The story of the Stanfield Act.

    PORTLAND, Ore., June 26.--Sale of 2,000,000 acres of Oregon and California grant lands to Jackson A. Graves by the O.&C. railroad was today declared forfeited and title to the land revested in the United States government by Judge Wolverton in federal court.
    The land, which is in Jackson County, Oregon, was sold to Graves by the railroad nine years ago.
    The court held that while the land was sold contrary to provisions of the land grant, this did not make the sale illegal but held that the action of Congress in the Chamberlain-Ferris bill made the sale itself illegal and so ordered the land returned to the government for classification and disposal.
Los Angeles Herald, June 26, 1918, page 6


"Hearings to Frame New Lands Policy," Sunday Oregonian, September 6, 1925, page 18


Medford Mail Tribune, February 25, 1926, page 5


Medford Mail Tribune, February 28, 1926, page 4


Medford Mail Tribune, May 9, 1926, page 1


Medford Mail Tribune, May 11, 1926, page 4


Medford Mail Tribune, May 17, 1926, page 3


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Medford Mail Tribune, July 3, 1926, page 6


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Medford Mail Tribune, July 7, 1926, page 3


Medford Mail Tribune, July 14, 1926, page 2


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Medford Mail Tribune, October 31, 1926, page B2




    SALEM, Ore., Jan. 19.--(AP)--Funds derived from the Oregon and California land grant refunds would have to be applied to indebtedness of the various counties, school, road and port districts and other subdivisions benefiting, if house bill number 85, introduced by Representatives Howard, Potter, McCready, Cramer and Schulmerich and Senators Bell and Bailey, passes.
    Money derived from the fund would have to go into special funds and be invested in lawful securities.
    A second income tax measure has appeared. Representative Mark McAllister has introduced a bill with a property offset. This is a duplicate of the bill rejected by the people at the November election. Representative Hazlett has a duplicate of the Grange income tax bill, and still another income tax bill is expected to be introduced.
    The house late yesterday adopted a resolution providing for an investigation of telephone rates and practices. Attorney General VanWinkle, ex-Governor Oswald West, Colonel A. E. Clark and four members of the house will conduct the investigation.
    The House adopted a resolution by Representative Hector MacPherson of Linn County, for a special commission of five members to study administrative reorganization and report to the next session of the legislators.
    Legislators considering the matter of increasing revenues for state purposes and grappling with the problem of taxation were discussing today a suggestion that a test case be submitted to the supreme court for an opinion concerning the five percent limitation in the constitution.
    This provides that taxes may not be increased more than six percent over the amount levied the year previously, money for payment of bonded indebtedness and interest thereon being expected
    The question has been raised whether this limitation would apply to new forms of taxation, such as the proposed tax on intangibles and corporate excess, or upon income tax.
Medford Mail Tribune, January 19, 1927, page 1


    STATE HOUSE, SALEM, Ore., Jan. 25.--(AP)--If it is finally determined that the state of Oregon is entitled to a share of the land grant tax refund, the amount coming to the state will be $1,349,391, that amount to be deducted from the claims of the various counties, according to a report made by State Tax Commissioner Earl Asher. Whether the state is to share in the fund will be a matter to be decided by the state supreme court. As soon as some county receives its share of the fund from the government it is probable that the state will start some legal proceeding to collect its share, and this will settle the question whether the state is to share in the funds.
    The amounts that will be paid to the state by the several counties affected are:
    Douglas $321,168; Jackson $250,443; Lane $228,460; Benton $55,430; Clackamas $85,026; Columbia $36,795; Coos $76,090; Curry $5620; Josephine $96,315; Klamath $22,040; Lincoln $4351; Linn $48,988; Marion $23,608; Multnomah $12,199; Polk $51,070; Tillamook $7301; Washington $13,377; Yamhill $13,801.
Medford Mail Tribune, January 25, 1927, page 7


    Word has been received by the Mail Tribune that the Assistant Treasurer of the United States has issued a check in favor of Jackson County for the sum of $1,151,962.74 in payment for the O.&C. Land Grant tax refund, being the amount due this county in accordance with the Stanfield bill passed by Congress last spring.
    This is the tax refund for the years 1916 to 1926 in Jackson County and is the second largest amount due any of the sixteen counties affected by the bill.
    The check, signed by H. F. Tate, Assistant Treasurer of the United States, has been received by Treasurer A. C. Walker and has been negotiated through the First National Bank, and from there will be divided among the various depository banks of Jackson County.
    This money will be distributed to the different funds, including general county, roads and school districts having O.&C. land within their territory and will be used to liquidate indebtedness.
    The distribution has not been completed as yet by the county officials, but will be soon and the amounts in each fund will be published.
    This huge sum will retire thousands of dollars in bonds and warrants, will save much interest money and will put the county on a solid cash basis.
    There is little chance that the state will claim a share of the money, as no action has been started to obtain it. It was announced several months ago that the state would ask for a portion of the money received.
    GRANTS PASS, Ore., Mar. 15.--(AP)--Josephine County has received a check for $530,664.53 from the federal government as its share of the Oregon and California grant land tax refund.
    The county court meeting today has decided to call in all outstanding indebtedness and will retire this before any other use is made of the money.
    The county's indebtedness is estimated at $144,000. No definite program of expenditure has been worked out.
Medford Mail Tribune, January 25, 1927, page 7


    Much of the credit for the passage of the Oregon-California land grant refund bill, with its financial reward of $1,151,962.74, is due to the efforts of W. H. Gore, president of the Medford National Bank, former legislator and chairman of the committee from the Western Oregon counties interested who went to Washington, D.C., to work for the passage of the bill.
    Mr. Gore labored for three months for the measure, which at the inception was given but slight chance. He toiled with Senators and Congressmen, showing them the justice of the proposals, and did not return home until final approval had been given by the President at his summer White House.
    The local citizen was credited at the time with being a most important factor and with impressing the nation's statesmen by his voluminous and forceful data on the subject. Mr. Gore, with ex-U.S. Senator Robert N. Stanfield, took the initiative in the fight for the refund on forfeited taxes.
    It is the opinion of Mr. Gore, who is excessively modest about his achievements, that the refund money should now be applied to paying off the indebtedness of the county.
Medford Mail Tribune, March 16, 1927, page 1


