y^ .M-A &<.> Cornell University Library HD 1206.U5C74 Laws relating to rural credits and land 3 1924 001 712 821 /-(■ |4th Congress ( 1st Session f SENATE I Document \ No. 351 LAWS RELATING TO RURAL CREDITS AND LAND REGISTRATION UNIFORM STATE LAWS RELATING TO SAME V STATEMENT ■ TO THE _^-, ',' ' ', CHAIRMAN OF THE SUBCOMMITTEE ON LAND MORTGAGE LOANS OF THE JOINT COMMITTEE ON RURAL CREDITS TRANSMITTING A COPY OF THE UNIFORM LAND REGISTRATION ACT AS ADOPTED BY THE TWENTY-FIFTH NATIONAL CONFERENCE OF COMMISSIONERS ON UNI- FORM STATE LAWS, HELD IN SALT LAKE CITY, UTAH, ON AUGUST 10 16, 1915 S. R. CHILD CHAIRMAN OF IHE COMMITTEE LIBRARY JAN ^- y-^^i / ' /.- DS^T- OF AGR'C ECOH, PRESENTED BY MR. FLETCHER February 25, 1916. — Referred to the Comraittee on Printing WASHINGTON GOVERNMENT PRINTING OFFlCi I9I6 REPORTED BY MR. FLETCHER. In the Senate of the United States, March 9, 1916. Resolved, That the manuscript submitted by the Senator from Florida (Mr. Fletcher) on February 25, 1916, entitled "Uniform State Laws Kelating to Rural Credits and Land Registration," being a statement submitted by S. R. Child, chairman committee on adoption of approval acts. of National Conference of Commissioners on Uniform State Laws, be printed as a Senate document. Attest : James M. Baker, Secretary. LAWS RELATING TO RURAL CREDITS AND LAND REGISTRATION. FEBUtJART 23, 1916. Senator H. F. Hoi,lis, Chairmcm of SubcormniUee on hand Mortgage Loans of the Joint Commdttee on.. Rural Credits, (Jongi'ess of the United States. Sir : As chairman of the committee on adoption of approved acts of the National Conference of Commissioners on Uniform State Laws, I take this occasion to address you with reference to the fol- lowing points: 1. To lay before you a brief outline of the nature and extent of the work of our national organization. •2. To call your attention to features of this work which appear to relate to and have an influence upon the subject of rural credits, concerning which your committee is seeking data as a basis for legislation. 3. To ascertain in what respect our National Conference, which represents the interests of the 48 States of the Union with respect to the subject of uniform State laws, can most effectually aid or co- operate with your committee with reference to the subject of rural credits, which is affected alike with both a Federal and State interest. Taking up the above points in order, let me, therefore, as briefly as may be, first lay before you an outline of the natore and extent of the work undertaken by our national organization, that you max better be able to judge in what respect its work affects the subject your committee has under investigation with a view to congressional legislation. ORGANIZATION OF COMMISSIONERS ON UNIFORM STATE LAWS. Each of the 48 States, the District of Columbia, and the several Territorial possessions of the United States are alike officially repre- sented in the National Conference, either pursuant to State law or by gubernatorial initiative, there being three duly appointed com- missioners from each of the 53 legislative jurisdictions. In substantially its present form the organization dates from 1892. Prior to that, for a number of years, uniform State laws was the subject of report and discussion by the American Bar Association with a view to promoting measures to overcome delay, uncertainty, and conflict of judicial administrations. In its present official form the organization recently held its twenty-fifth national conference. 3 4 RURAL CREDITS AND LAXD KEGISTEATION. Heretofore the work of the commissioners has largely been con- fined to making a study of proper subjects for uniform State laVs, investigating data, obtaining expert and public opinion, and making the draft of the proposed model uniform laws. As showing the thoroughness of this work the National Conference in certain cases has devoted 5 to 10 years to the studjj of conditions surrounding a given subject of legislation and submitted as high as five different tentative acts to the public for analysis before the final approved draft was submitted to the le^slatures of the several States for adoption. It is now proposed by the Xational Conference to take up the subject' of publicity in a more systematic manner and through its legislative committee push the adoption of the approved measures, so as to more eilectively and completely achieve the purpose for which the commissioners are appointed, namely, to secure for the United States on certain cardinal and essential subjects a national system of Uniform State laws for the mutual and reciprocal protection and welfare of the people of the 53 State and Territorial jurisdictions. The subject chosen for uniform State action include commerce and industry, transportation and finance, and manj- sociological and ci^^c measures. As related to the subject of rural credits, however, two classes of the uniform acts are specially commended to your atten- tion, namely, the several Uniforni Commercial acts and the Uniform Land Registration act. rXIF0K3I STATE COJIJIERCIAL LAWS. The first model uniform act submitted by the Xational Conference was the uniform negotiable instruments act approved in 1896. This is a codification of the international " law merchant " which is com- mon to all the commercial nations of the earth. In 1897 it was adopted by the States of Comieeticut. Colorado,' Florida, and Xew York, and in 1898 and 1899 by Massachusetts, Ehode Island, \ irginia, Maryland, Xorth Carolina, Tennessee, Xorth Dakota, Wisconsin, Utah, Oregon, and Washington. It is now the law of 13 States, Alaska, Hawaii, the Philippines, and was adopted by Congress for the District of Columbia. This act has been cited in 750 American decisions. The latest indorsement of the principle of commercial uniformity is the opinion delivered by Justice Hughes for the United States Supreme Court on January 10, 1916, in which the court upholds the imiform ware- house receipts law in a Louisiana cotton case. The Supreme Court determined the issue and turned over the cotton to the holder of the warehouse receipt, on the principle that the purpose of the act to promote uniformity of judicial administration as between the States took precedence over all previous statutes and decisions of the States. The purpose and effect of the uniform negotiable instruments act is to give fluidity and legal certainty over large commercial areas to all negotiable instruments, such as checks, drafts, promissory notes, and the various classes of commercial paper, and thereby reduce cost, delay, and risk of commercial and financial transactions, and gener- ally add to the efficiency, economy, and volume of business. KXJRAL CREDITS AND LAND EEGISTEATION. 5 The uniform negotiable instruments act thereby has become a prime tactor and essential condition precedent to the following re- sults in the country's finance : (a) It gives the States adopting it more certain and economical command ot the capital of the country at large for development. (0) it reduces the prevailing interest rates on commercial paper, and short-term loans generally, as well as indirectly affecting the interest rates on mortgage loans. (c) It brings the business of the State into the general channels of both domestic and foreign commerce. _ {d)_ It benefits all industries, agriculture and manufactures alike, by bringing them into the general circle of the country's financial a,nd commercial markets for the financing and sale of their pro- ductions. (e) It has demonstrated by experience the benefits to be derived by reason of the uniformity of law as to a particular branch thereof, thus producing a tendency toward the development of similar uni- formity in other branches of the law. Georgia, Mississippi, and Texas are three cotton States which to date have not availed themselves of the uniform negotiable instru- ments act, and Maine among the New England States. The com- paratively high interest rates on farm loans, both shoi-t-term and mortgage loans, prevailing in these States, as shown by the investi- gations of the Department of Agriculture, is doubtless due in part to the fact that failure to adopt the uniform negotiable instruments act deprives them of one of the essential factors in commanding on most favorable and economical terms, for their States's develop- ment, the capital and financial facilities of the country at large. UNirORM WAREHOUSE RECEIPTS ACT. The second in importance among the uniform State commercial laws approved and submitted by the National Conference to the States for general adoption is the uniform warehouse receipts law. This act is now in effective operation in 31 States. It is essential to the successful financing of such staple crops and products as grain, cotton, and flour, which readily command the available finan- cial facilities of the country at minimum rates, when the warehouse receipts representing these products become dependable and cur- rently acceptable security under the operations of the uniform act. The Federal Reserve Board, which has recognized this law as a prirtie factor in financing cotton, has been doing yeoman service in extending the adoption of the uniform warehouse receipts act by the cotton States. The Uniform Warehouse Receipts law first demonstrated its useful- ness as a vital factor in financing commerce and agriculture on a large and economical scale in moving the wheat crop of the Upper Missis- sippi Valley. Chicago and Minneapolis bankers testify before the Federal Reserve Board that in many respects they prefer the ware- house receipt on State inspected wheat to a Government bond as security for commercial paper, because more fluid and readily mar- ketable. As a result, Minneapolis and Duluth grain elevators, which handle upAvards of 150,000,000 bushels of the Minnesota-Dakota spring b RURAL CREDITS AXD LAXD BEGISTRATIOX. wheat crop, commonly float theu- commercial paper on warehouse receipts at 3 per cent to 4 per c&at. Mississippi Valley wheat-producing States which buccessriuly finance their staple crop under the Uniform Warehouse Receipts law are: Ohio, Illinois. ^lichigan. Wisconsin. ^linnesota. Iowa. Missouri, Xebraska. Kansas, and South Dakota. All the Pacific States and part of the Eockv Mountain States are under the warehouse act. Southern States adopting the Uniform Warehouse Receipts law include Louisiana, Maryland. Virginia. Tennessee, and recently Ala- bama and Arkansas. Among the prominent Southern States wliich at his writing have not availed themselves of the benefits of the uniform warehouse act in financing their crops are Georgia. Florida, Xorth and South Carolina. ^Mississippi. Oklahoma, and Texas. There is no question that in order to utilize at favorable rates the available financial machinery of the country in handling such agricul- tural staples as cotton, the I'niform Warehouse Receipts law is a prime business necessity. The testimony of the Federal Reserve Board, of the State Commissioners on Unifonn State Laws, and of bankers, merchants, and warehousemen generally, leaves no room for question. It is patent in the nature of the case that commercial paper in order to pass current at minimimi rates must be so fixed and certain in its character that no reasonable question can arise as to its legal va- lidity : and. to secure this legal standing, it is essential that the States through which such paper j)asses current should have a common legal standard understood generally by the financial institutions and in- vestors of the country. That farmers and merchants in the cotton States have become thoroughly aroused to the facts in the case is apparent in the recent mass meetings in Alabama, of the Farmers" Union, the Cotton Producers' Association, and the Merchants' Asso- ciation, which resulted in the prompt adoption of the L^niform Ware- house Receipts law by the Alabama Legislature. Similar movements are going forward in other cotton States. OTHER rXIFOESr COMMERCIAL, STATE LAWS. Other Uniform Commercial acts approved and submitted by the Xational Conference for general State adoption include the follow- ing: In 1909, the Uniform Bills of Lading act. which is now adopted by 1:3 States, including such seaboard States as Xew York, ilassachu- setts. Pennsylvania, 3Iaryland. Louisiana, and such Great Lakes commonwealths as, Ohio. Illinois, and ilichigan, and by the pro- gressive agricultural State of Iowa. In 1906. the Uniform Sales act. which has been adopted by 13 States, including the leading commercial and industrial States of the Atlantic seaboard and Great Lakes. In 1909, the Uniform Stock Transfer act, which is the law in nine States, including Massachusetts. Rhode Island. Xew York. Pennsyl- vania, Maryland, Louisiana, Ohio, ^lichigan, and Wisconsin. And in 1914, the Uniform Partnership law. which three States thus far have adopted. The purpose and effect of these Uniform Commercial laws is to carry out the general principle, in harmony with the modern de- velopment of commerce, finance, and industry, that the business of EVEAL CEEDITS AXD LAND EEGISTEATIOX. 7 the country as conducted through such channels as the raihvay, tele- graph, long-distance telephone, mail, express, waterways, commercial paper, bond and stock securities, and the host of commercial agencies, and banldng and investment institutions is no longer subject to State boundaries, but passes current in all directions and for all dis- tances, and that only under uniform commercial laws. State and Xa- tional. is the efficient and economical conduct of the business of the 48 States of our Union to-day feasible. The State which neglects to come within the realm of modern uniform commercial laws simply bars its people, its resources, and enterprises from those common channels of finance which insure the maximum volume of business at the minimum cost for the employment of capital. FAR3I LOAN RATES AXD UNIFORM COMMERCIAL LAWS. Thei'e is perhaps no better illustration of the practical value of the imiform commercial laws in reducing interest rates by enlistment of outside capital than is presented in the statistical tables of the Department of Agriculture, on the subject of comparative State rates on short-term farm loans and also on farm mortgages, as com- piled under the direction of Secretary Houston and laid before your committee by Dr. Thompson, specialist in charge of rural organiza- tion. (See pt. 3, personal rural credits, of hearings before your committee.) Among the acknowledged causes which atfect comparative fai-m rates for use of capital as between .States similarly favored as to climate, soil, and industrial ])opulation are : ( a) Acces.sibility to financial resources, including financial centers and ;.;eneral savings for investment purposes: (h) accessibility to commercial resources, including transportation and banldng facilities, and accessibility to markets. It is plain that the uniform .^tate commercial acts are active, direct, and vital factors in giving the agi-iculture of a given -State greater accessibility both to the financial and commercial resources and facili- ties of the country at large. They have the same effect in financial channels as railways and telegraphs, postal rural routes, and parcel- post routes possess in regard to transportation and commercial com- munication. Prof. Thompson's comparative interest rates on farm loans in the respective State>. as exhibited in part 3 of your hearings, furnish interesting illustrations of the above principle. Maine is the only Xew England State which has not adopted any of the uniform commercial laws. You will note that, on loans to farmers on personal security, the average total cost to the farmers of Maine is 7.7 per cent interest and commissions, as compared with 6.0 per cent as the average for the other five Xew England States. Interest rates on farm loans are nearly one-fifth higher for this Xew England State, which has neglected to avail itself of the advantages of tlie uniform commercial laws. In the South, the stress of the European war as affecting the financing of cotton was felt with special severity in Georgia. Missis- sippi, and Texas, which have adopted none of the uniform com- mercial acts, and Oklahoma, Alabama, Arkansas, and the Carolinas, 8 RURAL CREDITS AND LAND REGISTRATION. which when the war opened did not have the uniform warehouse receipts law as a basis for loans on warehouse cotton. On the other hand, in Louisiana, Maryland, Virginia, and Ten- nessee, the war found the agricultural industry and domestic com- merce provided with the Uniform Negotiable Instruments law and the uniform warehouse receipts law; in Louisiana and Maryland also the Uniform Stock Transfer and Uniform Bills of Lading acts were in force; under the operation of these laws these States found little difficulty in commanding adequate capital at reasonable rates. Although comparisons are not conclusive as to effect of these uniform acts upon interest rates because of the variety of conditions involved, it is interesting to note, in Prof. Thompson's table of short- term farm loan rates, that the average farm cost of loans in the four Southern States under uniform commercial laws is from 7 per cent to 11 per cent; as compared with 10.8 per cent to 15.6 per cent in the States which Avere inadequately provided with uniform commercial acts. UNIFORM LAWS VERSUS USURIOUS INTEREST RATES. In testimony of Comptroller of the Currency, Hon. John Skelton Williams (part 2 of your committee hearings), it will be noted as a striking fact that the most sensational and usurious rates are charged farm loans in States which do not have the uniform laws to invite the competition of the general capital of the country. Comptroller Williams reports, in his list of 1,206 banks charging 12 per cent interest or more on farm loans, 66 banks located in Georgia and 168 located in Texas, these States having no uniform commercial acts, as compared with 6 banks in Louisiana and 5 banks in Virginia, which States operate under uniform acts; and 287 banks in Oklahoma, which has no Warehouse Receipts law to attract outside capital, as compared with 21 banks in Kansas, 19 in Mis- souri, and 2 in Nebraska, which States have the warehouse receipts act to invite competing capital. In the States where the legislatures have neglected to provide the uniform commercial acts which create accessibility to the savings and in\estment institutions of the country, Comptroller Williams reports usurious interest charges on farm loans running from 12 per cent to over 100 per cent; whereas in a score of States, including most of the Middle West where the Uniform acts prevail, an interest charge as high as 12 per cent is exceptional. Although, of course, it is idle to expect by law to prevent every occurrence of usury, it is apparent, from the statistics compiled by the Comptroller of the Currency, that the Uniform State commercial laws where adopted have made substantial strides in that direction by opening up the gateways and channels of commercial paper, farm loans, mortgages, and negotiable instruments generally in such efficient manner that usurious and extortionate interest rates are so exceptional as to prove the rule of prevailing reasonable rates. FARM MORTGAGE LOANS AND UNIFORM LAND REGISTRATION. Your committee has already taken note of the fact that in order to develop a rural credits system in this country, similar to that of Europe, based on long-term farm mortgages, the foundation of the RUEAL CREDITS AND LAND REGISTRATION. 9 system must be some method of uniform land registration by which titles will be certain and standard, and thereby become unquestioned security for the bonds or debentures of any Federal system of land banks. This will require Uniform State laws as well as the Federal Kural Credits act. Twelve States have already adopted the Torrens system of land registration ; and although these laws are not in all respects uniform, they approximate uniformity to a degree sufficient perhaps to satisfy all practical requirements. For an able and instructive review of the subject of " commercial land titles," allow me to submit to your committee herewith the published address of Mr. Eugene C. Massie, of Richmond, Va., delivered before the Georgia Bar Association, June 4, 1915. Mr. Massie is chairman of the executive committee of the National Con- ference of Commissioners on Uniform State Laws, and is an au- thority on the so-called Torrens system of land-title registration, of which he has made an exhaustive study both as to its economic and legal aspects. He finds that the Torrens system is in operation throughout Australia, Tasmania, New Zealand, a great portion of the Dominion of Canada, and in a modified form in England. In this country it is in force in California, Colorado, Illinois, Massachusetts, Minnesota, Mississippi, North Carolina, New York, Nebraska, Ohio, Oregon, and Washington, and also in Porto Rico, Hawaii, and the Philippines, and has just been adopted in South Carolina and Vir- ginia. In all of these States the Torrens principle of land registra- tion has been upheld by the supreme courts. Though it has not been an issue before the United States Supreme Court, the leading Massa- chusetts decision was rendered by Chief Justice Holmes, now Justice of the United States Supreme Court. (Tyler v. Judges, 175 Mass., 71; 179 U.S. 405.) In his exhaustive argument before the Georgia Bar Association, Mr. Massie urges : " Nothing short of registered title can give to land any 'of the true attributes of a commercial asset. To answer the great public needs we must make land in a sense negotiable." Applying the principle to the State of Georgia he finds : "It also appears from said report that Georgia realty has a value more than eleven times greater than all the merchandise in the State, more than eleven times greater than all the live stock in the State, and more than eleven times greater than all the bank shares in the State. I beg you, therefore, to consider how enormously the bankable capital of your State would be increased if your real assets were made available for free use in business." NEGOTIABLE FARM-LAND CAPITAL. From the testimony of Hon. David F. Houston, Secretary of Agri- culture, before your committee, it appears that there are only $3,500,000,000 or farm mortagage loans in this country on $40,000,000,000 worth of farm property. At the same time, the clamor of the rural districts for capital to develop the agricultural industry is country-wide. It also appears in Secretary Houston's testimony, that interest plus commission on farm mortgage loans in the United States range from 5.3 to 10.5 per cent — the average rate in no less than 20 different 10 RURAL CREDITS AND LAND REGISTRATION. States being 8 to 10 per cent; whereas, the prevailing farm loan rates under modern rural credit svstems in Germany, France, Aorway, Denmark, Great Britain, and Australia, are 3^ to 4 per cent. Comptroller of the Currency, Hon. John Skelton Williams, has tes- tified before your committee that even on 30. GO. or 90 day loans tor crop-moving purposes the farmer is entitled to as low a rate as com- mercial paper. On long-term farm mortgages handled under the pro- visions of such an act as that provided for in the HoUis bill (S. 2986) there is no reason why farm mortgage rates in the United States should not approximate the European basis ; especially in view of the fact that commercial paper in the United States floats at as low rates as in Europe. Under the proposed rural credits plan — with a Federal farm loan board and 12 regional farm land banks to give negotiability to the agricultural lands of the United States — ^the aggregate, actual capital of America available in negotiable form for bankable purposes would readily be more than doubled and thereby become one of the greatest and most dependable assets in our national finance. The part which the States will play, through the operation of the Uniform State laws is to present a line of State legislative and judicial harmony and solidarity in accord with the principles of the Federal rural credits act. The necessity of unified action on the part of the States in order to give farm loans a national market is excellently shown in an article on rural credits published in the Bankers' Home Magazine of May, 1911, from which we quote : XATIOXAL MAKKET ESSENTIAL. It is idle to presume that an.v local banking insfitntion can issue any form of security based on land, which will command a national market, and it is equally certain that no success can attend any attempt to reach the general investing public for the benefit of the landed interests, unless a national market is secured. NECESSITT FOR STATE UNIFOR^riTY. Indeed, your committee has taken careful note of the necessity of unified action by the States in order that they may severally avail themselves of the benefits of a Federal rural credits system. In the report of your Joint Committee on Rural Credits to Con- gress, January 3, 1916, with the draft of a bill to "provide a system of land-mortgage credits to the United States under Federal super- vision," your committee (H. Doc. N"o. 494, p. 16) has this to say of necessary State legislation: STATE LEGISLATION. It is well understood that the laws in the several States vary as to land titles, registry, exemptions, homestead rights, foreclosure, and equities of re- demption. It is therefore made the duty of the farm loan board to investigate these questions in each State and to declare mortgages ineligible as security for farm loan bonds in those States where the laws do not give adequate protection to those loaning on first mortgage. As the principle here enunciated by your committee accords with that on which the National Conference of Commissioners on Uni- form State Laws have proceeded for many years, there is no doubt that a degree of joint cooperation between the farm loan board when RURAL CREDITS AND LAND REGISTRATION. 