Heppner Working Circle Timber Situation Analyzed By Boyd L. Rasussen, Forester and Carl Ewing, Supervisor Umatilla National Forest So much for the privately owned timber. Now what about that in publiq ownership? Unfortunately there is not sufficient national for est timber .to supply all of these mills without depleting the nation al forest resources to a point where all of the ponderosa pine would be cut long before the second growth is ready to harvest. Even though national forest timber were to be used in such a manner, widespread shutdowns eventually would result long before the second crop be comes large enough to cut. Obvi ously most of the mills, by reason of this limited supply of timber, must be expected to go out of bus iness within the next decade and some soon as a result of the war having ended. Instead of throwing the national forest timber on the market with no thought of the future, the For est Service plans that it shall be cut on a sustained yield basis pro viding a continuous flow of pro ducts to assist in maintaining a per manent forest industry even though the volume will have to be at a average annual cut of old growth level far .below that of today's pro- duction from all ownerships. The timber will be no greater than can be maintained until the new growth trees are reasonably mature and large enough to produce sawlogs. Such a plan provides for the har vesting' of 9.5 million board feet of ponderosa pine and 1.9 million feet of minor species each year from notional forest land in the Heppner Working Circle To summarize the timber situa . tion in the Heppner Working Circle it is evident, unless production of lumber is sharply curtailed immed iately, that during the next ten year period a number of sawmills wjill close down entirely or be forced to proportion their cut to the limited private timber avail able. Within a very few years thereafter total lumber production from the Heppner Working Circle 11.4 million board foot sustained will of necessity be limited to the capacity of the national forest lands plus such remnants of private tim ber as remains or can be brought from outside. In this working circle, as in many others, the greatest single obstacle to the establishment of a perma nently ' sustained forest industry is the widely diversified ownership of the timber. Such situations encour age over-production and too rapid liquidation. Unless forwarned by previous experience elsewhere, bu sinessmen are 4apt to welcome the effect of boom conditions upon their communities and to underestimate or ignore the seriousness of the "bust" which so surely follows when the timber is gone. Under "such conditions when rapid liqui dation of private timber is in effect, large or long-term sales of national forest timber are not made. Instead and more, especially where the ow ner or owners of significant vol umes of private stumpage are will ing and financially able, an effort is made to negotiate cooperative agreements, whereby the rate of of private cutting is retarded rather than increased and the long-time stability of the industry insured to the dependent commodity by re serving thrifty young timber on the private land from the first cutting operations so that it will grow larg er for the next harvest. Here, where a fairly large volume of timber re mains uncut, such a cooperative sustained yield unit is still feasible. It should be remembered however that even now the allowable annu al cut of ponderosa pine timber in all ownerships is only 20.8 million feet, less than a third of the amount cut in 1944 and that every year ov-er-cutting continues, the volume of cut that can be sustained is corres pondingly reduced. The 1944 study indicates that if the present rate of cutting contin ues the private timber supply will Heppner Gazette Times, March 7, 1 9465 be approaching exhaustion in 13 years and it is expected that more and more pressure will be exerted to force additions! national forest limber on the market in order to keep the sawmills of Wheeler and Morrow counties cutting to capa city. Since the present mills require a great deal more timber each year than will be replaced by growth, that pressure must be withstood if the complete collapse of the local lumber industry is to be averted. It is confidently believed that for ward looking leaders will insist that the national forest timber be used for the longtime benefit of the people and that the plans of the Forest Service to handle the public timber on a sustained yield basis can be carried out LOST Bill fold containing Leave papers, identification card and rail road ticket. Finder please notify Albert Edwards ARM 3c, Lexing ton. 50p VOLUNTARY REMITTANCES ASKED IN RED CROSS DRIVE Mrs. Vernon Munkers, chairman of (he I cxir.r ton- district, is urging the people cf her community to send in their remittances for the Red Cross membership campaign, either to herself or to !rr aacisiant, I Mrs. Kennet'' 'M-.xaiL. Mrs. Munkers points out that it will save much time and much running around for the volunteer solicitors if contributors will mail the funds to the chairman or as sistant. Of course, if this is not done, the solicitors will call but vshe believes if the people , under stand the situation they will co-operate. Several have sent in their contributions, not even waiting for the drive to start. Swanson Continued from First Page of spun glass for insulation. The lockers are four tiers high, of wood construction with one-half inch metal cloth for partitions which al so allows ample circulation. "Tlie entire design of lockers and grocery furniture are Swanson's r'"" vcrk not patterned after I anything seen elsewhere. His de- : u 1 i ! cug.li 111 iiic luuaei j-uiu lias uevn to have a compartment that he could close and not lose over six degrees of temperature in a week's time. In other words :'n event the machinery should fail for any un forseen reason the temperature could not change more t'vin six de grees in a week's time. While it is almost impossible for the machin ery to fail for that length of time, it is well to have insulation enough to hold the temperature at a safe point. "The compressor is a 4x4 ammo nia type, while the meat cooling room will be of the cluster coil type. The locker room temperature is controlled by a McQuay cooling unit with fan-forced circulation. "The grocery department furni ture is unique in design. "Cot planned this furniture so that one vill be able to see over the entire room from any location in the room thus enabling the customer to lo cate purchases at a glance. The is land type storage was designed by "Cot" and certainly makes the gro cery room one to marvel