.19
Douglas-fir ....................... 6,306.12 ............ 5,447.79
Western Hemlock ................. 645,335.04 .......... 719,855.87
.............................. $2,370,402.82 ....... $2.241,052.13
Total Amount Withheld ................ $ 620,085.39 Over
Collection Indicated ............ $ 129,350.69 Total Amount
Distributed ............. $1,750,317.43
ADDED NOTES:
Volume Cut 1966 ....... 67,783,290
Volume Cut 1967 ....... 69,465,730
TOTAL ................ 137,249,020 bd. ft.
Value Cut 1966-67: Based on separate year rates = $2,240,877.32
Compared to 2-years = $2,241,052.13
Based on separate months = $2,237,773,81
Withheld January 1968: $40,938.02
February 1968: $38.750.24
$79,688.26
Crane Creek Rates - Effective 1/1/68 WP 14.75 PSF 22.50 WRC 21.29 SS
45.92 DF 49.67 WH 22.32 Taholah - Species Mix %
1966 .. 1967
WP 1.33 .. 1.90 PSF 1.95 .. 5.12 WRC 56.13 . 69.42 SS 5.23 .. 2.84 DF
.21 ... .05 WH 35.15 . 20.67
HES-004-0286-0288
HES-004-0286-0288
IIJ68.1
FILES
671205
CORRESPONDENCE
DIRR, DONALD H
TO: Files December 5, 1967 FROM: Auditor (Industrial Costs) SUBJECT:
Exhibit A, Aloha Lumber Corporation Stumpage Consultation, November 21,
1967
By letter dated November 9, 1967, (copy attached) the General
Manager, Longview Branch, Pacific Lumber & Shipping Company, advised the
Aloha Lumber Corporation that the cost of handling, sorting, and
reloading logs for export varies from $6.55 per MBM to $7.90 per MBM.
These costs are based on the total volume into the company's yards at
Longview. The letter also states that costs based on the volume
exported ranges from $7.50 per MBM to $9 per MBM.
On November 30, 1967, I went to Longview, Washington, to see the
General Manager, Longview Branch to the Pacific Lumber & Shipping
Company relative to the costs stated in his letter to November 9, 1967.
This company handles 4 to 5 million feet to logs each month through its
two sorting yards in Longview, Washington. About 90 percent of all logs
into the yard are exported. About 90 percent of all logs into the yard
are exported. The 10 percent rejected for export are reloaded in trucks
and sold on the domestic market.
My first questions were to inquire as to the availability of
statements prepared by a certified public accountant relative to the
operation of the company's two sorting yards in Longview. The General
Manager says that no statements have been prepared for the sorting yards
because they do not keep cost records. All records are maintained in
the company's office in Seattle, Washington. He believes that detailed
cost records for the sorting yards are not maintained in Seattle since
he has not seen cost statements for the yards. I then inquired as to
the source of costs included in the letter of November 9, 1967. The
General Manager said that these costs are based on cost studies made at
irregular intervals. These studies are for a month's operation with the
last study made in the spring of 1967. He stated that he does not know
where these studies are. They may have been destroyed or sent to the
Seattle office. He has no data supporting the costs given in his letter
of November 9, 1967.
The General Manager was asked what type of operations are included in
the costs reported in his letter. He replied that these costs cover the
following operations. His estimated cost for each operation is also
shown. TABLE OMITTED SEE ORIGINAL
logs from truck onto ship. Estimated cost from one yard close to dock
is $1.50 and for the other yard is $3.
It is noted that the above costs include two scaling costs. Since a
scaling charge is usually associated with logs regardless as to whether
they are for export or domestic use, it is my opinion that only one
scaling charge may be included in additional costs for handling,
sorting, and reloading logs for export.
All costs of the yard, except interest on borrowed money, are
included in the costs reported by the General Manager. On inquiry, I
was advised that the salary of the following persons is included in the
costs.
General Manager
3 - Office employees
9 - Yard workers
3 - Field personnel
The three persons shown as field personnel buy logs and act as field
supervisors. These duties are not related to the handling of logs in
the yards and in my opinion, the salaries should not be included in
additional costs for the handling, sorting, and reload of logs for
export.
Since the costs shown in the letter of November 9, 1967, are not
supported by cost records and include an extra scaling charge as well as
salaries for three persons not related to the handling, sorting, and
reloading of logs for export, it is my opinion that the letter, shown as
Exhibit A in the Aloha Lumber Corporation Stumpage Consultation November
21, 1967, does not present proof that an extra charge from $6.55 to $9
per MBM should be allowed as an extra cost in stumpage appraisals for
logs exported.
Enclosure
DHDirr:du - 12-5-67
HES-004-0289-0291
HES-004-0289-0291
IIJ67.2
FILES
670929
CORRESPONDENCE
HADLEY, KENNETH
cc: Branch subject Branch chrony Yellow chrony AIRMAIL SEP. 29, 1967
Commissioner of Indian Affairs Washington, D. C. 20242 Attention:
Branch of Forestry Sir:
We are enclosing a report pertaining to the trend of economic
conditons as it relates to the Taholah Logging Unit timber contract. In
our judgement conditions in the West Coast logging and lumbering
industry have changed to such an extent that stumpage adjustments are
warranted.
We recommend you notify the Purchaser and Indian in General Council
of intention to revise the stumpage rates unoer Contract No.
I-101-Ind-1766 in accordance with the trend of economic conditions in
the West Coast logging and lumbering industry. We suggest such notice
establish a 30-day period Juring which the Purchacer and Indians may
arrange through the Superintendent for consultation with the Approving
officer's representative concerning any factors which may be pertinent
to the establishment of new stumpage rates.
In accordance with past procedures upon conclusion of the
conaultation, a report containing our specific recommendations will be
submitted to your office.
Indicated stumpage rates are shown by species and by log grade. We
are hopeful that a monthly stumpage rate for each species, derived from
actual log grade recovery for each month, may be used as requested in
our letters of April 24 and June 14, 1967.
Enclosures (2)
cc:
Supt., Western Washington Agency w/enclosure
Haquiam Subagency w/enclosure
Mr. Richard Neely, Office of Reg. Sol. w/enclosure
VKMeeker:du - 9-26-67
RELATIVE to REVISION OF STUMPAGE RATES
Secton 11 of the Taholah Logging Unit Timber Contract, Quinault
Reservation, provides for adjustment of stumpage rates when in the
opinion of the Approving Officer they do not properly reflect the true
market value of the stumpage. Stumpage rates were adjusted most
recently for effective date January 1, 1967, and are the subject of an
appeal to the courts by the Purchaser. Since them market conditions
have changed to the extent that current adjustment of stumpage rates are
warranted. The information and exhibits provided herein examine the
trend of economic conditions in the West Coast forest products
industries and support the stumpage adjustment action.
The average log values by grade for the combined Puget
Sound-Grays-Willapa Harbor Districts for the third quarter of 1965 and
the second quarter of 1967 reveal the following changes in log market
prices:
Species ................... 1965 .......... 1967 ........ Change
Cedar
Spruce
Douglas-fir
White fir
White pine
Hemlock
Exhibits A-1, A-2 and A-3 relate to the average computed log values
of the timber covered by this contract based on combined 2nd quarter
1967 Puget Sound-Grays-Willapa Harbor District prices and percentage log
grade recovery from the Taholah Unit during Calendar Year 1966. A
summation of the changes since the previous adjustment based on 3rd
quarter 1965 conditions follows: TABLE OMITTED SEE ORIGINAL
Exhibit B reveals the change between the 3rd quarter of 1965 and the 2nd
quarter of 1967 in the average prices paid for logs in the combined
Puget Sound-Grays-Willapa Harbor-Columbia River Market Districts.
Exhibit C reveals the comparable price change which has occurred in the
Grays-Willapa Harbor District. A summary of these changes follows:
Increase Between 3rd Qtr. 1965 and 2nd Qtr. 1967 TABLE OMITTED SEE
ORIGINAL The export log market continues to influence log market prices
through- out the West Coast forest product industry. The percentages of
log sales reported as export for the Grays-Willapa Harbor and Puget
Sound Districts by I.F.A. show large increases between the 3rd quarter
1965 and the 2nd quarter 1967. The increased export activity is shown
in Exhibit D and is summarized below. Cedar and hemlock are the
principle species on the Taholah Unit. TABLE OMITTED SEE ORIGINAL Prior
to the adjustments of stumpage rates put into effect January 1, 1966,
changes in the ratios of stumpage to average log prices were made
effective December 1, 1964. The earlier adjustments were based on
studies reflecting conditions existing during the second quarter of
1964. Some additional trends of economic conditions in the West Coast
forest products industries which have occurred since the 1966 adjust-
ments are shown below: TABLE OMITTED SEE ORIGINAL Examination of
production and employment to the logging industry, Grays Harbor Area,
indicates the cost of producing logs has been relatively stable over the
last few years. Labor cost increases, a major part of logging cost
increases, have evidently been offset by increase in labor productivity.
A similar indication can be drawn from the West Side Logging Cost
Guides developed by the U. S. Forest Service and the stump to truck cost
sample statistics. Mean cost truck to stump for the years 1962 through
1966 experience are:
1962 - $14.80
1963 - $15.70
1964 - $15.75
1965 - $17.32 (15.57)
1966 - $17.28 (15.53)
The 1965 and 1966 statistics include the costs of scaling, fire protec-
tion and unmerchantable timber felling not included in previous years'
data. These costs are approximately $1.75. Logging costs 1/ used in
arriving at the indicated stumpage rates were obtained from the U. S.
Forest Service Handbook of Timber Appraisal, Chapter 415. Since the
Handbook does not allow for the handling of logs for export, costs were
examined at three sorting yards to arrive at a cost factor. Logging
costs were then increased to the extent of reported export log sales.
Exhibit L shows the resulting sorting cost by log grade. Adjustment of
stumpage rates indicated for the Taholah Logging Unit are: TABLE
OMITTED SEE ORIGINAL (*) See Exhibit K
By log grade indicated stumpage rates are:
Indicated
Cedar .................................... 1 .............. $48.84
Spruce ................................. Se1 .............. $96.09
Douglas-fir ............................ P-1 .............. $84.64
White fir ................................ P .............. $42.00
White pine ............................... p .............. $37.70
Hemlock .................................. P .............. $43.39
IFA 2nd QUARTER 1967 ARITHMETIC AVERAGE LOG VALUES
PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-Grays-willapa Harbor Prices.
TAHOLAH UNIT
QUALITY CHANGE
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-Gray-Willapa Harbor Prices.
average of IFA Puget Sound-Grays-Willapa Harbor Prices.
Trend of Average Log Grade Prices in the Combined Puget
Sound-Grays-Willapa Harbor-Columbia River Market Areas
as Related to the Taholah Unit Stumpage-- Wtd.
Average Excluding Mixed Grades
TABLE OMITTED SEE ORIGINAL
Puget Sound-Grays Willapa Harbor--Columbia River
Market Areas as Related to the Taholah Unit
Stumpage--Wtd. Average Excluding Mixed Grades - Contd.
TABLE OMITTED SEE ORIGINAL
As indicated by current rate plus log grade price difference.
Harbor Market Area as Related to Taholah Unit
Stumpage--Arithmetical Ave. Exclud. Mixed Grades
TABLE OMITTED SEE ORIGINAL
as Related to Taholah Unit Stumpage--Arithmetical Ave.
Exclud Mixed Grades-Contd.
TABLE OMITTED SEE ORIGINAL
COMBINED REPORTINGS OF I.F.A. FOR PUGET SOUND--GRAYS--WILLAPA
HARBOR DISTRICTS SHOWING TOTAL VOLUME AND PERCENT OF EXPORT TABLE
OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
Average Realization on West Coast Lumber Shipments. (Toatl Ave.
realization on lumber shipments from the Douglas-fir Region of Western
Washington, Western Oregon, and Northern California.) TABLE OMITTED SEE
ORIGINAL Sourec--January 1962 throuth April 1965 - Industrial Facts--WPA
May 1965 to date - Western Lumber Facts--WWPA
WHOLESALE PRICE INDEXES - U.S.D.L. (08-13-61.06) Cedar Bevel
Siding Clear
(1957-59=100)
TABLE OMITTED SEE ORIGINAL
WHOLESALE PRICE INDEXES - U.S.D.L.
(08-13-66.06) Cedar Shingles No. 1
TABLE OMITTED SEE ORIGINAL
WESTERN REDCEDAR
Index Price per MBM (Based on Lumber Prices Reported in Random
Lengths)
TABLE OMITTED SEE ORIGINAL
WESTERN Redcedar SHINGLE INDEX PRICES
NO 2 LOG PER MBM LOG Scale (Based on Prices Published in Random
Lengths)
TABLE OMITTED SEE ORIGINAL
WESTERN HEMLOCK Index Price per MBM (Based on Lumber Prices
Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
TAHOLAH LOGGING UNIT
TABLE OMITTED SEE ORIGINAL
SUMMARY
Logging & Overhead Costs
A. Direct
1. Falling & bucking ................ $4.35 ............... $4.02
2. Yarding ........................... 6.82 ................ 8.40
3. Loading ........................... 1.48 ................ 1.85
Subtotal ............................ $12.65 .............. $14.27
B. Overhead
1. Overhead ......................... $2.94 ............... $2.94
2. Depreciation ...................... 1.78 ................ 2.23
Subtotal ............................. $4.72 ............... $5.17
C. Contractual
1. Fire protection .................. $ .23 ............... $ .23
2. Extra cost ......................... .87 ................. .78
Subtotal .......................... $1.01 ............... $1.01
TOTAL A, B, & C ..................... $18.38 .............. $20.45
1. Transportation .................. $13.48 .............. $12.0
2. Road maintenance .................. 1.80 ................ 1.80
3. Unloading .......................... .31 ................. .31
TOTAL ............................... $15.59 .............. $14.15
Road Developement .................... $1.80 ............... $1.80
GRAND TOTAL ......................... $35.77 .............. $36.40
EXHIBIT K-2
AVERAGE RELOAD AND SORTING COSTS
(Based on three yards and as related to percent of export) TABLE
OMITTED SEE ORIGINAL
Grays-Willapa Harbor and Puget Sound Markets.
Indicated Stumpage Rates by Log Grade, Taholah Logging Unit,
and Weighted Average Rate by Species Determined from 2nd
Quarter 1967 /1/ Log Prices and 1966 Cost Data. TABLE OMITTED SEE
ORIGINAL
Sorting Cost)
difference.
HES-004-0292-0318
HES-004-0292-0318
IIJ67.1
COMM OF INDIAN AFF ; BR OF FORESTRY
651221
CORRESPONDENCE
GALBRAITH, A W
Forestry
62-10-22 - 339.5
Taholah Stump.
cc: Supt., Western Washingon Agency w/enclosures (2) Hoquiam Subagency
w/enclsoure Branch subject Branch chrony Yellow chrony AIRMAIL DEC 21
1965 Commissioner of Indian Affairs Washington, D. C. 20242 Attention:
Branch of Forestry Sir: In accordance with instructions included in
your teletype dated October 29 and December 1, 1965, consultations
relating to the adjust- ments of stumpage rates under the Taholah
Logging Unit contract, Quinault Reservation, have been completed. We
recommend that effective January 1, 1966, stumpage rates under this
contract be adjusted upward as follows: TABLE OMITTED SEE ORIGINAL The
recommended rates shown above differ from those indicated in our report
"Trend of Economic Conditions" submitted to you by letter dated October
26, 1965, for the following principle reasons:
1. The earlier appraisal utilized second quarter 1965 Puget
Sound-Grays-Millaps Harbor District log market prices.
Since preparation of the earlier report, third quarter log
market prices have become available and have therefore been
used in arriving at the recommended stumpage rates.
2. The log market prices used in the earlier report were based on
the calculated weighted value of log market sales in the com-
bined Puget Sounds-Grays-Millapa Harbor Districts. Our present
recommended rates are based on an equal weighting of the two
markets.
In view of the significant difference between prices paid for
logs in the two markets, we believe on equal weighting proce-
dure should provide a more stable basis for measuring trends
in log market prices. It will be noted in examining the
composite log sales analysis as published by the Industrial
Forestry Association that during the second quarter of 1964
and the third quarter of 1965 the total volume of all reported
sales from the two markets was as follows:
TABLE OMITTED SEE ORIGINAL
It is readily apparent that when such a significant difference
in volume input occurs in one of the markets and considering
the significant differences between prices in the two markets
a decrease or increase in the computed average grade price
might occur even if prices in each of the markets remained
unchanged. For this reason we believe the arithmetic average
of prices per MEM paid by grade in the two markets is more
indicative of the trend in log prices.
3. In examining the composite log sales analysis as published by
the I.F.A., it will be noted that a significant volume is re-
ported as "mixed grade." As an example 4,890,185 board feet of
hemlock is reported in this category for Puget Sound third
quarter 1965 "Water Sales." It will be noted the mixed grade
is shown to consist of 13 percent SFP, 3 percent No. 1, 53 per-
cent No. 2, 30 percent No. 3. When these percentages are
added, they total up to 99 percent. In this case the missing
percent was assigned to
the grade showing the largest volume (53 percent No. 2) making it 54
percent No. 2. A straight proportioning procedure (to the nearest
percent) was used in accounting for all instances where the total
percentage of mixed grades did not equal 100 percent.
In the above instance the corrected percentages were used to assign
the volumes to the applicable grade (example SFP volume mixed grade =
.13 x 4,890,185 = 635, 720, etc., until the entire volume has been
assigned). The corrected percentages were then used to determine the
average price which the mixed grades would have shown had the game rates
been received as the straight grades indicated (.13 x $72.80 + .03 x
$74.38 + .54 x $58.80 + .30 x $45.57 = $57.09). The $.08 difference
($57.09 - $57.01) was then substracted from the average grade price for
straight grades and multiplied by the volume apportioned to that grade
from the mixed grade volume. These volumes and values were then
included with the straight grade volume and values to obtain an average
grade price for each of the markets involved.
It is felt the inclusion of the above described mixed grades into the
price determination has not appreciably changed the overall value of the
average log prices. However, it has expanded the volume used for a base
and is therefore recommended for use in these adjustments. Details of
the calculations are on file in the Portland Area Office. 4. As
indicated in our previous report, the past year's trends of cost in
producing logs in the West Coast logging industry are somewhat
contradictory. Information collected from west side loggers of Indian
timber shows a $1.68 per MBM increase in direct logging and overhead
cost between 1963 and 1964. The U.S.F.S. cost information indicates
that between 1963 and 1964 a decrease has occurred.
During the course of our consultations it has become apparent that
increased activity in the export marker has resulted in increased log
handling costs. The magnitude of this apparent cost increase cannot be
readily obtained from present cost data. However, we anticipate that
better cost information may be availavle prior to the next adjustment.
During the course of the consultations it was also apparent that
appreciable volumes of logs used by operators in their own manufacturing
plants do not appear in the log market quotations. The current
magnitude of this item is not readily measured; however, because the
entire volume of export market log sales does appear in the log market
quotations and the export prices are so much greater than "water"
prices, it is reasonable to assume that the average calculated log price
is somewhat disproportionately weighted by the export volumes involved.
In view of the above we recommend that until better cost and pricing
information does become available, 75 percent of the indicated not
increase in log values be credited to the stumpage owner. The remaining
25 percent should then be credited to the operator to compensate for
unresolved cost and pricing data as well as profit allowance.
We are enclosing for your information and review a copy of a prepared
report presented by the Evans Products officials during consultations
held in this office on December 6, 1965.
As indicated on page 2 of the report, the company has expressed
considerable concern as to the apparent grade doterioration experienced
during the first 10 months of 1965. We appreciate the company's concern
for this development; however, the significant decrease in the percent
of No. 1 and No. 2 cedar and the corresponding increase in No. 3 cedar
shown by graph on Exhibit A-1 and numerically in Exhibits B-1 through
B-4 appears to depart drastically from past experience shown in Exhibit
B of our report. The low grade recovery experienced by the company
during the past 10 months will be reflected in future adjustments when
the 3-year average grade recovery information is computed. In view of
the circumstances we cannot recommend departing from the established
procedure of using the running 3-year average.
Pages 4 through 6 of the company's report concern the use of the
combined markets is determining price trends related to this contract.
As previously indicated we have recommended that a straight arith-
metic average of the two markets better reflects log market price
trends. The company's recommendation that in future negotiations the
Grays Harbor published prices be used as an index is a subject repeat-
edly brought forward by the purchaser in past adjustments. We believe
that continued adherence to the two markets for an index price is far
superior to the one-market approach even though in this instance the
single market approach would indicate greater increases, since the last
adjustment, than does the two-market approach. Most of the remaining
presentation in the company's report is related to reported company cost
items. In general the item of cost is dis- cussed under 4 above and in
our judgment, appropriate allowance has been made until such time as the
cost picture becomes more clear. We are enclosing the original and one
copy of the computations of the recommended stumpage rates. We believe
it most desirable that the new rates be made effective January 1, 1966.
Sincerely yours,
(Sgd) A. W. Galbraith
A. W. Galbraith
Assistant Area Director
(Economic Development)
Enclosures (13) cc: Supt., Western Washington Agency w/enclosures (2)
Hoquiam Subagency w/enclosure KWHadley:du - 12-21-65
Summary of Trends Between 2nd Qtr. 1964 and 3rd Qtr. 1965
Related to the Taholah Unit
TABLE OMITTED SEE ORIGINAL
LOG PRICE CHANGES BETWEEN 2ND QTR. 1964 AND 3RD QTR. 1965 TABLE
OMITTED SEE ORIGINAL
Equal Wtd. Combined P.S.-G./W.H. Dist.
IFA IFA
Species ............ Grade 2nd Qtr. '64 3rd Qtr. '65 Increase
WRC .................... 1 ..... $75.24 ..... $86.61 ..... $11.37
Spruce ............... Se1 .... $104.66 .... $136.52 ..... $31.86
Douglas-fir .......... P-1 .... $113.04 .... $121.84 ...... $8.80
White fir .............. P ..... $66.46 ..... $77.54 ..... $11.08
White Pine ............. P ..... $67.50 ..... $73.01 ...... $5.51
Hemlock .............. P ..... $65.97 ..... $77.43 ..... $11.46
IFA 3RD QUARTER 1965 ARITHMETIC AVERAGE LOG VALUES
PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-grays-willapa
Harbor Prices.
TABLE OMITTED SEE ORIGINAL
arithmetic average of IFA Puget Sound-grays-willapa
Harbor Prices.
arithmetic average of IFA Puget Sound-grays-willapa Harbor
Prices
Computer Average Log Values Using Equal Wtd. Puget
Sound-Crays-Willapa Harbor District Prices 2nd
Qtr 1964
Log Value
Species ............ Grade .. % Grade # ...... Per M ...Extension
Cedar .................. 1 .......... 7 ..... $75.24 ...... $5.27
Spruce ............... Se1 .......... 7 .... $104.66 ...... $7.33
Douglas-fir .......... P-1 ......... 22 .... $113.04 ..... $24.87
White fir .............. P .......... 4 ..... $66.46 ...... $2.66
White pine ............. P ......... 10 ..... $67.50 ...... $6.75
Hemlock ................ P .......... 1 ..... $65.97 ....... $.66
TAHOLAH UNIT - LOG GRADE PERCENTAGES - BASED ON YEARLY VOLUMES
TABLE OMITTED SEE ORIGINAL
CORRECTION
The preceding document(s) has been refilmed
to assure legibility and its image appears
immediately hereafter.
TAHOLAH UNIT - LOG GRADE PERCENTAGES - BASED ON
YEARLY VOLUMES
TABLE OMITTED SEE ORIGINAL
HES-004-0319-0333
HES-004-0319-0333
IIJ65.2
COMM OF INDIAN AFF ; BR OF FORESTRY
651026
CORRESPONDENCE
HOLTZ, R D
Branch subject Branch chrony Yellow chrony KWHadley:du - 10-26-65
AIRMAIL Commissioner of Indian Affairs Washington, D. C. 20242
Attention: Branch of Forestry Sir:
We are enclosing a report pertaining to the trend of economic
conditions as it relates to the Taholah Logging Unit timber contract.
In our judgment condition in the West Coast logging and lumbering
industry have changed to such an extent that stumpage adjustments are
warranted.
We recommend you notify the Purchaser and Indians in General Council
of intention to revise the stumpage rates under Contract No.
I-101-Ind-1766 in accordance with the trend of economic conditions in
the West Coast logging and lumbering industry. We suggest and notice
establish a 30-day period during which the purchaser and Indians may
arrange through the Superintendent for consultation with the Approving
Officer's representative concerning any factors which may be pertinent
to the establishment of new stumpage rates.
In accordance with past procedures upon conclusion of the
consultation, a report contraining our specific recommendations will be
submitted to your office.
Enclosure cc: Supt., Western Washington Agency w/enclosure Hoquiam
Subagency w/enclosure
On December 1, 1964, stumpage rates were adjusted pursuant to
provisions of Section 11 of the Taholah Logging Unit Contract, Quinault
Reservation. The adjustments were made with reference to conditions
existing in the second quarter of 1964. Section 11 of the contract
reads as follows:
"11. NOTWITHSTANDING any other provisions of this contract, it
is mutually agreed that, in the event the said Pacific Northwest
Loggers Association's Composite Sales Analyses become
unavailable for use in connection with these stumpage readjustments,
or in the opinion of the Secretary or his duly authorized
representative do not properly reflect the true market value of the
forest products, the Secretary or such representative shall at any
time, after giving thirty days notice to the Purchaser during which
time the Purchaser may consult with the Secretary or such
representative, proceed to revise stumpage rates in accordance with
the trend of economic conditions in the west coast logging and
lumbering industry, provided that the requirements of notice in this
Section shall be satisfied when the new rates established under its
authority are made effective thirty days after notice by the
Secretary or such representative to the Purchaser that he intends
to proceed under the authority of this Section to adjust such
stumpage rates."
Exhibits A-1, A-2, and A-3 relate to the average computed log values
of the timber covered by this contract based on combined 2nd quarter
1965 Puget Sound-Grays-Willapa Harbor District prices as reported by the
Industrial Forestry Association and percentage log grade recovery from
the Taholah Unit during Calendar Years 1962-1964. A summation of the
changes since the previous adjustment based on 2nd Quarter 1964
conditions follows: TABLE OMITTED SEE ORIGINAL
Exhibit B-1 reveals the change between the 2nd quarter of 1964 and
the 2nd quarter of 1965 in the average prices for logs in the combined
Puget Sound-Grays-Willapa Harbor-Columbia River Market Districts.
Exhibits B-2 and C reveal the comparable price change which has occurred
in the Crays-Willapa Harbor District and the combined Puget
Sound-Grays-Willapa Harbor Districts. A Summary of these changes
follows:
TABLE OMITTED SEE ORIGINAL
The export log market continues to exert a profound influence on log
market prices throughout the West Coast forest product industry.
Although the overall total percentage of log sales reported as export
for the Gray-Willapa Harbor and puget Sound Districts by I.F.A. has
remained relatively unchanged between the 2nd quarter 1964 and 2nd
quarter 1965 (43% for puget Sound and 27% for the Harbor) the principle
species involved under timber sale cintract have shown increases. These
changes are shown in Exhibit D and reveal the following: Species .... %
Export 2nd Qtr. 1964 %Export 2nd Qtr. 1965 Cedar ......................
3 ...................... 8 Spruce .................... 50
..................... 82 White fir ................. 21
..................... 33 Hemlock ................... 35
..................... 54
Prior to the adjustments of stumpage rates put into effect December
1, 1964, changes in the ratios of stumpage to average log prices were
made effective July 1, 1960. The earlier adjustments were based on
studies reflecting conditions existing during the first quarter of 1960.
Some additional trends of economic conditions in the West Coast logging
and lumbering industries which have occurred since the 1960 adjustments
are shown below: Forest Product ..... 1st Qtr. 1960 2nd Qtr. 1964 2nd
Qtr. 1965 Ave. Realization of
Lbr shipments (See
Exhibit E) ............ 78.80 ........ 79.98 ........ 77.29 /#/ Cedar
Siding (Clear)
(See Exhibit F) ...... 100.1 ........ 100.5 ........ 102.0 Cedar
Shingles (No. 1)
(See Exhibit G) ...... 100.9 ........ 123.6 ........ 119.4 Red Cedar
Lumber
(See Exhibit H) ....... 62.03 /##/ ... 78.44 ........ 77.55 Cedar
Shingles
(See Exhibit I) ....... 92.57 /##/ .. 128.23 ....... 121.19 Western
Hemlock
(See Exhibit J) ....... 58.39 /##/ ... 71.10 ........ 66.27
Present indications as to the past year's trend of cost in producing
logs in the West Coast forest products industries are somewhat
contradictory. Information collected from west side loggers of Indian
timber show a $1.69 per MBM increase in direct logging and overhead cost
between 1963 and 1964. The U.S.F.S. cost information indicated that
between 1963 and 1964 a decrease has occurred.
The decrease indicated by the U.S.F.S. data appears to be
unreasonable when the new adjustment factors are applied. This appears
to be the result of basic changes in earlier procedures, and it is
suggested that no change in cost be made in the proposed adjustment
unless better information becomes available during the consultation
period.
Assuming no reasonale basis is found for adjusting cost and subject
to some adjustment between species, the net effect of a readjustment of
stumpage rates would indicate approximately the following:
Indicated
Species Present Rate .... Approx. Increase ......... New Rate Cedar
........ $12.55 .............. $ 4.77 ........... $17.30 Spruce ........
23.30 ............... 22.14 ............ 45.45 Douglas-fir ... 34.30
.............. - 7.93 ............ 26.35 White fir ..... 11.00
................ 5.85 ............ 17.65 White pine .... 11.30
................ 4.42 ............ 15.70 Hemlock ....... 11.80
................ 6.48 ............ 18.30
Indicated Average Stumpage Rate = $59.43 - $35.79/1.1022
............................. = $53.92 - $35.79 = $18.13
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
IFA Puget Sound-Grays-Willapa Harbor Prices.
IFA Puget Sound-Grays-Willapa Harbor Prices.
TABLE OMITTED SEE ORIGINAL
IFA Puget Sound-Grays-Willapa Harbor Prices.
TREND OF AVERAGE LOG GRADE PRICES IN THE COMBINED PUGET
SOUND-GRAYS-WILLAPA HARBOR-COLUMBIA RIVER MARKET AREAS AS RELATED
TO THE TAHOLAH UNIT STUMPAGE
TABLE OMITTED SEE ORIGINAL
TREND OF AVERAGE LOG GRADE PRICES IN THE COMBINED PUGET
SOUND-GRAYS-WILLAPA HARBOR-COLUMBIA RIVER MARKET AREAS AS REALTED
TO THE TAHOLAH UNIT STUMPAGE-CONT'D.
TABLE OMITTED SEE ORIGINAL
Trend of Average Log Grade Prices in the Grays-Willapa
Harbor Market Area as Related to Taholah Unit Stumpage
TABLE OMITTED SEE ORIGINAL
Trend of Average Log Grade Prices in the Grays-Willapa
Harbor Market Area as Related to Taholah Unit Stumpage - Cont'd.
TABLE OMITTED SEE ORIGINAL
PRICE TREND COMBINED PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS AS
REPORTED BY THE INDUSTRIAL FORESTRY ASSN
TABLE OMITTED SEE ORIGINAL
COMBINED REPORTINGS OF I.F.A. FOR PUGET SOUND-GRAYS-WILLAPA
HARBOR DISTRICTS SHOWING TOTAL VOLUME AND PERCENT OF EXPORT
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL Average
Realization on West Coast Lumber Shipments. (Total Avg. realization on
lumber shipments from the Douglas-fir Region of Western Washington,
Western Oregon, and Northern California.)
--West Coast Lumbermen's Association publication Industrial
Facts-- TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
(Based on Prices Published in Random Lengths)
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
HES-004-0334-0354
HES-004-0334-0354
IIJ65.1
COMM OF INDIAN AFF ; BR OF FORESTRY
641023
CORRESPONDENCE
ACTING ASST DIR
Forestry
60-11-7 - 339.5
cc: Branch subject Branch chrony Yellow chrony AIRMAIL Commissioner of
Indian Affairs OCT 23 1964 Washington, D. C. 20240 Attention: Branch
of Forestry Sir: As indicated in our teletype dated October 23, 1964,
we are recom- mending a reduction of $1.70 per (illegible) in our
previous recommen- dation for increased stumpage rates on the Taholah
Logging Unit. We are furnishing you with the following documents
showing the basis for the recommended change:
1. Estimated Logging Cost for Taholah Logging Unit.
2. Volume of Export Logs Involved in Puget Sound and Grays Harbor
Log Markets.
Previous cost estimates submitted with our earlier recommendations
employed the use of Logging and overhead cost reported by the U.S.F.S.
The cost pertained to the experience of 12 operators during calendar
year 1962. Some adjustments were made to account for labor cost in-
creases during 1962 and 1963. Subsequent studies and discussion
relating to this and other timber sale contracts in Western Washington
have clearly demonstrated that some allowance for the additional cost
involved in the handling of export logs is warranted. On October
22,1964, we discovered that revised U.S.F.S. logging costs were
available. These costs are based on operator's experience during
calendar year 1963, and therefore can reasonably be expected to include
some costs involving the handling of export logs. The revised cost
estimate reveals a $1.55 increase over the cost shown in Exhibit VIII of
our previous report ($36.12 - $34.57 and $34.99 - $33.44). This
difference is a result of changes in the U.S.F.S. logging cost data.
The second attachment indicates that during the third and fourth
quarters of 1963, 23.9 percent of the log sales reported by the
Industrial Forestry Association for the combined Grays-Willapa Harbors
and Puget Sound Districts went to exporters. During the first and
second quarters of 1964, this percentage was 29.8 percent. This
represents an increase of 3.9 percent. Because of the fairly brief
period in which the sale of export logs has exerted such a profound
influence on the log markets, detailed cost information concerning the
extra cost involved in handling export logs is not available. One
operator in the Hoquiam, Washington area has reported costs in excess of
66 per MbH in operating his sorting yard. This is apparently a rather
elaborate operation located near the Hoquiam River and it enables the
operator to obtain premium rates in export sales. Another operator
indicated a cost in excess of 2% MBM was involved in the operation of
his sorting yard located near the loads operation. Until such time as
better cost information is available, we are con- sidering $2.50 per MBM
to represent the average extra cost involved in the handling of export
logs. We are therefore recommending an additional cost allowance of
$0.15 per MBM to account for the increase in volume carried in export
between the last half of 1963 and the first half of 1964. This is
calculated as follows:
5.9 percent of $2.50 = 14.0 cents rounded to 15 cents.
Considerable time has passed since stumpage adjustment studies were
started on this unit. We have been faced with significant changes in
log market prices expected by increasing volumes going into export over
the past year. We now believe the new cost data results in a fair
appraisal to the stumpage involved. We therefore recommend that our
previously recommended rates be adjusted for the cost diferential
referred to above as follows: TABLE OMITTED SEE ORIGINAL At the
earliest possible date we will furnish you with a summary of events
involved in the consultation and various meetings relating to this
adjustment of stumpage rates. We do not believe it to be in the best
interest of any of the parties involved in this contract to delay
putting the new rates into effect at the earliest possible date. We
have discussed the provision of Section 11 of this contract, as it
pertains to the required period of notice, which Mr. Grubbe in the
Regional Solicitor's Office. He has indicated the most reasonable
interpretation would appear to be that rates be increased 30 days
following notice to the purchaser that specific rates were to be put
into effect on a specified date. He did, however, indicate Section 11
might be interpreted to the effect that notice was given on September 9,
1964, and therefore the rates might be increased as of November 1, 1964.
In any event, we strongly recommend the change in stumpage rates be
made effective at the earliest possible date, and in no event later than
December 1, 1964.
Sincerely yours,
(SGD) ???? Wilcox
Acting Assistant Area Director
Enclosures (2) cc: Supt., Western Washington Agency (2) w/enclosures
(2) Hoquiam Subagency w/enclosures (2) Note to Western Washington:
Please give one copy of this letter to the Quinault Tribal Council.
KWHadley:du 10/23/64
ESTIMATED LOGGING COST FOR
TAHOLAH LOGGING UNIT
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
TAHOLAH LOGGING UNIT
1964
TABLE OMITTED SEE ORIGINAL
VOLUME OF EXPORT LOGS INVOLVED IN PUGET SOUND
AND GRAYS HARBOR LOG MARKETS
TABLE OMITTED SEE ORIGINAL Percentage increase between third and fourth
quarters 1963 and first and second quarters 1964 = 29.8% - 23.9% = 5.9%
HES-004-0355-0361
HES-004-0355-0361
IIJ64.4
COMM OF INDIAN AFF ; BR OF FORESTRY
641016
CORRESPONDENCE
; ALOHA LUMBER CO
Forestry Secretary of the Interior, Bureau of Indian Affairs, P. O. Box
3785, Portland, Oregon 97208 Attn: Mr. Perry E. Skarra October 16, 1964
Dear Sir:
In your letter of September 11, 1964, you enclosed a statement
entitled "Trend of Economic Conditions", together with its accompanying
exhibits, and also a "Summary of Stumpage Rate Determinations applicable
to the Taholah Logging Unit" comprised of a number of exhibits and in
your letter stated that, "Exhibit I reveals the extent of changes in
existing stumpage rates resulting from our preliminary review of the
trend of economic conditions in the West Coast Logging and Lumbering
Industry."
After the receipt of the foregoing, certain correspondence was
exchanged relative to the matter and on October 5, 1964, a meeting was
held with you and other representatives of the Bureau of Indian Affairs
at Hoquiam at your invitation to discuss the proposed changes in
existing stumpage rates, at which representatives of Aloha were present,
together with representatives of Evans were present since Evans has an
outstanding option to purchase substantially all of the stock of our
company and thus might be vitally concerned.
During the meeting there was discussed and considered a number of
points bearing upon trend of economic conditions as related to the
Taholah contract and operations under it and bearing upon the
interpretation of the contract, particularly with reference to Sec. 11
thereof. At the close of the meeting we advised that we would furnish
to you, in written form, a statement summarizing the points which we
felt were significant and bringing up any others that might come to
light in view of our conference. We are submitting the following in the
hope that it will help both parties to arrive at an agreement as to
acceptable proposals for stumpage rates.
PROPOSED CHANGES IN STUMPAGE RATES STATED TO BE
UNDER PURSUANT TO THE PROVISIONS OF SEC. 11 OF THE
CONTRACT
Summary of the Provisions of Secs. 8, 9 and 10 of the Contract
At our conference, we were advised that you were proceeding with
respect to proposed changes in stumpage rates under the provisions of
Sec. 11 of the contract and not under Sec. 10, this because the PNLA's
Composite Log Sales Analyses were no longer available, the PNLA having
been dissolved and its last sales reports being for the quarter ended
December 31, 1962. Payments of stumpage since the last revision in
ratios in 1961 have been made pursuant to the revised ratios then
established. Since the last PNLA report for the quarter ended December
31, 1962, there have been no automatic stumpage price adjustments based
upon log values as provided for in Secs. 8 and 9 of the contract to
reflect trend
In the beginning of contract relationships (as set forth in Sec. 8 of
the contract) the contracting parties agreed that a certain existing
percentage relationship controlled between stumpage rates and log prices
and these percentage relationships were set forth in the contract; and
under Sec. 9 stumpage prices were adjusted quarterly to reflect the
agreed percentage of increases and decreases in value of logs. This was
clearly a "trend" reflecting procedure free of the question of
guesswork. Thereafter, purporting to act under Sec. 10, you from time
to time established new percentage ratios between stumpage and the Grays
Harbor-Puget Sound log prices, purportedly reflecting your findings that
"the character of the operation, changes in marketing conditions or
technological developments, have (had) altered the situation to such an
extent that the change in existing ratios between stumpage rates and the
Grays Harbor-Puget Sound log prices appears (appeared) warranted".
The provision under which you state you are now proceeding to
consider proposed changes in stumpage rates, Sec. 11, reads as follows:
"11. NOTWITHSTANDING any other provisions of this contract,
it is mutually agreed that, in the event the said Pacific
Northwest Loggers Association's Composite Sales Analyses
become unavailable for use in connection with these stumpage
readjustments, or in the opinion of the Secretary or his
duly authorized representative do not properly reflect the
true market value of the forest products, the Secretary or
such representative shall at any time, after giving thirty
days notice to the Purchaser, during which time the Purchaser
may consult with the Secretary or such representative, proceed
to revise stumpage rates in accordance with the trend of
economic conditions in the west coast logging and lumbering
industry, provided that the requirements of notice in this
Section shall be satisfied when the new rates established
under its authority are made effective thirty days after
notice by the Secretary or such representative to the
Purchaser that he intends to proceed under the authority of this
Section to adjust such stumpage rates."
We were advised that you were now proceeding under the provisions of
Sec. 11 because the Pacific Northwest Loggers Association's Composite
Sales Analyses had become unavailable. It is clear from the foregoing
that for the first time under the contract you are proceeding under Sec.
11 of the contract and that, accordingly, we are both faced with a new
and differing set of circumstances as applied to a contract provision
which has not as yet been interpreted in the sense of application to the
contract. In other words, it seems clear that we have a new and unique
proceeding which must be considered and examined in light of the purpose
and intent of such Sec. 11 and in light of the overall contractual
provisions.
In the next following portions of this letter we consider points
bearing upon trend as applied to the Taholah contract.
STUMPAGE RATES PROPOSED IN LETTER OF SEPTEMBER 11,
1964, AS CONTRASTED WITH EXISTING STUMPAGE RATES
To focus attention on your preliminary proposed adjustments, it is
perhaps best to first set forth for comparative purposes the present and
proposed rates, which are as follows: TABLE OMITTED SEE ORIGINAL
Since most of the logs from the Taholah unit are Cedar and Hemlock,
Aloha is primarily concerned with the 55% proposed increase in stumpage
rates for Cedar and the 40% proposed increase in stumpage rates for
Hemlock.
OBJECTIONS TO PROPOSED STUMPAGE RATES
Aloha strenuously objects to the proposed increases in stumpage rates
resulting from your preliminary review of the trend of economic
conditions in the West Coast logging and lumbering industry. In this
part of our letter, as stated, we are considering the proposed changes
in stumpage rates in light of the methods and the facts applied by you
and without reference to our view of what the contract says. Log Prices
Not Realistic
In the first place we believe that the log prices you have used are
unrealistic, are too high and do not reflect the available market.
White Fir and Hemlock - As you know, Aloha sells its White Fir and
Hemlock logs in the open market and the only market available is the
Grays Harbor market. In the second quarter of 1964 for such logs, Aloha
was getting $58.50 for peelers, $53.50 for #1, $44 50 for #2 and $42.00
for #3. The weighted average White Fir sales price was $45.00 per M.
After deducting logging costs of $33.44 (as allowed in your Exhibit
VIII) there will be left $11.56 for stumpage, risk and profit, or 14[
less than we are actually paying today (before any increase) for
stumpage -- $11.70. Now it is proposed that stumpage be increased on
White Fir from $11.70 to $13.50 -- an additional $1.80. In other words,
without reference to overhead Aloha, based upon its actual market, would
suffer a loss on every M feet of White Fir in the neighborhood of $2.00
per M.
The weighted average sales price to Aloha of Hemlock in the second
quarter of 1964 was $44.05 per M. After deducting $33.44 (allowed by
your Exhibit VIII) for logging costs, there will be left only $10.61 for
stumpage, risk and profit which is only $1.00 per M more than the
present stumpage rate for Hemlock of $9.61. Now it is proposed that
such stumpage be increased to $13.50 -- some $3 89 more per M. Without
reference to overhead, this will automatically result in a loss in the
neighborhood of $3.00 for every M feet of Hemlock produced by Aloha from
the Taholah unit.
Red Cedar Sales Prices - Red Cedar #1 7% during the second quarter of
1964 was priced by Aloha at $75.00, Highgrade #2 10% at $57.50, #2 66%
suitably mostly for shingles at $44.00 and #3 17% at $32.00, these
prices resulting in a weighted average sales price of $45.48 per M.
Aloha has priced #1 and Highgrade #2 at the prices for similar logs and
the lower grades at the prevailing price that Aloha is selling such logs
in the Grays Harbor market. Since Aloha does not have enough
manufacturing capacity to manufacture all of its own Cedar, it has sold
Cedar to the M. R. Smith Shingle Co. mill at Moclips, which is
associated under similarity of stock ownership. In pricing such Cedar,
Aloha's practice has been to price the same so as to give each company
half of the saving in transportation and rafting that would have been
involved if the surplus Cedar had been shipped to Grays Harbor, the only
other available market. Deducting the $34.57 logging cost reflected on
your Exhibit VIII for Cedar, such prices leave only $10.91 for stumpage,
risk and profit, or $1.78 for risk and profit based upon the presently
existing stumpage rate of $9.13 for Cedar. Now it is proposed to
increase Cedar stumpage from $9.13 to $14.25 -- an increase of $5.12 per
M -- which would result (based upon the above computation) in an average
loss per M without reference to overhead of $3.34.
Spruce - With respect to Spruce, Aloha's second quarter 1964 selling
prices were $82.50 for Select, $67.50 for #1, $47.50 for October 16,
1964 #2 and $42.00 for #3, resulting (based upon the percentage of
grades shown) in a weighted average sales price of $51.92 per M. After
deducting the $33.44 logging cost (proposed in your Exhibit VIII), there
is left $18.48 for stumpage, risk and profit, or $3.38 for risk and
profit after deduction of the presently applicable $15.10 stumpage
rates. You now propose that Spruce stumpage rates be increased from
$15.10 to $25.00, some $9.90 increase. Such rates would result in an
average loss per M on all Spruce logs sold of $6.52.
Douglas Fir - Douglas Fir only comprises a very small percentage --
probably less than 1% of production. However, such logs as are produced
are sold. As pointed out in our conference, the percentage of grades
shown in your studies for the years 1961, 1962 and 1963 was abnormally
high due to the fact that we had selected some of the best trees for
sled runners. The figures shown for 1957 and 1960 are more typical of
the Douglas Fir remaining. Using those grade percentages, actual prices
available during the second quarter of 1964 for peelers are respectively
$105.00, $92.50 and $67.50; $65.00 for #1 sawmill, $50.00 for #2 and
$42.00 for #3; resulting in a weighted average sale price of $61.96.
After deducting the $33.44 logging cost (proposed in Exhibit VIII) there
is left $28.52 for stumpage, risk and profit. Stumpage to date has been
$33.31 and thus Aloha on such prices will suffer a loss of $3.89 per M
on all logs sold. Now it is propoed to increase Douglas Fir stumpage to
$36.00 per M -- an additional $2.69 -- so on the average Aloha will lose
at such prices and based upon the above computations $6.58 per M.
The grade percentages for Douglas Fir in the years 1961, 1962 and
1963 which cannot be duplicated on the remaining timber, resulted in an
average log sales price of $75.85. If, however, we were to take the
average of the grade produced in 1957 to 1960 and the low period 1961,
1962 and 1963, an average sale price of $68.90 would result, which would
leave $35.46 for stumpage, risk and profit in comparison with the $33.31
which we are paying today, or only $2.15 for risk and profit which is
oviously inadequate, particularly so when considered without reference
to administrative overhead, etc. At the proposed increased stumpage
rate of $36.00 for Douglas Fir, even this would result in some 50[ per M
loss. Actually, however, such grade realization is just not available
in the future.
White Pine - We manufacture White Pine ourselves and the percentage
is very small in any event. The relatively modest increase in White
Pine from $12.40 to $13.50 is of little or no significance to us.
USE OF UNAVAILABLE PUGET SOUND LOG PRICES
Comment was made in the meeting that Rayonier and Aloha together
comprise the biggest part of the market and that such prices are
controlled. As a matter of fact, there have been no exchanges and all
sales that have been made (with the exception of the sale of some Cedar,
as mentioned, to M.R. Smith Single Co.) were made in arms-length
transactions. As mentioned before, Aloha has for some time been selling
its Hemlock to the Blagen Mill in Aberdeen, except for a few peelers
sold to West Coast Plywood. Aloha has certainly been required to and
has been using every effort available to obtain the best sale price for
logs. As mentioned in our conference, realistically the Puget Sound log
market is not available. By the time the additional transportation
costs are added, etc , the resulting log prices do not justify sale in
this market.
Crow's Index, as of this date, makes it clear that there has been no
strenthening of prices since the second quarter of this year but, if
anything, there is a tendancy for weakening of prices.
Material furnished to us indicates that in arriving at log prices you
took into consideration prices available in the Puget Sound log market.
Especially since Sec. 10 is no longer being used by you, there seems no
justification for continuing to use the unrealistic utilization of the
Puget Sound log market in your trend studies. As we have pointed out
with respect to prior adjustments, at the time of the original contract
the prices paid in the Puget Sound for logs were substantially the same
as those in the Grays Harbor-Willapa market. Gradually over the years a
very significant spread developed between the Puget Sound market and the
Grays Harbor market. For some unaccountable reason (although this was
probably the only marketing condition which had altered in fact) you
refused to take this into consideration, although other items of
questionable significance were considered. Now, however, there is no
justification whatsoever under Sec. 11 in using for your studies a
market that is just not available without at least taking into
consideration the additional transpotation costs required to reach that
market. The use of the Puget Sound log market is discussed in more
detail with reference to a consideration of contractual provisions.
USE OF LOG PRICES REFLECTING EFFECT OF HIGHER EXPORT
MARKET UNREALISTIC - EXPORT MARKET NOT AVAILABLE
Further point in the conference was made with respect to the export
of logs, it being pointed out again that a great deal of the increase
reflected in log price was due to export business. However, as seemed
to be an accepted fact, little, if any, of the logs produced from the
Taholah Unit were of export quality. Further, even if export prices
were to be taken into consideration, there would necessarily have to be
taken into account the additional costs which would result such as
sorting, preparing for export, etc. Mr. Smith pointed out in this
letter of September 30, 1964, and made further reference to the fact
that for all practical purpoes the export market was just not available
to Aloha and that the additional costs of attempting such would more
than offset the benefit. Clearly, in computing trend, the actual market
for which the timber on the Taholah Unit is available should be taken
into consideration and not some theoretical market which had no real
reference to the situation. At the very least, there should be built
into the log prices used a correlating increase in cost of
transportation, preparing for export market and so forth.
LARGE UNDER-RUN IN TAHOLAH LOGS SHOULD BE
Mr. Smith, in his letter of September 30, 1964, enclosed a letter
from Moss, Adams & Co., Certified Public Accountants, setting forth the
results of log cut-out for the M.R. Smith shingle mills at Moclips,
Mineral and Beaver. These figures reflect the actual under-run
experiences with respect to Taholah logs. As stated in Mr. Smith's
letter, in the last few months the under-run experienced has been even
more severe. At Moclips for the month of July the under-run was 14.03%
and, as set forth in Mr. Nordman's memo enclosed in our letter of
September 30, 1964, the under-run on the last raft cut at Moclips was
16.86%. Attention is also directed to the fact that based upon Mr.
Smith's considerable experience in buying and selling logs in both the
Grays Harbor and Puget Sound markets, the cut-out on shingle cedar logs
has never been as good in Grays Harbor as in Puget Sound and, as a
result, for many years the cut-out with respect to Grays Harbor logs is
figured only at 11 quares of 16-inch shingles.
Mr. Smith, in his letter, further pointed out that over the years the
scale has gradually been adverse for the buyer. For the month of
September 1,775,770 feet of Aloha's own cedar logs were cut into lumber
and shingles and an under-run of 387,000 feet developed, which is in
excess of 20%.
The log production costs set forth in your Exhibit VIII contain an
insufficient allowance for road construction and totally omit certain
charges, such as dumping, rafting, booming, towing and scaling which are
or will be incurred in this operation.
Please refer to Schedule 1 attached hereto for an analysis of these
omissions, amounting in the alternative to $4.64 or $3.83 per M.
Only by the use of adequate log production cots can the appraisal
method of your Exhibits V and VI produce fair stumpage prices.
SUBSTANTIAL POTAION OF INCREASE IN LOG VALUE
REFLECTED IN PROPOSED STUMPAGE ADJUSTMENTS - THIS
ARBITRARY, UNFAIR AND UNREALISTIC
Under the contract the parties agreed that a certain relationship
existed between log prices and stumpage and automatically as log prices
went up stumpage increased percentagewise. For instance, with respect
to the two predominant species - Cedar and Hemlock - this percentage
relationship was determined to be 20.09% and 10.17%, respectively, and
for the next predominant specie - White Fir - 9 71%. In other words, if
Hemlock log prices went up $10.00 stumpage would go up a little in
excess of $1.00 per M. This was, of course, based upon the obvious fact
that labor costs and other costs also go up on the average and these
relationships were agreed to by the contracting party at the time the
contract was entered into. Even since that date at least lip service
has been given to the fact there was and is a percentage relationship
adjusted only for technological changes and marketing conditions.
However, it becomes readily apparent in comparing the low prices assumed
by you to exist in 1961, the time of the last ratio adjustment and upon
which present stumpage is based, with those you now assume to exist,
that you have abandoned any such recognition of a ratio relationship.
Instead, your proposed stumpage rates reflect a very large percentage of
your assumed increase in log prices, this even though (as pointed out by
Mr. Smith in his letter to you relative to this matter of September 30,
1964) Aloha has been obliged to put into effect labor increases which
probably at least offset in dollar amount the increases found by you to
exist in stumpage prices.
To illustrate the point that you have assumed and taken the position
that most of the increase in log prices should be considered as the
trend for stumpage prices, are the following figures setting forth with
respect to each specie the log prices for the fourth quarter 1960 which
you found to exist for the purpoes of the last ratio adjustments in 1961
(at page 3 of your 1961 "Preliminary Review as to Relative
Relationships") and those for the second quarter of 1964 found by you to
exist for your 1964 study (Exhibit V - profit and risk computation):
........................................................ Proposed
.................. 4th 1/4 .... 2nd 1/4 .... Differ- ... Stumpage
Species ............. 1960 ....... 1964 ....... ence ... Increase
........................ $ .......... $ .......... $ .......... $
Cedar .............. 48.55 ...... 53.44 ....... 4.89 ....... 5.12
Hemlock ............ 45.85 ...... 52.82 ....... 6.97 ....... 3.89
White Fir .......... 49.32 ...... 52.49 ....... 3.17 ....... 1.80
Indeed, in your Exhibits II, III and IV, one hundred per cent of
price trend (from an arbitrarily selected base of the first quarter of
1960) is charged against Aloha. So is one hundred per cent of the
quality trend which may explain why the stumpage increases above
tabulated are not closer to one hundred per cent of the price trend
shown. Aloha firmly believes that it is improper practice to deny it
any participation in such trends.
RELATIVE PROFIT AND RISK ALLOWANCE IS NOT MAINTAINED
Over the years Aloha has objected to your relative profit and risk
application determinations used in connection with adjusting ratios and
resulting stumpage prices. It undoubtedly would serve no purpose in
view of your statements at our last conference to review Aloha's
position in this connection. It has been many times set forth with
respect to preceding adjustments. However, it is pointed out that based
upon your assumed profit and risk factors the proposed stumpage rates
will result in an actual loss without taking into consideration
administrative overhead and would result in such a loss during the
entire period covered by your trend studies.
Evans Products Co. has brought to our attention the need for
substantial additional capital outlays to carry on the operation. In
the first instance, Aloha spent large sums of money in improving its
mill, etc., to handle the Taholah contract timber. It also was required
to make large down payments upon the timber, etc. As mentioned in the
past and as presented to you time and time again in graphic form, Aloha
never has received a fair return upon its capital outlay, nor has it
reveived the profit and risk factor which even you assume to have been
built into the contract and which profit and risk must, according to
you, be maintained.
Again, it is pointed out that you are now proceeding under Sec. 11
which may well provide an opportunity for a realistic reappraisal, or at
the least a sensible and fair new method of reflecting trend.
SUMMARY ANALYSIS OF EXHIBITS A THROUGH G
There was attached to the statement entitled "Trend of Economic
Conditions" accompanying Exhibits A, B, C, D, E and G, which were stated
to "reveal some substantial changes in economic conditions which have
occurred in recent years". In Exhibit A there are set forth items
purporting to represent "average realization on West Coast lumber
shipments". Aloha's production is in excess of 60% Cedar and from 20 to
25% Hemlock. Just what effect average lumber prices (what species?
from what area? at what stumpage? production costs?) have in such a
situation as applied to the Taholah contract is at best vague and
indefinite. In any event, it is interesting to note that even based
upon the application of these very questionable figures the annual
average for 1961 was $71.26 and for thewhol year of 1963 it was $74.54.
1964, however, showed a marked drop and it is believed that the same
would appear with respect to all other months of 1964. It is quite
obvious from this that more than one hundred per cent of the so-called
average realization was reflected in your proposed increase in stumpage
prices. Exhibits B and C set forth wholesale price index for Cedar
bevel siding clear and Cedar shingles #1, respectively. Mr. Smith, in
Aloha's letter of September 30, 1964, has commented with respect to
these and we refer you to that letter for the actual factual situation
existing. Here again, while these figures indicate there has been an
increase since 1961 in prices for the products concerned, the percentage
of production from the Taholah Unit and the effect upon Aloha's
realization is not studied. Mr. Smith has pointed out that, in fact,
labor manufacturing costs and logging costs have probably at least
equalled the increase in market price for the products manufactured, as
well as with respect to the logs sold. In other words, used as they
are, the relevancy of Exhibits B and C is vague and indefinite and of no
probative force except to show that there was a price increase for these
products. The same comments apply with respect to Exhibit E.
With respect to Exhibit G setting forth Western Hemlock index prices
reported in Random Lengths, Mr. Smith in his letter of September 30,
1964, commented generally about the utilization of the first quarter of
1960 as against the fourth quarter of 1960, pointing out that the
figures compiled by West Coast Lumberman's Association on average
realization of lumber shipments show that the average for the first
quarter of 1960 was $78.80 as against $68 22 for the fourth quarter and
what is more than offset by increases in wages.
Of course, with respect to Hemlock, Aloha sells all of its logs and
the actual sales price for logs and the trend is available from Aloha's
own figures based upon the market in fact existing.
It is submitted that Exhibits A through G are not in any way related
to the facts of Aloha's operations, nor indeed are they in any way used
to arrive at the recommended stumpage rates of Exhibit I. It is easy to
critize them as a statistical basis for stumpage changes and this record
would be simpler and clearer if we omitted them.
QUESTIONS RAISED BY APPLICATION OF SEC. 11
FOR THE FIRST TIME TO REFLECT TREND
You advise that in your present proceeding to consider changes in
stumpage prices you are acting pursuant to Sec. 11 of the contract --
and as earlier pointed out we then are both faced with a first time
proceeding under the contract. You further advise that you are so
proceeding under Sec. 11 because the PNLA Composite Sales Analyses
became available commencing as of January 1, 1963. Stated then in the
terms of Sec. 11, since the PNLA's Composite Sales Analyses are no
longer available "for use in connection with those stumpage
readjustments,...the Secretary or such representative shall at
anytime...proceed to revise stumpage rates in accordance with the trend
of economic conditions in the West Coast Logging and Lumbering
Industry,..."
It is believed that both parties to the contract are now faced with,
first, a complete and full consideration of the interpretation and
application in light of such interpretation of Sec. 11. In this
connection, a number of questions and considerations arise which it
would seem should be fully explored, considered and discussed between
the parties in an attempt to arrive at a mutually satisfactory
interpretation of Sec. 11 and a new method of adjusting stumpage to
reflect trend. For instance, the following questions and considerations
may be involved:
(1) Are the provisions of Sec. 11 only intended to replace
the automatic quarterly trend readjustments to stumpage
based upon the application of the ratios between stumpage
rates and the PNLA's Composite Sales Analyses?
(2) If so intended, then should the Secretary think in
terms of adjusting stumpage rates for trend from (a) the
original date of contract, (b) January 1, 1963, when such
Composite Sales Analyses became unavailable, (c) the time in
1961 when the last percentage factors that log prices bore to
sutmpage prices, or (d) some other time, such as the 1960
percentage ratio adjustment. If, for instance, it was determined
that by reason of the inclusion of the Puget Sound
log market in such Composite Sales Analyses such sales
Analyses did not properly reflect the true market value of
the forest products (as we believe was long since the case),
then it could well be that the Secretary should now start
from the originally agreed percentage ratios adjusted only
to reflect the effect of technological changes, etc. since
the date of the contract.
(3) Is Sec. 11 intended to be all-inclusive with respect
to revising stumpage rates or is it intended only to reflect
"the trend of economic conditions" in lieu of the automatic
stumpage adjustment method based upon the PNLA's Composite
Sales Analyses; in which event, should the Secretary under
this section only proceed in a manner to preserve the agreed
ratio relationship between the value of the timber product
concerned and stumpage?
(4) Should the Secretary consider and try to arrive at
some other automatic method of adjusting stumpage prices
quarterly as was heretofore provided based upon the PNLA's
Composite Sales Analyses and as is used in Forest Service
contracts based upon lumber prices? In the past both parties
were protected in a rising and falling market by automatic
adjustments in stumpage price. Is it intended that
trend be adjusted quarterly by determinations such as these?
If so, is this practical and realistic?
(5) If the IFA composite log prices are to be used to
reflect trend in lieu of the PNLA figures, should the Puget
Sound log prices be considered or should they be eliminated
since they do not any longer "properly reflect the true market
value of the forest products"?
(6) Acting under Sec. 11, can there be covered not only
trend revisions as related to the "true market value of the
forest products" but also percentage relationship changes
between stumpage and log values to reflect the effect of
alterations in the character of the operation, changes in
marketing conditions or technological developments? If so,
should there be a breakdown indicating (i) trend adjustments
as related to "the true market value of the forest products",
(ii) the effect, for instance, of any technological development
or change in marketing conditions?
The foregoing are a few of the questions and observations which have
occurred. Needless to say, all parties to the contract are vitally
concerned and the Secretary is in effect acting as an arbitrator between
the parties in representing both buyer and seller in his determinations.
In the earlier protions of this letter we pointed out that "the true
market value of the forest products" -- the logs produced from the
Taholah Unit -- were not as found by you in your preliminary review. In
fact, the log prices upon which you based your proposed stumpage rate
increases were much too high. We pointed out why this might be the case
and provided figures as to the "true market value". Under Sec. 11 of
the contract there would appear to be no reason why the Secretary shold
continue to consider in connection with the true market value of the
forest products the unavailable Puget Sound or export market.
We also pointed out generally and in specific detail in earlier
adjustment proceedings that the relative profit and risk margin was not,
in fact, being maintained and that Aloha's operations under the contract
had been far from satisfactory, even though admittedly its costs were if
anything lower than the average.
Under all of the circumstances, and particularly so in light of Sec.
11, we earnestly hope that a realistic and simplified application of the
intent and purpose of Sec. 11 can be worked out mutually satisfactory to
the parties
BIA EXHIBIT VIII Analysis of Added Road Construction and Other
Costs
Assume 50,000 M per year logs cut
Estimated volume 6,000 M per mile (based on remaining volume
under contract of 750,000 M)
Estimated road construction cost per mile $17,000
(BIA estimate - $17,600)
BIA allows $1.58 per M for road construction (Exhibit VIII)
$1.58 x 50,000 M = $79,000 79,000/17,000 = 4.6 miles built per
year 4.6 miles x 6,000 M per mile = 27,600 M per year
Aloha will cut 50,000 M per year
50,000 = 1.81 x $1.58 = $2.86 per M road cost. 27,600
TABLE OMITTED SEE ORIGINAL
HES-004-0362-0377
HES-004-0362-0377
IIJ64.3
SKARRA, PERRY E ; BIA SCTY BIA
640828
CORRESPONDENCE
AREA DIR
Forestry Taholah 60-11-7 - 339.5 AUG 28 1964 AIRMAIL Commissioner,
Bureau of Indian Affairs Washington, D. C. Attention: Branch of
Forestry Sir:
With our letter dated July 23, 1964, we furnished you two sets of
exhibits updating information pertaining to revaluation of timber on the
Tabolah Logging Unit. The updating involved using first quarter 1964
log market prices in lieu of fourth quarter 1963 prices employed in our
original report transmitted to you with our letter dated May 20, 1964.
We have now obtained from the Industrial Forestry Association
compilations on log sales transactions for the second quarter of 1964.
We are, therefore, submitting two sets of exhibits utilizing this
information as it applies to timber covered by the Taholah Logging Unit
Contract.
We previously advised you that in our judgment the best known basis,
available to us at the present time, for determining log market prices
is the composite Log Sales Analysis published by the Industrial Forestry
Association. After discussing price collecting procedures with
representatives of the I.F.A. we are confident the prices are comparable
to those previously collected and published by the Pacific Northwest
Loggers' Association.
We are furnishing you with a new exhibit pertaining to the trend of
estimated logging cost applicable to this revaluation study. With the
exception of this cost adjustment, all changes from the previous reports
submitted to you regarding this stumpage readjustment study pertain to
changes in log market prices.
In previous adjustments of stumpage ratios under this contract no
attempt has been made to retain the exact relationship of one species to
another as was derived at the time of sale. The 1.op's established by
each readjustment varies to a considerable degree from one report to
another when individual species are compared. There has, however, been
a determined effort to maintain the average 1.op when all species are
combined. This procedure has been followed in determination the
recommended rates resulting from this supplemental appraisal.
It will be noted in Exhibits II-A, III, and IV that measurements of
changes which have occurred in log market prices, log quality, and
logging cost are based on conditions existing during the first quarter
1960 and the second quarter of 1964. The first quarter of 1960 was the
base period used in the adjustment of ratios put into effect on July 1,
1960. That adjustment was appealed to the Secretary of the Interior and
the appeal subsequently denied. It should, however, be realised that
essentially the same results would be obtained if the readjustment study
had used the fourth quarter of 1960 (basis for most recent ratio
adjustment under this contract) as the basis for this study.
We believe information which has been furnished to you clearly
reveals that upward adjustments of stumpage rates covered by this
contract are justified. The information was prepared by Assistant Area
Forester Hadley and Assistant Forest Manager Clark. All pertinent
computations have been checked by Auditor (Industrial Cost) Dirr. We
recommend that appropriate steps be taken to implement increasing the
rates as follows:
Western Redcedar ..................... $9.13 .............. $14.25
Sitka Spruce ......................... 15.10 ............... 25.00
Douglas-fir .......................... 33.31 ............... 36.00
White fir (PSF) ...................... 11.70 ............... 13.50
Western White Pine ................... 12.40 ............... 13.00
Western Hemlock ....................... 9.31 ............... 13.50
The above recommended rates reasonably maintain the average 1.op of
1.1022 established at the time of purchase as shown by the following:
TABLE OMITTED SEE ORIGINAL
We are sending you an assembly referred to as "Trend of Economic
Conditions" which in our judgment supports our recommended increases in
stumpage rates. You may wish to furnish the Purchaser with a copy of
the assembly.
Enclosures (19) cc: Supt., Western Washington Agency w/enclosures (19)
Hoquiam Subagency w/enclosures (19) Branch subject Branch chrony Yellow
chrony KWHadley:mgm:8/28/64
TREND OF ECONOMIC CONDITIONS
Pertaining to the West Coast logging and lumbering industry in con-
nection with the timber sale contract on the Taholah Logging Unit,
Quinault Indian Reservation, Washington. Section II of the contract
provides that in the event the Pacific Northwest Logger's Association's
Composite Sales Analyses becomes unavailable for use in connection with
stumpage adjustments, the Secretary or such representative shall at any
time proceed to revise stumpage rates in accordance with the trend of
economic conditions in the West Coast logging and lumbering industry.
New rates established under this procedure will be made effective thirty
(30) days after notice by the Secretary or such representative to the
purchaser that he intends to proceed under authority of this section to
adjust stumpage rate Pacific Northwest Logger's Association's
Composition Sales Analyses became unavailable January 1, 1963.
Beginning the third quarter of 1963, the Industrial Forestry Association
began reporting log grade prices based onactual sales transactions of
logs in the Willapa-Grays Harbor Districts for the first quarter 1960
and the second quarter 1964 are shown below: TABLE OMITTED SEE ORIGINAL
Trends of economic conditions in the West Coast logging and lumbering
industry are shown in the price indices for lumber and other forest
products in the attached Exhibits A, B, C, D and G. These statistics
reveal a considerable increase in the forest products listed.
The change from the first quarter 1960 to the second quarter 1964 for
the forest products listed in the Exhibits A, B, and C is shown below:
TABLE OMITTED SEE ORIGINAL
Changes in the ratios of stumpage to average log prices were
established under this contract effective July 1, 1960. These changes
were based on studies reflecting conditions existing during the first
quarter of 1960. The Purchaser appealed to the Secretary of the
Interior the increase in ratios. This appeal was subsequently denied.
Changes from the first quarter of 1960 to the second quarter of 1964
are not shown above for Exhibits D, E and C because we do not have
sufficient information to establish the tread for these Exhibits prior
to the fourth quarter of 1960. Chances which are reflected by all
Exhibits between the fourth quarter of 1960 (period upon which most
recent ratio adjustment studies were based) and second quarter of 1964
are shown below: TABLE OMITTED SEE ORIGINAL
Average Realization on West Coast Lumber Shipments. (Total Avg
realization on lumber shipments from the Douglas-fir Region of Western
Washington, Western Oregon, and Northern California.)
West Coast Lumberman's Association publication Industrial Facts TABLE
OMITTED SEE ORIGINAL
WHOLESALE PRICE INDEXES - U.S.D.L.
(08-13-61.06) Cedar Bevel Siding Clear
(1957-59=100)
TABLE OMITTED SEE ORIGINAL
WHOLESALE PRICE INDEXES - U.S.D.L.
(08-13-66.06) Cedar Shingles No. 1
(1957-59=100)
TABLE OMITTED SEE ORIGINAL
WESTERN REDCEDAR
Index Price per MBM
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
WESTERN REDCEDAR SHINGLE INDEX PRICES
No 2 LOG PER MBM LOG SCALE
(Based on Prices Published in Random Lengths)
TABLE OMITTED SEE ORIGINAL
Index Price Per MBM
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
SUMMATION OF TRENDS RELATING TO TAHLAH LOGGING UNIT
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
PNLA Puget Sound Grays Harbor Prices.
IFA Puget Sound Grays-Willapa Harbor Prices.
TABLE OMITTED SEE ORIGINAL
IFA Puget Sound Grays Harbor Prices.
IFA Puget Sound Grays-Willapa Harbor Prices.
TABLE OMITTED SEE ORIGINAL
Trend of Average Log Grade Prices in the Combined Puget
Sound-Grays Harbor Columbia River Market Areas as Related to the
Taholah Unit Stumpage
TABLE OMITTED SEE ORIGINAL
Trend of Average Log Grade Prices in the Combined Puget
Sound-Grays Harbor Columbia River Market Areas as Related
to the Taholah Unit Stumpage - Cont'd. TABLE OMITTED SEE ORIGINAL
Trend of Average Log Grade Prices in the Grays Harbor
Market Area as Related to Taholah Unit Stumpage
TABLE OMITTED SEE ORIGINAL
Trend of Average Log Grade gprices in the Grays Harbor
Market Area as Related to Taholah Unit Stumpage-Cont'd.
TABLE OMITTED SEE ORIGINAL
Computations using the individual profit and risk factor established
at the time of sale follows: TABLE OMITTED SEE ORIGINAL
Relative Stumpage Rate Computations Using Average 1. op of 1 1022
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
HES-004-0378-0401
HES-004-0378-0401
IIJ64.2
COMM ; BIA BR OF FORESTRY
640520
CORRESPONDENCE
HOLTZ, R D
Forestry 60-11-7 - 339.5 Taholah Branch subject Branch chrony Yellow
chrony CC: Supt., Western Washington Agency W/enclosure Hoquian
Subagency, w/enclosure AIRMAIL May 20, 1964 Commissioner, Bureau of
Indian Affairs Washington, D.C. Attention Branch of Forestry Sir:
We are enclosing the original and one copy of a Stumpage Revaluation
Report dated May 19, 1964, pertaining to the Tobolah Logging Unit
contract, Quainault Reservation, Washington. The report indicates, in
accordance with contract provisions, the trend of economic conditions in
the last Coast logging and lumbering industry have changed to such an
extent that significant increases in stumpage rates are warranted.
Following the fourth quarter of 1962, when the Pacific Northwest
Loggers' Association discontinued publication of quarterly composite log
sale prices, we were left without an established procedure for adjusting
stumpage rates under this contract. Since that time members of our
staff have exerted considerable effort towards formulating a new
procedure.
During the fourth quarter of 1963, it became evident that important
increases were occurring in log market prices as reported by our Hoquimn
Office for the local Grays Harbor market. Further increases occurred
during the first quarter of 1964. In view of these changes it was
decided that a stumpage readjustment report should be prepared using the
relationship between the fourth quarter 1962 local Grays Harbor log
market prices and first quarter of 1964 local Grays Harbor prices. This
relationship was applied to the combined fourth quarter 1962 Puget
Sound-Grays Harbor market prices as reported by PNLA to calculate volume
which were to represent first quarter 1964 Puget Sound-Grays Harbor
prices.
We were in the process of preparing a stumpage readjustment report
based on the procedure mentioned above whom on May 8, 1964, we received
new log price information published by the Industrial Forestry Associa-
tion for the third and fourth quarter of 1963.
After examining the new log price information, it appeared to provide
a better basis for determining log values applicable to this contract
than the calculated values we had proposed to use. The stumpage
adjustment report is, therefore, based on log prices reported by the
Industrial Forestry Association.
In using the IFA log market prices, it became necessary to use fourth
quarter 1963 quotations. The IFA has not published first quarter 1964
quotations and we are not certain when they will become available.
However, the timber contract does not limit us to the number of
adjustments we can make during the year and additional adjustments can
be made if subsequent data indicates such a necessity. We should not
delay the present adjustments in anticipation of higher first quarter
1964 log market prices.
We are in agreements with conclusions drawn in the report and
recommand, in accordance with Section 11 of the Contract, that the
Approving Officer notify the Purchaser and Tribal Representatives of
intentions to increase stumpage rates on July 1, 1964 as follows:
Species ....................... Present Rate .... Recommended Rate
Western redcedar ..................... $9.13 .............. $13.30
Sicks spruce ......................... 15.10 ............... 18.50
Douglas-fir .......................... 32.70 ............... 36.15
White fir (PSF) ...................... 11.70 ............... 13.75
Western White pine ................... 12.40 ............... 13.50
Western hemlock ....................... 9.61 ............... 12.70
Area Director
Enclosure (2) cc: Supt , Western Washington Agency W/enclosure Hoquian
Subagency, w/enclosures KWHadley:du 5/20/64
STUMPAGE REVALUATION REPORT
TAHOLAH LOGGING UNIT
QUINAULT INDIAN RESERVATION
WASHINGTON
SUMMARY OF FINNDINGS AND RECOMMENDATIONS--TAHOLAH LOGGING UNIT
On April 1, 1961, ratio adjustments of stumpage to contract index log
values were made. The ratio adjustments were made with reference to
conditions existing in the fourth quarter of 1960. Since the last
adjustment the character of the operations, market conditions and other
factors have changed to such an extent that increases in existing
stumpage rates are clearly indicated.
Following publication of log market price data for Calendar Year
1962, the Pacific Northwest Loggers' Association discontinued further
publication of log market price data. No automatic adjustments of
quarterly stumpage rates have therefore been possible since the first
quarter of 1963. The loss of the basis for making automatic adjust-
ments coupled with the steady improvement in log prices, particularly
during the past year, has created the situation where present stumpage
rates for the timber on this unit do not properly reflect the true
market value of the stumpage. TABLE OMITTED SEE ORIGINAL BACKGROUND
PERTAINING TO ORIGINAL APPRAISAL AND SALE OF TIMBER
The present Taholah Unit was first appraised in a report dated
November 15, 1948. This appraisal was based on log values (as deter-
mined from past sales) for the first three quarters of 1963. The trend
of log values during the three quarters was largely upward. The average
log values used for the three quarters, however, represent a generally
satisfactory conclusion.
The appraisal was made on the basis of $30.00 per MBM for production
cost. The profit and risk allowance was 15 percent of the cost of
production or $4.50. The results were as follows: TABLE OMITTED SEE
ORIGINAL
The timber was advertised for sale, with bids to be received on July
8, 1949. The approved from of contract for this sale provided that the
stumpage rates bid by the purchaser would remain in effect through March
31, 1950. Thereafter, the rates would be adjusted quarter-annually, so
as to maintain the same percentage relationship, between adjusted
strumpage rates and the changing market value of sawlogs, as that
originally established between the bid stumpage rates and log values for
the fourth quarter of 1948.
No bid were received but a sale of the timber was subsequently
negotiated at the originally advertised stumpage rates and under the
originally approved form of contract.
The negotiated contract was approved May 12, 1950. Consequently, the
bid stumpage rates were immediately modified through operation of the
quarter-annual adjustment provision. Log values had declined from the
fourth quarter 1948 levels, and the stumpage rates immediately effective
were therefore somewhat less than the bid rates, so follows: Bid Rates
.... $ 9.75 . $ 8.75 . $10.85 . $ 3.80 . $ 6.75 . $ 3.90 Rates effective
5/12/50 ... $ 9.65 . $ 8.03 . $ 9.79 . $ 3.49 . $ 5.90 . $ 3.36
STUMPAGE, COST AND PROFIT RELATIONSHIP AT TIME OF SALE
The prices at which this timber was negotiated were immediately
replaced by the automatically adjusted rates that became effective on
April 1, 1950. For this reason, the adjusted rates are a better measure
of stumpage values at the time the timber was sold. These are also the
conditions under which the timber was sold.
Production costs at the time of the appraisal were estimated to be
$30.00. This estimate is considered adequate and will be used for the
purpose of determining the profit and risk factor at the time of the
sale. Log prices used for this purpose were determined from the com-
bined Puget Sound-Grays Harbor District past sales for the first quarter
of 1950 as shown in the following table:
TABLE OMITTED SEE ORIGINAL
At the time of sale, therefore, the following relationships existed
between log values, stumpage rates, production costs, and operator's
profit and risk allowance: TABLE OMITTED SEE ORIGINAL
At the time of the purchase, the profit and risk factor was about ten
percent. This compares with a profit and risk factor of about twelve
percent contemplated in the original appraisal. CONTRACT PROVISIONS
CONDENSED WITH STUMPAGE ADJUSTMENTS
Section 9 of the Taholah contract provides for automatic adjust- ment
of stumpage rates for each quarterly period beginning January 1, April
1, July 1, and October 1. The specified percentages of grades of logs
for each species were applied to the quarterly changes in log prices
from combined sales in the Grays Harbor and Puget Sound Log Markets to
obtain the average log price. The average log price for each species
was then applied to the established ratio to obtain the stumpage rate.
Following the publication of Log Market Price Data for Calendar Year
1962, the Pacific Northwest Logger's Association discontinued further
publication of log market price data. No automatic adjustments of
quarterly stumpage rates have therefore been possible since the first
quarter of 1963.
Section 11 of the contract new appears to be controlling in future
stumpage adjustments. This section reads as follows:
"NOTWITHSTANDING any other provisions of this con-
tract, it is mutually agreed that, in the event
the said Pacific Northwest Loggers Association's
Composite Sales Analyses become unavailable for
use in connection with these stumpage readjust-
ments, or in the opinion of the Secretary or his
duly authorized representative do not properly
reflect the true market value of the forest
products, the secretary or such representative
shall at any time, after giving thirty days'
notice to the Purchaser during which time the
Purchaser may consult with the Secretary or such
representative, proceed to revise stumpage rates
in accordance with the trend of economic condi-
tions in the west coast logging and lumbering
industry, provided that the requirements of notice
in this section shall be satisfied when the new
rates established under its authority are made
effective thirty days after notice by the Secretary
or such representative to the Purchaser that he in-
tends to proceed under the authority of this Section
to adjust such stumpage rates.
PREVIOUS STUMPAGE ADJUSTMENTS
Subsequent to the approval of the Taholah Logging Unit contract on on
May 12, 1950, five separate adjustments in the ratios set forth in the
contract have been made. These adjustments became effective October 1,
1955, April 1, 1957, April 1, 1958, July 1, 1960, and April 1, 1961.
In previous reports of stumpage ratio adjustments, we have attempted
to maintain approximately the same profit and risk factor as was
indicated at the time of the sale. Combined Grays Harbor, Puget Sound
log prices, as published by PNLA, have been used in determining changes
in log values. U. S. Forest Service logging costs have been used in
determining changes in production cost and the actual species and log
grade recovery over a three-year period immediately preceding the
adjustments have been used to determine changes in log quality and
species composition. TREND OF ECONOMIC CONDITIONS IN THE WEST COAST
FOREST PRODUCTS INDUSTRY Product Values
Exhibit A in the appendix indicates that the average realization on
lumber shpments from the Douglas-fir Region of Western Washington,
Western Oregon,and Northern California has increased from $68.22 per MBM
during the fourth quarter of 1960 to $75.00 per MBM during the fourth
quarter of 1963. This represents an increase of $7.31 per MBM. This
information was taken from the West Coast Lumberman's Association
publication Industrial Facts.
Exhibit B reveals that the U. S. Department of Labor Wholesale Price
Index (08-13-61.06), Cedar Bavel Siding Clear (1957-59 - 100) has
increased from 87.9 in the fourth quarter of 1960 to 97.0 in the fourth
quarter of 1963. This represents an increase of 9.1.
Exhibit C shows the U. S. Department of Labor Wholesale Price Index
(08-13-66.06) Cedar Shingles No. 1 (1957-59 - 100) has increased from
89.1 in the fourth quarter of 1960 to 121.7 in the fourth quarter of
1963. This represents an increase of 32.60.
Exhibit D, index price for western redcedar lumber, shows that the
average price per MBM has increased from $62.03 in the fourth quarter of
1960 to $72.09 in the fourth quarter of 1963. This represents an
average increase of $10.06 per MBM.
This index is calculated in the Portland Area Office and is based on
lumber prices reported in the publication Random Lengths.
Exhibit E, Index price for western redcedar shingles, shows that the
realization value for shingles produced from No. 2 cedar logs in-
creased from $92.57 per MBM during the fourth quarter of 1960 to $123.95
per MBM during the fourth quarter of 1963. This represents an increase
of $31.38 per MBM.
This index is calculated in the Portland Area Office and is based on
shingle prices reported in the publication Random Lengths.
Exhibit F, Local Log Prices, Grays Harbor, Washington, shows that in
general there have been increases in local Grays Harbor log price
quotations. This information is collected by representatives in our
Hoquiam Office.
Between the fourth quarters of 1960 and 1963, No. 2 cedar shows a
$7.00 per MBM increase while No. 3 cedar shows a $2.00 per MBM in-
crease. No increase is shown for No. 1 cedar. It is interesting to
note that an additional $3.00 increase for both No. 1 and 2 cedar is
indicated between the fourth quarter 1963 and the first quarter 1964.
Significant chages for most agencies are indicated between fourth
quarter 1960 and fourth quarter 1963 log prices, especially for the
lower grade logs.
Exhibit G, index price for western hemlock lumber, shows that the
average price per MBM has increased from $53.39 in the fourth quarter of
1960 to $63.23 in the fourth quarter of 1963. This represents an
average increase of $4.84 per MBM.
This index is calculated in the Portland Area Office and is based on
lumber prices reported in the Random Lengths publication. The exhibit
has not been fully developed but it does show differences between the
two quarterly periods being considered in this report.
The final quarterly report of the Pacific Northwest Loggers'
Association included prices for logs sold during October, November, and
December 1962. The reporting included about 92 million board feet of
logs sold in the Puget Sound District and about 40 million board feet of
logs sold in the Grays Harbor District.
We are not fully aware of the reasons for the Pacific Northwest
Loggers' Association's decision to cease publication of log market
prices. We are aware that following nearly a year in which the type of
reports previously published by the PNLA were unavailable the Industrial
Forestry Association agreed to take over the task of publishing a
similar report. We have been advised that invoices previously collected
by PNLA have been turned over to the Industrial Forestry Association.
