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Sixtieth Congress, first session, presented by Mr. Flint to the Senate on May 22, 1908, and ordered printed, contains the only reference to the issue of certificates by water users' associations found in the record of the proceedings of the committee. Copy of said document is herewith attached, marked "Exhibit A.” Respectfully submitted.

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WM. HALL SMITH, Clerk.

Certificate No.

WILLISTON WATER USERS' ASSOCIATION.

day of

This certificate, issued this 19, is evidence that work has been done or materials or supplies furnished for Williston project, North Dakota, to the value of forty dollars. The said amount will be credited on the installments due or to become due for a water right on lands held or entered under the said project under the reclamation act. Such credit may be allowed separately for the portion of the installment on account of the building charge or on account of the portion of the installment for operation and maintenance on such lands for the current or prior years, and for operation and maintenance for subsequent years, subject to future determination of the amount of such operation and maintenance charges. This certificate, if lost, can not be replaced, and if altered in any way will not be accepted. Registered: The duplicate of this certificate has been registered in the local office of the Reclamation Service. This certificate will have no value unless found to be an exact copy of registered duplicate.

[CORPORATE SEAL.]

By

WILLISTON WATER USERS' ASSOCIATION,
Secretary.

Certificate No.

This duplicate has no redeemable value.
SALT RIVER VALLEY WATER USERS' ASSOCIATION.

[Duplicate.] day of

This certificate, issued this19-, is evidence that work has been done or materials or supplies furnished for Salt River project, Arizona, to the value of dollars. The said amount will be credited on the installments due or to become due for a water right on lands held or entered under the said project under the reclamation act. Such credit may be allowed separately for the portion of the installment on account of the building charge or on account of the portion of the installment for operation and maintenance on such lands for the current or prior years, and for operation and maintenance for subsequent years, subject to future determination of the amount of such operation and maintenance charges. This certificate, if lost, can not be replaced, and if altered in any way will not be accepted. SALT RIVER VALLEY WATER USERS' ASSOCIATION, Secretary.

By

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This certificate is tendered and accepted for credit upon reclamation water-right charges on the said project, and title therein to the amount shown below is surrendered and applied upon the portion or portions of installments of such charges accruing under the water-right application upon the lands described in the following report of canceled cooperation certificates:

Total amount of this certificate applied on report No.

Of this certificate $

Of this certificate $

Of this certificate $

Of this certificate $

applied on report No.
applied on report No.
applied on report No.
applied on report No.

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This certificate is tendered and accepted for credit upon reclamation water-right charges on the said project, and title therein to the amount shown below is surrendered and applied upon the portion or portions of installments of such charges accruing under the water-right application upon the lands described in the following report of canceled cooperation certificates:

Total amount of this certificate applied on report No.

Of this certificate $

applied on report No.

Of this certificate $

applied on report No.

Of this certificate $

applied on report No.

Of this certificate $

applied on report No.

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(On the stub:) Certificate No.

Date of approval,

19. To

on account of work done or materials furnished on estimate unit, Williston project, State of North Dakota. Approved by

Date issued,

Amount, $40. Issued

1156

Reorganization of Reclamation Service.

SECRETARY'S OFFICE, DEPARTMENT OF THE INTERIOR,
Washington, D. C., June 2, 1908.

DEAR SIR: During the summer I desire that you have made a careful examination of the condition of the Reclamation Service to the end that every possible simplification and improvement in business methods may be adopted. You have before you the various suggestions made by the special agents of the department who have been studying the general question of business methods, and the administrative committee which I have appointed will cooperate with you in putting into effect any change that may be found desirable.

I wish you to give the Commissioner of the General Land Office such assistance as he may desire in the examinations which he is making of all selections that have been made under the Carey Act and of all grants that have been made by the Federal Government of reservoir water rights of way for irrigation or power purposes. I desire to have the fullest possible information by next November on both of these subjects. Any information that you may have or may obtain during the summer you will please give to the Commissioner of the General Land Office.

