State land management in Montana
by Henry T Murray
A THESIS Submitted to the Graduate Committee in partial fulfillment of the requirements for the
degree of Master of Science in Agricultural Economics
Montana State University
© Copyright by Henry T Murray (1942)
Abstract:
The State of Montana possesses over 5,000,000 acres of land granted to It by the Federal Government,
The Income from this grant goes, In a large part, to the oosanon schools of the State, yet contributes
only 11.8 per cent of the funds necessary to maintain these schools.
The year 1933 la noteworthy In the history of state lands of Montana. During the Legislative Assembly
of that year, all gracing rentals were reduced at least 50 per cent, the minimum rate removed and a
maximum rate substituted for it. Acreage leased increased from 57 per cent for the previous eight year
average to 71 per cent for the subsequent eight years. The average rate per acre dropped from a 12.4
cent average to a 7.1 cent average, with a consequent average lose in revenue of 23 per cent.
Of the five counties studied, Chouteau, Custer, Fergus, Phillips, Valley, approximately 62 per cent of
the possible revenue from gracing lands were actually collected, 6 1/4 per cent was lost through failure
to collect, while 31 3/4 Per cent was lost through failure to lease. As measured on the basis of what the
lands were actually capable of producing when judged by soil survey productivity, farm management
studies, and historical yields, it is found that present rental rates are below what they should be to be in
keeping with the provisions of the grant. This conclusion is also borne out when rentals are compared
with those obtained by other agencies.
An average of only 83 per cent of the agricultural lands in these counties produced any revenue
whatever during the period, 1931-40 inclusive, while the average return per acre was only 28 cents for
the farm land actually producing rental.
A little more than three per cent of the leases control a little more than 31 per cent of all state lands
under lease. This may be considered an Indlcbesnt of the present competitive system. However, it is
found that competitive bidding plays a very minor part in the distribution of state land leases. Of a total
of more than 10,000 leases examined in the State Lend Office, less than seven per cent had been let
through competition.
Mhile gracing districts have much to offer in the matter of conservation of resources, they have not
only obtained state land leases at rental rates below their value, but at rates so low that the very purpose
of these land grants is apt to be defeated.
This study indicates that a careful Inventory of all lands should be made so as to determine the acreage
of each class of land. Following this a policy making committee, appointed by the governor, could
formulate a sound policy for the future administration of state lands.
STATE LATO MAWAOEMETiT IN MONTANA
by
IiENRY T . MURRAY
A THESIS
Subm itted t o t h e Graduate Committee
in
p a r t ia l f u l f i l l m e n t o f th e req u irem en ts
f o r th e d e g re e o f
Master o f S c ie n c e in A g r ic u ltu r a l Eeoenomios
at
Montana S t a t e C o lle g e
Approved*
I / ,
In C harge o f M
;a fo r Work
________ Graduate Committee
Boss-tain, M ontana
May, 19Ji2
uo\r ^
•2.
TABLE OP COBTfBTS
Page
LIST OF TABLES..........................................................................................................................
5
LIST OF FIGURES...........................................................................................................................
6
ACKNOVTLEDGEMESTS........................................................................................................................
Q
ABSTRACT...........................................................................................................................................
9
PART I .
PROBLEM AHD PURPOSE OF STUDY.......... ............................................................. 10
The P rob lem .......................................... ...............................................................
10
purpose o f Study.............
H
PART I I .
HISTORICAL ASPECTS OF STUDY........................................................................ 12
Land G rants to th e S t a t e .....................................................................................
12
Department o f S t a t e Lands and I n r e a ta e n ta ................................................... 13
PART I I I .
rJ
METHODOLOGY.....................................................
17
L im ita tio n o f Study. .................................................................................... ............. 17
Source o f D ata. ............................ ............................................. ................................... 17
A p p lic a tio n o f D ata................................................................
IQ
Procedure in C l a s s i f i c a t i o n and Grading.........................................
21
C l a s s i f i c a t i o n A ccording t o Use ............................................................................21
Grading Land A ccording to P r o d u o tlv it y . . . . . . . . . . . . . . . . . . . . . . . . . .
22
V alue o f H is t o r ic a l Y ie ld Data. .......................................................................... 22
PART IV.
IMPOETAKCR OF STATE LANDS AS SOURCE OF REVENUE............................ 2h
PART V.
IiANAGERIAL ASPECTS OFAtoIHISTRATION.......................................................... 26
Lack o f P o l ic y . ................................. ............................................................................ 26
A p p ra isa l P r a c t i c e s . . ...........................
28
The L e g is la t u r e Reduces R e n t a ls ............... ...................................................... .. 31
68162
->
U n iform E x p ira tio n Data o f L e a s e s ..................... ............... .............................
J2
P o l i t i c s P la y a P a r t.............................................................................. ..
37
R e c l a s s i f i c a t i o n o f S ta te Lands. ......................................................................
39
PART V I.
FINANCIAL ASPECTS OF Att! ISfl STRATI ON...................................................
I4O
G razing Land L e a s e s ................................................................................. ..................
J^q
The R e s u lts o f th e I 933 R e v is io n o f R e n ta ls .................................
The S ta te . ................................................................... ..................................
F iv e C o u n tie s.................................................................................. ..................
R eason ab len ess o f I n o o m e . . . . . . . . . . . . . . . . . . . . . .............
I4I
I4I
I4I
50
A g r io u ltu r a l L e a s e s ............ ............................
Cash L e a s e s . . . ....................................... ........................................ ...............
C rop-share L e a s e s .. . . . . . . . ..................................................
a e le o f Grant L an d s.. . . . . . . . . . .............
S a le s V alue A ccording to P r o d u c t iv it y ..................................... ..
Future Land S a le .............. ...................... ............................. ............... ..
C ooperation in C o n s e r v a tio n ....................................................................
Mortgage Lands...........................................................................................................
PART V II .
55
56
57
67
7^
TL4
75
76
SPECIAL PROBLEMS OF ADMINISTRATION...................................................
82
Who Loaaea S t a t e Landa? . . . .............................. ............................. ......................
82
C om p etitiv e B id d in g ..........................
83
C om petition fo r Grazing L e a se s...............................................................
C om petition f o r A g r ic u ltu r a l L e a s e s . . . . ................... ....................
G razing D i s t r i c t s . ..................................................
85
87
80
A d v a n t a g e s .....................
D isa d v a n ta g e s..................................
A Two P r ic e S y ste m ........................................... .......................... ..................
90
91
96
A Comparison o f R e n t a ls ........................ .................... ..........................................
98
In d ian Lands..................
County L a n d s................................
98
99
PART V I I I .
PLAN FOR ADfcTISISTEATIOH OF STATE LANDS........................................101
Heed fo r P o l i o y . .......................... ...........................................................
101
An In v en to ry S e e d e d ............................. ........................................................... ..
1Q2
D eterm in ation o f P o l ic y . . . . . . . . ............ ...................................... .................... 103
Mortgage Land P o l ic y ................................................................................................. I 0^
ifrre R e e p o n a ib iI lty fo r F l e lf e e n .......... ........................................................... 105
C o n so lid a tio n o f H old in g*.................................................................................... 1q6
Prompt C p n o e lla tlo n o f L ea see. ............................ ...........................................
106
O f f ic e P rocedure. .............................. ............. ........................................................... I qq
An ItoqueatlonabIe Record i s D e s ir a b le ............ ............................................. HO
The M erit System . . . ..................................................... ............................................. m
A S lid in g S c a le o f R e n ta ls . . . . . ................................ ........................ ..
112
APPESDIXES
I.
11.
ill.
F ed eral Land Grants to th e S t a t e o f Montana............ ............... .............Hi*
Gross In o m e and O perating C osts o f Montana Dry Farm Lands,
600 Acre U n i t s . . .............................................................
S ta te Land Record Card.........................
I t . C l a s s i f i c a t i o n R ecord..............................................
v.
116
117
HQ
A dT ertisem ent— S a le o f G rasing P r i T il e g o s ................. ........................... 119
BIBLIOGRAPHY...........................................................................................
X2Q
-5 LIST OF TABLES
PBge
T able I ,
Im portance o f S ch ool Lends ea Source o f Revenue to
Common S ch o o ls ............................................................................. ..
25
T able I I .
D elinquonoy o f L ea ses B efo re C a n o e lle tio n ... ..........................
T able I I I .
Comparison o f R e n ta ls f o r a P er io d o f E ig h t Years
P reced in and E ig h t Years F o llo w in g L e g i s l a t iv e
R ed u ction s ................................................................... ............... ..
Table IV.
L ea sin g and R en ta l S t a t u s , e r a s in g Lands in Per C w it ..
T able V.
L ea sin r and R en tal S ta tu s o f Orasint- Lands ............................
i#
Table V I.
R eturns from A g r ic u ltu r a l L e a s e s , F iv e C ou n ties .................
5Q
Table V II.
C o lle c t io n S ta tu s o f Revenue Earned under C e r t i f i c a t e
o f Purchase C o n tra cts ..........................................................................
69
Table V I I I .
Table IX .
Jl4,
I4S
Years o f D elin q u en cy o f C e r t i f i c a t e s o f Puroliase
C o n tra cts b e fo r e C a n c e lla tio n ...........................................
71
Comparison o f R en tal and S a le s Value o f S t a t e Land
A ccording to P r o d u c t i v i t y ................................................
Ti4
T able X.
C on d ition o f S t a t e Farm L oans, Jiaae JO, Igi4O .. .....................
77
T able X I.
S ta tu s o f S t a t e Mortgage Lands, F iv e C oun ties .....................
79
Table X II.
C o n d itio n o f S ta te FBra Loans E xpressed a s a Per
C ent...........................................................................................
T able U I I .
S t a t e A g r ic u ltu r a l and Gracing L eases by S is e o f
H old in gs ..............................................................
T able XIV.
Comparison o f Gracing C o sts o f S ta te Lands o f
H i i l l i p s County A ccording to D if f e r e n t A p p r a isa ls . . . .
Table XV.
Table XVI.
50
94
A creage o f S e le c t e d Gracing D i s t r i c t s Shoeing
D if f e r e n t A p p r a isa ls .....................................................
A creage Leased and R en tal O btained by Montana
In dian A g en cies ........................................................................................
97
95
-6-
LIST OF FIGURES
Page
F ig u re
1.
M»p o f Montane Showing C o u n ties S tu died ...................................
F igu re
2.
Hteaber o f C a n celled S ta te Land L ea ses by Months o f
D elin q u en cy , F iv e Montana C o u n tie s, 1931-19^ 0, I n c lu s iv e
35
Per C ent o f C a n c elled S t a t e Land L eases b y Months o f
D elin q u en cy , F iv e Montana C o u n tie s, 1931-191*0, I n c lu s iv e
36
P ro p o rtio n o f S t a t e G razing A crea e Leased from which
Revenue was C o lle c te d a s Compared t o A creage L eased
from w hich no Revenue was C o lle c te d and A creage n o t
L e a se , F iv e C o u n tie s, 1931-1*0, I n c lu s iv e .......................... ..
1*3
S ta te G rating A creage Leased and T o ta l Revenue C o lle c te d
from L e a se e , F iv e Montana C o u n tie s, I 93 I - I 9 I4O, I n c lu s iv e .
1*1*
S t a t e O rasing A creage n o t Leased and Revenue L o st
Through F a ilu r e to L e a se , F iv e Montana C o u n tie s, I 93 I 191*0» I n c l u s i v e . .....................................................................................
1*5
S t a t e Grazing A creage on which Revenue was C o lle c t e d ,
F iv e Montana C o u n tie s, 1931-191*0, I n c lu s iv e ...............................
1*6
F ig u r e
F igu re
F ig u re
Figure
F ig u re
J.
1*#
5.
6.
7*
7a
F igu re
8.
C ost o f R en ta l o f S ta te G razing Lands in Chouteau
County, Montana, a s Compared to P r o d u c tiv ity and C ost
o f Owning, 1931-191*0, I n c l u s i v e ........................................................ 51
F ig u re
9.
C ost o f R en tal o f S t a t e G razing Lands in C uster County,
M ontana, a s Compared to P r o d u c t iv it y and C ost o f Oimlng,
1931-191*0, I n c l u s i v e . .............. ............................. .................................... 52
F igu re 10.
C ost o f R en ta l o f S ta te G razing Lands in Fergus County,
Montana, a s Compared to P r o d u c tiv ity and C ost o f Owning,
1931-191*0, I n c l u s i v e . ............................................................................ ..
53
F igu re 11.
C ost o f R en tal o f S ta te G razing Lands in P h i l l i p s County,
Montana, a s Compared to P r o d u c tiv ity and C ost o f Owning,
1931- 19140, I n c l u s i v e . . .............................................. ............................. .. 51*
Figure 1 2 .
C ost o f R en ta l o f S t a t e G razing Lands in V a lle y C ounty,
Montana, a s Compared t o P r o d u c t iv it y and C ost o f Owning,
1931-191*0, I n c l u s i v e . . . . . ................................... .................................... 55
7-
Page
F igu re I J .
Per c e n t o f Revenue and N on-revenue Producing A creage
o f Fant, Lands Under L ea se, F iv e Mtmtana C o u n tie s,
1931-19!*0, I n c l u s i v e . . . . .......................
59
M gu re 11*.
P r o d u c t iv it y o f A g r ic u lla ir a l Lands in Chouteau C ounty,
Montana, a s Cm pared to C o st o f Oaning and A verage
R en ta l R etu rn s, 1931-191*0, I n c l u s i v e . . . . . . . . . . . . . . . . . . . . 62
F igu re 1 5 .
P r o d u c t iv it y o f A g r io u ltu r a l Lands In C uster County,
Montana, a s Compared t o C ost o f Owning and A verage
R en ta l R etu rn s, 1931-191*0, I n c lu s iv e ........................
63
P r o d u c t iv it y o f A g r ic u ltu r a l Lands o f Fergus C ounty,
Montana, a s Ctsapared to C ost o f Owning and Average
R e a ta l R etu rn s, 1931-191*0, I n c lu s iv e ..........................
61*
P r o d u c tiv ity o f A g r ic u ltu r a l Lands in P h i l l i p s C ounty,
Montana, a s Compared to C ost o f Owning and Average
R en ta l R etu rn s, 1931-191*0, I n c lu s iv e ................................... ..
65
F igu re 1 6 .
F ig u r e I ? .
F igu re 1 8 .
P r o d u c t iv it y o f A g r ic u ltu r a l Lands In V a lle y C ounty,
Montana, s » Compared to C ost o f Owning and Average*
R en ta l R etu rn s, 1931-191*0, I n c l u s i v e . . . . . ................... ............... 66
F ig u re 19 .
Amount o f Payments Due and P ayab le Under C e r t if ic a t e #
o f P u rch a se, Showing S ta tu s o f C o lle c t io n s in Per C ent,
F iv e Montana C o u n tie s, I 93 I - I 9 I4O, I n c lu s iv e .......................... ..
70
F igu re 2 0 .
Per Cent o f C e r t i f i c a t e Purchase Cm t r a c t s on S ta te
Lands C a n c elled a f t e r ' seam ing D e lin q u e n t, by Years o f
D elin q u en cy , F iv e Montana C o u n tie s, 1931-191*0, I n c lu s iv e . 72
F igu re 2 1 .
A reas o f C o lle c t iv e Tenure In Montana, lg l* !................. ..
F igu re 2 2 .
G raslng C o sts o f P r iv a t e ly Om ed Land In South P h i l l i p s
County Qr a s in g D i s t r i c t a s Compared to S t a t e Land
R e n ta ls Under D if f e r e n t A p p r a is a ls , 19l*0......................................95
89
MO N T A N A
I
?
O-
ACKHORLEDaMEHTS
The a u th o r w ish e s t o acknowledge th e a s s i s t a n c e o f t h e Work P r o je c ts
A d ain i s t r a t i o n , p r o j e c t 0 , P. 1 6 5 -1 -9 1 -8 3 # (W .P. 3 5 8 5 ) f o r g a th e r in g th e
d a ta u sed and in co m p ilin g and t a b u la t in g t h e m a te r ia l •
The au th o r a l s o w is h e s t o e x p r e s s h i s thanks and a p p r e c ia tio n t o
P r o fe s s o r Eoward H. Lord
f o r h i s c o u n c il and a d v ic e , t o th e S t a t e Board
o f Land C om m issioners, t o J . We W alker, Cmnmissioner o f S t a t e Lands and
In v e stm e n ts, W alter C. B u rton , C h ie f F ie ld A gen t, and th e e n t i r e o f f i c e
f o r c e o f th e S t a t e Department f o r t h e i r s p i r i t o f c o o p e r a tio n and k in d ly
i n t e r e s t i n th e work, t o D r. R. ZL Hexue and h i s e n t i r e s t a f f f o r t h e i r
i n t e r e s t and c o o p e r a tio n , and t o M iss D orothy Hopper f o r h e r work in
ty p in g t h i s m a n u scrip t.
9AfiSTMCT
Tha S t a t e o f Ifcmtana p o s s e s s e s o v e r 5 * 0 0 0 ,0 0 0 s o r e s o f la n d granted
t o i t by th e F ed era l Government. The income from t h i s gran t g o e s , i n a
la r g e p a r t, t o th e cannon s c h o o ls o f th e S t a t e , y e t c o n tr ib u te s o n ly 1 1 .8
p e r c e n t o f th e fu n ds n e c e s s a r y t o m a in ta in t h e s e s c h o o ls .
The y e a r 1933 i s n otew orth y i n th e h is t o r y o f s t a t e la n d s o f Montana.
During th e L e g i s l a t iv e Assem bly o f t h a t y e a r , a l l g r a s in g r e n t a ls were re­
duced a t l e a s t 50 p er c e n t , th e minimum r a t e removed and a
r a te
s u b s t it u t e d f o r i t . A creage le a s e d in c r e a s e d from 57 p er c e n t f o r th e
p r e v io u s e i g h t y ea r a v era g e t o JL p er c e n t f o r th e su bseq u en t e ig h t y e a r s .
The a v era g e r a t e p er ao re dropped from a 12.1* c e n t a v era g e t o a 7 .1 c e n t
a v e r a g e , w ith a con seq u en t a v era g e l o s e i n revenue o f 2 ) p er c e n t .
Of th e f i v e c o u n tie s s t u d ie d , Chouteau, C u ster , F er g u s, P h i l l i p s , and
V a lle y , ap p ro x im a tely 62 p er o en t o f th e p o s s i b l e revenue from g r a sin g
la n d s were a c t u a ll y c o l l e c t e d , 6 1/ 1* p e r o e n t was l o s t through f a i l u r e t o
c o l l e c t , w h ile J l J/l* p er c e n t was l o s t through f a i l u r e t o l e a s e . As
measured on th e b a s is o f what th e la n d s were a c t u a ll y cap ab le o f producing
when judged b y s o i l su rv ey p r o d u c t iv it y , farm management s t u d i e s , and h is ­
t o r i c a l y i e l d s , i t i s found t h a t p r e s e n t r e n t a l r a t e s a r e b elo w what th e y
sh ould be t o be in k eep in g w ith th e p r o v is io n s o f th e g r a n t. T his co n clu ­
s io n i s a l s o borne o u t when r e n t a ls a re compared w ith th o s e o b ta in ed by
o th e r a g e n c ie s .
An avera g e o f o n ly QJ p er o en t o f th e a g r ic u lt u r a l la n d s i n th e s e
c o u n tie s produced any revenue w hatever d u rin g t h e p e r io d , 1931 - 1*0 in c lu s ­
i v e , w h ile th e a v era g e r e tu r n p er a c r e was o n ly 28 c e n ts f o r th e farm lan d
a c t u a ll y p rod u cin g r e n t a l.
A l i t t l e more th a n th r e e p er o en t o f t h e l e a s e s c o n t r o l a l i t t l e more
than J l p e r o en t o f a l l s t a t e la n d s under l e a s e . T h is may be co n sid ered
an in d ic tm e n t o f th e p r e s e n t c o m p e titiv e sy ste m . However, i t i s found
th a t c o m p e titiv e b id d in g p la y s a v ery minor p a r t i n th e d is t r ib u t io n o f
s t a t e lan d l e a s e s . Of a t o t a l o f more th an 1 0 ,0 0 0 l e a s e s examined i n th e
S t a t e Land O f f ic e , l e s s th a n sev en p er o e n t had been l e t through com peti­
tio n .
W hile g r a sin g d i s t r i c t s have much t o o f f e r i n th e m a tter o f con serva­
t i o n o f r e s o u r c e s , th e y have n o t o n ly o b ta in ed s t a t e lan d l e a s e s a t r e n t a l
r a t e s b elow t h e i r v a lu e , b u t a t r a t e s s o low t h a t th e v e r y purpose o f
t h e s e lan d g ra n ts i s a p t t o he d efea ted *
T h i s s t u d y indicates that a careful i n v e n t o r y of a l l lands should b e
m a d e so a s t o d e t e r m i n e t h e a c reage of e a c h class of land.
F o l l o w i n g this
a p o l i c y m a k i n g committee, appointe d b y t h e governor, could f o r m u l a t e a
sound p o l i c y for t h e future a d m i n i s t r a t i o n o f state lands.
-10-
PABT I .
PBOBLfX' ASD PURPOSE OP STUDY
The Problem
When Montana was ad m itted t o th e union a s a S ta te in 1 8 8 9 , more than
5 ,0 0 0 ,0 0 0 V a c r e s o f lan d were r e se r v e d by th e F ed eral governm ent t o th e
S ta te fo r th e su p p o rt o f p u b lic e d u c a tio n .
A d d itio n a l g ra n ts were su b se­
q u e n tly made f o r v a r io u s p u rp oses w h ile c e r t a in t r a c t s were s o ld .
In many
c a s e s th e lan d t h a t was s o ld has r e v e r te d to th e S ta te through f a i l u r e o f
th e p u rch a sers to u e e t t h e ir p u rchase c o n t r a c t s .
During th e y e a r s 1916 to I 92 Z4, s c h o o l fu n ds were in v e s te d in farm
ia o r tg a g e s.
Of th e 2 ,5 6 3 lo a n s t h a t were made on c o r e than 8 0 0 ,0 0 0 a c r e s o f
la n d , o n ly ab ou t tw en ty p er c e n t have e v e r been r ep a id .
W hile some o f th e se
lo a n s have been r e fin a n c e d and a r e s t i l l o u ts ta n d in g , th e S t a t e has taken
t i t l e to more than ^50.000 a c r e s o f m ortgage la n d s by reason o f d e fa u lte d
m ortgage c o n t r a c t s .
C on seq u en tly, th e S t a t e , a f t e r l i t t l e more than h a l f a
c e n tu r y , s t i l l has more than 5 , 500,000 a c r e s o f land to b e a d m in iste r e d . 2/
The a d m in is tr a tio n o f t h is lan d g r a n t, w hich in a la r g e p a r t b elo n g s
to th e s c h o o l c h ild r e n o f th e S t a t e , p r e s e n ts a problem d e s e r v in g o f th e
m ost c a r e f u l c o n s id e r a tio n by a l l i t s c i t i s e n s .
The problem o f th e admin­
i s t r a t i o n o f th e s e la n d s may be lik e n e d unto a two edged sword 1 on th e one
hand we have th e sch o o l I n t e r e s t s , on th e o th e r we have th e liv e s t o c k and
farm ing i n t e r e s t s .
U n less t h i s e x t e n s iv e a cre a g e i s f a i r l y and im p a r t ia lly
a d m in istered i n j u s t i c e s may r e s u l t .
I f an y group i n s i s t s upon r e n t a ls t h a t
37
l i , ./o ,7 2 0 s o r e s . Appendix I .
2/
5 ,5 3 6 ,6 3 1 .2 3 a c r e s , June 5 0 , I 9J4O.
a r* to o h ig h , th e sto o lcm n o r farm er w i l l b e in ju r e d o r th e land w i l l r e .
main u n le a s e d .
L ik e w ise , i f th e stockman ta k e s undue ad v a n ta g e, much i n ­
come w i l l be l o s t t o th e s c h o o l c h ild r e n o f th e S t a t e .
However, th e r e
must b e some m id d le ground upon w hich t h e s e la n d s may b e managed w ith «—
warn, b e n e f i t s t o a l l co n cern ed .
Any a ttem p t t o f in d a s o lu t io n t o th e
problem o f s t a t e lan d management i n Montana, w hich s e e k s t h e g r e a t e s t
p o s s i b l e revenue from t h e s e la n d s w ith o u t regard t o th e w e lfa r e o f th e
stockman and fa rm er, i s fore-doom ed t o f a i l u r e .
L ik e w ise , any attem p t t o
se c u r e th e u s e o f t h e s e la n d s w ith o u t a f a i r and j u s t recom pense t o th e
s c h o o l c h ild r e n o f th e S t a t e d e s e r v e s th e same f a t e .
I f th e s c h o o ls o f t h e S t a t e a r e t o r e c e iv e revenue from th e s e la n d s ,
i t i s e v id e n t t h a t a l l la n d s must b e , n o t o n ly o f f e r e d f o r l e a s e , b u t k ep t
le a s e d a t p r ic e s w hich t h e l e s s e e s oan a f f o r d t o p ay.
Purpose o f Study
The purpose o f t h i s t h e s i s i s t o d eterm in e, i f p o s s i b l e , th e answers
t o th e fo llo w in g q u e s t io n s i
I * - What a r e th e p r e s e n t and p o t e n t i a l c o n tr ib u tio n s o f
t h e s t a t e la n d s o f Moatami t o t h e s c h o o l fu n d s o f
th e S ta te ?
2 . - Are t h e r e tu r n s from th e r e n t a l o f s t a t e la n d s com­
p a ra b le t o th e r e n t a l o f l i k e la n d s s im il a r ! I y s i t ­
u ated i n th e same l o c a l i t y ?
3 * - I f n o t com parable, w hich r e n t a l v a lu e i s t o be used?
In o th e r w ords, what a r e th e rea so n a b le r e n t a l
v a lu e s o f s t a t e lan d ? % /
3 / wKhat l a t h i s lan d w orth t o an a v era g e farm er i n i t s p r e s e n t co n d i­
t i o n , f o r a l i n e o f p ro d u ctio n common t o th e oom aunity, i f th e p rod u cts a r e
s o ld a t averag e p r ic e s p r e v a ilin g i n th e y e a r s I 909 - 1I4 w ith su ch a d ju stm en ts
-1 2 -
I u - Are s t a t e la n d s b e in g s o a d m in istered "as t o se c u r e
t h e la r g e s t measure o f le g it im a t e and r ea so n a b le ad ­
v a n ta g e t o th e s t a t e " T U /
5 » - Do th e u s e r s o f s t a t e la n d s se c u r e an u n f a ir ad­
v a n ta g e o v er th e n o n -u sers o f th o s e la n d s?
RtoT I I .
HISTORICAL ASPECTS CE STUDY
Land G rants To The S t a t e
Montana a cq u ired t h i s v a s t h e r it a g e o f p u b lic la n d s th rou gh th e "En­
a b lin g Act" approved February 2 2 , 1 8 8 9 .
T h is a o t p a ssed by C aogrees pro­
v id e d f o r th e a d m issio n o f S o rth and South D akota, Montana and W M hlngton
t o th e Union o f S t a t e s and p ro v id ed t h a t upon a d m issio n
" s e c t io n s 16 and 36 i n e v e r y tow nship" — "and where
suoh s e c t i o n s , o r any p a r ts t h e r e o f , have been s o ld
o r o th e r w is e d isp o se d o f , b y or under a u th o r ity o f any
a c t o f C o n g ress, e th e r la n d s e q u iv a le n t t h e r e t o , in
le g n l s u b d iv is io n s o f n o t l e s s than £ s e c t io n , and a s
c o n tig u o u s a s may b e t o th e s e c t io n i n l i e u o f w hich
th e same i s ta k e n , a r e h ereb y gran ted t o s a id s t a t e s
f o r th e su p p ort o f common s c h o o l s .* % /
A l l l e g a l p r o v is io n s have b een made t o sa feg u a rd th e i n t e r e s t s o f th e
s c h o o ls i n th e m a tter o f a d m in is tr a tio n and d is p o s a l o f t h e s e la n d s .
They
a s a r e n e c e s s a r y t o a llo w f o r th e changes i n econom ic p o s i t i o n o f c e r t a in
c r o p s , o r li v e s t o c k " ? O addis, P . L. A p p r a isa l Methods o f F e d e r a l Land Banks,
Jou rn al Para E conom ics, V o l. 1 7 , 1 9 3 5 , P* I469.
h / "The g u id in g r u le and p r in c ip le s h a l l be th a t t h e s e la n d s and fu n ds
a r e h e ld In t r u s t f o r th e su p p ort o f e d u c a tio n , and f o r th e a tta in m en t o f
o th e r w orthy o b j e c t s h e lp f u l t o th e w e ll b e in g o f t h e p e o p le o f th e s t a t e j
and i t i s th e d u ty o f th e board ( S t a t e Land Board) t o so a d m in iste r t h i s
t r u s t a s t o se c u r e th e la r g e s t m easure o f le g it im a t e and r e a so n a b le advant­
age t o th e s t a t e " . R ev ised Codes o f Montana 19 3 5 , C hapter 1 6 0 , S e c . I 8O5 . 3 .
J j / (2 5 S t a t u t e 67 6 ) C kited S t a t e s C on gress, February 2 2 , 1889.
-1 3 -
oaa o n ly be d isp o se d o f a f t e r Im vlng b een a d v e r tis e d and must be s o ld a t
p u b lic s a le *
P r o v is io n i s a l s o made s o t h a t la n d s ca p a b le o f producing an
a g r ic u lt u r a l crop can n ot be s o ld f o r l e s s th a n # 10*00 p e r a c r e and la n d s
p r in c i p a l ly v a lu a b le f o r g ra zin g cannot be s o ld f o r l e s s th a n # 5 .0 0 p er
so re*
The E n ab lin g A ct a l s o p r o v id e s t h a t no la n d s oou ld be le a s o d f o r a
lo n g e r p e r io d th a n f i v e y e a r s nor i n t r a c t s la r g e r th a n 61# a c r e s t o any
one p e r so n .
l o t o n ly w ere s p e c i f i c p r o v is io n s made f o r th e a d m in is tr a tio n o f th e
la n d s b u t a l s o f o r th e fu n d s d e r iv e d therefrom * A /
Department Of S t a t e Lands And In vestm en ts
L eg a l p r o v is io n was made f o r a d m in is tr a tio n o f a l l s c h o o l la n d s o f
th e s t a t e , and f o r la n d s , w hich may h e r e a f t e r b e granted f o r th e support
and b e n e f it o f th e v a r io u s s t a t e e d u c a tio n a l i n s t i t u t i o n s by p ro v id in g f o r
a s t a t e lan d board composed o f t h e g overn or, su p e rin ten d en t o f p u b lic in ­
s t r u c t io n , s e c r e ta r y o f s t a t e and th e a t t o r n e y - g e n e r a l. l /
The departm ent so c r e a te d , was t o be known a s th e "Department o f S t a t e
Lands and In v estm e n ts" , t h e purpose o f w hich " s h a ll be t o a d m in iste r th e
f e d e r a l lan d g r a n ts made t o th e s t a t e o f Montana, and th e o th e r s t a t e
6 / "With t h e e x c e p tio n o f la n d s gran ted f o r p u b lic b u ild in g s th e pro­
c e e d s s h a l l c o n s t it u t e permanent fu n d s f o r th e support and m aintenance o f
p u b lic s c h o o ls and v a r io u s s t a t e I n s t i t u t i o n s f o r w hich t h e la n d s have b een
granted*"
" R en tals o f le a s e d la n d s , i n t e r e s t on d e fe r r e d payments on la n d s s o ld ,
i n t e r e s t on fu n d s a r i s i n g from t h e s e la n d s and a l l o th e r a c t u a l income
s h a l l b e a v a ila b le f o r th e m aintenance and su p p ort o f such s c h o o ls and i n ­
s t it u t io n s " * — E n ab lin g A c t , S e c tio n 1 1 .
