SUPPLEMENT.
BIENNIAL MESSAGE
OF
GOT. L. F. GKOVEK.
Tu the Senate and louse of Rejne-
zerdallcez of the Stale of (he(jon :
( Jkxtlemex
On the recurrence of each succeed
ing biennial session mi' your honora
ble body, it is interesting to note the
evidences of our development as a
State, and of our progress as a com
munity. Never have the assurances of our
coming strength and stability been
more marked than at the present
time. Acknowledging the leading
hand of Providence in all our ab
vancemenl, let us endeavor to sub
ordinate the struggles of political
parties and of persons to the ever
commanding interests of the peo
ple, and so to conduct our public ac
tion as always to keep in view the
chief public good, fathered here
from widely-separated fields of ac
tion, and from diversified pursuits
of life, and representing the vari
ous interests of the State, it is your
high privilege to deepen "and
strengthen the foundations of our
institutions, and to give new im
pulse to the current of our prosper
ity. Since your last meeting our peo
ple have been blessed with general
health; abundance has crowned our
harvests, and success has followed
most of our enterprises. Alive to
the importance of our present posi
tion, and realizing the advantages
with which nature lias endowed us
as a State, let us emulate each other
in the high endeavor to place our
youthful commonwealth on the solid
pathway to future eminence among
her sisters of the 'Union.
In exercising my constitutional
duty to give to the Legislature in
formation touching the condition of
the Srate, 1 lay before you the follow
ing accounts and suggestions con
cerning the various important mat
ters affecting the administration of
public affairs during the past two
years :
FINANCES.
On examination of the reports
from the accounting Departments of
the State for the biennial period be
ginning September 170, and end
ing September ;, 1872, the following
statement is submitted :
RECE1 "PTS.
P.alaiH'e in Twa.-ury 8"jt. fi. 17, f2;7.J:ii 4S
I.VoYi Hnv-- ;m. f'uinl, coin -lO.'t.s."; 7;
icn. Fund, currency ;7o oo
" 'oiniiionSilioolFuitil
oin S2.170 .s
oiaiiion Schoo En in I
currency .'52,'2-X 0:t
University Fund coin .11. 17.! '.
I 'ni crsit y Fund fur-
I'onoy . . . :.710 0:'.
state Land FuntI coin (17,. ':'.." 21
" Slate L-.uiM Fumt cur
rency :V,,tM'. .V2
" INdicat Fund com... tt; 't
Km'Ik-mI Fund cur
rency :,'V2 Ft
" Five (-v cut F. S'
l.aiids.i',,' Fund, eunvnev i::,;iot; us
Tut u I '
- '(-(2.:,7u r.i
niMii i:-;k:Mi "fs.
f';tid on current lia-
t.ilLi ifii f-xi-tins le-
tl.reS. pt. u. 170. .2si.77:i I t
Paid Soldier's Huuu-
iy andllt'liel' P.ond :l2,!i.".u 2';
Paid tug boat -ul.-i-
dv 12.S11 ."
Paid ommoo Si1i.miI
and Fnivia-ity
l:iii-.di-i l iltiit ion-.
ti'..' l i !.:t;7 t;7
Paid U.)ni l of Pt ii-
iiontiaiy F. 17"
PaidPcniii iil iaiy Imil
iv'S . tt.:i::7 .:
Paid I naiif and Idi
ot ie I .". 7 t !.'
Paid Lci-huhe,
i'iiiii'. Judicial.
1 1 1 F J t Print in? .
( 'ii i yaiii f ol'i-oii-
ii i -. and in-aiir
: : . ::7. !"..' 2 .
l..ial - :'.:i.''.''. lo
H'.xih i Tl:i' si i:v - tl-i KMl'.Vt'. i:. 17'..'.
