Chapter II: Front Matter (2)

The splendid progress made by Minnesota and other States merely emphasizes the importance of the Conservation movement. Warned by the decay of older nations, we must act before the crisis of exhausted natural resources reaches our Nation and commonwealths. Indeed, warned by signs that are only too plain in our own midst, we must take decisive action without delay. Fortunately, we have passed the pioneer stage of development. Our Nation and commonwealths have all experienced many of the disasters resulting from the skimming of natural resources. Having discovered the vast mines of wealth which surround us everywhere, we must now and forever determine that ignorance, selfishness, and greed shall no longer control our governments and exhaust our resources. (Great applause and cheers)

The problems before us are not merely of tremendous importance, but they are also difficult as to solution. They frequently involve sharply conflicting claims and interests as between the Nation and the various commonwealths. Every State as well as the Nation itself should have a distinct and separate department empowered to deal with all these problems. It matters but little how it should be designated, though it would serve all purposes best to be known as a Conservation Commission. But it is of vital importance that the agency should be given sufficient authority and funds, so as to enlist the strongest and best men in the Conservation service. That such commissions would have sufficient work, and that from an economic standpoint they would constitute good investments, there is and can be no question.

Minnesota, as a distinctly progressive State and a recognized leader in the Conservation movement, heartily welcomes this Congress with its noted guests and speakers. We have the special honor of entertaining and hearing the three truly great men who have contributed so much to the actual achievements of the Conservation movement, and they are the three most distinguished guests of this Congress, President Taft (applause and the Chautauqua salute), Colonel Roosevelt (applause and cheers), and James J. Hill. Minnesota appreciates this honor and will prove herself worthy thereof. As her Chief Executive, I earnestly hope that the deliberations of this Congress may bring results far beyond our hopes or expectations. I am intensely interested in the Conservation of our resources, and will use all my efforts in securing and enforcing the best possible legislation, believing firmly that the Conservation movement, as here outlined, will promote the general public welfare in a far greater degree than any other, and that it is destined to mark the twentieth century as an era of the greatest industrial achievement for the benefit of all mankind. The people of Minnesota feel keenly their duties and responsibilities with reference to their great heritage of unsurpassed natural resources, and will continue as leaders in the only movement that can insure the perpetuation of our country as the greatest agricultural, industrial and commercial nation in the world. On their behalf, I welcome you to the State. I thank you. (Applause)

* * * * *

President BAKER--It is now my pleasure to call upon his Honor, Mayor Herbert E. Keller, who will welcome you on behalf of the great city of Saint Paul. (Great applause and cheers)

Mayor KELLER--Mr President, Delegates to the Second National Conservation Congress, and Guests: Upon me, as Chief Executive of the city where this body will carry on its labors, the honor of welcoming you devolves. It is a great privilege and pleasure to discharge this duty, and yet my greeting can but inadequately convey to you the appreciation felt by all Saint Paul at being selected as the scene of this great Congress, whose deliberations mark the commencement of a new epoch in the history of our country. (Applause)

The Conservation to and by ourselves as trustees, and the dedication and perpetuation to our children and our children's children as beneficiaries, of the tremendous natural resources of our country is a duty and trust too sacred and too imperative to be disregarded or lightly considered, once the situation stands revealed in its true light. It is purely and simply a proposition of the greatest good for the greatest number, and the sound judgment of a great people, with the patriotism and unselfish devotion to duty of the founders of our country ever before them, must and shall consider the greatest number to be the countless millions of population to follow after us, and to whom must be handed down a heritage not diminished or impoverished by us, the temporary executors.

We may be likened to children turned loose in some vast Midas treasurehouse and told to go where we would and take what we pleased. A knock at the doors of Congress, a State legislature, or a city council, gives the magical "Open Sesame!" And behold! the lavishing on some private interest or individual of a great National or State property or municipal right or franchise!

The Nation's bounty and generosity has been limitless, for the entire previous history of the whole world provides no precedent for a guide. But, fortunately, thoughtful minds began to work, awakened to what was being done, and the result is the present all-pervasive sentiment and determination to economize, to check improvidence and waste, and to establish a policy whereby future generations, as well as the present, may have equal opportunities to enjoy our natural benefits and advantages; and Conservation is now more than a mere issue: it is an assured, established, sane and universal desire to preserve and perpetuate for ourselves and posterity the treasures of our country.

And so I bid you welcome to the city of Saint Paul. May your labors be fruitful of great good. I know that your stay with us will be enjoyable. Our city limits may be somewhat circumscribed for the immense crowds here this week, but our hospitality and good wishes are as limitless as the ocean. (Applause)

* * * * *

President BAKER--Fellow delegates, I am sure we all extend to his Honor, Mayor Keller, a hearty vote of thanks for what he has done in preparing for this Congress.