11 organized and our National Conference may be effected, and that our legislative committee and the three State commissioners from each State will be able to forward your plans as to desired uniform State laws as a basis for the successful establishment of a Federal system of rural credits. Section 32 of your Rural Credits bill, authorizing the farm loan board to declare ineligible for farm loans the lands of such State as fails to provide the necessary uniform laws relating to the convey- ing and recording of land titles, and the foreclosure of mortgages and other instruments securing loans, will doubtless have an impor- tant effect in securing a more prompt compliance with the State uniformity principle. It will be noted, also, in the testimony of Hon. David Lubin, dele- gate of the United States to the International Institute of Agricul- ture (pt. 5 of your committee hearings), that his proposition to adapt the Landschaft system of rural credits, established for 151 years in Germany, to conditions in this country, upon which a part of the plan submitted by your committee is apparently modelled, presupposes not only a Federal law but uniform State laws. It ap- pears that the result of such uniform legislation in Germany, where the nation, the states, and the local districts cooperate in financing agriculture, has been to make the bond secured by mortgages on lands more popvilar and stable than the Imperial Go\ernment bonds, with interest rates thereon at 3^ to 4%. The rural credits systems of Europe illustrate the practical work- ing out of the principle of uniformity as affecting farm credits. Commercial credits in Europe are no lower than in the United States. As testified by Comptroller Williams before your committee, there is no reason why the farmer in this country should not borrow as cheaply, if not more cheaply, than the merchant or manufacturer. The farm property of the United States in 1909 was valued in the census at $40,000,000,000 and doubtless will exceed $50,000,000,000 in the census now being compiled. "What is required is a proper mechanism for effectively financing this greatest American asset. Railroads maintained by the farms float their bonds at 4 per cent. Commercial paper in New York is 3 to 3^ per cent ; and on Minne- apolis and Chicago grain warehouse receipts is 3 to 4 per cent. There is every reason to believe that, under a proper Federal system, with effective State cooperation under uniform State laws, the Amer- ican farmer eventually will enjoy the same adequate and economical use of capital which we find among the most favored agricultural countries of Europe. Respectfully submitted. S. R. Child, Chairman Oomndttee on Adoption of Approved Acts of National Conference of Commissioners on Uniform State Laws. UNIFORM LAND REGISTRATION ACT AS ADOPTED BY THE TWENTY-FIFTH NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS, HELD AT HOTEL UTAH, SALT LAKE CITY, UTAH, AUGUST 10-16, 1915. 13 NOTE. [The Uniform Land Registration Act, in the form following, was adopted, approved, and recommended to the various States for adop- tion by the National Conference at its twenty-fifth annual meeting as shown by the votes and discussion printed in the minutes in this volume, pp. 56-64, 90, 94.] With certain verbal changes and annota- < ions by the committee on registration of title to land. AN ACT ^ To provide for the settlements, registration, transfer, and assurance of titles to land, and to establisli or designate courts of land registration, with jurisdiction for said purposes, and to make uniform the laws of the States enacting the same. Be it enacted as follows: Part I. PRELIMINARY PR0VISI0N&. Sectiiix 1. [Name of act.] This act may be cited as the Uniform Land Eegistration Act. Sec. '2. [Definitions.] Words and phrases used in this act are to be construed as follows: (1). The words " voluntary transaction " means all devises and all contractual or other acts or dealings, by any registered owner of anv ^ Illinoif! and ('nlorailo: "An act concerning land titles." ihissachusetts and WdKhington: "An act relating to the registration and conformation of titles to land." California: "An act for the certification of land titles and the simplifica- tion of the transfer of real estate." llinnesota: "An act concerning the registra- tion of lands and the title thereto in the Stae of Minnesota." Mississippi, North Cdrolina, and Ohio: "An act to provide for the assurance and registration of land titles." Ncir York: "An act in relation to registering titles to real property and facilitating and expediting its transfer." Oregon: "An act concerning land titles, creating the offices of registrars of titles, prescribing the duties of said offices, providing foi- the registration of title to real estate, prescribing the man- ner in which registration of title may be obtained and the rights accruing there- under." Virginia: Adopted the uniform act, with several inconsequential changes, Febr\iary 12, 1916 ; approved . California and Colorado are the onlv States in which the act has been attacked as unconstitutional on account of its title. In Robinson v. Kerrigan, 151 Cal. 41 the court said : " The same criticism might be made of many acts on a general subject which have always been considered as valid. *■ * *■ if it were necessary to mention every snl)- division of the general subject of an act in the title to the extent here claimed, our statutes would present a somewhat ludicrous appearance. The statement of the subject in the title would generally occupy almost as much space as the act itself. Furthermore, if subjects, as intended by the Constitution, must be so minutely subdivided, it would be impracticable to enact any comprehensive law on any general subject, by reason of the necessity of dividing it into so many separate acts. The provision must receive, and it has received a more liberal construction." The title was therefore held sufficient. See also People V. Crissman, 41 Colo. 450, holding Colorado title sufficient. Registration of title has been employed in certain parts of Europe from time Immemorial. The original act among English speaking peoples was prepared by Sir Robert Richard Torrens, not a lawyer but collector of customs at Port Adelaide in South Australia. This act took effect in South Australia in 1858. Similar acts were adopted in Queensland in 1861, in Victoria, New South Wales 15 16 EUEAL CREDITS AND LAXD EEGISTRATION. estate or interest in land with reference to such estate or interest, and to any statutory right or exemption claimed therem. (2). The words "involuntary transaction" mean the transmission of registered land or any interest therein by descent, the rights ot curtesy and dower, all equitable rights and claims, judicial proceed- ings or statutory liens or charges, the exercise of the right of eminent domain, the lien of delinquent taxes and levies, affectmg registered land, or any interest therein. (3). The phrase "writing, instrument, or record," means all transactions, whether voluntary or involuntary, as herein defined. (4). The word "registrar" means the clerk of the court having jurisdiction of the cause within the county or city in which the land lies. (5). The word " decree " means judgment, order, or decree. (6). The word "appeal" means writ of error, supersedeas, or appeal. (7) . Except where the context requires a different construction, the word " court " means the court having jurisdiction for the settlement, registration, transfer, and assurance of titles to lands in the county or city where the land lies.^ Sec. 3. [Purposes.] For the certain, cheaper, and more speedy settlement, registration, transfer, and assurance of titles to land, there is hereby established a system of land title registration, having the following purposes in detail : (1). To establish or designate courts of land registration. (2). To provide for the appointment and duties of registrars of title. and Tasmania in 1862, and in Xew Zealand in 1870. It then crossed the seas to British Columbia. They are generally known as " Torrens Acts." The system has spread throughout the Dominion of Canada and obtains in the Provinces of Manitoba, Saskatchewan, and Alberta and in the Northwest territories and also in Nova Scotia and in parts of Ontario. In the United States It has been adopted by California (Stats. 189T, pp. 138-167); Colorado (Laws 1903, pp. 311-8.')2; Eev. Stats. 1908, pp. 334-35.5) ; Illinois (Laws 1897, pp. 141-165, 207-212, amended bv acts of 1907, 1909, 1910 and 1913) ; Alassachusetts (Laws 1898, pp. 682-722, amended by acts 1899, 1900, 1903, 1904, 1905 and 1910) ; Miiv- nesofa (General Laws 1901, pp. 348-378, amended 1903 and. 1905) ; Mississippi (Laws 1914) ; New York (Laws 1908, vol. 2, pp. 1247-1283, amended 1909 and 1910) ; Nebraska (Laws 1915, pp. 494-526) ; North Carolina (Acts 1913, pp. 147-159) ; Ohio (constitution, art. 2, sec. 40, amendment of 1913; Laws 1913, pp. 914-960, amended 1914) ; Oregon (Gen. Laws 1901, pp. 438-467) ; Virginia (Acts 1916, pp. — ) ; Washington (Session Laws 1907, pp. 698-738) ; Hawaii (Laws 1903, act 56, pp. 278-328) ; Philippine Islands (Compilation Laws 1908, pp. 777-820). There have been a series of acts leading up to registration in England since 1862, culminating In the land transfer act of 1897. This act renders registration of titles compulsory in certain places by order of certain local authorities, and the whole of London County, and city has been placed under the compulsory order. The London land registry office is located In a building specially erected for its purposes at a cost of .$1,325,000. As to the constitutionality of such legislation in the United States see Robinson v. Ker- rigan, 151 Cal. 40 ; People v. Crissman, 41 Colo. 450 ; People v. Simon, 176 111. 165 ; McMahon v. Rowley, 238 111. 31 ; Brooke v. Glos, 243 111. 392 ; Waugh v. Glos, 246 111. 604 ; Tower v. Glos, 256 111. 121 ; Tyler v. Judges, 175 Mass. 68 ; Tyler v. Judges, 179 U. S. 405 ; State v. Westfall, 85 Minn. 437 ; National Bond Co. V. Hopkins, 96 Minn. 119 ; Peters v. Duluth, 119 Minn. 96 ; American Land Co. V. Zeiss, 219 U. S. 47 ; Hammond v. Glos, 250 111. 32. ^ The definitions given in this section materially aid in reducing the length of the act. None of the State acts contain any definitions, but this feature obtains in the Australian and Canadian acts and is believed to be of value. RUEAL CEEDITS AND LAND BEGISTKATION. 17 (3). To regulate proceedings to obtain registration of title. (4). To authorize the adjudication of title. (5). To prescribe the nature of certificates of title. (6). To provide for the registration of subsequent dealings with registered titles. (7). To regulate sundry proceedings after registration of title. (8). To determine the legal effects of registration of title. (9). To establish an assurance fund. (10). And" to regulate the fees for registration of titles. Part II. COURTS OF LAND REGISTRATION. Sec. 4. [Courts of Land Kegistration.J The" * * * courts throughout those portions of the State specified in section 89 of this act, and in those portions of the State which shall so elect as pro- vided in said section, are hereby constituted or designated courts of land registration for the purpose of the settlement, registration, transfer, and assurance of titles to lands (or any interest therein as hereinafter provided) within their respective jurisdictions. Minnesota, § 3379. Ohio, § 1. Mississippi, § 1. Oregon, § 14. Nortli Carolina, § 1. Wasliington, § 8. New York, § 371. Sec. 5. [Jurisdiction.] Such courts shall have exclusive, original, and general jurisdiction,* subject to the right of appeal hereinafter allowed. ' Sttperior Court: California, Illinois, North Carolina, AVashlngton. District Court: Colorado and Minnesota. Chancery Court: Mississippi. Supreme Court: New York. Common Pleas Court: Ohio. Circuit Court: Oregon. Land Court: Massachusetts. One of the crowning excellencies of the Massachusetts act is Ihe establishment of a special court for registering titles. This has done much to make the Massachusetts act popular and effective. Wherever it is possible, administration of the act should be committed to a special court. It is only on account of the cost of conducting such a court that it is not suggested in this act. The Ohio act, section 1, provides : " In counties having three or more common pleas judges said judges may select one or more of their number who shall act as judge or judges in land registration cases and matters." This affords the best substitute for a special court. "Jury trial is provided for by the acts of Massachusetts, Mississippi, North Carolina, and Netv York. No jury trial is provided for by the acts of California, Colorado, Illinois, Minnesota, Ohio, Oregon, and Washington. In Peters v. Duluth, 119 Jlinn. 96, held: That Torrens laws have the general purpose to clear up and settle land titles, and are nothing more or less than an enlargement of remedy to quiet title. Hence there is no constitutional right to a jury trial in Minnesota under article 1, section 4, which says : " The right of trial by jury shall remain inviolate, and shall extend to all cases of law without regard to the amount in controversy." The court said: "There was no such right upon the ancient bill to remove cloud and quiet title, and it has been held in this State that the constitutional guaranty does not apply thereto. Yanish v. Pioneer Co., 64 Minn. 175." The provisions fixing the character of the proceedings in rem ere vital and are found in all the acts in practically the same terms. As to the preparation of rules and forms, California places this duty on the attorney general, State controller and secretary of state; Massachusetts on the land court ; Minnesota permits each court to adopt general forms. In New York each I egistrar must provide a book of covenants, restrictions and forms. Section 408. la Ohio the attorney general is to prepare a uniform system of books and forms. S. Doc. 351, 64-1 2 18 EUEAL CREDITS AND LAND EEGISTBATION. (1) Of all petitions'^ and proceedings for the registration of titles to lands, (2) And of all transactions affecting registered titles to lands lying within their respective jurisdictions. Sec. 6. [Powers.] Their powers shall include all the powers pos- sessed by the (circuit and corporation) courts of the State, in law and equity, for the purpose of enforcing any of the provisions of this act. Sec. 7. [Sessions.] They shall be open as courts of land registra- tion, except on Sundays and legal holidays ; and their process as such may be issued at any lime, returnable as they may direct. Sec. 8. [Mode of Trial.] The whole matter of law and fact^ in any case shall be heard and determined by the court; provided, how- ever, that, on the motion of any person interested, the court shall direct and frame an issue or issues to be tried by jury.'' California, § 14, 17, 110. Colorado, § 5, 8, 23-6. Illinois, § 15, 25. Massachusetts, § 1, 9, 13, 48. Minnesota, § 3379, 3406, 3388. Mississippi, i 218. North Carolina, § 2, 8, 31. New York, § 371, 390. Ohio, § 1, 19, 94, 95. Oregon, § 14, 24. Washington, § 5, 8, 23-6. Sec. 9. [Proceedings to be in rem.\ The proceedings under any petition for the registration of land, and all proceedings or trans- actions in relation to registered land, shall be proceedings in rem against the land, and the decrees of the court and registered transac- tions shall operate directly on the land, and shall vest and establish title thereto in accordance with the provisions of this act. Sec. 10. [Eules of Court.] The * * * court (court of last re- sort) shall from time to time make general rules and forms for pro- cedure, subject to the provisions of this act and the general laws, and such rules and forms shall be uniform throughout the State. "People V. Crissman, 41 Colo. 450. Replying to the objection that no judg- ment or decree can be rendered or entered, in favor of a defendant, regardless of the showing he may make, the court said : " The act does accord to all per- sons equal rights and privileges. Anyone desiring to avail himself of its terms can do so by Oiling his application, and can obtain the registration of his title by complying with the requirements of the statute. Although the legislature has seen fit to allow affirmative relief only to the applicant who initiates the proceedings, this does not render the proceedings objectionable for the reason assigned. The right to a particular remedy is not a vested right. Every State has complete control over the remedies which it offers to suitors in its courts." ° Foss V. Atkins, 201 Mass. 158 : Facts found by land court become final upon dismissal of appeal to superior court. Marvel v. Cobb, 204 Mass. 117: Finding of facts by land court can not be revised by supreme court. Id. Gorton v. Tolman, 210 Mass. 402. Findings of fact by land court when no trial by jury is claimed are conclusive. Van Ness v. Boiney, 214 Mass. 340. ' Issues must be framed in land court for' appeal. McQuesten ■;;. Attorney General, 187 Mass. 185. Issues for jury trial may be amended by superior court. Luce V. Parsons, 192 Mass. 8; Foss v. Atkins, 193 Mass. 486. The judge of land court may refuse to certify immaterial Issue for appeal. Dunbar v. Kronmuller, 198 Mass. 591. The court has no right to refuse jury trial when title to land is in issue. Weeks v. Brooks, 205 Mass. 458. Torrens' laws have the general purpose to clear up and settle land titles, and are nothing more or less than an ealargement of the remedy to quiet title. Hence there is no constitu- tional right to a jury trial in Minnesota. Peters r. Duluth, 119 Blinn. 9G. On appeal petitioner for registration has the right to open nnd conclude before the jury. Bigelow i\ Wiggin, 209 Mass. 542. EUEAL CREDITS AND LAND EEGISTEATION. 19 Sec 11. [Petitions for Eehearing, Appeals, and Bills of Eeview.l A petition for rehearing or an appeal may be taken (or a bill of review or bill of exceptions, or writ of certiorari) may be filed, withm 90 days,« and not afterwards, from any decree of the court; under the same circumstances, in the same manner and on the same condition as if such decree had been rendered by a * * * court baid period may not be extended by any disability. California, § 45. Oregon § ''5 26 27 Colorado § 27, 28, 20. WasIiinVto'n,' § 27-29 Illinois § 26. 27, 28. Massachusetts, § 13, 15. Minnesota, | 3394, 3396-7. Mississippi, § 8, 25. New 1 ork, § 380, 392. North Carolina, § 8, 25. Ohio, § 25, 80. Sec. 12. [Books and Cases for Records.] It shall be the duty of V^- J T-' L °^ ^^^'^ county (or the * * * of each city) in which the office of a registrar of titles may be located to provide appropriate cases and other furniture for the safe and convenient keeping of all the books, documents, and papers in the custody of such registrar, and also an official seal, and all necessary books and such printed blanks and stationery for use in registration in such county or corporation as may be ordered by the court. California, §109. New York, §376. Ohio, §91. Sec. 13. [Court May be Held by Designated Judge.] If the judge of the court, for any reason shall become disqualified or temporarily incapacitated, the court may be held by any other judge of a court of record designated according to law. Ohio, §1. Paet hi. registrars and examinees of titles. Sec. 14. [Clerks to be Eegistrars of Title.] The clerks ° of said courts shall be registrars of title under this act. 8 This section is in effect a 90-(lay statute of limitations. Tyler v. .Tudges, 175 Mass. 68; California limitation 5 years; Colorado and Washinr/ton 90 days; Illinois and Oregon 2 years; Minnesota and New York 6 months; Massachusetts and Ohio 30 days. Limitation of 60 days not unconstitutional. State v. West- fall, 85 Minn. 437. Illinois limitation' good. People v. Simon. 176 III. 165. In North Carolina an appeal may be taken " as in other special proceedings " ; and in Mississippi " as in other cases." But in these States the bars seem to be wholly let down by another provision permitting an adverse claim existing at initial registry to be filed at any time thereafter, and requiring action thereon to be brought within six months after the entry of such claim, unless the clerk for cause shall extend the time. In practice, registration of title is only re- sorted to for business reasons and purposes. Business demands clear and quick and certain results. A long statute of limitation must destroy the useful- ness of any registration act. The Uvo years' limitation has been one of the greatest handicaps in Illinois. The five-year limitation in California has been one of the reasons preventing any general resort to that act. ° The act creates no new office. " It was clearly within the provisions of the legislature to impose upon the clerk in his capacity of recorder of deeds tlM duties enjoined upon him by this statute. Making him registrar of titles, does not constitute him a new county officer." People v. Crissman, 41 Colo. 450. 20 RURAL CREDITS AND LAND REGISTRATION. (1). They shall do all things required of them by this act, under the direction^" of their respective courts, and pursuant to rules and regulations established for such courts, and shall be governed by the same general laws as clerks of (circuit and municipal) courts m so far as the same may be applicable. (2). Their official designation under tiais act shall be registrar of title for their respective counties or cities. (3). Tliey shall qualify and give bond in accordance with law for the faithful performanceof their duties as such. California, §1, 4. New York, §372, 406. Colorado, §9. Ohio, §1, 2. Illinois, §1. Oregon, §1. Massachusetts, §, 73. Washington, §9. Minnesota, §3398, 3400. Sec. 15. [Duties and Powers of Registrars of Title.] Registrars of title and their deputies shall be authorized and required, under the direction of their respective courts : (1). To issue process and to enter the decree of the court touching lands in their respective counties or cities. (2). To enter and issue certificates of title as provided herein. (3). To affix the seal of the court to such certificates and their duplicates. (4) To make entries and memoranda and perform all acts of regis- tration affecting the title to such lands. (5). To keep a separate account of all moneys with which they may be chargeable under this act, and to make a special return thereof in accordance with the general laws and the special pro- visions of this act. (6) And generally to perform such other acts as the court may prescribe. California, §1, 4. New York, §373-4. Colorado, §9, 10, 11. Ohio, §2. Illinois, §2, 3, G, 29. Oregon, §2. Massachusetts, §8. Washington, §9, 10, 11. Minnesota, §3399, 3401. Sec. 16. [Examiners of Titles."] The courts of land registration shall appoint,^^ subject to removal at any time, one or more attorneys " Under this provision registration is the act of the court. Tyler v. Judges, 175 Mass. 68. See also People v. Simon, 17G HI. 165 and State v. Westfall, 85 Minn. 437. Fierce battles have raged over the duties of registrars. The first Illmois .TCt of 1895 was successfully assailed and declared unconstitutloual because it conferred judicial powers on the registrars. People v. Chase, 165 111. 526; and the same fate befell the first Ohio act of 1897. State v. Guilbert, 56 Ohio St. 575. Subsequent acts have, however, been upheld over such objec- tions. To avoid any ditficulty or doubt in this regard article II of the Consti- tution of Ohio has been amended by the addition of section 40 for the estab- lishment of a land registration system and especially providing that "Judicial powers with right of appeal may by law be conferred upou county recorders or other officers in matters arising under the operation of such system." The provisions of the above section are believed to be sufiicient to avoid any con- stitutional question. "CaH/oniw; Referee appointed by court in each case; $10,000 bond. Colo- rado and ^VasUington: One attorney In each county appointed by court; bond. Illinois and Oregon: Two or more attorneys appointed by registrar In each county; bond fixed by court. MassarMisetts: One or more atcorneys In each county appointed by judge; removal by supreme judicial court. Min- KUBAL CREDITS AND LAND EEGISTEATION. 21 at law in their respective counties or cities, to be examiners ^^ of titles, or the court may, in any case on motion, appoint special examiners. (2). Their duty shall be to search the records and investigate all facts stated in the petition or otherwise brought to their notice in any case referred to them. (3). They shall have the powers of (commissioners in chancery) and may hear the parties and receive evidence.