In a speech delivered before the opening session of the Fourth American Forest Congress in Washington, D.C., October 29, 1953, Mr. James L. Madden, president of the Hollingsworth & Whitney Co., of Boston, Mass., summed up the conservation policies, plans and philosophies of the forest industries of the United States.

American Forest Products Industries believes the policy statement by Mr. Madden bolsters and emphasizes the faith so eloquently stated by President Eisenhower. The full text of Mr. Madden's talk, "The Forest Industries Are Growing Their Future," is reprinted on the following pages for the information of conservation-minded Americans everywhere

by

JAMES L. MADDEN President, Hollingsworth & Whitney Co.

I CONSIDER it an honor and a privilege to bring to this Fourth American Forest Congress the forestry plans of the wood processing industries, who are in the business of growing trees and who have proved that good forestry is good business. The present and future operations of these industries and the economic well-being of this nation, depend upon an adequate supply of forest resources. I would like you to consider first the importance of these resources—and their conversion to forest products—to the over two million workers in our woods and mill operations, to the general public, and to other important industries.

In our national economy, the forest products industries assume a dominant position when you consider the following points:

Their investment in plants, equipment, and lands are conservatively estimated at more than 20 billion dollars.

They represent the country's oldest business and still remain one of America's biggest businesses.

In terms of value of products shipped and in average number of employees, wood processing was the nation's largest business in 1947. In 1950, these industries were second in number of establishments and fifth in volume of revenue freight. They contributed nearly ten percent of our national net income and accounted for more than ten percent of the total national expenditure for manufacturing plants and equipment.

In some 50,000 communities in this country, wood processing is the principal in-

1) Nearly three-fourths of a million people employed in the printing and publishing business rely on a continued supply of pulp-wood to make the paper needed to feed their presses.

2) Two million people in the building and construction industry look to the forest industry for lumber, plywood, fiber boards and allied timber products.

S) This country's great railway transportation system with its million and a quarter employees, requires more than one and a half billion board feet of wood a year to keep its trains rolling. 4) To these timber-dependent millions must be added untold thousands of men and women employed in the food processing and packaging industries and their related retail outlets. The supermarket couldn't operate without modern paper packaging and advertising.

The wood processors of the United States are thoroughly aware of their responsibilities for supplying the timber needs of all of these people. They, more than any other group in the United States, are keenly aware of the fact that nine-tenths of this country's wood harvests are being produced by just three-fourths of its commercial timberland. About one-fourth of the country's commercial forest land is in public ownership—largely national forests, which are principally in the 11 western states where the federal government owns 53 percent of all land. These publicly-owned forests, however, produce only one-tenth of the timber harvest, although they contain nearly 40 percent of the nation's sawtimber volume. Substantial portions of these public forests are over-mature, and in urgent need of selective cutting and other types of improved operations to forestall

The forest industries own about 18 percent of the country's commercial forest land. They employ the largest corps of tree-growing and wood utilization experts in the nation-some 5200 technically trained foresters. The Chief of the Forest Service has stated that most of the 400 large and 3000 medium-sized owners of 84 million acres of forest land are doing a good job. As Secretary Benson stated and we all agree that the nation's number one forestry problem is the matter of better management of the 261 million acres of small woodlots, averaging 62 acres apiece, to bring them into full and continuing production. They represent 57 percent of the country's commercial woodland and are owned by 4,225,000 small owners to whom forestry is aside issue because they don't depend on it for their living.

Tour detailed forest resource estimates have been made by the federal government. The first of these was started in 1909 and the last was completed in 1944. The ratio of sawtimber removal to sawtimber growth as shown in these appraisals has been steadily improving. In 1919, we were cutting sawtimber nearly six times faster than nature was replacing it. By 1944, the ratio of removal to growth had dropped to 1.53 to one, and counting all trees down to five-inch diameter, wood removal was only 1.02 times growth, while forest growth is still well below the productive capacity of the land, it is increasing year by year. Those figures were published nine long years ago. Since 1944, the federal government, in cooperation with individual states, has completed resurveys in 16 states. In ten of these, they found higher volumes of sawtimber than the 1944 report had indicated. Only four states showed less. Overall, the 16 state resurvey shows an increase in excess of 12 percent in sawtimber volume over that reported in 1944.