    ROSEBURG, Ore. March 18.--(AP)--Little interest was shown here today in the land drawing conducted by the Roseburg land office. The drawing was in connection with the opening of approximately 23,000 acres of O. and C. railroad and Coos Bay wagon road grant lands. All filings up to March 14 were counted as simultaneous and a drawing was held today to settle conflicts.
    Interest centered chiefly in five tracts suitably located for summer home sites or automobile camps. Unit number 30 on the North Umpqua, east of Roseburg, was won by Clyde White of Hoaglin, from among eight applications. Unit number four on the Crater Lake Highway was won by Jesse Miller of Prospect from among six applications. Unit number 57 on the Redwood Highway went to Philip B. Lowd of Medford, and a similar tract, unit number 71, in the same vicinity, was secured by Fred Ereman of Grants Pass. There were eight applications for unit number 256 on the McKenzie Highway, and the tract was won by Vernon F. Caldwell of Walterville, Ore.
    Out of 278 tracts offered for homesteading, applications have been filed for only 30. There were 14 conflicts. On tracts where there were no conflicts, the applications were allowed.
Medford Mail Tribune, March 18, 1927, page 1


    TABLE ROCK, Mar. 23.--Dick Strauss, a prominent farmer and stockman of Sams Valley was a business visitor here Tuesday.
    It is reported that a case of smallpox has developed in the Agate district, the patient being a former employee of the Modoc orchard. This report has created quite a little scare among people in this district and several have been vaccinated during the last few days.
    A check for $93.00 was received the first of the week by the clerk of the Table Rock school district, this being the amount due the district from the O.&C. tax refund.
Medford Mail Tribune, March 25, 1927, page B1


    WAGNER CREEK, March 31.--The Wagner Creek district received $6922.32 from the O. and C. land grant fund. It has been rumored that the sum collected will be spent for a new, modern school house, furnace heated, and properly ventilated.    Medford Mail Tribune, April 1, 1927, page B8


    County Judge W. J. Hartzell announced this morning that Jackson County would join with Marion County in opposition to the efforts of the state to secure a share of the O.&C. tax refund monies, and would carry the question to the highest courts, if possible.
    It is expected that representatives of the 18 counties benefiting would meet at an early date, and decide upon a plan of action.
    It also developed today that the state had made elaborate preparations to press its claims, according to County Judge Hartzell, including the issuance of a pamphlet, "that must have cost at least $500," setting forth the contentions of the state and showing comparative figures on the amounts received from each county, before and after the passage of the O.-C. tax refund.
    SALEM, Ore., April 9.--(AP)--That the courts will be called upon to determine whether the state is entitled to a portion of funds paid over to Oregon counties, under the O. and C. land grant refund, became apparent here today following a demand on J. T. Hunt, Marion County judge by Sam A. Kozer, secretary of state. The demand is a mere formality and will be refused by Judge Hunt.
    The state eventually expects to lay claim against 18 counties for a total sum amounting to $1,349,391. The maximum sum claimed from a single county is $321,168 from Jackson County. The minimum is $4351 from Lincoln County.
     In his letter to Judge Hunt and other Marion County officers, Kozer declares that Marion County has received, under the O. and C. land grant refund, the sum of $119,335.56, "of which $24,059.41 is directed and required by said act of Congress to be paid to the state of Oregon."
    "We expect that this will probably be a test case," it was said today by I. H. VanWinkle, attorney general. "Our desire is merely to have the state's rights, whatever they are, finally determined in court. I presume the county officials are as anxious to have a determination made as we are."
    It is expected that other counties in Oregon, which have received money under the O. and C. refund, will come to the assistance of Marion County when the question goes to court. If the state loses its cases against Marion County, it will drop the matter as regards other counties, but if the state wins here, it will press its claims against all the others.
    It is anticipated that the state will institute mandamus proceedings against Marion County officials to require them to secure and pay over the money, rather than starting a direct action at law for recovery of the funds demanded. This will eliminate the services of a jury in the lower court, and bring the whole matter before the supreme court on appeal. It is expected that whichever side loses in circuit court, an appeal will be taken to the supreme court.
    Under terms of the federal act under which the counties received their funds, according to the stand taken by the state, it is required that the funds shall be paid over to the counties and paid out by the counties to the same parties and in the same proportion that taxes would have been paid out had they been collected by the county on the lands in question.
    It is unofficially understood that counties have paid out the money as required by to the school districts, road districts or others, as apparently required by the congressional act, but no payment has been made to the state.
    ROSEBURG, Ore., April 9.--(AP)--District Attorney Guy Cordon of Douglas County is today getting into communication with County Judge Moses of Benton County to consult with him regarding the action to be taken by the other land grant counties of the state in joining with Marion in the suit brought by the state of Oregon to obtain a share of the O. and C. money. Judge Moses is chairman of the committee appointed by the counties affected by the land grant act to handle the legal affairs, while Mr. Cordon was appointed several months ago as the legal representative of the several counties and he will appear on behalf of all the counties in the trial of the case, cooperating with the Marion County legal staff and such outside legal talent as may be secured by the counties.
    Attorney Cordon was county assessor of Douglas County at the time the land grants were revested in the government. He was a member of the of the delegation that went from the state to appear before the congressional committee investigating the refund measure and personally prepared the brief which was submitted to the Senate committee and which later was embodier in the Senate's favorable report.
    Because of his thorough understanding of the act and the land grant situation, Mr. Cordon was chosen by the county judges to represent the counties in a legal way.
Medford Mail Tribune, April 9, 1927, page 1


    SALEM, Ore., April 9.--(AP)--Counties which did not participate in the land grant refund may seek to compel the state to divide its share among them if the state succeeds in obtaining a share from the eighteen counties that did participate, it was indicated today.
    This statement was made by members of the Marion County court who yesterday requested to repay to the state $34,059.41 out of the $119,355.56 which was the county's share of the refund. They announced they would resist the claim.
    According to well-informed local authorities, the act of the state in requesting a portion of the O.-C. grant tax refund will precipitate a long legal battle in the high courts. The announcement that the state would make this move was no surprise to officials but was unknown to the public in general.
    Outside of the distribution of the money to the school districts, road districts and apportionment to various funds, no disposition of the share received by this county has been made. Jackson County would pay the largest amount if the state is successful in its contentions.
    Douglas and Jackson counties have both signified their intention of assisting Marion County in resisting the claims. The other counties benefiting are expected to make formal declarations of assistance this week. A meeting of the representatives of the various counties affected will be held in the near future to map out a plan of action. In Douglas County the apportionment of the money calls for the building of a $200,000 courthouse and retirement of road bonds.
    County Judge W. J. Hartzell yesterday announced that Jackson County would oppose the state's claim "to the last legal ditch."
Medford Mail Tribune, April 10, 1927, page 1


