The other important field of work concerns the best employment of the technical knowledge and equipment of the Forest Service for the furtherance of war preparations involving the use of forest products. The opportunities in this field have proved increasingly numerous and important. The demands of the Army, the Navy, and the war industries for assistance have been far beyond the capacity of the Forest Service to meet. In order to come as near as possible to meeting them, every available man has been taken from other work. All lines of investigation not concerned with war problems have been halted. The resources thus made available have been augmented by funds obtained from the War and Navy Departments. The entire energies of the Forest Service are now devoted to prosecuting the National Forest enterprise, as an essential war-time activity, and to aiding in the most advantageous employment of the country's forest resources generally for the winning of the war.

THE NATIONAL FORESTS.

RECEIPTS AND OPERATING EXPENSES.

The receipts from the National Forests in the fiscal year 1918 totaled $3,574,930.07, an increase over 1917 of $117,901.66.

While the grazing business produced an increase over 1917 of $176,027.18, the timber business showed a falling off of $58.965.79. In both cases war conditions were primarily responsible. For the sake of greater production of meat, hides, and wool the number of live stock permitted to graze on the forests was raised to the highest limit consistent with safety. On the other hand, the receipts from National Forest timber fell off because of the labor and transportation difficulties which confronted the operators in the Northwest, where the sales are heaviest.

The operating expenses of the National Forests have been for several years practically stationary at approximately $4,000,000. These include only the cost of maintaining the regular protective system. Emergency fire conditions are met, if they arise, first by the use of the special emergency appropriation of $150,000 and then, if this is not sufficient, by seeking deficiency appropriations from Congress. In the last eight years it has been necessary to seek from Congress four deficiency appropriations, aggregating $2,081,543, while in three of the remaining four years the $150,000 emergency item carried in the regular appropriations was supplemented by a second emergency fund which made available $1,000,000 in 1912 and $200,000 in 1913 and 1914. The total emergency expenditures for protection in these eight years have been nearly $3,800,000.

It is becoming very plain that the present methods of protecting the great bodies of heavy timber in the most inaccessible regions should be modified. Not enough is spent on the regular protective system, and in consequence large emergency expenditures become necessary. To the cost of fighting the fires must be added the property losses which they inflict. The receipts from the forests are now not far below the operating expenses, and but for the disturbed conditions due to the war would unquestionably exceed them. With enlarged provision for maintaining the regular protective system the emergency expenditures to put out serious fires could be reduced

to a much lower level. It would be far wiser to put the funds which it is necessary to seek from Congress in the form of deficiency appropriations into the cost of keeping fires from becoming serious, through greater outlays for fire prevention, early detection, and swift concentration of fire-fighting forces. This subject is discussed in further detail under the subject of "Protection."

THE PERSONNEL SITUATION.

While private enterprises have had to accept increased operating costs as a result of the rise in the wage scale and in the price of materials due to the war, the regular expenditures of the Forest Service have perforce been limited to the amount appropriated by Congress. The weight of the burden has fallen largely on the personnel; with conspicuous and devoted loyalty the bulk of our force, outside of those who have gone into the Army or Navy, have chosen to stand by the Service, although they might almost to a man have obtained much better-paying positions elsewhere. This can not continue indefinitely, nor is it right that it should. The National Forest force is now underpaid, and its members are hard pressed by high living costs. Without relief, the standards of administration and protection are bound to deteriorate greatly and rapidly. Instead of being allowed to deteriorate they should be raised.

Even before the war the statutory salaries of a large part of the National Forest force were below what men of the same caliber and experience could readily obtain in private employ. That the turnover has not been larger has been partly because the work itself, with its opportunities for rendering real and valuable public service and the prestige and position of local leadership afforded, has appealed to many men as partial compensation for the relatively low pay. There has also been the hope and expectation that, with reasonable time, the Forest Service would be able to give promotions which would do justice to faithful and capable men. Further, the Service has been fortunate in the possession of an espirit de corps which has done much to hold its force together.

