Mr. LOOMIS. We want the hearings, of course. I appreciate the opportunity of having had so much time given to me, more than I expected.

The CHAIRMAN. Well, we certainly appreciate having you come, Mr. Loomis, and we would be glad to have Mr. Atkeson or anyone else from the grange come if they have really made a study of the subject and have a pronounced opinion.

(On March 9, 1926, Senator Phipps, of Colorado, introduced S. 3498, as follows:)

[S. 3498, Sixty-ninth Congress, first session]

A bill to promote the development, protection, and utilization of grazing facilities on public lands, to stabilize the range stock-raising industry, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I. GRAZING ON PUBLIC DOMAIN

That the President of the United States, in order to promote the highest use of the public lands which, in the opinion of the Secretary of the Interior, are valuable for the production of livestock, is hereby authorized to establish from time to time, by proclamation, grazing districts, or additions thereto from any part of the public lands of the United States and Alaska not in substantial part irrigable at a reasonable cost from any known source of water supply, or suitable in their present condition for the production of crops other than native grasses and forage plants. Such grazing districts may be established when such action is formally requested by petitioners found by the Secretary to constitute a majority of the livestock growers who use for grazing purposes the public lands therein, but no grazing district shall be established until notice thereof has been published for 30 days in a paper of general circulation in the county or counties in which the lands are situated. From time to time, the Secretary of the Interior may exclude from such grazing districts any lands which he determines are no longer valuable for grazing purposes or have become more valuable for other purposes and substitute other grazing lands of equal area therefor.

SEC. 2. The Secretary of the Interior shall execute, or cause to be executed, the provisions of this Act under rules and regulations to be prescribed by him; shall appoint all officers necessary for the administration and protection of grazing districts established under the authority herein provided; and shall issue or cause to be issued permits to graze livestock thereon, which permits shall be for appropriate seasons for use within a period of not more than 10 years upon the payment annually of reasonable fees based upon the actual cost of administration, plus a margin of not exceeding 50 per cent for such permits: Provided, That in the award of grazing privileges preference shall be given, when practicable, to homesteaders and to present occupants of the range who own improved ranches or who have provided water for livestock grazed upon the public lands: Provided further, That the holder of a permit under this act, who has complied with its terms, shall, on the expiration thereof, be entitled to preference in the reawarding of the grazing privileges included in such permit: Provided further, That no permits shall be issued which shall entitle the permittee to the use of any buildings, corrals, reservoirs, or other improvements owned or controlled by a prior occupant until he has paid such prior occupant a reasonable pro rata value for the use of such improvements. If the parties interested can not agree, then the amount of such payment shall be determined under the rules and regulations of the Secretary of the Interior. Fences, wells, and other improvements necessary to the care and management of the permitted livestock may be constructed on the public lands under permit issued by authority of the Secretary.

SEC. 3. The Secretary of the Interior may permit, under regulations to be prescribed by him, the free grazing of domestic livestock, and provide, so far as authorized by existing law or laws hereinafter enacted, for the use of timber, stone, gravel, clay, coal, and other deposits by bona fide settlers, miners, residents, and prospectors for mineral, for firewood, fencing, buildings.

mining, prospecting, and other domestic purposes within areas subject to the provisions of this act. During periods of range depletion, due to severe drought or other natural causes, or in case of a general epidemic of disease, during the life of the permit or lease, the Secretary of the Interior may, and is hereby authorized in his discretion, to remit, reduce, refund, in wholeor in part,, or authorize postponement of payment of grazing fees, so long. as the emergency exists.

SEC. 4. Twenty per cent of the moneys received from each grazing district during any fiscal year shall be paid at the end thereof by the Secretary of the Treasury to the State or Territory in which said grazing district is situated, to be expended in equal proportions as the State or Territorial legislature may prescribe for the benefit of public schools and maintenance work on public roads of the county or counties in which the grazing district is. situated: Provided, That if any grazing district is in more than one State or Territory or county the distributive share to each from the proceeds of said district shall be proportional to its area therein; and that the remainder of all moneys received under the authority of this act on account of the disposal of resources from such grazing districts shall be deposited in the Treasury of the United States as miscellaneous receipts.

