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should be made from the very start for storage, and that the charge for storage should be apportioned according to the benefits to be derived.

I went to work to try to amend the bill accordingly, so as to provide for what I thought the majority of the committee wanted done, but the more I studied it the harder it was to do, because of the way in which the bill was drawn.

It seemed to me that the bill ought to be revamped and start out and say what it means to begin with. For instance, the bill as it was introduced first provides for the sale of public land as though that was the principal object. Any member who saw the bill for the first time on the floor of the House would think this was a public land measure. But when he reads a little further along and finds out that as a matter of fact it is not primarily a public land measure, but principally concerns the Imperial Irrigation District, he would suspect we were seeking to deceive him.

I therefore decided that it would be better to set out in the beginning everything that we wanted to accomplish by a statement. in the first section of the bill and then later elaborate the plan. I believe that the quickest way to get my ideas before the coinmittee will be to read to you the bill that I have prepared, which you will find in the back of the file, H. R. 9421.

I have no pride of authorship about this measure. I do not expect this bill of mine to be reported by this committee. I drafted it, and when I introduced it I labeled it "By request," so that we might have something to work on, which, so far as I have been able to judge, will meet with the general approval of the committee. In other words, this is merely a working draft which is subject to amendment. We frequently, after we have perfected a bill, have it reintroduced and ask for a new report from the Secretary of the Interior or strike out all after the enacting clause. In any event the bill which is finally reported ought to be known as Mr. Kettner's measure, because it is primarily for the benefit of lands in his district.

Mr. SMITH, of Idaho. You are changing the title to "Colorado River Reclamation Project?"

Mr. HAYDEN. As I go along you will see I am trying to take care of all new lands that can be hereafter served with water from the Laguna Dam. I thought that was the better way to label the bill than to simply refer to the Coachella and Imperial Valley irrigation project.

I shall read the bill.

[H. R. 9421, Sixty-sixth Congress, first session.]

A BILL To authorize the construction of the lower Colorado River reclamation project, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Interior is hereby authorized and empowered, upon compliance with the several requirements of this act, and in conformity with its provisions, to construct or cause the construction of canals and other necessary works to connect the present irrigation system of the Imperial irrigation district, in Imperial County, California, with the diversion dam of the Yuma reclamation project, known as the Laguna Dam, and for the reclamation of all lands, public or private, which in his judgment are susceptible of reclamation by the diversion of water from the Colorado

River by said dam; to construct or cause to be constructed such storage reservoirs and other irrigation works as in his judgment are necessary to provide an adequate supply of water for the successful irrigation of such lands and on behalf of the United States to enter into such contracts and agreements, not inconsistent with the provisions of this act, with the Imperial irrigation district and other legally organized irrigation districts, water users' associations, or corporations, and individual water users as may be necessary or expedient in carrying out the provisions of this act, insuring compliance therewith and securing the repayment of the total costs of the said canals, reservoirs, and works, in so far as such costs may be guaranteed by the United States: Provided, That the Secretary of the Interior is hereby authorized to cooperate with the State land settlement board and other public authorities of the State of California and with the soldier settlement board and other public authorities of the State of Arizona in the reclamation and settlement of lands affected by the provisions of this act.

SEC. 2. That in carrying out the provisions of this act the Secretary of the Interior shall find and determine the just and equitable proportion, or amount, of the cost of any such canais, reservoirs, and works to be borne by or made a charge against any such irrigation district, State land settlement board, soldier settlement board, water users' association, corporation, or individual water user, with due regard to the actual and comparative benefits to be derived by each thereof from the construction of such canals, reservoirs, or works, and no irrigation district, water users' association, corporation, or individual water user shall receive any of the benefits of this act nor secure the delivery of any water from the said canals, reservoirs, or works without first accepting the finding of the Secretary of the Interior as herein provided and paying or entering into an agreement satisfactory to the said Secretary to pay all costs assessed by the said Secretary, and otherwise fully complying with the provisions of this act.

