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(e) Cause cottages to be erected on any farm laborer's allotment and provide a domestic water supply, the combined cost to the board of the cottage and water supply not to exceed eight hundred dollars ($800) on any one farm laborer's allotment;
(d) Make loans to approved settlers on the security of permanent improvements, stock, and farm implements, such loans to be secured by mortgage or mortgages, deed or deeds of trust on such permanent improvements, stock, or farm implements, and the total amount of any such loan, together with money spent by the board on improvements as above specified, not to exceed three thousand dollars ($3,000) on any one farm allotment, or two thousand dollars ($2,000) on any one farm laborer's allotment. (As amended Stats., 1919, p. 840.)
SEC. 12. Authority is hereby granted to the board, where deemed desirable, to operate and maintain any irrigation works constructed to serve any lands purchased and sold under the provisions of this act. All moneys received in tolls or charges for the operation and maintenance of any works or for any water supplied therefrom, shall be deposited in the land-settlement fund created by this act and shall become available for the payment of any costs, expenses, or other charges authorized in this act to be paid from said landsettlement fund.
SEC. 13. After the purchase of land by the board under the provisions of this act and before its disposal to approved bona fide applicants the board shall have authority to lease such land or a part thereof on bonded or secured lease on such terms as it shall deem fit.
SEC. 14. Lands disposed of under this act, other than lands set aside for town sites or public purposes, shall be sold either as farm allotments, each of which shall have a value not exceeding, without improvements, fifteen thousand dollars, or as farm laborers' allotments, each of which shall have a value not exceeding, without improvements, one thousand dollars. Before any part of an area is thrown open for settlement there shall be public notice thereof once a week for four weeks in one or more daily newspapers of general circulation in the State, setting forth the number and size of farm allotments or farm laborer's allotments, or both, the prices at which they are offered for sale, the minimum amount of capital a settler will be required to have, the mode of payment, the amount of cash payment required, and such other particulars as the board may think proper and specifying a definite period within which applications therefor shall be filed with the board on forms provided by the board. The board shall have the right in its uncontrolled discretion to reject any or all applications it may see fit and may readvertise as aforesaid as often as it sees fit until it receives and accepts such number of pplications as it may deem necessary.
If no applications satisfactory to the board are received for any farm allotment or farm laborer's allotment following such advertising, the board at any time prior to readvertising, may sell any such farm allotment or farm laborer's allotment at the prices at which they were so offered for sale, without the necessity of readvertising.
The board shall also have the power in dealing with any such farm allotments or farm laborer's allotments for which there has been no such application satisfactory to the board, to subdivide or amalgamate any one or more of such allotments as it may see fit, and fix the prices thereon, provided that the limitations of $15,000 for a farm allotment and $1,000 for the farm laborer's allotment, as in this section set forth, are not violated. Such subdivision or amalgamation may be had without the necessity of readvertising.
The board may also sell at public auction, under such conditions of sale and notice thereof as the board may prescribe, any areas which the board may determine are not suitable for farm allotments or farm laborer's allotments, whether or not included in any subdivision into farm allotments or farm laborer's allotments: Provided, That if such area has been included in such a farm allotment or farm laborer's allotment, then such sale at public auction can be made only after a failure to receive any application satisfactory to the board after the advertising thereof, as required by the terms of this section. (As amended, Stats. 1919, p. 841.)