; neiul Fund, coin, .s ,"..V1.! 01
' " cur
mii'.v :"7: ti
'omnioiiSclnMil Fund
...in 2.1t; (.:
oinuionSchool I'und
currency 1.7.70 00
t. iii v rii v Fund
coin cs .i i
Fiiiver-ity Fund
currency 2d ll
State band Fund,
coin 2 "..".., 7 It;
Slate band Fund,
Ourcney .;". fcl.'l (io
-r.lilir r.' P.i.uut v and
ijilief I'und.". ... . s:;.-ii;: -ti
I'xlieat Fund.Jeoin. .(;I2 !2
' curren
cy i,7.-, rr.
Fi vi' pi r t iif . I'und.
tn n iu v i,1.:u; (' 172..i!7 41
Total.
s'!P2,."7o .".1
I . I A It I TIT r KS O F THE STATF..
This Stat1 has no funded debt.
Bonds issued for construction of
Canal and Locks at the tails of
Willamette river, S2o0,0oo 00.
The sum is to be paid out of funds
arising on sale of State lands held
under internal improvement grant of
1811, and the live per cent, of net
proceeds of sales of public lands in
Oregon.
SOLDIERS HOUXTV AND RELIEF
BONDS.
1 Ion lit y bond-; :?14,-FV OO
Reliel bonds 4n,027 00
Total...
tM.177 (Mi
Outstanding Treasurv warrants
$7;,s;i ;;.
To these must be added the de
ficiencies not audited, chiefly arising
from accounts for conveying and
keeping the inline, and for the con
struction of the new Penitentiary
It will be observed that the Mili
tary Fund in the Treasury is nearly
sufficient to pay oft' the Soldiers'
Lou nty and Itel ie f Bonds. A major
ity ot these bonds have been adver
tised for redemption, and might be
liquidated in full within the next
two years.
Thereare funds,also,in theTreasurv
sufficient to pav one-quarter of the
eanal and lock bonds. But a consid
erable portion of these funds are in
currency, while the bonds are paya
ble in gold. The Authority to eon
vert the currency into gold will be
requisite before the currency funds
can be applied to the liquidation of
the bonds. It is probable that one
half of the canal and lok bonds, or
the amount of one hundred thousand
dollars thereof, could be canceled
by payment within the next two
years if the Legislature should so
direct by appropriation, and the hol
ders of the bonds should present
them for payment.
These bonds run ten years from
the date of their issue, unless a vol
untary redemption of them occurs
before their maturity. In case pro
vision be not made for earlv redemp
tion, mi act should he passed giving
the Treasurer authority to loan the
moneys accumulating in the Inter
nal Improvement Fund. The bonds
bear interest at seven per cent, and
the moneys can be loaned at ten per
cent, per annum. A revenue of
three per cent., per annum, can be
made on all moneys of this fund, be
holding and loaning .thorn until the
bonds are tine. But, 1 think it the
best policy to liquidate all these lia
bilities at the earliest practible day,
and to exhibit a State free from obli
gations of any kind.
THE FIVE PER ( 'EXT. Fl'XI)
It will be observed that, in the
statement of balances in the Treas
ury, the amount derived from the
five per cent, of the net proceeds of
sales of the public lands within the
State is given at $13,3(Mi 00. Of this
sum si, fj-M 92 was received during
the administration of Governor
Gibbs, and 811,700 lrt during the
present administration, making the
full amount in the Treasury. But
during the term of office of my im
mediate predecessor, there was re
ceived from the United States
Treasury, on account of this fund,
the sum of $"),I2i LV, which was em
bezzled by the officer receiving the
same. The whole amount paid to
this State on aeeonnt of the Five
PerGent. Fund has been S18,7..0
The correspondence with the
Treasury Department and the Gen
eral Land Office concerning this
fund, is herewith communicated.
It will be observed that the sum re
ceived by Governor Gibbs, having
been paid into the School Fund
without e pa rate report of the same
to the Legislature, it did not at first
appear that any of this fund had
been paid to the State at the time
this correspondence was undertaken.
STATE TAXATION'.
There is now a manifest inequality
in the several counties in this State,
returned upon the same classes of
property of equal value. There also
exists in several counties a gross un
dervaluation of all classes of property.
