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SIXTY-FOURTH CONGRESS. SESS. I. CH. 137. 1916.

may

221

Prior homestead not

Special reservation

his improvements, or the greater part thereof, are situated: Pro-
ed further, That a prior exercise of the homestead right by any
such person shall not be a bar to the exercise of such preference rights:
And provided further, That all of the following described lands which for two years.
become revested in the United States by operation of this Act,
-wit: Township one south, range five east, sections twenty-three Description.
and thirty-five; township one south, range six east, sections three,
tive, seven, nine, seventeen, nineteen, twenty-nine, thirty-one, and
thirty-three; township two south, range five east, sections one and
three; township two south, range six east, sections one, three, five,
seven, nine, and eleven; township two south, range seven east, sec-
tion seven; township three south, range three east, section fifteen;
township four south, range four east, sections eleven and thirteen;
township four south, range five east, sections nineteen and twenty-
nine; and township twelve south, range seven west, sections fifteen,
twenty-one, twenty-three, twenty-seven, thirty-three, and thirty- Amended
five, Willamette meridian and base, State of Oregon, shall be with-
held from entry or other disposition for a period of two years after 45:?
the approval hereof.

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Commissions for tim

Amendou

60: 1100 $400

SEC. 6. That persons who purchase timber on lands of class two ber sales. shall be required to pay a commission of one-fifth of one per centum of the purchase price paid, to be divided equally between the register and receiver, within the maximum compensation allowed them by law; and the register and receiver shall receive no other compensation whatever for services rendered in connection with the sales of timber under the provisions of section four of this Act.

Legal proceedings to

sidered.

SEC. 7. That the Attorney General of the United States be, and he determine amount due is hereby, authorized and directed to institute and prosecute any and railroad company. all suits in equity and actions at law against the Oregon and California Railroad Company, and any other proper party which he may deem appropriate, to have determined the amount of moneys which have been received by the said railroad company or its predecessors from or on account of any of said granted lands, whether sold or unsold, patented or unpatented, and which should be charged against it as a part of the "full value" secured to the grantees under said granting Acts as heretofore interpreted by the Supreme Court. In sitters to be canmaking this determination the court shall take into consideration and give due and proper legal effect to all receipts of money from sales of land or timber, forfeited contracts, rent, timber depredations, and interest on contracts, or from any other source relating to said lands; also to the value of timber taken from said lands and used by said grantees or their successor or successors. In making this determination in the aforementioned suit or suits the court shall also determine, on the application of the Attorney General, the amount of the taxes on said lands paid by the United States, as provided in this Act, and which should în law have been paid by the said Oregon and California Railroad Company, and the amount thus determined shall be treated as money received by said railroad company.

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Determination as to taxes due.

Title to moneys now

SEC. 8. That the title to all money arising out of said grant lands in court. and now on deposit to await the final outcome of said suit commenced by the United States in pursuance of said joint resolution of nineteen hundred and eight is hereby vested in the United States, and the United States is subrogated to all the rights and remedies of the obligee or obligees, and especially of Louis L. Sharp as commissioner, under any contract for the purchase of timber on the grant lands.

SEC. 9. That the taxes accrued and now unpaid on the lands revested in the United States, whether situate in the State of Oregon or State of Washington, shall be paid by the Treasurer of the United States, upon the order of the Secretary of the Interior, as soon as may be after the approval of this Act, and a sum sufficient to make such

Payment of accrued
State taxes.

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222

Receipts from lands and timber to constitute special fund.

Disposition of.

company, etc.

SIXTY-FOURTH CONGRESS. SESS. I. CH. 137. 1916.

payment is hereby appropriated, out of any money in the Treasury not otherwise appropriated.

SEC. 10. That all moneys received from or on account of said lands and timber under the provisions of this Act shall be deposited in the Treasury of the United States in a special fund, to be designated "The Oregon and California land-grant fund," which fund shall be disposed of in the following manner: The Secretary of the Interior shall ascertain as soon as may be the exact number of acres of said lands, sold or unsold, patented to the Oregon and California Railroad Company, or its predecessors, and the number of acres of unpatented lands which said railroad company is entitled to receive under the terms of said grants and the value of said lands at $2.50 per acre. From the sum thus ascertained he shall deduct the amount already received by the said railroad company and its predecessors in interest on account of said lands and which should be charged against it as Payment to railroad determined under section seven of this Act; and a sum equal to the balance thus resulting shall be paid, as herein provided, to the said railroad company, its successors or assigns, and to those having liens on the land, as their respective interests may appear. The amount due lien holders shall be evidenced either by the consent, in writing, of the railroad company or by a judgment of a court of competent jurisdiction in a suit to which the railroad company and the lien holders are parties. Payments shall be made from time to time, as the fund accumulates, by the Treasurer of the United States upon the order of the Secretary of the Interior: Provided, however, That if, upon the expiration of ten years from the approval of this Act, the proceeds derived from the sale of lands and timber are not sufficient to pay the full amount which the said railroad company, its successors or assigns, are entitled to receive, the balance due shall be paid from the general funds in the Treasury of the United States, and an approafter priation shall be made therefor. After the said railroad company, its successors or assigns, and the lien holders shall have been paid the amount to which they are entitled, as provided herein, an amount equal to that paid for accumulated taxes, as provided in section nine hereof, shall be deposited in the Treasury to the credit of the United States, thereafter all other moneys received from the sales of land and timber shall be distributed as follows:

Proviso.