J / C hapter 1 5 7 , S e c t io n 1 8 0 1 .5 , P o l i t i e s ! Code.
—Ilpla z id s, and th e fu n ds a r i s i n g from t h e s e la n d s ,"
The membership o f
s t a t e lan d board a s l i s t e d ab o v e, was t o be th e go v ern in g body and would
bo known a s th e " S ta te Board o f Land C om m issioners."
They w ere in v e s te d
w ith r a th e r broad powers i n th e a d m in is tr a tio n o f a l l la n d s under t h e ir
J u r is d io t lo n i and th e oode p ro v id es
"The g u id in g r u le and p r in c ip le s h a l l be t h a t t h e s e
la n d s and fu n d s a r e h e ld i n t r u s t f o r th e su p p ort o f
e d u c a tio n , and f o r th e a tta in m en t o f o th e r w orth y o b j e c t s
h e lp f u l t o th e w e ll b e in g o f th e p eo p le o f t h i s s t a t e ;
and i t i s th e d u ty o f th e board t o s o a d m in iste r
t h i s t r u s t a s t o se c u r e th e la r g e s t measure o f l e g i t i ­
m ate and r ea so n a b le advantage t o th e s t a t e ," 2 /
The l e g i s l a t u r e th e n made p r o v is io n *0/ f o r th e govern or t o a p p o in t
"by and w ith th e c o n se n t o f t h e S t a t e Board o f T-and
C om m issioners, a s t a t e Land A gen t, who i s a u th o r ise d
and empowered, and whose d u ty i t s h a l l b e , t o s e l e c t ,
s u b j e c t t o su ch r u le s and r e g u la t io n s a s may be p re­
s c r ib e d by th e S e o r e ta r y o f th e I n t e r io r , and ca u se
same t o be conveyed t o th e S t a t e o f Montana, a l l
s c h o o l and in d em n ity la n d s , and a l l p u b lic la n d s ,
donated t o th e S t a t e by th e U n ited S t a t e s f o r th e
v a r io u s p u b lic b u ild in g s and i n s t i t u t i o n s , by v ir t u e
o f t h e A ot o f C ongress o f February 2 2 , 1899",
The S t a t e Lami A gent l l / was charged w ith th e r e s p o n s i b i l i t y o f s e l ­
e c t i n g h ie a s s i s t a n t s and o f f i c e p erso n n el and was g iv e n a u t h o r it y t o p re­
s c r ib e r u le s and r e g u la tio n s f o r th e conduct o f th e o f f i c e .
L a ter a s th e
d u t ie s o f th e departm ent became h e a v ie r , t h e p o s it io n o f S t a t e F o r e ste r 1 2 /
8 / I b id .
I b id , S eo . 1 8 0 5 .3 .
W y I b id , S eo . 1 8 0 5 .5 .
l l / R ev ised Codes o f Montana 1935# Chap*. I 58 , S e e . 1 8 0 5 .7
1 2 / I b id , S e o . 1 8 0 5 .6 .
-1 5 -
*** or en ted whose d u ty i t was t o work under t h e d ir e c t io n o f th e board i n
a l l m a tters p e r t a in in g t o th e s t a t e f o r e s t s .
P r o v is io n had b een made by th e c o n s t it u t io n 3 2 / f o r th e c l a s s i f i c a t i o n
o f a l l s t a t e la n d s by th e board o f lan d com m issioners a s f o l l o w s i
F i r s t , la n d s w hich were v a lu a b le o n ly f o r g ra z in g pur­
p o ses.
Secon d , th o s e w hich a r e p r in c i p a l ly v a lu a b le f o r th e
tim b er w hich i s on them.
T h ird , a g r ic u lt u r a l la n d s .
F o u rth , la n d s w ith in th e l i m i t s o f any town o r c i t y
or w it h in th r e e m ile s o f such l i m i t s | p ro v id ed ,
t h a t any o f s a id la n d s may be r e c l a s s i f i e d
w henever, by rea so n o f in c r e a se d f a c i l i t i e s
f o r i r r i g a t i o n o r o th e r w is e , th e y s h a l l be sub­
j e c t t o s d iffe r e n t c la s s if ic a t io n .
Montana co d es 3 l i / f u r t h e r expanded upon t h i s c l a s s i f i c a t i o n and p rovid ed
th a t th e t h ir d c l a s s i I . e . , a g r ic u lt u r a l la n d s , sh ould be su b d iv id ed in t o
two e u b -o la s s e s
( a ) i r r ig a b le la n d s , and
(b ) n o n - ir r ig a b le la n d s , and
t h a t th e fo u r th c l a s s sh o u ld be s u b -d iv id e d in t o
l i m i t s o f any c i t y o r tow n, and
( a ) la n d s w it h in th e
(b ) la n d s n o t w ith in su ch l i m i t s , b u t
w ith in th r e e m ile s t h e r e o f .
The second s e s s i o n o f t h e l e g i s l a t i v e assem b ly (1 0 9 1 ) B*de p r o v is io n
f o r th e l e a s i n g o f any la n d s gran ted t o th e s t a t e . 3 2 /
T h is assem bly a l s o
} 2 j I b id , S e o . 1 0 0 5 .6 .
I ) / C o n s t it u t io n o f Montana, A r t. X VII, S e c . I .
l i t / R ev ised Codes o f Montana, 1935# C hapt. 1 5 9 , S e e . 1 0 0 5 .1 6 .
1 5 / tfThe S t a t e Board o f Land C onsnissioners s h a ll have t h e power t o
le a s e th e la n d s o f th e S t a t e a t a r a te n o t l e s s than f i v e p er c e n t p er
annum (p a y a b le i n ad van ce) on th e a p p ra ised v a lu e o f t h e same, and s h a l l
-16-
en a cted a r a th e r s t r in g e n t t r e s p a s s law p r o v id in g punishm ent by f i n e o f n o t
l e s s th an $2 5 .0 0 and n o t e x c e e d in g $ 1 , 00 0 .0 0 f o r any p erso n who " s h a ll
octBBit t r e s p a s s o r o th e r in j u r y t o th e la n d s o f th e S t a t e , o r upon any o f
th e improvements t h e r e o n ."
Vp<m O r a n v ille S t u a r t , f i r s t S t a t e Land A gen t, f e l l th e r e s p o n s i b i l i t y
o f s e l e c t i n g a la r g e p a r t o f th e la n d s n o t s p e c i f i c a l l y d e sig n a te d a s t o
lo c a t i o n ; and a l s o o f s e l e c t i n g l a a l s i n l i e u o f th o s e p o r tio n s o f 16 and
3 6 a lr e a d y a cq u ired by o th e r a g e n c ie s .
A m ajor p a r t o f th e s e l e c t i o n s w ere
node on h o r se -b a c k , about th e o n ly means o f conveyance a v a il a b l e a t t h a t
tim e , and th e g r e a te r p a r t o f h ie ten u re o f o f f i c e was sp e n t i n an e f f o r t
t o make t h e b e s t p o s s i b l e s e l e c t i o n s b e fo r e any fu r th e r w ith d raw als b y i n .
co n in g s e t t l e r s .
Many days were sp e n t i n th e sa d d le and t h e t a s k was ac­
com p lish ed , n o t w ith o u t c o n s id e r a b le d i f f i c u l t i e s .
A l l o f t h i s work was
done w ith a minimum o f ex p en se t o th e S t a t e . J t i /
The " system o f appraisem ent" became a m a tter o f c o n te n tio n ra th er
e a r l y i n th e h is t o r y o f th e management o f s t a t e la n d s .
A ccord in g t o Gran­
v i l l e S tu a r t JL2/ th e problem o f a p p r a is a l was v e r y much th e same a t t h a t
r e q u ir e o f th e l e s s e e such a bond a s s h a l l se c u r e th e s t a t e from l o s s or
w a s te ; and i n no c a s e s h a l l th e l e s s e e be a llo w ed t o o u t o r w a ste more
tim b er th a n s h a l l be n e c e s s a r y f o r th e improvements on th e la n d o r f o r f u e l
f o r th e u s e o f th e fa m ily o f th e l e s s e e . " — S e c t io n 3 9 . S e s s io n Laws o f
Montana 1891#
1 6 / I b id , S e c t io n 3 2 .
1 7 / G r a n v ille S tu a r t r e p o r ts ; " I have econom ised i n e v e r y way p o s s i b l e
i n th e m a tter o f e x p e n s e s . For th e 20 1/fe months s e r v ic e my b i l l s have
c o s t th e S t a t e $ 1 ,2 1 5 .7 2 ."
1 8 / Second Annu a l Report o f th e S t a t e Land A gen t.
-17-
t i * a a s i t l a to d a y ; " ex p en siv e In i t s e x e c u tio n and u n s a t is f a c t o r y i n i t s
r e s u l t s ."
PlET I I I . MBT
T
L im ita tio n o f Study
S t a t e la n d h o ld in g s a r e e x t e n s iv e and w id esp rea d .
S e lt h e r tim e nor
M n ey i s a v a il a b l e f o r a stu d y o f th e management o f t h e s e la n d s in t h e i r
e n tir e ty .
I t was n e c e s s a r y , t h e r e f o r e , t o d e li m it th e f i e l d o f stu d y .
A
w id e d i v e r s i t y o f problem s d e a lin g w it h e r a s in g , fa rm in g , m in e r a l, tim b er,
o i l , gas and w a ter power i s en cou n tered i n d e a lin g w ith s t a t e la n d s .
Be­
cau se th e le a s i n g o f a g r i c u lt u r a l and g r a c in g la n d s a cco u n ts f o r over
e ig h t y p er c e n t o f th e revenu e from th e s t a t e la n d s and b eca u se d a ta a v a i l ­
a b le a t th e Montana A g r ic u ltu r a l Experim ent S t a t io n f a c i l i t a t e t h e stu d y
o f problem s en co u n tered i n managing t h e a g r ic u lt u r a l and g r a c in g la n d s ,
t h i s stu d y i s c o n fin e d t o them .
Source Of D ata
As p a s t r e tu r n s w ere t o be compared w ith th e p o t e n t ia l r e tu r n s acco rd ­
in g t o th e s o i l su r v e y 3 2 / and farm management s t u d ie s o f th e Montana Ag­
r i c u l t u r a l Experim ent S t a t io n , i t was n e c e s s a r y t o c o n fin e t h e stu d y t o
t h a t p a r t o f t h e S t a t e f o r w hich th e s o i l c l a s s i f i c a t i o n rec o rd s were
a v a ila b le .
C houteau, C u ster , F erg u s, P h i l l i p s , and V a lle y c o u n t ie s were
1 9 / Made by th e Agronasqy Department o f t h e Montana A g r ic u ltu r a l Exper­
im ent S ta tie m i n c o o p e r a tio n w ith t h e S o i l Survey D iv is io n o f th e I M te d
S t a t e s Bureau o f C hem istry and S o i l s .
-18-
s e le c t e d t o g e t th e most r e p r e s e n t a t iv e sam ple p o s s i b l e from t h a t a r e a .
Hone o f th e c o u n t ie s s e le c t e d p resen ted any p e c u l i a r i t i e s t h a t c o u ld In any
way b e regarded a s u n usu al f o r th e r e g io n .
are t y p ic a l.
G raslng and farm in g c o n d itio n s
As n o th in g was known reg a r d in g th e management f e a t u r e s o f any
o f th e s t a t e lan d * In t h e s e c o u n t ie s , t h e i r s e l e c t i o n was a b s o lu t e ly la*,
p a r tia l.
In o rd er t o o b ta in a h i s t o r i c a l background, prim ary d a ta were secu red
from th e f i l e s o f th e Commissioner o f S t a t e Lands and In v estm en ts f o r th e
p e r io d from 1931 through 1 9 W . -2 2 /
The s o i l su rvey d a ta and th e r e s u l t s
o f farm management s t u d ie s w ere u sed t o show th e p robable e a rn in g power o f
th e s e la n d s o v er a lo n g p e r io d .
A p p lic a tio n o f Rata
The v a lu e o f a g r ic u lt u r a l lan d i s in flu e n c e d by a g r e a t many f a c t o r s .
A ctu a l s a l e s a r e o f t e n co n sid e r e d th e b e a t c r i t e r i o n on w hich t o b ase v a l ­
u a tio n .
L o c a tio n , t o o , i s nomatimes u sed and a d h eren ts o f t h i s p h ilo so p h y
p o in t ou t th a t what may be i d e n t i c a l t r a c t s o f la n d , a s f a r a s p h y s ic a l
c a p a c ity t o produce i s co n cern ed , may be a lm o st w o r th le s s i n a d e s e r t , b u t
w orth m il lio n s i n t h e lo o p d i s t r i c t o f C h ica g o .
Topography and a v a i l a b i l i ­
t y o f w a ter su p p ly a re no doubt f a c t o r s t o be c o n sid ered i n e v a lu a tin g
e i t h e r f o r farm ing or g r a z in g .
D ista n c e from s c h o o l and ch u rch , a s w e l l a s
2 0 / D ate o b ta in ed in clu d ed * l e g a l d e s c r ip t io n o f each t r a c t , a c r e a g e ,
l e a s e o r c e r t i f i c a t e o f p u rchase number, d a te o f l e a s e , l e s s o r ' s name, ad­
d r e s s and t r a c t h i s t o r y . A d d itio n a l in fo r m a tio n cm m ortgage la m is in c lu d ­
ed* m o rtg a g o r's name and a d d r e s s, amount o f o r i g in a l lo a n , o r i g in a l ap­
p r a is a l o f land and im provem ents, p r e s e n t a p p r a is a l when a v a il a b l e , record
o f payments made and le a s i n g r e c e i p t s , d a te upon w hich S t a t e a cq u ired t i t l e ,
and p r e s e n t book v a lu e o f th e p r o p e r ty .
-1 9 -
d ie t a o c e and c o n d itio n o f roads o v er w hich one must t r a v e l t o reach th e
market can n ot be Ig n o red .
But In th e f i n a l a n a l y s i s , i t i s th e p h y s ic a l
. p r o d u c t iv it y o f a g r ic u lt u r a l and g r a s in g land t h a t d eterm in es w hether i t
h as any s a l e v a lu e and w hether one would be j u s t i f i e d in u s in g i t a t any
p r ic e .
P r o d u c tiv ity i s th e most im p ortan t f a c t o r in f lu e n c in g th e v a lu e o f
a g r ic u lt u r a l la n d a cco r d in g t o many a u t h o r i t i e s . S i /
R ie F ed era l Land Banks w ere perhaps th e f i r s t a g e n c ie s t o c a l l a t t e n ­
t i o n t o th e m a tter o f p r o d u c t iv it y o r ea r n in g power a s a b a s i s o f ev a lu a ­
tio n . S S /
tiv ity . i 2 /
S o i l i s th e p r in c ip a l f a c t o r i n d eterm in in g th e p h y s ic a l produc­
Baoh s o i l ty p e has q u it e d e f i n i t e , d eterm in a b le p o s s i b i l i t i e s
f o r th e growth o f c r o p s , g r a s s e s and f o r e s t s .
Through vho lo n g accumula­
t i o n o f d a ta and e x p e r ie n c e by r e s e a r c h w orkers and farm ers on s o i l t y p e s ,
th e r e i s no la c k o f d e f i n i t e in fo rm a tio n on which t o b a se c o n c lu s io n s . S V
2 1 / Uaiwnar, D r. C. H ., F a c to r s A f f o o t ia g Farm V alu es i n M isso u r i.
M isso u ri B u ll e t in No. 2 2 9 . Meldnan, W. Q. and Meldrum, H. R ., A P rod u ction
IAsthod o f V a lu in g Land. Io a a B u ll e t in No. 5 2 6 .
2 2 / " In making such a p p r a is a l, t h e v a lu e o f th e land f o r a g r ic u lt u r a l
p u rp oses s h a l l be th e b a s i s o f a p p r a is a l and th e ea rn in g power o f s a id la n d
s h a l l be th e p r in c ip a l f a c t o r ." — F ed er a l Farm Loan A ct o f 19 1 6 .
2 5 / "In a r a t i o n a l , fu n dam en tal, aad com parative c l a s s i f i c a t i o n o f
lan d on a p r o d u c t iv it y b a s is th e in h e r e n t n a tu r a l c a p a c ity o f th e land f o r
p la n t p ro d u ctio n must be th e c h ie f c o n s id e r a t io n . D ata f o r such c l a s s i f i ­
c a t io n oazmot be o b ta in ed from s t a t i s t i c s o f p r o d u c t iv it y , s in c e th e s e
m erely e x p r e s s th e r e s u l t s a r i s i n g from a number o f f a c t o r s o f which
n a tu r a l c a p a c ity o f th e lan d i s one o n ly . Qf th e th r e e f a c t o r s i n th e
con cep t o f la n d , c lim a te and r e l i e f a re m a in ly concerned w it h o th e r m a tters
th a n p r o d u c t iv it y 1 t h e o n ly o th e r f a c t o r , t h e r e f o r e , i s s o i l , and th e
burden o f p r o d u c t iv it y m ust b e borne by i t . "
— Marbut, C. F . S o i l
Survey i s a N ecessa ry B a sis o f Lend C l a s s i f i c a t i o n .
U. S . D. A. Yearbook,
193U.
2»V K e llo g , C. E ., S o i l Survey P ro v id es D ata For C l a s s i f i c a t i o n .
S . D. A. Yearbook, 1 9 3 5 .
U.
-2 0 -
nQ u a lifie d s o i l s men a r e a b le t o ju d ge th e i n ­
h e r e n t cro p -p ro d u cin g c a p a c ity o f s o i l s from th e
c h a r a c te r o f s o i l p r o f i l e s and t o l i s t th e s o i l s i n
th e o rd er o f t h e i r c a p a c ity t o produce crops# F er­
t i l i t y , f r i a b i l i t y , e a s e o f w ork in g, amount o f s to n e s
and g r a v e l, top ograp h y, ten d en cy t o e r o d e , and d r a in ­
age a r e among th e f a c t o r s t h a t a f f e c t s o i l p r o d u c tiv i­
t y . In s e m i-a r id a r e a s su ch a s Montana, m o istu re i s
u s u a lly th e li m i t i n g f a c t o r i n crop production#
IIenoe, a b i l i t y o f s o i l t o absorb and t o u t i l i s e
a v a il a b l e p r e c i p it a t io n f o r p la n t growth i s p ro b a b ly
■ ore im p ortan t th a n any o th e r f a c t o r ."
Rsmne and lo r d
contend t h a t " p r o d u c tiv ity value" i s more s a t i s ­
f a c t o r y th an " s a le s value" a s a means o f e v a lu a tin g lan d f o r th e f o llo w in g
r e a s o n s : ( I ) t h e v a lu e may be more r e a d ily determ ined by means o f a
s c i e n t i f i c s o i l su rv ey and land c l a s s i f i c a t i o n supplem ented w ith o th er
p r o d u c t iv it y d a ta and w ith farm p r ic e and o o s t d a ta now a v a il a b l e ;
(2 ) i t
■ay be more s c i e n t i f i c a l l y a d ju ste d t o changes i n th e ea rn in g c a p a c ity o f
th e lan d w hich m ight r e s u l t from lo n g -tim e changes i n p r ic e l e v e l s or
ch anges i n p ro d u ctio n due t o d ro u th , i n s e c t p e s t s o r o th e r f a c t o r s .
They fu r t h e r show t h a t w ith o u t so n s a c c u r a te s c a le by w hich t o gauge
th e v a lu e , p o o r la n d s ten d t o be o v e r -v a lu e d and good la n d s t o be under­
v a lu e d .
A ccording t o our p r e s e n t la w s , Montana la n d s a re supposed t o be
a s s e s s e d a t t h e i r f u l l c a sh v a lu e ; w hich m eans, what th e y would b r in g a t a
v o lu n ta r y s a l e .
The a sse ssm en t f i g u r e s , t h e r e f o r e , a f f o r d some in d ic a t io n
a s t o th e d is c r e p a n c ie s i n land v a lu a t io n .
In a stu d y o f 5 ,0 0 0 farm s 2 T /
2 5 / Standards and Procedure f o r C l a s s i f i c a t i o n and V a lu a tio n o f T-md
f o r A ssessm en t P u rp o ses, H. H. Lord, S . W. Vc a lk e r , and L. F. O iesek er.
19142 U npublished m a n u scrip t, Montana A g r ic u ltu r a l Experim ent S t a t io n .
2 6 / Renne, R. R. and Lord, H. H ., A ssessm en t o f Montana Farm Lands,
Montana B u l l e t i n 3&S, O ctober 1957«
,IK:
I b id .
S ee a l s o , B n gleborn, A lb e r t S . , A s s i s t . Land P lan n in g S p eoLand Use P la n n in g P u b lic a tio n No. Q.
-21-
I t w s found t h a t san e in d iv id u a ls were b e in g a s s e s s e d 25 tim e s to o much
and o th e r s 10 tim e s to o l i t t l e .
The need o f a more s o i e n t i f i o v a lu a t io n o f land i s a p p a ren t.
AooordU
l n g l y , th e p r o d u c t iv it y o f th e s o i l i s reg a rd ed , f o r th e purpose o f t h i s
s tu d y ,a s t h e b a s ic f a c t o r upon Which v a lu a t io n s a r e d eterm in ed .
That pro­
d u c t i v i t y i s t r a n s la t e d I n to m onetary u n it s by m u ltip ly in g t h e !mown lo n g ­
tim e s u s ta in e d y i e l d s o f g ra cin g and crop la n d I y th e lo n g -tim e average
p r ic e f o r th e prod u ct o f th e s e la n d s .
A l l la n d s , th e n , must f i r s t be c l a s ­
s i f i e d and graded a cco r d in g t o p r o d u c t iv it y b e fo r e v a lu a t io n s a r e a p p lie d .
Procedure In C l a s s i f i c a t i o n And Grading
The c l a s s i f i c a t i o n and g ra d in g o f la n d in c lu d e s th r e e d i s t i n c t ste p s*
( 1 ) C l a s s i f i c a t i o n a cco r d in g t o u se c a p a b ili t ie s * i .
e . , fa rm in g , g r a c in g , f o r e s t , r e c r e a t io n .
( 2 ) Grading o f lan d w ith in each u se c l a s s i f i c a t i o n
a cco rd in g t o r e l a t i v e p r o d u c t iv it y .
( 3 ) D eterm in a tio n o f p er a c r e v a lu e o f d i f f e r e n t
grad es w it h in th e farm in g and grad in g c l a s s i f i ­
c a t io n .
C lm a s lflo a tlo n A ccord in g To Use
The f i r s t s te p i n c l a s s i f i c a t i o n i s t o d eterm ine th e u s e f o r w hich th e
lan d i s b e s t s u it e d .
T h is s t e p i s r e l a t i v e l y sim p le where p h y s ic a l f a c t o r s
d e f i n i t e l y e lim in a t e c e r t a in u s e s .
Some la n d i s so rough o r t h e s o i l i s eo
g r a v e lly t h a t c u lt iv a t e d crop p ro d u ctio n need n o t be c o n s id e r e d .
On th e
o th e r hand, where econom ic f a c t o r s such as* p ro d u ctio n te c h n iq u e s , c o s t s ,
in t e r - r e g io n a l c o m p e titio n , and p r ic e s must a l s o be c o n s id e r e d , th e problem
becomes more c o m p lic a te d .
There i s a v a s t a cre a g e i n se m i-a r id r e g io n s .
•uoh a s we a re s tu d y in g , t h a t m ight h e p r o p e r ly c l a s s i f i e d a s farm land
from th e sta n d p o in t o f topography and s o i l t y p e .
P r o d u c tiv ity on t h i s
lan d i s low and i t has few crop a l t e r n a t i v e s a s a r e s u lt o f low p r e c i p it a ­
tio n .
I t s u se c l a s s i f i c a t i o n i s th e r e f o r e la r g e ly dependent upon th e p r ic e
o f th e p r in c ip a l crop — w h ea t.
O lder p r e s e n t c o s t s and methods o f p ro d u c tio n , one d o lla r p er b u sh el
f o r w heat w ould p la c e la r g e a r e a s o f t h i s la n d i n th e farm in g c l a s s i f i c a ­
t i o n , b u t 50 c e n t wheat would ca u se much o f i t t o be d e f i n i t e l y submargin­
a l f o r w heat p ro d u c tio n .
Grading Land A ccording To P r o d u c tiv ity
T h is s t e p c o n s i s t s o f d eterm in in g th e p r o d u c t iv it y o f d if f e r e n t Mndq
o f land w ith in a u s e c l a s s i f i c a t i o n .
Lands w ith v a r io u s y i e l d s o f any
g iv e n crops * b e a t f o r exam ple, may be c o n v e n ie n tly grouped i n t o grades de­
n o tin g d e f i n i t e ra n g es i n p r o d u c t iv it y .
I f th e a c t u a l p r o d u c t iv it y can b e
a s c e r ta in e d w ith a h ig h d eg ree o f c e r t a in t y , th e range i n y i e l d f o r each
grade can be q u it e narrow , b u t i f a c t u a l y i e l d s a r e u n c e r ta in b ecau se o f
v a r io u s h a sa r d s, a range a llo w in g f o r more v a r ia t io n i s more f i t t i n g .
How­
e v e r , i f sm a ll d if f e r e n c e s i n p r o d u c t iv it y have c o n s id e r a b le econom ic s i g ­
n i f i c a n c e , i t i s e x p e d ie n t t o e x p r e s s p r o d u c t iv it y i n e x a c t term s even
though th e y be somewhat u n c e r ta in .
V aliw Of H is t o r ic a l Y ie ld Data
A r e c o g n it io n o f t h e v a lu e o f h i s t o r i c a l y i e l d s has become more appar­
e n t s in c e th e in c e p t io n o f th e A g r ic u ltu r a l A djustm ent A d m in istra tio n pro­
gram.
I t i s r e c o g n ise d t h a t y i e l d s nay r e f l e c t i n t e n s i t y o f c u lt i v a t io n
23-
•n d management f a c t o r s r a th e r than th e p r o d u c t iv it y o f th e s o i l .
In h eren t
p r o d u c t iv it y o f th e la n d r a th e r th a n d if f e r e n c e s i n management must be th e
b a s is o f g ra d in g .
Each s o i l ty p e m e t be t r a n s la t e d in t o a grade w hich i s
based on th e a b i l i t y o f th e s o i l t o produce crop s b e fo r e a s o i l su rvey can
be itsed ae n b a s is o f v a lu a t io n .
O pinions o f l o c a l fa rm ers, h i s t o r i c a l
y i e l d s , a s w e l l a s th e judgem ent o f e x p e r ie n c e d s o i l s men, a r e u sed in t h i s
tr a n s la tio n .
W hile h i s t o r i c a l y i e l d s a r e h e lp f u l In p r e d ic t in g fu tu r e
y i e l d s , an av era g e o f p a s t perform ances I s b y no means an i n f a l l i b l e Ind t wSrt i ° n o f what w i l l ooour i n t h e f u t u r e . S /
Land c l a s s i f i c a t i o n maps, b ased
on t h e s e s u r v e y s , have b een prepared f o r t w e n t y -f iv e c o u n t ie s In th e Great
P la in s r e g io n d f t h e S t a t e .
These maps c l a s s i f y dry farm la n d in t o fo u r
grad es and g r a sln g la n d i n t o f i v e g r a d e s.
S in c e wheat i s th e m ost impor­
ta n t crop on dry farm ing la n d s (9 0 p er c e n t o f M ontana's d ry farm la n d s
b e in g u sed i n w heat p r o d u c tio n ) a v erage w heat y i e l d s p ro v id e a co n v en ie n t
and g e n e r a lly a c c e p ta b le b a s is f o r grad in g su ch la n d .
Graded a s t o y i e l d o f s p r in g wheat on summer f a ll o w , we haves
F i r s t g ra d e.
Second grade
Third g ra d e.
. . .
. . .
. . .
19 b u sh e ls and o v e r , p er a c r e
16 t o 19 b u s h e ls , p er a cre
13 t o 16 b u s h e ls , p er a c r e
$ 1 .8 0
1 .0 6
.2U 3 0 /
F ou rth grade p ro d u ctio n shows no econom ic r e n t aa farm
a#d
t h e r e fo r e c a l le d t h ir d grade g ra zin g la n d .
G rasin g a r e a s a r e graded aa t o th e a c r e s req u ired f o r a 1,000 pound
s t e e r f o r a t e n month g r a sln g p e r io d .
2 2 / I b id .
3 0 / For a method o f com putation s e e Appendix i i .
F i r s t g ra d e.
Second grade
Third g ra d e.
F ourth grade
F i f t h g ra d e.
.
.
.
.
.
. .
. .
. .
. .
. .
18
19
28
38
56
acres
to 27
to 37
t o 55
acres
o r l o s e , p er a cre
a c r e s , p er a c r e
a c r e s , p er a c r e
a c r e s , p er a c r e
and o v e r , p er a c r e
I
.1 8
.12
The su rv ey from w hich t h e s e grad es w ere e s t a b lis h e d i s known a s th e
r e c o n n a issa n c e s o i l su r v e y .
S in c e t h i s i s ta k en a t two m ile in t e r v a l s ,
t jiera sa.ro some o b j e c t io n s t o i t a s a b a s is upon w hich t o e s t a b l i s h
v a lu a t io n s .
Qn a cou n ty -w id e b a s is i t would a v erage o u t and approxim ate
c l o s e l y a more d e t a il e d su r v e y .
However, when s o i l i s c l a s s i f i e d a cco rd in g
t o th e predom inating g ra d e, i t i s e n t i r e l y c o n c e iv a b le t h a t th e s o i l on any
g iv e n t r a c t e i g h t be b e t t e r o r p o orer than would be in d ic a t e d a t two m ile
in t e r v a ls .
FiHT IV .
IMPORTANCE CF STATE IANDS AS SOURCE OF REVENUE
T ab le I sheers th e annual c o n tr ib u tio n o f s t a t e la n d s t o th e common
s c h o o l fu n ds e x p r e sse d b o th a s a t o t a l sum and a s a p e r c e n ta g e o f t o t a l
s c h o o l rev e n u e.
(htfy 1 1 .8 p er c e n t o f th e fu n ds a c t u a ll y u sed t o conduct th e oom on
p u b lic s c h o o ls o f th e S t a t e i s d e r iv e d from a t o t a l o f o v er it ,5 0 0 ,0 0 0 a c r e s .
In I 9 I4O, th e r e tu r n s from b o th a g r ic u lt u r a l and g ra zin g la n d s amounted t o
an a v era g e o f
9.5
c e n ts p er a c r e .
For a method o f com putation s e e Saunderson, M. H ., Some m a te r ia ls
R e la tin g t o L iv e sto c k and Land V a lu a tio n , Mimeographed c i r c u l a r . Department
o f A g r ic u ltu r a l Econom ies, Montana A g r ic u ltu r a l Experiment S t a t io n .
-25-
TABLE I . - - IMPORTANCE 0 ? STATE LAUDS AS SOURCE OP REVENUE TO
CCBMOH SCHOOLS OP MONTAKA, 1951 - 19*40 INCLUSIVE 3 2 /
Tear
Revenue
from
G eneral
Levy
Revenue
from
D is * t School
Levy
2 ,5 1 0 ,1 2 9
2.396,51*4
2,1*40,331
2 , IO*+, *05
2 ,0 8 3 ,8 6 7
2 , 10*4,702
2 ,1 1 0 ,1 5 3
2,1*41,170
2 .0 7 7 ,1 2 3
2 .0 5 6 .3 5 3
5 ,5 1 2 .0 3 0
*4,876,535
*4,6*45,165
*4.383,756
*4.1*48,715
3.8*45,527
*4,281,113
*4,1*4*4,758
*4.130,338
3,9*40,205
TOTAL 2 1 ,8 2 6 ,8 2 7
*43.908,1*42
1931
1932
193*4
1935
1936
1937
1938
1939
19*40
Revenue
~ T o ta l
from
Revenue
S ta te
Common
App11 .
