United States Department of Public Lands and Private Recreation Agriculture Forest Service Enterprise: Policy Issues from a Pacific Northwest Research Station Historical Perspective General Technical Report PNW-GTR-556 September 2002 Tom Quinn Author Tom Quinn is a policy analyst, U.S. Department of Agriculture, Forest Service, Policy Analysis Staff, 201 14th Street at Independence Ave., SW, Washington, DC 20250. Abstract Quinn, Tom. 2002. Public lands and private recreation enterprise: policy issues from a historical perspective. Gen. Tech. Rep. PNW-GTR-556. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 31 p. This paper highlights a number of the historical events and circumstances influencing the role of recreation enterprises on public lands in the United States. From the earliest debates over national park designations through the current debate on the ethics of recreation fees, the influence of recreation service providers has been pervasive. This history is traced with particular attention to the balance between protecting public interests while offering opportunities for profit to the private sector. It is suggested that the former has frequently been sacrificed owing to political pressures or inadequate agency oversight. Keywords: National Park Service, USDA Forest Service, concessions, recreation, public lands, public good, public utilities. Contents 1 Introduction 2 The National Park Idea (1870–1915) 3 The Entrepreneurial Spirit 6 The Dawn of Forest Management (1890–1910) 9 A New Management in the Parks: The National Park Service (1916–1930) 11 The Emergence of Regulated Monopolies in the Parks 12 Recreation Use Grows in the National Forests (1915–1960) 15 Ski Areas on the National Forests 17 The National Park Service (1930–1960) 21 Turbulent Times for the Forest Service (1960–2000) 23 Park Service Policies and Politics (1960–2000) 27 A Continuing Agency Role 29 Conclusion 29 References Introduction The role of the private sector in providing recreation goods and services on federal lands is a subject of considerable contemporary debate. This debate has generally focused on the two primary providers of public land recreation, the USDA Forest Service and the USDI National Park Service, although the issues are equally valid for other agencies including the USDI Bureau of Land Management and the U.S. Fish and Wildlife Service. Some critics have contended that the agencies responsible for our public lands have not sufficiently encouraged private investment in recreation de- velopment to accommodate growing public demand. Conversely, others have rallied behind a cry of opposition to “commercialization, privatization, industrialization, and ‘Disneyfication’” of their national parks and forests. The agencies themselves wrestle internally between the need to supplement meager federal appropriations for recreation and the underlying goal of natural resource pro- tection. Pricing concerns, social equity, and perceived excessive development and commercialization are but a few of the issues agencies need to address as they weigh the pros and cons of increased privatization. These are not new issues. Indeed, they have been at the forefront of public land recre- ation management for nearly 130 years. This history indicates that private investment is neither inherently good nor evil, but that it does come with attendant governmental obligations to safeguard the greater public interest. Agency recreation policies need to be evaluated with attention to these obligations as well as to the lessons of the past. The history of the national parks and the National Park Service has been well covered in the literature (see for example, Everhart 1983, Foresta 1984, Ise 1961, Runte 1979, Sellars 1977, Shankland 1951). In most cases this past work has, by necessity, at least touched on the role that private business has played in the development and management of the parks. Quite simply, the history of national park concessioners and the history of the parks themselves are so intertwined as to be inseparable. Such is not the case with the national forests and the Forest Service. Although ac- counts of the agency have been written (see Pinchot 1947, Robinson 1975, Runte 1991, Steen 1976, Williams 2000), the forests’ historical ground has been plowed with neither the depth nor frequency as has that of the parks. Specifically, there is a notable lack of reference to recreation service enterprises in the national forest histories. This is not especially surprising given that recreational use of the forests was not explicitly mentioned in the establishing legislation (Forest Reserve Act of 1891) or in the 1897 Forest Management Act directing forest management and administration. Although it is not my intent to present a detailed review of the two agencies’ historical development, it is necessary to trace that general history as it relates to the provision of recreation goods and services; the answer to why we are where we are is largely found in where we have been. Finding balance between recreation service provision and protection of natural re- sources has never been easy. It will be shown that the magnitude and form of com- mercial development on our public lands is an area of long-standing concern. Further- more, the societal benefits of public land recreation have frequently entered the policy debate. The “public good” aspect of recreation has long been recognized, and the desire to provide recreation services at a “reasonable price” has often been expressed 1 throughout the history of the public lands in the United States.1 There are some indica- tions that these public good considerations are receiving less attention in recent years; implications of such a shift should be evaluated in light of economic theory, public opinion, and historical context. This paper will trace each agency’s relevant history through a series of significant eras in the development of recreation enterprise policy. These time blocks are pre- sented alternately for the Park Service and the Forest Service to allow for concurrent historical review. This is followed by an analysis of where the Forest Service is today in the debate. The National Park Some have argued that Yosemite warrants the title of America’s first national park, Idea (1870–1915) and it very nearly was so. However, when Congress set aside the wonders of the Yosemite Valley in 1864, it did so by cession to the state of California for use as a state-managed park. (It was in 1890 that Yosemite National Park was officially estab- lished; the return of the valley to the federal government did not occur until 1906.) Thus, the claim to being the first national park rightly rests with Yellowstone. The debate leading up to the 1872 establishment of the park is not only fascinating from a historical standpoint, but also because it portends a philosophical rift that in many ways exists to the present time. Concerns expressed over states’ rights, private prop- erty rights, “land grabbing,” wasteful use of resources and land, and generally the role of the federal government might just as easily have come from a newspaper in Arizona, Utah, or Nevada in 2002 as in 1872. From the beginning, this debate often related to the impacts park set-asides might have on the entrepreneurial rights of citizens to profit from their public lands. This view was articulated by Senator Cole of California, in voicing opposition to Yellowstone Park designation: I have grave doubts about the propriety of passing this bill. The natural curiosities there cannot be interfered with by anything that man can do. I cannot see how [they] can be interfered with if settlers are allowed to appropriate them. I do not see the reason or propriety of setting apart a large tract of land of that kind in the Territories of the United States for a public park. There is abundance of public park ground in the Rocky Mountains that will never be occupied. It is all one great park, and never can be anything else. There are some places, perhaps this is one, where persons can and would go and settle and improve and cultivate the grounds, if there be ground fit for cultivation (quoted in Ise 1961: 16). Not all agreed with this line of thinking. Circumstances at Yosemite, after its cession to California, may actually have contributed to the successful vote on Yellowstone. Senator Trumball of Illinois: I think our experience with the wonderful natural curiosity, if I may so call it, in the Senator’s own state (California), should admonish us of the propriety of passing such a bill as this. There is the wonderful Yosemite Valley, which one or two persons are now claiming by virtue of a pre-emption [Homestead Land 1 The concept of public land recreation enterprises as a form of public utility is addressed in detail in Quinn (1996) and summarized in Quinn (2002). 2 Claim]. Here is a region of country away up in the Rocky Mountains, where there are the most wonderful geysers on the face of the earth; a country that is not likely ever to be inhabited for the purposes of agriculture; but it is possible that some person may go there and plant himself right across the only path that leads to these wonders, and charge every man that passes along between the gorges of these mountains a fee of a dollar or five dollars. He may place an obstruction there, and toll may be gathered from every person who goes to see these wonders of creation (quoted in Ise 1961: 17). How prophetic Trumball’s words turned out to be. Of course, in many cases public ownership has not prevented the tolls he grimly forecasted. Despite the formidable opposition, the bill establishing Yellowstone National Park was signed by President Grant on March 1, 1872. The Entrepreneurial Among the provisions of the legislation creating Yellowstone was an early recognition Spirit that the park would be a desirable location for tourist conveniences.