Balance if receipts insufficient.

Distribution

paying railroad com-
pany, etc.

and timber.

Amended

From sales of lands; A separate account shall be kept in the General Land Office of the sales of land and timber within each county in which any of said lands are situated, and, after deducting from the amount of the proceeds arising from such sales in each county a sum equal to that applied to pay the accrued taxes in that county and a sum equal to $2.50 per acre for cach acre of such land therein title to which is revested in the United States under this Act, twenty-five per centum of the remainder shall be paid to the State treasurer of the State in which the land is located, to be and become a part of the irreducible school fund of the State; twentyfive per centum shall be paid to the treasurer of the county for common schools, roads, highways, bridges, and port districts, to be apportioned by the county courts for the several purposes above named; forty per centum shall be paid into, reserved, and appropriated as a part of the fund created by the Act of Congress approved June seventeenth, nineteen hundred and two, known as the reclamation Act; ten per centum shall become a part of the general fund in the From other sources. Treasury of the United States; and of the balance remaining in said Oregon and California land grant fund from whatsoever source derived twenty-five per centum shall be paid to the State treasurer of the State in which the land is located, to be and become a part of the irreducible school fund of the State; twenty-five per centum shall be paid to the treasurer of the county for common schools, ronds, highways, bridges, and port districts, to be apportioned by the county

Vol. 32, p. 388,

SIXTY-FOURTH CONGRESS. SESS. I. CHS. 137, 139, 140. 1916.

tred.

courts for the several purposes above named; and the remainder shall
become a part of the general fund in the Treasury of the United States.
The payments herein authorized shall be made to the treasurers of the Payments
States and counties, respectively, by the Treasurer of the United
States, upon the order of the Secretary of the Interior, as soon as may
be after the close of each fiscal year during which the moneys were
received: Provided, That none of the payments to the States and
counties and to the reclamation fund in this section provided for shall Conditions.
be made until the amount due the Oregon and California Railroad
Company, its successors or assigns, has been fully paid, and the
Treasury reimbursed for all taxes paid pursuant to the provisions of
section nine of this Act.

Proviso.

223

author

SEC. 11. That the Secretary of the Interior is hereby authorized to Regulations, etc. perform any and all acts and to make such rules and regulations as

may be necessary and proper for the purpose of carrying the pro

visions of this Act into full force and effect; and any person, applicant, Punishment for false
purchaser, entryman, or witness who shall swear falsely in any affi- swearing.
davit or proceeding required hereunder or under the regulations issued

by the Secretary of the Interior shall be guilty of perjury and liable
to the penalties prescribed therefor.

classification.

SEC. 12. That the sum of $100,000 be, and the same is hereby, ap- Appropriation propriated, out of any moneys in the Treasury not otherwise appropriated, to enable the Secretary of the Interior, in cooperation with the Secretary of Agriculture, or otherwise, to complete the classification of the lands as herein provided, which amount shall be immediately available and shall remain available until such classification shall have been completed. Approved, June 9, 1916.

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CHAP. 139-An Act Granting the consent of Congress to George Fabyan to construct a bridge across the Fox River.

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June 12, 1916
[8. 60:3]
[Public, No. 87.)

for

Fox River.
bridge, at Geneva, Ill.

George Fabyan may

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the consent of Congress is hereby granted to George Fabyan, and his successors and assigns, to construct, maintain, and operate a bridge and approaches thereto across the Fox River, at a point suitable to the interests of navigation, at or near Geneva, in the county of Kane, in the State of Illinois, in Construction accordance with the provisions of the Act entitled "An Act to regulate the construction of bridges over navigable waters," approved March twenty-third, nineteen hundred and six.

Vol. 34, p. 84.

SEC. 2. That the right to alter, amend, or repeal this Act is hereby Amendment. expressly reserved. ad brew) 197bALK Somnathewig tegnol Approved, June 12, 1916. oil to rodeant aurivia (Avast ei 1961

CHAP. 140.-An Act To authorize and empower officers and enlisted men of the Navy and Marine Corps to serve under the Government of the Republic of Haiti, and for other purposes.

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Local chil
Repeale

June 12, 1914
[H. R. 12835]

(Public, No. 881 70A LE

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Details from Navy

and Marine Corps au-
Treaties, p.

thorized for

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States be, and he is hereby, authorized, in his discretion, to detail to assist the Republic of Haiti such officers and enlisted men of the United States Navy and the United States Marine Corps as may be mutually agreed upon by him and the President of the Republic of Haiti: Provided, That the officers and enlisted men so detailed be, Proviso and they are hereby, authorized to accept from the Government of mitted. Haiti the said employment with compensation and emoluments from the said Government of Haiti, subject to the approval of the President of the United States.

