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Broken Compact
The Hollowing-Out of Nevada Statehood
BY STEVEN MILLER | WEDNESDAY, AUGUST 14, 2013 | 3 COMMENTS

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BeforeNevadajoinedtheUnionin1864,theU.S.Congressexplicitlypromisedmorethantwo dozentimesthatthenewstatewouldbeonanequalfootingwiththeoriginalstates. Thatpromisewasnotkept. Take,forexample,languageonmerelyonepagefromtheCongressionalGlobepredecessor ofthemodernCongressionalRecordforMarch3,1864: Themotion[totakeupthebillfortheadmissionofNevadaintotheUnion] wasagreedtoandthebill(S.No.524)toenablethepeopleofNevadato formaconstitutionandStategovernment,andfortheadmissionofsuch StateintotheUniononanequalfootingwiththeoriginalStates,was consideredasinCommitteeoftheWhole. TheinhabitantsofthatportionoftheTerritoryofNevadaincludedinthe boundariesdesignatedarebythebillauthorizedtoformforthemselvesa Stategovernment,whichState,whenformed,istobeadmittedintotheunion uponanequalfootingwiththeoriginalStatesinallrespects whatsoever IncaseaconstitutionandStategovernmentshallbeformedforthepeopleof theTerritoryofNevadaitshallbethedutyofthePresidentoftheUnited StatestoissuehisproclamationdeclaringtheStateadmittedintotheUnion onanequalfootingwiththeoriginalStates. Yettodayalmost150yearslatertheSilverStatestilllimpsalongwithitseffective sovereigntysignificantlycrippledbyafederalgovernmentthat,evenbyitsowncount,controls over85percentofthestatessurface. Only13percentprivatelyowned Oneresultisthatonly13percentofNevadassurfaceisavailabletoprovidethestatewithatax baseforthefundingofservices.InsomecountiessuchasMineral,NyeandWhitePine thetaxbaseisvirtuallynonexistent,at4percentorless. However,taxingthesoilasacommitteeoftheU.S.Housestatedasfarbackas1828isa powerincidenttoallsovereignstates. Moreover,asthecommitteereportnoted, Iftheselandsaretobewithheldfromsale,whichistheeffectofthepresent system,invainmaythePeopleoftheseStatesexpecttheadvantagesofwell settledneighborhoods,soessentialtotheeducationofyouth,andtothe pleasuresofsocialintercourse,andtheadvantagesofreligiousinstruction.
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Education (45) Energy (27) Federal Lands (2) Fiscal (31) Health Care (20) Housing (17) Nevada (40) Transparency (30) Video (22)

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Broken Compact | Nevada Journal

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ThoseStateswillformanygenerations,withoutsomechange,beretardedin endeavorstoincreasetheircomfortandwealth,bymeansofworksof internalimprovements,becausetheyhavenotthepower,incidenttoall sovereignStates,oftaxingthesoil,topayforthebenefitsconferreduponits ownerbyroadsandcanals.(Emphasisadded.) Beyondtheissueofmerelybadpolicy,however,isthequestionofwhetherthefederal governmenthasseriouslybreachedthelawnotonlyvisvisNevada,butvisvisvirtually alltheWesternstates. TheU.S.SupremeCourthasneverdirectlyaddressedthatquestion,notedtheStateofUtah lastyear.Butforthefederalgovernmenttoneverfollowthroughafter1864andsellthe unappropriatedNevadalandsorifunsellable,simplygivethemtothenewstatewasa clearviolationofthetermsunderwhichtheSilverStatehadagreedtoentertheunion. ThecovenantthatCongressbroke Asthe1828Housecommitteereportnoted,thosetermswerepartofanimplicitcontract betweenthestatesandthefederalgovernment: WhentheseStatesstipulatednottotaxthelandsoftheUnitedStatesuntil theyweresold,theyrestedupontheimpliedengagementofCongressto causethemtobesold,withinareasonabletime.Nojustequivalenthasbeen giventhoseStatesforasurrenderofanattributeofsovereigntyso importanttotheirwelfare,andtoanequalstandingwiththeoriginal States.(Emphasisadded.) PresidentAndrewJackson,fiveyearslater,wouldmakeasimilarpoint.Inavetomessageto theCongress,hereviewedthehistoryofAmericasenablingactsandwrote,Itcannotbe supposedthecompactsintendedthattheUnitedStatesshouldretainforeveratitletolands withintheStates. Thus,atthetimeofNevadasentryintotheUnion,theenablingactswererecognizedas,in essence,termsbeingofferedbyCongresstothepeopleoftheterritories:Iftheywouldorganize themselvesintorepresentativelyrepublicanassembliesandmeetotherconditionsCongressset forthintheenablingacts,thefederalgovernmentwouldsellorotherwisedisposeofthe unappropriatedlandswithinthenewstatesborders,openingthoselandsuptosettlementand commerce.Additionally,togetthenewstatesupandrunning,thefederalgovernmentwould sharewiththemsomeofthoselandsalerevenues. Ofcourse,forthefederalgovernmenttobeabletosellthoselands,titleonthemhadtobe clear.Nomarketexistedforencumberedpropertieswithcloudedtitles. ThisgetstothereasonwhyoneoftheconditionssetbyNevadasEnablingActwasa requirementthattheterritorialconstitutionalconventionincludeinitsdraftconstitutionthe nowinfamousdisclaimerclause. Thatclausewhichhaslongconfusedreadersunawareofitsfullhistoricalcontextstates: Thatthepeopleinhabitingsaidterritorydoagreeanddeclarethatthey foreverdisclaimallrightandtitletotheunappropriatedpubliclandslying withinsaidterritory,andthatthesameshallbeandremainatthesoleand entiredispositionoftheUnitedStates CountertotheimpressionthatmanyNevadansstillhave,Congressdidnotrequirethis provisioninordertoforeverlocktheSilverStatesunappropriatedpubliclandsawayfromits citizensandintopermanentfederalownership. Everystatehadadisclaimerclause ProofofthisisthefactthatvirtuallyallAmericanenablingactshavesuchdisclaimerclauses, goingallthewaybacktotheNorthwestOrdinanceof1787. ConsiderSection14,Article4ofthatwatersheddocument: ...ThelegislaturesofthosedistrictsornewStates,shallneverinterferewith

