SD 565 .A7 1909 Copy 1 ee lle 60TH ConcREss, | SENATE. | DocuMENT 2d Session. | No. 667. PREVENTING DEPREDATIONS ON PUBLIC TIM- BER, ETC. Mr. Newson presented the following LETTER FROM MR. H. H. SCHWARTZ, CHIEF OF THE FIELD SERVICE, GENERAL LAND OFFICE, RECOMMENDING THE AP- PROPRIATION OF ONE MILLION DOLLARS FOR PREVENTING DEPREDATIONS ON PUBLIC TIMBER, PROTECTING PUBLIC LANDS, AND SETTLEMENT OF CLAIMS FOR SWAMP LANDS, AND SWAMP-LAND INDEMNITY. JANUARY 19, 1909.—Referred to the Committee on Appropriations and ordered to be printed. DEPARTMENT OF THE INTERIOR, WS, GeneraL Lanp Orrice, Washington, D. C., January 15, 1909. Sir: I respectfully recommend that the appropriation for prevent- ing “ Depredations on public timber, protecting public lands, and settlement of claims for swamp lands, and swamp-land indemnity ” for the fiscal year 1909-10, be raised to $1,000,000. The present appropriation is $500,000. Previous appropriations were $250,000, or less. There is absolute necessity for such appropriation, if the more than one hundred million dollars’ worth of national resources, now claimed to have been fraudulently acquired by corporations and individuals, shall be promptly recovered. : My belief that this increase is necessary is based upon the following acts: 1. The number and status of cases on record, as shown by the attached letter from the chief of field service. 2. The large number of pending cases heretofore partially in- vestigated by the Secret Service, or special service of the Depart- ment of Justice, and now transferred to the General Land Office field forces. 3. The numerous pending applications for and grants of rights of way, easements, and licenses upon public lands requiring examination. 4. The large number of proceedings pending upon adverse reports by the Forest Service field force, requiring special agents of this : OA 2 PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC.*” ,Wo% office to attend and conduct hearings under section 1, act of February 1, 1905. 5. The investigation in the field of lands claimed by States as swamp—a recent investigation showing dry Indian lands claimed as swamp with stumpage timber values of over $350,000 in two lists alone. Many other lists are pending. 6. The large number of pending nonmineral state selections for lands found to be coal by the Geological Survey, and requiring examination and investigation by the field force. 7. The increasing amount of time by agents required in courts and before referees in the larger cases now pending. 8. The examinations required in the temporary withdrawals for oil, phosphate, coal, and other natural resources in cases where claim- ants seek to acquire title under agricultural laws. 9. The investigations into Carey act contracts heretofore made— not covered by the initial investigations made by the special in- spectors of your department, and not properly chargeable to that appropriation. 10. The necessity for promptly reaching and clear listing bona fide entries against which charges have been filed with this office or the special agents. At first blush this request may seem to call for an extraordinary increase in this appropriation. However, it is not 1 per cent of the value of the government property involved, and a comparison with the past appropriations is not proper, for the reason that in the past this bureau did not know the extent of the frauds being perpetrated upon the Government under the public-land laws. We have such knowledge to-day, and we should take proper steps to safeguard the public domain. Respectfully, Frep DENNETT, Commissioner. The Secretary OF THE INTERIOR. Wasuineron, D. C., January 2, 1909. Sir: This is a recommendation that you request an appropriation of $1,000,000 for preventing “ Depredations upon public timber, protecting public lands, examining swamp lands, etc.” The present appropriation is $500,000; prior recent appropriations were $250,000 per annum. My absence in the field prevented presentation of the facts in this letter at the time the sum of $500,000 was estimated for the next fiscal year. There is herewith submitted detailed information, showing ap- proximately $110,000,000 worth of public lands alleged to have been fraudulently acquired. There is reasonable prospect of recovering much of this land, if prompt action is had. While, considered rela- tively with former appropriations, a million dollars may seem large, yet, in the light of our present knowledge of lands unlawfully ac- quired, it is not 1 per cent of the