And now comes a privilege of which I am very proud--as a southern man all my life--that of presenting to you the President of this great Nation. (Great applause and cheers, the audience rising)

ADDRESS BY THE PRESIDENT OF THE UNITED STATES

_Ladies and Gentlemen_: Before beginning my formal address, I should like to extend to the President and the Managers of this Congress, to Governor Eberhart, and to the Mayor of the city, my sincere and cordial thanks for the opportunity to come here and address this magnificent audience, and to reach the people of the United States on a subject of the utmost interest to them and to every patriot. (Applause)

Conservation, as an economic and political term, has come to mean the preservation of our natural resources for economical use, so as to secure the greatest good to the greatest number.

In the development of this country, in the hardships of the pioneer, in the energy of the settler, in the anxiety of the investor for quick returns, there was very little time, opportunity, or desire to prevent waste of those resources supplied by nature which could not be quickly transmuted into money; while the investment of capital was so great a desideratum that the people as a community exercised little or no care to prevent the transfer of absolute ownership of many of the valuable natural resources to private individuals, without retaining some kind of control of their use. The impulse of the whole new community was to encourage the coming of population, the increase of settlement, and the opening up of business; and he who demurred in the slightest degree to any step which promised additional development of the idle resources at hand was regarded as a traitor to his neighbors and an obstructor to public progress. But now that the communities have become old, now that the flush of enthusiastic expansion has died away, now that the would-be pioneers have come to realize that all the richest lands in the country have been taken up, we have perceived the necessity for a change of policy in the disposition of our natural resources so as to prevent the continuance of the waste which has characterized our phenomenal growth in the past. Today we desire to restrict and retain under public control the acquisition and use by the capitalists of our natural resources.

The danger to the State and to the people at large from the waste and dissipation of our national wealth is not one which quickly impresses itself on the people of the older communities, because its most obvious instances do not occur in their neighborhood, while in the newer part of the country the sympathy with expansion and development is so strong that the danger is scoffed at or ignored. Among scientific men and thoughtful observers, however, the danger has always been present; but it needed some one to bring home the crying need for a remedy of this evil so as to impress itself on the public mind and lead to the formation of public opinion and action by the representatives of the people. Theodore Roosevelt (great and prolonged applause) took up the task in the last two years of his second administration, and well did he perform it. (Great and prolonged applause)

As President of the United States I have, as it were, inherited this policy, and I rejoice in my heritage (great applause). I prize my high opportunity to do all that an Executive can do to help a great people to realize a great national ambition; for Conservation _is_ National. It affects every man of us, every woman, every child. What I can do in the cause I shall do, not as President of a party, but as President of the whole people (enthusiastic applause and cheers). Conservation is not a question of politics, or of factions, or of persons. It is a question that affects the vital welfare of all of us--of our children and our children's children. I urge that no good can come from meetings of this sort unless we ascribe to those who take part in them, and who are apparently striving worthily in the cause, all proper motives (applause), and unless we judiciously consider every measure or method proposed with a view to its effectiveness in achieving our common purpose, and wholly without regard to who proposes it or who will claim credit for its adoption (great applause). The problems are of very great difficulty, and call for the calmest consideration and clearest foresight. Many of the questions presented have phases that are new in this country, and it is possible that in their solution we may have to attempt first one way and then another. What I wish to emphasize, however, is that a satisfactory conclusion can only be reached promptly if we avoid acrimony, imputations of bad faith and political controversy (cries of "Hear, hear," and great applause).

The public domain of the Government of the United States, including all the cessions from those of the thirteen States that made cessions to the United States, and including Alaska, amounts in all to about 1,800,000,000 acres. Of this there is left as purely Government property outside of Alaska something like 700,000,000 acres. Of this the national forest reserves in the United States proper embrace 144,000,000 acres. The rest is largely mountain or arid country, offering some opportunity for agriculture by dry farming and by reclamation, and containing metals as well as coal, phosphates, oils, and natural gas. Then the Government owns many tracts of land lying along the margins of streams that have water-power, the use of which is necessary in the conversion of the power into electricity and its transmission.

I shall divide my discussion under the heads of (1) agricultural lands; (2) mineral lands--that is, lands containing metalliferous minerals; (3) forest lands; (4) coal lands; (5) oil and gas lands; and (6) phosphate lands. I feel that it will conduce to a better understanding of the problems presented if I take up each class and describe, even at the risk of tedium, _first_, what has been done by the last Administration and the present one in respect to each kind of land; _second_, what laws at present govern its disposition; _third_, what was done by the present Congress in the matter; and _fourth_, the statutory changes proposed in the interest of Conservation.

AGRICULTURAL LANDS

Our land laws for the entry of agricultural lands are as follows:

The original Homestead Law, with the requirements of residence and cultivation for five years, much more strictly enforced now than ever before.

The Enlarged Homestead Act, applying to non-irrigable lands only, requiring five years' residence and continuous cultivation of one-fourth of the area.

The Desert-land Act, which requires on the part of the purchaser the ownership of a water-right and thorough reclamation of the land by irrigation, and the payment of $1.25 per acre.