The forest survey work should be conducted without interruption at a level to keep the inventory current. Industry should cooperate fully in this work.

As long as great reaches of standing timber were available at from 50 cents to $1. per 1000 board feet, and high taxes discouraged timber growing, and plant investment was relatively low, it was more economical for sawmills to pack up and move than to grow new timber. We were in a period of forest liquidation and land-clearing,, with little or no incentive for people to enter the field of forestry with the expectation of making it pay. In no country has wise forest land management become established until the original old-growth forest had been wholly removed or its end was in sight.

The large investment of modern wood-using industries in plants, power, equipment, and forest land are not short-term or easily amortized. The smallest economical modern pulp mill, for example, costs many millions of dollars and it is firmly anchored to the surrounding timberland-growing area, of which it may own only a small portion.

"Cut and get out" is practically gone forever. Forest industries protect and manage their own lands for successive crops of timber and at the same time demonstrate to other owners that it is really profitable to care for, protect, and wisely harvest even small timber stands. Of course, they hope that they will get their share of the increased growth. With this change has come a full realization on the part of this industry that it must take an active part in providing the leadership required to provide for the sustained management of our forest resources.

As a recognition of this responsibility, some seven years ago the Forest Industries Council, representing the American Paper and Pulp Association, the American Pulp-wood Association, and the National Lumber Manufacturers Association, issued its first Forest Policy Statement as a guide to the members of their respective industries which process more than four-fifths of the forest products of the nation.

This Forest Policy Statement of the Forest Industries Council has been brought up to date and is now being distributed by the

Protecting forests from fire has been and remains one of the primary concerns of every forester and of every conservationist. The forest industries share this concern. They have started and supported energetic fire prevention, "Keep Green," campaigns in 35 states, with the result that Keep Green is now accepted as the badge and hallmark of a good American. By working together, we have made great strides in fire prevention and forest protection. Today slightly more than 90 percent of the forest lands in the nation are under some form of organized protection.

Fire losses have been reduced steadily. Forest protection is a cooperative venture in which industry, local and federal governments, and the general public must work together. Forest protection always costs money, but it doesn't cost nearly as much as lack of protection.

In an average year, the percentage of fire losses on unprotected forest land is 11 times greater than losses on protected lands. Industry is thoroughly aware of this fact and each year spends millions of dollars for fire fighting equipment, radio and telephone systems, special weather forecasts and the maintenance and training of fire fighting crews. Industry's goal is adequate, dependable, and economical protection for all woodlands.

While fire is the most spectacular natural enemy of the forest, insects and diseases are many times more destructive in terms

Forest industries are proud of their record of cooperation and will continue to cooperate with all agencies in the fight against tree-killing insects and diseases. In Oregon for example, a costly five-year aerial war against the spruce budworm has involved the spraying of two and three-quarter million acres of timberland. In western Montana and Idaho, forest industries have completely regarded their cutting schedules and production patterns to salvage Engelmann spruce stands threatened by swarms of bark beetles. At stake is an estimated 12  billion board feet of timber, most of it owned by the federal government.

In more than a dozen central, southern, and eastern states, forest industries are cooperating with universities and government agencies in an all-out campaign tc solve the oak wilt mystery and bring this tree-killer under control. A substantial portion of the money that makes this oak wilt research possible comes from private sources.

The Forest Industries Council has well stated industry's program for improving forest practices, and I quote, "Urge continuance and expansion of forest practices that will yield perpetual crops of forest products, protect our soil and watershed values, and insure full use of all our resources on our forest lands." Recreational, scenic values, and other multiple use aspects are recognized as having economic as well as public values, and should be recognized in the management of all forest lands. To apply the useful tools of forest and business management, all owners with sufficient woodland are urged to employ foresters. Owners who cannot afford a

The forest industries are not only concerned with good practices on their own land, but also with the encouragement of timber growing by the hundreds of thousands of wood suppliers on their woodlots, and with the management of publicly owned forests so that all these lands may contribute in full to the nation's wood economy. Better forest management is being advanced rapidly among all classes of forest land ownership, with the most rapid advance in private industry where the employment of foresters has advanced from 1000 in 1941 to more than 5200 today.