commercial value of that which the (yovernment may hope to recover. For the fiscal year ending June 30, 1908, Congress appropriated $250,000 for the protection of public lands. A like sum had been ap- propriated for the year ending June 30, 1907. Public-land investi- gations, increasing public sentiment for better protection of the na- tional resources, and extensive discussion of these matters in publi- * : a" @ e s @ PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC. 3 cations, during the past five years, have resulted in many thousands of informations being filed in the General Land Office, charging land frauds. Many thousand cases of violation of law have also been brought to the attention of the Government through investigations by your special agents; also, special employees of the Department of Justice have furnished this office with information in important cases. The foregoing conditions produced great congestion in the work devolving upon your field force. This office, local offices, and field agents receive, annually, thousands of complaints against claims and entries under the settlement laws. Experience shows that only about one-half of these complaints are justified. The examination of such cases has been the principal field duty—to the end that the settlement claims and entries may proceed without delay. However, the great number of extensive frauds demanding immediate action, and necessarily consuming months of time in investigations and subsequent attendance in court trials, leave us to-day over 16,000 settlement claims suspended on complaint out of the total 32,226 cases of all kinds pending December 1, 1908. The nature of the “necessity ” for prompt action in some of the larger cases is shown in United States v. Juanita Coal and Coke Company and United States v. Utah Fuel Company, involving lands worth $2,500,000. In these two cases the evidence of the fraudulent acquisition of these lands was finally uncovered in November last. Suits were filed De- cember 7, 1908, and the statutes of limitation would have prevented suit on December 8, 1908; likewise, in the Oregon cases against C. A. Smith et al., involving timber worth about $1,000,000, the investiga- tions were completed, and suit was filed in May, 1908—within a few weeks of six years after patent issued. Suit can not be brought against a patent six years old. With the $250,000 appropriated for the fiscal year ending June 30, 1907, the field force investigated and disposed of practically 6,500 cases, collected from trespassers $284,470, recovered 390,240 acres of land of about $2,186,400 in value, and secured the conviction in criminal cases of 138 defendants. The present reorganization of the field force and general methods of handling the investigations in relation to public lands dates prac- tically from the beginning of the fiscal year 1907-8. The work performed and the results accomplished in protecting public lands, recovering public lands fraudulently acquired, and prosecuting par- ties guilty of crimes in relation thereto, for a period July 1, 1907, to December 1, 1908—seventeen months—will, therefore, be treated as a unit. The amount appropriated for carrying on the work for the seventeen months was $500,000, thus: $250,000 for the fiscal year ending June 30, 1908, and $250,000 was expended for the first five months since that date. With this expenditure of $500,000 the fol- lowing results have been accomplished: Absolute recoveries. 10,933.07 acres of patented lands recovered (including coal LANES h MeL Ce VAlUe® op kt Uae TL ee en $824, 555. 35 618,240 acres of unpatented lands recovered ;.value_____-_______ 3, 547, 100. 00 Collected trometumber trespassers: —--f2 5. Ses eek 136, 694. 79 TIMER tCUMeGICUmer tS 22 <8 ah eS ee ee a 2 eee 8, 597. 94 4 PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC. The foregoing comprise absolute recoveries to the United States of $4,516,858.08 in money value, which is $4,016,858.05 in excess of the total appropriation expended in the work. This"is not, except the fines and timber trespass, money returned to the United States Treas- ury, but it is lands of such value restored to the public domain where the honest purchaser or settler may acquire it, and the present ad- ministration of the public land laws is such as to prevent the reoccur- rence of further illegal acquisition. Also, the subsequent sale of the recovered coal and timber lands—now for the first time sold upon appraisal—will result in such increase in cash returns to