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Proceedings of the

Fourteenth Annual

Meeting

National Reclamation

Association

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Denver, Colorado r. Ilovember

14,45-16, 1945

NATIONAL RECLAMATION ASSOCIATION

1119 NATIONAL PRESS BUILDING

WASHINGTON 4, D. C.

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THE WHITE HOUSE Washington, D. C.

November 10, 1945. My Dear Mr. Bundy:

Never before have the people of this country been more dynamically aware of how greatly it matters to them how they organize their public institutions in the immediate years ahead. If there were nothing else to make men conscious of this, the atomic bomb would have brought into bold relief the importance today of science and technology as controlling forces.

Within your sphere of thought and action another great development is helping to point the way into the future, and in this respect you are in a position of great responsibility. The circumstance of which I speak is the knowledge of how much can be gained through coordinated management of the resources of our great river valleys. If these resources, natural and human, are administered in the interest of all of the people, rather than in the interest of any group, public or private, the benefits will be enormous.

In a recent address at Gilbertsville, Kentucky, I pointed out that the underlying common-sense principles of the Tennessee Valley experiment could provide guidance and counsel to the people in other regions, who likewise aspire to put their resources to the greatest use; but I emphasized that the form such development will take in any region was for the people of that region to decide.

The Bureau of Reclamation is now working on plans for the coordinated development of sixteen river basins of the West, reports on which will soon be made to me and to the Congress that will provide basic data for river basin planning.

At this time, I would like to make one further suggestion. The key to success of any regional resource development will be found in how active cooperation is organized between the people of the region, their civic and commercial organizations, and local and Federal Governments. TVA has demon-strated successfully one way in which this can be done. Another experiment in which four Federal agencies are participating—the War Department, De-partment of the Interior, DeDe-partment of Agriculture, and the Federal Power Commission—is now making another demonstration. The manner in which these agencies work together, and at the same time work with local political units and private organizations, will be watched closely.

I also remind you that in considering any plans for postwar development through Federal Reclamation, unselfish consideration must be given to settle-ment opportunities for veterans—the men who made it possible for us to remain a free people. I commend the land limitations in Reclamation Laws, which protect the principle of the family farm on Federal projects, as one of the real bulwarks to the veteran. The limitation on the size of farms that can receive water from a Reclamation system will assure the development of many thou-sands of irrigated farms, which veterans can acquire. The exact size of farms assured of water may vary, but the fact that there is a definite limitation is important in the pattern of a farm economy that is fostered by the Federal Government which seeks the greatest good to the greatest number of prospec-tive settlers.

The future, of course, depends upon you—upon your breadth of vision and ability to make decisions that are for the welfare of all of us. I hope that more and more you will think of the Federal Government, not as an entity unrelated to you, but as your own strong right arm doing for you collectively what none can do for himself alone. If we can cooperate in such a spirit among ourselves, we shall continue to be not only the strongest Nation on earth, but the happiest.

Sincerely yours,

Mr. Ora Bundy, President, (Sgd.) HARRY TRUMAN. National Reclamation Association,

Care of Shirley-Savoy Hotel, Denver 2, Colorado.

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"The most precious heritage that we have in the State of Colorado, and this is true of every one of the seventeen western states, is the priceless water which flows out of our mountains."— Governor John C. Vivian of Colorado.

"America is a land of opportunity in which the individual has the opportunity to achieve, and to accomplish within the limitations of his ability, his talents, his industry, and his ambitions, so long as he accords to his fellow men the same opportunity."—Gilbert H. Jertberg of the Voluntary Committee on Land Limitation.

"Forty-hour week on irrigation will cause trouble."—John L. Gregg, Treasurer-Manager, Elephant Butte Irrigation District, Las Cruces, N. M.

"After all, our nation is based upon the democratic principles of freedom, of government of the people, by the people. In the case of water users, taking over the operation of an irrigation district would be government by the people."—Axel Persson, Man-ager Lower Yellowstone Project, Sidney, Montana.

"We are all working for the people after all is said and done, and if we don't do a good job we get fired."—G. W. Lineweaver, Director of Operation and Maintenance, Bureau of Reclamation.

"When a matter becomes an issue, fancy displaces fact; people become dogmatic. Their enthusiasm leads to overstatement and where the end is assumed to justify the means, they just don't stick to the truth."—David J. Guy, Manager of the Natural Re-sources Department of the United States Chamber of Commerce.

"The question whether this country should be blanketed with Federal regional authorities fashioned after TVA is one of the most serious issues the nation has ever faced."—Ellwood J. Turner, mem-ber of the Pennsylvania State Senate.

