MORATORIUM ON CONSTRUCTION CHARGES FOR 1931, 1932 481

Amendment. Certain provisions of this act were extended by the act approved March 3, 1933. See also act of March 27, 1934, 48 Stat. 500.

Construction charges, Grand Valley project.-By departmental decision M-27214 of October 5, 1932, it was held that the 1931 and 1932 construction charges on the Grand Valley project could be extended under section 1 of the act of April 1, 1932, and made repayable as provided in section 4 of the act, the charges extended to bear interest at the rate of 5 percent per annum, payable annually, in accordance with the departmental determination under section 1 of the act.

But see the proviso to section 1 of the act of March 3, 1933, regarding interest rate, and C. L. 2044.

Construction charge to which act applicable.-Under its contract of October 23, 1918, with the United States, the Imperial irrigation district received the right to use the Laguna Dam constructed by the United States across the Colorado River in connection with the Yuma project, agreeing to pay therefor the sum of $1,600,000. The Department held that this was a construction charge to which the 1932 relief act is applicable. (Letter from the Secretary to Hon. L. W. Douglas, M. C., April 15, 1932.)

Payment for water rental not a credit upon construction charge.-In letter of July 15, 1932, to the Commissioner of Reclamation the Department held that the Secretary is without legal authority to grant the request of the Westland irrigation district, McKay Reservoir, Umatilla project that the payment made by the district for water rental during 1931 be considered a construction charge payment made for 1931 within the meaning of section 1 of the 1932 relief act. Deferment of interest payments on cost of power system.-Citing the provisos of section 1 of the act of April 1, 1932, in letter of July 25, 1932, to the Bureau, the Department denied the petition of the Gem irrigation district, Owyhee project, that the charges to be deferred under the act be set over for repayment at the end of the 40-year period provided in the contract of October 14, 1926, relative to repayment of the district's proportionate share of the cost of the project, and ruled that the deferred charges shall be paid over a term of 5 years after the last installment shall become due under the existing contract for furnishing electrical energy.

Construction costs against Indian-owned lands.-The act of July 1, 1932 (47 Stat. 564), provides that "the collection of all construction costs against any Indian-owned lands within any Government irrigation project is hereby deferred, and no assessments shall be made on behalf of such charges against such lands until the Indian title thereto shall have been extinguished." In opinion of the Solicitor, M-27239, approved by the Department November 25, 1932, it was held that the act of July 1, 1932, supra, is applicable only to Indian irrigation projects and does not defer construction charges due or payable to the reclamation fund. Attention was called in the opinion to the act of April 1, 1932 (47 Stat. 75), covering the matter of deferment of the payment of construction charges on Government irrigation projects constructed by the Bureau of Reclamation.

Power Revenues.-See note under section 8 of this act entitled "Power revenues-Salt River project."

Simple interest at the rate of 5 percent per annum should be collected on annual interest payments after they fall due until they are paid, but they are not subject to a delinquent, penalty, as remedies for nonpayment of charges provided in the statutes are not applicable to nonpayment of interest. If neither contract provisions nor statutes are applicable, suit can be entered and judgment obtained in accordance with the law of the particular State involved. (Instructions of Assistant Secretary, dated October 19, 1932.)

SEC. 2. [Individuals granted same relief as organizations, where no organization on project.]-On projects or divisions of projects where no irrigation district, water-users' association, or other water-users' organization has assumed joint obligation for payment of construction charges individual water-right applicants or entrymen upon acceptance of this act in a manner satisfactory to the Secretary of the Interior, shall be required to make no payment on the regular

482 MORATORIUM ON CONSTRUCTION CHARGES FOR 1931, 1932

construction charge for the calendar year 1931, and in lieu of the installments payable under existing contracts, may pay their regular installments of construction charges for the calendar year 1932 on the same basis as that authorized in section 1 hereof for districts, associations, and other water-users' organizations.

NOTES

Application form for acceptance of the provisions of this section is set forth in C. L. 1995. See also C. L. 2000. C. L. 2044 relates to rate of interest under amendatory act of March 3, 1933. C. L. 2060 supplements C. L. 2044.

Nonconsenting landowners.-In opinion M-27124 dated July 25, 1932, approved by the Department the same date, the Solicitor held that nonconsenting landowners are entitled to the benefits of the act of April 1, 1932 (re Garland division, Shoshone project).

