Imperial Valley press., 1913-05-14
Flescsd By Iehspks
~ A rs>

The action OF the United States Dis
trict Judge Wolverton OF Portland,
Or. in cancelling the patent to
about 3O,0O0.O00 acres Of rich timber
land lying along the line of the Ore
gon and California Railway, in the
action brought by the government
against the Southern Pacific, is de-
clared locally to mean enormous
losses to Los Angeles investors.
Within the past few years South.
trn California has been full Of real
estate manipulators engaged in selling
i60-acre locations in this land at
prices ranging from $3.50 to $500.
Officers Of the local field division Of
the land office have list Of hun
dreds Of names of men who have
put up Their money for locations from
Marysville to Portland. Los Angeles
contributed more than 200 OF them.
Special Agent George w. ComerfOrd
estimates that in San Diego alone
more than $4,000 has been handed
over to lOcaters.
The contract between the agent and
the investor provides that the land
could be had at $3.50 an acre. 1t
also was agreed that the applicant
should give the locator the exclusive
option to purchase the timber on the
property, the option to become Oper-
alive the day the applicant acquired
title and continue for eight months.
These applications for lands were
turned over to the Southern Pacific
hot cnrnnrnfinn ,,pnpontIxy ad
them down for two reasons; the title
to the land was in dispute and be-
cause it was absurd to sell for $3.50
an acre of land that is really worth
S1OO for the timber alone.
The locators would agree, 1t is al
legged, to buy the timber on the land
in. whose location they were interested
at prices that would leave the land
free Of expense to the settler, but this
agreement was not to take effect un-
til the locator had received title to his
property-which he had no chance Of
doing.
Some years ago. when number Of
locations had been made, Congress
passed a law confirming title to lot
Of this land, as it appeared that the
investments were made in good faith,
but since that day there has been no
chance to get any part Of the area
that was given to the Oregon and
California Railroad by Congressional
grant This grant gave the company
every odd section within twenty
miles Of the right of way under the
provisions OF governmental policy
to encourage the building Of railroads
through that section of the country.
Afterward action was taken by the
government to declare the patent in
valid. This is the case decided by
United States District Judge VOL
verton.
There was no possible chance for
investors to get the land under any
circumstances. for by act OF Congress,
August 90, 1912, it was withdrawn
from all forms Of public entry. This
was done in anticipation Of the prob
able outcome of the case that has just
been decided.
The numerous real estate men who
have dealt extensively in these loca-
tions have, so far as the knowledge Of
points distant from Los Angeles.
lHtN uFOpp6u lHtO Tic Guy, HlTtu utSh
room for short time and then pro-
ceeded to get busy. The number Of
victims who have invested in the
scheme cannot be even approXimated.
One thing is certain and that is what
ever the size Of the investment it is
lost irrevocably.
The courts have decided that the
land reverts 10 the government and
it cannot be made subject to entry
by anybody. If Judge Wolverton
should be reversed and the land
should be patented to the Southern
pacific railroad is not at all likely
that the company would sell it at the
rate Of $3.50 per acre.
Gratz w. Helm, chief of the field
division of the land office, declares
that the fraud is the boldest ever un-
covered in this part of the country.
How people could be induced to put
their money into a scheme OF this
character he cannot understand, yet
The records show that thousands Of
dollars were taken out of Los An
geleS