S ch o o ls
( S t a t e la n d s) ( A ll s o u r c e s )
1 ,0 8 6 ,6 5 5
83*4,759
7 0 6 ,9 2 7
791,02*4
993.*428
1 ,0 0 5 ,2 7 5
838,206
8 0 5 ,0 0 3
8 8 3 ,9 2 9
86*4,*4l7
8 ,6 0 9 ,6 2 3
^er t e n t
from
S ta te
Lands
9,208,81*4
8 ,1 0 7 ,8 0 8
7,*492 ,*423
7 ,2 7 9 .2 6 5
7 .2 2 6 ,0 1 0
6,955.50*4
7 ,2 2 9 ,i|72
7 , 090,951
7 , 091,390
6 ,8 6 2 ,9 7 5
1 1 .8
1 0 .3
9.*4
1 0 .9
1 3 .7
1*4.5
1 1.6
ll.* 4
1 2 .5
12 .6
7*4,5*4*4.592
11 .8
S ta tu s o f 19*40 L eases cm
Common Sch ool G rants
G racing a crea g e
G rasing r e n t a l
A g r ic u ltu r a l a crea g e
A g r ic u ltu r a l r e n t a l
Crop-s hare a crea g e
C rop-share r e n t a l
TOTAL
3 , 1614, 616.11 a c r e s
$ 1 7 1 ,7 0 1 .2 7
2 7 ,2 9 6 .7 6 a c r e s
17,16*4.25
335,6*43*51 a c r e s
3 ,5 2 /,5 5 0 » 3 8 a c r e s
1*47.098.00 3 3 /
$ 3 3 > ,^ 5 » 5 2
R en ta l p er a c r e .
Land le a s e d . . .
The q u e s tio n n a t u r a lly a r i s e s n s to w hether t h is may b e co n sid ered an
3 2 / Source — B ie n n ia l R ep o rts, S t a t e Board o f E quaT isationyT SleriniaT
R eporEs, Departm ent o f S t a t e Lands and In v e stm e n ts.
3 5 / P u b lic Sctioole sh a re o f c ro p -sh a re r e n t a l n o t shown s e p a r a t e ly .
P u b lic s c h o o ls had 9 6 . o f th e a c r e a g e , so were g iv e n c r e d i t f o r 9 8 .3 # o f
th e rev e n u e.
— 26»
ad eq u ate Income from t o e x t e n s iv e an a c r e a g e .
n e g a t iv e .
The anSvrer must be i n th e
A pproxim ately o n e -fo u r th o f th e la n d s a r e n o t under le a s e arwi
c o n se q u e n tly a r e r e tu r n in g n o th in g t o th e common s c h o o l.
As t o th e p oten ­
t i a l c o n tr ib u t io n , Kr. I . If, B randjord, Commissioner o f S t a t e Tjh-^ b &nd I sw
v estm en ts f o r many y e a r s , i s o f th e o p in io n l l i / t h a t r e tu r n s a r e f a r from
b e in g m axim ised.
PAKT V.
IttHAGSRIAL ASPECTS (F ADlflXISTRATlOS
Laok Of P o llo y
The S t a t e Land Department has b een c h a r a c te r is e d d u rin g m ost o f i t s
e x is t e n c e b y a la c k o f p o l i c y .
The la n d s were c l a s s i f i e d a s t o t h e i r b e s t
u s e i n th e l i g h t o f knowledge th e n e x i s t e n t , b u t a p p a ren tly no s e r io u s
th ou gh t was g iv e n a s t o w hich p a r t o f t h i s la n d , i f an y, sh ou ld be w ith h e ld
from p r iv a t e o w n ersh ip .
T h is q u e s tio n was n o t so th ou gh t provoking i n
"There can be no doubt t h a t t h i s v a s t e s t a t e would have produced a
fa r
ite r income i f i t had b een p r iv a t e l y owned and p r iv a t e l y managed __
and th ou san d s o f o i t i s e n s and numerous a g e n c ie s throughout th e S t a t e endeav­
or t o e x e r t a v e r y c o n s id e r a b le in f lu e n c e on th e a d m in is tr a tio n o f s t a t e
la n d s . As a lr e a d y e x p la in e d , th e r e i s a w id e spread m isu n derstan d in g pre­
v a le n t a s t o t h e purpose o f t h e s e g ra n ts and th e S t a t e ' s o b lig a t io n in t h e i r
a d m in is tr a tio n . The m isu n d erstan d in g t h a t t h i s i s common p ro p erty i s f a r
r ea c h in g and th e sen tim en t i s a lt o g e t h e r t o o p r e v a le n t t h a t th e sc h o o l
sh ou ld n o t b e n ig g a r d ly i n th e d is p o s i t io n o f t h i s common p r o p e r ty . The r e ­
s u l t i n g I n flu e n c e i s a s c o n s ta n t a s th e law o f g r a v it a t io n .
For t h e cannon good, I ap p eal t o t h e p u b lic s p ir it e d o i t i s e n s o f th e
s t a t e , t o th e s c h o o l b o a rd s, and t o a l l o f f i c e r s and a g e n c ie s o f th e govern­
ment o f th e s t a t e con cern in g t h i s sa cred t r u s t , t o c o o p era te in th e f u l l e s t
m easure toward I t s p rop er a d m in is tr a tio n so t h a t i t may c o n tr ib u te i t s rea­
so n a b le sh a re toward th e su p p ort o f th e common s c h o o ls o f th e s t a t e and
th e r e b y li g h t e n th e t a x burden r e s t in g upon th e p e o p le ." B ie n n ia l R eport,
Department o f S t a t e Lands and In v e stm e n ts, 1 9 5 6 .
-27-
e a r ly d ays b ecau se S t a t e land p o l i c i e s w ere la r g e ly based on th e b e l i e f
th a t a l l la n d s sh ou ld b e p la c e d i n p r iv a t e c o n tr o l a s soon a s p o s s ib le *
A t th e p r e s e n t tim e th e r e i s a p r e t t y g e n e r a l r e a l i s a t i o n t h a t th e S t a t e
w i l l c o n tin u e t o a d m in iste r much o f th e la n d t h a t i t now owns*
D uring th e e n t i r e h is t o r y o f s t a t e land management, th e r e has n ev er
been a c o n s is t e n t p o lic y in regard t o s e l l i n g o r le a s in g *
The b ie n n ia l r e ­
p o r ts o f th e s e v e r a l R e g is te r s and Ccm m lssloners a re co n tin u o u s arguments
o f th e m e r its o f le a s in g v e r s u s s e l l i n g and s e l l i n g v e r su s le a s in g * 5 ^ /
3 5 / I n 1892I R egarding le a s in g * "T his has proved t o be a most e x c e l l e n t
p ro v iss lo n and our endeavor o f l a t e has been t o le a s e r a th e r th an s e l l la n d s* ”
• • • G r a n v ille S t u a r t .
In 1900 1 "In a l l my p r e v io u s r e p o r ts I have urged t h a t a l l sch o o l and
u n iv e r s it y la n d s be withdrawn from s a l e . . . ” . . . H. D. Moore.
In 190 2 i "There i s no d i f f i c u l t y i n s e l l i n g o r le a s i n g a g r ic u lt u r a l
la n d . I fa v o r th e p o lic y o f s e l l i n g . A man who in v e s t s # 1 0 .0 0 or more p er
a c r e in a p ie c e o f lan d w hich w i l l produce a l i v i n g f o r h im s e lf and fa m ily
i s u n q u estio n a b ly more I n t e r e s t e d i n th e fu tu r e o f th e s t a t e th an a f i v e y e a r r e n te r ."
1918s "Based upon an a v era g e s a l e p r ic e o f #1$ or more p er a c r e , th e
le a s e d la n d s a r e ea rn in g l e s s than
o f t h e i r v a lu e a s lo n g a s le a s e d , b u t
jump t o 5^ income ea r n in g v a lu e lnm nediately th e y a re s o l d . ”
1932i "The p ro ceed s from th e s a l e o f th e s e la n d s w i l l b r in g a f a r
b e t t e r income t o th e s c h o o ls o f th e s t a t e th a n r e n t a ls from l e a s e s , and
when p la ced i n p r iv a t e ow nership th e la n d s w i l l be Improved and d evelop ed
and th e r e b y c o n tr ib u te t o th e u p -b u ild in g o f th e com m unities i n w hich th e y
a r e lo c a te d ."
. . . I . M. B randjord.
19U0J " S a le s a r e n o t b e in g h e ld o n ly t o r e c t i f y some s it u a t io n s t h a t
cou ld n o t o th e r w ise be j u s t l y ta k en ca re o f , o r f o r home b u ild in g purposes
mmd t o s t a b i l i s e sound econom ic farm ing a n d ‘l i v e s t o c k growing u n it s ."
. . . N an ita B. S h erlo ck
1 9 L ll " I t i s n o t th e in t e n t io n o f th e S t a t e Land O f f ic e nor th e S t a t e
Board o f Land C oroalesioners t o recommend th e w h o le s a le o r in d is c r im in a te
s a l e o f S t a t e Lands." •. .• .• J . We 1V alker.
-2 8 -
Tho at&tement o f Mr. J . W. Walker ( s e e f o o t n o t e 5 5 J 1 9 l|l) was nade i n
resp o n se t o p r e s s r e p o r ts t h a t t h e p o lic y o f th e p r e se n t a d m in is tr a tio n
would be t o s e l l a l l o f th e s t a t e la n d s a t th e e a r l i e s t p o s s i b l e moment i n
ord er t o g e t t h e s e la n d s on th e t a x r o l l s .
Kr. Walker d id n o t in d ic a t e t h a t
no la n d s would b e s o ld , n e it h e r d id he in d ic a t e t h a t la n d s would be s o ld
in d is c r im in a t e ly .
Th* f a i l u r e t o ad op t a sound p o lic y f o r th e management o f s t a t e la n d s
i s n o t e n t i r e l y th e f a u l t o f th e S t a t e Board o f Land C om aissioaer s .
It
m a t be r e c o g n ise d t h a t th e y a re su b je c te d t o c o n sta n t p r e ssu r e by th o se
who ad v o ca te s a l e 2 A / on th e one hand, and on th e o t h e r , by th o s e who w ere
bo
g r e a t ly d is tu r b e d 2 2 / by r e p o r ts t h a t a p o lic y o f s e l l i n g s t a t e la n d s had
b een ad op ted .
A p p ra isa l P r a c t ic e s
The law s p e c i f i e s t h a t " in a l l a p p r a is a ls h e r e a f t e r made, th e r e s h a l l
be one and o n ly one k in d o f v a lu e p la c e d <m each t r a c t o f la n d a t th e same
tim e , and t h i s v a lu e s h a l l b e u sed a s th e b a s is b oth f o r th e r e n t a l and
s a l e o f su ch la n d , s u b j e c t t o a l l c o n s t it u t io n a l l i m it a t io n s ." 38 /
S e c t io n 1 8 0 5 .2 5 , R ev ised Codes o f Montana, 1935, p r o v id e s th a t " th e
3 4 / "That S t a t e la n d s b e a d m in istered t o produce a s much revenue a s
p o s s i b l e and t h a t t o a cco m p lish t h i s p u rp o se, th e p o lic y o f p r ic in g
f o r s a l e be su ch a s t o f a c i l i t a t e t h e i r p u rchase and keep them on th e ta x
r o lls ."
B eeotm endatlons o f G overn or's Committee on R eo rg a n isa tio n and Economy, tr a n s ­
m itte d t o Governor Ford, O ctober I*, I 9 J4I ,
3 7 / The Montana Stookgrow er, December 1 5 , I 9 I4I , Front p a g e.
3 0 / R oriaed Codes o f Montana, 1935, C hapter 160, S e e . I 8O5 . I 7 .
-2>
wi ni MUin annual r e n t a l f o r a g r ic u lt u r a l purposes s h a l l be f i v e p er c e n t p er
annual o f th e a p p ra ised v a l u a t i o n . . . " . 5 2 /
I t i s assumed t h a t a g r ic u lt u r a l
lan d w i l l r e tu r n f i v e p er c e n t on t h e a p p ra ised v a lu e .
I f land i s va lu ed
a t # 1 0 .0 0 p er s o r e , i t s h a l l r etu rn 50 o e n te p er s o r e r e n t .
I t fu r th e r
s p e c i f i e s t h a t C la ss I , e x t r a good g r a sin g la n d , s h a ll be g iv e n a le a s in g
a p p r a is a l o f #35 t o $50 p er s e c t i o n .
Talcing t h e h ig h e r v a lu e f o r conven­
ie n c e , i t w i l l be se e n from th e form ula
▼ = JL.
r
w here v e
a =
r z
th a t
•05
z
c a p it a l iz e d v a lu e
annual r e n t a l o f land
r a te o f in t e r e s t
# 1 , 0 0 0 .0 0 p er s e c t io n a s th e s a l e s v a lu a t io n .
An exam in a tio n o f th e reco rd s o f th e Department o f S t a t e Lands and
In vestm en ts r e v e a ls t h a t , alm ost w ith o u t e x c e p t io n , each t r a c t o f land has
two v a lu e s in d ic a t e d — one a r e n t a l a p p r a is a l and th e o th e r a s a l e s ap­
p r a is a l.
The n a tu r a l a ssu m p tio n , th e n , i n v ie w o f t h e w ording o f th e law ,
i s t h a t th e r e would be th e same r e la t io n s h ip o f ap p ro x im a tely f i v e p er
ce n t.
However, i t i s found t h a t no su ch r e la t io n s h ip e x i s t s .
Examples have
b een found where th e s a l e s a p p r a is a l o f one t r a c t i s th r e e tim e s th e o th e r
and y e t th e r e n t a l v a lu e was th e same.
A nother exam ple, where th e s a l e s
v a lu e o f one t r a c t was 15 tim e s th e o th e r and th e r e n t a l v a lu e was th e same.
3 9 / I b id . S e c t io n 1805*25
-30-
A nother where one e e o t io n v a lu ed a t $ 1 3 .0 0 p er a c r e ren ted f o r # 5 0 .0 0 and
n o t f a r from I t i n th e same co u n ty , a s e c t io n v a lu ed a t # 1 .0 0 per a cre
r en ted f o r SZ4O.OO f o r th e s e c t i o n .
The d isc r e p a n c y i s e x p la in e d i n t h i s way by e x e c u t iv e s o f th e S t a t e
Land D epartm ent.
A t r a c t w hich may be s u it a b le f o r fa rm in g , c a r r y in g a v a l­
u a tio n o f >15.00 p er a c r e sh o u ld le a s e f o r 75 c e n t s p er a cre a s a g r ic u lt u r a l
la n d , b u t b eca u se th e r e was no demand f o r t h a t land f o r t h a t purpose a t th e
tim e , i t was g iv e n a le a s e a p p r a is a l o f #!40.00 f o r th e s e c t i o n .
N a tu r a lly ,
i t i s u n reaso n a b le t o e x p e c t t h a t a l e s s e e u s in g th e la n d o n ly f o r g r a sin g
co u ld a ffo r d t o pay an a g r ic u lt u r a l r e n t a l .
I t i s lik e w is e u n reason ab le
t o e x p e c t th a t th e lan d would l i e i d l e i f n o t le a s e d a t i t s maximum r e n t a l
v a lu e f o r " i t i s t h e d u ty o f th e board t o s o a d m in iste r t h i s t r u s t a s t o
se c u r e th e l a r g e s t measure o f le g it im a t e and r ea so n a b le advantage t o th e
S t a t e ."
I t seem s t h a t such an e x p la n a tio n oan o n ly be v a li d i n th e c a se o f
le n d s w hich have a l t e r n a t i v e u s e s su ch a s g r a s in g and f a m in g and n o t when
th e lan d can be u sed o n ly f o r g r a c in g .
(L eg a l a s p e c ts n o t c o n s id e r e d ).
C erta in le n d s m ight be graded a s a g r ic u lt u r a l la n d s b u t b eca u se th e y were
n o t farmed d u rin g t h e b a se y e a r s o f th e A g r ic u ltu r a l Adjustm ent Adminietra*t i o n cannot now be r e s to r e d t o p ro d u ctio n w ith o u t payment o f p e n a lty .
Such
la n d s m ight have s p e c u la t iv e v a lu e and th e h ig h e r s a le v a lu e be j u s t i f i e d 1
how ever, on lan d t h a t i s c la s s e d a s g r a s in g and has no o th e r u s e , th e r e oan
be no j u s t i f i c a t i o n f o r more th a n one v a lu e .
Prom t h a t a p p r a is a l v a lu e b o th
s a l e and r e n t a l v a lu e s must b e d eterm in ed .
In a stu d y o f 8I4 t r a c t s i n Chouteau County, i t was found t h a t th e r a t i o
-31-
o f r e n t a l -values t o s a l e v a lu e s ranged from a low o f .2 8 p er c e n t t o a h ig h
o f 3*33 Pe r c e n t w ith an a v era g e p er c e n t f o r th e l o t o f I .I 4I .
A f a i r con­
c lu s io n I s th a t la n d s a re e i t h e r v a lu ed to o h ig h f o r s a l e o r to o low f o r
r e n t a l.
The L e g is la tu r e Heduoec R en ta ls
F o llo w in g th e f in a n c ia l c r a sh In 1929, econom ic c o n d itio n s con tin u ed t o
grow w o rse.
Farmers and l i v e s t o c k men a l i k e were on th e b rin k o f d i s a s t e r .
L ater i n 19 3 2 , d e le g a tio n s o f stockm en p e t it io n e d th e S t a t e Board o f Land
C om m issioners In an e f f o r t t o have r e n t a ls on s t a t e la n d s reduced approxim ate­
l y o n e -h a lf f o r th e p e r io d o f t h e d e p r e s s io n .
The board was p o w erless t o
a c t , a s i t was o b lig a te d t o le a s e s t a t e la n d s f o r a minimum o f n o t l e s s th an
f i v e p er c e n t o f th e a p p ra ised v a lu e o f th e la n d s . A S /
Of c o u r s e , th e board
had th e power t o r e a p p r a ise th e la n d s , b u t n e it h e r tim e n o r money was
a v a il a b l e .
Furtherm ore, on th e b a s is o f t h e c o s t o f u se o f g r a sin g la n d ,
th e r e was no J u s t i f i c a t i o n M / f o r th e S t a t e Board o f Land Com m issioners t o
assume th e r e s p o n s i b i l i t y f o r th e s c h o o l c h ild r e n o f t h e s t a t e and reduce
r e n t a ls a s lo n g a s th o s e r e n t a ls were re a so n a b le when compared t o o th er r e n t­
a l s on l i k e la n d s s l a i l a r l l y s i t u a t e d .
Upon r e f u s a l o f t h e Board t o make t h e
r e q u e ste d r e d u c tio n s , th e m a tter was p la c e d b e fo r e th e 1933 l e g i s l a t u r e In
what was regarded a t th e tim e a s an em ergency m easure.
A c t u a lly , t h i s mea­
su r e d id n o t ca rr y em ergency d e s ig n a tio n and i s s t i l l in e f f e c t .
Uq / R ev ised Codes o f Montana 1921, S e c t io n 1833.
I l l / B ie n n ia l Report o f C oseiieaion er o f S t a t e Lands and In v a stsie n ts,
1932, Page luO.
•32-
Beduotlcma o f 50 p er c e n t were made o f a l l a p p r a is a ls th e n on r e c o r d .
The s u p p o s itio n was t h a t a s e c t io n fo rm erly le a s in g f o r $ 8 0 .0 0 would now
le a s e f o r SliO.OO.
A c t u a lly , however, and th e r e a re many rec o rd s t o sub­
s t a n t i a t e t h i s p o in t , many $ 8 0 .0 0 s e c t io n s had been a r b i t r a r i l y changed t o
♦ 5 0 .0 0 s e c t io n s w ith o u t s a n c tio n o r c o n se n t o f t h e b o a rd .
Then when th e
new v a lu e s w ere e s t a b lis h e d , th e r e n t a l became 50 p er c e n t o f th e $ 5 0 .0 0
and n o t o f th e $ 8 0 .0 0 a s in te n d e d .
I n s te a d o f a r e d u c tio n o f 50 p er c e n t ,
many s e c t io n s w ere reduced ap p ro x im a tely 70 p er c e n t .
The q u e s tio n a r is e s *
How can t h e s e v a lu e s w hich have b een a u th o r is­
ed by th e S t a t e Board o f Land Com m issioners be s o e a s i l y changed?
answer i s s im p le .
The
The ca rd s ( s e e p h otograp h ic r e p r o d u c tio n . Appendix I I I )
a r e th e o f f i c i a l o f f i c e reco rd o f ea ch t r a c t o f la n d .
They c o n ta in lo c a ­
t i o n , l e g a l d e s c r ip t io n , a reco rd o f a l l l e a s e s on each t r a c t , le a s e number,
term s o f l e a s e and a p l a t on w hich i s marked th e a p p r a is a l f o r s a l e or
le a s e .
A l l permanent in fo r m a tio n i s w r it t e n i n in k w ith th e e x c e p tio n o f
th e a p p r a is a ls .
I t i s , t h e r e f o r e , e a s y f o r anyone h a n d lin g th e ca rd , t o
change th e p e n c ile d n o t a t io n o f a p p r a is a l.
Uniform E x p ir a tio n D ate For L eases
A f t e r c o n s id e r a b le c o n fu sio n caused by havin g l e a s e s e x p ir e a t a l l
tim es o f th e y e a r , th e p r a c t ic e was adopted and l a t e r l e g a l i s e d ) £ / o f
h avin g a l l l e a s e s e x p ir e a s o f February 2 8 ,
The law r e a d s ,
" th a t r e n t a l . . . s h a l l become due and p a y a b le t o th e
Commissioner . . . on Deowabor 15 n e x t p ro ceed in g th e
l g / B ie n n ia l R eport, Commissioner o f S t a t e Lands and In v estm e n ts. 19 2 6 .
p . 1|0.
33-
r e n t a l y e a r t o w hich th e r e n t a l a p p lie s , and i f n o t
p a id on o r b e fo r e February I , n e x t f o llo w in g , t h i s
nonpayment s h a l l have th e e f f e c t o f c a n c e llin g th e
I w s e from and a f t e r February 2 8 o f t h a t y e a r . The
ooinmlss io n e r s h a l l n o t i f y t h e l e s s e e by l e t t e r ad­
d r e s s e d t o th e p o s t o f f i c e a d d ress g iv e n i n th e
l e a s e , o f such c a n c e l la t io n , and t h e la n d s h a l l th en
b e open f o r l e a s e t o o th e r a p p lic a n t s ." Hay
The in t e r p r e t a t io n h ere i s t h a t i t i s mandatory on t h e p a rt o f th e
com m issioner t o n o t i f y th e d e lin q u e n t l e s s e e t h a t h i s le a s e has b een can­
c e lle d ,
A f a i r assu m p tion i s t h a t th e la n d may be regarded a s b e in g under
c o n tr o l o f th e d e lin q u e n t l e s s e e u n t i l s o n o t i f i e d .
Ho attem p t i s made by
th e Commissioner o f S t a t e Lands and I n v e s to e n ts t o le a s e t h e la n d b e fo r e
t h a t tim e and i t i s no doubt regarded by th e d e lin q u e n t l e s s e e a s h is
p o s s e s s io n u n t i l he i s fo r m a lly n o t i f i e d o f th e c a n c e lla t io n o f h is l e a s e .
The S ta te Land Department o f North Dakota M i / d id some in v e s t ig a t i n g o f
c o n s e r v a tio n payments and found t h a t a lm o st w ith o u t e x c e p tio n t h a t such
d e lin q u e n t l e s s e e s had th e m se lv e s l i s t e d a s o w n er-op erator and w ere c o l­
l e c t i n g b e n e f i t payments from th e la n d .
A s im ila r stu d y i n Montana m ight
rev e a l a lik e s itu a tio n .
A freq u en cy d i s t r ib u t io n o f th e tim e req u ired i n th e p a s t t o e f f e c t a
c a n c e lla t io n i s shown in T able I I and g r a p h ic a lly i l l u s t r a t e d i n F ig u re 2 .
A lm ost 9 8 p e r c e n t o f th e l e a s e s were c a n c e lle d a f t e r Msy I when two
m onth's d e lin q u e n t, ami 80 p er c e n t w ere c a n c e lle d a f t e r June I when th r e e
m on th's d e lin q u e n t.
T his means t h a t o f a t o t a l o f 872 l e a s e s , 052 o f them ,
1+3/ R evised Codes o f Montana.
U L j/
22.
Chapter 1 6 0 , S e c t io n 1 0 0 5 .2 6 .
R eport o f Commissioner o f S ch o o l Lands, North D akota, 191+0, page
TABLS I I . - MONTHS Oi DELINQUENCY DF STATE LAND LEASES BEFORE CANCELLATION
BY HUMBER AHD PEH CENT, IH FIVE COUNTIES, MONTANA, 1 9 )1 -1 9 ^ 0 INCLUSIVE
Number o f L essee
Months" :"
'«
I
,,
V
t
I
Per Cent o f L essee
it
I
I
t
I ""' t..
D elin q u en t iC h eu tesm C u eteriP erg u s ! P h i l l i p s iV s lle y iT o t s l i «Choutesu jC u ste r »Fergus i P h il l i p s i V s l l e y i T otal
______________ !___________ *_________I_________s___________ I_________I
I
6
I
0
2
2
2
I
I
}
7
73
8
I#
27
3
39
U
W
87
12
52
13
23
10
5
3
7
IU
2
2
3
U
Ul
10
3
3
7
17U
IOU
296
2
U
5
6
7
8
9
10 snd
o v er
T e t s ls
I
23
U
199
99
33
13
I
I i ___________ i
5
IU
6
3.0
.5
6
180
155
317
109
156
3.5
36.7
UeO
2U.6
U9
22
13.6
0.5
11.6
2.0
28
16
072
100
i
i
t
0
•96
1.15
2.0 1.15
.96
3.0 50.0 50.0
39.5 6.9 12.50
U.0 19.0 22.0
9.6
U3.5 7.5
5.0 U.0
0
3.0 8.0
.98
0
1.15 0
0
1.15 3.0
100
IOO
100
I
1.7
.5
2.0
60.8
13.8
13.8
3.8
.5
1.0
2.1
1.6
0.7
17.8
36.U
12.5
17.9
5.6
2.5
3.2
1.8
100 100
Number o f
C a n celled L ea ses
-3 5 I
350
F ig u re 2 . —Number o f C a n celled S ta te'L a n d L ea ses b:'
Months o f D elin q u en cy, F iv e Montana C o u n tie s,
1931-19^ 0, I n c lu s iv e
-3 6 -
Months o f
D elin q u en cy
Over 10
Per Cent o f C a n celled
L eases
F ig u re 7 . --P e r Cent o f C a n celled S ta te Land L ea ses by
Months o f D elin q u en cy, F iv e Montana C o u n ties,
1931-19^ 0, I n c lu s iv e
-37-
o r 97»7 per c e n t, were c a n c e lle d so l a t e th a t I t was im p o ssib le t o obtain
th e f u l l r e n ta l -value fo r th a t year i f le a se d a t a l l .
I f la n d s a r e a v a ila b le f o r le a s e i n March o r A p r il, th e y can be le a s e d
f o r 100 p er c e n t o f th e y e a r 's r e n t a l .
I f n o t a v a il a b l e u n t i l May,
o n ly 90 p er c e n t o f th e y e a r ’ s r e n t a l may b e c o l l e c t e d , i n June o n ly 80 p er
c e n t, e t c .
C on seq u en tly , th e S t a t e l o s e s a t an in c r e a s in g r a te a s th o
y e a r a d v a n ces.
Furtherm ore, t h i s stu d y r e v e a ls t h a t la n d s n o t le a s e d be­
f o r e th e b eg in n in g o f s p r in g o p e r a tio n s on th e farm o r ranch have s l i g h t ,
i f any ch a n ce, o f b e in g le a s e d f o r t h a t s e a s o n .
P o l i t i o s P la y A P art
P o l i t i e s have p la y ed a l l to o la r g e a p a r t i n th e a d m in is tr a tio n o f th e
S t a t e Land O f f ic e i n th e p a s t .
The o f f i c e r o u tin e r e q u ir e s s k i l l and
e x p e r ie n c e on th e p a r t o f th e p erso n n el and t h e s e w orkers can be e f f i c i e n t ­
l y r e p la c e d o n ly a f t e r a c o n s id e r a b le p e r io d o f t r a in i n g .
Composed la r g e ly
o f women, th e o f f i c e s t a f f d o es n o t o f f e r t h e same inducem ent t o p o l i t i c a l
m aneuvering a s d o es th e f i e l d d ep artm ent.
I t i s th e f i e l d d ep artm ent, th e n , t h a t f e e l s th e im pact o f p o l i t i c a l
e x p e d ie n c y .
Fieldm en i n t h e p a s t have n o t been engaged b eca u se o f t h e ir
q u a l i f i c a t i o n s o r t r a in in g f o r th e p o s i t i o n , b u t b ecau se o f t h e i r p a st p o l­
i t i c a l r e c o r d s . JjT/
b d / R evised Codes o f Montana , 1935* Chapter 160, S e c t io n 1 8 0 5 .2 5 .
I|6 / S ee f o o t n o t e . Im portance o f S ch o o l Lands, Page 25 o f t h i s t h e s i s .
l g / F i e ld S t a f f
"A", 7 y e a r s on s t a f f , p r e v io u s ly s to r e -k e e p e r o f l i f e lo n g e x p e r ie n c e .
S o i l i e r e c o g n ise d by th e S t a t e Land Department ae an im portant e l e ­
ment i n a p p r a is a l M / y e t men w ith no knowledge o f s o i l s a r e en gaged.
They
a r e r e q u ir e d , i n many in s t a n c e s , t o go m ile s from any h a b it a t io n t o l o c a t e
and a p p r a is e i s o l a t e d t r a c t s and y e t have o n ly lim it e d knowledge o f su rvey­
in g o r land l o c a t i o n .
When land so lo c a te d i s compared t o s o i l su rv ey maps
i n w hich th e crew i s o r ie n te d by f o llo w in g a co n tin u o u s l i n e , th e r e a re
o f t e n s e r io u s doubts a s t o w hether o r n o t th e lan d was a c t u a ll y view ed by
th e a p p r a is e r s .
A knowledge o f methods o f range su rv ey i s e s s e n t i a l in
e s t a b lis h in g th e d e n s it y o f th e fo r a g e l S / and y e t men a re engaged who have
V , 7 y ea rs on s t a f f , former County Commissioner and S ta te Senator.
"C", Former speaker o f th e House, Former liq u o r vendor. Deputy in o f­
f i c e f o r a period p revious t o 8 yea rs a g o . On s t a f f s in c e J u ly , 191*1.
*D", On s t a f f s in c e May, 191*1•
"E", On s t a f f s in c e May 19U l.
about 20 y ea rs ago.
P rev io u sly r e a l e s t a t e b u sin e s s .
Farmer, S erved i n Land O f f ic e as deputy
In fo rm a tio n a s r e s u l t o f in te r v ie w w ith H. C. B la r in g , C h ie f F ie ld A gen t,
W " S o il i s th e ou tstan d in g determ ining fa c to r f o r c l a s s i f i c a t i o n and
v a lu a tio n o f lan d . Too o fte n in th e p a s t, a l e v e l s u r fa c e , w ithout co n sid er­
a tio n o f s o i l v a lu e , has been produ ctive o f erroneous c l a s s i f i c a t i o n and
a p p ra isa l" . . . . H . C. B la r in g , C hief F ie ld A gent, I 9 I4I , In s tr u c tio n s t o F ie ld
1*9/ C la ss I . Extra good grazing la n d , t h i r t y - f i v e d o lla r s (835*00) t o
F i f t y ^ 8 5 0 .0 0 ) d o lla r s .