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"It is our duty, our job, to so handle things in this country that we pass on to our children the same kind of freedom and enterprise and opportunity that we have had and enjoyed. If we fail to do that we have failed in our duty to our children, our country, and our God."—Lachlan Macleay, President of the Mississippi Valley Association.

"We are now in the midst of a struggle over the fundamental proposition of whether or not we are going to preserve the American way."—William H. Webb, Executive Vice President, National Rivers and Harbors Congress.

"The future strength and greatness of our country will in a large measure be determined by what we do out here in the western river valleys."—Harry W. Bashore, Commissioner of the Bureau of Reclamation.

"The future, of course, depends upon you—upon your breadth of vision and ability to make decisions that are for the welfare of all of us. I hope that more and more you will think of the Federal Government, not as an entity unrelated to you, but as your own strong right arm doing for you collectively what none can do for himself alone. If we can cooperate in such a spirit among ourselves. we shall continue to be not only the strongest Nation on earth, but the happiest."—From President Truman's Message to the Convention.

"We need to re-evaluate upward the peacetime benefits of our irrigation program . . . rededicate ourselves to the cause . . . and drive forward with a new determination to steer the reclamation of the irrigable arid lands of the West, as rapidly as possible, along a course that is financially and economically sound and morally honest."—President Ora Bundy.

"The fact that the United States has emerged undisputed as the greatest nation of the world focuses anew the attention of all the world, including every American citizen, upon the democratic processes and the natural resources which have made us the nation that we are."—Secretary-Manager F. 0. Hagie.

"One of the best ways I know to 'cut out the foolishness and get back to work' is to pick up a tool and start doing something about one's immediate environment."--Lt. Gen. Raymond A. Wheeler, Chief of Engineers, U. S. Army.

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includes livestock and forestry—should have a place in our con-sideration of a coordinated plan for the wise development of our natural resources."—Charles F. Brannan, Assistant Secretary of Agriculture.

"Now the lights are blazing again in the Reclamation World. Nineteen forty-six is going to be the greatest year ever for Rec-lamation."—Michael W. Straus, Assistant Secretary of the Depart-ment of the Interior.

"This program (Bureau of Reclamation) can and will be a vital factor in reconversion and in redeployment on the civilian front for our discharged veterans and our former war workers."— William E. Warne, Assistant Commissioner, Bureau of Reclamation.

"The geographical isolation of the West which results from long distances of separation creates a favorable growth of the steel industries in the West."—Dr. J. R. Mahoney, Director of Bureau of Economic Research, University of Utah.

"Thanks to the directive from Congress which this legislation gives us, it is my belief we now have honest teamwork amongst the Federal agencies and the states toward working out comprehensive plans in this vital field of water resources."—Hon. Alban J. Parker, Chairman of the Water Conservation Conferene- Continuing Com-mittee.

"Disruption of world commerce as a result of the war brings problems which will require the best thought of the Nation for their solution." — Victor H. Schoffelmayer, Agriculture - Science Editor, Dallas Morning News.

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Denver, Colorado

November 14, 15 and 16

1945

National Reclamation Association

1119 National Press Building

ORA BUNDY 1945 - 1946 OFFICERS ROBERT W. SAWYER HARRY E. POLK J. A. FORD FLOYD 0. HAGIE ---Washington 4, D. C. President First Vice-President Second Vice-President Treasurer

J. H. MOEUR, Phoenix, Arizona J. R. FAUVER, Exeter, California CLIFFORD H. STONE, Denver, Colorado N. V. SHARP, Filer, Idaho

PAUL W. APPLEGATE, TVakeeney, Kansas E. E. TIFFANY, Billings, Montana H. D. STRUNK, McCook, Nebraska A. M. SMITH, Carson City, Nevada FRED E. WILSON,

Albuquerque, New Mexico

DIRECTORS

HARRY E. PoLN, Williston, North Dakota HOMER L. JOHNSON,

Boise City, Oklahoma RORERT W. SAWYER, Bend, Oregon MILLARD G. SCOTT, Pierre, South Dakota J. E. STURROCK, Austin, Texas

Oat BUNDY, Ogden, Utah J. A. FORD, Spokane, Washington

W. F. WILKERSON, Casper, Wyoming Secretary-Manager

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Proceedings

of the

Fourteenth Annual Meeting

National Reclamation

Association

Using Our Land and Water

Resources to Serve a

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P4OrtitCan

Using Our Land and Water Resources

to Serve a World at Peace

14th Annual Meeting

WEDNESDAY, NOVEMBER 14 9:00 A.M. to 1:00 P.M.—REGISTRATION OF DELEGATES

Lobby of Lincoln Room, Shirley-Savoy Hotel (Note: The Registration Desk will be open from 4 pm. to 8 p.m.,

Tuesday evening, November 13, for the convenience of those wishing to register early.)