SEC. 3. [Uncompahgre project relief act of 1931, and Grand Valley project 1931 act relating to development of power amended.]-The act of Congress approved January 31, 1931, entitled "An act for the relief of the Uncompahgre reclamation project, Colorado" (Private, Numbered 300, Seventy-first Congress), is hereby amended to extend for one year from and after January 1, 1932, the time for beginning construction of drainage system upon the Uncompahgre project, and any and all construction charges accruing upon or for said project for or during the year 1932, shall be deferred and included in and made payable as a part of the project supplemental construction charge provided for in said act of January 31, 1931; and in order to afford opportunity to complete the construction authorized by the act of Congress approved February 21, 1931 (Public, Numbered 708), relating to the Grand Valley reclamation project, Colorado, any and all construction charges accruing upon or for said project for or during the year 1932 shall be deferred and shall be included in and made payable as project supplemental construction charges under the terms as provided in this act.

NOTES

Amendment. This seciton was amended by act approved March 3, 1933. Construction charges, Grand Valley project.-By departmental decision M-27214 of October 5, 1932, it was held that the 1931 and 1932 construction charges on the Grand Valley project could be extended under section 1 of the act of April 1, 1932, and made repayable as provided in section 4 of the act, the charges extended to bear interest at the rate of 5 percent per annum, payable annually, in accordance with the departmental determination under section 1 of the act.

But see the amendatory act of March 3, 1933, and C. L. 2044 and C. L. 2060 issued in pursuance thereto.

SEC. 4. [Resumption of payment of charges-Contracts pursuant to Warren Act, Extension Act, Adjustment Act, subsection F, section 4, Fact Finders' Act.]-At the expiration of the period for which deferment of charges is made under this act, all districts, water-users' associations, or other water-users' organizations, and all individuals accepting the provisions hereof shall resume payment of charges on the basis of and in accordance with existing contracts and shall continue payments thereafter until the entire indebtedness of said districts, water-users' associations, or other water-users' organizations, and individuals to the United States shall have been fully paid. In

MORATORIUM ON CONSTRUCTION CHARGES FOR 1931, 1932 483

the case of a district, water-users' association, or other water-users' organization, or individual having contracts executed pursuant to the act of February 21, 1911 (36 Stat. 925), the act of August 13, 1914 (38 Stat. 686), or the act of May 25, 1926 (44 Stat. 636), or any special act the deferred construction installment or installments for the calendar year 1931, and that portion of the 1932 installment or installments deferred, together with the installment or installments of deferred construction and/or operation and maintenance for 1931 and 50 per centum of the installment and/or installments of such deferred charges for 1932, shall be paid as an additional installment to be due and payable one year after the date the last installment under existing contracts shall become due, except in those cases in which the Secretary of the Interior, whose decision shall be final, shall find necessary additional installments, which he is hereby authorized to fix. In the case of any district, water-users' association, or other water-users' organization, or individual under contract for payment of construction charges pursuant to subsection F, section 4, act of December 5, 1924 (43 Stat. 702), construction payments shall be continued on the basis of existing contracts until the entire indebtedness to the United States, including all charges deferred pursuant to this act, shall have been fully paid. Installments so carried over shall be subjected to the reductions provided for in section 8 hereof.

NOTE

Deferred construction installments.-Section 4 provides that the deferred amounts of the 1931 and 1932 construction installments shall be paid as an additional installment to be due and payable 1 year after the last installment under existing contracts comes due. Letter from the First Assistant Secretary to Senator Frederick Steiwer dated April 11, 1932, construing this section in connection with an inquiry from the Westland irrigation district, Umatilla project, stated: "I am of the opinion that the language 'shall be paid' means 'shall at the latest be paid', etc. In other words, there is nothing in the statute which prohibits an earlier payment of such deferred amounts, and the district may desire to make earlier payment, since the deferred amounts carry interest at the rate of 5 percent per annum, which is the rate fixed by the Department under the act."

The interest rate was changed by act of March 3, 1933. (See C. L. 2044.) See note captioned "Construction charges, Grand Valley project," following section 1 of this act.

SEC. 5. [Secretary may permit adjustment of charges.]-The Secretary of the Interior, in his discretion, and upon acceptance of the provisions of this section by the water users affected, in the manner provided in sections 1 and 2 hereof, may permit adjustment of construction and/or operation and maintenance charges heretofore deferred by contracts made pursuant to existing law to be made for the years 1931 and 1932 on the basis authorized in sections 1 and 2 hereof or on such other basis as the Secretary may find to be required in each case.

SEC. 6. [Deferment of 1930 construction and O. and M. charges.]— The Secretary of the Interior, in his discretion, is further authorized to defer the payment to the United States from any water users' organization, as defined in section 1 hereof and from any individual water-right applicant or entryman of construction charges and installments of deferred construction and/or deferred operation and

484 MORATORIUM ON CONSTRUCTION CHARGES FOR 1931, 1932

maintenance charges for the calendar year 1930 and prior thereto. Such deferred charges, together with penalty or interest to December 31, 1931, under existing laws and contracts shall be paid in such annual installments as the Secretary of the Interior may fix.

