tion for the recommendation of the selection for purchase of 9,971.27 acres of lands, specifically described and located in T. 23 S., R. 6 and 7 W., and T. 24 S., R. 7 W., N. M. M., and offered to pay for said lands the sum of $1.50 per acre, and to advance such sum of money as might be necessary to defray the cost and expenses incident to the selection of the lands, such sums so advanced to be applied upon the purchase price of the lands. Acting upon said application the commission of irrigation, at a meeting held September 3, 1904, accepted the proposition and directed the secretary of the commission to certify a copy of its proceedings to the United States land commission, with the recommendation that the said last-named commission approve of same and make selection of the lands described in the application, but that no entry thereof be made at the local land office until satisfactory evidence was produced by the applicants that the money was ready to pay for the land as soon as title became vested in the Territory of New Mexico.

A copy of said proceedings was duly certified to the United States land commission, December 3, 1904. At a meeting of the United States land commission, held December 5, 1904, the proceedings of the irrigation commission were ordered spread upon the minutes, and the locating agent was instructed to locate the lands upon the ground, but not to make out the lists nor file them until further instructed, and to report at once to the land commission the number of acres selected for Bonham & Holt. March 6, 1905, Mr. Holt, of the firm of Bonham & Holt, appeared at a meeting of the board of public lands, and, in pursuance of the resolution of the United States land commission, tendered a certified check to the board of public lands in payment for the lands to be selected. At a meeting of the board of public lands, held March 11, 1905, Bonham & Holt tendered a certified check for $1,500, drawn to the order of the commissioner of public lands of the Territory, together with a form of escrow agreement, the pertinent conditions of which were:

That, upon the approval by the Secretary of the Interior of the selections, Bonham and Holt and their associates or assigns were to make proper applications for the purchase of said lands, and that the same should then be advertised for sale; that, if the price offered by Bonham and Holt and their associates was not exceeded by that offered by other applicants, each and every bid of Bonham and Holt and their associates was to be accepted and the certified check was to be received and treated as covering the 10 per cent required to accompany all bids. In case the selections were not approved by the Secretary of the Interior, or the Territory could not make title to Bonham and Holt, etc., to at least 75 per cent of the described lands, then the check was to be returned to James Scott Delamater, trustee, of Pittsburg, Pa., or his assigns; or, upon failure of Bonham and Holt, etc., to complete the purchase under the terms of the agreement, said check was to be forfeited to the Territory as liquidated damages.

The lands described in the Bonham and Holt application were entered by the Territory, at the Las Cruces office, March 25, 1905, 4,880.21 acres per list No. 2, for the improvement of the Rio Grande River, and 4,732.46 acres per list No. 4, for the establishment of permanent reservoirs for irrigation. Said selections were approved by the Secretary of the Interior August 23, 1905, and October 11, 1905, per clear lists 4 and 11, respectively, and were duly advertised for sale in two

successive issues of the Rio Grande Republican, of Las Cruces, and January 2, 1906, was the day named when sealed bids would be received by the commissioner of public lands. Sixty-two bids were presented by Mr. Holt, embracing all of said lands. No bid was for more than 160 acres, and each bid was signed by a different applicant, and all were at the uniform price of $1.50 per acre. No other bids were received. These bids were accepted by the commissioner of public lands, and deeds to the various parties were subsequently prepared, but were not executed or delivered, owing to a doubt in the mind of the commission as to whether the sale could be consummated without violation to the act of June 21, 1898 (30 Stats., 484), making the grant, which provides that

not more than one quarter section of land shall be sold to any one person, corporation, or association of persons.

Wherefore, the matter was submitted to the Department for opinion, and by the Department referred to the Office for report.

In letter "G" of February 26, 1906, this Office reported that, as the title to the land had become vested in the Territory, it was not a matter over which it could exercise any administrative jurisdiction. Thereafter, March 6, 1906, the matter was referred to the Assistant Attorney-General of the Department for an opinion as to whether the facts disclosed constituted a violation or evasion or attempted violation or evasion of the provision of the act of June 21, 1898 (30 Stats., 484), which directs that "not more than one quarter section of land shall be sold to any one person, corporation, or association of persons," and (2) if, under the facts presented, an attempt has been made to dispose of said lands in a manner violative of said provision, the Secretary of the Interior is authorized to direct the governor of said Territory to withhold the delivery of deeds consummating the sale.

In an opinion of the Assistant Attorney-General of March 14, 1906, approved by the Secretary of the Interior, it was held:

The facts presented are not sufficient to justify me in expressing an opinion whether the sale of these lands was violative of the inhibition of the granting act above quoted, but I advise you that upon the approval of the lists by the Secretary of the Interior the jurisdiction of the land department terminated, and I know of no rule of law or administration which would justify you in directing the governor of the Territory to withhold said deeds. I advise you, however, that you are authorized to direct such investigation in regard to these sales as will enable you to make report to Congress thereon for such action by that body as seems appropriate, and that in the meantime the governor of the Territory should be advised that the best interests of the Territory seem to require that for the time being the delivery of said deeds should be withheld.

