HomeMy WebLinkAboutDAAtexasforestryMr- .fir
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G -P Announces
Plywood Plant
For Corrigan
Construction of the state's lar-
gest southern pine plywood plant
has begun at Corrigan.
The 169 million square foot
annual capacity (3/8 inch basis)
facility is a major phase in Geor-
gia- Pacific Corporation's multi-
million dollar forest products ex-
pansion program.
The plant, expected to cost$10
milUon, is slated to be in opera-
tion by early 1972. Employment
will exceed 350 with an annual
payroll near $2 Million. Site of the
plant is two miles north of Cor-
rigan.
The Corrigan plant is the sec-
ond new East Texas construction
project announc ed by G- P in 1970.
Earlier last year the company re-
vealed plans for a $9 Million
southern pine plywood plant and
a $2 Million high speed small
log sawmill at New Waverly, ten
miles south of Huntsville.
Construction of the New Wav-
erly plants is progressing on
schedule with production to be
gin in early May, 1971, according
to Jack E. Meadows, G-P vice
president and Crossett Division
general manager.
These three new plants repre-
sent important phases in G -P's
commitment to develop an ex-
tensive wood products manufac-
turing program throughout East
Texas and SW Louisiana southern
pine timber belt, Meadows said.
G-P currently operates a large
pine sawmill at Corrigan, form-
erly the Reynolds - Wilson Lum-
ber Co, and acquired by G-P in
August of 1969.
According to Meadows, GP's
plans call for an orderly closure
of the sawmill timed with trans-
fer of the 180 employees to the
new pine plywood plant,
"We regret having to phase
out our Corrigan sawmill, but
economics and advanced plywood
technology now dictate a better
utilization of timber by convert-
ing the large diameter pine saw
logs into plywood," Meadows
said.
"Actually," he added, "the
change will mean increased G-P
employment in the Corrigan area,
Further, greater saw timber re-
quirements for the plywood plant
will improve the related timber
harvesting economy."
In order to meet the increased
demands for water -proof resin
adhesives at the new G-P fa-
cilities in East Texas, the Lufkin
chemical plant is expected to be
expanded.
G-P's basic expansion pro-
gram includes;
— In addition to New Waverly
and Corrigan, a third new south-
ern pine plywood plant to utilize
large diameter pine saw logs.
(See PLANT, Page Two)
RESEMBLES NEW PLANT — Aerial view of
Georgia- Pacific's $9 Million Southern pine ply-
wood plant under construction at New Waverly,
Texas, provides preview of what new $10.6 Mil -
lion plywood facility for G -P at Corrigan,
Texas, will look like when completed in early
1972. Corrigan plant will be the state's larg-
ARBOR DAY PROCLAIMED — On hand when and W. W. Raborn, president of the Texas For-
Governor Preston Smith proclaimed January estry Association. Free Arbor Day Pro -
15 as Arbor Day in Texas were Paul Kramer gram Kits may be obtained by writing the
(left), director of the Texas Forest Service, TFS.
Small Timberland Owners
Given Pointers On Taxes
est Southern pine plywood operation with a
rated annual capacity of 160 million square
feet (3/8 -inch basis). Production will include
the full range of construction grade plywoods.
Projected employment will exceed 350 peo-
ple with an annual payroll near $2 Mil-
lion.
(EDITOR'S NOTE; Reprinted
here is the speech given by
James Phillips, Forester with
the Internal Revenue Service,
Houston, at the Angelina County
Forestry Clinic held in Lufkin.
The subject of his speech being
particularly timely for timber-
land owners, we are using it in
its entirety.)
For the next few minutes, I
will be giving you some informa-
tion on timber taxes. As you might
suspect, the taxes I am referring
to are federal income and estate
taxes.
The subject is large and in
some areas, quite complex. For
that reason, I will -concentrate
on some of the basic problems
and areas of concern of small
timberland owners.
Tax problems generally come
to mind as filing season draws
near. For timberland owners
though, tax consequence is usu-
ally dictated at the time of trans-
action. By that I mean, the way
you sell your timber, compute
your cost, or the nature of an
expenditure will determine its
tax treatment.
I will spend a few minutes on
each of the following areas which
I have found create the most
concern; (1) Allocation of cost,
(2) cost of ownership and oper-
ation, (3) timber sales, (4) Re-
cord keeping requirements.
Allocation of Cost
Potential tax problems arise
with or even before you become
the owner of a timber property.
The allocation of the purchase
price of a property should ne-
cessarily be done at the date of
acquisition.
This cost quite often includes
attorney's fees, surveying costs
or consulting forester's fees
which may have been incurred
before you became the owner of
the property.
Once you do own a property,
you must allocate or spread the
total cost or other basis of the
property acquired, to thevarious
assets on the basis of their rel-
ative value. To further explain
this, I have a simple example.
(See chart.)
I ssume a 100 acre tract is
acquired. It has a stand of mer-
chantable timber on it and a fence
around it. The purchase price is
$200 per acre or a total of
$20,000. In this example, that
is the total cost.
Your inspection of the tract
revealed that there was 1,000
feet of pine sawtimber and five
cords of pine pulpwood per acre.
There is also some young
growth.
How do you allocate cost?
(See POINTERS, Page Six)
VOL. 12, NO. 1 TEXAS FORESTRY ASSOCAATION, LUFKIN, TEXAS JANUARY, 1971
PAGE TWO TEXAS FORESTRY
American Plywood
Association Files
Thicket Statement
(Editor's note: Published be-
low is the statement of the Ameri-
can Plywood Association oppos-
ing Senate Bill 4 which would
establish a Big Thicket National
Park of at least 100,000. The
statement was filed with the Sen-
ate Subcommittee on Parks and
Recreation of the Committee on
Interior and Insular Affairs.)
The American Plywood Asso-
ciation is a national trade as-
sociation representing 177 soft-
wood plywood mills that produce
80 percent of the nation's soft-
wood plywood. These mills em-
ploy approximately 71,300 people.
The American Plywood Asso-
ciation, after conferring with its
member mills in the area, making
a study of Senate Bill 4, and send-
ing its forestry affairs manager
for an on- the - ground inspection
of the area known as the Big
Thicket, is opposed to the pas-
sage of Senate Bill 4 whichwould
establish a national park. The
Association takes this position
for the following reasons:
1. Senate Bill 4 is unnecessary
to preserve the unique ecological
specimens within the Big Thicket;
this can be accomplished by the
establishment of a Big Thicket
National Monument.
2. As the Big Thicket is not
suited for high density recrea-
tion, a large national park is un-
warranted.
3. The continual withdrawal of
land from timber production must
be held to an absolute minimum
if the nation's wood needs are
to be met.
4. Removal of 100,000 acres of
timberland from multiple -use
management would seriously re-
duce the wood supply to the ply-
wood industry in the area.
On May 20, 1969, The Board of
Trustees of American Plywood
Association passed the following
resolution on the Big Thicket
National Park proposal:
WHEREAS, the National Park
Service recommended in May,
1967, the establishment of a 35,-
500 acre "string -of- pearls" Big
Thicket National Monument in
Southeast Texas to preserve the
unique ecology and historically
interesting characteristics of the
area, and
WHEREAS, the "string-of-
pearls" or dispersal concept
would have the further advantage
of distributing the economic bene-
fits of tourism to all sections of
the area involved; and making use
of the already acquired federal
lands surrounding lakes such as
Rayburn and Toledo Bend for
recreational purposes; and
WHEREAS, use and develop-
ment of land already owned by
the federal government should
be of primary consideration in
planning for the Big Thicket Park
or Monument, with the purchase
of additional lands from private
landowners secondary; and
WHEREAS, the economic pro-
gress of Texas is, to a large ex-
tent, dependent upon the renew-
able forest resources which sup-
ply the materials to help build
homes, schools, churches, towns,
and cities, which would be sub-
stantially reduced by creating a
Big Thicket Park of more than
35,500 acres, and
WHEREAS, countless forest
products are required to improve
the standard of living of this and
future generations;
NOW, THEREFORE, BE IT
RESOLVED, that the American
Plywood Association endorses
the establishment of a Big Thicket
National Park or Monument of not
more than 35,500 acres as pro-
posed by the National Park Ser-
vice in May, 1967.
The Association agrees with
the intent of Senate Bill 4 but
does not feel that it is necessary
to establish a national park to
protect the unique samples of
flora and fauna in the Big Thicket
area. We believe that these scien-
tific and aesthetic qualities can
be preserved with the establish-
ment of a national monument
through the "string -of- pearls"
concept.
The Association in doing this is
following the lead of the National
Park Service which in its study
of 1967 recommended a Big
Thicket National Monument. Al-
though the area does not fit the
criteria for a national park, it
does so ideally for a national
monument. The criteria for a
Monument are:
1. National monuments are land
and water area usually involving
less acreage than nationalparks.
2. Generally, national monu-
ments preserve resources having
primary scientific significance.