10:00 A.M. to 12:00 .Noon—STATE CAUCUSES

Delegates will caucus by states at rooms assigned below to con-sider the following order of business:

Elect member of Legislative Committee Elect member of Resolutions Committee Elect Director

Discuss reclamation problems and policies of the state, includ-ing budget, state quota, and any resolutions which the state desires to foster.

State caucus rooms as follows: SHIRLEY-SAVOY HOTEL

Arizona—Blue Spruce Room California—Colorado Room

Colorado—Lincoln Room (North side ) Idaho—Empire Room (South end)

Montana—Silver Spruce Room Nevada—Room 144

Oklahoma—Empire Room (North end) North Dakota—South Mezzanine Floor Oregon—Centennial Room

South Dakota—Lincoln Room (South side) Washington—Main Mezzanine Floor COSMOPOLITAN HOTEL

One block north of the Shirley-Savoy Hotel on Broadway. Kansas—Mezzanine Floor, Room A

Nebraska—Main Floor, Silver Glade (North side) New Mexico—Main Floor, Silver Glade (South side) Texas—Mezzanine Floor, Blue Room

Utah—Mezzanine Floor, Room D

Wyoming—Mezzanine Floor, Officers' Club

Groups desiring caucus rooms during the convention can obtain them by contacting Mr. A. C. Stiefel, Convention Manager, in the Lincoln Room Lobby.

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Lincoln Room—Shirley-Savoy Hotel 1:30 P.M.—FIRST CONVENTION SESSION

President Ora Bundy, presiding 1:35 P.M.—INVOCATION

Dr. Harry T. Morris, President, Iliff School of Theology, Denver, Colorado

1:40 P.M.—WELCOME TO DENVER

Hon. B. F. Stapleton, Mayor, City of Denver, Colorado 1:45 P.M.—WELCOME TO COLORADO

Hon. John C. Vivian, Governor of Colorado 1:50 P.M.—THE PRESIDENT'S MESSAGE

Ora Bundy, Chairman, Department of Publicity and Industrial Development, State of Utah

2:20 P.M.—THE TREASURER'S REPORT

James A. Ford, Manager, Spokane Chamber of Commerce, Spokane, Washington

2:30P.M.—SECRETARY-MANAGER'S REPORT

Floyd 0. Hagie, Secretary-Manager, National Reclamation Associa-tion, Washington, D. C.

3:00 P.M.—REPORT OF VOLUNTARY COMMITTEE ON LAND LIMITATION

Gilbert H. Jertberg, Fresno, California 3:25 P.M.—DISCUSSION

3:45 P.M.—REPORT OF STATE CAUCUSES

By Director of each State (5 minutes each) 4:35 P.M.—ANNOUNCEMENTS

4:40 P.M.—ADJOURNMENT

Wednesday Evening Lincoln Room—Shirley-Savoy Hotel

7:30 P.M.—THE " KNIGHT " OF THE WATER USERS' ROUND TABLE (No holds barred)

N. V. Sharp, Idaho Director, presiding

* "OPERATION AND MAINTENANCE POINTS THE WAY" General subject to be opened up for question-and-answer dis-cussions by short statements of the following:

7:35 P.M.---G. W. Lineweaver, Director of Operation and Maintenance. Bureau of Reclamation, Department of the Interior, Washington, D. C.

7:45 P.M.—John L. Gregg, Treasurer-Manager, Elephant Butte Irrigation District, Las Cruces, New Mexico, an irrigation district operated by the Bureau of Reclamation

7:55 P.M.—Ed H. Neal, Manager, Aberdeen-Springfield Canal Co., Aberdeen, Idaho, which is a Carey Act operating company receiving supple-mental water under the Warren Act

*It is hoped that the above forum will be utilized to the fullest to iron out problems concerning physical facilities and irrigation operation, relations between water users, irrigation districts, individuals, communities, state colleges, and various federal agencies, as well as repayments, crop returns, purchasing power, etc.

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8:05 P.M.—Axel Persson, Manager, Lower Yellowstone Project, Sidney, Mon-tana, an irrigation district operated by the water users 8:25 P.M.—GENERAL DISCUSSION

8:55 P.M.—FORTY-MINUTE COLORED SOUND FILM, "FIGHTING WEEDS"

9:35 P.M.—QUESTIONS AND DISCUSSION 9:40 P.M.—ADJOURNMENT

THURSDAY, NOVEMBER 15 Lincoln Room—Shirley-Savoy Hotel

President Bundy, presiding

9:45 A.M.—"IF BUSINESS COULD OPERATE LIKE T. V. A."

