(The letter referred to by Mr. Sinnott follows:)

Hon. N. J. SINNOTT,

KLAMATH FALLS, OREG., November 4, 1921.

House of Representatives, Washington, D. C.

DEAR MR. SINNOTT: At a conference in San Francisco the past week, in which I represented the private owners in planning the expenditure of the large amount of money necessary for the control of the pine beetle, it developed that this work might not be finished at the end of the fiscal year on June 30, 1922. It was decided by the representatives of the various departments of the Federal Government and the private owners that we should respectfully request you and Mr. McNary and Mr. Raker to amend your bills to make the appropriation continue past the end of the fiscal year, so that work may be carried on in this proejct if it is not completed in the spring of 1922.

We dislike to trouble you with this matter, but it seems to all of us very important thot there be no cessation of the work from lack of funds.

Thanking you for the deep interest you have taken and for your further attention to this matter, I am

Yours, very truly,

J. F. KIMBALL.

Mr. SINNOTT. At Bend are located probably two of the largest mills in the State.

The CHAIRMAN. Is this disease peculiar to that locality?
Mr. SINNOTT. I do not know just how extensive it is.

The CHAIRMAN. Is it nation-wide?

Mr. SINNOTT. I have not heard of it in any other place except in Oregon and California and possibly in Washington.

Mr. KELLEY. Do they confine their operations just to the pine trees? Mr. SINNOTT. I do not know, but think so. There are pine and fir trees in that country. However, the report of the Government expert is devoted to the pine-beetle infestation. Has that been put into the record?

The CHAIRMAN. We had a very comprehensive statement from Col. Greeley, which, I think, covered everything.

Mr. SINNOTT. I know it is a very serious matter, and the people in the various localities near the pine timber are very much wrought up over it.

Mr. WOOD. Is is destroying the lumber out there?

Mr. SINNOTT. That is the opinion of the experts who have examined into the matter. I suppose Col. Greeley told you about the necessity of starting their organization this fall?

The CHAIRMAN. Yes, sir.

Mr. KELLEY. When did it first make its appearance?

Mr. SINNOTT. I do not know how long it has been getting started. The first time I particularly heard of it was about a year or so ago. Mr. WOOD. Col. Greeley stated yesterday that a good many years ago they first discovered it.

Mr. SINNOTT. I caught some kind of an insect, a bug, and wrote to the Forest Service about it a year or so ago. They told me what it was, but the first time my attention was drawn to the beetle was when I went out to this timber. I wondered why there were so many dead trees there.

- The CHAIRMAN. You said that about one-fifth of the trees were dead?

Mr. SINNOTT. I do not know just how many. When I was up in that locality is seemed to me that every third or fourth tree was dead or dying.

The CHAIRMAN. If that is true, would any work that could be done preserve the forests there?

Mr. SINNOTT. It would prevent the spread.

Mr. KELLEY. To the other trees in that locality?

Mr. SINNOTT. Yes, sir. That was a place about 11 miles south of my town.

The CHAIRMAN. Your opinion is that something must be done? Mr. SINNOTT. I think so; I think it is imperative, because it is going to spread rapidly if you don't check it.

Mr. WOOD. Have you ever seen this bug in operation?

Mr. SINNOTT. No; I have not.

The CHAIRMAN. We are very much obliged to you, Mr. Sinnott. Mr. SINNOTT. I thank you very much, gentlemen.

(The letters referred to by Mr. Sinnott follow :)

Hon. N. J. SINNOTT,

OREGON STATE CHAMBER OF COMMERCE,

PORTLAND, OREG., July 23, 1921.

House of Representatives, Washington, D. C.

DEAR MR. SINNOTT: Subject: Pine beetle. I desire to call to your attention the importance of the bill now pending in Congress appropriating $150,000 to control insect depredations in timber owned and controlled by the United States.

I have special reference to the Klamath Falls section. where the beetle is doing damage to timber owned by the Government, as well as that owned by private parties.

Your efforts in behalf of this bill will be greatly appreciated by the timber owners of this State, and you will also be rendering a great service to our Government in the preservation of this timber.

Yours, very truly,

GEORGE QUAYLE,
General Secretary.

WASHINGTON, D. C., August 10, 1921.