^^ (i)- They shall make report to the court, in the form required by it, with a certificate of their examination of the title and their findings of fact. California, §16, 18, 19. North Carolina, §3. Colorado, §13, 24. New York, §377, 3S0. Illinois, §5. Ohio, §3. Slassachusetts, §^. Oregon, §.'5. Minnesota, §3381. Washington, §13, 24. Mississippi, §3. Part IV. PROCEEDINGS TO OBTAIN REGISTRATION. Sec. 17. [Petition for Kegistration.J Suit for registration of title shall be begun by a petition ^* to the court, by a person or persons claiming, singly or collectively, (1). To own, (2). Or to have the power of appointing or disposing of, an estate in fee simple in any land, whether subject to liens or not. Sec. 18. [Petition by Eepresentative.] Infants and other persons under disability may sue and defend by guardian, committee, or trustee, as the case may be, and corporations by an officer duly authorized. nesota: One or more attorneys appointed by judges ; no provision for removal. Mississippi and North Carolina: Three attorneys in each county appointed by flerk for two years; removal at will of clerk or court. Neio York: Attorneys or corporations authorized to guarantee or insure titles qualified under rules of court of appeals; bond fixed by court. Ohio: One or more attorneys ap- pointed by court ; bond $1,000 to $10,000. "Examiners of title not county officers but court officers. State v. Westfall, 85 Minn. 437. Examiner acts as a master in chancery. Gage v. Consumers' Co., 194 111. 30. " Objections to testimony must be made before examiner of titles. O'Loughlin V. Covell, 222 111. 162. Examiner must not make ex parte examinations of ab- stracts and other evidence of title. Glos v. Grant Building Association, 229 111. 387. Objections to admissibility of evidence before examiner must be made at the' time it is offered, or will otherwise be excluded. Exceptions to examiner's report must not be general but specific, and must point out the evidence objected to and give reasons for the objections. Bjork v. Glos, 256 111. 447. " Complaint in action for registration need not set out the statute. It is suffi- cient to plead facts showing the right to registration. Duffy v. Shirden ; 139 N. Y. App Div 755. Applicant for registration must prove fee simple title either by the iDroduction of a regular chain of conveyances from the General Government, or bv proof of the creation of a title by adverse, open, continuous and hostile pos- session uuder claim of title for the period of 20 years, or by the acquisition of a good tax title Glos v. Kingman, 207 111. 26 ; Glos v. Holberg, 220 111. 167. It is nol- incumbent on applicant to affirmatively establish the invalidity of tax deeds held by parties defendant. McMahon v. Rowley, 238 111. 31. The filing of ap- plication for registration stops the running of statute limitations and prevents 22 RURAL CREDITS AND LAND REGISTRATION. (2). But the person in whose behalf the petition is made shall always be named as petitioner. (3). A nonresident petitioner shall appoint a resident agent upon Avhom process and notices may be served. Sec. 19. [Equity Practice.] Except ^^ as otherwise provided, the suit shall be subject to the general rules of pleading and practice m equitable actions. California, §5, 8, 9. Nortli Carolina, §4, 5. Colorado, §1-3, 5, 6, 66. New York, §370, 3T8. Illinois, §7-10, 12. Ohio, §4-7, 90. Massachusetts, §18. Oregon, §5-8, 11. Minnesota, §3372-3, 3377. Washington, §1-3, 5, 6, 65. Mississippi, §4, 5. Sec. 20. [Signature and Oath to Petition.] The petition and any amendment thereto shall be signed and sworn to by each petitioner, or in the case of a corporation or person under disability, by the person authorized to file the petition. Sec. 21. [Contents of Petition.] The petition shall set forth (1). A full description of the land, and any improvements there- on, with the description and valuation in its last assessment for taxation. (2). When, how, and from whom it was acquired. (3^. Whether or not it is occupied." (4). An enumeration of all known ^' liens, interests, and claims, adverse or otherwise, vested or contingent. holder of tax title from mending his hold. Woods v. Glos, 257 111. 125. Any " owner " of land, whether his title be of record or not. may maintain proceed- ings for registration. A cafse in which title under an unrecorded deed was registered. National Bond Co. i;. Alderson, 99 Minn. 137. A party not in pos- sion may bring suit for registration of title against party in possession. " The purpose of the statute is to provide a speedy and summary remedy to clear up title to land. Reed v. Siddall, 94 Minn. 216. The remedy provided is not a substitute for an action of ejectment. * * * Moreover, the relief in eject- ment is not ('oextensive with that which may be had upon an application to register * * « it needs no argument to show that a title could never, in ejectment, be settled as against the whole world, as can be done in an applica- tion to register." The several pieces of land must form one compact body or must have the identical chain of title ; must not be in different blocks separated by a street, nor in the same block separated by other lots owned bv others. Culver V. Waters, 248 111. 163. '' Procedure under the act is siime as in chancery practice unless as otherwise provided. O'Laughlin v. Covell, 222 111. 162. "All rules and principles of law applicable to equitable actions and proceedings, and rules and practice with respect to trial, introduction of evidence, findings and order of judgment, should so far as not clearly inappropriate or otherwise provided for by the act, be followed and applied." Owsley v. Johnson, 95 Minn. 168. It is well settled that proceedings to register title to land are of an equitable nature. Brown v. Haggadorn, 119 Minn. 491. " If applicant alleges lot is unoccupied, he must prove it, otherwise title can not be registered. Jackson v. Glos, 243 111. 280. Title can not be registered without proof of occupancy or vacancy. Brooke v. Glos, 243 111. 392; Mihalik V. Glos, 247, 111. 597. "If applicant asks for tax deed to 1 vigintillionth of the lot to be set aside as a cloud on the title, he must reimburse tax holders. Jackson ■;;. Glos. 243 111. 280. EUEAL CREDITS AND LAND EEGISTKATION. 23 (5). And the full names and addresses/^ if known, of all persons that may be interested by marriage or otherwise, including adjoin- ing^" owners and occupants. (6). The petition shall be accompanied by a plan made in accord- ance with the rules of court. California, §6. North Carolina, §5. Colorado, §4. New York, §379, 384. Illinois, §11, 14, 16. Ohio, §8, 10, 11. Massaphusetts, §20. Oregon, §9, 12, 13. Minnesota, §3374, 3375, 3378. Washington, §4. Mississippi, §5. Sec. 22. [Petition to be Filed and Docketed.] The petition shall be filed with the registrar of titles, and shall be forthwith docketed, numbered, and indexed by him in a book to be known as the land registration docket of his county or city. Sec. 23. [Notice of Lis Pendens.] The registrar shall also forth- with cause to be recorded and indexed in the proper record book of such county or city a notice, such as is required by law for notice of lis pendens, which shall be filed with the petition, and which shall have the full force and effect of a notice of lis pendens. Sec. 24. [Memorandum of Other Papers.] A memorandum of all other pleadings and papers filed with said registrar shall in each case be entered upon his registration docket under the proper number as aforesaid, and the papers in the cause and all writings, instruments and records filed with him shall be safely kept by him in his office, duly numbered, dated, and indexed. California, §11. New York, §370, 382. Colorado, §15, 16, 43. Ohio, §7, 36, 38, 92. Illinois, §16, 17. Oregon, §15, 16. Massachusetts, §12, 48. Washington, §15, 16, 42. Minnesota, §3380. Sec. 25. [Reference to Examiner of Titles.] Upon the filing^" of a petition for the registration of any land, the court shall refer the " Street address of applicants should be given, but may be supplied later. Creger v. Spitzer, 244 111. 208. ™ An abutting owner claiming interest in land to be registered can not attack constitutionality of act, nor can he plead that complaint fails to state a cause of action ; and if not shown by examiner's report to have any interest in tract to be registered and not designated by order of court as a party to be served, he is not a necessary party ; if made a party by complaint, it is subject to de- murrer. Duffy V. Shirden, 139 N. Y. App. Div. 755. " In Mississippi and North Carolina no reference is made to the examiner until after the publication of notice and service of process. In other States reference is made as soon as the application or petition is filed. In Illinois, however, the examiner does not report until after expiration of the time speci- fied in the order of publication for the appearance of defendants, and until opportunity is given them to contest the rights of the applicant. An abstract of title is required to be filed in Mississippi and North Carolina. In other States the examiner is required to report his opinion, and sometimes to report the facts on which it is based. Such a report as is contemplated by this sec- tion will probably disclose the name and addresses of all persons having any interest in or claim against the land. If any should be omitted or overruled, they will be discovered under subsequent proceedings. In New York an ex- aminer's certificate must accompany the complaint, and it is for the court to decide whether that is suflicient. It seems better to have an impartial examiner appointed by the court. As he has the powers of a master in chancery, he can compel the testimony of witnesses. He is required to make a report with full extracts from the records, so that the court can judge for itself of the condi- tion of the title. 24 RURAL CREDITS AND LAND REGISTRATION. same to one of the examiners of title provided for by the act, to examine and report thereon. Sec. 26. [Eeport of Examiner.] Such report" shall mclude: (1) An abstract of title to the land, made from the records and all other evidence " that can be reasonably obtained by the examiner. (2) Full extracts from the records to enable the court to decide the questions involved. (3) The names and addresses so far as ascertained of all persons interested in the land, as well as adjoining owners and occupants, showing their several interests, and indicating upon whom^^ and in what manner process should be served or notice given in accordance with the provisions of this act. - California, S6, 18, 19. Nortli Carolina, §8. Colorado, §17, 24. New York, §380. Illinois, §18. Ohio, §13. Massachusetts, §29. Oregon, §17. Minnesota, §3882. Washington, §17, 24. Mississippi, §8. Sec. 27. [Order of Publication in rem.] Upon the filing of the report of the examiner of titles, the court shall cause notice'* thereof to all persons shown therein to be entitled to the same, and " to all whom it may concern," to be published, and to be posted in the county or city where the land lies, in the same manner and with the same effect as an order of publication in other proceedings in rem, subject, however, to the limitation imposed by section 11 of this act.. California, §13. North Carolina, §6. Colorado, §17, 19, 20. New York, §385-6. Illinois, §20. Ohio, §14. Massachusetts, §30. Oregon, §19. Minnesota, §3383^. Washington, §17, 19, 20. Mississippi, §6, 7. Sec. 28. [Notice by Mail.] A copy of the order of publication shall in all cases be mailed by registered letter demanding a return, to every person interested, named in the petition or in the report of the examiner of titles whose address is given or known. "■ It will be presumed that the examiner considerer" only competent evidence in making his findings, if the report contains sufficient competent testimony to support such findings. McMahon v. Rowley, 238 111. 31. Substance of proofs need only be reported by examiner, unless otherwise required by some party. If evidence be not returned, party complaining should ask trial judge for rule on examiner. ( "reger v. Spitzer, 244 111. 208. Procedure where examiner fails to report evidence on request. Harmless errors not regarded. Mundt v. Glos, 246 111. 636. If no exception be taken to report of examiner, it is conclusive. Kenney v. Glos, 258 III. 555. Exceptions to master's report; practice on appeal. Welsh V. Briggs, 204 Mass. 540. '^ Objections to evidence must be made by exceptions to examiner's report Gage V. Consumer's Co., 194 111. 30. Rules for objections to examiner's report. Glos V. Hobane, 212 111. 222 ; Glos v. Holberg, 220 111. 167. '^ If State holds tax liens, it should be made a party. National Bond Co. v. Hopkins, 96 Blinn. 119. Persons whose claims are barred are not necessary parties. O'Laughlin c. Covell, 222 111. 162. Court can not disregard examiner's report nor decline to make defendant any party whom the examiner finds to have such an interest as to require that he shall be so named. Registration is void against any such party and his pi-ivies not made parties. Dewey v. Kim- ball, 89 Jlinn. 454. *'When application omits names of parties holding easements, but exam- iner's report gives names and recommends that 'they be made parties, if not made parties the registration is void and subject to collateral attack on account of constructive fraud. Riley r. Pearson, i20 Minn. 210. EUEAL CREDITS AND LAND KEGISTKATION. 25 ^^f^' ^^^'j [N'otice by Posting on Land.] The court shall also cause an attested copy of said order to be posted in a conspicuous place by the sheriii on each parcel of land included in the petition. It shall require such sheriff to go upon the lands and ascertain and report to court the names and addresses of any person or persons achially occupying the premises under any claini of title. Sec. 30. [Notice to State.] If the petition involves the determina- tion of any public rights or interests, the court shall cause a copy of the order of publication to be delivered by the registrar to the proper attorney for the State, county, or city. Sec. 31. [Other Notice.] The court may cause other or further notice to be given in such manner and to such person as it may deem proper. And such personal service of process as is required in equitable actions shall also be made upon residents of the State, not under disability, who are made known ^'^ to the court before final decree and can be reached by its process, unless such service be waived by appearance or otherwise. Sec. 32. [Effect of Notice.] Notice^' given under the preceding sections shall be in lieu of personal service of process, except as provided in section 31, and shall be conclusive and binding on all the world. California, §33. North Carolina, §6. Colorado, §20a. New York, §385-7. Illinois, §19, 21. Ohio, §15. Massachusetts, §31. Oregon, §18, 20. Minnesota, §3384. Washington, §20a. Mississippi, §6. ^"When a name of a claimant is known to applicant, he must be summoned and an order of publication does not bind him. "As he is not an ' unknown party ' the concealment of his claim is a fraud on the court, and the decree therein is as to him of no force and effect." Baart v. Martin, 99 Minn. 197. Failure to republish notice after amendment of description of lots in applica- tion is not fatal where all parties having or claiming to have any interest in the lots were personally served by summons or entered their appearance in writing. Tower v. Glos, 250 111. 121. If written consent be given to applica- tion for registration, no summons against such party is necessary, nor that he be given an opportunity to be heard. He can not appeal. Such written consent need not be acknowledged before a notary, and it is immaterial whether the statute expressly provides for such consent. Mooney p. Valentynovicz, 262 111. 355. ^"This statute changes the rule of law as to notice, but the legislature has the right to do this without violating the constitution. " Even if the proper construction of the provision were that it attempted to authorize judgment against a resident notified only by publication, yet the law can be given prac- tical effect, in which event only the particular provision would fail and not the whole law." People v. Simon, 176 111. 165. By section 31 service of process is required to be made on all known residents interested. In delivering the opinion of the court in the suit of Tyler r. Judges, 175 Mass. 68, Chief Justice Holmes said : "I am free to confess, however, that with the rest of my brethren, I think the act ou.ght to be amended in the direction of still further precautions to secure actual notice before a decree is entered, and that, if it is not amended, the .judges of the court ought to do all that is in their power to satisfy themselves that there has been no failure in this regard before they admit a title to registration." Acting on this suggestion the Massacluisetts act was amended in 1898 and in 1900 to this effect : " The court shall, so far as it considers it possible, require proof of actual notice to all adjoining owners, and to all persons \A'ho appear to have any interest in or claim to the land included in the application. Notice to such person by mail shall be by registered letter." In this section we have gone even further to meet all objections and to insure as far as possible the discovery and notification of all possible claimants. 26 RURAL CREDITS AND LAND REGISTRATION. Sec. 33. [Certificate of Service.] Certificates from the registrar and sheriff, or their deputies, showing the due execution of said order of publication and the mailing and posting of copies thereof, as re- quired by sections 27 to 30, inclusive, shall be filed among the papers in the cause and be conclusive" proof of such service. Colorado, §20a. New York, §387-8. Massachusetts, §31, 32. Ohio, §16. Mississippi, §7. Washington, §20a. North Carolina, §7. Sec. 34. [Time of Hearing.] After the expiration of at least 15 days from the publication and posting of said order of publication as aforesaid, the cause shall be set down for hearing. Sec. 35. [Guardian ad litem.'] And thereupon the court shall ap- point some discreet and competent (attorney at law) of the county or city in which the land lies, as guardian ad litem for all persons under disability, not in being, unascertained, unknown, or out of the State, who may have or appear to have an interest in or claim against the land. Sec. 36. [Answer to Petition.] Any person having any interest in or claim against the land, whether named in the petition and order of publication or not, may appear and file an answer at any^' time before final decree, unless such person shall have been served per- sonally with notice. Sec. 37. [Signature and Oath to Aanswer.] The answer shall be personally signed and sworn to, by the claimant, or in case of a cor- poration or a person under disability, by the person authorized to file the answer, unless the court, for good cause shown, otherwise direct. Part V. ADJUDICATION OF TITLE. Sec. 38. [Action on Eeport of Examiner of Titles.] After the expiration of the time as provided by section 34, the court may pro- ceed to take such action as may be proper,^" upon the report of the examiner of titles and all other evidence before it with reference to the rights of all persons appearing to have any interest in or claim against the land, and may refer the cause again or require further proof. California, §14, IS. Mississippi, §S. Colorado, §18, 23, 25. North Carolina, §8. Illinois, §23, 24. Ohio, §18, 19. Massachusetts, §36. Oregon, §23, 24. Minnesota, §3382. Washington, §18, 23, 2.5. 27 "rrijQ Torrens system of registration of land titles is diiTerent from the prevalent method of recording ; the manner of bringing lands under such system must be provided by statute; the proceeding is of a different nature from an ordinary action nt law or suit In chancery; and we can not say that the legislature acted unrea.sonably in providing for a rule of evidence applicable to the proceeding without extending it to all other forms of action in which the title of real estate Is involved." AVaugh v. Glos, 246 111. 604. ^The Colorado and other acts having special provisions on this subject provide that an answer may be filed within the time named in the summons, " or within such further time as may be allowed by the court." It is fairer and better to allow an answer at any time before final decree. "■ Under this provision the cause will be taken for confessed as to all persons who have not appeared and answered and the court will proceed to dispose of the claims of those who have not appeared. People r. Crissman, 41 Colo. 450, expressly decides that the court is not bound by the examiner's report. EUEAL CREDITS AND LAND EEGISTEATION. 27 Sec. 39. [Order of Survey, etc.] While the cause is pending before the examiner of titles, or at any time before final decree, and when- ever after initial registration a tract of land is subdivided, the court (1) May recjuire^" the land to be surveyed, after due notice to owners of adjoining land, by a competent siirveyor appointed by the court. (2) Shall order durable bounds to be set and a plat thereof to be filed among the papers of the suit. (3) Shall enter all necessary decrees for the establishment, decla- ration, and protection of the right and title of all persons appearing to have any interest in or claim against the land. North Carolina, §5, 13, 15. California, §14. New York, §381. Illinois, §25. Ohio, §19. ilassachusetls, §35. Oregon, §24. Mississippi, §5, 13, 15. Sec. 40. [Petition May Be Dismissed.] If in any case the peti- tioner so desires, or if the court is of opinion that the petitioner's title is not and can not be made proper for registration, the petition may be dismissed^^ without prejudice, on terms to be determined by the court. California, §12. Ohio, §20. Colorado, §26. Washington, §26. Minnesota, §3382. Sec. 41. [Amendments to Petition and Other Pleadings.] Amend- ments^^ to petitions or other pleadings, or the severance ^^ thereof, °°WheD property is subdivided for registration of any subdivision there must be proof thereof by plat or other evidence sufficient fur conveyance. Glos i\ Erhardt, 224, 111. 532. Deci-ee reversed because no plat \\us proved before registration, and it was impossible to locate the subdivision from the evidence. Glos V. Bragdon, 229 111. 223 ; Glos v. Grant Building Association, 229 111. 387. ' A- survey is of prime importance and necessity, especially in States in which lands have not been laid off by Government sur\'ey. 31 Petitioner must comply with terms fixed by court in withdrawing petition. McQuesten v. Commonwealth, 198 Mass. 172. After decree for petitioner, when on appeal and trial by jury a verdict is given for respondent, petition must be dismissed. Robinson v. Richards, 209, Blass. 295. A provision authorizing a dismissal of application does not violate constitution. Peters v. Duluth, 119 Minn. 96. Court must dismiss application, on motion, without prejudice, upon such terms as may be fixed by it. " The Torrens Act makes provisions for a special proceeding * * * In a special proceeding, it being within the power of the legislature to limit the jurisdiction of the court, the bounds of the court's jurisdiction are to be found in the limitations of the act under which its juris- diction is invoked. The legislature might have provided for a determination of conflicting interests if it had been so inclined. But it did not do so. * * * There is more or less difference in the Torrens Act as adopted in the several States. Where, as in Illinois, no provision is made for a voluntary dismissal, but the court is put to a final determination of the issue, it has been hekl that the court may grant relief as to such portion of the land as the evidence shows the title in fee to be in the applicant, and deny it as to the remainder. Glos V. Holberg, 220 111. 167. But our law was drawn upon a different theory." Krutz V. Dodge, 66 Wash. 178. ''Amendment of petition by substituting name of respondent for petitioner is Illegal and void. " If the respondents had wished to become petitioners they should have brought their own petition." Foss v. Atkins, 204 Mass. 337. Court properly permitted answer to be amended. Kuby v. Ryder, 114 IMinn. 217. °° Title to a portion of the property may be registered when properly estab- lished Glos V. Holberg, 220 111. 167. G holding tax title to a portion of land offered for registration, claims ownership. Examiner of titles reported against validity of G's claim, but applicant dismissed application as to said portion of 28 RUEAL CEEDITS AND LAND BEGISTEATION. including joinder, substitution of any person or persons, or discontin- uance of parties, and the omission or severance of any portion or par- cel of the land, may be ordered or allowed by the court at any time before final decree upon terms that may be just and reasonable ; and the court may require facts to be stated in an amended petition in addition to those prescribed by this act. California, §10. Illinois, §14. Colorado, §4. Oregon, §13. Massachusetts, §20, 21, 23, 27. Washington, §4. Minnesota, §3378. Sec. 42; [Land May be Dealt With, Pending Registration, Subject to Decree of the Court.] The land described in any petition may be dealt with pending ^* registration as if no such petition had been filed. (1) . But any instrument admitted to record under the general laws in relation to such land pending action on said petition shall also be docketed and indexed as required by section 22 of this act. (2). And any person who shall acquire any interest in or claim against such land shall at once appear as a petitioner, or answer as a party defendant, in the proceedings for registration, and such interest or claims shall be subject to the decree of the court. Massachusetts, §22, 28. New York, §898. Colorado, §82. Ohio, §12. Minnesota, §3395. Washington, §32. Sec. 43. [Certificates of Taxes Paid.] No final decree of registra- tion shall be entered until proof is made by certificate from the proper officer that all taxes and levies assessed on said land and then due or delinquent have been paid in full. Sec. 44. [Decree of Registration is Final, Quiets Title, and Binds All the World, Subject to Appeal, etc.] If the court, after final hear- ing, is of opinion that the petitioner has title ^^ proper for registra- . land. Held: G can not complain because his claim was allowed; also can not complain of the application, nor because not allowed to mal^e unnecessary amendments to his answer. Glos v. Murphy, 225 111. 