State line. It constitutes a part of the great Salt Lake Desert, is devoid of timber or grass and destitute of any value save for its possible nonmetallic mineral contents. The mineral contents are known to be principally potassium and accompanying minerals. Some years ago, under the terms of the potash act of 1917 (40 Stat. 297; U. S. C. title 30, sec. 141, et seq.), numerous applications for potash prospecting permits were filed, covering, in part, lands described in this bill. It was established by the permittees that the permit areas were underlain at shallow depths by a brine containing potassium and its various compounds and associated minerals. As a reward for discovery of potash, and pursuant to the terms of said act of 1917, the permittees were granted patents for one-fourth of their permit areas, said patents being in fee simple. They also availed themselves of the right to request leases for other portions of their permit areas, which leases would provide for payment of a royalty upon potash production, to the United States. The potash prospecting permits, considering each by itself, were properly issued, as were also the patents granted as a reward for discovery of potassium. However, the actual effect of the patents already issued, and of the leases the right to which has already been recognized by the Interior Department, considered as a whole, bring about an undesirable and unsatisfactory condition, both from the standpoint of the Government, and from that of the parties in interest as well. Each permit area and each patented area was in itself in reasonably compact form; but a mapping of these areas shows that the effect of the patents and of the leases which have been earned, is to place under control of private owners, or lessees, comparatively long strips of land, which strips are divided, more or less, by areas left in public ownership, these areas so left in the public domain varying in width from one-fourth to 2 miles. Operations for production of brine upon the patented or lease areas would at least tend directly to drain the neighboring public lands, which circumstance would necessarily detract from the value of such neighboring lands as a source of potash production by others, operating under leases authorized by the potash act of 1927. The general effect of this bill would be to confer upon the Secretary of the Interior authority "in his discretion" to exchange land involved, practically tract for tract, or acre for acre, for the purpose of consolidating the areas held either under patent or under leases, into as compact a body of land as present conditions of title make possible. As above mentioned, legal titles and rights were acquired under said potash act of 1917, which was the first of the mineral leasing acts to be enacted. Administration of that act of 1917 was necessarily somewhat in the nature of an experiment. Experience convinced the Interior Department that an amendment of said act was required as a matter of public concern, and the later act, dealing with public lands believed to possess value for potash, approved February 7, 1927 (44 Stat. 1057; U. S. C. title 30, sec. 281 et seq.) was enacted. It is needless to say that the later act is now the controlling one in the administration of public lands believed to be valuable for potash; but rights and titles secured by compliance with the earlier act, necessarily remained unaffected by the act of 1927. The later act vests in the Secretary of the Interior greater discretionary power in its administration, and makes no provision for the grant of any patent as a reward for discovery. The prospector's only reward under this later act is the right to a lease for production of the mineral, with a royalty reserved to the United States. As appears from the report of the Secretary of the Interior, an agreement has been reached between the Interior Department and the various lease applicants, that the leases, although earned by compliance with the terms of the earlier act of 1917, are to be issued under the later potash act of 1927. In addition to authorizing reconveyance to the United States of lands now held under patent title and the issuance of other patents for lands of like area and value, section 3 of the bill further provides that a similar exchange of lands may be effected by grant of potash leases, in consideration of surrender of such leases or rights to leases, already held by private persons. Other provisions of section 3 of the bill pertain to what may be termed the detailed procedure incident to administration of the act. As shown by the language of the bill, it refers to lands known or believed to possess value for the production of potash. Domestic production of potash has been for years past a matter of concern to Congress, and appropriations aggregating considerable amounts have been made from time to time for use by governmental agencies, such as the Geological Survey and the Bureau of Mines, in exploration for potash deposits which might be developed into sources of commercial production. The importance of this domestic development of potash rests primarily in its extensive use as a necessary ingredient of commercial fertilizer, although in time of war its need also as an ingredient in making of explosives was brought home to this country. It was developed at the hearing that no actual commercial production of potash has been secured from the lands which are to be reconveyed or surrendered to the United States as a basis for the proposed exchange of lands, so that it is plain that the lands so to be reconveyed or surrendered are still virgin potash-bearing lands. Produced at the hearing