March 19, 1906, the Secretary of the Interior forwarded to you a copy of said opinion, and directed that an investigation of the sales referred to be made by an agent of this Office, and that his report, with such recommendation as was deemed advisable, be transmitted by you to the Department.

Prior to my departure to New Mexico to enter upon the investigation, I ascertained from the records of this Office that a right of way for reservoir and pipe lines over certain of the lands described in the Bonham and Holt application was approved December 28, 1904, to the Mimbres River Water Company, incorporated May 16, 1904, the principal office located at Albuquerque, N. Mex., and the incorporators being George W. Delamater, of Pittsburg, Pa., president; Allan G. Kennedy,

of Santa Fe, N. Mex., vice-president; William B. Childers, Albuquerque, N. Mex., second vice-president; James S. Delamater, Pittsburg, secretary and treasurer; and Ed. L. Medler, Albuquerque, N. Mex. Upon my arrival at Santa Fe I had a conference with the governor of the Territory, April 2, 1906, and was assured by him that I should have access to the records of the office of the commissioner of public lands, and of any other assistance to facilitate the investigation. At my request he telegraphed to Mr. H. B. Holt, of Las Cruces, one of the contracting parties, and advised him of my presence in Santa Fe, and suggesting that he come to Santa Fe to see me. I also called at the office of the commissioner of public lands and ascertained that a written demand had been made on him March 29, 1906, by Bonham and Holt, for the immediate delivery of the deeds, and a tender made of the final payment of $14,419 in full settlement, which tender he declined, and refused to deliver the deeds for the reason that he considered the contract and agreement a violation of the law. A certified copy of commissioner's letter of March 29, 1906, refusing tender and delivery of deeds is transmitted herewith and marked "Exhibit A." On April 3, 1906, I met Mr. H. B. Holt in the office of the governor, and a memorandum of the interview signed by me and attested by the governor of the Territory is annexed, marked "Exhibit B." In said interview Mr. Holt specifically denied the existence of collusion or privity of interest between any of the applicants or the existence of any agreement by any of the applicants for the transfer of title after the same should be acquired. He denied that the Mimbres River Water Company was interested in the purchase, though admitted that members of that company were applicants in their own right and the promoters of the scheme; and to the best of my recollection he declared he knew nothing of the conditions of the trust under which Mr. James S. Delamater was acting as trustee in the payment of the 10 per cent at the time the agreement in escrow was entered into, and in the tender of the final payment.

On April 4, 1906, I procured from Mr. F. C. Dezendorf, special agent, the affidavits of two of the applicants, which had been secured by him, viz, Albert J. Fountain and Eugene Van Patten (Exhibit C). Both affiants made oath that they had signed the applications at the request of Mr. Holt and to oblige him; that it was with the understanding it was a mere form and there was nothing illegal or wrong in in it; that they did not pay for the land and did not expect to have any interest in it, and at the time of signing the applications they likewise executed deeds conveying the land to Mr. Holt or someone else, and gave the deeds to Mr. Holt. I then secured another interview with Mr. Holt at the office of Mr. Dezendorf, and in his presence, at which Mr. Holt reiterated that all of the applications were made by bona fide applicants in their own right and under no agreement to transfer title after it was acquired, and in response to Mr. Dezendorf's question as to whether he meant by a bona fide applicant one who applied for himself and for his own use, and not for the use of another, and intended to pay for the land with his own money, he stated that was his understanding. Memorandum of this interview I immediately made and submitted to Mr. Dezendorf for verification (Exhibit D).

I then obtained from Mr. A. A. Keen, Commissioner of Public Lands, and Mr. F. M. Shearon, stenographer in Mr. Keen's office, a sworn copy of a memorandum of conversation between A. A. Keen

and H. B. Holt, as reported by Mr. Shearon January 31, 1906, wherein Mr. Holt, when asked if it was the purpose of the applicants to transfer the land as soon as the deeds were delivered, to one individual, replied:

No, not to one individual, but it is to all be transferred to a company. (Exhibit E. ) I visited Las Cruces, where most of the applicants reside, and interviewed the following applicants:

Mrs. Gilmore Friend. She did not at first recall having signed any application. When shown the original application, she remembered that Mr. Holt had asked her if she didn't want to go into a land scheme. She did not know if she put up any money; if she put up any, it was very little. Did not remember if she had signed any other papers; couldn't tell without seeing Mr. Holt. Supposed if anything was made out of it she would get her share. Had not taxed her mind with it after Mr. Holt left her. She had every confidence in Mr. Holt and knew he would not ask her to do anything wrong, and she didn't want to say anything that would hurt him.

