Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-01

VII bAAV AoN9NIOlt VI Nit BOAARg VI
selling or leasing the lands, the
commission believes that a combi-
nation of the two should be worked
out They recommend that the
sales be conducted 80 as to bring
the, greatest possible benefit to
these trust funds "As they are
now conducted, the applicant has
by oil means the greatest opportu-
nifty to secure the land at his own
figure" The commission recon-
mends that deposits should be re-
funded, but that all bidders at
sales should make a deposit Of at
least the minimum bid. AS much
of this land, however, Is bought
on thirty years time and only 5 per
cent is required as first payment,
the stipulation that all bidders de-
post the full value of the minimum
bid might work some hardships
on beginning stockmen
OIL Leases Vary.
The report points out the great
difference in the policies followed
by the land office in the sale of oil
leases on state lands. Some of
these provided for the payment of
about $1,000 for the first year with
payment far 1uhseqaent years Of
$3.50 a section; others permitted
the nayment of small sum for the
first two wears Most of these early
leases contained no provision for
dll,Jng OF a we'll within specified
period or other evidence Of good
faith on the part of the lessee, nor
did the state reserve any set-ofts
therein. This failure to reserve
set-offs for the state in the lands
leased for oil is a striking demon
tration OF the lack of foresight and
care in dispensing of such important
rights in state lands. There arc five
different kinds of printed leases,
ranging in terms from the most
liberal to the most exacting."
The commission mentions the
fact that a lease sold last October
produced 7 cents for the first year
along with a promise to drill. This
lease presents a sharp contrast to
the lease first issued and even to
those issued in the height of the
boom in this state.
on the matter of actions of en-
ployes, the report says: "Oppor-
tunities have no doubt all along
existed, not only in connection with
the sale of oil leases, but In con-
ncction with approvals of all kinds,
for the employees Of the office to
profit through knowledge gained In
the transaction of their official
duties. II would be very simple
indeed for anyone in the office to
ask someone outside to secure one
Of the low priced leases on certain
lands, and then through the assign
ment of this land at higher prices
to profit financially. Whether or
not anything of this kind has ac-
tually been done we are not pre-
pared to say and believe II should
be finally determined by judicial
inquiry"
The commission points out that
under the Carter act of the 1919
legislature the state was given
power to lease for oil lands sold
under a contract. This matter is
now in the courts. Because of a
verbal opinion by the attorney gem
eral that the money had better, be
held and not distributed to the
funds. Up to October / this money
from leases on land sold under con-
tract amounted to $27t,610,74. The
commission holds that the land
commissioner should have received
interest from the banks where this
money was deposited.
n s,IInctinn. pF Gtlh,
ordinates handling applications for
oil, agricultural and grazing lands,
etc, the commission urges that de-
cisions on these matters should be
referred to the land commissioner
or similar authority. 1t further
states:
THE equipment of the office is
good. but it is cramped for space
Additional space is desirable. AS
to personnel, it Is overstaffed,
Three or four of the present en-
ployes could be advantageously
dispensed with"
The land office is now authoriz-
ed by "a state law to hold out 20
per cent of its receipts for mainte-
nance. The report raises question
of the validity of this act and adj
vises that all income received from
the administration of state lands
be turned over to the state treas
urer for the use of the beneficiaries
and that all salaries and expenses
of the land office be appropriated
by the legislature. AS matter of
fact, the percentage actually being
used is. now under per cent. The
report concludes:
"The past two years have been
the most important i'm the history
of the office: the next two will in
all probability be more important
still. Many thousands of acres of
land have been sold, millions have
been leased for grazing. millions
leased for oil at nominal sums.
owing to careless selections in the
past the present value of the states
land endowments is noway near
what it should be. This is an error
that cannot be remediod but4it ac-
centuates the importance of MAX
ing the best possible use and dis
position OF what we have. The
next few years win be vital in the
history of the land office espec-
tally if. as we hope will be the case,
oil is discovered in the state.
at is, in our opinion. vital to the
taxpayers and essential to the best
interests of the state that change
in the system of supervising direc-
ton of this department be brought
about" Later in the report, the
commission recommends that the
consolidated board of regents for
the state schools be also vested
with the control of the state lands.
This will be mentioned again in
the following article.