SEC. 5. Under rules and regulations prescribed by him, the Secretary may enter into cooperative agreements with any State, corporation, or individual owning private lands lying adjacent to or included within the grazing districts authorized to be established by this act, to undertake the grazing administration of such areas and their improvement as in his judgment may be necessary to carry out the purposes of this act, which rules and regulations shall have the same force and effect as other rules and regulations prescribed. by him for the control of the grazing districts hereby established.

SEC. 6. Nothing herein contained shall restrict the use of any water on public lands within such grazing districts for mining, milling, domestic, or irrigation purposes, or the granting of easements or permits therefor under existing laws; or ingress or egress over the public lands in said district for all proper and lawful purposes, including the use and enjoyment of rights: and property or prospecting, locating, developing, entering, leasing, or patenting the mineral resources of such districts under laws applicable thereto; or the movement of livestock from one locality to another over established driveways or under such restrictions as are necessary to protect the users of the land which will be driven across: Provided, That such persons comply with the rules and regulations governing such grazing district or districts.

SEC. 7. The Secretary is hereby authorized, in his discretion, to éxamine and classify, within grazing districts, any lands which are irrigable from any known source of water supply or are valuable and suitable for the production of crops other than native grasses and forage plants, and to open such lands to homestead entry in tracts not exceeding 320 acres in area; but such lands shall remain parts of the grazing district until patents are issued.

SEC. 8. The Secretary shall give reasonable notice by publication in newspapers of local circulation and fix a date which shall not be more than one year from the establishment of any grazing district, and after such date the pasturing of any class of livestock on public lands in said grazing district without permit or any other act in violation of the rules and regulations of the Secretary herein authorized to be provided, shall be punishable by a fine of not more than $500 or by imprisonment for not more than one year, or by both such fine and imprisonment, in the discretion of the court.

SEC. 9. Where such action will promote the purposes of the grazing district or facilitate its administration, the Secretary be, and he hereby is, authorized in his discretion, to accept on behalf of the United States any lands within the exterior boundaries of a grazing district as a gift, or in exchange therefor may patent not to exceed an equal value of reserved or unreserved grazing land. SEC. 10. Where the objects and purposes of this act can be most effectively and economically accomplished by the addition to national forests of lands of the character herein described, the President may, upon the recommendation of the Secretary of the Interior, and he is hereby authorized, subject to the provisions of section 1 of this act, add such lands to national forests by proclamation or Executive order, and the lands so added shall be subject to all laws and regulations applicable to the national forests; or the President may, by proclamation or Executive order and upon the recommendation of the Secretary of Agriculture, eliminate lands now within the limits of national forests

chiefly valuable for grazing, and add such land to the grazing districts authorized under this act, and lands so added shall become public lands and subject to this act and to applicable laws and regulations for the disposal of public lands.

TITLE II.-GRAZING WITHIN NATIONAL FORESTS

SEC. 11. The Secretary of Agriculture may permit, under regulations to be prescribed by him, the free grazing of domestic livestock, and provided, so far as authorized by existing law or laws hereinafter enacted, for the use of timber, stone, gravel, clay, coal, and other deposits by bona fide settlers, miners, residents, and prospectors for mineral, for firewood, fencing, buildings, mining, prospecting, and other domestic purposes within any national forest.

SEC. 12. In the award of grazing privileges preference shall be given, when practicable, to homesteaders and to present occupants of the range who own improved ranches or who have provided water for livestock grazed within the national forests: Provided, That the holder of a permit under this act, who has complied with its terms, shall, on the expiration thereof, be entitled to preference in the reawarding of the grazing privileges included in such permit: Provided further, That no permits shall be issued which shall entitle the permittee to the use of any buildings, corrals, reservoirs, or other improvements owned or controlled by a prior occupant until he had paid such prior occupant a reasonable pro rata value for the use of such improvements. If the parties interested can not agree, then the amount of such payment shall be determined under the rules and regulations of the Secretary of Agriculture. Fences, wells, and other improvements necessary to the care and management of the permitted livestock may be constructed within the national forests under permit issued by authority of the Secretary.

