New-York tribune., 1909-09-10
BALLINGER UPHELD
RULING OF WICKERSHAM.
Attomey General Finds Strongly
Against "Co-operatiUe Feature.
rFrom The Tribune Bureau ]


Washington, Sept. 9.-The Attorney General
has rendered an opinion which, because OF It's
bearing on the Ballinger-Pi -Pinchot controversy
and its unequyocal condemnation OF the So
called ''co-operative feature of the Reclaha-
tion Service. is of more than usual interest
Stripped of technical verbiage and quasi-lesal
.ophistry, the "co-operative feature" of the re-
clamation work was scheme 10 make possible
the expenditure for irrigation of an indefinite
sum in excess of the amount appropriated by
Congress for that purpose This was effected
by the use Of the so-called Garfield currency,
a form of receipts for work performed, the
amount of which was 10 be credited against the
amount due from settlers when water should
become available.
Attention was first called to this method Of
evading the law in these dispatches to The Trib-
une in May, 1908. and a hurried investigation by
a committee of Congress followed. At that time
the scheme was described in the columns of The
Tribune of May IS by member Of the Senate
committee as 1.-THE most socalistic departure
this government has ever engaged in" This
Senator added: at is precisely the scheme ad-
vocated by Bellamy in Looking Backward the
issuance of a certificate of Indebtedness in the
name Of the community (in this instance of the
water right company in acknowledgment
GaymenD of labor performed. and redeemable
tn comlnodities-in this instance water
Mr. Ballinger, having become Secretary of the
Interior, determined, upon examination. that
the scheme not only without authority
Of law but an evasion of the law and ordered
Its discontinuance, a course which met with the
prompt and emphatic condemna aon of certain
jealous but misguided critics of the Taft ad-
ministration- The notification of this form of
cooperation was widely heralded as a reversal
of q Roosevelt policy. despite the fact that it
was only a method and probably never came
20 the knowledge of President Roosevelt and
Secretary Ballinger has been and still is severely
condemned for his course
Secretary Bauinger referred the question at
issue to the Attorney General who, on May 26,
rendered an opinion in which he declared the
scheme as applied TO the Grand Valley reclama-
tion project Illegal. Not content with this de-
cision, however, the Reclamation Service again
raised the question with regard to the North
Platte project in Nebraska. The interest of
the Senators from Nebraska was aroused and
again the question was referred to the Attor-
ney General, who reaffrms his former de-
cision in terms emphatic that Secretary
Balinser to-day announced not only his de-
termination to approve no more Of the CO.
operation certificates but to redeem all out
standing certificates fast as funds are avail
able. 1t is roughly estimated that there is
something like $4,000 Of Carried currency"
now held or In circulation in the West.
Referring to the communication Of the acting
director Of the Reclamation Service, in which
he seeks TO show some difference between the
Grand Valley scheme and the North Platte
scheme, the Attorney General says:
This paragraph evidences a 1nisa pprehension
Of the objection TO the proposed contract which
was before me- That objection was not that
the moneys subscribed by the water users asso-
citation was not in the reclamation fund. but that
the reclamation fund by the statute was created
from the proceeds OF the sale of government
lands. there was no provision for augmentng it
by private enterprise. and that the power of the
Secretary Of the Interior let contracts for
reclamation projects was under the law spe-
cfhcally restricted to the extent OF contracting
expenditures not exceeding the amount of
moneys available in the reclamation fund as con-
stituted by law.
AS pointed out in the previous opinion
the Secretary Of the Interior by the act of 1902
is given express authority to LET contracts for
the construction of reclama ton works only "uro-
vided the necessary funds . are avaiIa BILE in the
reclamation fund If they are, then the author
aty OF the Secretary TO enter into contract in
NolVlng expenditures not exceeding the funds so
available under the terms of the act is express
If the necessary funds not available in the
reclamation fund such authority exists
can see no difference whatever between the
principles governing the contract in the North
Platte project and those which were applicable
TO the Grand Valley contract, except perhaps
that in the North Platte project the matter is
worked out more in detail While it
may well be that the reasons for embark
Ing upon such a cooperative scheme which
are set forth by the director in his COM
Inunication, would appeal to the legislative
branch or the government, they cannot, in nv
opinion. operate to extend the statutory author
iIy Of the head OF the department to make con-
tracts for which "the necessary funds" are not |
available In the reclamation fund" consti- |
tuted by the act Of Congress