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Beginning five years after such delivery of properties there shall be purchased and delivered to the United States on each semiannual interest date for cancellation bonds of such par value as added to the interest on bonds outstanding will produce approximately equal annual payments for the remaining years of the license period.

Licensees and irrigation districts to have option of delivering to the United States in lieu of such bonds any other bonds of the United States bearing an interest rate not less than the bonds issued on account of the project.

On receipt of project bonds the Secretary of the Treasury to cancel same, and on receipt of any other bonds of the United States delivered in lieu of project bonds the Secretary of the Treasury to call and cancel project bonds of the same par value. In order that the Secretary of the Treasury may know how many bonds to call for cancellation, the license to specify, or give authority to the administrative agency to specify, not less than six months in advance of time of delivery, the amount to be delivered.

Any lapse in payment of interest on outstanding bonds by the licensee to subject the license to cancellation, also any failure of the licensee during any five-year period to deliver to the United States the total of bonds required during such period. In case of such cancellation all rights of the licensee in properties to terminate.

Similar lapses by irrigation districts to forfeit any right to have reservoir operated in interest of flood control.

Either party liable for delivery of bonds to have option to deliver for cancellation at any interest date any quantity of project bonds in excess of required delivery which it may desire, or, upon adequate notice, any amount of other bonds of the United States authorized for delivery in lieu of project bonds.

9. Title to properties and rights.-When all bonds issued on account of that proportion of the cost assignable to power have been delivered and canceled and all interest charges on the same have been paid, the properties constructed or acquired from the proceeds of the project bonds to become the property of the licensee, subject, however, if the irrigation districts have fulfilled their obligations, to the requirement forever to maintain available for flood control the prescribed storage capacity, or so much thereof as may be necessary for such purpose. Thereafter, the properties to be maintained and operated on lands of the United States under the provisions of the Federal water power act in the same manner as if the properties had been originally built at the expense of the licensee.

When all bonds issued on account of that part of the project cost assigned to flood control have been delivered and canceled, and all interest paid thereon, the right to have the storage capacity provided for flood control, or so much thereof as may be necessary, operated for the benefit of the irrigation districts participating in the cost thereof, shall become a vested right in such districts, and the obligation to maintain such capacity or so much thereof as may be necessary, available for such purpose shall be an obligation running with the project and superior to any other claim thereon, or right or interest therein, so long as such districts assume the duty or the cost of controlling such capacity for such purposes.

10. Allocation of power.-In case of any dispute or disagreement between the licensee and any purchaser or prospective purchaser of power therefrom for distribution and sale to consumers respecting the allocation of power to such purchasers, and in case of any dispute or disagreement respecting the allocation of power to any State or group of States or to any municipality or group of municipalities, whether such power is transmitted and sold to consumers by the licensee or by a purchaser of power therefrom, the allocation of such power may, unless the matter comes within the "jurisdiction of the public service commission of the State within which such power is delivered or sought to be delivered, be heard and determined by the Federal Power Commission upon application by any party in interest, and any such determination to be binding upon the licensee and upon such purchaser: Provided, That neither the licensee nor such purchaser shall be required to make delivery of power in any specified territory except upon a finding by the commission that the revenues to be received appear sufficient to afford to the licensee or to the purchaser, as the case may be, a reasonable reimbursement of the cost of delivery, including a reasonable return upon the investment in plant or properties used and useful in effecting such delivery.

STATEMENT OF HON. WALTER F. LINEBERGER, NINTH CALIFORNIA CONGRESSIONAL DISTRICT

Mr. LINEBERGER. It is contended by the proponents of the project known as the Boulder Canyon dam and all-American canal that the development is truly a national problem. The benefits to be derived from its construction and the sentiment of the people might well be referred to to ascertain this fact.

The engineering and technical problems have been well presented to your committee; also the benefits that will flow from the consummation of this great project, to which numerous witnesses have testified. I wish here to call to the attention of your committee the desire and keen interest of the people, not only of the Southwest, but of the Nation in the conservation of a great national asset.

This I can only do by presenting the indorsements of many organizations which are familiar with the investigations and recommendations made by the Department of the Interior and who recognize the importance of the matter.

One of the outstanding organizations that has indorsed this project and has consistently labored for its realization, is the American Legion. On many occasions the local posts in southern California have passed resolutions urging that the Government undertake this work. The State organization of the American Legion, in its regular session assembled, passed resolutions urging its consummation. The national organization of the American Legion, recognizing the benefits that will flow to the people of this entire country, strongly indorsed the project and urged that Congress pass suitable legislation that it might be accomplished.

Most all of the Farm Bureau organizations of southern California have indorsed the Swing-Johnson bill and the recommendations made by the Secretary of the Interior to Congress for the completion of the Boulder Canyon dam and all-American canal.

