Arizona republican., 1910-07-16
Method By Which They May Come Into Reservoir District
 ENGINEER HILLS LETTER
Explains Necessary Feat ures of a Contract With Government and Replies to Questions by Commit tee Tempe Canal Go.

In accordance with his previous announcement and in line with a dis patch sent out from Washington a few days ago announcing that the secre- tary of the interior has given con sideratiOn to the question of taking the Tempe canal into its possession. Supervising Engineer L. c. Hill yes terday directed letter to the Tempe Canal company, stating the terms on which a contract to that effect could be made. At the same time he ap- pended a copy of the twenty three questions that had been submitted to him for answers by the canal com pany some time ago, together with his answer to each of them, Seriatim. The letter. the questions and the answers are all reproduced herewith and are self explanatory.
 Phoenix. Arizona, July IA, 1910. Committee of Seven of the Stockhold- CTS of the Tempe Irrigating Canal
 Company. care Mir w. H. Wilbur
 Gentlemen: In response to your let ter of June II, relative to a possible agreement for the transfer of the Tempe canal system to the United States, under terms which might be mutually satisfactory to all parties concerned, l desire to state that after consideration by the department. I am authorized to submit the following terms tO form the basis of contract between the United States and the shareholders of the Tempe Irrigating Canal Company:
 Provided that 70 per cent of the lands receiving water service through the Tempe canal are signed in the Water Users Association and that all the owners of the Tempe pumping plant and the Tempe canal and it's branches and extensions convey their interests in said properties to the United States at a fixed valuation. namely $40.00O for the pumping plant and equipment, $77.OOO for the Tempe canal; $500 for the Kirkland and Nc Kinney ditch; S9.6OO for the Western canal; $15, 800 for the first section of the South Extension Canal. and Ss.143 for the second section of the south Extension canal
 That upon conveyance of good title of the above properties to the United States, it will give credit on the build ing charges of the Salt River project when said charges are due and paya- ble to those who are stockholders at that time in the Tempe Pumping Com pany. the Tempe Irrigating Canal Company. the western branch of the Tempe Canal Company and the south of Vrri Company as may appear on the books and records of said companies and as- sOciation and applicants for water Salt River Valley Water Users As sOciatnOn and applicants for water rights under the project. said credits to be proportionate to their interests in said organizations based on the valuations of the properties as above set forth.
 That the United States will also fur nish perpetually to those who do not become applicants for water rights in the Salt River project in accordance with the provisions of the reclamation act (not to exceed 30 per cent of all lands now served by the Tempe Canal Company. water service at the rate of
 
 carriage of such proportion of the normal flow of the Salt and Verde rivers as said lands are entitled to under the decision and decree in the case of Hurley vs. Abbott ct al This sum to be paid to the United States until such time as the operation and control of the irrigation works is turn ed over to the Water Users Associa- tion and thereafter to said association
 That in the distribution of the nor nal flow of the river to said lands. the United States will be guided by any order or decree which may be made by a court of competent juris- diction.
 That the United States will con struct suitable drainage works to drain the lands signed up in the Water Users Association under the said ca nals where such works are necessary and will exercise reasonable care and
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