LETTERS, ETC., FROM THE SECRETARY OF THE INTERIOR CONCERNING THE PROPOSED LEGISLATION Hon. GERALD P. NYE, DEPARTMENT OF THE INTERIOR, United States Senate. Chairman Committee on Public Lands and Surveys, MY DEAR MR. CHAIRMAN: In compliance with your request of December 29, 1931, for a report on S. 476 which is a bill for the relief of certain purchasers of lots in Harding town site, Florida, I transmit herewith a memorandum on the subject that has been submitted by the Commissioner of the General Land Office. After a review of the proposed measure, I agree with the commissioner. Very truly yours. Memorandum for the Secretary: GENERAL LAND OFFICE, The chairman of the Senate Committee on Public Lands and Surveys on December 29, 1931, requested a report on S. 476 which proposed to authorize and direct the issuance of patents to purchasers of lots in Harding town site, Florida, upon payment of 50 per cent of the purchase price. The bill also directs the return to purchasers of any amount over 50 per cent of the purchase price which has been paid by said purchasers. The homestead application by Lewis G. Norton was filed June 16, 1920, for lot 6 of sec. 2, T. 53 S., R. 43 E., Tal. M., which application was rejected by the register June 18, 1920, because the land was withdrawn. On appeal, the decision was affirmed November 20, 1920. On March 11, 1921, while the withdrawal of April 6, 1891, was in force, the President issued Proclamation No. 1589, which reserved certain lands embraced in former lot 6 of sec. 2, for a life-saving station and restored the balance of said lot 6 to the public domain. Lot 6 has been divided into lots 7 and 8, lot 7 being the portion embraced in Harding town site. On June 10, 1921, the President by Executive Order No. 3480, reserved the land now embraced in Harding, under section 2380, U. S. R. S., for town-site purposes. On March 14, 1921, Norton filed another application to make homestead entry for the land embraced in Harding town site, which was rejected by the Secretary May 23, 1921. The record shows that Norton had erected a house upon what is now lot 4, block 10, and did some clearing and dug a well on the land. Norton continued to assert title to the land embraced in the town site, notwithstanding the adverse decisions of the department of May 23, 1921, and of January 30, 1924. As Norton continued to assert his claim after the sale, the Government found it necessary to institute suit to eject him from the land. The Federal district court sitting at Jacksonville, Fla., rendered a decision favorable to Norton on June 23, 1926, and on appeal the United States Circuit Court of Appeals at New Orleans on June 9, 1927, reversed this decision and remanded the case. Later an application for a writ of certiorari made in behalf of Norton was denied by the United States Supreme Court on November 21, 1927. The Federal District Court for the Southern District of Florida on May 23, 1928, rendered a decision in favor of the Government. Another application in behalf of Norton was made to the United States Supreme Court for a writ of certiorari which was denied in February, 1929. This department was not notified until July, 1929, that the decision rendered on May 23, 1928, in favor of the Government had become final. A total of 128 lots of 133 embraced in the town site were sold for $386,400. The total amount paid on lots sold is $300,894.50, which amount had been deposited in the Treasury. The total amount due on said lots is $85,595.50. Under the terms of the bill the department would receive half of the sale price of the lots, which is $193,200, and purchasers would be relieved from paying into the Treasury an equal amount of money. Under the directions contained in the bill, half of the amount paid in on 29 patented lots would have to be refunded. Also, the third installment, which has been paid on 96 lots, would have to be refunded, which amounts in the aggregate would exceed $100,000. The purchasers exercised their own choice and judgment in the purchase of lots. The competition for the lots was keen and the bidders made their own prices. At the date of the sale real estate prices were very high in Florida and much land was bought for speculation. It has been reported by some of the purchasers that they have sold their lots at more than double the prices paid. It should be noted that no interest was charged on the lots sold. Under all the circu nstances I do not favor the enactment of the bill. C. C. MOORE, Commissioner. Hon. DUNCAN U. FLETCHER, United States Senate. DEPARTMENT