r Cio^d. ^So^. Glass_ii^£_41_ u^, Department of the Interior, " Washington, April 20, 1908. Chairman Committee on the Public Lands, House of Representatives. Sir: 1 have the honor to submit herewith report on H. R. 19421, "A bill to provide for the entry and sale of public lands containing coal." It is suggested that line 3, section 1, be raodified by omitting the word "vacant." The words "declaration of intention," lines 11 and 12, section 3, should be modified to read "a declaratory statement of his inten- tion," as that is in fact the nature of the paper which is to be tiled, and, conforming in name to that in use under existing law, will be more readily understo6d b}'^ the public. The word " further," in line 22, section 3, should be omitted for the reason that said line is the first and only provision for an extension of time. Lines 10, 11, and 12 should be amended so as to read "and the payment of the classified price for the same as fixed by the Sec- retary of the Interior at date of the initiation of the claim, if classified, or at such price as he may determine, if not determined when the claim was initiated." This amendment is designed to secure to the claimant the right to purchase the land at such price as may have been placed thereon by classification at the^ time he initiated his claim, preventing the possibility of an increased price being put thereon by reclassification after he has opened the mine, reserving, however, the right of the Secretary to fix a proper price upon lands not classified at date of the initiation of the claim. Lines 25 and 26 of section 4 should be modified so as to provide for the outright sale of not exceeding 610 acres in not more than four compact bodies, which need not be contiguous. The bill as submitted would permit of the purchase of sixteen noncontiguous 40-acre tracts, which might be so applied for as to render the remaining surface practically value- less for disposition or surround on two sides the entire 2,560 acres embraced in the filing. It is believed that four noncontiguous bodies of 160 acres each will provide ample ground for use in connection with the working and exploitation of the coal under any one purchase. A second proviso to section 4 is suggested, fixing the fees and com- missions to be paid to registers and receivers upon the filing of declar- atory statements and entry of the lands under the provisions of this act. The fee is fixed at $2 for each 160 acres or fractional part thereof embraced in the declaratory statements and the commission at 1 per cent each for the register and receiver, not to exceed in any case, however, llOO. The addition of another section to the bill, following section 4, is suggested, providing that one enti*}" shall exhaust the right; also pro- viding for an additional entry under this law by those who, prior to its passage, may have exhausted their rights by the entry of the smaller aVea fixed by the old coal law. The right of additional entry has been granted to those who acquired title to less than the maxi- 19848—09 ^^m. mum area under the homestead laws, and it would seem but fair, in view of the greath'^ increased area which may be entered under the bill, that the right of additional coal entry be granted. The fourth word, line 15, section 7, should be "after" instead of "of," so that the entrymen may make their final proof and thereafter have the lands examined in order to determine whether or not coal exists therein. A suspension for examination prior to final proof might delay same for a considerable period in some cases. After the word "owner," line 6, page 6, it is suggested that the words "or lawful claimant" be inserted. Section 9 of the bill practically confirms all disputed entries or locations made under the coal-land laws if the price therefor, as of the date of such entry or location, has been oi shall be paid. It would seem advisable to extend opportunit}'^ for relief to those who are under charge of acquiring coal land under other laws, or who indi- rectly acquired a larger area than the existing coal laws permitted, because the passage of this bill by Congress will recognize the fact that the existing coal-land laws are not practicable. Their imprac- ticability has helped bring about the practice of attempting to evade them. The culpability of such evasion is admitted. Yet if, after the passage of this bill, those under charge of wrongful action should be willing to take their land with the very considerable penalty of assuming all the burdens and restrictions of the new law it would seem proper to confirm their right to so much of the land as shall not exceed in area the maximum amount which might be acquired under this bill. I therefore suggest as a substitute for section 9 of the bill the following: Sec. 9. That any persons, associations, or corporations who have obtained prior to the passage of this act claim or title to any coal lands of the United States by alleged unlawful means shall, upon proof to the satisfaction of the Secretary of the Interior that the full coal-land price of such land as classified by said Secretary under author- ity of law has been paid to the United States, have their patents confirmed for not to exceed two thousand five hundred and sixty acres ot such coal lands if patents have issued, or if patents have not issued shall receive patents for not to exceed said area: Provided, That patent shall not issue or be confirmed for such alleged unlawful claims or titles unless all land in excess of two thousand five hundred and sixty acres and all the surface of the confirmed coal lands (except not exceeding six hundred and forty acres in not more than four compact bodies, which need not be contiguous) involved in any one such charge shall have been reconveyed to the United States free from all incumbrances of any nature whatsoever: Provided further, That all moneys heretofore paid to the Government in connection with such alleged unlawful entries, as pur- chase price