58. See also Tower v. Glos, 256 111. 121. The provisions of this section have been broadened in the interest of business under the act. It covers the amendments to the Massachu- setts act and adopts suggestions made by Hon. Charles Thornton Davis, chief judge of the Massachusetts Land Court, as to the omission or severance of any portion or parcel of the land. '* Alienees of claimant pending registration proceedings are not entitled to an- swer as a matter of right, hut answer must be filed in a reasonable time; a delay of six months is unreasonable, and the court did not abuse its discretion in denying the right to answer after sucli delay. Brown v. Haggadoru, 119 Minn. 491. '^ Applicant must prove fee simple title in himself hy tracing back the Govern- ment grant or by statutory limitations. Gloa v. Holberg, 220 111. 167. Appli- cant must ^how title good against the world ; prima facie title not sufficient. Glos V. Wheeler, 229 111. 272. Defendant to application can not complain of title to lots in which he claims no interest. Mundt r. Glos, 231 111. 158. A good tax title may be registered. Tobias r. Kaspzyk, 247 111., 80. In a petition for registration of tax title, former owner was made defendant. Time for redemp- tion hart not expired when application was filed, but owner failed to take ad- vantage of this and the title wsls registered in name of claimant after redemp- tion period. HeM: A good registry, and that no one but former owner might have complained ; State could not. Gates r. Keiglier, 99 Minn. 138. Tax title registered subject to lien of city assessments. Gould v. City of St. Paul, 110 Minn. 824. Tax title registered. Hendricks v. Hess, 112 Minn. 252. Title by adverse possession under statute of limitations may be registered ; partition de- cree gives color of title. Peters v. Dicus, 254 111. 379. When one consents to reg- RURAL CREDITS AND LAND REGISTRATION. 29 tion, a decree of confirmation and registration sliall be entered ; and every decree of registration entered in accordance with the provisions of this act, (1) Shall bind =*= the land and quiet the title thereto, except as herein otherwise provided. (2) Shall be forever binding and conclusive upon all persons, resi- dent or nonresident, including the State, whether mentioned by name in the order of publication or included under the general description, " To all whom it may concern." (3) And shall not be attacked or opened or set aside by reason of the. absence, infancy, or other disability of any person aifected thereby, nor by any proceeding at law or in equity for rehearing or reversing judgments or decrees, except as herein especially provided. California, §9, 14, 15, 17. North Carolina, §8, 9. Colorado, S23, 27. Kew York, §391. Illinois, §25, 26. Ohio, §22. Massachusetts, §34, 37. Oregon, §24, 25. Minnesota, §3390. Washington, §23, 27. Mississippi, §8, 9. Sec. 45. [Form of Decree and Manner of Registration.] Every decree of initial registration and subsequent memorial shall be made in convenient form for transcription upon the certificate of title, showing the following items : (1) Owners. — Name and residence of the owner, and whether married or unmarried, and the name of the consort, if any. If the owner is under disability, the nature thereof, and if an infant, his age. If a corporation, the place of incorporation and its chief office. If a personal representative or trustee, the name of decedent or beneficiary. (2) Land. — Description of the land as finally determined by the court. The estate of the owner therein. Also all the rights and easements appurtenant to said land. And also a description of all particular estates, easements," liens, or other encumbrances, or rights to which the land or the owner's estate is subject, showing their relative priorities. (3) Other Matters. — Any other matter detei'mined in pursuance of the provisions of this act. Sec. 46. [Time of Taking Effect.] Such decree or memorial shall take effect upon the land described therein as of the day, hour, and minute it is filed for registration in the office of the proper registrar. istration decrpe is final as to him and can not be set aside at n subsequent term. Mooney v Valentvnovicz, 255 111. 118. Petitioner's right to fee in land nnder R II right of wav and station may be registered. Battelle v. N. Y. &c. Ry., 211 Mass 442. Petitioner must recover upon strength of his own title, and not upon the weakness of his adversary's title. Owsley v. Jackson, 95 Minn. 168. ^°A decree of registration can not be collaterally attacked for error or fraud. State V. Ries, 123 Minn. 397. . , ,. . „ ,- *■ v " " There is no provision in the land registration act for an application by the owner of an easement for the registration of his title * * * it seems to us therefore that the statute was not intended to afford a remedy by which owners of easements in the same land could have the nature and extent of (heir rights settled, and should be so construed." Minot v. Cottlng, 179 Mass. 325. Land court may determine boundaries of highway. First National Bank v. Woburn, 192 Mass. 220. 30 RURAL CREDITS AND LAND REGISTRATION. Sec. 47. [Registra's Memorandum.] The registrar shall forth- with record the said decree in the proper book of the court, and shall forthwith enter and properly number, minutely date, and index a memorandum thereof on his land registration docket and in the entry book hereinafter directed to be kept by him, and shall cause to be recorded and indexed a like memorandum in the proper deed book of the county or city. PART VI. Certificates of Title. Sec. 48. [Entry in Registry of Titles.] Said decree or memorial, or so much thereof as may be ordered by the court, shall be copied, numbered, signed, and sealed with the seal of the court by said regis- trar and registered in the book hereinafter directed to be kept by him, to be known as the register of titles, for his county or city ; and when so registered shall constitute the original certificate of title. Subsequent certificates covering the same land shall be in a like form, but shall be designated "transfer certificate No. (the number of the next previous certificate covering the same land), original certificate registered (date, volume, and page of registration)." New and appropriate numbers shall be adojjted for any subsequent certificates not covering the whole of said land. California, §15, IG, 23, 31, 57. Kew York, §394. Colorado, §31, 3G, 39, 41. Ohio, §22, 23, 37, 75, 76. Illinois, §29-33, 3S, 56. Oregon, §28, 32. Massachusetts, §39, 41, 53, 54. Washington, §31, 35, 3S, 40. Minnesota, §3391. Sec. 49. [Entry Book Kept by Registrars.] (1) Each registrar shall keep an entry book in which he shall enter, in the order of their reception, a memorahdum of any writing, instrument, or record filed with him for registration, and shall note in such book the year, month, day, hour, and minute of such filing. (2) Every such writing, instrument, or record shall be numbered, indexed, and indorsed with reference to the entry thereof and se- curely kept in the office of the registrar. (3) Every such entry shall be minutely dated, numbered, and indexed, and shall refer to the certificate of title hereinafter men- tioned, upon which, a^ well as upon its duplicate or duplicates, a memorandum of such entry shall be made. California, §22, 51. New York, §409. Colorado, §47. Ohio, §35. Illinois, §49-51. Oregon, §48-50. Massachusetts, §55. Washington, §46. Minnesota, §3402, 3406. Sec. 50. [Register of Titles Kept by Registrar.] Each registrar shall also keep a register of titles book, in which, under the direction of the court, he shall: (1) Register, number, and index the original certificates of title and all subsequent certificates of title, and all voluntary or involim- tary transactions authorized to be registered under this act ; and (2) Note thereon, and also upon the duplicate certificate thereof, when originally issued or subsequently presented, the day, hour, and RUEAL CBEDITS AND LAND BEGISTEATION. ,31 mmute of registration in each case in conformity with the date shown by the entry book. California §29. Nortli Carolina, §10. Colorado §35. New York, §395. Illinois, §35, 98. Ohio, §23, 82. Massachusetts, §55. Oregon, §84, 97. Minnesota, S3402, 3406. Washington, §34. Mississippi, §10. Sec. 51. [Certificate of Title.] (1) Every certificate of title en- tered m the register of titles as aforesaid, together with the memo- rials thereon, if any, shall be Imown as " the certificate of title." (2) Said certificate shall be conclusive evidence of all matters con- tained therein, except as otherwise provided in this act. (3) No erasure, alteration, or amendment of said certificate, or of any memorial thereon, shall be made except by order of court. California, §23, 30. New York, §395-397, 399. Colorado, §35, 37, 48, 57. Ohio, §23, 27, 72, 93, 98. Illinois. §35-37, 39. Oregon, §34r-3G, 38. Massachusetts, §40, 46, 107. Washington, §34, 36, 47, 50. Minnesota, §3404, 3408, 3439. Sec. 52. [Owner's Duplicate Certificate.] An exact copy of the certificate of title shall be made, except that it shall be conspicuously stamped or marked " owner's duplicate," and shall be delivered to the owner, or his attorney, duly appointed, upon his receipt therefor in writing upon said certificate of title attested by the registrar or his deputy; Sec. 53. [Certificates of Title to be Numbered, and Memorials Thereon to be Signed and Sealed.] (1) All the certificates of title of land in each county or city shall be numbered consecutively. (2) A separate folium, with appropriate spaces for subsequent memorials, shall be devoted to each title in the register of titles for each county or city. (3) Every certificate and memorial thereon shall appropriately conform to the requirements of sections 45 and 48 of this act as to particulars of form. (4) Every memorial made upon any certificate of title or duplicate certificate under any provision of this act shall be signed by the registrar and sealed with the seal of the court and minutely dated and numbered in conformity with the date and number shown by the entry book. California §23, 50. Mississippi §11. Colorado §36, 81. North Carolina §11. Illinois §35, 56. New York §394. Massachusetts §40. Ohio §23. 37. Minnesota §3403. Oregon §34, 55. Part VII. REGISTRATION OF TRANSFERS AND OTHER TRANSACTIONS. Sec. 54. [Transfers of the Whole of any Kegistered Estate.] When- ever the whole of any registered estate is transferred, the transaction shall be duly noted and registered in accordance with the provisions of this act. 32 RURAL CREDITS AND LAND REGISTRATION. Thereupon the certificate of title and any duplicate certificate relat- ing to such estate shall be canceled by the registrar of each county or city in which the land, or any part thereof, lies, if desired by the reg- istered owner, and a new certificate or certificates of title shall be en- tered in the register of titles for such county or city, and a duplicate or duplicates thereof issued, as the case may require. California §25, 26, 48. Colorado §38, 52, 60, 61. Illinois §34, 47, 57, 64. Massachusetts §56. Minnesota §3409, 3417, 3420. Mississippi §12. North Carolina §12. New York §413. Ohio §37. Oregon §33, 46, 56, 63. Washington §37, 51, 59, 60. Sec. 55. [Partial Transfers, Encumbrances, Leases.] If only a portion of such estate is transferred, or in case of an encumbrance or lease for more than one year, the transaction shall be duly noted and registered as aforesaid; and a new certificate of title shall be en- tered in the register of titles and new owner's duplicate certificate shall be issued for the portion transferred and the portion untrans- ferred, or a beneficiary's duplicate or lessee's duplicate may be issued as the case may require. California §25, 26, 49. Colorado §40, 49, 52, 63. Illinois §48, 64. Massachusetts §47, 57, 59. Minnesota §3417, 3420, 3422. Mississippi §13, 14. North Carolina §13, 14. New York §407. Ohio §3, 8, 39. Oregon §47, 63. Washington §39, 48, 51, 62. Sec. 56. [Memorials to be Noted.] All registered encumbrances, rights, or adverse claims affecting the estate represented thereby shall continue to be noted upon every outstanding certificate of title and duplicate certificate until the same shall have been released or discharged or terminated. California §43. Colorado §56, 57. Illinois §45. Massachusetts §58. Minnesota §3420. Mississippi §14. North Carolina §14. New York §403. Ohio §33. Oregon §44. Washington §55, 56. Sec. 57. [Registration of Voluntary Transactions.] In voluntary transactions the duplicate certificate of title must be presented alone with the writing or instrument filed for registration ; and thereupon, and not otherwise, the registrar shall be authorized to register the transaction, under the direction of the court, upon proof of payment of all delinquent taxes and levies, if any. North Carolina §14, 15. New York §406, 415. Ohio §44-49. Oregon §53-54, 58-6G. Washington §49, 51-2. California §58-65. Colorado §50, 52-3, 57-8, 63. Illinois §54-5, 59-67, 80-81. Massachusetts §60. Minnesota §3419, 3420, 3423. Mississippi §14, 15. Sec. 58. [Registration of Involuntary Transactions.] In involun- tary transactions, a certificate from the proper State, county, city, or court officer, or a certified copy of the order, decree, or judgment of any court of competent jurisdiction, or other appropriate evidence of compliance with the statute in relation to such transaction, when filed in the office of the proper registrar, shall be authority for him to register the transaction under the direction of the court. BUKAL CBEDITS AND LAND EEGISTEATION. 33 Provided that any writing or instrument for the purpose of trans- ferring, encumbering, or otherwise dealing with equitable interests m registered land may be registered with such effect as it may be entitled to haAe. California §72-3. New York, §417* (olorado, §60-61, 7:2. 76, 91. Ohio, §43, 50-6, 59-64, 66-7, Jrassacliusetts. §66, 70, 75, 77, 79-«; 78 Minnesota, §3419, 3420-7, 343(i. Oregon, §79-80, 83-90. 3434-5, 3441. Illinois, §80-81, 84-91. Mississippi, §14, 16. Washington, S.^0, 60. North Carolina, §14, 16. Sec. 59. [Production of Duplicate Certificate Required.] When- ever a duplicate certificate is not presented to the registrar along with any writing, instrument, or record filed for registration under this act, he shall forthwith send notice by registered mail to the owner of such duplicate requesting him forthwith to produce the same, in order that a memorial of the transaction may be made thereon ; and such production may be required by suitable process of the court, if necessary. Colorado, §-"iO, 7S, North Carolina, §14, 17. Illinois, §60, 64, 88. Ohio, §28, 37, 41, 74, 78, Massachusetts, S.)l, 71, 106. 100. Minnesota, §3413, 3419, 3430. Oregon, §59, 63, 87. Mississippi, §14, 17. Washington, §49, 77. Sec. 60. [Registration of Trusts, Conditions, Limitations, and Other. Equitable Interests and Estates.] Whenever a writing, instru- ment, or record is filed for the purpose of transferring registered land in trust, or upon any equitable condition or limitation expressed therein, or for the purpose of creating or declaring a trust or other equitable interest in such land without transfer, the particulars of the trust, condition, limitation, or other equitable interest shall not be entered on the certificates, but it shall be sufficient to enter in the entry book and upon the certificates a memorial thereof by the terms " in trust," or " upon condition," or other apt words, and to refer by number to the writing, instrument, or record authorizing or creating the same. And if express power is given to sell, encumber, or deal with the land in any manner, such power shall be noted upon the certificates by the terms "' with power to sell," or " with power to encumber," or by other apt words. And unless express power be given, as aforesaid, no subsequent transfer or memorial shall be registered on such certificate except by special order of court. Calif6rnia, §67, 70. Mississippi, §10, 19. Colorado, §64. North Carolina, §10, 19. Illinois, §68-9. Ohio, §42-3. Massachvisetts, §64-8. Oregon, §67-8. .Minnesota, §3429. Sec. 61. [Registration of Estates of Decedents.] (1) Lands and any estate or interest therein registered under this act shall, upon tiie death '* of the owner, testate or intestate, go to his personal rep- ** " We are not impressed with the soundness of the objections to those sections of the statutes which relate to the descent of lands on the death of a registered owner." (People v. Simon, 176 111. 165.) S. Doc. 351. 64-1 3 34 RURAL CREDITS AND LAND REGISTRATION. resentative in like manner as personal estate, and shall be subject to the same rules of administration as personalty, except as otherwise provided in this act. (2) But nothing herein contained shall alter or affect {a) The course of ultimate descent under the statute of descents and distributions and the rights of dower and courtesy, when duly registered ; {h) Nor the order in which real and personal assets respectively are now applicable in and toward the payment of funeral and testa- mentary expenses, debts, or legacies; (--•) Nor the liability of real estate to be charged with the pay^ ment of debts and legacies. California, §74-5. New York, §423-5. Colorado, §74. Ohio, §69-71. Illinois, §70-2. Oregon, §69-71. Massachusetts, §91. Washington, §73. Minnesota, §3436. Sec. 62. [Powers of Personal Representatives.] (1) Subject to the powers, rights, and duties of administration, the personal representa- tives of such deceased owner shall hold such real estate as trustees for the persons bj' law beneficially entitled thereto, (2) But, unless otherwise entitled by law to commissions, shall be entitled to no commissions thereon except in cases of necessary sales in due course of administration. (3) And the heirs at law or beneficiaries aforesaid shall have the same power of requiring a transfer of such estate as if it were per- sonal estate. Illinois, §70-72. Oregon, §69-78. Sec. 63. [Eegistration of Delinquent l^'axes and Levies.] (1) It shall be the duty of the treasurer or other collector of taxes or levies of each county, town, or city, not later than the day ef • in each year, to file an exact memorandum of the delin- quency, if any, of any registered land for the nonpayment of the taxes or levies thereon, including the penalty therefor, in the office of the proper registrar for registration. (2) If any such officer fail to perform said duty, he and his sure- ties shall be liable for the payment of said taxes and levies, with the penalty and interest thereon. Mississippi, §21. North Carolina, §21. Illinois, §82. Sec. 64. [Eegistration of Sales for Delinquent Taxes or Levies.] (1) Whenever any sale of registered land is made for delinquent taxes or levies, it shall be the duty of the treasurer or other officer making such sale, forthwith to file a memorandum thereof for regis- tration in the office of the proper registrar. (2) Thereupon the registered owner shall be required to produce his duplicate certificate for cancellation, and a new duplicate certifi- cate shall be issued in favor of the purchaser, and the land shall be transferred on the land books to the name of such purchaser, unless such delinquent charges and all penalties and interest thereon be paid in full within 90 days after the date of such sale. RUEAL CREDITS AND LAND REGISTRATION. 35 jinrl^li^"* ^ memorial shall be entered upon the certificate of title, privig:oSei7tionlLTc:rd^^^^^^^^ ^--'^^ *^« Mississippi, §22. 6regoM81-2. Sec. 65. [Same: Eegistration of Redemption.] In case of any reaemption under the preceding section, a memorial of the fact shall De duly registered; and if a duplicate certificate has been issued to any purchaser, the same shall be canceled and a new duplicate shall be issued to the person who has redeemed. nwi^u" [S,*™^= Eegistration of Final Sale, if No Redemption.] {i.) It there be no redemption under said section in accordance with law, It shall be the duty of the treasurer, or other collector of taxes of the county or corporation in which the land lies, to sell the same at public auction for cash, having first given reasonable notice of the time and place of sale. (2) The proceeds of sale shall be applied- First, to the payment of all taxes then due the State, and all levies then due the county, town, or city, with interest, penalty, and <;osts ; Second, to the payment of all sums paid by any person who pur- chased at the former tax sale, with interest and the additional sum of $5_; Third, to the payment of a commission to the officer making the sale of 5 per centum on the first $300 and 2 per centum on the residue of the proceeds; Fourth, to the satisfaction of any liens other than said taxes and levies registered against said land in the order of their priorities ; Fifth, and the surplus, if any, to the person in whose name the land was previously sold for taxes, subject to redemption, as pro- vided by section 64 of this act, his heirs, personal representatives, or assigns. (3) A memorial of the sale under this section shall be duly regis- tered, and a new certificate shall be entered and a duplicate issued in favor of the purchaser, in whom title shall be thereby vested as regis- tered owner, in accordance with the provisions of this act. Sec. 67. [Same: Future Interests Not Affected.] Nothing in the preceding section shall be so construed as to affect, or divest the title of a tenant in reversion or remainder to any real estate which has been returned delinquent and sold on account of the default of the tenant for life in paying the taxes or levies assessed thereon. California, §77-83. Nortli Carolina, §23. Illinois, §82-3. Ohio, §57. Mississippi, §23. Oregon, §81-2. Part VIII. SUNDRY PROCEEDINGS AFTER EEGISTRATION. Sec. 68. [Petitions Concerning Registered Land and Caveats and Decrees Thereon..] Any registered owner of any estate or interest in land or any person having any claim against registered land arising 36 RUBAL CKEDITS AKD 1.AND REGISTKATION. from any othei' cause than fraud or forgery since the land was regis- tered, may, within 90 days after the claim or cause of complaint shall have arisen, petition the court for relief in any matter within its jurisdiction; and it shall be the duty of the proper registrar, upon the request of any such person, to register a memorial that such petition has been or will be filed, which memorial shall se.rve as a caveat and be notice to all persons. (2). And whenever any registrar is in doubt as to the proper regis- tration to be made in any case, or when any person is aggrieved by any act or refusal to act by the registrar, the question may be like- wise submitted by petition. Sec. 69. [Same : Hearing and Decree.] After notice to the parties interested, the court shall hear the cause, and, with due regard to the provisions of this act, shall enter such decree as justice and equity may require, which shall be registered and take effect in like manner as the original decree for registration. Sec. 70. [Same : Service of Notice.] Notice in lieu of process under this act or otherwise in relation to registered land may be served upon any person by registered mail, and the post-office registry return receipt shall be evidence of such service and shall be binding, whether such person resides within or without the State; but the court may in any case order different or further service by publication once a week for four successive weeks in some convenient newspaper or otherwise, which shall be likewise binding. California, §39, 97-100. Colorado, §49, 62, 78, 82, 89. Illinois, §92-96. Massachusetts, §52, 105, 107. Minnesota. §3407, 3426, 3435, 3438-3439. Mississippi, §25. North Carolina, §25. New York, §383, 422. Ohio, §40, 68, 70, 79. Oregon, §91-95. Washington, §48, 61, 77, 81, 88. Sec. 71. [Proceedings Upon Loss or Destruction of Duplicate Cer- tificate.] (1). Whenever a duplicate certificate of title is lest or de- stroyed, the owner, or his personal representative, may petition the court for the issuance of a new duplicate. (2). Notice of such petition shall be published once a week for four successive weeks, under the direction of the court, in some con- venient newspaper. (3). Upon satisfactory proof that said duplicate certificate has been lost or destroyed, the court may direct the issuance of a new duplicate certificate, which shall be appropriately designated and take the place of the original duplicate. California, §27. Colorado, §51. Illinois, §58. Massachusetts, §104. Minnesota, §3412. Mississippi, §24. North Carolina, §24. New York, §414. Oregon, §57. Washington, §50. Part IX. LEGAL ErFECTS OF REGISTRATION OF TITLE. Sec. 72. [Effect of Eegistration as Notice to Subsequent Pur- chasers.] Every voluntary or involuntairy transaction which, if re- corded, filed, or entered in any clerk's office, would affect unregistered RURAL CREDITS AND LAND REGISTRATION. 