72D CONGRESS 1st Session } SENATE { REPORT No. 262 TEMPORARY RELIEF FOR WATER USERS ON IRRIGATION PROJECTS OPERATED UNDER RECLAMATION LAW FEBRUARY 17 (calendar day, FEBRUARY 18), 1932.-Ordered to be printed Mr. CAREY, from the Committee on Irrigation and Reclamation, submitted the following REPORT [To accompany S. 3706] The Committee on Irrigation and Reclamation, to which was referred the bill (S. 3706) for the temporary relief of water users on irrigation projects constructed and operated under the reclamation law, having considered the same, report favorably thereon, with the recommendation that the bill do pass. The committee conducted extensive hearings, and was addressed by the Commissioner of Reclamation, Dr. Elwood Mead, and by representatives from the various reclamation projects in the West, and has unanimously reached the conclusion that this legislation is imperative in order to relieve the settlers on many of the projects, who are unable to meet their annual construction charges because of water shortage, due to unusual drought conditions throughout the arid States, and the low price of farm products, such as: Receipts on the Rio Grande project, where the crop is principally cotton, were reduced over 60 per cent, cotton being worth but little more than 5 cents per pound. There is really no market for potatoes produced on many of the projects in the Northwest. Butterfat at the present time is bringing only 18 cents per pound, eggs 8 cents per dozen, wool 14 cents per pound, lambs 4 cents per pound, hogs 4 cents per pound, and beef cattle 4 cents per pound, and wheat sold as low as 30 cents per bushel. As a matter of fact, everything that the farmer grows is selling for only about one-third of the cost of production. The pending bill does not involve any appropriation. The payments on reclamation projects have been quite satisfactory to the Reclamation Service up to the year 1930, but the extremely low prices of farm products for the past two years has caused the farmers to operate at heavy losses, both in 1930 and 1931. It was developed by the testimony that the farmers, in a great many instances, were compelled to mortgage their crops, livestock, and machinery to secure moneys to produce the crop in 1930 and then to borrow additional moneys to produce the crop of 1931, and owing to the unusually low prices, they were unable to repay those loans. At the present time many of the farmers have no money and are unable to borrow further through local agencies for the purpose of meeting their payments to the Government, and unless relief is granted, many will be forced to abandon their farms and join the great army of unemployed. On account of bank failures on some projects, many settlers have no credit facilities. This relief legislation is in line with laws heretofore enacted to aid the farmers on other than reclamation and drainage projects and will permit the water users in the arid regions to carry on their activities with the hope that prices next year will be sufficiently high to enable them to retrieve their losses. By reason of the fact that there is an excessive snowfall in the mountains of the West, there is every reason to believe that all of the projects will have an ample water supply for producing next year's crops. In this connection it is well to refer briefly to what has been accomplished under the reclamation law. According to the Commissioner of Reclamation, Dr. Elwood Mead, in his testimony before the subcommittee of the House Committee on Appropriations December 15, 1931, there are 40,354 irrigated farms on the 26 Federal reclamation projects, with a population of 165,956. There are located on these projects 213 cities and towns with a population of 472,723. There are 688 schools, 724 churches, and 120 banks with deposits of $134,261,170, and 226,014 depositors. Commissioner Mead, in his testimony before the Senate Committee on Irrigation and Reclamation, stated that they " recognized that due to the low price of crops last year it had left agriculture depressed and discouraged, and that it was desirable that this be recognized and that some form of relief be extended.” The bill under consideration provides for the temporary relief of water users on reclamation projects which are constructed or are being constructed under the reclamation law. Section 1 provides that the construction charges for 1931 which were due the 1st of last December shall be deferred until the end of the contract period and that 50 per cent of the construction charges for the current year shall be similarly deferred. Section 2 provides that this deferment shall apply to indivdual water users who are not on projects where districts or water users' associations have assumed the joint obligation for payment. Section 3 provides for an extension of time of one year for the beginning of construction of drainage on the Uncompahgre reclamation project, Colorado (Private No. 300, 71st Cong.), and also provides for the completion of the construction authorized by the act of Congress approved February 21, 1931 (Public No. 708), relating to the Grand Valley reclamation project, for one year. Section 4 provides that the water users' organization and the individual water users shall resume payment of charges in accordance with existing contracts at the end of the period for which deferment has been granted. Section 5 authorizes the Secretary of the Interior, in his discretion, to permit the adjustment of construction and operation and maintenance charges heretobefore deferred, on the basis authorized in sections 1 and 2 of this bill. Section 6 authorizes the Secretary of the Interior to supply water for irrigation purposes to districts or individuals who are delinquent in their payment for the calendar year 1930 or years prior thereto. Section 7 provides that any irrigation district or water users' association which has contracted to pay construction charges and is not in arrears for more than one calendar year may authorize the delivery of water to any individual water user who may be delinquent in his payments to the district or association. Section 8 provides that any profits accruing to the water users or district from the sale of power shall be deducted from the amount of any payment extended under the provisions of this bill, and that any such credits in excess of the construction charge shall be applied as now provided by law and contract. Section 9 provides that any payments of construction charges for the year 1931 which have been made heretofore, shall be credited upon succeeding payments as they become due, including maintenance and operation charges. Section 10 provides for the deferment of the repayment of the moneys advanced to the reclamation fund under the act of June 25, 1910, and the act of March 3, 1931, until July 1, 1935. 72D CONGRESS 1st Session } SENATE { REPORT No. 263 AMENDING SECTION 2 OF THE ACT OF FEBRUARY 25, 1927 FEBRUARY 17 (calendar day, FEBRUARY 18), 1932.-Ordered to be printed Mr. BRATTON, from the Committee on Irrigation and Reclamation, submitted the following REPORT [To accompany S. J. Res. 55] The Committee on Irrigation and Reclamation, to whom was referred Senate Joint Resolution 55, having considered the same, report favorably thereon with recommendation that it do pass without amendment. The act of February 25, 1927 (44 Stat., pt. 3, p. 1792), authorized an appropriation from the reclamation fund in the sum of $75,000, or so much thereof as may be necessary, for the relief of sufferers from the flood due to an overflow of the Rio Grande and its tributaries in New Mexico. Such act, as well as the act making the appropriation, contained no provision requiring the Rio Grande project, or the water users thereof, to reimburse the reclamation fund. Notwithstanding said fact, and after the money had been appropriated and virtually all of the approved claims paid, to wit, March 29, 1929, the Comptroller General rendered a decision holding that the Rio Grande project was obligated to reimburse the reclamation fund for the money thus expended. This resolution is curative in character and is designed merely to relieve the water users of said project from the effect of such decision. An identical resolution passed the Senate during the last session of the Congress. No change in the situation has occurred since that time. The report of the Interior Department on that measure, as well as a copy of the act approved February 25, 1927, herein before referred to, is attached. SR-72-1-VOL 1-29 |