As to the 16,911.05 acres now rated as coal land, the report states that the estimated supply of coal therein amounts to approximately 1,500,000,000 tons, and that on the basis of existing regulations its present worth for immediate development presupposing a railroad within 15 miles, is $1,823,841.26, or an average of $107.85 an acre; that immediate development, however, is entirely out of the question, as the nearest railroad is a minimum of 63 miles distance by customary routes of travel, and feasible sites of development are yet unreached by permanent wagon roads; and that despite the enormous estimated tonnage, the adverse natural conditions, steep dips of 45° to 60°, relatively low grades of the coal, difficulties of access, and absence of market, reduce the present value of the coal land to an average price of $2.25 an acre. A copy of the report is enclosed.

The time limitation placed by Congress on the making of a report imposed a difficult task upon the Secretary of the Interior because this land is situated in the Rocky Mountains and is generally covered by snow until the late spring. Instructions for making the report were not issued by this Department until March 13, 1931, and the geologist who made the examination spent only 8 daysJune 5 to June 12, 1931-in his field investigation.

The report of the geologist was forwarded to Congress under date of July 20, 1931, and no action has ever been taken by Congress thereon. In fact, the attorneys for the Indians advise that the Indians have not sought legislation on the basis of the 1931 survey and have steadfastly refused even to consider the valuation placed on this land at that time.

It will be observed that the act of February 13, 1931 (46 Stat. L. 1092), required an appraisal as of 1931 rather than as of 1905, when the land was appropriated by the Government without the consent of the Indians-a requirement which was contrary to the ordinary rule that property so taken should be paid for at its value as of the time when taken (United States v. Chandler-Dunbar Water Power, 229 U. S., 53; Bauman v. Ross, 167 U. S. 548; United States v. The Creek Nation, 295 U. S., 103; and United States v. Shoshone Tribe of the Wind River Reservation, decided Jan. 4, 1937).

So far as I can ascertain, no appraisal of these lands was made in 1905. The United States Geological Survey, however, did make a very thorough examination in 1910 which was only 5 years after the lands were taken. This investigation was made by Geologist C. T. Lupton, assisted by A. E. Fath and W. L. Meikle of the Survey staff, between August 24 and October 15, 1910, for the purpose of obtaining accurate knowledge regarding the coal resources of the Blacktail (Tabby) Mountain coal field, Wasatch County, Utah, "in order that the public land might be classified and valued and that information concerning the commercial value of the fuel might be more complete." The results of this examination, including maps and estimates by townships of the coal tonnage present, are contained in Survey Bulletin 471-1, published in 1912.

Lupton's estimates indicate that the lands taken from the Indians contain over 1,500,000,000 tons of coal, which he states is of a rather low grade, bituminous variety.

On the basis of Lupton's findings and of recommendations of the Land Classification Board, the Director of the Geological Survey, on April 8, 1911, classified and priced, among others, lands within the Uintah National Forest in T. 1 S., R. 8 W., T. 1 S., R. 9 W., and T. 1 S., R. 10 W., Uintah special meridian, as shown on the accompanying plats from which evidence of concurrent action affecting acreage outside the national forest has been omitted.

As a result of this investigation the known coal land was appraised at approximately $834,120, and it is this amount which has been used by the attorneys for the Indians in computing the total amount of $860,098.75, stated in the bill. The computation is as follows:

15,440 acres (known coal land)..

20,783 acres (possible coal land and noncoal land) at $1.25 per acre.

Total...

With reference to the values fixed as a result of Lupton's findings, the Director of the Geological Survey, in a letter addressed to the Commissioner of Indian Affairs on January 21, 1937, states, in part, as follows:

61* * * it is clearly apparent that wide misapprehension exists as to the significance of the values placed by the Survey on the acreage that was classified as coal land in consequence of the Lupton survey. Such values represent, in fact, nothing more than the worth of the coal therein for purposes of immediate development and are subject to large discount when and if used as an index to the value 1 Not printed.

of the land for any other purpose. They represent prices which one actively engaged in the mining and marketing of coal from the area could afford to pay for the land with reasonable expectation of the return of his investment and necessary expenses within the operating life of the property purchased. As they were designed to prevent the speculative purchase and witholding from development of Federal-owned coal lands, those values represent present worth only as of the date commercial development of the coal involved becomes economically feasible. For the coal acreage here involved such date has not yet arrived and was even more remote in 1905 than at present. It is, in fact, still so far in the future as to be subject only to conjecture, with some room for doubt that it will ever arrive. "Commercial valuation practice with regard to coal land commonly concedes to acreage underlain by coal, which will remain undeveloped for 40 years or more, no tangible value above that of its surface utility. As all but possibly a few acres of the coal in the Tabby Mountain field is in the category of coal the feasible development of which is far more than 40 years in the future, the absurdity of contending that its worth to anyone in 1905, 1911, 1931, or even 1937 is the appraisal price of the 1911 classification is patent to any rational person.

