federal Department of Agriculture and aimed to secure continuous 
forest production, observance of the code to be obtained through 
voluntary agreements entered into between the proper public author- 
ities and the land or timber owners of considerable areas within the 
state, 
c. Maintaining adequate protection of timberlands from fire, with 
funds coming from state and private sources at least equal to federal 
funds used for this purpose; 
d. Basing taxation of growing timber upon the principle of the 
yield tax, with reasonable uniformity among the states in such taxa- 
tion. 
5. That Congress should provide for a national survey and in- 
ventory of forest resources. 
6. That Congress should increase the federal appropriations 
available for protection of timberlands against fire. 
7. That Congress should provide for enlargement of federal re- 
search and experiment in forest products. 
By a favorable vote on these questions, the National Chamber 
established the principles of cooperation between the state and fed- 
eral government and the private owners, for efficient forest fire 
protection, and the passage of equitable tax laws. The establish- 
ment of these principles was a big stride toward successful and profit- 
able practice of forestry. The passage of the Clarke-McNary Act 
on June 7, 1924, followed shortly after the referendum. 
In addition to the Referendum 42, the Chamber through its 
committee on taxation has recommended recently that, “There 
should be modification of the Federal Income Tax Law that will 
recognize adequately the peculiar nature of the business of produc- 
ing forest crops.” The committee felt that “to require those en- 
gaged in raising forest crops to take'deductions annually rather than 
against the proceeds of the crops to which they relate is a denial of 
justice.” 
The Chamber has prepared and published a pamphlet on 
“Forest Yield Taxes” setting forth the results of the ad valorem 
system of taxation, and the modification in taxation necessary for 
equitable application to timber growing. 
At the Fourteenth Annual Meeting of the Chamber (May, 
1926), the subject of forest taxation was again brought to the at. 
tention of the membership and the following resolution was 
adopted : 
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