The Donation or Carey Act, under which the State selects the land and provides for its reclamation, and the title vests in the settler who resides upon the land and cultivates it and pays the cost of the reclamation.

The National Reclamation Homestead Law, requiring five years' residence and cultivation by the settler on the land irrigated by the Government, and payment by him to the Government of the cost of the reclamation.

There are other acts, but not of sufficient general importance to call for mention unless it is the Stone and Timber Act, under which every individual, once in his lifetime, may acquire 160 acres of land, if it has valuable timber on it or valuable stone, by paying the price of not less than $2.50 per acre, fixed after examination of the stone or timber by a Government appraiser.

In times past, a great deal of fraud has been perpetrated in the acquisition of lands under this Act, but it is now being much more strictly enforced, and the entries made are so few in number that it seems to serve no useful purpose and ought to be repealed. (Applause)

The present Congress passed a bill of great importance, severing the ownership of coal by the Government in the ground from the surface and permitting homestead entries upon the surface of the land, which, when perfected, gives the settler the right to farm the surface, while the coal beneath the surface is retained in ownership by the Government and may be disposed of by it under other laws.

There is no crying need for radical reform in the methods of disposing of what are really agricultural lands. The present laws have worked well. The Enlarged Homestead Law has encouraged the successful farming of lands in the semi-arid regions. Of course the teachings of the Agricultural Department as to how these sub-arid lands may be treated and the soil preserved for useful culture are of the very essence of Conservation. Then the conservation of agricultural lands is shown in the reclamation of arid lands by irrigation, and I should devote a few words to what the Government has done and is doing in this regard.

By the Reclamation Act a fund has been created of the proceeds of the public lands of the United States with which to construct works for storing great bodies of water at proper altitudes from which, by a suitable system of canals and ditches, the water is to be distributed over the arid and sub-arid lands of the Government to be sold to settlers at a price sufficient to pay for the improvements. Primarily the projects are and must be for the improvement of public lands. Incidentally, where private land is also within the reach of the water supply, the furnishing at cost of operation of this water to private owners by the Government is held by the federal Court of Appeals not to be a usurpation of power; but certainly this ought not to be done except from surplus water not needed for Government land. About thirty projects have been set on foot, distributed through the public-land States, in accordance with the Statute, by which allotments from the reclamation fund are required to be, as nearly as practicable, in proportion to the proceeds from the sale of the public lands in the respective States.

The total sum already accumulated in the reclamation fund is $60,273,258.22, and of that all but $6,491,955.34 has been expended. It became very clear to Congress at its last session, from the statements made by experts, that these thirty projects could not be promptly completed with the balance remaining on hand, or with the funds likely to accrue in the near future. It was found, moreover, that there are many settlers who have been led into taking up lands with the hope and understanding of having water furnished in a short time, who are left in a most distressing situation. I recommended to Congress that authority be given to the Secretary of the Interior to issue bonds in anticipation of the assured earnings by the projects, so that the projects, worthy and feasible, might be promptly completed and the settlers might be relieved from their present inconvenience and hardship (applause). In authorizing the issue of these bonds, Congress limited the application of their proceeds to those projects which a board of army engineers, to be appointed by the President, should examine and determine to be feasible and worthy of completion. The board has been appointed, and soon will make its report.

Suggestions have been made that the United States ought to aid in the drainage of swamp lands belonging to the States or private owners, because, if drained, they would be exceedingly valuable for agriculture and contribute to the general welfare by extending the area of cultivation. I deprecate the agitation in favor of such legislation. It is inviting the general Government into contribution from its treasury toward enterprises that should be conducted either by private capital or at the instance of the State (applause). In these days there is a disposition to look too much to the Federal Government for everything (applause). I am liberal in the construction of the Constitution with reference to Federal power (applause); but I am firmly convinced that the only safe course for us to pursue is to hold fast to the limitations of the Constitution, and to regard as sacred the powers of the States (great applause and cheers). We have made wonderful progress, and at the same time have preserved with judicious exactness the restrictions of the Constitution. There is an easy way in which the Constitution can be violated by Congress without judicial inhibition, to-wit, by appropriations from the National treasury for unconstitutional purposes. It will be a sorry day for this country if the time ever comes when our fundamental compact shall be habitually disregarded in this manner. (Applause)

MINERAL LANDS

By mineral lands, I mean those lands bearing metals, or what are called metalliferous minerals.

The rules of ownership and disposition of these lands were first fixed by custom in the West, and then were embodied in the law, and they have worked, on the whole, so fairly and well that I do not think it is wise now to attempt to change or better them. The apex theory of tracing title to a lode has led to much litigation and dispute, and ought not to have become the law, but it is so fixed and understood now that the benefit to be gained by a change is altogether outweighed by the inconvenience that would attend the introduction of a new system. So too, the proposition for the Government to lease such mineral lands and deposits and to impose royalties might have been, in the beginning, a good thing, but now that most of the mineral land has been otherwise disposed of--I do not refer here to coal land or gas land or oil land or phosphate land--it would hardly be worth while to assume the embarrassments of a radical change.