Nevertheless, in the last few years it has been increasingly difficult to keep the men. Restiveness in the face of increased costs of living and a wage scale based on the standards of eight years. ago has tended to develop. In certain classes of positions particularly, the Service has been almost a training school through which men have passed to better-paying private employment. In general, the more responsible positions are filled by men who entered the Service when it was a young and rapidly expanding organization, and when they themselves were young and unencumbered with family responsibilities. Conscious that they have become more valuable with maturity and experience, and confronted with the necessity of providing for growing families, it is natural that many should turn to employment elsewhere when it begins to appear to them that their prospects of material advancement in the Service are doubtful.

This personnel situation has been much aggravated by the recent upward leap of living expenses and the great demand for men to fill outside positions which have resulted from the war. Local studies indicate that the cost of living has risen since 1914 approximately 60 per cent. Food supplies and clothing have in some localities

doubled and even more. The rise has been especially marked in the last two years. The forest ranger receiving $1,100 or $1,200, required as he is to own from one to three horses, finds himself, even with the greatest economy, unable to pay his essential bills. By taking work in the mines, shipyards, sawmills, or with live-stock companies he can do much better. The bulk of the men have remained at their posts, though scores have received outside offers of from $200 to $2,000 or more per year in excess of their Forest Service salaries.

The situation of the forest officers, clerks, and others having fixed bases of salary is very critical, and requires the earnest consideration of Congress. It has so far been possible to meet the drain upon the personnel by readjustments, by curtailment of certain work, and by employing as temporaries persons less skilled and experienced. The consequences have necessarily been felt at some points. It has not always been possible to maintain the same standards of service, and some constructive work of public importance has had to be given up. One instance occurred in 1917 on a Forest in Idaho. Practically the entire forest force had been replaced by relatively inexperienced men. It cost $50,000 to put out fires that normally would have been quickly brought under control; and there was also a loss, in timber destroyed or damaged, of $40,000.

The Forest Service has furnished to all branches of the Army and Navy 446 men. In addition to this a considerable number have left to serve in the War and Navy Departments in a civil capacity, and still others have resigned to take part in industries directly concerned in producing materials for war uses. Still others have been forced to leave the service because, with the low standard of salaries, they were unable to meet the constantly increasing cost of living. Since our entry into the war 1,179 persons, including those who have gone into the Army and Navy, have left the service. The reduction of the trained force by transfer to other branches of the Government for military work has constituted the normal contribution to the war. That practically the whole force did not enter such work has been due to the courageous patriotism of the men in remaining at their posts because requested to do so on account of the necessity to protect the public forests and maintain their essential activities.

One of the first calls made upon the personnel was 'in connection with the organization of the forestry troops by the Corps of Engineers. Two regiments of skilled woods and sawmill workers, comprising about 9,000 men and fully equipped with sawmills and logging appliances, were sent to France to produce from the French forests wood materials needed by the Army. The Forester was sent to France under commission to prepare the way for this work, and the Forest Service was called upon to cooperate in the recruiting of the forces. Altogether over 150 members of the Forest Service were taken for these forest regiments.

THE NATIONAL FOREST PROPERTIES.

CONTINUED DECREASE IN AREA.

The net area of the National Forests at the close of the fiscal year was 155,374,602 acres, as against 155,166,619 acres one year previously. The corresponding gross areas were 175,951,266 acres and

176,253,160 acres. Gross area includes all lands within the National Forest boundaries; net area excludes alienated lands.

On the face of these figures, an increase took place in the net area. This is much more than accounted for by the fact that in 1918 four National Forests-the Alabama, Shenandoah, Natural Bridge, and White Mountain-were proclaimed. These four Forests had a total area of 730,894 acres. Their proclamation, however, merely gave formal status as National Forests to lands already under administration and National Forests in everything but the name. They were four of the so-called "Purchase Areas" established in connection with the acquisition of lands for National Forest purposes under the Weeks Law.

