credit, called for in the bill, since the Department naturally has had much experience in this field and has personnel and facilities for rendering the agricultural and credit services required which the Department of the Interior, I am sure, would not wish to duplicate.

The Bureau of the Budget has advised this Department that this bill would not be in conflict with the program of the President.

Sincerely,

GROVER B. HILL,
Assistant Secretary.

After informal discussion of the bill by the members of the committee, Hon. J. F. O'Connor offered the following motion which passed unanimously:

I move that the chairman of the committee appoint a subcommittee of five members, of which the chairman shall be an ex officio member, to redraft H. R. 6522 limiting its operations to the scope of antispeculation in the land affected and giving the Government the right to acquire from private owners the land in this project required under this bill, and that this legislation provide for making the contracts with the duly organized irrigation districts.

LETTER FROM THE PRESIDENT CONCERNING H. R. 6522

Hon. COMPTON I. WHITE,

House of Representatives.

THE WHITE HOUSE, Washington, April 29, 1942.

MY DEAR MR. WHITE: I am deeply interested in your bill, H. R. 6522, now pending before the Irrigation and Reclamation Committee of the House of Representatives. The great Grand Coulee Dam, Columbia Basin irrigation project, provides the United States with the opportunity to create from lands now covered with sagebrush fine new communities in which 350,000 people may live.

The Federal Government, which is building the project, will not have discharged its duty until it has seen the project through the settlement and early development period. We cannot afford to risk failure of the project through the adoption of short-sighted policies with respect to the settlement and development of the lands. Yours is a forward-looking bill which makes adequate provision for a balanced settlement program during the critical period which will confront the project. Upon its enactment, returning servicemen and industrial workers with farm background who desire to return to the land will be given an opportunity to make homes and a decent living for themselves. The same opportunities will be extended to worthy farmers in other areas where the pressure of population or disaster from drought or other causes has made it necessary for them to migrate. The plan of settler selection proposed in the bill also permits the giving of preference, within reasonable limits, to worthy and qualified settlers who may need special financial assistance.

I consider it important that the bill provide for such a balanced settlement policy, so that project development can go forward effectively after the present emergency.

Sincerely yours,

FRANKLIN D. ROOSEVELT.

THE SUBCOMMITTEE AND THE REDRAFT OF THE BILL

Pursuant to the motion passed by the committee at the meeting held on April 29, Hon. Compton I. White, chairman, appointed a subcommittee to redraft the bill H. R. 6522. The subcommittee met on May 28 and received a memorandum from Commissioner John C. Page, of the Bureau of Reclamation, together with a redraft, which was taken under consideration. The memorandum and redrafted bill follow:

MEMORANDUM FOR THE IRRIGATION SUBCOMMITTEE ON THE REDRAFTING OF H. R. 6522

UNITED STATES DEPARTMENT OF THE INTERIOR,

BUREAU OF RECLAMATION,
Washington, May 28, 1942.

MEMORANDUM FOR THE IRRIGATION SUBCOMMITTEE ON THE REDRAFTING OF H. R. 6522

Attached is a redraft of H. R. 6522 in accordance with my understanding of what the committee wishes to have included in a restatement of the bill.

Stated in the order in which these matters are covered by the redraft, I understand the redraft is intended to be confined (1) to a restatement of the requirements to be met before construction may be initiated on certain of the irrigation features of the project, such as the making of the district repayment contracts; (2) to making the necessary amendments to the antispeculation features of the 1937 act and those features of the 1937 act that are necessarily closely interrelated to the antispeculation features; and (3) to a statement of the authority for the acquisition of privately owned lands and authorities incident to the administration and disposition of such lands.

It is our firm conviction that the accomplishment of (1) and (2) require such sweeping changes in the present act that, as was proposed in H. R. 6522, it remains necessary to restate the entire statute. There follows a section-by-section analysis of the new draft, showing what each section does and where, in our opinion, it fits into the committee's general outline for the redraft.

Section 1: This section does two important things:

(1) It puts the project squarely under the 1939 act for irrigation repayment purposes.

(2) It effects a change in the name of the project.