3. They should embrace a suf-
ficiently comprehensive unit to
permit public use in enjoyment of
the scientific object, feature or
assembly of features consistent
with the preservation of such
features.
4. National monuments for the
most part are not sufficient size
to support as broad a range of
visitor use programs as national
parks.
When the American Plywood
Association's forestry affairs
manager walked and drove
through parts of the area pro-
posed for national park inclusion
under Senate Bill 4, he noticed
that these areas were in all
different stages of forest growth
b LVd L'TJ I =1 .0 1 14 E& J I I !!I h " ZA ] J ; L
- I i GLENN ARMSTRONG AND ASSOCIATES
COL OR aw BLACK & WHM Com merciol
PHOTOGRAPHY
A DVERTISING FOR
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w
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i a *CATALO
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N /` • HUMANLY VOSS ALE"
NIGHTS CALL 8293717
111 E. Frank (,a,y,,y Osabr) L.M.
— anywhere from recent harvest
to mature timber stands. Agreat
deal of the area was devoted to
a southefn pine forest type which
is not unique to this area but can
be found in a wide - spread belt
in the southern pine region.
He also noted the unsuitability
of the area for mass recreation
because of the enormous number
of mosquitoes and other biting in-
sects.
Many local residents have
mentioned the prevalence of poi-
sonous snakes as a good reason
for not walking around in the
thicket during particular times
of the year.
As our resolution states, four
large recreation areas north of
the Big Thicket area are all
based on water oriented sports.
These areas are suited for mass
recreation and should be deve-
loped for this.
The segment of the plywood
industry which would be great-
ly affected by the passage of
Senate 13ill 4 consists of five
facilities at Lufkin, Diboll, Sils-
bee, Nacogdoches in Texas and
Florien, Louisiana. These mills
QUALITY TOOLS
FOR FORESTRY
• TREE -JECT • HERBI-
CIDES • MISTBLOWERS
• PLANTING TOOLS
• RAIN GAUGES • FIRE
RAKES • FIRE PUMPS
• FLAME GUNS • DRIP
TORCHES • SPRAYERS
• CHAIN SAWS • BUSH
AXES • TREE MARKING
SUPPLIES • BRUSH -
CUTTERS • WINCHES
TREE -JECT COMPANY
Waycross, Georgia 31501
New Corrigan Plant
(Continued From Page One)
Products to be manufactured will
include the full range of construc-
tion grade plywoods to serve the
housing and commercial con-
struction markets.
— Construction of a number
of high speed efficient saw mills
to utilize small diameter pine
timber.
Production will include ran-
dom dimension lumber for con-
struction markets, as well as
pine chips for use by pulp and
paper mills in the area.
Meadows said successful com-
pletion of the company's expan-
employ 1,411 persons. In addi-
tion there are new mills being
built or planned for New Wav-
erly, Carthage and Jasper, Tex-
as that will create approximate-
ly 530 new jobs. These figures
do not include logging, hauling,
and services which provide ad-
ditional employment.
If the American people are go-
ing to benefit from the Hous-
ing Act of 1968 which outlined a
need for 26 million homes in
ten years, and if the United
States is to retain some of its
rural economy, the plywood in-
dustry in the area should be
encouraged. We feel that Senate
Bill 4 hinders these objectives
and should be defeated.
sion plan is dependent entirely
on how quickly G-P can secure
the necessary long -term timber
harvesting contracts with East
Texas land owners.
"We now have the necessary
timber commitments to proceed
with the New Waverly and Cor-
rigan projects and hope to dev-
elop the other major phases of
our broad expansion plan as soon
as we have the required long-
term timber harvesting con-
tracts."
"Happily, we are beginning
to see some improvement in
the key building markets utiliz-
ing our wood products. Interest
rates continue their downward
swing and national housing con-
struction figures are on the in-
crease. These factors plus other
reaffirm our belief that a major
Georgia- Pacific forest products
expansion program in East Texas
is necessary to meet the near
future demands we see for Geor-
gia- Pacific building products."
G-P's Crossett division op-
erates in five East Texas com-
munities. They include the Luf-
kin Resin Chemical Plant, Cor-
rigan's saw mill, additional saw
mills at Jasper and Kountze, and
the New Waverly plywood and
saw mill complex.
SUPPORT YOUR TFA
MILL SUPPLIES DIVISION
Of
LUFKIN INDUSTRIES, INC.
Lufkin, Texas
Phones: 634 -4456 and 634 -4421
THE MOST COMPLETE STOCK OF MILL AND
AUTOMOTIVE SUPPLIES, EQUIPMENT, PARTS
IN THE SOUTH, AND POLE LINE HARDWARE
MEMBER -A -MONTH CLUB — W. W. Rabom 1970 chairman of the Membership and Finance
(left), TFA president, presented Claude Will- Committee, also presented certificates to Troy
iams (center) of Newton and Charles L. Brown Hulet of Silsbee and E. A. Roach of Di-
of Lufkin Member -A -Month Club certificates boll. Out - going TFA president 0. R. Crawford
during the annual meeting. Raborn, who was is in the background.
Write For Catalog
TEXAS FORESTRY PAGE THREE
0 1 11k
Arbor Day
Is Slated
COLLEGE STATION — Gov-
ernor Preston Smith has desig-
nated January 15, as Arbor Day
in Texas.
A resolution by the 51st Leg-
islature, in recognition of the
importance of trees to Texans
designates the third Friday of
each January as Arbor Day.
In his proclamation the Gov-
ernor urged all citizens, and
especially the public schools of
Texas, to appropriately observe
the occasion in the interest of
Texas and the Nation.
"Trees have played a major
role in the development and grow-
th of Texas. As a economic crop
they have provided Texans with
vital raw materials, so impor-
tant to our wood- using industries,
helped stabilize the soil from
erosion by wind and water, pro-
vided food and cover for wild-
life and have been refreshingob-
jects of beauty around the home,
in parks and along our public
roads.
"Trees are an integral part of
our total natural environment.
Their ability to purify the air
and manufacture life- sustaining
oxygen are of the utmost impor-
tance to Texans.
"Trees are a renewable re-
source and as such should be
protected from their natural en-
emies — forest fires, disease and
insects."
Free ARBOR DAY PROGRAM
KITS are being offered by the
Texas Forest Service to assist
schools and conservation- mind-
ed organizations in developing
appropriate Arbor Day pro-
grams. Requests for the Kits
should be addressed to the Tex-
as Forest Service, College Sta-
tion 77843.
Forestry Topic
At SFA Meet
A "What's New in Forestry"
program will be presented Jan.
26 at Stephen F. Austin State
University.
It is being co- sponsored by the
SFA forestry department and the
Texas Chapter, Society of Ameri-
can Foresters.
Seven speakers on as many top-
ics have been scheduled for the
all -day affair which begins at
9 :30 a.m, in the Caddo Room of
the University Center,
Welcome
FIRE - FIGHTING TOOL — Paul Kramer (left), director of the
Texas Forest Service, accepts a "Pulaski" fire- fighting tool
from Douglass A. Craig, area director of the Southern region of
the U.S. Forest Service. The tool was presented in recognition
of the volunteers from Texas who helped fight the fires on the
west coast last August.
BOOK REVIEWS
A Southerner's
Forestry Guide
FORESTS AND FORESTRY,
By David A. Anderson and Wil-
liam. A. Smith. Interstate Print-
ers & Publishers, Inc. 1970.
357 p.p, illustrated tables.
Offering current information
about forestry in a simplified
manner, "Forests and Forestry"
can be used as either a text-
book or guidebook.
Vocational agricultural teach-
ers as well as small forest
land owners and tree farmers
will find the book organized con-
veniently into chapters for quick
reference to forestry topics.
Written especially about for-
estry in the south, "Forests
and Forestry" is authored by
two of the most qualified men
engaged in Southern forestry.
Anderson is head of the In-
formation and Education Depart-
ment of the Texas Forest Ser-
vice at Texas A &M University
#Wn oclv
LL
lmfhin. Texas 7:901
Quavtty CPntnttng at Topufah Tomes
DEPENDABLE PRINTING SINCE 1935
WE SALUTE
the forestry industry and
W's contribution to the
growth of East Texas
2=51= 1Q i Z18
offering more services p
to more people �d Sovd
and has had 36 years of forestry
experience in federal and state
agencies.
Smith is Extension Forester
of the Texas Agricultural Ex-
tension Service at A &M. He has
worked in all segments of pub-
lic and privateforestry activity.
The comprehensive coverage
of the book is exemplified by
such chapter titles as: "Land
Timber Management," "Silvi-
cultural Practices," "Artificial
Reforestation," "Wood Charac-
teristics, Identication, and
Uses," "Harvesting and Manu-
facturing Forest Products," and
"Wood Preservation," as well
as four other pertinent chap-
ters.