The organization of farm bureaus assembled in San Francisco, representing all the organizations of the State of California, unanimously indorsed the project. The national organization of farm bureaus not only by resolution indorsed the project, but Mr. Gray Silver, the Washington representative, appeared before committees urging that the Congress take action looking toward its construction.

Labor organizations of the Southwest have indorsed this project by various resolutions, and the State labor organizations in their annual assemblies have likewise passed such indorsements. The national labor organizations, cognizant of the sound governmental policy here involved, have, through appropriate resolutions, indorsed the project.

Boards of supervisors of southern California, representing 13 counties, have passed strong resolutions indorsing this project. Nearly every civic organization in the county of Los Angeles has passed resolutions urging upon the Congress the consummation of this work. Recently an election in the city of Los Angeles was held and the people expressed their desire by an overwhelming vote that this work go forward. It was, in fact, the main issue in the mayoralty campaign of the city of Los Angeles. And here it might

be well to note that nearly half the population of the State of California, consisting of approximately 5,000,000 people, reside within the county of Los Angeles.

Resolutions have been passed by the various Republican and Democratic county central committees of southern California strongly indorsing the recommendations made by the Department of the Interior calling for this great improvement.

All these manifestations of the people, prompted as they are by an urgent necessity, can lead to no other conclusion than that the people's will must be reckoned with and that it is the duty of the representatives to advance this cause, especially when the project is so sound in its inception and the benefits that will flow from its construction so numerous.

REPUBLICAN COUNTY CENTRAL COMMITTEE,

Los Angeles, December 5, 1925.

Hon. WALTER F. LINEBERGER, House of Representatives, Washington, D. C. DEAR CONGRESSMAN LINEBERGER: I beg to inclose you herewith copies of resolutions covering the action taken by the executive committee of the Republican county central committee of Los Angeles County relative to the development of the Colorado River project.

These resolutions are sent you pursuant to the action of the committee and in confirmation of the published reports which have heretofore given you knowledge of said action.

Respectfully,

GEORGE B. BUSH, Secretary.
DECEMBER 1, 1925.

Resolved, That copies of the resolution this day adopted by the executive committee of the Republican county central committee of Los Angeles County be mailed to the President of the United States, the Vice President of the United States, the Secretary of the Interior, the two California United States Senators, the 11 members of the House of Representatives from California, and to Chariman McNary of the special senatorial committee on the Colorado River.

Whereas it is vitally necessary that the Colorado River be immediately controlled and regulated by means of a high dam in order to permanently protect those sections in both Arizona and California which are exposed to an everincreasing flood menace; and

Whereas practically every municipality in southern California now faces the necessity of going to the Colorado River to secure large additional supplies of domestic water which can be made available only by the construction of a high dam at or near Boulder Canyon; and

Whereas the entire Southwest, particularly southern California, now stands in urgent need of the hydroelectric power that will be made available by a high dam at or near Boulder Canyon; and

Whereas the United States Government should lend its assistance so far as practicable and when found feasible to the building of the necessary canals and distributing works in order that the water so conserved may be distributed to the lands within the United States which are now or may hereafter be irrigated by such waters, and that such canals and distributing works be located within the territory of the United States; and

Whereas the waters conserved by the erection of the above-mentioned dam should be used for the irrigation and reclamation of lands within the United States, and that proper provision should be made in order that the United States soldiers, sailors, and marines may obtain the benefit of such reclaimed lands; and

Whereas the lower basin States can with safety approve the seven-State pact only with adequate storage provision at or near Boulder Canyon, as recommended in Senate Document No. 142; and

Whereas the Federal Government, through the Department of the Interior, has made an exhaustive study and survey of the problems of the lower Colorado River, with the view of eliminating the present flood menace of this

stream and at the same time providing for the development of its vast water and hydroelectric resources for the benefit of interested States and communities in the Southwest; and

Whereas the Department of the Interior, in Senate Document No. 142, has filed with the Congress of the United States definite recommendations for the procedure to be adopted by the Government in the development of this river; and

Whereas it has been conclusively demonstrated by interested communities and agencies that the sale of power rights at the dam site will repay the Government within a period of years the entire cost of this structure, plus interest on the money invested: Now, therefore, be it

Resolved, That the executive committe of the Los Angeles County Republican central committee does hereby endorse the proposed construction of a high dam at or near Boulder Canyon that will provide the maximum storage and power possible, giving to political subdivisions a preference in the allocation of power and/or water made available thereby, and the construction of an all-American canal or canals entirely within the United States, and urges the administration to sponsor or support such a measure, and pledges its active support to the end that this proposed legislation shall be enacted into law at the coming session of the Sixty-ninth Congress.

DECEMBER 16, 1925.

REPUBLICAN COUNTY CENTRAL COMMITTEE,

Los Angeles, Calif.

DEAR FELLOW REPUBLICANS: Am in receipt of the resolution adopted December 1 indorsing a high dam at or near Boulder Canyon and the all-American canal. As an engineer I have long believed in the advisability and practicability of both of these projects and am glad to know that it meets with your approval.