David J. Guy, Manager, Natural Resources Department, U. S. Chamber of Commerce, Washington, D. C.

10:15 A.M.—Questions from the Floor

10:20 A.M.—"BLANKETING NATION WITH T. V. A.'s IS DANGEROUS" Hon. Ellwood J. Turner, Chairman of Water Resources Committee,

Council of State Governments; Chairman of Incodel; Member of the State Senate of Pennsylvania

10:50 A.M.—Questions from the Floor

10:55 A.M.—"THE T. V. A. PHILOSOPHY OF GOVERNMENT"

Lachlan Macleay, President, Mississippi Valley Association, St. Louis, Missouri

11:25 A.M.—Questions from the Floor

11:30 A.M.—ANNOUNCEMENTS AND ADJOURNMENT

Thursday Noon 12:15 P.M.—LUNCHEON

Empire Room, Shirley-Savoy Hotel Vice President Robert W. Sawyer, presiding

ENTERTAINMENT

12:45 P.M.—"THE JOB OF THE LAND AND WATER ORGANIZATIONS OF THE COUNTRY" •

William H. Webb, Executive Vice-President, National Rivers and Harbors Congress, Washington, D. C. .

1:15 P.M.—Questions from the Floor

1:20 P.M.—ANNOUNCEMENTS AND ADJOURN MMENT

Thursday Afternoon Lincoln Room—Shirley-Savoy Hotel

President Bundy, presiding

2:00 P.M.—"REGIONAL DEVELOPMENT OF OUR LAND AND WATER RESOURCES"

(A Panel Discussion)

2:05 P.M.—THE PART OF THE BUREAU OF RECLAMATION

Harry W. Bashore, Commissioner, Bureau of Reclamation, Depart-ment of the Interior, Washington, D. C.

2:35 P.M.—THE PART OF THE ARMY ENGINEERS

Lieut. General R. A. Wheeler, Chief of Engineers, War Depart-ment, Washington, D. C.

3:05 P.M.—THE PART OF THE DEPARTMENT OF AGRICULTURE Charles F. Brannan, Assisti,nt Secretary of Agriculture,

Washing-ton, D. C.

3:35 P.M.—Questions from the Floor and General Discussion 4:00 P.M.—ANNOUNCEMENTS AND ADJOURNMENT

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Lincoln Room, Shirley-Savoy Hotel . H. D. Strunk, Nebraska Director, presiding 7:30 P.M.—"POTATOES UNLIMITED"

(A 40-minute color and sound motion picture on western potato production)

Joe W. Jarvis, Supervisor, Agricultural Development Department, Union Pacific Railroad, Omaha, Nebraska

8:10 P.M.—Questions from the Floor

8:25 P.M.—ANNOUNCEMENTS AND ADJOURNMENT FRIDAY, NOVEMBER 16 Lincoln Room—Shirley-Savoy Hotel

President Bundy, presiding

9:45 A.M.—"IRRIGATION WATER AT A PRICE FARMERS CAN PAY, AND HOW IT CAN BE ACCOMPLISHED"

Michael W. Straus, Assistant Secretary of the Interior, Washing-ton, D. C.

10:15 A.M.—"THE BUREAU'S FUTURE PROGRAM" William E. Warne

'

Assistant Commissioner, Bureau of Reclama-tion, Department of the Interior, Washington, D. C.

10:45 A.M.--"STEEL AND WESTERN INDUSTRIALIZATION" Dr. J. R. Mahoney, Director of Research, University of Utah 11:15 A.M.—ANNOUNCEMENTS AND ADJOURNMENT

Friday Noon 12:15 P.M.—LUNCHEON

Empire Room—Shirley-Savoy Hotel Vice President Harry E. Polk, presiding

ENTERTAINMENT

12:45 P.M.—"THE WORK OF THE WATER CONSERVATION CONFERENCE"

Alban J. Parker, Chairman of the Water Conservation Conference Continuing Committee and Attorney General of Vermont, Mont-pelier, Vermont

1:15 P.M.—Questions from the Floor

1:20 P.M.—ANNOUNCEMENTS AND ADJOURNMENT Friday Afternoon

Lincoln Room—Shirley-Savoy Hotel President Bundy, presiding

2:00 P.M.—"CHEMURGY AND IRRIGATION AGRICULTURE" Victor H. Schoffelmayer, Dallas News, Dallas, Texas 2:30 P.M.—BUSINESS SESSION

Report of Committee on Revision of Constitution Report of Audit Committee

Report of Budget and Finance Committee Report of Legislative Committee

Report of Resolutions Committee Selection of 1946 Convention City

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Friday Evening 7:30 P.M.—FOURTEENTH ANNUAL BANQUET