OF THE INTERIOR, MY DEAR SENATOR FLETCHER: Reference is had to your letter of December 21, 1931, in which you inclosed copy of a bill, S. 476, introduced by you, for the relief of purchasers of lots in Harding Townsite, Fla. You ask that an extension of time be granted to the purchasers of lots in Harding until Congress has had opportunity to dispose of pending legislation for the relief of such purchasers. The register at Gainesville has been advised that no action will be taken to cancel purchases for the nonpayment of the balance due on the purchase price until the present session of Congress has had opportunity to dispose of pending legislation for their relief. A copy of the letter to the register is inclosed. Very truly yours, JOHN H. EDWARDS. DEPARTMENT OF THE INTERIOR, REGISTER, Gainesville, Fla. SIR: On December 21, 1931, Senator Fletcher notified this department that he had introduced a bill (S. 476) for the relief of the purchasers of lots in Harding, Fla., similar to his bill introduced in the last Congress. He also requested that an extension of time be granted to the purchasers of Harding lots until Congress has had opportunity to dispose of such legislation. You are advised that no action will be taken looking to the cancellation of any sale where the purchaser is in arrears until the present session of Congress has had opportunity to pass on pending legislation for their relief. Purchasers will be given ample notice before steps are taken to cancel any purchases which may be in default, and those who make inquiry should be advised hereof. Very respectfully, Approved: January 5, 1932. SR-72-1-VOL 1-7 C. C. MOORE, Commissioner. JOHN H. EDWARDS, Appraisement of lots to be offered at public sale in the town site of Harding, Fla., February 12, 1924 TOWN LOTS IN THE TOWN SITE OF HARDING, Fla. (Near MIAMI BEACH), to Be SOLD AT PUBLIC AUCTION BY THE UNITED STATES GOVERNMENT-SALE WILL BEGIN ON THE Ground at HARDING FLA., ON FEBRUARY 12, 1924 REGULATIONS FOR THE SALE OF TOWN LOTS IN THE TOWN SITE OF HARDING, Fla. DEPARTMENT OF THE INTERIOR, Washington, D. C., October 30, 1923. The COMMISSIONER OF THE GENERAL LAND OFFICE. SIR: By virtue of Executive Order No. 3480, dated June 10, 1921, under the provisions of sections 2380 and 2381, United States Revised Statutes, you are directed to cause the unreserved lots in the town site of Harding, Fla., to be offered for sale at said town site at public outcry to the highest bidder, at not less than their appraised value, respectively, in the manner and on the terms hereinafter described and under the supervision of the Commissioner of the General Land Office, beginning on Tuesday, February 12, 1924, at 10 o'clock a. m., and continuing thereafter from day to day as long as may be necessary, Sundays and holidays excepted. Manner. Bids may be made either in person or by agent, but not by mail nor at any time or place other than the time and place when and where the lots are offered for sale hereunder, and any person may purchase any number of lots for which he is the highest bidder. Bidders will not be required to show any qualifications as to age, citizenship, or otherwise. If any successful bidder fails to make the payment required on the date of sale, the lot awarded to him shall be reoffered for sale on the following day. Terms. No lot will be disposed of for less than its appraised value; onefourth of the bid price shall be paid on the day the bid is accepted and the balance of the purchase price may be paid in three equal installments in one, two, and three years after the date of sale. No entry will be allowed until payment has been made in full for the lot, but in case of partial payment there will be issued to the purchaser a nontransferable memorandum duplicate certificate as per Form 4-014; the receiver in such case will issue an official receipt (Form 4-131) for the money paid. Nothing herein will prevent the transfer of interest secured by the purchase and the partial payment of the lot, by deed, but the assignee will acquire no greater right than that of the original purchaser and the final entry and patent will issue to the original purchaser when all payments are made. Forfeiture. If any person who has made partial payment on the lot purchased fails to make any succeeding payment, required under these regulations, at the date such payment becomes due, the money deposited by such person for such lot will be forfeited and the lot after forfeiture is declared will be subject to disposition. Lots remaining unsold at the close of the sale, or