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PAYMENTS TO STATES FROM SALES OF PUBLIC LANDS

Mr. SCRIGHAM. Going now to page 54, we have an item as follows:

Payments to States of 5 per centum of proceeds from sales of public lands For payment to the several States of 5 per centum of the net proceeds of sales of public lands lying within their limits, for the purpose of education or of makir public roads and improvements, $2,000: Provided, That expenditures hereunde shall not exceed the aggregate receipts covered into the Treasury in accordance with section 4 of the Permanent Appropriation Repeal Act, 1934.

Mr. Havell. The justification in support of that item is as follows

The appropriation is needed to meet the Government's obligation to the State under various acts of Congress providing grants for the purpose of education, or el making public roads and improvements.

Section 13 of the act of February 22, 1889 (25 Stat. 680), which is similar to the other acts providing for payments to States, reads as follows:

“That five per centim of the proceeds of the sales of public lands lying withir said States which shall be sold by the I'nited States subsequent to the admissio of said States into the l'nion, after deducting all the expenses incident to the same shall be paid to the said States, to be used as a permanent fund, the interest a which only shall be expended for the support of common schools within Nak States, respectively."

The estimate of $2,000 for the fiscal year 1938 is the same as the appropriatior for the 1937 fiscal year.

PAYMENT OF PROCEEDS OF SALES OF coos BAY WAGON ROAD GRASI

LANDS AND TIMBER

Mr. SCRIGHAM. The next item covers the payment of proceeds of sales of Coos Bay Wagon Road grant lands and timber, and is a follows:

Payment of proceeds of sales of Coos Bay Wagon Road grant lands and timto For payment of 25 per centum of the balance of the proceeds from sales of the Coos Bay Wagon Road grant lands and timber within each of the countieer. Coos and Douglas, Oregon, after deducting the accrued taxes in said counties ar a sum equal to $2.50 per acre for the land title to which revested in the t'nita States pursuant to the Act of February 26. 1919 (40 Stat., p. 1179), to be paid t. the treasures of the county for common schools, roads, highways, bridges, a. port districts, $13,000: Prorider, That expenditures hereunder shall not eteen the aggregate receipts covered into the Treasury in accordance with section 4 the Permanent Appropriation Repeal Act, 1934.

Mr. HAVELL. Our justification is as follows:

The appropriation is needed to carry out the provisions of section 5 of the nel of February 26, 1919, by which act title to certain lands in Coos and Doucis Counties, in the State of Oregon, was revested in the l'nited States (40 Stat 1150. Section 5 rads;

"That all moneys rrived from or on account of said lands and timber and it timber thervon under the provisions of this Act shall be deposited in the Train of the l'nited States in a miparate fund to be designated 'The Coos Bar Waxis Road grant fund', wl;ish fund shall be disposed of in the following mantap A separate account shall be kept in the General Lard Office of the sales of a lands and timber within each of the two counties (00s and Douglas, and after tt pns inom much wiles amount to a women to that applied to pay the area tares in that coints and a sim equal to 2 30 per acre for each acre of much la: therla title te) which is reveal in the United States pursuant to the pros.

t. turnty-fic per centum of all other money Neived in shaid lak. shall be paid to the treasures of the county in which the lands mod arr nitrates for common schools, mada, highways, bridkis, ar list 1. trirts, to be apports by the count courts for the everal punisms alove mentioned."

The Government has been rimburi as provided for by the above retur, and the estimate is to provide for payment to the counties 23 percent of the pr. ceeds from sales of lands and timber.

The estimate of $15,000 for the fiscal year 1938 is an increase of $13,000 over the appropriation of $2,000 for the 1937 fiscal year. The increase is due to berased receipts.