Lincoln Room—Shirley-Savoy Hotel

Auspices of Denver Convention Committee (Informal) TOASTMASTER

L. Ward Bannister, Attorney, Denver, Colorado ENT RTA IN M ENT INVOCATION

Rev. Hubert Newell, Superintendent of Catholic Schools, Denver, Colorado

MESSAGES FROM FRIENDS OF RECLAMATION President Ora Bundy

ADDRESS—"THE CHALLENGE OF THE PRESENT CRISIS" s Frederick P. Woellner, Professor of Education, University of California,

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FOURTEENTH ANNUAL MEETING President ORA BUNDY, Presiding

President Bundy. The Fourteenth Annual Convention of the Na-tional Reclamation Association will please conic to order. We will all stand and have the invocation by Dr. Harry T. Morris, President, Iliff School of Theology, Denver, Colorado.

INVOCATION

DR. HARRY T. MORRIS, President, lliff School of Theology, Denver, Colorado

Almighty and Everlasting God, Creator and preserver of life, we Thy children humbly acknowledge that it is in Thee that we live and move and have our very being.

We pray for the work of this group of Thy servants. Grant them all to more fully comprehend the fact of Thy fatherhood of all things and thus grant them a sense of partnership with Thee as they seek to reclaim and conserve the natural resources of our beloved country.

Command Thy face to shine upon America and upon all men of good will everywhere.

Enable us to discern Thy Holy Will and then grant us the courage to perform those duties that we may play our parts as be-cometh the sons of The Most High.

Bless our land, 0 Lord, our leaders, our lawmakers; give us peace within our borders, sound learning, and worthy industry. And make us worthy of all our rich heritage, 0 Lord, that we fail not man nor Thee in the creation of a new earth wherein dwelleth right-eousness and peace. Amen.

Mr. Bundy. Ladies and gentlemen: We have been 'privileged now to meet in this wonderful city of Denver for a number of years and each time we have had a most gracious welcome from the Chief Executive of this city. He is here today again to extend to you the greetings of the city of Denver and incidentially he says he is willing to extend them as long as we want them. Now a word from Mr. Ben Stapleton, Mayor of the city of Denver. (Applause).

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WELCOME

TO

DENVER

HON. B. F. STAPLETON, Mayor of Denver Mr. President and members of the convention.

I don't know that I can say anything new that I haven't said before in trying to make you feel that you are welcome in Denver and that you are really at home. We are interested, in Denver and in Colorado, in the problems with which you are concerned and which you came here to discuss and consider. Since you have been meet-ing in Denver there are some clouds that have arisen on the horizon that we don't all get very delighted about seeing, but it does Seem to me that you are on the right track generally in your trying to con-serve all the water possible in the areas in which it is produced or where it arises. We hope to continue on that program.

Denver, we think, has contributed something to the develop-ment of water resources so far as this part of the state and the state of Colorado as a whole is concerned. We are trying to develop water to protect ourselves as best we can and we are building reservoirs on two sides of the Continental Divide with the idea of protecting ourselves and not taking anything away from anyone else. It appears to me that most of this is a matter of engineering and ought to be figured out perfectly so that there should be very little argument

kbout the matter. I am sure if reclamation goes ahead and uses all the water possible, that no or very little water will be left and very little power will be left that can be produced by water. At least that is the way we feel about it in Denver and we feel in order to cooperate we shouldn't try to take something away and bring it into the Denver area that would injure somebody else, but we have an idea that if all the water were equitably distributed there will be many thousands of acres of land that could be irrigated, made pro-ductive and a lot of water be kept from going down in the lower parts of these rivers that they don't want to and everybody should be benefited as a result.

Well, anyway, I didn't come over to make a speech. I came over to assure you that you are just as welcome as ever and I have heard some of you say you have been here a number of times and want, sometime in the next year, to come down and see some of this country. Well, I can't give anybody full promise, but let us know. I assured these gentlemen we would see that they would get out in the mountains and foothills and go over some of the finest areas there

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are in the whole United States. Now there are some places I might like to live if I didn't live in Denver, but I am not sure which one of the places I would like to take my family to, but I have assured the politicians that if I had any place else I liked as well I would get out of the race and go to that place. That is what I think of this city and the country around us here, so enjoy yourselves and make the most of it. If the city administraton can be of any service to your phone number if Main 1133 and there are three girls during the daytime and one the balance of the twenty-four hours so we are not hard to locate.