FOREST LANDS

Nothing can be more important in the matter of Conservation than the treatment of our forest lands. It was probably the ruthless destruction of forests in the older States that first called attention to the necessity for a halt in the waste of our resources. This was recognized by Congress by an act authorizing the Executive to reserve from entry and set aside public timber lands as National forests. Speaking generally, there has been reserved of the existing forests about 70 percent of all the timber lands of the Government. Within these forests (including 26,000,000 acres in two forests in Alaska) are 192,000,000 acres, of which 166,000,000 acres are in the United States proper and include within their boundaries something like 22,000,000 acres that belong to the States or to private individuals. We have, then, excluding Alaskan forests, a total of about 144,000,000 acres of forests belonging to the Government, which are being treated in accord with the principles of scientific forestry. The law now prohibits the reservation of any more forest lands in Oregon, Washington, Idaho, Montana, Colorado and Wyoming, except by act of Congress. I am informed by the Department of Agriculture that the Government owns other tracts of timber lands in these States which should be included in the forest reserves. I expect to recommend to Congress that the limitation herein imposed shall be repealed (applause). In the present forest reserves there are lands which are not properly forest land, and which ought to be subject to homestead entry. This has caused some local irritation. We are carefully eliminating such lands from forest reserves or, where their elimination is not practicable, listing them for entry under the forest homestead act.

Congress ought to trust the Executive to use the power of reservation only with respect to land covered by timber or which will be useful in the plan of reforestation (applause). I am in favor of each branch of the Government trusting the good faith of the other (applause). During the present Administration, 6,250,000 acres of land, largely non-timbered, have been excluded from forest reserves, and 3,500,000 acres of land, principally valuable for forest purposes, have been included in forest reserves, making a reduction in forest reserves of non-timbered land amounting to 2,750,000 acres. But had we had the opportunity to include reserves in the forbidden States, the balance would have been otherwise. The Bureau of Forestry since its creation has initiated reforestation on 5,600 acres. A great deal of the forest land is available for grazing. During the past year the grazing lessees numbered 25,400, and they pastured upon the forest reserves 1,400,000 cattle, 84,540 horses, and 7,580,400 sheep, for which the Government received $986,715--a decrease from the preceding year of $45,000, due to the fact that no money was collected or received for grazing on the non-timbered land eliminated from the forest reserve. Another source of profit in the forestry is the receipts for timber sold. This year they amounted to $1,043,000, an increase of $307,000 over the receipts of last year. This increase is due to improvement in transportation to market, and to the greater facility with which the timber can be reached.

The Government timber in this country amounts to only one-fourth of all the timber, the rest being in private ownership. Only three percent of that which is in private ownership is looked after properly and treated according to modern rules of forestry (applause). The usual destructive waste and neglect continue in the remainder of the forests owned by private persons and corporations. It is estimated that fire alone destroys $50,000,000 worth of timber a year. The management of forests not on public land is beyond the jurisdiction of the Federal Government. If anything can be done by law it must be done by the State legislatures. I believe that it is within their constitutional power to require the enforcement of regulations, in the general public interest, as to fire and other causes of waste in the management of forests owned by private individuals and corporations. (Applause)

Exactly how far these regulations can go and remain consistent with the rights of private ownership, it is not necessary to discuss; but I call attention to the fact that a very important part of Conservation must always fall upon the State legislatures, and that they would better be up and doing if they would save the waste and denudation and destruction through private greed or accidental fires that have made barren many square miles of the older States. (Great applause)

I have shown sufficiently the conditions as to Federal forestry to indicate that no further legislation is needed at the moment except an increase in the fire protection to National forests and an act vesting the Executive with full power to make forest reservations in every State where Government land is timber-covered, or where the land is needed for forestry purposes.

OTHER LAND WITHDRAWALS

When President Roosevelt became fully advised of the necessity for the change in our disposition of public lands, especially those containing coal, oil, gas, phosphates, or water-power sites, he began the exercise of the power of withdrawal by Executive order of lands subject by law to homestead and the other methods of entering for agricultural lands. The precedent he set in this matter was followed by the present Administration. Doubt had been expressed in some quarters as to the power in the Executive to make such withdrawals. The confusion and injustice likely to arise if the courts were to deny the power led me to appeal to Congress to give the President the express power (applause). Congress has complied. The law, as passed, does not expressly validate or confirm previous withdrawals, and therefore, as soon as the new law was passed, I, myself, confirmed all the withdrawals which had theretofore been made by both Administrations by making them over again (great applause). The power of withdrawal is a most useful one, and I do not think it is likely to be abused.

COAL LANDS

The next subject, and one of the most important for our consideration, is the disposition of the coal lands in the United States and in Alaska. First, as to those in the United States.

