90 



THE IRRIGATION AGE. 



quent to 1901 providing simply for an extension of its appli- 

 cation. The States and Territories, which, by Statute, have 

 adopted the provisions of the Act and have passed Legis- 

 lative measures in accordance with it, are as follows : South 

 Dakota, Montana, Wyoming, Colorado, New Mexico, Utah, 

 Idaho and Oregon. In their essential features, the Carey 

 Act Statutes of the various states are similar the provi- 

 sions as to the qualifications to enter land and the securing of 

 title being laid down by the Federal Statute of 1894, with its 

 reference to the "Desert Land Act" of 1877, there can be no 

 variations in this respect. In all of the States named, any 

 citizen of the United States (or one who has filed his declara- 

 tion of intention to become a citizen) of the minimum age of 

 twenty-one, may file upon land under the Carey Act to the 

 extent of 160 acres, in local sub-divisions of forty, eighty, 

 one hundred and twenty or one hundred and sixty acres, even 

 though he may have exhausted his rights under all the 

 Federal Land Laws. One filing for an amount less than 160 

 acres does not exhaust the Entryman's rights ; he is privi- 

 leged to file upon lesser amounts, upon various projects if 

 need be, and in different states, should he so desire, until 

 he has exhausted his quota of 160 acres. Some of the 

 States exclude married women from the benefits of this Act, 

 while others notably Wyoming permit them to file. 



It required several years to overcome the prejudice of 

 Eastern financiers against Investments west of the Missouri 

 River, during which period the Act practically lay dormant. 



Although there is nothing in the Federal Statutes pro- 

 hibiting the States from constructing the necessary engineer- 

 ing works, none of the States, with the exception of Utah, 

 have adopted any Legislation toward this end. As a matter 

 of fact, few of the States had funds at hand for this pur- 

 pose, and, consequently there was no course open except 

 that of letting contracts for the execution of works to out- 

 side parties, to be financed by them, with the lands and 

 water rights pledged as first and prior lien security for their 

 reimbursement. 



It was not until the beginning of the present century that 

 Capital commenced to appreciate the possibilities of the Carey 

 Act. It was a field to be exploited that was entirely new 

 and without landmarks of any kind. Capital is not always 

 timid, but apparently it wished "to be shown." 



The methods to be pursued by Companies desiring to 

 contract with the States of Idaho, Wyoming and Colorado, 

 for the reclamation of arid lands, may be accepted as being 

 fairly representative of the methods pursued by the other 

 States named, and may prove of interest alike to the in- 

 tending Investor and to the Home-seeker. 



So far as the latter is concerned, it would appear to 

 be of some importance to him, also, to understand upon 

 what his own Contract with the Company is based, although 

 few seem to concern themselves with this feature. The 

 Contracts as heretofore drawn between the States and Con- 

 struction companies are not in all cases alike, being governed 

 largely by the individual merits of each Project, and being 

 subject to changes in the light of experience and a closer 

 knowledge of conditions. The Statutes of the States named 

 provide about as follows : First, a proposal is to be filed 

 with the State authorities for the withdrawal of the Lands 

 desired for reclamation. This proposal must describe the 

 source of water supply, the lands to be reclaimed and the 

 works by which it is proposed to reclaim them, the cost of 

 the works and the price per acre, at which the works 

 (including water-rights) are to be sold to Settlers. 



It may be wejl to refer to the fact that the settler in 

 acquiring "water-rights" is in effect, acquiring a proportion- 

 ate interest in the entire Irrigation plant. The proposal is 

 required to be accompanied by complete maps, plans and 

 estimates. It is then referred by the Land Board to the 

 State Engineer, whose duty it is to examine the plans, and 

 to report upon the merits of the Project to the Board, and 

 the approval of the Board is contingent upon the favorable 

 report of the Engineer, in which case the Board applies to 

 the Secretary of the Interior for the segregation of the 

 Lands, and as soon as their reservation has been effected, 

 the State enters into contracts with the Company. Usually 

 a certified check for an amount determined by the Land 

 Board is required to be deposited with the proposal as a guar- 

 antee of good faith. 