Hon. C. I. MCNARY, R. N. STANFIELD, N. J. SINNOTT.

GENTLEMEN: I inclose herewith copy of a resolution framed by the Klamath County Chamber of Commerce, and sent by organization at home. Some of the leading timbermen of Portland have advised our chamber that this case is one of moment, and merits serious consideration; that while the ravages of this pest are for the time mostly confined to Klamath County and a portion of northern California, if it is not checked, the loss is sure to cover a much broader field; that the property threatened in Klamath County is worthy of energetic effort to protect it; that in checking this disease, the private owner nor the State, combined or working separately, can do little if adjacent timber lands owned by the Government are infected and nothing is done thereon to check the beetles in such timber; that the cost to the Government is but a fraction of the value it will save of its own forests; that if the Government undertakes to withdraw and hold such forests, it is in duty bound to handle such properties in a reasonable and business-like manner where such necessity for cooperation as fire and insect protection as that presented in Klamath County develops, etc.

I attach to the copy of this resolution sent Representative Sinnott a clipping from a Klamath Falls paper, giving more detail of the situation.

My board of directors respectfully urges the most serious consideration of the Klamath appeal that may be practicable in this day of stringent economies in Government expenditures.

Sincerely yours,

W. D. F. DODSON,

Secretary of Portland Chamber of Commerce.

Whereas large areas of timber in Klamath County, southern Oregon and northern California, are being devastated by ravages of the pine beetle, entailing a cost of thousands of dollars annually; and Whereas it appears from reports of the experts of the United States Forest Service and others who have recently made a survey and study and field examination that the condition of these forests will extend to timber now free from infestation and will seriously imperil one of the most important industries of Klamath County and of the State of Oregon; and Whereas the United States owns and controls vast bodies of timber and forest reserve on the public domain and on the Indian reservations that joint action by the States, the United States, and private owners is necessary to eradicate the beetles infesting this timber and prevent the spread of insect infestation: Now, therefore, be it

Resolved, by the Klamath County Chamber of Comemrce, That this body heartily indorse and earnestly request the passage of the bill now pending in Congress providing for an emergency appropriation of $150,000 to control insect depredations in timber owned and controlled by the United States in conjunction with the efforts of the several States and of the private owners of timber; and be it further

Resolved, That copies of this resolution be sent to the Senators and Representatives of the State of Oregon in the Congress of the United States, and to those of the adjoining States, with the request that they use their earnest efforts to procure the passage of this measure at this present session of Congress.

By J. A. GORDON,

Vice President,

T. L. STANLEY,

Executive Secretary,

Klamath Chamber of Commerce, Oregon.

Hon. N. J. SINNOTT,

BEND COMMERCIAL CLUB, BEND, OREG., November 5, 1921.

House of Representatives, Washington, D. C. DEAR MR. SINNOTT: At the regular meeting of the board of directors yesterday the following resolutions were adopted:

"It has come to the attention of our Commercial Club that the ravages of the pine beetle are doing great damage to the standing timber of Oregon.

"The outstanding industry of this community is our lumber industry: Therefore be it

"Resolved, That we urge upon our Congressmen from this State to use every means possible to secure the passage of legislation, including appropriations, that will combat this growing menace: Be it further

"Resolved, That a copy of this resolution be sent to every Member of Congress from this State, to the newspapers in this community and Portland, and to other organizations directly interested in the preservation of our timber." We will appreciate any information you can give us on the progress of the legislation above referred to. We believe this is one of the most important constructive things that is now pending, and the menace is such that prompt action is urged.

Very truly, yours,

L. ANTLES, Secretary Bend Commercial Club.

WEDNESDAY, NOVEMBER 9, 1921.

OPERATION AND MANAGEMENT OF THE CENTER MARKET.

STATEMENTS OF MR. WELLS A. SHERMAN, ACTING CHIEF, BUREAU OF MARKETS AND CROP ESTIMATES, AND MR. I. C. FRANKLIN AND MR. C. W. KITCHEN, BUREAU OF MARKETS AND CROP ESTIMATES.

The CHAIRMAN. We have before us a law under which the Secretary of Agriculture is required to take over the Center Market and to perform certain functions. This item in the bill is to enable him to conform to that law and to enforce it. We should like to have you gentlemen who are now before us make a detailed and comprehensive statement as to just what the Secretary of Agriculture is required to do, what the organization involves, and what the functions of the organiation are.

