or five hundred thousand dollars in these protection works which would protect us for 10 years. Besides that, those people down there have everything to lose by preventing us from going down there and protecting the levee. The all-American canal does not make that land worthless, but it simply makes them bear a part of the burden of storage which is justly theirs, and that land does not belong to Mexicans. It belongs to some mighty good, shrewd Americans, and they are not going down there and cut that levee. The Mexicans have no interest, because practically no Mexicans own any land in there whatever. It practically all belongs to the California-Mexico Land & Cattle Co.

The CHAIRMAN. Indicate on the map where that levee is built. Mr. ROSE. That is constructed here. This is the levee we now have running from here down across here [indicating].

The CHAIRMAN. Mention the places so we will have them in the record.

Mr. Rose. It runs from the Inter-California Railroad to Black Butte, in Mexico, a distance of 16 miles.

The CHAIRMAN. And that is to guard against the waters from the Colorado River?

Mr. ROSE. Yes.

Mr. HAYDEN. If that levee in Mexico was not properly constructed and maintained, the entire flow of the Colorado River, instead of going into the Gulf of California, would go down the channel which you call New River into the Salton Sea?

Mr. ROSE. I am not prepared to say that. It could. It could go either way. That levee is on a ridge and to-day it runs off here [indicating]. It might cut down here and go on to the sea or it might go the other way.

Mr. HAYDEN. In time of flood the water comes against your Mexican levee?

Mr. ROSE. Yes.

Mr. HAYDEN. If the levee broke, the current would be started
toward the Salton Sea and would go in that direction normally?
Mr. ROSE. Well, I do not know that it would, but it could.
Mr. LITTLE. Is that the old river up there on the east?
Mr. ROSE. That is the old river channel to the Gulf.

Mr. HAYDEN. Prior to the break in the Mexican levee?
Mr. ROSE. Yes.

(The committee thereupon took a recess until 8 o'clock p. m.)

EVENING SESSION.

The committee reassembled at 8 o'clock p. m., pursuant to recess. The CHAIRMAN. Gentlemen, we will proceed. Are you ready, Mr. Shaw?

STATEMENT OF MR. O. N. SHAW, OF HOLTVILLE, CALIF.

Mr. SHAW. Mr. Chairman and gentlemen of the committee, on behalf of myself and three other members of the committee who have been heard to-day, or will be heard this evening, I wish to offer this statement to be filed stating who we are and whom we represent, and I ask that this statement be filed in connection with my remarks

made this morning and that it be made a part of the permanent record. Shall I read it?

The CHAIRMAN. No; I think you can insert it. What is it about? Mr. SHAW. It gives the names of the members of our committee and whom we represent.

I also have a telegram here from F. H. McIver, secretary of the Imperial irrigation district, which I would like to put in the record at this time.

Mr. SMITH of Idaho. Let us have that read.

Mr. SHAW. This is addressed to Phil D. Swing, who is a member of our committee. It reads as follows:

PHIL D. SWING,

EL CENTRO, CALIF., July 9, 1919-2.32 p. m.

The Washington Hotel, Washington, D. C.:

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.

This other paper simply shows who is present here representing the district. If you want me to, I can read it.

The CHAIRMAN. Just insert it in the record. (The paper referred to follows:)

My name is Mr. O. N. Shaw. I think the records should show the appearance, and desire to state that I am president of the Imperial Valley Sheep and Wool Growers' Association, and also director of Imperial Mutual Water Co. No. 5, and am actively engaged in farming and banking in Imperial Valley. I was appointed as a representative on this committee by the directors of the Imperial irrigation district. I have resided in Imperial Valley for 12 years.

Mr. Mark Rose is a farmer residing in Imperial Valley since 1901, and has been interested there ever since. He and his family own a section of irrigated land in the valley. He is one of the members of the committee appointed by the directors of the Imperial irrigation district to visit Washington on this business. He also represents Coachella Valley and the Coachella County water district, the West Side Co., and is president of the Imperial Laguna Water Co., which have an irrigable area under the proposed canal of over one-half million acres.

Mr. Phil D. Swing, chief counsel for the Imperial irrigation district. Mr. W. H. Brooks is a member of the committee representing the Imperial irrigation district; pioneer rancher, going to the valley in 1902; also chairman of the board of supervisors of Imperial County; engaged in farming.

