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Location.-Salt River project is located in the south-central part of Arizona. The project lands are situated on both sides of the Salt River in the vicinity of Phoenix and Maricopa, Ariz. The present water supply is obtained from the natural flow of the Salt and Verde Rivers, supplemented by stored waters of the Salt River. Reservoirs are located in Maricopa and Gila Counties.

Purpose.--Existing project works furnish a water supply for the irrigation of 250,000 acres of highly productive farm land and town-site property in the vicinity of Phoenix. In addition to the above-mentioned project lands an area of about 88,000 acres of nonproject lands receive a full or partial water supply from the storage system.

Construction of the Bartlett Dam will conserve the floodwaters of the Verde River and furnish supplemental water for the project, the water supply of which is now inadequate. The other proposed work will increase the safety of the existing dams on the project.

Description. The existing project works consist of the Roosevelt Dam and power plant, Horse Mesa Dam and power plant, Mormon Flat Dam and power plant, Stewart Mountain Dam and power plant, Cave Creek flood-control dam, Granite Reef diversion dam, and canal systems on both sides of the Salt River.

The Roosevelt Dam and power plant, the Granite Reef Dam and the canal system were built by the Bureau of Reclamation. In 1917 the project works were turned over to the Salt River Valley Water I'rers' Association. The Horse Mesa, Mormon Flat, Stewart Mountain Dams and power plants, and the Cave Creek Dam have been built by the Salt River Valley Water 'sers' Association since 1917.

A brief description of the present construction program is contained in the following paragraphs.

Bartlett Dam, & reinforced concrete multiple arch structure will be built on the Verde River. The dam has a maximum height of 270 feet and a crest length of 750 feet The outlet works consist of two 72-inch steel pipes and three 6-foot by 7-foot 6-inch high pressure conduits. The spillway, located on the right abutment, will have a capacity of 175,000 second-feet and will be controlied by three 50 by 50 foot gates. The reservoir formed by the dam will have a capacity of about 200,000 acre-feet and cover an area of 3,200 acres.

Roosevelt Dam spillway gates are being lowered about 6 feet in order to increase the spillway capacity to 130,000 second-feet.

Roosevelt power canal and diversion dam are being rehabilitated.

The spillways at the Horne Mesa, Mormon Flat, and Stewart Mountain Dams are being enlarged and completed to furnish a spillway capacity of 150,000 secondfeet at each dam.

Miscellaneous betterments are to be made to the irrigation system to such an extent as funds will allow and as deterinined by the engineers of the Bureau and Association.

Estimated cost and funds available.-Construction work now in progress will cost $6,894,000.

Funds for the commencement of construction on the Bartlett Dam and other features were made available when the President allotted funds to the Bureau from the Emergency Relief Appropriation Act of 1935. The allotment specifically allocated $4,500,000 to this project. This allocation was later reduced to $3,500,000

In addition, $200.000 was allotted to the Bureau under the National Industrial Recovery Act of 1933 for use in connection with the construction of Bartlett Dam. This allotment was a part of the $494,000 20 percent of the cost of Bartiett Dam that the Office of Indian Affairs is to pay toward construction of the damn, as provideri in its contract with the Salt River Valley Water (sers' Associat:oni, whereby 20 percent of the stored water may be used for irrigation of lands on the Salt River Indian Reservation.

The second sesion of the Seventy-fourth Congress appropriated $1,500,000 from the reclamation fund for the fiscal year 1937.

A distribution of estimated costs and available funds to the various physcal features of the project is shown in the table at the end of this report

Repayment contracte.--As previosimly stated, the Roosevelt Dam, the Granite Reef diversion dam and canal system were built by the Bureau of Reclamation in 1911 and turned over to the Salt River Valley Water I'vrs' Asociation in i11. Of the original obligation of $10,210,000, before the present construction program was inaugurated, the association has repaid $6,811,000 or 67 percent. All pay. ments have been made when due.

On November 201, 1935, the Salt River Valley Water ters' Association erecuted a contract with the l'nited States providing for the construction of all the work

Listed herein. The contract limits the obligation of the association to $6,000,000 27. provides for the repayment in 40 annual installments.

is previously mentioned, the Office of Indian Affairs has entered into a contract rt the above-Damed association to pay 20 percent of the cost of construction of t'e Bartlett Dam in order to obtain a 20-percent interest in the water stored be! 'nd the dam, the stored water to be used on the Salt River Indian Reservation.

Construction program through the fiscal year 1937.-A contract for the constructan of the Bartlett Dam was awarded on July 2, 1936, and work was started on Angust 12, 1936. It is estimated that the dam will be about 30 percent completed at the end of the fiscal year.

Work on enlargement of the spillway of the Roosevelt Dam was started on Apnl 13, 1936, and completed on November 17, 1936.

The enlargement of the spillway of the Stewart Mountain Dam was started on January 19, 1936, and completed September 15, 1936.

The diversion dam for the power canal was started on October 23, 1936. This work will be completed early in the calendar year 1937.