At the beginning of this Administration there were classified coal lands amounting to 5,476,000 acres, and there were withdrawn from entry for purposes of classification 17,867,000 acres. Since that time there has been withdrawn by my order from entry for classification 77,648,000 acres, making a total withdrawal of 95,515,000 acres (applause). Meantime, of the acres thus withdrawn, 11,371,000 have been classified and found not to contain coal, and have been restored to agricultural entry, and 4,356,000 acres have been classified as coal lands; while 79,788,000 acres remain withdrawn from entry and await classification. In addition, 336,000 acres have been classified as coal lands without prior withdrawal, thus increasing the classified coal lands to 10,168,000 acres.

Under the laws providing for the disposition of coal lands in the United States, the minimum price at which lands are permitted to be sold is $10 an acre; but the Secretary of the Interior has the power to fix a maximum price and to sell at that price. By the first regulations governing appraisal, approved April 8, 1907, the minimum was $10, as provided by law, and the maximum was $100, and the highest price actually placed upon any land sold was $75. Under the new regulations, adopted April 10, 1909, the maximum price was increased to $300 except in regions where there are large mines, where no maximum limit is fixed and the price is determined by the estimated tons of coal to the acre. The highest price fixed for any land under this regulation has been $608 per acre. The appraised value of the lands classified as coal lands and valued under the new and old regulations is shown to be as follows: 4,303,000 acres valued under the old regulation at $77,000,000--an average of $18 an acre--and 5,864,000 acres classified and valued under the new regulation at $394,000,000, or a total of 10,168,000 acres valued at $471,000,000. For the year ending March 31, 1909, 227 coal entries were made, embracing an area of 35,000 acres, which sold for $663,000; for the year ending March 31, 1910, there were 176 entries, embracing an area of 23,000 acres, which sold for $608,000, and down to August, 1910, there were but 17 entries, with an area of 1,720 acres which sold for $33,900; making a disposition of coal lands in the last two years of about 60,000 acres for $1,305,000.

The present Congress, as already said, has separated the surface of coal lands either classified or withdrawn to be classified from the coal beneath, so as to permit at all times homestead entries upon the surface of lands useful for agriculture, and to reserve the ownership in the coal to the Government.

The question which remains to be considered is whether the existing law for the sale of the coal in the ground should continue in force or be repealed and a new method of disposition adopted. Under the present law the absolute title in the coal beneath the surface passes to the grantee of the Government. The price fixed is upon an estimated amount of the tons of coal per acre beneath the surface, and the prices are fixed so that the earnings will only be a reasonable profit upon the amount paid and the investment necessary. But, of course, this is more or less guesswork, and the Government parts with the ownership of the coal in the ground absolutely. Authorities in the Geological Survey estimate that in the United States today there is a supply of about three thousand billion tons of coal, and that of this one-third, or about one thousand billion, are in the public domain. Of course, the other two thousand billion are within private ownership and under no more control as to the use or the prices at which the coal may be sold than any other private property.

If the Government leases the coal lands and acts as any landlord would, and imposes conditions in its leases like those which are now imposed by the owners in fee of coal mines in the various coal regions of the East, then it would retain over the disposition of the coal deposits a choice as to the assignee of the lease, a power of resuming possession at the end of the term of the lease, or of readjusting terms at fixed periods of the lease, which might easily be framed to enable it to exercise a limited but effective control in the disposition and sale of the coal to the public (applause). It has been urged that the leasing system has never been adopted in this country, and that its adoption would largely interfere with the investment of capital and the proper development and opening up of coal resources. I venture to differ entirely from this view (applause). My investigations show that many owners of mining property of this country do not mine it themselves, and do not invest their money in the plants necessary for the mining, but they lease their properties for a term of years varying from twenty to thirty and forty years, under conditions requiring the erection of a proper plant and the investment of a certain amount of money in the development of the mines, and fixing a rental and a royalty, sometimes an absolute figure and sometimes one proportioned to the market value of the coal. Under this latter method the owner of a mine shares in the prosperity of his lessees when coal is high and the profits good, and also shares to the same extent in their disappointment when the price of coal falls.

I have looked with some care into a report made at the instance of President Roosevelt upon the disposition of coal lands in Australia, Tasmania, and New Zealand. These are peculiarly mining countries, and their experience ought to be most valuable. In all these countries the method for the disposition and opening of coal mines originally owned by the Government is by granting a leasehold, and not by granting an absolute title. The terms of the leases run all the way from twenty to fifty years while the amount of land which may be leased to any individual there is from 320 acres to 2,000 acres. It appears that a full examination was made and the opinions of all the leading experts on the subject were solicited and given, and that with one accord they approved in all respects the leasing system (applause). Its success is abundantly shown.

It is possible that at first considerable latitude will have to be given to the Executive in drafting these forms of lease, but as soon as experiment shall show which is the most workable and practicable, its use should be provided for specifically by statute. The question as to how great an area ought to be included in a lease to one individual or corporation is not free from difficulty; but in view of the fact that the Government retains control as owner, I think there might be some liberality in the amount leased, and that 2,500 acres would not be too great a maximum.

