the construction of the irrigation system land values have increased very greatly. A railroad has been built into the country and a great development has resulted. A charge of $30 per acre is not only the actual cost, but is far less, as a rule, than the value, and less than the cost of water on most projects, consideration being had of the permanence and character of the structures.

Mr. HITCHCOCK. What was the cost that you said?

Mr. NEWELL. The actual cost as announced by the Secretary is $30 an acre. The question brought up is whether the statement made by the engineers before the contract was executed was of such a binding effect that the Secretary must build the project and charge less than cost because of the assertions made orally by engineers that they thought it would cost less.

The CHAIRMAN. You say that the statements in the daily press at that time justify the statement that you did not put in a proposition at $13?

Mr. NEWELL. Yes. The statement in the Klamath Falls Republican of December 1, 1904, is that Mr. Newell stated that:

The average cost, or the cost in most cases, has been about $26 an acre, but from the best information obtainable the Klamath country could be supplied at much less than this amount per acre. But all of this was speculative yet, as the estimates could not be made with any degree of accuracy until further developments were made in the local project.

The CHAIRMAN. You estimate here 30,900 acres. Is that all the land that is to be irrigated? Is there not some drainage to be attached to this as well as irrigation?

Mr. NEWELL. That 30,900 acres is the first unit of the project, and that is the land that is now opened at $30 an acre.

Mr. HITCHCOCK. Is that always the case here, that this acreage is only the first unit?

Mr. NEWELL. In several instances in other projects the figures given are for the first unit of the project, in others it is for the entire area. Mr. HITCHCOCK. Where you say in this Nebraska and Wyoming project 129,000 acres, you said that only about one-third of the cost of impounding that water for that project would be assessed against the land. Does this 129,000 acres represent only one-third of what may ultimately be irrigated?

Mr. NEWELL. Yes; that is true of that project.

The CHAIRMAN. That is true also of this Klamath project?

Mr. NEWELL. Yes, sir; that is true of the Klamath project. This is one of the undertakings which can be developed in a number of different ways. The first unit developed, and which is now under irrigation, is announced at $30 per acre. Work has been laid out for the development of other portions which will irrigate large acreages, future action being dependent upon the attitude of the people, who may or may not desire to have the water taken to their land. For example, we can take the water from Clear Lake reservoir, recently completed south into California, and irrigate a body of public lands there, or it can be taken north to irrigate a body of land in Oregon and almost wholly in private ownership. It is a question of policy for the department to settle and also a question of the desires of the people there as to which way the project will be developed. We have two strings to our bow, and from some standpoints it is a

matter of indifference as to which way it goes. Each way it can be made a success.

The CHAIRMAN. If you take it north, can the land south be irrigated by some other project?

Mr. NEWELL. No.

The CHAIRMAN. And if you take it south, can the land north be irrigated by some other project?

Mr. NEWELL. No. Whichever way the water is taken will result in subjecting the other land to sterility. The question arises, Shall we condemn a lot of land in private ownership to partial sterility in the future in favor of public land which can be made fertile, or shall we allow the people who are on that privately owned land to irrigate their farms and to remain on them? That is the question often before the department: "Shall we practically ruin one set of people to benefit another section?"

The CHAIRMAN. Let me ask you: Is there not quite a little bit of land to be drained there?

Mr. NEWELL. Yes. One of the large developments of this project is in regulating the supply by drains, by keeping water out of certain sinks and depressions. It is proposed to build a large canal or drain which would take the excess surface waters into Klamath River. By that means the marshes will gradually dry naturally, and will be aided by pumping. This process will reclaim some of the richest land in that country. The cost will all be equitably apportioned against this work. Much of the work is already done, and, so far as it relates to the marshes, the cost will be charged to the marshes, and so far as the cost relates to the uplands it will be charged to the uplands.

The CHAIRMAN. What will be the total amount of lands to be redeemed there by the entire project, drainage and otherwise?

