Daily capital journal. (Salem, Oregon) 1903-1919, 1915-12-01
S. ?. PREPARED TO
MAKE FINAL TERMS
ON 0. {. c. LANDS
Railroad Company Sill Ad-
heres to Every Single Point
Gained In Court
OFFICIALS AUTHORIZED
TO RECEIVE COMPROMISE
Assistant General Manager
Campbell Has Power To
Settle Controversy

The representatives of the Southern
paclfic came to the second meeting of
tne land grant committee today en-
dowed with authority to treat finally
with the committee in behalf of the
railroad relative to the final disposi-
ton of the o. & @. lands Attorney
Ralph Moody, Assistant General Man
ager Campbell from the headquarters
oftlce at San Francisco, and Tax Aren't
McAllister represented the railroad and
Governor Withyeombe, Secretary of
State Olcott, State Treasurer Kay and
sam Garland of the committee, appear-
ed IN the interests of the state.
While Mr.. Campbell was prepared to
accept or reject any proposition that
might be made for a compromise Il
was evident that the railroad would 70.
ceed from none of the points adhered to
in the first conference and any COM
promise would be made by the state Is
representatives. Attorney Moody be-
gan the conference by stating the stand
of the railroad in the matter of the
o. u @. lands. He said in substance
that the railroad would adhere to the
terms of the decision of the U. s. gu
preme court which stated that the fee
simple title to the land was vested in
the railroad company and that the lar
should be in private ownership so that
it would be on the tax roll and in fol-
lowing closely the statements made in
the address by Attorney Dunno he drew
the conclusion that the railroad could
choose its own sweet time to dispose of
the land.
The final decision in the matter, he
recalled, must be in the hands of CON
gress and it was not within the power
of congress to force the Immediate sale
of the lands, The disposition to actual
settlers he said was impracticable as
such small part Of the land was suit
able for agriculture. He held that tho
$3.50 an acre provision was simply a
restrictive clause and was not directory
and that the only possible interests Of
the state in the lands was as regards
general welfare and the tax roll. The
remarks Of Mr.. Moody plainly indicat-
ed that the railroad would consider any
compromise that regarded the rights of
the state as entirely outside of any
legal claim.
while the state might be shy of a legal
right to the land it has a moral right
since the development Of the state has
made the land increase in value from
$3.50 at the time Of the grant to $50 an
acre in some instances today. He agreed
that IL was not fair TO limit the rail
road to an equity of $3.50 an acre in
Lhe land and that the railroad should
be recouped for its losses in transport
ng troops. He stated that the t'.nhe-
and should be sold at its commercial
value and that the agricultural lands
should be sold at $3.50 an acre and that
he surplus was in the timber now on
,he lands.
State Treasurer Kay said that the
government granted the land to the
'ailroad and that the government had
no further interest in the land but
Iince the state was responsible for T."
ncrease in value that the state should
rave the benefit of this increase as tho
'ailroad did not comply with the terms
# the grant and that the tillable land
ihould be sold at $3.50 an acre and
hat the railroad should be paid some
hing above $3.50 an acre TO repay
hem for their losses in transporting
roops and other losses Of the company
elative to the lands.
Governor Withycombe stated that ae-
Ording to his information there were
100000 acres Of the land that could
20 used for agriculture but Kay dis
greed with the governor and Olcott's
opinion was in accordance with the
Jews Of Kay. In the statement Of Mr..
)lcott he agreed in the main with the
Jews Of Mr.. Kay that the land should
10 sold to actual settlers at the actual
'alue and that the timber should be
old Mt its actual commercial value.
Both were desirous of keeping the land
mt Of forest reserve as was the op.
MON Of the remainder Of the commit
oe. This shadow of forest reserve APP
ears TO be one Of the main considera-
ions Of the railroad company and
bout the only element to be feared by
he corporation.
At late hour the committee had
cached no definite agreement in tho
natter and the discussion was resumed
his afternoon after the Adjournment
or lunch at 1890.
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