By the opportunity to register the terms upon which the coal shall be held by the tenant, either at the end of each lease or at periods during the term, the Government may secure the benefit of sharing in the increased price of coal and the additional profit made by the tenant. By imposing conditions in respect to the character of work to be done in the mine, the Government may control the character of the development of the mine and the treatment of employees with reference to safety (applause). By denying the right to transfer the lease except by written permission of Government authorities, it may withhold the needed consent when it is proposed to transfer the leasehold to persons interested in establishing a monopoly of coal production in any State or neighborhood (applause).

As one-third of all the coal supply is held by the Government, it seems wise that it should retain such control over the mining and the sale as the relation of lessor to lessee furnishes. The change from the absolute grant to the leasing system will involve a good deal of trouble in the outset, and the training of experts in the matter of making proper leases; but the change will be a good one and can be made. The change is in the interest of Conservation, and I am glad to approve it. (Great applause)

ALASKA COAL LANDS

The investigations of the Geological Survey show that the coal properties in Alaska cover about 1,200 square miles, and that there are known to be available about fifteen billion tons. This is, however, an underestimate of the coal in Alaska, because further developments will probably increase this amount many times; but we can say with considerable certainty that there are two fields on the Pacific slope which can be reached by railways at a reasonable cost from deep water--in one case of about 50 miles and in the other case of about 150--which will afford certainly six billion tons of coal, more than half of which is of a very high grade of bituminous and of anthracite. It is estimated to be worth, in the ground, one-half cent a ton, which makes its value per acre from $50 to $500. The coking-coal lands of Pennsylvania are worth from $800 to $2,000 an acre, while other Appalachian fields are worth from $10 to $386 an acre, and the fields in the central States from $10 to $2,000 an acre, and in the Rocky mountains from $10 to $500 an acre.

The demand for coal on the Pacific Coast is for about 4,500,000 tons a year. It would encounter the competition of cheap fuel oil, of which the equivalent of 12,000,000 tons of coal a year is used there. It is estimated that the coal could be laid down at Seattle or San Francisco, a high-grade bituminous at $4 a ton, and anthracite at $5 or $6 a ton. The price of coal on the Pacific slope varies greatly from time to time in the year and from year to year--from $4 to $12 a ton. With a regular coal supply established, the expert of the Geological Survey, Mr Brooks, who has made a report on the subject, does not think there would be an excessive profit in the Alaska coal mining because the price at which the coal could be sold would be considerably lowered by competition from these fields and by the presence of crude fuel oil. The history of the laws affecting the disposition of Alaska coal lands shows them to need amendment badly. Speaking of them, Mr Brooks says:

The first act, passed June 6, 1900, simply extended to Alaska
the provisions of the coal lands in the United States. The law
was ineffective, for it provided that only subdivided lands
could be taken up and there were no land surveys in Alaska.

I do not like to criticise a coordinate branch of the
Government. The Executive makes mistakes, and so does Congress,
but I do not think it reflects greatly on the intense interest
that Congress had in Alaska and her development that they
should go to work and pass a law affecting the coal lands in
Alaska that didn't operate there at all [applause]. The matter
was rectified by the act of April 28, 1904, which permitted
unsurveyed lands to be entered and the surveys to be made at
the expense of the entrymen. Unfortunately the law provided
that only tracts of 160 acres could be taken up, and no
recognition was given to the fact that it was impracticable to
develop an isolated coal field requiring the expenditure of a
large amount of money by such small communities. Many claims
were staked, however, and surveys were made for patents. It was
recognized by everyone familiar with the conditions that after
patent was obtained these claims would be combined in tracts
large enough to assure successful mining operation. No one
experienced in mining would, of course, consider it feasible to
open a coal field on a basis of a single 160-acre tract. The
claims for the most part were handled in groups, for which one
agent represented the several different owners. Unfortunately a
strict interpretation of the statute raised the question
whether even a tacit understanding between claim-owners to
combine after patents had been obtained was not illegal.
Remedial legislation was sought and enacted in the statute of
May 28, 1908. This law permitted the consolidation of claims
staked previous to November 12, 1906, in tracts of 2,560 acres.
One clause of this law invalidated the title if any individual
or corporation at any time in the future owned any interest
whatsoever, directly or indirectly, in more than one tract. The
purpose of this clause was to prevent the monopolization of
coal fields. Its immediate effect was to discourage capital. It
was felt by many that this clause might lead to forfeiture of
title through the accidents of inheritance, or might even be
used by the unscrupulous in blackmail. It would appear that
land taken up under this law might at any time be forfeited to
the Government through the action of any individual, who,
innocently or otherwise, obtained interest in more than one
coal company. Such a title was felt to be too insecure to
warrant the large investments needed for mining development.
The net result of all this is that no titles to coal lands have
been passed.