SEC. 7. [Delivery of water by water users' organization to water users in arrears in payment of charges.]-Any irrigation district, water-users' association, or other water users' organization which has contracted to pay construction charges and which is not in arrears for more than one calendar year in the payment of any construction, operation, and maintenance, or other charge due by it to the United States may, at its option, deliver or authorize the delivery of water during the years 1932 and 1933 to water users who may be more than one year in arrears in the payment of charges or assessments due from such landowner or water user to the district or association.

NOTE

The relief act of March 4, 1934, in extending temporary relief on water charges, also extended relief from punishment for nonpayment of charges. Section 7 of the moratorium act of April 1, 1932, must be considered in granting moratoria under the relief act of March 4, 1934. (Opinion of Acting Solicitor Fahey, Department of the Interior, April 17, 1934.)

SEC. 8. [Credits on account of power profits under subsections I and J, Fact Finders' Act, or other act.]-In the case of any irrigation district, water-users' organization, or individual, receiving credits on account of power profits or other revenues under the provisions of subsections I and/or J, section 4, act of December 5, 1924 (43 Stat. 703), or any other act of Congress, when any extension is granted as provided in section 1, 2, or 4 the amount of such credits shall be deducted from the amount of any payment so extended: Provided, That the provisions of this section shall not apply to power profits or other revenues derived from works not constructed at the expense of the United States. The credits, if any, in excess of the payment so extended shall be applied as now provided by law and contract. Acceptance of the provisions of this act shall operate as a waiver of any law and/or contract providing for application of credits different from that in this section prescribed.

NOTE

Power revenues-Salt River project. In connection with the application of the Salt River Valley Water Users' Association for relief under section 1 of the act of April 1, 1932, the Solicitor of the Interior Department, interpreting the proviso of section 8 of the act, rendered a decision, approved by the First Assistant Secretary August 29, 1932 (M-27184), that there must be a determination of the net power revenues obtained by the association from the operation of the power plants constructed by the United States and turned over to the association in 1917. If an estimate of net power revenues from the Government-constructed plants can be made that is satisfactory to the association and to the Secretary of the Interior, the extension can be granted. If this cannot be accomplished, the application must be rejected on the theory that the act involves conditions impossible of performance.

SEC. 9. [Collection of charges for 1931 to be credited upon succeeding payments as they become due.]-Collections of construction charges for the calendar year 1931 (which charges are subject to adjustment

MORATORIUM ON CONSTRUCTION CHARGES FOR 1931, 1932 485

and are adjusted under sections 1, 2, and 4 of this act) and penalties and interest, if any, from water-users' organizations and individual water-right applications or landowners, heretofore made under existing contracts, shall be credited upon the succeeding payments as they become due, including operation and maintenance charges.

NOTES

Application for relief only as to the 1932 charge.-In letter dated August 5, 1932, the Department advised the Commissioner of Reclamation that in cases where the 1931 construction charges have been fully paid it is optional with the water users whether deferment under the act of April 1, 1932, shall cover both the 1931 construction charge and one-half of the 1932 construction charge, or one-half of the 1932 construction charge only. (Decision re application of Imperial Irrigation District.)

Interpretation of words "succeeding payments."-Section 9 of the act of April 1, 1932, reads in part as follows: "Collections of construction charges for the calendar year 1931 * * * shall be credited upon the succeeding payments", etc. The Department, in letter of March 9, 1933, to the Bureau, held that the words "succeeding payments", mean payments succeeding the collection date of the 1931 payments, whether before or after April 1, 1932. (Decision re Yakima project.)

SEC. 10. [Advances authorized by act of June 25, 1910, and act of March 3, 1931, to be repaid beginning July 1, 1934.]-That the act of June 25, 1910, entitled "An act to authorize advances to the reclamation fund, and for the issue and disposal of certificates of indebtedness, in reimbursement therefor, and for other purposes", as amended, and the act of March 3, 1931 (46 Stat. 1507), are hereby amended so as to provide that payments in reimbursement of moneys so advanced under these acts and not heretofore repaid shall be made by transfer annually from the reclamation fund to the general funds of the Treasury beginning July 1, 1934.

Textual note.-Codified as sec. 402, title 43, U. S. C., the words from the beginning of the section down through "(46 Stat. 1507)" being changed to "Sections 391b and 399 of this title", and the word "acts" in the third line from the end changed to "sections."

NOTE

Amendment. Section 2 of the act of March 3, 1933, amends the last line of the above section by substituting "1936" for "1934." The act of June 22, 1936, further amends this section by substituting "1938" for "1936."