or otherwise received by the board shall be deposited with the State treasurer and by him credited to the State soldiers' settlement fund, and shall be available for meeting the obligations of the board for the purchase of land acquired under the provisions of this act or for the disbursement of money, under agreement with the agencies of the United States for the purchase, reclamation, or improvement of land, or the purchase of farm implements, stock, and other necessary equipment.

SEC. 12. Should the board, in accordance witth the provisions of section 9, undertake the subdivision, preparation, and settlement of any land acquired under the provisions of this act, such subdivision, preparation and settlement shall be subject to the following provisions:

(a) The land shall be subdivided into farms, each having a value when unimproved, as determined by the board, and not including any cost which may be incurred in the reclamation of the land, as hereinafter defined, of not to exceed $8,000, and into farm laborer allotments each having a value when unimproved, as determined by the board, and not including any cost which may be incurred in the reclamation of the land, and hereinafter defined, of not to exceed $1,000.

(b) The board may make the necessary improvements on any such farm or farm laborer allotment, or may contract with the settler to make the same. Such improvements may consist of dwelling houses and outbuildings, fencing, the construction of farm drains, irrigation laterals, seeding, planting, and such other improvements as may be deemed necessary or proper to render the particular allotment habitable and productive, the same being collectively hereinafter referred to as "farm improvements," and shall not include any work or item hereinafter classified as reclamation."

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(c) The board may contract with the United States for the construction of works for irrigation, drainage, protection against flood waters, and general sanitation, and for the subdivision of the lands, clearing, leveling, and other . work necessary to render one or more groups of farms available for agriculture, which work is defined for the purpose of this act as "reclamation." (d) The board is authorized to secure from the United States, under the rules and regulations of the United States agency advancing the same and in accordance with the provisions of Federal laws, the necessary funds to make loans to approved settlers for making permanent improvements and for the purchase of farm implements, stock, and other necessary equipment, which advances of funds are defined for the purpose of this act as short-time loans," and shall be secured by mortgage or other effective lien on the land, or upon property purchased with said loan; the total amount of any such short-time loan shall not exceed $3,000 for a farm, or $1,000 for a farm laborer allotment.

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(e) The board shall collect from settlers the sums due for principal and interest on lands, reclamation costs, farm improvements and in payment of shorttime loans, and shall repay all sums advanced by the United States for shorttime loans and the proportion of such sums due the United States on lands, reclamation costs, and farm improvements, returning the State's proportion of any such sum, to the State soldiers' settlement fund, as by this act provided.

(f) The board is authorized to take over from the Secretary of the Interior of the United States and to operate and maintain any irrigation, drainage, or other works or improvements constructed by the United States Reclamation Service for the purposes in this act set forth, and involving lands owned or controlled by the board, and shall in any such case, become responsible for the proper care thereof and provide for the repayment of the cost thereof. The board shall require of each purchaser of land the payment of proper and reasonable charges for the operation and maintenance and preservation of such works, and shall also be authorized to make reasonable charges pursuant to general regulations for services rendered to the purchasers of lands and others. (g) The lands disposed of under this act shall be sold in accordance with plans prepared in cooperation with the agencies of the United States for soldier settlement, after public notice in one or more newspapers of general circulation in the State, once a week for five consecutive weeks, the last date of publication being not more than one week prior to the date of sale, setting forth in general terms the information necessary for the public, and providing for detailed statements to be available at the office of the board and other convenient places, which shall supply full information as to the farms and allotments and the several prices therefor. The manner of the sale shall be such as to afford equal opportunity to all qualified soldiers desiring to purchase. The purchaser

may be required to make application in a form approved by the board stating, among other things, whether he has available the minimum amount of capital deemed necessary by the board, which shall be not less than 10 per cent of the reclaimed, improved, and equipped value of the farm or allotment, and whether he can comply with the terms of payment and give such assurance in regard thereto as the board may require. The board shall have the discretion to reject any or all applications and to readvertise, from time to time, any or all tracts, as it deems necessary.

(h) The soldier, to be a qualified applicant, must be a citizen of the United States, and must satisfy the board that he is not the holder of agricultural land or possessing rights which, together with the land, improvements and equipments to be purchased hereunder shall exceed a value of $15,000. No purchaser shall hold more than one farm or allotment on which all charges are not fully paid, and each purchaser shall satisfy the board as to his fitness to cultivate and develop the same successfully, both financially and otherwise. The board may, in its discretion, require applicants to appear before it in

person.