Mr. Mike Liebert is also a member of the committee representing the Imperial irrigation district; resided in the valley eight years; farmer; also is a representative of the Imperial Valley Farm Bureau, and a director thereof; director of the Imperial Valley Milk Producers' Association.

Mr. R. Woodland Gates, representing the Imperial Laguna Water Co.

STATEMENT OF MR. MARK ROSE.

Mr. ROSE. Mr. Chairman and members of the committee, the testimony given before your committee by Mr. Davis, Director of the United States Reclamation Service, showed that only during the months of September and October was the discharge of the Colorado River so low that there was any danger of a water shortage; that is, when there was danger of there not being sufficient water in the river to irrigate all the lands lying within the Imperial Valley, amounting

to approximately 900,000 acres, and which lands are contemplated to be irrigated under the provisions of this bill. This testimony or statement is corroborated by Mr. C. R. Rockwood, ex-chief engineer of the Imperial Valley project, whose report covering this subject is on file with your committee in connection with a statement made by Mr. Swing in this hearing. Mr. C. K. Clark, who spent several years as chief engineer of the project, also holds the same to be true. The fact is borne out by the measurements made by the United States Reclamation Service at Yuma of the daily discharge of the Colorado River.

While it is clearly shown that September and October are the months of low discharge of the river, it does not follow that the flow might be so low as to make irrigation of all the lands in Imperial Valley impossible during this time. According to the Reclamation Service measurements made at Yuma during the 15 years from 1903 to 1917, inclusive, only three years, viz, 1905, 1910, and 1915, would there have been insufficient water in the river to have irrigated 1,000,000 acres of Imperial Valley land during the month of September from the natural flow. In 1905 there would have been nine-tenths enough water to irrigate 1,000,000 acres. The same is true for 1910. In 1915 there would have been seven-tenths enough water to have covered 1,000,000 acres, while for October of the same year there was sufficient water in the river to irrigate 1,700,000 acres. During the 15 years herein mentioned the lowest discharge of the river for October would have irrigated 1,600,000 acres. Therefore, from the information herein given, we find that there is only one year out of five when there is any danger of a water shortage in September, the month of low discharge, with 1,000,000 acres under irrigation.

The fact that shortages may occur in September is not so serious as it would at first seem. All grain crops, such as barley, wheat, etc., and the early crops of corn and milo maize have been matured and harvested long before September. New fall grain crops are not planted until October or November. No vegetable crops are growing at this time of year. The only crops that might suffer would be alfalfa, cotton, and the late crops of milo maize. In the case of alfalfa the worst that could happen would be the loss of one or two cuttings of hay, but this loss would not be a serious one in a country where six to nine cuttings per year is the rule. Through more advanced methods of planting and cultivation it has been successfully proven that cotton and milo maize can be grown in Imperal Valley and brought to a full harvest even though the crop may be without water four to six weeks. Should a water shortage occur every year in September there would be nothing serious about it, for in Imperial Valley crops are grown during 12 months of the year; 11 months would be left in which to produce profitable crops.

A copy of a contract between the Interior Department of this Government and the Imperial irrigation district has been filed with your committee in connection with hearings on this bill. This contract is dated October 23, 1918. Section 15 of the contract provides as follows:

SEC. 15. It is understood and agreed that the district shall have the right at any time to extend its boundaries within the United States and water additional lands upon payment of same amount per acre as irrigable lands in present Imperial irrigation district are to pay under terms of this contract. This

* *

right to be also available on same conditions. * All proceeds from payments on account of initial connection charges assessed to and collected from such new lands shall be used under the direction of the Secretary of the Interior for the construction of storage works for the benefit of the lands contributing.

Secretary of the Interior in his report on this bill to your committee has advised an amendment to section 9 whereby the money derived from the sale of the land may ultimately be used for the construction works for the benefit of the lands contributing. Mr. Davis has pointed out in his testimony that the moneys derived from the two above sources will be ample and sufficient to provide sufficient storage of water to irrigate all lands, and thus provide against a possible shortage of water that might occur as shown heretofore. I wish to make reference to the engineers' preliminary report covering the construction of the all-American canal, which report has been filed with you.