for lands involved in any one charge, shall be credited toward the pur- chase price for any part of the lands embraced in said charge and retained by such persons, associations, or corporations under the j^rovisions of this section. This substituted section oflers opportunit}^ for relief and at the same time automatically carries with it a punishment proportioned to the value of the coal lands in question. For those who acquired the land under other than the coal-land entry, the additional price to be paid will be all or a great part of the classified value, while those who paid the minimum coal prices will only need to pay such addi- tional sum as will equal the classified value. It should be noted that the opportunity given does not prevent the confirmation of entries where further investigation of the facts may prove that the -entries were lawfully made. It is suggested that the provisions of the bill should be applied to Alaska. To this end, sections should be added providing for the fil- JAN 13 1910 ... ■ I It ing of declarations of intention and the making of entries for unsur- veyed lands; also maintaining in that district the present system of ^ determining adverse possessory rights by the courts by inserting ^ provisions somewhat similar to those contained in sections 2 and 3 of the act of April 28, 1904. (33 Stat. L., 525.) In order to meet existing conditions and to enable those who made and are holding in good faith coal locations in Alaska under existing laws to combine their claims, a section is suggested which will permit such a combina- tion by bona fide locators, their heirs or assigns, so that they may include in a single consolidated claim not to exceed 2,560 acres of contiguous lands. Inasmuch as this bill is designed to take the place of existing laws relative to the public coal lands of the United States, the addition of a section to the bill repealing existing laws, but specifically preserving the right of duly qualified persons to perfect bona fide existing loca- tions and filings is suggested — Sec. 10. That all laws and parts of laws relating; to or providing for the disposition of the public lands of the United States containing deposits of coal are hereby repealed: Provided, That nothing contained in this act shall prevent qualified per- sons, associations, or corporations from completing and perfecting locations, filings, and entries made in accordance with the laws and regulations in force at the date of initiation of the claims. Although the separation of the surface from the coal and the pro- visi.m for the payment for the coal, reasonably proportioned to its actual value, and the provisions of sections 5 and 6, designed to pre- vent unlawful combinations or conspiracies in restraint of the mining or selling of goal and to give the United States a preferential right to purchase for the use of its army and navy such coal as ma}^ be needed, and the general relief to the coal claimants and operators by so in- creasing the area which may be purchased as to enable them to make the required outla}^ and development, are matters of great importance and warrant me in recommending the passage of this bill, I urge par- ticularly upon your attention a further matter which is worthy of very careful consideration. I believe that the coal now belonging to the United States should not only be saved from acquisition under the noncoal-land laws, as provided by the bill, but also that the coal now owned by the United States should be protected by the Government until it has all been used in an economical way. Such protection could be practically assured b}^ retaining in the United States the title to the coal itself and giving to the coal operators the right to mine it at reasonable rentals, or royalties, under conditions as free from burdens to the business interests of the operator as can be allowed consistently with protection of the public interests. This might be brought about by leasing the coal land with pro- vision against holding it an unreasonable time for speculative reasons, and particularly with security against mining in a wasteful manner. Such a lease should provide an annual rental per acre, which in itself would be a considerable security against mere speculative holding of the land, and in addition thereto a royalty per ton, which should be proportioned to the value of the coal property leased, looked at from the same considerations which are made the foundation of fixing classified prices of coal land preparatory to sale. Private owners, various States of the United States, and different foreign countries have tried the lease system with good results. This sy.stem would not unreasonably hamper the business development of the coal, and without adding an unnecessary burden to the operators would ulti- mately bring to the Government a much larger revenue. Further- more, a lease system is of distinct advantage to the smaller operators, who could pay for coal when developed, instead of being obliged to advance the full price of the coal at the time of entry. The natural conditions in the public lands are such as to make the leasing system in coal mining especially applicable to their develop- ment; the risks and uncertainties in many fields make leasing the safer system for even the large operator, while in many areas, especially in the lignite fields, the small cost of the necessarj^ mining plant favors, as doejs also the leasing system, the mining by a large number of small operators. The supplies of workable coal in most of the public-land States are entirely inadequate to the future needs of these great commonwealths, which have but begun their real development; and yet probably in no country is so large a part of the available supply of coal lost in mining as is now the case in many of these western coal fields. The chief purpose of the Government under the leasing sj^stem would be the encouragement of economic mining methods, with a view to both development for present