"As representing more evidence concerning the occurrence of coal in the Tabby Mountain field than is observable in the area involved today, the Lupton report is, so far as I am aware, the only published source from which the elements requisite to an appraisal of the coal values present as of any given date are derivable. Without core drilling at prohibitive costs further field examination could add practically nothing to the information therein contained. For the administrative purpose for which they were made the valuations placed on the coal acreage on the basis of Lupton's findings are fair and reasonable, though they are exhorbitant and excessive to the point of absurdity as a measure of the present worth of the coal rights involved to the Federal Government or to any other possible purchaser."

In view of the above, it appears that the actual value of the known coal land in 1905 was considerably less than the appraisal price of the 1911 classification. It does not necessarily follow, however, that the Indians would be overpaid by an appropriation of $860,098.75. They have already been paid the sum of $1,217,221.25 for part of the lands taken, so that H. R. 4399 would bring the total cost to the United States to $2,077,320 for the 1,010,000 acres taken in 1905. This is an average rate of about $2.06 per acre, a figure which is not excessive, considering the character of the land, and the amount of income which the United States has received from timber sales, grazing fees, etc., during the period 1905 to June 30, 1936. These receipts amounted to about $774,587.31, from which the Indians received cash payments of $63,783.02. In addition to the coal lands, the forest contains about 500,000,000 feet, board measure, of standing timber, most of which is lodgepole pine or Engelmann's spruce.

* *

Section 1 of the bill provides that the sum of $860,098.75 "shall be in full satisfaction as to claim for principal of said Indians against the United States with respect to much lands *" (italic supplied), thus apparently leaving the way open for a claim for interest at some later date. In the case of United States v. The Creek Nation, decided April 29, 1935 (295 U. S. 103), the Supreme Court of the United States held, with respect to the lands of the Creek Nation taken by the United States, that * * just compensation to be awarded now should not be confined to the value of the lands at the time of the taking but should include such addition thereto as may be required to produce the present full equivalent of that value paid contemporaneously with the taking. Interest at a reasonable rate is a suitable measure by which to ascertain the amount to be added."

I am of the opinion that the sum of $860,098.75, added to the sum of $1,217,221.25 paid the Indians in 1931, would be a liberal settlement and should be considered as in full satisfaction of the claim for principal and interest. If the bill is to receive favorable consideration it should be amended to show clearly that the aggregate payment of $2,077,320 is to be in full satisfaction of the claim of these Indians for principal and interest with respect to the 1,010,000 acres taken in 1905. This may be done by placing a comma after the work "sum" in line 1, page 2, of the bill, and changing lines 2 and 3, page 2, to read:

"Together with the sum of $1,217,221.25 heretofore paid the said bands of Indians pursuant to the act of February 13, 1931 (46 Stat. L., 1092), shall be in full satisfaction as to the claim for principal and interest of said Indians against

the United States with respect to the 1,010,000 acres of land taken from them by Executive order of July 14, 1905."

This would close the claim of the Ute Indians for the land in question. The Acting Director of the Bureau of the Budget has advised that the proposed legislation would not be in accord with the program of the President.

Sincerely yours,

CHARLES WEST, Acting Secretary of the Interior.

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"THE STORY OF THE CONSTITUTION” TO EACH
NATURALIZED CITIZEN

JUNE 15, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mrs. O'DAY, from the Committee on Immigration and Naturalization, submitted the following

REPORT

[To accompany H. R. 7077]

The Committee on Immigration and Naturalization, to whom was referred the bill (H. R. 7077) to provide for the distribution to each naturalized citizen at the time of the issuance of his certificate of citizenship of a copy of The Story of the Constitution, after considering the same, report it back to the House with an amendment and recommend that the bill as amended do pass.

The purpose of the bill as its title indicates is for the Government to give to each alien who becomes a citizen a copy of the publication The Story of the Constitution edited by the Director General of the United States Sesqui-Centennial Commission.

There appeared at the public hearing of this committee the author of the bill, Congressman McCormack and expressed his high opinion of the publication and stated he believed that the Government in presenting a copy to the alien about to become a citizen would have an affirmative effect upon their minds.

The amendment offered by the committee and adopted is as follows: In line 10 after the word "citizenship" add the following: "Provided the cost of each book shall not exceed 10 cents a copy."

Your committee unanimously report the bill favorably with the amendment.

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75TH CONGRESS HOUSE OF REPRESENTATIVES 1st Session

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REPORT No. 1024

REDUCTION OF COINS ISSUED IN CELEBRATION OF SAN FRANCISCO-OAKLAND BAY BRIDGE

JUNE 15, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. SOMERS of New York, from the Committee on Coinage, Weights, and Measures, submitted the following

REPORT

[To accompany H. R. 4087]

The Committee on Coinage, Weights, and Measures, to whom was referred the bill (H. R. 4087) reducing by 100,000 the number of 50-cent pieces to be coined in celebration of the opening of the San Francisco-Oakland Bay Bridge and authorizing the coinage of 50cent pieces celebrating the opening of the Golden Gate Bridge, having considered the same, report favorably thereon and recommend the bill, as amended, do pass.

The amendments are as follows:

Page 2, line 2, strike out the word "a" and insert in lieu thereof the word "one"."

Page 2, line 3, after the word "mint", insert the word "only". Page 2, line 20, after the word "bank", insert a comma and the words "subject to the approval of the Director of the Mint".

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