There are also ten appendices
which provide extremely useful
information. Topics of these ap-
pendices includes a listing of
southern colleges and universi-
ties offering forestry courses,
forestry agencies and special
services in the south, charac-
teristics of major tree species
and common range grasses of
the south as well as miscel-
laneous tables used infcrestry.
The miscellaneous tables list-
ed include approximate quantities
of forest products represented
by 1,000 feet of timber board
measure, number of trees per
acre by various methods of spac-
ing, Scribner Decimal Clog rule,
the international log rule and the
gross volume of tree, Doyle log
rule.
A 21 -page glossary which de-
fines important terms used in
forestry is also include in the
book.
The owner of small forest
acreage often does not realize
the value of his timber. The small
woodland owner can increase his
income with little effort byprac-
ticing farm forestry and his eco-
nomic future will be more secure
if he applies good forest prac-
tices.
The demand for wood and wood
products continues to grow as
new uses are constantly being
developed. Furthermore, in ad-
dition to being a money crop,
woodlands are important in soil
conservation, water conservation
and control, serve as a shelter
and a windbreak, and have many
other values and uses to the farm-
er.
Whether as an introduction to
forestry as a career, or as pre-
Pesticides Banned
Insects Ravage
Forest Regions
Ecology groups may actually be
working against themselves, the
public and the environment they
seek to protect.
This fear has been voiced by
an executive of the American
Forest Institute.
Insects and disease, uncheck-
ed in the name of ecology, are
becoming a serious threat to
parks and wilderness areas, ac-
cording to George C. Cheek, ex-
ecutive vice president of AFL
Unless corrective measures
are taken, the nation's future
timber supply also could be re-
duced, Cheek said.
American Forest Institute is
non - profit association of forest
products companies and other
with an interest inconservingth
nation's timber - producing fore
land. It is best known for it
sponsorship of thetreefarmpr
gram, and has members inever
state.
Cheek said some of the nation'
largest insect infestations ar
within the boundaries of recrea
tion areas, including Yellowstone
National Park, and that two other
potentially large areas are being
considered for inclusion in ne
reserves.
Control measures applied o
commercial timberlands ar
banned in park areas, he said
on the grounds that interference
with natural processes would
destroy the character of the for
est.
"The result is the destructio
of the forest itself," Cheek said
"This Is a natural phenomenon
but the natural process of regen
eration takes hundreds of years
"Minor intervention by pr
fessional foresters can presery
the character of a forest ind
finitely."
Pests Invade Parks
Cheek said presently affect
areas include over 100,000 acre
in Yellowstone park about 100,00
acres in the Boundary Water
Canoe area in Minnesota, an
"miles of insect killed lodgepol
pine" in the Chamberlain bas
of the Idaho Primitive area
In the Minam river area, under
consideration for addition to the
Eagle Cap wilderness in Oregon,
current losses of trees to insects
Is 9- 10,000 per year, he said,
"Even more serious are re-
ports from foresters that a 15;
000 acre insect infestation exists
within the proposed Voyageurs
National Park in Minnesota,"
Cheek said.
A spruce budworm infestation
of the Kabetogama peninsula will
defoliate the white spruce and
balsam fir that give the area its
heavy forest cover, Cheek said,
unless checked.
a A similar outbreak in 1958 and
1959 was successfully controlled
s on nearby land by a cooperative
e government- industry spraying
forest
program. As a national park,
s there would be no attempt at con -
o- trol.
y Cheeks said insects currently
account for the loss of 8.8 billion
s board feet of timber per year
e just in the federally owned na-
tional forests of the West, ac-
cording to government figures.
This is roughly equivalent to the
total timber harvest from these
w lands.
Cheek said it was inconsistent
n to permit insects to ravage forest
e unchecked, when fires are sup-
, pressed,
"The disaster is the same,
whether produced by insects or
fire," he said. "Insects just do
their work more quietly and Blow-
In Washington state, where
192,000 acres of forest were
lost in fires during 1970's hot
summer, rivers will be drasti-
c- cally affected by loss of water -
e shed, communities are in danger
e- of flooding and even a portion of
the apple crop is threatened by
changes in water flow patterns.
ed "This is in addition to the di-
s rect losses in terms of wild-
s life, recreation land, timber and
s the jobs that depend on the for-
d ests," Cheek said.
e "People seem to understand
in that protection is needed for the
trees in their own yards, or on
- their own blocks. They remove
caterpillar tents, cut off dead
limbs and spray dangerous in-
paration for the intelligent man-
agement of their own woodlands
students invocational agriculture
should study the protection, man-
agement, and proper utilization
of their timberland,
"Forest and Forestry" is the
book which gives them the know-
ledge that they need.
sects.
"In a forest far away, they
seem to feel the principles are
different. The result is hundreds
of square miles of dead, ugly
forest that breeds insects and
disease and then, when the trees
fall, an impassable tenderbox that
explodes into fires that use the
diseased areas as a springboard
to the healthy forest."
LUMBER MANUFACTURERS
LOGGING CONTRACTORS
PULPWOOD CONTRACTORS
If Workmen's Compensation Insurance is too expensive
and you want real protection at much less cost, try
Excess Employers Liability Insurance.
Now accepted by paper companies the same as
Workmen's Compensation
$1,000,000 protection cost about half of Workmen's
Compensation
Consult us any insurance problem.
WRITE OR TELEPHONE COLLECT
INDEMNITY UNDERWRITERS
Jay E. Minton
Stan Bossart
214/368 -5833
214/597 -8131
P.O. Box 12007 or
3613 S. Broadway
Dallas, Tex. 75225
Tyler, Tex. 75701
PAGE FOUR TEXAS FORESTRY
GUEST EDITORIAL
Pesticide Issue Needs
Mo re re Localized Study
Tree Farmers across America
are facing major challenges to the
way they have traditionally util-
ized chemical pesticides andher-
bicides in their scientific forest
management programs.
The federal government re-
cently prohibited the use of 16
pesticides on land owned by the
Interior Department after tests
showed certain uses of the pesti-
cides could, under certain con-
ditions, be considered harmful to
animal and human life. Included
among pesticides banned from
use on the government land were
DDT, 245 -T, BHC, L i n d a m e,
Chlordane and other chemical
compounds which have been used
for years by tree farmers as
part of their overall forest man-
agement program.
. a great deal of highly emo-
tional public pressure against the
continued use of these pesticides
goes on. And it is making a
rational, unbiased, common -sen-
se appraisal of the value of these
chemical compounds difficult, if
not impossible.
No one, least of all tree farm-
ers, would foster the continued
use of agricultural pesticides
which are found to be a threat
to animal or human life.
But neither should those who
practice scientific forest man-
agement be deprived of worth-
while pesticides and herbicides
which have a valuable and proven
record of eliminating und erg row-
th, eradicating insects, controll-
ing disease and helping grow
bountiful harvests of wood for the
needs of us all.
What is important for tree
farmers is that they become in-
formed on where the debate over
pesticides and their use stands
in relation to their localities and
their forest land. Wherever you
are, your county agent, extension
forester, state forestry commis-
sion agency and other informed
industry and government sources
can tell you what's what in the
battle over pesticides.
Chemical compounds like DDT
and 245 -T have traditionally been
a valuable tool over the years
in helping man produce more food
and fibre from the soil.
But if continued use of pes-
ticides will be banned, let's make
sure that it is required for the
benefit of all Americans, not just
a vocal handful who are demand-
ing that all pesticides be dis-
carded without offering any sub-
stitute agricultural aid to be used
in their place!
- Donald W. Smith,
Chief Forester,
Southern Forest Institute
(Reprinted from the
American Forest Insti-
tute Southern Tree Farm
News)
GUEST EDITORIAL
Third Forest Success
Requires Joint Effort
As though the country didn't
have enough problems already,
the United States may face the
non -so- distant threat of a tree
shortage. According to the Sou-
thern Forest Resource Council,
the country 15 years from now
must be growing a whole new
forest - which already is being
called the "third forest" - if
the nation is to meet its project-
ed timber needs of the year 2000.
The first forest, the council
explains, was that which the col-
onists found when they settled
America in the 1600 -Much of
that virgin timberlandwas clear-
ed with little thought • of future
needs.
The second forest was that
which was cultivated or managed
by man to replenish the virgin
timber stands and supply speci-
fic needs of defense, home- build-
ing and industry, including the
prodigious requirements of the
pulp and paper industry.
The third forest, says the coun-
cil, may prove the biggest chal-
lenge of all, requiring maximum
productivity of shrinking forest
lands and the development of
more "super trees" that grow
bigger and faster.
In the council's view the South
has the best opportunity of all
regions to cash in on these chal-
lenges - for no other region, the
council declares, can match the
South's potential for growing
trees.
All in all, say the experts,
to meet the demands 30 years
from now the country is going
to need another 30 million acres
of improved forests, or a land
area equal to all the forests now
standing in Florida and South
Carolina. And for the South to
grow this third forest, they say,
will require unprecedented co-
ordination of government, indus-
try and private landowners.