Here is hoping that it will be the greatest meeting you have ever had. You remember that we have a responsibility that no group ever had in the United States. The trouble is that some of us fail to realize our opportunities and responsibilities. Sometimes I think that these matters that we talk about as our responsibilities ought to be turned around and taken as opportunities. We have somewhere between—will have-13 and 14 million service men in this country sometime in the next few years. You have sons and I have a son and everybody has a relative that took a chance on their lives. Now let's see that they get a square deal. I don't think from my ex-perience and observation they are asking for charity or anything of that kind. I think the fellow who went out in the Pacific or into Europe and fought would rather resent charity. I hope that we will see that he gets an opportunity. I hope this will be your most successful meeting and I hope to meet you here next year and be in a little better shape to see that you enjoy yourselves than we are this year because the war is just getting out of our way. By the time you meet next year I am sure we will be in shape and condi-tion to show you many things that we can't now. Good luck to every-body and thank you for coming. (Applause.)

Mr. Bundy. Mayor Stapleton, I am sure that we all appreciate this sincere welcome to your city and we will all try to enjoy our-selves here. I take it the telephone number could be connected to the police department if necessary.

Mr. Stapleton. It would not be too difficult.

Mr. Bundy. Ladies and gentlemen, we are now privileged to have a word of welcome from His Excellency, the Governor of the state of Colorado. John Vivian. (Standing applause.)

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14 ADDRESS

WELCOME

TO COLORADO

HON. JOHN C. VIVIAN, Governor of Colorado

Thank you, Ora Bundy. Mr. Mayor, distinguished guests, and ladies and gentlemen:

It seems to me you are meeting on the most propitious occasion since the formation of your association. Certainly the problems with which the western states are battling at this time are of the greatest solemnity to each and every one of those states. I know of no group that can be more helpful or that is more sincerely interested in solv-ing those terrific problems than the National Reclamation ASsocia-tion. We have been familiar in Colorado, of course, for many years with your activities. You have been most helpful to the state of Colorado as well as the western states around us, but the things you have done to develop this western country in the past are in very small proportion to those things which you can help to do in the future. I have many times said that the most precious heritage that we have in the state of Colorado, and this is true of every one of the seventeen western states, is the priceless water which flows out of our mountains.

Some few• years ago we didn't have to worry very much about who was going to claim or use that water, but in recent years it seems that there are many influences, both within and without our own state and our own West. who are seeking not only to use that water but to control it and to own it. I believe that the future of the control of the water within the sovereign states spells the future of the way the reconversion period is going to be formed. I believe that if we are allowed to continue to control the use of our waters as we have been in the past, as has been described minutely by the statutes of our several states, upheld by the courts of our sovereign states, to say nothing of the Supreme Court of the United States, that we are going to go along the way we have always known. Nevertheless, I think that the great danger signal at the moment to every state in the West is the future of the water in those respective states.

We have been most fortunate in Colorado in having leadership such as Judge Clifford II. Stone has given us, not only to the state but to the entire West, and I think no one will dispute the state-ment when I say he is better informed on water matters than any other man in the West. His services have been at the use of the

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various states whenever they have needed them and they will be in the future. He has been associated with the Colorado Water Conservation Board and with a number of other experts, both engineers and attorneys, in the state of Colorado, who have given their all to the pledge that we shall see, if possible, that those inherent rights owned by a sovereign state and controlled by a sovereign state shall continue in the reconversion period, and so I say you are meeting on a most propitious occasion. You are meet-ing with the very lifeblood of our states as a stake. Your delibera-tions will undoubtedly grow into resoludelibera-tions and statements which will be of utmost importance to all of the states in trying to arrange a program for the possible progress of the seventeen western sovereignties. I know of no subject in which we are more interested in this state and I know of no subject that we will give more at-tention to than we will to reclamation and to see that the processes which are now going forward and which are now in full force and effect are continued.

I say to you that if the authorities shall ever obtain, if that legislation shall ever be passed and signed into law, I believe the American way of life as we have known it is on its way out. (Ap-plause). I believe it will be a complete regimentation of the rights and the freedom of individual initiative and enterprise as we have known it in the years that we have been building these United States. It will not only mean a complete change in water policy in the western states, but anyone who will read the act will find that it will change the cultural and the physical and economic situation affecting every family in the United States of America.

Needless to say you are welcome in the state of Colorado and you are welcome in the city of Denver because Mayor Ben Staple-ton is one of those persons who has been vitally interested in the development of water in this state. We shall be only too happy to be of service either through the agencies* we have perfected in this state or by legislative actions or any other way in which we can help preserve the rights of the West.

I bid you welcome and say to you that we in the State House in Colorado will be much interested in the deliberations that come out of this conference.

Mr. Bundy. Thank you very much, Governor, for these splendid words, and ladies and gentlemen, it is through the cooperation of such public officials who have such a depth of understanding that

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we are able to succeed and push ahead as we have been in the National Reclamation Association, so we are very happy to have here in the state of Colorado a Chief Executive who understands and works with us in these water problems.

