Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1915-09-20
FINANCE
IN IRRIGATION
Is DISCUSSED
VIEWS FROM BANKERS STANDPOINT
ON FINANCING PROJECTS GIVEN
BY MYRON r. HERRICK.
SAYS SLOWNESS OF DEVELOPMENT
AND USE OF RECLAIMED LAND is
SOURCE or DISAPPOINTMENT.

San Francisco, Sept. 20.-Mvron r..
lIerrick. former ambassador to France.
presented u the international Irrigation
congress today hi views from the stand
point Of a banker m 10 how the great irri-
CATION projects could ~ turthcrcd w bet
tef finance. lie began IN quoting the Soc
rotary of the interior IN saying. Of the
private enterprises "Fcw II any or the H.
vc~tmcut- have ever returned tn the east
crn or European shareholder or bondhuldcr
the amount az the original expenditure -
and. speaking of the government project:
1T must be- admitted that the %-lownc~~ of
developments and the use of the reclaimed
land has been 4 source Of disappointment"
Mr.. Ilcrrick -kctchcd the vast extent Of
the twcnty-~iX irrigation projects under
taken TN the United States reclamation
service. One of the comparisons he drew
to visualize The extent 81 the projects was
that the service had constructed ~ wa-
maintaining and operating $500 miles Of
canals which IN q straight line would run
from Palm Beach. Fla. to Fairbanks.
Alaska. and hack again. The estimated
area Of the projects was 2.9lS.600 acres
VI which 1.3i3.1g3 acres. wv Pills farms.
could now be watcrrd. The Investment in
capital and labor Of the owners Of these
farms when fully developed will ~ about
Sl15. 900 600. hc said. and the value con
~tantly Increasing. Splendid m the de-
vclopment was. ~ was being reached
4lr.r.l 4yr.t NIL t-.InF.t.-,- II
arising. in Nr. lIcrrick'~ opinion. from
faulty methods WI finance. IT, said. III part
"Thc 1902 act provides that al monies
(cNccpt the ; per cent set aside for cdu-
c%ational purposes received from the sale
and disposal NJ public lands IN most nj the
western states shall be- used in irrigation
projects wy those states. The receipts from
the sale MI public lands amount to ssh
Sl3.112.11. which have now. If course. M
disappeared.
consequently. a- the secretary M the
interior declares The resources of the
reclamation fund Are now uvcrhurdcncd
and the projects now under way can not
hc completed within q reasonable length of
time. unless there shall ~ large acce-Sion~
W.T. thr fund This KY y timely warming.
"Thc PROCLAMATION service employs a
force at zoos persons: W has invested
enormous funds w power plants. ma
chincrv. implements. and in equipment and
improvements for carrying "a it, work
IT, expense run NJ whether this lies idle
or in kept busy. while if 1T should do i'm
work "a picccmcal The operations of the
~crvirc-"rnurizcd a- ID i- t"r large under
tnking~-vill become - costly that the
investments ~ TIE government wiIl end III
Y loss.
''rhc truuhlc- that now confront the
reclamation service were forcdoomcd from
the start because W.T. thc faulty method WI
finance hv winch IN was inaueuratrd-hc
cause of this trusting upon IN uncertain
source WI fund and revenue for conduct
ing it~ operations. The correct way (f |
may bc bold enough 10 say IT'D b the simple
ordinary way WI issuing dchcnturc-. Each
project should have hrcu required IN stand
good for in own dcbenturc-. and these de-
h%cuturr~ should have been issued w rep
rc-cntation M the officially appraised value
Of thc land a- improved aud been redeemed
ont NJ Y sinking fund created wv the I'LL
~tallmcnt payments Mi the landowners.
"Ba-idc~ creating ~ adequate supply
NJ capital. this method VT finance would
have made the investment uf the govern