needs and the perpetuation of the supplies to meet the needs of the future. This purpose can be accomplished in harmony with state laws, including a state tax on the mine products, and with an amount of federal supervision which would always be small; and even this lim- ited amount of inspection would be done in connection with investi- gations conducted with a view to helping in the development of increased safety and efficiency in mining. The United States does not look particularly to the question of revenue in the disposition of public lands, and the chief purpose of the Government in connection with these coal lands must always be to secure their wise and efficient development in the interest of the whole people of the West; but since it has devoted the proceeds therefrom to public purposes, such as reclamation of arid lands, it is reasonable to suppose that Congress would look favorably upon any increase in the revenue from the public land which would not retard its proper development. For the reasons given I suggest that the bill be modified so as to give the option of either purchasing or leasing the coal deposits, b}^ the insertion, after suggested section ia, of the following sections: 4b. That if any individual or association qualified to enter coal lands under the provisions of this act, or a corporation duly empowered to transact business in the State or Territory in which the land is situated, makes application to lease coal lands, the Secretary of the Interior is hereby authorized to lease to such applicant not to exceed two thousand five hundred and sixty acres of coal land exclusive of the sur- face, under such terms and conditions as he may deem proper to conserve the public interests; and after such application for the leasing of any definite tract of coal lands has been received at the appropriate local land office, the coal lands thus applied for shall not be subject to sale under the provisions of this act during the pendency of such application: Provided. That the Secretary of the Interior shall require in each lease an annual rental per acre for the lands leased of five per centum of the classified price for such lands and in addition thereto such royalty as he may deem proper in each case, not less than one- half cent per ton nor more than five cents per ton for the coal actually mined. 4c. That at the time of filing application to enter and purchase, or of the approval of a lease for coal lands, the entryman or lessee may purchase also, at two dollars and fifty cents per acre additional to the classified charge for the coal, or the rental price, by legal subdivisions in not more than four compact bodies, whicii need not be con- tiguous, not to exceed six hundred and forty acres of the surfacje of the coal lands entered or leased, or at his option the lessee may lease the exclusive use of such sur- face under terms and conditions prescribed by the Secretary of the Interior in the lease. If the above sections are inserted in the bill, the first proviso to section 4 of the bill should be omitted, as its provisions are embodied in section 4c. To carry out the suggestions relative to Alaskan coal lands, sections numbered 8a, 8b, 8c, and 8d may be inserted after sec- tion 8. A typewritten draft of the bill, embodying the suggested changes and additions, is inclosed. Very respectfully, James Rudolph Gakfield, Secretary. A BILL To pA)vide for the entry and sale of public lands containing coal. Be it enacted by the Seriate and House of Representatives of the United States of America in Congress assembled. That all public lands and landa included in national forests, containing workable deposits of coal, are hereby classified as coal lands and hereafter shall be disposed of only in the manner provided by this act. Sec. 2. That every citizen of the United States who has not acquired title to coal lands from the United States, or any association of persons who are thus severally qualified, may purchase, by legal subdivisions, not to exceed two thousand five hun- dred and sixty acres of s ch coal lands in contiguous, reasonably compact areas, at not less than ten dollars per acre, or such other and higher price as the Secretary of the Interior may fix after examination, having due regard to the quality of the coal, thick- ness, character, and depth of the coal veins, and means of transportation and accessi- bility to markets. But no purchase of coal lands under the provisions of this act shall operate to convey any right, title, or interest in or to the surface of the lands containing the coal thus purchased, except as hereinafter provided. Sec. 3. That all public lands and lands included in national forests, containing coal, shall be subject to exploration by persons qualified to purchase under this act, and any such qualified purchaser shall have, upon the payment of the sum of twenty- five cents per acre and the filing in the proper land office of a declaratory statement of his intention to enter upon the exploration, discovery, and development of coal upon the lands described in such declaration, not to exceed two thousand five hundred and sixty acres, the exclusive right for a period of one year to enter upon the said lands for such purposes and the preference right to purchase the same, and upon a proper showing to the Secretary of the Interior that the work of exploration, discovery, and development has been diligently carried on during the said period, and that a further period is necessary to determine the character of said lands and their coal deposits, the Secretary may grant an extension of the said rights for a period of not to exceed one year at any one time, or two years in all, upon the payment of twenty-five cents per acre for each year of such extension, and during all such periods the Secre- tary of the Interior may, upon application, permit the sale of such coal as may be mined for the purposes of development. Sec. 4. That application to enter and purchase all or any