project, I do not know, but this bill does just what the chairman says, it cuts governmental redtape in order to make it easier to accept gifts and donations from interested citizens.

Mr. BURKE. Of course, the Secretary of Agriculture could then ask for further appropriations for this development.

Mr. TAYLOR. Yes, he can do that under existing authority.

Mr. BURKE. Not on the developing of the National Forests under the National Park Act?

Mr. TAYLOR. Under existing authority, he can and does and has. The project is already partly completed and in operation. Mr. BURKE. I will take your word for that.

Thank you.

That is all, Mr. Chairman. No, I have one further thing.

May I also say that in the beginning part of the bill you say that the Secretary of Agriculture has the right to do this. The bill says that "the Secretary of Agriculture is hereby authorized to establish the cradle of forestry in America in the Pisgah National Park, North Carolina." The bill says that he will be given the authority. How does he have the authority then?

Mr. TAYLOR. Let me say that the cradle, while it is in operation, does not have specific boundary lines. It is part of the Pisgah National Park which, I think, has about 170,000 acres in that one unit, and several hundred thousand acres in several other units. This designates the specific area as the cradle of forestry which will be administered slightly differently from other parts of the forest, but the one important part of the bill is that it authorizes the acceptance of donations, and there are interested people who want to make these donations and it cuts the governmental redtape so that it would be practical to receive anything that is offered that is needed.

Mr. BURKE. Thank you.

That is all, Mr. Chairman.

The CHAIRMAN. Are there any other questions?

Are there any other questions of either of these two witnesses? If not, we are very much obliged to you, gentlemen.

We appreciate your attendance.

May I go off the record?

(Discussion was had outside the record.)

The CHAIRMAN. Back on the record.

We will now go into executive session.

We are very much obliged to you gentlemen for your contribution and we appreciate your attendance.

(Whereupon, at 11:50 a.m., the committee retired into executive session, and the reporter was excused.)

CONVEYANCE OF LAND TO THE STATE OF IOWA

WEDNESDAY, MAY 15, 1968

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON DEPARTMENTAL OVERSIGHT

OF THE COMMITTEE ON AGRICULTURE,

Washington, D.C.

The subcommittee met, pursuant to notice, at 10:10 a.m., in room 1301, Longworth House Office Building, the Honorable Paul C. Jones presiding.

Present: Representatives Jones, Kleppe, and Price.

Also present: Martha Hannah, subcommittee clerk; Hyde H. Murray, assistant counsel; L. T. Easley, staff consultant; and Fowler C. West, assistant staff consultant.

Mr. JONES. The subcommittee will come to order.

We are here to consider H.R. 16065 by Mr. Scherle and Mr. Kyl, directing the Secretary of Agriculture to release on behalf of the United States conditions in deeds conveying certain lands to the State of Iowa, and for other purposes.

(H.R. 16065 follows:)

[H.R. 16065, 90th Cong., second sess.]

A BILL To direct the Secretary of Agriculture to release on behalf of the United States conditions in deeds conveying certain lands to the State of Iowa, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding the provisions of subsection (c) of section 32 of the Bankhead-Jones Farm Tenant Act, as amended (7 U.S.C. 1011(c)), the Secretary of Agriculture is authorized and directed to release on behalf of the United States with respect to lands designated pursuant to section 2 hereof, the conditions in those two deeds dated July 29, 1955, conveying lands in the counties of Monroe and Decatur in the State of Iowa to the State of Iowa acting by and through its State board of regents for the use and benefit of the agricultural experiment station of the Iowa State College of Agriculture and Mechanic Arts, now Iowa State University which require that the lands so conveyed be used for public purposes and provide for a reversion of such lands to the United States if at any time they cease to be so used.

SEC. 2. The Secretary shall release the conditions referred to in the first section of this Act only with respect to lands covered by and described in an agreement or agreements entered into between the Secretary and the university in which the university, in consideration of the release of such conditions as to such lands, agrees

(1) that all the proceeds from the sale, lease, exchange, or disposition of such lands shall be used by the university for the acquisition of lands to be held for university purposes, or for the development or improvement of any lands so acquired;

(2) that all the proceeds from the sale, lease, or other disposition of lands covered by any such agreement shall be maintained by the university in a separate fund and that the record of all transactions involving such funds shall be open to inspection by the Secretary of Agriculture.

95-893-68- -2

SEC. 3. Upon application, all the undivided mineral interests of the United States in any parcel or tract of land released pursuant to this Act from the conditions as to such lands shall be conveyed to the State of Iowa for the use and benefit of Iowa State University or its successors in title by the Secretary of the Interior. In areas where the Secretary of the Interior determines that there is no active mineral development or leasing, and that the lands have no mineral value, the mineral interests covered by a single application shall be sold for a consideration of $1. In other areas the mineral interests shall be sold at the fair market value thereof as determined by the Secretary of the Interior after taking into consideration such appraisals as he deems necessary or appropriate.

