LAND RECLAMATION POLICIES IN THE UNITED STATES 19 
A review of the experience of our western States in aiding irriga- 
tion development, by providing for the organization of districts and 
in attempting to give district bonds a standing in the market leads to 
the following conclusions: 
Each advanced step in public supervision has, for a time, been ef- 
fective in promoting the sale of bonds. 
The latest laws, providing for State certification of bonds as legal 
investments for trust funds, etc., seem to go as far as it is possible to 
go in public supervision that involves no public liability. These laws 
contain ample authority for investigation and the practice in the 
various States seems to be to include all reasonable safeguards. The 
fact remains, however, that some certified bonds are in default and 
there is a widespread belief that others soon will be. 
Even if it proves that the security behind the bonds is sufficient 
to prevent loss on the part of bondholders, it will take but a few de- 
faults to render the scheme ineffective, since bond buyers do not care 
for investments that necessitate foreclosure. 
In certifying bonds, the States assume no legal liability, although 
there may be some moral obligation if public and trust funds, or even 
private funds, are lost through default on bonds on which the State 
has put its stamp of approval. On the other hand, when the States 
have put their funds into paying interest, or buying bonds, or con- 
structing works, there is a distinct possibility of financial loss. That 
this is a real possibility is shown by Table 7, made up from a report 
on irrigation districts, prepared by the Bureau of Public Roads of 
the Depatment of Agriculture. 
Table 7. — Number, purpose, and present status of irrigation districts organized 
under State laics. 
All districts reported: 
Number 59S 
Number operating 244 
Percentage of total 40 .8 
Number gone out of business 158 
"Percentage of total 26.4 
Number in preliminary stages 196 
Percentage of total 32.8 
Districts organized for the purpose of developing new projects : 
Number 248 
Percentage of all districts : 41. 5 
Number operating 46 
Percentage of total of this class 18. 5 
Number gone out of business 110 
Percentage of total of this class - 44. 4 
Number in preliminary stages 92 
Percentage of total of this class 37. 1 
Districts organized for the purpose of taking over projects developed by 
other agencies : 
Number 350 
Percentage of all enterprises 58. 5 
Number operating 19S 
Percentage of total of this class 56. 6 
Number gone out of business 48 
Percentage of total of this class 13. 7 
Number in preliminary stages 104 
Percentage of total of this class 29. 7 
6 HutcMns, Wells A., Irrigation District Operation and Finance. United States De- 
partment of Agriculture Bulletin No. 1177. 
