(49 Stat. 1976), toward the administration, protection, and improvement of any district shall be additionally available for the leasing of lands under this act.

SEC. 4. All moneys received by the Secretary of the Interior in the administration of leased lands as provided in section 2 of this Act shall be deposited in the Treasury of the United States as miscellaneous receipts, but are hereby made available, when appropriated by the Congress, for the leasing of lands under this Act and shall not be distributed as provided under Sections 10 and 11 of the Act of June 28, 1934 (48 Stat. 1269), as amended June 26, 1936 (49 Stat. 1976).

The favorable report of the Acting Secretary of the Interior is hereinbelow set forth in full and made a part of this report.

Hon. RENE L. DEROUEN,

THE SECRETARY OF THE INTERIOR,
Washington, October 20, 1987.

Chairman, Committee on the Public Lands,

House of Representatives.

MY DEAR MR. DEROUEN: I have your letter of July 29 requesting a report on H. R. 7874, a bill to provide for the leasing of State, county, and privately owned lands for the purpose of furthering the orderly use, improvement, and development of grazing districts.

On May 18 the Acting Secretary of the Interior, after suggesting certain minor amendments, made report to you on H. R. 5942 showing the benefits to be derived from the enactment of such a measure but pointing out that the Bureau of the Budget had advised that the bill was not in accord with the program of the President. H. R. 7874 is very similar to H. R. 5942 and includes the amendments made in the letter referred to so far as applicable to the present bill but has had eliminated therefrom all of the provisions contained in H. R. 5942 to purchase land. While no objections were offered to these eliminated provisions in the report on H. R. 5942, there is no need existing in the Department of the Interior for the Secretary to have the right to purchase land, and the elimination of these provisions would not adversely affect the bill from the standpoint of the Department were H. R. 7874 enacted into law. On the other hand, the Department of the Interior is confronted with a situation in administering the public lands in grazing districts, a proper solution of which could be greatly facilitated if the Secretary had the authority to lease State and privately owned lands lying within grazing districts.

After a thorough study of the bill now under consideration, I feel that the following amendments should be made:

On page 1 strike out the proviso beginning with line 10 and substitute in lieu thereof the following:

"Provided, That no such leases shall run for a period of more than ten years and in no event shall the grazing fees paid to the United States for the grazing privileges on any of the lands leased under the provisions of this section be less than the rental paid by the United States for any of such lands."

On page 2 strike out the proviso beginning with line 1 and substitute in lieu thereof the following:

"Provided further, That nothing in this section shall be construed as authorizing the appropriation of any moneys except that moneys heretofore or hereafter appropriated for construction, purchase, and maintenance of range improvements within grazing districts, pursuant to the provisions of sections 10 and 11 of the Act of June 28, 1934 (48 Stat. 1269), as amended June 26, 1936 (49 Stat. 1976), may be made additionally available by the Congress for the leasing of land under this Act."

Page 2, after section 3 add the following new sections 4 and 5:

"SEC. 4. That contributions received by the Secretary of the Interior under section 9 of the Act of June 28, 1934 (48 Stat. 1269), as amended June 26, 1936 (49 Stat. 1976), toward the administration, protection, and improvement of any district shall be additionally available for the leasing of lands under this Act.

"SEC. 5. All moneys received by the Secretary of the Interior in the administration of leased lands as provided in section 2 of this Act shall be deposited in the Treasury of the United States as miscellaneous receipts, but are hereby made. available, when appropriated by the Congress, for the leasing of lands under this Act and shall not be distributed as provided under sections 10 and 11 of the Act of June 28, 1934 (48 Stat. 1269), as amended June 26, 1936 (49 Stat. 1976)."

As pointed out in the letter of May 18 the leasing of these lands by the Secretary would result in no net cost to the Government, as the demand for grazing lands exceeds the supply, and the use of the lands would be readily disposed of under the provisions of the Taylor Grazing Act. The enactment of this law would make possible a coordinated control and use of the lands which are so intermingled with public lands as to make reasonable administration of the public lands and the privately owned lands so difficult as to border on the impossible.