SEC. 15. Any citizen of the United States, or any person who has declared his intention of becoming a citizen of the United States, and who is not the holder of agricultural land or of possessory rights thereto to the value of $15,000, and who by this purchase would not become the holder of agricultural land
or of possessory rights thereto exceeding such value, and who is prepared to enter within six months upon actual occupation of the land acquired, may apply for and become the purchaser of either a farm allotment or a farm laborer's allotment: Provided, That no more than one farm allotment or more than one farm laborer's allotment shall be sold to any one person: Provided further, That no applicant shall be approved who shall not satisfy the board as to his or her fitness successfully to cultivate and develop the allotment applied for. The board may, in offering for sale farm allotments or farm laborer's allot ments, cooperate or contract with the duly authorized representatives of the Inited States Government and other public corporations or agencies generally. The board is hereby authorized to perform all acts necessary to cooperate fully with the agencies of the United States engaged in work of similar character, and with similar boards and agencies of other States. In any such sales made in cooperation with such representatives or agencies of the United States. Government, preference must be given to soldiers, sailors, marines, and others. who have served with the armed forces of the United States in the European war 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. The board may likewise, whether or not acting in cooperation with the duly authorized representatives. of the United States Government, give such preference to any of such citizens of California, who as soldiers, sailors, marines, and others have served with the armed forces of the United States, as in this section described. (As amended, Stats. 1919, p. 842.) SEC. 16. Within 10 days after the final date set for receiving applications for either farm allotments or farm laborer's allotments the board shall meet to consider the applications, and may request applicants to appear in person: Provided, That the board shall have the power and the uncontrolled discretion to reject any or all applications. SEC. 17. The selling prices of the several allotments into which lands purchased under this act are subdivided, other than those set aside for townsite . and public purposes, shall be fixed by the board, so as to render such allotments as nearly as possible equally attractive, and calculated to return to tlie State the original cost of the land, together with a sufficient sum added thereto to cover all expenses and costs of surveying, improving, subdividing, and selling such lands, including the payment of interests, and all costs of engineering, superintendence, and administration, including the cost of operating any works built, directly chargeable to such land, and also the price of so. much land as shall on subdivision be used for roads and other public purposes, and also such sum as shall be deemed necessary to meet unforeseen contingencies. SEC. 18. Every approved applicant shall enter into a contract of purchase with the board, which contract shall among other things provide that the purchaser shall pay as a cash deposit a sum equal to 5 per cent of the sale price of the allotment, and in addition not less than 10 per cent of the cost of any improvements made thereon, and such applicant shall, if required by the board, enter into an agreement to apply for a loan from the Federal land bank under provisions of the Federal farm loan act for an amount to be fixed by the board, and shall pay to the board the amount of any loan so made as a partial payment on such land and improvements. The balance due on the land shall be paid in amortizing payments extending over a period to be fixed by the board, not exceeding 40 years, together with interest thereon at the rate of 5. per cent per annum. The amount due on improvements shall be paid in amortizing payments extending over a period to be fixed by the board not exceeding 20 years, together with interest thereon at the rate of 5 per cent per annum. The repayment of loans made on live stock or implements shall extend over a period to be fixed by the board not exceeding five years: Provided, however, in each case, that the settler shall have the right, on any installment date, to pay any or all installments still remaining unpaid. (As amended, Stats. 1919, p. 843.) SEC. 19. The number and amount of yearly or half yearly installments of principal and interest to be paid to the board under contracts of purchase shall be calculated according to any table adopted or approved by the Federal farm loan board. SEC. 20. Every contract entered into between the board and an approved purchaser shall contain among other things provisions that the purchaser shall cultivate the land in a manner to be approved by the board and shall
keep in good order and repair all buildings, fences, and other permanent improvements situated on his alloment, reasonable wear and tear and damage by fire excepted. Each settler shall, if required, insure and keep insured against fire all buildings on his alloment, the policies therefor to be made out in favor of the board and to be in Such amount or amounts and in such insurance companies as may be prescribed by the board. The board shall have power in its own name to insure and keep insured against fire all buildings or other improvements on any of the lands under the control of the board, and any contract of insurance heretofore made by the board is hereby ratified and confirmed. The board shall likewise have the power in any contract of purchase under which the board purchases lands as authorized in this act, to provide for the return by the board to the owner so selling to the State of any insurance premiums or taxes which may have been paid on said property by such owner, or for which such owner may have become obligated to pay, and any such agreement or contract of purchase heretofore made by the board is hereby ratified and confirmed. (As amended, Stats. 