Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1906-09-10

and, settlement could be made profit
able.
The fallacy in the proposition first
mentioned lies in the divided control
and ownership of the land and water,
and will reiterate the statement for
the sake of emphasizing it. that no
irrigation scheme can be made a sue
cess where the ownership Of the land
and the ditch are in separate hands.
The source of failure in the second
case mentioned, even where the
scheme contemplated the sale OF the
ing the shares Of stock to the acreage
arose from the fact that the
expenses accruing from the interest
charges and cost of operation and
maintenance before an income was
realized became too great to be borne
by the projectors without some basis
of credit and security and without
some assurance Of ultimate reim-
bursement
There were enough Of these fail
ures to give rise to the very prevalent
opinion that most, If not all, private
enterprise" irrigation schemes were
failures-and this assertion is often
made-generally for sinister reasons.
There was another class Of inves-
tors. however, that entered the field
and made a careful and more thor
ough investigation of the underlying
principles of investment and security
as related to irrigation projects, and
who discovered that a properly de-
signed enterprise, and where the land
and a conpointly related water right
were made the basis Of credit, there
was ample security for whatever in
vestment became necessary to ac-
complish the reclamation. 1t was
found that the increment in the values
created obtained with the reclaimed
land and that the detached waterright
represented by the carrying capacity
of the ditch had no inherent value or
at beast no value sufficiently stable
and abiding to furnish adequate Sc
curity for the investment required.
The fundamental step with this class
of investors was to secure the it'll.
to or at least guarantee Of control
Of sufficient area of land to justify
the expenditure required by the un-
dertaking. And 1t was generally found
that there was a sufficient area of adj
ditional land to be reclaimed to make
the investment an exceedingly profit
able one. A careful investigation Of
the records Of irrigation investments
will disclose distinct line of denmark
alton between these two classes of en-
terprises. In that class based on
speculation In the delivery of water
to the land owners perhaps 30 per
cent Of the undertakings have been
failures. The 10 per cent being re-
deemed by advantatious circumstan-
ces or by conditions so exceedingly IA
vorable that they We're profitable in
spite Of their mistaken conception.
As to the other class, where the in
vestment was secured by the reclaim
ed and irrigated land, it is entirely
safe to say that no case Of financial
failure can be cited land while this
fact came to be generally recognized
In course of me.investment In irriga-
ton enterprises began to wane for
lack of suitable opportunities.
The Carey Act.
1t was difficult to find location
where bodies of land of sufficient area
suitable for reclamation. the title or
control of which could be secured as
a foundation for such enterprises,
1t was probably the recognition OF
this difficulty that inspired the pass
age Of that congressional enactment
now generally known as the Carey
Act. but which was first decreed UNI
der the title "An Act to Provide for
the sale Of Desert Land in Certain
States and Territories" approved
March 3, 1877. and subsequently mod
flied by amendments passed in 1894,
and in 1897, which constitutes the law
as 1t is now in force and operation.
Briefly stated this law provides for
cession or grant to certain states in
which there may be desert lands, one
million acres Of such desert lands to
each state under certain conditions.
the purport of which is that the lands
are to be reclaimed and occupied by
settlers in tracts not to exceed 100
acres each and such reclamation to
be completed within 10 years from
the date of entry. The gist of the law
however. is that provision whereby q
lien is authorized to be created by the
state, to which such lands are grant
ed, against all the lands reclaimed. for
the cost of such reclamation together
with a reasonable interest thereon un-
til the state, or it's agent. shall have
been reimbursed. This provision en-
ables the state to offer the investor a
substantial and satisfactory security
for the money required in the con-
struction of the, necessary irrigation
works. When the state shall have
submitted satisfactory proof that the
lands have been occupied in good
faith and a SUFFICIENT SUNNY nj wat>.