East Oregonian : E.O. (Pendleton, OR) 1888-current, 1909-12-08
DENIES GRAFT IN
KLAMATH PROJECT
DIRECTOR NEWELL MAKES
STATEMENT FOR PUBLIC
Refutcs Charges That Exorbitant
Prices Were Paid forr Canals by Rec
lamation Service-Rehearscs De-
tails of Transactions.

The East Oregonian is in receipt of
the following communication from
Director Newell of the reclamation
service and gladly gives it publica-
ton;
Washington, d. c, Nov. 29-(Dear
SirD-A number of newspapers have
published an article charging that
graft is suspected in connection with
certain purchases of canals by the
u. s. reclamation service for the
klamath project in Oregon because
of the high prices paid. The prices
in question were published in a
pamphlet and generally distributed
long in advance of the purchases, and
were specifically approved by the
board of directors of the Water
Users association, which is a cor
poration comprising all landowners
in the project.
The charges in question except
those regarding the Moore Bros. con-
tract, which are new, were presented
to President Roosevelt and to the
several secretaries of the interior,
Hitchcock, Garfield and Ballinger.
and disposed of by all of them as be-
ing without foundation.
Mr.. Abel Ady of klamath Falls,
Oregon, who recently repeated these
charges to the senate committee on
irrigation. originally presented them
in 1905 and was at that time given
a public opportunity to substantiate
them. at a meeting of the board of
directors of the Water Users associa-
ton held March 4, 1906. Mr.. Ady
publicly withdrew all charges of
graft and withdrew his objections to
the prices paid. The following is
quoted from the minutes of that
meeting:
Mr.. Ady states that so far as any
fraud or intimation of anything of
the kind was concerned his letters to
the secretary were never intended to
be so taken; that if he had known of
any fraud he would have so stated in
his letter in so many words
and that he would have been willing
TO have agreed to pay double the
amount agreed upon for the canals,
etc, to save years delay in the
construction of the project
These charges are now revived
when those most directly concerned
are not connected with the reclama-
ton service, namely the late Secre-
tary Hitchcock, Director Charles d.
Walcott, now secretary of the Smith
Engineer J. B. Lippincott. now engi-
neer for the Los Angeles aqueduct.
The charges in detail are as fol-
lows:
/. That the government paid
s1S3.00O for the dam site and reser-
voir site at Clear Lake, included in
the Carr ranch while this property
had been offered for sale for $780,,
900.
The records of the government show
that pending the negotiations for the
purchase, which included only a part
of the ranch, the entire ranch witt
stock and Improvements was sold fol
$3.50, 600 and that the portion bOugh
by the United states. about one-hal
of the land and valuable riparian
rights was fully worth its proportion
a! part of the entire ranch.
At the hearing before the senat,
committee Mr.. w. c. Dalton who wa
part owner VI the IdNCl, utlOuucet
as false the statement that the rancl
had been offered for $4,000 and Of
fered to forfeit $500 10 anyone VIII
could substantiate such a statement
>. 1t is charged that the Adam
canal for which the government pait
100000 had been valued by the en-
gineers of the service at $1,000.
This IS entirely wrong The engi
neer reported that its constructor
cost about $500 and that the prop
erty was fully worth 100000 to tn
United States. The former owne
now expresses his willingness to re
purchase the system at a higher pric
and claims that he would make
profit by such a transaction.
3. That the Ankeny canal wa
purchased for 100000 cash, thong
valued at 10000 by the governmen
engineer
Both statements are false. TIL
purchase price was S5O,O0O and tn
canal was never valued at less tina
$4,000 by any government engineer
While the government was negotiat
ing this purchase an offer Of $4,000