PAYMENTS TO CERTAIN COUNTIES IN OREGON IN LIEU OF TAXES ON

OREGON AND CALIFORNIA GRANT LANDS

Mr. SCRUGHAM. The next item provides: Payments to certain counties in Oregon in lieu of taxes on Oregon and California ant lands: For payment to the several counties in the State of Oregon, pursuant

the Act of July 13, 1926 (44 Stat., p. 915), amounts of money in lieu of the axes that would have accrued against the revested Oregon and California Railroad 1 many grant lands if the lands had remained privately owned and taxable, $2310: Provided, That payments to the counties shall not exceed the aggregate receipts covered into the Treasury in accordance with section 4 of the Permanent Appropriation Repeal Act, 1934.

Mir. HAVELL. That item is justified by the following statement:

The appropriation is needed to make payments to the counties in accordance mith sertion 3 of the act of July 13, 1926 (44 Stat. 915), which provides that,

**b, or before the 1st day of October of each year after 1926 the Secretary of olup Treasury, upon the order of the Secretary of the Interior, shall pay to the eral counties amounts of money equal to the taxes upon said lands within

pumanties, to be ascertained, computed, and reported in the same manner as or the preceding years, until all charges against said 'Oregon and California land

a fund' shall have been liquidated and the said fund shows a credit balance sabie for distribution under section 10 of the Act approved June 9, 1916."

Tu lands involved were in the ownership of the Oregon and California Railroad C intal forfeited to the Government by the act of June 9, 1916 (39 Stat. 218), # 1 wire on the tax rolls of the States. They were the basis for the floating of ndise by the municipal or other authorities for State or local needs. Through

provisions of the forfeiture act title to these lands revested in the United ale thus depriving the State, or subdivisions thereof, of the revenues pret ely obtained from taxation. Congress made provision by the acts of June 9, 916 and July 13, 1926, supra, for revenues to offset the loss.

The timate of $250,000 for the fiscal year 1938 is the same as the appropriation bur the 1937 fiscal year.

PATMENT TO OKLAHOMA FROM ROYALTIES, OIL AND GAS, SOUTH HALF OF

RED RIVER

Wr. SCRIGHAM. The last item covers royalties on oil and gas to (klahoma in connection with the south half of the Red River. That 1.Pm provides:

Parent to Oklahoma from royalties, oil and gas, south half of Red River: For as met of 37 per centum of the royalties derived from the south half of Red Pusat in Oklahoma under the provisions of the Act of March 4, 1923 (U. S. C., ** y) me 233), which shall be paid to the State of Oklahoma in lieu of all State arwal taxes upon tribal funds accruing under said Act, to be expended by the

te in the same manner as if received under section 35 of the Act approved m usry 25, 1920 (L'.S. C., title 30, sec. 191), $8,000: Provided, That expenditures

runder shall not exceed the aggregate receipts covered into the Treasury in scordance with section 4 of the Permanent Appropriation Repeal Act, 1934.

Mr. HAVELL. We desire to submit in justification of that item the following statement:

The joint resolution of Congress approved June 12, 1926 (44 Stat. 340), provides for payment to the State of Oklahoma 3774 percent of oil and gas royalties received from the south half of Red River, Okla. The payment is in lieu of all State and local taxes upon Kiowa, Comanche, and Apache tribal funds received from such lands under

139751-31--pt. 1- 10

the act of March 4, 1923 (42 Stat. 1448), and is to be used by the State for the construction and maintenance of public roads, or for the support of public schools or other institutions of learning. Except for the resolution cited, the 37percent would go to the Kiowa, Comanche, and Apache Indians, to whose account the other 62% percent of the royalties is credited.

The $8,000 estimated for the fiscal year 1938 is 37% percent of the estimated receipts from royalties for the fiscal year 1937 and is $3,000 less than the appropriation for the 1937 fiscal year.