37 SnotolLlt^"^^ registered in the office of the pi.^per registrar, fstrntion nn r '^' ^J" "°*^''^ ^« ^1^ Pe^soiis from the time of such reg- of th « nVf "P""'"^^^ '^ accordance with law and with the provisions re..iSrnff P^",^'"^ registered land in the county or city of such registrar to which it relates. rpS' '^?" [^ff^ct of Eegistration Upon AdAerse Claims.] Every onf i.^f u TT"?^ ^/ ^"y ^^*'^te oi' interest in land brought under this act shall hold the land free''° from any and all adverse claims, rights, or encumbrances not noted on the certificate of title, except— 1^ irst. Liens, claims, or rights arising or existing under the laws or (constitution of the United States which the statutes of this State can not require to appear of record under registry laws. Second. Taxes and levies assessed thereon but not delinquent. Ihird. Any lease for a term not exceeding one year under which the land is actually occupied. California §37-38, 41, 45^6. North Carolina, §25. Colorado §30. New York, §392, 400. Illinois, §40, 42-44. Ohio, §22 25 98 Massachusetts, §37-38, 54, 63. Oregon §39 Minnesota, §8393. Washington,' §30. Mississippi, §25. Sec 74. [Fraud or Forgery.] The protection of the foregoing sec- tion shall not apply to the benefit of a registered owner in cases of fraud or forgery * to which he is a party, or in which he is a privy without valuable consideration paid in good faith. Sec. 75. [Effect of Eegistration Procured Through Fraud or For- gery.] Any registration procured through fraud or forgery may be set aside by the court according to the rules of equity; but the rights and title of an innocent intervening registered encumbrancer or pur- chaser for value and without notice shall not be affected thereby except as provided in section 73. And in all such cases the injured ^ Registration is good against purchaser at tax sale «ho fails to take out tax deed, and bars any claim for reimbursement of taxes and special assess- ments paid by claimant while holding certificate of tax sale, upon which the time for the execution of a deed subsequently expired without any ilecil beint: taken. Snow V. Glos, 258 111. 275. * The effect of this and the preceding section is to give an absolute and unas- sailable title to every innocent registered purchaser for value, even though the registration of his title was obtained through fraud or forgery. In other words, the theory of this act is that every certificate of title imports absolute verity, and that the title passes by tlie transfer of certificates by registration as title to a genuine bank note or genuine negotiable paper passes by delivery, thus preventing the genuineness of any certificate being questioned. One of the chief benefits of this registration system is that it makes land titles commercial assets and facilitates transactions in lands. But to those legislatures which are unwilling to protect the title of innocent registered purchasers for value against forgery the following substitute section is recommended : Sec. 74. [Fraud or Forgery.] The protection of the foregoing section shall not apply to the benefit of a registered owner : (1) In cases of forgery, whether or not he be a party or priv\- thereto. (2) In cases of fraud to which he is a party or in wliich he is a pri^y with- out valuable consideration paid in good faith. 38 EUEAL CREDITS AND LAND EEGISTEATION. party may pursue all his legal and equitable remedies *" against the party or parties to such fraud or forgery. Colorado, §46. North Carolina, §18. Illinois, §42-3, 6-5. New York, §392, 402, 410. Massachusetts, §59, 70. Ohio, §41, 50, 88, 89. Minnesota, §3416, 3430, 3440-1. Oregon, §41-2. Mississippi, §18. Washington, §45. Sec. 76. [Land to Remain Forever Registered.] The obtaining of a decree of registration and the entry of a certificate of title shall be construed as an agreement running with the land, and the same shall forever remain registered land, subject to the provisions of this act and all amendments thereof. California, §44. North Carolina, §26. Colorado, §88. New York, §404. Illinois, §46. Ohio, §26, 86. Massachusetts, §44. Oregon, §45. Mississippi, §26. Washington, §38. Sec. 77. [No Rights by Adverse Possession of Prescription.] No title to, nor right nor interest in, registered land in derogation of that of the registered owner shall be acquired by prescription or ad- verse possession. California, §35. Mississippi, §27. Colorado, §34. North Carolina, §27. Illinois, §41. New York, §401. Massachusetts, §45. Ohio, §85. Minnesota, §3371. Oregon, §40. "Application to vacate a decree of registration for fraud is governed by gen- eral equitable considerations. " The fact that a statute does not expressly provide that fraud shall invalidate acts authorized to be done under it does not deprive the courts of the general power to protect the rights of the par- ties. * * * The 60-day limitation contained in the statute when these trans- actions occurred (now made six months by R. L. 1905, see. 3396) has no appli- cation to the case at bar. If the defrauded party is not guilty of laches he may attack the decree on the ground that it was obtained liy fraud, so long as the land stands registered In the name of the party who was guilty of the fraud." Baart v. Martin, 99 Minn. 197. In this case the court said : "An ex- amination of the Torrens laws of the different States and colonies discloses the fact that those of Minnesota and the Fiji Islands only contain no express exception of cases of fraud. All the original Torrens statutes carefully guard against the possibility of an owner being fraudulently deprived of his property." When applicant omits names of parties holding easements and examiner men- tions them and recommends that they be made parties, re'j;istration without making them parties is void and subject to collateral attack for constructive fraud. "Any other conclusion would go fai- to remove the safeguards which make the law constitutional. It would make a strong argument for holding that the act was invalid, because the proceedings do not constitute due process of law." Riley v. Pearson, 120 Minn. 210. Decree of registration is not good against claimant whose name, though known, is given incorreetlv in applica- tion, and who has no actual notice. Arnold v. Smith, 121 Minn, 116. The ques- tion whether an innocent purchaser of a registered Torrens title is protected against the fraud of his grantor in failing to disclose in the registration proceedings an unrecorded mortgage can not be raised by demurrer to answer pleading innocent purchase and a general denial of all the allegations of the complaint. Henry v. White, 121 Minn. 527. Where owner fraudulently fails to mention unrecorded mortgage in application, and does not make mortgagee a party to proceedings for registration, lield that innocent purchaser of regis- tered title takes it free of lien. " It is difficult to see what would remain of the indefeasible character of a Torrens title if the decree is open to collateral RURAL CREDITS AND LAND REGISTRATION. 39 Sec. 78. [Effect of Subsequent Dealings With Eegistered Land.] Except as otherwise specially provided by this act, registered land and ownership therein shall be subject to the same rights, burdens, and incidents as unregistered land, and may be dealt with by the owner, and shall be subject to the jurisdiction of the courts in the same *^ manner as if it had not been registered. (2). But registration''- shall be the only operative act to transfer or affect the title to registered land, and shall date from the time the writing, instrument, or record to be registered is duly filed and en- tered in the office of the proper i-egistrar: (3) Subject to the provisions of section 74 hereof, no volun- tary nor involuntary transaction shall affect the title to registered land until registered in accordance with the requirements of this act California, §32, 39, 48, 53, 55-6, 58, 71, S4-S, 89-07, 101, 104. Colorado, §41, 45-7, 52, 54-5, 59, 61, Go, 67-8, 70-1. 7G-7. Illinois, §38, 42^, 47 49, 52, 54-5, 59-67, 80-1, 84r-91. Massachusetts, §49, 50, r>5, 56, 59-62. 07, 69, 70, 72-3, 77-90. in:-! Minnesota, §3371, 3411. 3414-15, 3422-5, 3431-2, 3440. Mississippi, §14, 21, 28, 31. North Carolina, §14, 21, 28. New York, §402, 405-6, 410, 412, 415-21. Ohio, §26, 31, 35, 39, 44-56, 50-61, 66-7, 70-1, 77, 81, 84, 87-97. Oregon, §37, 41-3, 46, 48, 51, 53^, 58-06, 79-80, 83-90. Washington, §40, 44-6, 51, 53—1, 58, CO, 64, 66-7, 69-70, 75-6. Sec. 79. [Conflicting Claims Between Eegistered Owners.] In case of conflicting claims between registered owners, the right, title, or estate derived from or held under the older certificate of title shall prevail. Mississippi, §29. North Carolina, §29. attack as against one who purchases in good faitli for a valuable consideration, and with nothing to put him on inquiry as to fraud on the part of the appli- cant. Henry v. Wliite, 123 Minn. 182. " Good faith in the acquirement of title, witliin the meaning of tlie statute does not require ignorance of adverse claims or defects in the title. Notice, actual or constructive, is of no consequence." So held in a suit for registering title by adverse possession. Peters v. Dicus, 254 111. 379. "Mechanic's liens can not be foreclosed in registration proceedings. This section " .'Shows beyond doubt an intention on the part of the legislature to re- quire all sucli liens to be foreclosed in the usual manner and under the pro- visions of the general statutes providing for their foreclosure and enforcement." Reed v. Siddall, 94 Minn. 216. " " Our construction of this section is in keeping with the obvious purjiose of the Torrens act to create an absolute presumption that the certificate of registration in the registrar's office at all times speaks the last word as to the title, thus doing away with secret liens and hidden equities. * * * This is the distinctive feature, the vital principle of the Torrens system. For the courts to refuse to recognize and enforce it would be to emasculate the law, and by construction make it not the Torrens system of laud titles, but a mere change in the form of the record, a mere modification of the recording act." Brace v. Superior Land Co., 65 Wash. 681. A mechanic s lien, recorded prior to registration but with insufficient description of land, of which applicant had no actual notice, and which was not reported by examiner, is barred by regis- tration, and does not affect title. "The registration proceedings were regular, and there was no fraud in obtaining the decree. It follows that tlie plaintiffs were bound by the decree, although it did not reeo.gni/,e or csrallisli their lien." Doyle r. Wagner. 108 Jlinn. 443. 40 EUKAL CREDITS AND LAND KEGISTRATION. Paet X. ASSURANCE FUND. Sec. 80. [Fee for Original Registration.] Upon the tiling of the petition for the original registration of any land under this act there shall be paid to the registrar one-tenth of 1 per cent of the assessed value of such land as an assurance fund, which shall be subject to the trusts and conditions hereinafter declared for the uses and pur- poses of this act. Colorado, §8.3. North Carolina, §33. Illinois, §9. New York, §426. Massachusetts, §93. Ohio, §102. Minnesota, §3442. Oregon, §98. Mississippi, §32. Washington, §82. Sec. 81. [Payments Into State Treasury Upon Trust.] All moneys received by the registrars under the preceding section shall be kept in a separate account, and shall be paid into the State treasury upon the special trust and condition that the same shall be set aside by the * * * jjj tmgt as a separate fund for the uses and purposes of this act, to be known as the "land registration assurance fund," which said fund is hereby appropriated to the uses and purposes set forth in this act. California, §308. North Carolina, §33. Colorado, §84. New York, §426. Illinois, §100. Ohio, §103. Massachusetts, §94. Oregon, §99. Minnesota, §3443. Washington, §83. Mississippi, §32. Sec. 82. [Funds to Be Invested.] Said moneys, in so far as the same may not be required to satisfy any Judgment certified against the assurance fund under section 85 of this act, shall be invested by the treasurer of the State in State bonds in trust for the uses and purposes set forth in this act until said fund amounts to the sum of $500,000; but the income, or so much thereof as may be required therefor, may be applied toward the payment of the expenses of the administration of this act and the satisfaction of any such judgment. Whenever and so long as the face value of the bonds purchased as aforesaid equals said sum of $500,000, other moneys thereafter com- ing into said fund, together with any income not required for the purposes aforesaid, shall be transferred from the land registration assurance fund to the general treasury. Colorado, §84. North Carolina, §33. Illinois, §100. New York, §426. Massachusetts, §100. Ohio, §103, 111. Minnesota, §3443. Oregon, §99. Mississippi, §32. Washington, §83. Sec- 83. [Suits Against the Assurance Fund.] Any person who had no actual notice of any registration under this act by which he may be deprived of any estate or interest in land, and who is without remedy hereunder, may within two years next after the time at which the right to bring such action shall have first accrued to him or to some person through whom he claims, bring an action against the treasurer of the State in the * * * court of * * * for the KUEAL CKEDITS AND LAND REGISTRATION. 41 recovery out of the assurance fund of any damages to wMcb he may be eiititled by reason of such deprivation. (2) The assurance fund shall be defended in such action and in any appeal by the attorney general for the State. (3) The measure of damages in such action shall be the value of the property at the time the right to bring such action first accrued, and any judgment rendered therefor shall be paid as hereinafter provided. (4) If any person entitled to bring such action be under the disability of infancy, insanity, imprisonment, or absence from the State in the service of the State or of the United States at the time the right to bring such action first accrued, the same may be brought by him or his privies within two years after the removal of such dis- ability. Colorado §85, 88. North Carolina §34, 39. Illinois §101, 103. New York §427, 429. Massachusetts §95, 102. Ohio §104, 107-109. Minnesota §3444, 3446-3447. Oregon §100, 102. Mississippi §33, 38. Washington §84, 87. Sec. 84. [Defendants to Suits Against Assurance Fund.] If such action be brought to recover for loss or damage arising only through the legal operation of this act, then the treasurer of the State shall bo the sole defendant. (2) But if such action be brought to recover for loss or damage arising on account of any registration made or procured through the fraud or wrongful act of any person not exercising a judicial func- tion, then both the treasurer of the State and such person shall be made parties defendant. Colorado §86. North Carolina §35. Illinois §102. New York §428. Massachusetts §06. Ohio §105. Minnesota §3445. Oregon §101. Mississippi §34. Washington §85. Sec. 85. [Judgments Against the Assurance Fund.] If judgment be rendered for the plaintiff in any such action, execution shall issue against the defendants, if any, other than the treasurer of the State. (2) And if such execution be returned unsatisfied in whole or in part, or if there be no such defendants, then the clerk of the court in which the judgment was rendered shall certify to the the amount due on account thereof, and the same shall then be paid by said treasurer out of the assurance fund on warrant from said under the special appropriation hereby made of said fund for that purpose. (3) Any person other than the treasurer of the State against whom any such judgment may have been rendered shall remain liable therefor, or for so much thereof as may be paid out of the assurance fund, and said treasurer may bring suit at any time to en- force the lien of such judgment against such person or his estate for the recovery of any amount, with interest, paid out of the assurance fund as aforesaid. Colorado §86. Minnesota §3445. nilnofs §102. Ohio §106. Massachusetts §97. Washington §85. 42 BUBAL CBEDITS AND LAND EEGISTEATION. Sec. 86. [When Assurance Fund Not Liable.] The assurance fund shall not, under any circumstances, be liable for any loss, damage, or deprivation occasioned by a breach of trust, whether express, im- plied, or constructive, on the part of the registered owner of any estate or interest in land. Colorado §87. North Carolina §38. Massachusetts §101. New York §429. Minnesota §3446. Ohio §108. Mississippi §37., Washington §86. Sec. 87. [How Judgments Shall be Satisfied Out of Assurance Fund.] If at any time the assurance fund be insuiEcient to satisfy any judgment certified against it as aforesaid, the unpaid amount shall bear interest and be paid in its order out of any moneys there- after coming into said fund. Massachusetts §98. North Carolina §36. Minnesota §3445. Ohio §110. Mississippi §35. Part XI. FEES FOR REGISTRATION. Sec. 88. [Fees of Registrar and Other Officers of the Court.] The fees payable under this act shall be as follows : (a) [To Registrars.] For docketing, indexing, and filing any original petition and exhibits therewith and publishing and mailing tlie notices thereof, the postage required and $3. For docketing, indexing, and filing any other paper, 50 cents. For the entry of the original certificate of title and issuing one duplicate certificate and recording and indexing memorandum, $3. For each additional duplicate, 50 cents. For the registration of any writing, instrument, or record, or any memorial, including every act necessary therefor, $1. (b) [To Examiners of Titles.] For examining title and making report to the court, one-tenth of 1 per cent of the ^alue of the land, and postage, and $10. (c) [To Sheriffs.] For ascertaining and reporting to court the names and addresses of the persons actually occupying the premises described in any petition, $1. (d) For any service of the registrars, or of any sheriff or surveyor not specially provided for herein, such fee as may be allowed by law for like services in other cases. . California, §114. Mississippi, §30. Colorado, §9r)-6. North Carolina, §30. Illinois, §107-8. New York, §432. Massachusetts, §109. Oregon, §106-7. Minnesota, §344f)-r>(l. AA^ashington, §94-5. Part XII. APPLICATION OF ACT. Sec. 89. [Referendum.] This act shall be construed liberally for the purpose of effecting its general intent (but shall not apply to EUEAL CREDITS AND LAND BEGISTBATION. 43- land in any city or county, except the , until *^ it shall be so determined by the votes of a majority of those voting for or against the adoption thereof at any general or special election to be held [in such city or county,] after notices thereof shall have been duly posted for at least 30 days at each voting precinct [in such city or county by order of the judge of the court of such city or county] upon the petition of (100) freeholders residing in [such city or 50 freeholders residing in such county,] the question to be submitted by ballots upon which the words " For Land Registration " and " Against Land Registration " shall be printed, and one or the other of said expressions being stricken out as thfi voter may favor or oppose the act). Illinois, §110. Sec. 90. This act shall be so interpreted and construed as to effectu- ate its general purpose to make uniform the law of those States which enact it. *■' The referendum is not unconstitutional. Legislative power is not " dele- gated," but takes effect under certain conditions. People v. Simon, 17G 111. 1G5. Legislature may amend act without a second referendum. Brooke v. Glos, 243 111. 392. And to the same effect is Waugh v. Glos, 246 111. 604, and Mihalili V. Glos, 247 111. 597, and Culver v. Waters, 248 111. 163. _ Illinois act is not unconstitutional as local law because only yet adopted by Cook County. Tower V. Glos, 256 111. 121. o NATIONAL LAND -USE PLANNING COMMITTEE AND NATIONAL ADVISORY AND LEGISLATIVE COMMITTEE ON LAND USE Washington, D.C. + April 1933 THE PROBLEMS OF "SUBMARGINAL" AREAS, AND DESIRABLE ADJUSTMENTS WITH PARTICULAR REFERENCE TO PUBLIC ACQUISITION OF LAND Publication No. 6 United States Government Printing Office Washington : 1933 For sale by the Superintendent of Documents, Washington, D. C. - - Price S centi Publications previously issued by the National Land-Use Planning Committee and the National Advisory and Legis- lative Committee on Land Use : No. 1. Resolution with Reference to tlie Relationship of Urban Unemployment to Land Utilization and Settlement. ( Mimeographed. ) No. 2. Organization and Objectives of the National Land-Use Planning Committee and the National Advisory and Legislative Committee on Land Use. (Mimeographed.) No. 3. Suggested Principles of State Legislation Relating to the U?e of Underground. Waters. (Mimeographed.) No. 4. Conservation of the Grazing Resources of the Remaining Public Domain. (Mimeographed.) No. 5. First Annual Report of the National Land-Use Planning Committee. (Mimeographed.) Copies of these publications may be obtained from the Executive Secretary, National Land-Use Planning Commit- tee, United States Department of Agriculture, Washington, D.C. COMMITTEES The National Land-Use Planning Committee and the National Advisory and Legislative Committee on Land Use were established as a result of recommendations formulated by the National Con- ference on Land Utilization held at Chicago in November 1931. The official and non-official organizations represented on the two com- mittees were designated by the conference. The creation of the committees was the outgrowth of a long recognized need for promoting a unification of objectives and a coordination of policies and activities among the various Federal and State agencies dealing with land problems. The membership of the two committees is as follows : NATIONAL LAND-USE PLANNING COMMITTEE F. D. Parrell, President, Kansas State College Chairman. Nils A. Olsen, Chief, Bureau of Agricultural Economics, United States De- partment of Agriculture Vice Ghairmnn. L. C. Gray, Principal Economist in Charge, Division of Land Economics, Bureau of Agricultural Economics, United States Department of Agricul- ture Executive Secretary. H. G. Knight, Chief, Bureau of Chemistry and Soils, United States Department of Agriculture. S. H. McCrory, Chief, Bureau of Agricultural Engineering, United States Department of Agriculture. C. W. Warburton, Director of Extension Work, United States Department of Agriculture. R. Y. Stuart, Chief of the Forest Service, United States Department of Agri- culture. Sam H. Thompson, member. Federal Farm Board. John H. Guill, member. Federal Farm Loan Beard. Elwood Mead, Commissioner, Bureau of Beclamation, United States Depart- ment of the Interior. W. C. Mendenhall, Director, Geological Survey, United States Department of the Interior. Charles C. Moore, Commissioner, General Land Oflace, United States Depai't- ment of the Interior. A. R. Mann, Provost, Cornell University. H. A. Morgan, President, University of Tennessee. H. L. Shantz, President, University of Arizona. C. B. Hutchison, Dean, College of Agriculture, University of California. NATIONAL ADVISORY AND LEGISLATIVE COMMITTEE ON LAND USE Cully A. Cobb, Vice President and Editor, Progressive Farmer and Southern Ruralist Chairman. L. J. Taber^ Master, The National Grange Executive secretary. American Farm Bureau Federation: Charles E. Hearst, Vice-President, American Farm Bureau Federation. C. R. White, President, New Tork State Farm Bureau Federation. R W. Blackburn, President, California Farm Bureau Federation. Earl C. Smith, President, Illinois Agricultural Association. American Forestry Association: Henry S. Graves, Dean, School of Forestry, Tale University. m IT COMMITTEES American National Livestock Association: F. E. MoUin, Secretary, American National Livestock Association. American Kailvyay Development Association : Ralph W. Reynolds, Commissioner of Agricultural Development and Colonization, C, M., St. P. & P. R.R. American Society of Agricultural Engineers : L. J. Fletcher, Caterpillar Tractor Co. Association of American Agricultural Editors : Cully A. Cobb, Vice President and Editor, Progressive Parmer and Southern Ruralist. Dan A. Wallace, Directing Editor, The Farmer. James M. Kirkham, Assistant General Manager, The Deseret News. Chamber of Commerce of the United States : J. S. Crutchfield, President, American Fruit Growers', Inc. Farmers' Educational and Cooperative Union of America : John A. Simpson, President, Farmers' Educational and Cooperative Union of America. E. E. Kennedy, Secretary, Farmers' Educational and Cooperative Union of America. H. G. Keeney, President, Nebraska Farmers' Union. Glenn Miller, President, Iowa Farmers' Union. National Association of Commissioners and Secretaries of Agriculture : Arthur W. Gilbert, Secretary, National Association of Commissioners and Secretaries of Agriculture. National Cooperative Council : C. O. Moser, President, National Cooperative Council. N. P. Hull, President, Michigan Milk Producers' Association. Quentin P. Reynolds, General Manager, Eastern States Farmers' Ex- change. S. D. Sanders, President and General Manager, Washington Coopera- tive Egg and Poultry Association. The National Grange : L. J. Taber, Master, The National Grange. E. A. Eckert, Secretary, Executive Committee, The National Grange. Albert S. Goss, Master, The Washington State Grange. Fred J. Freestone, Master, The New York State Grange. National Wool Growers' Association : Fred R. Marshall, Secretary, National Wool Growers' Association. THE PROBLEMS OF "SUBMARGINAL" AREAS AND DESIRABLE ADJUSTMENTS WITH PARTICULAR REFERENCE TO PUBLIC ACQUISITION OF LAND INTRODUCTION Since its organization in the spring of 1932 the National Land-Use Planning Committee has been giving considerable attention to the problems of those areas that are not clearly adapted to use for farm- ing, generally spoken of as " marginal " or " submarginal." The committee recognizes that it is frequently difficult to precisely define a land-use margin that will differentiate areas submarginal for farming from areas that are supermarginal. In many regions lands above and below the margin are intermingled. A program of land utilization for such regions must deal with the region as a whole since the adjustments made for the submarginal lands affect more or less the economic position of the lands adapted to farming. The present report, therefore, may be said to apply to areas where the major use of the land (i.e. farming, forestry, extensive grazing, parks, or other uses) needs to be determined, particularly when the uncertainty as to major use is associated with significant problems of economic and social adjustment. The principal regions not in- cluded (if areas of considerable extent be considered) are regions of established and unquestionable agricultural use such as much of the Corn Belt, parts of the Cotton Belt, the eastern margin of the Wheat Belt in the Great Plains, extensive areas of forest lands located mainly in mountain regions, and areas in the Great Plains and Intermountain territory suitable only for grazing. The prob- lems covered by the present report occur m virtually all other parts of the country and even in portions of the regions mentioned. When the committee first assumed the task of national land-use planning, it recognized that an initial prerequisite consisted of a birdseye view of the problem, a definition of terms, a formulation of objectives, and a development of the general principles that should give direction to a sound program of land use. The present report is intended to supply this need so far as concerns so-called submargi- nal areas. However, while outlining the problem of " submarginal " areas in broad fashion, the present report deals in considerable detail with only one major segment of policy, namely, public acquisition. Subsequent reports will be devoted to other segments. While the present statement represents but a stage in the com- mittee's progress toward the development of a comprehensive pro- gram, it appears appropriate to make public these broad conclusions in order that they may afford a basis of general discussion. This report as a whole is based on a report prepared by its Technical 1 2 .THE PROBLEMS OP " SUBMAEGINAL " AREAS Advisory Committee on Submarginal Areas in collaboration with the Technical Advisory Committee on Forests, Parks, Recreation, and Wild Life Preservation Areas.