I have directed the Assistant Attorney-General to confer with you regarding a definite method of procedure in handling appeals of contractors from the decisions of the chief engineer or yourself in the final settlement of contracts. My impression is that it will be wise to require the contractor making the appeal to file with me a written statement covering every point, this statement to be submitted to the chief engineer for his comment or answer, and that no oral hearing will be granted until the Secretary has considered the written appeal and determined whether a hearing on any of the special points raised be advisable. Furthermore, I wish you to consider with the Assistant Attorney-General what questions should be subject to appeal. It seems to me that the appeals should be limited to questions involving the interpretation of the contract, or charges attacking the integrity of officers of the service, eliminating questions of pure engineering or technical skill. I, of course, do not desire to cut off a contractor from presenting any legitimate claim, but I have found from experience that there is serious difficulty in attempting to deal with a general appeal.

I desire your field officers to note carefully the results under the field regulations approved by the Civil Service Commission, and to suggest any modifications that may be necessary. On each project the engineer in charge must report promptly the appointments and changes in his service, so that there may be no misunderstanding between the Civil Service Commission and the department.

I wish you to give to the General Land Office, in addition to the information I have referred to regarding water rights and reservoir sites, all the information your service can obtain regarding the possible power sites on locations not hitherto filed upon, to the end that, if proper and necessary, withdrawals may be made.

Very respectfully,

The DIRECTOR OF THE RECLAMATION SERVICE.

JAMES RUDOLPH GARFIELD,

Secretary.

4649 Confidential.]

DEPARTMENT OF THE INTERIOR,
UNITED STATES RECLAMATION SERVICE,
OFFICE OF THE DIRECTOR,
Washington, D. C., June 17, 1909.

DEAR C. J.: The 7th anniversary of the reclamation act was celebrated by the issue of the accompanying clipping authentic, but denied as such.

President Taft sent for Mr. Davis to explain that this was unauthorized, but, unfortunately, Mr. Davis had been told directly these same things, so that he knew (but could not tell Mr. Taft) that the statements were too true as to proposed changes, contemplated but not officially revealed.

G. P. arrived to-day and went to see Taft also, and was assured that things were O. K.-but. G. P. thinks that to save the service we-you and I should get together as soon as possible and plan an active campaign to have every friend of the service write or call personally on Taft and impress him with the fact that the service must not be made a political machine nor its usefulness destroyed by alarming the men with threats of future changes. We must evidently keep up a hot campaign on Taft to prevent actions being taken that he would not approve of if he knew about them in advance.

Now is the time to show whether the cause of effective administration has friends or whether men like Vivian are to be quietly put in. Do your very best and keep in touch with me, confidentially, as this clipping is a feeler given out in such a way that it can be disclaimed, but correct in general-embodying things that have been said again and again to Davis and others.

F. H. N.

1770

[Washington Post, June 17, 1909.]

MAY REPLACE NEWELL-SECRETARY BALLINGER DESIRES NEW RECLAMATION HEADSR. H. THOMSON MENTIONED-PRESENT INCUMBENT, IT IS STATED, WILL BE RETAINED AS GENERAL CONSULTING ENGINEER-A. C. CAMPBELL, OF NEW MEXICO, MAY SUPPLANT MORRIS BIEN, NOW HEAD OF LEGAL DEPARTMENT OF SERVICE.

If Secretary of the Interior Ballinger is able to carry his point, F. H. Newell will be retired from the office of Director of the United States Reclamation Service some time during the fall. He probably will be succeeded by a man now in the government service. It is said that R. H. Thomson, of Seattle, is the person Secretary Ballinger has in mind for the position. It is not known that Mr. Thomson would accept the appointment; in fact, there is doubt about it, but Mr. Ballinger would like to appoint him, and it is said that the place will be offered to him as soon as a decision is reached with reference to Mr. Newell.

Mr. Newell, unless he so desires, will not sever his connection with the Reclamation Service, but will be retained as an engineer, probably a general consulting engineer.