SEC. 3. That whenever any irrigation district, water users' association, or corporation, legally organized for the purpose of irrigating lands which, in the judgment of the Secretary of the Interior, are susceptible of successful irrigation from the canals and works mentioned in this act, shall have duly voted and issued bonds, running for a period not exceeding forty years and bearing interest at a rate to be fixed by the Secretary of the Interior, not exceeding five per centum per annum, in a sum which will cover the just and equitable proportion or amount, as fixed and determined by the Secretary of the Interior, chargeable to such irrigation district, water users' association or corporation, for the construction of such canals, reservoirs, or other works, or of any part thereof approved for construction by the said Secretary, and when the legality and validity of such bonds shall have been duly confirmed by the courts and their sufficiency for the purpose for which issued, taking into consideration the security which will exist upon the completion of said canals and works, shall have been ascertained by the Secretary of the Interior, he is authorized and empowered to accept such bonds and deposit the same with the Secretary of the Treasury, who shall collect the principal and interest thereof and apply the same to the payment of the principal and interest of the certificates of indebtedness, notes, or bonds of the United States authorized to be issued under the terms of this act.

SEC. 4. That upon receipt by the Secretary of the Treasury of the bonds of any such irrigation district, water users' association, or corporation, or the bonds of the State of California or the State of Arizona, approved by the Secretary of the Interior, the Secretary of the Treasury shall issue certificates of indebtedness, notes, or bonds of the United States, in such form as he may prescribe and in amount equal to the face value of the bonds so deposited with him. Said certificates, notes, or bonds of the United States shall be in such denominations, bear such rate of interest, not to exceed five per centum per annum, and run for such period as the Secretary of the Treasury may prescribe: Provided, That if the same shall fall due prior to the due date of the bonds or any of them so deposited with him, he may, in his discretion, issue other certificates of indebtedness, notes, or bonds of the United States, not exceeding the amount, and maturing not to exceed sixty days after due date of the unpaid bonds so deposited with him.

SEC. 5. That from time to time, as the carrying out of the purposes of this act may require, the Secretary of the Treasury, upon the request of the Secretary of the Interior, shall dispose of such certificates of indebtedness, notes or bonds of the United States, under such rules and regulations as the Secretary

of the Treasury may prescribe, and shall deposit the proceeds thereof in the Treasury in a special fund to be known as the lower Colorado River project fund.

SEC. 6. That upon default of any installment of the principal or interest of any bond deposited with the Secretary of the Treasury in accordance with the terms of this act the said Secretary may declare the entire amount of such bond issue in default and thereupon he shall call upon the State, under the authority of which such bonds were issued, through any of its authorized agencies or officers, to levy and enforce the payment of any taxes, forced contributions, or special assessments necessary to pay the sums due to the United States, and upon failure of the State authorities so to do the Secretary of the Treasury shall cause suit to be instituted in the name of the United States, and take such legal action as may be necessary to enforce the assessment and collection of such taxes for the payment of the amount of principal and interest in default or the entire amount of such bond issue, principal and interest. It shall be the duty of the Attorney General to prosecute such suit, and any United States district court for the district in which the lands affected by this act, or any part thereof, are situated, is hereby vested with jurisdiction to enforce the provisions of this act.

SEC. 7. That any unentered public lands of the United States found by the Secretary of the Interior to be susceptible of successful irrigation from the canals and works the construction of which is provided for by this act, may be offered for sale to citizens of the United States, under such rules and regulations as the said Secretary may prescribe, at the fair value thereof, which shall be fixed at not less than $10 per acre, plus $1.25 per acre to be paid to the local United States Land Office in compliance with the requirements of the desertland laws. The land so sold shall be paid for in cash, or on deferred payments, at the option of the purchaser, in installments of one-fifth cash and one-fifth annually until fully paid, with interest on the deferred payments at the rate of 6 per centum per annum from date of sale, patent to issue upon full payment of the purchase price and compliance with any other requirements of this act. Said land shall be subject to the usual charges of the irrigation district within which such land may lie, or of any other agency serving such land with water: Provided, That not more than one hundred and sixty acres of land shall be sold to any one purchaser under the provisions of this act: Provided further, That the Secretary of the Interior, in his discretion, may offer such public lands to be sold and reclaimed in cooperation with the California State Land Settlement Board or the Arizona Soldier Settlement Board, or he may use all or any part of such lands in connection with any soldier-settlement legislation that may be enacted by Congress.