We believe the reporting base of the I.F.A. to be quite similar to the
reporting base of the PNLA.
The fourth quarter 1963 reporting by the I.F.A. includes about 71
million board feet of logs sold in the Puget Sound District and about 58
million board feet of logs sold in the Grays-Willapa Harbor District.
The following table shows the average weighted log grade prices reported
by the Pacific Northwest Loggers' Association for the combined Puget
Sound-Grays Harbor, fourth quarter 1960, and the average weighted log
grade prices reported by the Industrial Forestry Associa- tion, fourth
quarter 1963. TABLE OMITTED SEE ORIGINAL Production Costs
During recent years, log production costs have remained relatively
stable. Operators have been able to offset increased labor cost to a
considerable degree by increased efficiency and mechanization. Exhibit
H shows average logging and overhead cost reported by the Bureau and the
U.S. Forest Service for the years 1959 through 1962. The logging costs
reported by the U.S. Forest Service have been adjusted to include
increases in labor cost during 1962 and 1963.
In past adjustments U.S. Forest Service cost information has been
used in determining changes in the cost of log production. At the
present time there is very little difference between the average cost
reported by the U.S.F.S. and our average cost. However, U.S.F.S. Costs
were used in past adjustments because they represented A broader base
and it was felt that the broader base would provide a better measure of
any change in logging cost. We will therefore continue to use U.S.F.S.
cost data in this adjustment study.
CURRENT DETERMINATION OF STUMPAGE VALUES-UNDER THE TAHOLAH LOGGING
UNIT CONTRACT. Log Values
Since Pacific Northwest Loggers' Association's Composite Sales
Analysis is no longer available, future adjustments of stumpage must be
made in accordance with the the provisions of Section 11 of the
contract. This section of the contract, which is quoted in its entirely
on page 5 of this report, provides in part that the Approving Officer
shall revise stumpage rates in accordance with the trend of economic
conditions in the West Coast logging and lumbering industry.
After reviewing the various exhibits, it appears obvious that since
the last stumpage adjustment, significant increases have occurred in the
values of products produced by West Coast forest products industries.
These increases pertain to logs produced by logging operators as well as
finished products such as lumber and shingles produced by mill
operators. In our judgment the best known basis, available to us at the
present time, for determining fourth quarter 1963 log values is the
Composite Log Sales Analysis published by the Industrial Forestry
Association. The Association's publications for the Puget Sound and
Grays-Willapa Harbors Districts appear to reflect log sale transactions
comparable to those previously reported by the Pacific Northwest
Loggers' Association for the Puget Sound and Grays Harbor Districts.
The average weighted log grade prices reported for the combined Puget
Sound-Grays Harbor District markets during the fourth quarter of 1960
and related prices reported by the Industrial Forestry Association
during the fourth quarter of 1963, appear on page 8 of this report.
Overall, the indicated increases compare favorably with the changes
which have occurred in the local Grays Harbor market prices. It is our
opinion that weighted averages for the Puget Sound-Grays-Willapa Harbor
Districts as reported by the Industrial Forestry Association are
representative of log sales values previously used in adjusting stumpage
rates under this contract and are sufficient for use in measuring the
relative present value of the timber involved.
To date, the Industrial Forestry Association has compiled composite
log sales information for the Puget Sound, Grays-Willapa Harbor and
Columbia River Districts for the third quarter of 1963. The Association
has compiled similar information for the fourth quarter of 1963 except
for the Columbia River District. We are advised that the Association is
endeavoring to bring their information for all districts up to date as
soon as possible. After they have their information up to date, they
expect to publish quarterly reports approximately twenty-five days
following the ending of the reporting period. Log Quality & Species
Composition
Numerous points of view have been expressed as to the log grades that
should be used in any determination of stumpage values under this
contract. After considering all factors involved, it has been concluded
that the fairest system for all concerned is to base the log grade
percentages for this study on the average grade recovery for the last
three calendar years. This procedure will result in stumpage values
that currently reflect the quality of timber being logged and will tend
to minimize so-called "high grading" on the part of the Purchaser. It
will also protect the Purchaser as he removes some of the lower quality
timber stands. Use of the three-year average is preferred to use of a
five-year average as it will reflect more rapidly any appreciable
changes in the cutting pattern.
Average log grades produced by species during the three-year period
ending December 31, 1963, is generally of lower quality than was
recovered during a preceding three-year period ending December 31, 1960.
This lowering of quality will account for a smaller indicated increase
in stumpage values than might otherwise be expected had the quality
remained comparable to that used in the previous adjustment.
Log grade recovery data and species composition for the three-year
period ending December 31, 1963, appears as Exhibit I. Logging Cost
Logging cost estimates used in this report are based on separate
computations for cedar as opposed to hemlock and other species, since
D.B.H., log size and amount of defect are much greater in western
redcedar than in hemlock and other species. The amount of defect and
size of timber directly affect falling and bucking, yarding and loading,
and log transportation cost. The study of logging cost is on file at
the Hoquiam Subagency, and a summary of these costs appears as Exhibit J
in the Appendix of this report. The total logging costs used in the
report are $33.92 for cedar and $32.70 for hemlock and other species.
Profit and Risk Factor
It was shown on page 4 of this report that at the time of purchase of
timber, conditions were such that the operator had established a profit
and risk factor of 1.1022. Any adjustment of stumpage rates which will
result in maintaining this factor will be relative to conditions under
which the timber was purchased as well as relative to conditions under
which previous adjustments have been made.
In past adjustments, no attempt has been made to retain the exact
relationship of one species to another as was derived for the time of
purchase, as many of these relationships were accidental and there is
considerable interdependence between the species. Thus, stumpage rates
in past adjustments have been made, as will be made in this report, in
such a way as to obtain a reasonable distribution of stumpage values and
still maintain the overall average 1.0p established at the time of
purchase. CURRENT STUMPAGE ADJUSTMENT BASED ON RELATIVE RELATIONSHIPS
Sufficient information is now available to establish the stumpage
values for timber on the Taholah Unit with relation to conditions at the
time of purchase. A detailed appraisal of the various species involved
using the average 1.0p established at the time of purchase appears as
Exhibit K of this report. Fourth quarte 1963 average log values for the
Puget Sound-Grays-Willapa Harbor Districts have been weighted by
percentage of volumes produced from the Taholah Unit during the
three-year period ending December 31, 1963. The resulting computa- tion
of the average log price by species as used in the appraisal appears as
Exhibit L. Estimated logging cost for the Taholah Unit appears as
Exhibit J. A summary of the appraisal and recommended stumpage rates is
shown on the following pages.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL Average Realization on West Coast Lumber
Shipments. (Total avg. realization on lumber shipments from the
Douglas-fir Region of Western Washington, Western Oregon, and Northern
California.)
--West Coast Lumbermen's Association publication Industrial
Facts-- TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
(Based on Prices Published in Random Lengths)
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
(Based on Lumber Prices Reported in Random Lengths)
TABLE OMITTED SEE ORIGINAL
AVERAGE WEST SIDE LOGGING AND OVERHEAD COSTS
REPORTED BY THE BUREAU OF INDIAN AFFAIRS
TABLE OMITTED SEE ORIGINAL
have been adjusted to include increases in labor cost during 1962 and
1963.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL TAHOLAH UNIT - Appraised Stumpage Rates Using
Average 1.op Established At time of Sale and Combined Puget Sound and
Grays-Willapa Harbor Districts Composite Log Sales Analysis for the 4th
Qtr. 1963. TABLE OMITTED SEE ORIGINAL
PUGET SOUND--GRAYS--WILLAPA HARBOR DISTRICTS
TABLE OMITTED SEE ORIGINAL
HES-004-0402-0432
HES-004-0402-0432
IIJ64.1
COMM OF INDIAN AFF ; BR OF FORESTRY
621212
CORRESPONDENCE
DRUMMOND, JOHN F
UNITED STATES GOVERNMENT Memorandum
TO : Area Forester December 12, 1962
FROM : John P. Drummond
SUBJECT: Request of the President of Aloha Lumber Corporation that
certain areas of predominately submerchantable timber within tthe
Taholah Logging Unit be designated for cutting on a cordwood basis.
I spent December 5 and the morning of December 6 on the Quinault
Reservation. The main purpose of my trip was to study with Messrs.
Libby and Clark Mr. Paul R. Smith's request that certain areas of
predominately "substandard" timber within the Taholah Logging Unit be
designated for production on a cordwood basis
The original contract provides for the sale of "all the merchantable
dead timber, standing or fallen, and all the merchantable live timber,
marked or otherwise designated by the officer in charge for selective
logging, as required by the General Timber Sale Regulations, comprising
trees approximately 14 inches and larger at a point 4 1/2 feet from the
ground, located on allotted lands covered by contracts # # #."
The modification approved March 21, 1956, provide for salvage logging
and prelogging of certain areas. The prelogging portion of the
modification contains the following statement:
"Timber removed in such prelogging operatons may be produced in the
form of cordwood from standing or down timber of any size and will be
paid for at the contract rate per M board feet established for saw
timber for each species. # # #."
For several years, Mr. Smith, President Aloha Lumber Corporation, has
requested that we take some action to make it possible for him to log
the so-called "substandard areas" at reduced stumpage rates. In
determining whether or not this is feasible, many things have to be
taken into consideration. A number of the items which we considered are
as follows:
1. The present contract requires that the purchaser shall cut
and pay for timber 14 inches and greater in d.b.h.
2. The allottees were informed that they would receive one
price for each individual species regardless of quality.
3. Current revaluation procedures (using the average log grades
removed from the unit during the past three years) provide for an
adjustment of the stumpage rates in accordance with the quality of
timber cut.
4. The so-called "substandard areas" would have to be definitely
described and marked on the ground. Material presently considered
merchantable could not be included with the so-called "substandard
material."
5. The original contract spproved 5/12/50 expires 4/1/79. The
original estimate was 545 million feet. The cut to date is
approximately 400 million feet. The volume of clearly
merchantable timber remaining to be cut on this unit is in excess
of one billion feet. The maximum allowble cut under the terms of
the contract is one hundred million feet every three years. It is
evident that the purchaser will not be able to remove all of the
timber designated in the timber inventory as merchantable by the
end of the contract period.
6. By the end of the contract period, market conditions may be
changed so that the so-called "substandard material" may be
merchantable.
7. Roads built and amortized while logging the merchantable timber
will affect the future value of the "substandard material."
8. All the timber on the unit is in allotments, many of which
involve several different owners. If the contract were modified
to provide for logging the "substandard material," the problem
would have to be thoroughly explained to each allottee and his
consent obtained if he wished his allotment contract to come under
the modification.
9. In examining these areas on the ground, it became apparent
to us that the most difficult problem would be to locate lines
between the merchantable areas and the "substandard areas."
10. It appears that the administration of the contract involving
separate prices for so-called "substandard areas" would be
extremely difficult, if not impossible.
In short, it was the consensus of the group, consisting of Messrs.
Libby, clark, Woll, and myself, that no further consideration should be
given the possibility of modifying the contract so the purchaser can log
the so-called "substandard areas." We further believe that Mr. Smith
should be informed of the fact that we have given this matter
consideration and have come to the conclusion that an adjustment of the
present contract in the near future to provide for the logging of these
"substandard areas" appears most unlikely.
Attached is a copy of a draft prepared by Art Woll showing the
volumes of what is considered to be a representative stand of the
"substandard material." Note that the cordwood material averages only
5.55 cords per acre, of which 70 percent is western red cedar.
/s/ John P. Drummond
John P. Drummond
Enclosure
cc:
Superintendent Western Washington Agency
Noquiam Subagency
The following cruise information has been compiled from a 20 percent
sample on 17 acres of a portion of allotment no. 1777, described as SE
1/2 SW 1/4 Section 15, Township 22 North, Range 12 West. The type
sampled was C3=c4w4, which is one of the poorer types within the small
merchantable class indicated in the 1961 Taholah Inventory Report.
Saw-timber data is based on 16 foot logs for any tree containing 50
board feet or more, usually any tree 14" D.B.H. or larger. Trees
containing less than 50 board feet were cruised for cordwood (cubic
foot) content down to and including 8" D.B.H. and 4" merchantable top.
TABLE OMITTED SEE ORIGINAL
Average Vol./Acre = 522 cu. ft. (5.55 cords) Aver. March.
Ht. = 1.5 (16' logs)
Average Vol./Tree = 8 cu. ft. (.085 cords) No. Trees/Acre = 65
Average D.B.H. = 9.6"
Total Board Foot Volume per Acre = 3,010 saw-timber
.....................................+ 2,775 (500 bd. ft. = 1 cord)
.......................................5,785 board feet
84 trees per acre down to 8" D.B.H. and 4" top.
HES-004-0433-0436
HES-004-0433-0436
IIJ62.1
AREA FORESTER
610100
CORRESPONDENCE
INVENTOR SECTION ; W WASH AGENCY
INVENTORY OF THE TAHOLAH LOGGING UNIT
DOCUMENT MISSING HES-004-0438
E. Merchantability and grade ............................ 9
F. Form class ........................................... 9
G. Tree condition ...................................... 10
H. Species ............................................. 10
I. D.B.H ............................................... 10
J. Number of logs ...................................... 11
K. Grade by log position ............................ 11-13
L. Deduction ........................................... 13
IV. Summary of Results ....................................... 14
by primary species ......................... 14
B. Net volume and grade analysis of merchantable
of species ................................. 16
statistical values ......................... 16
merchantable logs by species ............... 16
IV. Summary of Results (continued) ............................ Page
C. Hardwoods ................................................ 17
D. Net volume and grade analysis of small
merchantable stands (defined as volume
stratum 6, see page 7) .................................. 18
Table 9 - Volumes and log grades by species ............. 18
Table 10 - Volumes and percent representation
of species ................................... 19
Table 11 - Average volume per acre and
statistical values ........................... 19
Table 12 - Average diameter and number of
merchantable logs by species ..................19
Table 13 - Volumes and log grades for
merchantable and small merchantable stands 19a
E. Net volumes as of January 1, 1960 .........................20
Table 14 - Volumes logged as of January 1, 1960 ..........20
Table 15 - Volumes logged between June 1, 1958
and January 1, 1960 ...........................20
Table 16 - Volumes and percent representation
of species unlogged as of January 1,
1960 ..........................................20
Appendix
Exhibit A - Plot Record Card ................................21
Exhibit B - Forest type classification .......................22
Exhibit C - Acreage adjustment ............................ 23-25
Exhibit D - Code information ............................. 26-27
Exhibit E - Form class .................................... 28-29
Exhibit F - Land area by cover type .......................... 30
Exhibit G - Formulas for statistical analysis ................ 31
Exhibit G1 - All merchantable timer .......................... 32
Exhibit G2 - Merchantable western redcedar ................... 33
Exhibit G3 - Merchantable western hemlock .................... 34
Exhibit G4 - Small merchantable .............................. 35
On May 12, 1950, a long term contract was approved for the sale of
timber on the Taholah Logging Unit. Quinault Indian Reservation, to
Aloha Lumber Corporation. The contract specifies that all timber will
be cut and paid for by April 1, 1979.
The contract was based on volumer obtained from a 1916 inventory
"Cut-out" information and recent cruising experience showed these
volumes to be very conservative, thus necessitating a re-inventory.
This re-inventory was necessary to obtain accurate estimates of
volumes and log grade percentages. This information is essential to
re-establish maximum annual cuts that will provide for the orderly
harvest of all the timber within the contract period, and to revalue
stumpage rates commensurate with the quality of timber being logged.
The data obtained by the inventory will also substantially aid the
location and size of logging block layouts that are required annuaily.
Our Forestry staff used a random method of forest sampling by aerial
photographs to complete this inventory. One hundred and one 1/2 acre
rectangular plots were randomly selected in the merchantable stand on a
1" to 1000' scale planimetric timber type map. All merchantable trees
12" D.B.H. and larger, containing a 16' log, were recorded by 2"
diameter classes. Mason, Bruce and Cirard Form Class Volume Tables for
32' logs were used to obtain Scribner volume. The use of these tables
necessitated a form class study. This study consisted of direct form
class measurement where possible on down timber and angle guage
measurements on standing trees. All volume computations were made by
"650" IBM machine. Average volume per acre on these merchantable stands
equaled 58,380 board feet plus or minus 4,680 board feet (101 cases).
This means that if an additional 99 samples of 101 cases each were
taken, using the same standards, the average of 95 of the samples would
fall between 53,700 board feet per acre and 63,060 board feet per acre,
unless all in 20 chance occurred. The total net volume (June 1, 1958)
divided by the total unlogged forest land acreage gives an average
volume of 45,488 board feet per acre for all the unlogged area within
the logging unit. Since the inventory was based on the over-all logging
unit, and not by individual allotments, it can only be used as a guide
or starting point for determining volumes on areas as small as 80-acre
allotments or logging blocks.
AREA OF FOREST LAND BY GENERAL TYPE TABLE OMITTED SEE ORIGINAL AREA OF
MERCHANTABLE FOREST LANDS BY PRIMARY SPECIES TABLE OMITTED SEE ORIGINAL
VOLUMES AND PERCENT REPRESENTATION OF SPECIES UNLOGGED AS OF JANUARY 1,
1961
Species ......................... Met Volume .......... % of Total
........................................ MBM .....................
Western redcedar ................... 640,505 ................ 63.9
Western hemlock .................... 271,907 ................ 27.1
Pacific silver fir ............... 54,517 ................. 5.4
Sitka spruce ........................ 28,212 ................. 2.8
Western white pine ................... 7,886 ................. 0.8
.................................. 1,003,027 ............... 100.0
PHOTOGRAPH OMITTED SEE ORIGINAL
A cedar stand of good quality, typed C4(illegible). The Large cedar
trees averaged about 48" in diameter and the stand averaged
approximately 78 MBM per acre. Estimated log grade recovery about 85
percent No. 2 logs. PHOTOGRAGH OMITTED SEE ORIGINAL
A good quality mixed stand of western redcedar, Pacific silver fir
and western hemlock. Estimated grade recovery: western redcedar - 75%
No. 2 logs; Pacific silver fir - 4% No. 1 logs and western hemlock - 6%
No. 1 logs. Average volume per acre about 75 MBM. PHOTOGHRGH OMITTED
SEE ORIGINAL
A typical hemlock stand averaging approximately 50 MBM per acre.
Diameters average about 24", with an estimated grade recovery of 3
percent peeler logs. PHOTOGRAGH OMITTED SEE ORIGINAL
Down cedar like shown above was disregarded in earlier cruises and
inventories. Cut-out records show this to account for a considerable
volume of high quality cedar. (See Tables 9 & 10) Estimated grade
recovery about 75% No 2 logs PHOTOGRAGH OMITTED SEE ORIGINAL
A small merchantable stand typed C4=C3 averaging approximately 17 MBM
per acre. Stands such as these pose a problem because logging costs for
large operators exceed the present contract stumpage for sawtimber.
PHOTOGRAGH OMITTED SEE ORIGINAL A non-merchantable stand byyped C2=W3.
These stands average less than 5 MBM per acre and only the lowest grades
would be represented in this type. MAP OMITTED SEE ORIGINAL A large
cedar over 60" in diameter being felled. An average tree such as this
will have a net content of about 4 MBM
INVENTORY OF THE TAHOLAH LOGGING UNIT
I. FIELD PROCEDURES
A. Plot Location - Plots were located on a 1" to 1000'
timber type map. (Method described to Office Procedures.)
1. The initial step in plot location was selection of a
2. A bearing and distance was scaled from the reference
3. A wooden post was driven into the ground at the starting
4. The center line and side distances were chanined with a
5. Orange cloth ribbon was used to mark the center line and
6. Location of the starting point and direction of the plot
B. The Cruise
1. Mason, Bruce and Girard volume tables for 32' logs were
2. A plot record card was devised to fit the situations
B. The Cruise (Cont.)
3. The cruise plots were rectangular in shape and 1/2 acre,
4. D.B.H. and Height
down to and including 12" diameter class.
were made to record 1/2 log (16') where only 1/2
log existed or where 1/2 log could be cruised at
the top of the tree.
5. The plots were cruised from the starting post and a logical
C. Sample trees were taken for age and site determinations.
1. In size classes 2 and 3, it was necessary to take two
2. Height of the sample tree was either dominant or codominant
3. The following information was recorded
4. Form class tree
before the inventory commenced.
gauge.
4. Form class tree (Cont.)
on the plot that represented the primary type.
determination.
1. Species.
2. D.B.H. to nearest 1/10 of an inch.
3. A-A' (distance between sightings) record to 1/10
of an inch.
4. Bark thickness (at D.B.H.0.
5. Record angle factor used.
D. Non-IBM information was recorded above the heavy black line
plot record card. (See Exhibit A)
1. Plot number - Actual number except small merchantable,
2. Subdivision - See the numbering system as illustrated in
3. Section, Township, Range - Used actual numbers.
4. Photo number - Flight number dash picture number - example
5. Type - Recorded local type from type map.
6. Cruiser - Last names of cruiser (chief of party) and
7. Slope - Slope was determined by Leupold hand level and
8. Aspect - See the Code Section.
9. R.P. - Description of starting reference point was
10. Bearing and Distance - Bearing and distance from R.P. to
D. Non-IBM Information (Cont.)
11. Sample trees - Information was recorded in blocks provided.
12. Form class - Information on form class was recorded on
II. OFFICE PROCEDURES
A. The timber type map was prepared from aerial photographs taken
in 1950 by C. M. Berry at a scale 1:12.000 with a 12" lens.
A portion of the base map was constructed from vertical aerial
photographs using stereo photogrammetric techniques. The
remaining portion of the base map was developed from a U.S.
Geological Survey Quadrangle sheet controlled by U. S. Coast
and Geodetic Survey triangulation stations. Type lines and
planimetric detail were transferred from the photographs to
the base map by means of a Kail Radial Line Plotter.
B. Timber typing was done in accordance with Forest Service type
classification. (See Exhibit B)
C. Photo and ground checks were made to authenticate type calls.
D. Type map was brought up to date with new photography.
1. The new photography was taken in 1958 by Airview
2. Section corners were pin-pointed and tied to the
3. Principal and contugate points were marked on the
E. Number of Plots needed
1. Merchantable - Volume starts 1 through 5 (See volume
deviation.
c = coefficient of variations, a = sampling error,
n = 101 plots.
2. Small merchantable - Volume stratum 6 (See volume stratum
F. Casting of plots by random numbers
1. A 10-acre grid was constructed on a 1" to 1000' type map.
2. Table of random numbers
Forestry and Range Management by F. X. Schumacher
and R. A. Chapman, publishe 1954.
the second 2 were horizontal. This arrangement was
reversed on the second running.
G. Acreage Count
1. A "modified acreage grid", sixty-four dots per square inch,
2. The type acreage was adjusted to correspond with legal
3. A factor for width per one hundred feet of lineal distance
H. An IBM test case involving comparison of IBM processed data to
original volume table was made during the Crane Creek Inven-
tory. The results of this comparison were excellent.
I. Cost Analysis
1. Personnel costs were based on number of hours worked times
2. Vehicle costs were based on an average trip of 96 miles at
$7.68 x 30 days----------------------------- 230.40
3. Miscellaneous costs included two woven metallic cloth tapes
4. IBM Cost
DOCUMENT OMITTED SEE ORIGINAL
B. Site - Will be a one digit code recorded in the office, based
on field determinations.
C. Plot No. - Record as four digit code.
1. In the Crane Creek Unit, the first digit will always be
Plot No. Coded
Plot No. 2 7002
Plot No. 110 7110
2. In the Taholah Unit, the first digit will always be coded
Plot No. Coded
Plot No. 207 8207
Plot No. 320 8320
3. For allotment cruises the actual allotmen number will be
Coded
Allotment No. 108 0108
Allotment No. 1 0001
Allotment No. 1416 1416
D. Expansion Factor - Expansion factor record as ond digit code.
1. For the Crane Creek and Taholah projects, the expansion
D. Expansion Factor (Cont.)
2. For allotment cruises, the percent of the allotment cruises
% Cruise Expansion Factor
10 10
20 5
25 4
50 2
E. All data below the line "All merchantable trees 11.0" will be
entered with each tree measured on the plot being recorded as
a single line entry. Do not record unmerchantable trees.
Merchantable timbers are pieces twelve feet and longer, and
trees to a diameter of ten inches in the tops where the tree
is more than 33-1/3% sound. The grading is based on the
official Log Scaling and Grading Rules for the Puget Sound
Log Scaling and Grading Bureau, Grays Harbor Log Scaling and
Grading Bureau, Southern Oregon Log Scaling and Grading Bureau,
Northern California Log Scaling and Grading Bureau, and
Tillamook County Log Scaling and Grading Bureau. This publica-
tion was effective January 1, 1954.
F. Form class will be recorded as two digit code. Form class by
species will be determined by field samples before the inven-
tory commences. Provisions will be made to take a sample of
form class on each plot. This sample will be correlated with
the original field determinations. Form class will be left
blank in the field.
Example -
Form Class Code
70 70
63 63
G. Tree Condition - Record as one digit code.
Example -
Tree Condition Code
Merchantable live trees 0
Merchantable dead and standing 8
Merchantable dead and down 9
H. Species - Record as one digit code.
Example -
Species Code
Western hemlock 1
Sitka spruce 2
Pacific silver fir 3
Western redcedar 4
Douglas-fir 5
Red elder 6
Black Cottonwood 7
Western white pine 8
Lodgepole pine and all others 9
I. D.B.H. - Record as three digit code. Measure diameters of all
merchantable trees over 11 inches D.B.H. and record by 2 inch
class.
Example -
Measurement Code
11.0 to 12.9 012
23.0 to 24.9 024
135.0 to 136.9 136
J. No. of Logs - Record as two digit code. One-half logs
(16 feet) will be converted from fractions
to decimal.
Examples -
No. of Logs (32') Code
2 20
4-1/2 45
5 50
K. Grade by Log Position, 32' logs - This portion of the card is
divided into seven groups which represent 32 foot logs by
their log position in the tree. In other words, block 1 would
represent the butt log in a five log tree, while block 5 would
represent the top log. This seven groups are further divided
into the following:
1. L.G. - Log grade will be recorded as a one digit code by
16 foot logs.
Log Grade Code
No. 1 Sawmill 1
No. 2 Sawmill 2
No. 3 Sawmill 3
Select & No. 1 Peeler 7
No. 2 Peeler 8
No. 3 Peeler 9
Cull or missing logs 6
representing a 16-foot log. The log grading will be
done by 32 foot except for one-half logs at the top of
trees. All grading will be recorded by 16-foot logs.
In other words, all 32-foot logs will have the same
grade on both sides of the dashed line, except for
16-foot culls or missing logs.
Example -
TABLE OMITTED SEE ORIGINAL
The log grades will be recorded by 16-foot logs. To
make it easier to check plot card entries, all logs
must be graded or culled to balance this section with
the number of logs column.
K. Grade by Log Position (Cont.)
2. Percent defect will be recorded as a one digit code.
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
L. Deductions - For breakage and hidden defect will be made after
IBM processing.
IV. SUMMARY OF RESULTS TABLE OMITTED SEE ORIGINAL Table 5 - Volumes and
Log Grades by Species TABLE OMITTED SEE ORIGINAL
Table 6 - Volumes and Percent Representation of Species TABLE OMITTED
SEE ORIGINAL
Table 7 - Average Net Volumes per Acre and Statistical Values TABLE
OMITTED SEE ORIGINAL
Table 8 - Average Diameter and Numver of Merchantable Logs by
Species Species ............ Av. Dismeter Av. No. Merch
.............. Samples ................................. .. Logs (32')
...................... Western redcedar .......... 33.0" ......... 1.8
.......... 2,352 cases Western hemlock ........... 21.1" ......... 1.9
.......... 1,490 cases Pacific silver fir ........ 20.8" ......... 1.9
............ 295 cases Sitka spruce .............. 34.5" ......... 3.0
............. 42 cases Western white pine ........ 21.0" ......... 1.9
............. 57 cases Lodgepole pine ............ 13.5" ......... 1.0
.............. 4 cases
.......................................................... 4,240 cases
All species added together gives 80 trees per acre, excluding down
cedar, and an average D.B.M. of 27.6 inches.
C. Douglas-fir and black cottonwood
The remaining Douglas-fir volume is found as isolated trees
scattered throughout the eastern half of the unit. Because of
the small remaining volume and the scattered condition, it was
decided not to survey the remaining Douglas-fir.
The majority of the merchantable hardwoods had already been
removed prior to the inventory. The removed volume of hard-
woods amounted to 128 MBM of black cottonwood. Black cotton-
wood is not indicated in the volume summaries, because no plots
were taken in the 6.21 acres of this type remaining in the
unit.
D. Net Volume and Grade Analysis of Small Merchantable Stands
Table 9 - Volumes and Log Grades by species
TABLE OMITTED SEE ORIGINAL Table 10 - Volumes and Percent Representation
of Species Species .................. Net Volume ...... % of Total
........................... M Bd. Ft. ................. Western redcedar
(live) ...... 40,256 ............ 59.6 (73.5) Western redcedar (dead
stand.) 6,247 ............. 9.3 Western redcedar (dead down) .. 3,073
............. 4.6 Western hemlock ............... 8,381 ............
12.4 Pacific Silver fir .............. 883 ............. 1.3 Sitka
spruce .................... 491 ............. 0.7 Western white pine
............ 7,547 ............ 11.1 Lodgepole pine ..................
615 ............. 1.0 .............................. 67,493 ...........
100.0 Table 11 - Average Net Volume per Acre and Statistical Values
Average Volume per Acre ..................... 16.51 MBM Coefficient of
Variation .................... 52.8% Accuracy (Sampling error)
................... 21.7% Av. Vol./Acre = 16,610 Bd. Ft. + 3,560 Bj. Ft.
(25 cases) Table 12 - Average Diameter and Number of Merchantable Logs
by Species Species ...............Av. Diameter Av. No. Merch ..........
Samples Western redcedar ............ 22.8" ..... 1.2 .............. 716
cases Western hemlock ............. 15.2" ..... 1.2 .............. 191
cases Pacific silver fir .......... 18.7" ..... 1.5 ................ 9
cases Sitka spruce ................ 16.9" ..... 1.4 ................ 9
cases Western white pine .......... 20.1" ..... 1.7 ............... 65
cases Lodgepole pine .............. 15.2" ..... 0.9 ............... 15
cases All species added together gives 78 trees per acre, excluding down
cedar, and an average rage M.B.M. of 20.9 inches. Table 13 - Volumes
and log Grades for Merchantable and Small
TABLE OMITTED SEE ORIGINAL
E. Volumes as of January 1, 1961 Table 14 - Volumes logged as of
January 1, 1961 TABLE OMITTED SEE ORIGINAL Table 15 - Volumes logged
between June 1, 1958 and December 31, 1960 TABLE OMITTED SEE ORIGINAL
Table 16 - Volumes and Percent Representation of Species Unlogged as of
TABLE OMITTED SEE ORIGINAL TABLE OMITTED (EXHIBIT A) TABLE OMITTED
(EXHIBIT B)
FOREST TYPE CLASSIFICATION
1. Stand-Size Classes and Symbols
TABLE OMITTED SEE ORIGINAL
2. Timberland Types and Symbols
TABLE OMITTED SEE ORIGINAL
3. Density of Stocking Classes and Symbols
TABLE OMITTED SEE ORIGINAL EXHIBIT C - ACREAGE ADJUSTMENT OF AREA
SUBJECT TO TAHOLAH CONTRACT TABLE OMITTED SEE ORIGINAL EXHIBIT C
(Continued) Gross, Net and Uncontracted Acreage by Section on the
Taholah Unit. Authority - Township Plots, Office of the Surveyor
General, Olympia, Washington. (Plots will be found in safe.) TABLE
OMITTED SEE ORIGINAL EXHIBIT C (Continued) TABLE OMITTED SEE ORIGINAL
EXHIBIT D - IBM CODE Volume Stratum - TABLE OMITTED SEE ORIGINAL Plot
Number - TABLE OMITTED SEE ORIGINAL Tree Condition - TABLE OMITTED SEE
ORIGINAL Species - TABLE OMITTED SEE ORIGINAL EXHIBIT D (Continued)
Grade - TABLE OMITTED SEE ORIGINAL EXHIBIT E - Average Form Class by
Species as derived from Measurements
TABLE OMITTED SEE ORIGINAL EXHIBIT E (Continued) TABLE OMITTED SEE
ORIGINAL EXHIBIT F - LAND AREA BY COVER TYPE TABLE OMITTED SEE ORIGINAL
EXHIBIT G - Formulas for Statistical Analysis TABLE OMITTED SEE ORIGINAL
EXHIBIT G1 - STATISTICAL ANALYSIS NET VOLUMES D.C. ALL MERCHANTABLES
TABLE OMITTED SEE ORIGINAL EXHIBIT G2 - STATISTICAL ANALYSIS NET VOLUME
D.C. CEDAR MERCHANTABLE
TABLE OMITTED SEE ORIGINAL EXHIBIT G3 - STATISTICAL ANALYSIS NET VOLUME
D.C. HEMLOCK MERCHANTABLE
TABLE OMITTED SEE ORIGINAL EXHIBIT G4 - STATISTICAL ANALYSIS NET VOLUME
D.C. SMALL MERCHANTABLE
TABLE OMITTED SEE ORIGINAL
HES-004-0437-0486
HES-004-0437-0486
IIJ61.4
610925
CORRESPONDENCE
CROW, JOHN O ; BIA
Forestry 162-57
SEP 25 1961
DEPARTMENT OF THE INTERIOR
Memorandum To: Assistant Secretary, Public Land Management From:
Commissioner Subject: Criteria for Stumpage Ratio Adjustments of
Quinault
Reservation Timber.
The attached letter to Senator Jackson, prepared for your signature,
states that criteria will be established for use in the adjustment of
stumpage ratios of the Crane Creek and Taholah Logging Unit contracts.
We believe such action is highly desirable.
As a point of beginning, there is attached a memorandum on this
subject by the Chief, Branch of Forestry. It was prepared about a year
ago, but was withheld from filing in the hope that it coulf first be
reviewed by the Solicitor's office and line officers.
We plan to make a further review of stumpage ratios of these
contracts either at the close of calendar year 1961 or at the close of
the first quarter of calendar year 1962. We therefore urge prompt
action to establish the criteria, with the Solicitor's office
participating. There should also be defined the exact procedures to be
followed in accomplishing an adjustment of ratios.
Attachments The attachments referred to above are not attached. Copy
to: Area Director, Portland Oregon (2) Copy to West Wash. and Hoquiam
11/13/61 per JPD
HES-004-0487-0487
HES-004-0487-0507
IIJ61.3
ASST SCTY ; PUBLIC LAND MGT
610925
CORRESPONDENCE
KEPHART, GEORGE S ; BIA
DEPARTMENT OF THE INTERIOR
Memorandum To: Files From: Chief, Branch of Forestry Subject:
Adjustment of stumpage ratios - Taholah Unit contract
(Aloha Lumber Company, purchaser) and Crane Creek Unit
contract (Rayonier, Inc., purchaser), Quinault Reservation.
The purchasers have appealed to the Secretary from the Commissioner's
recent action in increasing the stumpage-to-log price ratios of the
subject contracts. The appeals are on the grounds that the contracts do
not authorize either the recent increases in ratios by the Commissioner
or the increases that had previously been placed in effect by the
Assistant Secretary.
The following discussion is under three main headings: Background
Information, Intent of the Contracts, and Fundamental Issues in the
Appeals.
Although differing in detail, the Taholah Unit and Crane Creek Unit
contracts are alike to the extent that each provides an automatic
slicing scale arrangement for quarter annual adjustment of stumpage
prices. In this arrangement the price per thousand board feet to be
paid for timber scaled in each three-month period is calculates as a
stipulated percent, or ratio, or the average selling price or logs in te
proceeding three months. The average log prices are derived from cats
published by the Pacific Northwest Loggers Association.
Each contract also authorize the approving officer to change the
stumpage-to-log price ratios under certain conditions, and it is the
actions taken under this authority that are being appealed. This
authority in the Haholah Unit contract reads:
"10. THE SECRETARY OF THE INTERIOR OR HIS DULY AUTHORIZED
REPRESENTATIVE may, upon his own initia- tive, or upon submission
by the Purchaser of evidence satisfactory to the Secretary or such
representative, review the stumpage rates established by the
procedure set forth in Sections 6 to 9 inclusive. If, as a result
of such review, the secretary or such representative finds that
the character of the operation, changes in marketing conditions,
or technological developments, have altered the situation to such
an extent that a change in the existing ratios between stumpage
rates and the Grays Harbor-Puget Sound log prices appears
warranted, he shall give thirty days notice to the Purchaser of
his intention to establish new percentage ratios between stumpage
rates and the Grays Harbor-Puget Sound log prices during which
time the Purchaser may consult with the Secretary or such
representative; PROVIDED that the requirements of notice in this
section shall be satisfied when the new ratios established under
its authority are made effective upon the first day of the
quarterly period which is not less than thirty days following
notice by the Secretary or such representative to the Purchaser
that he intends to proceed under the authority of this Sec- tion
to change such ratios. The ratio, however, for any species of
sawtimber shall not be changed oftener than once in any calendar
year."
The comparable authority in the Crane Creek contract uses the phrases
"market conditions" instead of "marketing conditions" and "other
factors" instead of "technological developments." There are other
differences in language, or no real significance.
In addition to the appeals by these two purchasers, there have been
other expressions of dissatisfaction with the adjustment of ratios in
these andsimilar contracts. The Comptroller General has ruled that a
so-called interest allowance by the Secretary, in adjusting ratios, was
improper and not authorized by the terms of the contract. Congres-
sional committees, the General Accounting Office and Indian represen-
tatives have at times complained that the stumpage rates in these
contracts are too low. The Schoolie Logging Unit contract, Warm Springs
Reservation, had the same type of ratio adjustment provision. The
purchaser brought suit against the Secretary on the grounds that ratio
adjustments he had made were not permissible under the contract. This
suit was discharged with prejudice.
Intent of the Contracts
The Secretary (or his authorized representative) had adjusted the
stumpage ratios of these contracts several times. Resultant protests--
by the purchasers, the Indians, Congressional committees, the General
Accounting Office, and others--reveal widely differing opinions as to
the type and extent of the Secretary's authority, under the terms of the
contracts, in this matter of stumpage ratio adjustments.
I understand that when there is legal doubt as to the meaning of a
contract some consideration is given to the original intent of the
contracting parties. This portion of the memorandum is therefore
intended to express my personal interpretation of the intent of the
contracts. It is the interpretation of a professional forester, whose
service in the Central Files of the Indian Bureau includes the time that
the contract provisions in question were conceived and embodied in
various contracts.
Fundamentally, it is my understanding that the contract language in
question is intended to clothe the approving officer with authority to
adjust stumpage prices, from time to time, in a manner that is fair and
equitable to both the buyer and the seller. In doing so, he must
ordinarily keep in mind the conditions under which the bids for the
particular timber were solicited and received. This has been the basic
intention of the multitude of stumpage adjustment provisions that have
appeared in hundreds of stumpage contracts for the sale of Indian timber
during the past 45 years.
I can find nothing in the record, nor can I recall anything off the
record, to suggest that this basic intention was to be abandoned upon
adoption of the adjustment provisions in question. To the contrary, the
Taholah and Crane Creek contracts both contain an escape clause for
abandoning the prescribed ratio method of quarter-annual adjustments.
In that event the stumpage rates are to be adjusted according to the
trend of economic conditions in the industry. This escape clause is a
direct return to the language of many former contracts for the sale of
Indian timber, which authorized the adjustment of stumpage rates solely
on the basis of the trend of economic conditions.
Surely it must be accepted that neither the Taholah nor the Crane
Creek contract contributes a change in the objective of stumpage price
adjustments if it is decided to abandon the ratio adjustment procedure
in favor of the "economic conditions" procedure. It must therefore be
concluded that the intent of these two contracts is the same as that of
many predecessor contracts which contained the economic conditions
clause or other stumpage adjustment provisions.
My interpretation of the intent of the contracts rests on these
additional facts. These long-term contracts were originally entered
into upon the assumption that they were advantageous to both the seller
and the buyer. For the Quinault Indians the contracts provided an early
timber sale income for a much larger number of individuals than would
have been possible through a program of smaller, short-term sales. This
is because the land is almost completely allotted, and no individual
would have received an income until the timber on his particular
allotment was cut except for the fact that advance payment provisions
are written into these contracts. The purchasers, on the other hand,
gained the advantage of an assured supply of timber against which to
liquidate their plant investments. In a sense, the contracted timber
was withdrawn from the competitive marker. Both the stumpage owner and
the purchaser expected to benefit by this pooling of interests.
The very language of the contracts is acknowledgment by both parties
that no one could foretell the reasonable prices the purchaser should be
expected to pay from year to year as logging operations progressed. It
was for this reason that machinery was set up in the contracts for an
automatic stumpage adjustment procedure which, at the time, was expected
to be workable up to a certain point. Experience had shown, however,
that conditions might arise in which stumpage prices determined by the
quarterly adjustment procedure would become inequitable, to either the
Indians or the purchaser. For this reason an additional provision was
included in the contracts to permit equitable adjustments of the
automatic price procedure.
Conditions did, in fact, change. Under the automatic adjustment of
stumpage rates the purchasers' advantage in the contracts became
inequitably large, in the opinion of the approving officer. We,
therefore, took what he believed to be appropriate steps and increased
the sumpage ratios in order to correct this situation.
I find little merit in the contention that the authority to adjust
the ratios is a limited authority, to be exercised only as the result of
violent fluctuations in marketing conditions, or to compensate for
sudden and substantial changes in the character of the operation or
technological developments. The purpose of the authority is to permit
equitable adjustments, regardless of whether the need arises from
violent or less spectacular changes in the economy.
It can be expected that stumpage prices under these contracts will
fluctuate through a narrower range than the prices received in small
volume year-to-year sales. I do not agree, however, with the contention
that the stumpage prices of other sales should be completely ignored
when adjusting stumpage prices in these contracts. Stumpage prices are
an item of production cost. As such, they help to determine the price
that must be charged for goods produced. If stumpage prices in the
contracts under question are substantially below the prices that other
manfacturers are paying, then the holders of these contracts will have
lower production costs. They will have an advantage over thier
competitors in the sales market. This competitive advantage is a
reflection of market or marketing conditions. If the competitive
advantage, or disadvantage, changes during the life of the contracts,
the approving officer should take this fact into consideration in
adjusting the stumpage prices.
As further support to the views expressed above, there are attached
two memorandums from Mr. Felis to Mr. Chauklin:
"Stumpage adjustment provisions of Indian Bureau contracts." May
14, 1956. "Provisions for adjustment of stumpage-to-lumber (or
log) ratios in the Indian Bureau timber sale contracts. June 6,
1956.
Fundamental Issues in the Appeals
Over-simplified there are four fundamental issues in the appeals:
1. What is the correct interpretation of the phrases "full value,"
"full stumpage value and true market values" as used in these con-
tracts?
2. What is the correct interpretation of the phrases market
conditions, marketing conditions, character of the operation, tech-
nological developments, and other factors as used in these contracts?
3. What intervals of time can be considered as a basis for stumpage
adjustments?
4. When the approving officer "finds" that the situation has been
altered to such an extent that a change in the existing ratios * * * is
warranted may his adjustment of ratios included a consideration of any
factors which do not fail within the accepted definition of one or more
of the factors named in item 1, 2 and 3, above.
There are other serious differences of opinion which have culmi-
nated in the appeals. For example, the purchasers protest that produc-
tion costs used by the Bureau in its revaluation studies are too low.
But this is of no consequence until it is decided whether there is
authority under the contracts even to consider production costs. "Full
Value," "Full Stumpage Value and True Market Value"
These phrases appear in both contracts, but the first two are not in
the sections dealing with stumpage adjustments. Practically all Indian
Bureau contracts, including those in question, provide essen- tially as
follows:
"For and in consideration of the agreements by the Superintendent,
the purchaser agrees that * * * he will cut all timber covered by
this contract, and will pay * * * the full value of the timber as
shall be determined on the basis of an actual log scale, at fixed
rates per thousand feet, board measure * * *." (Underscoring
supplied.)
Section 7 of the General Timber Sale Regulations, which are a part of
these two contracts, and were formerly a part of all other Indian timber
sale contracts, states in part:
"At the close of each month a statement of all timber cut during
the month will be rendered to the purchaser as a demand for
payment of the full stumpage value of the timber covered by such
agreement. (Underscoring supplied.)
"Full value" and "full stumpage value" as used above have been
variously interpreted to mean:
(1) The obligation "to pay in full" for the total volume of
merchantable timber this is designated for cutting, including such
timber that is wasted by the purchaser. Payment in full, by this
interpretation, is to be made at rates per thousand feet or other
unit of measurement that will be established pursuant to other
contract provisions, including the provisions for adjusting such
rates. (2) "Full value" and "full stumpage value: mean the
obligation to pay full market value, or the price that would be
offered for such timber at the time of pay- ment, if it were
advertised for sale at that time in the open competitive market.
(3) "Full value" and "full stumpage value" mean the price, as
traditionally defined, that a willing buyer would pay, and a
willing seller would accept, neither being under compulsion.
I accept item (1), above, as being the correct definition of these
phrases in the context of these contracts. It should be noted that
these phrases appear in practically all contracts for the sale of Indian
timber, even when such contracts do not contain any provision for
adjusting the stumpage rates. If ther is no provision for adjust- ing
the rates, the phrases cannot fit definitions (2) and (3), above. The
only definition that does fit in such contracts is item (1). This
defintion, therefore, logically carries over into contracts which con-
tain provisions for stumpage adjustments.
"True market value" appears in these two contracts in the section
that authorizes abandonment of the quarter-annual adjustment procedure.
In the Taholah contract the quarter-annual adjustments may be abandoned
if the date published by the loggers association become unavailable for
use in connection with the stumpage adjustments * * * or if in the
opinion of the Secretary or his duly authorized representative do not
properly reflect the true market value of the forest products, * * *.
In the Crane Creek contract the comparable reference is to * * * the
true rarest value of the stumpage, * * *. It could be argued that true
value is the price that would be obtained if the stumpage were offered
for sale in the open market. But this phrase appears in the same sen-
tence as the reference to the trend of economic conditions. Again,
therefore, it is by understanding that the intent of this language is
the the fundamental intent of making equitable adjustments of stumpage
rates. Such aquitable adjustments could result in stumpage prices
either above or below the general level of prices in comparable sales.
Historically, the stumpage prices in long-term contracts for the sale of
Indian timber have tended to fluctuate through narrower margins than the
prices received in short-term sales. Character of the operation,
marketing (or market) conditions, and technological developments or
other factors
I have not found in the record any explanation for the change from
"marketing" to market conditions, and from "technological developments"
to "other factors." It is my distinct recollection, however, that the
change from marketing to market conditions was made in order to sim-
plify the language. To the best of my knowledge and belief, there was
no intent to change the meaning. The two words were considered to be
synonymous. As to the change from "technological developments" to
"other factors," I recall some discussion to the effect that it was a
high sounding phrase for which more everyday language could be substi-
tuted. Again, for the sake of simplicity, the phrase "other factors"
was used.
When this section of the contracts was being developed, there was
much dissatisfaction with the phrase "trend of economic conditions," a
phrase that appeared in many active contracts at the time. It had
become subject to differing interpretations, which lead to difficulties
in taking action to adjust stumpage rates. In other words, "trend of
economic" conditions has reached a stage similar to that with which we
are now confronted with respect to character of the operation,"
"marketing conditions, etc.
In drafting the quarter-annual adjustment provisions, therefore, the
authors used character of the operation, et al, in the belief that they
were somewhat descriptive and yet broad enough to cover all ele- ments
that should be considered in making equitable adjustments of stumpage
rates.
The "character of the operation" will change if there is a change
from sawlog to pulpwood production, from railroad to truck hauling, from
logging by the purchaser to gyppo logging, etc. The character of the
operation can also change as operations progress across the sale area.
The terrain may become more or less difficult. The average quality of
timber being cut may improve or become poorer. The stand composition,
as to species, may change. All or any of these may change the operating
costs or the value of the timber harvested. They are therefore changes
in the character of the operation that affect stump- age values.
Becaue of my belief in the broad intent of these contracts, I can-
not find merit in the hair-splitting distinctions that some others find
between "market" and marketing conditions. They cover all features that
affect the attractiveness, in the eyes of stumpage purchasers, of the
market in which he must sell the logs or other products manufac- tured
from the stumpage. In other words, it is the profit potential available
to him when he offers his product for sale. Marketing con- ditions,
therefore, take into consideration the costs of production as well as
the value of goods produced. Any narrower interpretation should be
unacceptable in the eyes of both the buyer and seller under these
contracts. For example, it is theoretically possible that the value of
logs produced could remain constant for a relatively long period of
time. During that time it is also possible for production costs to
either increase or decrease quite substantially, the end result being
either an increase or decrease in conversion (conversion being the
difference between production costs and product value that is available
for division between the timber seller, as stumpage, and the timber
buyer as operating profit). With the product value remain- ing constant
and with no change in the ratios under the foregoing circumstances,
either the stumpage seller or the stumpage buyer could be seriously
hurt. A change in the ratios could not be made, under the terms of the
contract, unless the approving officer could find that this change in
production costs was a market or marketing condition that had altered
the situation sufficiently to warrant a change in ratio.
"Techological developments" include improved machinery and
manufacturing methods. It also includes closer utilization, manufacture
of new products (e.g. lumber to plywood) etc. Improved manufacturing
techniques or efficiencies, to be considered, should be those adopted by
an acceptable segment of the industry. Unusual efficiency of an
individual operator would not be a technological development. "Other
factors" is so broed that a definition is not necessary.
In some stiuations, all three of the factors may be involved. For
example, a new pulping process (technological development) may create a
demand (market) that will result in a change from sawlog to pulpwood
production (character of the operation). Interval of time for stumpage
adjustment studies.
Three points of view have been expressed:
1. Each stumpage adjustment study may consider all changes that have
occurred subsequent to the time of bidding for the timber.
2. Each study must be restricted to the period of time subsequent to
the date on which the most recent actual change in stumpage ratio was
made effective.
3. Each study must be restricted to the period of time subsequent to
the most recent date on which either a change in ratio was actually made
effective or on which the approving officer announced, thatno change
would be made. In other words, if as a result of a revaluation study
the approving officer should announce that no change in existing ratios
would be made at that time, any subsequent revaluation studies should be
continued to the period since that announcement.
I believe the first of these three interpretations is the intent of
the contracts. At each time that a revaluation study is made, we are
entitled to consider changes that have occurred over the entire period
subsequent to the time of bidding.
The fallacy of the other two interpretations is the assumption that
the Secretary is fully informed at the time of each revaluation study,
and is able to analyze and give full consideration and weight to all
factors that should be considered in reaching his conclusions. It is
often impossible for the Secretary to be fully informed at the time of a
revaluation study. In fact, there are often situations in the forest
products industry which develop slowly. Their presence may not be
discernible at first. When they are first recognized, they may not have
reached a sufficient magnitude to justify an adjustment of stumpage
values. Eventually, however, the cumulative effect of such developments
becomes so great that is should not be ignored. Steps should then be
taken to make appropriate adjustments, which will recognize the total
effects of the change. An example is found in the manufacture of box
shook (lumber to be manufactured into boxes). In the western pine
region the manufacture of box shook used to absorb a substantial portion
of the total volume of lumber produced. Fiber cartons and other
containers began to compete for this business, and the box shook
business today is a much smaller proportion of total lumber used than it
was 10 or 20 years ago. This change took place gradually, and it was
only after a considerable number of years that its effect on the lumber
industry, and therefore on stumpage values, had reached the proportion
where it could logically be considered in stumpage adjustment studies.
Factors considered in adjusting ratios.
At least two points of view have been expressed:
1. After the approving officer "finds" that the character of the
operation, changes in marketing (or market) conditions, or technologi-
cal developments (or other factors) have "altered the situation" suf-
ficiently, he may then consider any factors that would be considered by
a prudent man in making an equitable adjustment of the stumage rates.
It is not necessary for him to exclude from consideration any factor
that affects the stumpage value merely on the grounds that such factor
is not (illegible) within the legally accepted definitions of "charac-
ter of the operation, et al.
2. After the approving officer makes his finding, he may then
consider only those factors that are embraced within the legally
accepted definitions of "character of the operation," et al. He is
prohibited from considering any other factors, no matter how much they
may actually affect the value of the contracted stumpage.
I believe the first of these two interpretations is the intent of the
contracts. The opinion is expressed, on page 8 of this memorandum, that
in drafting the quarter-annual provisions, * * * the authors used
'character of the operation,' et al, in the belief that they were
somewhat descriptive and yet broad enough to cover all elements that
should be considered in making equitable adjustments of stumpage rates.
If this opinion is correct, then very broad definitions must be applied
to "character of the operation," et al. In that event, any factor that
a prudent man would consider would be embraced within the legally
accepted definitions, and the question would never arise as to whether a
particular factor could be considered.
If the "character of the operation, et al, are found to have narrower
definitions, then the contracts are self-(illegible) of their own
intent, unless we conclude that the approving officer has authority to
consider all factors affecting the stumpage value.
Summary
Under these contracts, the approving officer may review the current
situation with respect to the character of the operation, market or
marketing conditions and technological developments or other factors.
He compares these current conditions with conditions at the time of
bidding. If he finds that conditions have changed, he considers the
probable effect of such change upon stumpage values. He then reviews
the current stumpage prices established by the automatic adjustment
formula. If it appears to him that the current prices do not properly
reflect the changed conditions, and that equities of the parties to the
contract have not been maintained, he consults with the parties to the
contract.
Prior to the consultation he will have received some reports from his
staff, with tentative recommendations.
Following the consultations the approving officer analyzes all
available data, obtained from various sources and often contradictory.
There is no strict formula for resolving the contradiction in evidence,
or for determining what new ratios should be made effective. Judgment
must be used in reaching a decision.
It is not reasonable to expect that the approving officer or his
advisors will be able to set down, for information of the parties to the
contract, the exact items that they add together in reaching a decision.
But there should be documented evidence of the material considered by
the approving officer in reaching his decision.
GEORGE S. KEPHART
George S. Kephart
Chief, Branch of Forestry
Attachments 2 (not with this copy
Forestry
162-57
4595-57
JUL 17 1961
Memorandum
To: Assistant Secretary, Public Land Management
From: Commissioner
Subject: Stumpage ratios of the Crane Creek and Taholah
Logging Units, Quinault Reservation, Washington
The following information responds to two questions raised in Senator
Jackson's letter to you of June 30, 1961. The questions have particular
reference to a reduction in stumpage ratios that was made effective
April 1, 1961. I. Adjusting stumpage prices to represent value of
timber to be cut
in a subsequent pricing period.
In considering the complete stumpage pricing procedure under
these contracts, we believe the statement in our memorandum of
May 18, which is quotedin Sentor Jackson's letter, does not
seriously conflict with the Senate Committee recommendation to
which he also refers. Each adjustment of the stumpate-to-log
ratios is based upon a study of changing conditions up to a time
shortly preceding the effective date of ratio adjustment. The
adjustment is no tempered by pure speculation as to possible
furture trends. There is accordingly a lag between conditions
affecting ratio adjustments and conditions when the ratios are
used. However, the subsequent quarter-annual adjustments of
stumpage rates themselves eliminate much of this discrepancy.
The unavoidable lag in pricing favors either the Indians or
the purchaser, depending upon the direction of market trends. The
Indians benefited in this respect when stumpage ratios were
increased, effective July 1, 1960. This is revealed in the
paragrah of the Acting Commissioner's memorandum of May 18
immediately following the one quoted in Senator Jackson's
letter. It reads:
"The ratio adjustments which were made in 1960 were based on the
first quarter of that year. The ratios obtained were based on
relatively high log values resulting in commeasurately higher
stumpage rates. We were aware at that time that certain segments
of the lumber industry were already in depressed conditions. And
then there was speculation that conditions were improve in the
immediate future. We acted upon conditions as they existed at the
time because there was no method of determining what the cure
would be. Almost immediately after the ratio adjustment log
values began to decline. Most of last year's cutting was at the
higher ratios with only such relief as these ratios provided. The
amount of relief was relatively small compared to the decline in
log values." (Underscoring supplied)
II. Denial of request for deferral of final action on stumpage adjust-
ments.
We do not believe that adjustment of ratios, without further con-
sultation was either arbitrary or a summary refusal to consider the
Indians' views in this matter. The requested deferral of final action
was considered not only under the circumstances referred to in Senator
Jackson's letter. This matter was also covered in a memorandum of March
24, 1961, to the Commissioner, beginning at the fourth paragraph.
Copies of the two similar memorandums of that date (covering the two
timber contracts) were attached to our memorandum of May 16 to you, and
were included in the material submitted to Senator Jackson with your
letter of June 5. The requested postponement of action was considered,
but it did not appear to us that it would serve any useful purpose.
Senator Jackson refers to a Senate Report recommendation "* * * that
the Secretary establish a procedure designed, as far as practi- cable,
to meet the procedural requirements of the Administrative Proce- dure
Act." This has been accomplished, as evidenced by section 10 of the
contracts, which gives the parties consultation rights, or the right to
be heard, and by 25 CFR 141.23 which provides for review on appeal. The
purchasers of the Crane Creek and Taholah Logging Unit contracts did
file an appeal from the Commissioner's action in increasing the stumpage
ratios effective July 1, 1960. The tribal business committee was
notified of these appeals, and the tribal members were given general
notice thereof in Quinault Newsletter No. 12 dated July 22, 1960. Final
action on these appeals has not been taken. The Indian owners of this
contracted timber have equal privilege of appeal to the Secretary.
(Sgd) John O. Crow
Acting
Commissioner
Copy to: Area Director, Portland, Oregon (2) Secretary of the Interior,
c/o Commissioner of Indian Affairs, Interior Building, Washington, D.C.
Attn: Branch of Forestry Dear Sir:
Contract No. 1-101-IND 1766
At our conference in Portland Tuesday with respect to 1961 ratio
adjustments under the subject contract, we discussed certain points and
advised that with respect to the 1960 ratio adjustment matter we had
prepared certain graphs that would illustrate these items. You
suggested that we furnish you with copies of the graphs and confirm in
writing our comments. Of course, as was mentioned, these items and our
comments hereafter do not bring up any matter not covered by our initial
letter of October 18, 1960.
First, we reiterated at the hearing our contention that there has
never been from the inception of the contract the existence of any of
the factual matters required for an adjustment upward of the ratios.
We, of course, always have contended that since the inception of the
contract there has been no basis for ever increasing ratios on a finding
"that the character of the operation, changes in marketing conditions,
or technological developments have altered the situation to such an
extent that a change in the existing ratios between stumpage rates and
Grays Harbor-Puget Sound log prices apeared warranted and, as you know,
have also always contended that any change in ratios should only reflect
the effect of any such alteration. Accordingly, we remain of the firm
opinion that the original ratios provided for in the contract should be
restablished with respect to each specie subject, however, to the
possibility that the original contract ratios should be reduced to
reflect (1) the effect of the spread in the log market prices which has
developed between the Grays Harbor and the Puget Sound log markets which
is hereinafter discussed and (2) the failure of the timber to develop
the percentage of grade qualities orginally anticipated
We realize, of course, that you have always disagreed with us as to
the legal interpretation to be given to the contract. For the record,
we reiterate our contentions.
Since at least 1957 you have, with respect to ratio adjustments,
based your determination upon your so-called trend and apprasisal
reports. However, it was apparent from the reports that, in fact, you
had adopted for this purpose of ratio adjustments a method of adjusting
ratios based upon an attempt to maintain the same profit and risk margin
to the purchaser as was assumed to exist at the time the contract was
entered into. This is even more evident under your 1961 report than
under prior reports. This last Tuesday we pointed out, as we had with
respect to prior adjustments, that even if the contract method of
automatic adjustments of stumpage was ignored by you, any other approach
based on trend and appraisal studies should and can be realistic and
that, in fact, the assumed profit and risk margin which would result
from the ratio adjustment just did not, in fact, exist and suggested a
number of the reasons why this was the case. Hereafter, we are
commenting upon these reasons and where we have certain graph material,
illustrate the point with the graphs.
USE OF FIRST QUARTER 1950 LOG PRICES
With respect to your method of adjustment of ratios based upon
maintaining relative profit and risk, we pointed out that not only was
it not the agreed-for method but the use of the first quarter, 1950, log
prices as a beginning point for determining profit and risk to be
maintained over the life of the contract was not correct and resulted in
a distored and unrealistic figure. For instance, this approach left no
profit and risk margin for hemlock at all and as to other species
resulted in a reduction of the 16% profit and risk factor upon which the
1948 appraisal was based. Of course, for that matter, Aloha had no
knowledge of the initial assumed profit and risk factor. Primarily, the
reason for this distortion is the fact that during the first quarter of
1950 the lumber market was in a drastic but temporary slump. However,
towards the close of the first quarter of 1950 log prices were rising
markedly and continued to do so through the balance of the year For
instance, in the conbined Grays Harbor-Puget Sound market the weighted
average price for all species of logs in the first quarter of 1950 was
about $4.50 below the second quarter of 1950, about $17.00 below the
third quarter and about $22.00 below the fourth quarter with the year's
average $13.50 higher]] Further, the last quarter 1948 (the basic period
for your appraisal) average prices were about $4.00 higher.
(1) The contract was executed in May, 1950.
(2) The appraisal studies pursuant to which basic stumpage prices
were determined were based upon the relationship factors existing as of
the last quarter of 1948.
(3) The first cutting experience was with reference to greatly higher
market conditions of late 1950. It is submitted that use of log values
as to the time of either (1), (2) or (3) would be far more in line with
reality. Of course, if this were done (no matter whether (1), (2) or
(3) (i) the initial profit and risk factor would be much higher and (ii)
resulting ratios would be considerably lower. Assuredly, Aloha did not
enter into the contract on the thought that the drastic market
conditions of early 1950 would continue over the 20-year life of the
contract. When it signed the contract, the market had already greatly
improved.
SPREAD BETWEEN GRAYS HARBOR AND PUGET
Attached hereto, marked Exhibits A-1, A-2 and A-3 are three graphs
comparing the weighted average prices for logs between Grays Harbor and
Puget Sound. A-1 covers all species; A-2 cedar; and A-3 hemlock and
white fir. It will be noted that graph A-2 with respect to cedar
reveals that initially the market for cedar logs was substantially the
same in both the Grays Harbor and the Puget Sound market. However,
there has been a very marked tendancy for the Grays Harbor log prices to
drop in relation to Puget Sound prices. For instance, during the year
1960, the weighted average for cedar on the Grays Harbor market was
about $47.50, the Puget Sound market was about $61.00, a difference of
some $13,50: With respect to hemlock and white fir, raph Exhibit A-3
points out that while there is a difference, it is far less marked.
The relative profit and risk approach is, of course, based by you
upon the average weighted log prices in both markets. Of course, the
Puget Sound market is not realistically available to the Tabolah Unit
logs. An examination of your files will indicate that this has always
been recognized as being the case since the inception of the contract.
The automatic and agreed contracted-for mathod of adjustment of stumpage
prices based upon agreed ratios, of course, was based upon the comblined
markets. This developing spread in market values has obviously been to
Aloha's disadvantage and this would have been the case even if ratios
had not been increased in prior years. From any equitable point of
view, the initially agreed-for ratios should have been lowered to offset
the resulting distortions in the results following from the automatic
stumpage-adjustment formula.
However, most assuredly with respect to so-called trend and appraisal
studies and relative profit and risk studies, the actual market
available to the Taholah Unit logs should only be taken into
consideration. Certainly, the only justifiable reason for changes in
ratios would be to reflect actual conditions rather than to rely upon
the agreed automatic method of stumpage adjustments. Any unilateral new
method of ratio adjustments not agreed to by the purchaser should at the
very least be based upon the actual situation. As mentioned in the
meeting, it would be as reasonable in determining how much a man's pay
should be in Aloha, Washington, to base such study upon the cost of
living for one at a 5th Avenue address in New York City The Puget Sound
market is just not realistically available to the Taholah Unit logs.
In summary upon this phase of the matter in relative profit and risk
studies only the Grays Harbor log prices should be considered. If this
were done, of course, the result would be a considerable reduction in
stumpage prices.
Bearing upon this same matter are graphs Exhibits C-1, C-2 and C-3.
These compare log values and the stumpage paid under the Taholah
contract. C-1 snows the comparison for all species, C-2 for hemlock and
white fir and C-3 for cedar. The graphs Exhibits B-1, B-2 and B-3
reflect the same information eliminating, however, the unavailable Puget
Sound market. Exhibit graph E-1 is with respect to all species, Exhibit
graph B-2 with respect to cedar only and Exhibit graph E-3 with respect
to hemlock and white fir.
Exhibit B-2 comparing log values in the Grays Harbor market with the
Taholah stumpage reveals that the margin between stumpage and log values
has been steadily closing over the life of the contract. For instance,
during the entire year 1960 the margin between log prices and stumpage
closed some $13.00 per M. Put in other words, while stumpage has gone
up the cedar log prices have come down. Even with respect to hemlocl
and white fir Exhibit E-3 reveals that stumpage increases under the
contract have more than offset increases in log values and Exhibir B-1
shows that with all species the margin has been narrowing.
It will be noted that in each of the C graph exhibits and each of the
B graph exhibits, six in all, the actual Taholah stumpage is reflected
as well as what would have been the stumpage hed the ratios not been
increased in prior years. It is submitted that these exhibits furnish
graphic proof of the impropriety of the earlier ratio increases. They
further point up the fact that had the original ratios called for by the
contract been left in force and the agreed automatic stumpage
adjustments been left as agreed upon, the relative relationship between
log prices and stumpage would have been much better maintained than it,
in fact, has been under ratio increases.
Further bearing upon this matter are the graph exhibits D-1, D-2 and
D-3. These exhibits compare the P.N.L.A. weighted log prices (1) for
both the Grays Harbor and the Puget Sound areas and (2) for the Grays
Harbor area alone with (a) Taholah Stumpage paid and (b) as such
stumpage would have been under the ratio increases and as it would have
been under the agreed-to automatic stumpage adjustment provisions. D-1
covers the situation for all species, D-2 for hemlocl and white fir and
D-3 for cedar only. Exhibit graph D-3 again points up the fact that the
Grays Harbor log market is considerably below the Puget Sound market and
again graphically illustrates the fact that the increase in stumpage
costs resulting from the increase in ratios since 1955 were not in
order. Cortainly, during this period of time increased costs, including
increased labor costs, have further reduced the margin that exists
between log values and stumpage prices.
We have often pointed out that Aloha's picture is somewhat unique in
that its activities are almost entirely confined to its operations under
the Tabolah contract. It apparently has always been admitted that
Aloha's logging costs are as low as or lower than for the industry.
Therefore, it has been pointed out that the actual results are the best
criterion of the profit and loss results. It is certainly not necessary
in making comparative profit and risk studies to use the unavailable
Puget Sound log market.
Aloha's production from the Taholah Unit consists of cedar lumber and
shingles produced at its mill and the hemlock and other specie logs
which it selis in the market. Attached hereto marked Exhibit F is a
graph showing the actual selling prices realized by Aloha for the end
products realized from the Taholah Unit. The end product, of course, is
lumber, shinglea and logs. This graph also compares these values with
the Taholan stumpage cost. It will be noted that the sales realization
for lumber, shingles and logs has gone down or at best stayed about even
while stumpage has increased. In other words, this illustrates that the
profit and loss margin has, in fact, been narrowing and this even though
the period covers some of the best year in the industry. The early
exhibits were with reference to log prices and these with respect to the
actual end product realization. They certainly indicate that there has
been no basis whatsoever for ratio increases since 1955 under the
contract. Of course, it is a well known fact that since 1955 labor
costs and other costs have increased and these costs have further
resulted in a diminishing spread between stumpage price and end product
realization.
Graph exhibit H-1 compares Aloha's lumber sales price with costs.
Over the life of the contract the margin between lumber realization and
cost has been considerably narrowed. Manufacturing and shipping costs
have been steadily going up since 1948. Stumpage has gone up due in
large part to the arbitrary increase in ratios heretofore made as well
as due to the effect on the automatic stumpage adjustmont made as
visions brought about by the spread between the Grays Harbor and Puget
Sound market. For instance, in 1957 costs of lumber produced was
greater than sales realization and since that date only a few dollars
have remained for profit and risk and this even with respect to the
overall operation, including the manufacturing operation, which must
carry the large investment in mill manufacturing plant and equipment.
Graph Exhibit H-2 makes the same comparison with respect to Aloha's
realization for shingles. Here again, manufacturing and shipping costs
have continually been on the rise as well as log prices and these two
combined have left little, if any, profit and risk margin.
Graph Exhibit G makes the same comparison with respect to hemlock and
white fir logs. There, the margin between sales realization and costs
has over the years also been greatly whittled away. At all times since
1955 the sales realization has been below costs
The preceding exhibits all point out graphically that the profit and
risk studies are unrealistic and that ratios should have, if anything,
been reduced rather than increased based upon actual figures. Even if
the original contract ratios had been left in effect during the life of
the contract, it is submitted that the margin between the value of the
product and stumpage would have been narrowing, and this particularly so
when increased costs are taken into consideration.
Attached hereto is graph Exhibit J showing the overall comparison of
return after taxes on invested capital for Aloha Lumber Corporation
During the years from 1948 through 1960. Of course, the years 1948
through 1950 are not relevant since they reflected return prior to the
time the Taholah contract results were reflected. It will be noted that
except for the unusually good year of 1955, Aloha has never been able to
realize the modest return of 1951. The heavy loss year of 1960 about
offsets the income realized in 1959.
But for the fact that Aloha cut its own low-cost timber, the 1960
loss would have been far more drastic. Graph Exhibit I compares the
overall net income for aloha as it actually was and adjusted to apply
the Taholah rates to all stumpage. This exhibit points out the effect
of the cutting by Aloha of its own low-cost stumpage. gfor instance, in
the year 1958, Aloha would have just about broken even had it not been
for the fact that it cut a considerable amount of its had it not cost
stumpage. In the year 1957. its loss would have been considerably
greater than it was had it not cut some of its own low-cost stumpage.
For the year 1956 its net return would have been about cut in half. We
have already commented about 1960.
It seems clear that ratios should be drastically reduced below those
you have recommended - particularly so if the profit and risk originally
available to Aloha is to be maintained.
cc: Bureau of Indian Affairs,
Western Washington Agency, 1620 Hewitt Avenue, Everett, Wash.
Attn: Mr. C. W. Ringey,
HES-004-0488-0507
HES-004-0487-0507
IIJ61.3
FILES
610000
CORRESPONDENCE
CLARK, DON W
APPRAISAL AND SALE OF TIMBER:
The present Taholah Unit was first appraised in a report dated
November 15, 1948. This appraisal was based on log values (as
determined from past sales) for the first three quarters of 1948. The
trend of log values during the three quarters was largely upward. The
average log values used for the three quarters, however, represent a
generally satisfactory conclusion.
The appraisal was made on the basis of $30.00 per MBM for production
cost. The profit and risk allowance was 15 percent on the cost of
production or $4.50. The results were as follows: TABLE OMITTED SEE
ORIGINAL
The timber was advertised for sale, with bids to be received on July
8, 1949. The approved form of contract for this sale provided that the
stumpage rates bid by the purchaser would remain in effect through March
31, 1950. Thereafter, the rates would be adjusted quarter-annually, so
as to maintain the same percentage relationship, between adjusted
stumpage rates and the changing market value of sawlogs, as that
originally established between the bid stumpage rates and log values for
the fourth quarter of 1948.
No bids were received; but a sale of the timber was subsequently
negotiated, at the originally advertised stumpage rates and under the
originally approved form of contract.
The negotiated contract was approved May 12, 1950. Consequently, the
bid stumpage rates were immediately modified through operation of the
quarter-annual adjustment provision. Log values had declined from the
fourth quarter 1948 levels, and the stumpage rates immediately effective
were therefore somewhat less than the bid rates, as follows: TABLE
OMITTED SEE ORIGINAL STUMPAGE, COST AND PROFIT RELATIONSHIP AT TIME OF
SALE
The prices at which this timber was negotiated were immediately
replaced by the automatically adjusted rates that became effective on
April 1, 1950. For this reason, the adjusted rates are a better measure
of stumpage values at the time the timber was sold. These are also the
conditions under which the timber was sold.
Production costs at the time of the appraisal were estimated to be
$30.00. This estimate is considered adequate and will be used for the
purpose of determining the profit and risk factor at the time of the
sale. Log prices used for this purpose were determined from the
combined Puget Sound-Grays Harbor districts past sales for the first
quarter of 1950 as shown in the following table:
FIRST QUARTER, 1950 AVERAGE LOG VALUES
TABLE OMITTED SEE ORIGINAL
At the time of sale, therefore, the following relationships existed
between log value, stumpage rates, production costs, and operator's
profit and risk allowance: TABLE OMITTED SEE ORIGINAL
The average log value and stumpage will be determined: TABLE OMITTED
SEE ORIGINAL
The average log value at the time of bidding was $41.83 MBM. The
average indicated bid value was $7.95 and average logging cost was
estimated to be $30.00. The allowance for profit and risk at the time
the timber was purchased is computed by use of the usual appraisal
formula as follows: TABLE OMITTED SEE ORIGINAL
At the time of the purchase, the profit and risk factor was about ten
percent. This compares with a profit and risk factor of about twelve
percent contemplated in the original appraisal. CONTRACT REQUIREMENTS
CONCERNED WITH ADJUSTMENT OF RATIOS
The contract provides for automatic adjustment of stumpage rates for
each quarterly period beginning January 1, April 1, July 1 and October
1. These adjustments are accomplished by applying the specified
percentage of grades of logs for each species to the quarterly log grade
prices to obtain the average log price, and applying the average log
price to the stipulated ratio to obtain the stumpage rate.
Although this quarterly adjustment procedure provides mutually
satisfactory results over relatively short periods of moderate
fluctuations in log prices, it does not provide an effective means for
compensating for the more drastic change in log prices and log
production costs. A stipulation to provide for such changes was
therefore included in the contract which reads:
"THE SECRETARY OF THE INTERIOR OR HIS DULY AUTHORIZED
REPRESENTATIVE may, upon his own initiative, or upon submission by
the purchaser of evidence satisfactory to the Secretary or such
representative, review the stumpage rates established by the
procedure set forth in Sections 6 to 9, inclusive. If, as a
result of such review, the Secretary or such representative finds
that the character of the operation, changes in marketing
conditions, or technological developments, have altered the
situation to such an extent that a change in the existing ratios
between stumpage rates and the Grays Harbor-Puget Sound log prices
appears warranted, he shall give thirty days notice to the
purchaser of his intention to establish new per- centage ratios
between stumpage rates and the Grays Harbo-Puget Sound log prices
during which time the purchaser may consult with the Secretary or
such representative; PROVIDED that the requirements of notice in
this Section shall be satisfied when the new ratios established
under its authority are made effective upon the first day of the
quarterly period which is not less than thirty days following
notice by the Secretary or such representative to the purchaser
that the intends to proceed under the authority of this Section to
change such ratios. The ratio, however, for any species or
sawtimber shall not be changed oftener than once in any cal- endar
year".
REVIEW OF PRESENT CONDITIONS
A study of stumpage values under the Taholah Contract was made in
1960. The last change in ratios resulted from this report (see Report
dated May 17, 1960 and revised report dated June 9, 1960). The pre-
ceeding pages were taken verbatim from that report. The present study
will follow the same method used in the 1960 study.
Consideration will be given to three major factors, namely:
1. Changes in conditions as indicated by trend and by a change in
scaling practices.
2. Changes in quality of logs.
3. Direct appraisal. CHANGES AS INDICATED BY TREND AND BY CHANGE IN
SCALING PRACTICES
Changes in market conditions as determined by the Puget Sound-Grays
Harbor log markets and published by the Pacific Northwest Loggers
Association are summarized in the following table: TABLE OMITTED SEE
ORIGINAL
If production costs and log values had maintained the same
relationship during the life of the contract, this would have been a
satisfactory measure of trend. Under normal circumstances, when product
value and costs are moving in parallel directions, this method gives
reasonably satisfactory results. The distribution of one-half the
change to stumpage and the other half to costs generally accomplished
the objective.
During 1956, there was a change in scaling practices when the Grays
Harbor Log Scaling and Grading Bureau began scaling all logs from this
unit. A modification of the contract provided for the scaling of longer
logs which increased the rate per M board feet by 12.5 percent as shown
in the following table: TABLE OMITTED SEE ORIGINAL
The above indicated rates reflect an upward trend in the log market
from the 1st quarter 1950 to the 4th quarter 1960. If log values and
costs moved at parallel rates, these indicated values could be said to
represent satisfactory values for stumpage. However, this is not the
case. Changes in costs have remained relatively stable during recent
years, with only a slight upward trend. Increased efficiency and
mechanization have, to come degree, offset steadily increasing labor
costs. On the other hand, log values in some species have fluctuated
appreciably. Accordingly, the indicated stumpage rates shown above can
be used only as a very general indication of present values. LOG GRADES
ESTABLISED FOR DETERMINATION OF CURRENT VALUES
Numerous points of view have been expressed as to the log grades that
should be used in any determination of stumpage values under this
contract. An inventory has been completed on the Taholah Unit. Average
log grade percentages have been determined for all species and will be
shown in the inventory report now in the final stages. There is some
merit to the idea that future studies should be based on the over-all
average log grade percentages.
If it could be assured that the contractor would log proportionate
volumes in all grades and species each year, this idea might be a
satisfactory solution. Since this is not practicable, it is believed
that this idea should not be adopted.
After considering all factors involved, it has been concluded that
the fairest system for all concerned is to base the log grade
percentages for this study on the average grade recovery for the last
three calendar years. This procedure will result in stumpage values
that currently reflect the quality of timber being logged and will tend
to minimize so-called "high-grading" on the part of the purchaser. Use
of the three-year average is preferred to use of a five-year average as
it will reflect more quickly any appreciable changes in the cutting
pattern.
Average grades recovered by species have been calculated for the
three-year period, ending December 31, 1960 from the volume of logs
scaled and graded by the Grays Harbor Log Scaling and Grading Bureau.
These are set forth on the following page: TABLE OMITTED SEE ORIGINAL
ADJUSTMENT OF LOG GRADE RECOVERY BASED ON THREE-YEAR AVERAGE LOG GRADE
PERCENTAGES TABLE OMITTED SEE ORIGINAL
The indicated stumpage rates as derived from changes in trend in the
lumber industry and the change in scaling procedures would be affected
by the change in grade as shown below: TABLE OMITTED SEE ORIGINAL
Direct Appraisal
The determination of proper log values for use in this report is of
considerable importance. We are of the opinion that log prices as
reported by the Pacific Northwest Loggers Association for the Grays
Harbor area represent the true value of logs in this area. Our own
investigation of log prices currently being paid by the plywood, sawmill
and pulpwood plants on Grays Harbor bear this out. (The average log
grade prices paid throughout the 4th Quarter 1960 by 12 manufacturing
plants on Grays Harbor are shown in Exhibit B in Appendix.) It is also
our opinion that log values should not be based entirely on Grays Harbor
prices, but should be based on the weighted average for the Puget
Sound-Grays Harbor markets. The weighted average log values for the
combined Puget Sound-Grays Harbor markets have been computed (See
Exhibit A in Appendix).
The average log values as they pertain to the Taholah Unit may now be
computed by applying the weighted average Puget Sound-Grays Harbor log
grade prices to the previously determined 3-year average grade
percentages for each species. This is shown in table on following page:
DETERMINATION OF AVERAGE LOG VALUES FOR UNIT TABLE OMITTED SEE ORIGINAL
Logging costs estimates used in this report are based on separate
computations for cedar as opposed to hemlock and other species, since
C.B.H., log size and defect, both in standing timber and in logs, are
much greater in western recedar than in hemlocl and other species. The
amount of defect and size of timber directly affect falling & bucking,
yarding & loading and hauling costs. The study of logging costs is on
file at the hocuien sub-agency and a summary of these costs may be found
in the Appendix as Exhibit C. The logging costs used in this report are
$34.52 for cedar and $34.15 for all other other species.
Sufficient information is now available to make an appraisal of
stumpage value for each species on the assumed basis that the timber on
the unit was now being offered for sale. The appraisal provides for a
profit and risk allowance of 12 percent for cedar and 10 percent for all
other species. Since the stand contains approximately 65 percent cedar,
the average profit and risk allowance is about 11 percent. At the time
of purchase, the computed profit and risk factor was about 10 percent.
The appraisal follows: TABLE OMITTED SEE ORIGINAL ADJUSTMENT BASED ON
RELATIVE RELATIONSHIPS
As shown earlier in the report, conditions at the time of purchase
were such that the operator had a profit and risk factor of about 10
percent. Any adjustment of the stumpage rates which will result in
approximately this factor will be relative to conditions under which the
timber purchased.
The computation will first be made on the basis of the profit and
risk factor established at the time of sale for each species. It will
then be completed on the basis of the average log value, production
cost, and stumpage for all species. He attempt will be made to retain
the exact relationship of one species to another as existed at the time
of sale, as many of these relationships were accidental and there is
considerable interdependence between the species. Thus, the stumpage
rates will be adjusted to obtain a reasonable distribution of stumpage
values.
The computations using the individual profit and risk factor at the
time of sale is as follows: TABLE OMITTED SEE ORIGINAL
The average log value, production cost and stumpage is obtained by
weighing the factor for each species by the percentage of each species
cut for the 3-year period January 1, 1958 through December 31, 1960.
The results are: TABLE OMITTED SEE ORIGINAL
The average profit and risk factor is now computed as follows: TABLE
OMITTED SEE ORIGINAL
The above indicated stumpage value would provide a profit and risk
factor of approximately 9 percent which is somewhat below that computed
for the conditions at the times of sale. This is due to the difference
in the estimate of species composition for the entire unit, as set forth
in the contract, from that actually cut. The percentage of species as
cited in the contract is based on an estimate for the unit as a whole,
while the species composition used above is that actually harvested for
the 3-year period January 1, 1953 through December 31, 1960. For this
reason, the actual cut appears to be more reliable and will be used.
In order to bring the average profit and risk more closely in line
with that existing at the time of sale, and to provide a reasonable
current stumpage value relationship between the species, the above
indicated rates will now be adjusted. The previous determination of
trend value, increase due to grade recovery change and scaling
procedures change, and the direct appraisal will be useful in the
determination of indicated stumpage rates, which will provide the
operator approximately the same profit and risk factor as he had at the
inception of the contract.
These determinations are as follows: TABLE OMITTED SEE ORIGINAL
The average weighted recommended stumpage rate per MBM is $9.27. The
profit and risk factor may be computed as follows: TABLE OMITTED SEE
ORIGINAL DETERMINATION OF RATIOS:
The effective rations may now be determined by applying the
recommanded stumpage rates to the contract index log value for the
fourth quarter 1960: TABLE OMITTED SEE ORIGINAL CHANGED IN EXISTING
RATIOS AND STUMPAGE RATES TABLE OMITTED SEE ORIGINAL RECOMMENDATIONS
It is recommended that the following ratios be made effective April
1, 1961:
Species ............................................. Ratios
Western redcedar ..................................... 17.63
Sitks spruce ......................................... 26.19
Douglas-fir .......................................... 43.17
White fir ............................................ 21.62
Western white pine ................................... 24.37
Western hemlock ...................................... 19.09 Don W
Clark Asst Forest Manager
PUGET SOUND - GRAYS HARBOR 4TH QUARTER 1960 LOG MARKET AVERAGE
PRICES
TABLE OMITTED SEE ORIGINAL (1) Published by Pacific Morthwest Loggers
Association
AVERAGE LOG GRADE PRICES PAID BY GRAYS HARBOR PLANTS
TABLE OMITTED SEE ORIGINAL
1961 ESTIMATED LOGGING COSTS
TABLE OMITTED SEE ORIGINAL ................................ Cedar ......
