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THE IRRIGATION AGE. 



. This is a great work. Every farmer in the three 

 states should enter into it. It might well be taken 

 up by other states. 



After months of constant work by 

 Need of the IRRIGATION AGE and by settlers 



Irrigation on irrigation projects, the Fletcher 



Farm Banks Rural Credit Commission and the 

 Recognized congressional committees, consider- 

 ing rural credit legislation, have 

 finally recognized that the conditions of the ma- 

 jority of the farmers on irrigated lands of the West 

 are different from those of the cultivators of soil in 

 other sections of the country, and even the farmers 

 on the dry lands of the West. As a result, some 

 features may be incorporated in the final draft of 

 the rural credit bill which will inure to the benefit 

 of the irrigation farmers. 



The Rural Credit Commission had failed wholly 

 to recognize that on the Federal projects the Gov- 

 ernment held a first lien upon the farmer's land as 

 security for water charges; that under Carey Act 

 and privately constructed project's, Water Right 

 charges not fully paid up, also represent liens in va- 

 rious forms. The law, as now proposed, provides 

 only for first mortgages as security for long time 

 loans to farmers by the Farm banks. 



Secretary of the Interior Lane and the Reclama- 

 tion Commission finally presented a letter a few 

 days ago to the Fletcher conference, suggesting two 

 possible plans to overcome these conditions, at least 

 as far as the Federal projects were concerned. 



One of these provided that the Farmers' banks 

 should accept up to a certain percentage of valua- 

 tion, and as first mortgage security, a lien on irri- 

 gated lands, but recognize as prior that lien of the 

 Government for Water Right charges. Such a lien, 

 no matter what the law might say, would be little 

 else but a second mortgage. 



The second recommendation provided for an 

 appraisal of all lands on Federal projects, deduction 

 of the amount of Government Water Right lien, 

 and authorization to the banks to accept as security 

 for loans, mortgages up to fifty per cent of the re- 

 maining values. 



This latter plan is possibly the more feasible of 

 the two in working out a fiction of credit, but with 

 the present high charges for Water Rights and the 

 small capital which the average irrigation farmer 

 has had for the development of his farm, it really 

 leaves very little security for him, on which to 

 borrow. 



THE IRRIGATION AGE has urged repeatedly that 

 the present contracts with the Water Users on the 

 Federal Projects, by which the Government takes 

 a cut-throat first mortgage on the settler's land as 



security for Water Right charges, were wrong. The 

 Water Right is a franchise, which gives added value 

 to the settler's land and helps increase the wealth of 

 the nation as well as benefit its citizens. This fran- 

 chise should therefore be recognized as an asset, 

 and should be sufficient security for the Govern- 

 ments' charges. Without his water franchise, the 

 settler could not do intensified farming. Recognize 

 this water franchise as an asset; just reverse the 

 fiction of credit, and at the end of three years the 

 irrigation homesteader will have his land and his 

 improvements as security, which will be acceptable 

 in Farmers' banks or elsewhere. 



Keep an eye on the water power 

 Watch Out development on your projects, Fed- 

 For the eral Water Users. Years ago there 



Power was a plot hatched to ultimately 



Trust Plot turn the power plants over to the 

 big power interests. This was done 

 on many of the projects by charging a certain cost, 

 supposed to represent that of the power plants, to 

 the general fund of the Reclamation Service. Thus, 

 it was proposed, to hold title to the power in the 

 government and separate from the projects, which 

 are ultimately to go to the settlers. This, according 

 to the plan, would leave the Reclamation Service 

 free to lease the power to whom it may please. 

 The rest can be guessed. The big interests, who 

 might use this power to great advantage, are not 

 strange to Washington ways nor unacquainted with 

 those who may have a part in the leasing of the 

 power, if they finally get the chance. 



It is now proposed under the revaluation of the 

 projects, which Secretary Lane is planning, to 

 charge off still further power sites and develop- 

 ments, that are appurtenant to the projects. This 

 is part of the Reclamation Commission's scheme to 

 hold down the Water Right charges to the settlers 

 by placing the cost of the dams, reservoirs and 

 main works on the projects in the general fund 

 column of the Reclamation books. As tne Reclama- 

 tion law is now construed, reservoirs cannot be 

 turned over to the settlers except by express author- 

 ity of Congress. 



The water power on the projects has always 

 been considered the richest heritage of the settlers. 

 It is worth millions in actual value and many mil- 

 lions more in profits, if it can be put to work for 

 the farmers. It has been developed with Reclama- 

 tion funds. 



Keep your eyes open and keep them on the 

 power development on your project. Watch every 

 move in these revaluations closely. It may mean 

 many dollars in your pocket. 