On August 26, 1936, work was begun on the enlargement of the spillway at the Horse Mesa Dam. At the end of the fiscal year 1937 this work will be abɔut 85 percent completed.

Bids for the enlargement of the spillway at the Mormon Flat Dam will be opened on January 18, 1937. It is estimated that the work will be about 40 percent completed at the end of the fiscal year.

Construction proposed for the fiscal year 1938.—During the fiscal year 1937, work will be continued on the Bartlett Dam and on the enlargement of the spillways at the Horse Mesa and Mormon Flat Dams. At the end of the fiscal year, the work at the Horse Mesa and Mormon Flat Dams will be completed.

It is estimated that the Bartlett Dam will be approximately 70 percent complete on June 30, 1938.

Estimated cost, available funds and estimate for fiscal year 1938

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- $2.000 to be supplied from appropriations to the Office of Indian Affairs.

NATURE OF WORK ON SALT RIVER PROJECT

Mr. O'NEAL. May I ask about the Salt River project, is that just for extensions or new installation?

Mr. PAGE. That is for the construction of a new reservoir, the Tepairing of the spillways, the installation of spillways on some of the old dams built there years ago by the Salt River Valley Water Users. Association.

Mr. O'NEAL. Do I understand that all of the construction and all the cost incident to the Salt River project is to be completely repaid to the Reclamation Service?

Mr. Page. The original cost was not completely repaid. It was well along toward completion at the time they incurred this additional

obligation. This new construction and the remainder of the old construction will be repaid by the water users.

Mr. O'NEAL. I do not understand this chart on page 12. It says total amount due and paid. I wish you would explain that a little bit more. I did not understand that on page 14.

Mr. Page. This indicating) means the amount due, representing fees for the water rental charges, and that (indicating) represents the bill which was issued against the water users on the Salt River project for water rental.

Mr. O'NEAL. From the beginning down to date?

Mr. Page. Yes; and this amount (indicating) is the amount that has been paid. This (indicating) is the investment.

Mr. O'NEAL. Has anything ever been done toward repayment of any of the investment, and if so, where is that shown?

Mr. Page. That is the amount that has been billed, and the amount that has been paid. This (indicating) does not show the balance due the United States.

Mr. O'NEAL. Well, the total construction cost of the Salt River project was much more, $6,800,000.

Mr. KUBACH. The total obligation of the water users for the original construction work was a little more than $10,000,000. They had repaid $6,800,000 before the new obligation was incurred.

Mr. O'XEAL. Is there any table that you have, or that can be furnished to us showing the total cost and the total payments on those projects?

Mr. Page. Yes. That table already has been inserted.
Vir. O'NEAL. What does this $6,800,000 represent, on page 12?

Mr. Page. That represents the amount of the construction cost which has become due and payable under the contract with the Salt River Valley Water l'sers Association.

Mr. LEAVY. You see, Mr. O'Neal, part of it is not due yet.
Mr. O'NEAL. That is being carried forward to be repaid?

Mr. Page. Yes, from year to year. Nothing has been canceled. It will all have to be repaid.

Mr. O'NEAL. Could not the total figure be given to us?
Mr. Page. Yes.
Mr. O'NEAL. I think that would be very illuminating.

Mr. Page. Yes, sir. It is $9,377,000. This total includes the amount which has not yet become due under the original contract and the new obligation of $6,000,000 for the construction work now under way.

Mr. Rich. The Salt River project in Arizona is an old project that was authorized. The population that you have there at the present time is 155,000. Will there be any additional people coming there?

Mr. PAGE, Vo, sir. The new construction will bring no new people. It is merely the construction of works to provide a supplementary water supply; the construction of one more storage dam which will conserve the winter flow of the Verde River for an additional irrigation supply for the land now under cultivation.

Vir. Rom. Then the cost of that project, $19,638,000, divided by the population, vive you about $1,300 per capita.

Mr PAGE. Well, I do not just see what criterion that is. It is not a matter of cost per capita. It is a matter of a loan for the development of a community containing that number of people. Your

criterion takes no account of the activities of those people, nor what is produced. Much of the total cost already has been repaid, so the figure you give certainly is not applicable now.

Mr. Rich. Well, the only thing that it does, in my judgment, is to show that the Federal Government is advancing a lot of money for that development, and that the cost per capita is a very large sum of money.

Mr. PAGE. What it amounts to is this: The Federal Government is loaning to 150,000 people, or to the community, a sum of money for the development of that community. The entire community has been created soley by the water that we have applied to the desert land on which they live. The valuation of the entire community of many millions of dollars, was created due to the loan of this Federal money. It is being repaid. I might note that the Salt River project is the very heart of Arizona, supporting almost half of the State's population.

Mr. LEAVY. I want to supplement the record with one question that I think is apropos of Mr. Rich's inquiry, and that is, Has the Salt River project been able, through the years, to pay its current liabilities to the Federal Government?

