To sell its surplus in the United States the Air Service set up field disposal agencies at Boston, New York, Buffalo, Chicago, Detroit, and Dayton. The property declared surplus was valued at approximately $115,000,000. Up to the present (July, 1921) goods to the value of $97,000,000 have been sold from this surplus, and there is an unsold residue valued at $18,000,000. The average recovery has been 62 per cent of the cost. The disposition of the property acquired by the United States Spruce Production Corporation in the forests of the Pacific Northwest was delayed by the congressional investigation of the affairs of that official organization. The cost value of all salvageable property was calculated at approximately $19,000,000, of which $7,000,000 represented the cost of three railroads for hauling logs. The rest of the investment was represented by sawmills, roads, hotels and barracks for woodsmen, hoisting engines, drying kilns, and nearly 100,000 other items, among which were 22,000,000 feet of lumber produced and on hand. The lumber of commercial grades was promptly sold, and the Air Service arranged to take over the 3,088,000 feet of airplane lumber stock, for a consideration of approximately $1,000,000. The sale of the remaining property has gone on slowly, and the recovery has been low in ratio to the original cost. The sale of surplus engineering materials brought to the Government the unusually high average recoupment of 87 per cent of the cost of manufacturing the supplies. The reason is that the largest and most valuable part of the surplus consisted of railroad construction materials and rolling stock. The railroads of the world, and particularly those of Europe, had been neglected during the war, and their rejuvenation had become a necessity even paramount to that of reconstructing general industry. Such governments as those of France and Poland were glad of the chance to secure American locomotives, cars, and cranes at the cost of their manufacture. The largest single sale of engineer supplies was made to the French Government, which paid approximately $63,000,000 for 485 freight locomotives and nearly 20,000 freight cars. By the spring of 1920 surplus engineering supplies which had cost $128,000,000 had been sold for about $110,000,000. Large quantities of excavating machinery and other contractors’ equipment were transferred to the Bureau of Public Roads.