selected under the terms of the so-called Carey Act, like the Shoshone project, Wyoming, ultimately had been thrown back by the State to the Federal Government for construction under the terms of the reclamation act. The citizens of Idaho made a very strong presentation to the effect that the development of that part of the State was practically stagnant; that the opportunities were unrivaled for aiding in the increase of homes for citizens, and that, if the Government would outline a comprehensive scheme and lend its aid in the building of the principal works, it would be possible for the citizens to help themselves and carry to successful issue the reorganization of the complicated canal system. It was well known that there would be no possibility of the Government completing the entire work in reasonable time with the funds available, but the arguments were directed toward helping the people to help themselves. The Huntley project, Montana, represents another duplication in this series. This was, however, taken up in pursuance of an act of Congress opening the Crow Indian Reservation to settlement, which explicitly authorized such a project. In the fall of 1905 and winter of 1906 the effort was made to adopt projects in each of the States where the requirements of section 9 of the reclamation act regarding distribution of expenditures had not been fully complied with. The following projects were then adopted: Garden City project, Kansas, September 16, 1905. Carlsbad project, New Mexico, November 28, 1905. Rio Grande project, New Mexico-Texas, December 2, 1905. Umatilla project, Oregon, December 4, 1905. Yakima project (Sunnyside and Tieton), Washington, December 12, 1905. Strawberry Valley project, Utah, December 16, 1905. Missouri River pumping projects, North Dakota, January 23, 1906. Sun River project, Montana, February 26, 1906. Of these the Garden City, Kans., Okanogan and Yakima, Wash., and Strawberry Valley, Utah, were the first projects within the respective States. The Carlsbad project, New Mexico, was adopted because of local conditions, the practical destruction of an existing irrigation system jeopardizing large property values and subjecting to destruction the homes and interests of about 1,000 residents. The people interested had failed to secure any relief from private investors and the urgency of the case so appealed to Secretary Hitchcock that he decided upon adopting the project. The Rio Grande project, New Mexico-Texas, was taken up at the request of the officials of the Department of State and in pursuance of an act of Congress for the purpose of settling an international dispute with the Republic of Mexico. The Umatilla project, Oregon, was adopted in order to comply with the terms of section 9 of the reclamation act as the projects then authorized in Oregon did not involve sufficient expenditures to meet those requirements of the law. The same is true in regard to the Missouri pumping projects in North Dakota. The proceeds from this State were large, but there did not appear to be any feasible projects for diverting water by gravity, because the principal rivers of the State, like the Missouri, had such gentle grade that they could not be diverted in this way. On the other hand, the existence of large deposits of coal suitable for steam purposes, made it practicable to mine this coal on the public lands, burn it at the mines, and produce power so cheaply that water could be pumped from Missouri River. The feasibility from an engineering standpoint was apparent and the principal point of uncertainty was that connected with the human element, namely, as to whether the people would use the water if supplied to them. Popular clamor was so strong and the petitions and representations of interested parties so conclusive, that it was deemed wise to erect pumping plants and give the matter thorough trial. Any other course was practically impossible as the money was available and it could not be said that the projects were not feasible. The Sun River project, Montana, was adopted in pursuance of a strong showing made by the citizens of the vicinity, a large delegation of whom visited the Secretary and urged its adoption. It was connected with an abandoned military reservation, the lands in which were made available for use under the reclamation act. The next project to be adopted was the Orland project, California, authorized December 18, 1906. This was done in order to meet the necessities of apportionment of expenditures in the State of California. The last project authorized was the Grand Valley project, Colorado, the preliminary steps looking toward construction being authorized by the Secretary September 23, 1909. It will be observed that there have been few cases of the adoption of more than one project in a State, and in these cases it has usually been in pursuance of legislation by Congress, or where a project is necessary in one State for the purpose of equalizing expenditures and contains lands in another. An estimate of the probable expenditures to December 31, 1911, compared with the estimated receipts in the several States and Territories under the reclamation act has been made. (See p. 40, Sixth Annual Report, Reclamation Service.) This shows a possible expenditure less than the restricted fund by about $1,000,000 in North Dakota and by about $2,500,000 in Oklahoma. In regard to these two States it may be said that diligent effort has been made to find feasible reclamation projects without success. NO NEW PROJECTS. Mr. PALMER. You do not contemplate undertaking any new ones? Mr. NEWELL. No new projects are contemplated by the department because those already begun should be pushed through to a revenue-returning basis or completed. The plans for them represent about as much work as can be done for many years under the funds available at present. In fact we