The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1921-02-19
Put The Desert To Work

The railroads and the municipalities
near the desert are in the market
Tor all the power as soon as devel-
oped. The Chicago. Milwaukee q q,
Paul railroad has proved the i'm
mense advantages of using electrical
power In the propulsion Of its trains
The results are known to the officials
Oh all the railroads that cross the des-
ert lands. They would be poor bust
ness men not to buy all the hydro
electric energy they can use. They
want to do so.
Mr.. Lane feels ure that there could
be made q general bond. covering the
security of the improved land AT
about fifty dollars an acre (about
one-fourth the current price of fair
irrigated land) and the contracts of
the proposed power users. making a
bond something like the present
farm loan bonds. AS in the case of
the farm loan bonds, the National
Government would add its backing
and endorsement. The bonds should
be free from tasattcu, because they
are to be used to create taxable prop.
ert, and for the public good.
With the present effort to reduce
the expenses of the National Govern
ment. this plan would not conflict.
q these bonds would not go at
once ON the open market for Govern
ment securities. Being of the highest
security and tax free. they will get a
good price at once It is to be re-
membered. also. that In making these
bonds tax free the Government will
be a large beneficiary, because the
proceeds Of these bonds are not to be
used for Government free-tax ex-
p~enditures. but are going at once to
industries subject to all Fed
eral and State taxes.
A BOND ISSUE
While Mr.. Lane was Secretary of
the Interior he had a conference with
some of the largest bankers and bond
dealers in the country t ascertain
their views on his project Of provid-
ing farms for the returned soldiers.
These distributors Of securities told
Mr.. Lane that a half billion dollars
worth OF tax-free bonds, paying ~
per cent, could be absorbed at once.
Mr.. Lane thinks this equally true of
the reclamation project bonds on the
plan he has outlined.
Mr.. Lane points to the Roosevelt
and the resulting irrigation of
nearly 100000 acres Of land, besides
the production Of over 200. 600 horse
power in electrical energy. The
is now paying less than -
per acre per year for the water he
on his land and he has water |
when he wants 1t. The city of Phoe-
nix and its people are getting cheap
light and power. and SO are
the smaller cities throughout the reg
lon. And the result of these sue
workings is that the whole
Undertaking will be fully paid for by
these earnings before II is all due. |
Before the water came to them the
lands that now receive water from
he Roosevelt dam were mostly
desert. Now they are val
ned at from 5000 per acre upward.
Under the cotton growing excitement
asst year some Of the Salt river farms
sold above 800 per acre.
IF the only purpose of developing
.hese lands was to add to our arabic
.erritory and to increase the wealth
md productivity Of the United States,
I would still be a splendid business
or the Government" says Mr.. Lane;
but II means also that thousands of
citizens will be made Independent
workers, contributing handsomely to
he general welfare. without any cost
o the National Government. 1t
would seem to be our imperative duty
get started at once and get some
II the idlers out of the cities to work
IN these projects"