The Bureau of the Budget has indicated that there is no objection to the presentation of this report.

Sincerely yours,

CHARLES WEST, Acting Secretary of the Interior.

Sections 9, 10, and 11 of the act of June 28, 1934 (48 Stat. 1269), as amended June 26, 1936 (49 Stat. 1976), are set forth below for information only.

SEC. 9. The Secretary of the Interior shall provide, by suitable rules and regulations, for cooperation with local associations of stockmen, State land officials, and official State agencies engaged in conservation or propagation of wild life interested in the use of the grazing districts. The Secretary of the Interior shall provide by appropriate rules and regulations for local hearings on appeals from the decisions of the administrative officer in charge in a manner similar to the procedure in the land department. The Secretary of the Interior shall also be empowered to accept contributions toward the administration, protection, and improvement of the district, moneys so received to be covered into the Treasury as a special fund, which is hereby appropriated and made available until expended, as the Secretary of the Interior may direct, for payment of expenses incident to said administration, protection, and improvement, and for refunds to depositors of amounts contributed by them in excess of their share of the cost.

SEC. 10. That, except as provided in sections 9 and 11 hereof, all moneys received under the authority of this Act shall be deposited in the Treasury of the United States as miscellaneous receipts, but 25 per centum of all moneys received from each grazing district during any fiscal year is hereby made available when appropriated by the Congress, for expenditure by the Secretary of the Interior for the construction, purchase, or maintenance of range improvements, and 50 per centum of the money received from each grazing district during any fiscal year shall be paid at the end thereof by the Secretary of the Treasury to the State in which said grazing district is situated, to be expended as the State legislature may prescribe for the benefit of the county or counties in which the grazing district is situated: Provided, That if any grazing district is in more than one State or county, the distributive share to each from the proceeds of said district shall be proportional to its area therein."

SEC. 11. That when appropriated by Congress, 25 per centum of all moneys received from each grazing district on Indian lands ceded to the United States for disposition under the public-land laws during any fiscal year is hereby made available for expenditure by the Secretary of the Interior for the construction, purchase, or maintenance of range improvements; and an additional 25 per centum of the money received from grazing during each fiscal year shall be paid at the end thereof by the Secretary of the Treasury to the State in which said lands are situated, to be expended as the State legislature may prescribe for the benefit of public schools and public roads of the county or counties in which such grazing lands are situated. And the remaining 50 per centum of all money received from such grazing lands shall be deposited to the credit of the Indians pending final disposition under applicable laws, treaties, or agreements. The applicable publicland laws as to said Indian ceded lands within a district created under this Act shall continue in operation, except that each and every application for nonmineral title to said lands in a district created under this Act shall be allowed only if in the opinion of the Secretary of the Interior the land is of the character suited to disposal through the Act under which application is made and such entry and disposal will not affect adversely the best public interest, but no settlement or occupation of such lands shall be permitted until ninety days after allowance of an application.

AUTHORIZING THE ADDITION OF CERTAIN LANDS TO THE SHASTA AND KLAMATH NATIONAL FORESTS, CALIF.

January 31, 1938.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. ENGLEBRIGHT, from the Committee on the Public Lands, submitted the following

REPORT

[To accompany H. R. 7689]

The Committee on the Public Lands, to whom was referred the bill (H. R. 7689) authorizing the addition of certain lands to the Shasta and Klamath National Forests, Calif., report favorably thereon with the recommendation that the bill do pass the House as amended:

Page 2, line 1, before the word "chiefly" insert the words "found by the Secretaries of Agriculture and the Interior".

The favorable reports of the Acting Secretaries of Agriculture and the Interior are hereinbelow set forth in full and made a part of this report.

Hon. RENÉ L. DEROUEN,

Chairman, House Committee on the Public Lands,

AUGUST 17, 1937.

House of Representatives, Washington, D. C.

DEAR MR. DEROUEN: Further reference is made to your request of June 29 for a report on H. R. 7689 to authorize the addition of certain lands to the Shasta and Klamath National Forests, Calif.

