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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.
UNITED STATES SENATE
S. 2047 and S. 3051
BILLS AMENDING THE KLAMATH TERMINATION ACT OF
PROPERTY AND FOR OTHER PURPOSES
FEBRUARY 3, 4, 5, 6, 7, AND 11, 1958
Printed for the use of the Committee on Interior and Insular Affairs
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
STEWART FRENCH, Chief Counsel
SUBCOMMITTEE ON INDIAN AFFAIRS
RICHARD L. NEUBERGER, Oregon, Chairman
BARRY GOLDWATER, Arizona
Bureau of the Budget-
310, 316. 309. 308
Bowles, Rollin, chairman, legislative committee, Oregon division, Izaak
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..