In all, five of the Purchase Areas have become National Forests through presidential proclamation, the Pisgah having been proclaimed in the fiscal year 1917. All the Purchase Areas, however, are now under a form of administration identical with that of the National Forests. Since no change whatever accompanies or follows the formality of proclamation, the apparent net area increase due to this cause is obviously without significance. The real situation is more accurately expressed if all the Purchase Areas are included as National Forests. The statement then becomes:

In these figures the gross and net areas of the Purchase Areas are treated as identical. The Purchase Areas comprise (1) lands title to which has actually passed to the Government, amounting at the close of the year to 1,132,792 acres; (2) lands approved for purchase by the National Forest Reservation Commission and under process of acquisition, amounting to 509,011 acres; and (3) private lands which may or may not eventually be approved for purchase, amounting, as the boundaries are now drawn, to 4,646,435 acres. The boundaries of the Purchase Areas, however, are not strictly comparable with those of the western National Forests, which are fixed by presidential proclamation. They are tentative limits within which the commission will consider making purchases and may be modified at any time, and at present include much more private land than public. Hence in making up the above figures the Purchase Areas are regarded as including only the lands which have been actually acquired. Prior to the fiscal year 1917 each successive year since 1909 showed a decrease in both gross and net areas. Compared with the total area when the Forests were at their maximum, early in 1910, the 1918 figures given above show a decline of about 18.000.000 acres gross and 16,000,000 net. This cutting down of the Forest areas has resulted chiefly from land classification. After nine years of steady sifting to separate from the Forests such lands as should not be permanently retained in public ownership, the task has, except in 97335°- -AGR 1918-12

Alaska, been brought substantially to completion. The existing Forests are approaching stability.

REASONS FOR DECREASE IN AREA.

The land classification idea lay behind the establishment of the Forests, but at first it had to be applied in a rough and ready way. The forested public lands were passing rapidly into private ownership, and there was no time for a refined classification. Hence the first decade of the twentieth century was the period of rapid area expansion, while close to another decade has been given to restudying the lands in order to determine just how much should be permanently held.

The act of June 4, 1897, after defining the purposes for which National Forests might be established, specified two classes of land which were not to be permanently retained, and provided for their disposition. Recognizing that the temporary inclusion of a certain amount of land more valuable for agricultural or mining development than for Forest purposes would necessarily attend the making of the reservations, the law authorized the Secretary of the Interior to restore such lands to the public domain "after due examination by personal inspection of a competent person appointed for that purpose." It also made mineral lands subject to continued location` and entry. The act of June 11, 1906, authorized opening to entry lands within the Forests found to be chiefly valuable for agricul ture. Study of the situation soon disclosed, however, that portions of the Forests should be eliminated for other reasons. A good deal of land had been included which, as its potential usefulness was weighed, was found unsuitable for National Forest purposes because its value to the public was too low to justify the cost of administration. In many other cases the Government-owned lands were too heavily interspersed with private holdings for advantageous administration. The bulk of the lands which have been eliminated from the Forests since 1909 fall within these last two classes.

While much of the area thus eliminated has agricultural value, as a rule the agricultural value, where there was any, was low. A relatively minor amount of agricultural land of excellent quality, usually in strips along the valleys of the larger streams, has been eliminated, while the forest homestead act has made it possible to deal with small patches of lands chiefly valuable for agriculture by listing them for entry as interior holdings. In the case of lands chiefly valuable for the minerals therein it has not been found necessary to provide for their development through eliminations, since the Forests are open to prospecting and mining development precisely as are the public lands. When a mining claim goes to patent the land is thereby classified as mineral, and this means of securing the development of such lands is all that is needed.

One other important class of land remains to be mentioned. As the National Parks policy has developed it has become evident that some portions of the National Forests have their highest value for permanent administration by the Government as National Parks. Some of the reduction of the area of the National Forests has been due to the enactment of legislation creating National Parks out of National Forest lands. The desirability, of this course, where the