contiguous, reasonably compact portion of the lands described in any declaration of intention may be made at the proper land office at any time within the period of exploration, as provided in section three of this act, and upon proof that a workable vein of coal has been dis- covered upon the lands applied for and the payment of the classified price for the same as fixed by the Secretary of the Interior at date of the initiation of the olaina, if classified, or at such price ks he may determine if not classified when the claim was initiated, in not more than four annual installments, or upon applications to pur- chase under the provisions of section two of this act, the entryman shall be entitled to a patent to the lands applied for, including all deposits therein, excepting and reserving therefrom and horn the grant the surface only of said lands, except as here- inafter provided. The failure to make application to enter and purchase as afore- said or to make any one of the annual payments within six months after the same is due shall constitute a forfeiture of all the rights of the entryman to the land and to the payments already made: Provided, That the entryman shall be entitled, upon paying at the time of making entry the sum of two dollars and fifty cents per acre, in addition to the coal land price, to a patent to the surface of not to exceed six hun- dred and forty acres of the area entered by him, to be designated by legal subdivisions. and in not more than four compact bodies which need not be contiguous: Provided farther, That if the land entered shall be within a national forest, the entryman shall be entitled to a patent to the surface only of such portion of the area covered by his entry as in the opinion of the Secretary of the Interior may be necessary for the purposes of mining, marketing, and handling the coal, upon payment of the value of the timber which may be growing upon such land, if any, in addition to the sum of two dollars and fifty cents an acre for such surface: Provided further, That each person or association of persons filing a declaratory statement under this act shall, at the date of such filing, pay a fee of two dollars for each one hundred and sixty acres or fractional part thereof embraced in the declaratory statement, and the regis- ter and receiver shall each receive a commission of one per centum on all moneys paid as the purchase price under coal entries made under the provisions of this act: Provided, howerer. That the total commissions received by any register or receiver under any entry shall in no case exceed one hundred dollars. Sec. 4a. That the four preceding sections shall be held to authorize only one entry by the same person or association of persons, and no association of persons any mem- ber of which shall by entry have taken the benefit of such sections, either as an indi- vidual or as a member of such association, shall enter or hold any other lands under the provisions thereof: Provided, That entrymen who entered coal lands under exist- ing laws prior to the date of this act may, under the provisions of this act and sub- ject to its conditions, enter other lands which shall not, with the lands so already entered, exceed in the aggregate two thousand five hundred and sixty acres, but not more than one such additional entry shall be allowed to any person orassociation of per- sons under the provisions of this act. Sec 5. That title to the lands and deposits purchased under the provisions of this act shall be forfeited to the Ujiited States by proceedings instituted in the courts for that purpose, if the owaier of such title shall tacitly or otherwise enter into any con- tract, combination in the form of a trust, conspiracy in restraint of trade in the mining or selling of coal. Sec. 6. That the United States shall at all times have the preference right to pur- chase so much of the products of any mine or mines opened upon the lands sold under the provisions of this act as may be necessary for the use of its army or navy and at such reasonable and remunerative price as may be fixed by the President; but the producers of any coal so purchased who may be dissatisfied with the price so fixed shall have the right to prosecute suits against the I'f^nited States in the Court of Claims for the recovery of any additional sum or sums they may claim as justly due upon such purchase. Sec. 7. That the surface of all vacant and unreserved public lands classified as coal lands under the provisions of this act may be disposed of under the general provisions of the public-land laws of the United States which would be applicable to such surface if it were not underlaid with coal, but all patents issued under said laws for lands classified as coal lands or within areas known to contain coal of commercial value shall contain a reservation of the coal and other deposits beneath the surface, and a recital of the right of the coal declarator entryman to enter upon and occupy the same for the purpose of exploration or mining, as hereinafter provided: Provided, That such entryman may, if he elect, within one year after the making of final proof and before receiving patent, apply for an examination by officers to be designated by the Secretary of the Interior of the lands contained within his entry for the purpose of determining whether or not they contain workable deposits of coal, and if upon such examination it shall be determined to the satisfaction pf the Secretary that such lands do not contain workaV)le deposits of coal, then the patent shall issue in fee and without reservation. Sec. 8. That a coal-land declaratory statement or a purchase under this act may embrace in whole or in part lands the surface of which has been disposed of as pro- vided for in section eight, and the coal declarant shall have the right to enter upon such lands for the purpose of exploration, discovery, or development of coal, and the coal purchaser for all purposes connected with the