    WASHINGTON, Apr. 11.--Payment of approximately $10,000,000 in back taxes to 23 counties in Oregon and Washington has been approved by the interior department. The taxes are for land formerly held by the Oregon and California railroad and taken over by the government in 1915.
    One of the largest payments is to Douglas County, Oregon, which will receive $1,471,640. Several to other counties run into several hundred thousand dollars, but the exact amounts and the names of the counties sharing in the distribution were not made public today.
    Comptroller General McCarl, to whom the recommendation for payment is submitted by the interior department, after the amount is determined, has approved that to Douglas County.
    Several other payments have not been considered as yet by the General Accounting Office.
    Under a bill passed by the last Congress, the interior department was authorized to determine the amount of the taxes from 1915 to 1926 and to pay them. The government recovered title to the land on which the Oregon and California Railroad line was operated in 1915, but had questioned the right of the western counties to tax the land.
    An opinion of the supreme court, however, sustained this right with the result that the back tax payments are being made.
    ROSEBURG, Ore., Apr. 11.--(AP)--District Attorney Guy Cordon leaves tomorrow for Salem to represent the land grant counties of Oregon cooperating with Marion County in contesting the state's claim to a portion of the O.&C. grant land tax refund. Attorney Cordon, who was recently selected by the organization of the land grant counties to supervise the legal matters connected with the land grant case, has been given assurance from practically all of the affected counties that they will defend their claims until the last, going to the United States Supreme Court if necessary, and will proportionately bear the costs which may be incurred.
    County Judge Bernard of Lane County and Commissioner C. L. Beckley of Douglas County, members of the legal committee appointed by the county courts of the land grant counties, spent yesterday evening in Roseburg conferring with Attorney Cordon regarding plans for the court defense.
Medford Mail Tribune, April 11, 1927, page 1


    SALEM, Ore., April 12.--(AP)--Victor P. Moses, county judge of Benton County and chairman of the Oregon and California Land Grant Association, made up of the eighteen counties receiving money from the government as refund for Oregon and California grant land taxes, has written to County Judge Hunt of this county offering the aid and resources of the association to fight the demand of the state for a share of the tax.
    While the formal demand made recently on the Marion County court by Secretary of State Kozer for something over $24,000 of Marion County's share of the refund applied to Marion County alone, the state does not conceal the fact that the demand on Marion County is only in the nature of a test case. If the state wins out against Marion County it will mean that all the eighteen counties involved will have to pay up their share to the state.
    Judge Moses, in his letter, not only extended the good offices of the associations to the Marion County court and district attorney, but asks for advices and says that as soon as he hears the wishes of the court he will call a meeting to be held in Salem in the near future to discuss the matter and what assistance is needed to contest the case.
    The local court is in a mood to go against the highest tribunal against the state's demands, as it believes the state is not entitled to any of the money.
    WASHINGTON, April 12.--(AP)--A list of counties in Washington and Oregon to which payments of back taxes by the federal government have been certified to the Treasury by the interior department shows that three in excess of one million dollars are to be made.
    In addition to Douglas County, Oregon, which is to receive $1,471,640, Jackson County, Oregon, gets $1,151,962 and Lane County, Oregon $1,069,840. Other payments scale down to $3764 to Clark County, Washington, the only one in the state to benefit. Seventeen Oregon counties are to receive payments. The total thus far certified, covering taxes on land recovered by the government from the Oregon and California railroad in 1915, is $6,027,396. They include payments of $111,855 to Klamath County; $198,346 to Linn; $200,206 to Polk; $266,647 to Benton; $503,706 to Coos; $139,853 to Columbia; $530,644 to Josephine; $119,355 to Marion; $63,644 to Washington County; $52,734 to Yamhill; $40,500 to Tillamook; $31,527 to Lincoln; $25,792 to Curry and $45,353 to Multnomah, all Oregon counties.
Medford Mail Tribune, April 12, 1927, page 6


    SALEM, Ore., April 14.--(AP)--John H. Carson, district attorney of Marion County, and District Attorney Guy Cordon of Douglas County will be associated together as counsel to represent the 18 counties of Oregon against whom the state is preparing to bring action to collect part of the O. and C. land grant fund. Arrangements to this effect were completed here this afternoon by a committee of officials representing the counties.
    Decision was also made to make a levy upon each of the 18 counties affected in proportion to the amount the county is to receive under the land grant refund, the idea being that all the counties will combine to assist Marion County in its legal fight against the state. Within the next few days, it is anticipated that the state will begin its action against Marion County in court here, expecting to make it a test case.
    "The whole case will probably be decided on a demurrer," said Cordon this afternoon. "There is nothing in it for a jury to decide, the whole thing is interpretation of the statute."
    The committee of county officials consisted of the following:
    County Judge V. P. Moses of Benton County, chairman; Judge C. P. Bernard, Lane County; Judge John Phillip, Columbia; Judge R. H. Mast, Coos; Commissioner C. L. Beckley of Douglas and Judge W. J. Hartzell of Jackson. J. T. Hunt, Marion County judge, was also present as an official against whom action is to be brought, although Judge Hunt is not a member of the committee.
Medford Mail Tribune, April 14, 1927, page 1


    SALEM, April 23.--(AP)--The long anticipated suit by the state of Oregon to collect certain Oregon and California land grant funds from counties in the state was begun in circuit court here this morning. A petition for a writ of mandamus was filed by Attorney General I. H. Van Winkle in behalf of Sam A. Kozer, secretary of state, to require members of the county court, the county clerk and the county treasurer of Marion County to pay over to the state the sum of $24,059.41. It is claimed that this amount is due the state under the terms of the federal act under which the Oregon-California land grant refund was made to the counties.
    In a tabulation of statistics compiled by Attorney General Van Winkle this morning, it is indicated that Marion County and six other land grant counties will gain by complying with the alleged terms of the act while the remaining eleven land grant counties will lose.
    All eighteen of the counties which would be affected by a ruling in the Marion County case have banded together to resist the state's suit here, however, and both sides have announced that the result of the suit in circuit court will be considered merely preliminary and that the supreme court will make the final adjudication of the case on appeal. Attorney General Van Winkle has expressed himself as desiring merely to arrive at a final determination of what the various rights in the case are.
    A table of figures compiled by the state tax commission at the request of Mr. Van Winkle shows that the eleven counties that are heaviest beneficiaries under the O.&C. land grant refund will lose by complying with the state's demand. These counties and the sums they will lose are listed as follows:
    Benton, $35,882; Clackamas $23,329; Columbia $15,071; Coos $44,141; Crook $454; Douglas $282,216; Jackson $213,967; Josephine $83,942; Lane $168,927; Linn $8,908; Polk $27,682.
    The seven land grant counties that would be benefitted are listed as follows:
    Klamath $9959; Lincoln $6375; Marion $34,170; Multnomah $477,466; Tillamook $20,072; Washington $29,667; Yamhill $14,922.
    Other counties not coming under the terms of the O.&C. land grant refund would all be benefitted as follows;
    Baker $27,855; Clatsop $34,668; Crook $6965; Deschutes $15,544; Gilliam $11,924; Grant $9053; Harney $10,534; Hood River $12,336; Jefferson $6483; Lake $12,261; Malheur $16,049; Morrow $13,275; Sherman $12,275; Umatilla $56,659; Union $23,751; Wallowa $14,036; Wasco $21,599; Wheeler $5,555.
    This situation is due to the fact that the refund money claimed by the state, if paid by the counties as demanded, will go into the general state treasury, reducing the state's financial burden which would otherwise be apportioned out among the counties. In the case of eleven counties hardest hit by the state's demand, sums asked are in excess of the proportionate benefits returning to the counties. These are the counties which received the largest amounts of refund money.
    "I can't say that this payment to the state will have the effect on an actual reduction of state taxes apportioned to the counties," it was stated this morning by Earl L. Fisher, state tax commissioner, "but eventually it will be of that much indirect relief to them, for the state is, of course, supported through the counties."
    No provision was made as to how the state will apply the money in case it gets it. It is estimated that the total amount from the eighteen counties to the state will amount to $349,842 in case the state receives the portion it demands.
Medford Mail Tribune, April 23, 1927, page 1