^ CONDITIONS IN PROBLEM AREAS Problems of " submarginal " areas largely grow out of the fol- lowing conditions more or less prevalent in such areas : 1. The decay of prevailing systems of farming where farming formerly appeared well established. This decay is a result of changes in conditions of . competition that have affected adversely the comparative advantage of particular areas; changes in natural conditions, such as depletion of soil fertility, soil erosion, uncon- trollable insect pests, and long periods of deficient rainfall; mod- ifications in standards of living and in alternative opportunities of the farm population ; and depletion of farm woodlots. 2. The destruction of the forest without adequate provisions for replacement, the consequent local and national instability of the timber industry and dependent industries, and the resulting geo- graphic maldistribution of the supply of timber. 3. A sparse distribution of population, frequently owing in part to, or aggravated by, the decline of farming and mining, disap- pearance of the forests, or the decay of local industries, and resulting in unduly high costs of providing local public services. 4. In the West and South especially, the prevalence of tenure units of uneconomic size, owing largely in the former section to influence of national land policies and in the latter to the decline of the plantation system. 5. Ill-balanced condition of tax systems, which discourages the effective use of the land and in turn is attributable in part to a decline in tax-bearing ability owing to maladjustments in land use. 6. Extensive tax delinquency which cannot be dealt with by the traditional method of resale to private individuals, further aggra- vated by the consequent increased share of the tax burden imposed on the remainder of the tax roll. 7. Types of credit that have served to encourage the continued occupancy of areas ill adapted to agricultural use or that have been lacking in suitable provisions for facilitating the changes in owner- ship requisite for effective land utilization. 8. Because of declining population, disturbance of the normal relationship between community institutions and dependent pop- ulations, and disturbance of associated fiscal arrangements. The various conditions and tendencies mentioned react on one another. The decay of farming, for instance, is intensified by dis- advantages growing out of the passing of timber resources and by the special burdens imposed by sparseness of population or by a land tenure ill adapted to present economic requirements. DESIRABLE TYPES OF ADJUSTMENTS Local support for the development of land-use adjustment pro- grams will most likely be found, no doubt, in those areas con- 1 The membership of the technical committees will be found at the end of the report. ABEAS 6 fronted with extensive tax delinquency or serious dislocation in fiscal and institutional arrangements resulting largely from changes in or maladjustments in land use. However, there are serious problems in submarginal areas even when little tax delinquency has developed. Such delinquency may be comparatively unimportant because State aid relieves the local tax burden materially or because the popula- tion has been content with a low and comparatively inexpensive standard of public services, or finally because administrative prac- tices tolerate the nonpayment of taxes or settlement of back taxes on easy terms. Among the desirable adjustments in submarginal areas the follow- ing may be mentioned : 1. Readjust the tax burden and methods of taxation so far as possible to conform to the uses for which the land is adapted and to the tax-bearing ability of each class of land and type of use, in order to remove unnecessary penalties on the constructive use of land by private enterprise. Eeasonable concessions by the public, such as reduced or modified tax burdens, provisions for fire protection, and other services may make possible the retention and utilization of certain lands in private ownership that would otherwise revert to public ownership. Nevertheless, such concessions will be futile from the standpoint of public welfare unless private agencies will, in return for these concessions, so use their lands as to promote the general welfare. 2. In some areas the submarginality of farming is owing not primarily to the natural disadvantages of the land itself but rather to the unduly small size of existing farms or other disadvantages in farm organization. Continued private ownership and utilization may be made possible by modifications in farm organization. An adequate program would include ascertaining what changes in farm ownership and organization would make possible the continued cul- tivation of such areas, and facilitating these changes by a program of education and by such credit arrangements as would permit the necessary modifications in systems of farming. 3. Likewise, continued private utilization of forest land may be furthered by encouraging a better type of forest and wood-lot management on areas found to be adapted to private utilization. In some areas it may be possible to consolidate scattered tracts or farm wood lots for purposes of cooperative management, cutting, hauling, and marketing. Such cooperation, if made effective, would go far toward insuring better methods of management and more satisfactory results, particularly for farm wood lots and other small holdings of timberland. 4. For sparsely occupied areas where costs of local services are greater than the value of occupied tracts, work out a program of re- grouping the population in accordance with the adaptability of va- rious types of land for particular uses, and with a view to effecting economy in the provision of public services and utilities. It would not be proposed to compel people to move to suitable localities. Where they are disposed to move they should be encouraged and aided. In many cases such a regrouping may have to be effected by public ac- quisition of some or all of the occupied holdings through exchange or purchase, justified by the economies effected in local government 4 THE PROBLEMS OF " STTBMARGINAL " ABEAS as well as by other considerations. There are some areas of sub- marginal land, however, not yet ripe for a program of regrouping. 5. After sparsely settled areas have been thus evacuated, or per- haps in some cases even before evacuation, it would be important to take steps to prevent resettlement. Insofar as the evacuation is effected by public acquisition, the public is in a position to prevent resettlement, but it may be desirable also to supplement this measure of control by zoning regulations to prevent the settlement of adjacent privately owned areas not hitherto occupied and not well adapted to maintaining a reasonably dense population. 6. Discontinue attempts to resell tax-delinquent lands better adapted to public than to private utilization, and restrict such re- sales in any case to areas where they will not entail an undue burden for public services. Consolidate areas acquired by tax delinquency into units suitable for administration. Acquire by purchase or exchange such additional areas as are especially adapted to fulfill the objectives in public ownership hereafter outlined. 7. Provide an adequate program of protection both for private and for public lands and determine a sound program of use for both public and private lands^ — for forests, recreation, grazing, wild life, or such combinations of these uses as may seem practicable. 8. Revise the institutional organization of the community, planning the location of schools, roads, and other utilities so as to conform to the general program of land utilization. 9. Effect such a regrouping of units of local government and re- distribution of governmental functions as may be desirable, by reason of changes in land utilization and in the distribution of pop- ulation, with a view to achieving greater economy and efficiency. In this and subsequent reports these suggestions will be considered in greater detail. LAND CLASSIFICATION Land classification is a necessary basis for most of the economic and social adjustments in submarginal areas that have been men- tioned. There is much vagueness, however, as to the procedure and machinery necessary for land classification. At the outset it will be found helpful to distinguish a physical classification from an economic classification. A large amount of technical work is now under way for the purpose of classifying land from one or another physical standpoint, such as soil surveys, topo- graphic surveys, the definition of climatic zones, and various types of ecological classification. Such classifications are devoted to physi- cal phases of land character, without reference to transitory eco- nomic and social conditions affecting land use. Sometimes various types of physical classification are combined in a land inventory. Insofar as they relate to physical conditions these surveys and classifications are of permanent value. In part they may be predi- cated on some transitory elements such as stand and condition of timber, location of cultivated areas, and farmsteads. The transitory elements employed iri physical classification, however, are relatively permanent by comparison with an economic classification. In line with the foregoing comments, it has been agreed that a physical classification will be most helpful if it is related not to a single character phase significant for the growth of plants (in- THE PROBLEMS OF " SUBMAEGINAL " AREAS 5 eluding trees), such as soil, topography, rainfall, temperature, etc. but to such a complex of these various phases as may constitute a land type.^ Such a classification will not constitute an economic judgment or classification as to use, though it will constitute an important basis of such judgments. The Forest Service has been engaged since its inception in classi- fying lands within national forests. For many years the Geological Survey has been classifying the other federally owned lands with respect to their adaptability to agriculture and grazing, a task that is about one-half completed. The National Land-Use Planning Committee has arranged for a physical classification applicable only to surface uses of rural lands of the United States, which is being undertaken by the United States Bureau of Chemistry and Soils in cooperation with State experiment stations." The effort will be made to grade each of the different classes of land according to the capacity and adaptability for those principal uses for which the land appears most likely to be employed, as measured by such criteria as yields, carrying capacity for pasture animals, rate of growth of timber, susceptibility to erosion or soil exhaustion, etc. For some areas the classification and grading will necessarily be rough and tentative because of lack of adequate data. Nevertheless, this project will provide a means of estimating statistically the area physically adapted to different uses, as well as provide an in- dispensable basis for the economic classification and economic planning hereafter discussed. Undoubtedly for certain areas adequate data are lacking on acre yields of crops or carrying capacity of pasture to make possible an effective rating even of the physical productive capacity of the land, much less sound economic judgments as to its proper utilization. It is important that systematic steps be taken to provide the needed data. Those who undertake the physical or economic classification of land need reliable data for several years on yields and carrying capacity of various land types — especially those difficult to classify economically — under the broad average of conditions of use prevailing on farms. The object of economic classification of land is to indicate what use of the land is economically most desirable under existing or reasonably prospective international, national, and local require- ments and demand for various private and public purposes. Where the emphasis in economic land classification is mainly in determining where agricultural use of the land is justified from the standpoint of private economy, the classification is associated with the concept of marginal land, and its correlatives submarginal and supermarginal. The marginal concept may be, but is not commonly, extended to any other specific use under a profit-seeking economy. (The term " marginal is frequently incorrectly employed as a synonym of "submarginal.") Marginal land may be defined in general terms as land where the agricultural output just balances input, including a proper allowance 2 The term " land " is used to mean " the sum total of the factors of the geographic environment- in which plants grow." " Plans for this project were initially outlined by Technical Committee No. Ill, of which Dr. C. F. Marbut is chairman. 170227°— 33 2 6 THE PBOBLEMS OF " StTBMAEGINAL " AREAS for depreciation and interest on capital other than land and for the labor of the operator and his family. This comparatively simple concept, however, requires numerous further refinements and involves numerous difficulties in definition and in application, soiiie of which are as follows : 1. Marginality must be expressed with reference to a specific use of the land. Land that is submarginal for one use may be supermar- ginal for another use. 2. It is obvious, moreover, that one must have in mind a period of time. It has never been proposed to judge the marginality of a par- ticular class of land for agriculture by the results of a single year. If a long period of years were the basis of judgment, land which is supermarginal on the average might yield subnormal returns for a sufficient number of consecutive years to occasion serious difficulties to the operators. The time element is also significant in determining whether the interest and depreciation on fixed capital are to be con- sidered in deciding whether the land shall continue to be farmed. 3. The economic adaptability of land must be judged in terms of the degree of efficiency in use that may be expected of most of the people who will occupy and employ it, not in terms of the exception- ally efficient nor the extremely inefficient. 4. Prospective prices and costs, as well as technological changes, are necessary considerations in economic land classification. Eco- nomic forecasting is difficult and uncertain, but it is necessary in most economic judgments, private or public, made as a basis for a program of action. Submarginal lands often are so intermingled with better grade lands, especially in areas of broken topography, that a given farm unit may contain land very inferior for crops but of special value for woodlots, pasture, or other uses. Under such conditions a judgment as to marginality normally must be applied to the farm unit and, in some instances, adjustments in farm boundaries may make the differ- ence between submarginal and supermarginal Classification of an individual unit. Marginality for private uses must be formulated in the light of possible readjustments in the economic environment, such as modi- fications in tax burden, improvements in production, transport, and marketing facilities, etc., that may exert a very real influence in making possible the profitable utilization of land for a given purpose. In many parts of the United States there are farm families who disregard the balance between input and output and occupy land where output is normally less than input when both are valued in commercial terms. Such lands would have to be regarded as sub- marginal from a commercial standpoint, but in many cases lack of experience or resources precludes moving to another environment or engaging in other occupations. Included in this category are moun- taineers and residents of isolated communities who follow a tradi- tional mode of life that may be submarginal when compared with the standard of living prevailing in areas of commercial agriculture ; together with part-time farmers and families relying on other sup- plementary incomes including people of advanced age who are sup- ported .by their children. In this connection the prevalence of un- employment and the possibility that technological unemployment may continue for some time cannot be ignored. AREAS 7 The above points illustrate the fact that the commercial distinction between submarginal and supermarginal land — a concept formulated to define what is economically sound from the standpoint of private enterprise motivated essentially by the objective of profit-making — must be supplemented by other considerations when viewed from the standpoint of public interest and policy with respect to land use. The economic adaptability of land to particular forms of use, or what may be called economic land classification, therefore, will con- sist largely of the formulation of economic programs for particular areas — ^that is, economic planning. It will be oriented from the broad standpoint of public policy. In view of the constant fluctua- tion of the basic economic conditions that determine the form of land use, it is obvious that economic classification cannot be made once for all. On the contrary, it must be elastic and subject to modi- fication as conditions change. It should be undertaken mainly as a vehicle for the determination and application of land-use policies. The procedure and degree of intensity will depend largely on the objectives contemplated at the time the classification or land-use program is carried out. PUBLIC ACQUISITION OF LAND As indicated above, one of the most important methods of dealing with the problems of submarginal areas is public acquisition of land, or the retention of land that is reverting to public ownership through tax delinquency. There is no phase of land utilization concerning which there is greater lack of definiteness than the question of the justifiable ob- jectives and proper scope of public ownership, and the proper spheres of the various agencies of government in the acquisition or retention of land. The questions involved are numerous and com- plex, and an effort must be made to clarify them if we are to make progress in the development of a national land policy. It is not a sound principle for the public to purchase land solely because private owners find it unprofitable to retain it. Its purchase should be justified by definite and sufficient public advantages. As for lands reverting to public ownership through tax delinquency however, it may be found necessary and desirable for the public to retain ownership even though the advantage to the public would not have been such as to justify purchasing it. The principle just stated — purchase by the public only when there are definite and sufficient public advantages — may helpfully be ap- plied to the numerous proposals for the public acc[uisition of sub- marginal farms. As a long-run program the acquisition or retention of submarginal farms may be advantageous where such acquisition results in the regrouping of population that will make possible economies in local government, while promoting more favorable relationship between supply and demand of farm products, removing the opportunity for exploitative resale of such farms to misguided purchasers, and retarding the development of continuance of " slum " conditions in these areas. However, in such an undertaking one should not lose sight of certain important considerations. For reasons already mentioned, many submarginal farms should con- 8 THE PROBLEMS OP " StTBMARGINAL " AREAS tinue to be occupied by the existing holders until more adequate means of earning a livelihood can be provided. The rapid whole- sale purchase of such farms might seriously dislocate local fiscal and institutional arrangements by the removal of such lands from the tax roll. Frequently the purchase of submarginal farms is an expensive method of acquiring land for forests, because of the small size of the units and their sporadic location. I. IMPORTANT ADMINISTRATIVE CATEGORIES FOR WHICH LAND IS RESERVED OR ACQUIRED BY PUBLIC AGENCIES The distinctions between the several major uses of publicly owned land are at present extremely vague. The following points are sub- mitted with a view to greater clarification : 1. The concept of national parks was formulated by Secretary of the Interior Lane in 1918, viz, " Scenery of supreme and distinct quality, or some natural feature so extraordinary or unique as to be of national interest or importance."' This definition has hitherto provided the basis for the establishment and administration of national parks. 2. The term " national monuments " has been applied to areas characterized by prehistoric, historic, or scientific features " so extra- ordinary as to be of national interest or importance." 3. The term " State park " should be restricted to areas selected primarily because of scenic characteristics of better than average quality. 4. Small areas reserved or acquired primarily because of high prehistoric, historic, or scientific importance and possessing no out- standing scenic value should be distinguished from State parks by some different designation. The term " monument " is perhaps applicable for want of any other more aptly descriptive of this type of public holding. Areas designated as State parks or mon- uments should be sufficiently distinctive to give them at least State- wide interest and appeal. Unfortunately, at present this principle is frequently violated, and in many cases the distinction between public parks, public forests, and recreational or public shooting grounds, is not maintained. 5. Certain areas in which the flora has continued largely in a virgin state have been set aside in order that their primitive char- acter might be maintained for scientific study, or for inspirational and recreational purposes. These have been designated " wilderness or primitive areas." Other areas, designated as " natural areas," have been established in the effort to preserve the original biological complex by protecting both flora and fauna. Both wilderness and natural areas may be merely reservations for special protection and use of virgin areas within national parks, national or State forests, or other units of public land administration. 