MAY SUPPLANT BIEN.

It also is stated that Morris Bien, head of the legal department of the Reclamation Service, will be removed and A. C. Campbell, of New Mexico, now a special attorney of the Court of Claims in this city, be appointed. From reliable sources it is learned that the Attorney-General has been consulted in reference to the particular fitness of Mr. Campbell and that the special attorney received the recommendation of the chief of the Department of Justice.

In the case of Mr. Newell, it is said that efforts have been made in the past to have him replaced. About the time the change in the administration took place several western Senators were anxious to secure his removal. Secretary Ballinger, it is said, is aware that there is friction in the service and is anxious to eliminate that.

RATES MR. NEWELL HIGHLY.

Mr. Ballinger appreciates Mr. Newell's abilities as an engineer, but is inclined to the belief that he can find a more satisfactory administrative officer. By retaining Mr. Newell as an engineer officer he can save to the Reclamation Service the valuable advice of the present director on all problems affecting construction.

Mr. Ballinger is not ready to recommend a change at present. It is said he desires more detailed information before taking a radical step. During the summer the Secretary will visit personally a number of government irrigation projects, especially those that have given rise to trouble. He probably will accompany the President on his trip west. He desires, it is said, to interest the President in the matter and have him sanction any change the Secretary might desire to make.

1907

PORTLAND, OREG., August 2, 1909.

MY DEAR MR. PRESIDENT: I have just completed a conference in reference to the apportionment of the reclamation fund for the coming year with the director, Chief Engineer Davis, and the seven supervising engineers of the Reclamation Service in this city and have also, since leaving Washington, spent most of my time in visiting and studying the following government reclamation projects: The North Platte, in Nebraska; the Shoshone, in Wyoming; the Huntley, in Montana; the Umatilla, in Oregon; the Payette-Boise and Minidoka, in Idaho, to all of which except one I was accompanied by Chief Engineer Davis and the supervising engineer of the several divisions.

I am very much exercised over the conditions which I find, particularly in regard to the lack of funds necessary to complete the projects under way and bring about an adjustment of expenditures within the several reclamation States, as contemplated by the reclamation act. It is estimated by the supervising engineers that there is needed for the coming year on the various government projects approximately $26,000,000 and there is available only $11,000,000. This $11,000,000 was tentatively apportioned at the conference in Portland to take care of the most pressing needs of the service and does not take into consideration the provisions of the ninth section of the act of June 17, 1902, which declare it to be the "duty of the Secretary of the Interior in carrying out the provisions of this act, so far as the same may be practicable and subject to the existence of feasible irrigation projects, to spend the major portion of the sum arising within each State and Territory, etc.'

No feasible project in the full sense has been presented in Oklahoma; hence no funds have been spent in that State except for preliminary investigation. Several of the States and Territories have had spent within them a large excess of funds, notably Nevada, Nebraska, Arizona, Idaho, and Utah. Oregon and California have not had their full quota by a large percentage, and the time limit provided for by the act for such adjustment will accrue in 1912. Oregon presents certain feasible projects in addition to those under way, for which the reclamation fund, if distributed as recommended by the engineers, would not permit of construction. There are at least two feasible projects presented in Oregon, and I understand additional feasible projects are possible in California which could be taken up were funds available. In Oregon one is the Malheur; another is the proposed extension of the Umatilla project. I apprehend, if nothing is done by the Government with the Malheur project, that great disappointment will exist among the settlers in the Malheur Valley and that the delegation in Congress from Oregon will be likewise disappointed. On my way to the projects in Idaho I visited the Malheur country and talked with the people, explaining to them the difficulties confronting the Government in the way of funds. Notwithstanding this, they were unanimous in their desire that some effort should be made by the Government in their behalf. I have been appealed to by all of the delegation in Congress to favorably consider the taking up of this project, they in turn, of course, being importuned by the settlers and landowners in this behalf.