( 830. 00).
C la ss 2 . Good grazin g la u d , w e ll sodded w ith g r a ss , t h ir t y d o lla r s ,
C la ss 3* F a ir grazing lan d , w ith medium g r a ss, tw enty f i v e d o lla r s ,
( 825 . 0 0 ) .
C la s s I*. Poor g ra zin g la n d , t h i n l y g r a s s e d , tw en ty d o l l a r s .
( 8 2 0 .0 0 ) .
-59-
no knowledge o f t h e p r in c i p l e s in v o lv ed #
Bat o n ly a r e th e f i e l d nan n o t t r a in e d and q u a l i f i e d , but th e y ca rry
on t h e i r work, a p p a ren tly ig n o ra n t o f th e f a c t t h a t th e same in fo rm a tio n
t h a t th e y o b ta in i n th e f i e l d i s a v a il a b l e i n more a c c u r a te form a t l e s s
exp en se from e x i s t i n g record s#
R e c l a s s i f i c a t i o n o f S t a t e Lands
A r e c l a s s i f i c a t i o n and r e a p p r a is a l o f a l l s t a t e la n d s was undertaken
i n 1956#
fie d .
P rev io u s t o June 3 0 , I 9I4O, 1 ,5 5 2 ,9 6 3 * 5 6 a c r e s had been r e c l a s s i ­
A t th e p r e s e n t r a t e , i t i s e stim a te d t h a t t e n y e a r s w i l l be re q u ir ­
ed t o com p lete th e work. 2 2 /
I t m ight w e ll b e asked i f th e r e s u l t s w i l l
J u s t i f y th e tim e and ex p en se r e q u ir e d .
A ch eck o f t h e s e r e o l a s s i f i o a t i o n rec o rd s r e v e a l t h a t t h i s work done
a t so g r e a t a c o s t in tim e and money shows l i t t l e more than p r e se n t u se o f
th e la n d .
The number o f a c r e s o f c r o p , th e a cre a g e ly in g f a ll o w , acrea g e
i n p a s tu r e , h ay, e t c . a re a l l shown on a n i c e l y c o lo r e d map.
i s a record o f p r e s e n t land u s e a s a permanent record ?
Of what v a lu e
(Appendix IV)
The
maps th a t were made l a s t y e a r w i l l p rob ab ly b e ou t o f d a te t h i s y e a r ; th o s e
made I n 1936 m ost c e r t a in ly w i l l b e ,
A reco rd o f p r e se n t u se i s n o t s i g n i ­
f i c a n t a s a permanent record#
C la s s 5# Any o th e r g ra zin g la n d , su ch amount a s may be f ix e d by
th e b o a rd .
. . . R ev ised Codes o f Montana, 1 9 5 6 , Chapter 1 6 0 , S e c tio n
1 8 0 5 .2 5 .
5 0 / I n te r v ie w - H. C. B ie r in g , C h ie f F ie ld A gent.
I
PAST V I.
PIMAJICIAL ASPECTS OP ADMINISTRATION
Onutlng Lmd Leaaea
When p r o v is io n was Made f o r the le a s in g o f s t a t e la n d s, th e law pro­
vided th a t land s "way be le a se d fo r a term n o t exceeding f i v e years a t a
r e n ta l t o be determined by th e S ta te Board o f Land Commissioners." £ l / Thus
th e Board was perm itted to use d is c r e tio n In determ ining r e n t a ls .
However,
th e 1899 s e s s io n o f th e L e g is la t iv e Assembly amended th e law so th a t "the
minimum ( r e n ta l) s h a ll be n o t l e s s than f i v e per oent per annum o f th e
appraised v a lu e o f s a id lands#" £ § /
The term o f a l l le a s e s remained a t a maximum o f f i v e y ea rs u n t il Con­
g r e ss saw f i t t o p ass an amendment t o th e Enabling Aot 5 5 / which extended
th e tim e t o 10 y e a r s .
T his amendment was concurred In by th e Montana Leg­
i s l a t i v e Assembly In 1939»
The liv e s t o c k b u sin e ss i s n o t a year t o year
p r e p o s itio n and i t was f e l t th a t th e lo n g er tenu re would perm it th e sto c k ­
man t o p lan h is o p eration s over a lon ger p eriod o f tim e and carry out many
co n serv a tio n measures considered lm p raotioal under a sh o r te r c o n tr a c t.
The lo n g er term has met w ith u n iv e r s a l app roval.
The b e n e fit s t o th e
S ta te are m a n ifest In Increased w ater developm ent, fe n c in g and conservation#
The d eterm ination o f r e n ta ls on th e b a s is o f f i v e per oen t o f th e ap­
p r a is a l remained in e f f e c t u n t il 1933•
U n til th a t tim e, th e lam had read
th a t th e minimum could n o t be l e s s than f i v e per cen t o f th e appraised
3 l / S e s s io n Lams o f Montana, 18 9 1 , S t a t e la n d s . S e c t io n 6 #
j>2/ I b id . 1899. House B i l l Mo. 11*5, S e c t io n 3^79
5 3 / Enacted June 2 5 , 1938* Approved by L e g is la t u r e 1939*
tr I im
o f th e la n d .
The 1933 l*w p rovid ed t h a t " th e mxiraun annual grafting
r e n t a l f o r s t a t e land e h a ll n o t ex ce ed $50*00 p er s e c t io n e x c e p t where th e
le a s i n g p r ic e i s in c r e a se d above t h i s sum b y c o m p e titiv e b id d in g ."
Where th e r e had p r e v io u s ly been a f l o o r under th e r e n t a ls , th e r e was now a
c e i l i n g a b o v e.
The R e s u lts o f th e 1933 H e v islo n o f R en ta ls
The S t a t e
T able I I I shows a sunnary o f d a ta ta k e n from fo u r b ie n n ia l r e p o r ts
p r e v io u s t o , and fo u r f o llo w in g , th e r e d u c tio n i n r e n t a l s .
The p er c e n t
o f a c r e a g e under le a s e in c r e a se d from 57 t o T l p er c e n t , o r an in c r e a s e o f
1 4 p er c e n t , b u t i n a c co m p lish in g t h i s in c r e a s e in th e a cre a g e le a s e d , th e
a v era g e r e n t a l r a t e dropped from an a v era g e o f 1 2 .4 c e n t s t o an average o f
7*1 c e n t s , o r a drop o f 4 2 .7 P*1* c e n t .
The income a c t u a ll y r e c e iv e d dropped
from an avera g e o f $ 326 , 706 .5 4 t o $251 *5 5 8 .2 0 or a l o s s o f 23 p er c e n t in
average rev e n u e.
F iv e C ou n ties
Ths r e d u c tio n i n r e n t a ls su cceed ed i n b r in g in g a d d it io n a l acrea g e under
! • * * • * s w i l l be seen i n f ig u r e 5 » b u t i t d id n o t in c r e a s e t h e revenue c o l ­
le c t e d t o any a p p r e c ia b le e x t e n t .
The grafting acrea g e le a s e d on which r e ­
venue was n o t c o l l e c t e d ( f ig u r e 7 ) shows r a th e r a p r e c ip it o u s d e c lin e f o r
th e y e a r s 1 9 3 3 -3 6 , b u t i n 1937 reached a p o in t even h ig h e r th a n th e year
1932.
F ig u re 6 shows th e r e was c o n s id e r a b le d e c lin e i n a crea g e n o t le a s e d
f o llo w in g th e r e d u c tio n o f r e n t a l s .
5 4 / B e v issd Codes o f Montana, 19 3 5 , C hapter 1 6 0 , S e e . 1 8 0 5 .2 5 .
TABLE I I I . - COMPARISON OP HgHXALS POH A PBHIOD OF BIOOT YBAHS PHiCKEDIHO AND EIOHT
YKAHS FOLLOWINO LEGISLATIVE REDUCTIONS OF GRAZING FBSS IN 1933, MONTANA STATE LANDS V
Year
6/>0/£6
6A0A?
6AoAo
6/30/32
T o ta l Aoree
A ores
Per Cent
o f S ta te
Aeree
R en ta ls
S ta te Land________Land Leased______ Leased_________Eftmod
Average
R en ta ls
Rate
A c tu a lly
o f R ental
C o lle c te d ____ Per Aore
U,663,567.93
U,692,183.19
U,573.910.15
U,682,14*1.09
2,212.805.96
2.671,261.07
2.875,017.59
2,763,057.20
T o ta l
18.612,108.15
20,552,H>1.82
A verage
U.653.027.00
2.638,803.50
57
356.063.96
326.708.53
12.U
6A0AU
6A0A6
6/30/38
6y30/U0
U.857.968.78
U.962,163.6I
U.9U0.971.31
5.11U.92U.90
3.306.7U1.U9
3,690,260.06
3.300.831.U9
3.808.U57.80
68
TU
67
7U
l69.2U9.Uo
198,373.73
207.210.U7
355.126.16
176,002.68
290.252.U2
18U.351.30
355,126.16
5.3
7.9
5.6
9.3
T o ta l
19.876,020.60
1U,106,290.8U
A verage
U,969,007.00
3,526,572.00
UB
57
63
59
$ 352.092.75
379.5U7.U8
396,760.70
295.85U.90
326.U09.36
371.680.71
397,652.IU
2ll.083.9U
1U.5
13.9
13.8
7.6
1.U2U.255.83 1.306.85U.15
929.959.76 1,006,232.56
Tl
232.U89.9U
251,558.20
7.1
f / Souroei B ie n n ia l R eport#, Department o f S t a t e Landa and In v estm en ts, 1926-UO, I n c lu s iv e .
— -
F igu re
U- — P ro p o rtio n
o f S ta te G razing Acreage Leased from which
Revenue was C o lle c te d as Compared to Acreage Leased
from which no Revenue was C o lle c te d and A creage n o t
L eased. F iv e c o u n t ie s , 1931-^ 0, in c l u s i v e .
Ac r e s
reage
D o lla r s
enue CD lle c t
F ig u r e
5 . — S t a t e G r a z in g A c r e a g e L e a s e d an d T o t a l R e v e n u e
C o l l e c t e d fro m L e a s e s , F i v e M o n ta n a C o u n t i e s ,
1931“ 1 9 ^ 0 , I n c l u s i v e
-
45
-
-
Acreag? not Leased
D o lla r s
vR^venue L o st Through F a ilu r e to Lease
F i g u r e 6 . — S t a t e G r a z in g A c r e a g e n o t L e a s e d an d R e v e n u e
L o s t T h r o u g h F a i l u r e t o L e a s e , F i v e M on tan a
C o u n t i e s , 1 9 3 4 - I S llOf I n c l u s i v e
A cres
8 0 ,0 0 0
7 0 ,0 0 0
60,000
50,000
^ 0,000
50,000
2 0 ,0 0 0
1 0 ,0 0 0
D o lla r s
15,000
1 0 ,0 0 0
5,000
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
F i g u r e 7 . — S t a t e G r a z in g A c r e a g e L e a s e d o n W h ich R ev en u e
Was n o t C o l l e c t e d , F i v e M o n ta n a C o u n t i e s ,
1 9 3 1 -1 9 4 0 , I n c lu s iv e
T h is t e n y e a r stu d y o f f i v e c o u n tie s shows (T ab le IV ) t h a t o n ly 59*QU
p e r c e n t o f th e g ra z in g a cre a g e produced any rev e n u e.
An a d d it io n a l 5 , 6
p e r c e n t was le a s e d b u t no revenue was c o lle c t e d * and 35*36 p e r c e n t o f
th e g r a s ln g a cr e a g e was n o t le a s e d .
T h is i s g r a p h ic a lly i l l u s t r a t e d f o r
each y e a r o f th e stu d y In f ig u r e I*,
I t w i l l be s e e n t h a t th e e x t e n t o f
th e a cre a g e le a s e d and n o t c o l l e c t e d i n 1937 under th e reduced r e n t a ls was
s l i g h t l y g r e a t e r th an th e same c l a s s i f i c a t i o n i n 1932 under th e h ig h er
r e n ta ls .
T able V d e a lin g w ith t h e m onetary v a lu e s in v o lv e d , shows t h a t a t o t a l
o f 1211,919*V* was l o s t d u rin g th e te n - y e a r p erio d th rough f a i l u r e t o
l e a s e and through f a i l u r e t o c o l l e c t from la n d s t h a t were le a s e d .
Column
I* o f th e same t a b le shows t h a t an a v era g e o f #3601.^ 2 p e r y e a r was l o s t
th rou gh f a i l u r e t o c o l l e c t .
T h is i s an a v erage o f more th an s i x p er c e n t
o f th e p o s s ib le ea r n in g s o f th e g ra z in g la n d s i n t h e s e f i v e c o u n t ie s .
A d d itio n o f t h e #3601.1*2 n o t c o l l e c t e d and th e #17#590*52 p o t e n t ia l
r e n t a ls l o s t th rough f a i l u r e t o l e a s e r e v e a ls t h a t an a v era g e annual
revenue o f $21 , 191*94 o r an average o f 38*02 p er c e n t o f th e p o t e n t ia l
revenu e was l o s t i n t h e s e f i v e c o u n t ie s .
A d d itio n o f th e 47# 001.78 s o r e s
le a s e d , b u t from w hich no revenue was c o l l e c t e d , and th e 294 #401*81 a c r e s
t h a t w ere n o t le a s e d , chows t h a t an annual a v era g e o f 34 l # 403*59 s o r e s o r
4 0 .9 6 p er o e n t o f th e g r a s ln g la n d s o f t h e s e f i v e c o u n t ie s produced no
revenu e w h a te v er.
When 4 l p er o e n t o f th e s t a t e la n d s i n t h e s e c o u n tie s produce no
reven u e and, a cco r d in g t o Table I I I , 29 p er o e n t o f th e a cre a g e o f th e
e n t i r e S t a t e I s n o t le a s e d , i t i s tim e t o lo o k f o r th e c a u s e .
The l o s s i n
TABLE I V .- LEASING AND RENTAL STATUS OP STATE ORAZUW LANDS,
IN PER CENT. FIVE MONTANA COUNTIES 1931-19^0 INCLUSIVE * /
Lnnde Leased And
R e n ta ls C o lle c te d
Tear
Per Cant*
of
S ta te
Lands
1 1Ssr don't
1
of
1 P o t e n t ia l
1 Revenue
Lands Leased and R en tals
Not C o lle c te d
#
1
I
1
1
Per Oent
of
S ta te
Lands
1
I
1
t
P er Cent
of
P o t e n t ia l
Revenue
Lands Not Leased and
R en ta ls L ost
1
1 Per Cent o f
1 S t a te Lands
1
Not
1 Leased
1 P er d en t Of
1 P o t e n t ia l
1
Revenue
1
1931
1932
!46.50
3 9 .2 9
!48.95
!41.0U
8 .1 9
9 .7 3
9 .86
10.147
45.31
50.98
4 1 .1 9
4 8 .4 9
1933
1934
5U.23
65.25
5 5 .8 0
68.52
3 .0 9
1 .3 8
4«80
1.60
4 2 .6 8
3 3 .3 7
3 9 .4 0
29.88
1935
1936
6 8 .2 9
68.56
68.62
71.95
2.29
U.13
6.43
4 .1 3
2 9 .4 2
2 7 .3 1
24.95
2 3.92
1937
1938
60.12
5 3 .2 6
63.28
5 9 .5 6
9 .3 1
9 ,1 2
10.23
8 .3 5
3 0 .0 7
3 7 .6 2
26.49
32.09
1939
19L0
6 I4.76
70.1U
6 7 .4 3
714.66
2 .8 7
5 .4 1
2.86
4 .0 7
its
29.71
21.27
A verage
59.0!*
6 1 .9 3
5.60
6 .2 0
3 5 .3 6
3 1 .7 4
a / S o a ro ei
Primary Data from th e Records o f th e Department o f S ta te T*nd.
T -« .ff4-— ,4. ~
TABLE V. LEASIN'} AND RENTAL STATUS OF STATE GRAZING LANDS
FIVE MONTANA COUNTIES, 1931 - 19^0 INCLUSIVE
TMr
1
t
Lands Leased And
t
R en ta ls C o lle c te d
«
1
1
1 A creage
1 R en ta ls
1 Leased
1 C o lle c te d
1
1 ( D o lla r s )
1
t
1
t
I
1
«
t
1
(Lands Not Leased and R en ta ls
1L ost Through F a ilu r e t o Lease
t
R en ta ls
S
I
Not
1 A creage
t
R en ta ls
C o lle c te d 1
Not
1
L ost
( D o lla r s ) 1
Leased
« ( D o lla r s )
Lands Leased but
R en ta ls Not C o lle c te d
A creage
Leased
1
1
1
1
1931
1932
1933
193U
391,528.11
328,976.56
Ui9.W0.35
5U8,782.U0
U2.305.0U
3U.079.8U
2U.272.12
29,857.68
68,9e7.U8
81.UU5.50
23.913.72
11.5U6.63
8.521.33
8.695.15
2.083.U3
699.15
1935
1936
568,253.08
572.3UU.6l
1937
1938
516.533.57
UU5.609.75
5U2.656.97
596.16U.37
31.5U6.09
30,965.32
27,907.80
26,539.08
19,033.50
3U.U73.95
8U.265.68
76,287.10
28,372.03
33.823.90
U.930.289.77
U93.028.98
1939
W
T o ta ls
A verage
381,557.22
U26.731.16
2,955.83
1.779.UU
U.513.05
3.719.88
330.077.8U
280.68U.6U
2UU.8U9.81
227.932.81
35.59U.0U
Uo.275.35
17.135.50
13.022.55
11.U68.20
10.293.U7
258,369.65
31U.7U6.81
11.681.75
1U.295.9U
2U.069.31
U5.99U.91
1,205.02
1.8U1.93
271.26U.75
207.753.38
12.U99.71
9.638.72
309,668.90
U70.017.78
36.0lU.21
2.9UU.018.07
175.905.23
30,966.89
U7.001.78
3.601.U2
29U.U01.81
17.590.52
• J P rtiw ry d a ta from reco rd s o f th e Department o f S t a t e Lands and In v estm en ts.
50-
r e n t a ls from lan d under le a s e can be accou n ted f o r b y f a i l u r e t o prom ptly
c a n c e l a l l d e lin q u e n t l e a s e s .
P o s s ib le c o r r e c t iv e m easures w i l l be con­
s id e r e d under C hapter V I I I .
I f i t I s assumed t h a t when Iam l I s n o t le a s e d i t i s n o t u s e d , th en
i t sh o u ld b e p o s s i b l e t o f in d s e v e r a l y e a r ' s growth o f v e g e t a t io n on a
la r g e p o r tio n o f t h e 29 p e r c e n t o f u n lea sed la n d .
h o ld tr u e i n a c t u a l p r a c t ic e .
However, t h i s d o e s n 't
The man who c o n t r o ls a le a s e f o r a term o f
y e a r s w i l l p rob ab ly p r o t e c t h ie In v estm en t by em ploying c o n s e r v a tio n mea­
su res.
Nb s c w ith th e u n lea sed t r a c t , w hich g e n e r a lly becomes t h e g r a sln g
commons f o r th e neighborhood l i v e s t o c k , e e o e e l a l l y i f i t rem ains u n lea sed
f o r more th an a y e a r o r s o .
C on seq u en tly, th e land from w hich th e S t a t e
r e c e iv e s th e l e a s t revenu e i s g e n e r a lly s u b je c te d t o th e m ost a b u se .
S t a t e , a t one t im e , had a t r e s p a s s la w .
I t was r e p e a le d , in a d v e r te n t­
l y o r o th e r w is e , d u rin g t h e 1927 l e g i s l a t i v e s e s s i o n .
fa u lts .
The
Perhaps i t had some
Perhaps a s t r in g e n t t r e s p a s s law i s n o t t h e s o lu t io n t o th e pro­
blem o f xm leased la n d s .
An e f f e c t i v e f i e l d f o r c e , s t a t io n e d J u d ic io u s ly
th rou gh ou t th e S t a t e ca n , no d o u b t, be a f a c t o r In b r in g in g more a creage
under le a s e ; b u t a t r e s p a s s law a s an a id i n a cco m p lish in g t h i s r e s u l t i s
w orth y o f s e r io u s c o n s id e r a t io n .
R eason ab len ess o f Iuoane
A com p o site graph o f th e p r o d u c t iv it y o f t h e f i v e c o u n tie s I e r a th e r
m e a n in g le ss .
C o n seq u en tly , s e p a r a te gra p h s, f ig u r e s 8 t o 12 i n c l u s i v e ,
a r e p r e se n te d f o r ea ch co u n ty , show ing th e p r o d u c t iv it y v a lu a t io n a s
5 5 / R evised Codes o f Montana. 19 2 1 .
C hapter l l # . S e c tio n I 90 I4.
-jjl-
C ents
P er A cre
35
Co s t o f Owning G ra z i ng Lan A
30
25
20
15
10
Pro d u c t iv i t y
V
N
\
\
^
—— — -
5
....
R en t a.1 R at 3 of St a t e L and s
1931
1932
1933
19314.
1935
1936
1937
1938
1939
19140
F i g u r e 8 . — C o s t o f R e n t a l o f S t a t e G r a z in g L a n d s i n
C h o u te a u C o u n ty , M o n ta n a , a s C om pared t o
P r o d u c t i v i t y and C o s t o f O w n in g,
1 9 3 1 -1 9 W , in c lu s iv e
-5 2 -
Genti p er Acre
in g G razing Land
P r o d u c tiv ity
R en tal o f S ta te Lands
F i g u r e 9 » - - C o s t o f R e n t a l o f S t a t e G r a z in g L a n d s i n
C u s t e r C o u n ty ,
M o n ta n a , a s C om pared t o P r o d u c t i v i t y a n d C o s t o f O w ning
1931- 19^ 0 , i n c l u s i v e
-5 3 -
C ents p e r A cre
30.
C o st o f Owning G razin g Land
P ro d u c tiv ity
R e n ta l o f S t a t e Lands
1931
'3 2
F i g u r e 1 0 . — C o s t o f R e n t a l o f S t a t e G r a z in g L an d s i n F e r g u s C o u n ty ,
M o n ta n a , a s C om pared t o P r o d u c t i v i t y a n d C o s t o f O w ning
193 I - 19U0 i n c l u s i v e
-5 k -
Cents per acre
C ost o f Owning Land
r -------- 4---------- 1-----------------
P r o d u c tiv ity
R en tal o f S ta te Lands
F i g u r e 1 1 , — C o s t o f R e n t a l o f S t a t e G r a z in g L a n d s i n P h i l l i p s C o u n ty ,
M o n ta n a , a s C om pared t o P r o d u c t i v i t y an d C o s t o f O ivning
1931-1940 i n c l u s i v e
-5 5 -
Cents p er acre
C ost o f Owning G razing Land
P r o d u c tiv ity
R en tal o f S ta te Lands
-----------------i----------------- 1------------------------------------ 1_______ ____ i______ _
1951
'52
'3 3
'3U
'3 5
'3 6
i___________ i___________ ____________
'3 7
'3 8
'5 9
'W
F i g u r e 1 2 . — C o s t o f R e n t a l o f S t a t e G r a z in g L an d s i n V a l l e y C o u n ty ,
M o n ta n a , a s C om pared t o P r o d u c t i v i t y an d C o s t o f O w ning
193 I - 1 9 4 0 i n c l u s i v e
-56 -
ooepared t o c o s t o f owning
and th e a v era g e r e n t a l a c t u a ll y p a id .
In
g e n e r a l, th e r e has been a te n d en cy , e x c e p t i n th e c a s e o f Fergus County,
t o b r in g th e c o s t o f ow nership downward toward th e l i n e o f p r o d u c t iv it y .
A stu d y o f t h e s e graphs w i l l show, w ith o u t e x c e p tio n , t h a t th e r e n t a l
o f g ra zin g la n d s i n 1931-52 was h ig h er th a n t h e i r p r o d u c t iv it y v a lu e , and
t h a t th e r e d u c tio n made by th e l e g i s l a t u r e brought them t o a l e v e l b elow
t h e i r p r o d u c t iv it y .
a c t u a ll y p a id .
The r e n t a l v a lu e s u sed i n th e graphs a r e th e r e n t a ls
The f a c t t h a t th e r e n t a l v a lu e may go up o r down i s n o t
due t o any b a s ic change i n r a t e , b u t r a th e r t o th e q u a lit y o f th e a crea g e
le a s e d .
During d i f f i c u l t t im e s , a s i n t h e r e c e s s io n o f 19 3 8 , th e r e i s a
ten d en cy t o l e t th e l e a s e s on th e l e s s d e s ir a b le lan d la p s e and t o h old t o
th o s e on th e more d e s ir a b le .
The a v era g e r a t e p er a c r e w i l l th u s be
h ig h e r , a s w i l l be se e n i n f ig u r e s 10 and 11 f o r Fergus and P h i l l i p s
c o u n tie s r e s p e c t i v e l y .
A g r icu ltu r a l L eases
Cash L eases
A ccord in g t o th e I 9 I4O b ie n n ia l re p o r t £ ] / l e s s th a n 3 0 ,0 0 0 a c r e s , or
8 .0 3 p er c e n t o f th e 3 7 1 .2 1 5 » 9 6 c o r e s o f a g r ic u lt u r a l la n d under le a s e in
th e e n t ir e S t a t e , was p ayin g a c a sh r e n t a l o f 6 I4. c e n t s p er a c r e .
The
3 6 / C ost o f owning i s determ ined b y adding th e a v era g e cou n ty ta x on
g r a s in g la n d s t o i n t e r e s t on th e in v e stm e n t, r ep re se n ted by th e a s s e s s e d
v a lu a t io n , computed a t f i v e p er c e n t . S o u ro ei B ie n n ia l H eporte, S ta te
Board o f E q u a lis a tio n , I 93 I - I 9 I4O i n c l u s i v e .
5 7 / B ie n n ia l, Com m issioner o f S t a t e Lands and In v e stm e n ts, I 9J4O, page
38.
57-
r e e e ln ln g 5Ul#l435»25 K orea, o r a p p roxim ately 92 p er c e n t w ere le a s e d on
a ero p -eh a re r e n t a l b a s is and retu rn ed t l l 49. 6 5 6 .2 7 t o th e S t a t e a s r e n t a l ,
an average o f I4J4. c e n t s p er a o r e .
Croy-Sharo Leases
Qader th e p r o v is io n s o f a program Inaugurated about 1937, a l l cro p sh are l e a s e s w ere req u ired t o sum m er-fallow 50 p er c e n t o f th e acreage
each y e a r .
Assuming th e n , t h a t o n e -h a lf o f th e a crea g e in d ic a te d
(3U.U35.25) produced
t h e e n t i r e c r o p -s h a r e , th e r e n t a l would be
p e r a c r e f o r th e la n d a c t u a ll y producing c r o p s .
88 c e n ts
As t h e a v era g e farm
p r ic e r e c e iv e d by Montana farm ers f o r th e d eca d e, 1931-Uo i n c l u s i v e , was
70 c e n t s , 5 5 / sim p le a r ith m e tic shows t h a t a g r ic u lt u r a l land b elo n g in g
t o th e S t a t e p a id an a v era g e r e n t a l o f one and o n e -fo u r th b u s h e ls o f
wheat p er a c r e f o r sussoer-fa llo w e d ground, on a S ta te -w id e a v e r a g e .
T able T l shows t h a t f o r th e p e r io d 1931-UO i n c l u s i v e , a lm o st 12U.OOO
a c r e s in th e f i v e c o u n t ie s s t u d ie d , produced no revenue w h a tev er.
an a v era g e o f 12,UOO a c r e s p er y e a r o f n on -produ cti va farm la n d .
T his i s
TIiis
m a te r ia l i s g r a p h ic a lly I l l u s t r a t e d i n f ig u r e 13 #
Qf a t o t a l o f a p p ro x im a tely 5 9 5 .0 0 0 a c r e s o f a g r ic u lt u r a l land from
w hich revenue was c o l l e c t e d , th e a v era g e r e tu r n p er ao re was 28 c e n t s .
A gain , assum ing t h a t $0 p er c e n t was sum m er-fallow ed, th e r e n t a ls would b e
tw ic e a s much, o r $6 c e n t s p er a c r e .
The a v era g e t e n y e a r p r ic e , 70 c e n t s
f o r w h eat, means t h a t th e a v erage farm r e n t a l f o r th e s e f i v e c o u n tie s was
5 Q / H alerow , Harold G ., S t a t i s t i c a l Summary o f P r i c e s . Montana S t a t e
C o lle g e , A g r ic u ltu r a l Experiment S t a t io n , June I 9I4I . MLmeographed C ir c u la r
33.
-58-
© ig h t-to a th s b u sh e l p er © ore.
The p r e v a ilin g r e n t a l r a t e o f s t a t e la n d s
o f o n e - f i f t h th e c r o p , would ln d lo a t e t h a t t h e average y i e l d was approxi­
m ately fo u r b u sh e ls p er a c r e I n th e c o u n tie s s t u d ie d .
I t w i l l be se e n
t h a t , on an a v e r a g e , o n ly 85 p e r c e n t o f t h e la n d s p a id any r e n t a l,
e i t h e r i n c ro p -sh a re o r c a s h .
TABLE V I. HBTUlfflS FHOM AGRICULTURAL LEASES OH STATE
LANDS, FIVE MONTANA COUNTIES, 1931-19*40 INCLUSIVE * /
T o ta l
Revenue
C o lle c t e d
( D o lla r s )
1933
1934
22,799.70
26,926.43
46,931.34
60,413.40
10,125.55
14.836.17
1935
1936
66,573.79
57,191.07
21,099.41
9,166,15
1937
1933
65.459.77
80,135.60
15.028.27
24,578.25
1939
1940
83.060.00
85.965.56
T o ta l
595.476.66
1931
1932
4.098.45
6,733.49
1 Revenue * A creage
*
* Per A cre « from w hich t
t ( D o lla r s ) 1 Revenue was t
S
I Hot C o lle c te d *
S
s
*
«
*
•
t A creage
Tear i from which
i Revenue was
s
C o lle c t e d
6,567.00
21,2*48.08
Per Cent
A creage
Y ie ld in g
Revenue
78
56
70
85
.25
.22
.25
•32
.16
6,819.54
21.085.39
32,951.5*4
31.028.13
.23
.31
•4o
.36
12,550.67
5.769.50
5,519.86
93
94
169.645.41
.28
123,860.55
83
20,362.85
10,987.56
12 , 950.10
91
73
83
86
% / S o u rce, Primary Data Secured from Records o f th e S t a t e Lard O f f ic e .
P r o v is io n was made f o r le a s in g a g r ic u lt u r a l lands*
"For a sh are o f th e crop s d e liv e r e d a t th e g r a in e l ­
e v a to r or m arket, w hich sh a re s h a l l n o t be l e s s th a n
what i s ooKcaonly p a id by l e s s e e s o f p r iv a t e ly owned
la n d s a s sh a re r e n t i n th e l o c a l i t y where th e s t a t e
la n d i s s it u a t e d ; and i n no c a s e s h a l l such sh a re
r e n t a l be l e s s th a n o n e - f i f t h ( 1 / 5 ) o f th e e n t i r e
crop r a i s e d , d e liv e r e d a t t h e e le v a t o r ." 5f t /
5 9 / R ev ised Codes o f Montana. 1935. C hapter l6 0 . S e c t io n 1 8 0 5 .3 0 .
-5 9 -
Non-revenue Producing Acreage
Revenue Producing Acreage
F igu re 1 3 .— Per Cent o f Revenue and Non-revenue Producing A creage o f
Farm Lends Under L ea se, F iv e Montana C o u n ties, 1931-40 in c lu s iv e
-
60-
Tha o n e - f i f t h sh are w hich was in ten d ed a s a
hm# oono t o be
a lm o st th e msximum r e n t a l u n le s s r a is e d by c o m p e titio n .