On November 12, 1906, President Roosevelt issued an Executive order withdrawing all coal lands from location and entry in Alaska. On May 16, 1907, he modified the order so as to permit valid locations made prior to the withdrawal on November 12, 1906, to proceed to entry and patent. Prior to that date some 900 claims had been filed, most of them said to be illegal because either made fraudulently by dummy entrymen in the interest of one individual or corporation, or because of agreements made prior to location between the applicants to cooperate in developing the lands. There are thirty-three claims for 160 acres each, known as the "Cunningham claims," which are said to be valid on the ground that they were made by an attorney for thirty-three different and bona fide claimants who, as alleged, paid their money and took proper steps to locate their entries and protect them. The representatives of the Government, on the other hand, in the hearings before the Land Office have attacked the validity of these Cunningham claims on the ground that prior to their location there was an understanding between the claimants to pool their claims after they had been perfected and unite them in one company.

The trend of decision seems to show that such an agreement would invalidate the claims, although under the subsequent law of May 28, 1908, the consolidation of such claims was permitted, _after_ location and entry, in tracts of 2,560 acres. It would be, of course, improper for me to intimate what the result of the issue as to the Cunningham and other Alaska claims is likely to be, but it ought to be distinctly understood that no private claims for Alaska coal lands have as yet been allowed or perfected, and also that whatever the result as to pending claims, the existing coal-land laws of Alaska are most unsatisfactory and should be radically amended (applause). To begin with, the purchase price of the land is a flat rate of $10 per acre, with no power to increase it beyond that, although, as we have seen, the estimate of the agent of the Geological Survey would carry up the maximum of value to $500 an acre.

In my judgment it is essential to the proper development of Alaska that these coal lands should be opened, and that the Pacific slope should be given the benefit of the comparatively cheap coal of fine quality which can be furnished at a reasonable price from these fields (great applause); but the public, through the Government, ought certainly to retain a wise control and interest in these coal deposits (applause), and I think it may do so safely if Congress will authorize the granting of leases, as already suggested for Government coal lands in the United States, with provisions forbidding the transfer of the leases except with the consent of the Government, thus preventing their acquisition by a combination or monopoly, and upon limitations as to the area to be included in any one lease to one individual, and at a certain moderate rental, with royalties upon the coal mined proportioned to the market value of the coal laid down either at Seattle or at San Francisco (applause). Of course such leases should contain conditions requiring the erection of proper plants, the proper development by modern mining methods of the properties leased, and the use of every known and practical means and device for saving the life of the miners.

The Government of the United States has much to answer for in not having given proper attention to the Government of Alaska and the development of her resources for the benefit of all the people of the country. I would not force development at the expense of a present or future waste of resources; but the problem as to the disposition of the coal lands for present and future use can be wisely and safely settled in one session if Congress gives it careful attention. (Great applause)

OIL AND GAS LANDS

In the last Administration there were withdrawn from agricultural entry 2,820,000 acres of supposed oil land in California, about 1,500,000 acres in Louisiana (of which only 6,500 acres were known to be vacant, unappropriated land), 75,000 acres in Oregon, and 174,000 acres in Wyoming, making a total of nearly 4,000,000 acres.

In September, 1909, I directed that all public oil lands, whether then withdrawn or not, should be withheld from disposition pending congressional action, for the reason that the existing placer mining law, although made applicable to deposits of this character, is not suitable to such lands, and for the further reason that it seemed desirable to reserve certain fuel-oil deposits for the use of the American Navy. Accordingly the form of all existing withdrawals was changed, and new withdrawals, aggregating 2,750,000 acres, were made, in Arizona, California, Colorado, New Mexico, Utah and Wyoming. Field examinations during the year showed that of the original withdrawals, 2,170,000 acres were not valuable for oil, and they were restored for agricultural entry. Meantime other withdrawals of public oil lands in these States were made, so that on July 1, 1910, the outstanding withdrawals then amounted to 4,550,000 acres.

The needed oil and gas law is essentially a leasing law. In their natural occurrence oil and gas cannot be measured in terms of acres, like coal, and it follows that exclusive title to these products can normally be secured only after they reach the surface. Oil should be disposed of as a commodity in terms of barrels of transportable product rather than in acres of real estate (applause). This is, of course, the reason for the practically universal adoption of the leasing system wherever oil land is in private ownership. The Government thus would not be entering on an experiment, but simply putting into effect a plan successfully operated in private contracts. Why should not the Government as a land-owner deal directly with the oil producer rather than through the intervention of a middleman to whom the Government gives title to the land? (Applause) The principal underlying feature of such legislation should be the exercise of beneficial control rather than the collection of revenue.