Hemlock ............................................. & Other Sub-Total
(carried forward) ... $14.40 ....... $13.79 III. DEVELOPMENT COSTS:
A. Road Construction .... 1.79 ......... 1.79 TOTAL LOGGING,
TRANSPORTATION
NOTES:
1. Direct logging costs include all payroll assessments (payroll
taxes, unemployment insurance, etc.) adjusted to local conditions,
using 1960 Region 6 Logging Cost Guide dated 7/15/60. U.S.F.S.
2. Overhead and depreciation costs identical to Forest Service
average cost guide figures.
3. Fire protection cost same as Crane Creak 1960 allowance of
.22 per MBM plus .07 for overhead; this is also identical to that
given in 1960 Forest Service cost guide.
4. Extra costs: line running based on anticipated 1961 operations;
extra branding cost based on costs necessary to brand timber on
allotments as timber is felled.
5. Truck haul computed using Washington Public Services
Commission formula and rates effective in Tariff No. 4-A,
effective October 26, 1960. (Factors used to adjust gross to net
were obtained from R6-1M 179, U.S.F.S. 1955); defect was obtained
from 1960 check scale information.
6. Road maintenance cost determined by allowing .10 per MBM per
mile (18 miles of road).
7. Unloading cost obtained from 1958 cost guide, Region 6,
U.S.F.S., dated 9/12/58.
8. Road construction costs computed using volume estimated in the
1961 inventory report; detailed cost breakdown of construction
cost estimates prepared by Forest Engineers on Agency staff;
amortization schedule on file at Hoquiam Sub-Agency Office.
TAHOLAH LOGGING UNIT
.............................................. Cedar ... Hemlock Stand
and Logging Information: ......................... & Other 1. Average
D.B.H. ............................. 33" ....... 21" 2. Aver.
volume/acre (net) .................... 59M ....... 54M 3. Aver. %
defect & breakage (% of net) ....... 59% ....... 20% 4. Aver. "scaling
defect"...................... 22% ....... 13%
TABLE OMITTED SEE ORIGINAL
I. FALLING & BUCKING:
a. Cedar ............. : $4.08 x 1.14 = $4.65
b. Hemlock & Other ... : $4.08 x 1.03 = $4.20
II. YARDING:
a. Cedar ............. : $6.20 x 1.04 = $6.45
b. Hemlock & Other.... : $6.20 x 1.13 = $7.01
III. LOADING
a. Cedar ............. : $1.60 x .99 = $1.58
b. Hemlock & Other ... : $1.60 x 1.07 = $1.71 EXTRA BRANDING
COSTS
TAHOLAH UNIT
3 men @$500 per month = $15,000 10% overhead ........ = 1,500
Volume removed 1/1/60 to 12/31/60: 33, 705 MBM Cost per MBM: (based on
last years production)
$16,500 divided by 33,705 MBM = .489 or .49 per MBM
LINE RUNNING COSTS
TAHOLAH UNIT
Volume removed 1/1/60 to 12/31/60: 33,705 MBM COST PER MBM: (based on
last years production)
$235 per mile x 10-1/2 mi. = $2,467.50
..............................2,467.50 (lines run twice)
$4,935.00 divided by 33,705 MBM = .146 or .15
NOTES: 1. Line running or property line surveying costs obtained from
Appraisal Handbook, Bureau of Land Management, Oregon State
Office, Portland, Oregon, December 1960. Their breakdown of
of cost estimates based on high order surveying suggested by
Cadastral Engineers is as follows:
Conditions Encountered:
a. Fairly dense timber where topography and underbrush are
moderate - $175/mile. b. Rough topography and dense brush -
$300/mile.
An average cost of $235 per mile of line has been determined as
representative of the conditions encountered on the Quinsault
servation in the virgin timber stands.
HES-004-0508-0529
HES-004-0508-0529
IIJ61.1
601018
CORRESPONDENCE
DUAN, BRYANT R ; ALOHA LUMBER CO
ALOHA LUMBER CORPORATION
5558 White-Henry-Stuart 3
Seattle 1, Washington
Secretary of the Interior c/o Commissioner of Indian Affairs Interior
Building, Washington, D.C. Attn: Branch of Forestry
Dear Sir:
Taholah Logging Unit Contract No. 1-101-IND 1766
Under paragraph 10 of the subject contract, you or your duly
authorized representative may "upon submission by the purchasers of
evidence satisfactory" find that a change in the existing ratios between
stumpage rates and the Grays Harbor-Puget Sound log prices appeared
warranted, provided, however, that ratios are not to be changed oftener
than once in any calender year.
As you know, the increases in ratios put into effect during the
calendar year 1960 are the subject matter of our presently outstanding
petition for appeal. Without waiving in any way our objections to the
ratio increases so established during the calender year 1960 for and in
prior years and our rights to have such ratio increases reviewed upon
appeal for the reasons set forth in our notice of appeal, Aloha Lumber
Corporation requests that you now review the ratios and establish
reduced ratios effective January 1, 1961.
The purchaser submits the following in support of its request for
review and reduction in the applicable ratios.
ORIGINAL CONTRACT RATIOS SHOULD BE RE-ESTABLISHED
First, for the purpose of the record, we deem it advisable to restate
our basic position. For this purpose, we are incorporating herein our
letter of December 3, 1957. In this connection, the material in our
letter of December 3, 1957, is germane insofar as it sets forth the
contract history and our contentions with respect to your rights and
limitations with respect to changes in ratios. Since the inception of
the contract, we believe there has been no basis for a finding "that the
character of the operation, changes in marketing conditions, or
technological developments, have altered the situation to such an extent
that a change in the existing ratios Secretary of the Interior Page Two
October 18, 1960 between stumpage rates and the Grays Harbor-Puget Sound
log pices appeared warranted". it is our further position and
contention that any change in ratios should only reflect the effect of
any such alter- ation. From you Revaluation Reports and our
conferences, we are satis- fied that in the first place changes were not
made by reason of any such required alteration, and in the second place
that such changes were not established to reflect the effect of any such
alteration.
Accordingly, we hereby again request that the original ratios pro-
vided in the contract be re-established.
RATIOS SHOULD NOW BE REDUCED - IRRESPECTIVE OF
BASIS UPON WHICH PREVIOUS INCREASES WERE MADE
It is our belief that it would serve no purpose here to again belsbor
our contentions with respect to the contract terms and provi- sions
which we have made abundantly clear in the past. Accordingly, without
intending in any way to waive our heretofore stated position or rights,
we are of the opinion that based upon the method which you have, in
fact, used in your past detensinations, that substantial reductions in
ratios should be made effective commencing January 1, 1961.
The log and lumber markets have deteriorated drastically from the
markets upon which your last ratio increases were based.
DRASTIC REDUCTIONS IN LOG PRICES
From your 1960 Stumpage Revaluation Report and material furnished to
us at the time of the hearings, it appeared that other than for the
change in scaling practices you based your adjustments in ratios upon
"changes as indicated by trend" and "direct appraisal". Under both the
"trend" and "appraisal" approach, it is apparent that primary consid-
eration in increasing ratios was given to the increase in average log
prices between the first quarter of 1950 and the average log prices for
the first quarter of 1960. For instance, you determined, as set forth
in your Stumpage Revaluation Report of 1959 under the heading "Changes
as Indicated by Trend" that average cedar log prices per M for the first
quarter of 1950 were $44.93 and those for the first quarter of 1960 were
$11.83 more, or $56.76, and then took one-half of the increase to show
"Indicated Trend - Stump. Rate". The same was done for the other
species. For the thire quarter of 1960, the Pacific Northwest Loggers
Association reports that the average cedar log price for the Grays
Harbor market was $44.81] This is some 13 cents below the average log
price for cedar at the time of the inception of the contract and $12.95
per M below your figure for the first quarter. Further, since 1950
there have, of course, been tremendous percentage increases in labor
costs and other costs. In July of this year a further 7-1/2 cent an
hour labor increase was incurred.
The basis upon which average log prices were determined for your
report pursposes is not readily apparent to us, and for that reason we
have not been in a position to point up the drop in average log prices
for each specie and grade thereof. However, we are attaching the
Northwest Loggers Association Composite Sales Anaylsis for the last
quarter of 1959 and the first and third quarters of 1960 for both the
Puget Sound and Grays Harbor areas.
As shown by the Pacific Northwest Loggers Association Composite Sales
Analysis, the average price per M for No. 1 cedar logs for Grays Harbor
logging companies from the last quarter of 1959 to the third quarter of
1960 dropped $18.08 per M and between the first quarter of 1960 and the
third quarter, $13.74 per M. Price reductions for other grades and
species, while not so drastic, have generally been severe. There has
been further deterioration in log prices since these reports.
CEDAR, LUMBER AND Shingle PRICES
Lumber, shingle and shake prices have dropped even more drastically
than log prices. The market deterioration is evidenced by the attached
Crows Price Reporter for September 29, 1960, and October 29, 1959, and
our lists of September 28, 1960, and October 14, 1959. Further, it is,
of course, well-known that in a market such as this it is necessary to
sell straight cars and reductions must be made for straight cars which
result in a sales realiztion well under the total list for each item
included. In other words, the reduction in price is actually more than
indicated by the lists
The collapse in lumber market prices is from $40.00 per M with
respect to clear items of western red cedar to lesser amounts on other
items The market for the western red cedar shingles and shakes has also
drastically been undermined in the same period.
LABOR INCREASES
We have heretofore brought to your attention the temendous percentage
increase in labor costs since the inception of the contract. Since the
last ratio increase a furhter 7-1/2 censt per hour wage increase was put
into effect. It is more than apparent that under present conditions,
taking into consideration the large increase in labor costs and other
costs since 1930, that even if the original ratios were restored an
adequate margin of risk and profit would not be available and certainly
nothing like the margin of risk and profit upon which the original
contract prices were based.
ALOHA's MARGIN OF PROFIT FAR FROM ADEQUATE
Aloha's operating results for the fiscal year ending October 31,
1960, are not yet available. For the 10 months ending August 31, 1960,
Aloha showed a tentative profit of $56,098.98. However, even with all
of the drastic steps which Aloha has taken to reduce its operating
expenses, Aloha is losing money now and by the end of its fiscal year,
October 31, 1960, it is doubtful that Aloha will show any profit.
Aloha's total invested capital as of April 30, 1960, was $2,623,835
00, which total invested capital has all been required in connection
with the carrying and servicing of the subject contract. It is more
than clear that Aloha could not realize the original anticipated profit
and risk allowance and profit and risk margin on its invested capital
even if the original ratios were re-established. In earlier reports we
have drawn your attention to the fact that during the life of this
contract, even taking into consideration the profit realized from the
cutting of Aloha's own low-cost stumpage, Aloha has not realized
anywhere near the margin of profit upon which the original contract
prices were based.
We have not set forth our log costs and soerating costs since you
have such information available and it is our understanding that you do
not question the fact that our logging costs and other costs are, if
anything, lower than those generally prevailing in the area.
ALOHA'S LOG MARKET IN GRAYS HARBOR AREA
As we have heretofore pointed out, Aloha Lumber Corporation is forced
to operate in the Grays Harbor area. In the sale of logs it has only
the Grays Harbor market available. This market is substantially lower
than the conbined Grays Harbor-Puget Sound market. While, for the
purpose of contract stumpage, adjustments based on the original
contracted for ratios the increase or decrease in the combined Grays
Harbor-Puget Sound market seems an adequate measuring stick of price
percentage trend, when used as you do in direct appraisal and profit
studies it obviously results in an unrealistic and distorted measure of
profit and risk available to Aloha. Aloha just does not have available
to it the Puget Sound log market. Further, the trend of Puget Sound
when used for the purpose of direct appraisal may and often is wholly
irrelevant to the Grays Harbor situation.
TREND AND APPRAISAL STUDIES SHOULD
If the automatic contract method of price adjustments is not to be
used, then at least a realistic appraisal of the profit and risk
available to Aloha should be undertaken by you. This should not be
based upon prices available in the Puget Sound market which are not
available to Aloha, nor should it be based on theoretical conditions
which, in fact, do not exist. As heretofore pointed out, Aloha's entire
operation (except for profit realized from cutting some of its own low
cost stumpage) has been with respect to its operations under the subject
contract. It is, therefore, very easy to determine, in fact, the actual
margin and risk factor available to Aloha and what can be anticipated
under ratios from time to time established.
While Aloha has always taken the position that under the subject
contract an automatic method of increasing and decreasing stumpage
prices has been provided and that there nevetr has been any occasion
calling for a redetermination of ratios, still Aloha earnestly requests
(without waiving its stated position) that if the non-contract method of
determination is again used, such determination be in the light of
realistic markets and to the acutal facts and conditions under which
Aloha operates and under which the contract was entered into. Over the
years it has again and again been more than apparent that, if anything,
ratios should have been reduced rather than increased in order to result
in the anticipated risk and profit to Aloha which were originally
contemplated.
There is every indication that there is no immediate prospect for
market improvement at this time.
CONCLUSION
In conclusion, it is our understanding that under the contract
provisions the ratios can be adjusted once each calendar year.
Firstly, it is earnestly requested that you again review the contract
provisions in light of a legal interpretation thereof and the principles
that should guide you in changing ratios; and that, effective as of
January 1, 1961, you place the ratios back where they were at the time
the contract was first entered into.
Secondly, while Aloha is firmly convinced that the original conctract
ratios should never have been altered in that there never has been any
basis for raising or lowering these ratios under the contract
provisions, Aloha nonetheless because of what it feels to be inadequate
legal remedies, has been forced "to live" with your method of
determining ratio increases. In the event you continue to consider that
youhave the right to raise the ratios without regard to what we consider
to be the proper legal interpretation of the provisions, we also
earnestly request that you now review the ratios and, effective as of
January 1, 1961, reduce the ratios to reflect the drastic reductions in
log prices and in the market for our cedar products which has taken
place since your last reports, and also consider the effect of the 7-1/2
cent an hour wage increase.
Although we do not beliveve tht your approach to consideration of
increase in ratios based upon trend studies and appraisal studies and
other items set forth in your various reports is the proper legal
approach, we do feel that under any realistic, down-to-earth appraisal
of trends and markets, after taking into consideration the large
percentage increase in labor costs and other costs since the inception
of the contract, ratiso should in such light be reduced considerably
below those originally called for under the contract. Upon the basis
you have approached the matter, it would seem only proper that ratios be
established that would, in fact, result in the margin of profit and risk
originally anticipated.
Moss, Adams & Co., Certified Public Accountants, will prepare an
audited profit and loss statement covering our fiscal year ending
October 31, 1960. This will probably be availabel prior to December
1st. We will forward a copy of this to you when it is available.
We would appreciate the opportunity of furnishing you with any
detailed information you may desire in connection with our request for
review.
cc: Bureau of Indian Affairs,
Western Washington Indian Agency, 1620 Hewitt Avenue, Everett,
Wash. Attn: C.W. Ringey, Superintendant
HES-004-0530-0536
HES-004-0530-0538
IIJ60.3
SCTY OF INTERIOR COMM OF INDIAN AFF ; BR OF FORESTRY
600000
CORRESPONDENCE
SMITH, PAUL R ; M R SMITH SHINGLE
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
HES-004-0537-0538
HES-004-0530-0538
IIJ60.3
571203
CORRESPONDENCE
SMITH, PAUL R ; ALOHA LUMBER CO
December 3, 1957
The Secretary of the Interior, Washington 25, D.C. Dear Sir:
Under date of September 9, 1957, we informally wrote Mr. C. W.
Ringey, Superintendent, Western Washington Agency, applying for reduced
ratios under the contract. This letter is for the purpose of
supplementing our application and request in accordance with your
comment some weeks ago and our attorney's recent conversation with Mr.
Wershing in Washington D.C.
Under paragraph 10 of the contract, you, or your duly authorized
representative, may "upon submission by the purchaser of evidence
satisfactory" find that a change in the existing ratios between the
stumpage rates and the Grays Harbor-Puget Sound log prices appears
warranted, provided, however, that ratios are not to be changed oftener
than once in any calendar year.
The purchaser submits the following in support of its request for a
review and a reduction in the applicable ratios effective January 1,
1957.
First, it seems best to briefly review the contract history. The
contract is a twenty-eight year cutting contract entered into in August,
1950, covering approximately 550,000,000 feet of various species, of
which an estimated 360,000,000 feet was western red cedar. By far the
majority of the timber concerned is located on allotted Indian lands.
Under the contract, we agreed to cut and buy prior to April 1, 1978, all
of the merchantable timber marked or otherwise designated for selective
logging on the areas concerned and we agreed to cut and pay for not Icas
than 20,000,000 feet during each year of the contract. We were limited
to not more than 100,000,000 feet in any three-year period. The
Secretary of the Interior Page 2
We originally bid $9.75 per M for cedar and $3.90 per M for the
hemlock, the two predominant species. Bid prices for other species are
not mentioned in the interest of simplification.
Pursuant to the provisions of the contract, stumpage prices for each
specie were to be adjusted periodically based upon changes in the Puget
Sound-Grays Harbor log markets. The origial percentage relationship
between such log prices and the original stumpage prices bid were set
forth in the contract, and each quarter the stumpage for each specie was
to be adjusted to bear the same percentage relationship to the Puget
Sounds-Grays Harbor log prices.
When the contract was negotiated, the Superintendent of the Taholah
Indian Agency and his representatives were, of course, fully acquainted
with the nature of our operations and fully realized that we were then
only involved in and only contemplating for the future a cedar mill
operation; and that in order to carry out the contract requirements
extensive improvements to the mill facilities would be required. In
addition to the foregoing, the Superintendent and his representatives
were further aware that we were required by the contract to make advance
payments in excess of $1,500,000.00 under the terms of the contract, in
addition to filing a bond in the amount of $75,000.00 and making cash
deposits of $140,000.00. It was further apparent to them that the
advance deposits required under the contract could not be recovered by
us for many years and only entirely when the timber concerned had been
completely cut. Even seven years later we still have tied up in advance
payments approximately $1,400,000.00. An equal sum of money invested in
cutright timber purchases or in other ventures might well have proved
quite profitable by now.
Under Section 10 of the contract, existing ratios between stumpage
rates and log prices could be changed only if the Secretary or his
representative "finds that the character of the operation, changes in
marketing conditions, or decimological developments, have altered the
situation to such an extent that a change in the existing ratios between
stumpage rates and the Grays Harbor-Puget Sound log prices appears
warranted."
Acting under this provision (which is distinct from and in addition
to the automatic increases in stumpage prices based on Increased log
prices), and over our objection, you increased the The Secretary of the
Interior Page 3 percentage ratios effective October 31, 1955, on the
stated basis that such increases were justified by changes in marketing
conditions and the character of the operation. For instance, the
percentage with respect to cedar was then increased about ten per cent
from 20 09% to 22% and that of hemlock about fifty per cent from 10.17%
to 15%. We felt obliged and forced to pay the increase even though (1)
in our opinion there appeared to be no justification for the finding by
you that the nature of the operation and changes in marketing conditions
had so altered the situation as to justify any increase whatsoever, and
(2) there appeared no factual basis for any such increases.
Some months later, the percentage ratios were again increased, this
by reason of a change in method of scaling. We felt that this last
increase was in order as properly representing either "a change in
marketing conditions" or the "character of the operation" of such a
nature as to call for an increase in the percentage factor to properly
reflect the originally intended ratio between log prices and stumpage.
The ratios were again drastically increased effective April 1, 1957,
over our strenuous objections, the percentages for cedar being than
increased about 15% from 25% to 28.25% (originally 20.09%) and the
percentage for hemlock about 22% from 19.50% to 23.75% (originally 10
17%). The total increases in ratios from the data of contract were thus
about 40% for cedar and 134% for hemlock over the original bargained for
ratios.
As stated, we protested the increases, taking the position that the
character of our operation had not altered nor had marketing conditions
changed in any way to justify a change in the ratios, and further that
even if the contract did in fact leave the matter wholly at your
discretion on the basis of general economic factors (which we
emphatically deny), the ratios should have been decreased rather than
increased. We were permitted to discuss the matter only with the same
agency representatives who first proposed the increases and had a number
of meetings with them, but on no occasion were we afforded the
opportunity of review, nor the opprotunity of confronting and analysing
the factual basis upon which you purported to act.
You will recall that under date of June 27, 1957, Hatfield Chilson,
Under Secretary of the Interior, by wire dated June 27, 1957, turned
down our request of June 20, 1957, for an opportunity to consult with
either you or some other representative of your office who would be able
to consider and weigh the matter on a review basis. The Secretary of
the Interior Page 4
We remain fully convinced that the increases in ratios made effective
April 1, 1957, as well as those made in October, 1955, were not proper,
and were not justified under any possible interpretation of the contract
term, and in making this request for a review at this time, we do not
acquiesce in the two increases in ratios which have been made; not do
we intend thereby to accept and be bound by an interpretation of the
contract provisions which appears to us to result in a complete
disregard of not only the intent at the time the contract was entered
into, but also of the clear unambiguous wording of the contract.
We earnestly and sincerely feel that we are placed in an impossible
position.
It is the opinion of our legal counsel that we probably do not have
any adequate legal remedy under the circumstances and that even if a
remedy exists it might take years to determine this matter in court;
and further, that with the increased amounts being distributed to the
individual Indian allottees concerned, it would be very questionable
that any judgement eventually granted could effectively be collected.
In the meantime, we are saddled with our large investment in plant
improvments as well as the prepayments under the contract (now about
$1,480,000,00) and we must if possible continue our operations under the
contract in an attempt to salvage something from these investments. We
were losing money in our operations at the time the ratios werr further
greatly increased in April, 1957, and necessarily have since faced a
substantially increased rate of loss.
It is our opinion and our counsel's opinion that we can get just,
proper and adequate relief from our Government in spite of the tangled
situation in which we find ourselves. If this were a matter between two
interested parties, there might be some occasion for feeling that legal
redress was the only avenue open. However, where you, under your own
contract, assumed the responsibility of of acting for both of us in a
judicial and impartial manner, there should be no reason why a solution
which is fair and equitable to us as well as the Indians cannot be
worked out in some manner. In fact, it is the very peculier position in
which you, as a representative of our Government, act, which raises the
question of adequate legal remedy. If this were a matter involving
Forest Service timber, the United States could be sued in the Court of
Claims, and adequate judicial relief would be available. However, that
is not the case and it appears we cannot bring suit against the United
States. The Secretary of the Interior Page 5
It is in light of the overall situation, and in the hope that this
time we can get an adequate review of the whole picture, that the
request is now made, not only in the light of the situation since the
ratio increase of April 1, 1957, but in light of the overall picture
since the inception of the contract.
It is our understanding that you took the position at the time of the
lost increase that you wer not limited to the factual situation only as
it had changed from the date of the last review of the matter but could
examine and review the matter from date of contract.
In support of our request for review, we incorporate herein by
reference all of the material and matter presented in connection with
the review of the increases made effective April 1, 1957. It would not
appear to serve any purpose at this time to review in detail the
information already in your possession. However, upon hearing that you
intend to review the matter we will proceed to prepare further factual
date. THERE WAS NO ALTERATION IN CHARACTER OF OPERATIONS OR CHANGES IN
MARKETING CONDITIONS
1. The "character of the operation" as originally considered
has not altered to any extent, nor have you presented us with any
evidence that it had. Further, there is nothing factually in any
of your reports which appears to us to support any such finding on
your part. At the time the contract was entered into, and at all
times since, our manufacturing activities have been confined to
cedar products. Species of logs other than cedar have from the
inception, as originally intended, been disposed of in the open
market at the best prices available. A cedar wood product
manufacturing business is greatly different from a fir or pins
lumber manufacturing business. Traditionally, they ave been
carried on separate and apart. You did not require of us at the
time of the original contract, not was it ever contemplated by us
or you that we would build and operate a pulp mill, or, for that
matter, construct and operate any kind of manufacturing mill other
than the cedar will we were operating at the time the contract was
entered into. It was well-known that the timber in the contract
was predominently a cedar stand, relatively unique, and subject to
entirely different market and
The Secretary of the Interior Page 6
economic factors then stands of timber which do not contain such a
high percentage of cedar. It is true that if we invested the many
millions of dollars that would be required in building a pulp will
to handle the hemlock, we might conceivably be able to operate to
an end profit after absorbing the loss on our logging and wood
manufacturing operations resulting from increased ratios. The
contract obviously did not contemplate this, nor would we have
ever entered into the contract had it done so. At no time have
your representatives advised us in what respect they regrd that
the character of the operation has changed.
2. We believe we effectively demonstrated that there had
been no changes in "marketing conditions". Here again, our
operation is just as originally contemplated, primarily a cedar
shingle and cedar lumber manufacturing operation, with logs of
other species developed in our logging being sold in the open
market. We have always been obliged to and still are required to
sell our hemlock and other non-cedar logs in the open market for
the best prices obtainable. Here again, your representatives have
never advised us in what respects they regard that there have been
any changes in "marketing conditions" and we know of none. Of
course, log prices and stumpage rates have fluctuated but the
contract contains an automatic method of making the adjustments
required by these.
Concluding this phase of the matter, you are well acquainted with our
operation and marketing conditions. We are convinced there was no basis
for changing the ratios at any time. However, we should not be required
to grope in the dark. We feel we should be advised of what facts you
feel legally support your claim of alterations and changes so that we at
least have the opportunity of considering them and discussing them with
you. EVEN IF ALTERATIONS IN CHARACTER OF OPERATION OR CHANGES IN
MARKETING CONDITIONS DO EXIST THIS DOES NOT GIVE BUREAU UNRESTRICTED
AUTHORITY TO CHANGE RATIOS
Even assuming that there were alterations in the character of the
operation or changes in marketing conditions which in both 1955 and The
Secretary of the Interior Page 7 1957 supported your finding, this would
not open the door wide to a completely new valuation of the timber as a
matter of first instance. Instead, it is our contention that under the
contract provisions the the percentage ratios of stumpage to log prices
should only be adjusted to reflect the actual effect on the ratios of
the alterations in the character of the operation or the changes in
marketing conditions which you found to exist. For instance, it is
clear that the change in 1956 in method of log grading, which resulted
in an increased footage volume in our favor, called for an increase in
the percentage ratio of log priced to stumpage in order to compensate
for the unwarranted benefit which we would otherwise have received.
This is what your then adjustment in ratios accomplished. However, it
would certainly not have been proper under the pretext of such a change
in grading methods to have reconsidered the entire stumpage valuation as
a matter of first instance. BUREAU REPORTS AFFIRMATIVELY INDICATE RATIO
INCREASES NOT BASED ON ALTERATIONS OR CHANGES
(1) Contract provided automatic method of revision of stumpage
From your report this last Spring on our protest, and from material
which you furnished to the Sub-Committee on Indian Affairs in connection
with their hearings, it would appear that the only change which you had
considered to exist was the substantial increase in value of lumber
products and stumpage prices generally, except for your consideration of
log grade recovery. The timber construct itself in paragraphs 8 and 9
thereof set forth an automatic procedure to be followed to adjust for
changing values - that was the purpose of the log price stumpage
percentage ratios.
(2) Contract does not authorize alteration of ratios on basis
With respect to log grade recoveries, paragraph 7 of the contract set
forth "weighted average prices of logs" which was based upon your
analysis of expected grade recoveries during the life of the contract.
You had made an extensive study of the area and we had made a lesser
study, but we had each reached our own conclusions, and the original
contract stumpage prices was on our part based upon our own analysis.
The Secretary of the Interior Page 8 Paragraph 9 of the contract
specifically set forth that you should "calculate the average log price
of each specie on the same basis and using the same grade percentages on
which the average log prices for the fourth quarter of 1948, as shown in
Section 7, were determined". Clearly, the actual log grade recoveries
cannot be known until most of the timber has been removed. In arm's
length bargaining, the parties proceeded on the basis of their own
estimates as they must do on any sale. It would seem clear the from
time to time grade realiz- ations should not and were not intended to be
a change "in marketing conditions" or an alteration in "character of the
operation" such as to call for an adjustment of ratios unless they were
brought about by sources such as a change "in marketing conditions"
which is not the case.
In any event, our actual grade recovery as to cedar, according to our
present information, is very close to that which we originally estimated
by you, and what little difference there is could easily result from the
fact that certain of the areas logged to date have been above average in
grade recoveries. If the contract had been intended to be adjusted for
changes in grade recoveries from year to year based upon actual
experience, it would certainly have so stated.
(3) Contract provisions meaningless if ratios are to be
Your 1957 written report to the Senate Sub-Committee now available to
us contains the statement:
It is clear from this statement that only changes in values were
considered by you as justifying ratio changes, rather than changes "in
marketing conditions" or alterations "in the character of the
operation". Further, from this report it is apparent that the new The
Secretary of the Interior Page 9 ratios were derived by a unilateral
determination by your office as to what the maximum stumpage should be
without reference to the contract provisions and "the mutually agreeable
relationship that was established when the contract was executed". In
other words, the change in ratio has no relationship whatsoever to any
changes in marketing conditions or the character of the operation. It
would appear that if this is proper the contract provisions are
meaningless. It is as though you had stated in the contract you
prepared that the prices to be paid should be as you from time to time
saw fit to put in effect on behalf of the Indian allottees only - in
which event there would obviously have been no contract entered into by
us.
(4) Analysis of Bureau's method of arriving at stumpage
In your report to the Senate Sub-Committee, various stated methods
for arriving at stumpage rates were mentioned. Under "market trend" you
book the original bid rates and added to it one-half of what you
considered to be the change in average log prices for the fourth quarter
of 1956 over average log prices for the first quarter of 1950. This
resulted, for instance, in an increase of stumpage ratio for western red
cedar from $9.75 per M to $16.46 per M or an increase of $6.71 anf for
western hemlock from $3.90 to $11.01 per M or an increase of $7.11 per
M. Under the contract provision for price adjustment with respect to
cedar is only 20.0% of the $13.41 change of average log prices of $2.70,
rather than 50% thereof or $6.71; and, with respect to hemlock is only
10.11% of the $14.22 change in average log prices or 82 cents, rather
than 50% thereof or $7.01. Just where the 50% figure came from was not
explained and it is respectfully submitted that the application of 50%
does not properly take into consideration increases in cost, etc., and
also flies directly in the face of the contract.
In your same report under the heading "trends-quality change" an
adjustment is made based upon estimated log grade recovery based upon
experience to date, and with respect to western red cedar a further
$1.66 per M is added and with respect to western hemlock $3.17 per M is
subtracted from the artificial figure mentioned above when 50% of the
increase in log prices was added to the original bid prices rather than
the contract percentages. As hereafter set forth, it is not The
Secretary of the Interior Page 10 believed that grade recovery
experience justified altering the ratios and reference is made to (b)
below for our comment.
Under the heading "trend-quality-scaling change" a further increase
is made for changes in scaling practices. We have always recognized
that an adjustment was in order based upon the change to Bureau log
scaling methods since under Bureau method the scale is less and
therefore the percentage relationship of stumpage to average log price
should be higher, and we believe this demonstrates the purpose of the
contract in including a method of altering the ratios to truly reflect
the effect of such a change. However, such change should only reflect
an adjustment as to the original estimated weighted log averages, rather
than as to a from time to time grade recovery. In other words, it is
believed that any change in log scaling methods which results in a
change in the percentage relation- ship between log prices and stumpage
prices as compared with the former method of scaling is a change which
is properly reflected by a change in the ratios but as is true with all
other changes, the change should only be in such amount as would have
originally resulted had such factor been taken into consideration at the
time the contract was first entered into.
Under the heading in your report "stumpage appraisal" the stumpage
was obviously computed on estimates of "the value of the product", less
"cost of production" and less "the lowest acceptable rate of return to
the owners on any offerings". Our actual operating losses for the last
quarter of 1956 and the first quarter of 1957 showed conclusively that
there was no possible room for any profit based on stumpage rates in
effect prior to the increase let alone after the ratio increases] Since
then the situation has further deteriorated.
In your report to the Bureau of Indian Affairs under "stumpage
appraisal" it is stated that our contract "requires that the factors to
be considered in adjusting ratios are alteration in the character of the
operation, changes in market conditions, or (illegible) factors. This
is an erroneous statement since water provisions on our contract the
factors to be considered are in fact alteration in the character of The
Secretary of the Interior Page 11 the operation, technological changes
and changes in marketing conditions only. Following the statement above
quoted from your report is the statement, "under these circumstances,
the appraisal must take into consideration the applicable stipulated
changes" - in other words, alterations in character of operation and
changes in marketing conditions. With this we agree, but are convinced
and your report clearly evidences that in fact you want far beyond these
factors and made the ratio increases without reference to such
alterations and change.
Reference in your report also under the heading "stumpage appraisal"
is made to a profit and risk allowance which was stated by you as not
originally used in determining the stumpage prices but which was stated
to have been used by you in connection with the 1955 increase in ratios.
Our operating experience then and now clearly showed that there was no
room for any profit on ratios in effect prior to April 1, 1957, let
alone increased ones.
In mid-1957 in face of a disastrous actual operating experience on
our part, and a most evident serious continued general market decline,
ratios were drastically increased apparently on the basis primarily of
either (*) taking an arbitrary 50% of the increase in average log prices
for the first quarter of 1950 over the average og prices for the fourth
quarter of 1956 rather than the far lesser percentages specifically
called for by the contract, or (2) on a figure which supposedly allowed
"the lowest acceptable rates of return to the owners on new offerings"
but which in fact left room only for greater losses on our part. It is
respectfully pointed out that your method used in arriving at the ratios
had no reference to the original bid prices and the method provided for
reflecting market value increases. Nor did the increases even purport
to reflect the actual effect of any alterations in the character of the
operation and changes in marketing conditions which you determined to
exist. CONTINUED SERIOUS MARKET DECLINE CALLS FOR DRASTIC RATIO
REDUCTIONS
You recognized in your report to the Senate Sub-Committee on Indian
Affairs that as "stumpage adjustment sudies are made on past
performance, there inevitably develops a certain amount of lag in
expressing current conditions", and stated that because of this lag, the
decline in current market conditions should receive only moderate The
Secretary of the Interior Page 12 consideration unless all evidence
points to a serious decline." It is evident that your recent ratio
increases did not reflect the market decline. Information of Certified
Public Accountants furnished to you last spring revealed that we were
suffering heavy losses during all of the fourth quarter of 1956 and the
first quarter of 1957. Our rate of loss has been aggravated since not
only by reason of the continued depressed conditions in the market but
materially by reason of the increase in ratios as determined by you. It
is now more than evident that the decline in market conditions is a
serious one. Assuming the contract calls for adjustments as you have
heretofore determined, ratios should be sharply reduced to reflect what
is now obviously a serious decline. While this was also clear as of the
time that you increased the ratios in mid-1957, it is understood that
you proceeded on the basis of studies made prior to April 1, 1957 and
that as you stated, the current decline received only moderate
consideration.
As of April 1, 1956, No. 1 5X shingles were $10.85 as compared with a
present price of $9.25 and No. 1 perfections as of April 1, 1956 were
$13.10 as compared with $10.00 now. With respect to cedar siding, as of
April 4, 1955, 1/2 x 3 clear was $145.00 and now $125.00; 3/4 x 10
clear were $203.00 and now $175.00. Such reductions projected over our
entire production results in a greatly reduced sales realiza- tion at a
time of increasing operational costs.
Cedar is, of course, our predominant specie and that, together with
hemlock, accounts for most of the balance of our logs. We will continue
to suffer a serious loss with respect to each thousand feet of contract
hemlock which we cut and which we must sell in the open market. As we
advised you in information furnished in connection with our protest to
the proposed increases in 1957, even under the prior ratios the market
price for hemlock logs did not equal our actual logging and
transportation costs plus stumpage, and that under your then proposed
ratio increases for hemlock we would necessarily suffer a loss of at
least $7.00 per thousand on every thousand feet of contract hemlock
logs.
Due probably to generally curtailed operations, we have been able to
obtain better prices per thousand for our hemlock logs and at the
present time, have reduced the per thousand loss to about $5.00 rather
than $7.00. The Secretary of the Interior Page 13 OUR COSTS IN LINE
WITH OR LOWER THAN INDUSTRY AVERAGES
At the time of the hearing, we furnished you with out actual logging
costs and actual transportation costs. We further furnished you
information indicating that our costs were at least in line with if not
lower than industry averages. We are satisfied that our opera- tion
costs have been in line, and we have taken every step possible to
attempt to curtail our logs such as stumpage purchases in the open
market at rates below yours and immediate cutting thereof, cutting of
our own very low cost stumpage, and many other emergency steps in an
attempt to lessen the disastrous losses resulting from ratio increases
put in effect in 1955 and 1957. OUR PROFITS OVER ENTIRE LIFE OF
CONTRACT NOT ADEQUATE
We have heretofore furnished you with information concerning our net
realization during the entire period of the life of the contract, this
without taking into consideration the disastrous losses occasioned this
year by reason of the increased stumpage ratios resulting from your
ratio increases effective April 1, 1957. This was then less than 6.76%
on gross assets used in the business and would be consider- ably lower
if computed now. Further, a good deal of such realization came as a
result of cutting our own very low cost stumpage acquired years ago. As
we pointed out to you, comparable industry realization average for
1946-1949 were 17.1%, almost three times our realization. While
industry overage figures are not available for the period since 1949, it
is believed that they are considerably higher than during the 1946-1949
period just mentioned. Actually, in view of the excellent market
conditions in recent years we should have been in a fine condition to
weather economic states such as are prevalent in our type of business.
Instead, the increases in ratios made in 1935 and 1937 have placed us in
a most precarious position. RATIOS SHOULD NOW BE REDUCED - IRRESPECTIVE
OF BASIS UPON WHICH PREVIOUS INCREASES WERE BASED
Even if our contract permitted unrestricted revaluation by you of
timber out from time to time, it is respectfully submitted that such
revaluation should start with the actual facts. At the time the
contract was originally placed for bid there was no bidding; eventually
we entered into a contract at the prices set by you, no one else being
interested in the timber; the contract called for deposits and The
Secretary of the Interior Page 14 advance payments of an excess of
$1,700,000.00; we are obligated to cut all of the timber; we were
obliged in order to handle the timber to make heavy outlays for will
improvements and grade which had to be recovered over the life of the
contract; and we entered into the contract subject to its restrictions
and (in your apparent interpretation) completely at the mercy of such
determinations as you might make as to stumpage prices which we must pay
for timber we are obliged to cut over a 28-year period.
It is a well-known fact in the industry that long term contracts do
not bring the price per thousand that short term contracts do,
particularly when a large part of the purchase price must be paid years
before the timber can be cut. In this case, the advance payments are in
the hands of the individual Indian allottees and they have had the
benefit of the use of the funds and will have the benefit of them even
though their timer may not be cut for many years. Even though we were
abliged to borrow a large portion of the funds necessary for advance
payments, still such loans are at the risk of our entire equity. We are
obliged to assure the losses occasioned by strikes, fires and other
disasters. In determining stumpage prices based upon the assumption
that you are free from contract restrictions, right should not be lost
of the actual facts. In effect, the Indians sold their timber in 1959
under a long term contract containing many restrictions and obligations
on our part.
It is believed that no matter how the matter is approached either
based upon the contract terminology as we interpret it, based upon
industry trends and economic trends or based on direct appraisal,
keeping in mind the actual facts of the transaction, the stumpage
resulting from the ratios now in effect are unrealistically high. These
present revise have and will continue to result in a confiscation of our
property for the benefit of third parties.
In conclusion, it is our understanding that under the contract
provisions the ratios can be adjusted once each calendar year. It is
earnestly requested that you review the stumpage rates now and the
contract provisions in light of a legal interpretation of their meaning
and the principals that should guide you in changing ratios; and that
effective as of January 1, 1958, you place the ratios back The Secretary
of the Interior Page 15 where they were at the time the contract was
first entered into adjusted only to cover the change in log scaling
practice with respect to grade recoveries as originally computed under
the contract. While it seems impracticable at this time to seek
recovery of the great losses which we have suffered by reason of prior
ratio increases which we feel were improper under the contract, at least
the matter can be corrected from this point on.
In the event that you continue to take the position that ratios are
adjustable in the manner you have in the past, we earnestly request that
you review the ratios effective as of January 1, 1958 in light of the
overall situation and the continued and even aggravated serious
depressed condition of the lumber market, and, in particular, the market
for our cedar products. By any criterion it would appear that present
stumpage prices resulting from the increased ratios effective April 1,
1937, as well as those resulting from the increased ratios placed into
effect in 1935, are much too high. In this connection, our own
experience covering this particular contract is probably the best
criterion of that are proper stumpage values based upon a profit and
risk factor, the method described by you under "stumpage appraisal". We
would appreciate the opportunity of reviewing in detail our actual
operation and pointing out to you that our operation has been efficient
and economical and yet we have not since the life of the contract been
able to realize an adequate and proper return and further, have suffered
grievious losses since the beginning of the fourth quarter of 1956. We
are satisfied that there are no comparable sales of stumpage of time,
type, nature, terms and conditions such as ours which justify stumpage
rates as high as you have determined the Indians should be receiving.
If there are any comparable sales which you consider or are considering,
we would like the opportunity of knowing what they are in time so that
we can analyze them and discuss them with you.
As you well know, many parcels of timber in our area have been placed
up for sale and have found no bidders. As we mentioned before, we have
been able to buy timber at prices considerably below those which we have
been obliged to pay under the contract, even though these purchases were
under terms which permitted immediate cutting without restrictions and
did not tie up large sums of money for years.
Moss, Adams & Co., Certified Public Accountants, are now preparing an
audited Profit and Loss statement covering our fiscal year ending
October 31, 1957. We will forward a copy of this to you when it is
available. The increases made in ratios effective The Secretary of the
Interior Page 16 April 1, 1957, brought about an additional stumpage
charge for just the three-month period ending June 30, 1957 over what
would have been the case under prior ratios of $25,097.65. Necessarily,
our losses were increased this much for that one quarter. Since we had
by that time almost completed cutting of the minimum called for by our
contract, we have since been able to somewhat reduce our rate of lose by
not cutting any further timber subject to the contract.
We would appreciate the opportunity of furnishing you with any
detailed information you may desire in connection with our request for
review
cc: Mr. C. W. Ringey, ......... cc: Mr. Franklin Gary Salisbury,
Superintendent, ............... Assistant Solicitor,
Western Washington Agency, .... Interior Dept.,
Hoquiam Substation, ........... Washington 25, D.C.
Hoquiam, Washington.
HES-004-0539-0554
HES-004-0539-0554
IIJ60.3
SCTY OF INTERIOR
600631
CORRESPONDENCE
; MOSS ADAMS CO
MOSS, ADAMS & CO.
CERTIFIED PUBLIC ACCOUNTANTS
465 SKINNER BUILDING
SEATTLE 1
June 13, 1960
Mr. Paul R. Smith, President Aloha Lumber Corporation 5558
White-Henry-Stuart Building, Seattle 1, Washington. Dear Mr. Smith:
We have reviewed the Stumpage Revaluation Report on
the Taholah unit rendered by the Bureau of Indian Affairs on May 26,
1960, which recommends stumpage rates and changes in ratios to the
average reported log selling prices of the Grays Harbor and Puget Sound
markets, to become effective July 1, 1960, as follows:
................. RECOMMENDED ........................
.................... STUMPAGE ........... RATIOS .....
....................... RATES ......... OLD PROPOSED Cedar
................ $15.10 ....... 24.30% .. 26.15% Spruce ................
17.00 ....... 26.40 ... 28.80 Douglas fir ........... 36.00 .......
41.60 ....46.30 White fir ............. 12.48 ....... 23.45 ... 23.45
Pine .................. 17.00 ....... 24.05 ... 27.60 Hemlock
............... 12.00 ....... 20.70 ... 24.55
WEIGHTED AVERAGE..$14.35 The rates per M feet as recommended were
arbitrarily
fixed by the Bureau, and the proposed ratios are merely the arthimetica
ratios of such rates to the average log selling prices reported for the
two regions for the first quarter of 1960. In support of the arbitrary
rates, the Report sets forth computations of tentative stumpage values
using three different methods, some of which computations produced rates
higher and some lower than the final amounts recommended in the Report.
Since the final rates proposed are not mathematically
computed, our comment will be limited to pointing out some of the
assumptions made in the supporting computations in the Report which
appear to be clearly erroneous.
The Report reaches the conclusion (page 15) that with
the recommended stumpagge rates in effect, the company should realize a
profit per M feet as follows: Mr. Paul R. Smith, June 13, 1960 Seattle
1, Washington Page 2
Log value (p. 12 & 14) .............................. $53.60
Logging and transportation cost ............. $34.28
Stumpage ..................................... 14.35.. 48.63
MARGIN FOR PROFT AND RISK ..................... $ 4.97 PER CENT
OF COST AND STUMPAGE ..................... 10.22% The proposed
cost of logging and transportation to
tidewater of $34.28 is in line with your current experience. However,
it makes no allowance for booming and rafting. Accordingly, either the
log value should be reduced or the cost increased to allow for this
expense, which you estimate to be $2.00 per M.
Although the original advertised terms of the contract
provided an expected profit and risk margin of about 12%, such margin
has been reduced to about 10% in all computations in the Report, citing
as a reason that no greater margin could have been expected in the first
quarter of 1950 when the contract was signed Average Grays Harbor log
prices for the principal species were as follows for the year 1948,
first quarter of 1950 and the year 1950:
.......................................... FIRST ...............
........................... YEAR ....... QUARTER .......... YEAR
........................... 1948 .......... 1950 .......... 1950
Cedar ................... $46.04 ........ $47.22 ........ $59.00
Hemlock .................. 38.47 ......... 31.22 ......... 36.21
White fir ................ 36.61 ......... 32.53 ......... 38.01
Market conditions were poor but impproving when you signed the contract,
as is shown above by the increase in average Grays Harbor prices for the
fullyear 1950 over those of the first quarter. By the method used in
Report, your profit margin would be frozen for a 28-year period at that
available in a single depressed quarter.
Average log value, currently available is proposed
in the Report as $53.60, which is derived from the tabulation on page
11. The values finally used, as set forth in the last column of that
page, are arbitrary amounts asserted to have been determined after
considering the values set forth in the columns preceding. There
appears to be only one measure of the log prices available to you, and
that is those prevailing on the Grays Harbor market. "Forest Service
pond values" are computations taking into account the average milling
costs of a number of mills. However, such costs for a cedar mill such
as yous will exceed $75.00 per M while those of a fir or hemlock mill
will be around $45.00. Likewise, Puget Sound Mr. Paul R. Smith, June
13, 1960 Seattle 1, Washington. Page 3 prices are not available to you,
and you have explained the excess of such prices over those prevailing
on Grays harbor in previous letters to the Bureau. Since you sell all
of your hemlock and white fir logs, the following table comparing your
experience in the six months ended April 30, 1960 with the prices in the
column on page11 "prices paid by Grays Harbor plants", is of interest:
...................................... ALOHA ...... PRICES PAID BY
.................................... AVERAGE .............. PLANTS
Hemlock - No. 1 ..................... $52.70 .............. $53.00
......... No. 2 ...................... 44.13 ............... 45.00
......... No. 3 ...................... 41.84 ............... 42.00
White fir - No. 1 .................... 54.29 ............... 53.00
........... No. 2 .................... 43.99 ............... 45.00
........... No. 3 .................... 41.56 ............... 42.00
For purposes of the above comparison, your average sales price has been
adjusted to tidewater price where necessary. Prices paid by Grays
Harbor plants are $2.00 less than those on page 11 of the Report, to
allow for the deduction for booming and rafting.
The following table compares the log values actually
available to the company (prices paid by Grays Harbor mills from page
11, less $2.00 for booming and rafting) with the theoretical values set
forth in the Report:
.............................. ACTUAL VALUES .............. VALUES
.................................. AVAILABLE .......... PER REPORT
Cedar ............................... $49.51 .............. $55.25
Spurce ............................... 52.00 ............... 56.42
Douglas fir........................... 72.71 ............... 77.57
White fir ............................ 45.57 ............... 49.91
Pine ................................. 54.42 ............... 61.37
Hemlock .............................. 44.50 ............... 45.54
WEIGHTED AVERAGE .................... $48.30 .............. $53.60
The profit and risk margin available to you on the
recommended stumpage values, using realistic log values, would tehrefore
be: Log value ................................................ $48.30
Cost ............................................. $34.28 .......
Stumpage .......................................... 14.35 . 48.63
....................................... LOSS ............. $ (.33)
.............. PER CENT OF COST AND STUMPAGE ................(.68)% Mr.
Paul R. Smith, June 13, 1960 Seattle 1, Washington. Page 4
Since logging costs as computed by the Bureau do not
include any provision for return on invested capital, such amounts must
be provided by an adequate profit and risk factor. During the six
months ended April 30, 1960, the company had an average capital
investment in assets used exclusively in logging operations of
$1,441,000. This amount makes no provision for any working capital nor
for a share of shop and other facilities shared with other departments.
A safe return of 55 per annum on such minimum amount would be $72,053,
or $2.16 per M feet on an average annual log harvest of 33,335M. Any
profit and risk factor used in computing stumpage prices must provide at
least $2.16 per M before there is any actual provision for either risk
or profit. It is (illegible) that at the time the contract was signed,
the Excess Profits Tax Law of 1950 was in effect. The average rate of
return for logging companies, as promulgated by the Treasury Department
and based on actual average earnings for the preceeding near-year
period, was 17% of assets. A return of 17% on your average capital
invested in logging assets would require a profit and risk margin of
$7.35 per M feet on an average annual cut of 33,335M.
Yours very truly,
MOSS, ADAMS & CO.
HES-004-0555-0558
HES-004-0555-0558
IIJ60.2
SMITH, PAUL R ; ALOHA LUMBER CO
600520
CORRESPONDENCE
WERSHING, HENRY F ; BIA
Mr. Don C. Foster Area Director, Portland, Oregon Dear Mr. Foster:
We have carefully checked the "Stumpage Revaluation Report, Crane
Creek Unit" prepared under date of May 17, 1960, and find what appear to
be a few minor items which should be pointed out.
On page 4, in the first table, the profit and risk factor for
Douglasfir should be 1.293 instead of 1.295.
The third line in the first table on page 14 does not include all of
the correct values as derived from the first table on page 13. TABLE
OMITTED SEE ORIGINAL
The weighted log value for Sitka spruce in the second table on page
13 should be $0.39 instead of $0.38. The total would be $55.71 instead
of $55.70. This will also carry down into the formula on page 13.
Carried forward into the formula on page 14 the profit and risk factor
would be 1.1047 instead of 1.1045.
The stumpage adjustment report on the Taholah Unit shows one small
error which has no effect on the results.
On page 16, the change in ratio for Sitka Spruce should be 2.40
instead of 2.60 percent.
Commissioner, Bureau of Indian Affairs Washington 25, D. C.
Dear Sir:
Enclosed is a Stumpage Revaluation Report dated May 17, 1960,
covering the Taholah Logging Unit, Quinault Reservation, Washington.
This report was prepared by Don W. Clark, Assistant Forest Manager, and
John W. Libby, Forest Manager, Western Washington Agency, as of May 17,
1960. Mr. John P. Drummond, Acting Area Forester, has concurred in the
report.
The report indicates that the character of the operation, changes in
market conditions, or other factors have altered the situation to such
an extent that the esisting ratios should be changed. We are in
agreement that the new ratios recommended in the report should be
established.
It will be noted that Mr. C. W. Ringey, Superintendent, Western
Washington Agency, has not concurred in the report. He will be given an
opportunity to review the report and indicate his concurrence in a
separate letter.
Enclosure Copy to: Supt., Western Washington Agency
JPDrummond:du 5/17/60
APPEAISAL AND SALE OF TIMBER
The present Taholah Unit was first appraised in a report dated
November 15, 1948. This appraisal was based on log values (as
determined from past sales) for the first three quarters of 1948. The
trend of log values during the three quarters was largely upward. The
average log values used for the three quarters, however, represent a
generally satisfactory conclusion.
The appraisal was made on the basis of $30.00 per MBM for production
cost. The profit and risk allowance was 15 percent on the cost of
production or $4.50. The results were as follows: TABLE OMITTED SEE
ORIGINAL
The timber was advertised for sale, with bids to be received on July
8, 1949. The approved form of contract for this sale provided that the
stumpage rates bid by the purchaser would remain in effect through March
31, 1950. The reafter, the rates would be adjusted quartermannually, so
as to maintain the same percentage relationship, between adjusted
stumpage rates and the changing market value of sawlogs, as that
originally established between the bid stumpage rates and log values for
the fourth quarter of 1948.
No bids were received; but a sale of the timber was subsequently
negotiated, at the originally advertised stumpage rates and under the
originally approved form of contract.
The negotiated contract was approved May 12, 1950. Consequently, the
bid stumpage rates were immediately modified through operation of the
quarter-annual adjustment provision. Log values had declined from the
fourth quarter 1948 levels, and the stumpage rates immediately effective
were therefore somewhat less than the bid rates, as follows: TABLE
OMITTED SEE ORIGINAL STUMPAGE, COST AND PROFIT RELATIONSHIP AT TIME OF
SALE.
The prices at which this timber was negotiated were immediately
replaced by the automatically adjusted rates that became effective on
April 1, 1950. For this reason, the adjusted rates are a better measure
of stumpage values at the time the timber was sold. These are also the
conditions under which the timber was sold.
Production costs at the time of the appraisal were estimated to be
$30.00. This estimate is considered adequate and will be used for the
purpose of determining the profit and risk factor at the time of the
sale. Log prices used for this purpose were determined from the
combined Puget Sound-Grays Harbor districts past sales for the first
quarter of 1950 as shown in the following table:
FIRST QUARTER 1950 AVERAGE LOG VALUES
Species Grade 1st Quarter ...... Log Grade Percent .....Wtd. Av.
................... 1950 ........ used in ................. Log
................ Av. Log Prices Original Appraisal .... Values
WRC ..... 1 ..... $83.30 ............. 16 .............. $13.33
......... 2 ...... 40.49 ............. 63 ............... 25.51
......... 3 ...... 27.32 ............. 21 ................ 5.74
........................................................ $44.58
......... 1 ...... 49.65 ............. 25 ............... 12.41
......... 2 ...... 35.57 ............. 33 ............... 11.74
......... 3 ...... 29.02 ............. 23 ................ 6.67
........................................................ $43.91
......... 2 ...... 75.60 .............. 7 ................ 5.29
......... 3 ...... 59.24 ............. 13 ................ 7.70
......... S-1 .... 50.57 .............. 2 ................ 1.01
......... 2 ...... 41.14 ............. 46 ............... 18.92
......... 3 ...... 35.57 ............. 28 ................ 9.96
........................................................ $46.26
......... 1 ...... 36.74 ............. 11 ................ 4.04
......... 2 ...... 32.54 ............. 48 ............... 15.62
......... 3 ...... 29.55 ............. 23 ................ 6.80
........................................................ $34.58
......... 1 ...... 48.73 ............. 19 ................ 9.26
......... 2 ...... 36.29 ............. 45 ............... 16.33
......... 3 ...... 30.16 ............. 32 ................ 9.65
........................................................ $37.96
......... 1 ...... 35.53 ............. 18 ................ 6.40
......... 2 ...... 32.81 ............. 43 ............... 14.11
......... 3 ...... 29.58 ............. 25 ................ 7.40
........................................................ $33.39
At the time of sale, therefore, the following relationships existed
between log values, stumpage rates, production costs, and operator's
profit and risk allowance: ..................... WRC ..... SS ..... DF
..... WF ..... WP ..... WH Unit log values
2 markets, 1st
Qtr. 1950 ..... $44.58 . $43.91 . $46.26 . $34.58 . $37.96 . $33.39
Stumpage value ..... 9.65 ... 8.03 ... 9.79 ... 3.49 ... 5.90 ... 3.36
Production cost ... 30.00 .. 30.00 .. 30.00 .. 30.00 .. 30.00 .. 30.00
Profit & risk margin 4.93 ... 5.88 ... 6.47 ... 1.09 ... 2.06 .... .03
Profit & risk factor 1.124 .. 1.155 .. 1.163 .. 1.033 .. 1.057 . 1.001
The average log value and stumpage will be determined:
....................... WRC .. SS .. DF .. WF .. WP .. WH .. Total Vol.
in contract, MM .. 360 .. 43 ... 3 .. 42 ... 7 .. 90 .. 545 Percent of
Volume ... 66.06 7.89 0.55 7.71 1.28 16.51 100.00 Wtd. log value ......
29.45 3.46 0.25 2.67 0.49 . 5.51 . 41.33 Wtd. bid rate ........ 6.37
0.63 0.05 0.27 0.08 . 0.55 . 7.95
The average log value at the time of bidding was $41.83 MBM. The
average indicated bid value was $7.95 and avergae logging cost was
estimated to be $30.00. The allowance for profit and risk at the time
the timber was purchased is computed by use of the usual appraisal
formula as follows:
1.op = log value / stumpage value/cost
At the time of the purchase, the profit and risk factor was about ten
percent. This compares with a profit and risk factor of about twelve
percent contemplated in the original appraisal. CONTRACT REQUIREMENTS
CONCERNED WITH ADJUSTMENT OF RATIOS
The contract provides for automatic adjustment of stumpage rates for
each quarterly period beginning January 1, April 1, July 1 and October
1. Those adjustments are accomplished by applying the specified
percentage of grades of logs for each species to the quarterly log grade
prices to obtain the average log price, and applying the average log
price to the stipulated ratio to obtain the stumpage rate.
Although this quarterly adjustment procedure provides mutually
satisfactory results over relatively short periods of moderate
fluctuations in log prices, it does not provide an effective means for
compensating for the more drastic such chagnes was therefore included in
the contract which reads:
"THE SECRETARY OF THE INTERIOR OR HIS DULY AUTHORIZED
REPRESENTATIVE may, upon his own initiative, or upon submission by
the purchaser of evidence satisfactory to the Secretary or such
representative, review the stumpage rates established by the
procedure set forth in Sections 6 to 9, inclusive. If, as a
result of such review, the Secretary or such representative finds
that the character of the operation, changes in marketing
conditions, or technological developments, have altered the
situation to such an extent that a change in the existing ratios
between stumpage rates and the Grays Harbor-Puget Sound log
prices appears warrented, he shall give thirty days notice to the
purchaser of his intention to establish new percentage ratios
between stumpage rates and the Grays Harbor-Puget Sound log
prices during which time the purchaser may consult with the
Secretary or such representative; PROVIDED that the requirements
of notice in this Section shall be satisfied when the new ratios
established under its authority are made effective upon the first
day of the quarterly period which is not less than thirty days
following notice by the Secretary or such representative to the
purchaser that he intends to proceed under the authority of this
Section to change such ratios. The ratio, however, for any
species of sawtimber shall not be changed oftener than once in any
calendar year". REVIEW OF PRESENT CONDITIONS.
A study of stumpage values under the Taholah Contract was made early
in 1958. The last change in the ratios resulted from this report. (See
Report dated April 17, 1958). The preceding pages are taken verbatim
from that report. The present study will follow the same method used in
the 1958 study.
Consideration will be given to ythree major factors, namely:
1. Changes in conditions as indicated by trend and by a change in
scaling practices.
2. Changes in quality of logs.
3. Direct appraisal. CHANGES AS INDICATED BY TREND AND BY CHANGE IN
SCALING PRACTICES
Changes in market conditions as determined by the Puget Sound-Grays
Harbor log markets and published by the Pacific Northwest Loggers
Association are summarized in the following table: TABLE OMITTED SEE
ORIGINAL
If production costs and log values had maintained the same
relationship during the life of the contract, this would have been a
satisfactory measure of trend. Under normal circumstances, when product
value and costs are moving in parallel directions, this method gives
reasonably satisfactory results. The distribution of one-half the
change to stumpage and the other half to costs generally accomplished
the objective.
During 1956, there was a change in scaling practices when the Grays
Harbor Scaling and Grading Bureau began scaling all logs from this unit.
A modification of the contract provided for the scaling of longer logs
which increased the rate per M board feet by 12 5 percent as shown in
the following table: Species ...... Indicated ...... 12.5% .......
Trend rates adjusted ............ Trend Rates .. Scaling Change .... for
scaling change
WRC ........... $15.57 ....... 1.95 .............. $17.52
SS ............. 16.16 ....... 2.02 ............... 18.18
DF ............. 22.12 ....... 3.77 ............... 24.89
WF(PSF) ........ 13.88 ....... 1.74 ............... 15.62
WP ............. 15.93 ....... 1.99 ............... 17.92
WH ............. 11.61 ....... 1.45 ............... 13.06
The above indicated rates reflect an upward trend in the log market.
If log values and costs moved at parallel rates, these indicated values
could be said to represent satisfactory values for stumpage. Such is
not the case. Changes in costs have remained relatively stable during
recent years, with only a slight upward trend. Increased efficiency and
mechanization has, to a large degree, offset steadily increasing labor
costs. On the other hand, log values in some species have fluctuated
appreciably. Accordingly, the indicated stumpage rates shown above can
be used only as a very general indication of present values. LOG GRADES
ESTABLISHED FOR DETERMINATION OF CURRENT VALUES.
Numerous points of view have been expressed as to the log grades that
should be used in any determination of stumpage values under this
contract. An inventory is being planned this year for the Taholah Unit.
Average log grade percentages will be determined for all species of
timber remaining on the unit. There is some merit ot the idea that
future studies should be based on the over-all average log grade
percentages.
If it could be assured that the contractor would log proportionate
volumes in all grades and species each year, the above idea might be a
satisfactory solution. Since this is not practicable, it is believed
that this idea should not be adopted.
After considering all factors involved, it has been concluded that
the fairest system for all concerned is to base the log grade
percentages for this and future studies on the average grade recovery
for the last three logging years immediately preceding each study. This
procedure will result in stumpage values that currently reflect the
quality of timber being logged and will tend to discourage so-called
"high-grading" on the part of the purchaser. Use of the three-year
average is preferred to use of a five-year average as it will reflect
more quickly any appreciable change in the cutting pattern.
Average grades recovered by species have been calculated for the
three-year period ending March 31, 1960 from the volume of logs scaled
and graded by the Grays Harbor Log Scaling and Grading Bureau. These
are set forth on the following page: DOCUMENT OMITTED SEE ORIGINAL
ADJUSTMENT OF LOG GRADE RECOVERY BASED ON THREE-YEAR AVERAGE LOG GRADE
PERCENTAGE TABLE OMITTED SEE ORIGINAL
The indicated stumpage rates as derived from changes in trend in the
lumber industry and the change in scaling procedures would be affected
by the change in grade as shown below: TABLE OMITTED SEE ORIGINAL
DIRECT APPRAISAL
The datermination of proper log values for use in this report is of
great importance and has been given much consideration. All available
sources of log values were utilited. All bill, both lumber and plywood,
operating on Grays Harbor were contacted to obtain prices currently
being paid for all log grades. Prices obtained from the plywood and
veneer plants were used to determine the peeler grade logs. Prices
obtained from lumber mills were used to determine the sawmill grade
grade logs. However, since there are a considerable number of exchanges
of logs between operators under conditions known only to them, the
prices paid for logs in the Grays Harbor area do not appear to be
entirely indicative of true log values.
Since the Puget Sound area is adjacent to and closely related to the
Grays Harbor area, we believe that log values from both areas should be
studied.
Pond values as established by the U. S. Forest Service for use in
appraisals of timber in Western Washington, including both Puget Sound
and Grays Harbor areas, have been considered. We do not believe that we
are justified in using these values without modification. These prices
are the resultant after deduction of average milling cost (and profit on
milling) from end product plywood and lumber values. No deductions have
been made nor storage and handling. The purchaser of the timber from
the Taholah Unit must dispose of a large percentage of the volume of
timber logged on the log market. For this reason, the log values used
in this study have been established after giving dus consideration to
both Forest Service pond values and log market prices.
TABLE OMITTED SEE ORIGINAL
#These figures are based on log sizes which we believe to be
representative of logs of these spcies on the Quinault Reservation.
##FN1 Pond values are the resultant after deduction of average milling
costs (and profit on milling) from end product plywood and lumber
values. ##FN2 Values of No. 2 hemlock and white fir sawlogs are based
on surfaced dry lumber production. Values of No. 3 hemlock and white
fir logs give considerable Weight to the pulp log market. ##FN3 Forest
Service pond values are for the Western Washington-Lower Columbia River
area of Region 6. These figures taken from Forest Service Pond Value
Schedules for Region 6. ##FN4 These log grade values are based on
judgment, taking into consideration all figures shown in preceding
columns. ##FN5 First quarter 1960 as reported by P.N.L.A. DOCUMENT
OMITTED SEE ORIGINAL
Logging costs estimates used in this report are based on separate
computations for cedar as opposed to hemlock and other species. This
was necessary becauseof the large amount of defect in cedar as compared
to a lesser amount in other species. The amount of defect directly
affects falling and bucking, yarding and loading and hauling costs. The
study of logging costs is on file at the Hoquiam Sub-Agency and a
summary of these costs may be found in the appendix as Exhibit A. The
loggging costs used in this report are $34.44 for cedar and $33.87 for
all other species.
There is now available sufficient information to make an appraisal of
stumpage value for each species on the assumed basis that the timber on
this unit was now being offered for sale. The appraisal provides for a
profit and risk allowance is about 11 percent. When the purchase was
actually made, the computed profit and risk factor was about 10 percent.
The appraisal follows: TABLE OMITTED SEE ORIGINAL ADJUSTMENT BASED
ON RELATIVE RELATIONSHIP.
It was shown earlier in this report that at the time of purchase,
conditions were such that the opertor had a profit and risk factor of
about 10 percent. Any adjustment of the stumpage rates which will
result in approximately this factor will be relative to conditions under
which the timber was purchased.
The computation will first be made on the basis of the profit and
risk factor established at the time of sale for each species. It will
be computed on the basis of the average log value, production cost, and
stumpage for all species. It is neither desirable nor appropriate to
attempt to retain the exact relationship of one species to another as
existed at the time of the sale. Many of these relationships were
accidental and there is considerable interdependence between the
species. Therefore, the stumpage rates will be adjusted to obtain a
reasonable distribution of stumpage values. DOCUMENT OMITTED SEE
ORIGINAL
The previous determination of trend value, increase due to grade
recovery change and scaling procedures change, and the direct appraisal
will be useful in the determination of indicated stumpage rates which
will provide the operator approximately the same profit and risk factor
as he had at the inception of the contract. These determination are as
follows: TABLE OMITTED SEE ORIGINAL
The average weighted recommended stumpage rate per MBM is $14.35.
The profit and risk factor may be computed as follows:
1.op = 53.60 / 34.28+14.35 = 53.60 / 48.53 = 1.1022
DETERMINATION OF RATIOS The effective ratios now be determined by
applying the recommended stumpage rates to the contrast index log value
for the first quarter 1960: TABLE OMITTED SEE ORIGINAL CHANGE IN
EXISTING RATIOS AND STUMPAGE RATES TABLE OMITTED SEE ORIGINAL
RECOMMENDATIONS
It is recommended that the following ratios be made effective on July
1, 1960:
Species ............................................. Ratios
Western redcedar...................................... 26.15
Sitka spruce.......................................... 28.80
Douglas-fir........................................... 46.30
White-fir ............................................ 23.45
Western white pine ................................... 27.60
Western hemlock ...................................... 24.55 Date MAY
17 1960
Date MAY 17 1960
Date MAY 17 1960
1959
ESTIMATED
LOGGING COSTS
TAHOLAH LOGGING UNIT
TABLE OMITTED SEE ORIGINAL
...................................... Cedar .... Hemlock
................................................. & Other
Sub-Total (carried forward) ...... $13.29 ..... $12.76
III. DEVELOPMENT COSTS:
A. Road Construction ............ $ 2.93.......$ 2.93 TOTAL
LOGGING, TRANSPORTATION AND DEVELOPMENT COSTS ............
$34.44.......$33.87
Noes:
1. Direct logging costs include all payroll assessments (payroll
taxes, unemployment insurance, etc), adjusted to local conditions
using 1959 Region 6 logging cost guide dated 9/3/59 for Western
Washington and Lower Columbia River.
2. Overhead & Depreciation costs very similar to Forest
Service average cost guide figures.
3. Fire protection cost same as allowed in Crane Creek Unit;
22 per MBM plus .07 for overhead. This is identical to Forest
Service and of .29 per mbm shown in their 1959 cost guide.
4. Extra costs: line running estimate based on 1960 operations;
scaling costs obtained from audit of company records; extra
branding cost based on costs necessary to brand timber on
allotments as timber is felled. (Regular branding costs included
with loading costs.)
5. Truck haul computed using Washington Public Service
Commission formula and rates effective in Tariff 4-A, June 20,
1957. (Factors used to adjust gross to net were obtained from
R6-TM179 U.S.F.S. 1955); defect was obtained from check scale
information.
6. Road maintenance cost determined by allowing .10 per MBM
per mile (15 miles of road).
7. Unloading cost obtained from 1958 cost guide, Region 6,
U.S.F S. dated 9/12/58.
8. Road construction costs computed using volumes estimated to
be remaining on unit (inventory to be completed end of 1960 on
this unit.).
"HANDWRITTEN COMMEMTS"
Volume- 1,100,000 MBM occured total cut less
290,000 Cut to hole ?10,000 - Cords barred on this volume Per Don
Clark ???
Puget Sound-Grays Harbor 1st Quarter 1960 Log Market Average
Prices
TABLE OMITTED SEE ORIGINAL
HES-004-0559-0580
HES-004-0559-0580
IIJ60.1
FOSTER, DON C
590209
CORRESPONDENCE
SKARRA, PERRY
Forestry
339.5
Portland Area Office
Post Office Box 4097
Portland 8, Oregon
Air Mail FEB 9, 1959
Commissioner, Bureau of Indian Affairs Washington 25, D. C.
Attention: Branch of Forestry
Dear Sir:
Enclosed is the original and one copy of a stumpage
readjustment report covering the Taholah Logging Unit on the Qunault
Reservation. This report was prepared by John P. Drummond, Forester,
and Don W. Clark, Assistant Forest Manager, and was concurred in by
Harold Weaver, Area Forester, as of February 5, 1959.
No changes in the stumpage to log price ratios are
recommended at this time. Superintendent Ringey and Forest Manager
Libby have verbally indicated their concurrence in the recommendations
contained in the report.
Sincerely yours,
(Sgd) Perry E. Skarra
Assistant Area Director
Enclosures Copy to: Supt., Western Washington Agency w/one copy of
report
Hoquiam Substation, Hoquaim w/two copies of report
Branch subject
Branch chrony
Yellow chrony
JPDrummond:EJM 2-9-59
STUMPAGE REVALUATION REPORT
QUINAULT INDIAN RESERVATION
Aprasial and sale of timber
The present Taholah Unit was first appraised in a report dated
November 15, 1948. This appraisal was based on log values (as
determined from past sales) for the first three quarters of 1948. The
trend of log values during the three quarters was largely upward. The
average log values used for the three quarters, however, represent a
generally satisfactory conclusion.
The appraisal was made on the basis of $30.00 per MBM for production
cost. The profit and risk allowance was 15 percent on the cost of
production or $4.50. The results were as follows: TABLE OMITTED SEE
ORIGINAL
The timber was advertised for sale, with bids to be received on July
8, 1949. The approved form of contract for this sale provided that the
stumpage rates bid by the purchaser would remain in effect through March
31, 1950. Thereafter, the races would be adjusted quarter-annually so
as to maintain the same percentage relationship between adjusted
stumpage rates and the changing market value of sawlogs as that
originally established between the bid stumpage rates and log values for
the fourth quarter of 1948.
No bids were received but a sale of the timber was subsequently
negotiated at the originally advertised stumpage rates and under the
originally approved form of contract.
The negotiated contract was approved May 12, 1950. Consequently, the
bid stumpage rates were immediately modified through operation of the
quarter-annual adjustment provision. Log values had declined from the
fourth quarter 1948 levels and the stumpage rates immediately effective
were therefore somewhat less than the bid rates, as follows: TABLE
OMITTED SEE ORIGINAL Stumpage, cost, and profit relationship at time of
sale
The prices at which this timber was negotiated were immediately
replaced by the automatically adjusted rates that became effective on
April 1, 1950. For this reason, the adjusted rates are a better measure
of stumpage values at the time the timber was sold. These are also the
conditions under which the timber was sold.
Production costs at the time of the apraisal were estimated to be
$30.00. This estimate is considered adequate and will be used for the
purpose of determining the profit and risk factor at the time of the
sale. Log prices used for this purpose were determind from the combined
Puget Sound-Grays Harbor districts past sales for the first quarter of
1950 as shown in the following table:
TABLE OMITTED SEE ORIGINAL
At the time of sale, therefore, the following relationships existed
between log value, stumpage rates, production costs, and operator's
profit and risk allowance: TABLE OMITTED SEE ORIGINAL
The average log value and stumpage will be determined: TABLE OMITTED
SEE ORIGINAL
The average log value at the time of bidding was $41.83 MBM. The
average indicated bid value was $7.95 and average logging cost was
estimated to be $30.00. The allowance for profit and risk at the time
the timber was purchased is computed by use of the usual appraisal
formula as follows:
1.op = log value / Stumpage value + cost
At the time of the purchase the profit and risk factor was about ten
percent. This compares with a profit and risk factor of about twelve
percent contenplated in the original appraisal. Contract requirements
concerned with adjustment of ratios
The contract provides for automatic adjustment of stumpage rates for
each quarterly period beginning January 1, April 1, Julu 1 and October
1. These adjustments are accomplished by applying the specified
percentage of grades of logs for each species to the quarterly log grade
prices to obtain the average log price, and applying the average log
price to the stipulated ratio to obtain the stumpage rate.
Although this quarterly adjustment procedure provides mutually
satisfactory results over relatively short periods of moderate
fluctuations in log prices, it does not provide in effective means for
compensation for the more drastic changes in the log prices and log
production costs. A stipulation to provide for such changes was
therefore included in the contract which reads:
"THE SECRETARY OF THE INTERIOR OR HIS DULY AUTHORIZED
REPRESENTATIVE
may, upon his own initiative,or upon submission by the Purchaser
of evidence satisfactory to the Secretary or such representatives,
review the stumpage rates established by the procedure set forth in
Sections 6 to 9, inclusive. If, as a result of much review, the
Secretary or sich representative finds that the character of the
operation, changes in marketing conditions, or technological
developments, have altered the situation to such an extent that a
change in the existing ratios between stumpage rates and the Grays
Harbor Puget-Sound log prices appears warranted, he shall give
thirty days' notice to the Purchaser of his intention to establish
new percentage ratios between stumpage rates and the Grays
Harbor-Puget Sound log prices during which time the Purchaser
may consult with the Secretary or such representative; PROVIDED
that the requirements of notice in this Section shall be satisified
when the new ratios established under its authority are made
effective upon the first day of the quarterly period which is not
less than thirty days following notice by the Secretary or such
representative to the Purchaser that he intends to proceed under
the authority of this Section to change such ratios. The ratio,
however, for any species of sawtimber shall not be changed oftener
than once in any calendar year". Previous adjustments of the ratios
Studies were made in 1955, 195m and 1953 which resulted in
modifications of the stumpage to log price ratios. In 1956, there was a
change in scaling practices when the Grays Harbor Scaling and Grading
Bureau being scaling all the logs from this unit. A modification of the
contract provided for the scaling of longer logs which increased the
rate per thousand board feed by 12-1/2 pecent. The original ratios as
set forth in the contract, together with the subsequent ratios, are
shown in the following table: TABLE OMITTED SEE ORIGINAL Changes as
indicated by trend and by change in scaling practies
Changes in market conditions as indicated by the Puge Sound-Grays
Harbor log markets and published by the Pacific Northwest Loggers
Association are summarized in the following table: TABLE OMITTED SEE
ORIGINAL (1) See attached Appendix A (Published by PLLA). (2) See
attached Appendix B (Published by PLLA).
If production costs and log values had maintained the same
realtionship during the life of the contract, this would have been a
satisfactory measure of trend. Under normal circumstances when product
value and costs are moving in parallel directions, this method gives
reasonably satisfactory results. The distribution of one-half the
change to stumpage and the other half to costs generally accomplished
the objective.
The change in scaling practices during 1956, which resulted in the
Modification previously mentioned, resulted in increased rates per
thousand board feet as shown in the following table: TABLE OMITTED SEE
ORIGINAL
Present circumstances in the lumber industry are such that product
values for various species have fluctuated while costs have
At the time of sale, therefore, the following relationships existed
between log value, stumpage rates, production costs, and operator's
profit and risk allowance: TABLE OMITTED SEE ORIGINAL
The average log value and stumpage will be determined: TABLE OMITTED
SEE ORIGINAL
The average log value at the time of bidding was $41.83 MBM. The
average indicated bid value was $7.95 and average logging cost was
estimated to be $30.00. The allowance for profit and risk at the time
the timber was purchased is computed by use of the usual appraisal
formula as follows: TABLE OMITTED SEE ORIGINAL
At the time of the purchase the profit and risk factor was about ten
percent. This compares with a profit and risk factor of about twelve
percent contemplated in the original appraisal. Contract requirements
concerned with adjustment of ratios
The contract provides for automatic adjustment of stumpage rates for
each quarterly period beginning January 1, April 1, July 1 and October
1. These adjustments are accomplished by applying the specified
percentage of grades of logs for each species to the quarterly log grade
prices to obtain the average log price, and applying the average log
price to the stipulated ratio to obtain the stumpage rate.
Although this quarterly adjustment procedure provides mutually
satisfactory results over relatively short periods of moderate
fluctuations in log prices, it does not provide an effective means for
compensating for the more drastic changes in log prices and log
production costs. A stipulation to provide for such changes was
therefore included in the contract which reads:
"THE SECRETARY OF THE INTERIOR OR HIS DULY AUTHORIZED
REPRESENTATIVE may, upon his own initiative, or upon submission by
the Purchaser of evidence satisfactory to the Secretary or such
representative, review the stumpage rates established by the
procedure set forth in Sections 6 to 9, inclusive. If, as a
result of much review, the Secretary or such representative finds
that the character of the operation, changes in marketing
conditions, or technological developments, have altered the
situation to such an extent that a change in the existing ratios
between stumpage rates and the Grays Harbor-Puget Sound log prices
appears warranted, he shall give thirty days' notice to the
Purchaser of his intention to establish new percentage ratios
between stumpage rates and the Grays Harbor-Puget Sound log prices
during which time the Purchaser may consult with the Secretary or
such representative; PROVIDED that the requirements of notice in
this Section shall be satisfied when the new ratios established
under its authority are made effective upon the first day of the
quarterly period which is not less than thirty days following
notice by the Secretary or such representative to the Purchaser
that he intends to proceed under the authority of this Section to
change such ratios. The ratio, however, for any species of
sawtimber shall not be changed oftener than once in any calendar
year."
Previous adjustments of the ratios
Studies were made in 1955, 1957 and 1958 which resulted in
modifications of the stumpage to log price ratios. In 1956, there was a
change in scaling practices when the Grays Harbor Scaling and Grading
Bureau began scaling all the logs from this unit. A modification of the
contract provided for the scaling of longer logs which increased the
rate per thousand board feet by 12-1/2 percent. The origina ratios as
set forth in the contract, together with the subsequent ratios, are
shown in the following table: TABLE OMITTED SEE ORIGINAL Changes as
indicated by trend and by change in scaling practices
Changes in market conditions as indicated by the Puget Sound-Grays
Harbor log markets and published by the Pacific Northwest Loggers
Association are summarized in the following table: TABLE OMITTED SEE
ORIGINAL
(1) See attached Appendix A (Published by PLLA).
(2) See attached Appendix B (published by PLLA).
If production costs and log values had maintained the same
relationship during the life of the contract, this would have been a
satisfactory measure of trend. Under normal circumstances when product
value and costs are moving in parallel directions, this method gives
reasonably satisfactory results. The distribution of one-half the
change to stumpage and the other half to costs generally accomplished
the objective.
The change in scaling practices during 1956, which resulted in the
Modification previously mentioned, resulted in increased rates per
thousand board feet as shown in the following table: TABLE OMITTED SEE
ORIGINAL
Present circumstances in the lumber industry are such that product
values for various species have fluctuated while costs have remained
fairly stable over the last few years. The parallel relationship of
product value and cost has therefore been changed. Consequently, this
calculation probably does not portray trend with the same validity as it
did in past years. Nevertheless, it is believed to be indicative of the
trend for all species and then the related items again move in a
parallel direction, the results of these computations will have greater
application. Adjustment of log grade recovery
Careful consideration has been given to all points of view with
reference to quality determination. It has been suggested that the
quality of the timber should be based on scaling experience and quality
cruises ahead of the cutting. While we are in agreement with this
suggestion, we believe that until further studies are completed, the
quality to be cut during 1959 can best be estimated by assuming that it
will be similar to that experienced in 1958.
In line with the above, lumber grades for western redeeder, sitha
spruce, white fir (DEF) and western hemlock used in this study are those
experienced in 1958.
The Douglas-fir and white pine log grades are based on total recovery
as scaled by the Grays Harbor Log Growing and Sealing Bureau through
December 31, 1988. Because of the mill volume of those species, it is
believed that the grade percentages developed over a longer period are
more representative of what is likely to be cut.
The following tabulation shows the grade recoveries for different
periods together with that used in this study: TABLE OMITTED SEE
ORIGINAL
(1) Total volume scaled and graded by Grays Harbor Log Grading
and Sealing Bureau.
Modification of trend rates by edjusted log grade recovery
The revision of the log grades discussed in the previous section
results in changes in values for each species as shown in the following
table:
TABLE OMITTED SEE ORIGINAL (1) Grays Harbor-Puget Sound markets as
reported by PHLA (See Appendix B).
The indicated stumpage rates as derived from changes in trend in the
lumber industry and the change in sealing procedure would be affected by
the change in grade as shown below: TABLE OMITTED SEE ORIGINAL Direct
appraisal
The log values for use in the appraisal will be determined by
applying log values for the grades to the quality (log grade percent-
ages) indicated on page 7 of this report. The log values by grades are
developed on the following page. The determination of grade values to
be used has been influenced by Forest Service log values which they use
in appraisals for the Western Washington area, Pacific Northwest Log-
gers Association average log made prices for the Grays Harbor and Puget
Sound districts and prices actually being paid by Grays Harbor plants at
the present time. Because there is a considerable interchange of forest
products between the two districts, we believe that log prices for
appraisal purposes should be developed from information pertaining to
both areas.
TABLE OMITTED SEE ORIGINAL # These figures are based on log sizes which
we believe to be proper for use in appraisals on the Quinault
Reservation.
The average log prices as they pertain to the Taholah Unit may now be
computed by applying the above prices to the previously determined grade
percentages for each of the spcies. This is shown in the table on the
following page.
TABLE OMITTED SEE ORIGINAL
The average logging costs used in this appraisal are $34.50 for
western redcedar and $33.50 for other species. These are the same as
those used in the report of April 22, 1958. We have no evidance that
logging costs have changed appreciably during the past year The logging
cost data presented on the following pages indicated that these
estimates are reseanable (1). (1) See Appendix E.
Because the cedar market is variable, a profit and risk margin of 13
percent is allowed for this species while 10 percent is allowed for all
other species. Since the standcontains approximately 55 percent cedar,
the average profit and risk allowance for the entire stand is only
slightly more than 11 percent. This is in keeping with the profit and
risk allowance being used by the Forest service at the percent present
time. The computed profit and risk factor for the period when the sale
was made was about 10 percent. Appraisal Summary - TABLE OMITTED SEE
ORIGINAL Adjustment based on relative relationships
It was shown near the beginning of this memorandum that at the time
of purchase of the timber, conditions were such that the operator had a
profit and risk factor of about 10 percent. Any adjustment of stumpage
rates which will result in approximately this factor will be relative to
conditions under which the timber was purchased.