It is my privilege now to read to you a letter from the White House. (Letter from the President, which is printed on the inside cover of this report of the proceedings of the convention, was then read, followed by applause.)

Gentlemen. I shall now deliver to you the president's annual message.

THE

PRESIDENT'S MESSAGE

President ORA BUNDY, Ogden, Utah

Appearing before this, the Fourteenth Annual Convention of the National Reclamation Association, for the first time as your presi-ent, I am more than ever mindful, of the task which has fallen to me as a successor to that fine gentleman, that ardent reclamationist who preceded me, and who for nine years had charted the course of your endeavors.

To follow such a wise and capable leader as 0. S. Warden, and measure up to his ideals and accomplishments, is by no means an easy task.

One year ago, We were in the midst of the world's greatest struggle; sorrow, fear, and anxiety were in nearly every home. Our future was in doubt; but thanks to a united nation and to the un-swerving belief of all our people in the principles of freedom, justice, and democracy, this terrible conflict has ended and we now stand before the threshold of a new tomorrow which beckons us with all our strength, all our wisdom, and all our belief in humanity to make of this a stronger nation and to lead the way in preparing the en-tire world as a better place in which to live. Our political leaders and our statesmen are gradually coming to recognize the fact that our organization has been dedicated to the alleviation of the causes that bring about wars.

Each year since our first annual meeting. it has been the privilege of your president to read to the association a message of approbation, of cheer and of encouragement for the work in which we were engaged, and in which our efforts were so strongly united. Each year, although he was never able to be present in person, we had before us that assurance from our true friend and champion, Franklin D. Roosevelt, that the administration was squarely behind our program. This year his message is missing.

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Upon learning of the passing of this great statesman, your president sent a letter of condolence from the association to his widow and their family. Later when Harry S. Truman was sworn into office as successor to Mr. Roosevelt, he sent a congratulatory letter to him in behalf of our organization. To this Mr. Truman replied as follows:

"My dear Mr. Bundy:

"These crowded days of new tasks have prevented an earlier acknowledgment of your letter and the accompanying resolu-tion, but I hope you and your associates will accept my be-lated thanks for the helpfulness you have given me through your assurances of cooperation and support. It was good of you to make known to me the sentiments of your outstanding group and I deeply appreciate your interest and loyalty.

"Very sincerely yours, (Signed) "Harry S. Truman." So that, while in the course of events we have lost one supporter of our cause we can now be assured that in President Truman we have an equally ardent friend whose thorough knowledge of flood control, navigation, irrigation, and western reclamation will insure us of complete cooperation and who will lend a sympathetic ear to our every comprehensive and constructive development under the reclamation program.

We have often heard it said that this and the last world war had their roots in the desires of certain nations to increase their scope of living, to expand their boundaries in order to make room for an increasing population. A more honest statement, and in other words a more effective way of expressing it, is to say that the aggressor nations generally are bent on increasing their agricultural areas and their productive capacity in order to more adequately feed an expanding population.

It should be noted that the National Reclamation Association has for years consistently pointed out that the world has never pro-duced a surplus of food or fiber, and that as far back as the so-called depression years when the Federal Government adopted a program of crop curtailment, we stood as a voice in the wilderness crying aloud, in season and out, that even then this country was im-porting more agricultural and more food products than it was ex-porting.

By 1940, our imports of agricultural products exceeded our exports by $1,125,467,000. If you wish to translate that value of

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im-ports against exim-ports into acres, in order to determine how many acres of farm lands other peoples of foreign countries were com-pelled to cultivate in order to round out our diet, you can approxi-mate such acreage by dividing the sum by the average per acre value of our own agricultural crops for the year 1940, which was about $25.00 per acre. You will find that we imported the products from more than 45,000,000 acres of lands in foreign countries. And, gentlemen, 45,000,000 acres is more land than all of the streams of all the seventeen western states can fully and successfully irrigate. Our young men who have fought this last war and those who survived the terrible ordeals are now returning from their country's service to again pick up the loose ends of their peacetime pursuits. Industry is reconverting from wartime production to the pro-duction of peacetime goods. We who assemble here today for the Fourteenth Annual Meeting of the National Reclamation Associa-tion have been a part of the war effort, and like the rest of the naAssocia-tion, we too must reappraise and perhaps enhance the value of our pro-gram to the West, to the Nation, and to the world. Ours is not a job of reconversion from war production to peace production because, since the government's irrigation program was understood by the War Producton Board it was designated as a war essential. Now that the war is over and our statesmen have come to understand the need for irrigation, our program has been declared by President Truman and others as a peacetime essential. Unlike these young men return-ing from their service in the four corners of the world, we have no loose ends to reassemble. We need only to re-evaluate upward the peacetime benefits of our irrigation program to this country and to the entire world, raise our sights, rededicate ourselves to the cause, discard some of our old tools for new and more efficient ones, and drive forward with a new determination to steer the reclamation of the irrigable arid lands of the West, as rapidly as possible, along a course that is financially and economically sound and morally • honest.