Should com peti­
t i v e b id d in g p r e v a i l, th e b id I s us ua l l y r a is e d by o f f e r in g a la r g e r sh a re
o f th e c r o p , such a s o n e -fo u r th , o n e - t h ir d , e t c .
S t a t e la n d O ffic e re c o r d s
r e v e a l some o a s e s where th e a p p r a is a l c a l l s f o r o n e -fo u r th sh are b u t,
i n g e n e r a l, th e p r e v a ilin g le a s e r a t e i s a t th e
p erm itte d by la w ,
Baoh s p r in g , a f t e r s e e d in g i s co m p leted , th e Cormlmsloner h as in ­
q u ir ie s m a iled o u t a s t o th e number o f a c r e s seed ed and a s t o how «p"h
w i l l be sum m er-fallow ed.
I n s p i t e o f i t s e f f o r t s t o m a in ta in a c o n sta n t
ch eek , many l e s s e e s c o n s i s t e n t l y re p o r t "Mo Crop", "Too Dry” , and "Taken
b y G rasshoppers."
I t i s im p o s s ib le , w ith th e f i e l d f o r c e , on a p a r t-
tim e b a s is and engaged p r im a r ily i n r e c l a s s i f i c a t i o n , t o make a p erso n a l
ch eck o f th e s i t u a t i o n .
A c c o r d in g ly , reco rd s r e v e a l t h a t many a g r ic u l­
t u r a l l e a s e s co n tin u e y e a r a f t e r y e a r w ith no r e tu r n s t o t h e S t a t e and,
sh ou ld an attem p t be made t o c h a lle n g e th e renew al o f a l e a s e , th e b id i s
sim p ly r a i s e d .
A p p a ren tly , i t I s j u s t a s e a s y t o a g ree t o pay o n e -fo u r th
o r even o n e -th ir d o f "Ho Crop", a s i t i s t o a g r e e t o pay o n e - f i f t h .
Judged on t h e b a s is o f p o t e n t ia l p r o d u c t iv it y , f ig u r e s ll* . 18 in c lu s ­
i v e , p r e s e n t scene p e r t in e n t in fo r m a tio n .
The l i n e o f " P r o d u c tiv ity * i s t h e
lo n g tim e avera g e y i e l d o f w heat computed a t a v a lu e o f 70 c e n ts p er
b u s h e l.
Chouteau County ( f ig u r e lU ) shows t h e h ig h e s t p r o d u c t iv it y ,
A t th e
1931-140 a v era g e farm p r ic e o f 70 c e n t s , i t would r e q u ir e l e s s th an one
and o n e -th ir d b u s h e ls o f wheat t o pay th e r e n t a l on a v era g e a g r ic u lt u r a l
la n d , b u t a g la n c e a t th e r e n t a l a c t u a ll y p a id show t h a t on th e average
— 6l—
on e-h alT b u sh e l s u f f ic e d *
Qf th e f i v e c o u n t ie s s t u d ie d , Chouteau i s th e
o n ly one where th e c o s t o f owning has been c o n s is t e n t ly b elow th e l e v e l
o f p r o d u c t iv it y .
T h is , a g a in ,s e r v e s t o s u b s t a n t ia t e t h e f in d in g s o f
Henna and Lord t h a t th e b e t t e r la n d s ten d t o be u n d er-valu ed f o r a s s e s s ­
ment purposes*
The p r o d u c t iv it y o f a v era g e farm la n d s i n C u ster County ( f ig u r e 1 5 )
* h ie h b elo n g t o th e S t a t e shows t h a t th e y a r e cap ab le o f s u s t a in in g an
a v era g e r e n t a l ch arge o f a l i t t l e more th a n 51 c e n ts p er a c r e .
The c o s t
o f ow nership h a s shown a d e c l in e d u rin g th e p erio d o f t h i s stu d y and i s
now b elo w p r o d u c t iv it y w h ile r e n t a ls o f s t a t e le n d have c o n s is t e n t ly
shown l i t t l e r e tu r n t o th e S t a t e .
F ergus County r e n t a ls ( f ig u r e 16) have b een v ery e r r a t i c and o n ly
once have reached a r e tu r n w hich sh ou ld b e s u s ta in e d under av era g e con d i­
tio n s .
Taxes have been h ig h and th e c o s t o f ow nership h a s c o n s is t e n t ly
b een h ig h e r th an th e lan d w i l l s u s t a i n .
P h i l l i p s County ( f ig u r e 1 7 ) has averaged l i t t l e more th a n 20 o e n ts
r e n t a l on a g r ic u lt u r a l la n d s b e lo n g in g t o t h e s t a t e w h ile t h e l i n e o f pro­
d u c t i v i t y i s i n e x c e s s o f 60 c e n t s .
The c o s t o f ow nership s t a r t e d above
p r o d u c tiv ity b u t has dropped u n t i l a t th e p r e se n t tim e , th e av era g e farm
la n d s o f P h i l l i p s County a r e w e ll below t h e charge w hich th e y a re cap ab le
o f s u s t a in in g .
B s ntals of A g r i c u l t u r a l land in V a l l e y C o u n t y (figure 18) have al s o
b e e n e r r a t i c a n d generally q u i t e low.
C o s t of o w n e r s h i p h a s t a k e n r a ther
p r o n o u n c e d d r o p s and is n o w p r e t t y r o l l i n line w i t h t h e p r o d u c t i v i t y o f t h e
land*
—62«»
C ents per acre
P r o d u c tiv ity
C ost o f Owning A g r ic u ltu r a l Land
R en tal o f S ta te Lands
F i g u r e l l i . — P r o d u c t i v i t y o f A g r i c u l t u r a l L a n d s i n C h o u te a u C o u n ty ,
M o n ta n a , a s C om pared t o C o s t o f O w ning a n d A v e r a g e R e n t a l R e tu r n s
1931- 19l |0 i n c l u s i v e
-6 $ -
Cents p er acre
C ost o f Owning A g r ic u ltu r a l Land
P r o d u c tiv ity
R en tal o f S ta te Lands
F i g u r e 1 5 » — P r o d u c t i v i t y o f A g r i c u l t u r a l L a n d s i n C u s t e r C o u n ty , M o n ta n a ,
a s C om pared t o C o s t o f O w ning an d A v e r a g e R e n t a l R e t u r n s ,
1931- 19^0 i n c l u s i v e
Cents
C ost o f Owning Land
P r o d u c tiv ity
/
\
R en tal o f S ta te Lands
F i g u r e 1 6 . - - P r o d u c t i v i t y o f A g r i c u l t u r a l L a n d s o f F e r g u s C o u n t y , M o n ta n a ,
a s C om pared t o C o s t o f O w ning a n d A v e r a g e R e n t a l R e t u r n s ,
1931- 19W i n c l u s i v e
F i g u r e 1 7 . — P r o d u c t i v i t y o f A g r i c u l t u r a l L e n d s i n P h i l l i p s C o u n ty ,
M o n ta n a , a s C om pared t o C o s t o f O w ning a n d A v e r a g e R e n t a l R e t u r n s
1931- 19^0 i n c l u s i v e
-6 6 -
Cents p er acre
C ost o f Owning Land
P r o d u c tiv ity
R en tal o f S ta te Lam
F ig u r e
1 8 . — P r o d u c t i v i t y o f A g r i c u l t u r a l L a n d s i n V a l l e y C o u n t y , M o n ta n a ,
a s C om pared t o C o s t o f O w n in g , a n d A v e r a g e R e n t a l R e t u r n s ,
1 9 3 1 -1 9 U 0 i n c l u s i v e
-6 7 -
I t I s n o t axpootod t h a t th e a v era g e r e n t a l w i l l e x a c t l y c o in c id e w it h
th e p r o d u c t iv it y o f th e land b u t o v er a g iv e n p erio d o f t im e , i t sh ould
approxim ate i t q u it e c l o s e l y .
The f a c t t h a t r e n t a ls have alw ays been
b elow p r o d u c t iv it y would in d ic a t e t h a t th e S t a t e d o es n o t g e t a g r e a t
enough d i f f e r e n t i a l r e n t betw een th e h ig h e r and low er grade la n d s .
I t is
a p p a ren t, i n th e m a jo r ity o f e a s e s , t h a t t h e l e s s e e o f t h ir d grade land
p ays j u s t a s h ig h a r a t e o f r e n t a l a s t h e l e s s e e o f f i r s t grade la n d ,
a lth o u g h i t has b een shown t h a t th e f i r s t grade land can produce an econ ­
omic r e n t o f $ 1 .8 0 p er a c r e w h ile th e t h ir d grade produces o n ly 2 i* c e n t s .
S a le Of Grant Lands
As p r e v io u s ly in d ic a t e d , p r o v is io n was made f o r th e s a l e o f any or
a l l s t a t e la n d s .
Some s a l e s have been made f o r ca sh a t th e tim e o f th e
t r a n s a c t io n , b u t th e u su a l p r a c t ic e has been made t o a c c e p t t e n p er c e n t
a t th e tim e o f s a l e , and su bseq u en t t o February I ) , 1923 t o make a con­
t r a c t on th e a m o r tis a tio n p la n e x te n d in g o v er a p e r io d o f t h ir t y - t h r e e
y e a r s and b e a r in g i n t e r e s t a t th e r a t e o f f i v e p er ca n t p er annum.
Con­
t r a c t s on town and o i t y l o t s , how ever, a r e w r it t e n f o r a maximum o f
tw en ty y e a r s .
U n t il June 3 0 , 1<&0 more th an one and o n e - h a lf m i l l i o n a c r e s ^ 2 / had
been s o ld f o r a t o t a l o f more th a n $25 , 000 , 00 0 .0 0 a t an a v era g e p r ic e o f
* 1 5 .5 7 p e r a c r e .
When th e 72nd C ongress reduced th e minimum p r ic e o f
g ra z in g la n d s from $ 1 0 .0 0 t o $5*00 p er a c r e , i t was e x p e c te d t h a t s a l e s
would in c r e a s e g r e a t l y .
However, w it h t h e econom ic c o n d itio n s e x i s t i n g
6 0 / 1 ,6 2 9 ,3 7 0 .8 2 a c r e s .
T o ta l p r ic e $ 2 5 ,0 L 7 ,W * ) 7 .
.6 0 .
* t th e tim e and w ith th e $0 p er c e n t r e d u c tio n in e r a s in g f e e s , th e r e was
no I n c e n tiv e f o r anyone t o own th e la n d .
The g r e a te r p a r t o f th e s t a t e land t h a t has been s o ld was d isp o se d o f
d u rin g th e y e a r s p r e v io u s t o World War I when th e S t a t e was b ein g r a p id ly
s e t t l e d and when, a s has s in c e been r e a l i s e d , c o n d itio n s were abnorm ally
g eo d ,
Land was s o ld a t t h a t tim e f o r p r ic e s so h ig h t h a t i t was Im p o ssib le
f o r th e p u rch aser t o pay f o r i t .
W ith th e earning o f l e s s fa v o r a b le tim e s ,
c o n tr a c ts became d e lin q u e n t and many were v o lu n t a r ily r e lin q u is h e d .
Much
o f th e lan d had been plowed and abandoned le a v in g th e u s u a l m enaces, such
a s weeds and s o il- b lo w in g .
In an e f f o r t t o keep t h e p u rch a sers on th e la n d , term s have been
changed, o o n tr a o ts r e w r itte n and th e tim e o f th e c o n tr a c ts ex ten d ed . Am­
o r t is e d c o n tr a c ts e x te n d in g ov er a p e r io d o f 33 y e a r s have b een made and
p e n a lty i n t e r e s t has been r em itted A l / i n th e e x p e c ta tio n t h a t home owners
oo u ld be Induced t o c o n tin u e t h e i r o o n t r a o t s .
T ab le VII shows t h a t on a 10 y ea r a v e r a g e , a p p roxim ately $0 p er c e n t
o f th e payments ( s e e a ls o f ig u r e 1 9 ) due on C e r t if l o a t e s o f Purchase w ere
a c t u a ll y c o l l e c t e d .
Tlwre I s a p o s s i b i l i t y t h a t some sm a ll p a r t o f th e
$ 271 , 736 .3 6 t h a t became due and unpaid d u rin g th e p erio d 1931- W , in c lu s ­
i v e , may y e t be p a id , b u t th e p r o b a b ilit y o f g e t t in g any s u b s t a n t ia l p a rt
i s a lm o st n i l .
The extrem es t o w hich th e Department o f S ta te Lands and Investm ents
has gone i n an e f f o r t t o co o p era te w ith d e lin q u e n t p u rch a sers i s shown i n
6 l / S e s s io n Lews o f Montana, 1939* C hapter II4O.
-69-
TABLE V I I .- COLLBCTIOH STATUS OF HEVSiIUE EAHSSD USDSH CSHTIFICATtiS
OF PUaCHASB CONTRACTS, FIVE MONTANA COUNTIES, 1931-19UO. INCLUSIVE ■ /
I X oreage
i
Year i f ram w hich i
i Revenue was*
i C o lle o te d i
59.1i87.58
FiU,506.79
39,739.26
36,381;.06
37.a90.8U
36.799.U5
37.069.16
3U,738.99
31,139.27
28.6U7.90
1931
1932
1933
1934
1935
1936
1937
1938
1939
19U0
Revenue
C o lle c t e d
( D o lla r s )
59.995.75
29.U36.77
25.760.37
22,269.53
20.157.U0
35.U78.67
21,997.91
19,050.15
16.930.1U
17.03U.65
386,003.32 276.119.3U
T o ta l
& / Souroe *
ȣer CedsAorsage fr o m Revenue n ot*P er b en t
I of
I w hich Reve- t C o lle c t e d
1o f R eve!Revenue roue was n o t i (D o lla r * ) tnue n o t
i C o l•d . I C o lle o te d <
iC o lleo te*
5U
37
Uo
U3
52
58
52
56
69
Tl
72.916.69
7U.289.66
56,203.39
U3.llU.21
37.727.52
3L 028.87
27,799.88
18.559.9U
12,750.52
10,309.86
50,198.53
51,713.5a
38,222.01
29,273.82
26,275.89
26,189.92
20.26l.8U
15.168.3U
7.U79.I4U
6.953.03
%
60
57
Us
U2
UB
UU
31
29
U9.6
50.U 387.700.7U 271.736.56
IVtBmry d a ta #eour#d from O f f l* • 8t » t # Iande and I n w a t -
Bieate.
T%ble V III end I e g r s p h lo e lly l l l u e t r e t e d In f ig u r e 20 .
A lm ost
QU
p er
o e n t o f th e 313 c o n tr a c ts In th e o o u n tie e b e in g s tu d ie d itere d elin q u en t
f o r two y e a r s and about 33 p er o en t were d e lin q u e n t f o r f i v e y e a r s , b e fo r e
th e y were c a n c e lle d .
I t w i l l be se e n t h a t U2 c o n tr a c ts w ere d e lin q u e n t f o r
s i x y e a r s , 35 f o r sev en y e a r s , 17 f o r e ig h t y e a r s , fo u r f o r n in e y ea rs and
two f o r more th a n 10 y e a r s , b e fo r e b ein g c a n c e lle d .
The S t a t e r e c e iv e d no
r e tu r n from t h e s e la n d s d u rin g th e p e r io d o f th e d e lin q u en cy o f th e s e con­
tr a c ts •
A ooordlng t o th e 19^0 b ie n n ia l r e p o r t , 88lt*936 a c r e s , or approxi­
m a te ly o n e -h a lf o f th e t o t a l a crea g e s o ld , had been retu rn ed t o th e S t a t e .
I n th e l i g h t o f p e a t e x p e r ie n c e , i t i s now known t h a t much o f t h i s land
F igu re 1 9 .—Amount o f Payments Due and Payable Under C e r t if i c a t e s
o f P u rch ase, Showing S ta tu s o f C o lle c t io n s in Per Cent,
F iv e Montana C o u n tie s, 1931-19W , I n c lu s iv e
TEARS OP DELINQUENCY CF CERTIFICATES 0? PURCHASE ON STATE LANDS BEFORE CANCELLATION
PITS MONTANA COUNTIES, 19 )l-1 9 k O INCLUSIVE
TXBLB m i . -
Htimber o f C ontraote
,,
Per Cent o f C ontract*
*
«
i
*
*
•
si
s
I
I
7----------Year*
s
t
t
i
I
s
n
s
s
i
,
D elin q u en t I Chouteau s C uatersPergue I P h illip * sV a lle y s T o ta ls sChouteausC ueter sFergue s P h il lip * sV a lley
«
»_______ I_______ *_________ *_______ s
SS________ S
8
S
I
I
Ik
2
11
3
U
7
8
32
1<2
12
19
16
10
9
10
2
2
T otal*
160
5
6
4
9
3
9
U
6
15
9
3
I
I
I
I
I
U
59
3
7
2U
20
IU
7
10
I
U
86
65
67
8.8
6.9
20.0
26.1
K2
U
7.5
12.0
35
17
U
2
10.0
6.3
1.2
1.2
27
22
313
100
100
100
15.3 25.0
5.0 25.0
3.5
8.1
15.3
6.8 25.0
10.2
25.U 25.0
27.9
23.3
16.3
8.1
15.3
5.0
11.6
1.7
1.2
100
100
100
-7 2 -
Years
D elin q u en t
Per Cent o f C ontracts C a n celled
F igu re 2 0 . — Per Cent o f C e r t if i c a t e Purchase C on tracts on S ta te
Land C a n celled a f t e r Becoming D elin q u en t, by Years o f
D elinq u en cy, F iv e Montana C o u n ties,
1931-19U0, I n c lu s iv e
«73ahould n ev er have b een s o ld f o r a g r ic u lt u r a l purposes*
Abandoned farm s and
v a ca n t b u ild in g s sta n d a s mute e v id e n c e o f f r u i t l e s s a ttem p ts t o c u l t i v a t e
lan d w hich sh ou ld n ev er have b een plowed*
Bxoept i n o a s e s where e x t e n s iv e improvement had b een p u t upon th e
la n d , th e g r e a t e s t tr a g e d y was th e b la s t e d hopes o f th e p u rch aser and from
th e S t a t e ' s v ie w p o in t, th e r u in a tio n o f g ra cin g la n d .
P erson s n o t a cq u a in t­
ed w ith th e lo n g -term payment p la n m ight rea ch th e erro n eo u s c o n c lu sio n
th a t th e c a n c e lla t io n o f c o n tr a c ts on so much lan d would in v o lv e g rea t
l o s s e s t o th e p u r c h a se r s, b u t t h i s i s n o t n e c e s s a r il y th e c a s e .
Only
10 p er c e n t o f t h e purchase p r ic e was p a id a t tim e o f purchase and th e
annual payments w ere l i t t l e , i f any h e a v ie r , th a n ren t*
I f d e lin q u e n t con­
t r a c t s w ere c a n c e lle d w it h in a r e a so n a b le tim e , a s any p r iv a t e concern
w ould d o , n e it h e r buyer nor s e l l e r would have b een much w orse o f f f in a n c ia l­
ly ,
However, s in c e c o n t r a c t s have b een a llo w ed t o remain d e lin q u e n t s o
lo n g th e common s c h o o l fu n d s o f th e S t a t e a re th e p r in c ip a l l o s e r s .
A l l gran t la n d s a r e c a r r ie d on th e books a t a uniform v a lu e o f @10.00
p er s e r e .
Some attem p t has b een made t o j u s t i f y t h i s p r a c t ic e by p o in t in g
ou t t h a t s a l e s made t o th e p r e s e n t have ex ceed ed @15*00 p e r a c r e and t h a t
r e tu r n s from tim b er, m in e r a ls , o i l and gam w i l l h e lp t o m a in ta in an a v era g e
o f @10.00 p e r a c r e f o r th e rem aining la n d s .
I t must b e remembered t h a t th e _
b e t t e r lan d e n a t u r a lly s e l l f i r s t , t h a t t h e rem aining la n d s may be mountsI n our or rough, and t h a t e r a s in g la n d s may now be s o ld f o r @5*00 per a c r e .
In
v ie w o f th e s e f a c t s , i t i s v e r y d o u b tfu l i f a uniform v a lu a t io n o f @10.00
6 2 / B ie n n ia l R eport, C o n n iseio n er o f S t a t e Lande and In v estm e n ts, 193U,
pegs 2 7 .
p e r a c r e co u ld be su sta in e d #
S a le s V alue A ooording t o P r o d u c tiv ity
TABLE D U - COMPARISON OF RENTAL AND SALES VALUE OF ItDHTANA
STATE LANDS BASED OH PRODUCTIVITY OF LAND BT CRADES
Kind o f Land
*
i
i
A g r io u ltu r a l
Orade dumber
o f Land
t
i
i
I
2
3
I
e r a s in g
2
3
5
I
Value
1 .8 0
1 .0 6
•2k
•IB
•12
•09
•07
•ok
i
i
i
S a le s V alue
# 3 6 .0 0
2 1 .2 0
U .80
3 .6 0
2 .W
1 .8 0
l.ltf
§#
k
R ental
The s a l e s v a lu e s l a T able IX a re computed from r e n t a l v a lu e s on th e
b a s is o f f i v e p er c e n t ea rn in g power on th e Investm ent#
N a tu r a lly , th e
S t a t e no lo n g e r has any e x t e n s iv e a crea g e o f f i r s t grade f a m in g la n d , and
on a com p arative b a s i s , th e a crea g e o f second grade farm ing i s a ls o l i m i t ­
ed#
Thus, i t w i l l b e s e e n t h a t much o f th e rem aining a c r e a g e o f s t a t e la n d s
i s u n lik e l y t o b r in g th e minimum l e g a l p r i c e s .
Future Land S a le s
Lands retu rn ed t o p r iv a te ow nership sh o u ld be s o ld w it h th e e x p e c t a t io n
th a t r e s o u r c e d e p le t io n , t a x d elin q u e n c y , r e v e r s io n and r e s a l e w i l l n o t be
r e p e a te d .
P ressu re t o r e tu r n s t a t e la n d s t o p r iv a te ow nership may be g r e a t
i n a r e a s where lan d s u it a b le f o r occupancy i s lim it e d ; li k e w i s e p ressu r e t o
p r e v e n t th e s a l e o f s t a t e la n d s i n a r e a s where r e n t a ls a r e low may be
75-
e q u a lly g r e a t .
The s a l e o f i s o l a t e d t r a c t s f o r homo-making m ight w e ll re­
c e iv e th e a t t e n t io n o f a p o lic y making co m m ittee.
The S t a t e Board o f
C om m issioners sh o u ld be empowered t o deny a p p lic a t io n s f o r purchase i n any
a r e a where th e e x te n s io n o f road and p u b lic s c h o o l s e r v ic e s would e n t a i l
burdensome p u b lic e x p e n d itu r e s ,
Desiands f o r p u b lic s e r v ic e s f o r is o la t e d
farm stead s have become such a problem t h a t cou n ty a d m in is tr a to r s have ta k en
s t e p s t o c u r t a i l such demands
The u se o f r e s t r i c t i v e co v en a n ts i n con­
vey a n ces m ight be found r a th e r u s e f u l .
Thus a g r ic u lt u r a l la n d lo c a te d i n
a r e a s in a c c e s s i b l e a t c e r t a in sea so n s o f th e year m ight be s o ld w ith a s t i p ­
u la t io n p r o h ib it in g y e a r around occupancy o f th e land f o r fa m ily r e s id e n c e .
Cooper a tio n i n C o n serv a tio n
The S t a t e h as r e c e n t ly b een sa fe g u a r d in g i t s i n t e r e s t i n fu tu r e s a l e s
c o n tr a c ts by c l o s e c o o p e r a tio n w ith th e A g r io u ltu r a l A djustm ent A dm inistra­
t i o n sad County P lann ing C om m ittees.
Land t h a t has n o t p r e v io u s ly boon
c u l t i v a t e d , cannot b e brought under c u l t i v a t i o n by a p u rch aser u n t i l th e
purchase c o n tr a c t has been p a id i n f u l l , u n le s s p erm issio n i s g iv e n by one
o f t h e s e a g e n c ie s and an eq u a l amount o f i n f e r i o r lan d r e t i r e d .
T his
63 / W hereas, i n a number o f c o u n t ie s , th e S t a t e Land Board has s o ld
o r le a s e d la n d s w h ich , i n many o a s e s , has r e s u lt e d in r e q u ir in g p u b lic
s e r v ic e i n some com m unities beyond th e t a x in g power o f th e l o c a l ta x u n it
t o fu rn ish *
"Be i t r e s o lv e d t h a t me r e s p e c t f u ll y r e q u e s t th a t th e S t a t e Land Board
o f th e S t a t e o f Montana i n v e s t ig a t e a l l su ch a p p lic a t io n s f o r l e a s e s or
s a l e s and n ot make any l e a s e s o r s a l e s where th e a p p lic a n t has a p p a ren tly
i n s u f f i c i e n t fu n ds t o h e lp m a in ta in h im s e lf and f a m ily , and where th e le a s e
o r s a l e would n e c e s s a r ily r e s u l t i n g r e a t in c r e a s e in t a x req u irem en ts o f
th e l o c a l t a x u n i t .
A dopted, upon m otion d u ly made, seconded and c a r r ie d .
. . . . . . R e s o lu tio n 2 . T h i r t y - f i r s t Annual M eetin g, S t a t e A s s o c ia t io n o f
County Consiie s io n e r s , H avre, June 1 7 , 1 8 , 1 9 , 19&0.
-7 6 -
oon sorvatiion p r a c t ic e sh o u ld p rev en t th e s o il- b lo w in g and weed menace o f
abandoned crop lan d by p r e v e n tin g lan d t h a t i e xm euited f o r c u lt i v a t io n
from b e in g put under th e p low .
Mortgage Lands
In an endeavor t o se c u r e g r e a te r r e tu r n s from in v e stm e n ts o f sc h o o l
fu n d s , th e 1917 L e g i s l a t iv e Assem bly made p r o v is io n f o r I n v e s t in g p a rt o f
th e P u b lic S ch o o l Permanent Fund and o th e r e d u c a tio n a l, c h a r it a b le and
p e n a l i n s t i t u t i o n fu n d s o f th e S t a t e i n farm m o rtgagee.
More than fo u r and
o n e -h a lf m i l l i o n d o lla r s were In v e ste d under t h i s a o t and o v er fo u r m il­
l i o n d o lla r s
o f t h e s e in v estm en ts rem ain unpaid a lth o u g h no new lo a n s
have b een made e in o e December 2U, 192U.
M ontana's v en tu re i n th e farm lo a n
b u s in e s s has b een m ost u n fo r tu n a te .
6t j / Unpaid b a la n ce o f P r in c ip a l SU,0 ^ 2 ,5 0 6 .3 6 , June 3 0 , 19*40# B ie n n ia l
Sepo;rET Department o f S t a t e Lands and In v e stm e n ts.
6$ / " In exam ining our a b s t r a c t s i t d e v e lo p s t h a t th e S t a t e has made
lo a n s d o u b le th e amounts w hich had been made by p r iv a t e lo a n com panies. A
lo a n o f # 1,000 on a q u a rter s e c t io n Iiad b een tak en up b y th e s t a t e and a
lo a n o f $ 2 ,0 0 0 made i n l i e u . . . Recommendations f o r lo a n s w ere made by in ­
s p e c to r s who a p p a r e n tly had no knowledge e i t h e r o f land v a lu e s i or human
n a tu re o r o f moral r is k ."
B ie n n ia l Report o f th e R e g is te r o f S t a t e Lands, 1921-22
-77-
TABLB X .- CONDITION W MONTANA STATE PAffll LOANS
AND CONTRACTS AS OP JUNE JOf IQi4O « /
C la s s ific a tio n
I . - A m ortised lo a n s t o w hich
S t a t e d oes n o t have t i t l e .
INumber of*
* Loans *
*
*
A cres
*
«
*
Balance
Of Uapaid
P r in c ip a l
72
2 L 6 5 7 .4 5
2 y - O r ig in a l lo a n s t o w hich
S t a t e has t i t l e and la n d s
have n o t b een r e - s o ld .
639
2 1 5 .5 0 1 .3 4
1 , 368 , 9 3 2 .2 2
3 * - A m ortised lo a n s t o w hich
S t a t e h as t i t l e and th e
la n d s have n o t been r e ­
s o ld .
156
5 0 ,6 5 1 .6 3
3 1 1 .3 6 3 .4 3
U e- S a le s c o n t r a c t s i n f o r c e .
51U -
1 6 9 ,5 7 0 .0 9
9 9 6 .0 5 2 .0 5
$ • - S a le s c o n t r a c t s c a n c e lle d
and la n d n o t r e s o ld .
T o ta ls
I
1 0 9 ,8 1 9 .3 8
1
519
1 8 7 ,1 5 2 .6 4
1 .2 5 6 ,3 3 9 .2 0
1900
6 4 7 ,7 1 3 .3 5
» 4 . 0 l«2 , 5 0 6 .3 6
a / Souroes B ie n n ia l Report o f Deparbnent o f S t a t e Lands and I n v e s t ­
m en ts, IQi4O.
Ibsder th e p r o v is io n o f th e S t a t e c o n s t it u t io n £ £ / th e s c h o o l fund
" s h a ll fo r e v e r remain i n v i o l a t e , guaranteed by th e s t a t e a g a in s t l o s s or
d iv e r s io n " .
The 1QJ5 l e g i s l a t u r e , r e c o g n is in g th e o b lig a t io n o f th e S t a t e o f
Montana t o p r o t e c t th e P u b lic S ch ool Permanent Psrad a g a in s t l o s s or d iv e r ­
s io n , mode p r o v is io n f o r s e t t i n g up a fund t o be known a s th e S t a t e Farm
Loan S in k in g Fund.
The purpose o f t h i s fund was t o p ro v id e f o r th e repay­
ment o f th e e n t ir e in v estm en t i n farm lo a n s a s o f January I , 1935* th e
66 / S t a t e C o n s t it u t io n , A r t. X I, S e c t io n J .
-78-
t o t a l b ein g ♦ 3 * 2 5 0 ,6 2 5 .9 5 »
f o llo w s i
To aooom plleh t h i s end, th e fund o p e r a te s a s
" A ll moneys r e c e iv e d from farm lo a n s , from w h atever so u r c e , a re
c r e d it e d t o t h e S t a t e Farm Loan S in k in g Fund,
A q u a r te r ly t r a n s f e r I s th e n
made t o th e P u b lic S ch o o l Permanent Fund and th e P u b lic S ch o o l I n t e r e s t and
Income Fund, th e amount tr a n s fe r r e d t o th e t o t a l In v estm e n t.
What i s l e f t
i n th e s in k in g fund o v er and above th e amount o f th e i n t e r e s t th u s p aid i s
t r a n s fe r r e d t o th e P u b lic S ch o o l Permanent Fund", j d l /
Thus th e l e g a l m achinery was s e t up f o r reim bursing th e S t a t e Sch ool
Fund.
A l l m ortgage la n d s now b elo n g t o th e S t a t e , n o t t o t h e e d u c a tio n a l
I n s t i t u t i o n s o f th e S t a t e , and a s f a s t a s th e y a re s o ld , th e retu rn s f in d
t h e i r way in t o th e s c h o o l fu n d .
A lthough th e A tto rn ey -G en era l has r u le d
t h a t s a le can be made w ith o u t in c lu d in g accrued I n t e r e s t , much o f t h i s lan d
w i l l n ev er b e so ld f o r th e amount o f i t s p r e se n t d eb t e x c lu d in g i n t e r e s t .
T able XI shows th e s t a t u s o f la n d s a cq u ired under m ortgage fo r e c lo s u r e
or q u itc la im deed i n th e c o u n tie s s t u d ie d .