Economically these escalating
demands for lumber could work in
the enormous favor of the South
if this region can rise to the
challenge. Blessed alreadywitha
good head start - a long grow-
ing season, relatively large ex-
panses of undeveloped areas, and
48 million acres of forest land
presently enrolled in thenational
Tree Farm Program - the Sou-
thern region would be remiss not
to bend every resource to the task
of producing the third forest.
- Reprinted from the Memphis
Commercial - Appeal,
Memphis, Tennessee
Paul Framer
Is Honored
At Meeting
Paul R. Kramer, director of
the Texas Forest Service was
honored at the recent meeting of
the Southern Group of State For-
esters in Atlanta fc :- the part his
men played in fighting disaster -
ous forest fires in the Pacific
Northwest in August, 1970.
Douglass A. Craig, area direc-
tor, presented Kramer and six
other state foresters a "Pulas-
ki" fire - fighting tool as a token
of U. S. Forest Service apprecia-
tion for the Southern crews' re-
sponse in this emergency.
The call for help on several
spectacular fires was answered
by some 1325 men from the
southeastern states. Of these,
336 men were from state forestry
agencies. Texas sent 21 volun-
teers.
The inscription on the fire-
fighting tool reads:
"In recognition of your co-
operative spirit in responding to
the call for fire fighters during
the critical forest fire situation
in National Forests in the Wes-
tern United States."
Support Your TFA
..:fN LNG R?
FOOD. �` ►
PN IMPA - CAT'CLE /
PAD emlc*1114
1�1YDP h,
�FTOVERS•
l A
TEXAS FORESTRY ASSOCIATION
Book Reviews
By L. C. WALKER
Dean, School of Forestry
Stephen F. Austin University
Nacogdoches, Texas
SINCE SIL ENT SPRING, by
Frank Graham, Jr. Houghton Mif-
flin Company. 1970. 333 pp. $6.95.
Although Many of us as pro-
fessional resource managers and
in the business of using chemi-
cals, as pesticides and growth
stimulators, were offended by
Rachel Carson's "Silent Spring"
of 1962, none will argue the im-
pact of the book on the balance
of the decade.
"Ecology," "environment,"
and "pollution," as words, attest
to this. Miss Carson died ofcan-
cer soon after publication. Now
Frank Graham, an "Audubon"
editor, takes up her cause and,
with some "She told us so,"
wounds ou:' pride and then salts
those wounds.
, Foresters are spared indict-
ment. Rather the account of the
U. S. Forest Service's reduction
of DDT spraying since "Silent
Spring" from 4.9 million acres
in 1957 to 100,000 acres in 1967
to none in 1969 is applauded.
Such statistics, showing reduc-
tions in pesticide usage of t e r
Miss Carson's text appeared,
is an important component of
Graham's Anessage.
The coritroversy sparked by
her charges, the evidence (some
real and some imagined) of the
accuracy of her prophecy, and the
aggressiveness or hesitancy(de-
pending upon one's viewpoint)
of making changes in chemical us-
age are documented with a good
reference appendix.
Any writing of this kind maybe
expected to be a bit emotional.
Graham holds it to a minimum.
Any writing of this kind, too,
may be expected to be a bit ex-
aggerated to make a point. Gra-
ham holds it to a minimum.
And any writing of this kind
may be expected to be contro-
versial. C=raham will likely be
when the specialists of the many
sciences about which he writes
dissect his reporting of the evi-
dence.
What bothers me is what some
1980 writer will record in "Sin-
ce Since Silent Spring". Gra-
ham's text, by title, made pre-
diction no necessity, as it was
for Miss Carson.
But we might ask if, because
we've so abruptly altered our
chemical usage - and hence the
environment of the 1960 -
there will be food and fiber,
health and happiness then?
Sentence Reviews
GIFFOr PINCHOT, by Har-
old Pinkett. Univ. ni. Press.
1970. 167 pp, illus. $6.95.
Another account of the life
and times of the father of A-
merican forestry, with a fewnew
anecdotes and a few small er-
rors, by a federal archivist as
knowledgable as anyone could
be of his subject. Recommend-
ed for community and reference
libraries. —
TERRACIDE, by Ron M. Lin-
ton. Little, Brown and Co. 1970,
376 pp. $7.95.
The Chairman of HEW's task
force on Environmental Health
wrote "the ruin of the earth "for
Americans (without an attack on
foresters and forestry) concern-
ed about breathing, smelling,
hearing, eating, drinking, the dis-
position of things, and awakening
to the challenge to choose bet-
ween the "confused society and
the clean one." Recommended for
school and community libraries.
Leaders
Honored
NACOGDOCHES - Two long-
time leaders in the forestry in-
dustry in Texas have been honor-
ed by the school of forestry at
Stephen F. Austin State Univer-
sity.
Dr. Laurence C. Walker, dean
of the SFA school of forestry
said the library and seminar
room in the new forestry class-
room building have been named
in memory of the late W. Good-
rich Jones of Temple and Lacy
H. Hunt of Nacogdoches.
Jones, prior to his death, earn-
ed recognition as the "father of
forestry" in Texas. He was the
leader in the establishment of the
Texas Forest Service in 1915
and the creation of the Texas
Forestry Association in 1914.
His son, Luther Jones of Col-
lege Station and his daughter,
Miss Doris Goodrich Jones of
Temple, have been active sup-
porters of the professional for-
estry program at SFA University
for many years.
Hunt, Nacogdoches lumber-
man, also was a longtime sup-
porter of the SFA forestry pro-
gram until his death. For many
years, he annually awarded scho-
larships to forestry students at
SFA school of forestry student
council as a memorial to Hunt.
The new two -story forestry
classroom building was opened
this fall at SFAUniversity.
From the
Mailbag
Dear Ed:
I have your recent letter - I
wanted to write to you and tell
you what an outstanding job I
think you did during the election
for Constitutional Amendment
Number 3 in Texas.
I hope you will continue your
efforts.
Thank you for keeping us in-
formed.
William K. Condrell
Washington, D. C.
Dear Mr. Wagoner:
I am sure you have heard from
several of our marketing division
personnel regarding your con-
tribution to the State Fair but
I want to add my personal thanks.
The assistance which you and
your organization gave was sing -
ely the most important in terms of
making it possible for us to ren-
ovate the old agricultural build-
ing into the "Texas Food & Fiber
Pavilion."
I hope that we can continue to
work very closely together in
marketing your products and in
creating the best image for your
industry. Certainly, it is not dif-
ficult to promote the fine pro-
ducts such as the ones you pre-
sented to us for the State Fair.
We are proud to boast the rela-
tively new plywood industry along
with many other new forestry
products and the continued pro-
duction of quality pine lumber.
We intend to do this.
Thanks again for your support
and be assured I am ready to
assist you whenever possible.
John C. White
Commissioner of Agriculture
texas forestry
The Voice of Forestry in Texas
1914 - Observing 57 Years of
Continuous Service to Texas
and Texans - 1971
Printed in Texas on paper made
in Texas from pine trees grown
in Tex
Published monthly by the
Texas Forestry Association
P. O. Box 1032
Lufkin, Texas 75901
Entered as second class matter
at the Post Office at Lufkin,
Texas, under authority of per-
mit granted Novemb 10, 19
PRESIDENT
W. W. RABORN
Orange
PRESIDENT -ELECT
NOLAN ATCHLEY
Livingston
VICE PRESIDENT
J. B. WEBSTER
Houston
PAST PRESIDENT
O. R. CRAWFORD
Jasper
PRESIDENT EMERITUS
E. O. SIECKE
Galveston
EXECUTIVE VICE PRESIDENT
AND EDITOR
E. R. WAGONER
P. O. Box 1032
Lufkin
ASSOCIATE EDITOR
BARBARA BURKE SMITH
Lufkin
Newspapers and other publica-
tions are invited to publish with
or without credit, any material
appearing in the publicati
Membership in the Texas For-
estry Association is open to all
who wish to support its forest
conservation objectives. Indivi-
dual memberships range from $5
to $50; corporate memberships
are adjustable to the industry's
direct or indirect dependence
up on our forest resources.
S rate: $1.00 per year
ADVERTISING
Advertising accepted at $1.75
net per column inch. Copy
should be mailed to P.O. Box
1032, Lufkin, Texas 75901, by
the 15th of the month preceding
the issue in which the ad is
to appear.
TEXAS FORESTRY PAGE FIVE
PAGE SIX TEXAS FORESTRY
Small Timberland Owners Given Pointers
(Continued From Page One)
First, list the assets; (1) Land,
(2) Fence, (3) Timber. Next, de-
termine the fair market value of
each item.
In this example, the land is
worth $100 per acre or$100,000.
The fence is worth a total of
$1,000. The merchantable tim-
ber is worth $50 per thousand
and $5.00 per cord or a total
of $7,500. The young growth is
worth $15.00 per acre or $1500.