The computation will first be made on the basis of the profit and
risk factor established at the time of sale for each spcies. It will
than be computed on the basis of the average log value, production
coast, and stumpage for all spcies. It is neither desirable nor
appropriate to actampt to retain the exact relationship of one species
to another as was derived for the time of sale. Many of these
relationships were accidental and since there is considerable
interdependence between the various species, the indicated stumpage
rates will be adjusted to obtain a reasonable distribution of stumpage
values.
The computation using the individual profit and risk factors at the
time of the sale follows: TABLE OMITTED SEE ORIGINAL
The average log value, production cost and stumpage is obtained in
the following computation by weighing these factors for each species by
the percentage of the spcies cut: TABLE OMITTED SEE ORIGINAL (1)
Percent each species is of total volume cut through December 1958 - See
Appendix C.
The percentage of the total cost plus stumpage available for
profit and risk with the above indicated stumpage values can be computed
as follows:
1.op = 51.29 / 12.99+34.03 = 51.29 / 47.02
1.op = 1.091
It will be noted tht the profit and risk factor is somewhat
below tht computed for the conditions at the time of sale. This
reduction is due to the difference between species composition set forth
in the contract and that actually cut. The percentage of different
species cited in the contract is based on an estimate for the unit as a
whole while the species composition used above is that actually
harvested through December 1958. Summary
The stumpage values arrived at by adjusting for the change in
scaling practices and for change in grade recovery, by direct appraisal,
and by the relative relationsip study area shown below with the stumpage
rates in effect for the 1st quarter of 1959: TABLES OMITTED SEE
ORIGINAL
The weighted stumpage valued based on the current rates is
computed as follows: TABLE OMITTED SEE ORIGINAL
The average profit and risk factor under present conditions
can now be computed:
1.op = 51.29 / 13.03+34.03 = 51.29 / 47.08 1.op = 1.089 The above
computation indicates that under present
circumstances the allowance for profit and risk is approximately 9
percent. It was previously computed to be approximately 10 percent at
the time of the sale.
A comparison of the stumpage rates established for the 2nd
quarter of 1958, with those which are in effect for the 1st quarter of
1959, follows: TABLE OMITTED SEE ORIGINAL Conclusion and recommendation
This results of this study cause us to believe that no change in
the stumpage to log price ratios is warranted at the present time. The
contract provides tht the ratio for any species may be changed no
oftener than once each calendar year. It is therefore recommended that
no change in any of the ratios be made at the present time.
Studies pertaining to log values and logging costs, including
examinations of the purchaser's records, will continue. New information
gathered will be used is future reports.
Concur: /s/ Harold Weaver Harold Weaver, Area Forester Date: FEB 5
1959
Puget Sound-Grays Harbor
1ST Quarter 1950 Log Market Average Prices (1) TABLE OMITTED SEE
ORIGINAL (1) Published by Pacific Northwest Loggers Association.
Puget Sound-Grays Harbor
4th Quarter 1958 Log Market Average Prices TABLE OMITTED SEE ORIGINAL
APPENDIX C
Determination of Species Percentages from Volume by Species Cut to
December 31, 1958
Species ............................. Volume .......... Percentage
WMC ............................ 130,601,368 ............... 53.12
SS .............................. 31,206,484 ............... 12.69
DF ............................... 2,187,710 ................. .89
WF(PSF) ......................... 13,799,265 ................ 5.61
WP ............................... 3,135,574 ................ 1.28
WH and other .................... 64,925,788 ............... 26.41
Total ....................... 245,856,189 ............. 100.00%
Percentages of Various Log Grades as Scaled by
the Grays Harbor Log Grading and Scaling Bureau
on the Taholah Logging Unit
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
HES-004-0581-0606
HES-004-0581-0606
IIJ59.2
COMM ; BIA BR OF FORESTRY
590521
CORRESPONDENCE
SMITH, PAUL R ; ALOHA LUMBER CO
Mr. Harold Weaver, Area Forester Bureau of Indian Affairs Department of
Interior P. O. Box 4097 Portland 8, Oregon Dear Mr. Weaver:
In re conference held in your office May 13th on our request for
modification of the Taholah Unit Contract, so that it will be
economically feasible to log the approximate 5,000 acres of scrub type
logs on swampy lands.
As you know, at the request of Mr. Libby, we agreed to put our most
efficient salvage logger into a test area on this type of timber. The
mutually selected area was one of the better ones. When you were here
in March with Mr. Kephart, ringey, Libby and Clark, we discussed our
loss for one month on this area, again this was discussed at the May
13th conference in which we stated that pur loss had increased 25[ per
M' on Red Cedar due to the increase in stumpage for the second quarter.
You asked if we would submit a breakdown on our loss for this period and
we are most happy to give them to you.
For our sale price, we used the price we are getting from the M. R.
Smith Shingle Company for this type of logs f.o.b. Hockipss. The
ftage. and grade were taken from the Grays Harbor Log Scaling & Grading
Bureau scale sheets for February. The cedar logged on Allotment #1530
and #2169 on grade are is follows:
........................ #1 ... #2 ............ #3 Allotment #1530,
brand 16 none 26,540' ...... 29,730' Allotment #2169, brand 56 none
43,280' ...... 54,830' .............................. 69,820' ......
84,560' ......... #2 cedar ........... 69,820' $44.50 ...... $3,106.99
......... #3 cedar ........... 84,560' 32.50 ....... 2,748.20
............................. 154,380' ............. $5,855.19
................................... 1% cash discount ... 58.55
.................................................... $5,796.64 Mr.
Harold Weaver, Area Forester page -2- 5/21/59 Paid Log
Contractor...........154,380' $24.00........$3,705.12
Stumpage......................154,380' 14.11........ 2,178.30 (The
following items are based on our audited year 1958 costs and 1959 will
be a little higher) Supervisor.............................. 1.16
Forester................................ .30 Overhead (includes office
etc.)......... 1.23 Scaling................................. .62
Road.................................... 4.71
..............................154,380' $8.02........ 1,238.13
..................Cost of logs sold..................$7,121.55
..................Return............................. 5,796.64
Loss on cedar 2 allotments
Feb....($1,324.91)
For an average of $8.58 per M', if you deduct the entire Road there
would still be a loss of $3.87 based on 1st quarter stumpage and cedar
stumpage advanced 25 cents per M' for the 2nd quarter. We sincerely
trust that these figures will aid in securing a modifica- tion to our
present contract so that we can harvest these lands.
Very truly yours,
ALOHA LUMBER CORPORATION
(SIGNATURE)
Paul R. Smith, President
RS:s cc: C. W. Ringey, Superintendent
Don W. Clar, Asst. Forest Mgr. John Libby, Forest Manager
HES-004-0607-0608
HES-004-0607-0608
IIJ59.1
WEAVER, HAROLD ; BIA
590331
CORRESPONDENCE
CLARK, DON W ; HOQUIAM SUB STATIO
Office Memorandum UNITED STATES GOVERNMENT DATE: March 31, 1959 TO:
John W. Libby, Forest Manager
Western Washington Agency FROM: Don W. Clark, Ass't. Forest Manager
Hoquiam Sub-Station SUBJECT: Salvage Operations - Taholah Logging
Unit - Quinault
Reservation
Reference is made to Mr. Kephart's letter of March 12 to the Area
Director and Mr. Skarra's letter to the Superintendent dated March 19,
wherein certain information regarding salvage operations on the Taholah
Logging Unit was requested.
We do not require advance notice from the Aloha Lumber Corp.
regarding the movement from one block to another once the entire logging
plan for a given year has been approved. However, our Forest Officer in
Charge has daily contact with the Woods Superintendent and knows in
advance just when and where the rigging crews plan to move after they
complete the logging on an approved block.
Naturally, in the case of the Aloha Lumber Corp, they are primarily
interested in Western redcedar and select cutting blocks accordingly so
as to assure their mill an adequate supply. Their larger "sides" are
always in the heavy cedar areas, the smaller sides handling the
"hardwoods". At the present time, the hardwoods are being sold on the
Grays Harbor Log Market. According to the terms of the contract, Aloha
must cut all species of timber on the Unit. Thus, it appears the
company must be allowed reasonable flexibility in the selection and
movement from one setting to another in the blocks approved for logging.
They must log all of the cedar necessary to maintain production at the
Aloha and M. R. Smith Mills, consistent with markting conditions - the
sawlogs to Aloha and shingle logs to M. R. Smith. In addition, in order
to market the other species which they themselves cannot utilize, they
must plan their operations so as to take advantages of favorable market
conditions, insofar as possible. On a very favorable market, they no
doubt would cut heavily in hemlock areas; on a depressed market they
probably would log only that volume of hemlock necessary to obtain the
cedar for their mill requirements. (Some of the high grade cedar is
found mixed with hemlock in the H4=C4 types).
The term "salvage logging" is used very loosely here on the west
Coast. The recovery of recent "blowdown" is termed salvage. Operation
on cut-over areas to log residual material resulting from initial
logging operations is termed salvage as well as the removal of Hazard or
danger trees along a road right-of-way or insect or disease infested
timber.
On the Taholah Logging Unit, salvage is defined as the recovery of
material not merchantable under the terms of the contract as sawtimber
that remains on the cutting blocks after the initial logging has been
completed.
The attached Exhibit A, shows the volume and value of salvage that
has been removed from various allotments within the Taholah Logging Unit
since the contract was modified to provide for salvage operations on
March 21, 1956. This salvage material is defined as that material not
merchantable under the terms of the original contract as sawtimber, that
remains on the cutting blocks after the initial logging has been
completed. It has been divided into two classes: (1) Pulpwood salvage
and (2) cedar salvage. The pulpwood consists of hemlock, silver fir and
spruce; the cedar salvage is utilized for shake boards, the boards, the
boards being cut on the allotment where the cedar salvage is found. All
of the pulpwood is sold on Grays Harbor to the pulpmills or to those
plants having chipping facilities. At the present time, the stumpage s
$2.00 per cord. The western redcedar is sold by the shake board, the
present stumpage price being 1.7[ per board. The boards are then sold
to the numerous shake mills surrounding the reservation, where they are
used to produce shakes (four shakes are cut from one shake board). At
times, it is possible to utilize the small cedar logs (those below the
minimum merchantability specification in the contract), usually between
8 and 10 inches, for the production of studing. The stumpage for this
material is currently at $2.00 per cord. Utilization is by 8 foot
lengths or in multiples of 8 feet. Naturally, the market for studding
fluctuates according to the housing development programs throughout the
U.S. We have many thousands of acres within the Taholah Logging Unit
that contain only very small, low grade cedar that can be utilized only
for the manufacture of cedar stud materials. These stands are not
merchantable under the merchantability specification of the present
contract. Thus, if we are to utilize these stands and provide an income
to the allottees, it appears that the contract will have to be further
modified to provicde for a stumpage price that will permit the Aloha
Lumber Corporation or it's sub-contractors, to economically log this
type of timber.
Exhibit B which is also attached, shows the volume and value of
"blowdown" timber and of hazard trees along rights-of-way. Here again,
we term these operations "salvage" since they occur mainly subsequent to
initial operations along the cutting boundaries and along existing
logging roads, although occasionally we experience "blowdown" within
reserve stands or within virgin stands prior to logging.
Exhibit C explains the "red" areas as shown on the map of the Taholah
Unit which was previously submitted to the Central Office and designated
as areas to be salvaged. As stated in the comments accompanying the
Exhibit, two of the areas resulted from "blowdown" - the others, areas
that contained such a high percentage of low grade cedar that the Aloha
Lumber Corporation could not economically log the timber. Much of the
volume of the timber is in trees below the minimum merchantability
specifications in the contract. There are no No. 1 Cedar logs on these
areas. The table included shows the actual recovery to date from one
such sub-marginal area as scaled and graded by the Grays Harbor Log
Scaling and Grading Bureau.
All of the salvage logging is accomplished by "gyppos" under
sub-contract with the Aloha Lumber Corporation, and is administered
jointly by ourselves and Aloha. Naturally, the volume of material
salvaged varies according to the market prices for such material paid by
Grays Harbor manufacturing plants. The Aloha Lumber Corporation has
cooperated 100 percent with our Foresters in attaining maximum salvage
consistent wth the supply and demand for this material. It is quite
apparent that the company is as interested as ourselves in obtaining
maximum utilization of all forest products.
Mr. James Ga. Ross, Jr., our Forester in Charge of the
Taholah Logging Unit, is to be highly complimented for his time and
effort in making the salvage program "click". He has been very
instrumental in obtaining the maximum co-operation among company
personnel, the allottees and our own organization, and in keeping the
program rolling. Through his intimate knowledge of West Coast logging
operations, and his through understanding of forest management
practices, he has efficiency administered the salvage program in
addition to his regular duties of supervising initial high-lead
operations.
At the present time, Jim is preparing an illustrated report
of salvage operations on the Taholah Unit. When completed, We will send
the Central Office, as well as the Area Office, copies of this report.
I'm quite sure they will find it very interesting and helpful.
EXHIBIT A - SALVAGE FOLLOWING INITIAL OPERATIONS
TABLE OMITTED SEE ORIGINAL #Board Foot Volume paid for under existing
stumpage rates; includes occasional widthrown tree along edge of
reserve stand.
EXHIBIT B - BLOWDOWN AND RIGHT-OF-WAY AREAS
TABLE OMITTED SEE ORIGINAL Notes: (1) All sawtimber merchantable
according to provisions of
contract scaled in bord feet and paid for on current stumpage
rate. (2) All cordwood (that timber below merchantability
provisions of contract) scaled as cordwood and paid for on current
salvage rates as provided for in modification of contract.
The Salvage Blocks marked in red on the Taholah Unit are numbered in
the order they might be taken out. The type of material to be taken out
in these blocks are as follows: Salvage Block 2 & 4:
These Blocks are blowdown areas in firebreaks (reserve stands). As
of March 1, Block Number 2 has been removed. Allotment No 1316 shows
251,800 board feet and 72.27 cords removed for a value of $4,009.29.
Allotment No. 1397 shows 12,780 board feet removed for a value of
$333.33.
Block No. 4 is to be removed this summer. The blowdown is two years
old, and might not be mearchantable, depending on market conditions for
pulpwood. One quarter mile of dirt road must be built into the area and
weather conditions will also effect the removal. Salvage Blocks 1,3,5 &
6:
These are Blocks containing poor and very poor quality timber that
the Aloha Lumber Corporation was willing to experiment with and remove.
Their plan was to remove these areas and have the poor grade logs come
into the mill together with logs from their egular logging operations.
The cutting map originally submitted showed enough area to keep two
three-man operations busy for a year. Small operators were to be used
as this material could not be economically removed with Aloha's large
logging equipment.
A high-lead operation was started on Block No. 1 in January 1959.
Instead of felling and bucking the timber, removing the sawlogs and then
the salvage material, the trees were felled, bucked and the small
material was yarded first to prevent unnecessary breakage. These were
separated as cordwood or pulpwood, then the larger logs were yarded.
Both the cordwood and sawlogs are scaled by the Grays Harbor Log Scaling
and Grading Bureau.
The operation on Salvage Block 1 is now one-half completed. The
Aloha Lumber Corportion has indicated at this time they are not
continuing with the rest of the blocks. Their reason is based on the
results shown by the Scaler on the material removed to date. Aloha's
cedar stumpage price is based on a certain percentage of Grade No. 1
logs. Since there are no number 1 grade cedar logs on the trial area,
Aloha could not continue to pay current cedar stumpage rates without a
financial loss to the company. The following log grade percentages are
shows for three species on Aloha's normal operations from July 1, 1957
to February 28, 1959 as compared to the material removed from salvage
block No. 1 during January and February 1959. TABLE OMITTED SEE
ORIGINAL
The figures for Salvage Block #1 are based on 243,400 board feet of
scaled logs. Of this amount, 195,000 board feet of logs was cedar. The
only species on which tere is no question of stumpage price is the
Western white pine. This is true of the pine on the Taholah Unit. The
poor sites contain the largest white pine of good quality. In addition
to the 243,4400 board feet of sawlogs removed, 218.42 cords have been
taken out from material not of merchantable size according to the
contract.
Although the percentage figure shows how poor the grade on the
Salvage Block is, compared to their average cutting blocks, it is not a
true picture of the situation. Many of Aloha's cedar logs are of large
size but due to flutted butts, excessive knots, bark seams, and other
grading rules they must be classified as No. 2 grade logs. Some cedar
logs removed from the Salvage Block are sound and of sufficient size to
meet No. 2 grade requirements. However, these No. 2 grade cedar logs
are of small diameter (close to the minimum allowance for No. 2's) and
cost more to handle in the ponds and through the mills.
Even though Aloha has not met with favorable results from this type
of logging operations, they have indicated to us they will continue to
explore every possibility for the removal and utilization of this type
of timber within the Taholah Unit.
HES-004-0609-0615
HES-004-0609-0615
IIJ59.1
LIBBY, JOHN W ; W WASH AGENCY
580417
CORRESPONDENCE
WERSHING, HENRY F ; BIA BR OF FORESTRY DRUMMOND, JOHN P ; BIA
Memorandum To: Commissioner From: Henry F. Wershing, Assistant Chief,
Branch of Forestry and John Drummond, Forester, Portland, Oregon
Subject: Adjustment of Stumpage Rates on the Taholah Logging Unit,
Quinault Reservation, Washington Appraisal and sale of timber
The present Taholah Unit was first appraised in a report dated
November 15, 1948. This appraisal was based on log values (as
determined from past sales) for the first three quarters of 1948. The
trend of log values during the three quarters was largely upward. The
average log values used for the three quarters, however, represent a
generally satisfactory conclusion.
The appraisal was made on the basis of $30.00 per MBM for production
cost. The profit and risk allowance was 15 percent on the cost of
production or $4.50. The results were as follows: TABLE OMITTED SEE
ORIGINAL
The timber was advertised for sale, with bids to be received on July
8, 1949. The approved form of contract for this sale provided that the
stumpage rates bit by the purchaser would remain in effect through March
31, 1950. Thereafter, the rates would be adjusted quarter-annually, so
as to maintain the same percentage relationship, between adjusted
stumpage rates and the changing market value of sawlogs, as that
originally established between the bid stumpage rates and log values for
the fourth quarter of 1948.
No bids were received; but a sale of the timber was subsequently
negotiated, at the originally advertised stumpage rates and under the
originally approved form of contract.
The negotiated contract was approved May 12, 1950. Consequently, the
bid stumpage rates were immediately modified through operation of the
quarter-annual adjustment provision. Log values had declined from the
fourth quarter 1948 levels, and the stumpage rates immediately effective
were therefore somewhat less than the bid rates, as follows; TABLE
OMITTED SEE ORIGINAL
Stumpage, cost and profit relationship at time of sale
The prices at which this timber was negotiated were immediately
replaced by the automatically adjusted rates that became effective on
April 1, 1950. Per this reason the adjusted rates are a better measure
of stumpage values at the time the timber was sold. These are also the
conditions under which the timber was sold.
Production costs at the time of the appraisal were estimated to be
$30.00. This estimate is considered adequate and will be used for the
purpose of determining the profit and risk factor at the time of the
sale. Log prices used for this purpose were determined from the
combined Puget Sound-Grays Harbor districts past sales for the
first-quarter of 1950 as shown in the following table:
FIRST QUARTER 1950 AVERAE LOG VALUES
PUGET SOUND-GRAYS HARBOR DISTRICTS
TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED
Although this quarterly adjustment procedure provides mutually
satisfactory results over relatively short periods of moderate
fluctuations in log prices, it does not provide an effective means for
compensating for the more drastic changes in log prices and log
production costs. A stipulation to provide for such changes was
therefore included in the contract which reads:
"THE SECRETARY OF THE INTERIOR OR HIS DULY AUTHORIZED
REPRESENTATIVE may, upon his own initiative, or upon submission
by the Purchaser of evidence satisfactory to the Secretary or
such representative, review the stumpage rates established by the
procedure set forth in Sections 6 to 9, inclusive. If, as a
result of much review, the Secretary or such representative finds
that the character of the operation, changes in marketing
conditions, or technological developments, have altered the
situation to such an extent that a change in the existing ratios
between stumpage rates and the Grays Harbor-Puget Sound log
prices appears warranted, he shall give thirty days
notice to the Purchaser of his intention to establish new
percentage ratios between stumpage rates and the Grays
Harbor-Puget Sound log prices during which time the Purchaser
may consult with the Secretary or such representative; PROVIDED
that the requirements of notice in this Section shall be satisfied
when the new ratios established under its authority are made
effective upon the first day of the quarterly period which is not
less than thirty days following notice by the Secretary or such
representative to the Pruchaser that he intends to proceed under
the authority of this Section to change such ratios. The ratio,
however, for any species of sawtimber shall not be changed oftener
than once in any calendar year."
Review of "Stumpage Revaluation Report, Taholah Logging Unit,
Quinault Indian Reservation, Washington, January 30, 1950"
This report indicates that the downward trend in lumber and other
forest products prices during the past year justifies an adjustment of
the stumpage to log price ratios in the contract. Three methods of
analysis are used in this report to determine the indicated value of the
stumpage.
1. Changes indicated by tend and by a change in scaling practices
2. Changes in quality of logs
3. Direct appraisal Changes as indicated by trend and by change in
scaling practices.
Changes in market conditions as determined by the Puget Sound-Grays
Harbor log markets and published by the Pacific Northwest Loggers
Association are summarized in the following table: TABLE OMITTED SEE
ORIGINAL
If production costs and log values had maintained the same
relationship during the life of the contract, this would have been a
satisfactory measure of trend. Under normal circumstances when product
value and costs are moving in parallel directions, this method gives
reasonably satisfactory results. The distribution of one-half the
change to stumpage and the other half to costs generally accomplished
the objective.
During 1956 there was a change in scaling practices when the Grays
Harbor Scaling and Grading Bureau began scaling all logs from this unit.
A modification of the contract provided for the scaling of longer logs
which increased the rate per M board feet by 12.5 percent as shown in
the following table: TABLE OMITTED SEE ORIGINAL
Present circumstances in the lumber industry are such that the
product has declined in value to a considerable extent while costs have
remained approximately stable. The parallel relationship of product
value and cost has therefore been disturbed. Consequently this
calculation probably does not have the same validity as it had in past
years At such time as the related items again move in parallel
directions, the results of such a computation will be more applicable.
The disturbed relationship between the product and the cost of
production is not as great under this contract for which appraisals are
based on log values as under other contracts where appraisals are made
on the basis of a lumber product. The decline in log values has not
been as great as it has for lumber values.
Adjustment of log grade recovery
Cutting experience on the Taholah Unit has caused a change in the
estimated log grade recovery from that used in the original appraisal.
The field report shows the actual log grade recovery based on the total
volume of logs scaled and graded by the Grays Harbor Log Scaling and
Grading Bureau as of December 1, 1957.
Careful consideration of the various points of view in the
determination of quality leads to the conclusion that it is desirable to
consider quality on the basis of timber recently cut under the contract,
and projecting it into the foreseeable future. It does not appear to be
necessary to revise the log quality each year. Cutting in similar areas
may continue for several years without significant change in quality.
Several years ago it was determined to be necessary to change the
quality estimates of the original appraisal in the light of more and
better information concerning the timber. Since this contract does not
expire until 1973 it appears unwise to attempt to fix permanently the
quality estimate. Future changes may need to be considered. There is
always the possibility that grading systems now in use may be changed in
such a manner that it would be very difficult to make a proper
conversion. It was necessary to consider a change since the contract
was executed in 1950, and circumstances may require similar action in
the future.
In the case of cedar the log grade percentages are based on a study
by the forestry staff at Hoquiam. This study indicated that the
percentage of No. 1 grade logs could be increased if logs were cut to
produce the best possible grades.
The Douglas-fir log grades were based on total recovery during 1956,
1957 and January and February of 1958. Because of the small volume of
this species, it is believed that the grade percentages developed over
that period are more representative of what is likely to be cut.
The following tabulation shows the recovery data used in the field
report, the actual grade recovery for the different periods, and that
used in this report: TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL
The indicated stumpage rates as derived from changes in trend in the
lumber industry and the change in scaling procedure would be affected by
the change in rade as shown below: TABLE OMITTED SEE ORIGINAL
Direct appraisal
The determination of proper log value for use in this appraisal is of
great importance and has been given much consideration. The field
report developed log values by grades, largely on the basis of past
sales and price quotations in the Grays Harbor Area. Log values used
were also influenced by prices as established by the Forest Service for
use in appraisals both in the Grays Harbor and Puget Sound Areas. The
sale of logs in the Grays Harbor Area has declined considerably oer a
period of the past 10 to 15 years. There is evidence which indicates
that for the species of timber which predominate in this sale the major
portion is handled by only a few operators. There are also a
considerable number of exhanges of logs between operators under
conditions known only to them. Therefore, log prices paid in the Grays
Harbor area do not appear to be entirely indicative of true log values.
The Puget Sound district is adjacent to and closely related to the
Grays Harbor district. There is considerable interchange of material
between the two areas. We believe that log prices for appraisal
purposes should be developed from information pertaining to both areas.
Other available information should also be considered. The following
table showing log prices for use in this revaluation has been developed
on this basis.
TABLE OMITTED SEE ORIGINAL
The average log prices for each of the species in the Taholah Logging
Unit may now be computed by applying the above log grade prices to the
previously determined grade percentages. This is accomplished in the
following table. The average log value for each species differ from the
field report to the extent that both average grade price and grade
percentages have been revised.
TABLE OMITTED SEE ORIGINAL
The average logging cost used in the field report was $33.50. Cedar
logging costs were estimated to be $34.00. Subsequent information,
based on a study of costs, including company records, indicate that
average production costs will range from $33.50 to $35.00. The field is
in agreement that the cost allowance should be somewhat higher than
provided in their report. Therefore the average production cost has
been increased to $34.00 with $34.50 for cedar and $33.50 for other
species.
The following appraisal is being made on the same basis as though the
timber were now being offered for sale. The appraisal provides for a
profit and risk factor of 12 percent for cedar and 10 percent for all
other species. Since the stand contains approximately 55 percent cedar,
the average profit and risk allowance is only slightly more than 11
percent. The computed profit and risk factor for the period when the
sale was made was about 10 percent.
The appraisal follows: TABLE OMITTED SEE ORIGINAL Adjustment based
on relative relationship
It was shown earlier in this memorandum that at the time of purchase,
conditions were such that the operator had a profit and risk factor of
about 10 percent. Any adjustment of the stumpage rates which will
result in approximately this factor will be relative to conditions under
which the timber was purchased.
The computation will first be made on the basis of the profit and
risk factor established at the time of sale for each species. It will
be computed on the basis of the average log value, production cost, and
stumpage for all species. It is neither desirable nor appropriate to
attempt to retain the exact relationship of one species to another as
existed at the time of the sale. Many of these relationships were
accidental and there is considerable differences between the species.
Therefore, the stumpage rates will be adjusted to obtain a reasonable
distribution of stumpage values.
The computation using the individual profit and risk factors at the
time of the sale follows: TABLE OMITTED SEE ORIGINAL
The average log value, production cost and stumpage is obtained by
weighting the factor for each species by the percentage of the species
cut The results are as follows: TABLE OMITTED SEE ORIGINAL
The percentage of the total cost plus stumpage available for profit
and risk with those indicated stumpage values can be computed as
follows: TABLE OMITTED SEE ORIGINAL
The above indicated stumpage values would provide a profit can risk
factor of approximately 9 percent which is somewhat below that computed
for the conditions at the time of the sale. This is due to the
difference in the estimate of species composition for the entire unit as
set forth in the contract from that actually cut. The percentages of
species as computed from volumes cited in the contract are based on an
estimate while the species composition used above is based on volumes
actually harvested.
In order to bring the average profit and risk more closely in line
with that existing at the time of sale and to provide a reasonable
current stumpage value relationship between the species, the above
indicated stumpage rates will now be adjusted. DOCUMENT OMITTED SEE
ORIGINAL TABLE OMITTED SEE ORIGINAL
It was agreed by the purchaser at the consultation that the time
period for consideration of the adjustment of the ratios could be
extended for 30 days from March 27, 1950, with the understanding that
the new ratios would be retroactive to April 1, 1958.
Concur: George S. Kephart Chief, Branch of Forestry Copy to: Area
Director, Portland, Oregon (2)
HES-004-0616-0634
HES-004-0616-0634
IIJ58.3
COMM
580219
CORRESPONDENCE
SCHWARTZ, H L ; W WASH AGENCY
Western Washington Agency
Hoquiam Sub-Station
Hoquiam, Washington
A I R M A I L Feb. 19, 1958 Commissioner, Bureau of Indian Affairs
Washington 25, D. C.
Dear Sir:
Enclosed is a memorandum prepared by Don W. Clark. Assistant Forest
Manager and approved by John W. Libby, Forest Manager of our Agency
staff, which presents supplementary data in support of stumpage values
recommended in the stumpage Revaluation Reports fot the Crane Creek and
Taholah Logging Units, Quinault Indian Reservation, Washington, prepared
January 30, 1958.
We are mailing this direct at the suggestion of Area personnel in
order to expedite the review of the Revaluation Reports.
/s/ H. L. Schwartz
Acting Superintendent
MEMORANDUM February 13, 1958 FROM : Don W. Clark, Assistant Forest
Manager
SUBJECT : Supplementary Data Supporting Stumpage Values Recommended
In order to support recommendations in the Stumpage Revalua-
tion Reports of the Crane Creek and Taholah Logging Units, additional
sales data within Grays Harbor County have been analyzed.
Data covering five U. S. Forest Service sales and one State of
Washigton sale was obtained from the Olmpic National Forest and State of
Washington, Olympia, Washington for 1957. The breakdown of these sales
is shown below: I. West Fork Pumptulips No. 8, Quinault Working
Circle, Olympic
National Forest: TABLE OMITTED SEE ORIGINAL II. Cook Creek No. 5,
Quinault Working Circle, Olympic National Forest: TABLE OMITTED SEE
ORIGINAL III.Salmon River No. 3, Quinault Working Circle, Olympic
National
Forest: TABLE OMITTED SEE ORIGINAL IV. State of Washington, Grays
Harbor County, No. 24637: TABLE OMITTED SEE ORIGINAL
The following table shows the volumes, weighted log grade
percentages, appraised values and bid prices per MBM for all species
offered for sale. The weighted average estimated total logging costs on
the Forest Service sales is $37.85 per MBM. No estimate was obtained
for the State sale but the costs should be comparable. Summary Data:
TABLE OMITTED SEE ORIGINAL
Total estimated logging costs on the above sales averaged
approximately $4.00 per MBM higher than the estimated logging costs for
the Crane Creek and Taholah Units. Using comparable costs, the stumpage
would be increased accordingly. On the other hand, the quality of
timber on the State and Olympic National Forest Sales is considerably
higher than the quality of timber on the Quinault Reservation.
The following table shows the comparison of the revised esti-
mates of log grades for the Crane Creek and Taholah Logging Units, and
those estimated by the Forest Service and State for the timber in the
above summary date: TABLE OMITTED SEE ORIGINAL
Application of the above log grades to the log prices established in
the revaluation report of stumpage for the Crane Creek and Taholah
Logging Units gives weighted average log values as follows: TABLE
OMITTED SEE ORIGINAL
There were two sales of timber offered on the Quinault Working Circle
of the Olympic National Forest during January 1958. The results of
these sales were as follows: TABLE OMITTED SEE ORIGINAL II. Goforth
Creek Sale: TABLE OMITTED SEE ORIGINAL
* - Development costs of $11.35 per MBM allowed for the first 16,240
MBM removed from the sale, after which all bid stumpage rates will be
increased by $11.35 per MBM. TABLE OMITTED SEE ORIGINAL
The two sales in January 1958 reveal a substantial decrease in
stumpage over sales made during 1957. All of the Forest Service sales
are small in volume, of short duration and requiring only small capital
investments which can be liquidated in one to two years. In most cases,
access to the timber on National Forests is no major problem. The
average defect is low and the quality of timber is high.
The Crane Creek and Taholah Logging Units involve a very large
volume of timber whose quality is relatively low and defect above
average, require substantial investments of capital and were sold under
contracts of long duration. The right of way problem is acute and the
engineering program of location and re-surveying ownership boundaries is
excessive.
The following table, showing comparison of stumpage rates
received for timber sold on the Olympic National Forest and the Quinault
Indian Reservation for the year 1957, reveals higher stumpage rates for
National Forest timber. Much of this difference is due to the fact that
the rates shown are results of sales now active that were bid on during
1955 and 1956 when the lumber market was very favorable and competition
was intense. The sales were of short duration, and provided for no
revaluation of stumpage. TABLE OMITTED SEE ORIGINAL
SUPERVISED LAND SALES
On December 27, 1957, 78 allotments within the Queets Unit of
the Quinault Indian Reservation were offered for sale under the Super-
vised Land Sale Program. Bids were received on 26 tracts. Only 6 of
the bids received met or exceeded the appraised valuation. An analysis
of the high bid on the six tracts is as follows: (See map at end of
report for location of tracts.) I. Allotment No. Q-2051, James R.
Oliver TABLE OMITTED SEE ORIGINAL Remarks: Located approximately 59
miles north of Hoquiam; within 1/2 mile of U. S. Highway 101. Road
construction will be minimum; purchaser presently logging within 1 mile
of property. Purchaser confirmed cruise and stumpage value. II.
Allotment No. Q-2047, Chales H. Oliver TABLE OMITTED SEE ORIGINAL
Remarks: Located approximately 58 miles north of Hoquiam, within 1/2
mile of U. S. Highway 101 and adjacent to allotment No. 2051, which
purchaser also acquired. Purchaser confirmed cruise and stumpage
values. III. Allotment No. Q-1433, Daisy Eastman TABLE OMITTED SEE
ORIGINAL Remarks: Located approximately 54 miles north of Hoquiam; U.
S. High- way 101 crosses tract; purchaser owns tract adjacent to this
one; purchaser reported he had special interest in tract in order to
secure R/W into adjoining lands; cruise, log grade and stumpage prices
con- firmed by purchaser. IV. Allotment No. Q-1066, Talcus Eastman
TABLE OMITTED SEE ORIGINAL Remarks: Located approximately 54 miles
north of Hoquiam; U. S. High- way 101 crosses tract; bidder has other
holdings within 3 miles of this tract; purchaser confirmed special
interest in tract in order to con- trol access to Highway 101; cruise
grade and stumpage values verified by purchaser. V. Allotment No.
Q-397, Annie Sam Remarks: Located approximately 62 miles north of
Hoquia, 1/4 milw from U. S. Highway 101; tract adjacent to other lands
owned by purchaser; confirmation of cruise and stumpage prices obtained
from purchaser. VI. Allotment No. Q-400, Laura Sam TABLE OMITTED SEE
ORIGINAL Remarks: Located approximately 61 miles north of Hoquiam; U.
S. High- way 101 crosses corner of tract; purchaser has holdings
adjacent to subject tract and is presently logging within 1 mile of
property; some speculation on gravel deposits within tract; operator
expecting con- siderable overrun an all species; particularly cedar and
hemlock; cruise, grade and stumpage prices confirmed by purchaser.
Each of the above sales have been discussed with the purchaser to
ascertain the basis of the bid. Cruise volumes, expected log grades and
stumpage prices, as well as special considerations, were confirmed. All
of the operators mentioned they could pay about $12.00 per MBM for
hemlock and White fir, and about $16.00 per MBM for cedar, dependent
upon the percentage of No. 1 and top quality No. 2 logs. White pine is
bid approximately the same as hemlock and White fir. (These values are
for timber withing 1/4 mile of U.S. Highway 101, in the Quests Unit.)
The following tracts received bids below the appraised value on the
December 27, 1957 sale. The appraisals were made during April 1957,
using 1956 comparable sales tht reflected very favorable marketing
conditions and intense competition, and are not considered a true
reflection of fair market values under present marketing conditions.
Even though the bids were not accepted, an analysis of the bidding has
been made to determine approximate bid prices per MBM for all species,
dependent upon distances from market, accessibility of the stand,
quality of timber and present prices being received for similar stands
on the open market. (See map at end of report for location of tracts.)
I. Allotment No. Q-1422, Ned Wheeler TABLE OMITTED SEE ORIGINAL
Remarks: Located approximately 60 miles north of Hoquiam; about 5
miles from any road; within 1/2 mile of other tracts owned by bidder;
bidder confirmed cruise, grade and stumpage prices. II. Allotment No.
Q-1428, Ivy Wheeler TABLE OMITTED SEE ORIGINAL
Remarks: Located approximately 60 miles north of Hoquiam, about 5
miles from any road, within 1/2 mile of other tracts owned by bidder;
cruise, log grade and stumpage prices confirmed by bidder. III
Allotment No. Q-1424, Dorothy Wheeler TABLE OMITTED SEE ORIGINAL
Remarks: Located approximately 60 miles north of Hoquiam; about 5
miles from any road; within 1/2 mile of other tracts owned by bidder,
adjacent to allotment No. 1423. IV Allotment No. Q-1782, George Ero
TABLE OMITTED SEE ORIGINAL Remarks: Located approximately 58 miles
north of Hoquiam; about 3 1/2 miles from any road; proposed logging
road R/W crosses corner of tract (Mayr Bros. Logging Co. is requesting
R/W for road into this area with the idea of topping the Wheeler claims
listed above), bidder confirmed cruise, log grades and stumpage prices.
The above bid prices for stumpage, which at the present time is not
readily accessible, are considered fair when analyzed with other sales
of timber within the same area. This is revealed in the breakdown of
sales of fee-patent lands that follows:
The sales of fee-patent lands have been obtained from records in the
Grays Harbor County Courthouse at Montesano, Washington. Purchasers
were contacted to confirm the prices paid and to discuss the cruise, log
grades and stumpage prices that were considered at the time of sale.
Only those sales within the Qucets Unit of the Quinault Reservation have
been analyses, since the initial cruises and appraised values are
available for comparison from allotment files at the Western Washington
Agency. (See map at end of report for location of tracts.) I.
Allotment No. Q-919, George Johnson TABLE OMITTED SEE ORIGINAL Remarks:
Located approximately 59 miles north of Hoquiam; about 4 miles south of
U. S. Highway 101 (no road into property) timber of good quality, sale
price confirmed by purchase who is interested primarily in hemlock and
white fir. II. Allotment No. Q-1647, Christian Edward Boldt and No.
Q-1648
Arthur O. Boldt
TABLE OMITTED SEE ORIGINAL Remarks: Located approximately 60 miles
north of Hoquiam; about 5 south of U. S. Highway 101 (no road into
property); timber of good quality, except spurce which is below average
for area; sale price obtained from County records, volume 332, page 608
& 610; purchaser interested primarily in hemlock and white fir. III.
Allotment No. Q-2199, Elizabeth M. Shaw Ditton TABLE OMITTED SEE
ORIGINAL Remarks: Located approximately 55 miles north of Hoquiam;
about 2 1/2 miles south of U. S. Highway 101 (no road into tract);
timber of aver- age quality for area, sale price obtained from County
records, volume 379, page 252; cruise, grade and stumpage information
confirmed by purchaser. IV. Allotment No. Q-2099, Theodora Ann
Peterson Lampke TABLE OMITTED SEE ORIGINAL Remarks: Located
approximately 60 miles north of Hoquiam, about 5 miles south of U.S.
Highway 101 (no road into tract); timber of average quality for
immediate area; sale price obtained from County records, volume 377
page 62; cruise, grade and stumpage prices confirmed by purchaser. V.
Allotment No. Q-1607, David Vincent Armstrong
Q-1609 Calvin B. Armstrong
TABLE OMITTED SEE ORIGINAL Remarks: Located approximately 75 miles
north of Hoquiam; about 5 miles south of U. S. Highway 101 (no road
into property); timber of only fair quality; sale price obtained from
County records, volume 377, page 110 & 111; timber was purchased with
the intent of holding cutting until area becomes accessible through a
road building program (West Coast Plywood Co. representative stated
reason for acquisition of tracts at this time.) VI. Allotment No. Q-649
Susie S. Beckwith Williams TABLE OMITTED SEE ORIGINAL Remarks: Located
approximately 60 miles north of Hoquiam; about 5 miles south of U.S.
Highway 101 (no road into tract); timber of average quality for
immediate area; sale price obtained from County records, volume 376,
page 607; cruise, log grades and stumpage prices confirmed by
purchaser.
The following tabular summaries have been prepared in order to show
weighted average stumpage prices paid for accessible timber (within 1/2
mile of U.S. Highway 101) and relatively inaccessible timber (about 4-5
miles from any road). The quality of timber, particularly the cedar,
along the highway is above average for the Queets Unit. The quality of
timber in the interior or inaccessible areas is about average quality.
Very few, if any, sales of poor quality timber have been purchased under
existing marketing conditions. TABLE OMITTED SEE ORIGINAL
All of the purchasers that were contacted were very cooperative in
supplying factual information regarding each sale. They mentioned that
they were hopeful that the data furnished would be of considerable aid
in the preparation of timber appraisals.
John W. Libby, Forest Manager MAP OMITTED SEE ORIGINAL
HES-004-0635-0661
HES-004-0635-0661
IIJ58.2
COMM ; BIA BR OF FORESTRY
580130
CORRESPONDENCE
AREA DIR ; PORTLAND AREA OFC
Commissioner, Bureau of Indian Affairs Washington 25. D. C. Dear Sir:
Attention: Branch of Forestry
Attached is report entitled "Stumpage Revaluation Report - taholah
Logging Unit, Quinault Indian Reservation," by John Libby, Forest
Manager and Don W. Clark, Assistant Forest Manager, January 30, 1958,
Mr. John Drummond, Forester, Portland Area Office, has assisted in
preparation. The report also has been approved by Mr. Clarence W.
Ringey, Superintendent, Western Washington Agency
The report recommends the following changes in stumpage to lot price
ratios: TABLE OMITTED SEE ORIGINAL
April 1, 1958.
The authors first analyza conditions in the lumber and timber
products industries. Conditions are not good. Price trends have
continued downward over the past year. Many mills have discontinued
operation, some permanently, and many thousands of people are out work.
On the Quinsult Reservation total cut fell from 109,528 M feet BM during
calendar year 1956 to 66,970 M feet BM during 1957.
The authors next analyze trends in the log market since approval of
the Taholah Logging Unit contract. No changes are made estimates of
percentage of recovery by log grades that were used in last year's
revaluation report. A study of Taholah log grades is planned during
1958. Also presented is a stumpage appraisal based on the latest and
best log price and cost data available. Finally, the authors conclude
that the exercise of good judgment must be used in determination of
recommended changes.
We believe that the authors have exercised excellent judgment, based
on familiarity with the problems, on many years of experience and on the
best data available to them. Their recommendations are in accord with
the revaluation provisions of the contract.
It is conceivable that the impending audit of the records of Aloha
Lumber Corporation, proposed in Central Office letter of January 24,
1958, may further enlighten us in consideration of this most difficult
of revaluation problems. We are also hopeful that final product value
studies being formulated both by the U. S. Forest Service and by our
Analyst, Mr. Donald Dirr, will also further enlighten us. These devel-
opments are in the future.
We concur in this proposed ratio changes and recommend that they be
effected on April 1, 1953.
Sincerely yours,
(SIGNATURE)
Area Director
Enclosures
STUMPAGE REVALUATION REPORT
TAHOLAH LOGGING UNIT
QUINAULT INDIAN RESERVATION
WASHINGTON
Introduction
The Taholah Logging Unit was advertised for sale in 1949 and no bids
were received. Under special authority a sale was negotiated with the
Aloha Lumber Company. The contract was approved on May 12, 1950. It
provides for the logging of approximately 545,000 M board feet of timber
at the rate of not less than 20,000 M feet annually or more than 100,000
M feet in three years without consent of the Commissioner. The contract
will expire April 1, 1979.
The contract provides for automatic adjustments of stumpage rates,
which is accomplished quarter-annually for each species by applying a
stipulated percent to the changing log market prices. Although this
quarterly adjustment procedure provides mutually satisfactory results
over relatively short periods of moderate fluctuations in log prices, it
does not provide an effective means for compensating for the more
drastic changes in log prices and log production costs. A stipulation
to provide for such changes was therefore included in the contract which
reads:
"THE SECRETARY OF THE INTERIOR OR HIS DULY AUTHORIZED
REPRESENTATIVE may, upon his own initiative, or upon
submission by the Purchaser of evidence satisfactory
to the Secretary or such representative, review the
stumpage rates established by the procedure set forth
in Sections 6 to 9, inclusive. If, as a result of
such review, the Secretary or such representative
finds that the character of the operation, changes
in marketing conditions, or technological develop-
ments, have altered the situation to such an extent
that a change in the existing ratios between stumpage
rates and the Grays Harbor-Puget Sound log prices
appears warranted, he shall give thirty days notice
to the Purchaser of his intention to establish new
percentage ratios between stumpage rates and the
Grays Harbor-Puget Sound log prices during which time
the Purchaser may consult with the Secretary or such
representative; PROVIDED that the requirements of
notice in this Section shall be satisfied when the
new ratios established under its authority are made
effective upon the first day of the quarterly period
which is not less than thirty days following notice
by the Secretary or such representative to the Pur-
chaser that he intends to proceed under the author-
ity of this Section to change such ratios. The
ratio, however, for any species of sawtimber shall
not be changed oftener than once in any calendar
year."
The bid prices, log prices and ratios at the tme the contract was
signed and approved were: TABLE OMITTED SEE ORIGINAL # Weighted average
prices of logs for the months of October, November, and December, 1948,
for the combined Grays Harbor-Puget Sound markets as reported by the
F.N.L.A. (See Section 7 of contract).
Studies made the past two years of market conditions and other
factors resulted in modifications of the stumpage-to-long price ratios
in the fourth quarter of 1955 and the second quarter of 1957. Between
these dates, a third modification was made to compensate for lower log
volumes resulting from a change in scaling practices. The following
table lists the original ratios, together with those established by the
above three modifications: TABLE OMITTED SEE ORIGINAL
During the past year there has been a decided downward trend in
marketing conditions as reflected by sales reports, log price quotations
and lumber price indices. These indicators of economic changes reveal
that the changes in marketing conditions have not been reflected by the
present stumpage-to-log ratios of the contract.
The quarterly compilations of past sales for the Grays Harbor and
Puget Sound log markets, as furnished by the pacific Northwest Loggers
Association, reveal past trends in a reasonably satisfactory manner and
are indicators of log market conditions. Average log prices established
by the U. S. Forest Service, Region 6, also provide a reliable source
of information. These log prices have been derived from: (1) trade
journals, (2) Oregon State College Extension Service, (3) contracts with
industry, (4) P.N.L.A. bi-weekly and quarterly transaction summaries,
(5) past trends as shown by graphs maintained by the Forest Service, and
(6) current market trends in the lumber and allied industries and the
general economy.
The following table shows the comparison in log grade prices of the
U.S. Forest Service and the Pacific Northwest Loggers Association from
1956 to 1957: TABLE OMITTED SEE ORIGINAL
Lumber and plywood market prices declined continuously during 1957 as
Bureau of Labor Statistics indices, which are shown below, indicate:
TABLE OMITTED SEE ORIGINAL
The cedar market continues to remain depressed, especially the
redcedar shingle market. No 1-16" redcedar shingles in the immediate
Crays Harbor area are presently being quoted at about $9 in order to
move present stocks. This is considerably below the prices received the
past two years as shown below: TABLE OMITTED SEE ORIGINAL (All shingle
prices less 20-40 cents per square commission.)
Cedar lumber prices received the past two years by mills within the
immediate Grays Harbor area are as follows: TABLE OMITTED SEE ORIGINAL
In order to move present lumber stocks, it has become necessary to
reduce 1/2 x 8 Clear and A Siding approximately $5 per M and 3/4 x 10
Clear and A Siding $5 per M.
Crow's Lumber Price Index as of January 9, 1953, shows an average net
change for the past 12 months for the lumber industry of minus $7 73, a
minus $6.84 for green fir and a minus $6.48 for dry fir.
Production costs have varied very little during the past year. Many
operators within the Grays Harbor area have concurred that there has
been practically no change in production costs. Cost data are difficult
to obtain and much more difficult to interpret as reliable data usually
reflect only those conditions particular to the individual operator's
"show". Thus costs must be modified or adjusted to reflect actual
conditions as nearly as possible to the operation concerned. On a
timber sale area involving six different species, all at different
values, it is virtually impossible to determine just how much of the
production costs are absorbed by any one species in favor of another.
This report utilizes the following methods for analyzing and
determining the fair market values for stumpage of all species within
the Taholah Logging Unit:
1. Changes in Marketing Conditions - Trend.
2. Changes in Log Grade Recovery - Quality.
3. Changes in Scalia; Practices--Grays Harbor Scaling
Bureau
4. Direct Appraisal - Overturn Method.
Since mathematical analyses of stumpage cannot account for all of the
factors affecting values, it is necessary to modify the results obtained
by the application of sound judgment. We are of the opinion that the
recommendations appearing in this report are equitable and fair to the
parties concerned. Changes in Market Conditions through Analyses of
Records of Past Sales.
The stumpage ratios set forth in the contract were based on the
average prices for logs for the months of October, November and
December, 1948. To determine the value of stumpage at the time of
purchase, it is necessary to apply the contract stumpage ratios to the
weighted average log prices obtained from the Pacific Northwest Loggers
Association quotations for the Puget Sound-Grays Harbor markets for the
first quarter, 1950:
TABLE OMITTED SEE ORIGINAL
Changes in market conditions, 4th quarter 1957, as compared to the
1st quarter 1950, are shown below (Puget Sound-Grays Harbor Log Market
prices as published by Pacific Northwest Loggers Association reports:
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL Modification of Log Grades by Adjusted Log
Grade Recovery
Since it has not been possible to initiate a log grade study within
the Taholah Logging Unit during 1957, the estimates of log grades by
species as considered in the 1956 revaluation study were used. A study
of the log grades within this unit is being contemplated for the summer
of 1958. It is rather evident from field observations and actual
recovery knowledge that the average quality of the Taholah Logging Unit
is somewhat poorer than that on the Crane Creek Logging Unit. But until
we have substantiated this fact through a field study of the log grades
within the unit, we feel that the revised estimates of log grades as
used in the 1957 revaluation study are reasonable as shown by the actual
recovery to date.
The following tabulation shows the estimates of log grades as
considered average for the stand and the actual recovery of logs cut and
removed from the Taholah Logging Unit:
TABLE OMITTED SEE ORIGINAL
The actual grade recovery as reported above is based on the following
volumes of logs, scaled and graded by the Grays Harbor Log Scaling and
Grading Bureau as of December 1, 1957.
TABLE OMITTED SEE ORIGINAL
The change in values caused by the use of the estimated log grade
recovery when applied to fourth quarter 1957 log prices is shown in the
following table:
TABLE OMITTED SEE ORIGINAL
The changes in grade recovery are added to the indicated market trend
rates in the following table:
TABLE OMITTED SEE ORIGINAL Direct Appraisal
In the determination of log values for use in an appraisal of current
stumpage values on the Taholah Unit an analysis has been made of (1)
prices quoted by the Pacific Northwest Loggers Association for logs sold
on Grays Harbor markets for the fourth quarter of 1957; (2) prices
established by the U. S. Forest Service, Region 6, as of November 1957,
for the Western Washington Area; and (3) prices paid as of December 31,
1957, by local mills on Grays Harbor as determined by inquiries of three
principal mills in Hoquiam and Aberdeen and several independent logging
contractors. Considerable weight was given to price data secured from
local mills and loggers since this was current information applicable
directly to Quinault Reservation timber. Other data are from averages
based on transactions over a preceding three to six months' period and
for a large diversified area. A comparison of these log values,
together with log prices established for this appraisal, is shown in the
following table:
Comparison of Log Values
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
As shown in table XVII on the following page, logging costs used in
this revaluation study have been compared with average costs as
determined by the Forest Service, since these costs provide some of the
most reliable information available. These, then, have been adjusted to
coincide with conditions on the Taholah Logging Unit.
It is well recognized as was shown in last year's revaluation study
that cedar logging costs exceed the costs for other species. The
estimated total logging and overhead, transportation and development
costs for all species within the unit are established as: TABLE OMITTED
SEE ORIGINAL
The above costs are determined from an anlysis of the data set forth
in the following table:
Logging Costs - 1957
TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL
A profit and risk allowance of 12 percent for cedar and 10 percent
for other species is considered reasonable and sufficient to allow an
equitable return to the purchaser. Using these allowances, with
estimated costs and average log prices established for the unit,
stumpage values for the timber species in the Taholah Logging Unit are
computed below. Logging costs are as shown in column 3, Table XVII.
Log prices are as calculated and set forth in Table XVI, with the
execption of hemlock and white fir. These are pulping species. For
pulping purposes, a No. 3 sawmill grade log has practically the same
value as one that is graded No. 2. Log values in Table XVI were largely
derived on the basis of veneer and sawmill log grades. In order to give
some weight to the pulp values of low grade log, the above established
values for hemlock and white fir have been increased by 5 percent:
TABLE OMITTED SEE ORIGINAL Summary and Indicated Stumpage Values
The following table shows the stumpage rates derived by the various
approaches together with current rates and indicated stumpage values:
TABLE OMITTED SEE ORIGINAL
Recommended Stumpage-to-Log Price Ratios
This review of stumpage values has been made under the provisions of
Section 10 of the Taholah timber contract. It has been determined that
a change in market conditions indicates an adjustment of stumpage-to-log
market ratios. It is recommended that, effective April 1, 1958, the
ratios as set forth in the following table be established for
determination of stumpage rates to be paid under the Taholah contract.
TABLE OMITTED SEE ORIGINAL
HES-004-0662-0683
HES-004-0662-0683
IIJ58.1
COMM ; BIA BR OF FORESTRY
571014
CORRESPONDENCE
AREA DIR ; BIA
DEPARTMENT OF THE INTERIOR
BUREAU OF INDIAN AFFAIRS
1432201--1801.2
FORESTRY
PORTLAND AREA OFFICE
TELETYPE PORTLAND, OREGON
OCTOBER 14, 1957
ALOHA LUMBER CORPORATION C/O PAUL R. SMITH 5553 STUART BUILDING,
SEATTLE, WASHINGTON
PURSUANT TO NOTIFICATION OF 9-10-57 OF INTENTION TO REVISE
STUMPAGE RATE FOR SALVAGE CEDAR CORDWOOD, THE RATE OF $2 PER CORD IS
HEREBY MADE EFFECTIVE 11-1-57 PURSUANT TO TERMS OF CONTRACT.
AREA DIRECTOR
Copy to: Supt., Western Washington Agency
Forest Manager, Hoquiam Substation, Hoquiam, Wash.
Branch Subject
Branch chrony
Yellow chrony
LEHatch:mw 10-14-57
HES-004-0684-0684
HES-004-0684-0692
IIJ57.2
SMITH, PAUL R ; ALOHA LUMBER CO
570911
CORRESPONDENCE
SMITH, PAUL R ; ALOHA LUMBER CO
ALOHA LUMBER CORPORATION
SECCESSORS TO
ALOHA LUMBER CO.
LOGGER AND MANUFACTURES
WESTERN WOOD PRODUCTS
POLES AND PILINES
ALOHA, WASHINFTON
Sept. 11, 1957
Mr. Perry E Skarra, Acting Area Director Bureau of Indian Affairs
Interior Building Portland, Oregon Dear Mr. Skarra:
We greatly appreciate the reduction in salvage cedar cordwood to
$2.00 per cord.
I see no occasion to have a further consultation on this, but you can
rest assured that we will log both Hemlock and Cedar salvage as rapidly
as possible, because we get something out of it to help pay the cost of
building roads, which is better than we are able to do at present on our
main contract.
cc: Western Wash. Agency
Aloha
HES-004-0685-0685
HES-004-0684-0692
IIJ57.2
SKARRA, PERRY E ; BIA
570801
CORRESPONDENCE
HUTCHINSON, R H ; W WASH AGENCY
Field Service Forestry
Western Washington Agency
Hoquiam Sub-Station
Hoquiam, Washington
August 1, 1957
Mr. Don C. Foster Area Director, Portland, Oregon Dear Mr. Foster:
Enclosed, in duplicate, is a Report of Stumpage Value Study - Cedar
Cordwood and other Forest Products - Taholah Logging Unit Contract No.
1-101-Ind-1766 as modified March 21, 1956. The report has been prepared
by Mr. John W. Libby, Forest Manager, and is dated August 1, 1957. Mr.
Libby wishes to acknowledge the assitance of Mr. James M. Ross, Jr.,
Forest Officer in Charge of the Taholah Unit, in assembling the data for
this report.
Section 4 of the Modification of Contract provides for an annual
review and adjustment of stumpage prices for the forest products covered
by the modification. The review may be initiated at our initiative or
upon request of the purchaser. Thirty days notice to the purchaser is
required in event of a change in prices.
A request for an adjustment of cedar cordwood stumpage was made by
the Aloha Lumber Corporation in a letter dated May 4, 1957. (Copy
enclosed) No official action was taken at that time. Mr. Libby dis-
cussed the matter with Mr. Paul Smith, President of the Aloha Lumber
Corporation, and it was agreed that a study would be made this summer.
I concur with Mr. Libby's recommendation that the stumpage price for
cedar cordwood be reduced to $2.00 per cord, after proper notifica- tion
to the Aloha Lumber Corporation in accordance with the terms of Section
4 of the Modification of Contract. No change is recommended for other
forest products. Early action on this matter is requested in order that
the salvage operations now started may be continued without
interruption.
Yours very truly,
(SIGNATURE) R. H. Hutchinson
for Superintendent
JWLibby:kf Enclosure REPORT OF STUMPAGE VALUE STUDY - CEDAR CORDWOOD AND
OTHER FOREST PRODUCTS TAHOLAH LOGGING UNIT CONTRACT NO. I-101-IND-1766,
AS MODIFIED MARCH 21, 1956.
A modification of the Taholah Logging Contract, No. I-101-Ind-1766
was approved by Assistatn Secretary of the Interior Wesley A. D'Wart on
March 21, 1956. One of the provisions of this contract modification was
for salvage re-logging of material not merchantable as saw timber under
the original contract. Stumpage prices established for products to be
salvaged under this provision were follows: TABLE OMITTED SEE ORIGINAL
At the time these prices were established, we had had sufficient
experience with pulpwood and shake board operations to enable us to make
an intelligent appraisal of stumpage values for these two products.
This was not true in the case of cedar shingle bolts and cedar cordwood.
We know no shingle bolt production naywhere in this area. Material
suitable for shingles can usually be more profitably manufactured into
shakes. This item was covered in the contract modification to provide
for possible future developments. There is still no demand for shingle
bolts.
A provision for sale of cedar cordwood was included for the some
reason. No market for this material existed. Recently, the H. J.
Ultican Re-Manufacturing Company of aberdeen, Washington, has
established a small mill for manufacture of 8 foot 2x4's. The price
established for cedar cordwood delivered to the Ultican Mill in Aberdeen
is $17.50 per cord. Mr. Ultican has indicated that he will be in a
position to take a considerable volume of this material on a relatively
continuous basis.
On the basis of this market, arrangements were made to undertake
salvage of residual cedar on a cut-over allotment in the Taholah Unit.
It was understood that this was to be done on a trial basis to determine
the feasibility of such an undertaking. Mr. James Ross, our Forest
Officer in Charge of the Taholah Sale, and Mr. Richard Sterling,
Forester for Aloha, have worked closely with other company officials and
with the Gyppo operator on the project. It is felt that it is to
everybody's interest to make it work.
An inspection of the operation after one work, clearly showe that the
salvage of this residual cedar is desirable. In our opinion, the
stumpage revenue, while important, is a secondary benefit. The real
benefit is the removal from the premises of vast amounts of combustible
material and the increased chances for entablishment of reproduction.
From just one "cat road" and a small area around the landing, a gross
volume of 125.26 cords of cedar was salvaged. It was not possible to
estimate the acreage covered, but it would be less than five.
All of the evidence indicates that our present stumpage rate of $4.00
per cord is too high, and if wehope to continue with the operation a
downward adjustment will have to be made. The market price quoted above
of $17.50 per cord F.O.B. Aberdeen is 50 cents less than the current
price for hemlock pulpwood. Our stumpage rate for hemlock pulpwood is
$2.00 per cord; for cedar cordwood, $4.00 per cord.
An analysis of operating costs indicates that the hemlock price is
equitable. Following is a financial record of the cedar salvage
operations for the period of July 19 through July 26. Six working days
are invilved. The operator is Bill Camas, who is recognised as one of
the most efficiant salvage operatore in this area. TABLE OMITTED SEE
ORIGINAL
The costs shown above are actual costs to Mr. Camas. Because there
was some hemlock salvage involved, he was able to show some return for
his efforts, but on the cedar alone, he actually lost money. Cost of
producing the hemlock is not included in the above tabulation.
It is not possible on operations such as these to show a complete
breakdown of costs as is customarily done on Stumpage Appraisals. Mr.
Camas employs five men on this particular operation, and he works with
them much of the time. His cat driver and one or more men may work
together putting together a load in the woods. They will saw out the
logs or pieces wanted, choke them, and get them started for the landing.
While they are being skidded, the men in the brush, look for the next
load and start sawing it. In the meantime, the men at the landing
unbook the "turne" as they come in. They will then measure and buck the
pieces into 8 foot lenghts and load them on the trucks. All men work at
whatever job needs doing at the moment, and it is not possible to know
what part of the operating costs are chargeable to the various phases of
the job. Mr. Camas has stated that his average costs are about $5.00
per cord for wood loaded on trucks. This is born out by the actual
costs experienced as shown above.
The Camas job is a tractor opperation. On much of the area, tractor
logging will not be possible and high load logging will have to be used.
It is generally accepted that the cost for high load salvage operations
is about $1.00 more than for tractor logging. Most of the added cost is
in extra equipment such as guy lines, skidding lines, and other
materials, plus the time required for raising and rigging spar trees,
etc. Cost analysis of one such operation and of a second tractor
operation now in progress on the Taholah Unit have been made. The
results are set forth below. TABLE OMITTED SEE ORIGINAL
Equipment used by these operators consists of a 9x10 yarder, a dump
truck, a TD 14A Bulldozer and three power saws. They have $2.00 per
cord to pay for gasoline, repairs and depreciation. Anything left over
might be considered as profit. If current rentals were calculated
against this equipment, they would show an operating loss. Actually,
they are making good wages and little more on the operation. TABLE
OMITTED SEE ORIGINAL
Equipment used by these operators consists of a 1/4 yard shovel
loader, a D-4 Bulldozer and two power saws. It will be noted that the
operating margin is $1.31 higher than for the high-lead operation.
*-Charge paid to Aloha Corporation for use of
On the basis of the above analyses of actual operations on the
Taholah Unit, we have prepared an appraisal of stumpage values for cedar
cordwood and pulpwood. Production costs are the same, for all practical
purposes, except for the cost of transportation. Here the defect in
cedar results in slightly higher costs for that species than for
hemlock, since the truckers are paid on gross scale. TABLE OMITTED SEE
ORIGINAL
Application of our standard stumpage formula and figuring a profit
and risk allowance of 8 percent, indicates stumpage values of $1.45 per
cord for cedar cordwood and $1.92 per cord for pulpwood. However, the
$2.00 per cord charged the Gyppo operators for it's services by Aloha
Lumber Corporation undouetedly includes some of the element of profit
and risk which the company takes as the principal contractor. This
would seem to be proper since Aloha is responsible for it's
sub-contractors and bears the risk of fire demage. It also bears the
risk of road demage from stores and other risks incident to operation of
timber contract. After considering all of the circumstances, we
conclude that the present stumpage price for pulpwood is fair and
equitable and that the stumpage price for cedar cordwood should be
reduced to the same price of $2.00 per cord.
We recommend no change in present stumpage rates for shingle bolts
and shake boards. Shingle bolts is an item of no concern as there is no
present market. The current market for cedar shakes is poor, but there
has been no significant change in prices paid for shake boards or in the
costs of producing them since the present stumpage rate was established.
It should be noted that the minimum price for which cedar can be sold
under the Taholah Contract is $3.50 per M board feet. On the basis of
the standard converting factor of 2 cords M board feet, the recommended
stumpage rate of $2.00 per cord is equivalent to $4.00 per M board feet.
We wish to emphasize the desirability of promoting this salvage
program. The revenue to the Indians will amount to thousands of
dollars. The benefit to the lands resulting from removal of this
material can not be expressed in dollars, but in our opinion, far
exceeds the cash value of the stumpage itself.
Unless the stumpage price can be reduced to permit the gyppo
operators to at least make wages, we cannot hope to proceed with this
type of salvage. We have been assured that the present operation will
continue for a limited time, pending consideration of a stumpage
adjustment. If the recommended reduction cannot to approved at an early
date, it will be suspended and only pulpwood salvage will be carried on.
Dated: August 31, 1957
D. W. Ringey
HES-004-0686-0692
HES-004-0684-0692
IIJ57.2
FOSTER, DON C
570329
CORRESPONDENCE
WERSHING, HENRY F
March 29, 1957
MODIFICATION OF AND SUPPLEMENT TO STUMPAGE
REVALUATION REPORT
On February 27, 1957, the Assistant Secretary addressed the following
telegram to the Aloha Lumber Corporation:
"After review of established stumpage rates under Taholah
Unit contract, I find that changes in the character of the
operation and marketing conditions have so altered the situation
as to justify changes in existing ratios of stumpage to average
log price. Therefore I notify you of intention to establish
new ratios pursuant to contract procedures and effective April 1,
1957. During this period of notice upon request you may consult
with Superintendent, Western Washington Agency, Everett,
Washington, concerning such change, proposed ratios being as
follows: Western Red Cedar 34.25 percent, Sitka Spruce 27.50
percent, Douglas Fir 44.00 percent, White or Amabilis fir 22.25
percent, Western White Pine 28.00 percent, Western Hemlock and
other species 19.50 percent, cedar poles, pulpwood salvage,
shingle bolts and shake board no change."
The authorized Indian representatives were also notified, through the
Agency Superintendent, to the same effect.
The ratios suggested in the notice are those recommended for the
purpose in the stumpage revaluation report of February 8, 1957. It
should be noted that the consultations are intended to provide all
parties in interest an opportunity to present their views regarding the
suggested ratio changes. The ratios mentioned in the notices,
therefore, were tentative only, subject to modification by the Secretary
following his consideration of additional information obtained at the
consultations and elsewhere during the interval between the issuance of
notice of intention and his actual determination of the rates to be made
effective.
The Aloha Lumber Corporation requested and was accorded a
consultation. Thereafter, there was mutual agreement by the company and
the Assistant Secretary that the decision as to actual change in ratios
could be made at any time prior to the close of business in Washington,
D.C., April 15, with the new ratios to be made effective April 1, 1957.
The Indian representatives have not requested consultation.
The Aloha Lumber Corporation has previously protested the suggested
increases in stumpage rates, and has voiced particularly strong
opposition ot the proposed increase for cedar. The puchaser has
suggested that the preent ratio for cedar should be reduced. A detailed
analysis of the protest appears later in this report and sets out our
reasons for disagreeing with many of the purchaser's contentions. We do
find, however, that there is some justification for protesting the
suggested increase in the cedar ratio. No reason has been found to
change the previously suggested ratios for Sitka spruce, Douglas fir,
white fir, and white pine. In contrast, our further review indicates
that the hemlock ratio should be increased more than previously
suggested.
Cedar products are used almost entirely for home construction
activities and the flow of this material parallels this type of
construction. Generally when home construction is off, the sale of
cedar products is off. Home building, a weak spot in business activity,
has sunk to its lowest rate in almost eight years. Builders started new
dwelling units at the rate of 910,000 units per year in February, the
lowest rate for privately financed homes since May 1949. Plans of
builders indicate no immediate upturn in home building fincanced with
loans guaranteed by the Veterans' Admiminstration or insured by the
Federal Housing Administration. It doubtless will be some time before
this situation changes so its effects will be evident in the cedar
products market. Until such time, the market for cedar stumpage
probably will remain depressed.
Crow's Lumber Diegest in their March 14, 1957, issue report that red
cedar shingle producers are fighting a deadly battle to keep operating
without losses. The are unable to readily sell their No. 1 grade which
represents the major portion of the production. At least a part of the
trouble is the slow-down in F.H.A.-INSURED housing, where the No. 1
grade is often required. On contract homes, not under F.H.A., the
builders are more inclined to subtsitute the lower grade or another
material.
The stumpage revaluation study of February 8, which was the basis for
the ratios suggested in the Assistant Secretary's notice to the
purchaser and the Indians, was made on an analysis of trend in sawlog
prices and on direct stumpage appraisal. The sawlog price analysis was
made on the basis of reports of past sales modified by recent knowledge
of grade recovery. A portion of the change in log prices was then
assigned to stumpage. To this was added the bid rates, thereby
retaining the relationship of value of the dirrerent species as
originally set forth in the contract. The appraisal attempts to measure
the stumpage values by an analysis of production costs and product
value, with the usual distribution of conversion return. The production
costs were on an average basis, with some slight modification for cedar
costs. There is no way of determining the actual relationship of these
costs to each species. There is, therefore, the definite possibility
that this relationship has changed.
A study of stumpage value increases over the past several years
indicates a more raid increase in hemlock, white fir, and Douglas fir
prices than the market trends show. The serious decline in cedar value
indicates the opposite effect. It is therefore appropriate to consider
a realignment of the relative values of the different species os timber
on this basis.
The portland Area Office has made an analysis of stumpae values
subsequent to the notification of intention to change ratios. From
their analysis they agree that the proposed ratio for cedar is too high
in view of present market conditions and recommend a reduction. They
also agree that there should be some increase in the ratios for hemlock
and white fir.
Shortly after the Assistant Secretary gave notice of intention to
change stumpage ratios, the quoted log market prices for January 1957,
became available. When compared with the averages for the fourth
quarter 1956, there appears a decided decline in the value of cedar
logs. All other species have remained about the same or have increased
in value. This comparison appears below:
Quoted Log Prices Puget-Sound-Grays Harbor Markets
Based on 1956 production
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
The U.S. Forest Service has recently revised the cedar log value that
it uses in stumpage appraisalw in recognition of the declining market,
the revised price being: TABLE OMITTED SEE ORIGINAL
These values correspond very closely to those shown in the previous
table as derived by the Bureau of Indian Affairs.
As was previously indicated, the February 8 report did not materially
realign the relative values of the several species from those originally
established in the contract. Since it becomes necessary ot depart from
market trends as indicated by the fourth quarter 1956 in the case of
cdear, it aslo appears appropriate to give consideration to some of the
other species in a similar manner. The table of quoted log prices shows
a sharp decline for the value of cedar but an improvement rather than a
decline in the value of the other important species.
The Area Director, in his report of March 27, 1957, recommends no
increase in the stumpage rate for cedar and modest increase for the
other important species. We are of the opinion that the rates for
cedar, white fir and hemlock should be increased more than that
recommended by the Area Director.
These reviews not afford an opportunity to accomplish some
realignment of the relative values of the different species which was
not accomplished in the previous report. The application of this
reasoning is not a departure from the market condition and appraisal
study, but is an extension of it recognizing some differences which
mathematical procedure did not reveal.
On the basis of this reasoning and the exercise of judgment in this
controversial matter, it is recommended that the following action be
taken. In view of the decline in cedar values, and the indications that
it will last for some time, it is recommended that the indicated
stumpage rate for cedar be reduced from $20.00 to $16.50. Because of
the reasonably constant and indicated increased values for hemlock, as
contrasted to the decline in cedar, it is recommended the indicated
rates for this species be increased from $9.00 to $11.00. The ratios
commensurate with these changed values should be substituted for those
previously proposed to the purchaser.
The contract requires that the ration be related to the combined
Puget Sound-Grays Harbor log market prices in a specific manner. These
relationships are calculated on the basis of the fourth quarter 1956
average log prices and the recommended stumpage rates. TABLE OMITTED
SEE ORIGINAL
The resultant stumpage ratios when applied to the fourth quarter 1956
log prices will correspond closely with the recommended stumpage rates.
These rates will now be compared with those actually in effect for the
first quarter 1957 to show the change. TABLE OMITTED SEE ORIGINAL
This results in no change in the ratios proposed on February 27, 1957
for Stika spruce, Douglas-fir, white fir, and western white pine. The
ratio for western red cedar is decreased from 34.25 to 28.25. For
western hemlock the ratio is increased from 19.50 to 23.75.
It is recommended that these ratios be made effective on April 1,
1957, in accordance with the agreement that final action by the
approving officer be made retroactive to this date provided action is
taken not later than the close of business on April 15, 1957.
Area Director, Portland (2) Assistant Chief, Branch of Forestry
REPORT ON ANALYSIS OF PROTEST BY
ON PROPOSED STUMPAGE TO LOG PRICE RATIOS
TO BE MADE EFFECTIVE APRIL 1, 1957
In letters of February 26, March 6, March 14, and March 23, 1957 the
Aloha Lumber Corporation responded to the Assistant Secretary's
notification of intention to change stumpage to lumber price ratios
effective April 1, 1957 on the Taholah Logging Unit. The letters of
February 26, March 6, and March 14 were addressed to the Superintendent,
Western Washington Agency, and that of March 23 to the Commissioner,
Bureau of Indian Affairs. Particular emphasis has been placed on the
proposed increase in ratio for western red cedar, and it was the opinion
of the purchaser that this ratio should be adjusted downward rather than
upward.
In support of this contention the purchaser presented a copy of
Crow's Weekly Letter dated February 22, 1957, and an article entitled
"Western Lumber Mills Note Signs of Slight Rise in Demand, Prices in the
Wall Street Journal of March 4, 1957. There was also included a
tabulation by the Red Cedar Shingle Bureau showing the decline in the
production of red cedar shingles since 1950. The purchaser also
submitted a condensed balance sheet and statement of operations for the
four months ending February 28, 1957. In connection with the balance
sheet there was submitted a copy of Crow's Weekly Letter dated March 8,
1957, and a copy of the statement dated November 18, 1955 and submitted
to the Joint Committee on Federal Timber Sale Policies during the
hearings held at Aberdeen, Washington.
The purchaser has not raised the question of interpretation of the
terms of the contract and makes his protest entirely on the decline in
the lumber market. The following figures are presented: TABLE OMITTED
SEE ORIGINAL
The president of the company states that they are paying 5 percent on
loans from the Peoples National Bank. The M. R. Smith Shingle Company
which is associated with the Aloha Lumber Corp. made some long-term
loans several years ago at rates of 4 and 4 1/2 percent because of the
many obligations due to reconstruction of the mill.
It is further stated that for the year ending October 30, 1956, there
was an item of stumpage sales in the amount of $22,890.78 which was
privately owned timber and has no connection with the Taholah Unit If
this were deducted from net income after taxes, the return on invested
capital was 5.1 percent.
The financial statement for the four month period ending February 28,
1957 shows an operating loss of about $40,000.
There is also the statement that the timber logged to date has been
in the better quality stands. This was done to help decrease the amount
of debt outstanding. It is expected that future logging will be in
poorer quality timber.
The purchaser raises no particular objection to the production costs
which have been used for logs delivered to the mill at Aloha. He does
protest that no allowance has been made for logs which cannot be
utilized at the mill but must be shipped to other points. It is stated
that this cost is about $8.40 and should be taken into consideration
when adjusting stumpage rates.
There has been a significant change in market conditions since the
contract was executed. It has been a period during which lumber and
allied forest products have increased tremendously in value. Likewise
the value of stumpage has increased. During 1954 and 1955 stumpage sold
at all-time highs. The change in log values has not been startling when
compared from one-quarter-annual period to another. Over a period of
years, however, the change is much more significant.
The period during which the contract has been in effect has been one
of generally rising prices for goods produced from the Taholah Unit
stumpage, and there has been no justification for reducing the
stumpage-to-log ratios. The ratio adjustments which have been made and
those which are under consideration have been approached in as fair a
manner as it is possible to do.
In a study which involves six different species of timber, the
stumpage values of which are predicated upon changes in market
conditions and the use of average production costs, there is no formula
which will give consistent results. The results will not necessarily
maintain the alignment of values for the different species in their
proper relative positions under changing conditions. At one time a
profitable operation may depend on certain of the species, and at
another time on a different combination of species. Such information is
not completely revealed by any study of trends or appraisal, but must be
based on judgment.
The study which resulted in the ratios proposed to the purchaser on
February 27, 1957 was based on a consideration of values from two
viewpoints. The first consideration was the trend in log values. It
was based on records of past sales, adjusted to consider change in grade
recovery and scaling practices. The second consideration was a direct
stumpage appraisal. The appraisal attempts to derive the current value
of the stumpage based upon pertinent and available information. Quoted
log prices were used in the appraisal. These log prices were derived in
a simple forward manner and since they are similar to prices used by
other bureaus, there appears to be no question of their validity. It is
interesting to note that, although the two analyses of stumpage values
did not use the same source of information as to log values, the
resultant stumpage values are generally similar.
Informartion pertaining to costs on west coast operations has been
difficult to obtain. There may be some question as to the validity of a
comparison with costs on east-side operations although many of the cost
changes are similar. Since the two areas are in competition, logic
indicates that any cost changes would need to be similar or parallel.
There are presented below changes in production costs for the western
pine region:
Total Production Costs-Western Pine Region-Log Tally Basis TABLE
OMITTED SEE ORIGINAL
Cost changes since 1950 are as follows; TABLE OMITTED SEE ORIGINAL
Changes in logging costs will now be considered;
Logging Costs-Western Pine Region-Log Tally Basis TABLE OMITTED SEE
ORIGINAL
Cost changes since 1950 are as follows; TABLE OMITTED SEE ORIGINAL
Although it is generally agreed that labor and material costs have
been and are increasing, there are various offsetting factors which tend
to hold production costs down. Much of this is due to increased
efficiency for the entire industry.
The analysis made by the Bureau and its subsequent recommendations on
ratio changes were based on the conditions described in the Bureau's
trend study and appraisal. The recommendations were generally in accord
with the results shown in that study, although it was evident that the
stumpage rates for cedar appeared somewhat high and those for western
hemlock somewhat low. Other information has become available, in
addition to that presented by the purchaser, and it appears that some
adjustment of the proposal stumpage to log price ratios is in order.
The conclusions reached in this matter appear in the attached report
entitled "Modification of and Supplement to Stumpage Revaluation Report,
Taholah Logging Unit, Quinault Indian Reservation, Washington."
Copy to: Area Director, Portland, Oregon (2)
HES-004-0693-0701
HES-004-0693-0701
IIJ57.1
560525
CORRESPONDENCE
LIBBY, JOHN W ; BIA
DEPARTMENT OF THE INTERIOR
BUREAU OF INDIAN AFFAIRS
Field SERVICE
Western Washington Agency
Hoquian Sub-Station
Hoquian, Washington
May 25, 1956
Mr. C. W. Ringey Superintendent, Western Washington Agency Dear Mr.
Ringey:
Enclosed herewith is a revised report, prepared by Mr. Ben Ellwanger,
Forester, setting forth the results of studies made to determine the
difference in volume resulting from log scales made by the Grays Harbor
Log Scaling and Grading Bureau as compared with the scale of the same
logs by the Indian Bureau. These studies were made to establish a basis
for the implementation of Section 7 of a Modification of the faholah
Logging Unit Contract, No. I-101-Iad-1700, approved March 21, 1956, by
Assistant Secretary of the Interior, Wesley A. D'Ewart. This Section
provides for Logs prodced under the Contract to be scaled by the Grays
Harbor Log Scaling and Grading Bureau.
Section 8 of this Modification of Contract provides for a study to
determine the difference in saw timber volume that will result by
adoption of Scaling Bureau scaling practices and further provides for
adjustment of stumpage to log price ratios, as set forth in Section 8 of
the original Contract, to compensate for such difference.
In analyzing the results of the studies reported by Mr. Ellwanger, a
number of factors should be considered. One such factor is the matter
of culls and chunks. Adoption of Scaling Bureau practices will result
in a loss in volume which will vary in accordance with the size of
timber and the amount of defect. Analysis of the studies made indicates
that this loss will be between one and two percent.
On page 14 of Mr. Ellwanger's report be comments on the possibility
of loss as a result of logs being left in the woods too long and
becoming sap-rotted. Mr. Ellwanger is correct in his statements as to
the scaling of these logs, but this particular factor need not be
considered in this study. In such cases, it is the resposibility of the
Officer in Charge of the Sale to assure that all logs are delivered for
scaling before they deteriorate sufficiently to result in a loss in
volume. If they are not, they will be scaled by Indian Bureau Scalers
and will receive the full scale they would have had if removed when cut.
Mr. Ringey: Cont. Page 2
In this connection, it should be noted that the Grays Harbor Bureau
is currently scaling logs produced on our Crane Creek Unit. The
situation envisaged by Mr. Ellwanger appeared to be developing in one
instence. In this case, the purchaser was notified that unless certain
right-of-way logs were picked up at an early date, we would scale then
on the ground. The purchaser complied and no loss in scale resulted.
Other factors mentioned by Mr. Ellwanger, including the loss in culls
and chunks will be provided for by adjusting the stumpage to log price
ratio in accordance with the percentage difference in scale shown by the
studies. In order that the results of these studies may be seen at a
glance, the results are tabulated on the following page. Also included
in this table are the results of an earlier study made at the Moclips
Scale Rack and reported by the writer as of August 15, 1955.
CORPORATION SCALE STUDIES
TABLE OMITTED SEE ORIGINAL Mr. Ringey, Cont. Page 4
After due consideration of all factors involved, it is my opinion
that the difference in scale is truly reflected by the combined net
scale of the three studies listed on the preceding page, which shows the
Indian Bureau log scale to be 12.5 percent higher than that of the
Scaling Bureau.
Accordingly, if Bureau Scale is to be adopted for logs produced under
the Taholah Timber Sale Contract, an upward adjustment of the stumpage
to log price ratios will be necessary to compensate for the difference
in net volume that will result.
The required adjustment is calculated and set forth in the following
tables:
Calculation of Stumpage to Log Price Ratios Required to Compensate
for lower volume of log scale that will result if scaling of logs
produced on the Taholah Unit is changed from Indian Bureau to Grays
Harbor Log Scaling and Grading Bureau practices: TABLE OMITTED SEE
ORIGINAL Mr. Ringey: Cont. Page 6
Application of ratios, as set forth above, to average log market
prices as reported by the Pacific Northwest Loggers' Association for the
first quarter of 1950 for Puget Sound and Grays Harbor Log Markets.
TABLE OMITTED SEE ORIGINAL
The stumpage rates as calculated above compare favorably with rates
currently in effect on the Crane Creek and Boulder Creek Units where
logs are scaled by the Grays Harbor Log Scaling and Grading Bureau. For
ready comparison, those rates are listed below with the above calculated
rates for the Taholah Unit. TABLE OMITTED SEE ORIGINAL Mr. Ringey:
Cont. Page 7
The Taholah Logging Contract, No. 1-101-Ind-1766, was recently
modified to provide, among other things, that, ".....the Commissioner of
Indian Affairs, hereinafter called the Commissioner, in his discre- tion
and for such periods as he may elect, may require that logs cut under
this Contract shall be scaled by the Grays Harbor Log Scaling and
Grading Bureau, hereinafter called the Scaling Bureau. Scaling by the
Scaling Bureau shall not be exclusive so as to prevent scaling by
Scalers employed by the Bureau of Indian Affairs, of material that is
not delivered to the point of Bureau Scaling. Should the Commissioner
intend to change from one scaling procedure to the other, he shall
notify the purchaser in writing not less than thirty days prior to the
to the effective date of such change - - - -". This Modification of
Contract was approved by the Assistant Secretary of the Interior on
March 21, 1956.
