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That provision would meet that suggestion of the Secretary.
Then he says:

It is perhaps not improper to observe that, although the whole burden of financing the project is imposed upon the Secretary of the Treasury under the bill, all financial matters with respect to the irrigation-district bonds, which are the sole security of the United States for its investment, are to be determined, not by the Secretary of the Treasury, but by the Secretary of the Interior.

Now, it seems to me that the answer to this criticism is that he ought to have confidence in the Interior Department. They have a department which is familiar with the work, and the law provides that the Secretary of the Interior shall accept the bonds of these districts to an amount sufficient to cover the cost of it when he shall have determined that their irrigation scheme is feasible and that the bonds offered are not disproportionate to the security which will exist when the canal is completed. Now, it is 99 per cent an engineering proposition. If it is feasible any man can estimate the rest of it, and the Interior Department already has the necessary machinery. In order to transfer this work to the Treasury Department, he would have to organize a new agency for the very purpose of making this investigation, making this determination, and it seems to me that as between two coordinate branches of the Government there ought to be some cooperation existing.

Mr. SINNOTT. According to his theory, the Secretary of the Treasury should supervise all the other departments of the Government.

Mr. HAYDEN. The Secretary of the Treasury has a very efficient agency right at hand in the Federal Farm Loan Board. [Laughter.]

Mr. SWING. I can not entirely agree with you. Then he proceeds:

It is also worthy of note that section 8 of the bill provides that the surplus proceeds of sale of the certificates are to be applied to the payment of the interest on the irrigation-district bonds; that is to say, the proceeds of sale of obligations of the United States are to be used in part to pay the indebtedness of the irrigation district.

Now, he didn't quite catch the drift of that, because although section 8 provides that any surplus shall be applied by the Secretary upon the payment of district bonds held by him, section 3 provides that the money received by the Treasurer from the districts, or on account of their bonds, shall immediately be applied by him upon the payment of the United States Government certificates. What we are trying to do is when the project is completed to simply trim down the outstanding indebtedness, both of the Government, and also ours, which is the foundation for it. But I am willing, and I take the suggestion to pull the cart up on the horse, instead of backing the horse into the cart. They get to the same place in the end. I propose this amendment:

Such surplus shall be credited as payment on the principal and interest of the certificates of indebtedness, bonds, and notes of the United States issued hereunder, and a similar credit applied on the district's bonds held by the Secretary of the Treasury on account of such project.

You arrive at the same point, but if it is preferable to have it worded the other way, I see no reason why it should not be done.

Now, in his last objection he says he sees that there is no limit whatever to the amount of irrigation-district bonds which the Secretary of the Interior is directed to accept. Now, there is this limit: It is but one project; a survey has been made, and as near as engineers can

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make estimates, they have made the estimates; the districts have no uncontrolled authority to vote an unlimited amount of bonds; the Secretary of the Interior will accept only those bonds which he finds are backed by security and by a feasible project, and which when taken together will equal the cost of the canal. It seems to me that there is a limit, because it is limited to the one project.

Mr. HAYDEN. Why not fix a limit of $30,000,000 or $35,000,000 and be done with it?

Mr. Swing. I have no objection if that will answer his argument. Make it $35,000,000.

Mr. Rose. Make it “not to exceed.”

Mr. Swing. Not to exceed $35,000,000. I think that the Secretary of the Treasury—the principal thing that I fear from his report is the fact that he has made an adverse report. The reasons he gives, I think, are reasons that can be met by amending the bill, but I think that hurts its prospects, because somebody will say, “ Secretary Glass reported against your bill,” but if they will consider the report and if these amendments are made, I think to a very large extent the objections are met.

Now, I want to refer to the amendments suggested by Secretary Lane. I have read them over very carefully and compared them with our bill and the purpose we intended to carry out, and I find each and every one of them very helpful and beneficial, and our entire committee concur in each and every one of them and join in the request that they be made. I think they strengthen the bill and make it a better bill, and we concur heartily with each and every one of them.

I have received this resolution of the board of directors of the Imperial irrigation district indorsing this bill and I will ask that it be made a part of my statement :

Resolved, That we, the board of directors of the Imperial irrigation district, indorse and approve H. R. 6044, introduced in the House of Representatives June 17, 1919, by the Hon. William Kettner, and hereby request and urge the committee now in Washington, D, C., to use every honorable means to secure the passage of the said bill: Be it further

Resolved, That the secretary be instructed to forward a copy of the above resolution to each member of the committee now in Washington, D. C.