have, say, 25 projects which can be compared, say, to the water-supply system of 25 cities. In one sense they may never be done, any more than a city may never be finished. The larger projects have been laid out on broad lines, so that the next generation may not be hampered in future developments; these projects can be enlarged step by step as the necessities require and money is available. Mr. ANDRUS. When the projects are finished the land becomes valuable? INCREASE IN LAND VALUES. Mr. NEWELL. The land becomes very valuable on some of them, and the land which at first seems very unpromising sometimes turns out to be the most valuable. For example, on the Umatilla project, in Oregon, when the Senate committee went over it last summer the individual members expressed great disgust with the land. They thought it absolutely useless, and that we should not have gone into that locality. Yet to-day that land is selling at $200 to $300 an acre, rough-looking, sandy land. It has great possibilities as a fruitproducing center, and we have no trouble in disposing of the water at $65 an acre. In fact, some of the people pay the entire amount at once instead of in ten annual installments. Mr. ANDRUS. When were the members of the Senate committee there? Mr. NEWELL. On September 2, 1909. They saw it in the rough state, with the wind blowing across it, and the sand drifting in clouds. The imagination of even those experienced western men could not picture the conditions which the men who lived there knew to exist. Some of the most unpromising projects have turned out to be among the best. Mr. ANDRUS. The State gets a benefit from these projects in the shape of an increase in taxes? Mr. NEWELL. Yes. The State receives a benefit also from bringing in a settled population, because the law requires that the entrymen must live on the soil and cultivate it in order to gain title. A well-developed community is thus produced in a few years in a remote part of the country. Following is a table which shows the theoretical gain made during 1909 through the result of the investment already made: Statement of total acreage in partly completed reclamation projects, acreage irrigated in 1909, estimated gross value of crops in 1909, and estimated increase in land values due to reclamation, revised to December 31, 1909. The above table shows that of the 1,625,129 acres which is included in what is called the first portions of these projects there were irrigated, in 1909, 405,157 acres, with a gross crop value of over $14,000,000. This is considered remarkably good returns for a new country, as of course much of the land has not been fully subdued nor brought up to its best producing capabilities. The total increase of land values, what might be termed the unearned increment of value, due to the existence of these works, has been estimated at over $105,000,000. Of course that is merely theoretical, but it shows the fact that the people appreciate not only the value of the work, but its immediate contribution to the wealth of the country. Mr. ANDRUS. What was the cost to the Government of these projects? Mr. NEWELL. The latest statement of the amount expended is as follows: List of projects, with amount expended to February 28, 1910. Mr. NEWELL. In answer to Mr. Andrus's last question I will say that these projects represent an investment of over $50,000,000. Of course not all of this $50,000,000 was in use, as many of the structures built have not yet been fully employed. Mr. ANDRUS. And before the Government commenced there were practically no crops raised on the ground? Mr. NEWELL. No, sir. Mr. ANDRUS. I suppose that is pretty accurate, that calculation of $14,000,000? Mr. NEWELL. Yes. Mr. ANDRUS. Fourteen million dollars' worth of crops for $50,000,000 of investment is pretty good. Mr. NEWELL. Part of that investment is a dead investment at present, but which will be utilized in the next year and in the years thereafter, as more land is put under cultivation. During 1909 an area of over 800,000 acres was under irrigation, or water was provided ready for use. Of that, only a little over 469,000 acres were producing crops. FARMS AVAILABLE. There are now on some of the projects many farms available for entry. One of the matters we are undertaking is to attract the attention of the people to these farms, so that the land which is now irrigated will be quickly taken up. The following table shows the number of farms available for entry at this date, the size of the farm units, and the cost of water right. This does not include the Truckee-Carson project, where there are other farms for which water can be supplied when the pending Lake Tahoe contract is acted upon. The best results in settlement follow when ample time is taken by the settlers in carefully studying the opportunities on each project, such, for example, when, avoiding a rush for free land, a man can come and look over the land, go home and talk the situation over with his wife, and finally come out with some knowledge of what he is to meet. If he does that he will be satisfied and stay on his farm. That is the case with settlements that have been opened up slowly, whereas in the case of those which have been settled with a rush many men have gone from the cities, with no knowledge of farming, with rosy ideas of what they have to do and what there is offered. As a result in such cases they are continually asking for special consideration or for an extension of time, while those who really know in advance about the conditions are more apt to make good. The CHAIRMAN. Let me ask you in regard to this table. Is there any land that is not occupied in these irrigated areas? Mr. NEWELL. There is a considerable amount of land unoccupied, as shown in the table just given. There are some projects where every acre is taken up, and in the case of other projects there is a con |