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Act of March 3, 1931 (46 Stat. 1057)

Proposed amendment That the Secretary of the Treasury That the act of March 3, 1931 (46 is authorized, upon request of the Sec- Stat. 1507), is hereby amended so as to retary of the Interior and upon approval provide that payments in reimbursement of the President, to transfer from time of moneys so advanced under that act and to time to the credit of the reclamation not heretofore repaid shall be inade by fund, created by the act of June 17, 1902 transfer annually from the reclamation (32 Stat. L. 388), such sum or sums sund to the general funds of the Treasury not exceeding in the aggregate $5,000,- beginning July 1, 1935. 000, as the Secretary of the Interior may deem necessary for the construction and operation of reclamation projects authorized under said act of June 17, 1902, and now under way, and acts amendatory thereof or supplementary thereto. Act of Mar 3, 1931 (46 Stat. 1057)

SEC. 2. That reimbursement of the moneys so advanced under the provisions of this act shall be made by transfer annually, of the sum of $1,000,000 from the reclamation fund to the general funds in the Treasury, beginning July 1, 1933. Act of January 31, 1931 (46 Stat. 1974)

Be it enacted by the Senate and House "The act of Congress approved of Representatives of the United States January 31, 1931, entitled "An act for of America in Congress assembled, That the relief of the Uncompahgre reclaif the Uncompahgre Valley Water mation project, Colorado" (46 Stat. Users' Association shall, under the 1974), is hereby amended to extend for contract of April 8, 1927, between the one year from and after January 1, United States and the association, on 1932, the time for beginning construcor before January 1, 1932, take over tion of drainage system upon the the operation, maintenance, and con- Uncompahgre project, and any and all trol of the entire Uncompahgre recla- construction charges accruing upon or mation project, Colorado, the Secretary for said project for or during the year of the Interior is hereby authorized to 1932 shall be deferred and included in enter into an amendatory contract and make payable as a part of the with the said association which shall project supplemental construction provide as follows:

charge provided for in said act of

January 31, 1931. First. All construction and operation and maintenance charges (exclusive of any operation and maintenance charges required to be paid by the association for the operation and maintenance of the project for the calendar year 1930) that were or shall be due and unpaid under said contract of 1927 on December 31, 1930, including the then unpaid deferred charges under articles 17 (1) and (d) of said contract (without interest and penalties on such deferred accounts) and the construction charge that becomes due on December 1, 1931, under said contract, may be included in and made payable as part of the project supplemental construction charge hereinafter mentioned. Interest and penalties heretofore paid on deferred charges under articles 17 (b) and (d) shall be remitted and credited against the association's obligation for supplemental construction.

Proposed amendment

Act of January 31, 1931 (46 Stat. 1974)

Second. During each of the years 1932 to 1937, both inclusive, the association shall have the right to expend for the construction of a drainage system such portion of the construction charge payable to the United States under said contract of 1927, as said association may consider necessary and as may be provided for by plans prepared by the association and approved by or on behalf of the Secretary of the Interior, the moneys so expended to be secured from construction charge assessments to be made to meet the regular construction charge installments that become due and payable under the said contract of 1927 on Dezember 1 of the years 1931 to 1936, inclusive. The amounts so expended by the association for drainage each calendar year from December 1 to November 30, for six years beginning with December 1, 1931, shall be credited to the annual construction charge that becomes due annually on December 1, of each year during the period of 1932 to 1937, both inclusive, the payment of the construction charges for which it is so substituted being in each case postponed to be paid later as a part of the supplemental construction charges authorized in item 3 hereof. Should the amounts so expended and credited annually be less than the annual construction charge for the years 1932 to 1937, both inclusive, the balance of each year's charge shall be payable to the United States in accordance with the contract of 1927.

Third. The amounts so expended and credited, the amounts postponed under the provisions of item i hereof, and any amounts of primary construction charges applicable to productive lands that shall not have become due and payable by the association under the contract of 1927, on or before December 1, 1961, shall be considered and defined as the project supplemental construction charge and shall be made payable by the association in annual installments of $85,000, the first installment of such supplemental construction charges to be payable on December 1, 1962, and a like installment on December í of each subsequent year until the total of the supplemental construction charge indebtedness is reduced to $85,000 or less, which remaining amount shall then be made payable as the last installment on December 1 of the calendar year next following the year in which the indebtedness is so reduced; and

Proposed amendment

Act of January 31, 1931, ( 46 Stat. 1974)

Fourth. No stock assessment levied by the association to raise payments due the Government on construction need be increased more than 15 per centum of the normal yearly per irrigable acre construction installment as provided in section 17 of the contract of April 8, 1927, to meet deficits or estimated deficits due to the failure of some of the association's stockholders to pay their assessments when due, any resulting delinquencies as established after foreclosure of maximum assessment liens in meeting installments of charges due the United States from the association to be paid as a part of the supplemental construction charge authorized in item (3) hereof.

SEC. 2. It shall be provided as a condition subsequent that said contract shall terminate and be annulled unless (1) the General Assembly of the State of Colorado at its twenty-eighth session enacts legislation, which becomes effective (a) authorizing a water users' association to be incorporated for a term of at least seventy-five years, and (b) amending chapter 76 of Colorado Session Laws, 1929, so as to permit the decree in proceedings to confirm a contract between such association and the United States to constitute as against parties defendant, including owners, lienors, and mortgagees of land in the district, an amendment of existing water-right contracts with individual landowners in the district, so far as the contract confirmed is inconsistent with such individual contracts; (2) the Uncompahgre Valley Water Users' Association thereupon extends its term of incorporation for at least seventy-five years from the date of such amendment of its articles; and (3) the association secures promptly a confirmatory decree, confirming such proposed contract with the United States under said amendment of chapter 76 of the Session Laws of Colorado, 1929.