As not only the largest owner of oil lands, but as a prospective large consumer of oil by reason of the increasing use of fuel-oil by the navy, the Federal Government is directly concerned both in encouraging rational development and at the same time insuring the longest possible life to the oil supply. The royalty rates fixed by the Government should neither exceed nor fall below the current rates. But much more important than revenue is the enforcement of regulations to conserve the public interest so that the inconvenience of the lessee shall specifically safeguard oil fields against the penalties from careless drilling and of production in excess of transportation facilities or of market requirement.

One of the difficulties presented, especially in the California fields, is that the Southern Pacific Railroad owns every other section of land in the oil fields, and in those fields the oil seems to be in a common reservoir, or series of reservoirs, communicating through the oil sands, so that the excessive draining of oil at one well, or on the railroad territory generally, would exhaust the oil in the Government land. Hence it is important that if the Government is to have its share of the oil, it should begin the opening and development of wells on its own property. (Laughter and applause)

In view of the joint ownership which the Government and the adjoining land-owners, like the Southern Pacific Railroad, have in the oil reservoirs below the surface, it is a most interesting and intricate question, difficult of solution, but one which ought to address itself at once to the State law-makers, how far the State legislature might impose appropriate restrictions to secure an equitable enjoyment of the common reservoir, and to prevent waste and excessive drainage by the various owners having access to this reservoir (applause). It has been suggested, and I believe the suggestion to be a sound one, that permits be issued to a prospector for oil, giving him the right to prospect for two years over a certain tract of Government land for the discovery of oil, the right to be evidenced by a license for which he pays a small sum. When the oil is discovered, then he acquires title to a certain tract, much in the same way as he would acquire title under a mining law. Of course, if the system of leasing is adopted, then he would be given the benefit of a lease upon terms like that above suggested. What has been said in respect to oil applies also to Government gas lands.

Under the proposed oil legislation, especially where the Government oil lands embrace an entire oil field, as in many cases, prospectors, operators, consumers, and the public can be benefitted by the adoption of the leasing system. The prospector can be protected in the very expensive work that necessarily antedates discovery. The operator can be protected against impairment of productiveness of the wells which he has leased by reason of the control of drilling and pumping of other wells too closely adjacent or by the prevention of imperfect methods as employed by careless, ignorant or irresponsible operators in the same field, which result in the admission of water to the oil sand; while, of course, the consumer will profit by whatever benefits the prospector or operator receives in reducing the first cost of the oil.

PHOSPHATE LAND

Phosphorus is one of the three essentials to plant growth, the other elements being nitrogen and potash. Of these three, phosphorus is by all odds the greatest element in nature. It is easily extracted in useful form from the phosphate rock, and the United States contains the greatest known deposits of this rock in the world. They are found in Wyoming, Utah and Florida, as well as in South Carolina, Georgia and Tennessee. The Government phosphate lands are confined to Wyoming, Utah and Florida. Prior to March 4, 1909, there were four million acres withdrawn from agricultural entry on the ground that the land covered phosphate rock. Since that time 2,322,000 acres of the land thus withdrawn was found not to contain phosphate in profitable quantities, while 1,678,000 acres was classified properly as phosphate land. During this Administration there has been withdrawn and classified 437,000 acres, so that today there is classified as phosphate rock land 2,115,000 acres.

The rock is most important in the composition of fertilizers to improve the soil, and as the future is certain to create an enormous demand throughout this country for fertilization, the value to the public of such deposits as these can hardly be exaggerated. Certainly with respect to these deposits a careful policy of Conservation should be followed. Half of the phosphate of the rock that is mined in private fields in the United States is now exported. As our farming methods grow better the demand for the phosphate will become greater, and it must be arranged so that the supply shall equal the needs of the country. It is uncertain whether the placer or lode law applies to the Government phosphate rock. There is, therefore, a necessity for some definite and well-considered legislation on this subject, and in aid of such legislation all of the Government lands known to contain valuable phosphate rock are now withdrawn from entry.

A law that would provide a leasing system for the phosphate deposits, together with a provision for the separation of the surface and mineral rights as is already provided for in the case of coal, would seem to meet the need of promoting the development of these deposits and their utilization in the agricultural lands of the West. If it is thought desirable to discourage the exportation of phosphate rock and the saving of it for our own lands, this purpose could be accomplished by conditions in the lease granted by the Government to its lessee. Of course, under the Constitution the Government could not tax and could not prohibit the exportation of phosphate, but as proprietor and owner of the lands in which the phosphate is deposited it could impose conditions upon the kind of sales, whether foreign or domestic, which the lessee might make of the phosphate mined. (Applause)

The tonnage represented by the phosphate lands in Government ownership is very great. But the lesson has been learned in the case of such lands as have passed into private ownership in South Carolina, Florida and Tennessee, that the phosphate deposits there are in no sense inexhaustible. Moreover, it is also well understood that in the process of mining phosphate, as it has been pursued, much of the lower grade of phosphate rock which will eventually all be needed has been wasted beyond recovery. Such wasteful methods can easily be prevented, so far as the Government land is concerned, by conditions inserted in the leases.

WATER-POWER SITES