1919, p. 843.) SEC. 21. No allotment sold under the provisions of this act shall be transferred, assigned, mortgaged, or sublet in whole or in part, without the consent of the board given in writing, until the settler has paid for his farm allotment or farm laborer's allotment in full and complied with all of the terms and conditions of his contract of purchase. (As amended, Stats. 1919, p. 844.) SEC. 22. In the event of a failure of a settler to comply with any of the terms of his contract of purchase and agreement with the board, the State and the board shall have the right at its option to cancel the said contract of purchase and agreement and thereupon shall be released from all obligation in law or equity to convey the property and the settler shall forfeit all right thereto, and all payments theretofore made shall be deemed to be rental paid for occupancy. The board may require of the settler such mortgage or deed of trust or other instrument as may be necessary under the terms and conditions of the contract of purchase in order to adequately protect and secure the board. There may be included in such contract of purchase, mortgage, deed of trust or other instrument any Conditions with reference to Sale of the property or reconveyance back to the board or notice of such sale or reconveyance as may in the discretion of the board be required to be so included in such contract of purchase, mortgage, deed of trust or other instrument, in order to so adequately protect the said board in the premises; and any such contracts of purchase, mortgages, deeds of trust or other instruments heretofore executed are hereby confirmed. The failure of the board or of the State to exercise any option to cancel, or other privilege under the contract for purchase for any default shall not be deemed as a waiver of the right to exercise the option to cancel or other privilege under the contract of purchase for any default thereafter on the settler's part. But no forfeiture so occasioned by default on the part of the settler shall be deemed in any way, or to any extent, to impair the lien and security of the mortgage or trust instrument securing any loan that it may have made as in this act provided. The board shall have the right and power to enter into a contract of purchase for the sale and disposition of any land forfeited as above provided, because of default on the part of a settler, and this right may be exercised indefinitely without the necessity of advertising. (Added Stats. 1919, p. 845.) SEC. 23. Actual residence on any allotment sold under the provisions of this act shall commence within 6 months from the date of the approval of the application and shall continue for at least 8 months in each calendar year for at least 10 years from the date of the approval of the said application, unless prevented by illness or some other cause satisfactory to the board : Provided, That in case any farm allotment disposed of under this act is returned to and resold by the State, the time of residence of the preceding purchaser may in the discretion of the board be credited to the subsequent purchaser. SEC. 24. The power of eminent domain shall be exercised by the State at the request of the board for the condemnation of water rights and rights of way for roads, canals, ditches, dams, and reservoirs necessary or desirable for carrying out the provisions of this act, and on request of the board the attorney general shall bring the necessary and appropriate proceedings authorized by law for such condemnation of said water rights or rights of way, and the cost of all water right or rights of way so condemned shall be paid out of the land settlement fund hereinafter provided for. The board shall have full authority to appropriate water under the laws of the State when such appropriation is necessary or desirable for carrying out the purposes of this act.
SEC. 25. For the purpose of carrying out the provisions of this act the sum of $260,000 is hereby appropriated out of any moneys in the State treasury not otherwise appropriated. Of this amount, the sum of $250,000 shall constitute a revolving fund to be known as the land-settlement fund, which is calculated to be returned to the State with interest at the rate of 4 per cent per annum within a period of 50 years from he date of the passage of this act, on the daily balances representing the amounts drawn out of such fund and thus depleting the fund to an amount less than said sum of $250,000, which said daily balances shall be so calculated only on the amounts so drawn out of such fund, from the date of the passage of this act. The remaining $10,000 shall constitute a fund available for the payment of administrative expenses alone until such time as other moneys are available for such purpose from the sales of land as provided for in this act. (As amended, Stats. 1919, p. 844.)
Sec. 26. The State board of control is hereby authorized to provide for advances of money to the board needed to meet contingent expenses to such an amount not exceeding $5,000 as the said board of control shall deem necessary.
SEC. 27. The money paid by settlers on lands, improvements, or in the repay. ment of advances, shall be deposited in the land-settlement fund and be available under the same conditions as the original appropriation.. (As amended, Stats. 1919, p. 844.)
SEC. 28. The board shall have authority to make all needed rules and regulations for carrying out the provisions of this act. (As amended, Stats. 1919, p. 844.)
SEC. 29. The board is hereby authorized to investigate land-settlement conditions in California and elsewhere and to submit recommendations for such legislation as may be deemed by it necessary or desirable.