As indicated above, the Grays Harbor Log Scaling and Grading Bureau,
is currently scaling logs produced on the Crane Creek and Boulder Creek
Logging Units on the Quinault Reservation. These scaling services have
proven satisfactory and scaling by the Scaling Bureau has resulted in
substantial savings to the Bureau of Indian Affairs. Implementation of
the above cited contract provision to provide for scaling of logs from
the Taholah Unit will release one full time Forestry employee for other
duties and will give the Officer in Charge of the Taholah Sale more time
for supervision of the sale. This added time will be needed to properly
supervise contemplated pre-logging and salvage re-logging operations
provided for in the Contract Modifica- tion.
Accordingly, it is recommended that Section 7 of the Modification of
Contract be invoked and that the Aloha Lumber Corporation be noti- fied
to enter into a satisfactory agreement with the Grays Harbor Log Scaling
and Grading Bureau whereby said scaling Bureau will scale the logs
produced on the Taholah Unit, such service to begin July 1, 1956, or as
soon thereafter as the requirement of notice will permit.
It is further recommended that, in accordance with Section 8 of the
Modification of Contract and as a result of studies made and reported
herewith, that the ratios of stumpage to log market prices as presently
established under the Contract shall be adjusted upward to compensate
for the difference in scale that will result when scaling by the Scaling
Bureau is established. Mr. Ringey: Cont. Page 8
Recommended new ratios are as set forth below: TABLE OMITTED SEE
ORIGINAL
Respectfully Submitted,
(SIGNATURE)
John W. Libby,
Forest Manager
JWL:kf
DEPARTMENT OF THE INTERIOR
BUREAU OF INDIAN AFFAIRS
Western Washington Agency
Mr. C. W. Ringey Superintendent, Western Washington Agency Dear Mr.
Ringey:
The enclosed report has been prepared by Mr. Ben Ellwanger, Forester,
following studies made on the Quinault Reservation. Mr. Ellwanger had
done a commendable job in his presentation of the results of these
studies.
As a result of these studies, he recommends an upward adjustment of
10 percent in stumpage rates on the Taholah Unit, if scaling of logs on
that Unit is to be done by the Grays Harbor Log Scaling and Grading
Bureau.
I believe Mr. Ellwanger's analysis of the various studies is good,
and that the ten percent represents the average difference in log scale
between the Scaling Bureau and the Indian Bureau for logs scaled on the
Taholah Logging Unit. However, I believe Mr. Ellwanger has given
insufficient weight to one factor. That is the matter of "culls" and
"chunks".
In his enclosure No. 4 he shows that out of 2,603 pieces of hemlock,
scaled by Indian Bureau Scalers, the Scaling Bureau Scaler tallied 67
culls, 217 chunks and 1 pole for a total of 284 pieces with no scale.
Out of 234 pieces of cedar, the Scaling Bureau Scaler tallied 8 chunks
and 2 poles for 10 pieces with no scale. Two spruce logs were culled.
All of these pieces were scaled by the Indian Bureau Scalers for their
merchantable content. The net scale resulted in a lower volume by the
Scaling Bureau of 12.2 percent. Two percent of this difference might
well be attributed to these chunks and cull logs.
If the merchantable volume of 297 pieces, given no scale by the
Scaling Bureau, is assumed to average 50 board feet per piece, the
volume lost in these pieces would be 11,880 board feet. This is
slightly over 1 1/2 percent of the total net volume scaled by the Indian
Bureau Scalers. Mr. Ringey, Cont. Page 2
The assumption of 50 board feet per piece is reasonable. All of the
"chunks" and poles, tallied for no scale by the Scaling Bureau, would
have been scaled by the Bureau of Indian Affairs Scalers for volumes of
from 20 to 50 board feet, exception pieces smaller than 10 inches in
diameter and less than 12 feet in length. This would result in less
than the assumed 50 foot average, but it is probable that the
merchantable scale of the cull logs would have been enough to result in
such average for all of this "no-scale" material.
Where comparisons in net scale are made, this chunk and cull factor
is accounted for. But in such cases, the results usually indicate a
somewhat greater difference than 10 percent. Accordingly, after
considering all factors, it is my opinion that an upward adjustment of
11 percent in stumpage rates will be necessary to compensate for loss of
scale if logs produced on the Taholah Unit are to be scaled by the Grays
Harbor Log Sealing and Grading Bureau.
In the following tables, this increase of 11 percent has been applied
to current stumpage rates in effect on the Taholah Unit, and a new ratio
of stumpage to log market prices has been computed accordingly.
TABLE OMITTED SEE ORIGINAL
* - Based on 11 percent lower scale by Scaling Bureau Mr. Ringey,
Cont. Page 4
Application of even ratios, as set forth above, to average log market
prices as reported by the Pacific Northwest Loggers' Association for the
first quarter of 1950 for Puget Sound and Grays Harbor Log Markets.
TABLE OMITTED SEE ORIGINAL
The stumpage rates as calculated above compare favorably with rates
currently in effect on the Crane Creek and Boulder Creek Units where
logs are scaled by the Grays Harbor Log Scaling and Grading Bureau. For
ready comparison, those rates are listed below with the above calculated
rates for the Taholah Unit. TABLE OMITTED SEE ORIGINAL Mr. Ringey,
Cont. Page 5
The Taholah Logging Contract, No. I-101-Ind-1766, was recently
modified to provide, among other things, that, "........the Commissioner
of Indian Affairs, hereinafter called the Commissioner, in his
discretion and for such periods as he may elect, may require that logs
cut under this Contract shall be scaled by the Grays Harbor Log Scaling
and Grading Bureau, hereinafter called the Scaling Bureau. Scaling by
the Scaling Bureau shall not be exclusive so as to prevent scaling, by
scalers employed by the Bureau of Indian Affairs, of material that is
not delivered to the point of Bureau Scaling. Should the Commissioner
intend to change from one scaling procedure to the other, he shall
notify the purchaser in writing not less than thirty days prior to the
effective date of such change ....." This Modification of Contract was
approved by the Assistant Secretary of the Interior on March 21, 1956.
As indicated above, the Grays Harbor Log Scaling and Grading Bureau,
is currently scaling logs produced on the Crane Creek and Boulder Creek
Logging Units on the Quinault Reservation. These scaling services have
proven satisfactory and scaling by the Scaling Bureau has resulted in
substantial savings to the Bureau of Indian Affairs. Implementation of
the above cited contract provision to provide for scaling of logs from
the Taholah Unit will release one full time forestry employee for other
duties and will give the Officer in Charge of the Taholah Sale more time
for supervision of the sale. This added time will be needed to properly
supervise contemplated pre-logging and salvage re-logging operations
provided for in the Contract Modification.
Accordingly, it is recommended that Section 7 of the Modification of
Contract be invoked and that the Aloha Lumber Corporation be notified to
enter into a satisfactory agreement with the Grays Harbor Log Scaling
and Grading Bureau whereby said Scaling Bureau will scale the logs
produced on the Taholah Unit, such service to begin on July 1, 1956.
It is further recommended that, in accordance with Section 8 of the
Modification of Contract and as a result of studies made and reported
herewith, that the ratios of stumpage to log market prices as presently
established under the contract shall be adjusted upward to compensate
for the difference in scale that will result when scaling by the Scaling
Bureau is established. Mr. Ringey, Cont. Page 6
Recommended new ratios are as set forth below:
Western Red Cedar Stumpage to
Western Red cedar Average Log Price .... 25
Sitka Spruce Stumpage to
Sitka Spruce Average Log Price ......... 27
Douglas Fir Stumpage to
Douglas Fir Average Log Price .......... 30
Amabolis Fir Stumpage to
Amabolis Fir Average Log Price ......... 16
Western White Pine Stumpage to
Western White Pine Average Log Price ... 24
Western Hemlock and other Species Stumpage to
Western Hemlock Average Log Price ...... 17
JWL:kf
LOG SCALE COMPARISON STUDY
TO DETERMINE
DIFFERENCE IN LOG VOLUMES
AS SCALED BY
GRAYS HARBOR LOG SCALING AND
GRADING BUREAU
AND THE
BUREAU OF INDIAN AFFAIRS
FOR LOGS PRODUCED ON THE
QUINAULT INDIAN RESERVATION
REPORT PREPARED AND SUBMITTED BY
(SIGNATURE)
BEN ELLWANGER
FORESTER
APRIL 30, 1956
In view of the proposed plan to have the timber from the Taholah
Unit, Quinault Indian Reservation, scaled by the Grays Harbor Log
Scaling and Grading Bureau, it seems imperative that a thorough
comparison should be made of the scale rules and regulations of the
Grays Harbor Log Scaling Bureau and the Indian Bureau. The Percent of
difference in net scale due to existing scaling instructions will be in
direct proportion to the difference in stumpage value received.
The following studies have been conducted and data assembled for the
purpose of trying to determine as nearly as posible, the exact effect of
all differences in scaling insstructions and procedures, both in actual
scaling as practiced by both Bureaus, and in a comparison of rules and
methods without the element of human error.
It is readily understood that a scale of logs by an individual will
var from day to day; that scaling conditions and the condition of the
logs scaled will all have an effect on the final outcome.
Clean logs from dry ground can be more accurately scaled than the
same logs would be if they were scaled in a muddied condition and a poor
estimate of defect on one large log can result in a difference of one or
more percent on a full days scaling.
In an effort to establish the amount of existing difference, certain
studies and check scales have been conducted and the resulting data is
summarized and set forth on the following pages.
These studies and check scales consist of the following: Enclosure:
1
Log Scale Study of the Taholah Unit with Mr. M. Mathews of the Grays
Harbor Bureau and Mr. William Hudson, Forester, of the Indian Bureau,
participating. Enclosure: 2
A report showing a summary of check scales of Mr. M. Mathews, Grays
Harbor Bureau Scaler, conducted by Mr. Ben Ellwanger, Forester, Check
Scaler for the Indian Bureau. Enclosure: 3
A check scale of Mr. William Hudson, Forester, Scaler on the Taholah
Unit, conducted by Ben Ellwanger, Check Scaler. Enclosure: 4
Log Scale Study of the Quinault Lake Unit, with Mr. James Estes,
Grays Harbor Log Scaling Bureau, and Messers. Robert Fields and Edward
Winsor, participating. Enclosure: 5
Report showing the results of a check scale of Mr. J. Estes, Grays
Harbor Log Scaling Bureau Scaler, conducted by Ben Ellwanger, Forester,
Indian Bureau Scaler. Enclosure: 6
Report showing a summary of check scales of Messers. Robert Fields,
Indian Bureau Scaler, and Edward Winsor, Forester, employed as scalers
on the Quinault Lake Unit. Enclosure: 7
A study of differences in Scale Rules and Instructions of the Grays
Harbor Bureau and the Indian Bureau. Enclosure: 8
A comparison of the scale of logs over 32 feet in length showing the
difference between Grays Harbor Bureau and Indian Bureau Scales, due to
different maximum scaling lengths. Enclosure: 9
A comparison of scales of logs with fractional diameters showing the
difference due to the dropped or raised fractional inch. Enclosure: 10
A piece study of cull logs giving the percent of culls by species of
1370 logs scaled by the Grays Harbor Scaling Bureau.
COMPARISON LOG SCALE STUDY
STUDY CONDUCTED APRIL 9 TO APRIL
13, 1956
LOGS SCALED ON TRUCKS - MOCLIPS
SCALE RACK
TAHOLAH UNIT, QUINAULT INDIAN
RESERVATION
Enclosure: 1
In order to determine the variation in sclae as between logs scaled
by the Grays Harbor Log Scaling and Grading Bureau and the same logs
scaled by the Indian Bureau, arrangements were made with the Grays
Harbor Bureau for a direct comparison scale of a substantial volume of
logs. The place selected for the study was the Moclips Scale Rack where
Indian Bureau Scalers scale all logs from the Taholah Logging Unit.
Scaling at this rack is normally performed by Mr. William Hudson,
Forester, and Mr. James Bryson, Forest Officer in Charge of the Taholah
Scale. Mr. Hudson is the full time scaler, and Mr. Bryson helps with
the scaling during peak production hours of the day. During the period
of this comparison, practically all scaling was done by Mr. Hudson.
During the period from April 9 to 13, 1956, while this study was
being conducted, all logs from the Taholah Unit were scaled by both Mr.
Hudson and Mr. M. Mathews, representing the Grays Harbor Scaling Bureau.
Mr. Hudson scaled according to the terms of the Taholah Contract,
which prescribes a maximum scaling length of 32 feet. Mr. Mathews
followed the regulations of the Grays Harbor Scaling Vureau which is
based on a maximum length of 40 feet.
A summary of the results obtained, both in comparison of log count
and a comparison of gross scale, is appended.
In an analysis of this comparison scale, the net scale is dis-
regarded. Without realizing the object or importance of the study, Mr.
Hudson availed himself of the opportunity to question a more experienced
scaler, and the resulting discussion of individual logs and methods of
cutting for various defects in logs being scaled, gave results
correlated to an extent that the net scale of both Mr. Hudson and Mr.
Mathews must be ignored.
This study included a check of 1,752 logs (Indian Bureau tally) and a
gross scale of 1,166,500 board feet. The piece difference amounted to
only two logs or 0.11 percent on the total and the piece difference by
species is insignificant in view of the number of logs scaled. The
truck loads hauled from the Taholah Unit are usually large as this is a
private road and state road restrictions do not apply. Consequently,
loads in excess of 10,000 feet gross are not uncommon. On loads of this
size, it is an easy matter to overlook small chunks buried in the center
of the load.
A more exact comparison of the difference between the scale of Grays
Harbor Log Scaling Bureau Scalers and Indian Bureau Scalers can be found
in the comparison of gross scale. A gross scale volume of 1,166,500 is
shown by the Indian Bureau, while the Grays Harbor Bureau shows a total
gross scale of 1,841,840, for a volume difference of 124,660, or 10.89
percent.
This difference in gross scale should be considered a more accur- ate
check than any study of net scale as the difference in gross scale
should be due entirely to the difference in scaling procedures. A
comparison of net scale depends upon the jdugement of the scaler in
cutting for defect and so vastly increases the element of human error.
Thus the difference of 10.89 percent shown in the gross scale compari-
son should be considered a true indication of the corrective factor
necessary between the Grays Harbor Bureau and the Indian Bureau Scale.
Following are the results of this comparison scale, showing dif-
ferences in Piece Count and in gross log scale: TABLE OMITTED SEE
ORIGINAL
Gross Log Scale by Species based on Bureau of Indian Affairs Scale:
TABLE OMITTED SEE ORIGINAL Enclosure: 2 Check Scale: M. Mathews
Following are the results of three recent check scales of M. Mathews,
Grays Harbor Log Scaling and Grading Bureau Scaler, who has been
employed in scaling timber from the Quinault Indian Reserva- tion.
Check Scales #1 and #2 took place at Aloha, Washington and the scale was
of Northern Pacific Railroad Cars. Check Scale #3 was of logs from the
Crane Creek Unit, deposited in the Moclips Pond by Carlen and McKay,
Sub-Contractors for Rayonier Incorporated. In these check scales, both
participating scalers used scale rules and procedures in accordance with
the Scaling Bureau's prescribed practices.
Mr. Ben Ellwanger, Forester, Check Scaler for the Western Washington
Agency, was the Checking Officer.
No checks of gross scale was possible as the Scaling Bureau's figures
on gross scale are not included on their scale certificates. Difference
is based on Bureau of Indian Affairs scale. TABLE OMITTED SEE ORIGINAL
Enclosure: 3
Following are the results of a check scale of William Hudson,
Forester, conducted at the Aloha Lumber Corporation Scale Rack, Taholah
Unit, April 19, 1956, by Ben Ellwanger, Check Scaler.
No comparison of piece count has been made as pieces by species as
scaled by Hudson and Checking Officer, are identical. #1 Net Log Scale
TABLE OMITTED SEE ORIGINAL #2 Gross Log Scale TABLE OMITTED SEE ORIGINAL
Enclosure: 4
A Study based on Scale Reports for period from April 2 to April
12, 1956, Logs scaled at Jeffer's Spur, Quinault Lake Unit,
Quinault Indian Reservation
In order to obtain corroperating data to use in connection with the
Taholah Log Scale Study, the Scale Reports of Indian Bureau Scalers
Messrs. Edward Winsor, Forester, and Robert Fields, Scaler, were
obtained and compared to the Scale Certificates of Mr. James Estes,
Scaler for the Grays Harbor Log Scaling and Grading Bureau.
Messrs Winsor and Fields scaled these logs on trucks at the Jeffer's
Spur Scale Rack. The entire truck load was then transferred to Northern
Pacific gondolas and immediately scaled by Mr. J. Estes. In this
transfer of loads from truck to gondola, the load is picked up in it's
entirety. No change is made in the load that could effect the piece
count or scale of the load. (Ref. Encl 4, Item #1)
A comparison of log count shows the Grays Harbor Bureau to be 41
pieces low on the total of 2,501 logs scaled as shown by the Indian
Bureau. This difference can be accounted for by the fact that many of
these pieces are small chunks with a top diameter as low as 5 inches.
These chunks are loaded end to end in the center of the load between
larger logs. It is impossible to make an exact count of every load.
Of the 2,842 pieces scaled, the Grays Harbor Bureau showed a count of
225 chunks, 89 culls and 3 poles. No scale was allowed for these 297
pieces. A more detailed explanation of chunks will be found in
Enclosure 7, Item #3.
A comparison of net scale shows a total of 712,650 board feet for the
Indian Bureau and 625,670 board feet for the Grays Harbor Bureau. This
difference of 86,980 board feet amounts to a percentage difference of
12.20 lower scale by the Grays Harbor Scaling Bureau.
A comparison of Log Count (Item #1) and a comparison of net log scale
(Item #2) are appended, based on Bureau of Indian Affairs Scale
In this comparison scale Mr. Estes has scaled in accordance with the
prescribed rules of the Grays Harbor Log Scaling Bureau, while Messrs
Winsor and Fields have scaled in accordance with the terms of the
Quinault Lake Contract. #1 Log Count of Comparison Scale. TABLE
OMITTED SEE ORIGINAL #2 Net Log Scale TABLE OMITTED SEE ORIGINAL
Enclosure: 5 Check Scale of Mr. Estes
Following are the results of a Check Scale of Mr. James Estes, Grays
Harbor Log Scaling Bureau Scaler, conducted at the Jeffer's Spur Scale
Rack, Lake Quinault Unit, Quinault Indian Reservation, April 11, 1956,
by Ben Ellwanger, Check Scaler.
In this check scale, both participating scalers used scale rules and
procedures in accordance with the scaling Bureau's prescribed practices.
No check of gross scale was possible as the Scaling Bureau's figures
on gross scale are not included on their Scale Certificates. TABLE
OMITTED SEE ORIGINAL
Of the Western Hemlock scaled on this check, 15.03 percent of the
pieces were chunked by the Indian Bureau and 17.07 percent were chunked
by the Scaling Bureau. A chunk is any piece scaling less than 50 board
feet. The difference in pieces is due to small center logs laid end to
end. The Indian Bureau Scaler has a better opportunity to find such
double logs due to the scale racks along both sides of the truck. The
Scaling Bureau scales after the load has been transferred to Northern
Pacific gondolas and doubled logs are not so easily discernable. This
inability to locate all doubled logs concealed in the center of the load
actually reacts in favor of the timber owner, as many of the doubled
logs that are scaled as one log are so small that one or both parts
might be classed as chunks without scale, if the scaler realized that
they were two short pieces and not one continuous log. Enclosure: 6 A
Summary of Check Scales
Check Scales of Robert Fields and
Following are the results of the last two check scales of Mr. Robert
Fields, Scaler, employed by the Western Washington Agency. The checks
were conducted at the Jeffer's Spur Scale Rack, Quinault Lake Unit, by
Mr. Ben Ellwanger, Forester, Check Scaler for the Indian Bureau.
No comparison of piece count has been made since pieces by species as
scaled by Fields and the Checking Officer, were identical. No check of
gross scale has been made as Mr. Fields' figures on gross scale are not
available. In these check scales, the Western Red Cedar and Stika
Spruce are comprised of a few large, very defective logs and the results
of the check are not a true indication of the ability of the scaler. #1
Net Log Scale, March 1, 1956 TABLE OMITTED SEE ORIGINAL #2 Net Log
Scale, April 11, 1956 TABLE OMITTED SEE ORIGINAL Enclosure: 6 Cont.
Following are the results of the last two check scales of Mr Edward
Winsor, Forester, employed by the Western Washington Agency The checks
were conducted at the Jeffer's Spur Scale Rack, Quinault Lake Unit, by
Mr. Ben Ellwanger, Forester, Check Scaler of the Indian Bureau.
No comparison of piece count has been made since peices by species as
scaled by Mr. Winsor and the Checking Officer were identical.
No check of gross scale has been made as Mr. Winsor's figures on
gross scale are not available. #3 Net Log Scale, March 1, 1956 TABLE
OMITTED SEE ORIGINAL #4 Net Log Scale, April 11, 1956 TABLE OMITTED SEE
ORIGINAL #5 Combined Check Scales of Fields and Winsor, #1, #2, #3, and
#4 TABLE OMITTED SEE ORIGINAL
A Study of Difference in Scale
Rules and Instructions
Enclosure: 7
A study of the Scaling rules used by the Grays Harbor Log Scaling and
Grading Bureau as compared to the rules used by the Bureau of Indian
Affairs, shows several differences that, in the aggregate, totals a
substantial difference in the final net scale.
Notable among these discrepancies are the following: #1 Log Lengths
Indian Bureau Scalers scale in accordance with the terms of the
Taholah Contract which prescribes a maximum scaling length of 32 feet.
Logs over 32 feet are treated as two logs and the following graduated
increases in diameter are applied to the butt log of the two:
Logs 34 to 40 feet in length receive a 1" increase in diameter
Logs 42 to 48 feet in length receive a 2" increase in diameter
Logs 50 to 60 feet in length receive a 3" increase in diameter.
For example, a log 40 feet long, with a diameter of 28" would be
scaled as two 20 foot logs, the top log having a diameter of 38" and the
butt log having a diameter of 29".
The Grays Harbor Log Scaling Bureau, using 40 foot as the maximum
scaling length, would scale the log without any increase in taper.
Much of the cedar on the Taholah Unit is cut with 48 foot as the
maximum length with an occasional log even longer.
A chart has been prepared using logs of "on the inch" diameter of 8
to 30 inches and lengths of 34 to 40 foot, to show the difference in
logs of this group as scaled by the two afore-mentioned scaling methods.
#2 Log Diameter
The Indian Bureau Scales in accordance with that Bureau's pre-
scribed practice of scaling to the nearest inch. The Grays Harbor
Bureau's instructions for truck scaling states: "In measuring
diameters, any fraction over the inch shall be dropped; but scalers
shall be careful not to drop the inch when the inch mark is flush with
the top edge of the log."
A chart has been prepared using logs with lengths of 12 to 40 feet
and fractional diameters on the quarter inch from 8 to 32 3/4 inches, to
show the difference due to this variation in determining diameters.
Enclosure: 7 Cont. #3 Minimum Logs Scaled
The Indian Bureau, in accordance with the terms of the Taholah
Contract, scales the merchantable content of all logs removed from the
scale area.
The Grays Harbor Log Scaling Bureau "chunks" any log having a net
content of less than 50 board feet. These chunks are noted in the Scale
Certificate Summary but no scale is allowed. In some logging areas of
sapling timber, a chunk percentage of 17.07 percent has been noted.
(Ref. Encl. #5)
It would be impossible to compute the percentage of difference this
chunk rule would make in the total output of a timber sale as the
percent difference would be directly related to the size of the timber
in any area #4 Cull Logs
The Indian Bureau, in accordance with the terms of the Taholah
Contract, scales all logs removed from the sale area to the full extent
of their merchantable content.
The Grays Harbor Log Scaling Bureau culls all logs having a net
merchantable content of less than 33 1/3 percent of the gross scale
No figures are avaialable on the gross scale or the possible net
scale allowable under Indian Bureau rulse, of these cull logs, but a
summary of Scale Certificates recently received from the Grays Harbor
Log Scaling Bureau, shows 23 logs culled from a toatal of 1,370, or 1 33
percent of the total log count. (Ref. Encl. #10) #5 Odd Length
Due to the rough ground or other causes, it is sometimes impossible
for a backer in the to accurstely measure trees before sawing them into
log lengths. These odd length logs offer another point of difference in
the scaling rules of the Grays Harbor Log Scaling Bureau and the Indian
Bureau.
A log is allowed a "snipe" or over-run of 1 inch to 4 feet of log
length. Enclosure: 7 Cont.
Following standard Indina Bureau Scaling Instructions, any log having
a snipe in excess of 12 inches is scaled though being two feet longer.
The Grays Harbor Log Scaling Bureau drops the length of any log not
having a full snipe. This would result in an odd length log of 33 feet
6 inches being dropped to 32 feet by the Grays Harbor Scaling Bureau and
raised to 34 feet by the Indian Bureau.
These logs usually are numerable for short periods when a logging
operator is logging a canyon and would have a bearing on the total scale
over a period of time. #6 Right-of-Way Logs
In the larger logging operations, truck roads are often constructed
far in advance of the actual logging operations. The timber felled to
clear the right-of-way is sometimes left on the ground until the
adjoining timber if felled and logged.
In such cases, the Indian Bureau scales this timber before it has a
chance to deteriorate and the logger can remove it later when he so
desires. Any loss after falling due to sap-rot or worms is then the
loss of the operator. This is possible due to close supervision of
timber sales in the actual sale area.
These same logs, if scaled by the Grays Harbor Scaling Bureau, would
be cut in net scale to eliminate all defect including deterioration
after falling. It would be impossible for the Grays Harbor Scaling
Bureau to differentiate between right-of-way logs that should be scaled
full and windfalls that deserve a cut in scale because of defects from
natural causes.
The difference in scale from logs of this group would have a bearing
on the final scales of a timber scaleover a period of time. Enclousure:
8 Logs over 32 feet in length showing difference
between Grays Harbor Bureau and Indina Bureau
Scale due to difference in maximum log lengths
TABLE OMITTED SEE ORIGINAL
A Study of Culls Logs
(Piece Study)
Enclosure: 10
The following chart shows the number of logs culled by the Grays
Harbor Log Scaling Bureau as shown on Scale Certificates of log rafts
recently checked by Indian Bureau Check Scaler, Ben Esswanger. TABLE
OMITTED SEE ORIGINAL
The following chart shows the difference in Scale of logs with
fractional diameters from 8 inches to 32 3/4 inches, and lengths from 12
feet to 40 feet, as scaled by the Grays Harbor Log Scaling and Grading
Bureau, and the Indian Bureau, each Bureau using it's applicable scaling
instructions. TABLE OMITTED SEE ORIGINAL
HES-004-0702-0733
HES-004-0702-0733
IIJ56.1
RINGEY, C W ; W WASH AGENCY
550816
CORRESPONDENCE
SKARRA PERRY
............Portland Area Office ............Post Office Box 4097
............Portland S, Oregon ............August 16, 1955
............Air Mail Commissioner, Bureau of Indian Affairs Washington
25, D. C. ............Attn: Branch of Forestry Dear Sir: ...Under
dates of May 6, and May 9, 1955, there were submitted to your office
Stumpage Revaluation Reports on the Taholah and Boulder Creek Units,
Quinault Reservation. Subsequant to the transmittal of these report,
Mr. Perry E. Holis, Chief, Branch of Forestry, arrived at this office
for the expressed purpose of further studying the stumpage price
situation on the Grane Creek, Taholah and Boulder Creek Logging Units.
It was indicated that the approach used in our letter of July 7, 1955,
appeared to be the most logical and reasonable approach, but, in his
opinion, it could be strengthened considerably by inclusion of more
current data and the elimination of certain inconsistencies.
...Accordingly, the three units were reviewed and considered from the
same basis to that any action taken would be consistant and relative.
Under data of August 8, 1955, a supplemental report was forwarded
pertaining to the Crane Creek Unit. In that letter the reaction of
Rayonier, Incorporated, was reviewed as a result of the consultation
hold with them. This conference was held in eccordance with authority
of teletype of July 29, 1955, aigned by Mr. E. J. Utz, Assistant
Commissioner. ...A similar conference was held with the Aloha Lumber
Company who was represanted by Mr. D. A. Kurts, a director of the
corporation, as well as general manager. Mr. Kurtz indicated that an
increase in stumpage rates was expected but not of the magnitude
presented to him. He also indicated he would discuss the matter with
Mr. Paul R. Smith, president, before any protest would be made.
Following the conference, a revised supplementary report was prepared
setting forth in deteil the now stumpage to log price ratios which were
derived, taking into consideration the unusually large investment in
advance payments. ...A conference was hold with officials of the Wagar
Lumber Company, who are holders of the Boulder Creek contract. In this
case we were informed there would be no objection to the proposed
stumpage read justment provided the timber would be sealed under Soaling
Bureau standards. A modification of contract was approved March 31,
1955, providing for Soaling Bureau scaling. ...Attached are the
originals of supplemental reappraisal reports for the Taholah and
Boulder Creek Units which have been prepared subsequent to the
conferences authorized in Mr. Utz's teletype of July 29, 1955. You will
note the reports on these two units have been prepared showing
alternative stumpage to log price ratios. ...The appraisals which have
just been completed have been made on the basis of log market prices
which, of course, are based on Scaling Bureau standards. The appraised
stumpage rates with resultent recommanded ratios therefore apply to
these standards. A study recently conducted by the Forest Manager of
the Western Washington Agency indicates that there is an average 10
percent difference between scaling to the 32-feet log and the 40-feet
log. Both the Taholah and Boulder Creek contracts were written
providing for 32 feet as the maximum length of log. The Boulder Creek
contract has been modified to provide for Scaling Bureau scaling. The
Taholah Unit contract will soon be modified to previde for this same
service. In order to prevent confusion or the possibility of stopping
operations, we have made recommendations covering both situations. This
will provide for a smooth transition from Indian Bureau scaling to
Scaling Bureau Scaling.
The first portion of the appraisals provide for ratios applicable for
Scaling bureau scaling which involves 40 feet as the maximum length of
logs and has been designated as "long-log scaling". The Indian Bureau
scaling has been designated as "short-log scaling" and the ratios
applicable under these circumstances are shown in the lattor part of the
appraisal. These retios were derived by a reduction of 10 percent of
the ratios applicable to Scaling Bureau standards. ...A comparison of
the factors involved in these appraisals are set forth below: DOCUMENT
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
............Supplemental Stumpage Revaluation Report ............Taholah
Logging Unit ............Quinault Indian Reservation, Washington
...Under date of May 6, 1955, a report covering the stumpage revaluation
of the Taholah Logging Unit, Quinault Recorvation, Washington, dated
April 19, 1955, prepared by John W. Libby, Forest Manager, was
submitted. The report has been under consideration since that time.
Since the preparation of the Libby report, and its transmittal,
information has been considered which was not available at that time.
Because of repidly changing conditions in the lumber industry, it
appears desirable to prepare and submit a supplemental report for
consideration in reviewing the applicability of currently effective
stumpage to log ratios from which stumpage rates have been determined.
...We have accordingly reviewed the original report and have
recalculated stumpage values on the basis of this new information. The
results clearly indicate that stumpage ratios as set forth in section 8
of the Taholah contract no longer reflect the true ratio of stumpage
values to Log Market prices. ...In our letter of May 6, 1955, we
recommended specific changes in the ratio of Stumpage to Log Prices for
various species of timber on the Taholah Unit. ...This recomendation
was based on Mr. Libby's report of April 19, 1955, and certain
supplemental studies made by Area forestry personnel. On the basis of
further changes in market conditions and the correborative logging cost
data recently made available by the Forest Service as to average logging
costs for 1954, we have preceeded to make a now, direct appraisal of
stumpage values on the Taholah Unit. ...Operating costs, as abtained
from the Company's reports, are sat forth in Mr. Libby's report for the
past two years and are as follows: ... TABLE OMITTED SEE ORIGINAL
...The logging Cost Guide for 1955 in the Puget Sound-Grays Harbor Area,
based on 1954 experienced costs, as published by the U. S. Forest
Service are as follows: ...The above costs include mumorous small
operations that do not have the investment or responsibilities of large
integrated operations. For this reason the average cost of $17.08 for
logging operations appears to be alightly low. ...It has been
determined, through a consideration of this information, the costs
presented in the operator's statement, and experience with local
conditions, that the following breakdown representa a reasonable and
sound application of costs. Logging costs of other operators which were
considered in determining these costs may be found on page 3 of the
appendix in the Libby reports. TABLE OMITTED SEE ORIGINAL
...Ttarsportation and development costs are not directly comparable with
statistical information because of wide varlation in these items.
Transportation costs were derived by considering the length of haul from
various setting, relosding points, rail and water transportation based
on rates established by the States of Washington Public Service
Commission. Determination of transportation costs is complex and
involved because of the combined rail, water, and truck transportation
as well as the customary trading of logs with other operators which
prevails in the area. ...Since timber sales of sufficient size have not
recently been made on the Quinault Reservation to establish trends, it
will be necessary to consider sales made by other agennies. Such sales
indicate that the trend of stumpage rates has been decidedly upward.
Sales made by the Olympic National Forest during 1951 and 1954 indicate
average stumpage rates as follows for the species with which the
quinault Reservation in largely concorned: TABLE OMITTED SEE ORIGINAL
...We do not believe the statistical information of the type presented
above should be interpreted as representing actual increases in value of
stumpage because many other factors than actual price are involved. It
is, however, indicative of trend, and must be given consideration on
this basis. ...The current economic situation in the lumber industry
indicates the need of the careful and thorough review of the ratios
established in the Taholah Unit timber sale contract. There have been
some changes due to increased efficiency of operators. The increased
efficiency in lowering costs have been largely offset by wage increased
resulting in logging costs which are not apprecialy higher, and in some
canes lower than for former years. Market conditions in the Grays
Harbor-Puget Sound Area have changed to a great degree, due to saveral
fectors, the most important of which is a shortage of timber. The
supply of logs in storage is small the to the lumber strike of 1954 and
unseasonal weather since that time which curtailed operations. Heavy
demand to fulfill lumber requirements of the booming construction
industry, as well as a very high demand for paper products, have created
a highly competitive stumpage demand with consequent increase in value.
...The strong competitive situation does not appear to be properly
reflected in log market prices. Although the trend has been obvious for
some time, the results of this trend have only recently been reflected
in the log market. For this reason log market prices for June, 1955,
are used in this appraisal as more nearly reflecting current values than
any other available information. More accurate resulte could probably
to obtained through the use of a pricing system other than the present
log market which would show increases in valus more nearly in proportion
to the values of the final products. This matter is of such sarious
consequence that it will require further study before a definite
conclusion can be reached. ...Section 6 of the contract contains the
bid rates to be paid for timber cut for the period ending March 31,
1950. Section 9 established the basis for determining the calculated
average price of logs for each species based on logs sold for a definite
period of time. Section 7 sats forth the weighted average price of logs
for the Grays Harbor-Puget Sound log markets for October, November, and
December, 1948, calculated through the procedure established. ...A
percentage 10 of the contract, which provides for review of the stumpage
rates established, is quoted below: ..."THE SECRETARY OF THE INTERIOR
OR HIS DULY AUTHORIZED REPRESENTATIVE may, upon his own initiative, or
upon submission by the Purchaser of evidence satisfactory to the
Secretary or such representative, review the stumpage rates established
by the procedure set forth in Sections 6 to 9 incluaive. If, as a
result of such review, the Secretary of such representative finds that
the character of the operations, changes in marketing conditions, or
technological developments, have altered the situation to such an extent
that a change in the existing ratios between stumpage rates and the
Grays Harbor-Puget Sound log prices appears warranted, he shall give
thirty days notice to the Purchaser of his intention to establish new
percentage ratios between stumpage rates and the Grays Harbor-Puget
Sound log prices during which time the Purchaser may consult with the
Secretary or such representative; PROVIDED that the requirements of
notice in this Section shall be satisfied when the new ratios
established under its authority are made effective upon the first day of
the quarterly period which is not less than thirty days following notice
by the Secretary or such representative to the Purchaser that he intends
to proceed under the authority of this Section to change such ratios.
The ratio, however, for any species of sawtimber shall not be changed
oftener than once in any calendar year." ...The ratios established in
1950 have not been changed. It has been set forth above that market
conditions have altered to the extent that it is necessary to change the
existing ratios. Current stumpage values will be established through
direct appraisal as follows: TABLE OMITTED SEE ORIGINAL ...Log prices,
as they appear in the July, 1955, issue of The Timberman for the early
part of June, were set forth in out letter of July 7, 1955, which was
written in connection with the Crane Creek Unit. These log prices were
combined for the Grays Harbor-Puget Sound log markets and the grade
prices weighted in accordance with grade production for 1954. This
procedure produced weighted average log prices for each species and
grade which tends to represent production of the industry. These log
prices more nearly represent actual values since they are on a current
basis, while those reported by the Pacific Northwest Loggers Association
are on a quarterly basis where the current values are influenced by past
values. The quarterly reports are, of necessity, somewhat out of date
by the time they are available since, in each case, they include data
which is at last three months old. ...For the Taholah Unit the current
average log prices based on the combined Grays Harbor-Puget Sound log
market for the early part of June and in accordance with the estimated
log grade recovery for the unit are as follows: .........Log Values for
June 1955 (except WWP) ............by estimated log grade recovery TABLE
OMITTED SEE ORIGINAL ...The fair market value of the stumpage may be
obtained through direct appraisal by considering the value of the
product produced, loss cost of production and including a reasonable
margin for profit and risk plus the investment in stumpage. Market
conditions and risk appear to be of such a nature that an allowance of
12 percent for profit and risk is considered adequate. An additional
item of cost to be considered in the Taholah Unit is the sizable
investment made in advance payments. This investment is gradually
liquidated at a more or less uniform rate as timber cutting progresses
and in such a manner that the total investment would extend over half of
the time period involved. Interest payable on this investment is
included as a direct cost of the opertion but is considered separately
from all other costs on which profit and risk are calculated. This
interest payment is not considered as being eligible for participation
in profit. ... ...The average annual cut on the Taholah Unit has been
approximately 27 million board feet. It is reasonable to expect the cut
to continue at about this rate. The maximum cut for any three year
period is 100 million feet. At this rate, it will require about 20
years to cut out the 545 million feet set forth in the contract.
...Advance payments are $1,144,733 for 20 years, $1,831,573 for 17
years, and $2,289,466 for 14 years. The average annual investment in
advance payments is therefore $1,687,920. Since the advance payments
are liquidated at a relatively uniform rate throughout the cutting
period, the actual average annual investment is one-half of the above
amount or $843,960. At an interest rate of 5% the annual interest
payment is $42,198. On the basis of the average annual cut of 27
million feet the interest charge per thousand board feet is $1.56. This
charge has been allowed in the appraisal set forth below. TABLE OMITTED
SEE ORIGINAL ...The stumpage rates derived above, although not as high
as rates recently obtained by other agencies, represent, in our opinion,
sound values when all factors are given proper consideration. The
contract is not designed to take advantage of short term peaks nor to
reflect short term depressions in the market. There has been no attempt
to meet the very high bid rates received on recent sales in this
appraisal since there obviously are other considerations involved in
many of the high bids. The stumpage rates derived above are based on
sound average operations, taking into consideration local conditions,
with the reasonable expectancy of continuous operations in a
satisfactory manner. ... ...In accordance with the terms of the
contract any new ratios established must be related to the Grays
Harbor-Puget Sound weighted average log prices. The ratios presented
below are derived in this manner for log prices of the second quarter of
1955. The log prices for the period are more nearly represenative of
current conditions than for any other similar period. TABLE OMITTED SEE
ORIGINAL ...The above derived percentage ratios were obtained through
the use of log market prices which are based on certain definite
practices in determining the volume and grade of timber involved.
Customary practice is for scaling to be conducted by one of the several
Log Grading and Scaling Bureaus which presupposes the use of the scale
rule officially approved by the Bureaus as a group. Scaling bureau
rules provide that all logs 40 feet and less in length be scaled as one
log. The log values, grades, and cost features used in this appraisal
are all based on scaling bureau practices since no other reliable
information appears to be pesently available. ...Section 15 of this
contract states that timber will be scaled recognizing 32 feet as the
maximum length of a single log. It is obvious that the difference
between 32-foot and 40-foot logs would result in a greater scale for the
shorter length. When the bidder accepted the contract, his calculations
were based on th shorter length log while this appraisal is based on
information revolving around the longer log. DOCUMENT OMITTED SEE
ORIGINAL TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
HES-004-0734-0747
HES-004-0734-0747
IIJ55.2
COMM ; BIA BR OF FORESTRY
550509
CORRESPONDENCE
LIBBY, JOHN W ; ALOHA LUMBER CO
............FOREST OFFICER'S REPORT .........CONTRACT MODIFICATION -
TAHOLAH TIMBER SALE CONTRACT .........ALOHA LUMBER CORPORATION
.........CONTRACT NO. I-101-Ind-1766 ............Prepared By
.........John W. Libby, .........Forest Manager. ............I N D E X
TABLE OMITTED SEE ORIGINAL ............FOREST OFFICER'S REPORT
.........CONTRACT MODIFICATION - TAHOLAH TIMBER SALE CONTRACT
.........ALOHA LUMBER CORPORATION .........CONTRACT NO. I-101-ind-1766
INTRODUCTION, ...The Taholah Timber Sale Unit on the Quinault Indian
Reservation is under contract with the Aloha Lumber Corporation of
Aloha, Washington. The contract was approved by the Assistant Secretary
of the Interior on May 12, 1950 and provides for the sale to the
purchaser of all merchantable timber as defined, timber to be removed
and paved for prior to April 1, 1979. Merchantable timber as defined in
the contract, includes all trees 14 inches and larger at broast height
and all pieces 12 feet long and longer with a minimum diameter of 10
inches. ...Since this contract has been operating only 5 years and has
still 2 4 years to go, the large bulk of the timber remains to be
logged. It is already evident, however, that there will be considerable
volume of timber of loss than merchantable size as defined which will be
wasted unless some provision is made for its salvage. ...The Aloha
Lumber Corporation is interested in salvaging as much of this material
as is economically practicable and has requested a modification of its
contract in order that it may be-in salvage operations this summer. The
writer has discussed the matter with Aloha official and it is a agreed
that in addition to materials suitable for pulpwood production, there
are large volumes of waste cedar suitable for shake board production,
small cedar logs, and possibly some shingle bolts. ...In addition to
planning for salvage re-logging, consideration has been given to
pro-logging of certain areas to remove small timber in advance of
hi-load operations. This procedure is highly desirable in stands where
relatively small hemlook is present among trees of large size. In such
stands, "gyppo" loggers can use small tractors or other light equipment
and remove the smaller trees during the usually short summer season when
tractor logging is possible. The larger trees can then be logged by
conventional hi-load operations at any time regardless of weather and
ground conditions. Such a system could result in the harvesting of a
considerable volume of timber that might otherwise be broken and wasted.
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ...The rate
as calculated above compares with rates currently being asked and
received on most of the small shake sales on the Quinault reservation
and in the general area surrounding it. Following is a list of 13
current or recently completed shake sales on the Quinault reservation.
TABLE OMITTED SEE ORIGINAL ...It has been the practice, in the
administration of small salvage sales of shake timber, to make 100
percent estimates of the volume in board feet and to execute lump sum
sales on the basis of such estimates. Such a procedure will not
ordinarily be practicable for the more extensive salvage operations
contemplated on the Taholah unit. Accordingly the rate of $8.50 per M
feet, board measure, should be conwerted to a rate per M shake boards.
Using the accepted conversion figure of 500 boards per M board feet,
this gives a rate per M boards of $17.00. ...In order to provide a
reasonable rate for such products as shingle bolts and cedar cordwood,
it is proposed that the rate per M board feet for cedar used for such
production be considered to have the same value as shake timber.
Pending an opportunity to make a study of such production, it is
proposed to use the same conversion factor for this material as that
established for pulpwood of 500 board feet per cord. This will give a
stumpage rate for cedar "short logs" and shingle bolts of $4.00 per
cord. ...It is acknowledged that this rate is based on insufficient
information but there will be no way to occure information until a
volume of the two products in question has been produced. It is
proposed that adequate provision be made in the modification of contract
for a revision of converting factors and stumpage rates if and when
experience shows that such revision is needed. ...Implementation of the
previsions cutlined will require that our forestry personnel devote much
more time in actual supervision of operations on the Taholah unit.
Accordingly, it is proposed that provision be made for sawtimber
production to be scaled by the Grays Harbor Log Scaling and Grading
Bureau. The writer is of the opinion that such should be done in any
event, since practically all log scaling in the area, other than that
done by the Indian Service, is by the scaling bureau or, at least in
accordance with scaling bereau scaling practice. Our appraisals are
based on volumes as scaled by the scaling bureaus. Our cost comparisons
are based largely on scaling bureau scale. Conversion to scaling bureau
scaling practices will price our operations on a comparable basis with
others in the area and will simplify future cost and production studies.
SHINARY:... ...The Taholah Timber contract makes no provision for
harvesting material that is not merchantable as sawtimber or cedar
poles. There is a considerable volume or material on the contract area
that is not merchantable under the contract but which is suitable for
production of much products as pulpwood, shake boards, shingle bolts,
and small logs and possibly other products. ...Most of this material
will be wasted unless provision is made for its harvest at a price the
purchasor can afford. Harvesting of such material at an equitable price
will be benaficial to all parties to the contract. Specific benefits to
be realized are considered to be:
1. Increased revenue to the Indian owner. 2. Decreased fire
hazard, because of removal of more of
the combustible material from the ground. 3. Earlier and
better reestablishment of scedlings by
......4. Increased profit to the purchaser. He should realize a
......... profit from the harvesting of the material and his overall
......... unit costs will be reduced because of the increased volume
......... per recovered. RECOMMENDATIONS, ......It is recommended that
the Taholah Timber Contract No. I-101-Ind-1766 be modified to include
the following provisions: ......1. Pre-logging of timber which may
include trees below 14 ......... inches in diameter at breast height,
and which may be ......... produced as cordwood. Timber, so produced to
be measured ......... in cubic feet by Sorenson scale or in standard
cords of ......... 128 cubic feed and to be paid for at current rates
for saw ......... timber in accordance with following conversion
factors: ............90 Cubic Feet, Sorenson scale, equals 1 Cord
............1 Cord equals 500 Board Feet, Scribner Decimal ............C
Log Scale. ......2. Salvage re-logging of timber that is
unmerchantable under ......... terms of the existing contract to provide
for production of ......... forest products as listed below at rates
specified. ............Cedar shake boards - $ 17.00 per M Boards
............Cedar shingle bolts - $ 4.25 per cord ............Cedar
cordwood - $ 4.25 per cord ............Pulpwood (any species) $ 2.00 per
cord ............Note: Converting factors for cordwood shall
....................be set forth above for pre-logging
....................operations. ......3. Automatic stumpage
adjustments in accordance with market ......... prices with provisions
for reappraisal as needed. ......4. Scaling of new timber by an
accredited log scaling bureau, ......... with provisions for measurement
of other forest products by ......... the scaling bureau if and when
such procedure will be ......... feasible and desirable. ......A
cutting map of the Taholah Unit is appended. ............JOHN W. LIBBY,
Forest Manager ............APPENDIX ............MODIFICATION OF CONTRACT
......TAHOLAH LOGGING UNIT - QUIHAULT RESERVATION
................................Contract No. I-101-Ind-1766 ...WHEREAS
the Aloha Lumber Company, with principal place of business, Aloha,
Washington, was purchaser of the timber on the Taholah Logging Unit,
Quinault Indian Reservation, Washington, under contract approved by the
Assistant Secretary of the Interior on May 12, 1950, which contract
provides for the purchase of all merchantable timber on said unit on or
before April 1, 1979, and ...WHEREAS, the Aloha Lumber Company
subsequently did enter into an agreement of merger with the Aloha Lumber
Corporation whereby the Aloha Lumber Company was merged into the Aloha
Lumber Corporation, with said merger being approved by the Secretary of
State of the State of Washington on December 8, 1951, and ...WHEREAS the
Aloha Lumber Corporation with principal place of business, Aloha,
Washington, is now the purchaser under the aforesaid contract, and
...WHEREAS said contract provides for the sale to the purchaser of all
merchantable timber on the sale area designated for cutting, comprising
trees approximately fourteen inches and larger at a point four and
one-half feet from the ground, and ...WHEREAS the contract further
provides that the purchaser pay for, as merchantable timber, pieces
twelve feet and longer, utiliged to a diameter of ten inches in the tops
where straight and sound, and pay for all timber on the basis of a scale
recognizing 32 feet as the miximumlength of single log, and ...WHEREAS
there is an unestimated value of useable timber within the timber scale
area covered by the contract with a diameter of less than 14 inches at
breast height in standing trees subject to windthrow and trees already
windthrown or broken and in logs and pieces of less than the designated
merchantable size as defined in the contract, and ...WHEREAS it is in
the interest of the Quinault Tribe of Indians and the individual members
thereof owning the allotments within the unit and the purchaser that
such timber be acquired by the purchaser and removed from the sale area
in order, (a) to insure the greatest possible utilization of the forest
materials on the land, (b) provide thereby increased revenue to the
Indian owners thereof, (c) reduce the fire hazard thereon and (d)
provide a better seed bed for establishment of forest reproduction on
the area, and ...WHEREAS there is also in the contract area a volume of
timbet in small trees, in mixture with trees of large diameters and,
with standard logging methods, much of the volume in these small trees
would be lost by breakage and much of such breakage can be prevented by
pre-logging operations to remove such trees prior to high-lead and/or
other standard logging methods, and ...WHEREAS production from salvage
areas and from small timber is frequently most practicable in the form
of cordwood, or other units, and ...WHEREAS accomplishment of the
contemplated salvage and pre-logging operations will require that Indian
Service forest officers administering the timber scale contracts spend
considerable time in supervision of such operations and in scaling or
measuring products ether than sawtimber, and ...WHEREAS the services of
competent and impartial log scaling and grading bureaus are available
for securing the scale of logs produced in the sale area, ...NOW
THEREFORE, it is mutually agreed between the Aloha Lumber Corporation
and the Secretary of the Interior that the terms of the Contract No.
I-101-Ind-1766 are hereby modified by adding the following provisions:
1. The basis measurement for all timber produced on the sale area,
excepting cedar poles, shall continue to be the Scribner Decemial C. Log
Scale but products other than saw logs and cedar poles will be scaled or
measured by the method or methods set forth in Section 3 of this
modification in accordance with the following conversion table: ...One
cord equals 128 cubic ft. of stacked wood cut in pieces 8 ft. ...or
shorter. ...Ninety cubic feed, Sorenson scale equals one cord. ...One
cord equals 500 board feet, Scribner Decimal C. ...500 shake boards
equals one thousand board feet, Scribner ...Decimal C. 2. It is agreed
that the Indian Bureau will conduct studies to determine the accuracy of
converting factors as set forth above in Section 1 of this modification
of contract. If, as a result of these studies, it is found that such
converting factors do not accurately reflect the volumes for the
products concerned, the converting factors will be revised in accordance
with the findings of the studies made, and stumpage rates per unit of
measurment will be revised to provide a value for each product effected
that is equivalent to the value per M feet, Board Measure, that is
currently in effect for that product. 3. Products produced under this
modification will be scaled, measured or tallied in accordance with the
following procedure: ... a. Cordwood, including Pulpwood, Shingle
bolts, and other .........products, may be scaled prior to cutting,
using Sorenson's .........Cubic-feet log scale rule, when in the
judgment of the ......... Officer in Charge, it will not be practicable
for corwood, ......... when cut, to be transported to a central check
point. ......... Otherwise all corwood will be measured in cords at
check ......... points designated by the Officer in Charge. For the
......... purpose of this provision, timber cut in lengths of eight
......... feet or shorter will be considered as cordwood excpet pieces
......... that are of select or poelor grade as defined under the
......... rules of the Grays Harbor Log Scaling and Grading .........
Bureau and its affiliates. ... b. Shake Boards will be tallied and
recorded by thousands of .........at designated check points as
determined by the Officer in .........charge. 4. Salvage re-logging
operations will not be commenced in any area until logging of
merchantable timber as defined in the original contract has been
completed and pick-up scale made, after which the purchaser and the
forest officer in charge shall designate the areas which are to be
excluded from the provisions of this modification of the contract. In
the event of disagreement between these representatives of the
respective parties concerning the exclusion of such areas, the salvage
operations provided for under this provision of the modified contract
shall not be applicable. In all such excluded areas of the salvage
operations the forest officer shall not scale the salvage material, and
no obligation shall exist under this amendment to the contract for the
purchaser to take and pay for the salvage material within such excluded
areas. The said purchaser hereby agrees to purchase and remove such
timber and material as may be so designated or otherwise marked by the
forest officer in charge and to pay for such material at the rate of
$2.00 per cord for pulpwood, $4.00 per cord for Shingle bolts, and other
cedar cordwood and $17.00 per M boards for shabs boards. 5. For the
purpose of determining stumpage rates to be paid for forest products as
set forth above in Section 4 of this modification of contract for each
succeeding quarterly period hereof, it is understood and agreed that the
Bureau of Indian Affairs has calculated, for western hemlock and western
red cedar, from information published by the Pacific Northwest Loggers
Association, the average log prices in the combined Grays Harbor-Puget
Sound log markets for the months of January, February and March, 1955,
and has determined the weighted average prices of logs for that period
to be:......... ......Western red cedar $43.19 per M ft. B. M.
......Western hemlock $60.69 per M ft. B. M. 6. It is further agreed
that the stumpage rates for forest products appearing in Section 4 of
this modification of contract bear the following percentage
relationships to the weighted average log prices appearing in Section 5,
hereof: ......Pulp stumpage rate per cord to Western .........hemlock
log price per M ft. B.Z..-...4.63% ......Shingle bolts and other cedar
cordwood stumpage .........rate per cord to Western red cedar
.........log price per M ft. B. M........-...6.59% ......Shabs board
stumpage rate per M boards to Western .........red cedar log price pr M
ft. B.M.-..28.01% 7. It is further agreed that stumpage rates for
forest products shall be revised quarter-annually when saw timber
stumpage rates are adjusted by applying ratios set forth in Section 6 of
this modification of contract to weighted average log prices as
calculated in accordance with Section 9 of the original contract, with
the ratios for pulpwood to be applied to the Western hemlock log price
and the ratios for shingle bolts, other cedar cordwood and shabs boards
to be applied to the Western red cedar log price, so calculated. 8. It
is further agreed that ratios of stumpage rates for forest products to
weighted average log prices may be reviewed and revised in accordance
with the provisions of Section 10 of the original contract in the same
manner and subject to the same limitations as prescribed therein for
revising ratios of log stumpage rates. 9. It is further agreed that in
the event the purchaser does not concur with the forest officer in
charge as to re-logging of any particular out-over area, the
Superintendent of the Western Washington Indian Agency may proceed to
make salvage sales on such areas to other purchasers under authority of
Section 5 of the General Timber Sale Regulations. 10. It is further
agreed that the purchaser and the Forest Officer in Charge shall
designate areas to be pre-logged to effect the removal of small trees
prior to logging of the remainder of the stand with high-lead or other
standard logging methods. Timber remove in such pre-logging operations
may be produced in the form of cordwood from standing or down timber of
any size and will be paid for at the contract rate per M board feet
established for saw timber for each species. If two or more species are
corded together in such a way that it is not possible to determine the
scale by species, the rate of the highest price species in the load or
pile will be applied. It is further agreed that, at the request of the
purchaser entire blocks of timber may be designated for production
entirely as cordwood under the same provisions as for pre-logging
operations as set forth in this section if, in the judgment of the
Forest Officer in Charge, such procedure will result in more complete
utilization and greater returns to the owners. 11. It is further
agreed that in lieu of the scaling procedure stipulated in the General
Timber Sale Regulations, the Commissioner of Indian Affairs, hereinafter
called the Commissioner, in his discreption and for such periods as he
may elect, may require that logs cut under this contract shall be scaled
by the Grays Harbor Log Scaling and Grading Bureau, hereinafter called
the Scaling Bureau. Scaling by the Scaling Bureau shall not be
exclusive so as to prevent scaling, in the manner stipulated in
Section/3 of this modification of contract of material that is not
delivered to the point of bureau scaling. Should the Commissioner
intend to change from one scaling procedure to the other, he shall
notify the Purchaser in writing not less than thirty days prior to the
effective date of such change. The following general conditions shall
apply to bureau scaling. The purchaser shall furnish the Superintendent
with a list of State registered log brands which shall be reserved for
exclusive use on logs cut under this contract during the entire period
the contract is in force, including all extensions thereof, and for six
months after its termination. Sufficient brands shall be reserved to
provide a separate brand for every allotment from which logs may be
taken simultaneously during any period of operation. ...Upon
notification by the Commissioner that the services of the Sealing Bureau
are required, the Purchases shall enter into an appropriate agreement
with said Bureau for the performance of all necessary scaling and
reporting services, and shall promptly submit to the Commissioner
certified copies of such agreement in triplicate. ...The agreement
shall provide for the prompt scaling of all material upon delivery to
the place of scaling. It shall also provide for prompt submission to
the Superintendent of certified copies of each and every scale report,
showing the species, volume, grade, and brand of each log scaled; with
such safeguards being included in the agreement as the Commissioner may
deem necessary to insure an accurate accounting to the Superintendent of
all logs that are presented to the Scaling Bureau for scaling. ...The
Scaling Bureau's rules respecting scaling, grading and merchantability
shall apply. ...The purchaser shall pay the Scaling Bureau for all
services rendered by it under the agreement. ...No logs shall be moved
from the place of scaling until they have been scaled. Customary
methods employed by the Scaling Bureau for indicating completion of the
scaling shall be accepted in lieu of the numbering and stamping of logs
stipulated in Section 22 of the General Timber Sale Regulations. 12.
It is further agreed that because of basic differences in scaling
practices of the Scaling Bureau and the Indian Service, adoption of
scaling bureau scaling practices may result in a difference in volume of
saw timber scaled. Therefore, it is agreed that the Indian Service will
conduct a study to determine whether a difference in volume will result
from adoption of scaling bureau practices and if it is found that an
appreciable difference will result, the percentage relationships that
the stumpage rates for saw timber bear to weighted average log prices,
as set forth in Section 8 of the original contract, shall be revised to
compensate for such difference in volume before Scaling Bureau Services
will be required.... 13. It is further agreed that if rates are revised
as provided in Section 8 of this modification of contract the revised
ratios shall remain in effect after Bureau Scale is adopted except as
otherwise provided in Section 10 of the original contract, and all
sawtimber cut under this contract after adoption of said Bureau Scale
shall be scaled in accordance with Scaling Bureau practices, wheter
scaled by the Scaling Bureau or by the Indian Service. 14. It is
mutually understood and agreed between the parties hereto, except as
herin expressly modified and extended, the above original contract shall
be in full force and effect and binding upon the parties thereto as
though no modification of the contract had been made. ...... DOCUMENT
OMITTED SEE ORIGINAL ............Definitions of Terms as Used in This
............Report and Modification of Contract. ...1. "Re-logging" or
"Salvage Re-logging" ......These terms are used synonomously.
Re-logging is a clean-up ......operation following original logging
operations to salvage ......residual material that is merchantable in
some form of forest ......product but which was not suitable for
sawtimber as defined in ......the original contract. ...2.
"Pre-logging" - is the term applied to the harvesting of ......specified
trees or classes of timber from a cutting block prior ......to regular
logging operations. ...3. "Gyppo" loggers are sub-contractors engaged
by the purchaser ......to produce logs or forest products from specified
areas of the ......sale area. ...4. "Hi-lead" is the type of logging
commonly used for harvesting ......timber in west coast logging
operations. It consists of ......skidding logs to a central landing by
means of cable, threaded ......through a block that is suspended near
the top of a spar tree. ......The spar tree is supported by guy lines.
As used in this ......report, hi-lead may also include skyline or
skidder logging ......which also use a "hi-lead" at the landing. ...5.
"Short Logs" is a term applied to eight-foot pieces produced ......as
cordwood. ...6. "Pick-up Scale" is a scale, with Scribner Decimal C
log ......rule, of material left on the ground after original logging
......operations have been completed. This scale is made by Bureau
......of Indian Affairs forestry personnel and includes all material
......left that, in the forest officer's judgment, should have been
......logged as sawtimber in accodance with the terms of the contract.
...7. "Pulpwood", as used in this report, is a term applied to
......material produced in the form of cordwood that is intended for
......manufacture into pulp. The primary species involved is
......Western hemlock, but any species may be included. ...8. "Two by
Four" Sawmill - is a small mill, which outs rough ......lumber from
small logs. Much of its output is 2" x 4" ......dimension lumber.
...9. "Shingle Bolts" are split blocks of cedar, but 4 feet in
......length, which are intended for manufacture into sawed shingles.
......Practically, shingle bolts are four-foot, cedar cordwood.
10. "Shake Boards" are split cedar boards, 2" thick, 6" wide
......and 24" long. Width of boards may vary but 6 inches is the
......accepted standard.
11. "Shakes" are manufactured from shake boards by rip-sawing
......them diagonally. Two shakes are cut from each shakeboard and
......each shake is 1/4 inch thick at its tip edge and 1 3/4 inches
......thick at its base, with one smooth surface and one rough.
.........SUPPLEMENTAL INFORMATION - SHAKE BOARD VALUES ...The following
is a copy of a letter from District Ranger Jack Heintzelman of the
Olympic National Forest which was in response to our inquiry. The
information supplied therein is as of last October and conditions
affecting the cedar shake market have changed to some extent since that
date. There has been a strong demand for shake timber for the past
year. Mr. Heintzelman informed the writed today that the average rate
being received for shake boards on the Quinault working circle of the
Olympic National Forest is approximately 2 cents per board or $20.00 per
M boards. This compares with our appraised rate of $17.00.
HES-004-0748-0768
HES-004-0748-0768
IIJ55.2
551021
CORRESPONDENCE
HEINTZELMAN, JACK ; W WASH AGENCY
Quinault, Washington October 21, 1955 Office of Indian Affairs Western
Washington Agency Hoquiam Sub Station Hoquiam, Washington ATTENTION:
Mr. John W. Libby Dear Mr. Libby: ...Reference is made to your letter
of October 14 to Mr. Bruce, Forest Supervisor, Olympic National Forest.
...Since conditions on the Quinault District most closely parallel those
of the Quinault Indian Reservation, he has asked us to answer your
letter. Our best experienced costs and conversions as per your request
follow: (They were prepared by Bob Anderson). ...1. #65. - $73.
Average production cost / M shake boards delivered to Aberdeen. ...2.
500 shake boards / M.B.M. .........This conversion seems satisfactory
when proper deductions .........from gross to net scale have been made.
...3. 400-500 shake boards / cord. .........This is an approximation
as we do not have any experienced .........figures to rely upon since
the bolts are used in making .........tapers. Depending upon the type
of material a cord of bolts .........will produce from 7 to 11 square of
tapered shakes. ...4. 1.0 to 1.5 cords / M.B.M. .........This again
is an estimate as we do not have reliable .........experience. ...5.
Our appraisal procedure for shake boards is as follows: TABLE OMITTED
SEE ORIGINAL ............Very truly yours, ............a/a Jack
Heintzelman ............JACK HEINTZELMAN ............District Ranger
COPY ...... MAP OMITTED SEE ORIGINAL
HES-004-0769-0770
HES-004-0769-0770
IIJ55.2
LIBBY, JOHN W
550419
CORRESPONDENCE
LIBBY, JOHN
............STUMPAGE REVALUATION REPORT COVERING THE ............TAHOLAH
LOGGING UNIT ............QUINAULT INDIAN RESERVATION, WASHINGTON
............APRIL 19, 1955 ............B ............JOHN W. LIBBY
............FOREST MANAGER ............INDEX TABLE OMITTED SEE ORIGINAL
............APPENDIX TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL or his duly authorized representative. If, as a result of such
study, it is found that a revision of the ratios between stumpage ratios
and log prices appears warranted, new ratios shall be established. In
accordance with this provision, the writer has been directed to
reappraise the stumpage values of timber on the Taholah unit in order to
determind another such ratios should be revised. ... ...The following
appraisal is baned on the assumption that log grade percentages for the
various species in the unit are as not forth the "Forest Crango Creek
Loggins Units, Quinault Indian Reservation, Washington, propared by Mr.
Garthen H. Pairie, Forester and Mr. Barry Skaron, Forest Manager on
November 16, 1948.... ...In this following calculations, these grade
percentages are applied to log market prices as reported by the Pacific
Northmont Logger's Association for the Calendar Year, 1954 to determind
log market value for the timber on the Taholah Unit. ...Consideration
was given to the use of the latest quarter-year price reports to make
this determination, but it was felt that the yarely average would give a
fairer result. TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL ...Using average log prices as determined
abovd with the estimated logging cost of $30.00 per M and the 13 percent
allowance for profit and risk, stumpage values are calcualted by the
following formula: TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL ............Stumpage Volume for Taholah Unit Timber based on
.........current Log Market Prices on calculated from reports
.........of the pecific Northwest Largers Association for the
.........1st Quarter of 1965 for the Puget Sound-Grays Harbor
.........Log Markets. (Stipulated grade percentages applied
.........are those that were established for the two markets at the
.........time the unit was origionally afford for sale in 1940.) TABLE
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL .........APPENDIX ............CURRENT STUMPAGE RATES - SEVEN
CURRENT .........TIMBER SALES ON QUINAULT & SOLEDUCK .........WORKING
CIRCLES, OLYMPIC NATIONAL FOREST TABLE OMITTED SEE ORIGINAL
............COMPARATIVE LOGGING COSTS: ...First comparison of logging
costs, as reported by operators, is not possible because of different
systems of keeping cost accounts. Other things being aqual, costs up to
and including loading of logs, and not including development costs, are
comparable. Transportation costs very with length of haul, type of
road, steepness or grade and whether or not logs are transported over
public highways or private roads. In the latter case, much larger loads
may be transported. They will also very as between truck haul, rail
haul or water transportation or some combination of methods.
...Development costs vary with the type of terrain, drainage and
specifications to which roads are built. They also vary in accordance
with the volume per acre to be logged and with the mileage of road
required to be built. ...The costs set forth in the following table are
from reports of contractors operating on Indian land in Western
Washington and on the Olympic National Forest. Since cost statements
submitted by operators are confidential in nature, the identify of the
cost figures listed is not shown. ............LOGGING COSTS - SUNDAY
OPERATIONS on .........Indian Service Sales in Western Washington
.........and on the Olympic National Forest. TABLE OMITTED SEE ORIGINAL
............CEDAR POLE PRICES TABLE OMITTED SEE ORIGINAL
.........Stumpage Rates for State of Washington .........Timber - State
Sustained Yield Unit No. 1 .........(Logging by alternate forties)
.........Average rates being received for State timber as ......reported
by the State Manager of Sustained Yield Unit ......No. 1 are
approximately as follows: TABLE OMITTED SEE ORIGINAL ............Sales
Offered by Washington State .........Office of the Commissioner of
Public Lands .........as Advertised in .........Public Auction Sale
Bulleton No. 252 .........- To be Sold April 5, 1955 - TABLE OMITTED SEE
ORIGINAL MAP OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
...Stumpage readjustments will be made at the end of each quarter annual
period beginning witl April 1, 1950. Logging:... ......Transfer logging
will be employed where ground conditions ...permit. The unit will be
clearcut by selected blocks. ...Purchaser will be required to submit
his plan to development ...and operation for review and approval by the
Forest Officer ...in charge. TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
............TIMBER VOLUME BY SPECIES TABLE OMITTED SEE ORIGINAL MAP
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL .........APPROVED
ADVERTISING AND CONTRACTUAL DATA AND .........INFORMATION FOR THE
TAHOLAH, QUCETS, AND CRANE CREEK ............TIMBER SALES
............QUINAIELT INDIAN RESERVATION, WASHINGTON TABLE OMITTED SEE
ORIGINAL
HES-004-0771-0799
HES-004-0771-0799
IIJ55.1
470215
CORRESPONDENCE
; QUINAULT INDIAN RE
............APPRAISAL OF STUMPAGE VALUES ............TAHOLAH LOGGIN UNIT
............QUINAIELT INDIAN RESERVATION ............WASHINGTON
............AS OF FEBRUARY 15, 1947 1. EXPLANATORY STATEMENT ...The
current value of the stumpage on the Taholah Logging Unit has been
determined in general accordance with the detailed appraisal procedure
outlined and recommended at the joint conference of regional and Chicago
office forestry representatives of the Indian Service, held at Chicago
in January of 1944. Estimates of cost have been determined from field
examinations and careful analysis of the operating records of similar
logging operations in the immediate locality, and are believed to
accurately reflect the expense of developing the timber on the unit
under conditions as of the immediate present. Value of the logs that
will be developed from the timber on the unit has been ascertained from
field determinations of the grade run of the several species represented
set against the fourth quarter 1946 value of these log grades on the
Grays Harbor log market. The net margin for stumpage, after deducting
costs plus a reasonable margin for profit and risk from the indicated
value of the log product, is substantially greater than the highest
average price ever received heretofore from comparable sales on the
Quinault Indian Reservation. The appraised rates are admittedly high
when considered from the standpoint of mills located in Hoquiam or
Aberdeen, but we are convinced that they are no more than should be
required of prospective purchasers under the proposed conditions of sale
and the present value of logs in this market area. ...Attention is
directed to the fact that this appraisal is based upon the fourth
quarter 1946 average log values in the Grays Harbor log market as
reported by the Pacific Northwest Loggers' Association in its "Composite
Sales Analysis Grays Harbor Logging Companies, October, November, and
December 1946." The original appraisal made and reported as of August
31, 1946, was based on the Office of Price Administrations' maximum log
price schedules in effect at that time, which reflected generally lower
levels than were in effect during the fourth quarter. Since log prices
generally have improved in the Grays Harbor Region during the last
quarter of 1946, largely by reason of the lifting of ceiling price
restrictions, and costs have not increased accordingly during the same
period, the indicated new stumpage values are higher on most species
than they were earlier. Costs have apparently increased only slightly
during the interval between August 1946 and the present, our comparative
analyses indicating that such increases as have occurred were very
largely compensated for. By reason of this fact we are using no change
whatever appearing to be warranted at this particular time. There is no
doubt, however, but that logging costs will be increased substantially
within the next three months for several other West Coast areas that
have already increased wage rates 15 cents per hour and the Grays Harbor
Region will unquestionably follow suit when its present wage agruments
expire. DOCUMENT OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE
OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
HES-004-0800-0807
HES-004-0800-0807
IIJ47.1
460831
CORRESPONDENCE
PATRIE, CARTHON R ; QUINAULT INDIAN RE MCKEEVER, L C ; QUINAULT INDIAN
RE
............FOREST OFFICER'S REPORT ............COVERING THE PROPOSED
SALE OF TIMBER ............ON THE ............TAHOLAH LOGGING UNIT
............QUINAIELT INDIAN RESERVATION ............WASHINGTON
............August 31, 1946 ............BY ............CARTHON R. PATRIE
............Forester ............L. C. McKeever ............Senior
Forest Ranger .........TABLE OF CONTENTS TABLE OMITTED SEE ORIGINAL
............I. INTRODUCTION ...The development of the remaining unsold
timber on the Quinaielt Reservation, covering well over half the land
area and aggregating some two billion board feet of currently
merchantable timber, has been under serious consideration and study for
a number of years for it presented an involved and extremely difficult
problem. On the one hand the area was almost solidly allotted to
individual Indian ownership and the allottees or their numberous heirs
were extremely interested in receiving some substantial return from
their property which had been held by them in some cases for many years
without tangible income. On the other hand the Indian Service was bound
both by its trusteeship and by specific statute to administer the forest
property for the maximum benefit of future as well as present Indian
owners, and in strict accordance with the principles of sustained yield.
The obvious solution of the diversified Indian ownership problem was
the immediate sale of the entire unsold block in such way as would
assure an immediate disbursement of advance payments, and the
liquidation of the blanace as rapidly as possible by an aggressive
cutting program. Plainly, however, such a solution would be directly
contrary to both policy and statute for it would destroy any possibility
of sustained yield, and all of the benefits that might be expected
thereby in steady Indian employment and industrial and community
stability. ...Various possibilities have been explored in the hope they
might provide an answer to the Indian owners' desires for some immediate
cash return on their timber but none have thus far been found which net
the general approval of the allottees. Chief among these was the
proposal for the formation of a corporation of allottees, who would
share in the annual receipts from cutting in proportion to their
sharehold in the corporation, such sharehold being based upon the
cruised value of the allotments. Unfortunately, the allottees who owned
allotments within the more accessible areas were unwilling to forego
their chances of immediate returns in exchange for a much smaller annual
income which would be distributed over a period of forty years or more.
Thus far, the only proposal which seems to have any chance of meeting
with general approval, is the floating of a federal long-term loan by
the tribe for use in making advances to those older and needier owners
whose allotments will not be cut for many years. Analysis of the
allottee ownership is being made at the present time for the purpose of
determining the possible requirements and the amount of the loan needed
to cover them. ...Development of a forestry program has proved of
itself to be an intricate and extremely involved problem, even when
divorced from the divided ownership situation, and the matter of
distribution of timber receipts. There was first of all the question of
a tribal industrial plant to be considered, for the undertaking of such
a venture would, depending upon its size, character, and location, exert
a decidedly important influence on future sales policy. Secondly, there
was the question to be answered as to the most desirable products to be
aimed for in silvical management, whether lumber, pulp, or other raw
material, for these would determine both the rotation period and
allowable annual cutting quotas. Third, there was the questions of
growth capacity of the various forest types, and of the cutting
practices which would best serve to promote complete restocking and the
full realization of the area's growth possibilities under sustained
yield. All these, and the many other questions which normally have to
be covered in the preparation of a detailed forest management required
an answer before a sound program of forest development could be
prepared. ...Work leading to the preparation of a detailed management
plan for the Quinaielt Reservation forest has been under way for several
years and much valuable experience and information has been obtained
which will contribute very materially to it. A considerable amount of
experimental work has been done over the past decade with the tree
selection method of cutting in the various types of stands, and the
results of the several types of area selection method have been
carefully studied. A valuable fund of information has also been
accumulated as to the capabilities and limitations of the different
types of logging equipment, so that sound long range cutting programs
can be formulated which give due regard to both forestry and logging
requirements. Preliminary determinations of the growth possibilities of
the several species on different sites have been made, and a broad
classification of sites has been accomplished so that we have an
excellent idea as to the ultimate growth capacity of the area under
intensive management. Also, during the past few years a reproduction
survey has been initiated to determine the degree of natural stocking on
the cut-over lands, the composition by species of this stocking, and the
average age thereof. ...There is still a great deal of work to be done,
including the completion of the reproduction stocking survey on cut-over
lands, preparation of stand and stock tables, intensive delineation of
sites and types, and some further growth investigations, before we can
proceed with the formulation of a detailed management plan. This has
proved to be a tremendous task in this extensive and extremely diverse
type of West Coast forest, and there has never been either funds nor
personnel available to make a continuous and aggressive attack on the
project. Such surveys and technical studies as have been made have been
conducted by the regular agency forestry staff with the occasional
assistance of regional forest officers, and have consisted of sporadic
assaults on the problem when times could be spared from the regular
routine duties of handling timber sales and other administrative tasks.
It will, therefore, not be possible to consider the following proposal
in the light of an already prepared management plan, although we fully
recognize its desirability and the value it would have in this
connection. In this case, however, it is not believed that the lack of
a detailed written plan will prove of serious consequence for much has
been accomplished and we have already a sufficient background of facts
to confidently proceed with definite recommendations for the future
development of this reservation forest. The proposal for the sale of
the Taholah Logging Unit is the logical result of these studies and
conforms with what we believe to be the soundest and most generally
satisfactory long-range program of development. ...There has been no
lack of a market for the remaining timber on the Quinaielt Reservation
within the past two decades, and it is safe to say that the entire
volume, large as it is, could have been sold several times over if it
had been offered in response to the many requests. The area is a
natural part of the Grays Harbor economic area, and as such is tributary
to an old and highly developed wood-using industry, with lumber mills,
pulp and paper plants, cedar lumber and shingle mills, plywood plants,
box factories, and miscellaneous other wood users represented. In
relation to the available timber supplies, this extensive industry is
badly oerbuilt, and there has consequently been a consistent interest in
reservation stumpage even during the depression when the industry was
having a hard time to keep its head above water. The demand has taken
many forms, both for large parcels and for small, and has ranged all the
way from requests for small lots of down cedar for cutting into shingle
bolts, to the sale of the entire unsold block of two billion or more
feet in a single transaction. During the depression years the demand
was chiefly for small shingle mill or minor truck logging shows, but the
demand has since expanded and from the beginning of the war has been
very keen with requests being received for both small and large blocks
to be offered for sale. A number of sales have in fact been made, cheif
among which were the Milwaukee Trail Unit (a semi-salvage operation in
the 1921 blow-down area), the selective spruce cutting on the Harlow
allotments, and the N. P. Trail Unit to meet the urgent war demand for
airplane spruce. All of these, however, were comparatively small and
had very little bearing on the overall reservation program although they
did provide an excellent opportunity for experimental small scale
studies of various methods of cutting in the different types of forest,
and under a diversity of age class and specie composition. ...Despite
the keen and sometimes urgent interest of both Indian owners and
prospective purchasers alike, and the steadily improving market value of
the reservation stumpage, Indian Services resistance to the making of
any large, long-term sales has been consistently firm. It was felt that
may questions of policy and of fact had to be settled for it was
recognized that a large sale when once made would exert a considerable
and perhaps unfortunate influence upon the long-range program unless
policy had been properly crystallized in advance. The time has now
arrived, however, when we cannot much longer delay the offering of a
substantial block without chancing the loss of an extremely favorable
financial opportunity, and also of a valuable present asset in the
Quinaielt Indian economy. Relations of operating costs to the market
prices of logs and lumber have never been so favorable in this area as
they are at present for the return of minimum rates on stumpage offered
for sale, since log prices as the result of recent ceiling actions are
exceptionally high and costs have not yet reached their usual
relationship with them. Any stumpage sold now under the approved form
of long-term Indian Service contract will learn an unusually high ratio
with both prices and costs, and this ratio will be preserved for a
considerable period if a fairly large block is sold. This opportunity
will not last long because supply and materiafl costs are already
rising, and the West Coast woods and sawmill workers' unions are now
crystallizing their plans for further extensive wage increases. ...Of
even greater importance when the ultimate welfare of the Quinaielt
Indians is considered, is the loss of the industrial plant and
surrounding community of the Aloha Lumber Company if a substantial block
of reservation timber is not offered for sale in the near future. This
plant has been in operation at Aloha, Washington, just south the
reeservation for approximately forty years, and has during much of this
time not only provided a profitable and continuous market for
reservation stumpage, but has also furnished employment and an important
means of livelihood to many Quinaielt Indians. It is primarily a cedar
operation, manufacturing cedar lumber and shingles, and has a normal
capacity of approximately fifty million eet of logs annually, the cedar
of which is manufactured locally, and most of the remainder sold as logs
to neighboring sawmills and pulp plants. For many years it has operated
almost exclusively on the reservation, and is at present under contract
for the purchase of timber from four separate tracts, the Hall, Mounts,
and M. P. Trail Units, and the Charley Chenois Allotment. Logging on
the latter two sales has already been completed, and it is DOCUMENT
OMITTED SEE ORIGINAL ...Opportunities for industrial development on the
Quinaielt Reservation are comparatively few, for there is relatively
little good farm or pasture land, the known mineral resources are of
little apparent value, and the salmon fishing does not hold out much
hope for substantially greater expansion. By reason of this fact, the
forest occupies a position of considerable and far-reaching importance
in the long-range reservation program, for it is the one natural
resource of sufficient extent to permit the successful operation of a
diversified large scale manufacturing plant on a permanent basis. This
operation, because of the present and anticipated conditions would
probably be two-phased, the first being a cedar lumber and shingle mill
with an expection life of forty to fifty years to liquidate the
remaining virgin cedar stands, and the second a combination lumber-pulp
mill to operate in the second growth stands during the succeeding
rotations. A two-step operation of this sort should be successful
whether conducted under white or Indian tribal ownership, but would be
expected to bring the most benefits to the tribe under the latter
because it would be managed to that end. Certainly this objective
should be strived for and every precaustion taken that no sales be made
or other action allowed which would in any waj jeopardize the
acquisition and successful operation of a manufacturing plant at any
time the tribe desires to undertake it. ...There is, of course, no
assurance that the Quinaielt Indians will ever accept the responsibility
of operating their own manufacturing plant irrespective of its
desirability, for the decision will depend in large measure upon the
wishes of the individual allotment owners who make up a considerable
segment of the tribe. It can be hoped that they will accept it at some
not too distant date for this is the only way in which they can develop
all of the latent possibilities inherent in their timber in the form of
employment, profits from operations, and a permanent industrial
community of their own. Whether they undertake the venture in the next
few years is not perhaps a matter of the most concern at present,
provided the way is left open for their entry into the business later,
for some time will be required in any event to work out the many details
and settle the issues involved. Until this decision is made, it is of
the most immediate importance that the Quinaielt Indians get as much
benefit as possible out of the sale of their timber to white operators,
and this can only be done by selling it in such a way that they can be
assured of its manufacture on or within a short distance of the
reservation. They cannot afford to sell it to loggers or outside mill
owners and lose at least half the possibilities for employment, or the
advantage of having a manufacturing industry and community in their
immediate locality. ...The sale of the Taholah Logging Unit as proposed
in this report has been set up and designed to meet the requirements of
the present situtation, and it is confidently believed that it will do
so providing the sale can be made in the near future. First, it will
assure to the Indian allotment owners a continued flow of income in the
form of stumpage receipts, to the full extent permitted by sustained
yield limitations. Second, it will assure a maximum return per thousand
feet sold because, as we have pointed out heretofore, the relationship
of stumpage values to operating costs and markets is particularly
favorable at the present time. Third, by limiting the advertisment, it
will assure either a continuance of the existing manufacturing industry
or the establishement of a new one within the reservation sphere.
Fourth, since the sale area has been laid out to include stands in which
cedar is predocinant, it will encourage the maintenance or development
of a cedar manufacturing industry. Fifth, the total volume involved in
the sale is sufficiently large to warrant the successful purchaser in
developing a modern, efficient, and diversififed manufacturing plant.
Sixth, it will pave the way, without injuring future prospects, for the
tribe to take over an established going manufacturing concern and
community whenever they are ready to do so. In our opinion, the sale of
the Taholah Logging Unit is the first logical step in the development of
the remaining timber on the Quinaielt Reservation, and the one best
calculated to set in motion a sound long-range program. The step, if
taken, will open the way to a steady flow of income from stumpage
receipts, and to the establishment of a stable local cedar manufacturing
industry with all the additional benefits this entails. ...As we have
previously indicated, interest in the unsold reservation stands lying
north of the Quinaielt River has been active for years and numerous
inquiries and requests for purchase have been made. That the response
will be to the offering of the Taholah Unit is, of course, impossible to
forecast, but we may assure that it will be keen for the opportunities
for a large scale cedar manufacturing business are no longer abundant
and the cedar business gives every indication of an excellent future.
The aloha Lumber Company has been interested for several years in
obtaining a large block of reservation timber in anticipation of the
completion of its existing cutting contracts, and it still is although
its original applications were substantially in excess of allowable
cutting budgets. Its owners and managers have, following explanation of
Indian Service policies and requirements, indicated their entire
willingness to fit their operations to the lesser volumes provided in
the Taholah Unit, and to cooperate fully with contemplated forestry
practices affecting the order and nature of cutting. They have also
informally advised that if their concern proves to be the successful
bidder, they will undertake a major improvement program to modernize
their plant and increase the efficiency of operations. The owners have
already made a formal written request to Superintendent George P.