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Steven Miller
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Karen Gray
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Broken Compact | Nevada Journal

theprimarydisposalofthesoilbytheUnitedStatesinCongressassembled, norwithanyregulationsCongressmayfindnecessaryforsecuringthetitlein suchsoiltothebonafidepurchasers.Notaxshallbeimposedonlandsthe propertyoftheUnitedStatesand,innocase,shallnonresidentproprietors betaxedhigherthanresidents.(Emphasisadded.) Or,considerAlabamasenablingact,passedin1819,afullgenerationbeforeNevadas: Andthatthesaidconventionshallprovide,byanordinanceirrevocable withouttheconsentoftheUnitedStates,thatthepeopleinhabitingthesaid territory,doagreeanddeclarethattheyforeverdisclaimallrightandtitleto thewasteorunappropriatedlandslyingwithinthesaidterritoryandthat thesameshallbeandremainatthesoleandentiredispositionoftheUnited States TheStateofNebraskasenablingactisalsorevealing,becauseitsdisclaimerlanguageis identicaltoNevadas.However,only1percentofthesurfaceofthatstateaccordingtothe AmericanLandsCouncilistodayinthehandsofthefederalgovernment.

Readmoreat"HowNebraska'sfederallandenteredtheprivatedomain."

SotheactualpurposeoftheNevadaEnablingActsconditionthatterritorialresidentsdisclaim allrightandtitletotheunappropriatedpubliclandslyingwithinsaidterritorywassimplyto cleartitle,sothelandscouldbesold. ThatconceptofdisclaimingtitletoWesternlands,saysUtahsAssistantAttorneyGeneral AnthonyRampton,aWesternlandsspecialist,goeswaybacktotheArticlesofConfederation. Becausewithoutthatoccurring,thefederalgovernmentcouldntconveycleartitletotheland. Disclaiming,hesays,wasthevehiclebywhichdisposalwasgoingtobeaccomplished.Itsnot anobstacletodisposal,itsthevehiclebywhichdisposalwasgoingtobeaccomplished. WhatalsoisfrequentlynotunderstoodtodayisthatwouldbestatessuchasNevadawere eagertodisclaimtitlebecausetheyhadasignificantfinancialinterestinthefederal governmentsellingtheunappropriatedlands. Whilemostoftherevenuesfromthoselandsalesweretobekeptbythefederalgovernment originally,topayoffthepublicdebtleftfromtheRevolutionaryWaralltheenablingacts alsospecifiedthatsignificantrevenuesfromthosesalesweretogotothenewstatesfor education,roadsandamultitudeofotherpublicimprovements. ThusNevadasenablingactwhich,likemanyothers,saidthatthelandshallbesold promisedthenewstate5percentoftheincomeproducedbythosefederalsales: Sec.10.FivepercentofsubsequentsalesofpubliclandsbyUnited Statestobepaidtostateforpublicroadsandirrigation.Andbeit furtherenacted,Thatfivepercentumoftheproceedsofthesalesofallpublic landslyingwithinsaidstate,whichshallbesoldbytheUnitedStates subsequenttotheadmissionofsaidstateintotheUnion,afterdeductingall theexpensesincidenttothesame,shallbepaidtothesaidstateforthe purposeofmakingandimprovingpublicroads,constructingditchesor canals,toeffectageneralsystemofirrigationoftheagriculturallandinthe state,asthelegislatureshalldirect. Asnewstateswerebroughtonboard,continuesRampton,everysingleoneofthemhadto say,Okay.Wedisclaimtitletoallofthepubliclandswithinourterritorialboundaries.That wasthedeal. Towhich,hesays,thefederalgovernmentwouldrespond,Okay,anduntilweextinguishthe U.S.titletotheselands,youcantmesswiththem,youcanttaxthem,for,overareasonable periodoftimeweregoingtodisposeofthem,andthenyoucanbringthemwithinyour revenuebase.