Most

Mr. NEWELL. If the demand for irrigated lands continues and funds are available for operating the distributing systems, we should have in the next dozen years 100,000 acres, or even more, under irrigation. Apparently Klamath Falls is destined to become a railroad center, and to be in reach of the markets at San Francisco and Portland. of the irrigable lands in the region will produce some crop by dry farming, and these have had a higher acreage value than is usual with land within the arid region. When the project was begun, the land was selling at from $10 to $15 per acre and upward. It is now selling, it is claimed, at from $40 to $75 per acre without water right. gated land in alfalfa is quoted at $100 per acre and upward. Taking $50 an acre as a fair average value for the land in this project, the 30,000 acres now supplied with water represents the collateral value of $1,500,000, and this, of course, is only the first unit.

Irri

The recent crop successes show that the returns per acre for 1909 on the lands, many of which were new, were for alfalfa, $20.30; timothy, $20; grain and hay, $15; barley, $19.89; wheat, $15.66; potatoes, $115 per acre.

SOUTH DAKOTA-BELLEFOURCHE PROJECT.

This is what may be termed a public-land project, as a considerable portion of the irrigable area was unentered public land at the time that

operations were begun. It is essentially a storage project, depending for water supply largely upon the flood water developed from Bellefourche River and carried to a depression which has been closed up by an earthen dam, one of the largest in the United States, having a cubical content of 1,600,000 yards. The maximum height of the dam is 115 feet and the length of the crest a little over a mile. The reservoir created by the dam has a capacity of over 200,000 acre-feet. It is expected to store sufficient water for a little over 100,000 acres. The lands under this project were originally of value chiefly for grazing and sold for from $5 to $10 per acre. To-day, with the prospect of obtaining water at a charge of $30 per acre, they are selling for from $25 to $50. The lands already irrigated sell from $75 to $150 per acre, depending upon location and soil. Assuming that these lands would average $50 an acre, excluding water right, the basis of value will be $5,000,000, securing the investment of the Government. The crop returns from the irrigated lands show the average gross income of about $25 per acre for all crops, the lands not yet being brought into the most productive condition.

Water was turned into the Owl Creek reservoir early in March, 1910, and it was filled to a depth of about 45 feet, or to an elevation of 2,922 feet, so as to have water available for running into the ditches. There has been a plentiful supply in the river, and the reservoir will be raised slowly until about 25,000 acre-feet is stored.

Water-right applications are being made slowly by the farmers, and although many of them gained experience by the losses occasioned by being unprepared in the first lateral district to take water in former years, yet few of them seemed to have profited by this experience and have delayed the building of their farm laterals and preparing for water until the last minute, hoping for a rain. This is the unfortunate characteristic of so many of the newcomers. They can not disabuse themselves of the idea that in some way or other they may be saved the trouble and expense of irrigation, and they put off the necessary work until the drought or hot winds strike the crops. Before they can get their ditches in proper shape the crop losses have aggregated many times the cost of the necessary work. In taking up the payments in the first lateral district, which became delinquent on April 1, 1910, it is noted that there were a very small number of failures to pay. Of 140 farmers, all had paid except 15, and of this 15 it is not believed that there would exceed 3 who can not make payment, these 3 being on homesteads where they failed to take advantage of the use of water and secured practically no crop in 1909. Furthermore, they had too small an amount of money on which to establish a farm.

The operation and maintenance charge for 1910 is being collected before water is turned to the farmers. They have come generally to understand that it is the custom of the country not to receive water without paying for it. The 1908 construction charge has been paid on all lands where due, except by 12 owners. At least 8 of these 12 can pay without difficulty, and as one of the farmers, at least, has purchased an automobile, although he had not paid construction charges, it is apparent that the withholding of payment was not due to lack of money, but rather to the prevailing tendency to put off paying debts to the Government.

UTAH-STRAWBERRY VALLEY PROJECT.

The CHAIRMAN. We will not have time to ask questions and thoroughly discuss all of the projects this morning, but I wish to inquire about the Strawberry Valley project, in Utah, as, from the table before me, it does not seem to have any land irrigated and no money returned.

Mr. NEWELL. This is a project upon which no lands can be irrigated until the tunnel has been completed, bringing water from Strawberry Valley on the east side of the Uintah Range through to the drainage of Spanish Fork Creek. This tunnel is about 3 miles in length, and a little over a third of it has been driven, work being confined at present to the lower end. It is expected to begin work on the upper portal as soon as funds are available.

