"Most of the land fit for cultivation, south of latitude 39°, and west of the valley of the Sacramento and San Joaquin, is claimed under what purport to be grants from the Mexican government.
"On most of these grants, the minerals and metals are reserved to the government: conditions were coupled with many of them which have not been complied with. In others, the boundaries described embrace two or three times as much land as the grant conveys.
"The Mexican law required all grants made by the provincial government, with few exceptions, to be confirmed by the supreme government. The great distance which separated them, and the unfrequent or difficult means of communication, made a compliance with the law so expensive and tardy that it came to be almost disregarded.
"There were other causes which led to this neglect.
"Previous to the treaty with Mexico and the immigration of American citizens to that country, land was not regarded as of much value, except for grazing purposes. There was room enough for all. Therefore, the claimants or proprietors did not molest one another, or inquire into the validity of titles.
"These extensive grants are described by natural boundaries, such as mountains, bays, and promontories, which, in many instances, might allow of a variation of several miles in the establishment of a corner with chain and compass.
"By the treaty of Guadalupe Hidalgo, the United States purchased all the rights and interests of Mexico to and in California. This purchase not only embraced all the lands which had not been granted by Mexico, but all the reserved minerals and metals, and also reversionary rights which might accrue to Mexico from a want of compliance on the part of the grantees with the conditions of their grants, or a want of perfection in the grants.
"It will be perceived that this is a subject of very great importance, not only to the people of California, but to the United States, and calls for prompt and efficient action on the part of the Government. It is believed that the appointment of competent commissioners, fully empowered to investigate these titles, in a spirit of kindness towards the claimants, with power to confirm such titles as justice may seem to demand, or with instructions to report their proceedings and awards to Congress, for confirmation or rejection, will be the best and perhaps the only satisfactory mode of adjusting this complex and difficult question."
He also makes the following observations and recommendations concerning the extent and value of the land, to which the title of the government is unquestionable, and the best mode of improving it.
"The lands in the northern part of the Territory, above the 39°, have not been explored or granted. They are supposed to embrace an area of about twenty millions of acres, a large portion of which is doubtless valuable for its timber and soil.