The value then would be listed
to correspond with the assets.
In this case, the value equals
the purchase price and the allo-
cation would be the same. The
timber account would show each
item with its allocated value.
Normally, the cost does not
exactly equal the cumulative val-
ue of the various assets as shown
in the example. Under those cir-
cumstances, the total cost is di-
vided by the total value and a
percentage derived. This percen-
tage is then multiplied by the
value figure for each asset to
determine its cost.
The cost thus determined be-
comes your basis for gain or
loss on disposition of any of the
assets.
There are a multitude of pos-
sible variations on allocation of
cost and for a particular prob-
lem perhaps we will have time
later to cover some.
Ownership Costs
The tax treatment of costs in-
curred during the ownership of a
property is a concern to all of
us.
They can generally be classi-
fied into three types: (1) Addi-
tion to capital, such as the pur-
chase of land and timber, (2)
Deductions from gross income,
such as operating expenses, and
(3) Deductions from timber sale
proceeds, such as expense of
sale.
Certain expenditures which
are ordinarily deductible, such
as taxes, interest on indebted-
ness, and other carrying charg-
es may, at the • election of the
taxpayer, be capitalized,
Capital Expenditures
Just what is a capital expen-
diture?
You may incur capital expendi-
tures for either the acquisition
of property or property rights,
or permanent improvements that
increase the value of property
you already own.
Examples of property acqui-
sition are purchases of timber
and of equipment having a life of
more than one year.
Examples of permanent im-
provements are expenditures for
bridges, roads and firebreaks,
for tree planting and seeding and
for major repairs to equipment
that prolongs its useful life.
Capital expenditures may not
be deducted from gross income
on the tax return year by year
as the costs are incurred, but
must be capitalized. That is to
say, they must be set up on the
taxpayer's books through charges
to one or more capital accounts.
Whether for acquisition orim-
provement, capital expenditures,
are of three broad types; those
relating to the land account, to
the timber account, and to the
equipment account. The recovery
of cost from these accounts is
called return of capital.
Operating Expenses
You may deduct from gross
income the ordinary and neces-
sary expenses paid or incurred
during the year in carrying on a
trade or business. Also, an in-
dividual taxpayer may deduct or-
dinary and necessary expenses
for the management, conserva-
tion or maintenance of property
held for the production of income.
Operating expenses include ex-
penditures for tools of short life
(usually less than one year) or of
small cost, such as axes, hand-
saws, sledges and wedges. You
may also deduct expenses for op-
eration and maintenance, includ-
ing incidental repairs to trucks,
tractors and other mechanical
equipment used in your forest
operations.
Deductible also are amounts
paid for hired labor, fees for
consulting foresters, lawyers and
accountants: Travel expenses
while away from home on busi-
ness, rentals or other payments
for land, equipment, or other
property in which you have no
equity are also deductible.
If any of these expenses I
have just mentioned are directly
Free your money trees for proft!
rAvomodos y t you can sell at a profit And your
y of young money trees, suppressed
and retarded byy worthless vegetation, earning you
nothing. Use the,ree Infector to safely kill
the worthless stems and release your money trees
for profit growing The.nulNtTree Inject"
dispenses metered doses of low cost undiluted amine
2,4-D herbicide, harmless to you, to wildlife or soil.
It's good business to free your money trees for -
profit with the .rte Tree Injector.
Are you ready for business? STOCK NO.
Forestry Suppliers, Iao. 3.9 Injectors - 539.95 M.
on one *Npnwna.
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ssfppi 39204 10 plus Injectors- =36.45 ea.
pn one ,hipnenp
Push cJThroe olect
A haMN
ghs w ehe. to
n►.�to. hwbicnto areRernwtrot ` 40W ' \ ` 7 to oprethno
brt�
The J M�G6M Tree Injector is any to use ... try it!
related to a timberland pur-
chase, reforestation project or
timber sale however, they would
be capital expenditures.
Payments under a lease for
land held to grow timber are
considered as capital expendi-
tures against the present orfu-
ture timber clop and may not
be expensed.
All costs associated with re-
forestation, be they bulldozing
to clear the land, controlled burn-
ing to prepare the site, spraying
with chemicals to kill brush, or
girdling and poisoning several
years after planting orseedingto
kill overtopping hardwoods, are
capital expenditures.
Carrying Charges
A type of expense with which
we are all familiar, taxes, also
interest and certain other ex-
penses fall into a category we
call carrying charges. These
generally recur annually.
Normally these expenses are
deducted annually, but they may
be capitalized at your election,
Not all taxes fall into this cate-
gory.
Annual property taxes do.
Ones that do not are federal
income, estate and gift and sev-
erance or yield taxes. Interest
expense on a property mortgage
or note falls into this carrying
charge category.
Other carrying charges in-
clude premiums for insuring
standing timber against loss by
fire or other hazard, contribu-
tions to fire - protection organi-
zations, and expenditures for la-
bor, materials and tools to be
used in the maintenance of fire
lanes, or in actual fire suppres-
sion.
Protection costs incurred for
controlling outbreaks of forest
insects or disease may be treat-
ed similarly.
FORESTERS
AGREE
All overt he nation, foresters agree
—you can Depend On Ben! I've
got more than 6,000 useful items
listed in the more than 400 pages
of my catalog.
Write for your caPy today — you'll
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THE ,
"N
MEADOWS
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AnANTA, 0E0e61A 30"
Under ordinary circumstanc-
es, the small timber owner not
engaged in current timber oper-
ations would not take advantage
of the election to capitalize car-
rying charges, but would deduct
these items each year in com-
puting his tax liability.
However, an individual who ac-
quires a stand of growing tim-
ber with the thought of cutting
it in some future year, and who
uses the standard deduction or
the tax tables in computing his
taxes instead of itemizing his
deductions, would want to capi-
talize these expenses because
otherwise they would be wasted.
Expense of Sale
The third type of expense which
I mentioned earlier is that which
is directly related to a sale of
timber.
Advertising, and other costs
such as timber cruising, mark-
ing and scaling, which are re-
lated to a specific sale of tim-
ber, are treated as expense of
sale.
Such items would also include
fees of consulting foresters, ap-
praisers, selling agents, lawy-
ers or other advisers for work
directly related to a sale of
timber.
If the transaction is reported
as ordinary income on a busi-
ness schedule, such as Schedule
C or F. the expense of sale
would also be deducted on that
schedule.
In a transaction reported on
Schedule D, either as a sale or
exchange of a capital asset, or a
disposal with an economic in-
terest retained, selling expens-
es are treated as an offset to
the selling price and are deduct-
ed on Schedule D.
Timber Sales
The difference between the
amount received and your cost
is the gain or loss on a sale of
timber. For most small timber-
land owners, the gain or loss is
capital gain or loss.
To compute the correct
amount, some basic information
is necessary. We covered a por-
tion of this in the earlier dis-
cussion on allocation of cost. That
data shown in the detailed timber
account may require adjust-
ments.
If the timber has been held
long, a growth adjustment is pro-
bably in order. Also, capital ex-
penditures may have changed
your cost.
By dividing your adjusted cost
by an adjusted timber estimate,
a new unit cost is determined.
This unit cost times the number
of units sold will give you your
cost of the timber sold.
Detailed examples of timber
accounts and adjustments to them
are shown in the booklet, "The
Timber Owner and His Federal
Income Tax," which is avail-
able to you. Timber sale samples
are also shown in the booklet.
Timber sales are normally on
Schedule D of your tax return
as the sale of a capital asset.
To get the desired capital gain
treatment, you must have held
the property more than six
months.
Record Keeping Requirements
You are required by law to
keep records that will enable
you to prepare a complete and
accurate income tax return. The
law does not require any special
form of records.
However, all receipts, can-
celled checks, and other evidence
to prove amounts claimed as de-
ductions must be retained as part
of your records.
You must keep records for as
long as their content may be
material in administering any in-
ternal revenue law.
Records that support an item
of income or a deduction appear-
ing on a return must be kept
until the statute of limitations
for the return expires. Uusually
this is three years from the date
the return was due or filed.
Records of transactions relat-
ing to the basis of property
should be kept for as long as
they are material in determining
the basis of the original or re-
placement property.
Copies of tax returns that you
have filed can help you in pre-
paring future income tax re-
turns.
The income tax regulations do
not call for any specific type of
timber account, but they do re-
quire that you keep accurate and
complete records in order that
depletion allowances and other
amounts shown on your return in
the computation of gain or loss
on timber transactions may be
supported.
Taxpayers claiming a deple-
tion allowance or operating, buy-
ing, leasing or selling timber-
lands may be required to file a
Form T (timber), a forest in-
dustries schedule. Part F of this
schedule illustrates the timber
depletion calculation in detail and
it may help you determine what
accounts you set up to record
your timber transactions.