(i) Each approved applicant shall enter into contract of purchase which, among other things, shall create a mortgage or other effective lien for the payment of the purchase price of the land, the reclamation costs and the farm improvements and other charges, if any, and also require the purchaser to actually occupy the land within six months, or if the development of water for the irrigation of the land be necessary, within six months from the date on which such water is available, and to actually reside thereon for at least eight months in each calendar year for a period of at least five years, unless prevented by illness or other cause satisfactory to the board, and any other absence from the land exceeding four months in any calendar year shall be a breach of the contract. The contract shall provide for immediate payment of 2 per cent of the sale price of the land including reclamation costs, and not less than 10 per cent of the cost of the farm improvements. The balance of the amount for the land and reclamation costs shall be due as follows: Two per cent each year for the first four years, and thereafter in annual payments to be fixed by the board in such amounts as to repay within a further period not exceeding 40 years, the capital sum with interest on deferred payments from the date of the contract at the rate of 4 per cent per annum. The title to the land shall not pass until full payment is made for the land and the reclamation costs, and until full payment is made, no farm or allotment shall be transferred, assigned, or mortgaged in whole or in part without the written consent of the board. The amount due on farm improvements shall be repaid in a period to be fixed by the board not exceeding 20 years, so as to return the capital sum with interest on deferred payments at the rate of 4 per cent per annum. The repayment of short-time loans shall extend over a period to be fixed by the board not exceeding five years, payable in such amounts and at such times, and with such rate of interest as may be determined by the board. The purchaser shall have the right on any installment date to pay any or all installments thereafter due. The contract shall also provide that the purchaser shall cultivate the land in a manner to be approved by the board and shall keep in good order all buildings, improvements, and equipment, reasonable wear and tear excepted, and pay such assessments as may be levied by the board to provide the equivalent of insurance to protect the interests of the State and of the United States in all buildings, improvements, and equipment.

The contract shall also provide that in case of failure of the settler to comply with any of the terms thereof. the board shall have the right, at its option, to cancel the contract and shall thereupon be released from all obligaions under the contract, and the purchaser shall forfeit all rights thereunder. All payments theretofore made shall be deemed to be a rental paid for occupancy. The failure of the board to exercise any option to cancel for default or violations of the contract shall not be deemed a waiver of such right, but the same may be exercised thereafter. No forfeiture or cancellation shall in any way impair the lien and security of the mortgage or other lien securing the purchase price of the land, and reclamation costs and farm improvements, or the repayment of loan. Upon forfeiture, cancellation, or relinquishment of a contract the board shall have the right to sell the farm or allotment, together with all appurtenances, improvements, and equipment, covered by such con185833-2021

tract, to any other qualified purchaser. In case of the death of any purchaser before full payment, all of such purchaser's rights under the contract shall pass to his heirs or devises, who shall be bound by all the conditions thereof, but may surrender the same to the board upon terms and conditions satisfactory to the board.

SEC. 13. In any case where works have been or are to be constructed which are of general benefit to an area involving a number of farms or allotments, as in the case of irrigation, drainage, clearing cut-over land or other means of reclamation or development, and where the cooperating Federal agencies find that the interest of the project would be advanced by the organization of an irrigation, drainage, or other district for which provision is made by the laws of this State. The board shall take all necessary steps in its power to accomplish such organization. The board is authorized to contract with such district or the United States or both, to carry out any or all provisions of this act.

SEC. 14. In case of any undertaking for the reclamation of lands in two or more States or any undertaking involving construction works in any State for the irrigation, drainage, or reclamation of lands in whole or in part in another State, the board is authorized and directed to cooperate with similar boards of other States, and the authorized agents and officers of he United States, and either the United States or the said board of such other State shall have authority to acquire by condemnation, purchase, or other lawful means such property rights or easements in this State as may be needed for such interstate undertaking, upon the same terms and in like manner as if such undertaking were wholly in this State.