TUESDAY, MARCH 30, 1937. BUREAU OF RECLAMATION STATEMENTS OF JOHN C. PAGE, COMMISSIONER; GEORGE 0. SANFORD, GENERAL SUPERVISOR OF OPERATION AND MAINTENANCE; W. F. KUBACH, CHIEF ACCOUNTANT; AND W. R. NELSON, ENGINEER

GENERAL STATEMENT

Mr. SCRUGHAM. We will now begin the hearings on the appropriation for the Bureau of Reclamation. Mr. John C. Page, the ('ommissioner, will be the first witness.

Mr. Page, have you any general statement that you wish to make covering the scope and importance of Federal reclamation, and the general plan for conservation of natural resources?

Mr. Page. Mr. Chairman, I have a number of statements prepared here, some of which are too long to read, at this time, but I would like to have them go in the record.

Mr. SCRIGHAM. Just give a condensation of your statement, and then the full statement will be put in the record.

Mr. PAGE. I submit the following general statement in justification of the program.

WORTH OF RECLAMATION POLICY PROVED

The value of the Federal Reclamation policy in knitting together the western third of the Nation, in sustaining the people and in stabilizing the agriculture of the far Western States, in moderating the effects of droughts and similar disasters has been demonstrated repeatedly in recent years The 1933 crop season was one of about normal precipitation throughout the West. It followed an acute drought of the previous year, and preceded the drought of 1936 much more serious than any in a generation. There was sufficient water for all Federal reclamation projects in 1935, just as there had been during the drought of 1934, and minor water shortages occurred in a few projects only in the 1936 irrigation season. Federal projects are prosperous. Only two projects went into the 1936 season with low reservoirs, and the stored water supplies for there was suthcient to provides sufficient water for reasonable erop yields.

SETTLEMENT AND DEVELOPMENT During the calendar year 1935 the area irrigated with water supplied frorn works constructed by the l'nited States was 2,935,616 acr*, and the area cropped was 2,861.136 acr*, representing increase of gw, 411 acres and 104,43% acne, respectively, over the areas irrigated and cropped in calendar year 1934. The total value of crops grown was $106,741,294, an increase of $3,437,580) over the value reported for 1934, and $22,349,361 more than the total for calendar year 1933. Although final figures, to slow the value of crops grown during 1936 on projects constructed by the l'nited States, are not yrt available, prehminary

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gutes indicate that the total value of the 1936 crops will be substantially

than those for 1935 due to increasing prices received for farm products, ered water supplies, and the irrigation and cropping of more of the lands

breh water has been made available. The accumulated value of crops grown - pelamation projects since 1906, when water was first made available, amounts $2,177.965,009, exclusive of 1936 crops. All of the above crop valuations

de production from lands which also received water under Warren Act and Parul contracts. Tutwithstanding the acute drought which prevailed on adjacent and surround

unas during 1936, water supply conditions, as the result of reclamation de

onents, were generally favorable on Federal projects, two notable exceptions .:. projects in South Dakota and Nebraska and even on these projects the

to of water conservation were strikingly evident in comparison with condi"in nearby communities where similar provisions were lacking. To oupplement the number of available public land farm units previously

ned to entry on a number of projects, the settlement of which had progressed #*factorily, public notices were issued during the fiscal year ended June 30, . announcing the availability of 170 public land farms, embracing approxi

y 10,000 acres, on the Owyhee (Oregon-Idaho), Vale (Oregon), Sun River stansi, Belle Fourche (South Dakota), and Shoshone (Wyoming) projects -relamation homestead entry. Many of these new farm units were taken up - in addition, numerous tracts of private land were acquired by settlers on

one and other projects. On the Vale and Owyhee projects about 1,000 acres - sold by the Vale-Owyhee Land Settlement Board. Recently, thousands of Seseekers, principally from the drought areas, many of whom are experienced m ation farming, have visited reclamation projects, particularly in Washneo and Oregon, to investigate settlement possibilities.

The following table will give a good picture of conditions on the Sujects during the last calendar year, 1936: .

Comparative crop results on Government projects for 1935 and 1936 TUTE Act lands excluded because complete reports from these are not available as yet for 1936)

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