    Pears in the Rogue River Valley will provide a good crop this year, although not as heavy a one as last year, yet, on the whole, a very substantial crop, is the opinion of William H. Gore, banker of Medford, who is registered at the Multnomah. The growers are prepared to wash the fruit, if it is considered necessary, as it was the objection to the spray last year which so upset the pear growers of Southern Oregon and resulted in considerable loss. According to Mr. Gore, it costs 3 to 5 cents a box to remove the spray--not much, superficially, but aggregating a formidable sum when you consider treating the entire crop. By the first of July Medford expects to have its new water system in operation. The contractors are rushing the job and it looks as though the water will be rushing through the pipes in time for the first of the month. The water is captured in the mountains from springs and the volume is so great that it will be sufficient to take care of Medford when the population is twice what it is today. Mr. Gore is the man who conceived the thought of having the federal government turn over money to the counties in which the Oregon and California land grants lay. He worked on this idea for several years before it finally became seriously recognized and eventually Congress made the appropriation. Several of the counties are still arguing what they will do with the money they received, and Mr. Gore expresses the belief that notwithstanding the receipt of the funds, taxes will not be lowered in the counties affected.--Portland Oregonian.
Medford Mail Tribune, Junil 16, 1927, page 3


    The county tax budget for the year, subject to final approval by the budget committee at an open meeting to be held Wednesday, November 25, has been completed for publication and reveals an increase in population, a healthy financial condition, a reduction in the county bonded indebtedness, that the city of Ashland will pay approximately 1.6 mills less levy than the rest of the county, and that the levy for the county will be at least 2.8 mills less than last year.
    By an act of the last session of the legislature, the county is prohibited from levying general road millage on property within the corporate limits of Ashland, as provided for in their city charter.
    The general road levy will be for $123,000 or approximately 1.4 mills. The county library levy of .2 mills is provided for in Ashland by a special city levy.
    The general road levy calls for $123,000, less $65,000 expected to be secured from auto licenses and rent of forest lands, or $57,000. The amount last year was $54,356.84. The increase was due to the repair of flood damage last February.
    The estimated expenses of schools and libraries is $86,011.60. It is figured upon the basis of 10 cents for each child of school age, showing there are 8,601 school children now. Last year the budget called for $83,134, or 8,314 children of school age.
    The bonded indebtedness of the county is $490,000. Owing to the application of O.-C. tax refund funds, there will be no levy this year for redemption of highway bonds, which last year was 1.3 mills, netting $41,000, and no levy for highway bonds interest, which last year was 1.5 mills, netting $50,000.
    According to the treasurer's figures, $410,000 worth of highway bonds have been redeemed since the passage of the O.-C. refund bill.
    No levy is made for the enforcement of the prohibition law, the law providing that this work be taken care of from fines for violations. The prohibition fund, the first of October, showed a surplus of $2000, a radical departure from the late enforcement of Special County Prohibition Enforcement Office Sam Sandefer, with a yearly outlay of approximately $10,000.
    The budget provides $6,500 for an emergency fund and $3,000 for a county fair.
    For the market road fund $49,395 is provided. Last year it was $44,764.46. Most of this sum will be expended on the Lake Creek market road and completion of market roads in the Applegate and Sams Valley.
    The current expenses, which provide for the maintenance of all county offices and agencies, is figured at $176,130.50. Last year it was $169,465.46. The estimated receipts of the county from various sources is $101.950.
    The estimate for the state tax for this county is $213,528.17. Last year it was $213,528.47.    
Medford Mail Tribune, November 1, 1927, page 1


    At a special meeting of the county court yesterday, a county warrant in the sum of $5000 for services rendered in the Oregon-California tax refund matter, was issued to William H. Gore, president of the Medford National Bank, who spent two months in Washington D.C. while the bill was pending in Congress, and awaiting the signature of the President.
    The county warrant was paid and cancelled yesterday.
    The county court announced that at its regular meeting next Wednesday a resolution, setting forth the whys and wherefores of the payment, would be passed and signed.
    An order was passed yesterday ordering the county clerk to draw the warrant.
    Jackson County's share of the tax refund money was $1,152,543.23, and at one time it was proposed that Mr. Gore receive one percent of this sum for his work, over $100,000.
    During his stay in the national capital in behalf of the measure, the expenses of Mr. Gore were paid by the county, according to county officials.
    The tax refund idea is generally credited to Mr. Gore, and for years before it consummation he was a worker in its behalf, and was instrumental in interesting former Senator R. N. Stanfield, who introduced a bill in the Senate. Congressman Hawley introduced a similar bill in the house. It finally passed both houses. It was then up to the President for signature, and it was threatened with veto. The President was finally prevailed upon to sign the bill at his summer White House in the Adirondacks.
    While the tax refund bill was proceeding its devious ways through Congress, Mr. Gore was making speeches, conferring with congressional leaders and busy explaining to the doubtful the merits of the tax refund. There is no doubt that he toiled long and strenuously, and was a vital factor in securing the passage of the bill. While awaiting the presidential signature, Mr. Gore was leader of the political maneuvers to get the presidential John Hancock upon the bill.
    Mr. Gore returned home from the capital and was warmly welcomed at the depot as a conquering football team and was hailed as a public benefactor.
    About the time that the O. and C. refund check arrived at the county treasurer's office, the matter of compensation for Mr. Gore was broached, and received chillily by the public and by the people of the state in general.
    The matter of compensation was forgotten, but has been pending quietly, as the county warrant of yesterday attests.
    County Commissioner Victor Bursell said over the telephone this morning that the $5000 county warrant was "issued simply as a gift for services rendered in securing $1,200,000 for Jackson County."
    The county commissioner stated that at one time it was suggested that one percent of the sum received be paid, but that this was rescinded and no action taken.
    Commissioner Bursell said that the warrant was issued upon the solicitation of taxpayers who had met with the court, among the number being Mike Hanley, A. C. Hubbard and Frank Wortman.
Medford Mail Tribune, December 3, 1927, page 1


