The Ontario Argus. (Ontario, Or.) 1???-1947, 1921-07-07
UNANIMOUS 0. K. PUT
ON ARID LAND MEASURE
senator McNary's Bill To Provide
$3.50, 900, 900 for Irrigation Fund
Adopted By senate
Committee
Telegram Washington Bureau

strong reasons, the report says In
part:
Nineteen years have passed since
| the enactment of the reclamation
act, and under It's beneficial influ-
ence there has been added to the
| cultivated area OF our country L.
| 1877 900 acres of land under distinct
federal reclamation projects. And
| there has been supplied by the gov
ernment water to $4,000 acres
within private irrigation enter
| prises. These lands before reclama-
tion we're largely barren desert
waste and unproductive.
Crops of Huge Value
During 1919 on the 1,1S7,O0O
acres within the federal projects
! crops were grown of gross value
of $50, 200. 900. and on the land In
private irrigation projects receiving
water from federal projects there
were grown crops OF a gross value
Of S6f,000,000, or n total OF $685.
900 900, compared with a govern
mental expenditure OF approximate
ly S123,000,000. As result OF this
critics of total value of upwards
OF $3.50, 100000.
Loan Fund Created
"The bill is designed to accom-
plish the following purposes:
"First-Greatly 90 augment the
small amount OF money which is
now available for the reclamation
OF land by irrigation. This will be
accomplished through the sale OF
bonds OF irrigation districts whose
validity has been judicially estab-
lished. To enable the secretary OF
the Interior ~ commence and COM
plete projects the secretary OF the
treasury is authorized and directed
TO transfer from time to time to the
credit OF the reclamation fund an
aggregate amount not TO exceed
$3.50 200, 900, with limitation OF
$50, ,0O0, 900 for the first year. s35 !
000, 900 the third year and each sue
ceeding year for period OF three
years n sum not TO exceed $4,000
900. At tho end OF twenty years
the bill provides there shall be
transferred from the proceeds OF the
reclamation fund arising from the
sale OF district bonds To the treas
ury OF the United States 10000
900 annually until the same adyanc-
ed shall have been fully paid. In
cluding accumulated interest.
Districts To Organize
"Second-Future reclamation pro- ,
Jects under the bill shall be Initiated
by duly organized districts In CO.
operation with the secretary OF the
Interior. Before such cooperation |
shall be extended. the land owners
who desire their land reclaimed |
shall organize a district under state |
laws into a corporation having full |
taxing power.
"Third-All future reclamation
projects undertaken In virtue OF |
this legislation are placed on an
interest paying basis. II is thought 1
under existing conditions the gov
ernment should not be called upon
to supply funds 60 continue work OF |
this character without interest as Il |
has In the past because the money |
is directly advanced from the treas
ury TO the reclamation fund and
does not accrue from the sale OF
public lands and from other sources.
Secretary To Judge
"FouTth--The money provided by
this measure cannot be used until
district shall file a petition with the
secretary OF Interior accompanied
by maps showing the lands OF the
district, together with plans, esti-
mates and description OF the project
To be constructed and the payment
OF one-half OF the estimated cost OF
the preliminary investigation. There
after II the secretary OF the interior
believes the project is feasible for
reclamation and settlement, believes
that the district Is duly authorized
TO enter into contract with the
United States and that the validity
OF the organization of the district
and OF the bonds has been deter
mined through a judicial confirma-
tion and the owners OF the excess
lands shall have agreed upon the
price, terms and conditions at which
the excess holdings shall be sold TO
settlers, then the secretary may en-
ter into contract with the district
for the reclamation OF the lands.
Assets Made Liquid
Fifth-The strength of the pro-
posed legislation lies in the means
provided whereby valuable assets
created through the reclamation and
settlement of the lands In the dis
trict are rendered liquid and avail
able for financing the reclamation
nf other lands. This situation Is
brought about through further fin
lncing of the bonds OF the districts
hat are organized, These bonds
issued will be deposited with the
federal farm loan board. Upon re-
quest OF the secretary OF the interior
the board will make an investiga-
Iion and determine that the value
Of the property In the district sub
iect TO assessment for the payment
Of the bonds is not less than twice
The par value of the bonds, The
board shall then offer the bonds at
public or private sale, and shall de-
posit the proceeds to the credit OF
the reclamation fund. BY this
method the government is not asked
10 loan its credit to the districts,
but simply authorizes an existing
governmental agency to give its es-
Innate OF the value OF the property.
thereby entailing neither moral nor
egal obligation upon the government
% assume any of the libilities inn
posed by the issuance of bonds.
Fund To Turn Over
After the bonds are sold and re-