were copies of descriptions of all the lands, taken from the official township surveys, establishing that all the lands coming within the general scope of the bill are of substantially like character lying in an alkali desert. As set out in section 1 of the bill, the proposed exchange of lands will effect the dual purpose of allowing a consolidation into a compact area of lands now in private ownership or control, thereby and to that extent giving to private interests a preferable operating unit, and so aiding in the development and operation of the lands; and, also will leave in the public domain areas not cut up or isolated by the presence of intervening lands held in private ownership. This change will be of public interest in that the lands so held by the Government will be advantageously located for leasing in solid or compact areas to others who may desire to enter upon development of this important industry of potash production. As will be observed, the Secretary of the Interior has approved the memorandum submitted to him by the Commissioner of the General Land Office, said memorandum stating: This office is of the opinion that the enactment of this bill would serve public interests. * * * I therefore recommend favorable action on the proposed legislation. The report of the Secretary of the Interior with accompanying memorandum by the Commissioner of the General Land Office is herein set out in full for the information of the House, as follows: DEPARTMENT OF THE INTERIOR, Washington, January 5, 1932. Hon. JOHN M. EVANS, Chairman Committee on the Public Lands, House of Representatives. MY DEAR MR. CHAIRMAN: In response to your request of December 16, 1931, for a report on H. R. 5062, which is a bill that would authorize the exchange of potassium-bearing lands in Tooele County, Utah, between the United States and private owners, I transmit herewith a memorandum on the subject that has been submitted by the Commissioner of the General Land Office. After a review of the proposed measure, I agree with the commissioner. RAY LYMAN WILBUR, Secretary. DEPARTMENT OF THE INTERIOR, Memorandum for the Secretary: GENERAL LAND OFFICE, Washington, December 31, 1931. Reference is made to the request of Hon. John M. Evans, chairman Committee on the Public Lands, House of Representatives, for a report on H. R. 5062, a bill to authorize the exchange of potassium-bearing lands in Tooele County, Utah, between the United States and private owners. The proposed legislation provides as follows: "In order to encourage and facilitate the development of lands in Tooele County, Utah, believed to contain potassium and associated minerals in commercial quantities, and in order to make it possible for the owners of land of that character in said county to consolidate their holdings into substantially compact form suitable for economic development, and in order to restore to public ownership lands in such compact form as to allow their economic development for said minerals * * * The lands to come withing the scope of this bill, as the basis for an exchange between private owners and the United States are decribed by legal subdivisions in section 2 of the bill; the lands thus described are those in which title may be reconveyed to and accepted by the United States; then follows a description by legal subdivisions lands which may be conveyed by patent. Several years ago numerous potash permits were issued by the department to parties under the then existing potassium law of October 2, 1917. It was established by the permittees that the lands embraced in the permits were underlain at shallow depths by a brine containing potash and associated minerals. In accordance with section 2 of the set of October 2, 1917, patents were duly issued to the various permittees for one-fourth the area in the permits. The permittees also availed themselves of the right to apply for potash leases for other portions of their permit areas, and rights to leases have been awarded to the parties by the department. The leases have not as yet been approved, but an agreement reached between the department and representatives of the various lease applicants that the leases, if and when executed, shall be under the later potash act of February 7, 1927, and the form of lease has been approved by the department. It will be noted from the attached diagram that the lands patented and the area sought by leases places under control of private ownership comparatively long strips of land, said strips being divided by areas left in the public domain, varying in width from one-quarter of a mile to 2 miles. Operations for the recovery of the potassium brine and associated minerals from the patented lands and proposed potash leases would tend to directly drain the adjoining vacant public lands, thereby reducing the value of such public lands as a source of potash production by others. The general effect of H. R. 5062 would be to confer upon the Secretary of the Interior discretionary power to exchange the land involved, tract for tract or acre for acre, for the propose of consolidating the areas held by patent or under leases, into as compact an area as present conditions of title may warrant. This office is of the opinion that the enactment of this bill would serve public interests. It is not doubted that the interests of the private parties would likewise be served by this legislation, but this in no way detracts from the benefit which it is believed would accrue to the United States from enactment of this bill. I therefore recommend favorable action on the proposed legislation. C. C. MOORE, Commissioner. TO AUTHORIZE THE SECRETARY OF THE INTERIOR TO ISSUE PATENTS FOR LANDS HELD UNDER COLOR OF TITLE JANUARY 19, 1932.