The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1922-02-17
DECLINES TO BUY
POWER COMPANY
SECRETARY FALL DECLINES ON
PART OF GOVERNMENT
TO BUY.
NO FUNDS ARE NOW AVAILABLE
RECLAMATION FUND DEPLETED
WILL ASK FOR RENEWAL
OF OPTION.

Washington, D. C.-Secretary of
Interior Albert B. Fall recently de-
clined, on behalf of the government,
fOH sign contract for the purchase
from the Idaho Power company of its
two power plants and other prop
erty at American Falls, solely ON
the ground that there is no money
available with which to make the
necessary payment. The reclama-
tiaon fund Is depleted and, therefore
the government has no cash on hand
ITO make the first payment OF
$250,000 and the irrigation compa-
nies of the Snake River Valley have
fallen down on their promised pay
ments. Therefore the secretary
held he could not in good faith sign
the contract, Notwithstanding that
options given by the power camp
any expire tomorrow. Secretary Fall
however, is hopeful the matter may
be worked out, and, he will ask for
a renewal of the option for another
sixty days. whether or not this ex-
tention can Ibe obtained depends lar
gely upon the Guarantee Trust com
bonds of the power company.
Before announcing his decision, he
gave an extended hearing to Senators
Borah and Gooding, Irrigation Dir
ector Swendsen of the state of Idaho,
M.E.Sheppard Of Twin Falls, Director
NvroS nf To ni~oo<0r
Davis of the reclamation service and
Assistent Secretary Finey also be-
ing present. The Importance of the
American Falls project was fully
set fonth by the various members of
the Idaho delegation, and the bearing
OF this project ON the ultimate dew
elopment of Snake River valley was
emph!asized.
Merits Were Stressed
The secretary was told that the
carrying through Of this undertake
ing would result ultimately in the
utilization of every bit Of water Of
Snake River, and 40 successful has
irrigation been in southern Idaho
that the merits of the project were
stressed
Secretary Fall stated frankly that
he regarded the project with the ut
most favor: he had visited the pro-
ject last summer; he was ready to
admit the merits Of the proposal; he
wanted ITO aid in every proper way,
but he explained the depleted condi-
tion of the reclamation fund, and
said that under existing laws there
is no new money in sight for that
fund above what is required for pro-
jects we'll under way. He also point
ed out that the private irrigation
companies of Snake River valley
which have subscribed for water
have not made their initial pay
ments, and therefore no money
whatever is on hand with which to
make even the first payment to the
power company. The contract, as it
stands, calls for a payment of $780,
900 at the time the contract is sign
ed, and "a like amount for three sue
ceosive years thereafter, $1,OOO,OO0
in all. With absolutely no funds on
hand or in sight, the secretary said
he could not obligate the govern
ment to make the purchase.
Contract is Favored.
Secretary Fall intimated, however,
that if congress shall pass the
Smith-McNary bill, or a bonus bill
carrying reclamation funds, or shall
provide funds in any other way for
irrigation expansion, he would then
gladly take up the American Falls
contract again, provided the option
can he renewed, or If the private
companies, which are now in de-
fault, should come forward with
their payments, he would be glad to
approve the contract -;
The idaho delegation was ~disap-
pointed at the refusal Of Secretary
Fall to sign, but admitted that, nm
der the circumstances, he could
hardly be expected to take any other
than the stand he did. There 10 con-
siderable optimism among the msn
who called on the secretary that the
Smith-AGcNary bill may be passed by
congress, and II that comes about,
they feel confident the American
Falls project Will go forward, and
the contract with the Idaho Power
company viii BE- closed. Meantime.
efforts WIN BE- made to bring about
payments, which, have made con
fracfa IN fhe h0nA that money from