    The Jackson County court, which Friday issued a warrant to W.H. Gore, Medford banker-farmer, for $5,000 for services rendered in the Oregon-California tax refund matter, will request that other Western Oregon counties who benefitted from the bill will pay Mr. Gore their proportionate share of the $15,000 claimed to have been expended in behalf of the bill.
    County Judge W.J. Hartzell said yesterday that other counties would be requested to do their share, and that the county court "felt Jackson County should take the lead."    
    It was said that Josephine County would be next to extend a financial reward to Mr. Gore.
   According to county officials the payment of the $5000 was made after a delegation of taxpayers had discussed the matter, and held the same to be just and fair.
    Eighteen western Oregon counties benefited to the extent of approximately $18,000,000 by the passage of the O.-C. refund bill and its final approval by the President.
    Mr. Gore spent two months in the capital working for the passage of the bill. He was the originator of the plan, and highly conversant with its every detail.
Medford Mail Tribune, December 4, 1927, page 1


    To the Editor:
    We desire to correct some errors in the Mail Tribune article appearing on the front page of December 3rd in which is discussed the issue of a warrant in favor of W. H. Gore.
    While Mr. Gore has refrained from participation in such discussion of these matters, either in public or in private, we believe the public should be informed as to the facts.
    The article states that he was "two months in Washington" in the interest of the measure. Mr. Gore spent three and a half months of labor in our behalf.
    Further, the article represents that his expenses were paid by the county. Mr. Gore used in his campaign in behalf of the undertaking a sum exceeding $14,700, beside $3850 spent by Mr. Gore that was provided by the counties to finance the undertaking.
    It is a matter of common knowledge that Mr. Gore was the originator of the tax refund idea and the only worker in its behalf until January 1926. It is universally conceded that only his unfailing determination and personal labors resulted in recovery of, in round figures, $7,800,000 for the eighteen counties of Oregon, and $1,151,962.74 for the years 1916 to 1925, and an amount of $118,300.03 for 1926 for Jackson County alone.
    In addition to this, provision was also made for continuing annual payments by the government until the O.&C. lands pass to private ownership. In other words, these lands were permanently restored to the tax roll and it is safe to say that this county will receive $100,000 for 1927.
    As to the statement in this paper that "the $5000 warrant was issued simply as a gift": The undersigned asked the court, not for a gift nor for payment for services rendered, only reimbursement for his costs in this matter. We feel that every other honest taxpayer will insist upon this being done.
    We would also like to correct the statement of $100,000 being 1% of $1,000,000, as stated in your article. 1% of $1,000,000 is only $10,000.
Medford Mail Tribune, December 6, 1927, page 1


    To the Editor:
    I had supposed that Bert Anderson's expose of W. H. Gore's first attempt to fix liability upon Jackson County, by the aid of the county judge and county commissioners, and the resulting storm of indignation, had ended this form of attempting to raid the county treasury. It seems we were mistaken. I will not attempt a review of this matter but only state a few things that occur to me.
    Has the judge and county commissioners any power to order money paid out of the treasury as a gift or bonus?
    I should say, certainly not. They can only do so by pursuing a proper course, where a legal liability is determined on the part of the county. The payment to Gore was illegal and made under suspicious circumstances. Gore knew this when he received and cashed the warrant. All the officials connected with the transaction must have known it. Will the people suffer this to pass unresented? In order to establish a moral claim in the total absence of a legal one against the county, it would appear that Gore, working under cover, as he has consistently done in this matter, has given the information to certain evidently misguided friends that it is not a gift or bonus, but a reimbursement of expense. They state that in three and a half months in Washington D.C., he spent $3850 furnished him and over $14,700 of his own money, a total of $18,550.
    If he had an account for expense to present to the county, why did he not openly and in the usual way present it as a claim, properly itemized. I spent several winters in Washington in similar work, and I assert deliberately that he never can present an itemized and just account for such a sum, unless the money was improperly expended.
    I would like to cross-examine him under oath on this point.
"Communications," Medford Mail Tribune, December 8, 1927, page 4


    To the Editor:
    If Mr. Gore's necessary and proper expenses were $18,550, the bill should be paid in full by the benefitted counties. The other members of the committee should be treated as fairly. But the taxpayers have a right to know where their money goes and unless a frank showing is made in the matter, a recall should be in order.
    Our officials certainly have no legal right to give "presents" of public money to anyone.
"Communications," Medford Mail Tribune, December 13, 1927, page 4


