Arizona republican., 1914-11-29


 to pay your share of the entire cost of the project.
 Mir. Barrett Thirty dollars an acre?
 MT. Hayden. No; the whole amount. If you will look at your contract you will not find that any amount is speci- fled.
 MT. Barrett. Yes, fifteen dollars.
 MT. Hayden. The capital stock men, toned in the articles of incorporation is based on $15 an acre. but the con tract which each individual water user signed with the association does not limit his liability to $15 an acre.
 MT Barrett. I don't think there is any individual contract
 Mr. Hayden. What did you sign up?
 MT. Barrett We subscribed for stock
 MT. Hayden You subscribed for stock, am only quoting from memory, but I think you will find that in con tracting to purchase this stock you fur ther agreed to pay the entire cost of the project.
 Mr. Van der Veer, your secretary, has just handed me a copy of the articles of incorporation of the Salt River Val ley Water Users Association. Section 1 of Article reads as follows:
 The capital stock of the association shall be sS,75O,OOO, and be divided into 250,0OO shares of the par value of $15.OO per share"
 The last part of Section II of the same article contains this language;
 Upon proper proof to this associa tion that such rights have been allotted to the subscriber and that he has com piled with the government rules and regulations up to that time, so as to entitle him to complete his ultimate ac- quisition thereof, then such subscriber shall be deemed to have paid on his subscription of said stock the amount that he shall have then paid to or for the use of the government for such right. and when all subsequent pay ments required by th- government tor such rights shall have been paid by him, or by anyone for him, then such stock shall be deemed and held to have been fully paid up
 Each water user. in signing up to the association, has agreed to be bound by these articles as well as by the reca nation act and the contract between the association and the government I do net believe that we should deceive ourselves even though our self interest would tempt us to do so. and accord- ingly l have always construed the art ...I |, par value of the shares of stock, while nominally $15 per share. was in no wise intended to limit or determine the amount of the payments to be made by the association
 Fixing the par value at s15 and the capitalization of the association at s. 750. 900 was merely the assoication S estimate of the cost of the storage works at that time contemplated. When these articles were adopted to one | thought of paying for anything but the Roosevelt dam. You pay for your stock, not by payments to the associa ! ton for it's benefit. but by paying the | construction charge due the govern ment and your stock is not paid up in | full until your entire obligation to the government is satisfied
 i Mir. H. A. Bustrin. I see you said in your speech that the cost of this pro- | ject would be more than s60 an acre
 MT. Hayden. l said that was the last estimate. If you divide the expendi- lures that have been charged by the number of acres admitted to the pro- | ject. it will amount to more than $60 an acre That is the way 1 arrived at | those figures.
 MT Bustrin. It is more than that really?
 Mir. Hayden. If you take the total cost for this project. as given in t1e | last annual report of the reclamation service. and divide it by the number of acres, the result will be more than S6O per acre
 The Horseshoe Reservoir
 A Water User. Will we have any chance to get money to put into the Verde dam?
 l MT Hayden. l do not see any way to get the money soon unless congress authorizes another bond issue A Water User If we vote the money on ourselves could we get an extension of time in which to pay it?
 MT. Hayden. There is a provision 1T the reclamation aXtension bill which i. designed to cover just such a situation | It is Section 4. which relates to in- creased charges.
 That no increase in the construc- tion charges shall hereafter be made after the same have been fixed by pub lie notice except by agreement between the secretary of the interior and a ma jority of the water right applicants ant entrymen to be affected by such in i crease. whereupon all water right ap plica tions and entrvmen in the are; proposed to be affected by the in | creased charge shall become subjec thtreto"
 In other words, the procedure is tht same as voting bonds for school house: or other public improvements.
 Such increased charge shall be add ed to the construction charge and pay ment thereof distributed over the re- 1 maining unpaid installments of con struction charges: Provided. That tn, fsecretary of the interior. in his discre ton, may agree that such increased construction charge shall be paid il additional annual installments, each O which shall be at least equal to thu amount of the largest installment a.