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Show Utah Land Board's Bookkeeping Leaves Something To Be Desired Assets of state of Utah permanent perm-anent land funds have a real value of ai least million less than the amount carried on stale records, it was noted in a research report released today by Utah Foundation, the non-prolil private tax sludy agency. The total principal investment of the trust funds by Ihe State Land Eoard amounted to $9,135,-881 $9,135,-881 as of June 30, 1918, according to their biennial report. However, How-ever, this figure includes $1,01'J,-83(5 $1,01'J,-83(5 ' representing determined losses and $751,171 of outstanding outstand-ing investments in farms acquired ac-quired through mortgage foreclosures fore-closures and reservoir warrants. Tine actual recovery value of the property securing these farm loans is less than one-fourth ol the book value. The principal investment of the trust funds earning income as of June 30, 1918 was $7,511,-4H. $7,511,-4H. A spot check of 21 state farms by Utah Foundation analysts, which are listed as assets of the permanent trust funds and represent rep-resent investments of $15,000 shows: Tvelve farm accounts have no value. On six of the farms the water rights have been sold, and no revenue has been realized since 1939 On two farms the water is leased at an amount to cover the water assessment as-sessment paid by the state. Three other farms lease at $25 i year, and one other farm leases at $150 a year. The report calls attention to the fact that by 193G, the State Land Boaid had invested $1,776,-721 $1,776,-721 in three reservoir projects (Piute Reservoir and Irrigation Company, Central Utah Water Company, and the Carbon Water Company). All three of these projects turned out to be bad investments. By legislative action, ac-tion, the assets of the companies were acquired in satisfaction of the debts and then resold to the original owners of the irrigation companies for the sum of $1 each. Foundation analysts indicate that there was substantial evidence evi-dence that these properties had a value exceeding the $3 paid to the State. During 1935 the Cen-tral Cen-tral Utah Water and Carbon Companies paid $1,200 and $1,000 respectively for the use of water from the reservoir for the year. Politics With Land Board The organization of the State Land Board has periodically undergone un-dergone a revision according to the views of the political party in power. Since the creation of rh,- original State Board of Land Commissioners, the title has been changed to the State Land Board, and the administrative personnel person-nel comprising the board has been reorganized eight different times. The Utah Foundation study emphasizes the desirability of benefieiaiy agencies participating partici-pating in the management of trust funds. At the present time, the Land Board consists of the three commissioners com-missioners of the Department of Finance, so that beneficiary agencies are not directly represented repre-sented in management of the trusts. The Enabling Acts of the Congress of the United States granted to Utah over million acres of land within the State for the establishment and support sup-port of public schools, a university, univer-sity, an agricultural eol'egij water storage reservoirs, and other public institutions. Since statehood, the State Land Board has sold approximately approxi-mately 3,600,000 acres of state land granted under the Enabling Act. There are an estimated 2,-500,000 2,-500,000 acres yet to be sold. During the 1948 fiscal year, the land grant trusts produced $631,461 of revenue. Of this amount, $239,953 was income from investments in bonds, loans, and contracts of sale; $106,159 from grazing leases: $237,305 from mineral leases and royalties; and $48,145 from interest in-terest loans. Income from mineral leases and royalties is nearly 12 times the 1940 figure of $18,626. This jump in revenue from mineral land is due to the increased activity in the development of Utah's oil reserves, the report notes. |