the Treasury as will exceed the expense of recovery. The absolute recoveries, however, constitute but a small part of the work performed and being performed. The detailed summary hereto attached shows information in the possession of the Government which may lead to the recovery of moneys and lands reasonably worth in excess of one hundred millions of dollars. How effective these recoveries shall be depends upon the men and funds available for carrying on the work. A comparison of the number of cases actually investigated in the field, and reported on, shows that during the fiscal year ending June 30, 1907, 6,500 cases were examined at a total expense of $250,000, while during the seventeen months ending December 1, 1908, 28,188 cases were examined, at a total expenditure of $500,000. Taken as a whole, the work was measurably similar, and there is a consequent showing of increase in effciency of over 100 per cent since the gen- eral reorganization of the special service. _ During the past seventeen months your agents have caused to be released from unlawful inclosure a total of 1,007,684 acres of vacant public lands. These lands were restored to settlement and the open range; that, as 5 cents per acre (a low grazing value for that period), amounts to $50,385.20. We have secured 94 convictions for violation of the public land laws, in a large number of which cases the fines were collected; and in important cases imprisonment sentences were imposed. A tab- ulated statement showing details of these convictions is attached. The field force have also examined public lands covered by rights of way, easements, and privileges granted, of which 98 were found to be either fraudulent or illegal, and adverse proceedings have been or will be instituted to free the public lands from such easements now resting thereon. Actual investigation and examination has also been made of nine Carey Act projects, involving 199,259.18 acres. These investigations disclose projects covering 62,070.99 acres, in which the land has not been reclaimed, and in which conditions warrant action looking to the recovery of lands, either from lack of water or because lands are not desert in character. Other examinations are in progress. These do not include original examinations upon applications to seleet—such examinations being made by inspectors of the department. The expectation of the General Land Office, as expressed by the commissioner to the Committee on Appropriations when considering the sundry civil bill for the year ending June 30, 1909, that an appropriation of $500,000 per year for two years would clear up the then accumulated work, will be realized. PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC. 5 However, the investigations of the past two years by your special agents, aided by an aroused public sentiment, have produced evidence and information of wholesale and astounding frauds upon the public lands, and such cases necessarily require much time from the field force. As a result, we have of record in the special-service division of this office the 32,000 distinct cases demanding further field action, notwithstanding that during the past seventeen months there have been investigated a total of over 28,000 cases. The magnitude of the task imposed upon the General Land Office in some of these cases will be best appreciated by example: In a single suit to recover coal lands having a commercial value of millions of dollars it may be necessary to take the following steps: Examine all of the records and correspondence in one or more of the local land offices, and in the General Land Office. in relation to probably fifty distinct entries of land; this examination develops the coincidence of claimants and witnesses, attorneys of record, notaries and commissioners before whom papers were executed, with a subsequent examination of probably fifty to one hundred witnesses, now scattered throughout the United States, and who have, in one way or another, been connected with the proceedings by which the Government lost title to the lands. These witnesses embrace coal ex- perts, employed by the corporations to prospect the lands, dummy entrymen, attorneys, notaries public, United States commissioners, and the various witnesses required to the different filing papers. Second. It is necessary to examine and abstract the titles to these lands as they appear of record in the office of the recorder of deeds in the different counties. Third. There follows the investigation of the organization