As a matter of practice, Form
T is not required of owners of
relatively small non - industrial
forests. Their timber transac-
tions normally are not frequent
and do not ordinarily involve
large amounts.
Therefore, these taxpayers do
not have to keep as complex or
detailed records as does an in-
dustrial forest owner or one who
actively buys and sells timber.
In summary then, I would say
that you must be able to support
all current deductions for oper-
ation expenses until the statute
of limitations expires, and that
you must keep permanent rec-
ords on all your capital accounts.
SMALL BUT BIG
Small ownerships prevail in
the forest land ownership pat-
tern in East Texas. There are
approximately 150,000 owners
of commercial forest land in
East Texas.
WE SPECIALIZE IN
HEAVY
EQUIPMENT LOANS!
For complete banking take the
time to visit with "THE BANKERS"
FBT
FIRST MANN & TRVST
Member F.D.I.C.
Lufkin, Texas
ALLOCATION OF COST
One hundred acre
tract of timber land witha stand of merchant-
able timber and
a fence around the property.
Consideration of
$200 per acre or $20,000.
ITEM
VALUE
FACTOR
ALLOCATION
Example #1
Land
$10,000
1
$10,000
Fence
1,000
1
1,000
Timber
9,000
1
9,000
TOTAL
$20,000
$20,000
Example #2
Land
$ 6,000
1.25
$ 7,500
Fence
1,000
1.25
1,250
Timber
9,000
1.25
11,250
TOTAL
$16,000
$20,000
Example #3
Land
$15,000
.80
$12,000
Fence
1,000
.80
800
Timber
9,000
.80
7,200
TOTAL
$25,000
$20,000
TIMBER ACCOUNT UNITS
RATE
VALUE
Pine Sawtimber
100,000'
$50
$5,000
Pine Pulpwood
500 eds
$ 5
2,500
Young Growth
100 acs
$15
1,500
TOTAL
$9,000
Capital expenditures may not
be deducted from gross income
on the tax return year by year
as the costs are incurred, but
must be capitalized. That is to
say, they must be set up on the
taxpayer's books through charges
to one or more capital accounts.
Whether for acquisition orim-
provement, capital expenditures,
are of three broad types; those
relating to the land account, to
the timber account, and to the
equipment account. The recovery
of cost from these accounts is
called return of capital.
Operating Expenses
You may deduct from gross
income the ordinary and neces-
sary expenses paid or incurred
during the year in carrying on a
trade or business. Also, an in-
dividual taxpayer may deduct or-
dinary and necessary expenses
for the management, conserva-
tion or maintenance of property
held for the production of income.
Operating expenses include ex-
penditures for tools of short life
(usually less than one year) or of
small cost, such as axes, hand-
saws, sledges and wedges. You
may also deduct expenses for op-
eration and maintenance, includ-
ing incidental repairs to trucks,
tractors and other mechanical
equipment used in your forest
operations.
Deductible also are amounts
paid for hired labor, fees for
consulting foresters, lawyers and
accountants: Travel expenses
while away from home on busi-
ness, rentals or other payments
for land, equipment, or other
property in which you have no
equity are also deductible.
If any of these expenses I
have just mentioned are directly
Free your money trees for proft!
rAvomodos y t you can sell at a profit And your
y of young money trees, suppressed
and retarded byy worthless vegetation, earning you
nothing. Use the,ree Infector to safely kill
the worthless stems and release your money trees
for profit growing The.nulNtTree Inject"
dispenses metered doses of low cost undiluted amine
2,4-D herbicide, harmless to you, to wildlife or soil.
It's good business to free your money trees for -
profit with the .rte Tree Injector.
Are you ready for business? STOCK NO.
Forestry Suppliers, Iao. 3.9 Injectors - 539.95 M.
on one *Npnwna.
P. O. Box 8397 /Jm*son, Missf
ssfppi 39204 10 plus Injectors- =36.45 ea.
pn one ,hipnenp
Push cJThroe olect
A haMN
ghs w ehe. to
n►.�to. hwbicnto areRernwtrot ` 40W ' \ ` 7 to oprethno
brt�
The J M�G6M Tree Injector is any to use ... try it!
related to a timberland pur-
chase, reforestation project or
timber sale however, they would
be capital expenditures.
Payments under a lease for
land held to grow timber are
considered as capital expendi-
tures against the present orfu-
ture timber clop and may not
be expensed.
All costs associated with re-
forestation, be they bulldozing
to clear the land, controlled burn-
ing to prepare the site, spraying
with chemicals to kill brush, or
girdling and poisoning several
years after planting orseedingto
kill overtopping hardwoods, are
capital expenditures.
Carrying Charges
A type of expense with which
we are all familiar, taxes, also
interest and certain other ex-
penses fall into a category we
call carrying charges. These
generally recur annually.
Normally these expenses are
deducted annually, but they may
be capitalized at your election,
Not all taxes fall into this cate-
gory.
Annual property taxes do.
Ones that do not are federal
income, estate and gift and sev-
erance or yield taxes. Interest
expense on a property mortgage
or note falls into this carrying
charge category.
Other carrying charges in-
clude premiums for insuring
standing timber against loss by
fire or other hazard, contribu-
tions to fire - protection organi-
zations, and expenditures for la-
bor, materials and tools to be
used in the maintenance of fire
lanes, or in actual fire suppres-
sion.
Protection costs incurred for
controlling outbreaks of forest
insects or disease may be treat-
ed similarly.
FORESTERS
AGREE
All overt he nation, foresters agree
—you can Depend On Ben! I've
got more than 6,000 useful items
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Under ordinary circumstanc-
es, the small timber owner not
engaged in current timber oper-
ations would not take advantage
of the election to capitalize car-
rying charges, but would deduct
these items each year in com-
puting his tax liability.
However, an individual who ac-
quires a stand of growing tim-
ber with the thought of cutting
it in some future year, and who
uses the standard deduction or
the tax tables in computing his
taxes instead of itemizing his
deductions, would want to capi-
talize these expenses because
otherwise they would be wasted.
Expense of Sale
The third type of expense which
I mentioned earlier is that which
is directly related to a sale of
timber.
Advertising, and other costs
such as timber cruising, mark-
ing and scaling, which are re-
lated to a specific sale of tim-
ber, are treated as expense of
sale.
Such items would also include
fees of consulting foresters, ap-
praisers, selling agents, lawy-
ers or other advisers for work
directly related to a sale of
timber.
If the transaction is reported
as ordinary income on a busi-
ness schedule, such as Schedule
C or F. the expense of sale
would also be deducted on that
schedule.
In a transaction reported on
Schedule D, either as a sale or
exchange of a capital asset, or a
disposal with an economic in-
terest retained, selling expens-
es are treated as an offset to
the selling price and are deduct-
ed on Schedule D.
Timber Sales
The difference between the
amount received and your cost
is the gain or loss on a sale of
timber. For most small timber-
land owners, the gain or loss is
capital gain or loss.
To compute the correct
amount, some basic information
is necessary. We covered a por-
tion of this in the earlier dis-
cussion on allocation of cost. That
data shown in the detailed timber
account may require adjust-
ments.
If the timber has been held
long, a growth adjustment is pro-
bably in order. Also, capital ex-
penditures may have changed
your cost.
By dividing your adjusted cost
by an adjusted timber estimate,
a new unit cost is determined.
This unit cost times the number
of units sold will give you your
cost of the timber sold.
Detailed examples of timber
accounts and adjustments to them
are shown in the booklet, "The
Timber Owner and His Federal
Income Tax," which is avail-
able to you. Timber sale samples
are also shown in the booklet.
Timber sales are normally on
Schedule D of your tax return
as the sale of a capital asset.
To get the desired capital gain
treatment, you must have held
the property more than six
months.
Record Keeping Requirements
You are required by law to
keep records that will enable
you to prepare a complete and
accurate income tax return. The
law does not require any special
form of records.
However, all receipts, can-
celled checks, and other evidence
to prove amounts claimed as de-
ductions must be retained as part
of your records.
You must keep records for as
long as their content may be
material in administering any in-
ternal revenue law.
Records that support an item
of income or a deduction appear-
ing on a return must be kept
until the statute of limitations
for the return expires. Uusually
this is three years from the date
the return was due or filed.
Records of transactions relat-
ing to the basis of property
should be kept for as long as
they are material in determining
the basis of the original or re-
placement property.
Copies of tax returns that you
have filed can help you in pre-
paring future income tax re-
turns.
The income tax regulations do
not call for any specific type of
timber account, but they do re-
quire that you keep accurate and
complete records in order that
depletion allowances and other
amounts shown on your return in
the computation of gain or loss
on timber transactions may be
supported.
Taxpayers claiming a deple-
tion allowance or operating, buy-
ing, leasing or selling timber-
lands may be required to file a
Form T (timber), a forest in-
dustries schedule. Part F of this
schedule illustrates the timber
depletion calculation in detail and
it may help you determine what
accounts you set up to record
your timber transactions.