While this condition of things would
make but little difference with the
county finances, it greatly diminishes
the funds which should come into
the State treasury; being based
upon a percentageof the assessment s,
and not upon a fixed proportion to be
raised by each county.
There is another defect in our tax
ing system, which works, perhaps,
a greater inequality and injustice
than those named. In assessing
property, under the present law, the
party assessed is permitted to deduct
his indebtedness from the valuation
of his property. In counties where
property is assessed at one-third its
real value, as in the case in most
counties, a person owning prop
erty to the amount of three thou
sand dollars, and being in debt one
thousand dollars would pay no tax ;
for his property worth three thou
sand dollars, would be valued at one
thousand by the assessor, which
would be balanced by his indebted
ness of one thousand dollars. But
a prudent neighbor, worth the two
thousand dollars or any other sum,
and not in debt, would be required
to pay taxes on the full amount of
his assessment. It will thus be seen,
that every dollar of indebtedness,
under our present mode of assess
ment, may balance real value of
properly to the amount of three dol
lars. And if the indebtedness of our
citizens, taken collectively, amounts
to ten millions dollars, the amount of
property, untaxed, on this account,
is thirty millions. Again there is a
gross undervaluation of the property
of the whole State, produced by our
present vicious mode of assessment.
This State has property, at its cash
value, over and above liabilities, to
the amount of one hundred and
twenty millions. Our last State
assessment was thirty-four millions.
During the last ten years we have
doubled our population and inscreas
ed the value of our property four
told, but our assessment rolls show
an increase of property valuation of
less than thirty-five per cent.
With five times as many insane to
support, and four times as many
State prisoners to keep as we had
ten years ago, with other expenses
incidentally greater, as we increase
our population, how can the State be
kept out of debt, even on account of
current expenditures, without sound
assessments according to the increase
of property ?
Our State is organized upon the
most economical basis ; and if there
is one sentiment in our Constitution
more prominent than another, it is
the mandate to keep free from debt.
It will be proper in this connection to
call your special attention to u clause
of that instrument which has hereto
fore been passed with little heed, but
which, if observed, will be a most
salutary effect upon our public finan
ces. I refer to Article IX., Sec. 0,
which reads as follows : " Whenever
the expenses of any fiscal year shall
exceed the income, the Legislative
Assembly shall provide for levying a
tax for the ensuing fiscal year,' suffi
cient, with other sources of income,
to pay the defiency, as well as the
estimated expense of the ensuing
fiscal year."
Xo legislation under this require
ment will be necessary, nor need
there be any increase of the rates of
taxation if our assessment law be
modified in the proper manner, and
a State Board of Fqualizatiou be
created, which I recommend.
Upon .the question of deductions
on account of liabilities, it may be
remarked that it has become the set
tled policy in States having the
soundest financial systems, to make
no deductions from their valuations
of real estate on account of personal
liabilities ; and as real estate is the
basis of all property, it is a question
among writers on political economy
whether real estate alone should not
constitute the basis of taxation.
PFliLlC LANDS OF THE STATE.
On the accession to office of the pres
ent State Administration, none of
the public lands to which the State
was entitled under the variousactsof
Congress, requiring selection by the
State authorities, and approval by
the Land Department of the United
States had been secured to the State,
except a part of the Internal Im
provement grant of ."o0,000 acres.
Selections, indeed, from time to
time, had been made of the Univer
sity lands and the indemnity .school
lands, by different officers, under
different acts of the Legislature ; but
no work in this respect had received
approval at the local land offices in
Oregon, and no proper presentation
of them had been made to the t Jener
al La nl Office of the United States;
so that no lands of these classes had
become vested in the State. To se
cure a title to all the public lands
belonging to the State, has been a
leading object of the present Execu
tive. The efforts made in this behalf
have been attended with a good de
gree of success.
the rxiVERsrrv lands.