and - development of the corporations and holding companies, who have taken over the title, and who, by trust deeds and mortgages. endeavor to forestall recoveries by pretended purchase, or incumbrances for value. This branch of the case frequently occupies months of time by men expert in real and corporate law, and frequently develops three or four companies holding titles, mortgages, trust deeds, or bonds predicated upon trust deeds, all intended simply to involve the title. In other cases, subsequent transfers proved to be bona fide. Fourth. To the end that the value of the lands may be determined, in the event that some one of the interested corporations is able to make good its claim of innocent purchaser, and the Government is thereby driven to a judgment for damages sustained, in lieu of the recovery of the lands, it becomes necessary for men expert in coal mining and geology to make extensive field examinations. Fifth. As these coal companies have frequently been operating from two to five years, it also becomes necessary to determine the amount of coal taken from the lands and its value in the different situations, which may, according to the event of the suit, fix the rule of damages the Government shall recover for probably several mil- lions of tons of coal unlawfully taken from the lands. It will be seen that a proper presentation of the Government’s case in some one of a dozen suits similar to the foregoing may well require the entire time for from three to six months of a half dozen men. Example might also be cited to some of the more determined and persistent violators of the act to prevent unlawful occupancy of the 6 PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC. ’ public lands, known as the fencing law: A single case reported from Oregon involved over 85,000 acres of government land in one in- closure; in addition thereto there were a large number of fraudulent or dummy entrymen on some of the lands inclosed. If the Govern- ment expects to present such a case as this to the court or jury, with a showing which will warrant anything more than a nominal fine (which means a very nominal charge for pasturage on the public land and the exclusion of the general community from free range), it becomes necessary not only to show the inclosure, but to show it in detail; probably survey, chain, and subsequently plat over 100 miles of fence; investigate into the circumstances and bona fides of prob- ably fifty to one hundred entries of one kind or another made within the inclosure, supposedly for the benefit of the live-stock company; also interview from fifty to one hundred witnesses, the dummy entry- men; the men who built the fences, to determine when they were built and who paid for them; cow punchers and small cattlemen, for proof that the large company controls the inclosure and that the stock of small individuals is driven therefrom; in some cases the set- tlers are forcibly prevented from investigating or occupying the lands. Again, we have conspiracy timber cases, which may well take the time for from one to three months of three or four men. Along this line the Land Office has single cases of over 200 entries of more than 32,000 acres of land. Combinations are frequently so well organized and so aided by defective public land laws as to prevent an almost impossible task in securing evidence or recovering lands worth hundreds of thousands of dollars. It may become necessary to assign an agent to a single conspiracy case and keep him there to the exclusion of everything else for a period of three or four months, and, in certain phases of the investigation, the services of other agents are required. A single timber trespass case may require a crew of men for weeks. One case investigated this year shows trespass of timber covering 7 miles of territory, and timber taken of over $200,000 value. The land was unserveyed, and it became necessary to run lines and scale up this entire trespass, measuring it stump by stump. It is an old trespass; but the Goyernment may still recover—there being no statute of limitations against a money demand. These examples furnish indication of what your field force has done in making recoveries mentioned in the earlier part of this state- ment, and what now devolves upon it in successfully prosecuting the larger cases involved in the total of over 30,000 cases pending. Following is a summary of most of the larger cases affected by charges of fraud or illegality now pending. They are here set up by States