LaVatta for an opportunity to purchase the Taholah Logging Unit and we
can confidently expect that they will submit an offer when the offering
is advertised. Aids from other operators can also be anticipated for
conditions have never been so favorable, in our recollection, as they
are at present for making an open market sale in this area. ...We have
outlined in the foregoing introduction some of the problems connected
with the development of the Quinaielt Indian forest, and the
circumstances and considerations which have led to our conclusion that
the Taholah Logging Unit should be offered at this time. In further
support of that conclusion we are submitting the following report which
presents in greater detail the facts upon which our determination was
based, a detailed appraisal of the stumpage involved, and proposed forms
of advertisement and timber contract. The sale is respectfully
recommended for advertisement in accordance with the rates determined by
the appraisal, and the terms incorporated in the advertisement and
contract, with every confidence that if it is to made, it will result in
a maximum of benefits to the Quinaielt Indians, both individually and
collectively. DOCUMENT OMITTED SEE ORIGINAL ............II. DESCRIPTION
1. Location and Area. ...The Taholah Logging Unit is located in the
extreme west central part of the Quinaielt Reservation, within the
obtuse angle that is made by the confluence of the Quinaielt River with
the shores of the Pacific Ocean. On the south it is bounded by the
Quinaielt River for most of its length, on the west by the Pacific
Ocean, on the north by the township line between townships 22 and 23
North, and on the east through the greater part by the range line
between ranges 11 and 12 West. The extreme southeastern corner of the
unit is bounded by the northern and western boundaries of the W. P.
Trail Unit and the Charley Chenois Allotment sales, already under
contract to the Aloha Lumber Company. The unit lies just across the
river from the Indian village of Taholah, and approximately six and
one-half miles north by air-line distance from the southern boundary of
the reservation. Its southern edge is approximately seven miles north
of the railhead at Hoelips, and over thirty miles air-line distance
northwest of Hoquiam on Grays Harbor. ...The unit is roughly
rectangular in outline and fairly regular, except along its southern
edge where it follows the winding contours of the Quinaielt River and
the right-angled breaks of the M. P. Trail Unit boundary. It is
approximately nine miles long from east to west, and averages between
five and six miles in depth from north to south with a maximum depth of
nearly seven miles at one point. Within its bounds is embraced an area
of 31,468.19 acres of timber lands, of which nine separate tracts
representing forcer allotments are now in private ownership under
patent-in-fee deed. Of the 30,799.59 acres still in Indian ownership
and trust status practically the entire area is allotted, on 206.75
acres having been reserved for tribal use. A total of 419 separate
allotments are included in the sale area and all but nine of these are
timbered and will require the execution of individual allotment
contracts. Most of the allotments are eighty acres in extent, but a few
forties and lots are included to bring the average dow to approximately
seventy-three acres per individual trast. All of these areas are
accessible, and so far as known, the allotment owners are all extremely
anxious to sell so that none of the Indian owned area is likely to be
excluded from the sale. 2. Topography and Drainage. ...The total
range in elevation on the Taholah Unit is not great and amounts to only
about seven hundred feet between its lowest point at sea level to the
highest knoll in the east central portion of the area. Within these
short limits, however, the variation is extreme for without doubt it is
one of if not the most broken of any of the sale units on the
reservation. There is not a single square mile within the area that is
not traversed for some distance by at least one stream and some sections
are broken by a dozen or more. Each of these streams represents some
break in ther terrain and a majority of these are sharp, being marked by
drops of one hundred to three hundred feet in the space of five to ten
chains. A number of these little stream valleys have slopes of fifty
per cent or more and a few go to extremes of 75 per cent in the short
distance between stream bottom and narrow ridge top. This extremely
broken DOCUMENT OMITTED SEE ORIGINAL generally distributed and is of
good average quality, running seven per cent No. 1's, fifty-three per
cent No. 2's, and the balance No. 3's. Spruce is found third in order
of abundance, but is less generally distributed, occuring principally on
the bottoms along the Quinaielt River and in the beach strip. It is of
excellent quality on the whole and is expected to run ten per cent
Selects, fifteen per cent No. 1's, thirty-seven per cent No. 2's, and
the balance No. 3's. Amabilis fir runs a close fourth to spruce in
total volume but has a somewhat broader distribution over the sale area.
It is of somewhat better quality than the hemlock and will run about
fifteen per cent No. 1's and fifty per cent No. 2 logs. White pine and
Douglas firs, the two retaining species, have only a limited
distribution and occur in only very small amounts, the total volume
being only slightly over one per cent of the total in the first species
and about half of one per cent of the total in the first species and
about half of one per cent in the other. The white pine is of good
quality, about on a par with the reservation stands generally, while the
Douglas fir though very limited in extent is of high quality, averaging
fourteen per cent pealers and fifteen per cent No. 1 logs. The stand of
all species combined will average about eighteen thousand feet per acre
on the area as a whole, through it should run considerably above this in
the heavier and better quality stands. ...The total stand on the
Taholah Unit, according to cruise estimates made over twenty-five years
ago, is 549,529,000 board feet of merchantable sawlog, distributed to
the various species in the following volumes and proportions: TABLE
OMITTED SEE ORIGINAL ...While there are occasional trees and isolated
patches in the younger age classes, as might be expected in any West
Coast stand of similar extent, the stand can be classed generally as
even-aged and mature-overmature. Defect is quite heavy, particularly in
the swamp areas and poorer sites, and the growth rate has slowed down to
a point where there is little, if any, net gain even on the best sites.
Air and ground surveys have both shown extensive areas within the unit
in which the cedar is largely dead or spike-topped, and some areas in
which the hemlock is noticeably declining also. There is no doubt that
the stand is ripe for harvesting for no gains in either quality or
volume increment can be secured unitl the present over-mature stand has
been removed. ...Three general forest types are represented on the unit
and the site class varies to some extent within each, but the average
for the area is good and probably close to good Site III for the stand
is a whole. The cedar-hemlock type is the mos important for it occupies
approximately seventy per cent DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL ...Our study of the topography indicates that there
will probably be no less than seven main line roads required within the
Unit to tap the timber in the several drainages, and that three of these
will be from ten to fifteen miles in length. One of these, edsignated
as the O'Took Prairie Road, has been projected by the Roads Division of
the Indian Services under the Access Road Program of the National
Housing Administration, and, if approved, will involve the expenditure
of $210,000 in the construction of some 12 miles of main road from the
south through the extreme eastern tier of sections and thence west
through the high central portion of the Unit. This will be of
considerable help in expediting the development of the unit during the
present housing shortage, and should enable the purchaser to get into
production on a full-scale basis considerably sooner. It will, however,
be only a relatively small share of the total expenditures that will be
required for mainline roads as a considerably greater milage will still
be required to tap the other portions of the Unit. It is estimated that
no less than 55 miles of high-class main road will be required to
develop the Unit, and that the cost of constructing these, building the
bridges, and putting in the many subsidiary spurs will be not less than
a million dollars. Even after allowing for the expenditurre of $210,00
of access road funds, the purchaser will still be required to expend
approximately four times this amount of his own funds so that
development of the unit will be relatively costly. ...While the Unit
can be successfully logged either by logging railroad or by truck road
and logging truck, we believe the latter method would be most economical
and more likely to be adopted in view of present trends in the region.
There is little doubt that a railroad operation on this unit would be an
extremely costly one for the topography is so broken that adequate
transportation coverage within allowable grade limitations would be very
difficult to obtain. We have, therefore, ansured in making our study of
logging conditions on the Unit that the Unit would be logged exclusively
by motor truck and based our logging costs on this method of operation.
We have also, in view of our convictions that the timber should be
manufactured on or close to the reservation so as to give the Quinaielt
Indians the added advantages of mill employment and of having a mill
community in the locality, based our costs on a mill located on or near
the railhead at Moclips. It is not believed that a cedar operation of
the size required to operate successfully on the Taholah Unit could be
economically operated elswhere than on the railroad, particulary if the
logs of other species than cedar were to be shipped out and sold.
...The haul from the southern edge of the Taholah Unit will vary
depending upon the location of the bridge crossing, but should average
between nine and ten miles to loclips and between fourteen and fifteen
miles to aloha at its point on the railroad further south. Most of this
intervening distance is already served by logging truck roads and the
Indian Service road to the Indian village of Taholah so that very little
added new construction will be required her except to reach the central
and western necessary, since all of the timber on this extensive unit
will funnel into these roads, that the purchaser widen then throughout
to two lane highways, and it may even be adbisable to hard surface them
ot save maintenance and increased speed of delivery. The officials of
the Aloha Lumber Company have already considered this possibility and
have stated that if they turn out to be the successful bidders on the
Unit, an analysis of costs will be made to determine whether the saving
in hauling costs will justify the added expense of surfacing. Average
length of log haul from within the Unit to mill at Noclips should be
between sixteen and seventeen miles, and some five miles greated to
Aloha, which places both points within the range of economical
development with an adequate margin for stumpage. This would not be the
case if all the logs were hauled some twenty-five miles or more further
to be manufactured in Hoquind or Aberdeen mills for there is an
approximate $3.10 to $3.50 log cost differential between Noclips and
these points. ...Logging on the Taholah Unit will undoubtedly be a
combination of tractor and high lead logging as ground and weather
conditions are nor suited to exclusive tractor logging and it cannot be
required irrespective of its desirability from both the operating and
forestry standpoint. Approximately thirth-five per cent of the Unit
area is sufficiently well drained and of such soil and topographic
character as to permit tractor logging during the dryer months from May
to September, and these areas should be reserved for such seasonal
logging in so far as it is practicable to require it. The balance of
the area will have to be logged by the high lead or related donkey
logging method as the surface is so broken or the ground so poorly
drained that it would be foolish to attempt the use of tractors. The
combination of the two methods will work out very satisfactorily from a
forestry standpoint providing an area selection program of logging is
carefully planned out in advance so as to avoid the creation of large
continuous areas of clear cutting. As we have previously indicated, the
logging should be conducted in so far as possible on alternate roads
trending at general right angles to the direction of the prevailing
winds so as to leave alternate stripe of cut-over and green timber.
Such a procedure will, of course, mean very careful cooperation between
purchaser and the Indian Service, and the planning of road construction
years in advance, but it should not involve any added costs to the
operator and may result in substantial savings in protection costs. In
addition ot area selection, and tractor logging where possible, one
other requirement should be definitely insisted upon and that is that
all snags shall be felled promptly after logging is completed on any
spur road, for past experience has shown that this is essential to
effective protection in this region. An allowance for snag felling is
being made in the appraisal so that this requirement will not be a
burden upon the operator. ...A map of the Quinaielt Reservation,
showing the Taholah Unit, the location of the principal streams, the
existing roads south of the Unit, and the location of Noclips, is
presented on the following page. It should be noted that the Aloha
Lumber Company Mill at Aloha is between four and five miles southeast of
Noclips, and that Hoquim is located some twenty-three to twenty-four
miles farther on in the same general direction. ............MAP
......... OF THE .........RESERVATION ......... SHOOTING ......TAHOLAH
LOGGING UNIT ............AND ......SUBSIDIARY FEATURES ............III.
MANAGEMENT CONSIDERATIONS 1. Reservation Forest Situation. ...Cutting
on the Quinaielt Reservation was first undertaken on a large scale
during the year 1923 and has since progressed to a point where
approximately 60,000 acres of forest land has been cut over and nearly
1,810,000,000 board feet of saw timber had been removed as of December
31, 1945. Most of this cutting has been done on the southern portion of
the reservation in the area lying south of the Quinaielt River, although
one large sale, the Quinaielt Lake Unit at the eastern tip of the
reservation, includes lands on both sides of the river. As of the
present time practically all of this southern portion has been
completely cut, only relatively small blocks remaining uncut south of
the river and these are already under contract of sale. Much of the
volume in these blocks is contained in the units under contract to the
Aloha Lumber Company and will be completely cut by the end of 1947, so
that the area south of the river may be regarded in a general way as one
solid block of cut-over land. ...Although this area is of high average
site quaility, the large part of it falling in Site II and III, and is
potentially one of, if not, the best timber producing areas on the
Reservation, it also constitutes the one big problem in connection with
development of a long range program for the Quinaielt Reservation
forest. It constitutes over 35 per cent of the 150,000 acres of good
commercial forest land on the reservation (eliminating prairies,
lodgepole nine areas, swamps, etc.,) and an even larger proportion of
the potential growing capacity, yet it is only about sixty per cent
stocked at the present time. What is more, so much of the cut-over area
south of the river has been burned over in past serious forest fires
that seeding in by natural means is now an extremely slow and uncertain
process, and many years may be required before resonably complete
stocking can be obtained. So long as this area remains in this
condition just so long will the Quinaielt Reservation forest fail to
produce to the extent of its capabilities, and the Indian owners and
depedent industry will suffer accordingly. ...Fortunately, the over-all
picture of the cut-over areas, including all lands both north and south
of the Quinaielt River is by no means as disquieting as a first glance
at the south side of the river would indicate. Actually there are some
extensive areas in this portion of the reservation that are fair to well
stocked with reproduction, and there is, in addition, a considerable
planted area in Spruce Orchard that is now well established. Also, on
the cut-over lands north of the Quinaielt River on the Quinaielt Lake,
Milwaukee Trail, and the several smallter sales reproduction has been
surprisingly good and all that could be reasonably desired. Generally
the situation has proved to be better than originally anticipated for
recent reproduction surveys have shown reproduction to be coming in well
on a number of areas where earlier examinations has been discouraging.
Therefore, while the condition of the cut-over land is not good and
cannot be considered so until the comparatively large proportion of
non-stocked area has been thoroughly restocked by some means, it is not
altogether bad. The over-all situation on the cut-over lands is
summarized in rounded off figures as follows: TABLE OMITTED SEE
ORIGINAL ...The age of the reproduction on the stocked cut-over areas
varies from one to twenty-three years, but will average about ten
because, although cutting was heaviest between 1922 and 1930, the
occurrence of burns since cutting has delayed the inception of
repreduction. Site quality on the cut-over areas viries from I to IV
but taken on the whole is better than the general level for the
reservation and will average between II and III. Correspending site
indexes for sites II and III are 170 and 140 which represent tthe height
of the dominants and codominants at 100 years. Hemlock has been found
to be the predominant species on the reservation cut-over areas and
represents more than 80 per cent of the new stand, with cedar and white
pine the more common associated species. Stocking, as indicated above,
varies from very low in the recent burns and cut-over areas to fully
stocked stands, and might appear to be rather poor on the average.
Actually there will e a gradual upward trend toward heavier stocking
with advancing years and we can expect most of the currently
understocked stands to be well stocked within the next twenty to thirty
years. ...Predictions of growth are always franght with uncertainties
and we can only hope to approximate ultimate results for so large an
area in which numerous variations in conditions exist. Hot only does
the site quality vary from extress of I to IV, but there is a wide range
of stocking, and also to a lesser degree in the composition by species
of the stocking. Also, we find a difference in soil, exposure, and
location with respect to seed source, which will affect not only the
rate of stocking but also the relative mortality of the stand. These an
other factors will all affect the ultimate yield irrespective of the
effectivenoss of protection from fire and other destructive forces.
Needless to say, any prodictions as to future growth are made under the
assumption that sufficient funds will be provided in the future for the
adequate protection of the cut-over areas from fire. Without ample
protection funds it is as useless to undertake a long range forestry
program on the quinaielt reservation as it would be to attempt the
protection of Chicago with only one or two fire stations. ...Results of
studies conducted by Dr. Walter H. Meyer, and published in United States
Department of Agriculture Technical bulletin No. 554, entitled "Yield of
even-aged Stands of Sitka Spruce and Western Hemlocl", indicate that
stands of these species in the fog-belt region of the West Const
normally attain their best periodic rates of cubic foot growth prior to
60 years of age, and their best board foot growth rates in the ten-year
interval between 50 and DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED
SEE ORIGINAL of new growth in the next twenty years on the 36,000 acres
of stocked cut-over land, and only 252,000,000 board feet in the next
thirty years. In either case the volumes produced are obviously
inadequate to support cutting on a subseantial basis even for a period
of ten years and we certainly would not have a condition sppreaching
sound forest management. ...Actually the ideal program for this forest
would be distribute the cut on the remaining virgin stand over a period
of fifty years for this would be certain to create an ample volume of
new growth to carry cutting at an undiminished annaul rate over the
ten-year interval between first and second cuts on the present virgin
forest area. It also would create a handy surplus that might prove
extremely useful in the event of losses from fire, severe windstroms, or
insect epidemic infestations, and would provide a margin for failures of
certain areas to restock promdtly. However, while such a program has
much to recommand it from a forestry standpoint, it does delay cutting
over of the allotment holdings for what would soon to their many owners
an unconscionably long pariod, and is, as a ratter of fact, if any other
procedure is feasible. We have, thorefore, given consideration to
several conpromise measures and have concluded that the distribution of
the cut on the reraining virgin stands over a period of forty years will
work out quite satisfactorily from Indian and forestry standpoints
alike. ...Distribution of the cut on the remaining virgin stands over a
period of forty years would mean limiting the annual cutting on new
sales to aggregate volume of approximately 57.5 million board feet. If
cutting on the Taholah Unit is started fairly early in 1947, and a cut
or 15 million feet is made in that year, and of about 40 million feet
thereafter, the total cut for the first few years would work out about
as follows: TABLE OMITTED SEE ORIGINAL ...Thus it would appear that in
order to raintain an annual cutting rate of 57.5 million feet per annum,
an additional sale should be made in the year 1949 so that cutting could
be started in 1950. Such a sale should be limited, of course, to a
maximum which, when added to the maximum allowable cut on the Taholah
Unit, would not exeed 57.5 million feet. We have considered a minimum
annual cut of 35 million board feet and a maximum of not to exceed 125
million in any three-year period on the Taholah Unit. The total cut on
the other sale to be made in 1949 would then probably provide for a
minimum cut of 15 million feet annually and a maximum of 50 million in
any consecutive three-year period. It might be well to explain that the
making of smaller sales of this kind should be concentrated in areas
along the Olympic highway in the northern part of the reservation, and
preferably in areas where cedar is the less prominent species. It is
important that the cedar stands, both north and east of the Toholah Unit
be reserved to assure the continuance of a cedar manufacturing industry
on or near the reservation. ...As might be expected, growth returns
will not be nearly as substantial in the next forty-year period as they
would be if the second cutting could be delayed for an additional ten
years, because as pointed out heretofore periodic annual board foot
increment reaches its maximum levels between 50 and 60 years. Loan
annual board foot increment at fifty years, according to Dr. Keyer's
tables, amounts to 490 for normal stands of site index 140, as against
742 board feet in a period of sixty years. According to our best
estimates, after making correction for composition, degree of stocking,
etc., the 36,000 acres of stocked cut-over lands cannot be depended upon
to produce more than 393 board feet per acre per annum over a period of
fifty years. Thus if we consider the entire 36,000 acres as being
stocked with reproductions having an average age of ten years (which
would be correct) since cutting on this area must be spread over a
period of 20 years until the virgin timber areas come into production)
we would expect to secure a total increment of 707,400,000 feet in the
next forty years. This would appear to allow an annual cut of only
about 35 million feet during the twenty-year pariod between 1987 and
2006, which would be a farily sharp reduction from the 1947 - 1986
cutting gudget of 57.5 million feet annually. ...As a matter of feet,
barring bad fires, wide-spread blowdowns, or other catastrophe, we can
expect a substantially heavier growth return than these values indicate
for we have been most conservative throughout in making our growth
predictions. Some of the restocked stands will be approaching the age
of sixty before they are finally cut which will add maerially to the
volume available for cutting, and the site II areas should do better
than we had calculated for we intentionally grouped them with Site III
to stay on the conservative side. It is possible, therefore, that there
will be only a very minor drop in the annual cut during the first, for
available volumes should cutting cycle and that it will be only
temporary, for available volumes should expand rather than diminish over
this period. It is accordingly recomended that the cutting of the
remaining virgin stands on the reservation be distributed over the
following forty year period. ... ............IV. APPRAISAL OF STUMPAGE
VALUES 1. Explanatory Statement. ...The current value of the stumpage
on the Taholah Logging Unit has been determined in general accordance
with the detailed appraisal procedure outlined and recommended at the
joint conference of regional and Chicago Office Forestry representatives
of the Indian Service, held at chicago in January, 1944. Estimates of
cost have been determined by field examinations and careful analysis of
the operating records of similar logging operations in the immediate
locality, and are believed to accurately reflect the expense of
developing the timber on the Unit under conditions as of the immediate
present. Vaule of the logs that will be derived from the timber on the
Unit has been ascertained from field determination of the grade run of
the several species set against the current value of these log grades on
the Grays Harbor log market. The net margin for stumpage, after
deducting costs and a reasonable allowance for profit and risk from the
indicated current value of the logs, is substantially greater than the
highest average price ever heretofore received from comparable sales on
the quinaielt Reversation. It is admittedly a high average value when
considered from the standpoint of mills located in hoquiam or berdeen,
but we are convinced that it is no more than should be required under
the proposed conditions of sale and the present status of the log
market. ...Two departures have been taken in this appraisal from usual
appraisal procedure, but both conforn with Indian Service policiss and
sound valuation principles. In the first instance, the appraisal is
based upon a mill located within a ten-mile radius of the reservation
boundary instead of at hoquain or Aberdeen, where most Grays Harbor
mills are concentrated. This was done because we propose to limit the
bidding to ourchasers who are prepared to operate a manufacturing plant
within that radius, and will thus provide manufacturing employment and
attending community benefits to the Indians living on the reservation.
It has the further advantage that the stumpage has a substantially
higher value to such a plant than it would have to hoquiar or boadeen
mills which would have to stand a high log transportation cost. In the
second instance, the value of the logs to be developed from timber on
the Unit has been determined from current log ceiling price schedules
instead of from the Grays Harbor log price averages as reported
quartorly in the sales analyses of the Pacific Northwest Loggers
Association. Under ordinary circumstances, the association average have
been used because they usually are the most accurate indicators
obtainable of the status of the Grays Harbor log market over the period
covered by their reports. In this case, however, the record of sales in
the Grays Harbor Region for the second quarter of 1946, or even the
third quarter, would not reflect the level of today's market because of
the fact that the Office of Price Administration on August 8, 1946
substantially increased celling prices on logs. Since the log market is
extremely urgent at present, log prices automatically would increase to
the new ceiling rates and we have, therefore, used the Office of Price
Administration's currently effective log ceiling price schedules.
...The various stops of the appraisal are set forth below in customary
form. DOCUMENT OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
............CEDAR POLES ...It is our opinion that the cost of cedar pole
development on the Taholah Unit will net vary sufficiently to justify
any change in stumpage rates from those already in effect on the
Quinaielt Lake, Mounts, and Hall logging units. It is recommended,
therefore, in the interests of consistency that cedar poles be
advertised at the following minimum rates per lineal foot: TABLE
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL 10. The Commissioner of Indian Affairs shall
obtain from the Pacific Northwest Loggers Association through its
published quarterly "Compositte Sales Analyses Grays Harbor Logging
Companies" a record of the logs of each species sold, and the average
log grade price received, and from these records will determine the
average specie log price on the same basis of log grade percentages as
those used in determining the average log prices stipulated in Section
8. The percentage stipulated in Section 9 shall then be applied to the
corresponding average log prices for the quarter annual or annual period
selected by the Commissioner of Indian Affairs, and the new stumpage
rates for each species so determined shall become effective at the end
of the required thirty days' notice. PROVIDED; That the quarter-annual
or annual periods so selected shall be subsequent to the period
stipulated in Section 8. PROVIDED FURTHER, that the stumpage rates for
Cedar Poles shall be adjusted in accordance with the trend of the cedar
pole market in the general locality of Grays Harbor. 11. IN THE EVENT
the quarter-annual composite sales analyses of Grays Harbor Logging
Companies as reported by the Pacific Northwest Loggers Association
become unavailable in a form acceptable for the purpose of these
stumpage revaluations, the Commissioner of Indian Affairs shall proceed
thereafter to revise stumpage rates as the trend of economic conditions
in the lumber industry shall warrant; PROVIDED, that the requirements
of notice set forth in Section 7 of this contract shall also apply to
stumpage revaluations made under authority of this section. 12. IT IS
FURTHER understood and agreed that stumpage rates shall never, in any
event, be reduced below the basis minimum rates of: ...$3.50 per M feet
B.M. for cedar. ...$1.50 per M feet B.M. for hemlock. ...$4.50 per M
feet B.M. for spruce. ...$1.50 per M feet B.M. for amabilis fir.
...$3.50 per M feet B.M. for white pine. ...$4.25 per M feet B.M. for
Douglas fir ...$ .0075 per linear foot for Cedar Poles, 20 feet and
under ...in length. ...$ .015 per linear foot fo cedar poles 21 to 45
feet in length. ...$ .025 per linear foot for Cedar Poles 46 feet and
over in length. 13. THE PURCHASER further agrees that prior to the
time when the stumpage value of the timber cut shall exceed the cash
deposit of $40,000 submitted with his proposal to purchase timber, he
will make another cash deposit of $10,000 and subsequent deposits of
$10,000 at such times as may be necessary to insure that the stumpage
value of timber cut and not paid for at any time shall not exceed the
cash deposit then in the hands of the Superintendent; DOCUMENT OMITTED
SEE ORIGINAL the minimum of timber required to be cut that year under
this contract. PROVIDED, that this special advance deposit shall be
applied against timber cut in such subsequent year at the rates in
effect during the subsequent year; and PROVIDED FURTHER, that the
officer approving this contract, may relieve the Purchaser in whole or
in part from the minimum cutting and paying requirements because of
adverse operating or market conditions, fire damage to the Purchaser's
manufacturing plant, acts of God or government control, or for any other
reasons he may deem sufficient. 18. THE OFFICER approving this
contract may extend the time for completion of this contract. 19. IT
IS FURTHER understood and agreed that, since one of the major purposes
of this sale is to improve the walfare of the Quinaielt Indians by
giving them the added advantages of a local manufacturing industry and
attached community with increased opportunities for employment, no less
than 60 per cent of the total volume cut in any twelve months after
March 31, 1949, shall be manufactured into lumber or thingles or both on
the reservation or within a distance not creater than ten miles outside
its boundaries. The purchaser will be allowed until March 31, 1949, to
establish a manufacturing plant within the required area and get into
the required manufacturing production. 20. THE PURCHASER further
agrees that if fires, for the starting or spread of which he, or any of
his employees, his sub-contractors or their employees, are responsible
by act or neglect, shall destroy young growth under ten inches in
diameter on any portion of the reservation, he will pay liquidated
damages of ten dollars pe acre for the area thus burned over unless a
lesser rate of damages shall be approved by the officer approving this
contract; and he agrees that in addition to these liquidated damages,
he will pay the damage that shall be caused to all timber larger than
ten inches in diameter at four and one-half feet from the ground or to
any other property of the Indians or the Government. Should
merchantable timber be injured by a forest fire for the origin or spread
of which the Purchaser, his agents, employees, sub-contractors, or their
employees, are in no way responsible, said Purchaser shall be
accountable for the loss substained only to the extent that such loss
shall be due to his failure to cut and remove the injured timber as
expeditiously as shall be possible under the existing circumstances and
the terms of this contract. 21. THE PURCHASER further agrees that, in
order to conform with the requirements of selective logging as provided
in Section 2 of this contract, all road construction and logging
programs will be planned at least one year in advance and will be
approved by the forest officer in charge in writing; PROVIDED, that no
departure from these approved programs will be remmited without the
written consent of the forest officer in charge. PROVIDED FURTHER, that
all bridges, treatles, and drainage structures will be left intact at
the completion of logging operations and will become the property of the
Quinaielt Indian Tribe for fire protection and forest management
purposes. 22. THE PURCHASER further agrees that within one year from
the completion of logging on any spur or rain logging road, he will
cause all snags more than eighteen inches in diameter at breast height,
and more than sixteen feet in height from the ground, to be felled to
facilitate the protection of the cut-over areas from fires; PROVIDED,
that the forest officer in charge may relieve the Purchaser in writing
of the requirements of this section on specific areas, as designated on
a map, when the number of snags exceeds the number of trees felled in
logging. 23. THE PURCHASER further agrees that as soon as possible
after the close of each calendar year, and in any event not later than
April 15th following, he will submit to the Commissioner of Indian
Affairs, through the Superintendent, a financial statement of operations
and sales in triplicate for the claendar year just ended, such
statements to be in a form satisfactory to the officer approving this
contract, and to be certified to by a certified public accountant and
the purchaser. 24. IT IS FURTHER understood and agreed that this
contract shall be null and void and of no effect until approved by the
Secretary of the Interior and until the latter shall approve a bond in
the penal sum of $50,000 conditioned on the faithful performance of all
the terms of this contract and the General Timber Sales Regulations
attached hereunto. Signed and sealed in sextuplet day of 19. TABLE
OMITTED SEE ORIGINAL Signed this day of, 19, for the Indians in General
Council held the day of 19, when the sale of the Tribal timber within
this Unit was consented to. TABLE OMITTED SEE ORIGINAL 3. Proposed
Form of Allotment Contract. ...The proposed form of allotment contract
to be used in connection with this sale is submitted on standard form
5-489 on the following pages. Each allotment contract executed in
accordance with these terms will be supported, of course, by a
power-of-attorney duly executed in conformity with Indian Service
Regulations. DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
HES-004-0808-0847
HES-004-0808-0847
IIJ46.1
290202
CORRESPONDENCE
STEER, HENRY B ; TAHOLAH INDIAN AGE
Forestry... ............Taholah Indian Agency, ............Hoquiam,
Wash., ............February 2, 1929. DOCUMENT OMITTED SEE ORIGINAL
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ...The following
stumpage prices are recommended for the various units:...... TABLE
OMITTED SEE ORIGINAL ...As the first stumpage price re-adjustment has
been placed in 1935, it seems proper to compare log sales made by
contracting concerns on the Reservation for the four year period ending
December 31, 1928, and the logging costs of such concerns, with the log
sales which may be expected from the various units during the next four
years (1929-32 inc.) according to the amount of the various species on
the several units, the probable cost of logging in such units, and the
stumpage prices which have been recommended. ...The following
tabulation of actual log sales for the years 1925-1928 inclusive of logs
from the Quinaielt Indian Reservation, has been taken from the annual
reports of concerns operating in Indian timber. .........Actual Sales
of logs from the Quinaielt Indian ............Reservation by Aloha,
Osette, Smith and Hobi. ............1925-28 inc. TABLE OMITTED SEE
ORIGINAL ...The following are the logging costs of the four concerns
operating on the reservation for the four year period 1925-1928
inclusive. These costs have been taken from the annual reports of the
companies on file at this office. ............Logging Costs on
Quinaielt Indian Reservation ............1925-1928 inclusive. TABLE
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ...We arrive at the
average stumpage prices to obtain in the proposed four units for the
next four year period by multiplying the percentage of each species by
the stumpage price recommended and adding the weighted results for each
unit as follows: ............Probably stumpage rates in proposed units
............for 1929-1932 inclusive. TABLE OMITTED SEE ORIGINAL ...The
data on the last few pages will now be consolidated to show, as nearly
as possible, the returns which may be expected in the next four years,
prior to the first re-adjustment of stumpage prices, on the proposed
four units, assuming that the cost of logging f.o.b. cars without main
line freight and stumpage will be $11.00; that the sales returns will
be approximately what they have been during the past four years; and
that the stumpage prices will be as recommended. TABLE OMITTED SEE
ORIGINAL ...It would appear, from the above computations, that even at
the stumpage prices recommended the proposed units could not be logged
at a profit, and if the proposed units were to be considered in the
light of straight logging chances under present market conditions and
logging costs, I honestly believe the above figures represent, as
closely as any computations can, the actual conditions. ...An analysis
of logging operations from 1922 to date on the Quinaielt Indian
Reservation will show that the only concern that has made any money in a
straight logging show has been the Hobi Timber Company, and they have
made about four percent on the capital invested. The logging
superintendent who runs the woods operations of the Hobi Timber Company
is known as one of the best loggers in the Pacific Northwest, and this
concern, especially in the last two and one half years, has been very
efficiently managed and have made an output per man not excelled in this
entire locality. During the years 1925-1928 inclusive the Aloha Lumber
Company shows a total loss on logging operations of $186,142.45
according to their annual statements on file in this office, copies of
which have been submitted to the Indian Office with the annual
re-adjustment reports. The only way this Company can stay in business
is through the profit they make on round Cedar logs exported to Japan.
Similarly the M. R. Smith Lumber and Shingle Company have shown a loss
on logging operations, but this is a big concern, and they make a profit
by handling their Cedar products until they are sold to the consumers.
The Ozotte Railway Company has sustained a heavy loss in their logging
operations, as reported to the Office in numerous repots. ...As
mentioned earlier in this report, the Quinaielt Indian Reservation is
the key to the Olympic Penninsula, and it is felt that this and the
other factors mentioned earlier will enable these sales to be made,
however, I feel that the stumpage prices recommended are the maximum
which should be given in the advertisement as the lowest bids which will
be considered. DOCUMENT OMITTED SEE ORIGINAL
HES-004-0848-0859
HES-004-0848-0859
IIJ29.1
COMM OF INDIAN AFF
400108
CORRESPONDENCE
; QUINAULT RESERVATI
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL December 29, 1934: ...Office
letter to Superintendant, approved by the Assistant ...Secretary (Oscar
L. Chapman) on January 12, 1935, in which ...the cut of 5,000,890 during
the two contract years ended ...March 31, 1934, is accepted as
compliance with the terms of ...the contract (authority of Paragraph 46
of the Central Timber ...Sale Regulations) and ...the contract has
extended (under authority of Paragraph 43 ...of the General Timber Sale
Regulations) for a period of five ...years from April 1, 1935 to April
1, 1940, subject to the ...following conditions: ...1. That the basic
contract stumpage prices which are in ......effect for the period ending
March 31, 1935, shall ......continue for the period of the extension
beginning ......April 1, 1935, except that the prices may be revised
......in accordance with the provisions of the following ......paragraph
No. 2. ...2. In order to afford mutual protection to the Indians
......and the purchaser, prices may be revised as follows: ......In the
event of sufficiently improved economic conditions ......the
Commissioner of indian Affairs is authorized, ......after consultation
with the purchaser and after 90 ......days notice to him, to increase
the basis stumpage ......prices of timber; and from thenceforward the
commissioner ......of Indian Affairs may, in his discretion, ......after
consulation with the Purchaser and after 90 ......days notice to him,
revise the stumpage prices from ......time to time and the such periods
as the trend of ......economic conditions requires: Provided, that any
......new rate so established in the contract: Provided ......further,
that the requirement of notice in this ......paragraph shall be
satisfied when new stumpage prices, ......established under its
authority, are made effective ......90 days after the commissioner of
Indian Affairs has ......given notice to the Purchaser that he intends
to ......proceed under the authority of this paragraph to ......change
stumpage prices. ...3. This extension of the contract shall not become
effective ......until the Purchaser and the aetna Casualty Surety
......Company shall consent in writing prior to March 31, 1935, ......to
the conditions outlined in this letter." March 31, 1935: ...The
purchaser cut 17,102,810 feet during this contract year ...(apparently
all it was parmitted to cut under the Code) from ...the Unit. A waiver
was asked for and apparently granted ...although we have no record of it
here. March 31, 1936: ...A cut of only 10,770,170 feet was made from
the Mounts Unit ...during the year ended on this date. Request for
waivers of ...cutting requirements was sent to office on July 6, 1936.
August 1, 1936: ...Office letter approved by Assistant Secretary on
August 7, ...1936 accepts the cut of 10,770,170 feet during the year
ended ...March 31, 1936 as sufficient performance, in view of the
...unsatisfactory conditions which existed in the lumber industry ...on
the West Coast last year. However, in view of the ...apparently
improved conditions in the lumber market the Office ...asks the
Superintandent to notify the Aloha Lumber Company ...that it will be
expected to cut its contract minimums on all ...its contracts during the
year ended March 31, 1937. September 1, 1936: ...Aloha Lumber Company
letter to superinttendent discussing ...effects of depression and trade
trusty with Canada on ...Grays Harbor market and the influence of these
two factors on ...their own operations. Explains reasons why cutting
was ...postponed on fall Unit and concentrated on the ...other Units.
......States that, insofar as Mounts Unit was concerned, they ...were
seriously handicapped by the high prices at which they DOCUMENT OMITTED
SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL
HES-004-0860-0873
HES-004-0860-0873
IIH40.2
390602
CORRESPONDENCE
NICHOLSON, N O ; TAHOLAH INDIAN AGE DEPUTY DSTR AGENT
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL
HES-004-0874-0878
HES-004-0874-0878
IIH39.1
COMM OF INDIAN AFF
381231
CORRESPONDENCE
CAUNT, WILLIAM J ; ALOHA LUMBER CO
............J. WILLIAM CAUNT .........CERTIFIED PUBLIC ACCOUNTANT
.........ABERDEEN, WASHINGTON .........TELEPHONE ABERDEEN 1041
............Aloha Lumber Co. ............Aloha Lumber Company TABLE
OMITTED SEE ORIGINAL ............Legging Operations ............for year
ended TABLE OMITTED SEE ORIGINAL ............Profit & Loss Statement
............for year ended TABLE OMITTED SEE ORIGINAL
............Selling and Administration Expense TABLE OMITTED SEE
ORIGINAL
HES-004-0879-0883
HES-004-0879-0883
IIH38.1
370322
CORRESPONDENCE
HOWARTH, JAMES A ; QUINAULT INDIAN RE NICHOLSON, N O ; QUINAULT INDIAN
RE
......STUMPAGE READJUSTMENT .........RECOMMENDATIONS .........MOUNTS
UNIT .........1957 ......WITH 1936 STATISTICS .........QUINAIELT
......INDIAN RESERVATION .........WASHINGTON DOCUMENT OMITTED SEE
ORIGINAL ( DOCUMENTS ILLEGIBLE ) DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL TABLE
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE
OMITTED SEE ORIGINAL 7- Additonal data in the APPENDIX to this report
will include the following;- a- Aloha Lumber Company logging costs and
sales and profit and loss statement for 1956. Similar data for other
companis will be found in other reports of recent date as follows;-
Point Grenville, 3/20/37; Upper Wreck Creek, 3/12/37; Hall Unit,
2/19/37. Ozette Railway Co. data will be submitted later, in a report
to be dated April 1, 1957, and appears also in supplementary reports on
the Hall Unit dated 2/19/37. b- Map of Aloha's logging on its five
units including Mounts. ...Omitted from the Appendix but appearing in
the above reports on the Hall, Upper Wreck Creek a,d Point Grenville
will be the following data;- ...Grays Harbor log sales and purchases for
1936, all operators; ...Supporting data for the averages shown in this
report, page 6 for the trend in log prices by grades and species since
1917. V- CONCLUSIONS AND RECOMMENDATIONS AS TO STUMPAGE INCREASES.
...At the outset of this report we quoted the revised and extended
contract provision that "in the event of sufficiently improved economic
conditions the Commissioner of Indian Affairs is authorized, after
consultation with the purchaser and after 90 days notice to him, to
increase the basic stumpage prices of timber". The material of this
report has been to show whether there are now sufficiently improved
economic conditions to make it just for the Commissioner to exercise his
discretion and raise stumpage prices. ...The main points developed are
that the Mounts Unit originally estimated to contain 33 1/2% of cedar
and 18.4% of spruce is now estimated to contain ---------- 60.9% cedar
and 10.7% of spruce; also that this cedar is estimated as 25% defective
which is about the average for the reservation. Cedar logs on the Grays
Harbor market advanced from the average of $10.48 in the three years
1931-3 to $11.96 average in the three years 1934-36, an advance of
$1.48; also during the same period the average logging costs on the
units near the beach advanced 53[ per M leaving a net pick up of 95[ for
the operators; that Aloha Lumber Company has lost money during the
depression years to date as following rates;- ......1929 @ $
.35..........1933 @ $ 1.14 ......1930 @.....94..........1934 @ 2.07
......1931 @...1.32..........1935 @ 1.36 ......1932
@...6.48..........1936 @ 1.04 ...The total loss of this company during
these eight years was reported as $ 230,984.95 on a total cut of
193,806,986 feet and therefore the average loss was $1.02 per M over
that period. DOCUMENT OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL MAP OMITTED SEE ORIGINAL
HES-004-0884-0909
HES-004-0884-0909
IIH37.1
370312
CORRESPONDENCE
HOWARTH, JAMES A ; TAHOLAH INDIAN AGE NICHOLSON, N O ; TAHOLAH INDIAN
AGE
............REPORT RECOMMENDING ............THREE YEAR EXTENSION
............UPPER WRECK CREEK UNIT ...CONTRACT EXPIRING MARCH 31, 1937
............REGARDING ALSO ............STUMPAGE PRIORS AND
............SELECTIVE LOGGING ...QUINAIELT INDIAN RESERVATION
............WASHINGTON. ............MARCH 12, 1937. ......Taholah
Indian Agency. .........Hoquiam, Washington. .........March 12, 1937.
Commissioner of Indian Affairs, Washington, D. C........thru Mr. Lee
Muck, Assistant Director ...........................of Forestry,
Spokane, Washington. Dear Sir;- ...Herewith is submitted in
quintuplicate an application by Aloha Lumber Company dated March 1, 1937
for three year extension of its contract on the Upper Wreck Creek Unit,
which contract will expire March 31, 1937, and embracing additional
request for acceptance of the insufficient logging performance (only
1,166,770 feet was logged) in the contract year ending March 31, 1935.
This application is also signed by the Massachusetts Bonding and
Insurance Company which consents to remain holden on the bond if
application for extension and relief as to logging is granted by "the
approving officer" The original approving officer of the contract, Sept.
12, 1927, was the acting Commissioner of Indian Affairs. ...It will be
remembered that Aloha Lumber Company and its bonding company submitted
under date of July 28, 1936 a request for five years extension and
waiver for insufficient logging during two years. This application was
returned by the Director of Forestry Feb. 15, 1937 with request for
reexecution in different form and to cover three year instead of five
year extension. This letter of the Director of Forestry also requested
a report thru Mr. Lee Muck in regard to the prices which should be
established for the three year extension period. The report follows.
...First we again call attention to the fact that the original contract
was approved by the Acting Commissioner of Indian Affairs rather than by
the Secretary of the Interior and accordingly we have preclared the
enclosed form, executed in quintuplicate, for the Commissioner's
approval notwithstanding that we note the Assistant Secretary of the
Interior has approved the several waivers as to cutting requirements
dated 5/19/32 and 1/31/35 and 6/5/35. ... I-......PRICE MODIFICATION.
...The contract to expire 3/31/37 provided for modification of stumpage
prices for three year periods beginning April 1, 1931 and April 1, 1934.
On February 28, 1931 the Commissioner advised that there would be no
increase effective April 1, 1931 and again on December 22, 1934 he
advised that no increase would be effective for the three years that
began April 1, 1934. Reference is made here to reports as follows from
my office regarding to readjustments in stumpage prices and including
three year comparison of log values and logging costs. These reports
especially referred to were dated Feb. 10, 1931 covering Upper Wreck
Creek and other units and September 29, 1934 covering the Point
Grenville Unit. ...The General Timber Sale Regulations of April 10,
1920 which are apart of the present contract read in paragraph 43 that
"Extension of time for the performance of any contract may be granted
the purchaser by the officer approving the contract, in his discretion
and subject to such conditions as he may impose." These new conditions
may of course cover new prices. There is no express or implied method
in the contract as to the way of arriving at such new prices. However
it seems fair to go about it in the manner provided for determining
price changes that might have been made for the two three year periods
beginning 4/1/31 and 4/1/34. ...The contract set up stipulated average
Grays Harbor log values for the three year period beginning 1/1/24
ending 1/1/27 and provided that the average values later found for the
years 1928-29-30 be compared with the stipulated prices and that also
"the cost of logging operations during the said three years will be
compared with the cost of such operations during the three year period
directly preceeding January 1, 1927, for the purpose of ascertaining, so
far as is practicable whether there has been generally in the lumber
industry in the specified region an increase in the margin of profit on
logging and manufacturing operations during the three year period
directly preceeding January 1, 1931". The advances in stumpage
permissible was limited to 50% of the increase in value of logs of the
respective species. For the readjustment effective 4/1/34 the same
method was provided. There was also the provision that --"In the
discretion of the Commissioner a reduction in the stumpage prices of any
species may subsequently be made to correct any error or to afford the
purchaser relief from a market depression that deprives the purchaser of
a substantial margin of profit; Provided that the stumpage price of no
species will ever be reduced below the rate bid for the initial period
of the contract". ...The contract prices for stumpage were as follows
for the initial period ending 3/3/31,---$2.50 for live and dead Cedar,
Douglas Fir, Spruce and White pine and $1.00 for Hemlock and other
species, per M ft. Scribner Dec. C. log scale, and per linear foot for
cedar poles as follows;- 1/2[ for poles 20 feet or less in length, and
up to 6" top diameter and 1 1/4[ for poles 21 to 45 ft long with tops up
to 9" and 1 1/2[ for poles 46 feet and longer and tops up to 9", and per
lin, ft. for douglas fir 1/2[ up to 18" butt diameter. TABLE OMITTED
SEE ORIGINAL TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL .........LOG VALUES AND COSTS AT TIME
CONTRACT WAS ENTERED .........INTO. ...The stipulated log values in the
contract for the three year period 1917 to 1919 inclusive were as
follows:- Grades 15/30/35..........percents..........Cedar camp
run.....$16.00 Douglas Fir..............$14.25...........White Pine
run.....14.00 Spruce.....................15.75...........Hemlock
run..........9.50 ...There was no stipulation as to logging costs for
this same period and there is no report in our recores that shows what
the costs of logging on the Quinaielt Indian Reservation was calculated
to be during those years. Mr. H. B. Steer in a report of Feb. 11, 1924
gives some cost figures for this period but his costs are those of
logging companies operating off the reservtion in very different kind of
timber. Their costs were $9.09 per M as shown below. Co. 1 61,131
M....................$572,266.04 ......2 32,306
M.....................399,153.32 ......3 450,118
M...................4,093,814.26 ......4
98,204.229'...................769,064.57 ......
641,759,229'................$5,854,298.19 averaging $9.09 ...We do not
believe that these costs, in fir operating, as they appear to be, are of
value to establish a cost in a cedar operation at Noclips....
.........PROFIT AND LOSS SHEETS 1923 to 1936 ...M. R. Smith L. & S. Co.
has reported the figures below: TABLE OMITTED SEE ORIGINAL TABLE
OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL .........CONCLUSIONS AS
TO THE STUMPAGE PRICES TO BE ............SET UP IN THE EXTENDED
CONTRACT. ...Aloha Lumber Company has kept out of this comparative low
period unit and has during the depression years been logging its spruce
in the Mounts Unit where the spruce is priced $1.00 higher. The reason
for keeping out of the Upper Wreck Creek Unit is that it is mostly cedar
of inferior grade and hemlock. W. R. Smith Lumber and Shingle Company
has lost heavily logging its cedar at the price of $3.60 per M.
...Smith and Aloha costs to Grays Harbor for 1934, 1935 and 1936
excluding stumpage have averaged as shown---------$11.81 Cedar logs on
Grays Harbor for same three years have averaged 11.96 ...This would
leave for stumpage and profit the difference of .15 Cedar is 57% of the
stand on the Upper Wreck Creek Unit and it CANNOT STAND TO BE RAISED
ABOVE THE PRESENT PRICE OF $2.50 per M...... ...Spruce logs on the
Harbor for past 3 years averaged.......$13.79 Deducting logging costs
this leaves for profit and stumpage.....1.98 THE SPRUCE STUMPAGE CANNOT
STAND RAISING ABOVE THE $2.50 ...Hemlock logs on the Harbor market for
past three years have.$ 7.04 The logging cost averaged to exceed this
amount by ---------------3.77 HEMLOCK CANNOT STAND RAISE IN PRICE.
Hemlock is 21% of stand ...Douglas fir logs on the Harbor market for
last 3 yrs. were..$13.40 Deducting logging costs this leaves for profit
and stumage........1.59 DOUGLAS yfir CANNOT STAND A RAISE IN STUMPAGE
RATE. IT IS 7% of stand ...White pine logs have averaged on Grays
Harbor for last 3 years $13.82 Deducting the logging costs leaves for
profit and stumpage.2.03 WHITE PINE CANNOT STAND INCREASE IN STUMPAGE
PRICE. It is 6.4% of stand. ...These conclusions have been based on
the average costs for these two companies for the past three years. The
true cost of logging this unit is believed will exceed the average cost
by reason of the factors mentioned above and the excessive defect
especially that is developing in the cedar. II- SELECTIVE LOGGING
PROPOSAL. ...This contract now expiring reads on the front page "that
the Superintendent----agrees to sell to the purchaser----all the
merchantable live timber marked or otherwise designated by the officer
in charge for selective logging as required by the attached General
Timber Sale Regulations"----etc. So by its term it was a selective
logging contract. Other timber contracts of this reservation made
before this one were similarly worded. But from the first logging on
the reservation the selective logging was ignored because it was the
belief of those in charge here of timber sale administration that
selective logging was impracticable and that the only practicable way to
log the reservation timber was with high power donkeys. Those who bid
on the timber sales offered at different times were aware of this
interpretation and bought the units with the understanding that they
could log the units with high power donkeys. This idea was never
contested and operators have invested their money in donkeys and have
laid out their railroads to suit a donkey logging and uphill yarding.
...As the Office is no doubt aware, the Aloha Lumber Company and M. R.
Smith Lumber and Shingle Company have made a number of trades between
themselves whereby each as logged parts of the units of the other that
were more accessible to first. Most of the Upper Wreck Creek-Unit
remaining is more accessible to Smith who is nearly out of timber. He
has lately logged much timber therefrom and plans are that Smith will
log most of the unit and complete the logging in about a year. ...The
point we would bring out here is that Smith has built railroad into this
unit in high locations that contemplate donkey logging. For caterpillar
logging the railroad construction should be below the timber. It is the
estimate of Mr. F. E. Briggs, our Senior Forest Ranger in charge of the
Smith and Aloha sales that changing the railroads to fit caterpillar
logging would cost the Smith company and extra $8,000.00; also that the
changing of equipment would mean an added outlay of $14,000.00 for two
cats and arches. ...If this company had many years logging ahead we
would say that now would be a good time to put the contracts on the
basis on which they were written, meaning selective logging and to
insist on using caterpillars henceforth. But this company, Smith's, has
only one or two years operations ahead on the reservation remaining. We
recognize of course that Aloha rather than Smith is the contractor on
the Upper Wreck Creek Unit. But Aloha's bond protects the contract as
logged. Payments are made by Aloha in whose name the contract stands.
...Unless the reasons for enforcing the selective logging provisions are
compelling at this time we think that consideration should be given to
the extra heavy costs that will result to the Smith Company by Acquiring
new equipment and scrapping it present equipment and relocating
railroad. Also we should recognize that both companies have lost very
much money for several years back and the proposed change would impose
added loss. DOCUMENT OMITTED SEE ORIGINAL ...The main objectives of
selective logging in the present case would be to establish a fire break
between one clear out area and another adjoining, to ensure better
reproduction, to permit of added growth to the timber left standing and
that it shall improve as to grade of the logs to be gotten from it all
provided the timber left shall survive the winds. ...In the present
case Bakers Prairie together with the half mile strip to the north of
unmerchantable cedar swamp constitutes a very effective fire barrier and
the swamp area will scatter seed of the tree species within it. There
would be better seed scattering of course from a genera thinning or
selective logging with caterpillars of the entire area loft now to log
on the unit. But there is the added danger of windthrew on the
comparatively small area of selectively logged land between prairie and
clear out area. ...Our recommendation is that on this small area
selective logging restriction be not imposed at this late date.
...Aloha requests to be advised very soon the decision. ...No appendix
is attached to this report other than a map. ............Respectfully
submitted ............James A. Howarth Jr. ............Forest
Supervisor. Approved and forwarded H. O. Nicholson, Superintendent.
...For Profit and Loss and other statement by Aloha Lumber Company and
M. R. Smith Lumber and Shingle Company for the year 1936 see our report
covering the Hall Unit submitted under date of February 10, 1937.
(44695-27) MAP OMITTED SEE ORIGINAL
HES-004-0910-0928
HES-004-0910-0928
IID37.1
COMM OF INDIAN AFF MUCK, LEE
300310
CORRESPONDENCE
SAMS, W B ; TAHOLAH INDIAN AGE
Forestry... ............Taholah Indian Agency, ............Hoquim,
Wash., ............March 10, 1930. The Commissioner of Indian Affairs,
... Washington, D. C. Sir: ...... ...Logging operations on the Moclips
Unit of Timber in the Quinaielt Indian Reservation, under the contract
of the Aloha Lumber Company, which was opproved on July 16, 1920 by the
Assistant Secretary of the Interior, have been entirely completed, and
the bond furnished by the Company may properly be concelled. ...A final
report on this unit would have been made sooner, but the Aloha Lumber
Company was not willing to release their contracts before the same
expired unless their application to continue to operate their railroad
through the unit was approved, which was recently done. ...Logging
Operations in the Moclips Unit started in August, 1922, and were
completed in August 1929. The following amounts of timber were scaled
from the unit: TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
...Certificates of Completion of Timber Contract, Form 5-500m, have been
executed as to the above scaling units, and the originals have been
fowarded to the Forestry Division of the Indian Office, with the
exception of the Certificate for allotment #455, Peter Williams, which
was fowarded to the Indian Office under date of March 30, 1927. In the
absence of different instructions, we will deliver the duplicate copies
of the certificates to the contractor, and will retain the triplicate
for our files. ...The following is the analysis of the moneys received
from the sale of the Moclips Unit: TABLE OMITTED SEE ORIGINAL ...Our
present system of cost accounting in the Forestry Branch was not
installed until the fiacal year 1926, and while the records of the above
sale are accurate before that date, they were not kept in the present
manner prier to July 1, 1925. The above total includes the cost of the
activities of the Moclips Unit proper only, and no proportionate where
of the expense of the Hoqiuan Agency office, office equipment and
supplies etc., has been included, and with the exception of one small
item, fire fighting expense, including equipment, has not been charged
against the unit. DOCUMENT OMITTED SEE ORIGINAL ...The entire Moclips
Unit was not logged by the original contracters. The Hobi Timber
Company, purchasers of the Creek Unit, logged about 2,000 acres of the
Moclips Unit, and the H. R. Smith Lumber and Shingle Company, parchasers
of the Pt. Crenville Unit logged about 400 acres of the Moclips Unit.
...In case the Office would desire any additional information concerning
this Unit, we will try and obtain the same from our records. ...
............Very respectfully
HES-004-0929-0933
HES-004-0929-0933
IIB30.1
COMM OF INDIAN AFF
270207
CORRESPONDENCE
STEERS, H B ; TAHOLAH INDIAN AGE
HES-004-0934-0942A
HES-004-0934-0943
IIB27.1
COMM OF INDIAN AFF
270207
CORRESPONDENCE
SAMS, W B ; TAHOLAH INDIAN CO
DOCUMENT OMITTED SEE ORIGINAL ( ILLEGIBLE DOCUMENTS ) DOCUMENT OMITTED
SEE ORIGINAL ............Introduction. ...The contract for the sale of
the Moclips Logging Unit in the quinalelt Indian Reservation, which was
approved by the Assistant Secretary of the Interior on July 16, 1920.
provides for the re-adjustment of stumpage prices on the first day of
April in the years 1924 and 1927. ...Under date of February 11, 1924, a
report concerning the re-adjustment to be effective April 1, 1924, was
submitted to the Office, and the following stumpage prioes were
designated to be effective in the Moclips Unit on April 1, 1924. TABLE
OMITTED SEE ORIGINAL ...No increase in the price of Cedar Poles and
Douglas Fir Pilling was made on April 1, 1924. ...Because of
unfavorable market conditions, especially with regard to Hemlock, the
price of Hemlock was reduced by the Commissioner to the original prioe
bid (i.e.90) under date of July 18, 1925. The stumpage prices now in
effect are as follows: White Pine $3.00; Cedar $3.60; pruce $3.10;
Douglas Fir $3.10; and Hemlock $.90. ...Up to and including December
31, 1926, the following amounts of timber had been removed from the
Moclips Logging Unit: DOCUMENT OMITTED SEE ORIGINAL ...Indetermining
the stumpage rates to be designated for all timber scaled during the
three year period beginning April 1, 1924, the average values of logs at
mills operating in Grays Harbor during the three years directly
preceding January 1, 1924, will be compared with the values of logs as
stipulated in the proceding paragraph as basic values, and the cost of
such operations during the said three years will be compared with the
cost of such operations during the three year period proceding January
1, 1920, for the purpose of asoertaining, so far as is practicable,
whether there has been generally in the lumber industry in the specified
regien an increase in the margin of profit on logging and manufacturing
operations during the three year period directly preceding January 1,
1924. ...Any advance in stumpage prices prescribed by the commissioner
for the three year period beginning April 1, 1924, shall not exceed
fifty percent of the difference between the average value of logs of
that specie at mills as stipulated above and that for the samespecies
during the three years directly proceding January 1, 1924. And further,
the commissioner of Indian Affairs shall have the right on dates set for
the readjustment of the saw timber stumpage prices, to readjust the
stumpage prices to be paid under this contract for Cedar Poles, Douglas
Fir Piles, Douglas Fir, Cedar and railroad ties of other species, and to
increase the stumpage on Cedar Poles not more than one half cent per
linear feet, to increase the stumpage price on Douglas Fir piles not
more than one fourth cent per linear foot, to increase the price on
railroad ties not more than two cents each. In the discretion of the
Commissioner a reduction in the stumpage price of any species may
subsequently be made to corrent any error or to afford the purchaser
relief from a market depression that deprives the purchaser of a
substantial margin of profit: PROVIDED THAT the stumpage price of no
species will ever be reduced below the rute bid for the initial period
of the contract. ...For the period of the contract beginning April 1,
1927, a readjustment of stumpage prices may be made in the same manner
as for the period beginning April 1, 1924, except that the prices
determined and need for this period will be considered as the stipulated
prices that are to be compared with the average prices obtaining during
the succeeding period. the averages for the period 1924-25-26. The
information as to the Grays Harbor Log Market has been compiled in
exactly the same way, and from the same firms (where ever possible) for
the years 1917-1927 inclusive, and it is believed that this information
is authentio and reliable. TABLE OMITTED SEE ORIGINAL ...Thus in
comparing the two three year periods, it is found that Spruce and White
pine logs have a higher value in 1924-26 than they had in 1921-23; and
that Fir, Hemlock, and Cedar logs have a lower value. The total amount
of Fir, Cedar, and Hemlock (which show a decrease) removed from the
Moclips Unit during the three year period 1924-26, is greatly in excess
of the amount of Spruce and White Pine (which show no increase) removed
during the same period, so that the 1924-26 log market, as it effects
the Moclips Logging Unit, has been lower in price in thed period 1924-26
than it was during the period 1921-25--as follows: ............Weighted
value of logs removed from the Moclips Unit During the three year pariod
1924-26 as compared with tthe period 1921-23. ... TABLE OMITTED SEE
ORIGINAL ...This computation shows that the logs removed from the
Moclips sale area were worth on the average twenty eight cents ($.28)
less per thousand fact during the three year period 1924-26 than they
were during the three year pariod 1921-23. ...In view of this
condition, no increase in the stumpage prices obtaining on the Moclips
Unit many be made effective of April 1, 1927, and it is therefore
recommended that the same prices which are now in effect continue
subsoquent to April 1, 1927, namely: TABLE OMITTED SEE ORIGINAL
DOCUMENT OMITTED SEE ORIGINAL
HES-004-0934-0942B
HES-004-0934-0943
IIB27.1
COMM OF INDIAN AFF
270216
CORRESPONDENCE
BURKE, CHASE H
Mr. William B. Sams, ...Supt., Taholah Agency. Dear Mr. Sams: ...A
careful consideration of all data available, including a report of
February 7, 1927, by Mr. Henry B. Steer, in which you concur, indicates
that me increase in stumpage prices should be made on timber within the
Moclips Unit on April 1, 1927. ...... ...You will accordingly advise the
Aloha Lumber Company that the prices now being paid for timber within
that Unit will remain effective for the three-year period beginning
April 1, 1927. ............Very truly yours, .........(Signed) Chas. H.
Burke .........Commissioner
HES-004-0943-0943
HES-004-0934-0943
IIB27.1
SAMS, WILLIAM B ; TAHOLAH AGENCY
240211
CORRESPONDENCE
STEER, HENRY B ; QUINAULT INDIAN RE SAMS, W B ; QUINAULT INDIAN RE
............REPORT ............on READJUSTMENT OF STUMPAGE PRICES
............on ............the .........MOCLIPS LOGGING UNIT
............in ............the QUINAIELT INDIAN RESERVATION
............effective ............April 1, 1924. February 11, 1924
............Supervicor of Forests at Large DOCUMENT OMITTED SEE ORIGINAL
............REPORT ............REPORT ............on READJUSTMENT OF
STUMPAGE PRICES ............on ............the ......MOCLIPS LOGGING
UNIT ............in ............the QUINAIELT INDIAN RESERVATION
............effective ............April 1, 1924. February 11, 1924.
............Supervisor of Forests at Large ............PREFACE
...Attention is directed to paragraph #61 of the General Timber Sale
Regulations, which are attached to and made a part of the content
governing the sale of the Moclips Unit. This paragraph is in part as
follows: ......"All the records of the purchaser and his subcontractors
......pertaining to this logging operation and the manufature ......and
sale of the products thereof will be open to inspection ......at any
reasonable time by the officer in charge of any ......other officer
designated by the Commissioner of Indian ......Affairs, and the
information so obtained WILL BE REGARDED ......AS
CONFIDENTIAL.........." ...Information contained in this report
concerning opeations other than those on the Quinaielt Indian
Reservation was obtained by my given promise that the same would be
treated confidentially by myself and by the Commissioner of Indian
Affairs to whom I stated the information would be submitted. Sample
letter is attached. ............Supervisor of Forests at Large
............List of Exhibits. ...1. Nicholson letter giving % of
grades of Fir and Spruce ...2. Tabulation of log prices on Grays Harbor
1921-23 inc for ...... for Fir, Spruce, Hemlock and Cedar. ...2a. Same
for White Pine ...3. Firm #1 logging costs. ...4. Firms 2, 4, and 5
logging costs. ... Firm 4 logging costs by three year periods. ...5.
Firm #3 logging costs. ...6. Aloha Lumber Company operating statement.
...7. M.H. Smith Lumber and Shingle Company operating statement.
...8. Hobi Timber Company operating statement. ...9. Tabulation of
log prices on Grays Harbor 1917-1919 inc. for ......Introduction and
Contract Provisions regarding readjustment. ...The contract for the
sale of the Moclips Logging Unit on the Quinaielt Indian Reservation,
which was approved by the Assistant Secretary of the Interior on July
16, 1920, provides for the readjustment of stumpage prices as follows:
........." For each of the three year periods of the contract term
............beginning April 1, 1924 and April 1, 1927, such prices
............for each species as shall be fired by the Commissioner
............of Indian Affairs in the manner hereinafter described. "
........." For purposes of stumpage price readjustments by the
............Commissioner of Indian Affairs at the close of the first
............period of the contract as specified above, it is hereby
............stipulated by the Superintendent and the purchaser that
............the average value of the following standard log grades
............as recognized generally in Grays Harbor markets for the
............three year period ending January 1, 1920, have been as
............follows; TABLE OMITTED SEE ORIGINAL
............Indertermining the stumpage rates to be designated for
............all timber scaled during the three year period beginning
............April 1, 1924, the average values of logs at mills
............operating in Grays Harbor during the three years
............directly perceeding January 1, 1924, will be compared
............with the values of logs as stimpulated in the preceeding
............paragraph as basic values, and the cost of such
............operations during the said three years will be compared
............with the cost of such operations during the three year
period preceding January 1, 1920, for the purpose ............of
ascertaining, so far as is practicable, whether there ............has
been generally in the lumber industry in the specified
............region an increase in the margin of profit on logging and
............manufacturing operations during the three year period
............directly preceeding January 1, 1924. ........." Any advance
in stumpage price prescribed by the ............Commissioner for the
three year period beginnign Arpil 1, ............1924, shall not exceed
fidty percent of the difference ............between the average value of
logs of that specie at ............mills as stipulated above and that
for the same species ............during the three years directly
preceeding January 1, ............1924. And further, the Commissioner
of Indian Affairs ............shall have the right on dates set for the
readjustment of ............the saw timber stumpage prices, to readjust
the stumpage ............prices to be said under this contract for Cedar
Poles ............not more than one half cent per linear foot, to
increase ............the stumpage price on Douglas Fir piles not more
than ............one-fourth cent per linear foot, to increase the price
............on railroad ties not more than two cents each. In the
............discretion of the Commissioner a reduction in the
............stumpage price of any psecies may subsequently be made
............to correct any error or to afford the purchaser relief
............from a market depression that deprives the purchaser
............of a substantial margin of profit; PROVIDED THAT the
............stumpage price of no species will over be reduced below
............the rate bid for the initial period of the contract. "
........." Notice of the new schedules of prices shall be given
............the purchaser by letter not later than the first day
............of March on the years 1924 and 1927. " DOCUMENT OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL .........Comparison of conditions on the Moclips Unit with
those ............ontaining generally in Graves Harbor. ...The records
of the Taholah Agency show that up to the end of the calendar year 1923,
56,047,250 feet of timber, of various species, had been cut and removed
from the Moclips Unit. A comparison of the percent of different species
logged from the Moclips Unit with the percent of species obtaining
generally in the Grays Harbor market is made below. (Grays Harbor Market
figures taken from Exhibit 42). TABLE OMITTED SEE ORIGINAL ...The
principal commercial species of Grays Harbor is Douglas Fir, as is shown
by the feet that 60; of the log sales of the past three years are of
that species. The Mooclips Unit is primarily a Cedar Unit, and as such
is not average of Grays Harbor. ...At the bottom of exhibits 42 and 23,
I have listed the logs cut from the Quinaielt Indian Reservation by
Grades and species for the years 1922 and 1923. This data is taken from
exhibits 6, 7, and 8. As stated above it is impossible to include the
Cedar logged by both Smith and Aloha, since each of these concerns
manufactured a large part of their Cedar logs at their own mills. I
have shown the Cedar logged by Hobi, however. I did not take Aloha's
figures DOCUMENT OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL ...As a
result of my investigation of log prices in the Grays Harbor District
for the years 1917-1919, in which I went back to those years with all
concerns where it was possible, I am convinced that the basic prices
given in the contract which were not obtained from any amounts of timber
whatsoever, but were compiled largely from the prices listed in the
"Timberman" from month to month" are too law and result in showing
fictitious increases in log values when they are compared with actual
sales for 1921-22 and 23. ...I have also shown that the percentage of
different grades of Spruce and Douglas Fir used in the contract do not
represent actual conditions as obtained in the Moclips Units.
...Because of the fact that the increases indicated early in this report
are out of the question and would doprive the purchaser of the
substential margin of profit to which he is entitled, I consider it fair
and just to discard the basic prices given in the contract and use in
their place figures of actual sales in Grays Harbor for the years
1917-1919 inclusive. DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ......3. The Cedar in of poorer
quality than the average. .........Hobi's 1923 average price was $1864.
The average on .........Grays Harbor for 1923 was $21.47. ......4.
The Aloha Lumber Company for 1923 shows a freight rate .........to the
log market in Hoquiam of nearly $3.00 per M. This .........is
considerably above the average on Grays Harbor. ...While there is not a
large amount of White Pine, proportionately speaking, in the Moclips
Unit, yet this species is now being sold on grade in the log market at
prices which have substantially increased during the last three years.
While a substantial increase in the stumpage price of this species will
not be felt to any great extent by the operator, it will be felt by
individual indians for White Pine is generlly found around Cedar swamps
among poor timber of other species and an increase in the price of White
Pine will mean quite a little to individual Indians owning poorly
timbered allotments. ...The Hemlock cut from the Moclips Unit is of
average qualify and commands a price equal to that obtained generally in
this district. I anticipate an increase in the price of Hemlock logs
and lumber during the next three years. ...The Cedar market is "off"
and has been so for some time. Were it not for the export trade Cedar
operations would generally be shut down as there is no money in
shingles. ...In concluding this part of the report, it seems as though
there were conditions other than those enumerated in the contract which
should in all fairness be taken into consideration in this readjustment.
I have endeavored to give a few of these conditions above. DOCUMENT
OMITTED SEE ORIGINAL ............C O P Y ............DEPARTMENT OF THE
INTERIOR ............UNITED STATES INDIAN FIELD SERVICE
............COLVILLE INDIAN AGENCY ............KESPELEW, WASHINGTON Mr.
Henry B. Steer Hoquiam, Washington Dear Henry: ...I have been unable to
find anymore data covering the average you call for on the Moclips
Logging Unit, but believe that I can give you what other information I
have off hand. I have been out for the past week or I would have sent
this to you sooner. There is listed below a table showing prices and
percents that I have used in compating the average log grdes and also a
table showing does percents of grades that were largely used in deciding
on these grades. ............DOUGLAS FIR NO. 1 TABLE OMITTED SEE
ORIGINAL ............SPRUCE TABLE OMITTED SEE ORIGINAL ...I have at hand
a memorandum covering some figures which ostimate the percent of log
grades on fir. These are as follows: ............DOUGLAS FIR NO. 2
TABLE OMITTED SEE ORIGINAL ...This is the scale in 1913 1914 and 1915 of
the Puget Sound Log Scaling & Grading Burean. Sprace composes only 3%
of the total out for this period so there are no grade figures given.
...Inasmuch as there had been no timber cat on Quinault prior to the
Moclips Sale, there was no opportunity to arrive at any percent grade
values based on those operations and it was necessary to assume some
figures covering percents of verious grades and thus arrive at an
average log value for each operation. Thes percents were largely
assumed and there is no real basis (amount of stumpage) from which to
verify these percents. The amount of stumpage for the various grades
could be of value only to arrive at the peramount of stumpage would be
of no importance. If you have any data along this line I would like to
hear from you. ...At the time my report was submitted to the office it
was my idea that a good deal of fir and soruce within this unit was of
fair quality but this may not be born out as a result of the cutting
operations that have been completed since that time. ...While this
information is indefinite, I trust that it will at least help you out in
arriving at some conclusion. As to the prices listed, they were not
obtained from any amounts of timber whatsoever, but were compiled
largely from the prices listed in the "Timberman" from month to month.
...With best wishes for the holiday season ............Sincerely
............Nelso O. Nicholson TABLE OMITTED SEE ORIGINAL
............FIRM #1 ............LOGGING COSTS TABLE OMITTED SEE ORIGINAL
............LOGGING COSTS ............FIRM #2 TABLE OMITTED SEE ORIGINAL
............FIRM #3 ............COMPARATIVE COST OF LOGGING HACH YEAR TO
DATE TABLE OMITTED SEE ORIGINAL ............COPY ............Aloha
Lumber Company ............Aloha, Wash. Mr. Hanry B. Steer, Supervisor
of Forests, Taholah Indian Agency Hoquiam, Wash. Dear Sir: ...In
accordance with your letter of the 4th. inst. we enclose herewith a
comensod report of our logging costs and Sales for the periods, 1917,
1918, 1919 and 1921, 1922, 1923. ...Would say that this report is based
on our anditors reports which is the only method which we had for
arriving at our figures for the first period, as most of the other
records pertaining to this matter were destroyed in our fire which
occurred during 1921. ...For the last period however we were able to
amplify our report with more details. ...Trusting that this report will
assist you, we remain. ............Yours very truly ............ALOHA
LUMBER COMPANY ............By W. H. Dole, V. Pres. ............SUMARY
OF LOG OPERATIONS ............1917 to 1919 Inclusive ............and
............1921 to 1925 Inclusive. TABLE OMITTED SEE ORIGINAL
............DETAIL OF 1925 LOG SALES. ............C O P Y
............M. R. SMITH LUMBER & SHINGLE CO. ............SEATTLE, WASH.
Mr. Henry B. Steer, ...P. O. Box 676, ......Hoquiam, Wash. Dear Sir:
...Enclosed find analysis of our logging operation for the year 1923
which we trust gives the information you want. ...With reference to our
profit, this is only a trifle over 6% on the money invested which, of
course, includes timber, equipment, inventory of supplies and logs and
money due us on logs. This figure of profit is really a little higher
than the actual facts warrant: for instance, we charged our mill at
Moclips an average of $15.97 per II for Cedar, figuring that this was
what the logs would not us on Greys Harbor provided we could get the
minimum on the car. With the logs at this figure, our mill lost
$7,000.00 in 1923, and as you know, we cannot get half the minimum on
the cars with the class of cedar we saw at Moclips. Therefore, we would
have had to pay double freight on the 3,474,186' sawn at Moclips if we
had shipped it in to tidewater and that would have just about offset the
$7,000.00 which the mill lost, and in reality should be deducted from
our logging profit. We built a mill at Moclips only because of the fact
that we have so much junk Cedar that we can't afford to ship. The
Woodlawn Mill & Boom Company is twice as big a mill as ours at Moclips
and was recently sold for about half as much as ours cost. Owing to the
fact that there are so many which can be bought at about onethird the
present cost of duplication, it doesn't pay to build a new shingle mill
anywhere except when you have a special condition like we have at
Moclips. It is much easier to operate mills on tidewater and therefore,
when anyone builds an inland mill he should charge the mill only what
the timber would not him if he had shipped to tidewater. This is
particularly true when you build a new mill for the particular purpose
of handling the output of a logging camp, or to be more exact, that
portion of the output which could not be sold elsewhere to advantage.
...With further reference to building costs, while the men loafed enough
on the job at Moclips when they were building our mill, the same as they
do everywhere else, the Appraisal Company shows a slightly higher value
than our book value. Owing to the fact that there are so many tidewater
mills which can be bought for about one-third the cost of duplication,
partly due to building costs being higher than several years ago, and
partly to desire of everyone to get out of shingle business. The lower
carrying charges, that is, interest and depreciation on such mills
Sheet. #2. is just about enough to offset the freight on logs from the
camp to tidewater. While we are going into detail on this subject
considerably, yet I believe the information is worth considering.
...Another feature about our so-called profit, to which I wish to call
your attention, is the fact that we charged only $2,692.71 of our
Seattle office expense, which includes salaries of Mr. Thompson and
myself, as well as anyone else employed here. As you know, we do no
bookkeeping at Moclips except keeping the time, and the amount we change
to the logging operation does not any more than cover the actual cost of
bookkeeping time in this office, if that much. In addition to this we
would have a right to charge 50[ per M on all logs sold thru this
office, which, of course, does not include those sold by Mr. Lindsall on
Greys 'harbor. The total quantity of logs we sold thru this office was
about 9,000.000' and we got enough more than 50[ per M above the going
market on grays Harbor to offset the difference in freight. The reason
we montion 50[ per M is because that is the figure charged by Mikeljohn
who operates a Sales Burean, which I believe is called the Puget Sound
Log Selling Bureau. ...Another item which calls for explanation is the
small amount of depreciation directly charged to logging operation. We
figure 50[ per M depreciation but as the railroad contractors paid us
$650.00 per month as rent on shovels, we credited this up to our logging
equipment as deprociation, and only charged the balance to logging
operations. This, of course, figures out the same in the long run
because when we finish up on our present spur, which sould be in about
12 or 14 months, we will adjust the cost per M on spurs. ...On the
whole, we favored our logging operation in our accounting, because it
was a new branch of the business and we didn't want to discourage the
stock-holders and directors of the Smith Shingle Company any more then
necessary. ...With further reference to our mill, you undoubtedly
appreciate the fact that our operation is different from some, such as
Hobi's, because they have a class of timber which loads well on the
cars, enabling them to get a minimum in most cases as well as to cut
down their logging expenses considerably. Regular shaped logs can
always be logged, loaded and shipped more economically than irregular
shaped ones like ours. ...You will note that we used only the stumpage
cost on Point Grenville Unit. We have a few fee patents which cost us
about the same average basis, so we are figuring the atumpage the same
on them. We out several million feet of the Aloha timber on which the
stampage was $3.60 for Cedar, $3.10 for Spruce and 90[ for Hemlock, and
that, of course makes Sheet #5. the average cost a little higher. If
you want us to, we can give you the average cost of stumpage but as I
thought you preferred to have these costs based only on the Point
Grenville Unit, have made the statement up accordingly.
............Yours truly, ............M. R. SMITH LUMBER & SHINGLE CO
............BY Paul R. Smith ............ANALYSIS LOGGING OPERATION
POINT GREENVILLE UNIT-1923 TABLE OMITTED SEE ORIGINAL Page 2, M. R.
Smith Lbr. & Shingle, Logging Costs. TABLE OMITTED SEE ORIGINAL Page 3,
M. R. Smith Lbr. & Shingle Co. Logging Costs. TABLE OMITTED SEE
ORIGINAL ............HOBI TIMBER COMPANY ............Prices obtained for
logs by species and grades - year, 1923 ...... ............(F.C.S.
Mills) TABLE OMITTED SEE ORIGINAL ............HOBI TIMBER COMPANY TABLE
OMITTED SEE ORIGINAL ............HOBI TIMBER COMPANY ............PROFIT
AND LOSS STATEMENT ............January 1, 1923 to December 31, 1923
TABLE OMITTED SEE ORIGINAL
HES-004-0944-0984
HES-004-0944-0984
IIB24.1
COMM OF INDIAN AFF
441106
CORRESPONDENCE
HAUGE, A G ; TAHOLAH INDIAN AGE LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
MEMORANDUM SELECTING CUTTING - SAMPLE PLOT - 4 ACRES N. P. TRAIL UNIT,
QUINAIELT INDIAN RESERVATION Allotment No. 138 - Glen Capoeman Area
Logged June 1943. Plot Established Sept. 1944 By A.O. Hauge, Forest
Supervisor & F. Branson, Scaler OBJECT ... ...This sample plot was
established primarily for the purpose of study of the effects of logging
end of obtaining information of the extent of windthrow, mortality, and
establishment and development of reproduction and growth rate, of the
residual stand. LOCATION... ...The sample plot was established within
the N. P. Trail logging unit in an area selectively cut and tractor
logged. The location is within the Allotment No. 158, Glen Campeman,
and is in the NE/4 NW/4, Sec. 25, T22N, R12W, W.M., 4 acres square. As
shown on the accompanying plot, the easterly corner is at the right
angle turn of the main truck road, and the boundary lines are at a 45
degree bearing from the cardinal directions. Stake markers have been
established at each of the 4 corners. TIMBER TYPE ...This plot is
within a Sitka spruce river bottom type of timber, and the sample plot
was chosen as being representative of the residual stand. The original
stand consisted of a rather open stand, of trees growing individually or
in groups and the age and diameter classes varied from thrifty young and
medium age trees to large over mature and defective unmerchantable
trees. The timber is limby with a high percentage of cork rot in the
mature and over mature trees. There are very few trees in the pole
classes (under 14" D.B.H.). MARKING FOR CUTTING ...Due to the type of
stand, marking was on a tree relocation plan of cutting, so as to leave
thrifty individual trees or groups of the thrifty younger age classes.
As was typical of this spruce stand many of the larger nature and over
mature trees were not marked because they were unmerchantable. DOCUMENT
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ............UNITED
STATES .........DEPARTMENT OF THE INTERIOR ............OFFICE OF INDIAN
AFFAIRS ...FOREST TOPOGRAPHERS LARGE MAP SHEET MAP OMITTED SEE ORIGINAL
HES-004-0985-0988
HES-004-0985-0988
IIS44.6
; QUINAULT INDIAN RE
440724
CORRESPONDENCE
HAUGE, A G ; TAHOLAH INDIAN AGE LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
............Taholah Indian Agency ............Hoquian, Washington
............July 24, 1944 MEMORANDUM TREE SELECTION CUTTING - SAMPLE
PLOT HENRY CULTEE ALLOTMENT #496 - QUINAIELT LAKE SALE AREA 2 CH. X 20
CH. 4 ACRES Establishment of Plot ...Under a plan of selection cutting
of timber on some of the areas of the Quinaielt Indian Reservation
selection cutting was done in 1937 on the Henry Cultee allotment. The
area logged was 88 acres. Caterpillar tractors were used in logging.
In August 1938 a sample plot was established on the cut over area as a
basis of study of the residual stand, as to growth, mortality, tree
diseases, windthrow, etc. However, as the windthrow hazard is very high
in the coastal strip of timber, the securing of data as to windthrow
after cutting is one of the primary reasons for establishment of this
plot. Topography ...All of the area is flat with a slope of not over 2
to 3 per cent to the south. Soil ...... ...The soil consists of coarse
gravel or a combination of gravel and clay with a surface layer of humus
and duff derived from decayed vegetative matter. Timber Type and Extent
of Cutting ...The timber is a thrifty stand of second growth Douglas fir
with unifrom coverage on the entire area. There is in addition a few
scattered old growth Douglas fir some of which were so rough and limby
that they were not considered merchantable. The stand per acre on the
sample plot that was established was 22,400 feet and the DOCUMENT
OMITTED SEE ORIGINAL Henry Cultee Allotment #496 Reproduction ...On the
major portion of the area of this allotment there is a dense vegetative
ground cover predominately salal which has prevented the satisfactory
establishment of reproduction. Most of the mineral soil exposed in the
skid roads is taken up by salal, bracken forn or alder to the exclusion
of reproduction. Other plants included in the vegetative ground cover
are red huckleberry, blackberry and salmon berry. In addition to alder
there are vine maple and cascara trees. ...The slash resulting from
logging was not burned and no forest fire has burned over the area.
............Respectfully submitted, ............A. G. Hauge,
............Forest Supervisor APPROVED: George P. LaVatta,
Superintendent ............SELECTIVE LOGGING SAMPLE PLOT TABLE OMITTED
SEE ORIGINAL ............SELECTIVE LOGGING SAMPLE PLOT TABLE OMITTED SEE
ORIGINAL ............UNITED STATES .........DEPARTMENT OF THE INTERIOR
............OFFICE OF INDIAN AFFAIRS .........FOREST TOPOGRAPHERS LARGE
MAP SHEET TABLE OMITTED SEE ORIGINAL
HES-004-0989-0994
HES-004-0989-0994
IIS44.5
440721
CORRESPONDENCE
HAUGE, A G ; TAHOLAH INDIAN AGE LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
............TAHOLAH INDIAN AGENCY ............Hoquien, Washington
............July 21, 1944 MEMORANDUM TREE SELECTION CUTTING - SAMPLE
PLOT SCOTT CLARK ALLOTMENT #180 QUINAIELT LAKE SALE AREA. TRACTOR
LOGGED 1937 PLOT 2 CH. X 20 CH. - 4 ACRES. Establishment of Plot ...The
Scott Clark allotment in the Quinaielt Lake sale area is within a
selectively cut area logged in 1937. The area was tractor logged. The
sample plot was established in August 1938. TOPOGRAPHY ...The area is
flat with a slight slope to the south. Soil ...... ...The soil consists
of coarse gravel or a mixture of gravel and clay. Timber Type ...The
timber consisted of an over story of large, nature Douglas fir with an
understory of hemlock. On the sample plot the original stand per acre
was as follows: Douglas fir - 103,110 ft., hemlock - 22,580 bd. ft.
After cutting the residual stand per acre was: Douglas fir - 1,465 ft.,
hemlock 17,230 ft. The percentage cut by volume was 84.7 per cent or
106,530 ft. B.M. per acre. ...... Windthrow Since Logging ...Due to the
fact that the timber within the coastal strip is subject to very high
wind velocities, one of the major purposes of the establishment of this
sample plot is the determination of the extent of windthrow since
cutting. DOCUMENT OMITTED SEE ORIGINAL Scott Clark allotment #180
condition is doubtful and the stand is left open to additional
windthrow. Reproduction ...From a study of the present status of
reproduction, there is established a fair stocking, chiefly hemlock with
scattered representation of Douglas fir. The ground cover is fairly
open which leaves an opportunity for the establishment of reproduction.
