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ticular item, some of the States will be handicapped in building up their organizations for fire protection. It is spread over 39 States, and they have but a nucleus organization for fire protection for 225,000,000 acres of forest lands, and with this amount, it is quite impossible to provide any continuity about it.

COOPERATIVE DISTRIBUTION OF FOREST PLANTING STOCK

Mr. SANDLIN. The nest item is for the cooperative distribution of forest planting stock, as follows:

For cooperation with the various States in the procurement, production, and distribution of forest-tree seeds and plants in establishing windbreaks, shelter belts, and farm wood lots upon denuded or nonforested lands within such cooperating States, under the provisions of section 4 of the act entitled "An act to provide for the protection of forest lands, for the reforestation of denuded areas, for the extension of national forests, and for other purposes, in order to promote the continuous production of timber on lands chiefly suitable therefor", approved June 7, 1924 (U.S.C., title 16, sec. 567), and acts supplementary thereto, $56,296, of which amount not to exceed $1,611 may be expended for departmental personal services in the District of Columbia.

Mr. SILCOX. The following statement is presented in justification of this item:

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Increase, Budget 1935, compared with estimated obligations, 1934_____ There is a reduction of $18,434 in the 1935 estimate of $56,296 as compared with the apporpriation of $74,730 for 1934.

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The work under this appropriation consists of cooperation with 40 States, including Puerto Rico and Hawaii, in the production and distribution of forest planting stock for establishing windbreaks, shelter belts, and farm wood lots upon denuded or nonforested lands, as authorized by section 4 of the Clarke-McNary Act of June 7, 1924.

This work is administered directly by the State agencies; the Forest Service inspects, advises, and correlates. It is very desirable that the work continue without curtailment in order that the progress being made in stimulating the projects of cooperating States may be sustained and not retarded. These funds are largely used for maintaining existing nurseries on established production programs, and curtailment will affect the supply of planting stock not only for the immediate future but for several years, since it takes from 1 to 4 years to produce this stock for field planting.

In spite of the depression, the States distributed a total of 23% million trees for use on farm lands in the calendar year 1932. This represents a decrease of about 2 million trees from the 1931 distribution.

The planting of these trees represents direct action aimed at the proper utilization of certain farm lands which are sub-marginal for

agricultural use. During the fiscal year 1933 the States spent $196,000 on these cooperative projects, while the Federal contributions to the same projects totaled $77,000. For the fiscal year 1934 it has been necessary to reduce the regular allotment to each State which can qualify for $2,000 to $1,500.

AUTHORIZATION COVERING PURCHASE OF PASSENGER-CARRYING VEHICLES (FOREST SERVICE)

Mr. SILCOX. The following statement is submitted in regard to the purchase of passenger-carrying vehicles:

An increase of $3,920 is recommended in the passenger-carrying vehicle purchase authorization for 1935 in order that in addition to replacement of old cars, by exchange, as shown in detail in the Budget schedule, the Forest Service may make further progress in the program of supplying a Government-owned automobile for use of each forest administrative unit where conditions make this the most effective and economical means of transportation. Under the reductions that have been made in funds for operating purposes it has been necessary to consolidate administrative units in all parts of the country, thus making automobile transportation an urgent necessity in these cases. No passenger-carrying vehicles were purchased in 1934. As shown by the Budget schedule, authorization is provided for 27 additional cars, at an average net cost of $505.

In addition to the above, an increase of $835 is recommended in the authorization for passenger-carrying vehicles for use in the construction and maintenance of national forest roads. This increase contemplated purchase of 2 additional cars at an average cost of $418, for the use of engineer inspectors.

Careful operating cost records and work surveys have shown conclusively that the field of effective accomplishment of a ranger or other forest officer is materially extended by the availability at all times of motor transporattion.

Mr. SANDLIN. How is the appropriation for cooperative distribution of forest planting stock handled?

Mr. HASTINGS. It is handled in a similar manner to the other cooperative appropriation. We are cooperating with 40 States in the production and distribution of forest planting stock for windbreaks and farm wood lots over the country. The Federal Government puts up this year an allotment of $1,500 for the State which can qualify for this amount. The State has, in general, a nursery where it raises trees for this purpose, and distributes them to private owners for the development of their farm lands. In the Plains States that is largely a matter of establishing windbreaks or shelter belts. In other parts of the country it is devoted to forest plantings on farms like the typical woodlot in the Northeast, and the various kinds of forest plantings in the South.

Mr. SANDLIN. Are the farm owners interested in this project? Do they plant the trees and cooperate with you?

Mr. HASTINGS. Yes, sir. Of course, the substantial thing they get, is a chance to buy trees at a small cost. Most of the States charge the actual cost of production for those trees. They would pay from $2 to $10 per thousand for the trees, and put them in with the important advice which they get from the forest agency in the State, in the plantations on their farms.

35962-34-60

PERMANENT INDEFINITE APPROPRIATIONS AND SPECIAL FUNDS

REFUNDS TO DEPOSITORS

Mr. SANDLIN. We now come to the permanent indefinite appropri ations and special funds.

Mr. SILCOX. The following statement is presented in explanation of the activities under the permanent appropriations:

REFUNDS TO DEPOSITORS, Excess of DEPOSITS, NATIONAL FOREst fund Appropriation:

1932.

1933.

1934

Estimated obligations, 1934.

Budget estimate, 1935..