6. In the interest of clarity the term " forest " when applied to public holding should be restricted to those areas which in the main support tree growth and where the functions of timber production and watershed protection are not subordinate to other social and economic objectives. So far as consistent with the major purposes, forests should be so administered as to permit utilization of forage resources, afford a habitat for game and fish, and provide for recre- THE PROBLEMS OF " SXTBMARGIN AL " AREAS 9 ation and other public benefits. Some of the areas included within national forests, especially in the West, have little significance as timber producing areas. They were reserved primarily for water- shed protection through range control. 7. There are other areas of great importance as watersheds which do not in the main support tree growth and are not properly classifiable as forests. These areas comprise the major drainages of some of the principal streams of the United States. Such areas should be designated as watershed protection areas. Within such areas lands now in public ownership which are not arable and have no present or potential timber value should be so administered and managed that erosion, pollution, and torrential run-off will be held to the minimum. Such lands are generally useful for grazing. Control and management of the reserved and unreserved Federal public domain lands in this category for the purposes of preserving the land and its resources from destruction and unnecessary injury, to provide for orderly use, improve and develop the range, and stabilize the dependent livestock industry, are recognized as proper governmental responsibilities where private ownership is imprac- ticable or will not satisfactorily serve these purposes. Tax delin- quent lands in this category also should be managed for the same purposes.* 8. Areas of value primarily for active recreation but lacking in qualities of scenic, prehistoric, historic, or scientific interest, should be designated by some term other than " park " or " monument ", such as " recreation ground " or " beach ", preceded by the name oi the owning agency such as " State ", " county ", or " metropolitan." 9. Wild life refuges are acquired or reserved for the primary purpose of preventing the extinction or undue depletion of desirable species. Some of them are absolute wild-life sanctuaries. They may also occur as supplemental designations within areas acquired or reserved for other purposes. 10. Publicly owned land not falling within the other categories herein defined may be set apart, under suitable regulations, for hunting, and may be designated public shooting grounds. Such areas will usually lack the distinctive scenic, historic, or scientific character to comply with the standards for parks or monuments, the adaptability to commercial timber production that would justify designation as forests, or the accessibility to population required of recreation grounds or beaches. The use to be made of them obviously differentiates them from wild-life refuges. 11. There are about 6,000,000 acres of commercial forest land and approximately 24,000,000 acres of grazing land held in an unallotted status within Indian reservations that should be maintained per- manently in consolidated ownership for forest and range use and for water conservation under public administration as Indian forests and grazing reserves. One such Indian forest unit in Minnesota was established by Congress in 1916. 12. All public holdings of the park, monument, or recreation ground type should be extensive enough so that the public agency ' The national land-use committees have Issued a detailed reiwrt and recommendation on this class of land, entitled " Conseryatlon of the Grazing Resources of the Remaining Public Domain, Publication No. 4." 10 THE PEOBLEMS OF " STJBMAEGIN'AL " AREAS administering them may provide adequate protection for their major values, and to prevent or discourage developments likely to cheapen the immediate surroundings or deprive the public of its due return — ^intangible as well as tangible — ^from these holdings. 13. Public reservations acquired or established primarily for the preservation of scenic, prehistoric, historic, inspirational, or scien- tific values, or for outdoor recreation (whatever the name by which such reservations are designated, and whether for National or State administration) should normally be kept free from industrial ex- ploitation of their natural resources. (Areas acquired primarily for parks, monuments, or recreation may temporarily require a type of administration which subordinates the major use to the develop- ment of conditions favorable to that use, as for instance growing a forest cover on a cut-over area.) 14. The designation of an area as a park, monument, forest, or wild-life refuge under any form of public administration (the prob- lem of city parks, playgrounds, etc., being excluded) should be associated with definite standards as to the characteristics of the area selected and as to the major purpose for which the area is to be used; but these standards, as applied to reservations other than those established primarily for scenic, recreational, historic, or scien- tific reasons, should envisage use of such secondary uses as the area may afford, subject to the limitation set forth in 10, above. II. MAJOR OBJECTIVES IN PUBLIC ACQUISITION OF LAND Primary objectives in the acquisition of land for parks, monu- ments, wild life, and recreational areas indicated in the above dis- cussion may be secondary objectives in the acquisition of land for public forests ; on the other hand, primary objectives in the acquisi- tion of land for forests may be secondary objectives in the estab- lishment of parks, monuments, wild life, and other recreational areas. Frequently public land acquisition may be justified by a composite of objectives rather than by a single objective, and whether the area is designated a forest, a park, or in some other category is largely a matter of what objectives in administration appear to deserve greatest emphasis. 1. Timber conservation (including the growing of replacements or new supplies and demonstration forests). This is a primary objective in the establishment of public forests. Thus far, under the Weeks and the Clark-McNary Acts, this objec- tive, except where associated with the objective of watershed pro- tection, has been restricted by appropriations to the establishment of a limited number of demonstration forests for the purpose of work- ing out sound methods of forest management and demonstrating them to other owners. As shown later in this report, it is important to give this objective a broader connotation. Public forests might well supplement private forests to the extent necessary to insure an ample supply of timber of the kinds and quantities requisite to meet future needs, and to effect a more desirable and efficient geographic distribution of the supply of standing timber. The latter consideration may frequently justify public acquisition of particular areas for timber production that would not be especially significant as a mere addition to total national stock of timber THE PROBLEMS OP " STJBMAEGINAL " AEEAS 11 Location is significant in determining a public acquisition program from the following standpoints: (a) Nearness to regions of consumption. (6) Local accessibility to facilities for transport and marketing. (c) Local dependence of established industries (including farm- ing) for materials, employment, and market outlets. 2. Watershed protection. — This objective includes maintenance of navigability, protection of watersheds of important irrigation proj- ects, soU conservation, protection of sources of municipal water supply and sources of hydro-electric power, mainly by prevention or diminution of erosion, pollution and torrential run-on. The reservation -of lands to regulate water flow is authorized in the measures providing for reservation of public lands wholly or in part covered with timber or undergrowth for national forests. The purchase of forested, cutover, or denuded lands found to be neces- sary to the regulation of the flow of navigable streams, is authorized in the Weeks and Clark-McNary Acts. In several instances also the reservation of lands in the public domain not associated with national forests has been authorized as a means of protecting municipal water supply. 3. Provision of suitable habitat for game and fish. 4. Satisfaction of wants for scenery and recreation. 5. Elimination and prevention of sparse and scattering occupancy, with a view to economy in local government. 6. Prevention of settlement on areas unsuited to farming. 7. Combination of objectives. — In varying degrees the different objectives outlined are likely to occur in combination and frequently are interdependent. Therefore the administration of each unit of public ownership should envisage the realization of all the objectives compatible with the major purpose for which the unit is created. To summarize: Our national policies of reservation and acquisi- tion of land should be addressed definitely to the task of conserving specified natural resources, realizing a better regional balance in providing by public ownership for various uses, stabilizing local industries and employment, and providing for various needs of local populations. III. TYPES OF LAND SUITABLE FOR PUBLIC OWNERSHIP The selection of land for public acquisition or retention will be dictated by two groups of considerations : first, the types of land that will best fulfill the objectives in public ownership, and second, the availability and cost of the land. In the course of the next few years the second is likely to be a dominant consideration, for funds for purchase may be difficult to obtain. Consequently those objec- tives that can be 'satisfied by land acquired through tax delinquency should receive special attention at this time. This does not imply, however, that it is desirable to suspend acquisition by purchase, for delinquent lands are not usually of such character as will provide the conditions for a well rounded program of public ownership. It is possible, however, that retention of lands acquired by public agencies through delinquency might be justified by somewhat less weighty objectives and advantages than would be necessary to justify acquisition by purchase. 12 THE PROBLEMS OE " SUBMAEGINAL " AHEAS It may be well to review the principal objectives listed above from the standpoint of types of land that are required or that can be made to serve the purpose. 1. Watershed protection. — This objective may be subserved by maintaining a suitable land cover consisting either of forest growth or of other plant species, by various engineering devices for con- trolling or equalizing the flow of water, and by proper methods of cultivation on arable lands, depending upon conditions of climate and soil, and nature and amount of water-supply requirements of the dependent region. On the extensive treeless areas of the West, particularly on the public domain, the maintenance of an adequate cover is affected by the use. Experience has shown that competitive use of the range results in serious deterioration. So long as the land is in public ownership, regulation of use will be requisite to restore the cover and prevent its further impoverishment. Where the aim is watershed protection by forest cover, density of forest growth and type of topography appear to be more impor- tant than degree of maturity or type of timber. It is conceivable, therefore, that were this a sole objective it could be satisfied with reasonable success by lands with an immature growth of timber, suitably located to effect the essential objective. There is, however, a large and definite public advantage in so managing the forest cover as to realize from it not only the protection of the watershed but also the maximum production of merchantable forms of timber for the use and necessities of the people, thus securing a higher economic return and deriving from such lands a large part of the costs of its protection and management. It is possible that forests, through transpiration, may reduce the aggregate local run-off, both maximum and minimum. In an area suffering from torrential floods this would be an advantage, but it might be a disadvantage where water is scarce and maximum annual flow is an important consideration. That timber growth serves to protect land against erosion is un- questionable, but whether it serves this purpose better than some other forms of land cover is less certain. This entire subject of the protective and regulative influence of various types of land cover needs further systematic investigation. 2. Demonstration forests. — For this objective considered alone, wide diversity in species and age of stand is desirable in order to demonstrate all phases of forest management. It appears probable, however, that if our forest ownership program were as extensive and widely distributed geographically as it should be, forests utilized mainly for other objectives could be made to serve the essential purposes of demonstration. It might only be necessary to add small areas not of the prevailing forest type in order to give the requisite diversity. In some areas, however, experiments may be needed on land hitherto used for agriculture and grazing, entirely detached from public forest. 3. Provision of adequate future tiriiber supply. — ^While public agencies have begun an acquisition program east of the Rockies, the progress to date is markedly insufficient to supplement private production in providing for the timber needs of the future. The determination of the ultimate scope and character of such a program is now difficult because of the uncertainties of future requirements. AKEAS 13 Volume of utilization is in large naeasure a function of supply, but also reflects notably the influence of technical developments which make substitutions possible. However, enough data are avail- able to emphasize the need for an enlargement of public acquisition beyond the present programs, and to indicate in a measure some of the elements of an enlarged program. Important conditions and trends in timber requirements and in present and future timber supply, insofar as they indicate the scope and character of an acquisition program for timber pro- duction, may be briefly summarized as follows : (a) The average annual drain on all the forests of the United States during the period 1925-29 (about 16 billion cubic feet an- nually) is nearly double the volume of annual growth. (&) Considering all classes of timber use, total drain from cutting diminished during the decade preceding 1929, due to the depression in agriculture, the completion of agricultural and railway expansion with their great demand for lumber and ties, the shifting of popula- tion to cities with resulting decrease in use of wood for fuel, adoption of various substitutes in construction, and the unavailability of sup- plies of certain qualities. However, until the advent of the depres- sion in 1929 the total drain of saw timber had not diminished materially since 1920. There was a considerable expansion in cer- tain uses, such as pulp and cellulose, but more than half of the pulp- wood" requirement was supplied by foreign countries. In spite of the change in the ratio of drain to growth, however, the abnormal dis- tribution in age and quality — resulting from cutting without adequate replacement — foreshadows a long period of inadequate supply before a sustained yield consistent with normal requirements can be attained. To be sure, there are certain adjustments that would materially miti- gate the outlook if they could be effected within the next few years. In some localities a larger part of the requirements for fuel and minor products could be supplied by use of tops and improvement cuttings, and certain wastes in harvesting timber could be eliminated, but thus far private timber owners, for the most part, have not found these steps profitable. The aggregate volume of growth could be gradually increased as larger areas are transferred from the status of mature forests which are subject to but little growth, to the status of growing forests; but the growing of forests on privately owned cut-over areas is now taking place, in the main, only from such natural reproduction as occurs without special provision in cutting methods. Better fire protection and better control of insects and disease would reduce the drain and materially increase growth and natural repro- duction. In the eastern half of the country steps will be necessary to control grazing and the practice of burning associated with graz- ing wherever such practices retard desirable natural restocking. (c) The future timber supply, particularly of saw timber, is also a matter of concern from the point of view of regional distribution. According to recent estimates by the United States Forest Service- estimates which, in the absence of a detailed inventory, are admittedly rough— nearly four fifths of the remaining stand of saw timber and nearly nine tenths of the softwood saw timber are m the Eocky Mountain and Pacific Coast States, the great bulk of them m the latter. The annual drain of saw timber east of the Kockies is greatly 14 THE PROBLEMS OF "sTJBMARGIKAl" AREAS in excess of the growth of saw timber in that territory. Of the saw timber east of the Rockies more than one half is in the South, which, while containing only one eighth of the total stand of saw timber, is supporting 46 percent of the total annual cut of saw timber. Exclud- ing the South, a large proportion of the remaining saw timber east of the Rocky Mountains has been so culled or otherwise depreciated that its economic availability has been greatly reduced. The regions east of the Rockies, therefore, are approaciriing a period not very distant when a much larger proportion of their normal requirement for saw timber must be supplied, if at all, from regions west of the Great Plains. (d) Ninety-eight percent of all the national cut of trees of cord- wood size is in the forest regions east of the Rocky Mountains. The comparatively high ratio of growth to drain for timber of cordwood size, the short rotation period necessary to grow timber of cordwood size, and the fact that the area growing such timber is probably be- ing increased through the cutting of saw timber might appear to indicate that the outlook east of the Rockies for timber of cordwood size is not unduly serious. A more important consideration, however, is the fact that a large proportion of the better quality should be re- tained as growing stock for ultimate saw-timber production. (e) In general it does not appear necessary for public agencies to acquire for the primary purpose of forest production lands now employed for other uses, except such farm lands as are required in blocking up or rounding out administrative units or where submar- ginal farm lands would be preferable for purposes of planting to cut- over areas that would have to be cleared of weed trees and under- growth. The present forest area of the Nation would be entirely ample for the purpose of maintaining the present aggregate annual cut of timber if the entire area were fully stocked and handled on a sustained-yield basis, and if the drain by fire, insects, disease, and wind, etc., could be held to the lowest practicable limit. (/) In the eastern half of the United States forest growing stocks for saw-timber production are not satisfactory, because of (1) the extensive cut-over areas with little or no young growth; (2) dis- proportionate distribution of age classes; and (3) the low density of stocking on established stands. These conditions are being inten- sified by the excessive drain on the younger saw-timber classes, and by the cutting of young hardwood stands for cordwood. (ff) East of the Rockies, it is essential to reduce the drain on the remaining supply of saw timber and to conserve the stands of young growth so that they may reach saw-timber size. This would involve some curtailment of the cut of saw timber or timber approaching saw-timber size, which can probably not be accomplished without a considerable extension of public ownership of timber of those classes. Unless the pressure toward liquidation of saw timber can be some- what relieved by the extension of public measures for fire protection and for modifications in taxation, private self-interest in the next few decades may continue to lean strongly toward rapid exploitation. (A) There is a disposition to consider that the role of Federal and State agencies in land acquisition should be to take over de- nuded areas and leave private enterprise free to complete the process of sweeping away the remaining stands of merchantable timber. 15 This is the line of least resistance because of the ease of acquisition of such lands. It is true that if such areas are to be reforested, especially where planting is requisite, it will be necessary to depend in large rneasure on public ownership. However, the facts outlined above indicate the necessity also for a considerable acquisition of more advanced stands to promote a better regional balance in age distribution and in relation of growth to drain. This policy also will result in placing on a sustained yield basis public holdings of more significant extent than would be possible under a policy of taking over denuded areas. If private methods of forest exploita- tion were effectively regulated, either by the forest owners them- selves or by governmental action, the public acquisition of mature or nearly mature timber would, of course, be less necessary. {{') In a program of public acquisition for timber production special emphasis should be given to the location factors already mentioned. Some of these, especially the interdependence of forests and established industries, including farming, imply public acquisi- tion of some mature or nearly mature timber as a means of economic stabilization. 4. Providing a habitat for wild life. — For a large proportion of the animals of woodland habits, the quality of the stand of timber is perhaps of little importance, although a variety in the species of timber is desirable. Cut-over areas with young growth of low quality for prospective timber will serve as a habitat for many species of animals, but the relation of proper cover to skillful game management is a subject that deserves more study. Nonforested areas maj' also provide a habitat for certain species. 5. Scenic and recreational use. — For scenic values a fair degree of age in timber and a diversity of species are a distinct advantage, and adaptability to commercial uses may be of less consequence. Likewise for those types of recreation which are definitely connected with scenic appreciation, fairly mature timber is desirable. For hunting and fishing, woodland areas containing young growth of noncommercial species, or areas of nonforest type, may serve. Loca- tion will be of special importance where the recreation to be pro- vided involves more or less regular patronage from week to week by urban populations. For intermittent recreational use mainly for hunting and fishing or summer cottages, more distant areas are feasible. 6. Effecting economies in local government. — In most cases of land acquisition (whether of forest or nonforest land) this objective will be at least an incidental consideration. In some parts of the country it may be a primary objective, associated with other objec- tives. IV. DIVISION OF RESPONSIBILITY AMONG DIFFERENT PUBLIC AGENCIES IN ACQUISITION OF LAND In areas where public rather than private ownership appears desirable, a sharp division of function as between Federal, State, and local governments would be difficult to state in general terms, espe- cially because in most cases several objectives will be combined in different degrees of importance. Federal and State participation of course, will be subject to constitutional limitations. Where a 16 THE PROBLEMS OF " SUBMAKGINAl. " AHEAS particular objective is of major significance a few general lines of emphasis, however, may be recognized, as follows : 1. Protection of watersheds of navigable or otherwise important interstate streams should be a Federal responsibility. 2. Insuring stability of timber supply for the Nation as a whole and for extensive interstate regions of consumption is also primarily a Federal responsibility. 3. Timber production exclusively for the support of resident industries is primarily a State responsibility, but since the aggregate of provision for such local industries may contribute to the broader objective listed as no. 2, the Federal Government has a considerable interest in such local undertakings. 4. Preservation of scenic values-, provision of habitat for game, and provision of recreational areas involve both Federal and State responsibility, depending upon whether the benefits are derived mainly by the people of a single State or whether they are nation- wide in scope. Adequate and uniform distribution of even local benefits, however, is of very real Federal concern. 5. The acquisition of areas in order to effect economies in local government is of immediate concern to local and State governments. Obviously, whatever the primary objectives in acquisition, whether principally^ Federal or essentially of State and local concern, the relationship to local institutional and fiscal organization will neces- sarily be an important consideration. 