Mr. HAYDEN. There must be some reciprocity in the treaty. The Mexicans are not going to negotiate a treaty so one-sided that it will say that whenever necessary the American interests shall have the right to go into Mexico to repair levees, but when the Mexican interests want water for irrigation they shall not have it.

Mr. YAGER. That levee is as much for their protection as ours. We don't want to say they shall not have any water, but if they pay for the storage of the waters of the Colorado river there is sufficient water to irrigate all that land.

Mr. HAYDEN. You went further and said that the Mexicans might pay their pro rata share of the cost of enlarging the canal capacity? Mr. YAGER. I will put it this way: That if the United States furnishes Mexico water Mexico should pay the United States for so doing.

Mr. HAYDEN. If the Mexicans have a share in the main canal from Laguna Dam to the border and if it is necessary for the people on the American side to go over into Mexico to repair the levees, are they not again in a partnership? I am trying to find out how you are going to avoid such a partnership.

Mr. YAGER. If the United States sells Mexico water, I wouldn't say that you are in partnership with those interests south of the line. It is a treaty or agreement between the United States and Mexico. But I can't see why Mexico should make any objection or take any exceptions to us going in there and protecting their own land.

Mr. HAYDEN. How are you going to get away from the fact that there is a community of interest between the lands in the Imperial Valley and the lands irrigated in Mexico which is so close and so intimate that there must be intercourse and business dealings between the people residing thereon at all times? /

Mr. YAGER. There are many places on the Mexican border where business intercourse exists without a treaty. And I said before, I don't think for a minute that this Government wants to cause any injustice to be done to Mexico, and I don't think this Government would. I think if we enacted this legislation and took care of our own business on this side of the line building an all-American canal those people would come to this Government and say, We want a treaty so we can continue the irrigation and development of Mexican lands," and at the same time say, "We will take care of the floodprotection work in Mexico." That it is just as much protection to the Mexican land as it is to the American land.

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Mr. HAYDEN. After all, the Secretary of State was not greatly in error when he said that there are considerations of equity and comity between the two nations?

Mr. YAGER. Well, I don't see where the equity is.

Mr. HAYDEN. If it is necessary to protect both the Mexican lands and American lands from floods, equity would require that the American lands should pay their share of the cost. On the other hand, there are lands in Mexico now being irrigated which have an equitable right to some of the water of the Colorado River, which you say you do not think our Government will deny.

Mr. BARBOUR. I didn't understand him to say that they had any right at all.

Mr. HAYDEN. Not a legal right. Mr. Yager said we could divert all the water out of the Colorado River and dry up the Mexican lands. The Mexican Government can urge, as a matter of comity and equity, that we ought not to dry up their lands. That would probably be the minimum claim they would make. The Mexican Government could equitably say "Our people must go into your country to get water for irrigation, but your people must come into our country to protect themselves against flood water."

Mr. YAGER. If I said that they have any equitable claim, I was misunderstood. I was attempting to show that they insult this Government and American interests this side of the line in their dealings and have had the people of this irrigation district by the throat and bled them for years and there is no equity in dealing with them; it is not equity, in my opinion. Equity does not compel the United States to develop Mexican lands and let American lands go dry. It would simply be a concession on the part of this Government in furnishing them any water and this concession should be paid for by them.

Mr. HAYDEN. Yet, on the ground of mutual concessions it would be necessary for us to concede them a certain amount of water out of the stream, and it would be necessary for them to concede to us the right to go into Mexico to protect the Imperial Valley lands from inundation. If you do not want to use the word "equity" use the word "concession."

Mr. YAGER. I don't think it is necessary to concede them any water, but think they can get it by paying for it. I wouldn't say the relationship between us, under those circumstances, is a partnership.

Mr. HAYDEN. Partners are persons engaged in a common business from which they each draw a share of the profits. The landowners in Imperial Valley and the landowners in Lower California are and will continue to be engaged in the same business, which is the growing of crops by irrigation. They all are and will continue to draw water from the same source, out of the Colorado River. They are partners in that business. They are all interested in the protection of their lands from floods in the Colorado River. In other words, they must all work together to successfully do the things essential to the prosperity of all concerned.

Mr. YAGER. It wouldn't be sharing our waters; it would be selling our waters to the Mexican interests. The United States Government would be selling our water and allowing them to purchase water from this Government, and if it was a bargain and sale proposition, it wouldn't be a partnership in that respect. On the other hand, I can't see where protection works there should constitute a partnership in the protection of their own lands. They would be just as vitally interested in that

Mr. HAYDEN (interposing). But you admit that if the flood protection levee is for the benefit of lands in the United States and Mexico, as a matter of justice the lands both in the United States and Mexico should pay for the levee?

