REHABILITATION OF BITTER ROOT PROJECT, MONTANA An act for the rehabilitation of the Bitter Root irrigation project, Montana. (Act of [Sec. 1. Appropriation authorized.]-That there is hereby authorized to be appropriated from the reclamation fund established by the act of June 17, 1902 (Thirty-second Statutes, page 388), the sum of $750,000, or as much thereof as may be necessary to be used for the rehabilitation of the Bitter Root irrigation project in Montana. Sec. 2. [Liquidation of indebtedness-Construction, betterment, or repair work-Loan to irrigation district.]-The Secretary of the Interior, hereinafter styled the Secretary, is authorized to use money thus appropriated for the following purposes: (1) For liquidating bonded and other outstanding indebtedness of such irrigation project on such basis of valuation as the Secretary may regard as equitable, not exceeding 75 per centum of the principal and accrued interest, no portion of such outstanding indebtedness to be liquidated except a total outstanding indebtedness of such project is so liquidated; (2) For doing or causing to be done under his supervision any construction, betterment, or repair work necessary to place the irrigation system of such project in good operating condition, and as provided for in the contract hereinafter required; (3) For loaning to such irrigation district, hereinafter provided for, such funds as in the opinion of the Secretary are necessary for any construction, betterment, or repair work to place the irrigation system of such project in good operating condition. NOTES Liquidation of indebtedness.-The Bitter Root irrigation district, in negotiations with its creditors, pursuant to the requirement of subsection 1, section 2 of this act, located and deposited all except five bonds of $500 each. The Comptroller General, in decision A-34571 dated May 18, 1931, interpreting the last 20 words of this subsection, beginning with "no portion of", stated that substantial compliance with the law would be accomplished if the amount necessary to retire the five bonds on the same basis that the other indebtednesses of the irrigation district are to be liquidated under the act of July 3, 1930, is set aside and remains unexpended in the appropriation to take care of such bonds in the event the owners present the same and, in addition to this there be procured a bond of indemnity or such other security as will guarantee that neither the Government nor the irrigation district will ever have to pay any greater amount on account of said five bonds than 75 percent of principal and accrued interest if now paid with the other bonds now being liquidated. Comptroller General's decision A-34571 of July 23, 1931, outlines the procedure to be followed in connection with loans under the act of July 3, 1930. Form of deposit agreement to be executed by the creditors of the Bitter Root irrigation district was approved by the Comptroller General under date of February 13, 1931. Decision A-34571 requires the county treasurer of Ravalli County, Mont., constituted by the deposit agreement as the agent of the district creditors, to accept payment of the claim and to apportion the funds received to the various creditors, to render an accounting by periodical reports showing the disposition of the funds advanced to him, such reports to be supported by proper evidence of payments to the creditors. A further decision dated March 18, 1932, was rendered by the Comptroller General regarding evidence to be submitted to the General Accounting Office of payments to the creditors. REHABILITATION OF BITTER ROOT PROJECT, MONTANA 447 Reimbursement to District for money advanced. In decision A-34571 dated June 21, 1932, the Comptroller General authorized reimbursement to the Bitter Root irrigation district of an amount advanced by the district for construction, betterment, and repair, notwithstanding the provision of article 2 of the contract with the district that no expenditures would be made by the United States until settlement had been made with the creditors of the district. For regulations of the General Land Office under the foregoing act, see 53 I. D., 418-24, G. L. O. Circular No. 1257. Sec. 3. [Funds advanced to be repaid in not more than 40 years—Contracts by irrigation district for repayment.]-All funds so used or advanced shall be repaid to the United States within a period, to be fixed by the Secretary, of not more than forty years, with interest at the rate of 4 per centum per annum on the funds so used or advanced from the date of such use or advancement until repaid. Before any funds are so used or advanced a contract or contracts satisfactory to the Secretary shall be executed by an irrigation district, formed under State law, obligating such district to repay the funds so used or advanced as required by this act. Any contract so executed with such district shall require a lien on the land and on the irrigation systems of such project. The operation and maintenance of such project shall be continued by the authorities in charge under the supervision of the Secretary, so far as necessary to effectuate the purposes of this act. Sec. 4. [Penalty in case of default in payment-Enforcement of contract-Control of project-Delivery of water withheld.]-In case of default in the payment when due of any interest or other charges under any contract executed as herein provided there shall be added to the amount unpaid a penalty of one-half of 1 per centum of the amount unpaid on the 1st day of each month thereafter so long as such default shall continue, such penalties being in addition to the interest provided in section 3. The provisions of any contract_executed hereunder may be enforced by suit or by the foreclosure of any lien in the manner authorized by the State laws applicable in similar cases. In addition to other remedies the Secretary, in any contract executed hereunder, may provide that in case of default for more than twelve months in the payment of any installment, the control, operation, and maintenance of the project may, in the discretion of the Secretary, be assumed by the United States and the delivery of water withheld until payments are duly made in accordance with the contract requirements. Sec. 5. [Examination and investigation of project-Report of finding to Congress.]