at. "The vegetable storage space is of the very latest, being equipped with a cooling coil which is im mediately under the vegetables, thus insuring fresh and crisp vege tables at all times." Monday was moving day for us ers of the Swanson lockers, trans porting their supplies from the old plant ' to the new. Mr. Swanson stated that 130 users made the transfer on that day and others were busy Tuesday utilizing the new plant. Transfer of grocery stocks .will begin as soon as a few unfinished items of furniture an disposed of. The Pacific Telephone and Telegraph Company and Subsidiaries Southern California Telephone Co. - Bell Telephone Co. of Nevada $400,000,000 Five-Year Expansion Program Excerpts .from the 1945 Annual Report LTHOUGH it expe rienced an exceptional growth throughout the ynt years, our company did not profit from the War. The tabulation . . . (Comparing the year 1945 the end of the route to 1 Tokyo Bay with 1939 I the year in which ominous war clouds cast their im pending gloom vividly j portrays, not only what ; our company's expansion has been throughout the years of its war effort, but . also the impact of this ex pansion on its major oper ations. "The phenomenal de velopment of the Pacific Coast with its tremendous strides in commerce, in dustsy, military and naval activities has placed, and will continue to place, ex acting demands upon our company. With the nation , wide interest in this far i flung section with its rap idly expanding markets and its outstanding growth . potentialities, our com pany will experience in N the immediate years ahead, as they are now visualized, an unprecedented expansion. "Our immediate task ahead is to render service to all who want it and to restore and to take our service to new heights. As It announced December last, in the imme diate five-year period our company will be required to make expenditures for new con struction aggregating $400,000,000 and, as a consequence, extraordinary amounts of new capital will be required. The execution and speed of this entire program are de pendent upon the flow of available man power, materials, money and the level of ' business conditions. The consummation of ! the program for 1946, now well under way, will require, it Is estimated, an all-time i high expenditure of upwards of $90,000, ' 000 for new construction. This compares with the $33,800,000 expended in 1045. In clusive of materials re-used, the gross plant additions for 1946 are estimated at well over $100,000,000. This expenditure will be more than double the 1945 gross plant additions of $48,791,000. ', To do all the things wa hare In mind FROM PEACE TO WAR AND FROM WAR TO PEACE Telephones Owned 1939 1945 lncr.ai. tocr.a". andOperatedf. . 1,948,062 2,702,686 754,624' 39 Toll and Long Dis tance: Total Calls ... . 129,190,340 346,892,535 217,702,195 169 Longer haul calls (originating in and destined , beyond our ter ritory) 650,570 11,766,999 11,116,429 1709 Plant Investmentf . $493,360,850 $678,550,991 $185,190,141 38 Operating Revenues $122,168,305 $248,870,088 $126,701,783 104 Local Service Revenues . . . 85,703,890 131,179,676 45,475,786 53 Toll Service Revenues . . . 33,156,914 109,735,931 76,579,017 231 Operating Expenses (before taxes) . . $ 82,163,244 $167,291,874 $ 85,128,630 104 Operating Taxes . . $ 17,579,987 $ 53,364,072 $ 35,784,085 204 Total Payroll: ... $ 56,023,205 $124,689,994 $ 68,666,789 123 Employeesf 29,998 51,282 21,284 71 Men 12,091 15,745 3,654 30 Women 17,907 35,537 ' 17,630 98 Income Available for Interest and Return $ 22,560,834 $ 24,215,173 $ 1,654,339 7 Average Invested , Capital ....... $355,293,069 $412,344,160 $ 57,051,091 16 Return on Invested Capital 6.33 5.87 .46 7 Per Common Share t Earnings .... $7.87 $6.78 $1.09 14 Dividends .... $7.25 $6.50 $.75 10 Taxes $9.74 $21.68 $11.94 123 f At D.c.mb.r 31. (Include! construction payroll. 'D.crcai. will take men, materials and money. Our program will offer employment opportuni ties to many men and women not only la the manufacture, construction and installa tion of the added plant, but also in the maintenance and operation of a continu ously improving and expanding service. Our vast undertaking will require for Its accomplishment earnings that are sufficient to attract the huge sums of new capital needed. Expressing as It does a fundamental significance to every city, town, village and hamlet throughout the Pacific Coast, the consummation of our unprecedented pro gram will result in increasing the plant in vestment of our company by almost 50 per cent, bringing its total plant investment to an amount aggregating upwards of a bil lion dollars. "The era of tremendous expansion that our company has now entered places re sponsibilities of the first magnitude upop our management We go forward with firm faith that a telephone service rendered well will continue to be well received. la our company's following out its established policy to furnish the best possible service; to rendea" the service as economically! as possible; to charge fof the service only an amount to keep our company finan dally vigorous it is of vital importance that its earnings be such that they will continue to attract tho ( necessary amounts of new capital needed to accom i plish these objectives Earnings that are adequate; are in the public interest, because earnings that are) less than adequate neces- ' sarily jeopardize the effi ciency and the scope of the service. Thus, our com pany and the public it J serves have a common in terest. In full recognitioa of that interest, the charges for the service rendered should reflect a fair treat ment policy expressed in rates which, at all times, will be such that sound economic considerations will prevail in the interest of all parties the patrons, the employees and the in veutors. "A successful nation is a prosperous na tion. In order to increase and to sustain the production which is vital to that prosper ity, business and industry must, of neces sity, prosper as must their personnel who, through the dedication of individual effort contribute to the forward march of Amer ica. This fundamental concept, the recognl . tion of the dignity and worth of the indi vidua! and the value of free enterprise, with equal opportunity for all the Amer ican way of life has produced the highest standard of living among all peoples. Prog ress has been the measure of the welfare of our great Nation it will be the earnest en deavor of our company, as it has been in the past, to render a communication serv ice, which through its scope, efficiency and dependability, will continue to make its full contribution to that progress." ' 5- '"Vh., . V ...