The chief species of plants in the vegetative ground cover are the
following: Salal, bracken forn, red and blue huckleberry, solmon berry,
and blackberry. The slash was not burned after logging and no forest
fire has burned over the area. ............Respectfully submitted,
............A. G. Hauge, ............Forest Supervisor Approved: George
P. LaVatte, Superintendent .........TREE SELECTION CUTTING - - SAMPLE
PLOT TABLE OMITTED SEE ORIGINAL .........TREE SELECTION CUTTING - -
SAMPLE PLOT TABLE OMITTED SEE ORIGINAL ............UNITED STATES
.........DEPARTMENT OF THE INTERIOR ............OFFICE OF INDIAN AFFAIRS
.........FOREST TOPOGRAPHERS LARGE MAP SHEET TABLE OMITTED SEE ORIGINAL
HES-004-0995-1000
HES-004-0995-1000
IIS44.4
440721
CORRESPONDENCE
HAUGE, A G ; TAHOLAH INDIAN AGE LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
............TAHOLAH INDIAN AGENCY ............Hoquiam Washington
............July 21, 1944 MEMORANDUM TREE SELECTION CUTTING - SAMPLE
PLOT ANNIE & LEDA CLARK ALLOTMENTS #177 & 178 QUINAIELT INDIAN
RESERVATION QUINAIELT LAKE AREA 2 CH. X 20 CH. - 4 ACRES Establishment
of Plot ...In accordance with a plan of selective cutting on certain
timber type areas within the Quinaielt Lake sale, selective cutting was
done on the Annie and Leda Clark allotments #177 and #178. The area was
tractor logged. In August 1938 a sample plot was established on the cut
over area as a basis of study of the residual stand as to windthron,
mortality, growth rate, tree diseases, etc. Topography ...The area is
flat with a very moderate slope toward the Quinaielt River to the south
and southwest. Soil ...... ...The soil consists of course gravel or a
mixture of gravel and clay with a top layer of hamus and duff derived
from vegetable matter. Timber Type and Extent of Cutting ...The timber
consists of a stand of scattered old growth Douglas fir on a part of the
area with a uniform distribution of thrifty seeded growth Douglas fir
and hemlock. While there is some merginig of the Douglas fir and
hemlock each species is a district area. There is in addition a very
limited amount of spruce, cedar and Amabilis fir. The sample plot is in
the center of the cutting area. Annie and Leda Clark Allotments #177
and #178 ...The total original stand on the sample plot was 37,745 ft.
per acre, and the cut was 14,775 ft., or 39 per cent. All three cut on
the sample plot were second growth. Windthrow Since Logging ...Due to
frequent high wind velocities attained within the coastal strip areas,
one of the chief purpose of the establishment of the sample plot area
was to determine the extent of windthrow since logging. While the
sample plot is within the center of the cut over area, the windthrow
record on it represents a fair sample of the extent of windthrow for the
entire Douglas fir type area. As shown on the accompanying plat,
however, there is considerable windthrow in the hemlock type. This
windthrow area is along the edges next to the clear cutting areas on the
south and east and is progressing in on the areas indicated by #1 and
#2. As indicated within area #1, the windfall is toward the outer edge
of the cutting the opposite direction from which it might have been
expected.... ...The windthrow loss since cutting on the sample plot is
as follows: TABLE OMITTED SEE ORIGINAL ...By years the percentage of
windthrow is as follows: TABLE OMITTED SEE ORIGINAL
............"Chiefly from storm of December 21, 1940. ...In reference
to the selective cutting of this area, the windfall areas as indicated
on the plat, are adjacent to clear cutting areas where exposed to the
full force of the winds. This windthrow loss, however, appears confined
to the hemlock type. As the second growth trees cut were not large and
had comparatively Annie & Leda Clark Allotments #177 & #178 small
crowns, the damage done in falling and skidding is moderate and much
less than in the selectively logged cedar-hemlock types where the large
cedar trees were cut. Reproduction ...In much of this area due to a
dense covering of vegetative growth, predominately salal, little
reproduction has been started since logging. On the outer fringes where
it is opened up to sunlight and on portions where the ground cover is
less dense, now reproduction is becoming established. The new
reproduction is chiefly hemlock. The ground cover consists of salel,
sword and breaken ferns, blue and red huckleberry, elder-berry,
blackberry and salmon berry, devils club, carix and other associated
species. ...The slash resulting from logging has not been burned and
the area has not been burned over by forest fires. Within the cutting
area there is a very low fire hazard at the present time.
............Respectfully submitted, ............A. G. Hauge
............Forest Supervisor APPROVED: George P. Lavatte,
Superintendent TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
DOCUMENT OMITTED SEE ORIGINAL
HES-004-1001-1006
HES-004-1001-1006
IIS44.3
440720
CORRESPONDENCE
HAUGE, A G ; TAHOLAH INDIAN AGE LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
.........TAHOLAH INDIAN AGENCY ............Hoquiam, Washington
............July 20, 1944 MEMORANDUM TREE SELECTION CUTTING - SAMPLE
PLOT SALAKIKE ALLOTMENT #1345 - QUINAIELT INDIAN RESERVATION W/2 NW/4
Sec. 16 T23 M R11W., W.M. 4 CH. X 10 CH. 4 ACRES Establishment of Plot
...The portion of the Salakike allotment located north of the Olympic
Highway, an area of approimately 30 acres was logged on a tree selection
plan in 1937. The area was tractor logged. In August 1938, a sample
plot was established on the cut-over area as a basis of study of the
residual stand as to growth, mortality, tree diseases, insect
infestation, windthrow, etc. Totography ...The area has moderast slopes
with s dividing ridge in the center extending in a northeasterly and
southwesterly direction. The dreinage on the east side of the ridge is
to the northeast and on the west side is to the northwest. Soil ......
...The soil consists of course gravel or a mixture of gravel and clay.
In the creek bottom there is a top surface of hamus and duff. There is
no swamp area and the creek bottom is all timbered. Timber Type and
Extent of Cutting ...The timber is a mixed cedar-hemlock type with old
growth cedar and a representation of younger age classes of cedar,
hemlock, white pine and Amabilis fir. In tree selection cutting the
larger old growth cedar trees made up very nearly all of the cut.
...The percentage cut by volume one thw sample plot area was 68 per
cent. The cut per acre was 30,000 ft B.M. Salakike Allotment #1345
Windthrow Since Logging ...Due to the fact that the high wind velocities
that occur in this region subject the timber to a high windthrow hazard,
one of the major purposes of the study of this sample plot is the
determination of the extent of windthrow. ...As listed in the data on
the sample plot area there has been considerable windfall since cutting.
The loss to date ty per cent is as follows: TABLE OMITTED SEE ORIGINAL
...Loss all species - 53 per cent of the residual stand. By years the
percentage of windthrow is as follows: TABLE OMITTED SEE ORIGINAL ...As
will be noted the most loss is recorded as during the year 1941. This
recording was made in May 1941, and very nearly all of the windfall as
listed was done in the December 1940 storm. In connection with the
study of windthrow on cut-over areas of this region, there is being
forwarded a record of the highest wind velocities that have occurred
each year since the year 1926. ...While the storm of December 1940 was
from a southerly direction, in the case of the Salakike allotment
cutting area, the direction of the wind appeared to be from the
southwest and followed down the course of the creek and along the
contour of the adjacent slope area. The windfall on the area from the
ridge, indicated on the accompanying map, west to the highway was
moderate. ...As indicated in the pictures accompanying this memorandum,
the sample plot area now presents a very ragged appearance. The tops of
many of the trees have Salakike Allotment 1345 been broken off and many
of the trees have bark and root damage caused either in felling, by
tractors, or by tractors, or by windfalls since logging. Most of the
cedar trees are spike topped with sperse crowns and to date there is
little or no indication of accelerated growth due to release by cutting.
...Due to the fact that 68 per cent by volume was cut on the area
reserved for the sample plot, it is indicated that many of the residual
trees would be damaged and are a high hazard as to windthrow. From
weather bureau records it is apparent that wind velocities such as was
reached in the December 21, 1940 storn occur at intervals of a few
years. Reproduction ...At the present time a study of the stocking of
reproduction shows that there is a fair representation of reproduction
coming in since the logging. The reproduction consists principally of
cedar and hemlock. The vegetative ground cover is fairly open leaving
an opprtunity for the establishment of reproduction. The following are
the principal plants represented: Salas; huckleberry, red and blue;
ferns, bracken and sword; salmon berry and blackberry; carix and a
limited representation of othr plants. ...The slash resulting from
logging was not burned. No forest fires have occured on the area since
cutting. ............Respectfully submitted, ............A. G. Hauge
............Forest Supervisor APPROVED: George F. LaVatta,
Superintendent .........SELECTIVE LOGGING SAMPLE PLOT ......Salakike
Allotment 1345 - Quinaielt Indian Reservation ...Area 4 a. 4 ch. x 10
ch. Tractor 'logged 1957. Plot. ...Estb. Aug. 1938 .........Minimum
Diameter 14" D.B.H. TABLE OMITTED SEE ORIGINAL ............SELECTIVE
LOGGING SAMPLE PLOT ...Salakike Allotment #1345 - Quinaielt Indian
Reservation .........Windfall in Volume Ft. B.H. & Per Cent TABLE
OMITTED SEE ORIGINAL ............UNITED STATES .........DEPARTMENT OF
THE INTERIOR ............OFFICE OF INDIAN AFFAIRS .........FOREST
TOPOGRAPHERS LARGE MAP SHEET TABLE OMITTED SEE ORIGINAL
HES-004-1007-1012
HES-004-1007-1012
IIS44.2
440717
CORRESPONDENCE
HAUGE, A G ; TAHOLAH INDIAN AGE LAVATTA, GEORGE P ; TAHOLAH INDIAN AGE
.........TAHOLAH INDIAN AGENCY .........Hoquian, Washington
.........July 17, 1944 DOCUMENT OMITTED SEE ORIGINAL Wm. Butler
Allotment #992 Windthrow since logging. ...As indicated in the data on
the sample plot area there has been considerable windthrow since
logging. The loss per cent is as follows: ... .........Cedar - - - - -
31 per cent .........Hemlock - - - - 58 percent .........A.fir - - - -
53 per cent ......... All species - 39 percent ...By years the per
centage of windthrow is the following: .........1938 - - - - - 1.56 per
cent .........1941 - - - - 28. per cent 1942 - - - - 9.2 per cent 1943
- - - - - .4 per cent 1944 - - - - - 0.0 per cent ............All
species-39.00 per cent ...The examination made in 1941 was made in the
month of May and the windthrow as reported consisted chiefly of the
windthrow that occurred in the storm of December 1940. Since this storm
the number of trees windthrown has been moderate with none reported for
the period September 1943 to June 1944. ...As to the enire area that
was cut on the allotment, the most severe damage was done on the sample
plot area and the area immediately west. As indicated on the
accompanying plat this portion of the allotment is on a ridge extending
east and most and is exposed to winds from the south. The windthrow on
the allotment exclusive of this ridge section will average to date,
approximately 20 per cent. The blowdown has been caused by winds from a
southerly direction. ...As shown in the pictures accompanying this
memorandum, the sample plot area now presents a very ragged appearance.
The tops of many of the trees have bark or roots damaged and to date
most of the trees show no indication of pick up or accelerated growth
because of release by cutting. Many of the cedar trees that were left
were mature or spike topped with sparse crowns which will very likely
show little in the way of increased annual increment. ...There is a
question as to the advisability of establishing a reserve stand
containing a high percentage of mature or spike topped cedar trees, and
of trees damaged in logging. Reproduction ...To date on a study of
stocking of reproduction, except the area on which the soil was exposed
in roadways or skidding trails, the ground is covered by a vegetative
growth, the density of which has prevented the satisfactory
establishment of reproduction. Establishment at the present time of
reproduction in the roadways has been accomplished only on a small
percentage of the area. The reproduction is hemlock and cedar. The
ground cover is most dense in the open areas. The following are the
principal species: ............Salal ............Huckleberry - Blue and
Red ............Ferns - Bracken and Sword ............Salmon berry and
blackberry ............Carix and some other plants entering in
............ to a very limited extent. ...The slash resulting from
logging was not burned and no forest fire has burned over the area since
logging. ............Respectfully submitted, ............A. G. Hauge
............Forest Supervisor APPROVED: George P. LaVatta
Superintendent ......SELECTIVE LOGGING - SAMPLE PLOT - WM. BUTLER ALLOT.
#992 ......Lots 9 and 10, Sec. 4, T23N R.2n. W.K. Quinaielt
............Indian Reservation ...Tree Selection - Logged with Tractors
- 1937 - Plot ...Established Aug. 1938 ............Area - 10 ch x 4 ch -
4 Acres TABLE OMITTED SEE ORIGINAL ......SELCTIVE LOGGING - SAMPLE PLOT
- Wm. BUTLER ALLOT. #992 ...Lots 9 and 10, Sec. 4, T23N R. 2 W. W.K.
Quinaielt ............Indian Reservation TABLE OMITTED SEE ORIGINAL
............UNITED STATES ............DEPARTMENT OF THE INTERIOR
............OFFICE OF INDIAN AFFAIRS ......FOREST TOPOGRAPHERS LARGE MAP
SHEET ............Lots 9 & 10 TABLE OMITTED SEE ORIGINAL
HES-004-1013-1018
HES-004-1013-1018
IIS44.1
721219
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
............BUREAU OF INDIAN AFFAIRS ............PORTLAND AREA OFFICE
............Trend of Economic Conditions .........Relative to Revision
of Stumpage Rates .........Crane Creek Logging Unit, Quinault
Reservation ...The Crane Creek Logging Unit Contact provides in Section
11 for revision of stumpage rates when, in the opinion of the Approving
Officer, they do not properly reflect the true market value of the
forest products. Stumpage rates were last revised for effective date of
August 1, 1972. ...The rates effected August 1, 1972, evidenced a rise
in log prices in 1972 following a period in which log prices were
relatively stable. In these periods logging costs have continued to
rise; however, the rate of productivity gain has also improved. The
sum of the changes since the last revision oare significant and indicate
an upward revision of stumpage rates. The indicated rates herein
developed use the information of Industrial Forestry Association (IFA)
log price reportings, U.S. Forest Service West Side Logging Cost Guides,
Bureau of Indian Affairs unit information and other established cost
data sources. The information and Exhibits A through ^j provided herein
examine the trend of economic conditions through price reportings and
indexes, and timber bid prices. ............LOG VALUE ...The average
log values by grade for the combined Puget Sound, Grays-Willapa Harbor
Districts for the thrid quarter 1972, as reported by IFA, are calculated
below to show the change in log market prices. These grade prices are
used to calculate the indicated revised stumpage rates and the prices
listed include the effect of volume and value of mixed grade and
ungraded log sales. TABLE OMITTED SEE ORIGINAL ...The usual Exhibit A
and B-1 are not included as new recovery information is presently
unavailable since the last revision of stumpage rates. When the C.Y.
1972 recovery information becomes available, the exhibits will be
inserted. In lieu of Exhibit B-2 the following sums up the price
change. TABLE OMITTED SEE ORIGINAL ...Exhibits C-1 and C-2 give
transaction information of timber sales in Forks District, State of
Washington forest and the Quinault District, Olympic National Forest.
These districts are in close vicinity to the Quinault Reservation and
the forests most nearly compare to the Quinault forest. The prices
obtained from the Quinault District are affected by the restriction on
export of National Forest logs and only a minor volume of cedar is sold.
...The Export market is a major factor affecting average log prices of
the markets. The volume of logs going to export continues to be high.
Random Lengths Export list the following log shipments from Washington
and Oregon (MBF): TABLE OMITTED SEE ORIGINAL ...The volumes and
percents of log sales reported as export by IFA for the combined Puget
Sound, Grays-Willapa Harbor Districts are listed in Exhibit D and are
summarized below. Redcedar and hemlock are the principal species of the
logging unit. ............Percent Export TABLE OMITTED SEE ORIGINAL
............PRODUCT VALUE ...Trends in product value, particularly to
redcedar and hemlock, which have occurred since the previous revision of
stumpage rates are illustrated in the following summary and the
indicated exhibits. TABLE OMITTED SEE ORIGINAL ............COSTS ...A
grouping of the U.S. Forest Service cost guide items furnishes an
indicator of stump to truck cost trends. The guides provide the
following: 1969 - $20.38, 1970 - $22.56, 1971 - $24.07. Labor cost
data from the Washington Labor Market publication shows average hourly
earnings as follows in the lumber and wood products industry (logging):
Dec. 1970 - $4.86, Dec. 1971 - $5.18, Aug. 1972 - $5.14. Industrial
production statistics indicate that the productivity gains have
continued to increase at an annual rate of 4+ percent. Separate
statistics are not available from the logging industry; however, the
average earning rate indicates unit labor costs are under control.
Exhibit K is a productivity development from data for the years 1961
through 1971. ............Indicated Stumpage Rates. ...The computation
of indicated stumpage rates is shown in Exhibits L and M, using the
average prices shown on Exhibit O. Source of base cost data of Exhibit
L is footnoted with reference to Exhibit M-2. Revision of stumpage
rates indicated for the Crane Creek Logging Unit is shown below. TABLE
OMITTED SEE ORIGINAL ...The current operating practices of the purchaser
develops significant volumes of logs which, when presented for scale by
the Scaling Bureau, do not meet the merchantability standards for the
log grades listed above. These logs are listed as No. 4 logs or cull
logs. Prior to January 1, 1972, the No. 4 was listed as a CV (cull for
volume) as different from the other culls (cull for defect). Since
October 1, 1969, we have been charging for the CVs (presently No. 4) at
a rate equal to that for pulpwood ($3 per MBM) and have desired to set
up a rate for the culls for defect. We believe this production should
be encouraged as it removes material that would otherwise be left on the
site to add to the residue problem. The material appears to be of
submarginal value if considered for logging as salvage. The taking with
the main logging operation appears to give a marginal value as indicated
from the purchaser's activity. Actual appraisal of this material is not
a practical possibility due to the operational mixture. From long
deliberation concerning possible logging residue removal, we believe the
following rates are indicated: TABLE OMITTED SEE ORIGINAL
.........SALVAGE MATERIAL REMOVED UNDER CONTRACT MODIFICATION
...Supplement I concerns the rates for cedar shakeboards, pulpwood
salvage, and cedar shingle bolts and cordwood other than pulpwood. The
rate for cedar shakeboard was revised for effective date of July 1,
1969, at $30 per M Boards. The rate previous was $15 per H Boards
established in the modification of contract approved October 14, 1959.
Rates for pulpwood, shingle bolts and cedar cordwood have never been
revised from the rates of $1.50 per cord and $1.75 per cord,
respectively, established in the modification of contract. Provision
for revision of the products produced in salvage operations is set out
in Section 6 of the modification of contract. TABLE OMITTED SEE
ORIGINAL ...We anticipate that during the period established for
consultation, fourth quarter 1972 IFA prices will become available. We
therefore would expect that these IFA prices would be inserted in the
calculations of revised rates and that any other factors used in the
rate revision for which more current data has been developed or becomes
available would also be inserted in the calculations of revised rates.
At this time we are aiming at an effective date of February 1, 1973;
six months from the previous rate revision. ...There has been
continuing concern that the long process of Section 11 makes it
difficult to keep stumpage rates abreast of the change in log market
prices which may be significant from quarter to quarter. Past concern
has discussed the possibility of modification of the timber contract to
reintroduce quartterly rate adjustments similar to those contained in
Sections 6-9. This has always been put aside because of the legal
questions as to authority to further modify the contract. ...We are
suggesting that Section 11 does not prevent revision of stumpage rates
with the rates established by the Approving Officer made subject to
quarter-year adjustment based upon change in the factors inserted in the
stumpage revision calculation. This, in much the same manner as the
initial trend of economic conditions report, is updated with current
information. With such an adjustment Section 11 could be regularly used
to examine the trend of economic conditions and to maintain the
consultation feature of rate revisions. ............CRANE CREEK LOGGING
UNIT ............IFA 4TH QUARTER 1972 ARITHMETIC AVERAGE LOG VALUES
............PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS
............INCLUDING MIXED GRADES & UNGRADED ............COMPARED BY
RECOVERY TABLE OMITTED SEE ORIGINAL ............CRANE CREEK LOGGING UNIT
............QUALITY CHANGE TABLE OMITTED SEE ORIGINAL ##FN1 Using
percent grade cut from unit Calendar Years 1969-71 and arithmetic
average of IFA Puget Sound-Grays-Willapa Harbor Prices. ... ##FN2 Using
percent grade cut from unit during Calendar Year 1970-72 and arithmetic
average of IFA Puget Sound-Grays-Willapa Harbor Prices.
............STATE OF WASHINGTON ............TIMBER SALES--FORKS DISTRICT
TABLE OMITTED SEE ORIGINAL ............U.S. FOREST SERVICE
............OLYMPIC MATIONAL FOREST ............TIMBER SALES--QUINAULT
DISTRICT TABLE OMITTED SEE ORIGINAL ...COMBINED REPORTINGS OF I.F.A. FOR
PUGET SOUND--GRAYS--WILLAPA HARBOR DISTRICTS SHOWING TOTAL VOLUME AND
PERCENT OF EXPORT FOR QUARTERS USED IN STUMPAGE REVISIONS TABLE OMITTED
SEE ORIGINAL ...Average Realization on West Coast Lumber Shipments.
(Total Ave. Realization on lumber shipments from the Douglas-fir Region
of Western Washington, Western Oregon, and Northern California.) TABLE
OMITTED SEE ORIGINAL ............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08110365) Cedar Bevel Siding Clear TABLE OMITTED SEE
ORIGINAL ............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08110367) Cedar Shingles No. 1 TABLE OMITTED SEE ORIGINAL
............WESTERN REDCEDAR ............Indes Price per MBM
............(Based on Lumber Prices Reported in Random Lengths) TABLE
OMITTED SEE ORIGINAL ............WESTERN REDCEDAR SHINGLE INDES PRICES
............NO. 2 LOG PER MBM LOG SCALE ............(Based on Prices
Published in Random Lengths) TABLE OMITTED SEE ORIGINAL
............WESTERN HEMLOCK ............Index Price per MBM
............(Based on Lumber Prices Reported in Random Lengths) TABLE
OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ............CRANE
CREEK LOGGING UNIT ............LOGGING COSTS TABLE OMITTED SEE ORIGINAL
Indicated Stumpage Rates by Species, Crane Creek Logging Unit,
Determined from 4th Quarter 1972 Log Prices and 1971 Cost Data (USFS)
TABLE OMITTED SEE ORIGINAL ##FN1 IFA Grays Harbor-Puget Sound including
mixed grades and ungraded volume weighted to 1970-72 Crane Creek
recovery ##FN2 1. op - Profit Ratio ##FN3 Logging Cost ...... Stumpage
Rate = Log Price - Logging Cost ............ 1.op ............Data
Source - Logging Costs ............(Exhibit L) ##FN1 U.S. Forest Service
Handbook of ......... Timber Appraisal and Cost Guide ##FN2 Bureau of
Indian Affairs ......... Branch of Forestry Cost Analysis ##FN3 State of
Washington Utilities Commission ......... Commission Formula - adjusted
............REVISION ............CRANE CREEK LOGGING UNIT
............LOGGING COST COMPUTATION TABLE OMITTED SEE ORIGINAL
Continued TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL
............4th Quarter - 1972 IFA LOG PRICES--INCLUDING MIXED GRADES &
UNGRADED--COMBINED GWH-PS ... TABLE OMITTED SEE ORIGINAL
HES-004-1019-1043
HES-004-1019-1043
IIR72.3
721214
CORRESPONDENCE
FELSHAW, GEORG M ; W WASH AGENCY
............SUPPLEMENT I ............To Trend of Economic Conditions
.........Relative to Revision of Stumpage Rates ............Crane Creek
Logging Unit ............United States Department of the Interior
............BEREAU OF INDIAN AFFAIRS ............Western Washington
Agency ............3006 Colby Avenue, Federal Building
............Everett, Washington 98201 Memorandum To: ......Area
Director, Portland Area From:......Superintendent, Western Washington
Agency Subject:...Revision of Stumpage Rates - Cedar Salvage and
............Other Products - Taholah and Crane Creek Unit
............Modifications ...Concerning the above subject, the Branch of
Forestry Contacted the Washington State Department of Natural Resources,
Montesano District Office, Weyerhaeuser Incorporated at Cosmopolis and
ITT-Raynoier, Inc., in Hoqiuam, and obtained information on stumpage
rates charged by them currently for cedar salvage sold from their lands
as follows: ............Washington States Department of Natural
Resources: TABLE OMITTED SEE ORIGINAL ............Weyerhaeuser Company:
TABLE OMITTED SEE ORIGINAL ............ITT-Rayonier Incorporated:
TABLE OMITTED SEE ORIGINAL Pulpwood: ...Information received from the
Washington State Department of Nautral Resources indicates an estimated
average stumpage rate of $2.00/cord for pulpwood, all species, Montesano
District and $1.50/MBM for the Forks District with a limit that these
may be increased because of changes in market trends. However, their
main concern is to get as much of the ground cleaned as possible. Based
on this information and the fact that we would desire the ground cleaned
also and that we have already been charging $2.00/cord for poles (#4
sawlog and smaller) on the Taholah Unit, we recommend the $2.00/cord be
charged on both units for pulpwood. This would be the recommended
charge for cull logs gross volume converted to cords also. See attached
Table I of 3rd Quarter volumes cull for defect logs from Crane Creek and
Taholah Units and similar information for 1st Quarter 1972.
...Therefore, it is recommended that contract modification stumpage
rates be changed as follows: TABLE OMITTED SEE ORIGINAL ...You will
note that in the second paragraph of Mr. Halbert's memorandum of 5/19/72
hereto attached he states all pulpable culls are used by ITT-Rayonier at
their mill. This represents cull for defect logs. ............TABLE I
............3RD QUARTER 1972 ............CULL FOR DEFECT
............Crane Creek UNIT TABLE OMITTED SEE ORIGINAL
HES-004-1044-1047
HES-004-1019-1047
IIR72.3
AREA DIR
720519
CORRESPONDENCE
HALBERT, VERNON
Onnie Paakkonen, Forester... Vernon S. Halbert, Forestry Technician
Utilization of Cull Cedar by ITI-Rayonier ...For the past several years
all cull cedar that has been delivered to Rayonier's sorting yard at
Crane Creek has been moved across the road to their refuse dump where
contracted shake cutters utilize all they can recover out of this
material. This material consists of alabe, broken chunks, wormy logs ,
etc. What monetary arrangements have been made between the two parties,
I do not know. ...All so-called hardwood or pulpable culls that we
delivered to the yard are sent to Rayonier's mill in Hoquiam where they
are shipped along with the better material and utilized for their chip
content. ............Sgd. Vernon S. Halbert ............Vernon S.
Halbert, ............Forestry Technicnai cc:......... Adm. - Evt. - Hoq.
Subject - Hoq. Chrony ... VHalbert:1r 5/19/72
HES-004-1048-1048
HES-004-1048-1048
IIR72.3
PAAKKONEN, ONNIE
720519
CORRESPONDENCE
PAAKKONEN, ONNIE E
DOCUMENT OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED
SEE ORIGINAL
HES-004-1049-1051
HES-004-1049-1051
IIR72.3
FILES
720825
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
............BUREAU OF INDIAN AFFAIRS ............PORTLAND AREA OFFICE
......Trend of Economic Conditions ......Relative to Revision of
Stumpage Rates ......Crane Creek Logging Unit, Quinault Reservation
...The Crane Creek Logging Unit Contract provides in Section 11 for
revision of stumpage rates when, in the opinion of the Approving
Officer, they do not properly reflect the true market value of the
forest products. Stumpage rates were last revised for effective date of
August 1, 1971. ...The revised stumpage rates were announced by the
Acting Deputy Commissioner of Indian Affairs after a period of
consultation with representatives of the purchaser and the sellers.
Subsequently, in response to objections by seller representatives to the
reduction in stumpage rates, the purchaser and sellers submitted a joint
petition that the Commissioner reinstate the stumpage rates that were in
effect prior to the stumpage rate revision. The Deputy Commissioner
accordingly reinstated the stumpage rates as petitioned. ...The rates
to have been effected August 1, 1971, evidenced a decline in log prices
and rising logging costs. In the period since August 1, 1971, log
prices have recovered from the decline and have risen to higher levels.
Logging costs have continued to rise but have been dampened by the use
of new types of equipment. The sum of the changes are significant and
indicate an upward revision of stumpage rates. The indicated rates
herein developed use the information of the Industrial Forestry
Association (IFA) log price reportings, U.S. Forest Service Westside
Logging Cost Guides, Bureau of Indian Affairs unit information, and
other established cost data sources. The information and exhibits
provided herein examine the trend of economic conditions through price
indexes, timber bid prices, and log market activity. ............LOG
VALUE ...The average log values by grade for the combined Puget Sound,
Grays-Willapa Harbor Districts for the first quarter 1972, as reported
by IFA, are calculated below to show the calculate the indicated revised
stumpage rates and the prices listed include the effect of volume and
value of mixed grade and ungraded log sales. TABLE OMITTED SEE ORIGINAL
...In Exhibit A the average log values for the combined Puget Sound,
Grays-Willapa Harbor Districts are listed for the first quarter of 1972;
and comparable values using 1968-1970 and 1969-1971 grade recovery from
the Crane Creek Logging Unit are developed. This data is carried into
Exhibits B-1 and B-2 to arrive at value change due to log recovery and
price change, resepctively. A summary of the changes is tabulated
below. TABLE OMITTED SEE ORIGINAL ...Exhibits C-1 and C-2 give
transaction information of timber sales in the Forks District, Stat od
Washington forest and the Quinault District, Olympic National Forest.
These districts are in close vicinity to the Quinault Reservation and
the forests most nearly compare to the Quinault forest. The prices
obtained from the Quinault District are affected by the restriction on
export of National Forest logs and only a minor volume of cedar is sold.
... ...The export market is a major factor affecting average log prices
of the markets. The volume of logs going to export continues to be
high. Random Lengths Export Market Report lists to the following log
shipments from Washington and Oregon (MBF): TABLE OMITTED SEE ORIGINAL
...The volumes and percents of log sales reported as export by IFA for
the combined Puget Sound, Grays-Willapa Harbor Districts are listed in
Exhibit D and are summarized below. Redcedar and hemlock are the
principal species of the logging unit. ............Percent Export TABLE
OMITTED SEE ORIGINAL ............PRODUCT VALUE ...Trends in product
value, particularly to redcedar and hemlock, which have occurred since
the previous revision of stumpage rates are illustrated in the following
summary and the indicated exhibits. TABLE OMITTED SEE ORIGINAL
............COSTS ...A grouping of the U.S. Forest Service cost guide
items furnishes an indicator of stump to truck cost trends. The revised
year guides provide the following: 1968 - $18.75, 1969 - $21.62, 1970 -
$23.88. Labor cost data from the Washington Labor Market publication
shows hourly earnings as follows in the lumber and wood products
industry (logging): Dec. 1969 - $4.43, Dec. 1970 - $4.84, Dec. 1971 -
$5.16. Productivity in the year 1971 for private nonfarm industry is
indicated to have had a 4+ percent increase and was a reversal of a
slowing trend. The methods of logging currently in use have the
capability of exceeding the private nonfarm average gains. Exhibit K is
a productivity development from data for the years 1961 through 1970.
............Indicated Stumpage Rates ...The computation of indicated
stumpage rates is shown in Exhibits L and M, using the average prices
shown on Exhibit O. Source of base cost data of Exhibit L is footnoted
with reference to Exhibit M-2. Revision of stumpage rates indicated for
the Crane Creek Logging Unit is shown below. TABLE OMITTED SEE ORIGINAL
............CRANE CREEK LOGGING UNIT TABLE OMITTED SEE ORIGINAL
............CRANE CREEK LOGGING UNIT TABLE OMITTED SEE ORIGINAL
............CRANE CREEK LOGGING UNIT ##FN1 Using percent grade cut from
unit Calendar Years ...1968-70 and arithmetic average of IFA Puget
...Sound-Grays-Willapa Harbor Prices. ##FN2 Using percent grade cut
from unit during Calendar Years ...1969-71 and arithmetic average of IFA
Puget ...Sound-Grays-Willapa Harbor Prices. ............CRANE CREEK
LOGGING UNIT ............LOG PRICE CHANCE TABLE OMITTED SEE ORIGINAL
##FN1 Using percent grade cut from unit Calendar Years ...1968-70 and
arithmetic average of IFA Puget ...Sound-grays-Willapa Harbor Prices.
............STATE OF WASHINGTON .........TIMBER SALES--FORKS DISTRICT
TABLE OMITTED SEE ORIGINAL ............U.S. Forest SERVICE
.........OLYMPIC NATIONAL FOREST .........TIMBER SALES--QUINAULT
DISTRICT TABLE OMITTED SEE ORIGINAL ...COMBINED REPORTINGS OF I.F.A. FOR
PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS SHOWING TOTAL AND PERCENT OF
EXPORT FOR QUARTERS USED IN STUMPAGE REVISIONS TABLE OMITTED SEE
ORIGINAL ...Average Realization on West Coast Lumber Shipments. (Total
Ave. Realization on lumber shipments from the Douglas-fir Region of
Western Washington, Western Oregon, and Northern California.) TABLE
OMITTED SEE ORIGINAL ............WHOLESALE PRICE INDEXES - U.S.D.L.
TABLE OMITTED SEE ORIGINAL ............WHOLESALE PRICE INDEXES -
U.S.D.L. TABLE OMITTED SEE ORIGINAL ............WESTERN REDCEDAR TABLE
OMITTED SEE ORIGINAL ............WESTERN REDCEDAR SHINGLE INDEX PRICES
TABLE OMITTED SEE ORIGINAL ............WESTERN HEMLOCK TABLE OMITTED SEE
ORIGINAL ............STATE OF WASHINGTON .........EMPLOYMENT, WAGES AND
PRODUCTION FOR THE LOGGING .........INDUSTRY TABLE OMITTED SEE ORIGINAL
HES-004-1052-1070
HES-004-1052-1070
IIR72.2
720000
CORRESPONDENCE
; CRANE CREEK
...A brief summary of points to consider in terminating the present
Crane Creek Contract follows: ...There are roughly 400-450 allotments
under contract on Crane Creek. More than half of these have some timber
remaining on them. Approximately 40 allotments have advance payments
that have not yet been exceeded. Of the 40 allotments many have the
poorer timber types designated as non-merch in the 1960 Inventory. ...A
rough calculation was made of the average number of heirs present on
Crane Creek allotments. About one-third to one-half of the allotments
recorded on the Journal Vouchers examined had single owners. The
allotments with multiple owners averaged 6 heirs per allotment. The
highest number encountered in our small sample was 15 owners per
allotment, but we are well aware of allotments with many more owners
than that. ...Logging is occuring an approximately 20 allotments each
month. Depending on logging block layout and the number of operating
sides, this number can increase significantly. ...The gathering of
Powers-of-Attorney to enter into a new contract can be seen as a
monumental task. With roughly 13,000 acres of allotted lands yet to be
loggged, containing multiple owners scattered worldwide, we may assume
few Indians would receive monies for a lengthy period of time. ...If
allotments were to be logged singly under individual permits, road
rights-of-way would have to be obtained with a possible delay as long or
longer than in obtaining the Powers-of-Attorney. ...The administration
of the Crane Creek Unit is no small task. The responsibilities of the
two Foresters on Crane Creek include auditing and checking all volume
and value reports through all phases. All phases of logging block
layout must be field checked and reports submitted. All logging
operations must be closelyy watched including 4-7 aides, 11 sets of
fallers, road construction and salvage operators. Within the last years
we estimate half of the working hours are spent in the office on
auditing, planning, reporting and various correspondence. There is no
doubt that increased demands and responsibilities on Crane Creek will
require some sort of relief, be it less logging or more manpower. ...An
exam of heirships on allotments show roughly one-third to one-half of
the allotments have single owners. The reminder have an average of 6
heirs/allottees. (Derived from rough calculations of Journal Vouchers
F.Y. 1971.) ...Approximately 20 allotments have had logging each month
for several months. This number at times is considerably higher.
............CRANE CREEK .........ESTIMATE OF ACRES TO LOG TO FINISH
CONTRACT 14 years to date of expiration. All timbered acreage remaining
15,651 divided by 14 = 1,118 acres/yr. to log...... Timbered acres less
non-merch 12,654 divided by 14 = 904 acres/yr. to log......
............ESTIMATE OF VOLUME REMAINING TO LOG ...Volume remaining
shown on Forestry annual report (1971) 700,059,000 board feet.
.........700,059,000 divided by 12,654 = 55 M/Ac. ...An estimate of
55,000 board feet per acre of merchantable timbered areas same
reasonable. ...As nearly as can be ascertained the non-merch acreage
consists of the following timber types: TABLE OMITTED SEE ORIGINAL
...All C2 types classifications were apparently placed in one of the
merchantable categories. Utilization and market standards have not yet
paused the C3 tyypes. TABLE OMITTED SEE ORIGINAL .........ACREAGE CRANE
CREEK UNIT FROM 1960 INVENTORY TABLE OMITTED SEE ORIGINAL
.........ESTIMATED TIMBERED ACREAGE REMAINING 15,651 AS .........SHOWN
IN CALCULATIONS AS FOLLOWS: TABLE OMITTED SEE ORIGINAL
HES-004-1071-1074
HES-004-1071-1074
IIR72.1
710719
CORRESPONDENCE
WEBER, JOHN J
AIRMAIL ... Mamorandum To: Commissioner of Indian Affairs
......Attention: Forestry Program From: Assistant Area Director
(Economic Development) Subject: Revision of Stumpage Rates, Crano Creek
Logging Unit ...Consultation was held concerning the revision of
atumpage rates of the Crene Creck Logging Unit at Hoquiam, Washington,
on June 30, 1971. This was a joine concultation with representatives of
ITT Rayonier Incorporated and Quinault Tribal and Allottee
representatives. Enclosed herewith is a resume of the conaultation
meeting. ... ...ITT Rayonier has since presented a statement of date
July 6, 1971, a copy of which they furnished directly to the
Camissioner. The tribe and allottee representatives indicated at the
consultation they probably would not make any written submission and
none has been forthcoming. ...The following portains to the written
statement of ITT Rayonier, and no have directed our review to the
specific subjects in the ITT Rayonier report, parts 5.0 and 6.0, with
the exception of the correction and comment in regard to footnotes in
parts 3.0 and 4.0, respectively. ...The footnote on page 4 refers to
the negative value encountered in white pine grade 3 sawlogs. We
applied the base rate of Section 12 of the timber contract erroneously.
The corrected page 6 and Exhibit M reflect this change. ...The footnote
on page 6 refers to a paragraph of the Trend of Economic Conditions
Report (Trend Report) prepared by the Bureau of Indian Affairs. Whereas
the paragraph deals in an informative manner with changes in Industrial
Porestry Association (IFA) log price reportings and use, ITT Rayonier
appears to find some condemmation reflecting upon ITT Rayonier. ...In
the following we have listed subjects by number. The ITT Rayonier
corresponding number is listed in parenthesis. Each number is followed
by our comment and/or information pertinent to the ITT Rayonier
presentation and the subject. During the consultation, all of these
were discussed as to derivation and application, except that items 5.2
and 5.3 were not raised in the consultation by ITT Rayonier. 1. (5.1,
5.2) ...a. The increased logging cost allowance for the period
1968-1971 is $8.29 rather than only $4.17 per M. ...b. The Assistant
Secretary's direction concerning union contract offect on cost
computations. ...The $3.29 is the additive of the specific items listed
and elaborated upon following in their statement. ...In 5.2 the
Assistant Secretary's letter of October 17, 1970, (regarding denial of
ITT Rayonier's appeal of revised rates effected July 1, 1969) is
interpreted to instruct that the apparent effect of scheduled or
imminent union contract wage increases would be added to the cost guide
figures used to calculate logging costs. We do not agree with this
interpretation. The Assistant Secretary recognized that cost
collections log the actual events but said that in arriving at stumpage
adjustments the Bureau quite properly considers known past and current
data and avoids speculating as to future trends of the markets and
economic conditions. 2. (5.3) Environmental protection costs are not
considered. ...ITT Rayonier is specific in noting tis concerns stream
clearance. This is an obvious oversight as the cost calculation sheet
Exhibit N-2 of the Trend Reort lists stream cleanup cost allowance.
This factor has been a part of the U.S. Forest Service cost guide for
many years as an inclusion in yarding costs. Amendment No. 119 of their
cost guide initiated stream course cleanup as a separate ontity. 3.
(5.4) The total defect used is in error. ...Total defect is a
determination based on experience with each species. Thus, redcedar
approximates 40 percent total defect, homlock 15 percent, and other
species combined, 30 percent. Weighted at 1970 species production it is
equal to 27.45 percent. Weighted to 1968-70 production, it is equal to
28.55 percent. We also look at the ocaling DOCUMENT OMITTED SEE
ORIGINAL relation to the general aspect of the Forest Service lands, the
low of the range has been used in several past revisions. Due to
changes in method of cost development, the U.S. Forest Service indicated
they were now unable to provide similar information, Examinations of
cost data of our own gathering tended to support the 11 cent figure.
Accepting there has been a cost change in gravel costs, we believe a
technique of cost trending the same as used for road construction would
be reasonable. The 10 cent allowance of 1964 thus trends to 11.9 cents.
(Unless the 1/10 differential is used, index change may not be evident
on a year-to-year basis.) Resultant road maintenance allowance is 94
cents, an increase of 6 cents. 7. (6.4) The U.S. Forest Service cost
guide figure should be used for the booming, rafting, and local tow.
...The ITT Rayonier cost, as derived from our review of their costs, has
been the basis of this item set out as a cost allowance. Since the
start of the use of Section 11 of the contract to revisa rates, the cost
allowance has been advanced on a trended basis; the ratio of the
allowance used in the 1964 rate revision to the U.S. Forest Service cost
guide of that time. This process is not suddenly new with this rate
revision, as ITT Rayonier indicates. 8. (6.5) Road development costs
presently used are the same as used in 1960. ...The $1.88 figure of
1960 and 1971 are a coincidence, only. Since the start of use of
Section 11 of the contract to revise rates, the cost allowance has been
advanced on a trended basis; the ratio of the allowance used in the
1964 revision to the Highway Bid Price Index Trend as reported in the
Engineering News Record. As a continuing review, we also compare the
ITT Rayonier combined costs of road maintenance and construction,
obtained from our review of their records, against our dollar
allowances. This comparison indicates the cost allowances determined by
the methods set out herein have slightly exceeded the ITT Rayonier cost.
9. (6.6) The ITT Rayonier sorting yard cost should be used since the
Bureau used ITT Rayonier costs for booming, rafting, and local tow.
...... ...Sorting yard costs are a cost item inserted in the cost array
as log export market developed. Initially, cost estimates were made;
however, as a result of the Taholah Appeal, we initiated our own cost
studies, based on three yards. (One is the ITT Rayonier yard.) The
application of those cost results has been used routinely since first
developed in 1967. The yards appear reasonably similar in services
encountered. ...The ITT Rayonier presentations beer on two main
arguments. First, that costs (presumably all cost items) must inerease
in the ratio of an undetermined inflation factor; second, that errors
exist in the selection of cost guides and computation of logging costs.
...The first, if accepted, would not properly recognize the effects on
costs of application of production methods which are cost reducing and
ignores that even in times of general cost increases some cost factors
may and do decline. ...An excellent example which refutes the general
inflation argument is the enclosed sections of an article from a skyline
Logging Symposium Proccedings published by Oregon State University. The
article indicates massive increases in productivity from improved
yarding methods. The same article reflects on ITT Rayonier's management
opinion and productivity of grapple yarding indicated from use on the
Crane Creek Logging Unit. ...The $8.29 cost increase clained by ITT
Rayonier amounts to a 28 percent increase over allowances of the
previous revision in 1969. In the same range of costs, we have allowed
a 15 percent increase and this compares closely with the cost guide
increase of 16 percent. ...Concerning the second noted argument of ITT
Rayonier, we have followed a procedure of trend based on the 1964 rate
revision. This was the first revision made under the provisions of
Section 11 of the timber contract. In this procedure, changes in the
practices of logging and log marketing are recognized and inserted.
...As a result of review of the ITT Rayonier statement and their
corresponding presentation at the consultation, we have made changes in
the Trend of Economic Conditions Report which affect the indicated
stumpage rates. Amended pages of the report are enclosed. These
changes are noted previously berein and are concerned with the
calculation of the white pine price and the road maintenance allowance.
...The views expressed in the consultation by the tribe and allottee
representatives followed the reasoning of the written statement dated
May 21, 1971, presented by the Quinault Allottee's Committee. The
statement attempts to apply the procedure of comparable sales and takes
exception to the reduction of ITT Rayonier's production in Calendar Year
1970. We cannot view either of these as applicable to the revision of
stumpage rates under Section 11 of the timber contract. We therefore
recommend the following revised atumpage rates be established for the
Crane Creek Logging Unit for effective date of Aug 1, 1971. TABLE
OMITTED SEE ORIGINAL ............(SGD.) John J. Weber
............Assistant Area Director ............(Economic Development)
Enclosures 5 cc:......... Supt., Western Wash. Agency Hoquiam Field
Station, Attn. Forestry Mr. Neely, ORS VKMeeker:du - 7/19/71 ...From
Skyline Logging Symposium Proceedings Publication, School of Forestry,
Oregon State University-- ...Multi-Purpose Highlead Yarding Machine,
excerpt p. 79 ...The significant value of the Grabinsky system was
forcibly apparent to me at Rayonier's Crane Creek operation near Lake
Quinault. The ground is flat and swampy. Consequently, to run the
Grabinsky system, a tail tree must be rigged for every road where
deflection is needed. This system has increased production 15 percent.
Timber damage from yarding is practically eliminated. Wear and tear on
the rigging and brake system of the yarders are noticeably less.
...Usually, the rigging of tail trees requires no extra labor. As the
rigging is now in the air, one choker setter can be upgraded to tail
rigger. He and the hook tender can rig a tail tree in 45 minutes. They
can hang the block, thread a section of strawline, then strip it in 5
minutes. ...The entire management at Rayonier is dedicated to this
system. According to George Lundgren, log manager, and Don Larson,
logging superintendent, the increased timber recovery is impressive.
George Durrah said that after they went from straight highleading, the
flexibility of slack-lining changed their standard of living. They
could feel the impact of this flexibility on their costs in their
pocketbooks. Excerpt p. 80-- ...The significant happenings in
production can be realized and appreciated if we look back 6 or 7 years.
Highlead operations, with rigged trees and old yarders, averaged from
600 to 700 board feet per man-hour in yarding and loading production.
With mobile spars and new yarders, averages in yarding and loading
production have increased to 1,400 and 1,500 board feet per man-hour.
Now with grapple yarding, from 2,500 to 3,000 board feet per man-hour is
possible for yarding and loading production. In less than a decade, the
logging industry can possibly realize an increased efficiency of from
400 to 500 percent in highlead yarding and loading. This is truly a
great tribute to the ingenuity of the logging industry. And we at
Skookum enjoy our part in this progress.
HES-004-1075-1081
HES-004-1075-1081
IIR71.2
COMM OF INDIAN AFF ; FORESTRY PROGRAM
710000
CORRESPONDENCE
; BIA
............BUREAU OF INDIAN AFFAIRS ............PORTLAND AREA OFFICE
............Trend of Economic Conditions ............Relative to
Revision of Stumpage Rates ............Crane Creek Logging Unit,
Quinault Reservation ...The Crane Creek Logging Unit Timber Contract
provides in Section 11 for revision of stumpage rates when, in the
opinion of the Approving Officer, they do not properly reflect the true
market value of the forest products. Stumpage rates were last revised
for effective date of July 1, 1969. ...These rates were appealed by the
Purchaser and the appeal was denied and the action of the Commissioner
of increase in stumpage rates was affirmed. ...ITT Rayonier
Incorporated, by letter dated March 25, 1971, to the Secretary of the
Interior, requested a review be made of stumpage rates of the Crane
Creek Timber Contract. By telegram of April 22, 1971, the Area
Director, Portland, was instructed to proceed to review stumpage rates
in effect and to advise the Commissioner of the findings and
recommendations. ...The period of time since the previous revision of
stumpage rates has seen some minor decline in activity of the forest
products industry. It has also been a period of adjustment by the
industry. After the rapid rise and decline in the end-product prices of
1968-1969, there has been a leveling period for approximately one and
one-half years. There is a current upturn in these prices. Log prices
in the same periods have followed their own pattern of price change and
did not experience the extreme fluctuation of end-product prices.
...Log prices, after a period of rise, have declined from the level of
those used in the previous revision of stumpage rates and logging costs
have increased. These changes are significant and indicated revised
rates are herein developed from the base of Industrial Forestry
Association (IFA) log price reportings, U.S. Forest Service West Side
logging cost data, and other established cost data surces. Other
information and exhibits provided herein examine the trend of economic
conditions through price indexes, timber bid rates, and log market
activity. ............LOG VALUE ...The average log values by grade for
the combined Puget Sound, Grays-Willapa Harbor Districts for the first
quarter 1969 and the first quarter 1971, as ported by IFA, are
calculated below to show the change in log market prices. These grade
prices are used to calculate the indicated revised stumpage rates and
the prices listed include the effect of volume and value of mixed grade
and ungraded log sales. TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL ...Since the previous revision, two factors have been inserted
in the log prices. First, the SM (Special Mill) logs are priced as they
have become a significant part of the production. Second, the export
transactions reported by IFA exclude sales on a free alongside ship
(FAS) or landed on ship basis. The range of transaction prices
continues to contain differentials due to varying points of delivery....
...In Exhibit A the average log values for the combined Puget Sound,
Grays-Willapa Harbor districts are listed for the first quarter of 1971;
and comparable values using 1966-1968 and 1968-1970 grade recovery from
the Crane Creek Logging Unit are developed. This data is carries and
price change, respectively. A summary of the changes is tabulated
below. TABLE OMITTED SEE ORIGINAL ...Exnibits C-1 and C-2 give
transaction information of timber sales in the Forks District, State of
Washington Forest and the Quinault District, Olympic National Forest.
These districts are in the close vicinity of the Quinault Reservation
and the forests most nearly compare to the Quinault Forest. The prices
obtained from the Quinault District are affected by the restriction on
export of National Forest logs. State of Washington logs are not so
restricted. ...The export market is a major factor affecting average
log prices of the markets. The volume of logs going to export continues
to be high. Random Lengths Export Market Report lists the following log
shipments from Washington and Oregon (MBF): TABLE OMITTED SEE ORIGINAL
...The volumes and percents of log sales reported as export by IFA for
the combined Puget Sound, Grays-Willapa Harbor Districts are listed in
Exhibit D and are summarized below. Redcedar and hemlock are the
princepal species of the Crane Logging Unit. ............Percent Export
............PRODUCT VALUE ...Treads in product value, particularly to
redcedar and hemlock, which have occurred since the previous revision of
stumpage rates are illustrated in the following summary and the
indicated exhibits. TABLE OMITTED SEE ORIGINAL ............COSTS ...The
U.S. Forest Service, Region 6, no longer publishes s stump to truck cost
sample statistic. However, a grouping of cost guide items furnishes a
similar indicator. The revised experience for the past three years are:
1967 - 17.73, 1968 - 18.75, 1969 - 21.61. Labor cost increases in the
period, taken from State of Washington data, are indicated by the
average hourly earnings in the lumber and wood products industries,
i.e., Nov. 1967 - 3.37, Nov. 1968 - 3.62, Nov. 1969 - 3.97, Nov. 1970 -
4.26. In the same period, productivity gain in the private nonfarm
economy was slower than the decade rate of 3.0 percent per year.
...Whether the rate of productivity increase has slowed in the logging
industry is uncertain. Exhibit K develops productivity information for
the years 1960 through 1969. ............Indicated Stumpage Rates
...The computation of indicated stumpage rates is shown in Exhibits L
and M. Source of base cost data of Exhibit L is footnoted with
reference to Exhibit M-2. Revision of stumpage rates indicated for the
Crane Creek Logging Unit is shown below. TABLE OMITTED SEE ORIGINAL
...Stumpage rates for poles were established at seven cents per lineal
foot in 1954. Production has been sporadic and none has occurred since
October 1968. However, due to the large increase in cedar prices over
the years, revision of the cedar pole rate is warranted. Exhibit O
calcualtes the indicated revised rates of 12 cents per lineal foot.
Prepared by: Victor K. Meeker, Supv. Forester, April 27, 1971 Revised:
June 8, 1971 Revised: July 16, 1971 ............CRANE CREEK LOGGING
UNIT ...IFA 1st QUARTER 1971 ARITHMETIC AVERAGE LOG VALUES ......PUGET
SOUND-GRAYS-WILLAPA HARBOR DISTRICTS .........INCLUDING MIXED GRADES &
UNGRADED ............COMPARED BY RECOVERY TABLE OMITTED SEE ORIGINAL
.........CRANE CREEK LOGGING UNIT ............QUALITY CHANGE TABLE
OMITTED SEE ORIGINAL
...and arithmetic average of IFA Puget Sound-Grays-Willapa ...Harbor
Prices.
...1968-70 and arithmetic average of IFA Puget Sound-Grays-Willapa
...Harbor Prices. .........CRANE CREEK LOGGING UNIT ............LOG
PRICE CHANGE TABLE OMITTED SEE ORIGINAL
...and arithmetic average of IFA Puget Sound-Grays-Willapa ...Harbor
Prices. ............STATE OF WASHINGTON .........TIMBER SALES-FORKS
DISTRICT TABLE OMITTED SEE ORIGINAL ............U. S. FOREST SERVICE
......... OLYMPIC NATIONAL FOREST ......TIMBER SALES-QUINAULT DISTRICT
TABLE OMITTED SEE ORIGINAL ...COMBINED REPORTINGS OF I.F.A. FOR PUGET
SOUND-GRAYS-WILLAPA ...HARBOR ......DISTRICTS SHOWING TOTAL VOLUME AND
PERCENT OF EXPORT TABLE OMITTED SEE ORIGINAL ...Average Realization on
West Coast Lumber Shipment. (Total Ave. Realization on lumber shipments
from the Douglas-fir Region of Western Washington, Western Oregon, and
Northern California.) TABLE OMITTED SEE ORIGINAL ............WHOLESALE
PRICE INDEXES - U.S.D.L. .........(08-13-61.06) Cedar Level Siding
Clear ............(1957-59=100) TABLE OMITTED SEE ORIGINAL
............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08-13-66.06) Cedar Shingles No. 1 ............(1957-59=100)
TABLE OMITTED SEE ORIGINAL ............WESTERN REDCEDAR
............Index Price per MBM .........(Based on Lumber Prices
Reported in Random lenghts) TABLE OMITTED SEE ORIGINAL .........WESTERN
REDCEDAR SHINGLE INDEX PRICES ............NO. 2 LOG PER MBM LOG SCALE
.........(Based on Prices Published in Random Lengths) TABLE OMITTED SEE
ORIGINAL ............WESTERN HEMLOCK .........Index Price per MBM
...(Based on Lumber Prices Reported in Random Lengths) TABLE OMITTED SEE
ORIGINAL ............STATE OF WV .........EMPLOYMENT, WAGES AND PRODUCT
.........1960 TABLE OMITTED SEE ORIGINAL ...(1) Source - State of
Washington, Employment Security .........Department. See attached of
letters and related data. ...(2) Wages divided by employment. ...(3)
Source - Production Prices, Employment and Trade in .........Pacific
Northwest Fores Pacific N.W. Forest & Range .........Experiment Station
(Page 22, 2nd Qtr. 1969) ...(4) Production (MBM) divided by employment.
...(5) Wages divided by production (MBM). ...(6) Obtained by phone from
Brian Wall, Pacific N.W. Forest & .........Range Experiment
.........CRANE CREEK LOGGING UNIT ............LOGGING COSTS
............SUMMARY TABLE OMITTED SEE ORIGINAL ...Indicated Stumpage
Rates by Species, Crane Creek Logging Unit, Determined from 1st Quarter
1971 /1/ Log Prices and 1969R Cost Data ............1971 Revision
.........CRANE CREEK LOGGING UNIT .........LOGGING COST COMPUTATION
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
.........COMPUTATION OF CEDAR POLE STUMPAGE RATE ............CRANE CREEK
LOGGING UNIT TABLE OMITTED SEE ORIGINAL ...1. Pole lengths from Cascade
Pole Company, Tacoma, Wash. ...2. Average volume per pole, Scribner
Revised Log Scale Tables ...3. Current average rate indicated $36.65.
DOCUMENT OMITTED SEE ORIGINAL ............WESTERN HEMLOCK .........Index
Price per MBM ...(Based on Lumber Prices Reported in Random Lenghts)
TABLE OMITTED SEE ORIGINAL ............STATE OF WV .........EMPLOYMENT,
WAGES AND PRODUCT .........1960 TABLE OMITTED SEE ORIGINAL ...(1) Source
- State of Washington, Employment Security .........Department. See
attached of letters and related data. ...(2) Wages divided by
employment. ...(3) Source - Production Prices, Employment and Trade in
.........Pacific Northwest Fores Pacific N.W. Forest & Range
.........Experiment Station (Page 22, 2nd Qtr. 1969) ...(4) Production
(MBM) divided by employment. ...(5) Wages divided by production (MBM).
...(6) Obtained by phone from Brian Wall, Pacific N.W. Forest &
.........Range Experiment .........CRANE CREEK LOGGING UNIT
............LOGGING COSTS ............SUMMARY TABLE OMITTED SEE ORIGINAL
...Indicated Stumpage Rates by Species, Crane Creek Logging Unit,
Determined from 1st Quarter 1971 /1/ Log Prices and 1969R Cost data
TABLE OMITTED SEE ORIGINAL ............1971 Revision .........CRANE
CREEK LOGGING UNIT .........LOGGING COST COMPUTATION TABLE OMITTED SEE
ORIGINAL TABLE OMITTED SEE ORIGINAL .........COMPUTATION OF CEDAR POLE
STUMPAGE RATE ............CRANE CREEK LOGGING UNIT TABLE OMITTED SEE
ORIGINAL ...1. Pole lenghts from Cascade Pole Company, Tacoma, Wash.
...2. Average volume per pole, Scribner Revised Log Scale Tables ...3.
Current average rate indicated $36.65.
HES-004-1082-1113
HES-004-1082-1113
IIR71.1
701023
CORRESPONDENCE
DOWLY, JAMES E ; BIA
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE
OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL 1. The patent on which
title to the lands herein described is based, recorded in this office as
Document number 117-930, reserves a right of way for ditches or canals
comstructed by the authority of the United States, as provided by the
Act of August 30, 1890 (26 Stat. 391). The Solicitor has construed this
reservation as being inapplicable to allotments from land of Indian
reservations. See 58 I.D. 319, 59 I.D. 461. 2. George M. Romes,
listed on page 2 under identification number X2, acquired his interest
in this tract through probate order E 128-62 which held that he was a
non-Indian; hence he took title stripped of its trust character. 3.
Willie George, listed on page 2 hereof under identification number
117-230, is reported to have died on October 22, 1968, but his heirs
have not yet been determined. 4. Nelson George, listed on page 2
hereof under identification number 117-236, is reported to have dies on
October 1, 1968, but his heirs have not yet been determined TABLE
OMITTED SEE ORIGINAL 1. The patent on which title to the lands herein
described is based, recorded in this office as Document number 117-930,
reserves a right of way for ditches or canals constructed by the
authority of the United States, as provided by the Act of August 30,
1890 (26 Stat. 391). The Solicitor has construed this reservation as
being inapplicable to allotments from land of Indian reservations. See
58 I.D. 319, 59 I.D. 461. 2. George M. Romes, listed on page 2 under
identification number X2, acquired his interest in this tract through
probate order E 128-62 which held that he was a non-Indian; hence he
took title stripped of its trust character. 3. Willie George, listed
on page 2 hereof under identification number 117-230, is reported to
have died on October 22, 1968, but his heirs have not yet been
determined. 4. Nelson George, listed on page 2 hereof under
identification number 117-236, is reported to have died on October 1,
1968, but his heirs have not yet been determined
HES-004-1114-1121
HES-004-1114-1121
IIR70.1
690804
CORRESPONDENCE
GALBRAITH, A W
Memorandum To: Commissioner of Indian Affairs .........Attention:
Forestry Program From: Assistant Area Director (economic Development)
Subject: Statements concerning the petition of ITT Rayonier
.........Incorporated appealing revisioon of stumpage rates on the
.........Crane CREEK Logging Unit, Quinault Reservation ...The subject
appeal is made on the grounds that (1) adjustment of stumpage rates are
not warranted by the trend of economic conditions in the West Coast
forest products industries, and (2) the adjustments made are based upon
erroneous facts. ...In support of the appeal, the patition expands the
remarks carried in their initial memorandum of protest dated June 24,
1969. We have already commented on much of these in our memorandum of
June 26, 1969. We have avoided repetition herein and this memorandum
should be considered as supplemental to the one of June 26. ...Section
I of the petition deals with economic conditions and contains several
graphs on product values. The graphs on page 5 and 6 are from the
publication Random Lengths and list general industry price indications
which are not representative of the production from the Crane Creek
Logging Unit. the tables and graphs of page 10 through 15 are copies of
exhibits furnished Rayonier with updating provided by us to June 30,
1969. These (Exhibit H, I, & J from our economic report dated June 26,
1969) are included to illustrate the drop in product prices of cedar and
hemlock, which species make up the bulk of the Crane Creek production.
The graphs also illustrate the long ascendancy of the product prices.
...The Rayonier petition mentions an assortment of factors bearing on
economic conditions such as: housing, construction, stock market
prices, interest rates, etc., but mainly deals with the decline of
end-product prices. These prices began to decline in mid-March 1969
from record heights and Rayonier presents their present status as also
the future. They would have any stumpage adjustment deferred for
several months. They state that in the face of the product price
decline and their forecast of "an unstable and precerious period in the
Nation's economic life," that no action should have been taken to revise
stumpage rates. ...The Crane Creek stumpage rates were last revised for
effective date of January 1, 1969, using the log market prices of the
second quarter of 1968 and 1967 cost experiences. The decision to
revise rates is made on the reasonably known record. The period
examined has been at least one year in length. ...If the stumpage rate
revising process were a simple, quickly invoked process, the final
actions could be more current to the information used. To stop for
insertion of information accured during the long process, or newly made
projections, would result in no action ever being completed unless there
were provisions for retro-active application of the stumpage rates. As
events have shown, had we waited for second quarter log prices, we would
merely be dseper in accusation of selecting the highest log market
point. ...The usual seasonal decline in log prices in the fourth and
first quarters have in the past tended to balance for the lag between
the log prices of the quarter used as the base of the revision and the
effective date of the revised stumpage rates. In the present situation,
this balancing did not occur and at January 1, 1969, the new stumpage
rates were already well behind log values. By the end of the first
quarter of 1969, the average log prices had shown additional large
increases and have continued to increase in the second quarter of 1969.
The situation clearly called for correction of stumpage rates as they
had long since ceased to properly reflect the true market value of the
stumpage. ...For all their penchant for the use of the information of
the immediate present and speculation on the future, Rayonier declined
to consider possible use of the second quarter 1969 log prices and
instead revert to calculations using fourth quarter 1968 log prices as
the base for a possible revision. We do not doubt that if the present
down market continues, Rayonier would eventually request revision of
stumpage rates based on a past down market and that this would be a fair
and logical action on their part. ...We are here concerned with
stumpage appraisals such as are the point of public discussion involving
BLM and Forest Service timber. ...We are concerned with the internal
workings of a long-term contract and with making fair adjustments for
changes inherent in the term of such a contract. The contracting has
taken place and is binding on the parties to the contract. The BLM and
Forest Service sales offerings still have the option of choice and
decision by the potential parties to a contract. ...In discussions with
the Indian stumpage owners, the dominant complaint has been that new
stumpage rates have been outdated, soon after the effective date of the
rates, by the rise in log and product values. They see the current
revision as a correction of this. They are not perturbed by the
purchaser's declining price arguments since they foresee that the
stumpage rates will eventually be affected by the decline even though
the then future may indicate rising values. ...To illustrate an effect
of the stumpage revision process, we have enclosed the identical graphs
(Exhibits H, I, & J) that Rayonier uses in their petition. Inserted on
the graphs are lines representing the fixed status of log prices used in
rate calculations and the fixed status of stumpage rates for the time
period of the rates. The area over the base line is then representative
of the advantages product-pricewise that the purchaser has enjoyed in
the rising market. ...As accompanying exhibits, we have graphed a
similar relationship using log prices instead of product prices. From
this view you can understand the seeming unconcern of the Indian
stumpage owner with the lowered product prices. We agree that an
overreaction to product price levels is not equitable to the stumpage
owners and it should be kept in mind that average log values, the
historic value measure of the contract, increased substantially in the
second quarter of 1969. It is also well to note here that although
Rayonier uses product prices to justify their petition, they have in the
past been adamant in their opposition to the use of end-product prices
to determine stumpage rates. ...The market may be presentlyy
indeterminant but all economic opinion is not as doleful as that put
down by Rayonier. We have attached some opinions which we feel have
merit along with other information of interest. We continue to be of
the opinion that use of the first quarter 1969 IFA log prices and the
subsequent revision of stumpage rates was a needed and proper action
under the contract.... ...Section II of the petition deals with the
erroneous facts which Rayonier contends were used in the rate
determination. Individually, they are stated as: ......1. The first
quarter IFA log prices were temporary and abnormal.... ...2.
Intercompany log transaction volume was not considered. ...3. Free
alongside ship (F.A.S.) costs are not included in logging costs. ...4.
The 1958 profit and risk allowance calculation contained errors. ...
...5. Increases in wage rates are not included in logging costs. ...6.
Road development costs are inadequate by Rayonier's experience. The
log values represented by the first quarter IFA reports have been
supported by the second quarter report. Contrary to the inferences of
Rayonier, the second quarter 1969 reports prices well above those of the
first quarter and the doubling of volume reported. In reality
Rayonier's petition is to have the high product and log prices of the
past year dropped from any consideration in the determination of
stumpage rates. ...The matter of intercompany log transactions has been
discussed in detail in past actions. Our position is unchanged from
that appearing in the record. We would hope this continuing issue could
be resolved and we are currently, in cooperation with Rayonier,
obtaining specific information from their records on these transactions.
At this time it is only an information gathering action. We are also
making more inquiries as to log transactions in the Grays Harbor area
that are not reported to IFA. Initial information is that several
companies doing both domestic and export business do not report. ...The
log prices reported to IFA are a range of transactions which include
differentials because of transportation costs to points of delivery,
e.g., rafts in the water, brow-log or dock at a mill, loaded on rail
cars at reloads, or delivered alognside vessels (F.A.S.) in rafts or on
dock. The practice of selling F.A.S. is not widespread even where it
occurs the most, the Grays Harbor market. The item F.A.S. cost on sales
invoices is being discussed within the IFA with the probable intent of
deleting this factor from invoices. This may eventually remove this
issue but may not necessarily improve the equality of the average prices
reported due to the portion of the sales that are made on abasis short
of destination (port dock) of the logging cost allowances. ...Rayonier
states that the profit and risk factor of 1.1045 should have been
calculated by a different selection of data. What they label
substantial errors, in our opinion, is argument on the judgment
exercised in calculating the factor. ...In reviewing the calculations
and selection of data, we note the calculation used the stumpage rtes
tht became effective July 1, 1952, instead of the actual bid rates. We
could well argue this fact which results in a much lower profit and risk
factor. We believe it more pertinent that the 1.1045 factor has been
reviewed in previous stumpage rate appeals and accepted. The contention
pursued by Rayonier, we feel, has no bearing on the revision of stumpage
rates. ...Our memorandum of June 26, 1969, commented upon the logging
cost increase due to wage increases. We have nothing objective to add
to these comments. Discussion in trade publications as to the
absorption of the increased wage rates runs the gamut of stumpage,
productivity, corporate profits and consumer, and combinations thereof.
The june 26 memorandum also commented on the logging coat allowance for
road development. Our records show a combined allowance for road
development and maintenance of $2.60 to December 31, 1968, compared
against costs reported by Rayonier of $2.52....... ...The following are
enclosed in duplicate: ...1. Exhibits H, I, & J of the June 26, 1969
economic report and accompanying graph of composite log prices. ...2.
Opinion and information from publications-- .........Forest Industries,
July 1969 .........Crow's Weekly Letter July 25, 1969 .........Marple's
Business Roundup July 23, 1969 ............A.W. GALBRAITH
............Assistant Area Director ............(Economic Development)
Enclosures 8 MAP OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL MAP
OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
HES-004-1122-1131
HES-004-1122-1135
IIR69.3
COMM OF INDIAN AFF ; FORESTRY PROGRAM
690700
CORRESPONDENCE
LELAND, JOHN D
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL
HES-004-1132-1134
HES-004-1122-1135
IIR69.3
690723
CORRESPONDENCE
; ELLIOT MARBLE & AS
...PUBLISHED ALTERNATE WEDNESDAYS BY ELLIOT MARPLE & associates
...COLMAN BUILDING SEATTLE WASHINGTON 98104 MA2-0155
............Wednesday, July 23, 1969 No. 513 The first half-year brought
record-breaking profits in banking ...and among major integrated
manufacturers of forest products. In ...banking (see summary and table,
p. 2-3) earnings rose as the ...volume of loans built up and as interest
rates reached the highest ...level in modern times. But costs in
banking, as in every other ...business, continue to work upward, and any
easing in interest ...rates or loan volume will take some of the bloom
off earnings. In forest products those integrated producers which so
far have ...reported midyear results show marked increases in earnings.
As ...examples, the net at St. Regis climbed 28% in the first six
...months, Weyerhaeuser 39%, Georgia-Pacific 47% and Boise ...Cascade
53%. ......The first quarter saw plywood and lumber prices reach record
...highs. When those prices tumbled in the second quarter, the ...pulp
and paper segment, helped by strong demand and small but ...widespread
increases in prices, sustained the upward momentum. ......It is
significant that several companies which report earnings ...by calendar
quarters show a slower growth in the second quarter ...than the first.
(Comparative results for 14 publicly held ...forest-products companies
in our next issue.) A whopping apple crop is on the trees in the Pacific
Northwest. ...The government forecast indicates production in
Washington, the ...leader in the nation, at 1.45-billion pounds. That's
up 41% from ...1968, an off year, and up 17% from 1967, a good year.
The crop ...is placed at 146-million pounds in Oregon, up 18% from 1967
and ...in Idaho at 105-million, up 49% from 1967. ......The Washington
crop will be the largest since 1931, but since ...then the U. S.
population has grown by almost 80-million. For ...the nation as a whole
the crop ranks as the largest since 1937 -- an ...indication of lower
prices. As a result the grower-supported ...Washington State Apple
Commission has set a budget of ...$1.6-million, up sharply from last
gyear, and has called for a ...record early-season market promotion.
Apartment vacancies in the four-county area of metropolitan ...Portland
have declined in the past year, a contrast to an ...unhealthy increase
in the Seattle area (see Roundup June 25 '69). ......A postal survey of
the Portland area made for Federal ...Housing Administration in late
April Showed 3,304 apartment ...vacancies or 6.1% and 3,576 additional
units under construction. ...This compares with 3,902 vacancies or 7.6%
a year ago, when 2,305 ...units were under construction. On
single-family houses the ...vacancy rate was down to 1.9%.
......Beaverton on the fast-growing west side had 279 apartment
...vacancies this year or 7.7% and 328 units were under construction.
...Tigard had 174 vacancies or 15.3% and 675 under construction. an
indication why new apartment houses can get mortgage money that
single-family residences cannot came during one session of the Downtown
Housing Conference.
HES-004-1135-1135
HES-004-1122-1135
IIR69.3
690801
CORRESPONDENCE
VINCENT, W L ; ITT RAYONIER INC
Mr. George M. Felshaw, Superintendent Western Washington Agency 3006
Colby Avenue Everett, Washington 98201 Dear Mr. Felshaw:
............Crane Creek Logging Unit ............Timber Contract No.
I-101-IND-1902 ......In connection with the valuation of timber for
stumpage pruposes under the above contract, ITT Rayonier has long
contended that quarterly reported Industrial Forestry Association log
prices for hemlock and white fir, and particularly the No. 3 grade
prices, are artifically inflated because of the substantial volume of
low-grade logs produced in company operations that are not reported to
I.F.A. because they are consumed in Rayonier's Hoquiam pulp mill.
(Weyerhaeuser similarly uses a considerable volume of low-grade hemlock
and white fir.) ......In response to a request from your Portland Area
Office, we have made and attach a copy of a study just completed by us
and concurrently reviewed by your Mr. Don Deurr while at this office,
showing the total volume of roundwood by source and grade used in
Rayonier's Hoquiam pulp mill in 1968. The volume is further broken down
between purchased logs reported to I.F.A. and that volume not reported.
In the latter category, a significant volume of "purchased" logs are not
reported because they are purchased on a weight basis. This volume is
of pulpwood size (small) and for practical purposes all low-grade.
......The Crane Creek volume has been assigned a grade distribution on
the basis of a three month (2nd Quarter 1969) study based on actual
experience for the period, the first time such information was available
for this type of breakdown. ......"Own" stumpage is produced from
fee-owned lands. Mr. George M. Pelshaw August 1, 1969 Page Two
......Insofar as values are concerned, we believe it would be
appropriate to assign the weighted average Grays Harbor market price
developed from I.F.A. reports to the volume in grades 1 and 2 and water
price to grade 3 since the latter is a pulp log. ......If we can be of
further assistance, please advise. ............Yours very truly,
............ITT RAYONIER INCORPORATED ............Manager - Land
Department ............Northwest Timber Division WLVincent/lb
attachement cc: K. Hadley - Portland Area Office ... D. Clark - Hoquiam
Office ITT RAYONIER INCORPORATED - NORTHWEST TIMBER DIVISION
............HOQUIAM WASH STATEMENT OF TOTAL MILLIONS FETL BM OF ROUND
LOGS USED IN HOQUIAM PULP MILL DURING THE CALENDAR YEAR 1968 TABLE
OMITTED SEE ORIGINAL
HES-004-1136-1138
HES-004-1136-1138
IIR69.2
FELSHAW, GEORGE M ; W WASH AGENCY
690804
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
............BUREAU OF INDIAN AFFAIRS ............PORTLAND AREA OFFICE
............Trend of Economic CONDITIONS ............Relative to
Revision of Stumpage Rates .........Crane Creek Logging Unit, Quinault
Reservation ...The Crane Creek Logging Unit timber contract provides in
Section II for revision of stumpage rates when, in the opinion of the
Approving Officer, theyy do not properly reflect the true market value
of the stumpage. Stumpage rates were last revised for effective date of
January 1, 1969. ...Since the last revision, log prices and product
prices have increased to an extent that current revision of stumpage
rates are warranted. Upon the determination tht there has been
significant change, the indicated stumpage rates have been developed
from the base of Industrial Forestry Association (IFA) log prices, U.S.
Forest Service West Side Logging cost data, and other established cost
data sources. ...The information and exhibits provided herein examine
the trend of economic conditions in the West Coast forest products
industries and support the revision of stumpage rates action.
............LOG VALUE ...The average log values by grade for the
combined Puget Sound - Grays-Willapa Harbor Districts for the second
quarter of 1968 and first quarter of 1969, as reported by IFA are
tabulated below to show the changes in log market prices. These grade
prices are used to calculate revised stumpage rates and the prices
listed include the effect of the volume and value of mixed grade and
ungraded log sales. TABLE OMITTED SEE ORIGINAL ...Exhibit A-1 lists the
average log values for the combined Puget Sound - Grays-Willapa Harbors
Districts for the first quarter of 1969 and develops comparable values
using the three-year periods of 1965-1967 and 1966-68 percentage log
grade recovery from the Crane Creek Logging Unit. The data developed in
Exhibit A-1 is carried into Exhibits A-2 and A-3 to since the last
revision, which used 2nd quarter 1968 IFA log prices, is tabulated
below: TABLE OMITTED SEE ORIGINAL ...A summary of changes in log grade
prices shown in Exhibit B is listed below with a similar summary for the
previous report revising rates for effective data January 1, 1969.
TABLE OMITTED SEE ORIGINAL ...Exhibits C-1 and C-2 give transaction
information of timber sales in the Forks District, State of Washington
forest and the Gquinault District of the Olympic National Forest. These
forests are in the close vicinity of the Quinault Reservation and the
forests most nearly comparable to the Quinault forest ...The export log
market continues to be a major factor in the rise of average log prices,
particularly of the whitewoods within the concern of this report. The
rise in log prices for cedar, however, is most evident in domestic
(water) sales. The percent of log sales reported as export for the
combined Puget Sound - Grays-Willapa Harbor Districts by the Industrial
Forestry Association are listed in Exhibit D and are summarized below.
Cedar and hemlock are the principle species of the Quinault Reservation
timber sales. TABLE OMITTED SEE ORIGINAL ............PRODUCT VALUE
...Trends in product value particular to cedar and hemlock which have
occurred since the 1968 revision of stumpage rates are illustrated in
the following summary and the indicated exhibits and accompanying
graphs. The general lumber and plywood prices in the West Coast markets
have showed somewhat similar movement. The product value peaks reached
within the first quarter of 1969 have had substantial falloff after the
period of unprecedented rise. Product price direction (mid-May 1969) as
indicated by weekly trade summaries has been downward in what can be
termed a hesitant market. The prices for cedar and hemlock remain well
above those of a year ago. TABLE OMITTED SEE ORIGINAL ............COSTS
...Examination of information from several sources indicates that the
cost of producing logs has continued to follow the previous patterns.
The overall effect of costs and productivity has been a moderate
increase in logging costs. Some cost items have increased, whereas
others have decreased. Indicative of this is stump to truck cost sample
statistics developed by the U.S. Forest Service for the last three
years' experience, 1965 - $17.32, 1966 - $17.28, 1967 - $17.40 and 1967
(revised March 1969) $17.57. ............INDICATED STUMPAGE RATES
...The computation of indicated stumpage rates are shown in Exhibits K
and M. Source of base cost data is footnoted with reference to Exhibit
M-2. ...Adjustment of stumpage rates indicated for the Crane Creek Unit
are: TABLE OMITTED SEE ORIGINAL ............Prepared by.
............Victor K. Meeker ............Supv. Forester ............Aug.
4, 1969 ............INDICATED STUMPAGE RATES ...The computation of
indicated stumage rates are shown in Exhibits K and M. Source of base
cost data is footnoted with reference to Exhibit M-2. ...Adjustment of
stumpage rates indicated for the Crane Creek Unit are: ...... TABLE
OMITTED SEE ORIGINAL ............INDICATED STUMPAGE RATES TABLE OMITTED
SEE ORIGINAL ............CRANE CREEK ...IFA 1ST QUARTER 1969 ARITHMETIC
AVERAGE LOG VALUES ......PUGET SOUND - GRAYS-WILLAPA HARBOR DISTRICTS
.........INCLUDING MIXED GRADES & UNGRADED TABLE OMITTED SEE ORIGINAL
............CRANE CREEK ............LOG PRICE TREND TABLE OMITTED SEE
ORIGINAL ............CRANE CREEK ............QUALITY CHANGE TABLE
OMITTED SEE ORIGINAL ...IFA Average Grade Prices - Combined Puget Sound
- ...Grays-Willapa Harbor - Columbia ......River Market Areas - Weighted
Average Excluding Mixed ......Grades .........Extended by Crane Creek
Logging Unit Grade Recovery TABLE OMITTED SEE ORIGINAL ...COMBINED
REPORTINGS OF I.F.A. FOR PUGET SOUND--GRAYS-WILLAPA ...HARBOR
......DISTRICTS SHOWING TOTAL VOLUME AND PERCENT OF EXPORT TABLE OMITTED
SEE ORIGINAL ...Average Realization on West Coast Lumber Shipments.
(Total Ave. Realization on lumber shipments from the Douglas-fir Region
of Western Washington, Western Oregon, and Northern California.) TABLE
OMITTED SEE ORIGINAL ...Average Realization on West Coast Lumber
Shipments. (Total Ave. Realization on lumber shipments for the
Douglas-fir Region of Western Washington, Western Oregon, and Northern
California.) TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08-13-61.06) Cedar Bevel Siding Clear
.................(1957-59=100) TABLE OMITTED SEE ORIGINAL
............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08-13-61.06) Cedar Bevel Siding Clear
.................(1957-59=100) TABLE OMITTED SEE ORIGINAL MAP OMITTED
SEE ORIGINAL ............WHOLESALE PRICE Indexes - U.S.D.L.
............(08-13-66.06) Cedar Shingles No. 1
.................(1957-59=100) TABLE OMITTED SEE ORIGINAL
............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08-13-66.06) Cedar Shingles No. 1
.................(1957-59=100) TABLE OMITTED SEE ORIGINAL MAP OMITTED
SEE ORIGINAL MAP OMITTED SEE ORIGINAL ............WESTERN REDCEDAR
............Index Price per MBM ......(Based on Lumber Prices Reported
in Random Lengths) TABLE OMITTED SEE ORIGINAL ............WESTERN
REDCEDAR ............Index Price per MEM ......(Based on Lumber Prices
Reported in Random Lenghts) TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE
ORIGINAL ............WESTERN REDCEDAR SHINGLE INDEX PRICES
.................NO. 2 LOG PER MBM LOG SCALE ............(Based on
Prices Published in Random Lenghts) TABLE OMITTED SEE ORIGINAL
............WESTERN REDCEDAR SHINGLE INDEX PRICES .................NO. 2
LOG PER Mbm LOG SCALE ............(Based on Prices Published in Random
Lenghts) TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL
............WESTERN HEMLOCK ............Index Price per MBM ......(Based
on Lumber Prices Reported in Ramdom Lenghts) TABLE OMITTED SEE ORIGINAL
............WESTERN Hemlock ............Index Price per MBM ......(Based
on Lumber Prices Reported in Random Lenghts) TABLE OMITTED SEE ORIGINAL
MAP OMITTED SEE ORIGINAL .........CRANE CREEK LOGGING UNIT
............LOGGING COSTS TABLE OMITTED SEE ORIGINAL .........CRANE
CREEK LOGGING UNIT ............LOGGING COSTS TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL ...Indcated Stumpage by Log Grade, Crane
Creek Logging Unit, and Weighted Average Rate by Species Determined from
1st Quarter 1969 /1/ Log Prices and 1967 Cost Data (Revised). TABLE
OMITTED SEE ORIGINAL ...Indcated Stumpage Rates by Log Grade, Crane
Creek Logging Unit, and Weighted Average Rate by Species Determined from
1st Quarter 1969 /1/ Log Prices and 1967 Cost Data Revised. TABLE
OMITTED SEE ORIGINAL ...Indicated Stumpage Rates by Log Grade, Crane
Creek Logging Unit, and Weighted Average Rate by Species Determined from
1st Quarter 1969 /1/ Log Prices and 1967 Cost Data (Revised). TABLE
OMITTED SEE ORIGINAL ...Indicated Stumpate Rates by Log Grade, Crane
Creek Logging Unit, and Weighted Average Rate by Species Determined from
1st Quarter 1969 /1/ Log Prices and 1967 Cost Data Revised. TABLE
OMITTED SEE ORIGINAL ...Indicated Stumpage Rates by Log Grade, Crane
Creek Logging Unit, and Weighted Average Rate by Species Determined from
1st Quarter 1969 /1/ Log Prices and 1967 Cost Data (Revised). TABLE
OMITTED SEE ORIGINAL ...Indicated Stumpage Rates by Log Grade, Crane
Creek Logging Unit, and Weighted Average Rate by Species Determined from
1st Quarter 1969 /1/ Log Prices and 1967 Cost Data Revised. TABLE
OMITTED SEE ORIGINAL ............1969 REVISION ............CRANE CREEK
LOGGING UNIT ............LOGGING COST COMPUTATION TABLE OMITTED SEE
ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ...Average Realization on West
Coast Lumber Shipment. (Total Ave. Realization on lumber shipments from
the Douglas-fir Region of Western Washington, Western Oregon, and
Northern California.) TABLE OMITTED SEE ORIGINAL Source--January through
April 1965 - Industrial Facts--WPA ............May 1965 to date -
Western Limber Facts--WWPA ............WHOLESALE PRICE INDEXES -
U.S.D.L. ............(08-13-61.06) Cedar Bevel Siding Clear
............(1957-59-100) TABLE OMITTED SEE ORIGINAL
............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08-13-66.06) Cedar Shingles No. 1 ............(1957-59-100)
TABLE OMITTED SEE ORIGINAL ............WHOLESALE PRICE INDEXES -
U.S.D.L. ............(08-13-66.66) Cedar Shingles No. 1
............(1957-59-100) TABLE OMITTED SEE ORIGINAL ............WESTERN
REDCEDAR ............Index Price per MBM ............(Based on Lumber
Prices Reported in Random Lengths) TABLE OMITTED SEE ORIGINAL
............WESTERN REDCEDAR SHINGLE INDEX PRICES ............NO. 2 LOG
PER MBM LOG SCALE ............(Based on Prices Published in Random
Lenghts) TABLE OMITTED SEE ORIGINAL ............WESTERN HEMLOCK
............Index Price per MBM ............(Based on Lumber Prices
Reported in Random Lengths) TABLE OMITTED SEE ORIGINAL
HES-004-1139-1188
HES-004-1139-1188
IIR67.1
641023
CORRESPONDENCE
WILCOX, EARLER
DOCUMENT OMITTED SEE ORIGINAL ...The second attachment indicates that
during the third and fourth quarters of 1963, 23.9 percent of the log
sales reported by the Industrial Forestry Association for the combined
Grays-Willapa Harbors and Puget Sound District went to exporters.