WORK DONE UNDER THIS APPROPRIATION

$75,000

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All money received by or on account of the Forest Service for timber or from any other source of forest-reservation revenue, is covered into the Treasury of the United States as a miscellaneous receipt; and there is appropriated so much as may be necessary to make refunds to depositors of money deposited by them in excess of amounts found actually due from them to the United States, and so much as may be necessary to refund to the rightful claimants such sums as may be found to have been erroneously collected for the use of lands, or for timber or other resources sold from lands located within, but not a part of, the national forests, or for alleged illegal acts done upon such lands, which acts are subsequently found to have been proper and legal.

Appropriation:

National Forest Reservation Commission

1932

1933. 1934.

Estimated obligations, 1934.

Budget estimate, 1935

Decrease, Budget 1935, compared with estimated obligations, 1934.

$500 576 3, 600

3,600

2, 600

1,000

The reduction of $1,000 in the 1935 estimate of $2,600 below the appropriation of $3,600 for 1934 consists of:

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A sum sufficient to pay the necessary expenses of the Commission and its members, not to exceed an annual expenditure of $25,000, is provided under this item to be paid out on the audit and order of the president of the Commission, which audit and order is conclusive and binding upon all departments as to the correctness of the accounts of the commission.

Payments to States and Territories-National Forests Fund

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Increase, Budget 1935, compared with estimated obligations, 1934.

9, 139

There is a reduction of $280,000 in the 1935 estimate of $660,000 as compared with the appropriation of $940,000 for 1934.

This reduction consists of:

Curtailments in 1934 funds....
Increase in 1935 funds..

-$289, 139.

1 +9, 139

WORK DONE UNDER THIS APPROPRIATION

-280, 000

Twenty-five percent of all money received from each National Forest during any fiscal year is paid at the end thereof by the Secretary of the Treasury to the State or Territory in which the national forest is situated, to be expended as the State or territorial legislature may prescribe for the benefit of the public schools and public roads of the country, or counties in which the national forest is situated. When any National Forest is in more than one State or Territory or county, the distributive share to each from the proceeds of the forest is proportionate to its area therein.

Payments to school funds, Arizona and New Mexico, national-forest fund

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Increase, budget 1935, compared with estimated obligations, 1934...The increase of $3,500 in the 1935 estimate of $28,500 over the appropriation of $25,000 for 1934 is based on an anticipated increase in gross receipts during the fiscal year 1935.

WORK DONE UNDER THIS APPROPRIATION

At the close of each fiscal year there is paid by the Secretary of the Treasury to each of these two States, as income for its common-school fund, such proportion of the gross proceeds of all the national forests within the State as the area of lands granted to the State for school purposes within these forest reserves may bear to the total area of all national forests within these States.

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Decrease, Budget 1935, compared with estimated obligations 1934---- 260, 343

While, in view of road building expenditures from emergency funds, there is no Budget estimate shown for 1935, there is, however, an unobligated balance of $405,700 of prior year appropriations available for use during 1935 and which it is contemplated will be fully obligated during that year.

WORK DONE UNDER THIS APPROPRIATION

This appropriation is used for the construction and maintenance of roads and trails within the boundaries of the national forests and of value to the national forests and needed by the public. They include transportation facilities that would be constructed by public agencies if the national forest land and resources were subject to taxation.

1 The increase of $9,139 in the estimated obligations for 1935 is based on anticipated increase in net receipts during the fiscal year 1934.

The appropriation for the fiscal year 1934 and earlier was made available in accordance with the provisions of the Agricultural Appropriation Act of March 4, 1913 (37 Stat. 828), which makes available 10 percent of the receipts from the national forests within a State during any fiscal year for the construction and maintenance of roads and trails within the national forests of that State.

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Increase, Budget 1935, compared with estimated obligations, 1934__

483, 859

There is an increase of $323,455 in the 1935 estimate of $2,000,000 as compared with the appropriation of $1,676,545 for 1934.

This increase consists of:

Curtailments in 1934 funds..
Increase in 1935 funds...
5-percent salary restoration.......

WORK DONE UNDER THIS APPROPRIATION

-$160, 404 +1 478, 739 +5,120

+323, 455

All moneys received as contributions toward cooperative work in forest investigations, or the protection and improvement of the national forests, including deposits received from timber purchasers to cover the cost to the United States of disposing of brush and other debris resulting from cutting operations in sales of national forest timber, are covered into the Treasury of the United States and constitute a special fund, which is appropriated and made available until expended as the Secretary of Agriculture may direct, for the payment of the expenses of the investigations, protection, or improvements of the Forest Service, and for refunds to the contributors of amounts paid in by them in excess of their share of the cost of investigations, protection, or improvements.

REFUNDS TO DEPOSITORS

Mr. SANDLIN. You have an item of $60,000, refunds to depositors, excess of deposits, national forest fund. How is this money used? Mr. HEADLEY. This is used to repay excess payments which have been covered into the Treasury in connection with various transactions incident to managing the national forests. For instance, a man who overpays for any reason, or is not able to use the resources he has paid for under permit, may, under the terms of the permit, secure a refund of the excess payment. Of necessity, there must be an arrangement for adjusting the transaction that way.

Mr. THURSTON. Can you give an example of that? I do not believe I understand what you refer to.

Mr. HEADLEY. For instance, suppose a man secures and pays for a grazing permit in a national forest, and for some unforseen cause, such as extreme drought or destruction of the forage by fire, he is prevented from using the range. In that event his payment is refunded.

Mr. THURSTON. Then, it is unilateral contract, for the benefit of one side, and not a bilateral contract for the benefit of both sides.

1 The increase of $478,739 in available working funds for the fiscal year 1935 is based on anticipated cooperative deposits during 1935 estimated at $2,000,000. The changes shown for projects constitute adminis trative adjustments resulting from prorations of the increase after taking into consideration increases OD account of the 5-percent salary restoration.

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