Mr. PAGE. Yes, sir. It is a little ahead of its required payments. A census down there shows that the Salt River project spends for manufactured articles about $50,000,000 a year from the wealth produced on that irrigated section.

Mr. Rich. It is one of the projects that was started in 1903?
Mr. Page. Yes, sir.

Mr. Rich. They ought to be going back on a paying basis. They paid back into the reclamation fund $6,811,000.

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PINE RIVER PROJECT, COLORADO Mr. SCRUGHAM. The next project on the construction list is the Pine River project in Colorado, for which an item of $500,000 is proposed.

Mr. Page. I submit the justification as follows: Appropriation requested for fiscal year 1938, reclamation fund.---- $500, 000 Funds available, reclamation fund, fiscal year 1937.--

. 1, 000, 000 Amount necessary to complete after fiscal year 1938.-

1, 500, 000 Estimated cost----

---------------------------- 3, 000, 000 Location.-- The Pine River project is situated on the Pine River, in the southeastern part of La Plata County, Colo.

Description.—The 51,000 acres of irrigable land on the Pine River project lie on both sides of the Pine River in the vicinity of Bavfield and Ignacio, Colo. The area is now served by 17 different canals, all except 1 of which divert directly from the Pine River. Of the total area, 16,000 acres are on the Consolidated Ute Indian Reservation and 35,000 acres are the property of farmers outside the reservation. The water supply is obtained from the unregulated flow of the Pine River and is inadequate for the irrigable area.

At the present time the irrigated area on the reservation amounts to about 6,000 acres of land. However, the Office of Indian Affairs is expecting to extend the irrigation service to the entire 16,000 acres in the near future. The 35,000 acres outside the reservation have been under cultivation for many years. Most of the area was homesteaded under laws requiring a showing of use of water and the settlers believed they had obtained a right to the water which they had used on their lands. However, on October 25, 1930, a Federal court decree granted to the U'te Indians a right to a flow of 212.75 second-feet for the irrigation of 16,000 acres of land. This decree was given a priority of July 25, 1868. Al

How much money has been advanced by States, municipalities, and other interests under the terms of this appropriation?

Vír. Page. It has varied from year to year.

Vr. SORUGHAM. Particularly, what was the amount last year, and what do you anticipate this year?

Mr. Pagr. This last year we have had contributions from States of Wyoming, Idaho, and I'tah of $2,000 each. We have just received a contribution of $15,000 from Oregon for an investigation in that State. I do not believe anyone can make a precise estimate of what may be contributed next year. It is certain, however, that the sum for investigation which is set up here, $25,000, is wholly inadequate to meet the demand of the various States for investigations.

Mr. SCRIGHAM. Is this just an additional sum, or was the Budget asked for an additional sum?

Mr. Page. This is the only item in the Budget for investigational purposes, but, in answering your question, we asked for $600,000. Naturally, the investigation of projects is very important to the western States, because many people have projects which they believe are meritorious. These people are spending money on them. The advisability of these proposed projects should be determined in order that there may be a reservoir of projects for construction, and, at the same time in order to prevent a waste of money on infeasible projects.

Emergency fund allotments aggregating $1,874,000 were made to the Bureau of Reclamation during the fiscal years 1934-37 for serondary investigations, the same work this item in the bill covers. l'nless additional money is provided, obviously, this investigational program will be virtually discontinued.

OPERATION AND MAINTENANCE ADMINISTRATION

Mr. SCRIGHAM. The next item is "Operation and maintenance administration", which is as follows:

Operation and traintenance administration: For necessary pay of en.ployees, traveling and other expenses incident to il general suliiniration of reclamation projects, either operated ard 11 anitaited by the Bureau or transferred to water une Orvarzations for o ration and iraintenance, including giving information and advice to settlers on reclan ation projects in the selection of lands, equipment, and livestock, the preparation of land for irrigation, the selection of cross, 11.ethonte of irrigation and agricultural practice, and general farm managen ent, the cost of which wall be charged to the general reclanation fund and sluall not be charged as a part of the colmiriction or operation and maintenance cont payable by the water was under the projects, $75,000.

Mr. Page. The justification in support of this item is as follows:

An appropriation for operation and mairtranice nministration was first made for the fiscal year 1937. "Tir artistics of the Bureau have been greatlı espander in the past few years. There have included increased construction and consideration of importa't prulite and sial problems as thet atfert the repayment of the Govertnei.t'investiert T. !!!.il fauterine of operation, and to provide closer Detonal contart, the res*.*klit of arin terink of rating projects has been content in the Washington of cruder the direction of a serier af operation. The superintendents of the ofm rating projecte bow resurt directly to the Commissioner i1.-tead of to the chief pour unes live o rating districts have been established, each in charge of a dietrict a rvienr. The term "opention and maintenance" kan leeli utenleri Referalis in curring the rinning and distribution of irrigation water, and the maintenance and repair of irrigation structures. However, there are mans other problems to be dealt with if a project is to be a success socially and ecotelacalls. Anotag thors may be classed

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