SEC. 15. Whenever the board shall find that all, or any part of any land which may be purchased or otherwise acquired by it, is not necessary for the purpose of this act, the board may sell such land, after public notice as herein specified, upon such terms as the board may prescribe; or whenever the Secretary of the Interior and the board shall find that all or any part of such lands remaining available will not be required for homes for soldiers they may be opened to disposition to other citizens of the United States, subject to the provisions and limitations of his act.

SEC. 16. For the purpose of carrying out the provisions of this act, such sum as may be necessary therefor is hereby appropriated out of any moneys in the State treasury not otherwise appropriated, to be covered into the State soldier settlement fund. The State auditor is hereby authorized and directed to draw warrants upon such fund from time to time, upon the approval by the board of properly executed demands therefor in payment for lands, rights, or appurtenances thereto, or of advances made under cooperative agreement with the agencies of the United States, on the puchase price or the reclamation thereof, or for the cost of farm improvement, as provided by this act. and the State treasurer is hereby authorized and directed to pay such warrants.

SEC. 17. The board shall make an annual report to the governor in December, giving a full statement of its operations, the results of investigations of the subject with which it is authorized to deal, and such recommendations for legislation as it may deem proper, and shall furnish a copy of such report to the Secretary of the Interior. The governor shall lay such reports before the legislature, together with his recommendations.

SEC. 18. If any part of this act shall, for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this act, but shall be confined in its operation to the particular part thereof directly involved in the controversy wherein such judgment shall have been rendered.

SEC. 19. All acts or parts of acts, so far as inconsistent with the terms of this act, are hereby repealed.

Whereas the soldier, sailor, marines, and others who have served with the armed forces of the United States in the European War are being rapidly mustered out of the service of the United States and returning to civil life. and it is necessary for the preservation of the public peace, health, and safety that they be speedily provided with homes and employment; therefore an emergency is hereby declared to exist, and this act shall be in full force and effect from and after its passage and approval by the governor.

Approved March 21, 1919.

EXHIBIT B.

Hon. M. P. KINKAID,

DEPARTMENT OF THE INTERIOR,
Washington, October 8, 1919.

Chairman Committee on Irrigation of Arid Lands,

House of Representatives.

MY DEAR JUDGE KINKAID: I am in receipt of your letter of September 26, inclosing copy of H. R. 9421, introduced by Mr. Hayden, to authorize the construction of the Lower Colorado River reclamation project, and for other purposes, and requesting report on same.

Under date of July 3, 1919, I reported on the bill H. R. 6044, which has the same general purpose as the bill introduced by Mr. Hayden but is expressed differently and has a different title and some different provisions.

In the report of July 3, above referred to, I pointed out a number of amendments to the former bill and with these amendments it seemed to fulfill its function fairly well.

H. R. 9421 contains several provisions not found in the former bill which are, in my judgment, improvements. The principal one of these is the provision that the public lands may be held for actual settlers and in the discretion of the Secretary of the Interior he is authorized to use those lands in cooperation with the State land settlement board and other public authorities of the State of California, and similar board in the State of Arizona. Also, that the Secretary may, in his discretion, use such lands in connection with any soldier settlement legislation that may be enacted by Congress. I regard the treatment of the public lands in H. R. 9421 as a decided improvement on the provisions of the previous bill.

The theory of the former bill that the public lands be sold immediately and that the proceeds constitute a guaranty fund, might, under the provisions of H. R. 9421, be carried out to better advantage by holding the lands until water is ready for delivery, as their value will at that time be much higher than in the raw state. Such treatment will also prevent speculation, as it will enable the actual settler to take and cultivate the lands when water is ready, whereas he would not be able to do so if purchased years in advance of water delivery, and the purchaser would be in the attitude of a speculator purchasing the lands to sell later to the actual user at an advance.

In section 17 occurs an attempt to prevent the purchase of lands in larger tracts than 160 acres. This attempt will not be effective unless prohibition is made upon early alienation and it would be more effective if some such limitation were imposed.

In section 19, line 6, it is recommended that, after the word " words "in his judgment " be inserted.

proper," the

With these minor changes I think the bill is an improvement upon H. R. 6044, and might with advantage be substituted for the same.

Cordially, yours,

F. K. LANE, Secretary.

EXHIBIT C.

Hon. M. P. KINKAID,

House of Representatives.

DEPARTMENT OF STATE, Washington, August 20, 1919.