628.

Compensation per

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STATEMENT OF

MORTH DAKOTA TAL COMMISSIONLA

AENT COMRAD
TO THE

REGULATORY REFORM SUBCOMMITTEE OF THE SENATE JE

WASHINGTON, D.C.

MARCH 26, 1982

I urge the V.3. Congress to take action against the plans of burtinator worther. to continue a holding company corporate structure. inaction on this matter would allow the holding company to draw resources away from Tail operations, which w cause increased abandonments, and which will harm the economic viability of the towns and communities dependent on Burlington Horthern rail operations as the single lifeline for the transport of goods, and services.

As Tax Commissioner of the State of North Dakota, concerns mave been expressad to me by farm, labor, business and civic leaders that Burlington Northern's newly formed holding company structure could have an adverse effect on rail operations. Surlington Horthern has already announced extensive branch line abandonment plans in nearly all of its service areas. The fear is shared by many Horth Dakotans that the Burlington Northern corporate re-structuring could result in even more abandonment.

These concerns were expressed to me at a hearing I held entitled "Burlington Horthern: its Continuing Responsibilities as a Land Grant Railroad" in Bismarck, North Dakota, on September 30 and October 1, 1981. The purpose of the bearing was to explore the responsibility of Burlington Northern to use its vast land grant mineral resources to support rail operations as intended by Congress when the grants ware made to Burlington Northern's predecestors. The ther intent of the hearing was to explore the effect of Burlington Northern ́s cecision to form a holding company, the effect of that decision on branch jine abandonment, and the effects of branch line abandonment on the rural econoRN. in addition, the effects of BH's holding company decision on the tax base of North Dakota were also reviewed.

These issues were addressed through four questions that i asked of participants at the hearing:

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2.

Has the railroad paid for the land grant assets 10 has received:

3. Does the railroad intend to separate land erant

4.

railroad itself?

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Will the holding company nove place Sueliuntur
posición to be anticompetitive in coras or J£ver Comsp ( ++!
"esourēta ir Marth Onkon and the region?

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The hearing proved successful in answering those questions.
che hearing and from researching railroad and federal reports on the mater
as follows:

1.

2.

Burlington Northern now holds mineable reserves of cool
totaling 14.7 billion tons, mineable reserves of fron ore
and taconite totaling 547.7 million tons, proven reserves
of oil totaling 15.6 million barrels, proven reserves of
gas totaling 35.6 billion cubic feet, and 1.5 million acres
of timber lands. Those resources largely result from
46 million acres of land grants to Burlington Northern's
predecessors from the federal domain in the 1860's.

Burlington Northern was restructured as a holding company in
1981. Management advocated to stockholders in an AorIT 7, 1981,
proxy statement that the holding company would provide "greater

3.

4.

5.

6.

flexibility to finance non-transportation business activities to expand through acquisition of new businesses, and to develop natural resources owned by It or its subsidiaries."

SN has made clear its intention to transfer the land grant
assets or the wealth of those assets to non-rail subsidiaries
of the holding company, even though the actual transfer of the
assets is prohibited by indentures on old Morthern Pacific bonds.
a cold stockholders in the April 7, 1981, proxy statement.
"Xanagement belleves that development of the Railroad's natural
resources and non-railroad properties could be facilitated if
transferred to the holding company or other subsidiaries of the
holding company. If formation of the holding company is approved
by stockholders. It is likely that some of these resources and
properties will be transferred to the molding company
the assets cannot be directly transferred to the non-rail subsi-
dlaries, the assets will more then likely be leased to the
non-rail subsidiaries at less than full market value.

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The restructuring poses a potential threat to the financial
well-being of the rail operation, In this regard, the ICC
has stated in its Railroad Conglomerates and Duner Corporate
Structures:

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If the most profitable part of the company is separated
from the rail operations, Inevitably the rail operations
must suffer. For example, SM's 1980 Annual Report shows
that while four of the eight profit centers contributed
just 6 of the company's total 1980 operating revenues,
the same four profit centers contributed over 350 of the
total profit. Those were forest management-oil and gas,
coal and minerals, and land and real estate operations,
the wealth of which derives from the land grants and which
company management intends to further develop under the
holding company structure.

Rail service is a vital link in the farm-to-market transport
system. A decline in rail service is a tragle blow to any
rural community. Without rail service, the country grain
elevator, which represents the primary business entity in
many smail communities, may be forced to close, and the
town would be a long way towards its death. Abandonment
means a loss of tax base. It means additional taxpayer
costs for road construction and repair. The loss of sme!!
elevators means a loss of bargaining poiar for Sarmers, who
are forced to deal with a few large subterminal operators.

The value of the land grant resources to Burlington Northern
far exceeds any benefit received by rhe public in exchange -
for the grants.
The elimination by Congress In 1945 of the-
requirement for reduced rates from the land grant railroads
did not mean the end of 8's responsibilty to the public for
those lands. Further. Congress failed in Its analysis of the
benefits received by the railroads to attach any value whatsoever
to the minerals under the land grant lands received by the rail-

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