SEC. 4. Each application made under the provisions of section 3 of this Act shall be accompanied by a nonrefundable deposit to be applied to the administrative costs as fixed by the Secretary of the Interior. If the conveyance is made, the applicant shall pay to the Secretary of the Interior the full administrative costs, less the deposit. If a conveyance is not made pursuant to an application filed under this Act, the deposit shall constitute full satisfaction of such administrative costs notwithstanding that the administrative costs exceed the deposit. SEC. 5. The term "administrative costs" as used in this Act includes, in addition to other items, all costs which the Secretary of the Interior determines are included in a determination of (1) the mineral character of the land in question, and (2) the fair market value of the mineral interest.

SEC. 6. Amounts paid to the Secretary of the Interior under the provisions of this Act shall be paid into the Treasury of the United States as miscellaneous receipts.

Mr. JONES. The author of the bill, Mr. Scherle, is not here.

Do you prefer, Mr. Kyl, to make a statement now?

Mr. KYL. Yes, sir..

Mr. JONES. You may proceed.

STATEMENT OF HON. JOHN KYL, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF IOWA

Mr. KYL. Thank you, Mr. Chairman, and gentlemen of the committee. Mr. Scherle is on his way here.

One of the things Mr. Scherle will ask the committee's permission to do, is to file a complete statement on behalf of the university setting forth the reasons why they are requesting the action which is contained in this bill. His testimony is somewhat parallel to mine but I shall try to make this completely germane so we do not waste any time. Mr. Scherle and I have studied the request of the college of agriculture which is embodied in this bill. Both of us have beef cowherds in southern Iowa. We believe that the reasoning of the college is meaningful and logical.

The State of Iowa has approximately one-fourth of all the class I land of the United States. However, the land of southern Iowa lies outside that relatively flat area with the deep rich soil. Much of southern Iowa is grazing country. I relate this condition as prelude to stating the estimated dollar value of the land involved in this bill.

These estimates of land evaluation were determined by contact with bankers, real estate men, comparative actual land transactions, advertised real estate offerings, and by application of the huge store of information available to agricultural economists at the college.

The 410-acre tract near Lineville is estimated to have a current market value of approximately $150 per acre for an aggregate worth of $61,500. The 545-acre tract near Albia is evaluated at $200 per acre for an aggregate of $109,000.

These evaluations are higher than would be the case in many nearby tracts, because the improvements and the management by the college has enhanced the land value.

I would like to note again that this bill was drawn so as to be consistent with previous bills which have received favorable consideration by your committee and by the Congress.

We would be happy to respond to any questions you might have in considering this proposal.

Mr. JONES. Suppose that we hear Mr. Scherle's testimony, and then we can question both of you, if you will just remain?

We shall be glad to hear from you now, Mr. Scherle.

STATEMENT OF HON. WILLIAM J. SCHERLE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF IOWA

Mr. SCHERLE. Mr. Chairman and members of the committee, I apologize for being late. It seems like even the best-laid plans of mice and men sometimes go astray.

Mr. JONES. That is all right, Mr. Scherle. We are happy to have you here, and we will be pleased to hear from you in support of your bill H.R. 16065.

Mr. SCHERLE. Let me begin by expressing our appreciation to your subcommittee for giving us this opportunity to present testimony on behalf of H.R. 16065. We both are aware of the time required of the members of the House Agriculture Subcommittee, and of the importance of other business which demands your attention.

H.R. 16065 relates to about 955 acres of land acquired from the United States under title II of the Bankhead-Jones Farm Tenant Act. These lands are located in Decatur and Monroe Counties in southern Iowa. They consist of two separate parcels, 410 acres near Lineville and 545 acres near Albia.

Title III of the Bankhead-Jones Act authorized the Secretary of Agriculture to convey lands to public agencies under terms and conditions deemed to best accomplish title III purposes, on condition. that the property conveyed be used for public purposes. In 1955, the Secretary conveyed the tracts to Iowa State University-then Iowa State College of Agriculture & Mechanical Arts subject to the required public-use condition.

The lands, which are the subject of our consideration here today, are being used in connection with the experiment station-extension service research on beef cattle.

As is discussed in detail in the statement from Dr. H. L. Self which will be submitted as a part of this record, the characteristics of this land are such that they do not, as separate units, fill the need for research facilities in the southern portions of Iowa at the present time.

I need not tell you that farms are much larger than they were when these farms were set up 30 years ago.

According to Dr. H. L. Self, professor-in-charge of outlying experimental farms, in a letter dated August 9, 1967, "The present capacity of these two farms to carry beef cattle has become inadequate to result in an efficient operation in terms of our present research needs."

The two parcels involved are separated by approximately 75 miles, and cannot be operated as an efficient unit. Consequently, it is the desire of Iowa State University to be enabled to sell, lease, exchange,