W hile th e s e lo a n s were o r i g i n a l -
I y made A r a p e r io d o f t e n y e a r s , th e law was ohsnged t o p erm it more l i b e r a l
fin a n c in g o v er a lo n g e r p erio d o f t im e .
I t w i l l be se e n t h a t o f th e $6W*,900
o r i g i n a l l y lo a n ed , o v er ♦ 5 6 0 ,0 0 0 o r 87 p er c e n t was r e f in a n c e d .
Optimiem
has alw ays been one o f th e a t t r ib u t e s o f Montana p eo p le and ev en though
many o f th e borrow ers o ou ld n o t make th e o r i g i n a l paym ents, th e y d id n o t
h e s i t a t e t o in c u r a g r e a te r o b lig a t io n i f g iv e n a lo n g e r p e r io d fo r repay­
m ent.
C on seq u en tly , Fergus County borrow ers r e fin a n c e d 108 p er cant
(T ab le X II) o f th e amount o f t h e i r o r i g in a l lo a n s .
The a v era g e amount
6 j / 19W B ie n n ia l R ep ort, Department o f S t a t e Lands and In v estm en ts,
page TE.
TABLE X I .-
FINANCIAL HISTORY OF STATE MORTGAGE LANDS, FIVE COUNTIES,
1931-19*40, INCLUSIVE
I
S Chouteau
I
Number o f Leans
T o ta l A cres
V$
I
SI
I
Lean p e r Aere
Amount when R efin an ced
Amount p er a c r e
Amount Paid on Loan
P re se n t Book Value o f
Loan
Per s e r e Book V alue
Ten Tear Revenue from
L eases
S ta te Land O f f ic e L ease
Appr 1S l .
P sr a cre a p p r a is a l
P r o d u c tiv ity R atin g
(Y ear)
Per Acre
Land O ffic e S a le s
A p p ra isa l
Per A ere
P r e d u o tiv ity S a le s
V alu e
Per Aore
1
1 C u ster
1
1
t
1
Fergus
1
1
1
P h illip s
U2
109
7U
31,063.27 i9.9i48.7U 1U.676.67 27.363.8U
20U.950.00 9U,600.00 119.050.00 136.U00.00
6.58
8.11
U.98
U.7U
181.279.U9 38.502.08 128.551.52 126.725.5U
8.76
5.83
1.93
U7.606.06 8.193.90 20,730.53 1U,019.59
193.875.71 90.76U.30 108.U81.28 13U.025.03
7.66
6.2U
U.5U
5-lU
27.5U8.8U 3.065.71 13.805.00 15,110.97
None
2,683.78
None
I,013.263/,
.068
.09iy
6,252.06
7.28U.35 1,663.32
6.277.83
.23U
.063
.UU
.23
None
None
2U8.178.5U
78.629.951^
8.11
9.2&y
lUU.281.Q0 30.2U2.18 125.0U1.00 125.556.00
8.52
1.52
U.6U
U.6U
1
1 T o ta ls
1
«
1 V a lle y
1
UB
lb.12U.21
89,900.00
5.58
88.U25.00
5.U8
20.U63.52
93,072.00
6.1U
10,269.50
323
109.196.73
6UU.900.00
563.U83.63
Hl.015.60
621,016.32
69.800.02
681.713/
.09uy
5.692.3U 27,169.92
.35
68,6Ul.ll3{
10.063/
113.8U6.80 538,966.98
7.06
a / Only on la n d s o u ts id e o f G rating D l s t r i o t s •
S ou roei Prim ary Data Secured From Commissioner o f S t a t e Leads and In v e stm e n ts,
D ata, S o i l S u rvey, and Farm Managonent S tu d ie s#
P r o d u o tiv ity
80.
r e fin a n c e d f o r th e f i r e c o u n tie s was 87 p er c e n t .
In th e a rea s tu d ie d ,
<mly I ? p er c e n t o f th e amount o f th e o r i g in a l lo a n s w ere r e p a id during
th e t e n y e a r s o f t h i s s tu d y .
C on sid era b le sums have b een p aid ou t by th e s t a t e in th e p a st fo r
d e lin q u e n t t a x e s , c o s t o f f o r e c lo s u r e s , e t c .
The "book v alu e" r e p r e se n ts
th e b a la n c e due on th e o r i g in a l lo a n p lu s su ch item s a s w ere n e c e ssa r y t o
p r o te c t th e S t a t e ' s i n t e r e s t .
T able XII shows th a t th e book v a lu e now
r e p r e s e n ts an a v erage o f 96 p er c e n t o f th e o r i g in a l lo a n s i n th e s e
c o u n t ie s .
TABLE X I I .
County
CONDITION OP MONTANA STATE FARM LOANS
IN PER CENT, I 9 I4O
1
Per Cent
*
of
!O r ig in a l Loan
1 R efinanoed
«
Per o e a t o f sPer ca n t R atio* Per d en i
1
O r ig in a l Loan iBook V alue t o * P r o d u c tiv ity
1R epaid, P r in . and !O r ig in a l Loan s Value b oars
1
In te r e st
1
i t o Bock Value
C uster
U1 .0
9 .0
9 6 .0
3 3 .0
Chouteau
8 8 .0
2 3 .0
9 5 .0
7 4 .0
109.0
1 7 .0
9 1 .0
115.0
P h illip s
9 3 .0
1 0 .0
9 9 .0
9 3 .0
V a lle y
9 8 .0
2 3 .0
104.0
122.0
A verage
8 7 .0
1 7 .0
9 6 .0
8 7 .0
Fergus
X
As a Land O f f le e a p p r a is a l o f m ortgage la n d s i n C u ster and P h i l l i p s
C ou n ties i s n o t a v a il a b l e , i t i s im p o s s ib le t o g e t a f i v e cou n ty v a lu e f o r
0oeipa r is e n w ith t h e a p p r a is a l e s t a b lis h e d through p r o d u c t iv it y .
However,
suoh v a lu e s a r e a v a ila b le f o r Chouteau (T a b le X I) and show an average
BI,
le a e ln g a p p r a is a l o f ap p ro x im a tely n in e c e n ts ( .0 3 3 ) ae compared t o a
p r o d u c tiv ity r e n t a l v a lu e o f a l i t t l e more th an 2 J c e n t s .
Ih e s a l e s
a p p r a is a l a v era g e s #8 .1 1 p er a c r e , w hich a t th e annual r e n t a l o f 8 .8 c e n t s ,
g iv e s a r e tu r n on th e in v estm en t o f approxim ate one p er c e n t .
The r e n t a l
o f 23 . U c e n t s computed from p r o d u c t iv it y , when c a p i t a l i s e d , a t f i v e per
c e n t g iv e s $k»6k a s th e v a lu e o f th e la n d .
Thus, we have a c a s e o f land
valu ed a t #8 .1 1 a p p ra ised t o le a s e a t 8 .8 c e n t s , or a l i t t l e more than one
p er c e n t , a s compared t o a p r o d u c t iv it y s a l e s v a lu e o f #U.&» a p p ra ised t o
l e a s e a t 2 3 .4 c e n t s p er a c r e , o r a r e tu r n o f f i v e p er c e n t .
T h is same
com parison can b e fo llo w e d th rough f o r th e a n a ly s is o f Fergus and V a lle y
c o u n tie s a l s o .
The book v a lu e o f Chouteau County la n d s i s # 6 .2 4 .
The s a l e s a p p r a is a l
o f # 8 .1 1 w ould show a n ic e m argin o f p r o f i t , i f i t o ou ld be r e a l i s e d .
The
p r o d u c tiv ity s a l e s v a lu e i s o n ly #4 .6 4 w hich i s a s u b s t a n t ia l red u c tio n from
th e book v a lu e .
In Fergus and V a lle y C o u n tie s, th e p r o d u c t iv it y v a lu e
shows a m argin o f p r o f i t ov er th e book v a lu e , ev en though th e p r o d u c tiv ity
v a lu e i s low er th an th e s a l e s a p p r a is a l o f t h e * t a t e Land O f f i c e .
Zn
C u ster , th e p r o d u c t iv it y v a lu e i s a p p ro x im a tely o n e -th ir d t h e book v a lu e .
T h is stu d y s u b s t a n t ia t e s th e f in d in g s o f Srane and Lord £ § / t h a t th e p oorer
grad es o f land ten d t o be o v e r -v a lu e d .
B u ll
Renne, 8 . R ., and Lord, H. H. A ssessm en t o f Montana Farm Lands,
3 4 8 , Montana A g r io u ltu r a l Experiment S t a t io n , O ctober 1937•
I
-82-
R^fiT V II .
SPECIAL PBBOBLiiie OP ADMINISTRATION
Who L#aa## S t* ta LandaT
Tho B n ab lla g A et p ro v id ed t h a t S t a t e lan d e sh ould be le a s e d In q u a n ti­
t i e s n o t ex c e e d in g one s e c t io n t o any one p erso n or company. _£§/ When
t h a t s e c t io n o f th e A et was adopted i n 1 8 8 9 , i t w as, no d o u b t, th e in te n ­
t i o n t o d isc o u r a g e th e c o n c e n tr a tin g o f s t a t e la n d s in few hands and t o
en co u ra g e, i f p o s s i b l e , th e w id e s t p o s s i b l e d is s e m in a tio n i n t o f a s d ly s is e d u n its .
I t was so o n fo u n d ,
v e n tin g th e la w .
There
how ever, t h a t th e r e were e f f e c t i v e ways o f circum ­
w ere few
r e s t r i c t i o n s on who m ight le a s e th e la n d .
A c c o r d in g ly , a l l o f th e
l e s s e e ' s r e l a t i v e s a s w e ll a s th e h ir e d men, were
• l i g i h l e f o r S t a t e la n d
l e a s e s . *11 o f t h e s e l e a s e s , when p u t to g e t h e r ,
made t r a c t s o f c o n s id e r a b le e l s e .
The p erso n n el o f th e S t a t e La*d O f f ic e
would c o n v e n ie n tly record a l l o f th e l e a s e s to g e th e r under th e d e s ig n a tio n
o f "Mr. B la n k 's U n it" .
Thus, th e law waa s o i n e f f e c t i v e t h a t no s u r p r is e was f e l t when i t was
r e p e a le d , p e r m ittin g o i t i s e n s o f th e U n ited S t a t e s 21 y e a r s o f a g e , or th e
head o f a f a m ily , t o le a s e S t a t e la n d s i n any q u a n tity .
The e x t e n t o f n o n -r e s id e n t h o ld in g s o f s t a t e lan d i s n e g l i g i b l e , so
w hatever b e n e f i t s a ccru e t o th e l e s s e e s a r e co n fin ed t o r e s id e n t s o f
Mont a n a .
T able X I I l shows t h a t 116 o p era to rs le a s e a p p roxim ately 1 ,0 0 0 ,0 0 0 a c r e s
and t h a t th e a v era g e le a s e - h o ld o f t h i s group i s more th a n 8 ,5 0 0 a c r e s .
69 / E n ab lin g A e t, S e c t io n 1 1 .
-83-
Thle a crea g e r e p r e s e n ts ov er 86 p er c e n t o f th e t o t a l o f a l l la n d s le a s e d
d u rin g 19t*0.
N in e ty -th r e e l e s s e e s o f t r a c t s ran gin g I n e l s e from 2 s e c ­
t i o n s t o 2 ,9 9 9 c o r e s , le a s e a p p ro x im a tely 200,000 a c r e s , o r an average o f
o v er 2 ,1 0 0 a c r e s e a c h .
Thus, I t w i l l b e s e e n th a t 209 l e s s e e s , or
s l i g h t l y more th a n th r e e p er c e n t , c o n t r o l a t o t a l o f a lm o st 1 ,2 0 0 ,0 0 0
a c r e s , o r more th an 31 p er c e n t , o f a l l th e s t a t e la n d s under l e a s e .
TABLE X I I I .
S ls e o f
L ease
T ra cts
•
1
•
1
MONTANA STATE AGRICULTURAL AND GRAZING LEASES
BY SIZE OP HOLDINGS, 19W)
•
•
I
1
Average
Leased
1
Number 1
of
I
L ea ses •
A verage
L ease
H olding
(A cres
1ISor Cent* Per Cent
1 of a ll 1
of
1
Lands 1
a ll
• L eased 1 L eases
A ll le a s e s
3 ,808,1457.80
6 ,6 7 5
571
Under 1280
2 ,6 1 9 ,2 9 5 .0 U
6,1466
I4O5 .O8
6 6 .7 8
9 6 .8 7
1280 - 2999
197 , 36 0 .2 6
93
2 ,1 2 2 .7 5
5 .1 8
1 .3 9
3000 - up
9 9 1 ,8 0 2 .5 0
116
8 ,5 5 0 .0 2
2 6 . OU
1.7U
100
100
Cosq>etltlTe B id d in g
When le a s e r a t e s were e s t a b lis h e d f o r t h e r e n ta l o f S t a t e owned
la n d s T S / i t was no doubt In ten d ed t h a t c o m p e titiv e b id d in g sh ould be t h e
d eterm in in g f a c t o r In p la c in g th e f i n a l l e a s e r a te upon a l l la n d s , and
a ls o In d eterm in in g who sh ou ld r e n t th e le n d .
A c t u a lly , how ever, com peti­
t i o n p la y s a v e r y m inor p a r t In th e le a s in g o f s t a t e la n d s .
In a t o t a l o f
over 1 0 ,0 0 0 l e a s e s exam ined. I t was found t h a t l e s s th a n se v e n per
70/ R ev ised Codes o f Montana, 19 3 5 . C hapter 1 6 0 , S e o . 1 0 0 5 .2 5 .
c e n t I i / had been l e t th rough o o m p e titlo n e
P ro v leltm I e made
bo
t h a t any
q u a l i f i e d JEZ p erson may c o n t e s t th e renew al o f a le a s e a t any tim e b e fo r e
t h e 30-d ay p e r io d Im m ediately p reced in g I t s ren ew a l.
He th e n o b ta in s th e
p r i v i l e g e o f e n te r in g I n to a c t u a l c o m p e titio n f o r th e l e a s e .
Whether or
n o t th e p r o s p e c tiv e l e s s e e I s n o t i f i e d o f th e d a te o f c o m p e titio n or
w hether o r n o t he f a l l s t o resp on d , once he i s n o t i f i e d , th e f a c t rem ains
t h a t whoever s e c u r e s a l e a s e r i s k s o n ly about sev en ohanoes o u t o f one
hundred o f h av in g h ie ren ew al c o n t e s t e d .
Among th e rea so n s f o r th e f a i l u r e o f c o m p e titiv e b id d in g may be en ­
umerated i
1 . - H eluotanoe on th e p a r t o f one n eigh b or t o oonp e t e a g a in s t a n o th er f o r a l e a s e a t " a u c tio n ”
b id d in g .
2 . - U n w illin g n e s s t o Incur exp en se o f a t r i p t o
H elena sh o u ld o r a l b id d in g b e in d ic a t e d .
3 * - I n a d v is a b ilit y o f le a v in g e a r ly sp rin g opera­
t i o n s t o em ployees In ord er t o p a r t ic ip a t e In
th e b id d in g . 7 3 /
U*- D le o r lm ln a tlo n a g a in s t th e o p era to r o f a
f a m lly - e is e d farm .
Should c o m p e titiv e b id d in g th e n , be e lim in a te d e n t i r e l y o r should th e
system be changedT
T l / 1 0 ,W i le a s e e examined.
703 co m p etitio n s.
7 2 / S e e . 1 8 0 5 .2 3 , Chapter 1 6 0 , Twenty-one y e a r s o f age o r head o f
fa m ily .
7 3 / Employees o f S t a t e Land O fflo e r e p o r t t h a t under th e p r e se n t e y e tern WKere b id d in g I e u s u a lly done In t h e s p r in g when rea d s a re bad and
th e r e I e storm d a n g er, l e s s e e s t e l l o f le a v in g heavy farm work (c a r e o f
young s t o c k , e t c . ) t o t h e i r w iv e s .
C om p etition Vor Oraalng Le»##»
The F o r e s t S e r r lo e has e lim in a te d o o m p e tltlv e b id d in g f o r e r a sin g
p r i v i l e g e s on R a tio n a l and S t a t e f o r e s t s *
L ik ew ise, I t h as no p a r t I n th e
d is t r ib u t io n o f g r a sin g p r i v i l e g e s i n a e r a s in g d i s t r i c t .
Zn f o o t . I t i s
h a r d ly c o n c e iv a b le t h a t c o m p e titio n through o r a l b id d in g h a s a p a rt i n any
program o f le a s i n g i f c o n s e r v a tio n o f r e s o u r c e s i s o f any c o n sid e r a b le im­
p o r ta n c e .
ab u ses*
B id d in g beyond th e w orth o f a t r a c t o f land i s a p t t o le a d t o
The l e s s e e who b id e more th a n th e lan d i s w orth " j u s t t o show a
neighbor" may i n two y e a r s do th e lan d more damage th an f i v e y e a r s - o f
c o n s e r v a tiv e management can r e s to r e *
Even th e advanced p r ic e s secu red under a system o f c o m p e titiv e b id d in g
do n o t add m a t e r ia lly t o r e n t a l retu rn s*
I t would appear t o b e th e p r a c t ic e
t o pay th e h ig h e r r e n t a l o n ly a s lo n g a s th e co m p etito r rem ains in t e r e s t e d .
When th e danger o f c o m p e titio n has p a s se d , th e le a s e i s c a n c e lle d and
u s u a lly renewed a t th e minimum r a t e .
I f t h e le a s e i s n o t th u s renewed,
even th e co m p etito r may no lo n g e r want th e la n d .
n o t have a c t u a ll y wanted i t i n th e f i r s t p la c e .
He may be s u l l e n or may
A gain , o th e r p eo p le may
a s s o c ia t e an unduly h ig h r e n t w ith th e la n d , or may be a f r a id o f becoming
in v o lv e d i n a neighborhood q u a r r e l.
C on seq u en tly, th e la n d l i e s unproduc­
t i v e and open t o t r e s p a s s , o f t e n f o r y e a r s .
When bonds Q / w ere req u ir ed o f a l l le e e e e s o f s t a t e la n d s , i t was n o t
TU/ S e o tjo n 188U, R ev ised Code's o f Montana, 1921.
wSuih l e s s e e w it h in 2 k hours a f t e r le a s i n g sa y la n d , s h a l l pay t o t h e
r e g i s t e r w ith f i r s t y e a r ’ s r e n t a l, and s h a l l d e liv e r t o him , a good and s u f­
f i c i e n t bond, e x ec u te d b y th e s a id l e s s e e and two s u r e t i e s and approved by
th e t r e a s u r e r o f th e cou n ty i n w hich th e la n d i s s it u a t e d ; t h e c o n d itio n o f
*R6»
p o s s i b l e t o o a n e e l a le a s e l a t h i s aanner b eca u se a f a i t h f u l perform ance
o f th e c o n d it io n s o f th e c o n tr a c t was req u ired #
There a r e s t i l l a few
a d v o ca tes o f th e bonding p r o v is io n , ev en though I t seem s d is c r im in a to r y l a
i t s o p e r a tio n .
Perhaps a r e fe r e n c e t o a B i b l i c a l p a ssa g e w i l l e x p la in th e
o b j e c t io n — "Te him who h ath s h a l l be g iv e n • • #"
C e r t a in ly i t I s more
d i f f i c u l t f o r th e man o f lim it e d means t o o b ta in s u r e t ie s th a n f o r th e
w e l l - t o - d o , ev en though th e need f o r t h e poor man I s g r e a te r and i n h is
hands th e lan d would make a g r e a te r c o n t r ib u t io n t o s o c ie t y #
Bonds may b e req u ir ed a t th e d is c r e t i o n o f th e Board T z / and m ight
w e l l b e u sed i n th e e a s e o f l e a s e s t h a t w ere l e t th rough c o m p e titiv e b id ­
d in g , I n o rd er t o compel a f u l f i l l m e n t o f th e c o n tr a c t term s*
A t p r e s e n t s e a le d b id d in g i s th e r u le u n le s s one o f t h e co m p etito r s
a sk s f o r o r a l b id d in g , w hich I e h e ld I n t h e S t a t e Land Department l a
H elen a .
P a r t le lp a t io n In th e o r a l b id d in g works a h a rd sh ip on th e man who
must le a v e h ie work d r iv e lo n g d is t a n c e s and Incur t h e exp en se o f making an
appearance t o p r o t e c t h i s le a se h o ld #
O ften a l l o f th e neighborhood
a n im o s it ie s and 111 f e e l i n g s f l a r e up i n t h e ex citem en t o f c o m p e titio n .
In
th e h e a t o f a n g e r , o r t h e s p i r i t o f d e f ia n c e , th e b id o f f e r e d , o r m et, I e
o u t o f a l l p r o p o r tio n t o th e v a lu e o f t h e le n d .
In s p i t e o f th e apparent
I m p e r fe c tio n s o f c o m p e titiv e b id d in g , i t seems h ig h ly im p e r a tiv e th a t
some means b e a v a ila b le f o r d eterm in in g who s h a l l se c u r e t h e le a s e and how
su ch bond b e in g t h a t euoh l e s s e e w i l l keep and perform a l l t h e coven an ts and
agreem ents co n ta in ed i n th e le a s e ."
T h is p r o v is io n . I n ab ou t th e same form , was In e f f e c t from th e b e g in ­
n in g o f sta te h o o d u n t i l 1927 , when i t was r e p e a le d .
7 3 / S e c t io n 1 3 0 5 .2 9 , Chapter 160, R evleed Codes o f Montana.
-87-
Biuoh i s t o be p a id i f th e s t a t e i s t o s e c u r e th e la r g e s t p o s s ib le I w s e
r e tu r n s .
S e a le d b id s o f f e r a p o s s i b l e s o lu t io n and p o s s e s s th e f o llo w in g ad­
v a n ta g es i
1 . - They would keep b id s from g o in g to o h ig h . The
l e s s e e w ould b id o n ly an amount ca lm ly and de­
l i b e r a t e l y d eterm ined i n h ie own home.
2 . - They would keep down d is s e n t ! o n and a n im o s it ie s
i n th e neighborhood and ten d t o promote n e ig h ­
borhood harmony.
) . - They would r e s u l t i n a g r e a te r number o f compe­
t i t i o n s . Many p r o s p e c tiv e l e s s e e s would subm it
b id s i f n o t com p elled t o h id o r a l l y .
Uv- A t r i p t o H elena t o e n te r a b id would n o t be
n e c e s s a r y . The c o s t o f th e t r i p would be saved
and no tim e would b e l o s t .
5v - The S t a t e would r e c e iv e g r e a t e r r e tu r n s , n o t so
h ig h , p erh a p s, a s from th e man who sou ght t o
"show h i s n eig h b o r" , b u t more c o n s is t e n t ly h ig h ,
f o r he would be more in c lin e d t o h old a le a s e
s o a c q u ir e d .
6 . - The o p era to r o f a "f a m ily - s iz e d n u n it co u ld
com pete f o r l e a s e s on more n e a r ly eq u a l te r m s.
I t w ould seem d e s ir a b le , i f th e p r e s e n t l e s s e e so d e s ir e d t o a llo w
him t o r e t a i n th e l e a s e a t th e h ig h e s t b id o f f e r e d .
The Crow In dian
A gency, f o r exam ple, d o es n o t p r o t e c t i t s l e s s e e s i n t h i s manner and a
l e s s e e ca n , and o f t e n d o e s , f in d t h a t he has l o s t h ie l e a s e and has no
a lt e r n a t i v e b u t t o s e l l h ie l i v e s t o c k .
Co m u e titio n f o r A gri c u lt u r a l W a se s
A lm ost n in e ty -tw o p er c e n t o f th e a cre a g e under le a s e f o r a g r ic u lt u r a l
p u rp oses i s le a s e d on th e c r o p -sh a r e b a s i s .
The u su a l sh a re i s o n e - f i f t h
-88-
o t th e orep d e liv e r e d a t th e m arket.
When c o m p e titio n a r i s e s , b id s a re
u s u a lly made f o r a g r e a te r sh a re o f th e o ro p , a s f o r o n e -fo u r th , o n e -th ir d
and i n a few e a s e s a s h ig h a s o n e - h a lf .
The o n ly oaeh o u tla y under t h i s p la n o f le a s in g i s f o r th e f e e o f
|2 » 5 0 p aid f o r th e l e a s e .
There a re no fu r th e r payments u n t i l th e orop i s
h a rv ested when th e S t a t e r e c e iv e s i t s sh a re o f th e o ro p .
I f , f o r any
r e a so n , th e r e i s no orop , t h e r e i s no r e n t a l o b lig a t io n ,
i-mv* O f f ic e r e ­
cord s r e v e a l many o a s e s o f p r e t t y c o n s is t e n t f a i l u r e s , b u t b eca u se th e
le a s e i s on a o r o p -sh are b a s i s , i f th e r e i s no o ro p , th e r e i s no ca u se f o r
O a n o e lla tie n o f th e l e a s e .
I t would s e e n d e s ir a b le , once th e proper o ro p -sh a re had been e s t a b l i s h ­
ed f o r eaoh grade o f la n d , t h a t in s t e a d o f b id d in g an in c r e a s e d share o f
th e orop , a co m p etito r sh ou ld be com p elled t o r a i s e th e b id a s a cash
bonus o r even a s an o u t r ig h t oash b id .
T h is bonus would b e p aid eaoh y ea r
th e le a s e i s i n e f f e c t and would p ro v id e a le v e r t o remove te n a n ts who
c o n s i s t e n t l y r e p o r t orop f a i l u r e s i n th e neighborhood where cro p s are b ein g
ra ise d *
Q rasing D i s t r i c t s
O rasing d i s t r i c t s o f Montana o p era te under th e Grass C o n serv a tio n Act
o f 19)9»
T h is law c r e a te d th e S ta te Grass C o n servation Commission, com­
p osed o f f i v e members, w hich p a r t ic ip a t e s i n th e o r g a n is a tio n o f gracin g
d i s t r i c t s and has lim it e d su p e r v is o r y powers ov er a d i s t r i c t ' s d ir e c t o r s .
Acknowledgement i s made t o Kva J a n et Sm ith, co m p e titio n c le r k . S ta te
la n d O ffic e f o r many o f th e id e a s on c o m p e titiv e b id d in g .
-
68 -
F ig u re 2 1 -AREAS OF COLLECTIVE TENURE IN MONTANA, 1941
[ ___ ] INDIAN RESERVATIONS
C m
......
H Z
ZHZ
H r
IZ :
~S7~
~VT
TAYLOR GRAZING DISTRICTS
MALTA
MUSSELSHELL
MlZPAH
BRlDGER
BUTTE
ROUNDUP
FEDERAL PURCHASE (L U.) PROJECTS
T77AGRAZING
1
2
3
4
5
6
7
ASSOCIATIONS
NORTH FORK
CHERRY RIDGE
BIG FLAT-WOODY ISLAND
LOHMAN
COAL CREEK
WAYNE CREEK
SOUTH BEARPAW
8
9
IO
I I
I2
I3
I4
I5
I6
I7
18
19
20
2 I
22
23
NORTH PHILLIPS
SOUTH PHILLIPS
NORTH VALLEY
WILLOW CREEK
BUGGY CREEK
BADLANDS
LOWER JUDITH RIVER
INDIAN BUTTES
CROOKED CREEK
CHAIN BUTTES
GRASS RANGE
PETROLEUM-FERGUS
WINNETT
WILLIAMS COULEE
WEEDE
FLAT WILLOW
LEGEND
2 4 DEVIL’S BASIN
2 5 MUSSELSHELL-NORTH WILLOW
2 6 POLE CREEK
2 7 KILBY BUTTE
2 8 BUFFALO CREEK
2 9 ALKAU
3 0 FORT PEASE
31 F R O ZE -TO -DEATH
3 2 PRAIRIE COUNTY
3 3 FALLON CREEK
3 4 CHALK BUTTES
3 5 WATERLOO
3 6 EAST CUSTER
3 7 RED BUTTES
3 8 FORT UNION
3 9 MIZPAH PUMPKIN CREEK
4 0 KEVIN
PROPOSED GRAZING ASSOCIATIONS
4 I BIG MUDDY CREEK
4 2 NORTH CUSTER
bQ Q Q
A
B
C
D
E
SOIL CONSERVATION DISTRICTS
RESERVE
WIBAUX
FROID
CULBERTSON-BAINVILLE
MONA-ANDES
COMPILED BY THE DEPARTMENT OF AGRICULTUR­
AL ECONOMICS, MONTANA STATE COLLEGE, IN
COOPERATION WITH THE LAND ECONOMICS
Sr*
A group o f stockm en who w ish t o form a g ra cin g d i s t r i c t must make
a p p lic a t io n t o th e C o n a lssI o n , w hich th en h o ld s & p u b lic h ea rin g on th e
m a tter and e i t h e r g r a n ts o r d e n ie s a p erm it t o o r g a n ise th e d i s t r i c t .
Which a c t io n th e y ta k e depends p r in c ip a lly upon w hether i t seems l i k e l y
th a t th e d i s t r i c t w i l l be a b le t o le a s e enough land and se c u r e enough mem­
b e r s t o c o n t r o l, w ith th e la n d s o f i t s own members, more th a n $0 p er c e n t
of I ts area.
The d i s t r i c t s a r e c o o p e r a tiv e o r g a n is a tio n s e x i s t i n g f o r a
d e f i n i t e p e r io d b u t n o t t o ex ceed ItO y e a r s i th e y can e x e r c is e no powers
o f l o c a l l e g i s l a t i o n s raamberahip i s v o lu n ta r y and lim it e d t o persona engag­
ed i n th e l i v e s t o c k b u s in e s s .
An u n usu al p r o v is io n o f th e Oraaa Conserva­
t i o n A ot r e q u ir e s d i s t r i c t s t o l e a s e , a t a rea so n a b le r e n t a l , a l l s t a t e
lan d w ith in t h e i r b o u n d a ries and n o t o th e r w ise d isp o se d o f , whenever o f f e r ­
ed t o them by th e S t a t e Board o f Land Consaiso io n e raj and th e Grass Conser­
v a t io n C caiaission i s charged w ith th e d u ty o f r e q u ir in g th e d i s t r i c t s *
co m p lia n ce. l A /
A dvantages
C o sed tted d e f i n i t e l y t o a p o lic y o f c o n s e r v a tio n , th e d i s t r i c t s a re
i n a p o s i t i o n , through lo n g -term l e a s e s and c o l l e c t i v e t e n u r e , t o inaugur­
a t e a s some o f th e p r in c ip a l b e n e f it s o f g r a z in g d i s t r i c t s «
1 . - C o n servation o f re so u r c e s th rou gh c o n s e r v a tiv e
s t o c k in g , d e fe r r e d and r o t a t io n a l g r a z in g .
2 , - B e t t e r u t i l i z a t i o n o f range through th e u se o f
f e n c e s and w a ter developm en t.
5 , - Uniform l i v e s t o c k management p r a c t ic e s , p e r m ittin g
FoT
76/ S ta te Im gisU tT on
t ie t t e r Land U se.
terbureau Committee o f th e U .S .O .A .
A S p e c ia l Report by an In­
-9 1
the u se of higher quality a i r e s , and consequently
the Marketing o f more uniform quality o f live­
sto c k .
I u - C rea tio n o f adequate r e s e r v e s th u s e lim in a t in g or
g r e a t l y a l l e v i a t i n g th e mere extrem e h a sa r d s.
There i s no q u e s tio n t h a t any g ra z in g d i s t r i c t i s i n a p o s it io n t o be
o f c o n s id e r a b le v a lu e t o th e l i v e s t o c k i n t e r e s t s and t o la n d -h o ld in g agenc­
i e s a s w e l l , i f p r o p e r ly a d m in iste r e d .
d isa d v a n ta g e s
A g a in st t h e s e a d van tages may be l i s t e d th e f o llo w in g d isa d v a n ta g e s o f
g r a s in g d i s t r i c t s a s a d m in istered a t th e p r e s e n t tim e i n Montana.
