Statement of A.atd.etant Secutat7 of tbiit Int\l'tt~ 3o1m A. C.net • Jr. • before the Public t.ands s~~itt:eew C~itt• lin hlte'tlor a.nd Insular Affairs • Unit eel States senate. o~i 1. 9.15 (B. It-. •·149) to l'J»vide for the Satiafactioa. of Claims .AzS.td.JlS Cut of Scrtp. U.eu Se1ecttoa• and S:bd.lu tipta • Auaust 11, 1964 ·

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trt. J'eb:rue.l)' • 1963, the hpa~nt lent .... ¢utlve ~l'licatiou aekin& for the enactment of the billa, lWW batll$ coU$l4e:r&d, B.a. 4149 and s. 975. t'he Bouae of 1\epreectaUI'.- ~app~Wecl a.a. 4149 with Committee ~menta llb1ch h$4 the coDCureQce ot t:ha ~. on Apd.l 6 • this year. ·

Scrip, •• our De~ i'e~ atatu, ta a 4lffleult -.nti ~naive ~ini&tnttve problent. lt ill a lkll· ~~ubiuJ.attatloa problem which re• quil'e• leiisl#ive asdstuce. there · tii.Z!e U,OOO acre. of out standi~ t~Jcrip rights. these acd.p t'lal\tt~ · 1-.m ~~»1>11&attou el the l1nite4 Statea, ob11satioat to be p.tiafted tn S..«• , .

· !he typiea1 acrip c...-ttft•t• atlll uaaatts£184 .wal!i~ iesueci a hu.n4ud years qo. At that tbie, Ccmgl'ess ~soruab1y eouU au.4 4:1.4 :tss.u drafte ;Jt.pi.nst a te&lllilY :tneldlaW~tib1e :b$\,k .. o! publl~ ·ltm4, p~abably b~ae neb owrae •••• daeaper then t.hl.p&,.,..ut of ~·••·.is mone.r.

JI0\\1, of cw1:ae, the 1an4 t• ueade« for~ Wld~t at:l4 ,euataiu ~ use•, aomfl of them of consideral>lG v..t.ue. •ttbel' plb11c or private.

Tilts clu'm3a in d.reumstan~• baa l·_. to ~xaf%ie lu the certif1cat«a • hut the aitut.tionla by' 11.0 me.au o• cd apiiitt:t.ll4tt:ton e:at!:rely. Good faith . ef.fol'ta to aet these c~ aaU4!Lu _.. 4Lidh~ have ha4 a atop•a&1d• 34 bS.s.tory,. ami owner& have. llli>6l$: ·l~.!Y lt;nt ~ r:!.ahta, 4ft4 time arul

I effort a purauii:J.g them. tu: tlie ":u.t ~t •&084 ,lc.4 lldmi.t:d.ttratiou 'fe• q,uired · 1uch cou:r:.a of actlou.

The heart of tha tr'~bl-. t• t:b.at t11le off~ctab ot thCl J)epat:t:raent ·have Ud no guidance, no ps:oteotton .for the. ueret,se of 4 o~on eense ju4a• raent, and no. incentive to us1at tl~ . holders of wtatallldine ectip to :u.~ate this flof.d:na opt1ou oa 1t1:te ~~~:W,Jlf.e 1a'!l4.,. ·

· taM 'G.t\~St• 1$l!WU .eecttoa. 7 e>.f tht1rql.i)r Aet, be ~;lasaltta4~aa $Uittble fo:r this purp0$e. ~· l.a no $t&tP.ato.~ ~-- oe value fer th1a.

!b.• govem110nt officials t\m4 towa:d the 1ov vatu~ •• aD4 the holder& to tJ$ hiab ~alua lmut•.,. J Claae1fL-.ti.Mi of .141\d lfll!hich ougbt to ~~ 4ispos.t of bec&u.H of 4£ffleu..1t pJ."Obl«as o;f ita =~~ •tat•tt:atf.on f.rl public QWel'alli.p •. u .ttable fH" ,ac.tn.p. J•• led to • ••. tlis.-epa.ut1 iu the vdv.ea of. J.aada ~etofos:e lflli~l.. · ·

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2he Rouae-pas$.0 bill. as ~4•' tbere., il!ontaintt a. atatutory •tandard 'Ahieh will ~ble the Unite4 Ji=atts te. ao f~ri vitb the Uqt.d.datton of the outstanding ob1igat1~. · {!fe d,i.4 r1ct SU\~¥;~ld.. the standar<S, wbich ia the average value of land 'Pltet.t:ad 1~a satiefatti.on of senp c;laims after the Aot of August $, 19.55J b~ut • suppotrt: the at.andard u tultirel)' NttsfAetoq. Any stfl.n4arc1, ·l ~Uit;ht ~. is ··pref•%11.bls to uo at~. 'lh• stan4a.~ suggested t.n. our ~flP()«'t t<t yo~ was e~~t~x: od.gtual effort to srapple with the p~blemJ tlw ~· '"t$ion, Wil thtu, te equall7 s-.tts• f~tOJ:Y•

H.a. 4149 would not ~fuutge prtusent: pnrcedures unt:.U. JUne 30, 1966. Unt11 then aertp holders e<'lu14 OG'Inttnw: to ev!iibmlt ~<trfll~._,tiona to have th~r claima ae.tiefted by public ~· ~,f t'hilU ottm. ~lll<,~ttetion,.:, prortded the se1e¢te4 lm.lda 41!'• elaesU!ieel tv tt. S•ztete;t ~i~ the Xnte:d.osr aa propel!' for web 4ispo$iti.on, an4 p1:'0Vt~, alt·t>• o.f ~t~~~~. that the clai.m is 1 •·

