American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1922-02-03
SECRETARY FAIL
REFUSES TO SIGN
POWER CONTRACT
FAILURE OF ENTIRE SNAKE RIVER
VALLEY IRRIGATION PORGRAM
MAY RESULT UNLESS SOLUTION
IS FOUND FOR FINANCING.
MONEY NOT AVAILABLE
Committee From State Makes Strong
Plea But Is Unable to Alter Attitude
of Observation-Disclosures of Sixty
Days Asked.

Washington, Jan. 30.-Seeretary of
Interior Albert B. Fall today declined,
on behalf of the government, to sign
contract for the purchase from the Ida
no Power company of its two power
plants and other property at American
Falls, solely on the ground that there
is no money available with which to
make the necessary payment The re-
clamation fund is depleted and, there
fore, the government has no cash on
hand to make the first payment Of
S250000, and the irrigation companies
of the Snake River valley have fallen
down on their promised payments.
Therefore, the secretary held he could
not in good faith sign the contract,
Notwithstanding that options given by
the power company expire tomorrow.
Secretary Fall, however, is hopeful the
matter may be worked out, and he will
ask for renewal of the option for an
other sixty days. Whether or not this
extension can be obtained depends
largely upon the attitude of the Guar
antee Trust company of New York,
which holds the bonds of the power
company.
Before announcing his decision, he
gave an extended hearing to Senator'S
Borah and Gooding, Irrigation Direc-
tor Swendsen of the state of Idaho, w.
e. Sheppard of Twin Falls and L. L.
Evans of American Falls, Director
Davis of the reclamation service and
Assistant Secretary Finey also being
present. The Importance of the Amer
lean Falls project was fully set forth
by the various members of the Idaho
delegation, and the bearing of this
project on the ultimate delevopment of
Snake River valley was emphasized.
Merits Were Stressed.
The secretary was told that the car
rying through of this undertaking
would result ultimately in the utiliza-
ton of every bit of water of Snake riv-
er' and so 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 utmost
favor; he had visited the project last
summer; he was ready to admit the
merits of the proposal; he wanted 10
AID In every proper way, but he ex-
planned the depleted condition of the
reclamation fund, and said that under
existing law there is no new money in
sight for that fund above what is re-
quired for projects we'll under way.
He also pointed out that the private
irrigation companies of Snake River
valley which have subscribed for water
have not made their initial payments,
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 pay
ment of $250,00Q at the time the con-
tract is signed, and like amount for
three successive years thereafter,
$1,000,000 in all. With absolutely no
funds on hand or in sight, the score
tary said he could not obligate the
government to make the purchase.
Contract Is Favored.
Secretary Fall intimated, however,
that If congress shall pass the Smith
McNary bill, or 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 be renewed, or
II the private companies, which are
now in default, should come forward
with their payments, he would be glad
to approve the contract
The Idaho delegation was disappoint-
ed at the refusal of Secretary Fall to
sign, but admitted that, under the cir
cumstances, he could hardly be ex-
pected to take any other than the stand
he did, There is considerable optim-
ism among the men who called on the
secretary that the Smith-McNary bill
may be passed by congress, and if that
comes about, they feel confident the
Falls project will go for
ward, and the contract with the Idaho
Power company will be closed. Mean
time, efforts will be made to bring
about payments by the private irriga-
ton companies which have made con-
tracts, in the hope that money from
that source may be raised within the
next sixty days.