470 ANNUAL REPORT SMITHSONIAN INSTITUTION, 1915. 



One feature of the law that has been criticised is the absence of 

 any test or qualification for settlers on the reclamation projects. 

 Any citizen who has not exhausted his homestead right may take 

 up a farm unit. Many come in who are unfitted for the' arduous 

 task of developing the raw land or who lack the necessary capital 

 to develop their farms and tide them over the nonproductive period 

 at the start. The result may be disastrous to the individual and 

 postpones until his successor is established the payments to the 

 United States for building the works. 



Another point of weakness relates to the private lands within the 

 Government projects. There is naturally a tendency to hold these 

 for high prices, such that large owners may realize great profits or 

 " unearned increment " due to the Government construction. The 

 reclamation, act sought to force subdivision of large holdings by 

 limiting to 160 acres the area for which any person could acquire a 

 water right. This did not prevent the owners from holding the 

 excess at high prices, and the reclamation extension act seeks to 

 meet the situation by providing that to be included in a project the 

 excess areas must be sold at a price fixed by the Secretary of the 

 Interior. The efficacy of this provision has yet to be demonstrated. 



The principal change in the law made by the extension act, how- 

 ever, was to provide easier payments and extend the time in which 

 the irrigators are required to refund the project costs. The act of 

 1902 provided for repayment in 10 annual installments. The exten- 

 sion act spreads the payments over 20 years. In the case of a new 

 entry or application only an initial payment of 5 per cent is required 

 in the first five j^ears. This gives the settler a liberal period in which 

 to put his farm on a producing basis, during which he may apply 

 his capital to that end unhampered by the necessity of meeting 

 payments on the water-right charges. A liberal extension was un- 

 doubtedly needed in a great many cases and the first effect of this 

 recent legislation has been to create a better feeling between the 

 water users and the Government with the increased hope of success 

 in establishing permanent homes. 



Another important feature of the extension act, in line with the 

 policy of the fullest possible cooperation between the water users 

 and Keclamation Service, is the provision that after the construction 

 cost is once fixed by public notice it may not be increased through 

 additional construction except after approval by the water users, 

 expressed through individual vote or contract. 



COMPLETED WORK. 



The Reclamation Service has completed 23 projects or units to the 

 point where the systems are operated and water supplied the farmers 

 for crop production. 



