FIGURE 1. Difference in ownership of commercial forest land between Eastern and Western United States while protecting its productivity and preventing monopoly of the resources by a few. Timber sales of the Federal agencies now produce revenues of over $100 million annually. These revenues exceed the annual cost of operation, exclusive of the capital investments required for the further development of the lands. This is a big business activity on the part of the Federal Government. It has been complicated by the problems present in the change from a custodial to a management era. Most of the major cities and farming areas of the West depend on the national forests for their water. In the 11 Western States 53 percent of the average water production comes from the 21 percent of land area in national forests. Some 60 million people use the national forests for recreation annually. The timberlands of the Bureau of Land Management, though small in acreage, are tremendously important, at least in western Oregon. Indian timberlands are not only an important revenue source for the Indian people, but also an important source of industry revenue. FIGURE 2. Distribution of live saw timber volume on commercial forest land by ownership class and section, continental United States We quote a significant statement made by a Forest Service official in 1913 testifying before the House Agriculture Committee, which highlights one of the basic benefits which may be derived from having some commercial forestland under Federal management. Question. The fact that timber from Government-owned land is put on the market creates a competition with those who might have a monopoly of the lumber business; does it not? Answer. Yes, sir. The opportunity to purchase national forest stumpage makes it possible for small and independent operators to remain in the industry and compete with the large private owners of timber. *** ** As far as practicable we dispose of timber in small lots, suited to small operations, and the great majority of our sales are in small amounts of from 100,000 to 5 million feet. * * * 1 The witness was the late William B. Greeley, the Assistant Chief of the Forest Service, who later became Chief and subsequently an officer of the West Coast Lumbermen's Association. The committee views this aspect of Federal timber sales policy as of continuing great importance. Consequently we have given considerable attention to the problems of the non-land-owning timber operator. The national forests and other lands set aside for public purposes serve our Nation in many ways. They have inspiring esthetic values and practical commercial usage. All the land is to be devoted to its most productive use for the permanent good of the whole people and not for the temporary benefit of individuals or com panies. *** Where conflicting interests must be reconciled, the question will always be decided from the standpoint of the greatest good of the greatest number in the long run.2 It is with these thoughts in mind that this further report is made setting forth the position which the executive branch has adopted for each recommendation. 1 See item 1, appendix, Staff Report, Federal Timber Sales Policies, 1956, for full statement. Letter by Secretary of Agriculture Wilson to Gifford Pinchot, Chief of the Forest Service, 1905 FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS OVERALL POLICY A. CONSOLIDATION FINDINGS AND CONCLUSIONS The joint committee finds that although the three Federal agencies, Forest Service, Bureau of Land Management, and Bureau of Indian Affairs, are performing the same timber-management functions in the same areas, there are confusing differences in policy, method, and procedure. There is duplication, overlapping, and waste. The map shows the degree of overlap in the Pacific Northwest.1 Under these circumstances, the forest-products industry finds it difficult to cope with the problem of dealing with different agencies administering the same resource. The existence of separate and independently managed agencies has led to three uncoordinated and inconsistent forestry programs. The Forest Service manages by far the largest area of the Federal timber domain. It is the most experienced of all the Federal timber agencies. It performs the basic forest research for all agencies of the Federal Government and is technically equipped to assume even greater responsibilities. The joint committee believes that this agency, by reason of experience, trained personnel, and technical facilities, is the logical choice to undertake the direction of a consolidated and integrated forestry program embracing all commercial timberlands now under Federal jurisdiction. There are only about 400 forestry personnel in the Bureau of Land Management and the Bureau of Indian Affairs combined, as compared to over 1,283 full-time and 3,302 part-time timber management employees in the Forest Service; and there are only about 12 million acres of commercial forest land under the jurisdiction of these 2 Interior Department agencies compared to over 81 million acres in the national forest system. We also find that the allowable cut on the national forests is approximately 7.5 billion board-feet a year, while the combined cut on the lands of the other agencies is slightly in excess of 1 billion board-feet. Nevertheless, both the Bureau of Land Management and Indian Affairs timber, located in the midst of the great timber-producing areas, play a significant role in the timber economy of these areas. The committee believes that the optimum economic development of the region and the achievement of maximum sustained-yield production can only be attained through the consolidation and integration of the timber-management functions of these agencies. Functions and responsibilities other than surface resource management should be carried out in accordance with currently applicable 1 Map omitted in this printing. laws and regulations as now administered by those agencies having jurisdiction over these lands. RECOMMENDATIONS A-1. We recommend the consolidation in the Forest Service of the forestry functions and the surface resource management responsibilities for commercial forest land under the jurisdiction of the Bureau of Land Management and the Bureau of Indian Affairs. A-2. We further recommend that a reorganization plan to accomplish this be prepared by the President under the authority provided by the Reorganization Act of 1949 (Public Law 109, 81st Cong.) and that it be laid before the Congress for the prescribed 60-day period commencing with the convening of Congress in January 1959. A-3. The intervening period should be utilized to perform the tasks incidental to orderly consolidation. (a) We suggest a study be made of all Federal commercial timberland within Federal-management units in order to determine the best use for the land and later provide a basis for classification of lands which should be retained in Federal management. (b) A review be made of all procedures governed by statutory requirements and legislation be submitted to provide for uniform practices. (c) A review be made of all regulations governing timber management and a single set of regulations be prepared. (d) The agencies should coordinate forestry programs in the interim period, taking into account the recommendations made by this committee. A-4. The consolidation should leave unaffected the receipts distribution formulas applicable to the Oregon and California, and Coos Bay Wagon Road revested lands in Oregon, which have special legislative histories. However, where vacant public domain becomes a part of the national forest system, consideration should be given to designating it as national forest land subject to all of the rules, regulations, and receipts distribution formulas applicable to the national forests. RESPONSE BY THE EXECUTIVE OFFICE OF THE PRESIDENT Hon. JAMES E. MURRAY, BUREAU OF The Budget, Washington, D. C., July 1, 1958. Chairman, Committee on Interior and Insular Affairs, United States Senate, Washington, D. C. MY DEAR MR. CHAIRMAN: This is in response to your letter of May 15, 1958, requesting that the Bureau of the Budget report on the status of action on certain recommendations set forth in a report entitled "Federal Timber Sales Policies" issued by the Senate Committee on Interior and Insular Affairs on August 6, 1956. We are informed that your committee has made similar requests to the Departments of Interior and Agriculture and that these agencies will comment in detail on the actions taken on those recommendations of the report dealing with technical matters relating to forest management. This office will, therefore, confine its comments to the recommendations relating to the consolidation of timber management functions. The report on Federal timber sales policies urged the consolidation in the Forest Service of forestry functions and surface resource management responsibilities for commercial forest land of the Bureau of Land Management and the Bureau of Indian Affairs; submission to Congress of a reorganization plan to this |