East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-03-29

NestlgauOn shall be advanced by the
district and one-half by the United
States Upon determining that reela-
nation is feasible. the secretary is au-
thoriZed. under contract with the dis
trict, to construct the necessary works
for the reclamation of the lands in
Volved and operate and Snaintain the
same so long as such operation and
maintenance are necessary in the
opinion OF the secretary. to safeguard
the interests of the government. The
total cost of construction and Of on
GRAFTON and maintenance which shall
include a just portion Of overhead e4-
penses shall be paid by the district to
the United States.
Section 3. That before teh con-
struction of a projectc is commenced
the sizes OF the farms therein shall be
established and agreements shall be
made effectively subjecting not less
than so per centum of the excess lands
within the project to disposal by au-
thority of the secretary to settlers at
prices and terms fixed in advance in
such agreements. Such prices and
terms shall be determined with the
view of placing bona fide and com.
petent settler upon each farm of the
project with the least possible delay.
Section 4. That when, in the opin-
ION OF the secretary, a project has been
tully completed and successfully op-
Grated for one season the secretary
shall fix the construction cost thereof
which shall include the total cost of
investigation, the expense of selling
district bonds under section S, inter-
est at not exceeding per centum per
'annum upon all sums advanced by the
United States in the construction
thereof, and the cost of operating and
maintaining the project to the date of
liking such cost. The total cost the
district shall agree to pay to the Unit
ed States within period not exceed
ing forty years, with annual interest
thereon at not exceeding S per centum
per annum: Provided, That upon re-
ceipt by the United States from the
proceeds of district bonds, as provided
In section S, of such total cost with in
terest. the obligation of the district to
the United States for construction
chall be satisfied: Provided further.
Ihat upon the receipt of such total
cost the moneys advanced by the dis
triet for investigation of the project
shall be returned to the district. So
long as the government operates and
maintains project the district shall
pay to the United States annually up
on terms to be fixed by the Secretary
the total cost of operation and main-
tenance.
Section 5. That preceding any ex-
penditure by the United States on ac-
count of construction of n project
bonds of the district equal in face val
ue to the amount of the proposed ex-
penditure shall be duly issued and de-
livered to the United States. If at any
time 1t should appear to the secretary
that the original bond issue is insult
ficient to cover the cost of the pro-
posed work, he may either curtail the
work or require the district to issue
addltional bonds and when the total
cost Of the completed project has been
determined under section 4, all bonds
ISSUED in excess of such cost shall be
cancelled. The bonds shall be in form
approved by the secretary and shall
run for a period not exceeding forty
years, bear interest at a rate to be
fixed by the secretary not exceeding {
per centus payable annually, and be
issued in denominations of $25, $50
800, $500, and $1,000. These bonds
shall be deposited with the federal
farm Loan Board, and when the pro.
1ect cost is known and the value of all
of the property of the district subject
to assessment for the payment of the
bonds shall reach twice the par value
OF the bonds as found by the sale
board. the board shall offer the bonds
at public or private sale at not les.
than par under terms and condition.
to be provided by rules and regulation.
to be made by said board. The mon
eys received from the sale Of tn,
bonds shall be credited upon the dis
trict contract. Prior to sale of tht
bonds the board shall collect all mon
eys due thereon, and the same shall
likewise be credited upon the distric
contract.
Section 6. That unentered ant
unpatented arid and semi-arid land
of the United States susceptible of rec
lamation may be included in a distric
and may be subjected to the provision
of the Act of August II. 1915 (Thirty
ninth Statutes, page 506), in accord
ance with the terms of said Act: Pro
vided. That the final provislo of sec
tion 1 Of the Act shall not apply
Provided further, That while the un
entered public lands within a distriC
constitute more than so per centur
In area of the lands therein, the secre
tary shall have the right to appoir
upon the district board such numbe
OF persons to represent the interest
of the United States as shall consti
tute majority of the board. Uner
} tered public land withdrawn under tn
1 provisions of the Act of June II, 1870
\ (Thirty-second Statutes, page 1888
and Acts amendatory thereof or sur
\ Elementary thereto, may, in the dil
I cretion of the secretary, be include
In district. All unentered publ
! land SO included in a district shall /
opened under the provisions of III
! homestead law and also, SO far as al
plicable, Of said Act Of June II, 1870
! as amended and supplemented.
Section I. That the United STATE
may acquire lands hereunder for col
! struction, but not for agricultural pul
poses: Provided, that the secretary