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 going 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. INTERIOR AND INSULAR AFFAIRS 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 98089 FEBRUARY 3, 4, 5, 6, 7, AND 11, 1958 PART 2 Printed for the use of the Committee on Interior and Insular Affairs UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1958 Bowles, Rollin, chairman, legislative committee, Oregon division, Izaak Crawford, Wade and Ida Epps, David C., Linn County, Oreg.. Hartung, A. F., president, International Woodworkers of America_ Kirk, Jesse L. Kirk, Seldon E. Kirk, Seldon, chairman, Klamath General Council; Jesse L. Kirk, Sr., vice Mathis, C. Robert, attorney, of Davies, Richberg, Tydings, Landa, and 417 319 494 394 556 456 455 459 452 552 473 526 Mazamas, 909 Northwest 19th Avenue, Portland, Oreg.. 554 Morse, Hon. Wayne, a United States Senator from the State of Oregon.. 403 429 Penfold, J. W., conservation director, Isaak Walton League, 322 Bond 415 Peterson, E. L., Assistant Secretary, Department of Agriculture, accom- Robbins, Hiram R., member, Klamath Tribe of Indians__ Smith, Spencer M., Jr., executive secretary of the Citizens' Committee on Ullman, Hon. Al, a Representative in Congress from the State of Oregon. Wilcox, Earle R., forester, Management Specialists, Klamath Falls, Oreg Wilkinson, Glen A,, of Wilkinson, Cragun & Barker, Washington, D. Č., counsel for the Klamath Tribe.. Anderson, Sam, Post Office Box 787, Tulelake, Calif., president, Tulelake Letter, dated January 27, 1958, to Senator Neuberger. 564 563 587 |