In view of the fact that the Government has undertaken a greater number of projects than it can complete with reasonable businesslike dispatch with the funds at its disposal, I am inclined to believe that it is an unwise policy to undertake any new projects until those under construction are completed and the fund replenished

by repayment from constructed portions and the sale of public lands sufficient to authorize them to be taken up and completed in a businesslike manner, as contemplated by the act. I am disappointed to find in a number of the projects nearly completed that the advancement of agricultural development has proceeded so slowly and many of the settlers are so impecunious that they will, in many instances, be unable to meet their installments as they fall due. Had the settlers been prohibited from entering upon the projects prior to water being available to irrigate their lands these conditions would have been practically avoided. 1908 I am impressed with the belief that some of the projects have been entered into without due consideration as to their feasibility, taking into consideration climatic conditions, soil, the cost of construction, maintenance, and operation. I have no doubt that political pressure has had something to do with these conditions. I mention it not by way of criticism but to advise you of the situation, as, for example, the Williston project in North Dakota is a pumping project, power generated by steam for which coal is mined on adjacent lands; the irrigable area is small and the cost of maintenance is extremely high; the settlers in favorable seasons take practically no water and in others clamor for water beyond the capacity of the plant.

In the Umatilla and a portion of the Minidoka projects the shifting sands with high winds make it difficult for the settlers for the first few years to raise crops of any kind and the ditches and laterals are expensive to maintain because of being filled with drifting sand. I was met at several of these projects by settlers without means and without crops urgently insisting upon an extension of time for the payment of their installments, a condition which will require serious and careful consideration. On most of the projects the maintenance charges, on account of the ditches and canals being new, are greater than they will be after irrigation has been carried on for several years. The fixed charges, such as salaries, etc., are also burdensome because of the lack of funds to promptly complete the projects. Notwithstanding these adverse conditions, I do not wish you to infer that I am not keenly alive to the advantages secured by the moneys expended by the Government in these projects, as I think, in course of time, they can, with few exceptions, be worked out as highly advantageous as a means of producing valuable agricultural settlements where otherwise the lands would be practically valueless, and, furthermore, the Government construction has been of a type illustrative of the best system for irrigation, and I wish here to commend the engineers and employees of the service in the field as a highly efficient and wellorganized force. I am not ready, however, to say that improvements could not be made in the service in the line of more businesslike methods and a saving of expense. In view of the conditions found by me, so far as I have visited the projects, I am of the opinion that an effort should be made to secure sufficient additional funds within the next year to complete the projects now under construction. My present view is that this may be done by securing authority from Congress to issue bonds against the reclamation fund, which accumulates from the sale of public lands and from the payment of installments for the cost of construction. If the Government could thus provide an additional fund of $10,000,000, I think it would be ample to take care of all requirements until the regular fund accumulated sufficient to pay off the bonds and take up new projects. In the meantime, as fast as construction is completed, the expenses should be reduced accordingly. I do not believe that political consideration should in any respect control the investment of this fund, nor do I think the Government should undertake any new work until it has readjusted present conditions and gotten them on a thorough business basis. I am encouraging the letting of contracts for small parcels of work where it can be done by settlers and heavy machinery is unnecessary. With the view of assisting settlers in meeting their payments and in performing their obligations in cultivating and proving up on their lands, I am modifying the regulations so far as the law will permit to relieve the embarrassment to those on the various projects.

I would like an expression from you as to whether or not you concur with my views as above explained and would be pleased to have any suggestions or advice which you feel should be considered in connection with any of these matters. I realize the difficulty of placing before you by letter the conditions as fully as they could be explained were it possible for me to discuss them with you. It would relieve me very much to have you give this your early attention and to have your views as above suggested. I will withhold my approval of the estimates for future work or the undertaking of extensions until I hear from you. I I am returning to Seattle to-night.

Sincerely, yours,

Hon. Wм. H. TAFT,

The White House, Washington, D. C.
48412-10-VOL 2- -27

(Signed)

R. A. BALLINGER.

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