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If it is true that annual income of about $1,000 a year per capita is all that can be expected from those in a sustained yield operation and that this amount or more could be obtained from orderly liquidation, or the receipt of an orderly liquidation value, a trustee-operated forestry program would offer no advantage. Approximately half of the Klamaths live on the reservation and the continuation of the forest program as a national forest would insure that the esthetic nature of this rural area would be the same while at the same time the people would be able to shift their capital to better revenue-producing investments or annuities.

The emphasis of such private trust arrangements as would be necessary could then be to equip these people to manage their own financial affairs. For the others that need no such assistance, these also would be an improvement in financial position.

Federal purchase may be the only workable alternative.—Were there reason to assume that the value of the reservation will climb to a point when ultimately annual income would exceed what could be obtained by immediate liquidation and alternate investment of proceeds, liquidation of the forest would be financially unwise. This assumption cannot be made.

The growth of timber on this reservation will not exceed 3 percent in the foreseeable future. If money can be invested at 4, 5, or 6 percent elsewhere, it is not profitable to retain it in a 2 percent investment. Were this reservation located in an area where timber growth rates of 6 to 8 percent can be obtained, the situation would be different. At present the only foreseeable gain, and this applies equally to higher growth areas, is that there will continue to be an advance in stumpage values.

The very factors that diminish the value of this property for an Indianoperated sustained yield program decreases the likelihood that there will be a similar private investment. Under such a set of condtions the major justification for private sustained yield is that an alternate supply of raw material is maintained or that there is a speculative gain possible. Current liquidation values can hardly be paid under these criteria. Therefore, if sustained yield and all of the other conservation goals are still

ng to be met while at the same time assuring the Klamath people of the proper payment for this property, the best alternative may be the purchase of the reservation by the Government.

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COMMITTEE ON
INTERIOR AND INSULAR AFFAIRS

UNITED STATES SENATE

EIGHTY-FIFTH CONGRESS

SECOND SESSION

ON

S. 2047 and S. 3051

BILLS AMENDING THE KLAMATH TERMINATION ACT OF
1954 WITH RESPECT TO DISPOSITION OF TRIBAL

PROPERTY AND FOR OTHER PURPOSES

FEBRUARY 3, 4, 5, 6, 7, AND 11, 1958

PART 2

Printed for the use of the Committee on Interior and Insular Affairs

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COMMITTEE ON INTERIOR AND INSULAR AFFAIRS

JAMES E. MURRAY, Montana, Chairman CLINTON P. ANDERSON, New Mexico GEORGE W. MALONE, Nevada HENRY M. JACKSON, Washington

ARTHUR V. WATKINS, Utah JOSEPH C. O'MAHONEY, Wyoming

HENRY DWORSHAK, Idaho ALAN BIBLE, Nevada

THOMAS H. KUCHEL, California RICHARD L. NEUBERGER, Oregon

FRANK A. BARRETT, Wyoming JOHN A. CARROLL, Colorado

BARRY GOLDWATER, Arizona FRANK CHURCH, Idaho

GORDON ALLOTT, Colorado
RICHARD L. CALLAGHAN, Chief Clerk

STEWART FRENCH, Chief Counsel
N. D. McSHERRY, Assistant Chief Clerk

SUBCOMMITTEE ON INDIAN AFFAIRS

RICHARD L. NEUBERGER, Oregon, Chairman
CLINTON P. ANDERSON, New Mexico ARTHUR V. WATKINS, Utah
FRANK CHURCH, Idaho

BARRY GOLDWATER, Arizona
JAMES GAMBLE, Professional Staf Member
WILLIAM H. COBURN, Special Counsel
ROBERT WOLF, Forestry Consultant

II

CONTENTS

Page 314

S. 3051...
Reports of agencies:

Bureau of the Budget-
Comptroller General of the United States.
Department of Agriculture
Department of the Interior.

310, 316. 309. 308

STATEMENTS

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Bowles, Rollin, chairman, legislative committee, Oregon division, Izaak
Walton League of America, Weatherly Building, Portland, Oreg ---

417 Chilson, 0. Hatfield, Under Secretary of the Interior, accompanied by John F. Shanklin, staff assistant, Office of the Secretary; H. Rex Lee, Associate Commissioner, Bureau of Indian Affairs; Lewis Sigler, Solicitor's Office; and Ted Stevens, legislative counsel

319 Crawford, Wade and Ida.

494 Epps, David C., Linn County, Oreg

394 Hartung, A. F.., president, International Woodworkers of America

556 Jackson, Boyd J.

456 Kirk, Jesse L.

455 Kirk, Seldon E.

459 Kirk, Seldon, chairman, Klamath General Council; Jesse L. Kirk, Sr., vice

chairman, Klamath General Council and Klamath Executive Committee; Dibbon Cook, secretary, Klamath General Council, and acting secretary, Klamath Exec ve Council; and Boyd J. Jackson, treasurer, Klamath Tribe (presented by Mr. Cook)

452 Klamath County Chamber of Commerce.

552 Management Specialists (supplemental)

473 Mathis, C. Robert, attorney, of Davies, Richberg, Tydings, Landa, and Duff, Washington, D. C.

526 Mazamas, 909 Northwest 19th Avenue, Portland, Oreg

554 Morse, Hon. Wayne, a United States Senator from the State of Oregon.- 403 Netzorg, Leonard B., representative of the Western Forest Industries Association, Portland, Oreg-

429 Penfold, J. W., conservation director, Isaak Walton League, 322 Bond Building, Washington, D. C.

415 Peterson, E. L., Assistant Secretary, Department of Agriculture, accom

panied by Edward C. Crafts, Assistant Chief, Forest Service; and E. F. Mynatt, Assistant General Counsel, Department of Agriculture

372 Quiring, State Senator Leander, chairman, Oregon Legislative Interim Committee on Indian Affairs

388 Robbins, Hiram R., member, Klamath Tribe of Indians

572 Sigler, Lewis A., Solicitor's Office, Department of the Interior

397 Smith, Spencer M., Jr., executive secretary of the Citizens' Committee on Natural Resources

421 Ullman, Hon. Al, a Representative in Congress from the State of Oregon. 546 Watters, T. B., chairman, Management Specialists, Klamath Falls, Oreg. (presented by Earle Wilcox).

441 Wilcox, Earle Ř., forester, Management Specialists, Klamath Falls, Oreg - 440 Wilkinson, Glen A,, of Wilkinson, Cragun & Barker, Washington, D. Č., counsel for the Klamath Tribe..

450, 463, 479 LETTERS AND TELEGRAMS Anderson, Sam, Post Office Box 787, Tulelake, Calif., president, Tulelake Irrigation District: Letter, dated January 27, 1958, to Senator Neuberger..

564 Letter, dated January 27, 1958, to Under Secretary Chilson.-

563 Berg, Philip M., Lane County School District No. 52, Eugene, Oreg.: Letter, dated February 11, 1958, to Senator Newberger..

587

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