Seven years ago, the forest industries started their "Trees for America" program to encourage, assist, and teach small woodland owners how to grow trees as a crop. One phase of this campaign was intensified industry support of the then infant American Tree Farm System, now underway in 36 states with more than 4600 people, 80 percent of them small, non-industrial woodland owners, participating.

In every instance, the owner earns his Tree Farm certification by demonstrating an ability and a desire to protect his woods from fire and other natural hazards, and to manage them for continuing crops of wood. To keep the title of "tree farmer," he must continue to demonstrate that ability and interest. Tree Farm acreage in the United States is climbing at the rate of nearly three million acres a year and is now about 29 million acres.

More than 100 leaders in farm forestry work met in June at Chicago, at the invitation of the American Forest Products Industries, to re-examine the farm woodlot situation. Heads of the several federal

Every side of the farm woodlot problem was thoroughly examined. It was an encouraging conference, full of stories of accomplishment and progress. I believe everyone present came away with new ideas, new incentives, and added enthusiasm for tree farming. From that meeting, I gained the impression that one quarter of the small farm-size woodlots of the United States are now being managed for repeated crops of wood products. As industry's Tree Farm program continues to expand, and as today's generation of forestry-conscious 4-H Club and Future Farmers of America members become full-fledged farm woodlot owners, forest conditions on the small woodlot will continue to improve.

Many industrial foresters spend all or part of their time assisting small woodlot owners with timber management problems. One of the outstanding examples of what industry is doing to stimulate better practices on lands of small ownerships can be seen in the program of the Southern Pulp-wood Conservation Association, financed by pulp and paper companies and pulpwood producers from Virginia to Texas. They report that 65 percent of all wood cut by its members in 1952 was in accordance with the minimum forest standards of the association or better. "Trees for Tomorrow" in Wisconsin and other associations have done similar good work in their areas. Private consulting foresters, now numbering about 400, are playing a vital and growing part in private forest management.

A Report on Reforestation

Reforestation, in industry's opinion, is primarily nature's job. The harvesting methods practiced and advocated by foresters insure adequate natural reproduction. Sometimes, however, it becomes

Forest tree plantings reached an all-time high of an estimated 500,000 acres in the United States last year. Four-fifths of this •land was privately owned. A single forest company in Louisiana planted 24,770 acres, bringing its 20-year total to 98,843 acres. In the Douglas fir region on the West Coast, a forest industry nursery last year completed 11 years of service by supplying its 54 millionth seedling for planting. In Arkansas, a lumber company used airplanes to reseed a 5000 acre tract on which all tree growth had been destroyed by fire. In Georgia, bankers have teamed up to buy nearly 200 mechanical tree planters that are loaned to small farmers in a planned program to restore one million acres of marginal cropland to timber.

All around the United States, forest industries are providing seedlings and loaning mechanical planters to encourage tree farming.

Tree planting has an enormous educational value. Every landowner who plants trees immediately becomes interested in forest fire protection and all forest activities, which benefit him and the wood-using industries. Planting by school and youth groups instills good forest protection thinking in the coming generation.

Industry is encouraging maximum utilization of each tree cut and of all forests which should be harvested or salvaged.

Improvements in logging techniques, better equipment, and expanded markets make it possible to bring in more usable wood from each acre of forest land harvested. Many low grades of hardwoods, once scorned, today find ready markets as pulp -wood. In many areas combined production of saw logs, poles, and pulpwood give the landowner better returns than growing any of them alone. In the Lake States, one-third of the pulpwood harvested is aspen.

Forest industries also are getting more wood out of each tree they cut. The saw-log barker is one of the really significant forest industry developments. Installation of substantial numbers of these barkers, particularly in the West and South, has, in the last couple of years, made available a vast new source of raw material for pulp and paper. In the West alone last year, chips made from sawmill and plywood mill leftovers provided the equivalent of one million cords of pulpwood. This is like opening up a whole new forest on which America's wood-using industries can draw.

One of the principal reasons for the recent upsurge in utilization techniques has been industry's continuing interest in research. Forest industries, along with individual states and colleges, spend about 20 million dollars a year on wood research. Results are measured in a constant flow of new and useful products made from wood.

