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This measure proposes in substance that any lands within the exterior boundaries of the Malheur National Forest or contiguous thereto may be accepted by the Secretary of the Interior and in exchange therefor the Government will give equal values of national forest land or timber in the State of Oregon, the value in each instance to be determined by the Secretary of Agriculture and to be acceptable to the owners as fair compensation. Timber given in such exchanges shall be cut and removed under the direction of the Secretary of Agriculture. The lands conveyed to the United States would become parts of the Malheur National Forest.

Scattered throughout the national forests there are many tracts of naturally forested land which would serve their best uses under Government administration. These lands are chiefly valuable for timber production or watershed protection. They were acquired by the private owners either by purchases from the State of its grants of sections 16 or 36, which were made for school purposes, or were obtained from the Government under the public-land laws prior to the time the national forest was established. Along the edges of the forest there are occasional timbered tracts within approximately 2 miles of the boundaries which were entered and patented before the forest was created. When the forest boundary was established, the line was so drawn as to leave them out.

In the opinion of the department, the objects for which this national forest was established can be much more completely and satisfactorily accomplished if legislation is enacted authorizing the return to the Government of this scattered private timberland within the forest or within its logical boundaries. It would, therefore, be in the public interests to have H. R. 10185 become law. It is very similar to several bills applicable to other national forests, which have received favorable consideration by your committee and have been enacted, providing for exchanges on the basis of equal values. It is therefore recommended that the bill, with one slight modification, receive the favorable consideration of your committee.

It is believed that the words "contiguous to," which are found in the first part of line 6, page 1, are rather indefinite as to the extent to which lands might be offered in exchange for Government land or timber. It is suggested that in place of them your committee insert "within 2 miles of," which would enable the Government to consolidate with the existing forest most of the lands outside the present exterior boundaries, as well as the scattered lands within them, which should be administered for national forest purposes. As thus amended, the department recommends that the bill be enacted. Very truly, yours,

C. W. PUGSLEY, Acting Secretary.

DEPARTMENT OF THE INTERIOR,
Washington, February, 8 1922.

Hon. N. J. SINNOTT,

Chairman Committee on the Public Lands,

House of Representatives.

MY DEAR MR. SINNOTT: I am in receipt by your reference of H. R. 10185 entitled "A bill authorizing exchange of lands within or contiguous to the Malheur National Forest, in the State of Oregon, and for other purposes.

The words "or contiguous to" are so indefinite as to render them objectionable from an administrative standpoint. If it is desired to exchange certain tracts adjoining the forest, the description of such tracts should be furnished for report and recommendation. I therefore recommend that the words "or contiguous to," lines 5 and 6, page 1, be omitted and that the title of the bill be changed accordingly.

Other than above, I have no objection to the enactment of this proposed legislation

in the law.

Respectfully,

E. C. FINNEY, Acting Secretary.

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FEBRUARY 22 (calendar day, FEBRUARY 28), 1922.-Ordered to be printed.

Mr. PHIPPS, from the Committee on Appropriations, submitted the following

REPORT.

[To accompany H. R. 10101.]

The Committee on Appropriations, to which was referred the bill (H. R. 10101) making appropriations for the government of the District of Columbia and other activities chargeable in whole or in part against the revenues of such District for the fiscal year ending June 30, 1923, and for other purposes, reports the same to the Senate with various amendments, and presents herewith information relative to the changes made:

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METHOD OF PAYING THE EXPENSES OF THE GOVERNMENT OF THE DISTRICT OF COLUMBIA.

The Committee recommends that the following language be stricken from the bill:

That 40 per centum of the following sums, respectively, is appropriated out of any money in the Treasury not otherwise appropriated, and 60 per centum out of the revenues of the District of Columbia, for the government of the District of Columbia and other activities chargeable in whole or in part against the revenues of such District for the fiscal year ending June 30, 1923 only, namely:

If the estimated net revenues of the District of Columbia for the fiscal year ending June 30, 1923, are not sufficient to meet the proportion of the appropriations for that fiscal year charged against such revenues by this and all other acts, or which may be estimated to be charged against such revenues by acts that may be approved during such fiscal year, the Commissioners of the District of Columbia shall increase the rates of taxation on real estate and tangible personal property sufficiently to make up the difference: Provided, however, That such rates of taxation shall in no event be less than 14 per centum nor more than 2 per centum.

And in lieu thereof recommends the following:

That the general expenses of the District of Columbia shall be chargeable to and paid out of the Treasury of the United States.

For the fiscal year 1923 and annually thereafter the rate of taxation in the District of Columbia shall be fair and reasonable, and the revenues derived from this source shall be covered into the Treasury of the United States as miscellaneous revenue.

Until otherwise provided by law the rate of taxation in the District of Columbia on tangible personal property and real estate shall be $1.75 per hundred, and other taxes shall be as now provided.

The appropriation of an amount equal to the unexpended or unappropriated surplusses of the District revenue shown by the reports of the commissioners to have been heretofore accumulated and deposited in the Treasury of the United States in addition to the estimates submitted for the next fiscal year is hereby authorized, and hereafter there shall be no limit upon the amount of the estimates to be submitted to Congress to meet the annual needs of the District, any law to the contrary notwithstanding.

In fixing the value of improvements on any lot or tract of real estate for the purpose of taxation the first $2,000 of value thereof shall be exempt, and shall not be taken into consideration in fixing such value.

The changes in the amounts of the House bill recommended by the committee are as follows:

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Dunbar High School, land....

Armstrong Manual Training School, land and building...............

Total, public schools..

140,000

140,000

25,000

50 000

150,000

616, 180

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Special services in detection of adulteration of drugs and foods....

100

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Aid to persons of moderate means suffering with tuberculosis..............

3,000

Total, health department.

14, 850

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