The passage of the law was largely due to the efforts of Samuel R. Thurston, the Oregon territorial delegate to Congress.
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Marcus Neff hired an attorney, John H. Mitchell, to help him with paperwork and other legal matters incidental to his efforts to obtain a land grant under the Donation Law of Oregon, an act of the United States Congress enacted on September 27, 1850 (expired December 1, 1855) which provided an incentive for the development of land in the territories of the American West by conveying parcels of land to be used for further development.
According to Oregon Geographic Names, the community was named after local pioneer Peter Scholl, who took up a donation land claim in 1847.