QUITCLAIMING INTEREST OF THE UNITED STATES TO CERTAIN LANDS IN PLACER COUNTY, CALIF.

JULY 15 (legislative day, JULY 6), 1953.-Ordered to be printed

Mr. BUTLER of Nebraska, from the Committee on Interior and Insular Affairs, submitted the following

REPORT

[To accompany H. R. 127]

The Senate Committee on Interior and Insular Affairs, having considered the bill, H. R. 127, an act to quitclaim interest of the United States to certain land in Placer County. Calif., report favorably thereon without amendment and recommend that the bill do pass. The purpose of this bill is to clear title to a certain tract of land believed to be clouded by a reservation in the original patent issued in 1885. A Supreme Court decision has held that the reservation in question is invalid, and the Department of Interior, therefore, believes that there should be no need for legislation of this type. However, in order to quiet title in this particular case, the Department has no objection to this bill.

The report by the House Committee on Interior and Insular Affairs on this bill is appended hereto and made a part of this report.

EXPLANATION OF THE BILL

The purpose of H. R. 127 is to clear title to certain land in Placer County, Calif. which was part of a grant made by the United States to the Central Pacific Railroad Co. in 1885. No appropriation of Federal funds would be necessitated by the bill's enactment.

When patent originally was issued on the land in question, it contained a clause which read as follows:

"Yet excluding and excepting from the transfer by these presents, all mineral Cands should any such be found to exist in the tracts described in the foregoing, but this exclusion and exception according to the terms of the statute shall not be construed to include coal and iron land."

Despite the fact that the United States Supreme Court in 1914 held a similar clause in a railroad land-grant patent to be invalid (Burke v. Southern Pacific Railroad Company, 234 U. S. 669), the present owners of the land referred to in

this bill are told by title companies that the title is clouded by the mineral lar exception clause in the original patent. Legislative action disclaiming for t Federal Government any interest in this land because of such clause. therefore, deemed desirable by your committee.

The Department of the Interior has no objection to the enactment of H. R. 1 but considers legislation unnecessary in view of the Supreme Court decisi referred to above. The Department suggests that a general bill, much broad in scope, be substituted for H. R. 127. The committee, however, feels that t Department's proposed bill, since its provisions are general, should be the subje of further study and reports II. R. 127 with its original language The committee has amended the bill to correct a typographical error. The report of the Department of the Interior is set forth below in full: DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington, D. C., June 12, 1953.

Hon. A. L. MILLER,

Chairman, Committee on Interior and Insular Affairs,

House of Representatives, Washington, D. C.

MY DEAR MR. MILLER: This is in reply to the request of your committee f a report on H. R. 127, a bill to quitclaim interest of the United States to certa land in Placer County, Calif. This bill is identical with H. R. 5365 which w introduced in the 82d Congress, but received no action in either House.

The enactment of legislation on this subject does not appear necessary in vie of the settled state of the law since 1914, as explained below. In the event, hov ever, confirmatory legislation is deemed desirable, a general measure, along th lines of the attached draft, would appear preferable to a special bill, such a H. R. 127.

H. R. 127 would quitclaim to the Central Pacific Railroad Co., its successo and assigns, all the Federal interest in the NE and the NSE of section 3 Our records indicate that patent issued to the Central Pacific Railroad Co. o April 30, 1885, for all of the land described in H. R. 127.

T. 14 N., R. 10 E., M. D. M.

It seems, however, that there is believed to be a cloud on the title of the land because of the presence of a clause in the patent which reads as follows:

"Yet excluding and excepting from the transfer by these presents, all miner lands should any such be found to exist in the tracts described in the foregoin but this exclusion and exception according to the terms of the statute shall no be construed to include coal and iron land."

In the case of Burke v. Southern Pacific Railroad Company (234 U. S. 669 (1914) involving a similar clause in a railroad land grant patent, the United State Supreme Court held the clause to be invalid. Since the Burke decision, the clauses have not been inserted in patents to railroad companies in connection wit the Land Grant Acts.

