The 1937 O&C Act overhauled the timber management and revenue distribution scheme. It allowed the federal government to pay fifty percent of gross timber revenues directly to the O&C counties, plus twenty five percent (for unpaid Railroad property taxes) to O&C lands. In 1953 Congress directed 25% of the revenue to road building and other capital improvements on the O&C lands, leaving only 50% paid to counties. These payment schemes tied timber harvests to county revenues and made county government a champion of increased logging.
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