Mr. SHERMAN. Mr. Chairman, in this case the Department of Agriculture is asked to take over a going institution, an organiation already in existence, fully manned and doing business every day, 365 days in the year, with a large pay roll, and earning dividends on its investment.

There are two gentlemen here, Mr. Franklin and Mr. Kitchen. Mr. Franklin is particularly conversant with cold-storage problems, and Mr. Kitchen, who has been one of the project leaders in the Bureau of Markets for several years, and who have been appointed a committee to make a study of the present situation in the Center Market, its present organization, its present income, and to prepare a plan for administration under the Department of Agriculture. I should like to ask them to go into the details, Mr. Franklin being particularly, as I stated, familiar with the mechanical and coldstorage conditions.

Of course, you realize that this is a large commercial cold-storage plant as well as a market property. It also has an amusement plant. That feature of it will have to be discontinued under Government operation. Se we face a decrease in revenue from the beginning, in that the concession to operate a part of it as a dance hall will have to be canceled. I think we will be able to show you that the Government expects, with reasonable confidence, to operate that property at a profit.

The CHAIRMAN. The Government owns the property now?

Mr. SHERMAN. The Government owns the land. The building was erected by the Center Market Co. many years ago under a charter or act of Congress, which, as I understand it, provided that after a given time the Government could, at its option, acquire the property by condemnation proceedings upon paying the appraised value of the improvements thereon, and that is what Congress has done by a recent act which provides that a commission shall be appointed to appraise this property, and, as I understand it, it provides an appropriation to defray the expenses of the commission. The commission has been appointed and has called upon the Center Market Co. to produce its evidence or take an inventory of the property preparatory to placing a valuation on it. As soon as they make

their report the title passes immediately, on behalf of the Government, to the Secretary of Agriculture.

The CHAIRMAN. Is there no appeal from the decision of this committee?

Mr. SHERMAN. Yes, sir; I understand that there may be an appeal to the courts, but the law provides that as soon as a decision is rendered by the commission 75 per cent of the award must be paid to the market company, and from that date they will have 60 days in which to determine whether they will accept the other 25 per cent or appeal to the courts. The Government has the same right of appeal, but the title and responsibility for the property passes as soon as the award is made.

The CHAIRMAN. When the title passes-

Mr. SHERMAN (interposing). Then the Secretary of Agriculture becomes responsible immediately.

The CHAIRMAN. Then the Government, under the Secretary of Agriculture, takes the place of the present owners?

Mr. SHERMAN. Yes, sir.

The CHAIRMAN. And leases it to the occupants or to the persons occupying space in the market?

Mr. SHERMAN. Yes, sir; we will have to operate the place.

The CHAIRMAN. We will not operate it in the sale and purchase of goods?

Mr. SHERMAN. Not in the sale and purchase of goods, but we will have to operate as lessors of cold-storage space and market space. Mr. ANTHONY. Will the Government have to operate the coldstorage plant?

Mr. SHERMAN. The cold-storage plant is in the same building.
Mr. ANTHONY. Will the Government operate it?

Mr. SHERMAN. Yes, sir; we will have to.

Mr. ANTHONY. That is separate from the other part of the market? Mr. SHERMAN. Yes, sir. The stand holders in the market have cold-storage places, and some of the large packing concerns have. The CHAIRMAN. When was this commission appointed?

Mr. SHERMAN. About the 1st of October.

The CHAIRMAN. Of this year?

Mr. SHERMAN. Yes, sir. We can not tell just when the commission will report, for we can not tell just how long it will take them to make their valuation.

The CHAIRMAN. Are these gentlemen here members of the commission?

Mr. SHERMAN. No, sir; they were designated by the Department of Agriculture to act as the department's representatives.

The CHAIRMAN. Is it likely that this board or commission will report right away?

Mr. KITCHEN. They must complete their work in six months.

Mr. FRANKLIN. The chairman of the committee, Mr. Horn, told us that he was using every effort to expedite it.

The CHAIRMAN. You are not certain whether this activity will fall upon the Government before the annual appropriation bill comes up for consideration?

Mr. SHERMAN. No, sir; we are not; but certainly they must report before those funds will become available.