The section is simple and short. It is essential since it is necessary to dispense with the 1937 act.

Section 2: This section has three important features: It sets up the condi tions to initiation of certain irrigation works construction; it sets up the llmitations on size of landholdings and deliveries of water; and it, with section 3, contains the revised antispeculation features. Each subsection is described below.

Subsection (a): This redefines the conditions precedent to initiation of construction of certain project irrigation features. This is in strict accord with the committee's direction.

Like the 1937 act the redraft requires, as one condition, appraisal of all land in the project. Restatement of the provision of the 1937 act is necessary to provide for reappraisals from time to time in the administration of the antispeculation features of the bill and the land purchase authority.

Like the 1937 act, the redraft requires execution of district repayment contracts as a condition to initiation of construction. Restatement of the 1937 act is required, however, to provide a workable basis for determination of the costs to be repaid by the water users.

Subsection (b):

Subdivision (i): This deals with the problem of establishing the farm units on public and private lands. Like provisions now appear in the 1937 act. But the 1937 act needs to be rewritten in this particular to change the upper limit to 160 acres and to permit setting up of part time units of less than 10 acres ; to define the term "landowner" so as to cover loopholes with respect to the holding of farm units; to give authority for revision of farm unit plats from time to time; and to provide the basis for voluntary and cooperative adjustments of Jandholdings in advance of establishing farm unit plats.

This provision is the key to the operation of a farm unit arrangement that takes into account variations in quality and suitability of land. Also, it is essential to operation of the plan for disposal of excess land, for it is on the basis of this provision that what is excess land is determinable.

These provisions go no further than provisions of existing law, but restatement of existing provisions is required to meet the special problems of this project.

Subdivision (ii). This states the limitations on the size of holdings which are entitled to receive water from the project. It is a necessary adjunct of any provision on the permitted size of landholdings. Here also appear the definitions of "landowner" and like terms.

Subsection (c): This, with section 3, contains the revised antispeculation features of the bill. It is an essential restatement of the major part of the 1937 act. Its inclusion in the redraft is in strict accord with the committee's desire. The subsection requires each landowner, as a condition to receiving water, to execute a contract agreeing that: (a) When he sells his lands within the period ending 10 years after water is available he will sell at not to exceed the appraised prices; (b) excess lands may be sold for him at the appraised prices (but not piecemeal without his consent); (c) excess lands may be purchased by the United States at appraised prices; and (d) that if sales are made in violation of the agreement the land's water right may be cancelled and the buyer will have available civil remedies either to rescind the transaction or to bring it into accord with appraised values.

Subsection (d): This requires repayment contracts to carry provisions on water delivery to accord with the requirements of the bill.

Subsection (e): This sets out certain provisions that may be incorporated in the repayment contracts. Subdivisions (i), (ii), and (iii) deal with land in a district not covered by the "antispeculation" contracts. Subdivision (iv) would permit withdrawal of lands from districts within a limited time.

None of these provisions appears in the 1937 act. They are required now to permit the making of repayment contracts on a basis that will meet specific problems raised by the districts and certain landowners.

Subsection (f): This deals with a technical title problem growing out of the antispeculation features of the bill. It is identical with Bureau amendment No. 7 proposed to H. R. 6522.

Section 3: This is an important part of the antispeculation features desired by the committee.

Subsections (a) and (b) provide penalties for fraudulent misrepresentation in sales of land in the project area. No such provisions appear in the 1937 act. Subsection (c) provides the civil remedies for vendees who have been induced to purchase project lands at excessive prices. This ties in directly with subsection 2 (c).

Section 4. This section contains the necessary authority for the acquisition of lands and the related authority to dispose of them. Inclusion of the acquisition authority is in strict accord with the Committee's direction. Nothing was said concerning disposition, but this is an authority necessarily adjunct to acquisition. There has also been included in this section authority to improve land by clearing, leveling and preparing it for handling of water and to provide domestic water.

There has been excluded all authority concerning loans to settlers and the construction of improvements such as buildings and fences.

Subsection (a) contains the authorities above described.

Subsection (b) contains the authority to lay out townsites, schoolsites, grazing units, etc., on lands of the United States in the project area.