    To the Editor:
    I hold the conviction that matters affecting the public should be discussed openly and publicly. This way only can the true facts be brought out and the truth established. If a self-governing republic, such as ours, is to endure, it must have an intelligent and informed citizenry--the people can be depended on to act justly and generously if they come into possession of the facts; the independent and unpurchasable newspapers of the country are the people's greatest publicity medium; through these, the humblest citizen can secure an immediate hearing, and if he has a just cause, he can rally to his support that imponderable but irresistible force called public opinion.
    Now, since I have thrown out an impenetrable smoke screen, we can get down to brass tacks and discuss "who won the war." Did the Hon. Bill Gore win it? If so, what shall the concessions, mandates and indemnities be?
    The county court says a donation or gift of $5000--six  "well-known citizens and heavy taxpayers" in a published prepared statement insist that it shall be called a "reimbursement"--this last word was certainly an inspiration--commission, bonus, fee, manifestly could not be used; these terrible terms had brought shipwreck to the pork barrel in 1926. "Reimbursement"--surely this is a slick word.
    How I came to overlook it all these years I can't imagine; its implications are boundless, its possibilities in the direction of entangling thought and concealing motives is in the nature of a discovery; it brings visions of how desirable but forbidden fleshpots may be acquired with small fear of detection. I feel sure that we have all been sadly neglecting the word "reimbursement."
    These six practical jokers, masquerading as prominent Medford citizens, tell us, without cracking a smile, that besides the $3850 furnished by the county court, Mr. Gore had used "a sum exceeding $14,700" of his own money in this three and a half months campaign for the recovery of O. and C. land grant taxes. It is my studied opinion that this $14,700 business is pure moonshine. If Mr. Gore spent $14,700 of his own money in his efforts to secure the passage of the Stanfield bill, all he has to do is to present a properly attested bill to the county court and the people of Jackson County will see that it is paid--for the agreement when Mr. Gore was sent to Washington was that all legitimate expenses were to be paid--win or lose.
    The county court, by resolution of record, has presented Mr. Gore with a gift of $5000 as a token of appreciation and gratitude for the notable service rendered by him in our behalf. While this action might be hard to defend on purely legal grounds, I believe it to be the right, the just and generous thing to do; it was the only thing they could do--putting it on a commission or reimbursement basis was not in the cards.
    Some very ridiculous charges have been made in reference to my influence with the present county court; I am sorry to say I have none whatever; part of the time we manage under a sort of gentleman's truce--part of the time under a species of armed neutrality--but no entente cordiale. However, I frankly approve of their action and believe they will be sustained by the sober judgment of the people. What small part, if any, I had in bringing about the payment of this $5000 will be disclosed in the following copy of a letter written and mailed to the county court some seven months ago, and to which they never made reply,
Hon. W. J. Hartzell and Members of the County Court,
    Jacksonville, Oregon.
Gentlemen:
    The affairs of life are so pressing that most of us fail to give any expression of gratitude for favors and benefits received; so, "lest we forget," I am going to say to you that in my judgement, the people of Jackson County would look with a great deal of favor on action being taken by the county court to appropriate $2500 to $5000 to present to the Hon. W. H. Gore, as an expression of gratitude from the people of this county for the exceptional work performed by Mr. Gore in securing the large advance of money from the federal government in the Oregon and California land grant matter.
    Mr. Gore and I have been personal and political friends for years, and when I had published in the newspapers a protest against the collection of any commission on this refund from the federal government, it was done without any feeling of animosity toward Mr. Gore, but was done with the belief that probably I was the only man in the state who was qualified by a complete knowledge, from the very beginning, of the circumstances surrounding the passage of the Stanfield bill, to make an effective contribution protest against the collection of a bonus or commission.
    The understanding at all  times was that no one was to be paid for work in connection with the passage of this measure or the collection of this money. The bill was introduced as a relief measure for the overburdened taxpayers of these eighteen counties. Most Congressmen and Senators finally came to the support of this measure, as a relief measure. I feel sure that President Coolidge would not have signed this bill if he had known that an effort would be made to collect a commission on it. It was purely a relief measure, and thousands of others felt that every dollar of it should go for the relief of the taxpayers of these eighteen counties. However, that has nothing to do with the question of the people of Jackson County expressing to Mr. Gore their sense of gratitude for the leading part he took in the passage of the Stanfield bill.
    I would make another suggestion in connection with the passage of this measure: When the new courthouse for Jackson County is finally built, it would be a fine thing to do for the court to have a proper bronze memorial tablet prepared, giving full credit to Senator Stanfield for the introduction and passage of this relief measure. This tablet should be set in the front or near the entrance of the new court house in a position where it can be easily seen and read by the public at all times.
    Of course, it is up to the county court to take whatever action in these matters they may see fit, and I am offering this only by way of suggestion for the county court to think about.
    With highest personal regards for each member of the court, I remain,
Medford Mail Tribune, December 13, 1927, page 6


    SALEM, Ore., April 3.--(AP)--The supreme court today sprang a surprise by ordering a re-argument to be held Thursday morning of this week in the Oregon-California railroad land grant tax refund case.
    The case of the state against the county court for Marion County involves the question whether the state is to share in the refund under the congressional act, or whether the land grant counties are to receive all of the money, which in the ultimate total will be about $10,000,000.
    The case was first argued January 27, and for weeks interested officials and attorneys have expected an opinion among the regular Tuesday list of supreme court decisions.
    If Marion County loses in its effort to prevent the state of Oregon from collecting a share in the Oregon-California grant land tax refund, it would mean that Jackson County should be forced to pay the state approximately $250,000, or in other words the price it would take to build a new county court house, which is to be constructed in five years, said City Attorney John Carkin. The case of the state versus Marion County was argued first two months ago. If Marion County is unsuccessful, Jackson County could resort to a separate suit to prevent the collection by the state.
Medford Mail Tribune, April 3, 1928, page 1


    SALEM, Ore., March 17.--(AP)--The state of Oregon is not entitled to share in the Oregon and California land grant tax refund to the counties under the Stanfield Act, according to an opinion by the supreme court today.
    The case was that of the state tax commission against the Marion County court to recover $24,059.41, claimed by the state as its share. This, however, was only the pivot on which turned the interests of 17 other counties lying along the Southern Pacific railroad, including Columbia County, and involving a total claim of the state in amount of $1,349,000.
    The supreme court opinion was written by Justice Bean, concurred in by Justices Coshow, McBride and Brown. Chief Justice Rand wrote a dissenting opinion, concurred in by Justices Belt and Rossman.
    The opinion affirms Judge L. H. McMahan of the circuit court for Marion County, who dismissed an alternative writ of mandamus.
    It was predicted here today that the case would be appealed to the United States Supreme Court.
    "In order for a peremptory writ to be issued," says the opinion, "the alternative writ must disclose a clear duty on the part of the defendant to pay the amount therein provided under the terms of the act of Congress approved June 13, 1926.
    "The obligation of the county to contribute its portion of the state revenue exists only by virtue of the statute, and the valid requirement of the county to contribute to the funds or revenues of the state must have its foundation in law. Usually a legislative enactment prescribes the duties and obligations of a county to its parent state.
    "In order for a county officer to be warranted or authorized to pay out the funds of a county to a state official or anyone else, the law must so require and direct. The county officer making such a disbursement must be able to put his finger upon the law creating the demand and prescribing his official duty.
    "The allegation of the writ . . . to the effect that by reason of matters and things alleged in the writ of the county of Marion has received from the United States now has in its possession the sum of $24,054.51, which it is specifically required and directed by law to pay to the state of Oregon is a mere conclusion based upon other allegations of the writ, and does not fulfill the requirement. The state has not shown a legal duty on the part of the defendants to pay it said sum, or any part thereof."
    Again the opinion says: "Under the plain provisions of the act of July 13, 1926, the funds received by Marion County thereunder are to be prorated and apportioned to the county port districts, school districts, road districts and other civil subdivisions of the county as required by the state law and no part thereof is due the state of Oregon."
    Chief Justice Rand, in his dissenting opinion, takes direct issue with this and lays stress on section five of the act, which "directs that when received by the counties all moneys . . . shall be prorated, apportions, and paid to the state, county port districts, school districts, road districts and other civil subdivisions of the county in the same proportion as the taxes assessed, levied and collected by the county for the year covered by such payment are apportioned and paid to the state, county, and each civil subdivision will receive the same amount as though the money had been paid by a taxpayer for each year."
    The decision of the state supreme court today, in favor of the counties in the attempt of the state to grab a portion of the O.-C. tax refund monies, was received with satisfaction here by county officials and others. The decision will stabilize Jackson County finances to the extent of $250,000, which has been kept in a surplus fund, not being available as long as it was involved in litigation.
    According to County Commissioner Victor Bursell, the final disposition of the money will not be made for six or eight months. It may be used for the retirement of Crater Lake Highway bonds, or used for the erection of a new county courthouse.
    ROSEBURG, Ore., April 17.--(AP)--The announcement of the decision of the supreme court relative to the state's claim for a share of the O. and C. land grant refund was received here today with great rejoicing in Douglas County, which had more at stake than any of the other land grant counties. Had the decision been in favor of the state, Douglas County's payment to the state would have been $340,000 and an annual payment of approximately $24,000.
Medford Mail Tribune, April 17, 1928, page 1