raining, handling, and marketing of coal, upon the payment to tiie owner or lawful claimant of the surface of reasonable damages, to be determined in cast^ of disagreement between the parties in interest by a court of competent jurisdiction. Sec. 8a. That any declaratory statement of intention under this act made for unsurveyed lands in the district of Alaska shall be for rectangular tracts, as compact as possible, not exceeding in length tw4ce the width of the tract located, with north and south boundary lines run according to the true meridian, and shall describe the lands covered thereby by reference to such natural objects or monuments as will readily identify the same. The location of said lands shall be indicated by marking the corners thereof with permanent monuments, so that the boundaries may be readily traced. Applications to enter and purchase such hinds must be accompanied by copy of a plat of survey and field notes thereof made by a duly authorized United States deputy or mineral surveyor for the district of Alaska, duly approved by the surveyor-general for the district of Alaska, and such plat, field notes, and the certifi- cate of the surveyor must show that the boundaries of the land applied for have been marked by permanent monuments at every corner of the tract and at intervals of not to exceed one-half mile on the exterior boundaries thereof. Sec. 8b. Upon the filing of the plat, field notes and certificate, and of api)lication to purchase the coal lands under the provisions of this act, in the office of the register and receiver of the land district in which the lands are loc ted, the register shall cause notice thereof to be published at the expense of the applicant, in a newspaper of general circulation in the district of Alaska, published nearest the land applied for, for a period of sixty days, during which period of publication similar notices of the application and copies of the official plat of survey must be kept posted in a conspicuous place upon the land applied for and in the local land office. Sec. 8c. That during such period of publication and posting, or within six months thereafter, any person, association, or corporation having or asserting any adverse interests or claim to the tract of land or any part thereof sought to be purchased shall file in the land office where such application is pending, under oath, an adverse claim setting forth the nature and extent thereof, and shall within sixty days after the filing of such claim begin an action in a court of competent jurisdiction within the district of Alaska to determine the question of the right of possession, and prosecute the same with reasonable diligence to final judgment, and thereafter no patent shall issue for such claim until the final adjudication of the rights of the parties, or until the adverse claim shall have been waived or the suit dismissed. When judgment shall have been rendered in such proceeding, patent shall be issued in conformity with the final decree of the court therein: Provided, That nothing herein contained shall be so construed as to authorize entries to be made or title to be acquired to the shore of any navigable waters within said district. Sec. 8d. That all persons, their lawful heirs or assigns, claiming under valid loca- tions made prior to November twelfth, nineteen hundred and six, or in accordance with circular of instructions issued by the Secretary of the Interior, May sixteenth, nineteen hundred and seven, may consolidate their said claims or locations by includ- ing in a single claim, location, or purchasenot to exceed two thousand five hundred and sixty acres of contiguous lands not exceeding in length twice the width of the tract thus consolidated, and for this purpose such persons, their lawful heirs or assigns, may form associations or corporations, or may transfer their said claims to other quali- fied persons, associations, or corporations who may perfect entry of and acquire title to said lands, in accordance with the other provisions of law under which said loca- tions were originally made. Sec. 9. That any persons, associations, or corporations who have obtained prior to the passage of this act claim or title to any coal lands of the United States, by alleged unlawful means, shall, upon proof to the satisfaction of the Secretary of the Interior, that the full coal land price of such land as classified by said Secretary under author- ity of law, has been paid to the United States, may have their patents confirmed for not to exceed two thousand five hundred and sixty acres of sucb coal lands, if pat- ents have issued, or if patents have not issued shall receive patents for not to exceed said area: Provided, That patent shall not issue or be confirmed for such alleged unlawful claims or titles unless all land in excess of two thousand five hundred and sixty acres, and all the surface of the confirmed coal lands (except not exceeding six hundred and forty acres in not more than four compact bodies which need not be contiguous), involved in any one such charge, shall have been reconveyed to the United States free from all incumbrances of any nature whatsoever: Provided further, That all moneys heretofore paid to the Government in connection with such alleged unlawful entries, as purchase price for lands involved in any one charge, shall be credited toward the purchase price for any part of the lands embraced in said charge and retained by such persons, associations, or corporations under the provisions of this section. Sec. 10. That all laws and parts of laws relating to or providing for the disposition of the public lands of the United States containing deposits of coal are hereby repealed : Provided, That nothing contained in this act shall prevent qualified persons, associa- tions, or corporations from completing and perfecting locations, filings, and entries made in accordance with the laws and regulations in force at the date of initiation of the claims. o •!-'.:tuu. '*>