The board shall render an annual report to the governor and a copy thereof to the Secretary of the Interior, which report shall be filed and printed as required by sections 332, 333, 334, 336, and 337 of the Political Code, with the exception that they shall be so filed and printed annually instead of biennially, as provided in said sections. (As amended, Stats. 1919, p. 844.)
SEC. 30. The act of the legislature entitled "An act providing for the appointment of a commission to investigate and report at the forty-second session of the legislature relative to the adoption of a system of land colonization and rural credits and making an appropriation therefor," approved May 17, 1915, is hereby repealed.
SEC. 31. This act may be known and cited as the land-settlement act.
“For the purpose of carrying out the provisions of this act and of the act amended by this act, the sum of $1,000,000 is hereby appropriated out of any moneys in the State treasury not otherwise appropriated, which sum of $1,000,000 is calculated to be returned to the State within a period of 50 years from the date of this appropriation of $1,000,000 going into effect, with interest at the rate of 4 per cent per annum on the daily balances representing the amounts drawn out of such appropriation, and thus depleting the appropriation to an amount less than said sum of $1,000,000. The State controller is hereby authorized and directed to draw warrants upon such funds from time to time upon requisition of the board approved by the State board of control, and the State treasurer is hereby authorized and directed to pay such warrants."
The CHAIRMAN. The committee will stand adjourned until some time next week.
(Whereupon, at 12.15 o'clock p. m., the committee adjourned.)
COMMITTEE ON IRRIGATION OF ARID LANDS,
HOUSE OF REPRESENTATIVES,
Tuesday, February 3, 1920. The committee met at 10.15 o'clock a. m., Hon. M. P. Kincaid (chairman) presiding.
The CHAIRMAN. The committee will come to order. We were hear. ing Mr. Kibbey, I believe, when we stopped. You may proceed, Mr. Kibbey.
STATEMENT OF MR. WALTER B. KIBBEY-Resumed. Mr. KIBBEY. I believe the next section is section 4, and Mr. Hayden was reading the sections first.
Mr. HAYDEN. Section 4 reads:
SEC. 4. That the Secretary of the Interior is hereby authorized to sell such bonds, or any number thereof, whenever they can be sold at or above their par value, and to use the proceeds thereof, first, to reimburse the United States for expenditures theretofore made under authority of this act, and, second, for the construction of the works herein authorized. In the event any of such bonds so deposited with the Secretary of the Interior shall not be sold prior to the expiration of a period of five years from and after the announcement by the Secretary of the Interior of the completion of the work herein provided for, then the Secretary of the Interior may immediately sell the bonds so remaining in his possession at the highest price obtainable therefor in the open market; and in the event the price so obtained is less than the par value of such bonds, any and all districts or other organizations having issued any of the bonds which have been so sold for less than the par value shall bear the loss, and each district or other organization shall pay to the United States a sum or sums equal to the difference between the par value of the bonds issued by it and the amount received from such sale; and the Secretary of the Interior, prior to the time when any such district or other organization shall receive any benefit from the provisions of this act, shall require each such district or organization to enter into a contract or contracts with the said Secretary for the enforcement of this provision.
Mr. KIBBEY. This section is plain and heretofore explained.
SEC. 5. That upon default of any installinent of the principal or interest of any bond held by the Secretary of the Interior 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 or county 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 the failure of the State or county authorities so to do the Secretary of the Interior 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 the act, or any part thereof, are situated, is hereby vested with jurisdiction to enforce the provisions of this act.
Mr. Kibber. Under the California irrigation district law the assessment for the collection of bonds is first made by the district board; if they refuse to make the assessment, then the board of supervisors of the county are compelled to make that assessment for the district. That is found in sections 39 B, C, and E, and the amended irrigation act of 1917, and mandamus will lie to compel that assessment being made by the board of supervisors, or by the irrigation district as well.
There is only one additional feature in this section. We seek to give the Federal courts jurisdiction in those mandamus proceedings, as well as the local State courts.
The CHAIRMAN. Concurrent jurisdiction, isn't it?
Mr. WELLING. Is there any special significance under the California law to be attached to the phrase “ forced contributions”? What does that mean?