6. The above analysis of objectives in public acquisitions of land indicates that both Federal and State governments have an interest in most of the objectives considered singly, though in varying degrees, and that this mutuality of interest is intensified by the fact that in specific areas the various objectives are likely to occur in combination. Only by considering the combination of objectives in each case can it be determined whether the center of gravity lies mainly in the domain of Federal or of State interest. Many States, however, including a number where the forest problem is most extensive and serious, lack a well developed public opinion, financial ability, or both, for devel- oping an adequate program of public ownership of land. In such States, Federal acquisition should be especially emphasized, but with due reference to the attainment of objectives of national concern. A policy of encouraging States to go as far as they are able in the development of State resources is desirable in order to make the most of State and local initiative and to avoid undue Fed- eral centralization. V. SCOPE OF PUBLIC ACQUISITION OF FOREST LANDS It has become increasingly apparent that, for forest land other than farm lots, and even for a large proportion of the wood lots, the role of private enterprise, under the economic conditions of the present and probably of the next decade or two, will consist mainly in harvesting those timber crops that are merchantable or approach- ing merchantable age. The growing of timber by private enter- prise is confined mainly to natural reproduction of species of quick growth and chiefly in connection with merchantable holdings owned by timber or woodworking establishments on a replacement basis. In some parts of the country farmers have imdertaken more con- THE PROBLEMS OF " SUBMARGIKAL AREAS 17 structive methods of managing their wood lots, and a vigorous ex- ^nsion program may lead to an expansion of this tendency. Recognition of the noncommodity objectives cannot normally be expected of private ownership, except sporadically and on a basis of exclusive use and enjoyment. Private forest owners are not likely to give much emphasis to such considerations as the stabili- zation of local industries or the effect of their methods of utilization on local governmental structure and finance. Private owners will have little concern in promoting, through their individual methods of management, a more effective regional distribution of timber supply and achieving a better regional balance as between growth and drain, nor are they likely to feel responsibility in regard to the broader aspects of watershed protection, prevention of erosion, or elimination of sparse and scattering occupancy of land, except in respect to their general interest as citizens. The Federal acquisition of forest land east of the Rocky Moun- tains by purchase has been limited thus far to less than '5,000,000 acres, out of a total projected purchase program of over 12,000,000 acres. No land has been purchased for forests west of the Great Plains, but in addition to the area in national forests set aside by reservation a net area of approximately 815,000 acres has been acquired by exchange of other lands or stumpage. Most of the land purchased consists of mountain areas at the headwaters of navigable streams or demonstration forests in the South and in the Lakes States. At present the purchase program is virtually suspended for lack of funds. The States and local governments east of the Rockies own less than 11,000,000 acres of timberland, even including that which is employed for parks. Thus, nearly three fourths of our total forest area is east of the Rockies, but only about 4 percent of it is in public ownership (and therefore in the main subject to constructive management) , as compared with the public ownership of nearly two thirds of the forest area west of the Rockies. An authoritative estimate of the amount and loca- tion of forest land that should be publicly acquired is not possible without detailed survey. In but few civilized countries, however, does the percentage of forest land publicly owned fall below 25 percent, ranging from this up to above 90 percent. It was estimated by the special Senate Committee on Forestry in 1924, after pro- longed hearings, that at least 30 percent of the woodland area east of the Rockies should be in public ownership, or about 105,000,000 acres. This was made before the extension development of tax delinquency and other conditions outlined in this report emphasized the need for public ownership. Omitting woodland in farms, this would be nearly one half of the woodland in private ownership (about 230,000,000 acres). Some of the woodland in farms, par- ticularly submarginal farms, together with the associated area of nonwooded land, may be found desirable for public acquisition. As already indicated, it is not proposed to purchase submargmal farm lands unless public ownership appears clearly justified by the advantages to be gained. ... Considering the diversity of objectives in public acquisition and the unstable condition of our forest industry as compared with most other civilized countries an estimate of from 75 to 90 million acres east of the Rockies yet to be acquired by the various governmental 18 THE PROBLEMS OP " SUBMARGIN AL " AREAS agencies — Federal, State, and local — appears to be a reasonable objec- tive. In spite of the extensive percentage of public ownership in the West, some of the objectives mentioned, especially effecting econ- omies in local government, may justify ultimately some public acquisition there — at least the taking over and blocking up of cut- over areas that become tax delinquent. Furthermore, much of the virgin timber in national forests is on land which not only is inac- cessible but probably submarginal for the purpose of growing timber, while some of the cut-over land now in private ownership that may become public land through tax delinquency is adapted to the growing of timber when the time shall arrive for such a development. VI. PUBLIC ACQUISITION OF LAND FOR WILD-LIFE REFUGES Under the provisions of the Migratory Bird Treaty and the Migratory Bird Conservation Act, a well-defined program for the establishment of Federal migratory bird refuges has been formu- lated. The work of selecting the specific areas for such use by the United States is well advanced. To fulfill the essential objectives, such areas should be located along the main lines of migration, should comprise marsh and woodland contiguous to or embracing water areas, and preferably each refuge should contain as much as 20,000 to 30,000 acres. It is not proposed to utilize lands that are of greater economic value for agricultural purposes. There are also certain ranges on the public domain in the West that should be reserved for the purpose of preserving from extinction buffalo, antelope, mountain sheep, and other species. Beyond this, it does not appear necessary for Federal agencies to retain or acquire extensive areas for the primary purpose of wild life refuges. The bulk of the needed refuges for migratory water- fowl, and all refuges needed for game on private forest, farm, and grazing lands should be supplied by States, counties, and munici- palities or by private effort. Action in this direction by States has already been extensive. A survey of State holdings just completed shows an aggregate of 7,342,427 acres devoted to migratory bird refuges and 36,259,117 acres in upland game refuges, making a total of 42,282,799 acres.^ The distribution by States, however, is very irregular. Many States east of the Rocky Mountains have but small areas devoted to these purposes. In general, public lands acquired primarily for forests and other purposes will provide much of the area required for the propagation and habitat of wild life. Within National and State forests there are areas of wet land especially adapted to breeding and spawning, or lands peculiarly suited for the various purposes of " primitive " or "wilderness areas." Such lands should be designated for such special management, as these objectives require, under the general administration either of the forest authorities or of the special ad- ministrative agencies having to do with the conservation of wild life; but in either case with the closest cooperation. Steps. already " In the compilation of these data, made by the Biological Surrey, an effort was made to avoid the inclusion of State forests and similar areas devoted to other primary uses However, the returns from the States are not clear in all cases as to the distinction It is not improbable also that the large areas reported by Western States include Dubllc lands that are leased to stockmen subject to their use as refuges. THE PROBLEMS OP " SXJBMARGINAL " AREAS 19 taken along these lines should be further extended. Outside of these specialized areas, the greater proportion of the lands publicly ac- quired primarily for other purposes can serve as a habitat for* wild life. VII. PUBLIC ACQUISITION OF "LAND FOR URBAN WATER SUPPLY A number of cities have acquired lands for reservoir purposes and the protection of essential watersheds from which their supply is derived; but all the needs have not been met. Areas acquired for this primary purpose are adapted to secondary uses, with suitable safeguards, including commercial timber production, recreation, and game and fish. This major purpose should be kept definitely in view in outlining local or regional land use programs. VIII. OTHER RECOMMENDATIONS WITH RESPECT TO LAND ACQUISITION 1. That provision be made by the Federal Government for complet- ing the acquisition of lands within the boundaries of designated national park, forest, and wild-life refuge units through exchange or purchase as rapidly as conditions warrant. 2. That in order to determine the extent of the areas that require public ownership for most effective use, and thereby to pave the way for an enlarged program of acquisition, early provision be made for joint surveys by Federal and State Governments to answer the fol- lowing important questions, among others: (a) What areas should be acquired by the public; (b) what objectives are' to be accom- plished in each case by such acquisition; (c) whether Federal or State acquisition is indicated by the objectives to be attained; (d) what administrative status should be recommended for each area — that is, whether it should be classed as a park, a forest, a game refuge, or other designation; (e) what is the order of importance of the various areas in point of time of acquisition; (/) what necessary local fiscal and institutional readjustments are associated with such acquisition. It would be too much to expect that such surveys could develop land-use plans that would be final and complete for all time. They would lay down a basic pattern, flexible and subject to modi- fications as conditions change. 3. That in making such joint surveys in the next few years, special attention be given to areas which appear to be unsuited for private ownership as indicated by extensive and chronic tax delinquency. By " chronic tax delinquency " is meant delinquency over a period of years, including not only recent years of acute depression but also the years preceding, when prices and income were such that tax delinquency was comparatively small in the case of land reasonably well suited for private ownership and development. In areas of chronic tax delinquency, reversion of land to some form of public ownership and control already has been more or less extensive, indicating that the owners did not deem it worthwhile to hold the land and that others did not regard it worthwhile to buy the tax certificates at tax sales. In some States, land involved in chronic tax delinquency may not have reverted to public ownership because of indefinite laws govern- 20 THE PROBLEMS OF " SUBMAEGINAL " AREAS ing tax sales and reversion of property, or lax administration, or both. In a survey to ascertain areas that may be specially adapted to public 0T?,nership, land that has not reverted for these reasons may well be considered in the same general category as chronically tax delinquent land of which a substantial part already has reverted. Classification of land, according to the uses to which it is best suited is basic to a definite policy of taxation in relation to land use. When such classification has been made, the next problem is to determine whether public or private ownership would be more con- ducive to the desired utilization. If it is decided that the land should be in private ownership, it follows that it should be taxed in a manner that will aid, or at least not hinder, the utilization for which careful land classification shows it to be best suited. If the land is subject to chronic tax delinquency, the immediate problem ordinarily is one of reducing tax levies if it is to remain in private ownership. Such reduction in taxes may require either (1) removal of families from large parts of the area in order to reduce expendi- tures for schools, roads and other community improvements and services to a point commensurate with the taxable capacity of the property, or (2) reliance upon State or Federal aid to maintain these improvements and services. The latter clearly is not desirable, except as it may be necessary to help maintain the minimum of improvements and protection, for example, forest roads and fire protection. If public ownership is adjudged to be more conducive to the de- sired utilization, definite steps should be taken to acquire State ownership by systematic purchase from present owners, by bidding in the land at tax sales, or by organizing for effective State control, the areas that have reverted to the county or other local unit. Land reverting to public ownership through tax sales should auto- matically become subject to State control rather than to the control of counties or minor civil divisions. In many cases such units of local government are financially unable to assume such a load, nor can they provide the type of administration consistent with the broader objectives in public land ownership. Moreover, units of local government are subject to excessive pressure to return delin- quent lands to the tax roll irrespective of whether they are adapted to private or to public ownership. Tax claims of the various taxing jurisdictions against the property should be provided for by some equitable adjustment. It is reasonable to suppose that, on the whole, the State is more competent than the local jurisdictions to manage land in accordance with some program of land utilization. "Wliere local public ownership appears justified by the existence of a definite local interest and pride in the use of the land, together with local ability to finance the maintenance and administration thereof, the State may find it advisable to transfer the ownership of specific areas to local jurisdiction, with proper reservations to insure sound administration . In no case should the State resort to tax levies for the purpose of acquiring land for public ownership and use beyond the taxable capacity of the land and strict laws and rigid enforcement relative to delinquency and tax sales. The legality of such a course might be questioned and certainly it would be morally indefensible. It THE PKOBLEMS OF " STJBMAKGINAL " AREAS 21 was not intended that the power of taxation should be used as a weapon to confiscate private property for public purpose, even if the property in question should appear best suited for public ownership. Generally speaking, taxes on land over a period of years have been too high in relation to the income derived from land. The burden has been especially severe in recent years because of the drastic fall in income without a corresponding reduction in taxes. This is a general problem that can be met only by reduction in expendi- tures, and by tax revision so that the other sources of revenue will be utilized to supplement and to replace a part of the property tax on land. Assuming reasonable adjustment in the tax system itself, laws pertaining to tax delinquency, tax sale, and reversion to public ownership, should be definite and enforced with precision. In many States, such laws need revision. However, in times of serious, prolonged depression, as in the present, undue hardships often may be imposed upon owners by rigid enforcement of tax laws designed for normal times. Definiteness of legal provisions and rigidity of enforcement are not ends in themselves, but should be adjusted to extreme conditions growing out of prolonged depres- sion or other causes affecting whole regions and over which the property owners have no control. The State cannot afford to be arbitrary and relentless in " foreclosing " for taxes, while at the same time urging private creditors to refrain from foreclosing to satisfy claims against property. More definite laws and exact administration may, in times like these, cause unjustifiable hardship in areas of good agricultural land where tax delinquency now is extensive because of the present depression, but where delinquency is exceptional in normal times. But in normal times, it is neither conducive to proper land utili- zation nor helpful to property owners, for laws pertaining to tax sale and reversion of property to be indefinite and their enforcement lackadaisical. The National Land-Use Planning Committee has established a number of technical advisory committees to aid it in fact finding and the development of conclusions. The membership of the two tech- nical advisory committees mainly responsible for this report is as follows : TECHNICAL ADVISORY COMMITTEE I, ADJUSTMENTS IN SUBMARGINAL AREAS WASHINGTON, D.C., MEMBERS L. C. Gray, Principal Agricultural Economist, in Charge, Division of Land Economics, Bureau of Agricultural Economics, United States Department of Agriculture. Chairman. W. R. Ohapline, Chief, Division of Range Research, Forest Service, United States Department of Agriculture. K. E. Marsh, Assistant Chief, Branch of Research, Forest Service, United States Department of Agriculture. C. F. Clayton, Senior Agricultural Economist, Division of Land Economies, Bureau of Agricultural Economics, United States Department of Agriculture. E. W. Sheets, Chief, Animal Husbandry Division, Bureau of Animal Industry, United States Department of Agriculture. 22 S. H. Hastings, Principal Agronomist, Division of Western Irrigation Agricul- ture, Bureau of Plant Industry, United States Department of Agriculture. J. A. Dickey, Senior Agricultural Economist, Office of Cooperative Extension Work, Extension Service, United States Department of Agriculture. C. J. Galpin, Chief, Division of Farm Population and Rural Life, Bureau of Agricultural Economics, United States Department of Agriculture. Kudolph Dieffenbach, Senior Land Valuation Engineer in Charge, Division of Land Acquisition, Bureau of Biological Survey, United States Department of Agriculture. Lewis A. Jones, Chief, Division of Drainage and Soil Erosion Control, Bureau of Agricultural Engineering, United States Department of Agriculture. John B. Bennett, Agricultural Economist, United States Chamber of Commerce. T. S. Thorflnnson, Extension Economist, Extension Service, United States Department of Agriculture. A. G. McCall, Chief, Soil Investigations, Bureau of Chemistry and Soils, United States Department of Agriculture. , Marion Clawson, Assistant Agricultural Economist, Division of Farm Manage- ment and Costs, Bureau of Agricultural Economics, United States Depart- ment of Agriculture. Alvin D. Hathaway, Chief of Field Service, General Land Office, United States Department of the Interior. John F. Deeds, Chief, Agricultural Division, Conservation Branch, Geological Survey, United States Department of the Interior. W. G. Hoyt, Hydraulic Engineer, Conservation Branch, Geological Survey, United States Department of the Interior. Conrad Wirth, Assistant Director, National Park Service, United States De- partment of the Interior. W. A. Marschalk, Chiefs Lands Division, Bureau of Indian Affairs, United States Department of the Interior. A. C. Monahan, Assistant to the Commissioner, Bureau of Indian Affairs, United States Department of the Interior. OUT-OF-TOWN MEMBERS J. Phil Campbell, Director, Extension Division, Georgia State College of Agriculture, Athens, Ga. David Weeks, Associate Professor of Agricultural Economics, University of California, Berkeley, Calif. G. F. Warren, Head, Department of Agricultural Economics and Farm Man- agement, Cornell University, Ithaca, N.Y. George S. Wehrwein, Department of Agricultural Economics, University of Wisconsin, Madison, Wis. M. L. Wilson, Head, Division of Agricultural Economics, Montana Agricultural Experiment Station, Bozeman, Mont. L. M. Vaughan, Department of Agricultural Economics, Cornell University Ithaca, N.Y. T. P. Cooper, Dean, College of Agriculture, University of Kentucky, Lexing- ton, Ky. R. L. Thompson, Head, Department Research in Farm Economics, Louisiana State University, Baton Rouge, La. J. T. Sanders, Head. Department of Agricultural Economics, Oklahoma A and M. College, Stillwater, Okla. W. A. Schoenfeld, Dean, Oregon State Agricultural College, Corvallls, Oreg F. P. Weaver, Head, Department of Agricultural Economics, Pennsylvania State College, State College, Pa. H. W. Mumford, Dean, College of Agriculture, University of Illinois, Urbana, I. G. Davis, Department of Agricultural Economics, Connecticut Agricultural College, Storrs, Conn. J. I. Falconer, Chairman, Department of Rural Economics, Ohio State Uni- versity, Columbus, Ohio. G. E. Young, Assistant In Farm Management, Division of Farm Management and Rural Economics, Purdue University, Lafayette Ind Sherman E. Johnson, Head, Department of Agricultural Economics, South Dakota Agricultural College, Brookings, S.Dak. ^■.^•,?,'*^f®' J^irff^o"", South Carolina Experiment Station, Clemson Agricul- tural College, Clemson College, S.C. 23 Eli F. Taylor, Register, General Land Office, United States Department of the Interior, Salt Lake City, Utah. Guy P. Harrington, District Cadastral Engineer, General Land Office, United States Department of the Interior, Santa Fe, N.Mex. William S. Wade, Chief of Field Division, General Land Office, United States Department of the Interior, Helena, Mont. George W. Malone, State Engineer, Carson City, Nev. J. D. Pope, Head, Department of Economics, Alabama Polytechnic Institute, Auburn, Ala. TECHNICAL ADVISORY COMMITTEE V, FORESTS, PARKS, RECREATION AND WILD-LIFE PRESERVATION AREAS WASHINGTON, D.C., MEMBERS L. F. Kneipp, Assistant Forester, in Charge Branch of Lands, Forest Service, United States Department of Agriculture. Chairman. Fred Morrell, in Charge Branch of Public Relations, Forest Service, United States Department of Agriculture. Paul G. Redington, Chief, Bureau of Biological Survey, United States De- partment of Agriculture. H. H. Bennett, in Charge, Soil Erosion and Moisture Conservation Investi- gations, Bureau of Chemistry and Soils, United States Department of ■ Agriculture. L. C. Gray, Principal Agricultural Economist in Charge, Division of Land Economics, Bureau of Agricultural Economics, United States Department of Agriculture. Samuel B. Detwiler, Principal Pathologist in Charge, Division of Blister-Rust Control, Bureau of Plant Industiy, United States Department of Agriculture. Fanny S. Herbert, Junior Administrative Assistant, General Land Office, United States Department of the Interior. W. G. Hoyt, Hydraulic Civil Engineer, Conservation Branch, Geological Sur- vey, United States Department of the Interior. J. Q. Peterson, Scientist, Conservation Branch, Geological Survey, United States Department of the Interior. H. C. Byrant, Assistant Director, National Park Service, United States De- partment of the Interior. Conrad Wirth, Assistant Director, National Park Service, United States De- partment of tlie Interior. Jay P. Kinney, Director of Forestry, Bureau of Indian Affairs, United States Department of tlie Interior. A. C. Monahan, Assistant to the Commissioner, Bureau of Indian Affairs, United States Department of the Interior. OUT-OF-TOWN MEMBBKS Raphael Zon, Director, Lake State Forest Experiment Station, University Farm, St. Paul, Minn. S. T. Dana, Dean, School of Forestry and Conservation, University of Michigan, Ann Arbor, Mich. Walter Mulford, Professor of Forestry, Division of Forestry, College of Agri- culture, University of California, Berkeley, Calif. R. T. Fisher, Director, Harvard Forest, Harvard University, Petersham, Mass. Henry R. Francis, Professor of Forest Recreation, the New York State College of Forestry at Syracuse University, Syracuse, N.Y. J. S. Holmes, State Forester, Division of Forestry, Department of Conservation and Development, Raleigh, N.C. Ralph S. Hosmer, Head, Department of Forestry, Cornell University, Ithaca, N.Y. Tracy I. Storer, Division of Zoology, University Farm, Davis, Calif. Aldo Leopold, in charge of Game Survey, Sporting Arms and Ammunition Manufacturers Institute, 404 University Avenue, National Bank Building, Madison, Wis. J. D. Pope, Head, Department of Economics, Alabama Polytechnic Institute, Auburn, Ala. W. B. Grange, Box 154, Fish Creek, Wis. Missing Page §^m(i»&i& v^wL*K % m r .