El Paso herald. (El Paso, Tex.) 1901-1931, 1916-08-14
URGES DISTRICTS
FOR IRRIGATION
Reclamation Expert Says
Irrigation District Form
the Best.

The water users of the Rio Grande
valley will be asked to adopt the irri
cation district form of organization,
according to a statement given OUT
Monday morning by E. W. Burr, in
charge of organization matters for the
United States reclamation service Mr..
Burr has Just come from a conference
on the subject with judge VIII r King,
chief counsel of the service, with head
quarters at Denver.
There is a decided legal advantage
in this form of organization, Mr. Burr
explained, in that there exists no so
called first mortgage on the land al
fected. as is the case under the system
Of stock subscription contracts, where
the government has first mortgage
Conference With Water Users
Mr. Burr will hold "A conference al
Las Cruces, y NJ, with the Water
Users association there. and another
conference with the FL Paso Valley
Water Users association Tuesday.
'iOne of the great handicaps thar
federal projects have labored with is
the difficulty everywhere experienced
of using project lands as security,
said Mr.. Burr. Mortgage companies
are not usually permitted to lend ex-
cept on first mortgage, and the gov
eminent has a first mortgage on all
irrigable lands by the lien contained
the association This situation dis
closed of course in every abstract OF
title, makes a very serious obstacle
to the development and stocking OF
the ranches of the settlers on these
projects The commission has labored
hard to overcome this difficulty by
regulations but not with full success
But under the irrigation district
plan, the mortgage companies find an
other status. The district is public
corporation, an improvement district
II ranks in every sense like county
or a school district. and the fact that
this municipal corporation has debts
and those lands. among others, VIII De
taxed, does not constitute prior, OF
so-considered first mortgage, when the
owner attempts to obtain credit as 4
landowner.
The plan Of organizing an irriga-
ton district looks forward to the re-
leasing, by the United States. of its
interest in the associations stock sub
scription contract lien. and the clear
ing of the record with the assent of the
association.
Rural Credits to Help.
This question has become all the
more important by the recent passage
and approval by president Wilson OF
the rural credits bill This act should
result in a marked decrease in interest
rates In favor of any community of
farmers which goes after relief !
energetically. as ii is to be hoped the
reclamation projects will do It per
first mortgage security. I shall be
greatly surprised If money can be
placed under this act where a valid /
stock subscription contract is cumber- |
ing the title. and equally surprised if 1
the creation OF an irrigation district 4
and the existence Of a bonded indebt- I
ednes is found TO constitute a bar to /
successful loaning under the act.
Form to Run Project
In a few years the water users are
likely TO want to run their own bust
ness and take over the operation Of the
canals, and, when that time comes
they will need an irrigation district
This description of corporation is the
only one which can properly operate
and maintain all the public property
of an irrigation project, including the
drainage as well as the supply bitches
A drainage district cannot supply the
place of an irrigation district and run
the supply work=it is a temporary
affair. A water users association, OF
the other hand, lacks all the powers,
sc needful in running an irrigation
project, of public corporations, so that
IL also a temporary affair service
able only while the government is in
charge Of the works.
The federal project cannot be turned
over to the people under the present I
law except by consent Of the farmers
and the department of the interior, |
until the major part of the land has !
reimbursed the reclamation fund for
the cost of the works
From every standpoint ] am sure {
that the organization of a district will
appeal TO the people when presented 10
them by the association directors. Such
a step is suggested as the means OF
securing drainage work by the service,
and the reclamation commission have
agreed not to delay the placing of or
ders for machinery untfI the form OF
contract has been decided upon with .
the district board and voted upon by
the people as required by law, but to
20 ahead as soon as the landowners
vote favorably at the organization cleo
ton, with the understanding that the
rest of the steps shall be taken in |
their due course"