SEC. 8. That any person having a valid and subsisting entry upon public lands which, in the judgment of the Secretary of the Interior, should become subject to the provisions of this act, and not now possessing an adequate and valid water right, shall be required to make payment of $10 per acre therefor, on like terms, as provided for unentered public lands of the United States, and such unpatented lands shall be subject to the usual charges of the irrigation district within which they may lie or of any other agency serving such lands with water: Provided, That all of such entries in excess of one hundred and sixty acres shall be reduced in area to one hundred and sixty acres, and any entryman who shall fail to dispose of the excess of his entry above one hundred and sixty acres, in the manner provided by law, within one year after public notice issued by the Secretary of the Interior that the lands embraced within his entry are subject to the provisions of this act, shall render his entry subject to cancellation as to the excess above one hundred and sixty acres.

SEC. 9. That the Secretary of the Interior shall fix such charges against the entered or unentered public lands referred to in this act, in addition to the price to be paid to the United States as the fair value thereof, as he may deem to be the just and equitable proportion or amount to be borne by such lands of the cost of the canals and works mentioned in this act, and shall, in advance of the patenting of such lands and prior to permitting them to be served with water from said canals and works, make such contracts as he may deem necessary to insure the payment of such charges.

SEC. 10. That all moneys derived from the sale of the entered or unentered public lands heretofore mentioned, in excess of the United States Land Office charge of $1.25 per acre, shall be deposited in the Treasury to the credit of the lower Colorado River project fund, and devoted exclusively to the development and construction of a reservoir or reservoirs to provide by storage an additional

water supply for the irrigation of the lands affected by the provisions of this act.

SEC. 11. That the proportion or amount of the cost of the canals and works, the construction of which are authorized by this act to be borne by any irrigation district, State land-settlement board, soldier settlement board, water users' association, corporation, or individual, as fixed and determined by the Secretary of the Interior, may be paid in cash, and when so paid shall be deposited in the Treasury to the credit of the lower Colorado River project fund, and may be used by the Secretary of the Interior in the same manner as the receipts from the sale of certificates of indebtedness, notes, or bonds of the United States as provided in this act.

SEC. 12. That any and all moneys that may hereafter be in the Treasury of the United States to the credit of the lower Colorado River project fund are hereby reserved, set aside and authorized to be appropriated to carry out the objects and purposes of this act.

SEC. 13. That the certificates of indebtedness, notes, or bonds of the United States by this act authorized shall be exempt from taxes or duties of the United States as well as from taxation in any form by or under State, municipal, or local authority, and a sum not exceeding one-tenth of 1 per centum of the amount of the certificate of indebtedness, notes, or bonds issued under the provisions of this act is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, to pay the expense of preparing, advertising, and issuing such certificates of indebtedness, notes, or bonds: Provided, That the United States shall be reimbursed for such expenditure out of the proceeds of the sale of such certificates of indebtedness, notes, or bonds.

SEC. 14. That the public lands of the United States declared by the Secretary of the Interior to be susceptible of reclamation under the provision of the act, and included within any irrigation district or any other similar organization the boundaries and bonds of which are accepted by the said Secretary under the terms of this act, shall be subject to the provisions of the act entitled "An act to promote the reclamation of arid lands," approved August 11, 1916 (Thirty-ninth Statutes at Large, page 506), notwithstanding the district may contain more than a majority acreage of such public lands.

SEC. 15. That should a surplus remain in the lower Colorado River project fund, of the money received from the sale of the certificates of indebtedness, notes, or bonds of the United States, as authorized by this act, after a declaration by the Secretary of the Interior of the completion of construction of the canals and works herein authorized to be constructed such surplus shall be credited as payment on the principal and of the certificates of indebtedness, notes, or bonds of the United States issued hereunder and a similar credit applied on the bonds of any irrigation district, water users' association, or corporation held by the Secretary of the Treasury on account of said project. SEC. 16. That should a surplus remain in the lower Colorado River project funds, of the moneys received from the sale of public lands, as authorized by this act, after a declaration by the Secretary of the Interior of the completion of construction of the reservoir or reservoirs necessary for the storage of water for the irrigation of the lands affected by the provisions of this act, such surplus may be utilized by the Secretary of the Interior in making further investigations respecting the problems of water storage and flood control on the Colorado River.