Mr. YAGER. I don't think this Government wants to get something for nothing.

Mr. HAYDEN. And you do not want Mexico to get something for nothing. It is inequitable that the Mexican lands get water at a cheaper price than the American lands. It is to remedy that condition that you ask for this legislation.

Mr. YAGER. This situation can be remedied if this legislation was passed, and not only this remedied but you will provide the means of developing an agriculture empire unequaled in the world.

Mr. BARBOUR. Have you said all you want to say, Mr. Yager?

Mr. YAGER. There are other matters I could bring to the attention of the committee. But I want to thank you for permitting me to speak before you, and I honestly and sincerely want to urge you all to do something for us in that territory; and if we are wrong in any of our contentions we want to be righted, but I do think it is a very meritorious matter that needs your immediate and favorable consideration.

Mr. BARBOUR. I suppose there is no use in taking the matter up with the full committee until after the session convenes in Decem ber, because the plan is for adjournment about November 10.

Mr. YAGER. If the bill could be reported out, Mr. Barbour, couldn't that be done?

Mr. SMITH. As I understand it, there is a delegation coming from the Imperial Valley?

Mr. YAGER. There is a delegation coming from the Imperial Valley to urge along the same line as we urge, as I understand, to get something done.

Mr. BARBOUR. The delegation that is coming should be heard. You would have to give them a week to arrive here and that would be along the 4th or 5th. We will have as much as we can attend to ́during that time, anyway.

Mr. YAGER. You can appreciate our position. This bill has been in committee since the 17th day of June.

Mr. BARBOUR. The committee's failure to act is due to the situation that arose in the Imperial Valley.

Mr. ROSE. I think that is largely true.

Mr. BARBOUR. This subcommittee could have been called together a long time ago, if we hadn't been up against the proposition that there is a division of opinion out in Imperial Valley.

Mr. HAYDEN. I am at the service of the subcommittee or its chairman at any time.

Mr. BARBOUR. What do you think about the possibility of taking the matter up before December?

Mr. HAYDEN. The statement you have just made covers the sit

uation.

Mr. BARBOUR. I think so, too. Mr. Mondell has stated that November 10 has been set as the date for adjournment and you won't be able to hold enough of the members here. Some of them have already gone. They will keep filtering out until that time.

Mr. YAGER. Even if the bill is not taken up in the House I should like to see it reported out of committee.

Mr. BARBOUR. As I understand it, we can't report the bill out until these representatives get here and tell us just what they have agreed upon.

Mr. HAYDEN. It would not be fair to invite a delegation to come. here from the Imperial Valley after we had agreed on the terms of the bill.

Mr. BARBOUR. They would reach here about the time the House would adjourn.

(Thereupon at 4 p. m. the committee adjourned.)

APPENDIX.

EXHIBIT A.

AN ACT Providing for cooperation between the State of Arizona and the United Statees in the settlement of soldiers, sailors, marines, and others upon farms and farm-laborer allotments; and in the reclamation and improvement of such farms and farm-laborer allotments; constituting the members of the State land department, members of a soldier-settlement board and defining the duties of such board, and making an appropriation and declaring an emergency.

Be it enacted by the Legislature of the State of Arizona:

SEC. 1. This act may be known and cited as "The soldier-settlement act." SEC. 2. The object and purpose of this act is, in recognition of military service, to provide employment and rural homes for soldiers, sailors, and marines, and others who have served with the armed forces of the United States in the European wars or other wars of the United States, including former American citizens who served in allied armies against the Central Powers and have been repatriated, and who have been honorably discharged, hereafter generally referred to as "soldiers," and to accomplish such purpose by cooperation with the agencies of the United States engaged in work of a similar character.

SEC. 3. For cooperation with the agencies of the United States, as provided in the preceding section, and to provide the necessary organization for carrying this act into effect, the soldier settlement board, which shall hereafter be referred to as the board, is hereby created. Said board shall be composed of the members and officers of the State Land Department of Arizona, and designated and created by law, and they shall perform their duties as such officers and members of said board, as prescribed and defined by this act, in addition to the duties imposed upon them by the law creating the State land department and acts amendatory thereof, without additional compensation. The State land commissioner is hereby designated soldier settlement commissioner, and the deputy State land commissioner is designated deputy soldier settlement commissioner and shall be secretary of the board, and said commissioner and deputy commissioner and all assistants, agents, and employees of the State land department shall, without additional compensation, perform the duties imposed by this act, under the direction of the board or of the commissioner, as the case may be, in like manner and with like authority as they perform the duties imposed by the law creating the State land department and acts amendatory thereof.