SEC. 13. Prior to January 1, 1936, the fees for grazing livestock within any national forest shall not exceed the rate for the same or similar grazing privileges of the fees in effect within such forest for the calendar year 1924. Such fees shall be payable annually on the date fixed by the Secretary of Agriculture; be fixed with due regard to the economic value, seasonal or annual, of the grazing privileges, and in no case shall exceed such value; be moderate, with a liberal allowance for the restrictions and burdens imposed upon the grantee for the protection of the resources of the forest.

SEC. 14. Fifty per cent of the grazing fees received during any fiscal year from each national forest shall be paid to the State or Territory in which the national forest is located, to be expended in equal proportions for the benefit of the public schools and public roads of the county or counties in which such national forest is situated.

SEC. 15. If the Secretary of Agriculture determines such action to be for the public interest, by reason of (1) depletion or destruction of forage by brought or other cause beyond the control of the permittee, or (2) calamity or disease causing wholesale destruction of or injury to livestock he may grant an extension of time for making payment of any such grazing fee (under any contract or permit), reduce the amount of any such payment, or release or discharge the permittee from making any such payment.

SEC. 16. (a) The amount of reduction in grazing privileges that may be made for any purpose under any permit during the term thereof shall be stated in the permit, and no reduction in excess of such amount shall be made without the consent of the permittee.

(b) No reduction in the amount of grazing privileges granted by any permit shall be made during the term thereof for the purpose of redistributing or allotting to another person any portion of such grazing privilege.

TITLE III. STATE GRAZING BOARDS

SEC. 17. There is hereby authorized to be established for each of the States of Arizona, California, Colorado. Idaho, Montana, Nevada, New Mexico, Oregon. Utah, Washington, and Wyoming a board to be known as a State grazing board. Application for the establishment of such board shall be filed with the Secretary of the Interior and the Secretary of Agriculture by representatives of the livestock grazing industry of the State.

SEC. 18. A board shall be composed as follows:

(a) One member who shall represent the Department of the Interior and shall be an officer or employee of the United States serving in such department, to be appointed by the Secretary of the Interior.

(b) One member who shall represent the Department of Agriculture and shall be an officer or employee of the United States serving in such department, to be appointed by the Secretary of Agriculture.

(c) Two members who shall represent the livestock grazing industry, to be appointed by the Secretary of the Interior and the Secretary of Agriculture from persons whose names are submitted to them by livestock associations under regulations prescribed by the Secretaries.

(d) The four members thus appointed shall select a fifth member of the board, who shall represent the public. This selected member and his successors shall serve for a term of one year.

SEC. 19. The terms of office of the members first taking office after the enactment of this act, as designated at the time of their appointment. shall expire, one at the end of the second year, one at the end of the third year, one at the end of the fourth year, and one at the end of the fifth year, after the date of the enactment of this act. The term of office of each successor shall expire three years after the expiration of the term for which his predecessor was appointed; but any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be apointed only for the unexpired term of his predecessor. Any member in office at the expiration of the term for which he was appointed may continue in office until his successor takes office.

SEC. 20. The members representing the livestock raising industry and the public shall be residents of the State in which such board is established and shall serve without compensation except reimbursement for travel, subsistence, and other necessary expenses incurred in the performance of the duties vested in them by this act. The members representing the Department of the Interior and the Department of Agriculture shall serve without compensation except that received for their service in such department and reimbursement for travel, subsistence, and other necessary expenses incurred in the performance of the duties vested in them by this act.

SEC. 21. (a) Each board shall at least annually elect a member to act as chairman.

(b) Each board shall meet upon the call of the chairman or a majority of its members for the purpose of hearing, investigating, and deciding appeals at any place within the State.

(c) The times and places of the meetings of each board and of any member shall be prescribed by the chairman with a view to allowing reasonable opportunity to any person entitled thereto to appear at any such meeting with as little inconvenience and expense to such person as is practicable.

SEC. 22. (a) Vacancies in a board shall not impair the powers of the remaining members to execute the functions of the board, and a majority of the members shall constitute a quorum for the transaction of the business of the board.

(b) The chairman may at any time designate a member of the board to hear, investigate, and decide any matter before the board; but the action taken by such member, including any decision and findings of fact, shall not become the action, decision, or findings of the board until and as reviewed by the board.

