The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-09-21
DEMANDS
BETTER FINANCES
IN IRRIGATION
Failure Of Reclamation Thus
Far Largely Due to Imma-
ture Financial Arrange
ments, Says Former Ambas-
sador to France.

san Francisco, Sept. 2f.-Myron IT.
HeTrick, former Ambassador TO
France. presented to the International
Irrigation congress today his Views
from the standpoint of a banker ~
20 how he great Irritation projects
could be furthered by better nnance.
He began by quoting the secretary of
the Interior as saying. 81 the private
enterprises: Few u any OF the in
vestments have ever returned Ia tho
eastern or European stakeholder or
bondhoider the moun OF the original
expenditure" and. speaking OF the
government project; 1T must be adj
mitted that the siowncss of develop
ments and the use OF the reclaimed
land has been a source OF disappolnt-
ment."
Mr. Herrick sketchcd the vast ex-
tent OF the twenty-six irrigation pro-
jects undertaken hy the United states
reclamation service. one OF the com.
PARSONS he drew 70 visualize the OK
tent Of the projects was that the SER
vice had constructed or was maintain.
lng and operating $500 miles OF can
ais which IN a straight line would run
from Palm Beach. Florida, to Fair
banks Alaska. and back again. The
estimated area OF the projects was
2.9iS,G0O acres OF which i,~9A3.1g3
acres. or Ellis farms. could now be
watered. The Investment In capital
and labor OF the owners Of these farms
when fully developed will DC about
S175.0 900. O00. he said and the value
was constantly increasing. Splendid
aa the development was. Il was being
reached through trials and tribuln-
lions largely arising. in Mr.. Hendricks
opinion, from faulty methods Of r.
nance.
He said IN part:
The 1909 act provides that an
moneys (exccpt the Eve per cent set
aside for educational purposeaD re-
ccivcd from the sale and disposal Of
public lands In most of the western
states shall be used In irrigation pro-
jects in those states. The receipts
from the sale ~ public lands amount
to sSi,Si3,722.7t. which have now. Of
course. all disappeared.
Consequently. as the secretary of
the interior declares The resources
81 the reclamation fund are now over
hurdcned and the projects now under
way cannot be completed within n
reasonable length OF time. unless
there shall be large accessions of the
fund This IN % timely warning.
The reclamation service employs "a
force Of 7,99S porBonH. 10 has invested
enormous funds In power plants. mn
chircry, implements. ana ~ equip
mente. ana Improvements for carry
ing ON its work It's expenses run on
whether this lies idle or is kept busy.
while if IL should do IFS work lv
piecemoal the operations 81 the eor-
vic-organizod as u b. FOR large un-
doriakinrs will become go costly thot
the Investments OF tho government
will end IN % loss.
THE troubles that now confront
front the reclamation service we're
forcdoomed from the star, because uf
the faulty method OF finance bv which
% va inauguratcd-bccnus OF this
trusting upon an uncertaia source oi
funds and revenue for conducting it.
operations. The correct way on !
may De bold enough 90 say itD is ~,
simple ordinary way Of issuing dohcn'
lures. Each project should have beer
required u stand good FOR lts own de-.
b%entures. and these %dcbentures should
UhAf N'Fu ltSutu ~ representation h
the officially appraised value Of th'
land ns improved and been redcomo.
out of q sinking fund created by th'
instalment payments OF the landown
crs.
Resides creating m adequate sup
ply OF capital, this method Of finance
would have made the Investment %
tho government profitable and ais
have llRhtened the burden OF IN
landowners. The sOone this or som
other method IL adopted the better
will be. Indeed. a change Is abso
lUtcly necessary. because the sccre
tary Of tho Interior warns that n ccs
Z satlon Of all work u imminent, Will
/ the director of the service report
that landowners are falling IN arrcaI
ana must be granted renewals eve
, after tho expiration of tho recer
itwonty-year extension. The Unite
States government may possibly worr
along under present arraagemcnts-
but the landowners cannot