.determl.ned to be vau.d. . ·• ; ' ' . ' ' ' ' ~

~er, after J~y 1, 1966, ltn'lJ· hol,dets of l'ecor4 wou14 be '{l&tmitted to apply only for such lands au ••• fi~st elas4!tfied: by the Secretary ••

·· ~itable for ~tc'd.p 1oeati01.\• Sbct.iol\ 3 of the hill provides that .,public lands so classified shall be of a valu<a of uot lea:s th&t.· the average

"' fair urket value, deta~etl .by the 1-t!C"ttu:y as of the date patent i;• tued, of those public l.andtt actually~_.~~~ 111 exehan~e fol!' each type •f cld.a since Ausw;t S, 1955. •• !hi11J ~1e1ou,. which vas adopted by the House COillnlittea¥..lesbtblt1Jbe• • idf,I:!U1ull• ·wtlt~ for landa wbtob could be ct.ssified fol!' scrip selection.

ln add1t:f.on, H.J:. 4149 would tlireet ~he Sect'etaq to •••• bafot'e Janu­ary 1, 1968• to evet";Y acrip c1aitm:tnt ot r.eoorc!t an offer to co1\W\y to bim l$1\de of a value not· less tbaa t:h~ 4etQ'DliMd mb~ value per acre. Conc-uttent witb these . proeedures fer petmittins e~cri.p to 'be r~aeu1ed in 'PUblic lands, B.a. 4149 would p~.J.t s~ip holders to elect to receive =oney hated ()f 1~ fot: t!leil" $c;fip. · tba _,~eta;:y c~p$utation we»lld be at the rate per -.ere equal to the av.r•s• vatua of ~ led• offered

· by the Secretary to elataute t>f t:ecori. ,

Slue• the pa~e of this b11l ~ the Jj.m.se, ·. • b!IV'6 beeil stviug· thought to its prmupt impl.ement&tJ.on lf· el!e.e:teil. into li=w:, md.le the btU. seta a Pliuin'lum value requirement it is not specific as to uy maximum valu~lf,. In classifying lands as suttable for 8Ctip s~lectioa as provided b., Section. 3(a) it ia apparent that the t.ppra.iad. value~~ will, in all prol>a• ·· bility. range above the miu~ tdtlt BOlle t:lm'bered tracts n-.vi~ valuea of seven.l thousand 4ollars n ~l:-. A value atl'ndard is needed to pn• elude the taking of htsh valued "eswrces. lot< ea~mple,. tblber on a aill$le acre of ltUUl tn ws~rn C>t"agou 'iJttl1 ile •rt~l &JJ much as .4,SOO. The absence of a ~.va~IO; t~t~ndatrl ~bt ~~•ud.t a windfall to scn:itt holcSeJ:•a and . .oo=tnue• the cltfftcu1ty ~ '"'Ue1:s 4114 tha: aovem- ., mont. ·

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lt 111 our intent, if the 1>111 it enaete4 iu the lloua111•passed fon1 1 to offer ·aerlp hoWera lat14s r~a; iu value b'mn tba average fair :matket value ae · tr~scrtbeci in lectiot~. 3(a) to app~tely ten percen.t above that averai" value.

It is our belief that f.t wou14 be reuonablii!, •n4 it is our intention U trut bill is enacted f.n its present fom, to itatruct. State Direetora aud lU.strict Ms.nag;es:e. to elaiiUJify 1~~tnd$ as auttab1e fo't satiafaction of scrip cl.Jliu only if tbe 1...,..• so clsi~~Jof.!ied ~lave Wr market value with1'D. the 't&nie of 10 percent above the averase fAit' al'ket value pr4uJcri.b94 b . Section !(a) as the stat~or,y floo~.

An e.quivalent tituatlon ui•te with mfet~ee to the period which should l>e used in ~putina the 4\ffn:aae. value. ItA C'h:de~ to give finality And 4efil:liteu•s, which 'We: think; t•· lt.l!ef!lnded, we 1f0u14 -.ke tha deteminatioll we~ tbe perio<l from .luaust J, 1.9SS, te tb& 4at~ o~ the enaet:1nent of the bill. 'rbe a1ten.t1w. ()f ~ou~••• would b• a ~ttl$ averaa••- which would t.eud to creep upwa%'4 !a vlet~~ of .:th$ .a¢S.tutol')" .t~.

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Its already JJtated, 1\0 appll~tiQl.:\8 ·.tit~ se~eet ~~lacud.fied lands "ould be fe~tt4d after 3'1.lll(t 30, 196~. ,U1 ~;1th~Z' •v~UQtion.t. e~ept tboae ha&$4 Ol'l. So1cU,eJ:3' Addit:ion&lltomei!J'"'it.~i ll~J;bt31 e:.ttbei:" fol;" lff,uda, or fo~ money. wauld .~ re~£•84 tp be Jubmltt:atl ~·*~•t• J'tmn~;· 1. 19'70. Sol4ter•a Addi• tional lbnaateao ct•• woul4 }J.!Jl)l~ t~~~ be •l'liiliU\Id by Jmma"ry1. 1975. oa tboae 4at••• all uno:titfl.cl ,e~1t:~p ~!41.14. bj•• ~11 u4 voi<l. uc~t that

. ~ ri;hta of ~use who 1$4 app11~e4 t·b\e1y fo:llf ~tlte satisfaction of their ltlcl."ip •ould corJ.tinue t& M reco~~n~r~.a,, untill!lli.i;btt the Md.p ~ I'~Cime4• oz; tbe t~etton t..-natd. ,

te beU.ev41! that 1 .. 11. 4149 r-,;ra*~mta • ~t~tb1• .f.Ud ~h ne.ede4 atho4 .. of •solutio~ of scd.p cl•tm1. lt• llt:~~Y tts -~~t. .. ' ')'' ' ' '

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