Daily capital journal. (Salem, Oregon) 1903-1919, 1915-12-10
COMMITTEE WILL
OFFER COMPROMISE
VIII Pay Railroad $3.50 An
Acre and Also Certain POr-
ton Of Taxes Paid

"A prOpOSAl TO compromise the oregon
California land grant question will be
made by the committee representing
the state, providing the railroad de-
mands that the state make a definite
offer. Briefly, the state will offer to
pay the railroad $3.50 an acre for every
acre in its holdings of 100000 acres
in Oregon and, in addition, all the mon
ey it has paid in taxes on q valuation
in excess of $3.50 an acre. The railroad,
however, will be asked to deduct from
this total whatever money has been re-
ceived through its sale of lands in the
original grant.
This agreement was reached by the
committee representing the state this
morning at conference held in the
governor 5 office and at which the
Southern Pacific was to have been rep
resented. The delegates from the raj
road failed to arrive in time for the
conference but will meet with the state
committee this afternoon.
In agreeing to make its proposal the
state recognizes no moral obligation but
makes its offer solely for the purpose
Of reaching settlement in the matter
which has been the subject of mum.
ber of conferences and is apparently
still far from solution.
Generous to Railroad.
Governor, Withycombe was strongly
in favor Of letting the railroad make
something on the deal as a settlement
means that approximately $l2,000,00O
will accrue to the state, part of which
would go into the irreducible school
fund and the remainder be divided
among the various counties interested.
Present assessed valuation of the g..
100000 acres is about $2O,OO0,O00.
The railroad company maintains that,
regardless of the funds accruing from
sale of lands, it is $2,369,000 behind,
and that this is the reason it asks the
state to join it in petitioning congress
to release it from its obligations. Al
though valued originally at $3.50 an
acre, the lands have recently been as
sessed at more than $40 an acre. For
the past two years the railroad has ne
elected to pay these taxes.
In accepting the states offer, Gov
ernor Withycombe estimates that the
railroad would get nearly $S,000,000. In
order for Oregon to get the $l2,000,000
it would be necessary for the state to
sell the lands secured from the railroad.
This sale, the governor believes, should
be made only to actual settlers and not
to individuals for the purpose of specu
lating in either the timber or the land.
To this end he proposed that sales
be made in tracts not to exceed 100
acres at $3.50 an acre, payment to be
completed in 10 years. Each quarter
section so sold, however, should not
have more than 100000 feet of stand.
ing timber on it or the settler would
be required to pay for all additional
timber
Would Protect Settler.
"The state" declared Governor
Withycombe, "shouId seek to protect
the actual home builder. The small set
tier with his~fittle cottage and small
barn on his farm should be given pro-
lection that will make it worth his
while to develop the property, and for
this reason l don't favor letting heav.
lily timbered tracts go into the hands of
those who wish only to make a profit
in the lumber market"
The governor also was of the opinion
that it would be good step for the
state to take over deforested lands for
the purpose of reforestration. He be.
lieves that wonderful revival in the
lumber industry, with particular refer
ence to Oregon, will follow the moment
the European war is ended.
Senator s. M. Garland of Linn coun.
ty, declared himself willing to give the
railroad bonus simply that the con-
troversy may be settled. He declared
the state didn 7 owe the railroad cent
above the original $3.50 valuation and
charged that the road had not lived up
to its agreement with Oregon. Before
n settlement Is reached, he continued,
the company should give an accounting
for all money received for sale Of lands.
If the railroad has lost money on thes
lands it is not the state 8 fault, he
maintains.
Taxes Are Big ITEM -.
Senator L. Il. Bean of Lane county, a
member Of the committee, avered that
there are two essentials which the state
must insist on. First, the state must
have its delinquent taxes now due on
the property and second, the land
should be privately owned and utilized.
There is now owing Lane county on the
holdings, he stated, about 100000 in
taxes, interest and penalties.
On its holdings the railroad company
has paid $l,955,443 exclusive of the
1914 and 1915 assessments which have
not yet been met. Taking twothirds
as the average valuation throughout
the state the road declares 1t has paid
about $3,000,000 in taxes on valua.
tion Of $l.65 an acre. On this valuation
total Of more than $4,000,000 has been
paid since the land grant was made.
Absence of railroad representatives
at this morning $ meeting prevented
adjudication OF the matter, Represen.
tative W. l. Yawter Of Medford, and
9. f. Spence of Oregon City, advised
the committee by letier TINT they would