The Company contracting with the State is essentially 

 a Construction Company, whose duty it is, under the State 

 Law, according to the terms of the contract and under pen- 

 alty of forfeiture of a Bond, varying in character and amount 

 according to the State contracting, to build the Irrigation 



Works, and to furnish the necessary Capital therefore, the 

 Investment of which is to be secured by a lien upon the land 

 to be irrigated, and upon the Irrigation Works itself. The 

 price of water-rights (usually disposed of through the medium 

 of "shares" in an "Operating Company") (a subsidiary 

 Company) is recited in the Contract, also, while the Con- 

 tract between the Company and the Settler is subject to 

 approval by the State authorities. The intending Entryman 

 before filing upon Land is required to contract with the Com- 

 pany for water-rights (or shares in the works) in proportion 

 to the amount of land filed upon. The Construction Com- 

 pany is, by Statute and Contract, limited to a certain period 

 of time for the completion of the work. 



A word of explanation with regard to State Land 

 Boards: These are created in accordance with the Statutes 

 of the various States and usually comprise three or four 

 members, including the Governor of the State, the State 

 Engineer, and other Officials, and the Boards are variously 

 designated as "State Land Boards" or "Desert Land Boards." 

 They are charged with the execution of the Statutes and with 

 the administration of affairs thereunder. Most of the 

 States have provided for an Official known as the "Secretary 

 of the Board" or the "Commissioner of Lands," who re- 

 ceives a stated compensation for his services, and cares for 

 all routine business. To secure the funds necessary to carry 

 on the work, the Company is permitted to mortgage its equity 

 in the Project. 



The usual method of financing is to issue Bonds, secured, 

 as before described, by a first mortgage against the Property 

 described, the Construction Company executing a Deed of 

 Trust, whereby all its Property, Rights and Franchises are 

 transferred to a Trustee, by him to be held for the benefit of 

 the Bondholders according to the terms and conditions re- 

 cited in the Deed. These securities, of late years, have 

 come to be regarded with much favor upon the part of 

 Investors, they bear a six per cent interest rate, and, so far, 

 have sold at a price to yield six per cent. They are issued 

 to be retired serially in from ten to twelve years, and in de- 

 nominations of $500 to $1,000; in some cases as low as $100. 



The Contract with the State provides that a release from 

 the terms of the mortgage shall be given the Entryman when 

 full payment has been made to the Company. The terms 

 of the mortgage must, as a matter of course, conform to the 

 provisions of the State Law, and must be approved by the 

 Attorney-General. 



The details of administration of the Irrigation Works 

 while under control of the Company, and of the distribution 

 of water are also subject to the approval of the State authori- 

 ties, while copies of all the papers and maps are required 

 to be kept on file for public inspection at the office of the 

 Land Board. 



It will be seen that the rights of both the Construc- 

 tion Company and of the Settler are adequately guarded 

 by the Statutes and Regulations and, that, granted able and 

 honest supervision upon the part of the State Officials, the 

 risk of failure is reduced to a minimum. At present all 

 Companies operating under the Act are required to furnish 

 Annual Reports showing their Condition and the operations 

 in detail. This provision is waived in the case of persons 

 or Associations constructing works for their own use. 



The various forms to be used in making entry and final 

 proof, the forms of notices, proofs of cultivation, of final 

 certificates, and of assignments of entry are all prescribed by 

 the State, and will be explained in their order. 



The details of administration and of general Legislation 

 affecting Property Rights, etc., the lesser matters, but those 

 which concern the entryman most as affecting his mode of 

 living and future welfare, and which, as a rule, are forced 

 upon his attention after he has taken up his residence or 

 is called upon for deferred payments, will be explained at 

 length, and the differences existing between conditions in 

 various States pointed out. 



(Continued in January Number.) 



Send $2.60 for The Irrigation Age, one year, and 

 the Primer of Irrigation, a 260-page finely illustrated 

 work for new beginners in irrigation. 