Thanking you for bringing this to my attention, and with kind regards, I am, Very truly yours,

WALTER F. LINEBERGER.

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STATEMENT OF JOHN MORROW, REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW MEXICO, CONCERNING THE COMPACT UPON THE COLORADO RIVER

Mr. MORROW. In stating my position and the position of the people I represent in the State of New Mexico, I will say that the people of my State desire the fullest development of the waters of the Colorado River but not until a compact has been ratified by all seven States within the basin.

There is no justice or sense of fairness in any one of the the seven States staying out of a compact that tends to allocate the water equitably between each of the seven States.

Nothing should be permitted in the way of power development, permits, or appropriations for irrigation to any one of the seven States until all have ratified the compact.

The present San Carlos project in the State of Arizona, to irrigate the lands of the Pima Indians, and a greater number of white settlers who are getting the benefit of this project under the guise of its being used for the Indians, should stop where it is until the compact is ratified by the State of Arizona. This project attempts to take the waters of the Gila River for the irrigation of 80,000 acres of land under the San Carlos project by Arizona, before the compact is signed, and will prove an injustice to the upper basin States, more particularly to the State of New Mexico where the Gila River rises, and where its main tributaries are found, receiving its waters from

the protected areas included in the Datil and Gila forest reserves of New Mexico, where an almost equal area of land can be successfully irrigated from the waters of the Gila and its main tributary, the San Francisco. New Mexico stands ready to do equity to all of the basin States but resents selfish action by any one State until the compact is ratified by all seven States.

PROCEEDINGS OF THE COLORADO RIVER CONFERENCE HELD IN THE SENATE CHAMBERS, STATE CAPITOL BUILDING, PHOENIX, ARIZ,, August 17, 1925

DELEGATES

California; Senator Ralph E. Swing, of San Bernardino, chairman; Assemblyman A. C. Finney, of Brawley, secretary; Senator L. L. Dennett, of Modesto; Assemblyman Walter J. Little, of Los Angeles; Arthur P. Davis, Oakland, engineer.

Nevada Charles P. Squires, Las Vegas, chairman; George A. Cole, Carson City; George W. Borden, Carson City; Levi Syphers, St. Thomas.

Arizona: Cleve W. Van Dyke, of Miami, Chairman; H. S. McCluskey, of Phoenix, secretary; Thomas Maddock, of Phoenix; F. A. Reid, of Phoenix; A. C. McGregor, of Warren.

Chairman VAN DYKE (of Arizona). Gentlemen, if you will take seats we will proceed with our business in hand. I wish to state for Arizona that we are glad to meet the delegates from the other States. I hope that we will be able to accomplish something for the mutual welfare of the Southwest. We have with us this morning our governor, and I take great pleasure in introducing our governor to you, who has a few remarks to make. [Applause.]

Gentlemen, you meet here to-day in conference in an endeavor to find a remedy for, and to reconcile some of the defects contained in, the Colorado River compact, which was negotiated at Santa Fe, N. Mex. This compact purports to allocate the waters of the Colorado River in accordance with the terms of a uniform law passed by Congress and the seven States in the Colorado River Basin. By referring to the law you will ascertain the fact that it authorizes a compact apportioning the water of the Colorado River "between the States."

The first fundamental error in the compact is that it does not apportion the water as authorized by law "between the States," but between arbitrary divisions called basins, the "upper" and the "lower" basins, and this was done without consideration of conditions existing in the two arbitrary basins created. Under the arbitrary conditions established for the division of the water, Arizona, due to economic conditions, is subject to the same difficulties as the upper basin States and by signing the compact would, in competition with California, be signing away all her rights and hopes for future development. The second fundamental error in the compact is that all of the water that the upper basin States can ever use (and some eminent engineers claim more water than they can ever use) has been apportioned to them, while insufficient water was allocated to the lower basin to irrigate all of the lands susceptible to feasible development, and in return for this advantage in allocation of water they give nothing to the lower basin either in recognition of rights, of storage facilities, or otherwise, unless we except possible freedom from legislative and departmental coercion and threatened lawsuits.

The third defect in the compact is that no provision is made to prevent water stored in the United States when it is released and the low water flow increased from being applied to Mexican lands and possible water rights acquired in that country.

The fourth defect is that in the allocation of water the upper basin States will be served from the normal flow of the river, while the lower basin must depend on storage, and no allowance is made for evaporation losses which will result to the lower basin from the stored water.

Other defects exist which I shall touch on later.

What is the reason for any compact being negotiated which sets aside the present well established and defined water laws which govern the utilization of water in all of the States of the basin and the principles of which were held by the United States Supreme Court to govern as between the States in the basin? The only answer that can be made, logically and truthfully, is that it is dictated by the farsighted business acumen of some of the States in

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