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DEPOSITED BY THE
UNITED STATES OF AMERICA

APR 2 5 '36

TABLE OF CONTENTS

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Amendment to Emergency Farm Mortgage Act of 1933 permitting irriga-
tion districts to make loans from Reconstruction Finance Corporation__

Amending act of May 25, 1926, with respect to Langell Valley irrigation

district__.

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SMITH MEMORIAL TABLET AT ELEPHANT BUTTE DAM

An act authorizing the William Robert Smith Memorial Association of El Paso, Texas, to construct a memorial in honor of William Robert Smith, former Member of Congress from the Sixteenth District of Texas. (Act February 23, 1932, 47 Stat. 53)

[Tablet authorized to be constructed without cost to United States.]— That the William Robert Smith Memorial Association of El Paso, Texas, be, and it is hereby, authorized to construct without cost to the United States a memorial tablet at or near the site of Elephant Butte Dam, New Mexico, in honor of the work of William Robert Smith, former Member of Congress from the Sixteenth District of Texas, in behalf of the Elephant Butte project and of irrigation in the Southwest.

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MORATORIUM ON CONSTRUCTION CHARGES FOR 1931 AND 1932

An act for the temporary relief of water users on irrigation projects constructed and operated under the reclamation law. (Act April 1, 1932, 47 Stat. 75)

[Sec. 1. Construction charges for 1931 suspended; for 1932, 50 percent of amount payable suspended-Interest and penalty Rate for sale of power, season of 1931.]-That any irrigation district, water-users' association, or other water-users' organization under contract with the United States for payment of construction charges under the act of June 17, 1902 (32 Stat. 388), or acts amendatory thereof or supplementary thereto, including the act of February 21, 1911 (36 Stat. 923) (upon acceptance of this act by resolution of its board of directors or corresponding body), shall be required to make no payment on the regular construction charge for the calendar year 1931, and in lieu of the regular installment of construction charge provided for under existing contracts, may pay for the calendar year 1932 on the basis of 50 per centum of the amount which, but for this act, would be payable under said contracts, such amount to be computed and determined for that year in the manner provided in said contracts and the law applicable thereto. Interest and penalty as now provided by law and contracts for nonpayments when due shall apply on all charges for 1932 adjusted as herein authorized; and otherwise the deferred payments herein authorized shall bear interest until paid at such rate, and shall be paid at such times, as the Secretary of the Interior shall determine: Provided, That in determining the rate for the sale of power during the irrigation season of 1931 to irrigation districts from any power plant operated by the Bureau of Reclamation, interest on the cost of the power system shall not be included as an element, but interest at the rate of 2%1⁄2 per centum per annum shall be included as an element of such rate for the sale of power to such districts during the irrigation season of 1932: And provided further, That the payments for construction charges and interest payments on the cost of the power systems referred to in this act shall not be deemed waived, but only deferred, and shall be paid as provided in this act.

NOTES

A typographical error occurs in the sixth line of this section. The citation following "act of February 21, 1911” should be "(36 Stat. 925)" instead of "(36 Stat. 923)."

Procedure. The Secretary of the Interior fixed the interest rate of 5 percent per annum on deferred payments of construction charges under this act (C. L. 1995). But see act of March 3, 1933, and C. L. 2044. C. L. 1995 and C. L. 2000 outline the procedure to be followed pursuant to this act. By authority of C. L. 2000 partial payments may be made from time to time on deferred charges. C. L. 2039 promulgates Departmental decision regarding nonpayment of annual interest charges when due under this act. C. L. 2060 supplements C. L. 2044.

Amendment.

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Certain provisions of this act were extended by the act approved March 3, 1933. (See page 34.) See also act of March 27, 1934, 48 Stat. 500, page 62. Construction charges, Grand Valley project. By departmental decision M-27214 of October 5, 1932, it was held that the 1931 and 1932 construction charges on the Grand Valley project could be extended under section 1 of the act of April 1, 1932, and made repayable as provided in section 4 of the act, the charges extended to bear interest at the rate of 5 percent per annum, payable annually, in accordance with the departmental determination under section 1 of the act.

But see the proviso to section 1 of the act of March 3, 1933, regarding interest rate, and C. L. 2044.

Construction charge to which act applicable. Under its contract of October 23, 1918, with the United States, the Imperial irrigation district received the right to use the Laguna Dam constructed by the United States across the Colorado River in connection with the Yuma project, agreeing to pay therefor the sum of $1,600,000. The Department held that this was a construction charge to which the 1932 relief act is applicable. (Letter from the Secretary to Hon. L. W. Douglas, M. C., April 15, 1932.)

Payment for water rental not a credit upon construction charge. In letter of July 15, 1932, to the Commissioner of Reclamation the Department held that the Secretary is without legal authority to grant the request of the Westland irrigation district, McKay Reservoir, Umatilla project that the payment made by the district for water rental during 1931 be considered a construction charge payment made for 1931 within the meaning of section 1 of the 1932 relief act.

Deferment of interest payments on cost of power system.-Citing the provisos of section 1 of the act of April 1, 1932, in letter of July 25, 1932, to the Bureau, the Department denied the petition of the Gem irrigation district, Owyhee project, that the charges to be deferred under the act be set over for repayment at the end of the 40-year period provided in the contract of October 14, 1926, relative to repayment of the district's proportionate share of the cost of the project, and ruled that the deferred charges shall be paid over a term of 5 years after the last installment shall become due under the existing contract for furnishing electrical energy.

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Construction costs against Indian-owned lands.—The act of July 1, 1932 (47 Stat. 564), provides that "the collection of all construction costs against any Indian-owned lands within any Government irrigation project is hereby deferred, and no assessments shall be made on behalf of such charges against such lands until the Indian title thereto shall have been extinguished.' In opinion of the Solicitor, M-27239, approved by the Department November 25, 1932, it was held that the act of July 1, 1932, supra, is applicable only to Indian irrigation projects and does not defer construction charges due or payable to the reclamation fund. Attention was called in the opinion to the act of April 1, 1932 (47 Stat. 75), covering the matter of deferment of the payment of construction charges on Government irrigation projects constructed by the Bureau of Reclamation.

Power Revenues.-See note under section 8 of this act entitled "Power revenues-Salt River project."

Simple interest at the rate of 5 percent per annum should be collected on annual interest payments after they fall due until they are paid, but they are not subject to a delinquent penalty, as remedies for nonpayment of charges provided in the statutes are not applicable to nonpayment of interest. If neither contract provisions nor statutes are applicable, suit can be entered and judgment obtained in accordance with the law of the particular State involved. Instructions of Assistant Secretary, dated October 19, 1932.

SEC. 2. [Individuals granted same relief as organizations, where no organization on project.]-On projects or divisions of projects where no irrigation district, water-users' association, or other water-users' organization has assumed joint obligation for payment of construction charges individual water-right applicants or entrymen upon acceptance of this act in a manner satisfactory to the Secretary of the Interior, shall be required to make no payment on the regular

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