Where a patent has been issued without a valid reservation of minerals, an there is no fraud discovered, the patent carries complete title to the land includin all minerals. The Federal Government therefore has no ownership of the minera in the lands described in H. R. 127. Hence, there appears to be no need for th legislation.

In view of the many patents issued to railroads prior to 1914 containing simils unauthorized mineral land exception clauses, the enactment of this bill migh result in the request for similar legislation in many cases. It would be preferable if Congress wishes to provide the holders of railroad grant lands with a positiv basis for meeting the title objections that appear to have been raised by certai title companies, to enact a law declaring void the mineral land exception clause in patents for railroad grant lands, and disclaiming for the Federal Governmen any interest in such lands because of such clauses. This type of legislation woul have the advantage, not only of avoiding a multiplicity of special bills, but als of avoiding the administrative work incident to the issuance of new patents.

If your committee believes that confirmatory legislation is needed to mee situations such as that presented in H. R. 127, I urge, therefore, that this resul be accomplished through the enactment of general legislation along the lines the proposed substitute bill attached to this report

The Bureau of the Budget has advised that there is no objection to the sub mission of this report to your committee.

Sincerely yours,

ORME LEWIS, Acting Secretary of the Interior.

PROPOSED SUBSTITUTE BILL FOR H. R. 127

A BILL To remove a cloud on the title of certain railroad companies, and their successors by reason of a provision in certain patents excluding and excepting mineral lands

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in any case where a patent to a railroad company for public lands granted to such company by any Act of Congress contains a provision to the effect that all mineral lands, should any such be found to exist, are excluded and excepted from the transfer of title made by the patent, such provision is hereby declared to be void. The United States hereby disclamis any interest in the lands described in any such patent, and in the mineral resources of those lands, that might exist by reason of the presence of such provision in the patent.

Enactment of H. R. 127 is unanimously recommended by the Committee on Interior and Insular Affairs.

3D CONGRESS 1st Session

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SENATE

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REPORT No. 587

AUTHORIZING THE SECRETARY OF THE INTERIOR TO ISSUE TO TOM GWIN A PATENT IN FEE TO CERTAIN LANDS IN THE STATE OF MISSISSIPPI

JULY 15 (legislative day JULY 6), 1953.-Ordered to be printed

Mr. BUTLER of Nebraska, from the Committee on Interior and Insular Affairs, submitted the following

REPORT

To accompany H. R. 947]

The Senate Committee on Interior and Insular Affairs, having considered the bill, H. R. 947, an act authorizing the Secretary of the Interior to issue to Tom Gwin a patent in fee to certain lands in the State of Mississippi, report favorably thereon and recommend that it do pass without amendment.

This bill provides that the Secretary of Interior shall issue a patent to certain lands in Mississippi to Mr. Tom Gwin at a price to be fixed by the Secretary, but not less than $1.25 per acre. Mr. Gwin purchased the lands in 1943, and he and his predecessors can show that they have held it in peaceful, adverse possession since 1819. It is a case that comes within the terms of the bill, H. R. 1308, liberalizing the Color of Title Act, which has also been reported by this Committee. The House report is appended hereto and made a part of this report.

EXPLANATION OF THE BILL

No

HR 947 would direct the Secretary of the Interior to issue patent for approxiLately 90 acres of land in Mississippi to Tom Gwin of Greenwood, Miss. expenditure of Federal funds is required.

The bill provides that the tract shall be sold at a price to be fixed by the Secretary, by appraisal or otherwise, but not less than $1 25 per acre, and that conveyare shall not affect any valid adverse rights, if any, of third parties.

According to the records of the Bureau of Land Management, the tract was first purchased in 1819 at a price of $320 The original purchaser paid only $16 of the $320 and patent accordingly was never issued Throughout the following rs, the land changed ownership several times and the validity of the title was Dot questioned at any time.