Approved, January 31, 1931. Act of February 21, 1931 (46 Stat. 1202)

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That whenever a development of power is necessary for the irrigation of lands under the Grand Valley reclamation project, Colorado, or an opportunity is afforded for the development of power under said project, such development of power to be without expenditure of

Proposed amendment

Act of February 21, 1931 ( 46 Stat. 1202) money from the reclamation fund or from the Treasury of the United States, the Grand Valley Water Users' Association, with the approval of the Secretary of the Interior, is authorized to enter into a contract or contracts for a period of not exceeding twenty-five years for the sale or development of any surplus power or power privileges in said Grand Valley reclamation project, Colorado.

Approved, February 21, 1931.


CONGRESS FROM THE STATE OF MISSISSIPPI, AND CHAIRMAN OF THE COMMITTEE ON IRRIGATION AND RECLAMATION Mr. Hall. Mr. Chairman, I desire to call up House Resolution 152 for the consideration of the bill (H. R. 9489) for the temporary relief of water users on irrigation projects constructed and operated under the reclamation law.

The Committee on Irrigation and Reclamation think that this is not only sound and sane legislation but that it is rather imperative for the people on the projects in the West who are now suffering from the national depression.

I shall not take up any of the time of the committee. We have with us Mr. Smith, the ranking Republican member of the committee, and Mr. Taylor of Colorado.

The CHAIRMAN. This bill does not involve any expenditure of money, does it?

Mr. Hall. No. It changes some of the present set-ups in the Reclamation Bureau.

Mr. Smith will now address you.
The CHAIRMAN. We will be pleased to hear him now.



Mr. SMITH. As the chairman has said, this House resolution 152 provides for the immediate consideration of the bill (H. R. 9489) For the temporary relief of water users on irrigation projects constructed and operated under the reclamation law.

As you know, about 30 years ago Congress entered on the policy of reclaiming arid public lands by building reservoirs and placing water upon those lands. The law provided that settlers who went upon those lands should be required to reimburse the Government for its expenditures over a period years. When the policy was first adopted, it was thought that they could pay out in 10 years, but it was soon found that, because of the unusual expense of leveling the land, building laterals, and applying water to the land, it was impossible for them to make the payments in 10 annual installments; so that Congress, in its liberal consideration of the situation, gave them additional time in which to pay out. Even with this additional time, however, because of the low prices that the farmers are

receiving for their products, it has been necessary to come to Congress occasionally for relief.

Now, the reclamation policy, I know, has attracted some adverse attention from people living in other than arid States, but I wish briefly to call to the attention of this committee the fact that when Congress passed this law and adopted this policy, it was not only with the intention of enabling people to make homes upon the public domain, but it was also intended-and it has proved to be a correct idea-to develop markets for manufactured goods by enabling those people to build their homes and establish communities and cities. I wish to briefly state that under this policy there have been 40,354 irrigated farms established on the 26 Federal reclamation projects, with a population of 165,956. There are located on these projects 213 cities and towns, with a population of 472,723. There are 688 schools, 724 churches, and 120 banks with deposits of $134,261,170, and 225,014 depositors. I simply mention these facts to show you that we have developed on those projects a great civilization which is constantly making a demand upon the people who are furnishing us with our clothing, furniture, manufactured foodstuffs, automobiles, tableware, window glass, building material, and with everything that we use in connection with the daily living comforts of the people

. Therefore, this policy is not intended strictly for the benefit of the local people, but it is beneficial to the people all over the United States.

There are two reasons why we come before you this morning in connection with this legislation: The main reason is because of the fact that the low price of farm products has made it impossible for the farmers to sell their products at a price that will leave any margin of profit whatever. I have here a market statement from the Twin Falls News in the center of a large irrigation project in regard to the prices of farm products, as of the 18th of this month. This statement shows that eggs on that date were selling for 5 to 12 cents per dozen. That means that the farmers are receiving only from 5 to 12 cents per dozen for their eggs. We used to raise alfalfa and wheat on these projects, but we found that it was necessary for the farmers to diversify, and many of them started poultry farms. Many of them have gone into the dairying business. These low prices that they are receiving for eggs show that there is no profit whatever in that business. According to this statement, butterfat is bringing only 17 cents per pound; and Idaho No. 1 potatoes are bringing from 45 cents to 50 cents per hundred pounds to the farmers. For No. 2 Idaho potatoes, the farmer is receiving 15 cents and 20 cents per hundred pounds. You can therefore understand that because of the small price the farmers are receiving for their products it is impossible for them to meet these annual payments.

The Chairman. That is very true. As I understand the bill, it simply defers the time of the payment that they make to the Government.

Mr. Smith. Yes, sir.
The CHAIRMAN. It does not cancel anything?
Mr. SMITH. No, sir.

Mr. PURNELL. This is not involved with any new reclamation projects, is it?

Mr. Smith. No; it has no reference to any new irrigation projects. It is simply to take care of the water users now on the project.

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