SEC. 17. No right to the use of water for land in private ownership shall be sold under authority of this act for a tract exceeding one hundred and sixty acres to any one landowner nor shall any water be delivered to more than one hundred and sixty acres in any one township unless, in the judgment of the Secretary of the Interior, such lands in private ownership now possess an adequate and valid water right.

SEC. 18. That in the sale of public lands affected by this act preference shall be given for sixty days to persons honorably discharged from the military or naval forces of the United States: Provided, That whenever practicable preference shall be given to honorably discharged soldiers, sailors, and marines when labor is employed on any work done under authority of this act.

SEC. 19. That the Secretary of the Interior is hereby authorized to perform any and all acts and to make such rules and regulation as may be necessary and proper for the purpose of carrying the provisions of this act into full force and effect.

SEC. 20. That nothing in this act contained shall be construed as in any way amending or affecting the act to provide for an auxiliary reclamation

project in connection with the Yuma project, Arizona, approved January 25, 1917, or as modifying the terms of the contract of October 23, 1918, between the United States and the Imperial irrigation district.

Mr. HAYDEN. You will note that on page 2, line 14, to comply with Dr. Elwood Mead's idea, I have inserted this proviso:

That the Secretary of the Interior is hereby authorized to cooperate with the State land-settlement board and other public authorities of the State of California and with the soldier settlement board and other public authorities of the State of Arizona in the reclamation and settlement of lands affected by the provisions of this act.

Dr. Mead states that the Legislature of the State of California has authorized a bond issue of $10,000,000, to be ratified by the people of the State, and if that is the case, when such bonds are voted, the Secretary of the Interior can cooperate with the State land-settlement board.

Mr. BARBOUR. That is not solely for the purpose of cooperating with the Government on this soldier settlement.

Mr. HAYDEN. In Arizona the State legislature passed a soldiersettlement act, which permits cooperation with the United States, and authorized the State authorities to levy taxes to raise money to cooperate with the United States.

Hon. Mulford Winsor, of Yuma, Ariz., who appeared before this committee, stated-and I will confirm that by Mr. Davis-that there is a tract of land between the Gila and Colorado Rivers which can be irrigated from the Arizona end of the Laguna Dam. If that land could be utilized as a soldier-settlement colony, I would like to see it done.

The CHAIRMAN. What about that soldier-settlement board?

Mr. HAYDEN. A soldier-settlement board has been created by the laws of the State of Arizona. I shall insert in the record the act of the legislature in establishing this board. (See Appendix, Exhibit A.)

The CHAIRMAN. That was recently passed on account of this war? Mr. HAYDEN. Yes; passed by the last session of the State legisla.ture.

Mr. WELLING. This relates to the agency that Arizona has set up to cooperate with the Federal Government on this soldier-settlement work?

Mr. HAYDEN. Yes.

Mr. SINNOTT. What do you mean by this language in section 7, that the land so sold shall be paid for in cash or on deferred payments, at the option of the purchaser, in installments of one-fifth cash and one-fifth annually until fully paid?

Mr. HAYDEN. That is the way the original Kettner bill read. Mr. SINNOTT. Why give them so much as 160 acres, as you have provided on page 7? Under most of these projects the Secretary makes the unit much smaller than that.

Mr. HAYDEN. I followed the Kettner bill in that regard.

Mr. SMITH of Idaho. It reads "not more than 160 acres." Mr. HAYDEN. Yes, "not more than." The Secretary of the Interior might fix the acreage at less than 160 acres.

I believe that the last proviso to section 7 that the Secretary of the Interior may in his discretion offer the lands to be sold and reclaimed in cooperation with the California State Land Settlement

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