or field divisions. Details of identification and names of parties are omitted in cases under investigation, for the reason that parties are entitled to such protection until investigation develops facts warranting their presentment to a proper tribunal; and, on the other hand, present publishing of details would generally embarrass further inquiry in a case. Alaska : 1. Probably 500 coal claims worth at least $200 per acre on DASISBOL FIGEMt GOCE (COM= sce 2. ees iE GE Al ne Oa ane $16, 000, 000 2, Pending timber trespass = 200, 000 hehe a ee ee eee PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC. 4 Arizona: In United States court— 1. United States v. Grand Canyon Lime and Cement Co., to recover Lor ‘timber trespass ss Se ec J. eee eee $40, 000 California : In United States court— 1. United States v. Hyde, Benson, et al., to recover 11,040 acres of land patented under scrip selections________ 110, 400 2. United States v. English, embezzlement: Indictment: SNTNIO TINT ASO LS OTs Lee Gin ee) LS as Ss i Ve eg 15, 000 3. United States v. Dwinell et al., conspiracy, indictment, - involving 1,120 acres of timber land worth________~_ 22, 400 4. United States v. McPherrin, and seven others, indict- ment conspiracy, involving 3,840 acres of land worth__ 162, 000 In department— 1. United States v. H. H. Yard et al., 200,000 acres of heavily timbered lands covered by placer location in HOPES T eReESCL VG 2 32.2 =e Se ee ee ee ee 5, 000, 000 2. United States v. Golden and Darby, heavily timbered lands covered by placer mining location_____________ 80, 000 3. Thirty-two timber trespass cases, involvying___________ 100, 000 Colorado: In United States court— 1. United States v. Juanita Coal and Coke Co., to recover 2,800 acres of coal lands, value $300 per acre______ 840, 000 2. United States v. Utah Fuel Co., to recover 5,000 acres ; of coal lands valued at $300 per acre______-____-__ 1, 500, 000 3. United States v. New Mexico Lumber Co., to recover 8,640 acres of best timber in Colorado, value $50 per CTO eee tee ek ae ee eek ee ee Ste ee AOE ES 432, 000 4. United States v. Barnes et al., timber trespass________ 50, 000 In department— ie Onees Tombs ol Coal entries.2. 4): tse ee 1, 600, 000 2. One. eroup, of timber-land entries. -- 22. = a ee 860, 000 SNe eroup Or lew. land ‘Selections. — 224 = 2 Se ee 3, 000, 000 She CERISE! VO EWI (Sana ME wer EI ee ca es steers ee sgeeve sd ees 2, 000, 000 PAOLO LOUNL OM COM CNLTMICS- = -iA5 28h ga Se 2 oe eee 1, 200, 0009 Pa nersroupror. coal: CNTrICS! 9 at 2A ha see ee 1, 280, 000 f(A Oneveroin, Of; COA GlAIMS= 222 ee oS 0 ee 1, 000, 000 AeOnereLouprot. coal claims es =o ee sk ee ee 750, 000 9. One group of agricultural entries on coal lands________ 4, 000, 000 10. One group of timber and stone entries________________ 440, 000 11. One group of timber and stone entries________________ 200, 000 Ae scr tin el) LEOSDASS* GHSCS 25. ae 8 es ta 535, 000 13. Two, cases’ of coal trespass, at $1 per ton -_-----__— 3, 500, 000 Michigan: In department— 1. One group of coal timber entries of 5,400 acres, value CSIR) ere OER SE, oe a ee eee Agr ee RY, 54, 000 SP MMTLCeHmULMDer entnies= 2. 2 2! be wee Ss : 6, 000 SR WO LEME TEOSDASS aca NCS2. 88 eos 2a Nee 27, 000 Minnesota : In department— iPHOUrteel. LIME abrespass CAS@S=— 2—- = se ye ee AAT, 2. Indian reservation lands, erroneously classed swamp, TTA NED Tera ees ge Se 2 ee eet ee ae 350, 000 Montana: In United States court— 1. United States v. B. F. Howard et al., to recover value of timber lands entered under the mining laws___----_~ 40, 000 2. United States v. Anaconda Copper Co., timber trespass_ 64, 984 In department— 1. United States v. McCune et al., trespass of 720 thou- sand cords of wood, stumpage value______-__-______ 360, 000 2. Eighty tracts of coal land entered under the timber and stone act, actual value, $100 per acre_______~_ 1, 280, 000 8 PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC. Montana—Continued. In department—Continued. 3. One lot 4,000 acres agricultural land, worth $25 per acre, acquired under the desert-land act_____________ 4. One .case: involving) lands worths == 2.322) See eees 5. Timber trespass in Missoula district, stumpage______ 6. One railroad and lumber-timber trespass, Missoula GISCELG Te Ser ee ee lr ek 2 a ee . Limber trespass, casey Billings «district. =. 22 = 2 eae . Land conspiracy, lands, at $5 per acre______________ . United States v. Libbey Placer Mining Co.. timber lands held undermining locations. =.=. 