Subsection (c) states the limitations to govern the making of sales and leases of public and acquired lands. It also provides for limitations in the selection of purchase applicants.

Subsection (d) makes acquired lands subject to assessment under State laws as public lands are under the act of August 11, 1916, as amended. It also provides for State taxation of lands under contract of sale by the United States.

Subsection (e) provides, conditioned on Presidential approval for cooperation between Federal agencies and the State in the program of land acquisition, development and settlement.

Section 5: This provides for payments in lieu of taxes from revenues derived from the lease of acquired lands.

Section 6: This authorizes appropriations and sets up a necessary special account in Treasury's books.

Section 7: This is a necessary restatement of subsection 1 (c) of the 1937 Act relating to the requirement of companion State legislation. For reasons of limitations in the State constitution, the provision of the 1937 act is not adequate.

Sections 8, 9, 10, and 11 are necessary provisions that are brief and selfexplanatory.

The bill, we believe, has now been reduced to its essentials to permt (1) the making of adequate repayment contracts recognizing the high desirability of farm unit limitations that take account of differences in land quality; (2)

the control of speculation on a sound basis; and (3) the acquisition and disposal of land, as an aid to providing holders of excess lands with a means of conforming their holdings to the limitations of the bill.

JOHN C. PAGE, Commissioner.

THE REDRAFTED BILL

[H. R. 6522]

A BILL

A BILL To amend an act entitled "An act to prevent speculation in lands in the Columbia Basin prospectively irrigable by reason of the construction of the Grand Coulee Dam project and to aid actual settlers in securing such lands at the fair appraised value thereof as arid land, and for other purposes" (Act of May 27, 1937, 50 Stat. 208), and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act entitled "An Act to prevent speculation in lands in the Columbia Basin prospectively irrigable by reason of the construction of the Grand Coulee Dam project and to aid actual settlers in securing such lands at the fair appraised value thereof as arid land, and for other purposes," approved May 27, 1937 (50 Stat. 208), is hereby amended to read as follows:

"SEC. 1. In addition to the purposes for which the Grand Coulee Dam project (hereafter to be known as the 'Columbia Basin Project' and herein called the "Project') was authorized under the provisions of the Act of August 30, 1935 (49 Stat. 1028), which are the primary purposes of such project, the project is hereby authorized and reauthorized as a project subject to the Reclamation Project Act of 1939; and the provisions of said Act of August 30, 1935, together with the Reclamation Project Act of 1939 and the specific provisions of this Act shall govern the repayment of expenditures and the construction, operation and maintenance of the works constructed as a part of the project.

"SEC. 2 (a). No part of the funds heretofore or hereafter appropriated or allotted for the construction of the project or for the reclamation of land in connection with the project, shall be expended in the construction of any irrigation features of the project, exclusive of Grand Coulee Dam and appurtenant works now under construction and of the pumping plant and equalizing reservoir and dams, until after the following provisions have been complied with: "(i) The lands proposed to be irrigated under the project (including county lands and such State lands as the State may desire and be able to subscribe for irrigation under the project and to subject to the terms of this Act) shall have been impartially appraised by the Secretary of the Interior (hereinafter called the secretary) for the determination of their value at the date of appraisal without reference to the proposed construction of the said irrigation works and without increment on account of the construction of the project. In the administration of sections 2 and 3 hereof it may be necessary from time to time to reappraise such lands. In such reappraisals the Secretary shall take into account, in addition to the value found in the first appraisal, improvements made after said appraisal and such construction charges on the land as have been paid. The term 'appraised value' as used in sections 2 (b) and (c) and 3 shall mean appraised values determined as provided in this subsection. Reappraisals may be made at any time upon the request of the landowner concerned accompanied by an advance to the United States of fifteen dollars ($15) for each quarter section or fraction thereof involved, on account of expense thereof.