-No funds shall be appropriated for the purposes herein authorized until investigation and examination shall have been made of all pertinent conditions surrounding such project and until the Secretary has made a report of his finding in writing to Congress that in his opinion by the action proposed the project can and will be placed upon a sound basis from a financial and economic standpoint so that the funds so used and advanced will be returned to the United States. Sec. 6. [Powers of Secretary.]-The Secretary is authorized to perform any and all acts and to make and enforce all needful rules and regulations for effectuating the purposes of this act. SPECIAL PROVISIONS OF THE SECOND DEFICIENCY ACT, FISCAL YEAR 1930 An act making appropriations to supply deficiencies in certain apppropriations for the fiscal year ending June 30, 1930, and prior fiscal years, to provide supplemental appropriations for the fiscal years ending June 30, 1930, and June 30, 1931, and for other purposes. (Act July 3, 1930, ch. 846, 46 Stat. 860) * BUREAU OF RECLAMATION Boulder Canyon project: For the commencement of construction of a dam and incidental works in the main stream of the Colorado River at Black Canyon, to create a storage reservoir, and of a complete plant and incidental structures suitable for the fullest economic development of electrical energy from the water discharged from such reservoir; to acquire by proceedings in eminent domain, or otherwise, all lands, rights of way, and other property necessary for such purposes; and for incidental operations; as authorized by the Boulder Canyon project act, approved December 21, 1928 (U. S. C., Supp. III, title 33, ch. 15A); $10,660,000 to remain available until advanced to the Colorado River Dam fund, which amount shall be available for personal services in the District of Columbia and for all other objects of expenditure that are specified for projects included under the caption "Bureau of Reclamation" in the Interior Department appropriation acts for the fiscal years 1930 and 1931, without regard to the limitations of amounts therein set forth: Provided, That of the amount hereby appropriated, not to exceed $100,000 shall be available for investigation and reports as authorized by section 15 of the Boulder Canyon project act. (46 Stat. 877.) NOTE School buildings, transportation of pupils, swimming pools.-In decision A-38343 of September 29, 1931, the Comptroller General ruled that the above appropriation could not be used for construction of school buildings, transportation of pupils, or construction of a swimming pool. Upon request for reconsideration, however, the Comptroller General stated that the Colorado River Dam fund might be used for the construction of temporary buildings in which schools may be conducted during the current school year, the contractor to bear the expense of maintaining and operating the schools unless and until otherwise specifically provided for by law. See item in appropriation act of Apr. 22, 1932. Secondary projects: The sum of $25,000 of the appropriation of $275,000 for secondary projects, contained in the "First Deficiency Act, Fiscal Year 1930," is hereby made available for investigations 448 SECOND DEFICIENCY ACT FOR 1930 449 of water supply for the San Joaquin and Sacramento Valleys, California. (46 Stat. 878.) SEC. 5. This act may be cited as the "Second Deficiency Act, Fiscal Year 1930." (46 Stat. 918.) NOTES With reference to the citation to United States Code in this Canyon project act appears under title 43 instead of title 33. now United States Code, title 43, chapter 12A. 1 act the Boulder The citation is See notes entitled "Contracts held to be valid," following section 4, act of December 21, 1928. AMENDMENT OF ACT OF MAY 25, 1926, AFFECTING CHINOOK DIVISION, MILK RIVER PROJECT An act to amend the act of May 25, 1926, entitled "An act to adjust water-right charges, to grant certain other relief on the Federal irrigation projects, and for other purposes." (Act July 3, 1930, ch. 857, 46 Stat. 1010) [Sec. 1. Deduction from total cost of construction cost against permanently unproductive land-Suspension of payments against temporarily unproductive and other lands-Contracts to be executed.]-That the act of May 25, 1926 (Forty-fourth Statutes at Large, page 636), be, and the same is hereby, amended by adding after section 20 of said act sections 20-A and 20-B, as follows: "SEC. 20-A. There shall be deducted from the total cost chargeable to the Chinook division of this project the following sum: "(1) Twenty-one thousand six hundred and eighty-four dollars and fifty-eight cents, or such amount as represents the construction cost as found by the Secretary of the Interior against the following lands: "(a) One thousand seven hundred and seventy and seventeen onehundredths acres permanently unproductive because of nonagricultural character. "SEC. 20-B. All payments upon construction charges shall be suspended against the following lands in the Chinook division: "(a) Twelve thousand six hundred and seventeen and sixty-four one-hundredths acres temporarily unproductive because of heavy soil and seepage; (b) eleven thousand three hundred and seven acres for which no canal system has been constructed, all as shown by the land classification of the Chinook division made under the direction of the Secretary of the Interior and approved by him under date of January, 1930. The Secretary of the Interior, as a condition precedent to the allowance of the benefits offered under sections 20-A and 20-B, shall require each irrigation district within the Chinook division to execute a contract providing for repayment of the construction charges as hereby adjusted within forty years and upon a schedule satisfactory to said Secretary; and no water from the Saint Mary River watershed shall be furnished for the irrigation of lands within any district after the irrigation season of 1930 until the required contract has been duly executed." NOTE In an opinion dated September 22, 1931, the District Court of the 18th Judicial District of Montana held that the act of July 3, 1930 (46 Stat. 1010) requires that all payments upon construction charges shall be suspended against the 23,924 acres in the Chinook Division enumerated in the act, not merely the construction charges against said acreage up to June 30, 1925, as contended by the Government. The court fixed the acreage construction charge for the division at $14.05, subject to the reservation contained in the proposed contracts. Sec. 2. [Contracts to be uniform.]-All contracts with the Government touching the project shall be uniform as to time of payment and charge for the construction of the Saint Mary diversion. |