John J. Cluin.-Signed the application because Holt asked him; did not put up any money, but if Mr. Holt thought it was a good proposition he was willing to go into it. Holt did not tell him that he would make anything out of it or have anything to pay for the land, but he had confidence in Holt and believed he would look after the matter. Could not recall if he had signed a deed for the land.

Clifford Gill and Vincent May. Both signed because Holt asked them. Did not put up any money and didn't expect to, and did not expect when they signed the application to be bothered any more about the land. What they did was on account of friendship and in the belief that everything was straight and proper.

John H. May.-Signed application because he was willing to go into the deal. Did not pay much attention to it at the time, but he had faith in Holt, and when Holt came to him for the money he could have it to pay for the land. He expected to be called on to pay for it when the deal was closed, but he left the details to Holt. Did not sign any deed for the land, nor had he agreed to do so.

Catarino Armijo.—Signed the application upon request of Mr. Holt and to assist him. His wife, Julia A. Armijo, did the same. He understood that Mr. Holt wanted to purchase some land and had to have separate applications for each quarter section; that neither he nor his wife put up any money and did not expect to. He was told it was a legitimate proceeding and would not affect his homestead or other rights. He and his wife both executed separate deeds for the lands and each joined in the deed of the other. Neither he nor his wife received any consideration for their deeds or participation in the matter.

I then called upon Mr. Holt at his office but did not find him in. Later in the day Mr. Holt called on me and asked that I accompany him to his office where his partner, Mr. Bonham, was. I did so. Mr. Holt very briefly stated that after consulting with his partner and one of his clients they had decided to inform me that each of the applicants to purchase had, at the time of signing the application, also executed a deed in fee to James S. Delamater, trustee, and had given same to him (Holt) to hold in escrow, and that the deeds were still in his possession.

I told Mr. Holt that his statement did not correspond with his previous allegations, as I remembered and had recorded in substance, in

our two previous interviews. I then submitted to him the memoranda of those interviews, and asked him to submit to me in writing any corrections he thought should be made. I called on him later in the day and in my presence he dictated from prepared notes the letter of April 10, 1906, herewith. (Exhibit F.) The corrections he desires made do not accord with my recollection or notes made at the time, but I submit same as part of the record. Having dictated so much of the letter as relates to correction of our previous interviews, he asked if I had anything further to suggest, and I then asked him to embrace in his letter the substance of his statement made to me earlier in the day relative to the execution of the deeds by the various applicants. This he did. Mr. Holt further admitted that there was no escrow agreement in relation to said deeds but that he held them awaiting the delivery of deeds by the Territory, when he would deliver all to J. S. Delamater, as trustee.

The admitted fact that all of the applicants to purchase had executed deeds to J. S. Delamater, trustee, for the lands described in their several applications is conclusive of the fact that the original application of Bonham and Holt to the irrigation commission, for the recommendation of the selection of the described lands, was made in the interest of a corporation or an association of persons formed for the purpose of acquiring title from the Territory of more than 160 acres of land, and that the several applicants were procured that the record facts might show a strict compliance with the letter of the law. This, of necessity, was known to Messrs. Bonham and Holt, and while it is not conclusively established by direct evidence, it is fairly inferable. from admissions and record evidence in other transactions of a similar nature that it was known to the members of the irrigation commission, the United States Land Commission, and the board of public lands.

In an interview I had April 10, 1906, with Mr. Arthur Seligman, secretary of the irrigation commission at the time the application of Bonham and Holt was presented, he stated it as his belief that it was generally known to the members of the commission that the application was in the interest of some company or corporation, and a like admission was made to me by Mr. A. A. Keen, commissioner of public lands and a member of the public land board, as to the knowledge of the members of that board. That such proceedings were not only known to the board of public lands, but sanctioned and favored, is an irresistible conclusion when the record facts of the sale of large areas of the territorial lands are compared with the actual facts attending the selection and sale, also partly matters of record, but obtainable only by protracted and systematic search through miscellaneous correspondence. One instance need only be cited, and that here briefly, as I shall make it a matter of separate report.

The minutes of the board of public lands for January 23, 1901, shows that

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The commissioner presented applications to purchase lands, numbered 3 to 166, inclusive, as of record in the "Application Register to Purchase," and reference is hereby made to said book for complete description of said lands. On motion, the applications being regular and money accompanying same, the deeds were ordered to be issued in favor of applicants.

The receipt or cash book shows 162 receipts to 162 individuals, issued January 23, 1901, for an aggregate sum of $70,715.16 in payment for separate tracts aggregating 23,571.72 acres, and separate HD-59-1-Vol 50—12