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AllpartiesintheWestrecognizedthatuntilthatdisposaloccurred,thestatesintheWest wouldbeintroublefinancially,saysRampton,sincetheycouldnttaxthesefederallands. Itwasarevenueproblem,anditwasarecognizedrevenueproblem.Talktovirtuallyanystate legislatorinNevadaorUtahtodayandtheylltellyou:Thatrevenueproblemstillexiststoday. Moreover,theGovernmentAccountingOfficeforeseeseverworseningfiscaloutlooksfor Americasstateandlocalgovernments,allthewaythrough2060,withincreasinggaps betweenreceiptsandexpenditures. ThethinkingbehindAB227 YetweretheU.S.CongressnewlyalivetotheWesternpublic,itspoliticians,statelawsuits andthenations$16to$70trillionfederaldebttobeginhonoringitsenablingact commitments,thefinancialresultsforNevada,theotherWesternstatesandthenationitself couldbehuge. TakeNevadaalone,asanexample. Today,accordingtothefederalBureauofLandManagement,justthreefederalagencies theBLM,theU.S.ForestServiceandtheFish&WildlifeServiceoccupysome77.5percent, or55millionacres,ofSilverStateland. Atamere$5,000anacrereportedlythelowestpricepaidforSouthernNevadaBLMland duringthedepthsoftherecentrecessionthatfiguresoutto$13.75billionfortheStateof Nevadaand$275billionforthefederaltreasury. Ofcourse,SouthernNevadalandusuallygoesforwellabove$5,000,andthemarketvalueof muchoftherestofthefederallyoccupiedlandwithinthestateremainsunknown.And,given theabsenceunderthefederalregimeofnotonlyaccessbutalsogenuinemarketpricing,that isunlikelytochangesoon. Moreover,sointerwovenaredifferentinterestswiththefederalgovernmentscurrent occupationofNevadalands,andsodeficientarestateandfederalinventoriesofthoselands resources,thattheactualvaluesatissuearecurrentlyunknown. Indeed,thatwasaprimaryreasonwhytheNevadaLegislature,earlierthisyear,passed AssemblyBill227,whichestablishedtheNevadaLandManagementTaskForce.Madeupof countycommissionrepresentativesfromall17Nevadacounties,ithasuntilSept.1,2014to researchandreporttheconsequencesandresponsibilitiesforthestateanditscitizens,were CongresstoturnoverthemanagementandcontrolofthosepubliclandstotheStateof Nevada. Theonlyremedythatmakessense AcrosstheborderinUtah,wheretheissueofthefederalgovernmentsbreachofitscovenant withthatstatehasbeenfrontandcenterinrecentyears,AssistantAttorneyGeneralRampton saystheactualresourcesinvolvedarecurrentlyimpossibletocalculate. Ifyoutriedtocomeupwithadollaramount,itwouldbeimpossible,hesays.Ifyoutryto findotherremedies,itsamess. Thatswhy,saysRampton,Utahchosein2012topasslegislationHouseBill148 demandingthatthefederalgovernmentfollowthroughandtransferBLMandForestService landstothatstate. Frankly,thisisthebestwaytodoitanditsineverybodysinterest.Whatwehavedone,in making[this]demand,isprovideanadequateremedytoaproblem. AccordingtoRampton,transferofthepubliclandsfromthefederalgovernmenttothestate governmentsistheonlyremedythatmakessense. Becauseifallweweresayingisthatthefederalgovernmenthastodisposeoftheselands,that wouldbeunpalatableateverylevel,frankly,hesays. Itwouldntworkforanyone,totakeallofthesepubliclandsandput[them]intoprivate holdings,heargues.Youdlosecontrol,totally.AndIdontthinkanybodywantsthat.Soits nottheobjective,andinmydiscussionsoverthelasttwoyearsIhaveheardnoonesaythat thatswhatweretryingtodoexcepttheopponents.Theysaythatswhatthisisallabout. EarlierstatesinjuredbyCongress
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Utah,NevadaandtheothermodernWesternstatesarenotthefirsttoconfrontafaith breakingU.S.Congress.Inthelate1820sandintothe1850s,statesintheWestofthatday Missouri,Illinoisandothersexperiencedthesamekindofcongressionalrecalcitrance.And yet,eventually,Congresswasbroughttohonoritscommitments. RepeatedlythosestatescomplainedtoCongressthattheycouldnoteducatetheirchildren, provideeconomicopportunitiesfortheircitizens,andconducttheiraffairsassovereignstates becausethefederalgovernment,fordecades,hadfailedtodisposeofthepubliclands,as