The grant of Congress for the sup
port of a State University, consists of
forty-six thousand and eighty acres
of land. Efforts at locating these
lands began as early as 1S";?, but
owing to irregularities of the work,
and misapprehension of its condition
the localities remained totally unrec
ognized by the United States, and
consequently open for pre-emption or
homestead settlement. From these
facts, many of the lands first selected
under this grant have been lost to
the State, and other of necessarily a
poorer quality, had to be located" to
fill the grant. In listing the Univer
sity lands for final approval, great
care was taken to cover all the for
mer listings of lands which wen1 oc
cupied by settlers under the right of
the State, and especially to secure all
former listings -hich 5 could be held
free from conflict with rights of set
tlers under any other claim of title.
The entire grant, with the excep
tion of a small part held in suspense
by the United States, for adjustment
of abandoned donation rights and
other incidental, apparent, but not
real conflicts, have been fully listed,
approved by the local land offices,
and by the General Land Office, and
the Secretary of the Interior, consti
tuting perfect title in the State.
INDEMNITY St'ITOOL LANDS.
The lands to which the State was
entitled, to be taken in lieu of those
portions of the sixteenth and thirty
sixth sections in each township, for
common school purposes, which
were occupied by settlers in advance
of the surveys, "were found in the
same condition as the University
lands. None of them had become
vested in the State, and nothing had
been done in relation thereto which
had been recognized bv the General
Land Office of the United States.
The work of listingand securing the
full approval of the indemnity school
lands, as far as the public surveys
had extended lat year, has been ac
complished, with the exception of a
portion of those lying east of the
Cascade Mountains"; and in relation
to these latter, they have been prop
erly listed by the State and approved
by the La Grande Land Office, but
yet await final action at Washington.
The amount of indemnity school
lands which have been selected and
vested in the State within the past
two years, is one hundred and seven
thousand eight hundred and thirty
seven acres. This work will be re
quired to be constantly followed up
as the public surveys progress, from
year to year, until the public surveys
shall embrace the whole State.
agricultural college lands.
The act of Congress of July I'd,
1S02, donating public lands to the
several States which may provide
colleges for the benefit of "agricultu
ral and mechanic arts, provided that
the lands selected by any State
within its torder.s under said act
should be taken from such as M ere
subject to private entry. But the
commission appointed by the Legis
lature four years ago to select the
ninety thousand acres to which this
State is entitled under this grant,
not being able to find any considera
ble body of public lands within the
State .subject to private entry, located
the entire quantity of these agricul
tural selections in the Klamath Lake
basin, in Southern Oregon, on sur
veyed public lands of the United
States of good quality, but not techni
cally subject to private entry. Bas
ing objection on the ground that
these selections were not iandi sub
ject to private entry, the Land Office
at Pvoseburg, within which district
the lands lay, refused to approve the
selections.
This was the condition of this class
ot lands t wo years ago. 1 1 was found
necessary that an act of Congress
should be passed to enable the State
either to hold these selections or to
make new ones in accordance with
the act of 1S2. ( n the presentation
of the matter to our delegatio'n in
Congress, they procured, at the last
session, the passage of an act which
provides " that the lands granted to
the State of Oregon for the establish
ment of an agricultural college bv
act of Congress of July L', 1s;l, nnil
acts amendatory thereto, may be
selected by said State from any lands
within said State subject to "home
stead or pre-emption entry under the
laws of the Cnited States ; and in
any case where land is selected in
the State, the price of w hich, if fixed
by law at the double manimum of
two dollars and fifty cents per acre,
such land shall be counted as double
the quantity toward satisfying the
grant ; that any such selections al
ready made by said State, and the
lists duly tiled in the proper district
land office, be and the same are here
by confirmed, except so far as they
may conflict with any adverse legal
right existing at the "passage of this
act.
The act also provides that "said
lands shall not be sold by the State
for less than two dollars and fifty
cents per acre ; and when settlement
is made' upon the same, preference
in all cases shall be given to actual
settlers, at the price at which said
lands shall be offered."
