Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-01-30
WYOMING GETS
RICH FROM OIL
LAND RENTALS
State Earns $1,000 Per Day in
Royalties From Petrol
cum Wells.
SCHOOLS PROVIDED FOR

CHEYENNE, Wyo, Jan. 30--Although
Wyoming is deriving revenue of $1,000
a day in royalties from state owned oil
lands and the amount is rapidly increas-
Ing, there is no stable foundation for the
altruistic prediction that this may be-
come a taxless state. That Utopian sit
uation will never be achieved by Wyom-
ing a result of oil royalties or other
forms Of income from state-owned lands,
for the reason that all such lands are en-
tailed and the proceeds from their sale
or lease can be applied only to clearly
specified purposes. There may come
time-this appears robable-when the en-
tire expense of conducting the educational
system Of the state may be financed with
out taxation, and there is a much less
probable possibility that state penal and
charitable institutions eventually may be
supported entirely from land grant In
come, but the financing of other forms
of governmental activity must continue
as al present to be based on taxation.
When Wyoming was admitted to state
hood in 1890 the federal government gen.
Hrously provided 1t a splendid endow-
,nent by giving it title to 100000 acres
of public lands within its boundaries.
The value placed on these lands at that
ZINE was $40, O00OOO-it now is much
Sreater The value of state-owned oil
fands, in fact, now is estimated at a
tgure greater than the original valuation
vt the whole grant. Attaching to the
gift were certain provisions and these
rhe state can not now avoid. The Act
Of Admission provided that the in
rome from the sale and rental OF 1862. 800
ncres of the grant should be devoted In
perpetuity to the common public schools
md that the income from the remainder
of the grant should be devoted to the
support of other public institutions, as
follows: State university, 10000 acres;
Etate capitol, 10000 acres; state agricul-
tural college, 10000 acres; state hospital
tor the insane, 10000 acres state penal
and reform institutions, 100000 acres,
With an additional 10000 acres spe
rifcally for the state penitentiary; state
fish hatchery, 5000 acres: support of
deaf dumb and blind, 10000 acres: state
poor farm, 10000 acres, and state hos
pital, 10000 acres. The Act of Admission
set forth that neither the lands nor the
Income from them ever might be.
alienated from the purposes to which
they were dedicated.
Because of the immense area Of school
lands" as compared with that of other
institutional lands, the bulk of the $500
daily which the state Is deriving from
leased lands is applied to the support oil
the common schools. Rapidly though the
income Is increasing, however, the time
rs far I'm the future before Wyoming
may finance its schools entirely from state
owned land proceeds. At present several
times the amount derived from lands
annually Is raised by taxation for the
support of the schools. The landgrant
income OF the state institutions other
than schools represents a comparatively
small proportion of the expense of con-
Quoting these institutions.
Under the states Interpretation OF the
act Of admission only the Income from
land rentals and royalties may be ap-
piled to current expenses. Funds derived
from the sale Of state lands are preserved.
only the interest thereon being devoted
10 current expenses. AS a result of this
Interpretation the land grant endowment,
which otherwise might be dissipated, be-
comes perpetual.
The school land grant, consisting Of
$500 sections Of 640 acres each is so scat
tered that there is not proven or pros
spective oil field In the state In which
there is not a considerable area Of school
lands.