"(ii) A contract or contracts shall have been made with an irrigation or reclamation district or districts or a conservancy district or districts organized under State law providing for payment by the district or districts of that part of the cost of construction of the project determined by the Secretary as the part thereof to be repaid by said district or districts. The contract or contracts shall require repayment within such term or terms of years as the Secretary may fix, not to exceed the maximum term permitted under the Act of June 17, 1902 (32 Stat. 388) and Acts amendatory therof or supplementary thereto (hereinafter called the Federal reclamation laws), and provide that payments shall be enforceable by all means and remedies provided in the Federal reclamation laws. Said contract or contracts shall also conform to the special requirements of this section.

"(b) (i) Prior to the initial delivery of water to each irrigation block, as said term is defined in section 2 (k) of the Reclamation Project Act of 1939, the Secretary shall establish and shall file in the office of the county auditor of the county or counties in which such block is located a farm-unit plat setting forth the farm units within such block in sizes and with boundaries which are in accordance with his findings of the respective areas sufficient in size for the support of an average-sized family at a suitable level of living, in view of the various classes and combinations of classes of land within such block, of the land's topography and its relation to an economical distribution system and of other factors which, in his judgment, should be considered.

"No farm unit shall contain more than one hundred and sixty (160) or less than ten (10) acres of irrigable land, except that, whenever the actual irrigable area of any nominal quarter section exceeds one hundred and sixty (160) acres, the full quarter section may be included in one farm unit, and except that on lands owned by the United States in each irrigation block, units of lesser size may be established for part-time farming purposes.

"To the end that such farm unit plats may be laid out within each irrigation block in a manner best promoting the successful settlement and economical development of the project, notice of the intention to establish a given farm unit plat shall be given not less than sixty (60) days prior to the filing of such farm unit plat by publication in the county or counties in which the irrigation block is located. Each owner of land within the irrigation block to which the. notice relates may, at the time or the times and place specified in such notice, examine the farm unit plat proposed, and, in cooperation with the United States or other landowners, may conform the lands so owned by him, to the fullest extent practicable in the Secretary's judgment, by purchase, sale or exchange at the appraised values, to the area and boundaries of the farm unit or units shown on said proposed plat or revisions thereof. The Secretary, with the consent of the owners of all farm units affected, may revise from time to time the established farm unit plats to the extent necessary or advisable to meet conditions that may arise during the development of the project.

"As to land held by an owner who had equitable or legal title thereto on May 27, 1937, or heir or devisee of such owner, the farm unit or units, as established or revised, shall be laid out to afford such owner or heir or devisee, to the fullest extent consistent, in the Secretary's judgment, with successful settlement and economical development of the project and subject to the other provisions of this subsection (b), an area comprising said lands of not to exceed the maximum irrigable acreage permitted in this subdivision (i).

"(ii) No water shall be delivered from, through or by means of the project works to or for lands not conforming in area and boundaries with the area and boundaries of the pertinent unit or units established in the farm unit plat or plats applicable to the lands involved. Water shall not be delivered from, through or by means of the project works to or for more than one farm unit held by any one landowner, except as to lands held as permitted by the last paragraph of subdivision 2 (b) (i) while held by an owner, his heirs or devisees as therein defined. Lands within the project in excess of one farm unit held by any one landowner shall, except as otherwise provided in this Act, be deemed excess land: Provided, That if excess land is acquired by foreclosure or other process of law, by conveyance in satisfaction of mortgages, by inheritance or by devise under will, water therefor may be furnished temporarily for a period not exceeding five years from the effective date of such acquisition, thereafter ceasing until the transfer thereof to a landowner duly qualified to secure water therefor.

"As used in this Act, the terms 'owner,' 'landowner,' and 'any one landowner,' denote any person, corporation, joint stock association, or family; the term 'family' denotes a group consisting of either or both husband and wife, together with their children under eighteen (18) years of age, or all of such children if both parents are dead; the term 'their children,' includes the issue and lawfully adopted children of either or both husband and wife; and the term 'lands within the project,' denotes those lands within the boundaries of the existing Columbia Basin irrigation districts, or extensions thereof approved by the Secretary, which the Secretary determines may be supplied with water from, through, or by means of the project works. Lands shall be deemed to be held by a family, if held as separate property of husband or wife, or constitute a part or all of the their community property, or, if they are the property of any or all of their children under eighteen (18) years of age.

69725-42-15