promised. [T]hesystemofdisposingofthepubliclandsoftheUnitedStatesnowpursued,wrote MissourislegislaturetotheU.S.CongressinDecember1828,ishighlyinjurioustothe Statesinwhichthoselandslie,andtonone,perhaps,moresothantotheStateofMissouri. Theletternotedthatseveralobjectionstothepresentsystemhaveheretoforebeenurgedto theconsiderationofCongress,andthatthoseobjectionshavenotbeenanswered satisfactorily. Aperseveranceinthepresentsystemmanifestlyappears,saidthestategeneralassembly,to beequivalenttoadeclarationonthepartofCongressthatitwillnotsellordisposeofnine tenthsofthepubliclandsinthisState [T]hisgeneralassemblycannotrefrainfromdeclaringthatitviewssuch refusalasaninfringementofthecompactbetweentheUnitedStatesandthis StateandthattheStateofMissourinevercouldhavebeenbroughtto consentnottotaxthelandsoftheUnitedStateswhilstunsoldandnottotax thelandssolduntilfiveyears thereafter,ifithadbeenunderstoodbythecontractingpartiesthatasystem wastobepursuedwhichwouldpreventninetenthsofthoselandsfromever becomingthepropertyofpersonsinwhosehandstheymightbetaxed. Illinois,too,recognizedCongresssbadfaithinpricinglandsohighthatitnecessarily remainedinfederalhands: [T]heStateofIllinoisalonecontainsaboutfortymillionsofacresofland,and anamountverylittleexceedingoneandahalfmillionofacreshaveasyet beendisposedofatthepublicsales.Ifthepresentpriceatwhichitisrequired bylawtobesoldshallnotbereduced,itwillbehundredsofyearsbeforethe soilwillhavepassedoutofthecontrolofthegeneralgovernment,andbe subjecttothelawsandjurisdictionofthisState If,aswouldseemtobemostclearlyinferable,thehighpriceatwhichthose landsarerequiredtobedisposedofshouldpreventtheirsale,itmaybea subjectofseriousinquirywhetheritdoesnotoperateasavirtualinfractionof thecompactinrelationtothenottaxingthoselandsbeforetheyaresold,and foracertaintermoftimeafterwards. Fromthetermsofthatcompact,anduponthesuppositionthatthesameis obligatoryuponthepartiestoit,anyactonthepartofthegovernmentto delaythesalesofthelandinareasonableperiod,whetheraccomplishedbya positiverefusaltosell,orbydemandingforitasumgreatlybeyonditsvalue, bywhichthesaleswouldbedefeated,inagreatmeasure,ifnotwhollyso, woulddoubtlessbeaninfractionofthecompactitself. Eventually,however,theWesternStatesofthatearliererabandedtogetherandsucceeded. Thefederalgovernmentwascompelledtofollowthroughanddisposeofthepubliclandsitstill heldinthosestates. StevenMilleristhemanagingeditorofNevadaJournal,apublicationoftheNevadaPolicy ResearchInstitute.Formoreindepthreporting,visithttp://nevadajournal.com/and http://npri.org/.

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Best Community P. Regeski
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GreatresearchSteve.Youreallyopenedmyeyes.Thankyou!
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Resolute!

25 days ago

iShrug

BravoSteve!LovedyouattheClarkCountyLibraryduringMobweeklectureseries. Hey,goodinformation.Ihavenotreadtheentirearticleyet,butlookslikeitmay benefitmeinsomethingIamworkingon.

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a month ago

r
Nevada Journal in-depth reporting in the public interest 19932013 A publication of the Nevada Policy Research Institute

Thankyouforpublishingthispiece.It'sgoingtotakemeaweektodigestit,becauseI wanttounderstandit.Therelationshipbetweenthestates,andthefederal governmentthatownsourlandissomethingI'vealwayswonderedabout...and wonderedwhyweneverhearaboutsomethingbeingdonetosettletheissue.

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Managing Editor Steven Miller Reporter/Researcher Karen Gray Online Editor Eric Davis

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