3 ee eee Nebraska : In department— 1. Conspiracy of 4,000 acres desert land, value $5 per acre_ A case of 800 acres coal lands acquired by nonmineral TAIL TeV iy he eves atta eee aa, ee a Ae Dee ee ee od ee oA CONS PInACyeAse A-¢1:S:000 AeTES) tio: oh bees a eee Nevada: In United States court— 1. United States v. Central Pacific Ry. Co. and Southern Pacific Ry. Co., 4 suits to recover mineral lands, lands have proved value in many operating mines of over__ In department— 1. Rhyolite Township lands, group of lands held under LON PLO CALTON Soe ee eT fe 2 eee 2. United States v. Central Pacific Ry. Co., to recover about 300 acres of mineral lands erroneously acquried under its grant; a very conservative commercial value co 00 =] New Mexico: In United States court— 1. Suits to) recover’ 560 acres of coal Tands22-- 2. United States v. Coolidge et al., 640 acres of highly im- .proved, irrigated, agricultural lands, present value OVERS SLOOMPERva Gel: we wh baw eee aa he aS eae eee ee In department— 1. Group of 1,120 acres of coal lands worth $50 per. acre__ 2. Four hundred and eighty acres in coal entries, $100 MOT ACE OS ae ys he GT NORD SE oes SX Epes See 3. A case of 12 coal entries for corporation, 1,920 acres at $50) per) aeres 222" SOAs tele k ES hee EET a SE ee . Group of 14 desert entries, 2,240 acres at $2.50 per acre__ . On timber trespass of 70,000,000 feet; $2 per thousand__ PONG VIMESPASSi(CASe- ae ee BEEN ee ee ee eee ee “1D oO Oklahoma and Kansas: In department— 1. Nine unlawful inclosures, including 307 alleged fraudu- lent entries of 51,720 acres; and 66,000 acres of vacant Government lands; value of entered lands______--__ Oregon : In United States court— 1. United States v. Kribs et al., to recover timber lands hayvins “commercial value “ot. = So 2 a eee 2. United States v. C. A. Smith, two suits to recover tim- ber lands, having commercial value of___-_-________ 3. Twenty-one allied suits to cancel 47 entries of heavily THMPEerEC) “TANYGIS =e 5 ee ee bs he Te eee In department— i 1Casetinvolyvine Toitimberentries! 2 we! Wa ean ee 2. Case involving block of pine, heavy stand, 10,000 acres__ 3. Two unlawful inclosures of over 140,000 acres vacant land. © 4. One lot of coal entries on timber land in national forest_ ‘Untawtul inclosure’ of 120,000) acces= 2222) sae $100, 000 100, 000 500, 000 500, 000 50, 000 100, 000 250, 000 20, 000 80, 000 90, 000 25, 000, 000 375, 000 15, 000, 000 56, 000 64, 000 56, 000 48, 000 517, 000 200, 000 750, 000 235, 000 200, 000 250, 000 200, 000 PREVENTING DEPREDATIONS ON PUBLIC TIMBER, ETC. 9 Utah and southern Idaho: In United States court— 1. United States v. Utah Fuel Co. and Pleasant Valley Coal Co. et al., suits to recover title to over 40,000 acres of Coal Janda a200Mpery aeremse oe hae eae Ve 2. Court cases to recover 22,000 acres of heavily timbered pine landsworth’apout$s0°anvacre=- es ses In department— 1. About 20,000 acres coal lands ae by nonmineral en- 2. 3. 4. 5. SPIES; “WOrthapout:SLOO peracres <2 os ek Onercasevor 3:-500"acres\ of coal lands2 Unlawful inclosure of 160,000 acres of vacant lands. About 800 nonmineral claims to Jands valuable for coal, At HOP DET PACT es svete mils Wa Spe hale ees Benth. waved ssh 488 state selections pena for examination. Washington and northern Idaho: In the United States court— il bo United States v. Flynn, to recover 160 acres of im- PATO VCC agen OL Se ae eee ek Ss ho he ee Dds NE Pe, . United States v. Multnomah M. and D. Co., to recover PO OMACEES Ole Wenig sexe we alee Sule es | Mere, gt il ee hee . United States v. Barbee, to recover 640 acres coal lands__ . United States v. Kettenbach et al., to recover 8,481 acres of timbered lands worth about $20 per acre____ . United States v. Hope Lumber Co., timber trespass____ . United States v. Bunker Hill Mining Co. In depa rtment— ile Wisconsin : als Wyoming: To recover 6,000 acres timber and fruit lands in the Colville Indian Reservation, held on mining claims___ ihreestimber trespass Cases. == 2 8 ee ee In United States court— il 2. United States v. Union Pacific Ry. Co., to recover 518,614 acres of coal lands at $300 per acre_________ United States v. Hyde, Benson et al., to recover 400 aeres of agricultural land at $10 per acre___________ In department— | OMe niiInper CLespass, iStUMpare 2 Tees MONen taroad ethlinner CrESPaSS= 2 2) ee eet Hour timber trespass; cases, values) = 23 28 se GOMAereN Mla wiuliy ‘acquired se 2 por 2 eer aT . United States v. Dally et al., to recover 9,500 acres of conlMaine pyrorthesL50) per Aeres!. 2