    The county court, at its regular session today, issued the following statement upon the disposition of the O. & C. tax refund monies, made available by the decision of the state supreme court yesterday holding that the state of Oregon had no claim thereto:
    "The county court, in session today, discussed the decision of the supreme court, which upheld the circuit court of Marion County, in decreeing that the state of Oregon had no claim to the tax monies paid into the counties by the government on the revested O. & C. lands, and agreed that it was the proper time to advise the people of this county that it is their intention that the money saved to the county by this decision, some $270,000, should be set aside as a fund for the construction of a new court house, as authorized by the people, and decided to investigate plans for the new building and inspect different sites for its erection.
    "In using this money the court will obviate the necessity of levying special taxes for the court house construction.
    "Members of the county court feel that it is well to act on this matter at this early date, in order that if the taxpayers wish, they might refer the matter to the people at the November election.
    "At this time there are funds on hand to retire all outstanding bonds, with the exception of some $170,000 of Crater Lake Highway bonds, which the court has found they cannot retire without paying to the present holders an excessive premium, and they will retire these bonds from the yearly payments received from the county into the general fund, from the yearly payments made by the government on the above lands, which approximate some $70,000 per year."
Medford Mail Tribune, April 18, 1928, page 1


    WASHINGTON, Aug. 22.--(AP)--Payment of $103,190 to two counties in Oregon as settlement of tax claims on reverted lands was requested of Secretary Mellon today by Secretary of the Interior West. Jackson County is to receive $98,546 and Lincoln County $4644.
    Under the act of 1926 the government was ordered to pay several counties in Oregon and Washington sums equal to amount of taxes that would have accrued between 1916 and 1926 on revested land granted to the Oregon and California Railroad Company.
    This allowance by the Treasury Department of the Jackson County claim for $98,713.83 will be reduced by $200 to $300. According to County Assessor J. B. Coleman the government, in the compiling of the amount, computed to the .45 of an acre, and .4 of a cent. Assessor Coleman says he has discovered an error of one cent in the computations by the departmental clerks, and is thinking some of telling them about it.
    The placing of a section of land in the Ashland watershed removed that much land from the O.-C. refund claim.
    The city of Jacksonville will recover $8.09 owing to the discovery of 40 acres within the city limits that come under the refund law.
    The money receivable from the O.-C. claims was apportioned in this year's budget by the county court as follows:
    To the bond sinking fund . . . $71,817.64
    To the road district fund . . . $9,921.94
    To the school fund . . . $16,966.06
    The valuation of the land affected, under the 1915 assessment, was placed at $3,704,840.89.
Medford Mail Tribune, August 22, 1928, page 1


    A check for $98,546.47 was received this morning by the county treasurer's office from the Treasury Department, Washington, D.C. as the 1928 payment to Jackson County of its share of the O.-C. tax refund money.
    This sum will be available within a week for use in county financial matters, and will be apportioned by the assessor's office into the general, road and school funds.
    The check received today is the third received by this county, and the total received from the O.-C. fund to date, according to the county treasurer's office, totals $1,368,809.24.
    The first check was for $1,151,962.74, and covered the back payments for a 10-year payment. It was received in March, 1927.
    The second check was received September 27, 1927, and was drawn for the sum of $118,300.03, and was the regular annual payment for 1927.
Medford Mail Tribune, September 27, 1928, page 3


    The $270,000 in the O.-C. suspense fund of Jackson County is a thorn in the side of the county court, and on its final disposition hinges the future financial tranquility of the county. The same problem is also delaying the final certification of the county budget, which under the law must be made not later than next Monday. Attorneys of the city are preparing an opinion on the rights of the county court in the handling of the fund, which will be presented Monday, and upon which the final decision will likely be made.
    The suspense fund was originally created as an anchor to windward in the event that the state of Oregon won its suit for a share of the O.-C. tax refund moneys. The state lost the suit, the United States Supreme Court handing down its ruling a few days before the last general election in favor of the counties. The suspense fund was thus voided, and thereafter had no legal place to go, and the county court had not sufficient time for the calling of an election before the preparation of the budget.
    The state law is not very specific on what shall be done, but provides that "surplus moneys" be diverted to the general and current expense funds and subtracted from the amount to be raised in the budget. This would lower the "tax base," and in a year the financial affairs of the county would be in a "worse shape than the state's" according to Commissioner Victor Bursell. Commissioner George Alford said that this action "would mean just one bond election after another, to get enough money to run the county."
    The county court desires to retain the money in the suspense fund for use in the building of a county courthouse, which will become a necessity when the five-year use of the present city hall expires.
    The county court has been in session all of today, in an effort to find a solution of the problem. Medford Mail Tribune, December 29, 1928, page 6




    WASHINGTON, D.C., Sept. 28.--(AP)--Secretary Wilbur today requested the Treasury to pay seven Oregon counties various sums of money growing out of revested Oregon and California railroad company grant lands.
    Jackson County will be paid $92,994; Curry County $2943; Klamath, $7918: Washington, $4434; Douglas, $151,476; Columbia, $7581 and Tillamook, $3973.
    Claims were submitted to the Interior Department under the act of Congress which provides for payments to several counties in Oregon and Washington within whose boundaries the revested Oregon and California company grants lands are located.
    Amounts of money are equal to taxes that would have accrued against these lands for the years 1916 to 1926, inclusive, if such lands remained privately owned and taxable.
    According to the county treasurer's office, the $92,994 is payment for the current taxes on O.-C. grant land in Jackson County.
    The check for the sum is due in mid-October.
Medford Mail Tribune, September 28, 1929, page 1