SEC. 4. There is hereby established a fund, to be known as the "State soldier settlement fund," which shall consist of all moneys appropriated, or realized from the issuing of bonds, for the purpose of said fund, of all gifts made thereto, and of all repayments to the State on account of moneys advanced or of lands furnished by the board under and in accordance with the provisions of this act.

SEC. 5. The board is hereby authorized to perform all acts, not inconsistent with the constitution of the State, necessary to cooperate fully with the agencies of the United States engaged in work of similar character.

SEC. 6. The board is authorized to acquire undeveloped agricultural lands which may be deemed suitable for reclamation and settlement, together with necessary water rights, rights of way, and other appurtenances; to set aside and dedicate to public use appropriate tracts so acquired by it for roads, school houses, churches, or other public purposes; to direct the exercise by the State, through the attorney general, of the power of eminent domain for the condemnation of property of any kind which may be necessary for carrying out the purposes of this act; to appropriate water rights under the laws of the State; to provide all necessary means for furnishing agricultural training

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for the soldier so as to render him better qualified for the cultivation of his land; and to arrange with the agencies of the Federal Government for sharing in the expense of such work under appropriate conditions of supervision by the Federal Government or by the State Agricultural College, and to perform any and all acts and to make such rules and regulations as may be necessary and proper for the purpose of carrying the provisions of this act into full force and effect.

SEC. 7. In cooperating with the agencies of the United States the board is empowered to take title, in the name of the State to lands in fee simple, or in trust, or under such other conditions as may be deemed advisable for the purposes of this act, and may convey title thereto or exercise such liens as may be necessary for carrying out the plans decided upon in cooperation with the agencies of the United States. The title to the land furnished by the board shall be held by all purchasers under such conditions and restrictions as may be specified in the Federal Statutes relating to this subject, or approved by the Secretary of the Interior.

SEC. 8. The basis of cooperation with the agencies of the United States under the provisions of this act shall be: (a) That the State shall provide the land needed for settlement and the United States shall provide the money necessary to meet the expense of reclamation and subdivision and the necessary improvements and equipment, perform the necessary work, and have charge of all settlement work; (b) that the State shall make actual expenditures, in an amount not to exceed 25 per cent of the total purchase price of the land, the cost of reclamation of the same as hereinafter defined, the cost of farm improvement as hereinafter defined, and the cost of farm implements, stock, and other necessary equipment; and the board may, under such agreement as may be made with the United States and under the supervision of the Secretary of the Interior, control the preparation of the land as homes and the settlement thereof.

SEC. 9. The board shall satisfy itself of the practicability of each undertaking proposed, utilizing all related State agencies for such investigation, and thereupon shall cooperate with the authorities of the United States in the preparation of plans, not inconsistent with the provision of the preceding section, for the settlement of soldiers.

SEC. 10. Whenever the board, in accordance with plans agreed upon with the authorities of the United States, desires to acquire land, it shall give notice by publication in one or more newspapers of general circulation in the State calling for offers from owners of land of the character desired. Such notice shall be published once a week for five consecutive weeks, the last date of publication being not more than one week prior to the date of opening offers, and shall specify the matter which should be incorporated in such offer. After thorough investigation and report as to the character of the lands, rights, and appurtenances, upon examination by the commissioner and two or more members of the board, together with a representative of the cooperating agency of the United States and such expert of the State agricultural college and others as may be deemed advisable, and after approval by the attorney general of the State of the title to lands and any water rights or other rights appurtenant thereto deemed essential by the board, and after approval of the purchase by the authorities of the United States and definite arrangements made for the reclamation of the lands by the Federal Government, if necessary, and for the improvement and subdivision of the lands, the board may, by formal order entered upon its minutes, authorize and proceed with the acquirements of the lands by purchase, gift, or condemnation. Payment, if necessary, shall be made out of the State soldier settlement fund or by settlers under such terms and conditions as may be fixed by agreements between the board and the owners of said lands. The board shall have the right to reject any or all offers, to accept offers which may not be the lowest, and to readvertise, from time to time, as it may deem necessary.

SEC. 11. The board shall make appropriate arrangements with the agencies of the United States for the collection of and repayment to the State of the cost of lands furnished by the board, or of moneys actually expended, under agreement with such agencies of the United States, on the purchase price of land and the cost of reclamation, farm improvement, farm implements, stock, and other necessary equipment, which agreement with the agencies of the United States may provide that any such repayments to the United States shall be divided between the Federal Government and the State in proportion to the disbursements made by each, respectively. All money so received