The lits of the Agricultural Col
lege selections are now awaiting ac
tion of the new land office at Link
Ion, under the foregoing provisions
of the late act of Congress, and will
doubtless bo shortly approved. It is
understood that none of these lands
which have been selected fall within
reach of any railroad grant, so that
the State will probably secure the
full amount of the ninety thousand
acres at first selected. As these lands
will, within a short period, be fully
vested in the State, legislation pro
viding for their sale w i'l be proper.
Indeed, to facilitate "the settlement
of the southern portion of the State,
it is important that this legislation
be had at the present session. In
making provision for the disposal of
these lands, I would suggest that the
general policy of the State, hereto
fore adopted, in disposing of all her
arable lands in limited quantities,
and favoring actual settlers, be still
adhered to.
internal improvement grant.
Of the grant of five thousand acres
to the State for internal improve
ments, by Act of Congress of Sept.
I, 111, four hundred and fifty-six
thousand seven hundred and eighty
nine acres, are now finally approved
and fully vested in the "State, and
the balance being duly listed and ap
proved by the local land offices, will
ne wiimn a snort time cert Hied a
approved by the General Land Office
IS
the principle on which these latter
lists were suspended, having
already settled in favor of tin
-elect ions.
been
State
SWAMP LANDS.
By the Act of Congress approved
September 2sih, ISoO, it was pro
vided "that to enable the State
of Arkansas to construct the nec
essary levees and drains to re
claim the swamp and overflowed
lands therein, the whole of those
swamp ami overflowed lands made
unfit thereby for cultivation, which
shall remain unsold at the passage
of this Act, shall be, and the same
are hereby granted, to said State."
The provisions of this Act were ex
tended to Oregon by act of Congress
approved March 12, 1.S0O.
The policy of the General Govern
ment conveying the swamp lands
lying within the I orders of the sev
eral States to the respective States in
which they are found, is a well set
tled one. To the States interested,
it is important, as it gives them the
control of extensive portions of the
common domain, which, if not so
granted, might lie waste and become
sources of disease, breeding malari
ous distempers. It is also important
to the States interested, that these
lands should be reclaimed so as to
become fit for agricultural occupancy,
and consequently subject to taxation.
But little notice was taken of this
important grant by the public au
thorities of this State until the ses
sion of the last Legislature, at which
an Act was passed bearing date
October20, 1870, entitled "An Act
providing for the selection and sale
of the swamp and overflowed lands
belonging to the State of Oregon."
This Act provided that the Board of
School Land Commissioners should
appoint deputies to proceed as soon
as practicable, to select in the field
all the lands rendered unfit for culti
vation by inundation or overflow
within this State, and to make re
turn of the same to said Commis
sioners. Pursuant to this authority, depu
ties have been appointed who have
proceeded to the field and made se
lections in their several districts of
such land as they deemed to fall
within the description of said Acts
of Congress, omitting under instruc
tions from the Board, all such swamp
lands as are claimed and occupied by
bona fle settlers, under whatever
right they claim. The amount of
swamp and overflowed lands so se
lected, free from conflict, and re
ported to the Board up to the pres
ent time is 17-1,213.97 acres, lists of
which have been duplicated and
duly forwarded for filing in the office
of-the Surveyor General of Oregon.
In examining the title of the State
to these lands, and the condition of
the grant, I found that there had
been a practical omission on the part
of the Department of the Interior to
execute the laws of Congress mak
ing this grant, as far as the same re
lated to Oregon. The usual special
instructions sent to Surveyors Gen
eral of other States, holding under
the same acts of Congress, directing
a segregation of the swamp lands,
had not been transmitted to the
Surveyor General of this State.
Deputy United States Surveyors in
the field had generally made ho note
of the swamplands, but had returned
all this class as lands arable, and the
several local land offices had been ac
customed to dispose of them with
out reference to the title of the
State, as public lands of the United
States, subject to homestead and pre
emption settlement. By this means
considerable portions of the swamp
lands owned by the State, and which
are still vested in the State, had
been disposed of as the lands of the
United State's.
