Arizona republican., 1920-05-26

r. :. Reclamation Service. on June 2S 1916, provides in Article B.
 This contract shall become effec- tive upon it's approval, and shall con tinue in effect for ten (101 years from the date If such approval
 Ia Article of the contract it is pro- vIded
 That the Contractor shall use req souable diligence in the construction Of the necessary distributing system and installation of equipment com pleting he same at the earliest prac- ticable dato in which event the mini mum charge Of Two Hundred Dollars 4Se0s 3o) per month shall be deferred auti construction is completed, BUT NOT LATER THAN JUNE 30, 191I Article of the contract provides in reference to payment:
 Amy amounts remaining unpaid more t1Hr thirty days after becoming due shal hear interest until paid kt t4te rate of eight tS) per cent per any aarn from the date when due. The ! UuGea States may. at it's option, shut eff -ieetric current and refuse 10 make fi.rzhc~ delivery under this contract sHcuid the contractor be in default in she payment Of the amount due for more than two calendar months. Ky contract dated Sept. G, 1917. be- tween the United States and the Salt fE,lEer alley Water Users Association Lhe care. operation and maintenance of the SaIt River Irrigation project was E-aaetsrrca 10 the Association. Article I1 of this contract provided:
 The performance and discharge Of all valid and subsisting obligations and I contracts affecting the care. operation and maintenance of the project now in ! effect between the United States and other parties. shall be and are hereby l assumed by the Association, and shall be faithfully discharged. performed and carried ont by it as long as the i Association shall have the care, ope- ration and maintenance of the project under the provisions of this agreement , The Association however reserves anC the United States accords TO it the right to any legal objections or de- feuse to the validity Of any obligation which the United States itself might have if this agreement had not been made. it being understood that the general assumption by the Association of the obligation of the United States in relation to the care, operation anu I maintenance of the project shall not impart 10 such obligations any degre9 of validity which they did not posses i before this agreement was made. The i Association agrees that all contracts which # may seek 10 execute for the sale or lease of power or power privi- Tleges covering period of more thar 1 one wear shall be subject to the an- 
 It appears that the State of Arizona has not yet constructed the system re- quired by Article of the contract Of May 12. 1916, that it has made no pay ment hereunder. per month from June l 30. 1917. to date with interest at 8 pes cent per annum. II further appears that the Salt River Valley Water Users Association has entered intG new power contracts. assuming tha; the contract of May 12, 1916 had lapsed. and does not consider itself un- der a legal obligation to carry out the latter contract.
 You do not state in your letter whether the State of Arizona is ready and willing tD make full payment of the sums now due under the contract of May 12. 1916 as above set forth, and before making a final decision in the matter this Department would be pleased 10 be advised as 10 your po- sition upon this point
 Cordially yours.
 8Signed) JOHN BARTON PAYNE.
 The Attorney Generals Office through r. J K. Mcbride Assistant Attorney General. was given authority by the Board Of Directors to make a tender Of s200.00 per month. with iu- terest thereon. at the rate of per cenf per annum, from June 30. 1917 to June 20, 1920, in accordance with the Agree ment hereinbefore mentioned, as or that date tender of payment was made hy the State Engineer. Thos. Maddock to the Salt River Valley Water Users Association. as fiscal agents or the Federal Government under the agree ment. which payment was refused by the association
 Meeting adjourned.
 THOMAS F. CAMPBELL
 Ex-officiO President
 BARRY $. ROSS.
 Member.