East Oregonian : E.O. (Pendleton, OR) 1888-current, 1908-02-24
REPORT ON OREGON LAND GRANTS FILED
At WASHINGTON

The report of B. D. Townsend. spe-
cial gent Of the government for the in
vestigatlon of the Southern Pacific
land grants in oregon, has just been
filed at Washington and shows some
nagrant violations of the terms Of the
grant by the company.
Portions of the report showing
some OF the violations of the grant are
as follows:
The provision of the grant restrict
ing the number of sales have never
been respected. Lands have been
sold to any person, whether settler or
speculator, in as large quantities as
possible and at the highest price pos
sible. In making sales the railroad
company has always observed the law
of supply and demand and has never
obeyed the law of congress.
Substantial violations of the terms
of the grant occurred from the very
beginning. Among the first convey
ances executed in 1872 several instan-
ces occur where land was sold at pric-
es largely in excess of $3.50 per acre,
sometimes as high as $40 per acre. In
1874 three instances are found of con-
veyances to a single purchase of
quantities exceeding 1000 acres each.
These violations continued throughout
the history of the grant
Sells TO Timber Spectators.
When the Southern Pacific system
secured control of the land grants the
first thing they did was 10 organize
an effective land department. Land
examiners and timber cuisers were
employed and a force set to work to
ascertain and appraise the value of
each specific tract of land contained
in the grant; this had never been
done before.
About 1890 some of the old and
experienced timbermen Of Michigan,
Wisconsin and Minnesota were at
tracted by reports as to the timber
lands Of oregon. There suddenly
arose a tremendous demand for lands
by wealthy timbermen and specula-
tors in the east, The raiload COM
pany was quick to see It's opportunity
to profit by disposing of lands con-
tray to the terms of the grant. 1t i'm
medately began to make sales in
quantities ranging from 1000 to many
thousand acres.
Late I'm 1902 the railroad company
adopted a new policy and perman-
emily withdrew all of its lands from
sale. There then remained in its
hands approximately 100000 acres
most Of it in violation of the terms
Of the grant, it resolved upon the
plan Of asserting an absolute. unqual-
flied and permanent estate in the
balance Of grants in its own favor.
Various excuses for this step have
been given from time to time. In a
public speech at Oakland during Sep
tember, 1907, Mr.. Hartman admitted
that this policy was intended to be
permanent.
OF s13.90S acres sold by the rail-
road company, only 127,41S acres
were sold within the limitations Of |
quantity and purchase price prescrib-
tN u. Ll4F grant anu OlJsSEo acres |
were conveyed or sold in quantities
exceeding 100 acres, Of which 363,-
991 acres were conveyed or sold to
IS purchasers in quantities exceed
ing 1000 acres to each purchaser
since the year 1897.
Great Incease In Value.
The total assessed valuation of the
land grant for the year 1907 was
approximately s18.0OO,OOO, whereas
prior to the year 1902 the assessed
valuation had never exceeded $4,000
900. Of the total taxes paid by the
railroad company on account Of its
land grant, from 1879 to the present
time more than one-half has been
paid since 1902.
II the conditions Of the grant had
been observed under no circumstan-
ces could the raIload companies have
enjoyed a bounty exceeding approxi-
mately $S0GO,0OO from the dispose
tion OF the lands which II has receiv-
received II has already realized ap-
proximately S4,5O0,O00 and now as
serts absolute ownership TO property