In 1953, the state legislature of New Mexico passed a bill authorizing the state park commission to acquire the Fort Union Military Reservation and right-of-way access through eminent domain proceedings. Governor Edwin Mechem signed the bill with the intent that New Mexico would transfer the fort to the federal government for the creation of a national monument. Instead, the Union Land and Grazing Company agreed to transfer the lands directly to the federal government upon receipt of a $20,000 donation for "damages.” To this end, the non-profit organization Fort Union, Inc. was formed to fundraise and acquire Fort Union. Congress then passed a bill authorizing the national monument which was signed by President Dwight D. Eisenhower on June 28, 1954. The following year, Fort Union, Inc. gave the company two checks for $10,000 and the lands were transferred with the controversial reversionary clause. On April 4, 1956, the National Park Service established Fort Union National Monument.