As secretary of the board of directors of Imperial irrigation district, I hereby certify that the foregoing is a full, true, and correct copy of a resolution adopted by said board and appearing on the minutes of July 8, 1919. [SEAL.]

F. H. MCIVER, Secretary. Mr. HUDSPETH. You state you are going to issue not to exceed $35,000,000 of bonds. What would be the cash value of your lands upon which those bonds would be issued ?

Mr. Swing. I believe I am warranted in saying that the present cash value of the irrigation lands alone, which are only 400,000 acres,

Mr. HUDSPETH (interposing). I mean irrigated to-day; not what you propose to irrigate.

Mr. Swing. No; what is there now-is conservatively worth $100,000,000. I think that value itself would be increased when the canal is completed.

Mr. Smith of Idaho. Your total production last year was $40,000,000?

Mr. Swing. What was shipped out of the valley has been estimated at $40,000,000 for last year.

Mr. HUDSPETH. You mean the products of that valley ?

Mr. Swing. That was the statement prepared by the commercial agent of the Southern Pacific and furnished me as I was leaving.

Mr. HUDSPETH. Of this proposed district ?

Mr. SWING. Of the present Imperial irrigation district. We think we have the assets, but it is hard to realize the cash on them.

Mr. SINNOTT. Are you familiar with what is known as the Smith bill, introduced by Mr. Addison T. Smith. It is frequently referred to as the Chamberlain-Smith bill. Would that bill meet your situation?

Mr. Swing. I have not read the bill introduced by Mr. Smith this year very carefully, Mr. Sinnott; it is somewhat different from the bill as heretofore introduced.

Mr. SMITH of Idaho. As a matter of fact, whoever drew this bill must have read it carefully, because this is almost a copy of it.

Mr. Swing. The one you introduced in the last session of Congress?

Mr. Smith of Idaho. Yes.

Mr. Swing. Yes; the provisions of that bill I am familiar with and favor.

Mr. SMITH of Idaho. Now, you propose then to amend section 3, so as to provide that the amount shall not exceed in the aggregate $35,000,000—not to exceed?

Mr. Świng. Yes; I think that will be a good amendment in view of the Secretary's criticism.

Now, there are two other members of the delegation who would like to have 10 minutes apiece. I think they could be disposed of in 15 minutes apiece anyway, if you want to hear them to-night. That will conclude the statements on behalf of our delegation.

The CHAIRMAN. Who will you have first?
Mr. SWING. We would like to have Mr. Brooks.

The CHAIRMAN. We will be glad to hear you, Mr. Brooks. Give your name and residence and occupation.

STATEMENT OF MR. W. H. BROOKS, EL CENTRO, CALIF.

Mr. BROOKS. Mr. Chairman and members of the committee, my name is W. H. Brooks, pioneer rancher of Imperial Valley, Calif., post-office address, El Centro, Calif.

Mr. SWING. You are chairman of the board of supervisors of Imperial County? Mr. BROOKS. Also chairman of the board of supervisors; yes. The CHAIRMAN. How long have you lived in Imperial Valley ? Mr. BROOKS. I have lived there, I think, about 16 years. The CHAIRMAN. Have you been irrigating land during this time? Mr. BROOKS. Yes; my occupation has been ranching. The CHAIRMAN. And that includes raising crops by irrigation? Mr. BROOKS. Yes, sir.

Mr. Swing. You have been a rancher all the time you have been there?

Mr. BROOKS. I have been ranching there all the time and we do no ranching there except by irrigation.

The CHAIRMAN. Proceed with your statement.

Mr. BROOKS. Mr. Chairman and gentlemen of the committee, when I went to Imperial Valley in 1902, it was a desert. We had to go about 30 miles into Mexico to get cottonwood poles to make a framework for shade for ourselves and our horses. We had to go 15 miles to get brush to put on this frame work.

There was no railroad there at that time. Now the railroad company is selling $50,000 of tickets per month and large per cent of the travel goes out by auto.

Last year we shipped 18,000 cars of produce from the valley. We shipped 600,000 pounds of turkeys last year. Think of it gentlemen, about 40,000 turkeys being shipped annually from a place where a few years before there was nothing.

We have a man with us, I believe, that hauled the first dairy cow into the valley.

We last year produced 7,000,000 pounds of butter and have 20,000 dairy cows and 40,000 beef steers on feed.

Our assessed county valuation, $35,859,028, or about one-third of its market value.

Very often the land produces more than its value in one year. There have been cases where the landlord has offered a deed to the land for the crop that was on the land, and there have been many cases where the tenant has lost his crop for lack of water when there was a good supply in the river.

This condition is caused by the unsettled condition of our water supply.