A report has been received from the regional forester regarding the areas described in the above bill. A total of 451,000 acres are involved; 302,000 acres are adjacent to the Shasta National Forest, and 149,000 acres adjoin the Klamath National Forest. Within these areas 21,000 acres are unreserved public domain of which such areas as are chiefly valuable for forest purposes may, by the terms of the bill, be added to the national forests by Presidential proclamation.

The bill further provides that the privately owned lands within the areas may be acquired in exchange for Government lands or timber under the General Exchange Act of March 20, 1922 (42 Stat. 465). It is estimated that about 45,000 acres are comprised in small ranches, pasture lands, wood lots, high value recreational areas, and homes. Their acquisition by the Government, of course, is not contemplated. The net acreage eventually to be acquired adjacent to the two national forests, therefore, would not exceed 385,000 acres. Enactment of the bill would make possible the acquisition of at least a part of the more important tracts.

The designated areas largely lie between the present national-forest boundaries and more logical natural boundaries as established by topography and soils and by the limits of vegetal zones primarily valuable for timber production and watershed protection.

Of the area adjacent to the Klamath National Forest, practically all is timberland and lands of high watershed value. About 25 percent has been cut over and a substantial additional area is planned for cutting within the next few years.

Of the areas adjacent to the Shasta National Forest, all is timberland, the major part of which also has watershed value. About 60 percent is cut-over and additional large areas will be cut over by present logging operations.

As the timber is removed it is desirable that the Government acquire the cut-over lands and protect them from fire and overgrazing, and manage them for future permanent timber production and multiple forest use.

The most important industry in Siskiyou County is lumbering which employs from 3,500 to 5,000 persons depending upon market conditions. Thus, it is highly important to keep the lands permanently producing timber crops.

In most instances owners of cut-over land are willing to dispose of them for barely enough to clear up taxes and convey title. Given authority, as proposed in the bill in question, the Government gradually can acquire these lands in exchange for land or timber. Such acquisition will assure management for full returns of timber, watershed, and other values. Retention of such lands by private owners, on the other hand, usually results in overgrazing, lowered productive capacity, and tax delinquency.

The waters from the areas in question are used largely for irrigation purposes in Scott and Shasta Valleys. Preservation of vegetal cover on these watersheds is essential to prevent erosion and resultant silting and other deleterious effects of denudation.

The bill is endorsed by the county board of supervisors and local committees as well as by timberland owners having lands within the specified areas.

In view of the foregoing considerations it is the judgment of this Department that the enactment of the proposed legislation will be in the public interest. This report has been referred to the Budget Bureau and advice received that there is no objection to the submission of this report.

Sincerely,

Hon. RENÉ L. DEROUEN,

M. L. WILSON, Acting Secretary.

DEPARTMENT OF THE INTERIOR,
Washington, August 18, 1937.

Chairman, Committee on the Public Lands,

House of Representatives.

MY DEAR MR. DEROUEN: I have received your request for a report on H. R. 7689, proposing to authorize the inclusion of certain lands in the Klamath and Shasta National Forests, in California.

The measure would authorize the addition to the national forests of lands chiefly valuable for national-forest purposes within the therein described areas, wherein private ownership through exchange under the provisions of the act of March 20, 1922 (42 Stat. 465), as amended, for an equal value of national-forest timber or land in the State, including the public lands within such areas, and where public by proclamation of the President.

The several areas described adjoin or are situated near the boundaries of the national forests. The records of this Department show that they have a total area of 461,817 acres, which has largely passed out of Government ownership. The scattered public lands within the areas aggregate 26,083 acres, and 2,665 acres thereof are embraced in unperfected homestead entries, 3,165 acres have been leased under section 15 of the Taylor Grazing Act of June 28, 1934 (48 Stat. 1269), as amended, and 800 acres are included in undisposed-of applications for such lease.

Certain of the public lands are withdrawn for power, town-site, or stock driveway purposes, and the remaining lands are included in the general withdrawal made by the Executive order of November 26, 1934, as amended, in furtherance of the Grazing Act and are subject to certain forms of disposition and use under that act.