IRRIGATION DISTRICT OPERATION AND FINAj 45 
THE PROMOTION PHASE. 
The third phase, or second period of promotion, reached its climax 
about 1910 and ended two or three years later. The principal ac- 
tivities were in Colorado, but extended to Wyoming. Utah. Idaho, 
and Oregon as well. Colorado, however, for reasons stated below, 
provided the most fertile and extensive field for speculation and fur- 
nished most of the financial failures. 
The promotion of irrigation districts at this time was not an isolated 
feature of irrigation development but was practically contempo- 
raneous with Carey Act development in the Northwest. Activities 
under the Carey Act were largely centered in Idaho and Wyoming, 9 
in which States there were not so many speculative district enter- 
prises. On the other hand, the irrigation district idea claimed most 
of the attention of Colorado promoters. Speculation in irrigation 
projects was prevalent at the time and became identified with the 
irrigation districts in Colorado because of the lack of safeguards then 
provided by the irrigation district laws against its abuse. The pro- 
moter was not working alone in his efforts for large and immediate 
profits, but was ably seconded by landowners and bond dealei 
of whom had but one thought in mind — to exploit the situation I 
utmost extent, and then " to get from under." The result v 
repetition of the early California experience, with a nation-wide dis- 
crediting of irrigation securities which affected good irrigation bonds 
as well as poor ones and from which the irrigation bond market has 
not. even yet. fully recovered. Not all Colorado districts organized 
at this time were of this type. Many were perfectly worthy and 
feasible enterprises, but the effect of the large number of defaults 
and compromises on the investing public has greatly overshadowed 
the fact that Colorado has some excellent districts that have paid all 
obligations promptly as due. 
DEVELOPMENT IN THE SEVERAL STATES. 
The foregoing discussion has dealt with irrigation district develop- 
ment in the Western States as a whole. The extent and rapidity 
of development in each State are shown in Tables 1 to 3, inclusive, 
and the character of such development is here briefly summarized: 
Arizona. — The first irrigation district law of Arizona was approved 
May IS, 1912, and the latest complete enactment was in 1921. The 
small amount of development that has yet taken place has occurred 
mainly in the lower Colorado and lower Gila Valleys near Yuma and 
in the territory bordering the Salt River Valley project about Phoenix. 
California. — The conditions which led to the enactment of the 
Wright Act March 7. 1887, and the operations under that law have 
already been touched upon. In 1897 an entirely new law was passed 
which as amended is still in force. Among other changes made by 
the act of 1897, the procedure for formation of districts and lor issu- 
ing bonds was altered in an attempt to avoid further district disaster. 
For 12 years after this reenactment no new districts were formed in 
California, the main activity being concerned with winding up the 
affairs of insolvent districts and with solving the problems still faced 
by the few old districts that proved successful. 
» Irrigation under the provisions of the Carey Act. By Guy Ervin, U. S. Dept. Agric. Circular 124. 