    It all began with a Jacksonville farmer's uncomfortable ride--the wealth that comes to 18 Oregon counties from the resource management of revested Oregon and California (O&C) railroad grant lands.
    At least that's the impression gained from reading a bit of history brought from the family files by Mrs. Charles Risse of Medford. As the former Gertrude Haskins, she has become possessor of written documents, clippings and photographs treasured by her father, the late Leon B. Haskins, and other relatives.
    The railroading history seemed to gain more pertinence recently with announcement of addition of 243,000 more acres of land to the management of the Bureau of Land Management under the same treatment afforded the O&C lands. From O&C lands $57,789,348.30 was realized by 18 Oregon counties during fiscal year 1974, and more than $9 million by Jackson County in calendar year 1974.
    The farmer's discomfort, riding on the Oregon-California stage between a fat man and a hoop-skirted woman, provoked his remark: "Dadgum, we need a railroad." A number of farmers agreed and Jacksonville got the first survey under way which led to some colorful railroading activity and competitive battles, followed many years later by the Revestment Act of 1916 which returned to the government title to lands granted to the Oregon and California Railroad.
    It wasn't as simple as it may sound.
    The first survey for a railroad from Portland to California was started in 1863. On the original subscription list financing the survey were such well-known names as Lindsay Applegate, O. C. Applegate, Wagner & McCall's mill, J. G. Van Dyke and R. S. Belknap. Some paid cash, up to $25 (more of them $10) and others donated supplies and grain.
    In addition to the small amount of money, there was a federal grant in sight. The surveys were made and presented to the Oregon Legislature. in 1864. Senate Bill No. 14, according to an article in the Oregonian, proposed to grant this railroad one-half million acres of public lands granted to Oregon for internal improvements, 20 alternate sections per mile of railroad.
    The railroad was to be constructed through the Willamette, Umpqua and Rogue River valleys.
    Representative M. C. Cale of California had introduced a bill in Congress granting these lands to the California and Oregon Railroad Co., which would construct the road from Portland to the California line.
    The Jacksonville survey reached Portland, and a corporation was formed called the Oregon Central Railroad Co. In the list of incorporators were W. S. Ladd, H. W. Corbett, J. C. Ainsworth, Joseph Gaston and Jesse Applegate, all names still familiar in Oregon history; and others whose family names still appear in Portland landmarks if not in the telephone books.
    This line was to be built on the west side of the Willamette River. Competition soon arose. S. G. Elliott of California, backed by considerable capital, came along to incorporate another Oregon railroad company to build a line on the east side of the river. It was incorporated in Salem for $7,250,000 and the promoters proposed to sell shares at $100 each. It, too, expected to get the federal land grant.
    By April 15, 1868, both of these million-dollar corporations were ready to break ground.
    The west side Central Oregon railroad moved dirt first. Ceremonies were held in Portland and according to the Oregonian report everyone, "old men, middle-aged men, even ladies, vied with each other to throw dirt into the first car."
    The following day the east sideline held groundbreaking ceremonies perhaps 500 yards from the east bank of the river. "A monster procession" marked this endeavor. At the close of the ceremonies, Chinamen went right to work.
    The west side line hired white help. Stock was sold, bonds issued and sold on the London market. The company came into $300,000.
    Among the shareholders were Ladd and Tilton, Joseph Teal, F. Dekum and Samuel Lowenstein.
    Before the legislature convened in September, 1868, Ben Holladay appeared and lined up with the east side venture. He had lots of money and traveled to Salem to spend much of it on the legislature, at least $35,000, which was "big money" in those days.
    The legislature disqualified the west line and designated the east side line as the proper one to receive the grant Oct. 20, 1868, history reports.
    Promoters of the west side line, however, did not surrender. Battle lines were drawn to get the grant by getting the work done. Washington, Yamhill and Polk counties stayed loyal. Portland contributed $150,000 in cash and lands, Washington County $25,000 and Yamhill $20,000.
    Both sides engaged in a race against time, convinced that the government would honor the line which got the most work done. Railroad jobs were offered; work proceeded at top heat. Each side envisioned over a million dollars a year to be gained from mining freight alone, according to the newspaper report.
    The outcome was that Congress, pressured by agents, extended the time of filing acceptances and provided that the company which put 20 miles of road into operation should receive the land grant.
    Holladay put a "dinky" engine on the east side tracks and the line was first to go into operation for 20 miles. It got the land grant.
    The west side line had been pushed as far as Hillsboro and its promoters didn't give up. In December, 1869, Joseph Gaston was sent to Washington for a west side grant. His efforts and those of Sens. Corbett and Williams obtained 200,000 acres for the line with the sale price limited to $2.50 per acre. (It was the last railroad land grant made by Congress, according to a review of the events made in 1939.) Gaston took over and built the line to Forest Grove and southward 47 miles.
    Holladay titles were attacked in the court, but he continued to fight and changed the name of his company to "Oregon & California Railroad Company." He was accused of disgracing the lines [sic--lives?] and ruining the political fortunes of "more men in Oregon than all other events in state history." But he pushed the railroad line to Roseburg before he quit.
    It took 19 years from the first groundbreaking ceremonies for an Oregon to California line to make the grade. In 1887 the Southern Pacific took over both lines and made them part of its system.
    In 1916, as previously mentioned, the Revestment Act returned to the government title to lands granted to the Oregon and California Railroad.
    In 1926 the Stanfield Act provided relief to the O&C counties in which these revested lands are located. A total of $7,140,000 was paid to the 18 counties for back taxes covering the years of 1916 through 1926.
    From 1927 to 1937, however, the receipts had been sufficient only to meet the counties' tax obligation from 1927 through 1933. The combination of the depression of the '30s and an unsatisfactory financial arrangement "again spelled chaos in the western counties" and there was an appeal for a revision of the "basic policy for the administration of the O&C lands," according to a history issued by the state office of the BLM. The O&C Act of 1937 changed the basis for payments to counties from tax equivalency to a percentage of the gross receipts.
    In fiscal year 1952 the counties received 75 percent of total receipts ($6,053,458) over five times the estimated tax equivalent.
    The 1953 Interior Department Appropriation Bill altered the effect of the 1937 Act by providing that the U.S. Treasury be reimbursed for construction of access roads from 25 percent of the receipts. Without changing the formula of 50 percent to the county treasuries the counties' support to the O&C program approximated $10,000,000 annually in recent years.
    Efforts still are made to change things more as other counties look with covetous eyes at the funds coming to the 18 O&C counties.
    But some residents of the Rogue Valley point out that with all that O&C wealth they are just as deprived of railroad transportation today as was that Jacksonville farmer more than a century ago.
Medford Mail Tribune, April 4, 1975, page B8