! • - B ecause o f th e e x c e s s iv e ly low r e n t a l s , a l l i n ­
c e n t iv e t o purchase s t a t e owned land i s rem oved.
2 . - B ecause group p r e ssu r e has b een u sed t o a cco m p lish
p u r p o se s, w hether d e s ir a b le o r u n d e s ir a b le .
) » - B ecause r e n t a ls e s t a b lis h e d f o r g r a sin g d i s t r i c t s
have b een u sed i n se c u r in g in d iv id u a l l e a s e s .
C e r ta in ly th e r e i s no in c e n t iv e t o own la n d s when th e y oan be le a s e d
f r e e th e S ta te a t r e n t a ls su ch a s have b een q u it e u n ifo rm ly o b ta in ed by
g r a sin g d i s t r i c t s .
T his r e s u l t was a n t ic ip a t e d b y I . M. B randjord, form er
Cosm desioner o f S t a t e la n d s , 2 2 /
w h ile A. ? • Vass o f Wyoming contends
t h a t , "Land In vestm en t i s s o im portant t h a t a poor manager u s in g t a x - f r e e
7 7 / " I t i s l i k e l y t h a t th e a d m in is tr a tio n o f g r a s in g d i s t r i c t s under
th e T aylor O raslng Aot w i l l be suoh a s t o remove th e in c e n t iv e t o purchase
th e s t a t e owned la n d s w it h in t h e s e d i s t r i c t s . I f s o , th e enactm ent o f th e
T aylor O raslng b i l l would r e s u l t in a m a t e r ia l and permanent Impairment o f
th e v a lu e o f la n d s a lr e a d y gran ted t o th e S t a t e o f Montana. To some ex­
t e n t i t would ten d t o d e f e a t th e v e r y end and purpose f o r w hich th e F ed eral
lan d g r a n ts w ere made t o our s t a t e ."
...R e p o r t o f Commissioner o f S ta te
Lands and In v e stm e n ts, 195-U.
-92-
^and km# # b e t t e r ohmnoe o f mmklng m f a i r r a t e o f I n t e r e s t than th e e f f i O len t manager on o v e r -ta x e d , p r iv a t e ly craned la n d ." 7s /
Ae a g r a sin g d i s t r i c t i s req u ir ed by Iaar t o le a s e a l l s t a t e lan d s
e l t h i n I t s b ou n d aries n o t o th e r w ise d is p o se d o f , i t has b een supposed t h a t
mueh i d l e lan d would b e brought under l e a s e .
Working on th e assu m p tion t h a t any t r a c t o f land m ight b e v acan t f o r
a y ea r o r so a t a tim e , a stu d y was made o f th e s t a t e la n d s In P h i l l i p s
County t o d eterm ine J u s t how much u n lea sed la n d would b e brought under
le a s e th rou gh t h e p r o v is io n s o f th e Grass C o n serv a tio n A o t.
A cco rd in g ly ,
o n ly th o s e t r a c t s which had b een c o n s is t e n t ly n o t le a s e d f o r a p erio d o f
f i v e y e a r s were c o n s id e r e d .
I t was found t h a t th e r e was i n e x c e s s o f
1*5#OOO a c r e s (L 5 #586 .W )) In t h a t cou n ty a lo n e w hich had retu rn ed no revenue
d u rin g th e p e r io d 1931 th rou gh 1935«
However, w ith t h e ad ven t o f a g it a t i o n
f o r th e fo rm a tio n o f a e r a s in g d i s t r i c t , many le a s e s w ere e i t h e r c a n c e lle d
or a llo w e d t o la p s e .
In ste a d o f havin g 1 ^ ,0 0 0 a c r e s o f u n lo o sed land a s i n
th e f i v e y e a r p erio d m en tion ed , ov er 1*7,000 a c r e s ( 1*7# 1*31.
15)
remained
u n iea sed f o r th e g r e a te r p a r t o f th e second f i v e y ea r p erio d o f t h i s s tu d y .
The n e t r e s u l t i s t h a t a p p roxim ately 2 ,0 0 0 more a c r e s had a record o f f i v e
y e a r s o f id le n e s s d u rin g th e l a t t e r p a r t o f th e deoade ( l . e . du rin g th e
fo rm a tio n o f th e g r a sin g d i s t r i c t ) th an d u rin g th e f o r e p a r t .
lan d on w hich l e a s e s wore dropped i s s t i l l u n le a s e d .
MUeh o f th e
One la r g e o p erator
who had been c o n s i s t e n t l y le a s in g ov er 1 9 ,0 0 0 s o r e s f o r s e v e r a l y e a r s pre­
v io u s t o 1936 h a s , s in c e t h a t tim e , been p ayin g s t a t e la n d r e n t a l on l i t t l e
7 8 / Vaae, A. P., A m e r i c a n Cattle Producer, V o l . XXL, M a y 19ij0, p a g e
%
-93*
■ o re t h a n 3*800 a c r e s .
A cc o rd in g t o th e r e c o r d s o f t h e C ounty A s s e s s o r ,
t h i s o p e r a t o r a v e ra g e d f o u r a n im a l u n i t s m ore d u r in g t h e y e a r s 1939-140
th a n d u r in g t h e y e a r s 1 9 3 5 -3 6 . 2 2 /
A lth o u g h g ro u p p r e s s u r e may b e d is c la im e d b y t h e g r a s in g a s s o c i a t i o n s ,
and p a r t i c u l a r l y b y t h e S o u th P h i l l i p s A s s o c i a ti o n , t h e r e a r e many I n d i c a ­
tio n s t h a t I t has been p r e s e n t.
W itn e s s t h e f o llo w in g i l l u s t r a t i o n .
B ren
th o u g h t h e s t a t e la n d w i t h i n t h e S o u th P h i l l i p s D i s t r i c t h a s b e e n u se d f o r
a num ber o f y e a r s and a r e n t a l o f a p p r o x im a te ly t h r e e c e n t s p e r a c r e a g re e d
up o n , th e l e a s e h a s n e v e r b e e n s ig n e d , n o tw ith s ta n d in g t h e f a c t t h a t a
p r o d u c t i v i t y r a t i n g p l a c e s th e r e n t a l v a lu e o f t h e la n d a t s e v e n c e n ts p e r
a c re *
I n s t e a d o f a c c e p ti n g t h e l e a s e a t t h e r a t e o r i g i n a l l y a g re e d up o n , t h e
a s s o c i a t i o n h a s c o u n te r e d w ith a n o th e r p r o p o s i t i o n w hereby t h e d i s t r i c t i s
t o b e d iv id e d i n t o t h r e e s o n e s i
th e f i r s t g o n e, c o m p ris in g a p p ro x im a te ly
o n e - t h i r d o f t h e a r e a , t o b e le a s e d a t t h r e e c e n ts p e r a c r e s t h e second
se n e a t tw o c e n t s , and th e t h i r d , a t one c e n t p e r a c r e .
The a v e ra g e r e n t ­
a l w ould b e 1 . 7 c e n t s p e r a c r e and t h e t o t a l re v e n u e fro m s t a t e la n d s w ith ­
in th e d i s t r i c t
w ould be $ 1 1 8 9 .0 0 .
I t i s a l s o p ro p o se d t o b e g in paym ents
a s o f t h e c u r r e n t y e a r e v e n th o u g h t h i s la n d h a s b een u n d e r c o n t r o l o f t h e
d i s t r i c t and s u b j e c t t o u s e b y i t s members f o r s e v e r a l y e a r s .
W
Y ear
1935
1936
1937
1936
1939
19Uo
A nim al I
5206
U oo
1100
3199
W
149U
A v erag e 1935-36
I4658
A v erag e 1939-W
I4662
Th* f in d in g s o f t h i s stu d y a s t o th e p r o d u c t iv it y v a lu e o f th e S t a t e
la n d s w ith in th e two g ra cin g d i s t r i c t s o f P h i l l i p s County w ere a t so g r e a t
a v a r ia n c e w ith th e proposed r a t e t h a t an a d d it io n a l ch eck seemed d e e in a b le a
A cc o r d in g ly , th e f in d in g s o f th e range su rvey conducted by th e
A g r lo u ltu r a l A djustm ent A d m in istra tio n w ere used*
T h is su rv ey shows a
c a r r y in g c a p a c ity f o r th e s t a t e la n d s w it h in th e d i s t r i c t o f 16 , 701* anim al months*
Computed a t a r e n t a l v a lu e o f 33 c e n ts 5 2 / p e r a«4«ai month,
th e t o t a l r e n t a l v a lu e o f s t a t e la n d s w it h in th e d i s t r i c t would be over
# 3 , 500*00 or e i g h t c e n ts p er a c r e w hich a g r e e s q u it e c l o s e l y w ith th e
p r o d u c t iv it y v a lu e ( f ig u r e 2 1 ) ,
Grant Lands
II
TABLE XIV. COMPARISON OF GRAZING COSTS OS STATE LANDS OF PHILLIPS
COUNTY ACCORDING TO DIFFERENT APPRAISALS 1931 - I 9 I4O INCLUSIVE
»Orig i a n l 1R ate a s 1 Produo- «G rasing i Rate
1 R ate 1 S e t by 1 t i v i t y ,D i s t r i c t * AAA
•p er A c r e iL e g ie la -I p er acre* R ate
tRange
1
1 tu r e 1
•
*Survey
N orth P h i l l i p s
D is tr ic t
2 7 ,2 3 5 .9 2
0 .1 3 3
0 .0 6 6
0 .1 1 6
0 ,0 3
S ou th P h i l l i p s
D is tr ic t
6 7 ,8 6 9 .7 2
0 .0 8 8
0.01*1*
0 .0 7
0 .0 2 8 5 5 / 0 .0 8
a / O r ig in a l r a t e agreed upon.
t e x t p r e c e d in g .
Subsequent r a te o f f e r e d 0 .0 1 7 .
0 .0 9 2
See
V alu es computed from t h e s o i l su rvey p r o d u c t iv it y in d e x and from farm
management s t u d i e s , show a v a lu e f o r th e d i s t r i c t o f over Si*,800 or ap­
p ro x im a tely sev en c e n t s per a c r e .
In v ie w o f th e s e f in d in g s from two
80/ S a u n d e rs o n , M. H ., Sosm M a te r i a ls R e la tin g t o L iv e s to c k and Land
V a lu a tio n , M ontana A g r i c u l t u r a l E x p erim en t S t a t i o n , MLneo.
Cost o f Owning G razin g Land
A A A S urvey Computed a t 33 c e n ts p e r Anim al Month
V alu e A cco rd in g to G razin g D i s t r i c t L ease
P r o d u c t i v i t y A cco rd in g to S o il S urvey
R a te o f .R e n ta l as S e t by L e g i s l a t u r e c>f 1933
R a te o f R e n ta l p e r Acre P r i o r to 1933
J __ J___ I _L__ !
12
Ik
I
16
18
20
C ents P er A cre
F ig u re 2 2 .— G razin g C o sts o f P r i v a t e l y Owned Land i n S outh P h i l l i p s C ounty G razing
D i s t r i c t a s Compared t o S t a t e Land R e n ta ls u n d er D i f f e r e n t A p p ra is a ls
19Uo
entirely in d ep en d en t end r e l i a b l e e o u ro ee , i t seams t h a t group p ressu r e
must sh are th e r e s p o n s i b i l i t y f o r red u cin g r e n t a ls t o s o u n reason ab le a
b a s is .
A Two P r ic e System
Many a merchant h as b een d is c r e d it e d i n an attem p t t o m a in ta in a two
p r ic e sy stem , one f o r h ie custom ers and th e o th e r f o r h is f r l e d n s .
Juot
a s th e merchant en co u n tered d i s s a t i s f a c t i o n and d i s t r u s t , s o w i l l th e
S ta te Board o f Land Com m issioners en co u n ter th e same a s lo n g a s i t m a in ta in s
one r e n t a l f o r g r a c in g d i s t r i c t s and a n o th er f o r th e in d iv id u a l rancher
le a s in g la n d s w it h in t h e d i s t r i c t .
L ease 27752 i n th e f i l e s o f th e S t a t e Land O f f ic e p r o v id e s an example
o f th e d i f f i c u l t i e s t h a t a r e b ein g en co u n tered .
The correspon d en ce f i l e d
w ith th e le a s e shows th e "Jockeying" t h a t was done t o se c u r e th e in d iv id u a l
le a s e a t a r e n t a l r a t e t h a t was su p p o sed ly a v a ila b le o n ly t o a g ra cin g
d is tr ic t.
As a r e s u l t o f e x e c u tin g t h i s le a s e a t th e g iv e n r a t e s , th e
s c h o o l fund l o s e s 1 5 3 5 .0 0 d u rin g th e term o f t h i s l e a s e .
R en tal v a lu e s w hich a r e c l e a r l y l e s s th an earn in g c a p a c ity o f th e lan d
have b een e s t a b lis h e d f o r g ra cin g d i s t r i c t s .
%he a d d it io n a l revenue t h a t
was o b ta in a b le by b r in g in g a d d it io n a l la n d under le a s e h a s been co m p lete ly
n u l l i f i e d by th e low er r e n t a ls t h a t have b een e s t a b lis h e d f o r a l l lan d s
le a s e d t o th e g ra c in g d i s t r i c t .
S e c t io n 1 6 , Township
#1365.87 d u rin g
n o rth . Range 29 e a s t has p a id r e n t a ls o f
th e t e n y e a r s o f t h i s s tu d y , an average o f
#136.59 p*r
y e a r ; y e t i f i t becomes a v a ila b le f o r l e a s e i t can be had by a g ra cin g
d i e t r l o t t o r o n ly $ 2 0 .0 0 , aooord ln g t o th e record* o f th e ^ t a t e Lend O f f i o e .
S e e t io n ) 6 , Township ) 2 N orth, Range 33 B a st retu rn ed r e n t a ls o f
♦ 11*85 c a sh , e x c l u s i v e o f o n e -th ir d o f th e I 9 I4O bay c r o p , f o r th e p eriod
T h is i s an annual r e n t a l i n ca sh o f $ 1140.50 y e t
1931-W i n c l u s i v e .
sh ou ld i t become a v a ila b le f o r l e a s t , i t can be le a s e d by a g ra zin g d i s ­
t r i c t f o r SliD.OO.
TABLE XV.
APPRAISAL RATES PER ACRE OP SELECTED GRAZING
DISTRICTS IN MONTANA
I
D i s t r i c t • County
1
1
1
S ta te 1
1Land A orest
1
In
1
1 D is t r ic t #
MixpahPuaplrtn
C uster
5.760
In d ia n
B u tte
Fergus
BuggyCreek
O r tg in a l
A p p r a isa l
Per Aore
(c e n ts)
t P r o d u c t iv it y t
Grazing
1
Rate
1 D is tr ic t
t Per Acre
iR ate Per Aore
1 (cents)
1
(o o n ts )
6.25
5.2
3.13
13.520
7
5.6
2.6
V a lle y
63.218
9.3
9.3
3.U
Bad Land
V a lle y
142,867
10
5«U
I
W illow
Creek
V a lle y
8,200
10.1*
8 .7
2.0
North
P h illip s
P h illip s
27,236
13
11.6
South
P h illip s
P h illip s
67.870
9
7
3
>
S
<N
U nsigned le a s e i s made o u t f o r t h i s amount1 however, i f
p r e s e n t p ro p o sa l o f th e a s s o c ia t io n i s a cce p te d t h i s f ig u r e w i l l be chang­
ed t o 1 .7 c e n t s p er a c r e .
Table XV shows t h a t th e low r e n t a ls en joyed by th e P h i l l i p s County
d i s t r i c t s a r e n o t c o n fin e d t o th o s e d i s t r i c t s a lo n e .
The o th e r d i s t r i c t s
-98-
ta k en from c o u n tie s s t u d ie d , r e v e a l a Boamehat s im ila r s i t u a t i o n .
A Comparison o f Amvfcals 5 £ /
In d ia n Lands
Montana lias s i x In d ia n R ese r v a tio n s i n th e G reat P la in s a r e a o f th e
S ta te .
They a r e q u it e w id e ly s c a t t e r e d ( s e e F ig u re 2 2 ) and, i n g e n e r a l,
sh o u ld have g ra c in g c o n d itio n s more or l e s s s im ila r t o th e c o u n t ie s which
have been s t u d ie d .
TABLE XVI. ACREAGE LEASED AND RENTAL OBTAINED
BY MONTANA INDIAN AGENCIES,
I 9 I4I
•
Agency
F o r t Belknap
F o r t Peck
B la o k fe e t
Tm gue R iver
Rooky Boy’s
1
1
I
A creage
1 Avo. Rate Per
1
5 6 7 .9 9 0 .0 0
5 2 9 ,2 9 1 .0 0
1 .0 9 5 .6 5 1 .0 0
920 , 115.00
j402,952.00
10 , 700.00
.0 6
. 062)4
.1140
.1 5
.1 2
.0 7 5
3 .5 2 6 ,6 9 9 .0 0
.1 2
Xt w i l l be se e n from T able XVX t h a t th e combined In d ia n A g en cies
a c t u a ll y have more g ra cin g lan d under le a s e ( 3 , 526 , 699.00 a c r e s ) than th e
Department o f S t a t e Land and In vestm ent# ( 3 , L 3 7 ,2 ^ 2 .0 0 a c r e s ) and th a t
th e y o b ta in an a v era g e r e n t a l v a lu e o f 12 c e n t s a s compared t o 5 . U c e n t s ,
e r 2 . 2 tim e s mere th a n t h e r e n t a l o b ta in ed by t h e S t a t e ,
t h a t th e In d ia n la n d s have h ig h e r ca r r y in g c a p a c it y .
Some contend
Thie i s a moot
q u e s tio n and, i n th e ab sen ce o f a range su rv ey , no s a t i s f a c t o r y answ ers
8 l/"G orrosporidenos on f i l e from IndTaui A g en cies and C o u n ties.
-99-
®an
given*
However, I t I e d o u b tfu l I f In dian la n d s a r e w orth on an
a v era g e more th an tw ic e a s muoh a s s t a t e la n d s .
The F o rt Belknap A gency, ly in g a d ja c e n t t o P h i l l i p s County, le a s e d
o u t d u rin g th e I9I4I s e a s o n , o v er o n e - h a lf m i l l i o n a c r e s a t an average o f
e i g h t c e n t s p er a c r e , a s compared t o l e s s th a n th r e e c e n t s p aid by g ra cin g
a s s o c ia t io n s i n P h i l l i p s C ounty.
T h is Agency has r a is e d i t s r e n t a ls t o a
mini mum o f 12 c e n t s p er a c r e f o r t h e c u r r e n t s e a s o n .
Appendix v .
The Port Peek Agency i s co n tig u o u s t o V a lley co u n ty .
T h is agency
r e n t s more th a n o n e - h a lf m i l l i o n a c r e s a t an a v erage o f .0 6 2 5 p er a c r e ,
*611* th e Buggy Creek A s s o c ia t io n i n V a lle y County l e a s e s a l i t t l e more
th a n 6 3 ,0 0 0 a c r e s o f s t a t e la n d f o r
c e n t s per a c r e .
The Bad T^nd
A s s o c ia t io n l e a s e s o v er 142,000 a c r e s a t one c e n t p er a c r e s th e Willow Creefc
6 ,2 0 0 a t 2 . 8 c e n t s s and th e North V a lle y , a l i t t l e more th a n 1 0 ,0 0 0 a t 2 .9 2
c e n t s p er a c r e .
Becky B o y 's Agency l e a s e s 1 0 ,7 0 0 a c r e s a t r e n t a l ' s ra n g in g from f i v e
t o t e n c e n t s p er a c r e .
The B la o k fe e t Agency o b ta in s 15 c e n t s f o r t r i b a l
la n d s w h ile th e Tongue B iv er and Crow A g en cies le a s e f o r 12 and II4.8
c e n ts , r e s p e c tiv e ly .
The Crow Agency has ap p roxim ately 30 p er c e n t a s
much lan d le a s e d o u t f o r g r a c in g a s d oes th e S t a t e o f Montana, and g e t s
a lm o st th r e e tim e s (2 .7 1 0 a s much per a c r e .
Comity Lands
I n comparing th e r e n t a ls o f s t a t e la n d s w ith ta x deed la n d a cq u ired
by th e c o u n t ie s , i t must be k ep t i n mind t h a t s t a t e la n d s a r e d is t r ib u t e d
on a r e g u la r p a tte r n and have a s much o p p o rtu n ity t o se c u r e good land a s t o
>100•e o u r e th e poorer la n d , eWLle a s a g e n e r a l r u le , i t i s th e p oorer and l e s s
d e s ir a b le lan d t h a t r e v e r t s t o th e cou n ty b y way o f ta x d e e d .
I t would
th e n be ex p ecte d t h a t s t a t e la n d s would a v era g e h ig h e r i n le a s e v a lu e than
cou n ty la n d s .
V a lle y County l e a s e s 3 1 ,0 0 0 a c r e s t o th e N orth V a lle y C oop erative
G racing A s s o c ia t io n a t fo u r c e n ts p er a c r e w h ile th e S t a t e l e a s e s
10 , 1468.32 a c r e s , s c a t t e r e d th rou gh out th e d i s t r i c t f o r an a v era g e o f 2 .9 2
c en ts.
For s m a lle r t r a c t s . V a lle y County r e c e iv e s 6 .5 c e n t s a s compared
t o a p r o d u c t iv it y v a lu e f o r g r a c in g la n d s i n th e cou n ty o f 8 .5 c e n t s .
F ergus County p erm its th e l e s s e e t o s e l e c t la n d s a t a r e n ta l o f f i v e
c e n ts p er a c r e and ch a rg es fo u r c e n t s p er a c r e t o a g ra c in g d i s t r i c t when
a l l u n le a se d la n d s w ith in th e d i s t r i c t a r e le a s e d by th e A s s o c ia t io n .
The
I n d ian B u tte C o o p era tiv e G racing A s s o c ia t io n i n t h a t cou n ty p ays an
a v era g e o f 2 . 6 c e n t s t o th e S t a t e f o r 1 3 ,5 2 0 a c r e s .
The a v era g e p ro d u cti­
v i t y r e n t a l v a lu e o f g ra c in g la n d s w ith in th e cou n ty i s 7*5 c e n t s .
C u ster County has e s t a b lis h e d th e f o llo w in g r a t e s f o r l e a s e s on cou n ty
owned la n d .
R ate p er y ea r
Per S e c tio n
L ess th an one s e c t i o n , a t th e r a t e o f
One t o th r e e s e c t i o n s , "
Four or more s e c t i o n s , "
"
"
"
#
I4.O.OO
3 0 .0 0
2 5 .0 0
The NlcpahmPumpkin C o o p era tiv e G racing A s s o c ia tio n l e a s e s n in e s e c t io n s
o f s t a t e lan d a t $ 2 0 .0 0 p er s e c t io n w h ile th e average p r o d u c t iv it y o f grac­
in g la n d s w it h in th e cou n ty i s sev en c e n t s p er a cre o r <^U.80 p er s e c t i o n .
P h i l l i p s County a lo n e , among a l l c o u n t ie s s t u d ie d , seem s n o t t o be
a b le t o l e a s e i t s la n d s t o any b e t t e r ad van tage than t h e S t a t e .
A to ta l of
-10)-
5 1 0 ,0 0 0 a c r e s o f P h i l l i p s County t a x deed lan d le a s e e f o r th r e e c e n t s p er
s e r e w hich approxim ates v e r y c l o s e l y th e r a t e p a id by th e tw o grazin g
a s s o c ia t io n s t o th e S t a t e ,
The p r o d u c t iv it y r e n t a l v a lu e f o r th e County
a v e r a g e s ab ou t e ig h t c e n t s p er a c r e ,
Chouteau County l e a s e s a p p ro x im a tely Il4eOOO a c r e s a t sev en c e n t s p er
acre.
T his a v era g e v a lu e i s h ig h e r th a n t h a t r e c e iv e d by any o th e r county
and s l i g h t l y I n e x c e s s o f th e average r e n t a l r e c e iv e d f o r s t a t e grazin g
lan d * w ith in th e c o u n ty .
However, i t l a ap p ro x im a tely o n ly o n e - h a lf what
th e r e n t a l v a lu e sh ould be a cco rd in g t o p r o d u c t iv it y .
R&RT V I I I .
PUUf POH ADMINISTRATION QP STATE LANDS
Need Por P c llo y
I a g e n e r a l, th e P u b lic Land P o lic y th rou gh out t h e n a tio n has been t o
g e t p u b licly -o w n ed la n d s I n to p r iv a t e ow nership a s r a p id ly a s p o s s i b l e .
T h is i s one o f th e re a so n s f o r th e f a i l u r e t o d ev elo p a mare adequate
system o f managing s t a t e owned la n d s .
A f t e r more than h a l f a ce n tu r y ,
Montana I s a d m in is te r in g 9 8 .5 p er c e n t am much acrea g e a s was co n ta in ed
l a th e o r i g in a l g r a n t.
These f i f t y - t h r e e y e a r s have co v ered a p erio d o f
westward ex p a n sio n , hom esteading and la n d booms.
I t i s u n lik e ly t h a t th e
S t a t e w i l l a g a in e x p e r ie n c e su ch a demand f o r la n d .
The S t a t e i s i n th e
lan d b u s in e s s t o s t a y and I t I s Im p era tiv e t h a t a sound p o lic y f o r th e
fu tu r e a d m in is tr a tio n o f t h i s lan d be fo rm u la ted a s so o n a s p o s s i b l e .
has b een shown t h a t in d e c is io n has c h a r a c te r is e d th e a d m in is tr a tio n o f
t h e s e la n d s I n th e p a s t .
The S t a t e Board o f Lard Com m issioners h as th e
It
-1 0 2 r e s p o n s i b i l i t y o f taanaglng t h i s re so u r c e i n such a nay a s t o se c u r e th e
Maximum revenue f o r t h e p u b lic tr e a s u r y co m p a tib le w ith sound land u se and
s u c c e s s f u l a g r ic u lt u r a l p r a c t ic e s .
An In v en to ry Seeded
The f i r s t e s s e n t i a l i n an I n t e l l i g e n t and s u c c e s s f u l a d m in is tr a tio n o f
any b u s in e s s i s a c a r e f u l in v e n to r y o f r e s o u r c e s .
p la n o f management can be fo rm u la ted .
Once t h i s i s made, a
L ik e w ise , th e f i r s t e s s e n t i a l i n a
s u c c e s s f u l a d m in is tr a tio n o f s t a t e la n d s i s a r e l i a b l e in v e n to r y .
I t would seem th e n t h a t a sy stem o f c l a s s i f i c a t i o n b a se d , n o t upon
p r e s e n t u s e , b u t upon some f e a t u r e more permanent and l a s t i n g , sh ou ld be
th e f i r s t s t e p .
The m e r its o f s o i l o l a s s i f i e a t i o n based upon th e in h e r e n t
p r o d u c t iv it y o f th e s o i l have b een shown.
U sin g p r o d u c t iv it y a s a b a s i s ,
th e number o f a c r e s o f each grade o f farm la n d can be d eterm in ed , a s w e ll
a s th e ntsaber o f a c r e s o f ea ch grade o f e r a s in g .
Lands c h i e f l y v a lu a b le
f o r m in e r a l, g r a v e l, and r e c r e a t io n can a l s o be c l a s s i f i e d a s su ch .
Svoh an in v e n to r y need n o t be c o s t l y o r r e q u ir e a g r e a t d e a l o f t im e .
Many a g e n c ie s have com piled a c c u r a te d a ta c o v e r in g land o v e r a la r g e p a r t
o f th e S t a t e .
A e r ia l photographs a r e a v a ila b le f o r many c o u n t ie s .
su rv ey s have b een made by men tr a in e d and e x p erien ced i n t h a t work.
Range
S o il
su rvey d a ta have b een o b ta in ed and mapped by a tr a in e d and ex p erien ced
fo r c e .
By no means th e l e a s t v a lu a b le so u rce o f e x i s t i n g in fo rm a tio n t h a t
has been co m p iled , i s t h a t o b ta in ed by lo o a l lsuad u se p la n n in g o o n m itte e s .
T eton and Fergus C o u n ties have found t h a t th e y can o b ta in a r e l i a b l e u p -to d a te in v e n to r y o f a l l t h e i r la n d s , a t co m p a ra tiv ely sm a ll c o s t and a
103Kl n l anon o f f i e l d w ork, by th e u s e o f e x i s t i n g r e c o r d s•
R ecent e x p e r ie n c e has ln d lo e te d t h a t when used f o r th e p u rp ose o f b a se
and a r e a i d e n t i f i c a t i o n , lo c a t io n and p i c t u r i a c t io n , a e r i a l photographs
c o n tr ib u te m a t e r ia lly t o th e speed o f n apping, and t o th e c o m p ila tio n o f
d a ta n e c e s s a r y i n lan d c l a s s i f i c a t i o n .
An example o f th e a ccu ra cy o f
a e r i a l photographs was dem onstrated i n an A g r ic u ltu r a l Adjustm ent Adminis­
tr a tio n p r o je c t.
S ix t e e n hundred and f o r t y a c r e s were measured from
p h otograp h s, and l a t e r were a c c u r a te ly su rveyed w ith ta p e and t r a n s i t .
When th e f ig u r e s were compared, i t was found t h a t th o s e ta k en from th e
a e r i a l photographs were l e s s th an t h r e e - t e n t h s o f one per c e n t i n
error. S S /
D eterm in a tio n Qf P o lic y
Ctaoo i n p o s s e s s io n o f b a s ic d a ta p e r ta in in g t o th e s t a t e la n d s , i t
sh ou ld be p o s s ib le f o r th e S t a t e Board o f Land C oeiniseionera o r any o th er
agen cy t o fo rm u la te a sound program o f management.
For exam p le, a s p e c ia l
a d v is o r y com m ittee ap p o in ted by th e G overnor, and composed o f a stockm an,
a farm er, an ed u c a to r , an eco n o m ist, and a range management s p e c i a l i s t
cou ld render a u s e f u l s e r v ic e t o th e S t a t e i n fo rm u la tin g a p o lic y fo r
fu tu r e ad m in is t r a t i o n .
Sueh an a d v is o r y com m ittee would b e o n ly tem porary
and s e r v e j u s t lo n g enough t o com p lete a s tu d y .
r e l a t i v e a d va n ta g es o f s e l l i n g or l e a s i n g .
I t sh o u ld d eterm ine th e
P erhap s, a p a r t o f th e land
sh o u ld b e s o ld s o a s t o m a in ta in a p roper b a la n ce betw een r e a l e s t a t e and
th e store liq u id in v e s tm e n ts .
A p o lic y o f one a d m in is tr a tio n ’s fa v o r in g
8 2 / A hrens, I . P . , The U t i l i s a t i o n o f A e r ia l Photographs i n Mapping and
S tu d y in g Land F e a tu r e s , Land Use P lann ing P u b lic a tio n Bumbor 6 ,
sale and the n e x t f a v o r i n g learning is a p t t o lead t o a s i t u a t i o n w h e r e th e
p o lic y i s o u t o f s t e p w ith th e I n t e r e s t s o f th e S t a t e .
F iv e m il lio n a c r e s o r more in w id e ly s c a t t e r e d t r a c t s o f lan d pre­
s e n t s a r e a l problem i n e f f i c i e n t management.
A stu d y m ight r e v e a l t h a t
3 . 000,000 a c r e s would be a l l o f th e land t h a t sh ould be a d m in istered and
t h a t e f f o r t s sh ou ld be made t o reduce th e h o ld in g s o f S t a t e la n d s t o t h a t
amount.
Mortgage Land P o lic y
A pp roxim ately s i x t y y e a r s w i l l be req u ir ed t o reim burse th e S ta te
S eh o o l Fund f o r th e o u tsta n d in g m ortgage in d e b te d n e ss i f th e r a te o f r e ­
payment o f th e p a s t t e n y e a r s p r e v a i l s .
m ortgage la n d s w i l l s e l l .