During the first and second quarters of 1964, this percentage was 29.8
percent. This represents an increase of 5.9 percent. ...Because of the
fairly brief period in which the sale of export Logs has exerted such a
profound influence on the log markets, detailed cost information
concerning the extra cost involved in handling export logs is not
available. One operator in the Hoquiam, Washington, area has reported
costs in excess of $6 per MBM in operating his sorting yard. This is
apparently a rather elaborate operation located near the Hoquiam River
and it enables the operator to obtain premium rates in export sales.
Another operator indicated a cost in excess of $2 per MBM was involved
in the operation of his sorting yard located near the woods operation.
...Until such time as better cost information is available, we are
considering $2.50 per MBM to represent the average extra cost involved
in the handling of export logs. We are therefore recommending an
additional cost alloance of $0.15 per MBM to account for the increase in
volume handled in export between the last half of 1963 and the first
half of 1964. This is calculated as follows: ......5.9 percent of
$2.50 - 14.8 cents rounded to 15 cents ...Considerable time has passed
since stumpage adjustment studies were started on this unit. We have
been faced with significant changes in log market prices effected by
increasing volumes going into export over the past year. We now believe
the new cost data results in a fair appraisal of the stumpage involved.
...We therefore recommend that our previously recommended rates be
adjusted for the cost differential referred to above as follows: TABLE
OMITTED SEE ORIGINAL ...At the earliest possible data we will furnish
you with a summary of events involved in the consultation and various
meetings relating to this addjustment of stumpage rates. We do not
believe it to be in the best interest of any of the parties involved in
this contract to delay putting the new rates into effect at the earliest
possible data. ...We have discussed the provision of Section II of this
contract, as it pertains to the required period of notice, with Mr.
Grubbe in the Regional Solicitor's Office. He has indicated the most
reasonable interpretation would appear to be that rates be increased 30
days following notice to the Purchaser that specific rates were to be
put into effect on a specified date. He did, however, indicate Section
II might be interpreted to the effect that notice was given on September
9, 1964, and therefore the rates might be increased as of November 1,
1964. ...In any event, we strongly recommend the change in stumpage
rates be made effective at the earliest possible date, and in no event
later than December 1, 1964. ............Sincerely yours,
.........(SGD) EARLE R. WILCOX ......Acting Assistant Area Director
Enclosures cc:......... Supt., Western Washington Agency Hoquiam
Subagency KWHadley:mw 10-23-64 ... Note to Western Washington Agency:
Please hand a copy of this letter to the Quinault Tribal Council.
.........ESTIMATED LOGGING COSTS FOR .........CRANE CREEK LOGGING UNIT
............1963 TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
.........CRANE CREEK UNIT ............1964 TABLE OMITTED SEE ORIGINAL
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
HES-004-1191-1198
HES-004-1189-1198
IIR64.3
COMM OF INDIAN AFF ; BR OF FORESTRY
681120
CORRESPONDENCE
MEEKER, VICTOR K ; BIA
.........BUREAU OF INDIAN AFFAIRS ............PORTLAND AREA OFFICE
.........Trend of Economic Conditions ......Relative to Revision of
Stumpage Rates ...Crane Creek Logging Unit, Quinault Reservation ...The
Crane Creek Logging Unit timber contract provides in Section 11 for
revision of stumpage rates when, in the opinion of the Approving
Officer, they do not properly reflect the true market value of the
stumpage. Stumpage rates were last revised for efective date of January
1, 1968. ...Since the last revision, log prices and product prices have
continued their upward course and to an extent that current revision of
stumpage rates are warranted. Upon the determination that there has
been significant change, the indicated stumpage rates have been
developed from the base of Industrial Forestry Association (IFA) log
prices, U.S. Forest Service West Side logging cost data, and other
established cost data sources. ...The information and exhibits provided
herein examine the trend of economic conditions in the West Coast forest
products industries and support the revision of stumpage rates action.
............LOG VALUE ...The average log values by grade for the
combined Puget Sound -Grays-Willapa Harbor Districts for the second
quarters of 1967 and 1968, as reported by IFA are tabulated below to
show the changes in log market prices.# TABLE OMITTED SEE ORIGINAL TABLE
OMITTED SEE ORIGINAL ...Exhibit A-1 lists the average log values for the
combined Puget Sound-Grays-Willapa Harbors Districts for the second
quarter of 1968 and develops comparable values using 1966 and 1967
percentage log grade recovery from the Crane Creek Logging Unit. The
data developed in Exhibit A-1 is carried into Exhibits A-2 and A-3 to
compare log price and log quality changes. A summation of the changes,
since the last revision, which used 2nd quarter 1967 IFA log prices, is
tabulated below: TABLE OMITTED SEE ORIGINAL ...Exhibit B reveals the
change between the 2nd quarter of 1967 and the 2nd quarter of 1968 in
the average prices paid for logs in the combined Puget
Sound-Grays-Willapa Harbor-Columbia River Market Districts. Exhibit C.
reveals the comparable price change which has occurred in the
Grays-Willapa Harbor District. A summary of Exhibits B and C follows:
TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL ...The export log
market has reached new heights of volume and log prices, and continues
to be a major factor in the rise of average log prices. The percent of
log sales reported as export for the combined Puget Sound-Grays-Willapa
Harbor Districts by the Industrial Forestry Association are listed in
Exhibit D and are summarized below. Cedar and hemlock are the principle
species of the Crane Creek Unit. TABLE OMITTED SEE ORIGINAL ...Log
grade prices used in the stumpage rate computations of Exhibit M are the
IFA combined Puget Sound-Grays-Willapa Harbor reportings of the 2nd
quarter 1968. The prices include the effect of the volume and value of
mixed grade and ungraded log sales. ............PRODUCT VALUE ...Trends
is product value particular to cedar and hemlock which have occurred
since the 1967 review of economic conditions are illustrated in the
following summary, and the indicated exhibits and accompanying graphs.
The general lumber and plywood prices in the West Coast markets have
similarly moved up strongly. TABLE OMITTED SEE ORIGINAL
............COSTS ...Examination of information from several sources
indicates that the cost of producing logs has continued to follow the
previous patterns. The overall effect of costs and productivity has
been a moderate increase in logging costs. Some cost items have
increased, whereas others have decreased. Indicative of this is stump
to truck cost sample statistics developed by the U. S. Forest Service
for the last three years' experience, 1965 - $17.32, 1966 - $17.28, and
1967 - $17.40. ...State of Washington information related to labor
productivity is shown in Exhibit N. The Bureau of Labor Statistics
index of output per manhour in the private economy rose 1.4 percent in
1967. Gain in the first half of 1968 is reported at 2.4 percent.
.........INDICATED STUMPAGE RATES ...The computation of indicated
stumpage rates are shown in Exhibits K and M. Source of base cost data
is footnoted with reference to Exhibit M-2. ...Adjustment of stumpage
rates indicated for the Crane Creek Unit are: ...... TABLE OMITTED SEE
ORIGINAL ............CRANE CREEK ......IFA 2ND QUARTER 1968 ARITHMETIC
AVERAGE LOG VALUES .........PUGET SOUND - GRAYS-WILLAPA HARBOR DISTRICTS
.........INCLUDING MIXED GRADES TABLE OMITTED SEE ORIGINAL
............CRANE CREEK .........LOG PRICE TREND TABLE OMITTED SEE
ORIGINAL ............CRANE CREEK .........QUALITY CHANGE TABLE OMITTED
SEE ORIGINAL .........IFA Average Log Grade Prices - Combined Puget
Sound - ............Grays-Willapa Harbor - Columbia ............River
Market Areas - Weighted Average Excluding ............Mixed Grades
............Extended by Crane Creek Logging Unit Grade Recovery TABLE
OMITTED SEE ORIGINAL .........IFA Average Log Grade Prices -
Grays-Willapa Harbor ............Market Area ............Weighted
Average Excluding Mixed Grades .........Extended by Crane Creek Logging
Unit Grade Recovery TABLE OMITTED SEE ORIGINAL .........COMBINED
REPORTINGS OF I.F.A. FOR PUGET SOUND--GRAYS- ............WILLAPA HARBOR
............DISTRICTS SHOWING TOTAL VOLUME AND PERCENT OF
............EXPORT TABLE OMITTED SEE ORIGINAL ...Average Realization on
West Coast Lumber Shipments. (Total Avg. Realization on lumber
shipments from the Douglas-fir Region of Western Washington, Western
Oregon, and Northern California.) TABLE OMITTED SEE ORIGINAL MAP OMITTED
SEE ORIGINAL ............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08-13-61.06) Cedar Bevel Siding Clear
............(1957-59-100) TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE
ORIGINAL ............WHOLESALE PRICE INDEXES - U.S.D.L.
............(08-13-66.06) Cedar Shingles No. 1 ............(1957-59-100)
TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL ............WESTERN
REDCEDAR ............Index Price per MBM ............(Based on Lumber
Prices Reported in Random Lengths) TABLE OMITTED SEE ORIGINAL MAP
OMITTED SEE ORIGINAL ............WESTERN REDCEDAR SHINGLE INDEX PRICES
............NO. 2 LOG PER MBM LOG SCALE ............(Based on Prices
Published in Random Lengths) TABLE OMITTED SEE ORIGINAL MAP OMITTED SEE
ORIGINAL ............WESTERN HEMLOCK ............Index Price per MBM
............(Based on Lumber Prices Reported in Random Lengths) TABLE
OMITTED SEE ORIGINAL MAP OMITTED SEE ORIGINAL ............CRANE CREEK
LOGGING UNIT ............LOGGING COSTS TABLE OMITTED SEE ORIGINAL
............LOG SORTING COSTS ............(1967 Experience) TABLE
OMITTED SEE ORIGINAL ...Indicated Stumpage Rates by Log Grade, Crane
Creek Logging Unit, and Weighted Average Rate by Species Determined from
2nd Quarter 1968 /1/ Log Prices and 1967 Cost Data. TABLE OMITTED SEE
ORIGINAL ...Indicated Stumpage Rates by Log Grade, Crane Creek Logging
Unit, and Weighted Average Rate by Species Determined from 2nd Quarter
1968 /1/ Log Prices and 1967 Cost Data. TABLE OMITTED SEE ORIGINAL
............STATE OF WASHINGTON ............EMPLOYMENT, WAGES AND
PRODUCTION FOR THE LOGGING ............INDUSTRY TABLE OMITTED SEE
ORIGINAL
HES-004-1199-1227
HES-004-1199-1227
IIR68.1
670929
CORRESPONDENCE
HADLEY, KENNETH W
cc:......... Branch subject Branch chrony Yellow chrony AIRMAIL ...
Commissioner of Indian Affairs Washington, D. C. 20242 Attention:
Branch of Forestry Sir: ...... ...We are enclosing a report pertaining
to the trend of economic conditions as it relates to the Crane Creek
Logging Unit timber contract. In our judgment concitions in the West
Coast forest products industries have changed to such an extent that
stumpage adjustments are warranted. ...We recommand you notify the
Purchaser and Indians in General Council of intention to revise the
stumpage rates under Contract No. I-101-Ind-1902 in accordance with the
trend of economic conditions in the West Coast forest products
industries. We suggest such notice establish a 30-day period during
which the Purchaser and Indians may arrange through the Superintendent
for donsultation with the Approving Officer's representative concerming
any factors which may be pertinent to the establishment of new stumpage
rates. ...In accordance with past procedures upon conclusion of the
consultation, a report containing our specific recommendations will be
submitted to your office. ............Sincerely yours,
............Kenneth W. Hadley ............Acting Assistant
............Area Director Enclosures (2) cc:......... Supt., Western
Washington Agency w/enclosure Hoquiam Subagency w/enclosure Mr. Ricgard
Neely, Office of Reg. Sol. w/enclosure VKMeeker:du - 9-28-67
............TREND OF ECONOMIC CONDITIONS ...Section 11 of the Crane
Creek Logging Unit Timber Contract, Quinault Reservation, provides for
adjustment of stumpage rates when in the opinion of the Approving
Officer they do not properly reflect the true market value of the
stumpage. Stumpage rates were adjusted most recently on January 1,
1966. Since then market conditions have changed to the extent that
current adjustment of stumpage rates are warranted. The information and
exhibits provided herein examine the trend of economic conditions in the
West Coast forest products industries and support the stumpage
adjustment action. ...The average log values by grade for the combined
Puget Sound-Grays-Willapa Harbor Districts for the third quarter of 1965
and the second quarter of 1967 reveals the following changes in log
market prices: TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL
...Exhibits A-1, A-2, and A-3 relate to the average computed log values
of the timber covered by this contract based on combined 2nd quarter
1967 Puget Sound-Grays-Williapa Harbor District Prices and percentage
log grade recovery from the Crane Creek Unit during Calendar Years
1964-1966. A summation of the changes since the previous adjustment
based on 3rd quarter 1965 conditions follows: TABLE OMITTED SEE
ORIGINAL ...Exhibit B reveals the change between the 3rd quarter of 1965
and the 2nd quarter of 1967 in the average prices paid for logs in the
combined Puget Sound-Grays-Willapa Harbor District. A summary of these
changes follows: ............Increase Between 3rd Qtr. 1965 and 2nd
Qtr. 1967 ............Combined Puget Sound- ............Grays-Willapa
Harbor & Grays-Willapa TABLE OMITTED SEE ORIGINAL ...The export log
market continues to exert a profound influence on log market prices
throughout the West Coast forest product industry. The overall total
percentages of log sales reported as export for the Grays-Willapa Harbor
and Puget Sound Districts by I.F.A. show a pronounced increase between
the 3rd quarter 1965 and 2nd quarter 1967. The increase in export of
the species involved under this timber sale contract is shown in Exhibit
D and is summarized below. TABLE OMITTED SEE ORIGINAL ...Prior to the
adjustment of stumpge rates put into effect January 1, 1966, changes in
the ratios of stumpage to average log prices were made effective
December 1, 1964. The earlier adjustments were based on studies
reflecting conditions existing during the second quarter of 1964. Some
additional trends of economic conditions in the West Coast forest
products industries which have occurred since the 1966 adjustments are
shown below: TABLE OMITTED SEE ORIGINAL ...Examination of production
and employment to the logging industry, Grays Harbor Area, indicates the
cost of producing logs has been relatively stable over the last few
years. Labor cost increases, a major part of logging cost increases,
have evidently been offset by increase in labor productivity. A similar
indication can be drawn from the West Side Logging Cost Guides developed
by the U.S. Forest Service and the stump to truck cost sample
statistics. Mean cost truck to stump for the years 1962 through 1966
experience are: ...... TABLE OMITTED SEE ORIGINAL ...The 1965 and 1966
statistics include the costs of scaling, fire protection and
unmerchantable timber felling not included in previous years' data.
These costs are approximately $1.75. ...Logging costs /1/ used in
arriving at the indicated stumpage rates were obtained from the U. S.
Forest Service Handbook of Timber Appraisal, Chapter 415. Since the
Handbook does not allow for the handling of logs for export, costs were
examined at three sorting yards to arrive at a cost factor. Exhibit L
shows the resulting sorting cost. Adjustment of stumpage rates
indicated for the Crane Creek Logging Unit are: TABLE OMITTED SEE
ORIGINAL ##FN1 See Exhibit K ............CRANE CREEK ...IFA 2ND QUARTER
1967 ARITHMETIC AVERAGE LOG VALUES ......PUGET SOUND-GRAYS-WILLAPA
HARBOR DISTRICTS ............INCLUDING MIXED GRADES TABLE OMITTED SEE
ORIGINAL ............CRANE CREEK ............LOG PRICE TREND TABLE
OMITTED SEE ORIGINAL ............CRANE CREEK ............QUALITY CHANGE
TABLE OMITTED SEE ORIGINAL .........Trend of Average Log Grade Prices in
the Combined ............Puget Sound-Grays-Willapa Harbor-Columbia River
............Market Areas as Related to the Crane Creek Unit
............Stumpage--Wtd. Average Excluding Mixed Grades TABLE OMITTED
SEE ORIGINAL .........Trend of Average Log Grade Prices in the Combined
............Puget Sound-Grays Willapa Harbor--Columbia River
............Market Areas as Related to the Crane Creek Unit
............Stumpage--Wtd. Average Excluding Mixed ............Grades -
Contd. TABLE OMITTED SEE ORIGINAL .........Trend of Average Log Grade
Prices in the Grays-Willapa ............Harbor Market Area as Related to
Crane Creek Unit ............Stumpage--Arithmetical Ave. Exclud. Mixed
Grades TABLE OMITTED SEE ORIGINAL .........Trend of Average Log Grade
Prices in the Grays-Willapa ............Harbor Market Area - Cont'd.
.........COMBINED REPORTINGS OF I.F.A. FOR PUGET
............SOUND--GRAYS-WILLAPA HARBOR DISTRICTS SHOWING TOTAL
............VOLUME AND PERCENT OF EXPORT TABLE OMITTED SEE ORIGINAL
...Average Realization on West Coast Lumber Shipments. (Total Avg.
realization on lumber shipments from the Douglas-fir Region of Western
Washington, Western Oregon, and Northern California.) TABLE OMITTED SEE
ORIGINAL Source--January 1962 through April 1965 - Industrial Facts-WPA
......May 1965 to date - Western Lumber Facts--WWPA .........WHOLESALE
PRICE INDEXES - U.S.D.L. ............(08-13-61.06) Cedar Bevel Siding
Clear ............(1957-59=100) TABLE OMITTED SEE ORIGINAL
.........WHOLESALE PRICE INDEXES - U.S.D.L. ............(08-13-66.06)
Cedar Shingles No. 1 ............(1957-59=100) TABLE OMITTED SEE
ORIGINAL ............WESTERN REDCEDAR ............Index Price per MBM
.........(Based on Lumber Prices Reported in Random Lengths) TABLE
OMITTED SEE ORIGINAL ............WESTERN REDCEDAR SHINGLE INDEX PRICES
............NO. 2 LOG PER MBM LOG SCALE .........(Based on Prices
Published in Random Lenghts) TABLE OMITTED SEE ORIGINAL
............WESTERN HEMLOCK ............Index Price per MBM
.........(Based on Lumber Prices Reported in Random Lengths) TABLE
OMITTED SEE ORIGINAL ............CRANE CREEK LOGGING UNIT
.........LOGGING COSTS - 1966 EXPERIENCE TABLE OMITTED SEE ORIGINAL
............Sorting Log Costs ............(1966 Experience) (1) Based on
total production, not on footage handled in yard. ...Based on three
yards; source material on file Portland Area Office. ... ...Indicated
Stumpage Rates by Log Grade, Crane Creek Logging Unit, and Weighted
Average Rate by Species Determined from 2nd Quarter 1967 /1/ Log Prices
and 1966 Cost Data. TABLE OMITTED SEE ORIGINAL ##FN1 IFA Grays
Harbor-Puget Sound including mixed grades.
HES-004-1228-1252
HES-004-1228-1252
IIR67.2
COMM OF Indian AFF ; BR OF FORESTRY
670330
CORRESPONDENCE
; RAYONIER INC
............RAYONIER INCORPORATED .........CRANE CREEK TIMBER CONTRACT
............No. 1-101-IND-1902 ......MEMORANDUM IN SUPPORT OF
APPLICATION FOR .........REDUCTION OF STUMPAGE RATES ...BY letter dated
December 23, 1966, addressed to the Commissioner of Indian Affairs and
Superintendent, Western Washington Indian Agency, Rayonier Incorporated
requested reduction of stumpage rates effective at the earliest feasible
date. This memorandum is to present information and expert opinion
which show that the trend of economic conditions in West Coast forest
products industries warrants and requires such reductions. ...Present
stumpage rates efffective since January 1, 1966, are as follows: TABLE
OMITTED SEE ORIGINAL ...It is our judgment that stumpage rates now
warranted are not in excess of the following and that appropriate
changes should be made effective immediately: TABLE OMITTED SEE
ORIGINAL ...1. Rayonier is losing money on Crane Creek Cedar. Over 50%
of the timber in the Crane Creek Unit is cedar. Total production and
cedar production for each of the last three years is as follows: ...
TABLE OMITTED SEE ORIGINAL ...In 1967 it is likely that both total and
cedar production will be further reduced because of economic necessity.
"The proof of the pudding is in the eating." Rayonier lost over $58,000
on Crane Creek cedar during 1966. We see nothing in the economic
conditions that suggests any improvement, in the near future, of prices
or demands for cedar products or that will turn this cedar operation
into a reasonably profitbale one. ...2. Logging Costs Have Increased -
Labor Deficiencies. Wage rates in the logging industry have increased
each year for the last several years, the most recent being effective
June 1, 1966. Further increases are due June 1, 1968. The facts are a
matter of public information, are known to B.I.A., and appropriate
weight must be given to them in computing logging cost allowances. The
productive capacity of labor in logging operations continues to decline
as evidenced, in part, by the following experience. The volume of logs
yarded and loaded in Crane Creek operations has gone from 596 fbm per
man hour in 1963 to 533 fbm in 1964 to 519 fbm in 1965 to 476 fbm in
1966, an overall reduction of 20% in productivity. At the same times,
wage rates have increased by 15% and the labor cost of yarding and
loading per mbm has gone from $4.63 in 1963 to $6.68 in 1966, an
increase of 44%. ...3. Increase in Interest Rates and Tight Money. On
January 1, 1966, when the present stumpage rates became effective, and
for some time before then, the prime interest rate was 4 1/2%. It has
since increased in steps until it reached a high of 6% in August, 1966,
and since March, 1967, has been 5 1/2%. This and other factors have
resulted in substantial increases in interest rates charged on
construction in general, and residential construction in particular.
Because of this, the rate of housing starts has continued to decrease
and is expected to continue depressed. Since residence construction is
the major market for cedar products, the demand for cedar logs and the
price for cedar logs have fallen. Practically the only customers to
whom Rayonier can sell Crane Creek cedar logs are mills in the Grays
Harbor area. Every one of the cedar mills in Grays Harbor has been
materially curtailed and at times shut down during the last year, and
they look forward to further curtailments in the foreseeable future.
The products of those mills are sold primarily in areas other than the
State of Washington. Hence the Crane Creek timber is directly affected
by the economic condition of the house construction industry throughout
the country. There has been a occasional shipment of cedar logs from
Grays Harbor to mills in other localities, however, the added hauling
cost makes it economically impossible to follow that practice regularly
and the primary reason for doing it has been to relieve excessive
inventories in Grays Harbor. ...In 1966, only 3.2% of Rayonier's cedar
production was sold in export. ... ...4. Expert Opinion. Economists,
business publications and observers all see poor business for the forest
industry in the near future. ... ............Examples ..."In projecting
a sharply reduced rate of growth for the state in 1967, one should note
that the trend already had slowed in the late months of 1966. The final
ninety days of the year showed a net decline in actual employment and
virtually no gain even after adjustment for the usual seasonal pattern.
There were two major factors contributing to this hiatus -- a leveling
off and then a cutback in the aerospace industry and a steady decline in
the forest industries. The former was occasioned largely by delayed
delivery of jet engines, the latter by the national decline in
residential building." ...Quarterly Review, published by Seattle-First
...National Bank, February, 1967. ..."From the first half to the second
half of 1966, shipments of the grades of lumber most used in residential
building dropped by 25% to 33%. Other grades used primarily in
industrial application showed little change. As a result, the impact of
the home building drop has varied by regions, falling most heavily on
mills in Western Oregon and Washington and in the northern areas of the
Rockies where dimension lumber for home building comprises a large share
of production. Layoffs and plant closures have hit heavily in these
areas. Lumber and plywood prices are back to depressed levels, while
the costs of stumpage have stayed high and labor costs have increased.
As a result, many mills are hanging on for dear life in the hope that
stronger markets will develop soon enough to balance them out."
...Charles E. Young, Director, Economic Services and ...Market Research,
in address to Western Wood Products ...Association at the University of
Oregon Business ...Developments Conference, Portland, February 1, 1967.
..."Residential building contracts as reported by F. W. Dodge totaled
$1,075,773,000 in November (1966) or 37% below November of 1965. In the
eleven western states November contracts totaled $161,142,000, a decline
of 52% from the $336,504,000 total of November, 1965. Dodge economist,
J. Dexter Bowers, Jr., said that non-residential building and heavy
construction activity are till strong in the west, but the gains in
these areas have not been enough to offset the virtual collapse of the
western housing industry." ...Crow's Weekly Letter, January 6, 1967.
..."In red cedar shingles and hand split shakes, although the industry
has demonstrated a remarkable ability to curtail production -- whether
voluntarily or involuntarily -- especially noticeable during the last
half of 1966, price reductions continued to take place. During the last
couple of weeks lower prices have become evident in No. 2 and No. 3 18"
shingles. Compared with a year ago today, really disastrous drops have
taken place in the No. 2 grade. Top of Fivex then was $9.25, it is now
$7; Perfections were $9.40, now $6.60." ...Crow's Weekly Letter,
January 6, 1967. ...Attached are copies of articles from which the
foregoing quotations were excerpted. ...5. Attached as Exhibit 1 is
graph produced from information taken from Crow's Price Reporter,
showing prices by quarters of various products during the years 1964,
1965 and 1966. Trends are down with one exception, namely, 3/4 x 10
clear cedar siding. The latter is stable and is a pegged price.
...Attached as Exhibit 2 is graph of prices for peelers and for saw logs
in the Douglas fir region by quarters during 1964, 1965 and 1966. This
information is based upon Log Price Index produced by the U. S. Forest
Service for the Douglas fir region and used for timber sale appraisal
purposes and for a stumpage rate adjustment purposes. It shows the
trend to be down. ...Attached as Exhibit 3 is graph produced from
information received from Western Wood Products Association for the
years 1965 and 1966 Douglas fir region, Western Oregon and Western
Washington, showing volumes, in millions of feet board measure, of
inventory, new orders, shipments, production and unfilled orders. These
demonstrate a downward trend that has been in effect for nearly one year
now.... ...Attached as Exhibit 4 is a stumpage appraisal based upon the
following factors: ...(a) Second quarter, 1964, I.F.A. log prices by
species weighted in accordance with grade recovery during the period
1961 - 1963, compared to similar data for the Fourth quarter, 1966,
weighted with grade data for the period 1964 - 1966. ...(b) Profit and
risk factors of 1.104 applied to the difference in log prices computed
in (a) abovve. ...(c) Logging cot allowance increased by 15% to
compensate for changes since 1963 when lst logging cost data developed
by B.I.A. ...(d) The net effect of change in log prices, adjusted by
profit and risk, and logging cost allowance is applied to stumpage rates
made effective December 1, 1964 to obtain indicated current stumpage
rates.
HES-004-1253-1259
HES-004-1253-1259
IIR67.1
651221
CORRESPONDENCE
GALBRAITH, A W
DOCUMENT OMITTED SEE ORIGINAL ...2. The log market prices used in the
earlier report were ......based on the calculated weighted value of log
market sales ......in the combined Puget Sound-Grays-Willapa Harbor
Districts. ......Our present recommended rates are based on an equal
......weighting of the two markets. .........In view of the significant
difference between prices paid ......for logs in the two markets, we
believe an equal weighting ......procedure should provide a more stable
basis for measuring ......trends in log market prices. It will be noted
in examining ......the composite log sales analysis as published by the
......Industrial Forestry association that during the second
......quarter of 1964 and the third quarter of 1965 the total
......value of all reported sales from the two markets were as
......follows: TABLE OMITTED SEE ORIGINAL .........It is readily
apparent that when such a significant ......difference in volume input
occurs in one of the markets a ......decrease or increase in the
computed average grade price might ......occur even if prices in each of
the markets remained unchanged. ......For this reason we believe the
arithmetic average of prices ......per MBM paid by grade in the two
markets is more indicative ......of the trend in log market prices.
...3. In examining the composite log sales analysis as published
......by the I.F.A., it will be noted that a significant volume ......is
reported as "mixed grade." As an example, 4,890,185 ......board feet of
hemlock is reported in this category for ......Puget Sound third quarter
1965 "Water Sales." It will be ......noted the mixed grade is shown to
consist of 13 percent SFP, ......3 percent No. 1, 53 percent No. 2, 30
percent No. 3. When ......these percentages are added, they total up to
99 percent. ......In this case the missing percent was assigned to the
grade ......showing the largest volume (53 percent No. 2) making it
......54 percent No. 2. A straight proportioning procedure (to
......the nearest percent) was used in accounting for all instances
......where the total percentage of mixed grades did not equal ......100
percent. .........In the above instance the corrected percentages were
used ......to assign the volumes to the applicable grade (example SFP
......volume mixed grade = .13 x 4,890,185 = 635,720, etc., ......until
the entire volume has been assigned). The corrected ......percentages
were then used to determine the average price ......which the mixed
grades would have shown had the same rates ......been received as the
straight grades indicated (.13 x $72.80 ......+ .03 x $74.38 + .54 x
$58.80 + .30 x $45.57 = $57.09). The ......$.08 difference ($57.09 -
$57.01) was then subtracted from ......the average grade price for
straight grades and multiplied ......by the volume apporioned to that
grade from the mixed grade ......volume. These volumes and values were
then included with ......the straight grade volume and values to obtain
an average ......grade price for each of the markets involved.
.........It is felt the inclusion of the above described mixed grades
......into the price determination has not appreciable changed ......the
overall value of the average log prices. However, it ......has expanded
the volume used for a base and is therefore ......recommended for use in
these adjustments. Details of the ......calculations are on file in the
Portland Area Office. ...4. As indicated in our previous report, the
past year's trends ......of cost in producing logs in the West Coast
forest products ......industries are somewhat contradictory.
Information collected ......from west side loggers of Indian timer shows
a $1.68 per ......MBM increase in direct logging and overhead cost
between ......1963 and 1964. The U.S.F.S. cost information indicates
that ......between 1963 and 1964 a decrease has occured.
.........During the course of our consultations it has become apparent
......that increased activity in the export market has resulted ......in
increased log handling costs. The magnitude of this ......apparent cost
increase cannot be readily obtained from ......present cost data.
However, we anticipate that better cost ......information may be
available prior to the next adjustment. .........During the course of
the consultations it was also apparent ......that appreciable volumes of
logs used by operators in their ......own manufacturing plants do not
appear in the log market ......quotations. The current magnitude of
this item is not ......readily measured; however, because the entire
volume of export ......market log sales does appear in the log market
quotations ......and the export prices are so much greater than "water"
......prices, it is reasonable to assume that the average calculated
......log price is somewhat disproportionately weighted ......by the
export volumes involved. .........In view of the above we recommend
that until better cost ......and pricing information does become
available, 75 percent ......of the indicated net increase in log values
be created ......to the stumpage owner. The remaining 25 percent should
......then be credited to the operator to compensate for unresolved
......cost and pricing data as well as profit allowance. We are
enclosing the original and one copy of the computations of the
recommended stumpage rates. We believe it highly desirable that the new
rates be made effective january 1, 1966. ............Sincerly yours,
............(sgd) A. W. Galbraith ............A. W. Galbraith
............Assistant Area Director ............(Economic Development)
Enclosures (12) cc:......... Supt., Western Washington Agency
w/enclosure Hoquiam Subagency w/enclosure KWHadley:du - 12-21-65
............Summary of Trends Between 2nd Qtr. 1964 and 3rd Ctr.
............1965 .................Related to the Crane Creeks Unit TABLE
OMITTED SEE ORIGINAL .........LOG PRICE Changes BETWEEN 2ND QTR, 1964
AND 3RD QTR. ............1965 TABLE OMITTED SEE ORIGINAL
............Changes in Log Market Prices .........Equal Wtd. Combines
P.S.-G./W.H. Dist. TABLE OMITTED SEE ORIGINAL ............CRANE CREEK
.........IFA 3RD QUATER 1965 ARITHMETIC AVERAGE LOG VALUES .........
PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS TABLE OMITTED SEE ORIGINAL
............CRANE CREEK .........LOG PRICE TREND TABLE OMITTED SEE
ORIGINAL ............CRANE CREEK .........QUALITY CHANGE TABLE OMITTED
SEE ORIGINAL ............CRANE CREEK .........Computed Average Log
Values Using Equal Wtd. Puget .........Sound-Grays-Willapa Harbor
District Prices 2nd QTR. .........1964 TABLE OMITTED SEE ORIGINAL
............Summary of Trends Between 2nd Qtr. 1964 and 3rd Qtr.
............1965 ............Related to the Crane Creek Unit TABLE
OMITTED SEE ORIGINAL .........LOG PRICE CHANGES BETWEEN 2ND QTR, 1964
AND 3RD QTR. .........1965 TABLE OMITTED SEE ORIGINAL
............Changes in Log Market Prices ............Equal Wtd. Combined
P.S.-G./W.H. Dist. TABLE OMITTED SEE ORIGINAL ............CRANE CREEK
.........IFA 3RD QUARTER 1965 ARITHMETIC AVERAGE LOG VALUES
.........PUGET SOUND-GRAYS-WILLAPA HARBOR DISTRICTS TABLE OMITTED SEE
ORIGINAL ............CRANE CREEK ............LOG PRICE TREND TABLE
OMITTED SEE ORIGINAL ............CRANE CREEK ............QUALITY CHANGE
TABLE OMITTED SEE ORIGINAL ............CRANE CREEK .........Computed
Average Log Values Using Equal WTD. Puget .........Sound-Grays-Willapa
Harbor District Prices 2nd QTR. .........1964 TABLE OMITTED SEE
ORIGINAL .........Summary of Trends Between 2nd Qtr. 1964 and 3rd Qtr.
1965 ............Related to the Crane Creek Unit TABLE OMITTED SEE
ORIGINAL .........LOG PRICE CHANGES BETWEEN 2ND QTR. 1964 AND 3RD QTR.
.........1965 TABLE OMITTED SEE ORIGINAL ............Changes in Log
Market Prices ............Equal Wtd. Combined P.S.-C./W.H. Dist. TABLE
OMITTED SEE ORIGINAL ............CRANE CREEK .........IFA 3RD QUARTER
1965 ARITHMETIC AVERAGE LOG VALUES .........PUGET SOUND-GRAYS-WILLAPA
HARBOR DISTRICT TABLE OMITTED SEE ORIGINAL ............CRANE CREEK
............LOG PRICE TREND TABLE OMITTED SEE ORIGINAL ............CRANE
CREEK ............QUALITY CHANGE TABLE OMITTED SEE ORIGINAL
............CRANE CREEK .........Computed Average Log Values Using Equal
Wtd. Puget .........Sound-Grays-Willapa Harbor District Prices 2nd Qtr.
.........1964 TABLE OMITTED SEE ORIGINAL
HES-004-1260-1277
HES-004-1260-1277
IIR65.1
COMM OF INDIAN AFF ; BR OF FORESTRY
640911
CORRESPONDENCE
SKARRA, PERRY E
Rayonier Incorporated P. O. Box 539 Hoquiam, Washington Gentlemen:
...In accordance with instruction from the Deputy Commissioner of Indian
Affairs, we are furnishing you with a copy of a statement entitled
"Trend of Economic Conditions." Information in the statement and
accompanying Exhibits A, B, C, D, E, & G reveal some substantial changes
in economic conditions which have occured in recent years. ...We are
also furnishing you with a "Summary of Stumpage Rate Detemination
Applicable to the Crane Creek Logging Unit," identified as Exhibit I,
accompanied by supporting Exhibits II-A, B, C, III, IV, V, VI, VII, and
VIII. Exhibit I reveals the extent of changes in existing sumpage rates
resulting from our preliminary review of the trend of economic
conditions in the West Coast Forest Products Industry. ...Following
your study of the enclosures you may, if you wish, arrange with the
Superintendent, Western Washington Indian Agency, for consultation with
a representative of the Approving Officer to discuss the proposed
changes in stumpage rates. ............Sincerely yours,
............(Sgd) PERRY E. SKARRA ............Acting Area Director
Enclosures (17) cc:......... Commissioner, Attn. Br. of Forestry w/dup.
corrected Exhibits I and III Hoquiam Subagency w/corrected Exhibits I
and III Branch subject Branch chrony Yellow chrony KWHadley:du - 9/11/64
DOCUMENT OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ...Changes
in the ratios of stumpage to average log prices were established under
this contract effective July 1, 1960. These changes were based on
studies reflecting conditions existing during the first quarter of 1960.
The purchaser appealed to the Secretary of the Interior the increase in
ratios. This appeal was subsequently denied. ...Changes from the first
quarter of 1960 to the second quarter of 1964 are not shown above for
Exhibits D, E and C because we do not have sufficient information to
establish the trend for these Exhibits prior to the fourth quarter of
1960. Changes which are reflected by all Exhibits between the fourth
quarter of 1960 (period upon which most recent ratio adjustment studies
were based) and second quarter of 1964 are shown below: TABLE OMITTED
SEE ORIGINAL ...Average Realization on West Coast Lumber Shipments.
(Total Avg. realization on lumber shipments from the Douglas-fir Region
of Western Washington, Western Oregon, and Northern California.)
...--West Coast Lumbermen's Association publication Industrial Facts--
... TABLE OMITTED SEE ORIGINAL .........WHOLESALE PRICE INDEXES -
U.S.D.L. .........(08-13-61.06) Cedar Bevel Siding Clear
............(1957-59=100) TABLE OMITTED SEE ORIGINAL .........WHOLESALE
PRICE INDEXES - U.S.D.L. .........(08-13-66.06) Cedar Shingles No. 1
............(1957-59=100) TABLE OMITTED SEE ORIGINAL ............WESTERN
REDCEDAR ............Index Price per MBM .........(Based on Lumber
Prices Reported in Random Lengths) TABLE OMITTED SEE ORIGINAL
.........WESTERN REDCEDAR SHINGLE INDEX PRICES ............No. 2 LOG PER
MBM LOG SCALE .........(Based on Prices Published in Random Lengths)
TABLE OMITTED SEE ORIGINAL ............WESTERN HEMLOCK ............Index
Price per MBM .........(Based on Lumber Prices Reported in Random
Lengths) TABLE OMITTED SEE ORIGINAL ............Summary of Stumpage Rate
Determinations ............Applicable to the Crane Creek Logging Unit
TABLE OMITTED SEE ORIGINAL ............CRANE CREEK .........SUMMATION OF
TRENDS RELATED TO CRANE CREEK UNIT TABLE OMITTED SEE ORIGINAL
............CRANE CREEK ............PRICE TREND TABLE OMITTED SEE
ORIGINAL ............CRANE CREEK .........EFFECT OF QUALITY CHANGE TABLE
OMITTED SEE ORIGINAL ............CRANE CREEK ............LOGGING COST
TREND TABLE OMITTED SEE ORIGINAL .........Trend of Average Log Grade
Prices in the Combined .........Puget Sound-Grays Harbor-Columbia River
Market Areas .........as Related to the Crane Creek Unit Stumpage TABLE
OMITTED SEE ORIGINAL .........Trend of Average Log Grade Prices in the
Combined .........Puget Sound-Grays Harbor Columbia River Market
.........Areas as Related to the Crane Creek Unit .........Stumpage -
Cont'd. TABLE OMITTED SEE ORIGINAL .........Trend of Average Log Grade
Prices in the Grays Harbor ............Market Area As Related to Crane
Creek Unit ............Stumpage TABLE OMITTED SEE ORIGINAL
.........TREND OF AVERAGE LOG GRADE PRICES IN THE GRAYS
............HARBOR MARKET AREA AS RELATED TO CRANE CREEK
............UNIT STUMPAGE - CONT'D. TABLE OMITTED SEE ORIGINAL
............CRANE CREEK UNIT Computations using the individual profit
and risk factor established at the time of sale follows: TABLE OMITTED
SEE ORIGINAL ............CRANE CREEK UNIT ...Relative Stumpage Rate
Computation Using Average 1.op of 1.104 TABLE OMITTED SEE ORIGINAL
............CRANE CREEK .........IFA-2nd Quarter 1964-Average Log Values
.........Puget Sound -- Grays-Willapa Harbor -- Districts TABLE OMITTED
SEE ORIGINAL
HES-004-1278-1301
HES-004-1278-1301
IIR64.2
; RAYONIER INC
640520
CORRESPONDENCE
AREA DIR
DOCUMENT OMITTED SEE ORIGINAL examining the new log price information,
it appeared to provide a better basis for determining log values
applicable to this contract than the calculated values we had proposed
to use. The stumpage adjustment report is, chereiore, based on log
prices reported by the Industrial Forestry Association. ...In using the
IFA log market prices, it became necessary to use fourth quarter 1963
quotations. The IFA has not published first quarter 1964 quotations and
we are not cartain when they will become available. However, the timber
contract does not limit us to the number of adjustments we can rake
during the year and additional adjustments can be made if subsequent
data indicates such a necessity. We should not delay the present
adjustments in anticipation of higher first quarter 1984 log market
prices. ...We are in agreement with conclusions drawn in the report and
recommend, in accordance with Section 11 of the contract, that the
Approving Officer notify the Purchaser and Tribal Representatives of
intentions to increase stumpage rates on July 1, 1964 as follows: TABLE
OMITTED SEE ORIGINAL ............Sincerely yours, ............Area
Director Enclosures (2) cc:......... Supt., Western Washington Agency
w/enclosure Hoquiam Subagency, w/enclosure KWHadley:du - 5/20/64
.........STUMPAGE REVALUATION REPORT ............CRANE CREEK LOGGING
UNIT .........QUINAULT INDIAN RESERVATION ............WASHINGTON Summary
of Findings and Recommendations--Crane Creek Logging Unit ...... ...On
April 1, 1961, ratio adjustments of stumpage to contract index log
values were made. The raio adjustments were made with reference to
conditions existing in the fourth quarter of 1980. Since the last
adjustment the character of the operations, market conditions and other
factors have changed to such an extent that increases in existing
stumpage rates are clearly indicated. ...Following purlication of log
market price data for Calendar Year 1962, the Pacific Northwest Loggers'
Association discontinued further publication of log market price data.
No automatic adjustments of quarterly stumpage rates have therefore been
possible since the first quarter of 1963. The loss of the basis for
making automatic adjustments coupled with the steady improvement in log
prices, particularly during the past year, has created the situation
where present stumpage rates for the timber on this unit do not properly
reelect the tru market value of the stumpage.... ...A detailed study of
conditions existing during the fourth quarter of 1963 results in the
recommendation that stumpage rates on the Crane Creek Logging Unit be
increased as follows: TABLE OMITTED SEE ORIGINAL BACKGROUND PERTAINING
TO ORIGINAL APPRAISAL AND SALE OF TIMBER ...The Crane Creek Unit was
first appraised in a report dated November 15, 1948. This appraisal was
based on log values (as determined from past sales) for the first three
quarters of 1948. While the trend in log values for the three quarters
was largely upward, the averagge log value represents reasonable
conditions at the time of appraisal. The timber was advertised for sale
and one bid was received at the appraised stumpage rates. The
successful bidder did not execute a contract, and therefore forfeited
his deposit with bid. The timber was again advertised for sale during
the early portion of 1952. TABLE OMITTED SEE ORIGINAL STUMPAGE, COST
AND PROFIT RELATIONSHIP AT THE TIME OF SALE ...The prices bid for this
timber on June 17, 1952, therefore, were immediately replaced by the
automatically adjusted rates that became effective July 1. For this
reason, the July 1 rates are the better treasure of stumpage values at
the time this timber was sold. These are also the conditions under
which the timber was purchased. ...Production cost at the time of the
original appraisal in 1948 was estimated to be (illegible). Through the
year 1951, production cost increased about (illegible) as indicated by
West Coast cost data. The increase, added to the estimated cost,
results in $31.81. For the purpose of determining the profit and risk
factor at the time of sale, production cost of $31.80 will be used.
...Log prices by grade are determined from the combined Puget
Sound-Grays Harbor districts past sales record for the second quarter
1952. These average prices are applied to the estimated grade recovery
for each species to obtain the unit log values. This computation
follows: .........SECOND QUARTER 1952 AVERAGE LOG VALUES
............PUGET SOUND-GRAYS HARBOR DISTRICTS TABLE OMITTED SEE
ORIGINAL ...At the time of sale, therefore, the following relationships
existed between log value, stumpage rates, production costs and
operator's profit-risk allowances: TABLE OMITTED SEE ORIGINAL The
average log value and average stumpage rates will now be determined:
TABLE OMITTED SEE ORIGINAL The average profit and risk factor at the
time of sale may be obtained through the use of the usual appraisal
formula, as follows: TABLE OMITTED SEE ORIGINAL ...The original
appraisal contemplated a profit and risk factor of about 12 percent. At
the time of purchase, the profit and risk factor was about 10 percent.
This is reasonably close to that originally under consideration.
CONTRACT PROVISION CONCERNED WITH STUMPAGE ADJUSTMENTS ...Section 9 of
the Crane Creek contract provides for automatic adjustment of stumpage
rates for each quarterly period beginning January 1, April 1, July 1,
and October 1. The specified percentages of grades of logs for each
species were applied to the quarterly changes in log prices from
combined sales in the Grays Harbor, Puget Sound, and Columbia River Log
Markets to obtain the average log price. The average log price for each
species was then applied to the established ratio to obtain the stumpage
rate. ...Following the publication of Log Market Price Data for
Calendar Year 1962, the Pacific Northwest Loggers' Association
discontinued further publication of log market price data. No automatic
adjustments of quarterly stmpage rates have therefore been possible
since the first quarter of 1963. ...Section 11 of the contract now
appears to be controlling in future stumpage adjustments. This section
reads as follows: ..."NOTWITHSTANDING any other provisions of this
contract it is ...mutually agreed that, in the event the said Pacific
Northwest ...Loggers' Association's Composite Sales Analyses are
...unavailable during any periods of this contract for use in
...connection with these stumpage adjustments, or in the opinion ...of
the Approving Officer they do not properly reflect the ...true market
value of the stumpage, the Approving Officer shall ...at any time, after
giving thirty days' notice to the ...Purchaser and to the Indians in
General Council or thier ...authorized representatives, during which
time they may consult ...with the Approving Officer, proceed to revise
stumpage rates ...in this contract as the trend of economic conditions
in the ...West Coast forest products industries shall warrant;
PROVIDED, ...that the requirements of notice in this section shall be
satisfied ...when the new rates established by the Approving Officer to
...the Purchaser and the Indians that he intends to proceed under ...the
authority of this section to revise stumpage rates; ...PROVIDED
FURTHER, that the requirements of quarter-annual ...adjustment of
stumpage rates shall not apply to the procedure ...authorized by this
section." TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL ...This
index is calculated in the Portland Area Office and is based on lumber
prices reported in the Random Lengths publication. The exhibit has not
been fully developed but it does show differences between the two
quarterly periods being considered in this report. ...The final
quarterly report of the Pacific Northwest Loggers' Association included
prices for logs sold during October, November, and December 1962. The
reporting including about 92 million board feet of logs sold in the
Puget Sound District and about 40 million board feet of logs sold in the
Grays Harbor District. ...We are not fully aware of the reasons for the
Pacific Northwest Loggers' Association's decision to cease publication
of log market prices. We are aware that following nearly a year in
which the type of reports previously published by the PNLA were
unavailable the Industrial Forestry Association agreed to take over the
task of publishing a similar report. We have been advised that invoices
previously collected by PNLA have been turned over to the Industrial
Forestry Association. We believe the reporting base of the I.F.A. to be
quite similar to the reporting base of the PNLA. ...The fourth quarter
1963 reporting by the I.F.A. includes about 71 million board feet of
logs sold in the Puget Sound District and about 58 million board feet of
logs sold in the Grays-Willapa Harbor District. The following table
shows the average weighted log grade prices reported by the Pacific
Northwest Loggers' Association for the combined Puget Sound-Grays
Harbor, fourth quarter 1960, and the average weighted log grade prices
reported by the Industrial Forestry Association, fourth quarter 1963.
TABLE OMITTED SEE ORIGINAL DOCUMENT OMITTED SEE ORIGINAL ...The average
weighted log grade prices reported for the combined Puget Sound-Grays
Harbor District markets during the fourth quarter of 1960 and related
prices repoted by the Industrial Forestry Association during the fourth
quarter of 1963, appear on page 10 of this report, Overall, the
indicated increases compare favorably the the changes which have
occurred in the local Grays Harbor market prices. It is our opinion
that weighted averages for the Puget Sound-GraysWillapa Harbor Districts
as reported by the Industrial Forestry Association are representative of
log sales values previously used in adjusting stumpage rates under this
contract and are sufficient for use in measuring the relative present
value of the timber involved. ...To date, the Industrial Forestry
Association has compiled composite log sales information for the Puget
Sound, Grays-Willapa Harbor and Columbia River Districts for the third
quarter of 1963. The Association has compiled similar information for
the fourth quarter of 1963 except for the Columbia River District. We
are advised that the Association is endeavoring to bring their
information for all districts up to date as soon as possible. After
they have their information up to date, they expect to publish quarterly
reports approximately twenty-five days following the ending of the
reporting period. ... ...Log Quality & Species Composition ...Numerous
points of view have been expressed as to the log grades that should be
used in any determination of stumpage values under this contract. After
considering all factors involved, it has been concluded that the fairest
system for all concerned is to base the log grade percentages for this
study on the average grade recovery for the last three calendar years.
This procedure will result in stumpage values that currently reflct the
quality of timber being loged and will tend to minimize so-called "high
grading" on the part of the Purchaser. It will also protect the
Purchaser as he removes some of the lower quality timber stands. Use of
the three-year average is preferred to use of a five-year average as it
will reflct more rapidly any appreciable changes in the cutting pattern.
... ...Average log grades produced by species during the three-year
period ending December 31, 1963, is generally of lower quality than was
recovered dduring a proceding three-year period ending December 31,
1960. This lowering of quality will account for a smaller indicated
increase in stumpage values than might otherwise be expected had the
quality remained comparable to that used in the previous adjustment.
...Log grade recovery data and species composition for the three-year
period ending December 31, 1963, appears as Exhibit I. ...Logging Cost
...Logging cost estimates used in this report are based on separate
computations for cedar as opposed to hemlock and other species, since
D.B.H., log size and amount of defect are much greater in western red
cedar than in hemlock and other species. The amount of defect and size
of timber directly affect failing and bucking, yarding and loading, and
log transportation cost. The study of logging cost is on file at the
Hoquiam Subagency, and a summary of these costs appears as Exhibit J in
the Appendix of this report. The total logging costs used in the report
are $33.19 for cedar and $32.92 for hemlock and other species.
...Profit and Risk Factor ...It was shown on page 5 of this report that
at the time of purchase of timber, conditions were such that the
operator had established a profit and risk factor of 1.104. Anyy
adjustment of stumpage rates which will result in maintaining this
factor will be relative to conditions under which the timber was
purchased as well as relative to conditions under which previous
adjustments have been made. ...In past adjustments, no attempt has been
made to retain the exact relationship of one species to another as was
derived for the time of purchase, as many of these relationships were
accidental and there is considerable interdependence between the
species. Thus, stumpage rates in past adjustments have been made, as
will be ade in this report, in such a way as to obtain a reasonable
distribution of stumpage values and still maintain the overall average
1.op established at the time of purchase. ...CURRENT STUMPAGE
ADJUSTMENT BASED ON RELATIVE RELATIONSHIPS ...Sufficient information is
now available to establish the stumpage values for timber o the Crane
Creek Unit with relation to conditions at the time of purchase. A
detailed appraisal of the various species involved using the average
1.op established at the time of purchase appears as Exhibit K of this
report. Fourth quarter 1963 average log values for the Puget
Sound-Grays-Willapa Harbor Districts have been weighted by percentage of
volumes produced from the Crane Creek Unit during the three-year period
ending December 31, 1963. The resulting computation of the average log
price by species as used in the appraisal appears as Exhibit L.
Estimated logging cost for the Crane Creek Unit appears as Exhibit J. A
summary of the appraisal and recommended stumpage rates follows: TABLE
OMITTED SEE ORIGINAL ............A P P E N D I X .........Exhibit A -
Average Realization on West Coast Labor .........Shipments
.........Exhibit B - U.S.D.L. Wholesale Price Index Cedar .........Beval
Siding .........Exhibit C - U.S.D.L. Wholesale Price Index Cedar
.........Shingles .........Exhibit D - Western Redcedar Lumber Index
Price .........Exhibit E - Western Redcedar Shingles Index Price
.........Exhibit F - Local Grays Harbor Prices .........Exhibit G -
Western Hemlock Lumber Index Price .........Exhibit H - Average
West-Side Logging & Overhead Costs .........Exhibit I - Volume Products
by Log Grade & Species, .........Crane Creek Unit 1961-1963
.........Exhibit J - Estimated Logging Cost Applicable to .........Crane
Creek .........Exhibit K - Stumpage Calculation .........Exhibit L -
Industrial Forestry Association Average .........Log Values Applied to
Crane Creek Production ...Average Realization on West Coast Lumber
Shipments. (Total avg. realization on lumber shipments from the
Douglas-fir Region of Western Washington, Western Oregon, and Northern
California.) ......--West Coast Lumberman's Association publication
Industrial Facts-- TABLE OMITTED SEE ORIGINAL .........WHOLESALE PRICE
INDEXES - U.S.D.L. .........(08-13-61.06) Cedar Bevel Siding Clear
............(1957-59-100) TABLE OMITTED SEE ORIGINAL .........WHOLESALE
PRICE INDEXES - U.S.D.L. .........(03-13-66.06) Cedar Shingles No. 1
............(1957-59-100) TABLE OMITTED SEE ORIGINAL ............WESTERN
RED CEDAR .........Index Price Per MBM ......(Based on Lumber Prices
Reported in Random Lengths) TABLE OMITTED SEE ORIGINAL .........WESTERN
REDCEDAR SHINGLE INDEX PRICES ............NO. 2 LOG PER LOG SCALE
.........(Based on Prices Published in Random Lengths) TABLE OMITTED SEE
ORIGINAL ............LOCAL LOG PRICES--GRAYS HARBOR WASHINGTON TABLE
OMITTED SEE ORIGINAL ............LOCAL LOG PRICES--GRAYS HARBOR,
WASHINGTON TABLE OMITTED SEE ORIGINAL ............LOCAL LOG
PRICES--GRAYS HARBOR, WASHINGTON TABLE OMITTED SEE ORIGINAL
............WESTERN HEMLOCK .........Index Price Per MBM ......(Based on
Lumber Prices Reported in Random Lengths) TABLE OMITTED SEE ORIGINAL
.........AVERAGE WEST SIDE LOGGING AND OVERHEAD COSTS .........REPORTED
BY THE BUREAU OF INDIAN AFFAIRS ............AND THE U. S. FOREST
SERVICES TABLE OMITTED SEE ORIGINAL ............VOLUME PRODUCTION BY
SPECIES .........CRANE CREEK UNIT 1/1/61 - 12/31/63 TABLE OMITTED SEE
ORIGINAL .........ESTIMATED LOGGING COSTS FOR .........CRANE CREEK
LOGGING UNIT ............1963 TABLE OMITTED SEE ORIGINAL TABLE OMITTED
SEE ORIGINAL .........CRANE CREEK UNIT ............1964 TABLE OMITTED
SEE ORIGINAL ...CRANE CREEK - Appraised Stumpage Rates Using Average
1.op Established At Time of Sale and Combined Puget Sound and
Grays-Willapa Harbor Districts Composite Log Sales Analysis for 4th Qtr.
1963. TABLE OMITTED SEE ORIGINAL ............INDUSTRIAL FORESTRY
ASSOCIATION .........FOURTH QUARTER 1963 AVERAGE LOG VALUES ......PUGET
SOUND-GRAYS-WILLAPA HARBOR DISTRICTS TABLE OMITTED SEE ORIGINAL
HES-004-1302-1336
HES-004-1302-1336
IIR64.1
COMM ; BIA BR OF FORESTRY
621205
CORRESPONDENCE
CLARK, DON W ; QUINAULT INDIAN RE LIBBY, JOHN W ; QUINAULT INDIAN RE
DECELLE, W J ; QUINAULT INDIAN RE
.........A REVIEW OF STUMPAGE TO LOG PRICE RATIOS .........CRANE CREEK
LOGGING UNIT .........QUINAULT INDIAN RESERVATION .........WASHINGTON
...THIS contract provides for automatic adjustment of stumpage rates for
each quaterly period beginning January 1, April 1, July 1 and October 1.
The specified percentages of grades of logs for each species are
applied to the quarterly changes in log prices to obtain the average log
prices. The average log prices for each species is then applied to the
established ratio to obtain the stumpage rate. Provisions for changing
the ratios are contained in the following clause of the contract:
............"The officer approving this contract or his duly
.........authorized representative, # # # may review the stumpages
.........rates established by the procedure set forth in sections 6 to
.........9, inclusive, either on his own initiative or upon submission
.........by the purchaser of evidence satisfactory to the Approving
.........Officer that such a review should be made. If, as a result
.........of said review, the Approving Officer finds that the
.........character of the operation, changes in market conditions or
.........other factors have altered the situation to such an extent
.........that, in his opinion, a change in the existing rations
.........between stumpage rates and the Grays Harbor-Puget
.........Sound-Columbia River weighted average log price is
.........warranted, he shall give thirty days notice to the purchaser
.........and the Indians in General Council or their duly authorized
.........representatives of his intention to establish new ratios
.........between stumpage rates and the Grays Harbor-Puget
.........Sound-Columbia River weighted average log prices, during
.........which time the purchaser and the Indians may consult with
.........the Approving Officer # # #". ...The stumpage to log price
ratios presently in effect were based on conditions as of the fourth
quarter 1960. Those ratios in effect previous to the present ones were
based on conditions as of the first quarter 1960. Exhibit A presents a
comparison of average Puget Sound-Grays Harbor Log Market prices for the
first quarter 1960, fourth quarter 1960 and third quarter 1962.
According to the computations in this exhibit, western redcedar and
western hemlock prices for the third quarter 1962 were only $1.60 and
$0.51 per MBM higher respectively than the prices for the fourth quarter
1960. A comparison of log values for the Crane Creek Unit is given in
Exhibit B. In computing those log prices, the percentages of various
grades in each specics for the three years prior to each computation
were multiplied by the Pugeg Sound-Grays Harbor log grade prices. The
actual increase in log values for cedar and hemlock for fourth quarter
1960 to third quarter 1962 amounted to $0.65 and $1.19 per MBM
respectively. Present logging costs are believed to be similar to those
in effect during the fourth quarter 1960, with increased operational
efficiency offsetting increased labor costs. ...The estimated volume of
wind-thrown timber in Washington and Oregon resulting from the
devastating storm of October 12, 1962 is approximately 5 billion board
feet. All of this timber will have to be salvaged as rapidly as
possible to prevent insect epidemics, eliminate extreme fire hazard
conditions and to minimize the loss of forest products. The actual
volume that will be removed and marketed will be considerably in excess
of the 5 billion feet, since right-of-way timber will be involved with
accelerated road building programs, and additional standing timber will
be logged in "squarting-up" setting and logging blocks so as to reduce
the risk of further wind damage to isolated patches and fringes of
timber. The exact nature of this impact on the already depressed market
will not be known for some time. It appears very logical that this
tremendous volume of timber that must be marketed in a relatively short
time may further reduce log and lumber prices. ...Considering all of
the above factors, it is recommended that no change in this stumpage to
log price ratios be made at this time. Date: December 5, 1962
............Don W. Clark ............Assistant Forest Manager CONCUR:
... ...John W. Libby ...Forest Manager APPROVED: ...Superintendant
............Comparison of Average Log Values ............Puget Sound -
Grays Harbor Log Markets TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL ............Puget Sound - Grays Harbor .........1st Qtr. 1960
Log Market Average Prices TABLE OMITTED SEE ORIGINAL ............Puget
Sound - Grays Harbor .........4th Qtr. 1960 Log Market Average Prices
TABLE OMITTED SEE ORIGINAL ............Puget Sound - Grays Harbor
.........3rd Qtr. 1962 Log Market Average Prices TABLE OMITTED SEE
ORIGINAL
HES-004-1337-1343
HES-004-1337-1343
IIR62.1
610217
CORRESPONDENCE
CLARK, DON W ; QUINAULT INDIAN RE
............STUMPAGE REVALUATION REPORT ............CRANE CREEK LOGGING
UNIT ............QUINAULT INDIAN RESERVATION ............WASHINGTON
APPRAISAL AND SALE OF TIMBER ...The Crane Creek Unit was first appraised
in a report dated November 15, 1948. This appraisal was based on log
values (as determined from past sales) for the first three quarters of
1948. While the trend in log values for the three quarters was largely
upward, the average log value represents reasonalbe conditions at the
time of appraisal. The timber was advertised for sale and one bid was
received at the appraised stumpage rates. The successful bidder did not
execute a contract, and therefore forfeited his deposit with bid. The
timber was again advertised for sale during the early portion of 1952.
...The timber was not reappraised in the usual manner when the sale was
readvertised. Instead, the appraised stumpage rates were brought up to
date through use of the ratio method. The relation of the 1948 stumpage
rates to the index values for the 4th quarter 1948 log prices was
obtained. The ratio was applied to the index log values for the 3rd
quarter 1951 to obtain the appraised rates for use in readvertising the
timber, as follows: TABLE OMITTED SEE ORIGINAL ...One bid was received
on June 17, 1952, at the appraised rates, from Rayonier Incorporated.
The contract provides for quarterly adjustment of stumpage rates based
on a ratio obtained by dividing the bid rates by the index log values,
for the 3rd quarter 1951, of combined Puget Sound-Grays Harbor-Columbia
River log markets. ...It was necessary to select in the contract a
particular base period from which to compute the ratios which are used
in obtaining new stumpage rates for each quarterly perod. In this
contract, index log values for the third quarter 1951 were selected, and
the ratios were calculated as follows: TABLE OMITTED SEE ORIGINAL
...The bid stumpage rates remained effective only during the quarter in
which the contract was approved. It was approved on June 30, 1952. As
of July 1, 1952, the automatic adjustment feature of the contract made
new stumpage rates effective which were calculated as follows: ...
TABLE OMITTED SEE ORIGINAL STUMPAGE, COST AND PROFIT RELATIONSHIP AT
Time OF SALE ...The prices bid for this timber on June 17, 1952,
therefore, were immediately replaced by the atuomatically adjusted rates
that became effective July 1. For this reason, the July 1 rates are the
better measure of stumpage values at the time this timer was sold.
These are also the conditions under which the timber was purchased.
...Production cost at the time of the original appraisal in 1948 was
estimated to be $23.70. Through the year 1951 production cost increased
about $3.11 as indicated by west coast cost data. The increase, added
to the estimated cost, results in $31.81. For the purpose of
determining the profit and risk factor at the time of sale, production
cost of $31.80 will be used. ...Log prices by grade are determined from
the combined Puget Sound-Grays Harbor districts past sales record for
the 2nd quarter 1952. These average prices are applied to the estimated
grade recovery for each species to obtain the unit log values. This
computation follows: ............SECOND QUARTER 1952 AVERAGE LOG VALUES
............PUGET SOUND-GRAYS HARBOR DISTRICTS TABLE OMITTED SEE
ORIGINAL ...At the time of sale, Therefore, the following relationships
existed between log value, stumpage rates, production costs and
operator's profit-risk allowances: TABLE OMITTED SEE ORIGINAL ...The
average log value and average stumpage rates will now be determined:
TABLE OMITTED SEE ORIGINAL ...The average profit and risk factor at the
time of sale may be obtained through the use of the usual appraisal
formula, as follows: TABLE OMITTED SEE ORIGINAL ...The original
appraisal contemplated a profit and risk factor of about 12 percent. At
the time of purchase, the profit and risk factor was about 10 percent.
This is reasonable close to that originally under consideration.
CONTRACT REQUIREMENTS CONCERNED WITH ADJUSTMENT OF RATIOS ...The
contract provides for automatic adjustment of stumpage rates for each
quarterly period beginning January 1, April 1, July 1 and October 1.
The specified percentage of grades of logs for each species are applied
to the quarterly changes in log prices to obtain the average log price.
The average log price for each species is then applied to the
established ratio to obtain the stumpage rate. ...The quarterly
adjustment provision is designed to provide for reasonable adjustment of
rates over relatively short periods of time. It does not provide an
effective means of compensating for the more drastic changes in
conditions. The contract contains a provision to change the ratios as
circumstances and conditions require. The clause is as follows:
......"The officer approving this contract or his duly authorized
...representative, ### may review the stumpage rates extablished ...by
the procedure set forth in Sections 6 to 9, inclusive, either ...on his
own initiative or upon submission by the purchaser of ...evidence
satisfactory to the approving officer that such a review ...should be
made. If, as a result of said review, the approving ...officer finds
that the character of the operation, changes in ...market conditions or
other factors have altered the situation to ...such an extent that, in
his opinion, a change in the existing ...ratios between stumpage rates
and the Grays Harbor-Puget ...Sound-Columbia River weighted average log
price is warranted, he ...shall give thirty days notice to the purchaser
and the Indians in ...General Council or their duly authorized
representatives of his ...intention to establish new ratios between
stumpage rates and the ...Grays Harbor-Puget Sound-Columbia River
weighted average log ...prices, during which time the purchaser and the
Indians may consult ...with the approving officer ###". REVIEW OF
PRESENT CONDITIONS ...A study of stumpage values under the Crane Creek
Contract was made in 1960. The last change in ratios resulted from this
report (see report dated May 17, 1960 and revised report dated June 9,
1960). The preceeding pages were taken verbatim from that report. The
present study will follow the same method used in the 1960 study.
...Consideration will be given to three major factors, namely:
.........1. Change in conditions as indicated by trend. .........2.
Changes in quality of logs. .........3. Direct appraisal. CHANGES AS
INDICATED BY TREND ...The trend is determined from the Puget Sound-Grays
Harbor log market prices as published by the Pacific Northwest Loggers
Association and is summarized below: TABLE OMITTED SEE ORIGINAL ...The
above indicated rates reflect an upward trend in the log market from the
2nd quarter 1952 to the 4th quarter 1060 for western redcedar, Sitka
spruce, Pacific silver fir (white fir) and western hemlock, but a
downward trend for Douglas-fir and western white pine. If log values
and costs moved at parallel rates, these indicated values could be said
to represent satisfactory values for stumpage. Such is not the case.
Changes in costs have remained relatively stable during recent years,
with only a slight upward trend. Increased efficiency and mechanization
has, to some extend, offset steadily increasing labor costs. On the
other hand, log values in some species have fluctuated considerably.
Accordingly, the indicated stumpage shown above can be used only as a
very general indication of present values. LOG GRADES ESTABLISHED FOR
DETERMINATION OF CURRENT VALUES ...Numerous points of view have been
expressed as to the log grades that should be used in any determination
of stumpage values under this contract. There is some merit to the idea
that this and future studies to determine stumpage values should be
based on the overall average log grades established in the recent
inventory of the Crane Creek Unit. ...If it could be assured that the
contractor would log proportionate volumes in all grades and species
each year, this idea might be a satisfactory solution. Since this is
not practicable, it is believed that this idea should not be adopted.
...After considering all factors involved, it has been concluded that
the fairest systems for all concerned is to base the log grade
percentages for this study on the average grade recovery for the last
three calendar years. This procedure will result in stumpage values
that currently reflect the quality of timber being logged and will tend
to minimize so-called "high grading" on the part of the purchaser. Use
of the three-year average is preferred to use of a five-year average as
it will reflect more rapidly any appreciable changes in the cutting
pattern. ...Average grades recovered by species have been calculated
for the three-year period ending December 31, 1960 from the volume of
logs scaled and graded by the Grays Harbor Log Scaling and Grading
Bureau. These are set forth below: TABLE OMITTED SEE ORIGINAL
MODIFICATION OF TREND RATES BASED ON THREE-YEAR AVERAGE LOG GRADE
PERCENTAGES TABLE OMITTED SEE ORIGINAL ...Indicated stumpage rates as
derived on the basis of trends in the log market modified in accordance
with the use of the three-year grade recovery average is summarized
below: TABLE OMITTED SEE ORIGINAL DIRECT APPRAISAL: ...The
determination of proper log values for use in this report is of
considerable importance. We are of the opinion that log prices as
reported by the Pacific Northwest Loggers Association for the Grays
Harbor area represent the true value of logs in this area. Our own
investigation of log prices currently being paid by the plywood, sawmill
and pulpwood platns on Grays Harbor bear this out The average log grade
prices paid throughout the 4th Quarter 1960 by 12 manufacturing plants
on Grays Harbor are shown in Exhibit B in Apprendex). It is also our
opinion that log values should not be based entirely on Grays Harbor
price, but should be based on the weighted average for the Puget
Sound-Grays Harbor markets. The weighted average log values for the
combined Puget Sound-Grays Harbor markets have been computed (See
Exhibit A in Appendix). ...The average log values as they pertain to
the Crane Creek Unit may now be computed by applying the weighted
average Puget Sound-Grays Harbor log grade prices to the previously
determined 3-year average grade percentages for each species. This is
shown in table on the following page: DOCUMENT OMITTED SEE ORIGINAL (
ILLEGIBLE ) DOCUMENT OMITTED SEE ORIGINAL ...The computations using the
individual profit and risk factor established at the time of sale is as
follows: TABLE OMITTED SEE ORIGINAL ...The avergage log value,
production cost and stumpage is obtained by weighting the factor for
each species by the percentage of each species cut for the 3-year period
January 1, 1958 through December 31, 1960. This results in the
following: TABLE OMITTED SEE ORIGINAL ...The average profit and risk
factor is now computed as follows: TABLE OMITTED SEE ORIGINAL ...It
will be noted that the profit and risk factor is the same as that for
the conditions at the time of sale. However, it is necessary to make
some changes in the above indicated stumpage rates in order to provide a
reasonable current stumpage value relationships between the various
species involved. The direct appraisal is useful in recommending
stumpage rates which will provide conditions similar to those in
existance when the timber was sold. Also, change in trend values and
grade recovery will be considered in arriving at the rates recommended
in table on the following page: TABLE OMITTED SEE ORIGINAL ...The
profit and risk factor based on the rates recommended is computed as
follows: TABLE OMITTED SEE ORIGINAL DETERMINATION OF RATIOS ...The
effective ratios may now be determined by applying the recommended
stumpage rates to the current index log value for the fourth quarter
1960: TABLE OMITTED SEE ORIGINAL CHANGES IN EXISTING RATIOS AND
STUMPAGE RATES TABLE OMITTED SEE ORIGINAL RECOMMENDATIONS: ...It is
recommended that the following ratios be made effective on April 1,
1961: TABLE OMITTED SEE ORIGINAL DATE:...... ............Don W. Clark,
............Asst. Forest Manager DOCUMENT OMITTED SEE ORIGINAL DOCUMENT
OMITTED SEE ORIGINAL TABLE OMITTED SEE ORIGINAL TABLE OMITTED SEE
ORIGINAL Notes: ... ...1. Direct logging costs include all payroll
assessments (payroll ...... unemployment insurance, etc.) adjusted to
local conditions ...... using 1960 Region 6 logging cost guide dated
7/15/60, ...... U.S.F.S. ...2. Overhead and depreciation costs
identical to Forest Services ...... average cost guide figures. ...3.
Fire protection cost from last years audit of company accounts ......
(.22 per MBM plus .07 for overhead). This is identical to ...... that
given in 1960 Forest Services cost guide. ...4. Extra costs: line
running based on anticipated 1961 ...... operations; scaling cost
obtained from last years audit of ...... company records; extra
branding costs based on estimated cost ...... necessary to brand timber
on allotments as timber is felled. ...5. Truck haul computed using
Washington Public Service ...... Commission formula and rates stated in
Tariff No. 4-A, ...... effective October 26, 1960. (Factors used to
adjust ...... gross to net were obtained from 26-TM 179, U.S.F.S. 1955);
...... defect was obtained from 1960 check scale information. ...6.
Road maintenance cost determined by allowing .10 per MBM ...... per mile
(average of 8 miles). ...7. Dumping, rafting and towing costs obtained
from audit of ...... company records in 1960. ...8. Road construction
costs computed using volumes estimated ...... in the 1960 inventory
report; detailed cost breakdown of ...... construction cost estimates
prepared by Forest Engineer ...... on Agency staff; amortization
schedule on file at Hoquiam ...... Sub-Agency Office. TABLE OMITTED SEE
ORIGINAL ............EXTRA BRANDING COSTS ............CRANE CREEK UNIT
............1961 TABLE OMITTED SEE ORIGINAL ......Volume removed 1/1/60
to 12/31/60: 46,470 MBM ......Cost per MBM: (based on last years
production) .........$22,00 divided by 46,470 = .473 or .47 per MBM
............LINE RUNNING COSTS ............CRANE CREEK UNIT
............1961 TABLE OMITTED SEE ORIGINAL Volume removed 1/1/60 to
12/31/60: 46,470 mbm COST PER MBM: (based on last years production)
TABLE OMITTED SEE ORIGINAL Notes: ... 1. Line running or property line
surveying costs obtained from ... Appraisal Handbook, Bureau of Land
Management, Oregon State ... Office, Portland, Oregon, December 1960.
Their breakdown of ... cost estimates based on high order surveying
suggested by ... Cadastral Engineers is as follows: ... Conditions
Encountered: ......a. Fairly dense timber where topography and
......... underbrush are moderate - $175/mile. ......b. Rough
topography and dense brush - $300/mile. ... An average cost of $235 per
mile of line has been determined ... as representative of the conditions
encountered on the ... Quinault Reservation in the virgin timber stands.
HES-004-1344-1364
HES-004-1344-1364
IIR61.2
620328
CORRESPONDENCE
SCTY OF INTERIOR ; OFC OF THE SCTY
............Attention: Mr. L. J. Forrest, Vice President Gentlemen:
...Your attention is invited to the hearings before the Subcommittee on
Indian Affairs of the Committee on Interior and Insular Affairs, United
States Senate, 85th Congress, 1st Session, April 12-15, May 29 and June
3, 1957, dealing with timber sale contracts on the Quinault Indian
Reservation. For your convenience, there is enclosed a copyy of the
printed hearings. It includes the testimony of representatives of your
company. ...The hearings, among other things, deal with the proper
interpretation of these contracts, with specific reference to
consideration of interest on advance payments as an item to be included
in computing operational costs when adjusting ratios under the
contracts. ...On August 13, 1957, the Assistant Comptroller General of
the United States addressed a letter to the Secretary of the Interior,
the last paragraph of which reads: ......We must conclude, in view of
the foregoing, that the ......assessment against the Indians of interest
on advance payments ......not contemplated in the original contract may
not subsequently ......be included under the authority of article 10 of
the contracts. ......Please advise us of the steps you intend taking in
order to ......rectify the situation. # # # ...Subsequently, the
Comptroller General authorized the Secretary of the Interior to hold in
obeyance any action on the interest allowance pending the outcome of
court action involving another contract for the sale of Indian timber.
However, by his letter of October 9, 1959, to the Secretary of the
Interior, the Comptroller General reaffirmed the position taken in the
letter of August 13, 1957, as quoted above. ...With respect to the
Crane Creek Logging Unit contract, No. I-101-Ind. 1902, the Portland
Area Office, Bureau of Indian Affairs, has made a detailed calculation
to determine the difference between amounts due as stumpage payment,
when calculated at the stumpage rates actually charged your company
(after allowance for interest) and the amount due when calculated at
stumpage rates in which this interest allowances does not appear. From
these calculations it is found that there is due from your company the
sum of $101,999.60. This is the additional amount now due for stumpage
cut and scaled during the period October 1, 1955, through March 31,
1957, this being the period in which stumpage rates were affected by the
interest allowance. The Commissioner of Indian Affairs will provide you
with a copy of the calculations. ...In a subsequent audit review by the
General Accounting Office, completed in April 1959, there was discovered
a $1.00 error in the revaluation report which lead to the adjustment of
stumpage ratios of the Crane Creek Unit effective April 1, 1958. The
source of this error, and its ultimate effect upon the amount charged
for stumpage, are outlined in the attached "Recalculation of Stumpage
Ratios, and Value of Stumpage Scaled # # #." This recalculation reveals
that, because of the error, there was an undercharge of $18,086.92 for
timber scaled from the Crane Creek Unit during the period April 1, 1958,
to March 31, 1959 -- the period that was affected by the error. ...The
base records from which all calculations have been made, with respect to
both the interest allowance and the $1.00 error in ratio determinations,
are in the possession of the Superintendent of the Western Washington
Indian Agency, either at the Agency Office in Everett, Washington, or at
the Field Office in Hoquiam, Washington. You may inspect these records
to verify the calculations. ...This letter should be considerred as a
demand for payment of $101,999.60, to rectify the erroneous allowance
for interest on advance payments during the period October 1, 1955, to
March 31, 1957, inclusive. It should also be considered as a demand for
payment of an additional $18,086.92, to rectify the error in stumpage
ratio determination during the period April 1, 1958, to March 31, 1959,
inclusive. ............Sincerely yours, ............Secretary of the
Interior Rayonier, Incorporated Box 539 Hoquiam, Washington Enclosures
Copy to: Area Director, Portland, Oregon (2) ............Recalculation
of Stumpage Ratios, ...and Value of Stumpage Scaled-Crane Creek Logging
Unit, .........April 1, 1953, to March 31, 1959, Inclusive ...The Crane
Creek Logging Unit contract provides for automatic adjustment of
sstumpage rates for each quarter-annual period beginning January 1,
April 1, July 1 and October 1. The specified percentages of grades of
logs for each species are applied to the quarterly log prices published
by the Pacific Northwest Loggers Association for the Puget Sound, Grays
Harbor and Columbia River markets to obtain the average log price. The
average log price for each species is then multiplied by a stipulated
rario to obtain the stumpage ratio that is to be used in the succeeding
quarterly period. ...The contract contains a provision for changing the
stipulated ratio for the various species when certain factors have
altered the situation enought to warrant such a change. ...A change in
the established ratios was made effective April 1, 1958. The new ratios
were the same as those recommended in a memorandum of April 17, 1958,
"Adjustment of Stumage Rates # # #" prepared by the Branch of Forestry,
Bureau of Indian Affairs. With his letter of July 7, 1958, the
Assistant Secretary sent the purchaser a "Summary of Information" which
sets out the calculations that were used, in part, to derive the new
ratios. ...A subsequent audit report by the General Accounting Office,
as of April 1959, contains the following statement: ..."Under the
method for computing stumpage rates on the ...Crane Creek Unit contract,
we noted that a $1 error in ...the addition of weighted log values for
cedar resulted ...in an understatement of the ratio of the stumpage rate
...to the weighted average log prices. This ratio is the ...basis for
determining the selling price (stumpage rate) ...of the new logs under
the contract until the next reappraisal ...is made. From April 1, 1958,
the effective date ...of this reappraisal, through December 31, 1958,
about ...$11,000 gross sales revenue was lost to the Indian timber
...owners. This error has also resulted in a loss of revenue ...to the
Bureau because, under the basic authority of ...25 U.S.C. 413, the
Bureau deducts 10 percent of the gross ...timber sales receipts for the
purpose of recovering its ...expenses in administering and supervising
the management and sale of the Indian timber. Average losses will
continue ...until the next reappraisal of the contract because
.........a recent reappraisal study, complete in February 1959,
.........concluded that conditions under the contract had not
.........been sufficiently altered to warrant a change in the
.........existing stumpage to log price ratios." ...The source of the
error, the manner in which it carried through to the determination of
ratios that became effective April 1, 1958, and the resultant effect
upon stumpage changes, are revealed by the analysis which follows. The
analysis may be compared with material starting at page 16 of the Branch
of Forestry memorandum of April 17, 1958. It may also be compared with
the material starting at page 10 of the "Summary of Information" that
was furnished the purchaser with the Assistant Secretary's letter of
July 7, 1958. ............DETERMINATION OF AVERAGE LOG VALUES FOR UNIT
TABLE OMITTED SEE ORIGINAL ...Averages for the unit in the original
report were as follows;; TABLE OMITTED SEE ORIGINAL ...Averages for the
unit in the correction are as follows: TABLE OMITTED SEE ORIGINAL
...The above analysis results in a profit and risk factor of about 1.086
and 1.0853, reportively. At the time of sale, the profit and risk
factor was 1.104. This reduction is due to the difference between
species composition set forth in the contract and that actually out. An
adjustment was therefore made to provide the profit and risk margin
originally intended, and to bring the relationship of species values
into a resonable current relationship. ...The following table shows
these adjustments as taken from the original report: TABLE OMITTED SEE
ORIGINAL ...A corrected table shows the following: TABLE OMITTED SEE
ORIGINAL ...If the recommended rate for order had been $13.80 instead of
$15.00, the resulting profit and risk factor would have been very close
to 1.104 as determined for the time of sale. ...It has been shown that
the weighted log value for all species, based on the corrected weighted
log value for cedar, would be $53.39. The profit and risk factor
computed at the originally recommended rates would be as follows: TABLE
OMITTED SEE ORIGINAL ...This indicates that the profit and risk factor
based on the rates recommened in the memorandum of April 17, 1958, was
greater than at the time the timber was purchased by slightly more than
one percent. ...The ratios involved are as follows: TABLE OMITTED SEE
ORIGINAL ...Since April 1, 1958, stumpage prices on the Crane Creek Unit
have been computed on the basis of the new ratios recommended in the
memorandum. The following table shows the western redcedar prices for
the various periods as computed on the basis of the ratio that was made
effective (27.35%), determined by the report of April 17, 1958, and also
what the prices would have been had the ratio of 28.80% been used.
...Weighted log values have been computed by multiplying the weighted
log grade values for the Puget Sound, Grays Harbor and Columbia River
markets by the stipulated grade percentages set forth in the contract.
TABLE OMITTED SEE ORIGINAL ...A new study of stumpage ratios, in which
the $1.00 error was not involved, was made in February 1959. As a
result, it was recommended that no change in ratios should be made at
the time. The recommendation was approved February 27, 1959. The $1.00
error, therefore, affected the stumpage rates only from the second
quarter 1958 to the second quarter 1959, both inclusive, and any loss in
revenue caused by the error should be computed for this same period.
This loss in revenue is computed by determining the difference in value
of the western redcedar cut during this period at the prices in effect
as compared to what the value would have been if it had been computed at
the prices which would have been effective had no error occurred. This
is accomplished in the following table: TABLE OMITTED SEE ORIGINAL
DOCUMENT OMITTED SEE ORIGINAL
HES-004-1365-1372
HES-004-1365-1372
IIR61.1
FORREST, L J