A letter was addressed by me to
the Secretary of the Interior, bear
ing date November Dth, 1S71, calling
his attention to the acts of Congress
under which we hold these lands,
and to the omission of the Land
Department of the United States to
execute these laws. The corres
pondence on this subject is herewith
accompanying. In this correspond
ence I have urged the General Laud
Department to execute the swamp
land laws of Congress in favor of
Oregon, as they have been executed
in favor of other States, under the
same laws, and to suspend all action
of our local land offices involving
adverse possession of these lands,
until the question of title could be
settled between the State and the
United States. On the part of the
Secretary of the Interior and the
Commissioner of the General Land
office, a willingness has been 'indi
cated to enter upon the segregation
of the swamp lands, but no work has
been done in that direction by them,
and no instructions have been issued,
to the knowledge of the Executive,
in answer to the requests contained
in the corresjKindence. lean state,
therefore, as the present condition of
this important interest, that the acts
of Congress making the swam) land
grant to Oregon remain practically
unexecuted by the Land Department
of the United States. In the mean
time, lands unquestionably of a
swampy character are being dispose I
of by the local land offices, thus ab
sorbing the property of the State
and complicating the title to the
swamp and overflowed lands within
her borders.
The leading adverse interest mili
tating against the right of the State
to the swamp lands is the claim of
railroad corporations to hold altern
ate sections of the public lands for a
distance of thirty miles on either side
of lines of their railroads. The swamp
lands, being more valuable than ad
jacent mountain lands which would
have to be selected in lieu of the wet
lands within the railroad belt, are
preferred by the railroad corporation.
In relation to the right of the State
to hold these lands, even without
any action of the United States Land
Department, and without patent, I
have not the slightest doubt. In the
words of the Commissioner of the
General Land Office, in his instruc
tions to the surveyors General of the
several States interested in the
swamp land act of 18."0, " this act
clearly and unequivocally grants to
the several States those lands which,,
from being swampy, or subject to
overflow, are unfit for cultivation."
In the opinion of Attorney-General
Black, to the Secretary of "the Inte
rior, of November 10," 18.",s in rela
tion to the same act of Congress un
der which we hold : "The act of
Congress was itself a present grant,,
wanting nothing but a definition ot"
lioundaries to make it perfect ; and
to attain this object, the Secretary
of the Interior was directed to m.Tke
outan accurate list and plats of the
lands and cause a patent to be issued
therefor. But w hen a party is au
thorized to demand a patent for land,
his title is vested as much as if he
had the patent itself, which is but
evidence, of his title. The authority
given to the Legislature to dispose of
the land upon the patent, does not
make the grantee less the exclusive
owner of them than she would be if
those words were omitted. - "
The subsequent grant by Congress to
the State for the use of" the railroad,
could not have been intended to
take away from the State the rights
previously vested in her for other
purposes. - There are eases
in which grants are made under
descriptions so vague and indefinite,
that neither the grantee noHany
other person can tell their location or
boundaries, until the grantee does
some act w hich locates and defines
them. In such case, if any other
right which is strictly defined, inter
venes, the first grantee ma v loose
what he would have been entitled' to
if his own grant had been descriptive
or definite. But that principle does
not apply here, because the general
description of all swamp and over
flowed lands within -the limits of
Arkansas is definite enough for the
purposes of notice."
In another opinion of the Attorney-General
to the Secretary of the
Interior, dated June 7, lS-TT," in rela
tion to another act of Congress, he
says: " When Congress says that a
certain portion of the public domain
ot the United States 4 is hereby
granted to a State, what need can
there be of any further assurance in
order to give the State a perfect title
in fee. The point is firmly
settled if the highest judicial author
ity can settle anything."
These views o'f the Attornev-f Jen
eral are sustained by" leading" decis
ions of the Courts, both State and
National, and have heretofore con
trolled the action of the General
Government in administering thi
cla-ss of grants.