We not only have the unsettled condition, but we have the unsani. tary condition to contend with.

Who'wants to drink from a stream when he knows that there are 7,000 Chinamen, Japs, and Mexicans camped on that stream a few miles above in Mexico? And we have nothing to say as to what they shall do to or with this water in Mexico. Shall we let this go on and on, and let these Japs and Chinamen take in more land and use more water until we are not only prevented from developing our new land but are cut short on the land we now have water for?

We are using our hard-earned money to build weirs, enlarge canals, and build structures to get more water. This water goes into Mexico and those people take what they want to use or waste, and we get what is left. We now have nearly 60,000 people depending absolutely on the water that makes this circuit through Mexico. If we can build an all-American canal it will be but a short time and we will have several times 60,000 free, prosperous Americans building homes and schoolhouses on land watered by water that has never touched a foreign soil and water that 7,000 Japs and Chinese have not used to bathe in.

If we do not get the all-American canal some day there will be a serious water shortage. Then, some red-blooded, free Americans wil: ask themselves: “ Why should our crops burn up, and our stock perish, when, just across an imaginary line, these Jap, Mexican, and Chinese tenants of American millionaires are getting water that we have turned into our canal?” Will they abandon their homes and walk out or will they take their guns, cross this imaginary line, and undertake to defend that which they have paid for and which they believe to be rightly theirs and which is necessary to their actual life?

Now, gentlemen, as a pioneer rancher—and I, like many of my neighbors, have every dollar we possess invested in the imos Valley—I would ask you to think seriously of this matter, and I know you will. We are beggars but not paupers. All we want is a chance to help ourselves. {. have proved that we can produce the stuff. Now we want help so that we can make this water system permanent and not have to throw our earnings away on the temporary work or abandon all that we have done in the past 18 years. Now, I have here a report—a crop report. This report was taken from the Southern Pacific commercial agent at El Centro. He kept account of the amount that was shipped out, the produce that was shipped out in carload lots. Now, this doesn't take in the produce from Coachello or what was consumed in the valley; it was just his report from shipments; and I will file this report with you. I will just sketch over a few of the items that are of note here. Now, of alfalfa we have something over 100,000 acres, and 1,884 carloads were shipped out last year. In cotton there were 85,000 bales shipped out, amounting to $11,900,000. Cotton seed amounted to $2,305,000. Millo maize amounted to $3,025,000. Our cantaloupe crop amounted to $4,974,750. Mr. TAYLOR. Where do you ship this produce to, mostly 7 Mr. BRooks. It goes all over the United States. You are eating our cantaloupes right here in Washington and have been for the last month. We are shipping them now. This year we shipped something like—I believe Mr. Shaw has the exact figures. Mr. SHAw. The last report showed about 7,000 carloads of cantaloupes, valued at $9,000,000. That was the heaviest crop we shipped. Mr. TAYLOR. Did you use Rocky Ford seed? [Laughter.] Mr. BRooks. That is right. Now I will give you a few of the summaries. Forage and grain crops and cotton amounted to 6,517 cars, valued at $19,781,113. The vegetables amounted to 6.251 cars, valued at $5,973,812. The live stock amounted to 3,943 cars, valued at $6,335,000. The poultry amounted to 60 cars, valued at $380,000. The total output, as we have it, is $37,557,465. Now I will file this with you, gentlemen. (The paper referred to follows:)

Crop production, I mperial Valley, Calif., 1918.

Shipped out. Estimated Value. acreage. Quantity. Cars. For AGE AND GRAIN CROPS AND COTTON.

Alfalfa 100,386 |........................ 1,884 $339,120 Barley - - 69,761 |.............. - - 790 1,568, 150 Cotton. . . . . . . . - - - - - - - - - - - - - - - 85,000 bales - - 1,133 11,900,000 Cotton seed. . . . . . - - - - - - - - - - - - - - - - 42 500 tons. . . . -- 8 2,305,000 Cottonseed hulls................. . . . . . . . . . . . . . . . . . . . . . . 1,030 tons. . . . . . . . . . . . . 103 10,300 Cottonseed cake................ ------------|------...... 3,060 tons. . . . . . . . . . . . . 153 171,360 Cottonseed oil.... - - - - - - - - - - - - - - - - 1,170 tons.. - - 139 158,043 Millo Maize-------------------------------. 125,673 |......... --------------- 1,210 3,025,000 Wheat---............................------|-----------. 4,110 tons. . . . . . . . . . . . . 137 304,140 Total.-------------------------------------------------------------------- 6,517 | 19,781,113 z- =

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