As a matter of practice, Form
T is not required of owners of
relatively small non - industrial
forests. Their timber transac-
tions normally are not frequent
and do not ordinarily involve
large amounts.
Therefore, these taxpayers do
not have to keep as complex or
detailed records as does an in-
dustrial forest owner or one who
actively buys and sells timber.
In summary then, I would say
that you must be able to support
all current deductions for oper-
ation expenses until the statute
of limitations expires, and that
you must keep permanent rec-
ords on all your capital accounts.
SMALL BUT BIG
Small ownerships prevail in
the forest land ownership pat-
tern in East Texas. There are
approximately 150,000 owners
of commercial forest land in
East Texas.
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For complete banking take the
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Lufkin, Texas
TEXAS FORESTRY
SHORELINE EROSION CONTROL — These East Texas Boy
Scouts are participating in a conservation program as part of
their scouting activities. In addition to fortifying shorelines
against eroding, scouts will be planting tree seedlings, col-
lecting litter, beautifying public and private areas and other
projects related to the scouts' 1971 conservation program —
SOAR (Save Our American Resources).
Industry Ready To
Supply Wood Needs
WASHINGTON, D. C. — The
American forest products indus-
try has the ability to supply soft-
wood lumber and plywood for ex-
panded home building and other
construction at reasonable price
levels indefinitely, a forest eco-
nomist has reported.
Dr. John Muench Jr., forest eco-
nomist for the National Forest
Products Association, expressed
the assurance to a meeting of the
Building Research Institute. The
Institute is an arm of the Build-
ing Research Advisory Board of
the National Academy of Sciences
— National Academy of Engineer-
ing. In his address, Dr. Muench
emphasized that wood is a re-
newable resource, not subject to
depletion or exhaustion if forests
are properly managed,
"Asking the lumber industry if
it can produce more lumber is
like asking the agricultural in-
dustry if it can produce more
corn. Given the necessary land
and opportunity, it can," he told
the building researchers.
Expanding population require-
ments for wood products easily
can be met, he said, provided the
federal government, owner of
some 60 per cent of the nation's
present softwood sawtimber in-
ventory is able to bring its forest
management levels up to those
of well operated private indus-
trial forests and make timber
available for harvest.
Muench pointed out that state
and local governments c o n t r o l
five per cent of the present stand-
ing softwood sawtimber inven-
tory; private industry has 17 per
cent, and 18 per cent is scat-
tered in other private holdings.
He expressed optimism aboutthe
ability of the industry to supply
wood products for construction;
However, he added, "I must
admit that my optimism is some-
what tempered by concern that
the public, the government and
those who specify wood products
will not appreciate the potential
bounty contained in our nation's
forest lands to a degree where
they will insist that this national,
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resource be developed to meet the
public needs."
Muench pointed out that based
on Forst Service figures, "if
all softwood sawtimber were to
stop growing, it would take 45
years to deplete the present in-
ventory at recent rates of remov-
al" He stressed that "a man-
aged forest does not stop grow-
ing, and .his is what sets forest
products apart from other con-
struction materials when we dis-
cuss future availability."
"Growth and harvest would be
in better balance if it were not
for the massive areas of old
growth timber in Federal own-
ership in the West. This old
growth timber is in large part
stagnant, putting on little if any
annual growth. It needs to be con-
verted to younger, more vigorous
stands if the growth- removal bal-
ance is to be improved," he de-
clared,
"I am a lot more confident
of the ability of the forest pro-
ducts industry to supply indus-
trial raw materials than I am
about the ability of other ma-
terials industries to do so for
as long a period — perpetuity,"
Muench reminded Institute
members that President Nixon's
Task Force on Softwood Lumber
and Plywood recommended a
yield increase from the National
Forests of seven billion board
feet annually by 1978. "This is
about a 60 per cent increase over
current levels on the National
Forests," he said, adding:
«The ability of the forest pro-
ducts industry to supply an ex-
pected increased demand for
building materials is largely in
the hands of the federal govern-
ment."
He said there has been afail-
ure to appreciate the renewabil-
ity of forest resources compared
with the depletability of other
materials used in construction.
I 'We have failed to take account
of the almost negligible energy
requirements for the production
of wood products compared to
those of other materials, with all
that implies about fossil fuel de-
pletion and pollution, , , we have
failed to consider the energy re-
quirements for the various con-
Scouts Do `Good Turn'
For Nation's Resources
The East Texas Area Council
of the Boy Scouts of America,
with headquarters in Tyler, is
kicking high its activities for
the coming year's renewable na-
tural resources programs. Ever
since the BSA was chartered by
an Act of Congress in 1910,
the movement has been conser-
vation oriented.
Its leaders have long recog-
nized that woodsmanship pre-
cedes an understanding of con-
servation of the environment.
Consequently, manoftoday'sfor-
esters first obtained their inter-
est in natural science as scout-
ing youngsters.
Now, in 1971, a year of chal-
lenge for the Scouts is called
the SOAR program. Standing for
Save Our American Resources,
it is the national conservation
good turn.
In East Texas, already, it has
resulted in commitment pledges
of unit leaders for Cub packs,
Scout troups, and Explorer posts
to participate wholeheartedly and
with specific objectives in the
national program.
Each district within the Coun-
cil has a volunteer chairman,
Many of these in the East Texas
area are foresters. Others are
soil specialists.
The district chairman is to
work with unit leaders through the
monthly roundtables in the organ-
ization of the program. By Jan-
uary, 1911, each district and each
unit will be in a position to an-
nounce to the public what it will
do as its part in improving the
environment in which we all live.
The SOAR emblem is descrip-
tive of tlhe effort. It is a circle,
as the earth is round. Within the
circle a °e forests of trees, the
sky and air, the mountains and
struction materials in use — an
insulated wood frame structure
requires about 20 per cent less
energy for year -round heating
and cooling than does a similar
masonry structure... we have not
accounted sufficiently for the dis-
posal or recycling of materials,
with all that implies for energy
consumption. Wood isbiodegrad-
able, When it has fulfilled its
use nature recycles it,"
PLEASE
BE
CAREFUL!
Only you
can prevent
; o61W forest fires!
their ranges, and water. Arrows
connect the units of the environ-
ment indicating the continuous
inter - relationships of these com-
ponents.
Other efforts not specifically
recognized in the emblem include
the litter problem, game pro-
duction, wildlife preservation and
recreation.
Following the January announ-
cement, kickoff activities to get
the job done will begin in Feb-
ruary, now designated "Scout
Month," The principal conserva-
tion project and others a unit
plans to do should be well un-
derway by April.
Units are also expectedtopar-
ticipate in National Anti- Litter
Day on June 5, camp conserva-
tion projects during the summer,
and beautification of home sites
throughout the year.
For those units which do all
expected, a flag streamer will
be provided. Individual Scouts
will be awarded patches to in-
dicate their contribution.
Some 16,000 young men and
their leaders will be participat-
ing in East Texas. A 30 -page
manual is available forguidance,
For Cubs, those lads from 8
to 10, building and setting out
bird boxes, planting trees in
yards and parks, visiting farms,
going fishing to learn the kinds
of fish, and making litter bags
for cars will be appropriate.
Scouts, those boys between 11
and 14, will be planting shrubs
for food and cover for wildlife.
They will also visit industrial
plants that use water and learn
the problems of those plants —
problems involving water supply
and economic and effluent dis-
charge.
PAGE SEVEN
They will also visit wood -us-
ing industries to learn the kinds
of wood used, where it comes
from, how it is processed, and
the relationship of the industry
to the economics of thecommun-
ity.
Some lads will make store win-
dow exhibits, emphasizing soil
as a source of all food and most
clothing. Others will study a com-
munity watershed or refuse dis-
posal system and ascertain its
problems.
The older young men, Explor-
er Scouts, above the age of 14,
will be giving talks to adult clubs
on environmental ecology and
conservation as well as providing
leadership for Scouts and Cubs
in their assignments.
A lot of organizations arepro-
viding assistance for the Scouts.
Eastman Kodak has developed
a slide talk, The Soil Conserva-
tion Service has a filmstrip and
the U. S. Forest Service has a
cooperative effort underway. The
glass container industry is pro-
viding information on re- cycling,
and the aluminum can people have
geared up to re -cycle cans, which
the Scouts and others will be pick-
ing up along the highways and
turning in for 1/2 cent each.
There is also a photo contest,
and the archeologists are busy
encouraging conservation of an-
cient edifaces. The Department of
Interior's Johnny Horizon, too,
is an important component in the
cleanup campaign for America.
Individuals within and without
the Scouting movement can obtain
additional information by writing
F. M. Arnold, Assistant Council
Executive for the SOAR program,
at its headquarters in Tyler, Tex-
as.