SEC. 23. (a) A board shall have jurisdiction to hear and determine all matters referred to it by officers of the United States Government or grazing permittees relating to the grazing of livestock within the lands of the State for which such board was established.

(b) Opportunity to be heard upon any appeal and notice thereof shall be given by a board to any party entitled thereto. The hearings of a board shall be public and proceedings before the board shall be conducted in accordance with such rules of evidence and procedure as the board may prescribe. (c) A board shall in each case make a report in writing of its findings of fact, its decision, or any other action taken upon such case. A copy of its report shall be made of record by it and a copy shall be furnished to each party to the appeal; except that the board may omit the making of findings of fact if the appeal is dismissed by the board on its own motion or on the motion of any party to the appeal.

(d) Where appeal is taken from a decision of a board, as hereinafter provided, a copy of such report shall be submitted by the board to the Secretary to whom the appeal is taken.

SEC. 24. Any member of a board may administer oaths, examine witnesses, and require, by subpoena ordered by the board or a member thereof, and

signed by a member (1) the attendance and testimony of witnesses and the production of books, papers, documents, correspondence, and other evidencefrom any place within the United States at any designated place of hearing; (2) the taking of a deposition before any designated individual competent to administer oaths; (3) the answer in writing under oath to any question of fact submitted by the board or a member. In case of a deposition the testimony shall be reduced to writing by the individual taking the deposition or under his direction and shall then be subscribed to by the deponent.

SEC. 25. An appeal from a decision of the board upon any case under TitleI may be had to the Secretary of the Interior, and under Title II to theSecretary of Agriculture. The Secretary to whom such appeal is had may affirm, reverse, or modify such decision or remand the proceeding to the board for such action as such Secretary may direct.

TITLE IV. MISCELLANEOUS PROVISIONS

SEC. 26. Ten per cent of the total receipts from the grazing of domestic livestock on national forests and on the public domain during each fiscal year, including the fiscal year ending June 30, 1926, shall be available at the end thereof for expenditure by the proper department on the national forests or the public domain, as the case may be, within the States from which derived for the construction and maintenance of range improvements, eradication of poisonous plants, and the payment of expenses of grazing boards.

SEC. 27. When used in Title I the term " Secretary" means Secretary of the Interior, and in Title II means Secretary of Agriculture.

SEC. 28. The Secretary of the Interior and the Secretary of Agriculture shall furnish each board with such clerical assistance, stationery, and other sup-plies as are necessary for the efficient execution of the functions vested in such board by this act.

SEC. 29. All expenditures of the Secretary of Agriculture or the Secretary of the Interior on behalf of the board shall be allowed and paid upon presentation of itemized vouchers therefor signed by the chairman of the board and approved by the Secretary of Agriculture or the Secretary of the Interior, as the case may be.

(On March 22, 1926, Hon. Hubert Work, Secretary of the Interior, submitted the following report on S. 3498:)

Hon. ROBERT N. STANFIELD,

THE SECRETARY OF THE INTERIOR,
Washington, March 22, 1926.

Chairman Committee on Public Lands and Surveys,

United States Senate.

MY DEAR SENATOR STANFIELD: I am in receipt of your request for report on S. 3498, "To promote the development, protection, and utilization of grazing facilities on public lands,"

The measures contains many features which the department favors and contains others which it does not, particularly Title III, which proposes to establish State grazing boards. The reasons why this plan is not deemed desirable have been set out in various reports to your committee and at the hearings held some weeks ago.

After careful study by all concerned, a new draft of grazing bill was agreed upon by the Department of Agriculture, this department, and yourself, and its enactment was recommended by my letter to you of March 20, 1926. I therefore recommend that the draft so agreed upon be substituted for S. 3498. Very truly yours,

HUBERT WORK, Secretary.

After negotiations with the Department of Agriculture and the Department of the Interior, an amendment to S. 2584 was agreed to (see p. 618).

(On March 19, 1926, Hon. W. M. Jardine, Secretary of Agriculture, submitted the following letter to Hon. Robert N. Stanfield, chairman Committee on Public Lands and Surveys, United States Senate, agreeing to the amendment to S. 2584:)