SIR: In further reply to your letter of August 4, 1919, in which you requested me to furnish your Committee on Irrigation of Arid Lands with my views as to the bearing of treaty provisions in force between the United States and Mexico upon the provisions of H. R. 6044, being a bill to assist in increasing the productive agricultural area of the Imperial and Coachella Valleys, Calif., and for other purposes, I beg to advise you that the matter has been given careful consideration and a conclusion reached as below stated.

It appears that section 6 of the bill in question provides for the construction of a canal entirely within the United States to convey water from the Colorado River at the Laguna Dam on the border between the States of Arizona and California to the districts within the United States which it is proposed to irrigate with such water.

Article IV of the Treaty of Boundary, Cession, or Territory, etc., concluded between the United States and Mexico, December 30, 1853, provides as follows: "The provisions of the sixth and seventh articles of the treaty of Guadalupe Hidalgo having been rendered nugatory for the most part by the cession of territory granted in the first article of this treaty, the said articles are hereby abrogated and annulled, and the provisions as herein expressed substituted therefor. The vessels and citizens of the United States shall, in all time, have free and uninterrupted passage through the Gulf of California to and from their possessions situated north of the boundary line of the two countries, it being understood that this passage is to be by navigating the Gulf of California and the River Colorado, and not by land without the express consent of the Mexican Government; and precisely the same provisions, stipulations, and restrictions in all respects are hereby agreed upon and adopted, and shall be scrupulously observed and enforced, by the two contracting Governments in reference to the Rio Colorado so far and for such distance as the middle of that river is made their common boundary line by the first article of this treaty.

"The several provisions, stipulations, and restrictions contained in the seventh article of the treaty of Guadalupe Hidalgo shall remain in force only so far as regards the Rio Bravo del Norte below the initial of the said boundary provided in the first article of this treaty, that is to say, below the intersection of the 31° 47' 30'' parallel of latitude, with the boundary line established by the late treaty dividing said river from its mouth upward, according to the fifth article of the treaty of Guadalupe."

The sixth and seventh articles of the treaty of Guadalupe Hidalgo referred to in the before-quoted provisions of the treaty of 1853 are as follows:

"ART. VI. The vessels and citizens of the United States shall, in all time, have a free and uninterrupted passage by the Gulf of California and by the River Colorado below its confluence with the Gila to and from their possessions situated north of the boundary line defined in the preceding article, it being understood that this passage is to be by navigating the Gulf of California and the River Colorado and not by land without the express consent of the Mexican Government.

"If, by the examinations which may be made, it should be ascertained to be practicable and advantageous to construct a road, canal, or railway which should in whole or in part run upon the River Gila, or upon its right or its left bank, within the space of 1 marine league from either margin of the river, the Governments of both Republics will form an agreement regarding its construction, in order that it may serve equally for the use and advantage of both countries.

"ART. VII. The River Gila and the part of the Rio Bravo del Norte lying below the southern boundary of New Mexico being, agreeably to the fifth article, divided in the middle between the two Republics, the navigation of the Gila and of the Bravo below said boundary shall be free and common to the vessels and citizens of both countries, and neither shall, without the consent of the other, construct any work that may impede or interrupt, in whole or in part, the exercise of this right, not even for the purpose of favoring new methods of navigation. Nor shall any tax or contribution, under any denomination or title, be levied upon vessels or persons navigating the same, or upon merchandise or effects transported thereon, except in the case of landing upon one of their shores. If, for the purpose of making the said rivers navigable, or for maintaining them in such state, it should be necessary or advantageous to establish any tax or contribution, this shall not be done without the censent of both Governments.

"The stipulations contained in the present article shall not impair the territorial rights of either republic within its established limits."

I am of the opinion that the said provisions of the treaty of 1853, taken in connection with the quoted provisions of the treaty of Guadalupe Hidalgo of 1848, contain a prohibition of action by either Government along the conmon boundary line which might impede navigation in the Colorado River. However, with respect to a work, such as is provided for in the bill under consideration, being wholly within United States territory and not along the common boundary line, I am of the opinion that the treaty provisions mentioned would not be applicable, and in this connection I refer to an opinion of the Attorney General, dated December 12, 1895, holding that the taking of water for irrigation purposes from the Rio Grande in the United States, above the point where it forms the boundary line between the United States