That i s , assum ing t h a t a l l o f th e
Mo doubt a p o r tio n o f th e s e la n d s oan be s o ld ,
some b ecau se th e y a r e w orth th e p r ic e i n t h e i r p h y s ic a l p r o d u c t iv it y , o th e r s
b ecau se th e y oan be in c lu d e d a d v a n ta g eo u sly w ith o th e r h o ld in g s .
However,
th e r e w i l l s t i l l rem ain a la r g e a c r e a g e , w hich under o rd in a ry circu m sta n ces
can n ot b e s o ld .
Are th e s c h o o ls o f th e S t a t e t o w a it upon an e v e n t w hich i n a l l prob­
a b i l i t y w i l l n ev er occur?
Here a g a in , i s work f o r an a d v is o r y co m m ittee.
The a cre a g e on w hich
th e r e l a a p o s s i b i l i t y o f f in d in g a market w ith in th e n e x t few y e a r s sh o u ld
be se g r e g a te d from t h a t on w hich th e p o s s i b i l i t i e s o f p a y in g ou t a r e more
rem ote.
la n d s .
The S ch o o l Fund sh o u ld th en be reim bursed f o r th e u n sa le a b le
The a v era g e r e tu r n on a l l s t a t e owned in v estm en ts a cq u ired d u rin g
th e y e a r en d in g June 3 0 , I 9I4Q, was s l i g h t l y more th an th r e e p er c e n t , w h ile
-1 0 5 th e fu n ds t i e d up I n moi-tgmge la n d s r e tu r n , an oerd ln g t o la w , o n ly two p er
ce n t.
Assuming t h a t o n e - h a lf o f t h e la n d , o r ap p roxim ately @ 2,000,000
w orth , i s c la s s e d a s n o t r e a d ily s a le a b le , th e s c h o o l fund would th e n be
reim bursed and p r o f i t by one p er c e n t o r @20,000 p er y e a r .
More R e s p o n s ib ilit y For Fieldm en
A lsaiet w ith o u t e x c e p t io n , th e p a s t Com m issioners o f S t a t e Lands and
In v estm en ts have recommended a la r g e r f i e l d f o r c e f o r more e f f i c i e n t handl­
in g o f s t a t e land r e s o u r c e s .
A ccording t o th e m ost r e c e n t ^ / i n f o r m a t io n ,
th e r e w ere more th a n @1*,000,000 i n o u tsta n d in g farm lo a n s ; more th an 6 ,6 0 0
farm l e a s e s , o f w hich 1 ,6 1 5 w ere c r o p -sh a r e j 109 o i l and g a s le a s e s * in
a l l , more th a n 5 .0 0 0 ,0 0 0 a c r e s t o a d m in is te r .
Y et, t h i s im aanse b u s in e s s
i s conducted a lm o st w h o lly through co rresp o n d en ce.
"Q n q u estion ab ly, con­
s id e r a b le f i n a n c i a l l r a s e s have r e s u lt e d from th e Iaok o f fieldanen",
acco rd in g t o Mr. I . M. B randjord, form er C om m issioner. 2 k /
Fieldm en sh o u ld be s e le c t e d on th e b a s is o f t h e i r t r a in in g and q u a li­
f i c a t i o n s f o r th e p o s it io n r a th e r th a n upon t h e i r p a rty a f f i l i a t i o n s .
These men sh o u ld be w e ll d is t r ib u t e d ab ou t th e S t a t e and g iv e n y e a r around
employment •
F o r e s t la n d s com prise a c o n s id e r a b le p o r tio n o f th e w estern p a r t o f
Montana, so t h a t th e rem aining farm and g r a c in g la n d s co u ld no doubt be
e f f i c i e n t l y a d m in istered from th e S t a t e Land O f f ic e .
The G reat P la in s
8 3 / B ie n n ia l R ep ort, Commissioner o f S t a t e la n d s and In v estm e n ts,
W
.
Qij,/ B ie n n ia l R eport, Commissioner o f S t a t e Lands and In v estm e n ts,
1932. page 8-9.
)
r e g io n , o a o p r is in g ap p ro x im a tely tw o -th ir d s o f th e S t a t e , i s e n t i t l e d t o
some c o n s id e r a t io n .
I t i s u n f a ir and d is c r im in a to r y t o r e s id e n t s o f t h i s
p a r t o f th e S t a t e t o a s k them t o sa k e th e t r i p t o H elen a t o tr a n s a c t t h e i r
lan d b u sin e ss#
Mr. Brandjord says*
" E xperience h as abundantly dem onstrated t h a t we
cannot alw ays ren d er s a t i s f a c t o r y s e r v ic e t o p rosp ec­
t i v e l e s s e e s through corresp on d en ce a lo n e . The in f o r ­
m ation a s t o what la n d s a re a v a il a b l e f o r l e a s i n g , th e
amount o f r e n t a ls and th e term s and c o n d itio n s on w hich
th e la n d s may b e le a s e d , sh ou ld be more e a s i l y a v a il­
a b le ," 8 5 /
Fieldm en n ig h t w e ll be lo c a te d a t su ch c e n te r s a s W olf P o in t , C h e ste r,
M iles C ity , B ig Timber and L ew istow n.
A t suoh w id e ly s c a t t e r e d p o in ts
th e y would be a v a ila b le t o g iv e in fo rm a tio n on l e a s e s and s a l e s .
They
co u ld c o n ta c t p r o s p e c tiv e l e s s e e s and oou ld b e in stru m en ta l i n b r in g in g
c o n s id e r a b le a d d it io n a l a cre a g e under l e a s e .
They co u ld be e s p e c i a l l y
e f f e c t i v e in making c o l l e c t i o n s in th e f a l l , ch eck in g on c ro p -sh a re l e a s e s ,
and g e t t i n g la n d under l e a s e b e fo r e o p e r a tio n # s t a r t i n th e s p r in g .
C o n s o lid a tio n Of iIc ld in g s
A ccord in g t o th e o r ig in a l p a t t e r n o f d i s t r ib u t io n , Montana sh ould own
s e c t io n s 16 and 36 i n ev er y tow nsh ip i n t h e s t a t e .
However, s q u a t t e r s ,
h o m estead ers, In d ia n R e se r v a tio n s and o th e r a g e n c ie s have broken th e u n i­
fo r m ity o f th e p a t t e r n .
L ieu landa w ere s e l e c t e d , p a r ts o f s e c t io n s s o ld ,
m ortgage landa a c q u ir e d , so t h a t tod ay th e s t a t e lan d h o ld in g s a r e w id e ly
s c a t t e r e d i n t r a c t s o f v a ry in g s i s e s .
th e le a s i n g o r s a l e o f i t s la n d s .
The S t a t e has few a lt e r n a t i v e s in
I t i s u s u a lly a l e s s e e ' s m arket.
"Some
8 $ / B ie n n ia l R ep ort. Commissioner o f S t a t e Lands and In v estm e n ts, 19 3 0 ,
page TE.
-1 0 7 p r lv a t e range can be need e f f e c t i v e l y w ith o u t supplem entary p u b lic range
b n t l i t t l e p u b lic range can be u sed w ith o u t supplem entary p r iv a t e range." 8 6 /
Very few t r a c t s o f s t a t e la n d can be c o n sid ered an econom ic u n it i n
s e lv e a and c o n se q u e n tly must be le a s e d t o some one t o supplem ent e x i s t i n g
u n its .
I f many o f th e s e t r a c t s e o u ld be c o n s o lid a te d i n t o u n it s o f con­
s id e r a b ly la r g e r a c r e a g e , th e o p p o r tu n itie s f o r le a s in g w ould, no dou bt,
be g r e a te r .
L eg a l p r o v is io n s f o r th e accom plishm ent o f t h i s s te p a re a l ­
ready a v a il a b l e . —•Z/' The S t a t e Board o f Land Commiasloners i s empowered
t o exchange la n d s w ith th e "U nited S t a t e s o r any departm ent th e r e o f”
p rovid ed t h a t th e S t a t e o f Montana s h a l l " r e c e iv e la n d s o f eq u a l a rea and
n o t i n f e r i o r i n v a lu e" .
The S t a t e o f Wyoeelng has worked toward a c o n s o lid a t io n o f i t s la n d s
and a cco rd in g t o d in if r o d S . K ie n s ls , Deputy Commissioner o f Ih ib lio
and Farm L oans, th e p r a c t ic e h as r e s u lt e d i n b r in g in g a g r e a t e r acrea g e
under l e a s e .
He w r i t e s i
. . . wWe have c o n s o lid a te d our lan d in t o u n it s
t h a t we have f e l t were la r g e enough t o keep them
,from b e in g v a c a n t. I n some c a s e s , we h a v e, w ith
th e c o n se n t o f th e l e s s e e , tra d ed I s o la t e d f o r t y
and e ig h t y more t r a c t s f o r la n d s a d jo in in g our
S t a t e la n d s . W hile we can n e v e r , i n a l l p r o b a b ili­
t y , have e v e r y a c r e le a s e d , we have reduced our
v a ca n t a crea g e from 3 8 0 ,0 1 5 .3 8 a c r e s a s o f Septemb­
e r 3 0 , 1938 t o 193*061**l b s o r e s a s o f September
3 0 , 19W)* T h is r e d u c tio n i n v a ca n t la n d s i s d u e,
we f e e l , m ain ly t o our adherence t o th e p o lic y o f
c o n s o lid a t io n in t o la r g e r u n i t s . Our d i f f i c u l t i e s
8 6 / C law son, M arion, The Admi n i s t r a t i o n o f F ed era l Sange Lands, Quart­
e r l y Jou rn al o f E conom ics, V o l. L I I I , May, 1 9 3 9 .
8 7 / B ev ise d Codes o f Montana, 1935»
C hapter 16 0 , S e c t io n 1 9 0 5 .1 9 .
-1 0 6 I n th e p o l i c y have been few and e a s i l y a d ju s te d ,
and our l e s s e e s a r e w e ll p le a s e d t o be a b le t o
s e c u r e s o l i d w orkable u n it s i n p r e fe r e n c e t o
s c a t t e r e d f o r t y and e ig h t y a c r e t r a c t s ." 8 8 /
The s t a t e la n d s i n Montana a re i n la r g e r t r a c t s than th o s e m entioned
and y e t c o n s id e r a b le advan tage co u ld a ccru e t o th e S t a t e by c o n s o lid a t in g
a cre a g e w herever p o s s i b l e .
Prompt C a n c e lla tio n Of L eases
As a lr e a d y in d ic a t e d , l e a s e s t h a t a r e made i n March and A p r il w i l l
r etu rn 100 p er c e n t o f t h e i r v a lu e w h ile f o r ea ch su cceed in g month, th e
r e n t a ls w i l l b e in c r e a s in g ly l e s s .
I t has a l s o been shown t h a t land n o t
le a s e d b e fo r e th e b e g in n in g o f s p r in g o p e r a tio n s has s l i g h t chance o f b e in g
le a s e d f o r t h a t y e a r .
A c c o r d in g ly , i f s t a t e la n d s a re t o r e tu r n t h e ir
naaclMua revenue th e y must be k ep t le a s e d .
Pieldm en w orking throughout th e
w in te r c o u ld d eterm in e t o q u it e an e x t e n t j u s t what l e a s e s w ere goin g t o
be r e lin q u is h e d and f in d new l e s s e e s b e fo r e s p r in g .
I f t h a t procedure
w ere fo llo w e d , i t would red u ce th e amount o f r e n t a ls now l o s t b ecau se o f
f a i l u r e t o ! m e d i a t e l y make a v a ila b le t o new l e s s e e s , l e a s e s t h a t have b een
dropped.
However, i f proper d ili g e n c e In t h i s r e s p e c t d o e s n o t accom p lish
th e d e s ir e d r e s u l t , i t would seem a d v is a b le t o s e t th e d a te o f d elin q u en cy
ahead from February 2 0 , p o s s ib ly a s much a s two m onths, s o t h a t a lo n g er
p e r io d o f tim e would be a v a ila b le t o g e t a l l la n d s under le a s e b e fo r e sp r in g
o p e r a tio n s .
O f f ic e Procedure
The Land O f f ic e card a s i l l u s t r a t e d i n Appendix I i i s t h e most
0 0 / L e tte r d a ted A p r il I ) , 19^ 2.
- 109f r e q u e n tly c o n s u lte d o f f i c e r e c o r d .
I t p r o v id e s m w e a lth o f in fo rm a tio n
p e r ta in in g t o th e s e c t i o n i n q u e s tio n cn ee th e lo c a t io n o f th e t r a c t i s
d eterm in ed .
In q u ir y a s t o th e John Jcraes le a s e i s co u n tered w ith a q ues­
t i o n su ch a s wIHhat i s th e d e s c r ip t io n o f h i s la n d Tw
I f t h e d e s c r ip t io n i s
n o t r e a d i ly a v a il a b l e , i t i s th en a problem o f s e a r c h in g th e le a s e books
u n t i l some c lu e i s o b ta in ed a s t o th e le a s e number o r d e s c r ip t io n b e fo r e
any in q u ir y can be answ ered.
Should th e in q u ir e r g iv e t h e le g a l d e s c r ip ­
t i o n , th e card may n o t b e in th e f i l e , a s sometime* h ap pens, th e n i t a g a in
becomes a e a s e o f ch eek in g f o r th e name under w hich th e land i s le a s e d .
I t q u it e f r e q u e n t ly happens t h a t a l e s s e e w i l l send h i s rem itta n c e i n
payment f o r h ie l e a s e in th e form o f a ch eck o r bank d r a f t w ith n o th in g t o
in d ic a t e h ie l e a s e number o r even h ie p o s t o f f i c e .
Sometimes th e postm ark
s e r v e s a s a g u id e , o th e r t im e s , i t i s no h e lp w h a tev er.
T h is means t h a t
th e c a s h ie r must go th rou gh t h e Index o f ea ch o f th e c u r r e n t le a s e books
u n t i l th e l e a s e number i s fo u n d .
Under th e f i v e y ea r l e a s e s o f th e p a s t ,
t h a t m ight n e c e s s i t a t e s e a r c h in g a s many a s f i v e books* under th e t e n y e a r
l e a s e s new b e in g w r it t e n , i t m ight n e c e s s i t a t e se a r c h in g t e n y ea rs* r e c o r d s,
f o r a le a s e i s recorded o n ly on th e d a te on w hich i t i s f i l e d .
T h is pro­
ced u re i s n o t o n ly tim e consum ing, b u t i t c a u s e s n e e d le s s w ear and t e a r on
th e c o s t l y le a s e b o o k s.
I t would seem t h a t a card in d ex sy stem o f names o f l e s s e e s would b e a
v a lu a b le a d d it io n t o th e f i l e s o f th e o f f i c e .
s p a c e s f o r r e c o r d in g th e l e a s e numbers.
Such a card w ould p rovid e
Viihen a l e a s e i s f i l e d , a card
would be made on w hich i s record ed th e l e a s e number.
When th e le a s e
e x p ir e s o r i s c a n c e lle d , a l i n e i s drawn through th e number and th e new
110-
BiodEMir r e c o rd ed .
Suoh a system would have th e f o llo w in g ad van tages t
I , - I t would p ro v id e a c o n v e n ie n t record o f le s s e e s *
2 * - I t would p ro v id e a two way In d ex , fu r n is h in g In­
q u ir e r s names a s w e ll a s d e s c r ip t io n s .
I t would sa v e w ear and t e a r on c o s t l y le a s e b o o k s.
I4. . - I t would be more co n v en ie n t f o r th e c a s h ie r t o
d eterm in e and id e n t i f y r e m itta n c e s w ith o u t h avin g
t o sea rch s e v e r a l b o o k s.
5 . - Qnoe a card was made i t would s e r v e f o r many y e a r s .
Suoh a card f i l e would have b een c o n v e n ie n t in th e p a s t f o r f i v e y ea r
le a s e s .
I t w i l l be a lm o st a n e c e s s it y i n th e fu tu r e f o r t h e 10 y ea r l e a s e s
now b e in g w r it t e n .
An U n q u estio n a b le Record I s D e s ir a b le
A f te r land a p p r a is a ls have been e s t a b lis h e d a t c o n s id e r a b le exp en se
and fo r m a lly approved by th e S t a t e Board o f Land C arol s e io n e r e , th e y are
e n te r e d i n p e n c il upon th e o f f i c i a l c a r d s .
These ca rd s a r e th e m ost f r e ­
q u e n tly c o n s u lte d rec o rd s and a r e th o s e from which l e a s e and s a l e s v a lu e s
a re d eterm in ed .
In some o a s e s when a new a p p r a is a l I e e n te r e d , th e o ld e r
e n t r ie s a r e n o t e r a s e d .
A sid e from th e p o s s i b i l i t y o f h avin g a p p r a is a ls
changed in d is c r im in a t e ly , th e r e i s a l s o some c o n fu sio n a s t o which i s th e
c u r r e n t o f f i c i a l a p p r a is a l.
I t would seem d e s ir a b le t o have a l l a p p r a is a ls e n te r e d w ith an o f­
f i c i a l stamp on w hich th e d a te o f ap proval by th e board i s in d ic a t e d .
Such a p rocedure would e lim in a t e any q u e s tio n a s t o th e a u t h e n t i c it y o f
th e a p p r a is a l.
-111-
Tho M erit S y s tr a
A e c i t l s e n s o f th e S t a t e , we e l e c t a c h i e f e x e c u t iv e t o a d m in iste r
th e a f f a i r e o f S t a t e .
We pay f o r sound judgem ent and e x e c u t iv e a b i l i t y ,
y e t through our " s p o ils " system demand much o f our e x e c u tiv e * e tim e and
en ergy i n in te r v ie w in g and a p p o in tin g p erso n n el f o r v e r y m inor p o s i t i o n s .
Hot o n ly do we hamper him i n h ie e f f o r t s t o g iv e u s a sound c o n s t r u c t iv e
a d m in is tr a tio n , b u t we d is r u p t th e r o u tin e and e f f i c i e n c y o f many d ep a rt­
m ents and o f f i c e s ,
A sound c i v i l s e r v ic e o r m e r it system sh ou ld be in au gu rated whose
fu n c tio n i t would be t o s e t up sta n d a rd s f o r th e d if f e r e n t p o s i t i o n s , ex­
amine a p p lic a n t s , and c e r t i f y them t o th e c h i e f e x e c u tiv e when v a c a n c ie s
occur.
Hot o n ly a re th e p e o p le who ren d er e f f i c i e n t and c o n s c ie n tio u s
s e r v ic e e n t i t l e d t o s e c u r it y o f te n u r e , b u t such s e c u r it y i s n e c e s s a r y t o
p r o t e c t em ployees a g a in s t p o l i t i c a l in t e r f e r e n c e .
I t seem s p a r tl o u l a r l l y d e s ir a b le t h a t stan d ard s o f e d u c a tio n and t r a i n ­
in g b e e s t a b lis h e d and t h a t th e men who a re e n tr u s te d w ith e v a lu a tin g s t a t e
la n d s be exam ined a s t o t h e i r q u a l i f i c a t i o n s .
i t s w eak est l i n k .
A c h a in i s no str o n g e r than
Ho m a tter how c o n s c ie n t io u s and e f f i c i e n t th e adm inis­
t r a t i v e o f f i c e r s and p erso n n el o f th e S t a t e Land O f f ic e may b e , i f t h e i r
rec o rd s a r e based on f a u l t y and ir r e s p o n s ib le a p p r a is a ls , t h e i r e f f i c i e n c y
i s a l l f o r n a u g h t.
The men who a r e e n tr u s te d w ith t h i s work sh ould have a knowledge o f
s o i l s , b o ta n y , range management and s u r v e y in g .
They sh ou ld be a b le t o
m eet th e p u b lic , r e p r e se n t th e S t a t e i n a c r e d it a b le manner, and be a g i l e
enough t o c a r r y on t h e i r d u t ie s under any c ircu m sta n ce s.
-1 1 2 .
A S lid in g S o a la Qf H entala
Aa th e S t a t e o f Montsma grows o ld e r In y e a r s , th e r e h as came a r e a l i s a ­
t i o n e f th e e r r a t i c n a tu re o f th e oIim a te o f th e G reat P lsd n s a r e a .
Out
o f t h i s r e a l i s a t i o n have ooaao adapted d rought r e s i s t a n t s t r a in s o f p la n t
l i f e , adapted m achinery and o f more r e c e n t y e a r s , adapted c r e d i t .
T his
a d a p tio n has emerged from a p u r e ly c lim a t ic a s p e c t t o encompass th e econ ­
omic a s p e c t a s w e l l ,
P C rity payments and crop in su ra n ce o f th e A g r ic u ltu r a l A djustiaent Ad­
m in is t r a t io n a r e in d ic a t io n s o f th e tr e n d , a s sure S o c ia l S e c u r ity and o ld a ge b e n e f i t s o f our s o c i a l program.
A g e n e le s e x te n d in g in te r m e d ia te and
lo n g -term c r e d i t h a v e, o f r e c e n t y e a r s , shown a d is p o s i t io n t o lig h t e n
payments d u rin g p e r io d s o f econom ic s t r e s s and d rougth y e a r s .
H ow ever,in
s o d o in g , th e y e x p e c t t h a t payments w i l l be e q u a lis e d d u rin g more p rosp er­
ous t im e s .
I f th e S t a t e Board o f Land Coasaiaeio n ers had been empowered t o reduce
r e n t a ls d u rin g th e econom ic d e p r e s s io n o f 1932, th e problem o f e r a s in g
r a t e s on s t a t e la n d s would n ev er have been ta k en b e fo r e th e l e g i s l a t u r e .
O b v io u sly , i f th e y were empowered t o reduce r e n t a ls d u rin g econom ic d ep res­
s io n s th e y sh ou ld be empowered t o r a i s e them d u rin g tim e s o f com parative
p r o s p e r ity i n ord er t o m a in ta in a f a i r a v erage r e n t a l.
However, th e m a tter
o f making ad ju stm en ts on a s l i d i n g s c a le o ou ld n o t be l e f t e n t i r e l y t o th e
d i s c r e t i o n o f th e B oard.
They would be su b je c te d t o c o n s ta n t p ressu r e by
groups se e k in g t o f u r t h e r t h e i r own i n t e r e s t s .
There m ust be some in d ic a t ­
o r , l e s s s u b je c t t o change th a n mere p u b lic o p in io n o r th e o p in io n o f any
grou p .
113-
Lambe, w ool and c a t t l e a re th e p r in c ip a l so u rce o f incom e o f s to c k wen who u s e t h e s t a t e la n d s o f Montana.
Aa in d ex f ig u r e o f t h e s e combined
com m odities co u ld be determ ined f o r some p e r io d c o n sid e r e d norm al.
T his
combined in d ex f ig u r e co u ld be u sed a s a b a se p r ic e upon w h ich t o b ase
c a l c u la t io n s f o r fu tu r e a d ju stm e n ts.
A f lu c t u a t io n o f perhaps 20 p er c e n t
e i t h e r above o r b elow t h i s in d ex m ight be c o n sid ered normal and any change
w ould have t o b e g r e a te r th a n t h i s b e fo r e a change i n g r a c in g r e n t a ls would
be p e r m itte d .
L et u s suppose t h a t th e F ed era l A g r ic u ltu r a l S t a t i s t i c i a n i n Uelemi
k ep t su ch an in d e x .
I f th e in d ex number dropped more th an 20 p er c e n t
b elow th e b a se f ig u r e and rem ained th e r e f o r t h e g r e a t e r p a r t o f th e y e a r ,
th e S t a t e Board o f Land Com m issioners would be empowered t o red u ce r e n t a ls
f o r th e su c c e e d in g y e a r and c o n tin u e th e r e d u c tio n s i n e f f e c t u n t i l th e
in d e x f ig u r e e a s e back i n t o l i n e a g a in .
L ik e w ise , th e y would be empowered
t o in c r e a s e r e n t a ls when t h e in d ex o f t h e s e th r e e com m odities reached a
p o in t 20 p er c e n t above th e b a s e .
I t must be r e c o g n ise d t h a t h ig h p r ic e s a lo n e do n o t mean p r o s p e r ity
i f c o s t s a r e h ig h compared t o r e c e i p t s .
The p r ic e s o f s h e e p , w ool and
c a t t l e soared t o g r e a t h e ig h t s i n 1 9 1 9 -2 0 , b u t a lo n g w ith t h e s e p r ic e s w ent
unpreced en ted f e e d and wage c o s t s .
Any in d ex number, t o be r e a l l y a c c u r a te ,
w ould have t o be w eig h ted w ith such o o s t it e m s .
T h is ty p e o f s l i d i n g s c a le has p o s s i b i l i t i e s o f s e r v in g a v e r y u s e f u l
p u rp o se.
L eg a l o b s t a c le s would have t o be overcome b u t such a p la n i s
d e s e r v in g o f c a r e f u l c o n s id e r a tio n i n th e fo r m u la tio n o f a sound p o lic y
f o r th e a d m in is tr a tio n o f s t a t e la n d s i n Montana.
APPEHDU I . -
FEDBHAL laud GHAHTS TO THE STATE CF MOBTAHA
PUBLIC SCHOOL GBANT ( S e e . 10 o f B M hH ne A c t)
T h is g r a n t embraces s e c t io n s 16 and 36
o f ea ch tow nsh ip o f t h e s t a t e o u ts id e
permanent n a t io n a l r e s e r v a t io n s , and
makes p r o v is io n f o r s e l e c t i n g l i e u la n d s
f o r such o f t h e s e s e c t io n s t h a t have
b een l o s t t o th e s t a t e .
T o ta l g ra n t ab ou t
5 ,1 8 8 ,0 0 0
STATE UBIVEHSITT OBANTS
S e c tio n lit o f E n ab lin g A et g ra n ts
s e v e n ty -tw o s e c t i o n s , t o be s o ld f o r
n o t l e s s th a n $10 p er a c r e , th e p ro ceed s
t o c o n s t it u t e a permanent fu n d , " th e
incom e t h e r e o f t o be used e x c l u s i v e ly
f o r u n iv e r s it y p u rp oses i" t o t a l gran t
1|6,080
The A et o f C ongress approved March 9 ,
190U, (3 3 S t a t . 6 I1) g r a n ts th e so u th
h a l f and th e so u th h a lf o f th e n o rth
h a l f o f S e c . 2 6 , Twp. 13 H, o f Rge.
19 W. a d jo in in g t h e o r i g in a l campus
" fo r u n iv e r s it y p u rp oses 1"
I18O
The Aot o f C ongress o f March 3» 1905#
(3 3 S t a t • L. 108 0 ) g r a n ts 160 a c r e s f o r
a b i o l o g i c a l s t a t i o n ; t h i s la n d h as been
s e l e c t e d on B lu e Bay on th e F la th ea d
Lake.
160
T o ta l
1*6,720
115-
AORICULTXJHAL COLLEGE GHAUTS
S e e . 16 o f E n ab lin g A et G rants
(T h is i s r e a l l y th e M e r r ill Grant
made a p p lic a b le t o Montana)
90,000
S e e . 17 o f E n ab lin g Aot makes an
a d d it io n a l gran t o f
50,000
11*0 ,0 0 0
T o ta l
STATE SCHOOL OF IlIHES
100,000
S eo. 17 E n ab lin g Aot
STATE NORMAL SCHOOLS
100,000
S e e . 17 E n ab lin g Aot
HBFOHM SCHOOL
50,000
S e e . 17 E n ab lin g Aot
DEAF AHD DUMB ASYLUM
50,000
S e e . 17 E n abling A ot
PUBLIC BUILDINGS AT THE STATE CAPITOL
S e e . 12 E n ab lin g Aot
52,000
S e e . 17 E n ab lin g Aot
150,000
T o ta l
T o ta l o f a l l g r a n ts
1 8 2 ,0 0 0
5,856.720
116
APPENDIX IX .
CROSS INCOME AND OPERATING COSTS OF MONTANA
DRY FARM LANDS, 600 ACRE UNITS
A lte r n a te Sum m er-fallow Crop System
13 b u .
Gross income per crop a c r e .
# .7 0 per bu.
O perating c o s t s per a c r e .
H ired la b o r
G a so lin e a t # . l 6 per g a l .
O il ft .2 0 per q u art
R ep airs on equipm ent
Taxes on equipment
H auling f u e l and s u p p lie s
Farmer’ s errands
Seed per a c r e
H auling g r a in
M isc e lla n e o u s
D epreo. on equipm ent
I n t e r e s t on M achinery
Taxes on land (2 y e a r s )*
O p eration s la b o r income
#600 * 300 a c r e s
T o ta l c o s t per a c r e (2 y e a r s )
Net income t o lan d (2 y e a r s )
Met income t o land (ea ch y ea r)
16 b u .
19 bu
# 9 .1 0
# 1 1 .2 0
#13.30
.1 0
1 .0 8
.2 0
.6 6
.1 0
.5 6
.2 9
.70
.65
.25
1.5 5
.Uo
.20
.1 0
1 .0 8
.2 0
.6 6
.1 0
.5 6
.2 9
.7 0
.8 0
.2 5
1.53
.Uo
.50
.1 0
1.08
.2 0
.6 6
.1 0
.5 6
.2 9
.7 0
.95
.25
1.53
.Uo
.8 0
2 .0 0
8 .6 2
.W
.2U
2 .0 0
9 .0 7
2 .1 3
1 .0 6
2 .0 0
9 .5 2
3 .6 1
1.80
• Approximate based on 60 m i l l s (approxim ate s t a t e a v e r a g e )
v a lu a t io n based on th e above p r o d u c t iv it y v a lu a t io n s .
On a ta x a b le
APPENDIX i l l *
,Tup.
Srr.
STATE LAND RECORD CARD
Hg.
Grant
C o u n ty
SA LE S
Lfw a* Mvutul
SoM
O FFEK Eh
P U B L IC H A L E
n r K. o f W uy
F fv Paiil A pplieatioee to Rny
S p e c ia l
R e p o rt N o.
6
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P
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Le a se
A p p lie a tio a s
M IW E L L A N EO FS
APPENDIX i v
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G ra in .
•119-
APPEHDIX ▼
H atee
A dw ertleem eat Movawber 19Ul» A w erlean C a t t le Producer
S a le o f G raelag P r lw lle g e a
S e a le d p ro p o ea le f o r g r a e la g p r i v i l e g e s on a p p roxim ately
1)1(0,000
a c r e s o f g r a e la g la n d s o f th e P o r t Belknap In d ia n R e s e r v a tio n , under th e
p erm it p la n m i l l be r e c e iv e d a t th e o f f i c e o f th e S u p erin ten d en t u n t i l
ZtOO PeMe on December I , I fX d f o r th e th r e e y e a r p erio d commencing May I ,
19U2 and
e x p ir in g A p r il
30, lXt5«
G raslng la n d s c o n s i s t o f e ig h t e e n w e ll g r a sse d u n it e v a r y in g from
1 0 ,0 0 0 t o 30,000 a c r e s w ith c a r r y in g c a p a c i t i e s o f 1(00 t o 2 ,0 0 0 oow u n it s
y e a r - lo n g , r a t i o o f c a t t l e t o sheep i s one t o f o u r .
p r i v i l e g e s t o h ig h e s t b id d e r .
Proposed t o award
Minimum r e n t a l i s 12 c e n t s per a c r e .
P le a s e communicate w ith S u p erin ten d en t f o r c o p ie s o f a d v e r tis e m e n t, des­
c r i p t i o n o f r a n g e s, maps, and a l l o th e r in fo r m a tio n .
P o r t Belknap In dian R eserv a tio n
Harlem
120BIBLIOGRAPHT
L lterm tu re C ited and C onsulted
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(2 )
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(U )
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A
N378
M963s
cop. 2
M urray, Henry T.
S ta te lan d management
in Montana