On page 4 of said report it is shown that it would cost $26,732,602 to build a canal and works of 9,000 second-feet capacity to furnish water to all the lands of Imperial Valley (approximately 900,000 acres), while it would cost, as shown on page 5 of the same report, $24,304,048 to construct canals and works of 6,000 second-feet capacity that would only be sufficient to irrigate the 500,000 acres within the present boundaries of the Imperial irrigation district. Thus it is shown that it would be more economical for all lands concerned to build the canal with capacity of 9,000 second-feet that to build the smaller canal that would only irrigate a little over one-half of the land in the valley. With this in view my contentions are that it would be unwise to provide for only partial reclamation of the unreclaimed area of approximately 400,000 acres, but that they should be considered in their entirety. No portion should be held unreclaimed on account of a possible water shortage. It will take several years to bring about the irrigation and reclamation of the area and by that tme, no doubt, storage will have been provided in case same is necessary for the full irrigation of these lands.

Some reference has been made before this committee regarding certain treaty negotiations having been carried on between this country and Mexico by President Taft during his administraton. This treaty had reference especially to the waters of the Colorado River. The terms of the treaty were not in the interests of the people of Imperial Valley. The farmers of Imperial Valley were entirely ignorant of any such negotiations. Had they been aware of any arrangements being made whereby Mexico might have been given any of the natural flow of the Colorado River they would have entered a vehement protest. A treaty allowing Mexico any of the natural flow of the river could only have been made in the interest of the large private holdings in Mexico, and against the interest of the American farmer.

The CHAIRMAN. Have you finished your statement, Mr. Rose?

Mr. ROSE. I have not finished my statement regarding the reasons of our not being able to sell our bonds, the bonds to finance this proposition.

One reason outside of the Federal farm loan, which, of course, has hurt us, is this, that back in 1890 there was purchased in Lower California and Sonora some million acres of land by some very

powerful financial interests in the United States. Those interests have sought ever since the purchase and since the beginning of the Imperial Valley project to get themselves annexed to the waters of the Colorado River, and they have done everything possible to prevent any great development on the American side until they could bring that about and put to use for themselves the waters of the Colorado River-to their own beneficial use-and it will be readily seen that in floating any great quantity of bonds those people would prevent us from floating those bonds.

Mr. SMITH of Idaho. Have you any objection to giving us the names of those people?

Mr. ROSE. I couldn't give you the names of all of them. Of course, it is rather a difficult matter to get exact records in Mexico because none are kept, but as far as I have been able to find out by inquiry in Lower California, it is the Otis-Chandler interests, which includes Sherman and a great many others, and the Cudahy interests and the Mexican branch of the Southern Pacific, headed by Epes Randolph. And there is a large British syndicate that is the owner of interests there.

On the Sonora side, as far as I have been able to find out, it is Hearst and Charley Taft, William H. Taft's brother, and I understand that the Otis-Chandler interests are also interested over there. Also, a British syndicate owns a large tract on that side of the line. Now, there may be a few other small holdings.

Mr. HAYDEN. By Otis-Chandler you mean the late Harrison Gray Otis of the Los Angeles Times, and his son-in-law?

Mr. ROSE. And Sherman.

Mr. HAYDEN. That is Moses H. Sherman, of the street railway system of Los Angeles?

Mr. EVANS. What have they been doing lately-producing, farming?

Mr. ROSE. They are producing on about somewhere between one hundred thousand and one hundred and fifty thousand acres that is, they are not producing; they are renting it principally to Chinamen and Japanese.

Mr. HAYDEN. What interest has Col. Epes Randolph ?

Mr. ROSE. The Southern Pacific-that is, not the Southern Pacific, but the Inter-California Railroad, which is a branch of the Southern Pacific-owns something like sixty or seventy thousand acres down there. Besides that he is president of the Mexican road and is naturally looking to development along those roads.

Mr. HAYDEN. Does the property belong to him or does it belong to the railroad company of which he is president?

Mr. ROSE. It belongs to the railroad company of which he is president. I said the railroad company, of which Epes Randolph is president, of course.

Mr. HAYDEN. How did they acquire 60,000 acres of land in Lower California? Did they acquire it from the Mexican Government as a consideration for building the railroad?

Mr. Rose. No; they bought it of the old Andrada grant down there.

Mr. HAYDEN. And Andrada was the original grantee from the Government of Mexico?