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. CHAVEZ, from the Committee on the Public Lands, submitted the following REPORT [To accompany S. 1588] The Committee on the Public Lands, to whom was referred S. 1588 to authorize the Secretary of the Interior to issue patents for lands. held under color of title, having considered the same, report it favorably to the House and recommend that it do pass without amendment. The bill is substantially identical with the act approved June 8, 1926. It authorizes the Secretary of the Interior to issue a patent or patents to a tract or tracts of public land in the State of New Mexico, not exceeding in the aggregate 160 acres, in cases where such land has been held in good faith and in peaceful, adverse possession by a citizen of the United States, his ancestors or grantors, for more than 20 years under claim or color of title, upon which valuable improvements have been placed and/or some part thereof has been reduced to cultivation, such patent or patents to issue upon payment of $1.25 per acre. The bill reserves all minerals to the United States. Upon the enactment of the act approved June 8, 1926, many holders of small claims in New Mexico, under color of title, proceeded to submit proof in quest of patent. Some completed their proofs and secured patents. Others were in process of so doing when the general act approved December 22, 1928, became a law. The Secretary of the Interior held that such general law repealed, by implication, the special act applicable to New Mexico, and thus declined to issue further patents at the price of $1.25 per acre, but exacted payment of the appraised value of the land as provided in the general act. This created a distinction among claimants occupying identical positions, each having all the elements of equity possessed by the others. It is the view of the committee that a holder of a small claim in New Mexico, not exceeding 160 acres, which has been held in good faith and peaceful, adverse possession, either in person or ★ 1-20-32 together with his ancestors or grantors, for more than 20 years, has placed valuable improvements thereon and/or has reduced a part thereof to a state of cultivation, is in equity entitled to a patent therefor upon payment of the customary price of $1.25 per acre. A letter, addressed to the chairman of the Committee on Public Lands and Surveys of the Senate, from the Secretary of the Interior is herein set out in full for the information of the House, as follows: Department of the Interior, Washington, January 5, 1932. Hon. GERALD P. NYE, Chairman Committee on Public Lands and Surveys, United States Senate. MY DEAR MR. CHAIRMAN: In compliance with your request of December 21, 1931, for an opinion as to the merits of S. 1588, which is a bill that would authorize the Secretary of the Interior to issue patents for lands held under color of title, I transmit herewith a memorandum on the subject that has been submitted by the Commissioner of the General Land Office. After a review of the proposed measure, I agree with the commissioner. RAY LYMAN Wilbur, Secretary. DEPARTMENT OF THE INTERIOR, Reference is had to the attached letter from Hon. Gerald P. Nye, chairman Committee on Public Lands and Surveys, United States Senate, transmitting for report S. 1588 to authorize the Secretary of the Interior to issue patents for lands held under color of title. The bill proposes to authorize the issuance of patents for lands in New Mexico under certain circumstances when the lands have been held under claim or color of title for more than 20 years on the payment of $1.25 per acre, with a reservation of the coal and all other minerals to the United States. This bill is identical with S. 4308, as amended, on which the Committee on Public Lands and Surveys submitted a favorable report, No. 884, in the second session of the Seventy-first Congress, notwithstanding the report of this department that there was no necessity for the enactment of the bill because of the general color of title act of December 22, 1928 (45 Stat. 1069), and the bill passed the Senate June 9, 1930. Said bill is similar in the matter of purchase price to the act of June 8, 1926 (44 Stat. 709). However, the said act of June 8, 1926, provided for the patenting of lands not known to be mineral, whereas the said bill provides for a reservation to the United States of coal and other minerals contained in the land. The said act of June 8, 1926, related only to New Mexico. By the act of December 22, 1928 (45 Stat. 1069), similar provision (with reservation to the United States of coal and other minerals contained in the land) was made for the purchase of public land held under color of title without reference to any State, the purchase price to be "not less than" $1.25 per acre. The regulations issued under said act, contained in Circular 1186, dated April 15, 1929, provide for the payment of a purchase price to be fixed by appraisement in accordance with the act and hold that the said act impliedly repealed and superseded the local act of June 8, 1926 (supra), relating only to New Mexico. The effect of the enactment of the said bill would be to require New Mexico claimants to pay $1.25 per acre for lands purchased under color of title, whereas claimants in other States under the said act of December 22, 1928, would still be required to pay an appraised price of not less than $1.25 per acre. I see no good reason for this lack of uniformity. In view of the foregoing it is recommended that the proposed bill be not enacted into law. C. C. MOORE, Commissioner. О |