Last year, for instance, one major forest products industry listed net sales of fiber and bark products totaling well over 20 million dollars. Five years earlier fiber and bark products did not even appear in this particular company's sales summary.

Research has many aspects. In New England, one manufacturer of pulp and paper maintains a large industrial forest on an experimental basis and conducts studies on harvesting methods and tree

In Georgia, a timber-owning company is carrying on extensive work in seed tree selection and cross-breeding to develop sturdier, faster-growing trees.

Individually the forest industries of the United States are responsible for hundreds of scholarships and graduate fellowships in forestry colleges. These educational grants are further evidence of the firm faith forest industries have in the tree-growing future of our country.

Industry will continue to promote industrial research, and cooperate in effective public research, where appropriate, in the utilization of forest products and in commercial forest management.

Industry has and will continue to support in each forested state a competent, adequately staffed and financed state forestry organization. State forestry today stands high in 1) fire protection, having under their protection 57 percent of all forest land needing protection in the United States, and 2) educating and assisting owners of small areas to improve their forest practices, and 3) teaching in 25 forestry schools, and 4) administering state forests. Industry believes greater reliance should be placed on state funds to meet forestry problems of a public nature. We applaud Secretary Benson's statement of a policy of a minimum of public controls, cooperation and mutual assistance.

Industry supported the Forest Credit Bill, just signed by the President, which amends the Federal Reserve Act in such a manner as to enable national banks to make two year loans on managed forest property, using timber as collateral and to make mortgages up to ten years. In the past year or so, three of the largest insurance companies have begun making long-term

Conclusion

The forest industries recognize that they have a job not only of carrying the message of protection, planting, and technical assistance to landowners in their respective areas, but also of selling this longer-term philosophy to those forest operators who may now be thinking only of their current supply.

A good start has been made, the trend line is up sharply, but what has been accomplished thus far is only a prologue to what we must do in the future.

The United States has reached a point in its forest economy where progress must be rapid and consistent. Thousands of acres of idle land must be put to work growing trees. Present forest stands must be protected and managed to obtain better wood crops. The wood processors and forest owners are alive to their responsibility for as President Eisenhower so well expressed it, we are "dealing in futures and it is up to us to see to it that the nation's tree growing potential is harnessed. They are not planning to divide up shortages, they intend to grow their future. They have pledged themselves to provide united leadership in a planned campaign to improve America's woodlands so they will continue to provide an adequate, continuous and increasing flow of forest products for man's use.

"The purpose of Government is to understand, if possible, the problems of every special group in this country, but never to use the resources of this country to favor any group at the expense of the others."... President Eisenhower

"\ cannot tell you how much satisfaction it gives to me to know that intelligent Americans are meeting together whose interests are as broad as this land, whose vision must be projected forward not merely until tomorrow, or possibly an election, but for a century."...President Eisenhower

"One of the objectives of this government is furthering the orderly process of bringing the responsibility for the success of—programs of government closer to the individual citizen where such responsibility properly belongs."...Sherman Adam*

"There are already too many administrative decisions which have to do with the mode of life and habits of the individual citizen which are made so far away from his habitat that he has not only lost interest, but his sense of public responsibility."...Sherman Adams

"Let us not forget that forestry is inseparable from agriculture. Forests are composed of plants, and trees are a renewable crop. The basic plant and soil sciences are the same for farming as for forestry."...Secretary Benson

"As forest managers, we must not become so imbued with all resources that we fail to make the land yield up to its full potential of the resource for which it is best fitted."...Secretary Benson

"We believe that the States and private owners can and should carry a very sub-

"The Department's goals for the national forests include the acceleration of timber harvesting to bring the cut up to the allowable sustained-yield standards, and thus bring about better management and greater contribution to the timber needs of our nation. This involves, among other things, more timber-access roads, in the construction of which there will be full cooperation between the Government and the operator-purchasers of timber."...Secretary Benson

"It is impossible to do the proper job of forestry for this Nation without the full cooperative partnership of the States and local communities, all private citizens owning or depending upon forests for their livelihood, and the Federal agencies managing Federal forests." ... Secretary McKay