El Paso herald. (El Paso, Tex.) 1901-1931, 1919-04-12


other government irrigation projects are laane nancy
the embarrassing federal first hen on tnen l1nu
hoard of directors Of the Pecos wafer users
I'D a5opts5 resolutions petonng congress Tor legislation
SO that they may borrow from the government farm loan
banks.
rnsrieuce with the reclamation projects has shown
this TO be true: The government under contract comes into
complete possession Of the projects and absolute control OF
water a0tnents for gatng purposes and It further e1
acts from settlers first lien upon their lands 1or le Re
r+ Of construction and maintenance charges and an
additional lien their water sotments In some cases
the first lien for construction and maintenance runs 10
about $50 an acre That constitutes first mortgage on
the land and av other indebtedness has to give way TO II
The consequences Is that when farmer tines to ooro"
money for crops equipment house OF Tor Whatever pl
pose he finds that first lien standing between MIN ana ~
hank or the money lending individual barrier Inc
difficulty is not peculiar to the Pecos project It has been
experienced in other reclamation projects
The resolutions Of the PeoOs people characterize their
sI5ovs named liens operate unjustiy embarrassingly
euacugv and extremely dangerously 10 settlers N tha
they bar needed loans from all oanng individuals OF cor
uoratons throughout the country intending farm loan
hanks Federal farm banks organized with the spe
cfc object Of making loans to all deserving farmers
uetsnt to meet the loaning requirements Of the banks
whether living and owning lands in humid OF irgang
country.
asinoe the opening of this Carlsbad project many
corners had been acquiring farms by making initial pur
chase oavmsnts but subsequently, learning Of the unjust
conditions confronting them deserted their land holdings
leaving them and FORGETTING their payments rather than
continue an apparently hopeless problem
aOur settlers operating under and eontend1ng
against the hardshps Of high water charges with usuous
rates Of interest their purchases Of home and fam ne
cessities and with higher living costs than IN most all
other places in the country.
Snee the opening Of this project, p percent Of the
for another found It necessary
to take advantage Of the permitted penal extension term
not only losing the five percent discount allowed for prompt
payment but also paying to the government the unjust
penalty Of z percent per annum-'
The same trouble with the governments first lien
encountered over IN the Salt River valley Of Arizona IN
The Roosevelt project Farmers found they could not boz
Tow money after the government had imposed its lien
Those who had already borrowed had bought the
partial payment plan found it impossible to get new loans
Up in the Pecos valley thus situated have suffered
foreclosure The problem has been solved IN Arizona BY
special state legislation permitting loans BY the state
lands covered by the federal liens Until that legislation
vas enacted it was impossible for farmers in the Roose-
velt project avail themselves of the state loan fund
This fund VIII probably be inadequate however to
for nearly all the applications for loans irrigated land
Just why the imposition Of the federal lien is
sary It hard to see The government controls the water
projects including the distribution Of water The control
the less real If the projects have been tuued over
to the water users associations worthless with
cut water easily would be possible to withhold water
from those who failed to make payments for maintenance
IN repayment Of construction charges If the liens were
removed would be possible for the farmers to borrow
HON banks individuals
But If the liens continue to stand, water
right thinking congress ought 10 give them relief by leg
islson authorizing farm loan banks to lend land mort
gagged to the government
With the home coming Of American soldiers and sailors
contemplated to open up reclaimed lands for the
assistance Of the former securing homes
farms Of ther OWL II is to be hoped congress will enact
settlement plan under which the soldier and prospective
civilian settler work out their problem Of welfare and
prosperity without the embarrassment above referred to-
Federal farm loans would be great blessing 70 many
farmers reclamation projects Il would stimulate greater
activity and better farming enabling them to meet thei
water charges promptly and save Y percent in doing