This is one of the projects which could probably not be built to advantage by private enterprise on account of the complications and of the long time required to complete the tunnel and other works, during which time the money invested is tied up and nonproductive. Under the reclamation act there are no interest charges, and hence it is possible to take the necessary time to build a tunnel of this character.

The CHAIRMAN. What is the estimated charge you will make per acre?

Mr. NEWELL. The charge has not yet been announced and can not be determined by the Secretary of the Interior until the work is nearing completion. It will probably be relatively high, possibly up to $60 per acre, but the lands supplied with water are valuable and the charge for water will be small compared to the benefits received. It is hoped ultimately to supply upward of 60,000 acres of lands located in a well cultivated valley containing numerous prosperous towns and villages. Lands which are ultimately to be watered by this project are now selling for from $50 to $250 per acre, depending upon location. Irrigated lands in the vicinity in a good state of cultivation sell from $100 to $500 per acre, according to the crops grown. A considerable portion of the lands to be watered is adapted to peaches and apples, and will attain still higher values. A conservative estimate has placed the value of the lands pledged to the Government at $100 per acre when the water is ready for delivery. On this basis the security of the Government is represented by nearly $6,000,000 to guarantee the repayment of the investment.

During the past month, May, 1910, the work on the tunnel has been continued at an average daily rate of 13.81 feet, the total excavation to May 31, 1910, being 7,508 feet, or nearly one-half of the distance, and the material in the heading is a coarse-grained sandstone and limestone. Some water has been encountered, and the tunnel is now discharging about 1.2 second-feet. Preparations are being made to concrete the floor and some of the walls as soon as possible, owing to the fact that the water and exposure to the air is softening the bottom and some of the walls. The power station has been operated successfully and without any unusual difficulties, furnishing power not only for driving the tunnel, but also for Spanish Fork City, for lighting and other purposes.

WASHINGTON—OKANOGAN PROJECT.

This project is approaching completion, the Conconully storage dam being nearly finished. This has been built by the hydraulic process, water under pressure being used to loosen the material and transport it to the side of the dam. The area now under ditch consists of about 2,000 acres. The valley in which the irrigated land is located, although it is near the Canadian border, is one of the most important fruit-growing sections of the country. Unirrigated lands are selling for from $100 to $300 per acre, an irrigated orchard bringing from $700 to $1,500 per acre. For cereals, alfalfa, etc., the annual income is stated to be $35 to $50 per acre and from fruits $250 and $600 per acre.

The embankment for the Conconully dam at the end of May was nearly completed. This has been built by hydraulic process, the puddle core being put in by hauling material by teams.

The delivery of water from the Conconully reservoir was begun early in May, the delivery ranging up to 87 second-feet, and the average for May, 1910, 61 second-feet. The inflow for the same month was approximately 113 second-feet. Water has been carried in the distributaries throughout the month, and owing to the lack of rain there has been great demand for water, the entire system being taxed to its utmost capacity, due not only to the demand for water, but to large seepage, which necessarily occurs with a new system.

WASHINGTON-YAKIMA PROJECT.

This project is one of the largest and most comprehensive which has been undertaken by the Reclamation Service. If carried out according to suggested plans, it will necessitate the expenditure of upward of $20,000,000. It was undertaken, however, with the belief that certain portions or units could be completed as parts of the whole, and as these were finished and the money returned to the fund, other units could be undertaken.

Before starting work in the Yakima Valley, efforts were made to find a considerable tract of public land in the State of Washington which could be reclaimed. Extensive surveys were made in what is known as the Palouse region, north of Snake River and east of Columbia, but owing to numerous complications this project was laid aside, and the Secretary of the Interior authorized the beginning of operations in the Yakima Valley and the acquisition of the Sunnyside canal, this being practically the key of the situation.

The valley is one of the most widely known of the irrigated regions in the West. The value of the apple orchards is perhaps as high as anywhere in the United States. The crop returns from 42,300 acres under the Sunnyside canal in 1909 show an aggregate yield of $2,961,000, or an average of $70 per acre, and lands which will be watered by this project are selling from $125 to $450 per acre, and orchards in bearing are valued at from $500 to $2,500 per acre.

During the month of May water has been delivered through the Sunnyside canal. Very satisfactory service has been given. Construction has proceeded on the enlargement of the main canal. At Bumping Lake work was resumed on the construction of the dam