STOCKING BIRD FEEDER — Boy Scouts nationwide will par-
ticipate in a conservation program this year aimed at improving
the enviornment. The program — SOAR (Save Our American Re-
sources) will be kicked -off in February. Scouts such as these
will be building and stocking wildlife feeders, studying wild-
life and conducting many conservation projects.
Serving `Bea THOUSANDAIRE
Since Ora MULTI- THOUSANDAIRE
1934 c Saw 'Regularly at...
Angelina Truck and Tractor, Inc.
1613 S. first Lufkin
Truck & Tractor Dealer
i mAuthorized International Harvester
PAGE EIGHT TEXAS FORESTRY
Future Now Brighter
For `Doomed' Forests
Fifty years ago, the Southern
pine forests were generallybe-
lieved to be on the verge of
extinction.
But today, it is projectedthat
they will ultimately provide the
majority of the nation's wood
products in volume more than
twice as great as they are sup-
plying now.
There's quite a story to this
complete turnabout — including
a miracle of forestry which,
under current plans, will be
duplicated on a far largerscale
during the years ahead.
The gloomy outlook of a half
century ago was based on the
fact that, by 1920, the Southern
pine forests had been continu-
ously yielding huge amounts of
lumber and wood products for
more than three centuries.
In various parts of the South,
cutover lands were increasingly
evident. Many Southern lum-
bermen of that day heeded Hor-
ace Greeley's advice and went
West.
But then came the miracle.
Lumbermen who remained in
the South came to the conclu-
sion that the survival of their
industry required strong con-
servation measures. In cooper-
ation with state foresters and
conservationists, they develop-
ed programs of forest man-
agement, reforestation and fire
control destined to have far
reaching effect.
By the 1930s, a new man -
managed forest was well on its
way. But the 1960s, it reached
maturity. In all parts of the
South, once cutover lands had
been again restored to abun-
dance.
This great revival of the
Southern pine forests improved
the visual quality of the land-
scape while contributing to ma-
jor increases in the wildlife
population. It also stimulated
a wave of industrial growth.
From far arid wide, new for-
est industries came South dur-
ing the 19605 — a massive
influx involving the return of
some of those same companies
which had left the region 50
years before for fear of a tim-
ber famine.
In addition to those new enter-
prises, existing forest industry
expanded. By the end of the 1 60s
Southern forest industry had
nearly 50o,00D employees and
was producing a large share of
the nation's lumber, plywood
and pulpwood.
Most encouraging of all was
the discovery that wise forest
management could maintain the
rate of tree growth at a level
exceeding rising harvest re-
quirements — a "have your
cake and eat it, too" situation
in which both tree supply and
product output could increase
simultaneously.
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dozer, D4E Hyster Winch, cab, 24 volt start. A new addition to Mustang's yard. We rebuilt
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CAT #12 MOTOR GRADER, 70D700 SERIES. Equipped with 13:00 x 24 tires, scarifier, 12
volt gas start, power steering. The tandem and lean wheel we recently reconditioned to
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power shift, pedal steer, 5 roller frame and lumber forks. Another top quality Mustang
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CALL YOUR NEAREST
SALES REPRESENTATIVE
Jim Lindsay — 853 -2180 — Lufkin
Charles Hale — 295 -8791 — Huntsville
T. C. Morton — 756 -9208 -- Conroe
Vance McNeil — 892 -8412 — Beaumont
Harold Rabolais, Used Equipment Manager
7777 Washington Avenue
Houston, Texas
864 -4471
'2aterpillar, Cat and Traxcavator are Registered
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Despite sharp hikes in lum-
ber and plywood production, the
volume of Southern pine trees
In larger (sawtimber) diamet-
ers has improved by nearly
one -third during the last 20
years which, of course, is a
wholesome condition from both
environmental a n d economic
standpoints.
A recent two -year survey
of the South's timber resourc-
es, sponsored by several indus-
try and landowner associations,
disclosed that with 198 million
acres of forestland, the South
has potential tree growth not en-
joyed by other regions of the
United States.
The miracles of forestry of
the past 50 years have been
recorded almost exclusively on
40 million acres owned by in-
dustry and 17 million in public
ownership. If the experience
can be duplicated on 141 million
acres of forestland belonging
to a million non - industrial pri-
vate owners, timber growth in
the South can be at least doubled
In the years ahead to meet the
nation's growing environmental
and economic needs.
To do so is the objective of
the most far reaching program
of timber resource development
in history now in progress under
joint sponsorship of Southern
Forest Products, Forest Farm-
ers, Southern Hardwood Lum-
ber Manufacturers and Ameri-
can Plywood Associations and
Southern Forest Insitute.
The idea is to help the non-
industrial private owners im-
prove the quantity and quality
of their trees to the same ex-
tent already achieved on indus-
trial holdings.
Among other things, this pro-
gram — being advanced by the
Southern Forest Products As-
sociation under the title "Trees
Forever" — can be a useful
asset in helping the nation rea-
lize its goal of adequate housing
for all Americans by the end of
the 1970s.
Most homes and apartments
in the United States require
lumber for structural support,
and President Nixon has called
for substantial increase in soft-
wood timber supply to meet im-
pending housing needs. The Na-
tional Association of Home
Builders predicts that 60 per-
cent more housing units will
have to be built during the 9 70s
than in the 1 60s.
President Nixon wants tim-
ber and lumber supply increas-
ed in a way that will preserve
and enhance environmental val-
ues. This requires further in-
tensification of forestry prac-
tices so that tree growth will
continue to exceed all f o r e -
s e e a b l e harvesting require-
ments.
Having the benefit of past
experience with forestry mir-
acles along with virtually un-
limited room for timber growth,
the South is an excellent posi-
tion to do that simply by dup-
licating the example of indus-
try on non - industrial private
holdings.
Major increases inopportun-
ity for outdoor recreation, fur-
ther improvement inavailabili-
ty and suitability of forests for
wildlife habitat, air purifica-
tion, soil and water conserva-
tion are targets of the "Trees
Forever" program as well as
the assurance of adequate tim-
ber supply for future material
needs.
Why Not Grow A
Noise Barricade?
U city sounds are getting you
down, perhaps you need to plant
some trees.
Men have used trees as sound
barriers to cut down on noise pol-
lution since ancient times. Now
forestry researchers are finding
some scientific validity in this
common sense practice. Experi-
mental work on sound propaga-
tion by Forest Service research-
er Raymond E. Leonard at Syra-
cuse, N. Y., has shown that shrubs
and trees — if used correctly
— can play a major part in reduc-
ing noise.
Plant a tree, or plant two or
three, and you will have produc-
ed a natural sound barrier. On the
horizon may be an end to your
migraines and frustrations, and
the beginning of a more pleasant
life. .
Each 100 -foot width of trees
can absorb about 6 to 8 decibels
of sound intensity. This may seem
like a small amount in light of
the fact that normal speech gen-
erates about 48 decibels; a busy
intercity highway, 72 to 78; a
barking dog, 92; a beeping horn,
110; a screaming jet, more than
140. But a reduction, no matter
how slight, is welcome since it
can make the difference between
a livable environment and one
that is extremely unpleasant. We
should also bear in mind that this
100 -foot screen has a multiplier
effect. One hundred and fifty will
decrease the noise level to 9 to
12 decibels, 200 feet of trees will
lower the noise level by 12 to 16
decibels, and so on.
According to researchers,
sound levels above 50 decibels
may be irritable to human beings;
sound levels in excess of 130
decibels may become harmful.
How can trees be used "cor-
rectly" to give their maximum
benefit as sound barriers?
Many factors contribute to
sound control by trees. These
factors include size, position, and
density of trees, as well as cer-
tain meteorological conditions —
like wind, moisture, temperature
and terrain.
Along highways, dense plant-
ings of large trees will effective-
ly lower the level of noise, par-
ticularly if the sound source is
lower than the receiver. This
means that trees planted uphill
of a highway will give maximum
sound control.
Trees will also effectively mo-
derate wind and temperature and
in so doing, reduce any influence
that these two factors might have
on the transmission of sound.
Often the human senses of
sight and sound can reinforce one
another, so that seeing what
causes a noisy discomfort will
tend to aggravate it. On the con-
trary, if the source of sound is
made invisible, the sound will
not seem so harsh to the ear.
As another approach to noise
abatement, therefore, trees can
be planted to screen or camou-
flage noisy neighbors. And this
will have a marked effect on low-
ering unwanted sound.
Consideration should be given
to the location of the source of
sound. In the case of aircraft,
a belt of trees around the airport
will reduce sound levels when the
aircraft are on the ground. How-
ever, once they are airborne
the sound has only to penetrate
through the thin forest canopy.
Still, if it's city noises that
are getting you down, perhaps
you should remove your ear-
muffs, take away the blinders,
and plant yourself some trees.
Trees are one of nature's way
to make your environment more
pleasant.
— From Northeastern Forest
Experimental Station.
accident
or arson;
any wildfire
is illegal.