thereafter declared forfeited for nonpayment of any sum of the purchase price, under the terms of the sale will be subject to private entry for cash at their appraised value. All persons are warned against forming any combination or agreement which will prevent any lot from selling advantageously, or which will in any way hinder or embarrass the sale, and all persons so offending will be prosecuted under section 59 of the criminal code of the United States, which reads as follows: "Whoever before or at the time of the public sale of any of the lands of the United States shall bargain, contract, or agree, or attempt to bargain, contract, or agree with any other person that the last-named person shall not bid upon or purchase the land so offered for sale, or any parcel thereof; or whoever by intimidation, combination, or unfair management shall hinder or prevent, or attempt to hinder or prevent, any person from bidding upon or purchasing any tract of land so offered for sale shall be fined not more than one thousand dollars, or imprisoned not more than two years, or both." The commissioner, or his representative conducting the sale, is authorized to reject any and all bids for any lot, and at any time suspend, enjoin, or postpone the sale of any lot or lots to such time and place as he may deem proper. Very truly yours, E. C. FINNEY, DEPARTMENT OF THE INTERIOR, The COMMISSIONER OF THE GENERAL LAND OFFICE. MY DEAR MR. COMMISSIONER: I have your letter of February 1, 1924, recommending certain amendments to the regulations issued October 30, 1923, relating to the sale of town lots in the town site of Harding, Fla., and after careful consideration the regulations are hereby amended as follows: Under the title "Forfeiture" the second sentence will read: "Lots remaining unsold at the close of the sale will be subject to private entry for cash at their reappraised value, or lots thereafter declared forfeited for nonpayment of any sum of the purchase price, under the terms of the sale will be subject to private entry for cash at the price bid at the sale for such lots." Further, the last paragraph of said regulations is hereby amended by adding thereto "and to reappraise any lot or lots remaining unsold at the close of sale. Very truly yours, E. C. FINNEY, First Assistant Secretary. COMMUNICATIONS, AFFIDAVITS, ETC., SUBMITTED TO THE COMMITTEE IN SUPPORT OF THE BILL Hon. L. D. TYSON, Washington, D. C. CHATTANOOGA, TENN., June 27, 1927. DEAR SIR: On February 12, 1924, the Department of the Interior sold at public auction a tract of land, "Harding town site" in Miami, Fla., to the highest bidder. Lots that the Government estimated worth $1,000 brought over $7,000, consideration one-quarter cash and deferred payments 1, 2, and 3 years. On the last payment the Government would have issued patents for the land purchased; the Government has collected all but the last payment, which was due February 12, 1927, the last payment, however, was not demanded, due to a lawsuit which has developed and entered into on May 11, 1925, to remove a certain trespasser, Mr. L. G. Norton, from the premises, which he claimed to have homesteaded, the Government since then lost the suit in the district court and has carried it to the higher courts, and refused to grant patent upon final payment or refund money paid in. I have bought lots No. 7 and No. 14, block 1, in the Harding town site and paid in $14,400, according to the Department of the Interior, bearing no interest now going on over three years; the Department of the Interior instituted suit over two years ago and there is no knowing when it will terminate. Now, as to the equity of a just Government which refuses to return the principal or interest providing it loses the suit; innocent purchasers have bought in good faith expecting the Government to carry out its contract, some who bought at a sacrifice and hardship when the real-estate market was good and hoped to make a profit on the investment, but soon after the purchase it was revealed that the title was clouded, purchasers could not be found at any price. Under present conditions and circumstances, I feel the least the Government ought to do is to refund payments made to those who desire it. Should not a just Government do at least in justice and equity what it expects its citizens to do one to the other, according to law and order? I appeal to you to investigate and aid me in collecting what is my just due without any more delay. I shall be pleased to hear from you by return mail. Yours very truly, CHAS. ROSENTHAL. |