On September 6 in his message to Congress President Truman said:

"Favorable consideration should be given by the Congress to Federal Reclamation Projects as outstanding opportunities for returning veterans . . . we must rebuild and reclaim our land . . . this is not to provide men and women with work, it is to assure to the nation the very basis of its life."

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"We know that we have programs carefully considered and extensively debated for regional development of the Columbia River in the great Northwest. the Missouri River, the Central Valley of California, and the Arkansas River."

"If there are among us, tor any period of time, farmers who do not farm because there is no suitable land available to them . . . we have only ourselves to blame so long as we fail to make

available to them the opportunities before our very eyes." On October 17 President Truman asked Congress for a deficiency appropriation of $93,367,000 to become immediately available for the purpose of expediting some twenty or more irrigation projects, and at the same time he asked for approximately $125,000,000 for a similar purpose in expediting construction on flood control and other river and harbor projects.

About the same time that President Truman was bringing about what I have just related, another government official, the Secretary of Agriculture, Mr. Clinton P. Anderson, a friend and advocate of irrigation, at an international meeting of the United Nations Food and Agricultural Organization at Quebec, Canada, made some very significant statements. Four of these appear on the front cover of your program.

He said:

(1) "Two out of every three persons in the world are under-nourished."

(2) "One out of every three persons in the United States has an inadequate diet."

(3) "For the first time in human history, physical science and technology have developed to the point where hunger is unnecessary."

(4) "If all the combined know-how of the world were applied to all physical resources of the world, there would be enough food and fiber for everybody."

Each of these is a most revealing statement, but here is still another statement which Secretary Anderson made at Quebec. To my mind it is a statement that should never be forgotten by the members of this Association. He said:

"Because civilization cannot stand another war it cannot tolerate hunger anywhere in the world. We must not permit the pangs of hunger to bring about those basic fears and greeds which result in war."

In the light of these statements from our Secretary of Agri-culture, I ask: How can America, today the leading nation of the

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world, remain a good neighbor to the other countries of the world where two out of every three persons are undernourished and still continue, only because of our superior purchasing power, to rob those hungry nations of the products of 45,000,000 acres of their farm lands annually, in the form of excess agricultural imports over our own agricultural exports?

Can we, or should we, do less than everything within our power to see that Congress and the nation understand the problem as do the President and the Secretary of Agriculture?

The answer is emphatically No! And to each, of you assembled here today is passed the challenge to consecrate your future ef-forts to the cause of reclamation, irrigation, and sound agricultural expansion to the end that never again will arise those basic fears and greeds that may well result in another war.

The past year has, for our organization, been fraught with many important and vexing problems. When the present officers and directors, immediately following our last convention, took up the problems confronting us, we were at once faced with the issues involved in the O'Mahoney-Millikin Amendments to the Rivers and Harbors and the Flood Control Acts which were then before the Congress. We as an organization had already taken our stand on these amendments and by joining hands with the water in-terests of the New England and Atlantic Seaboard states and a few midwestern states, were able to establish such a solidarity of action which brought before the Congress, in a most convincing manner, the justice of, and necessity for, these provisions, and which finally resulted in the adoption of the amendments by the Congress and their inclusion in both bills.

You are all, no doubt, aware of the context of these amendments which have been referred to as the greatest step forward yet made in establishing the rights of the use of water in the United States. These of course establish a priority of usage and lay the ground-work for the complete integration of the plans of the Army Engineers, the Bureau of Reclamation, the Soil Conservation and Fish and Wildlife groups, so that now we have the machinery with which to construct a comprehensive, well-thought-out program of irrigation, reclamation, flood control, navigation, soil conserva-tion, and wildlife propagation from which to plan our future in agricultural expansion and permanently establish the stabilized economy of that vast area west of the ninety-seventh meridian.

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With the decentralization now in effect within the Bureau of Reclamation, I believe that the states and districts are finding it much easier to discuss their problems than when all matters were required to be cleared through Denver and Washington. Our association stands ready to lend its efforts to a successful carrying out of this policy, and we are thoroughly convinced that, with proper congressional support as to approval of projects and with proper appropriations to carry out the programs of these existing agencies, we can rapidly advance the cause of reclamation and irrigation.

The most vexing problem with which we have been confronted the past year has been the proposals for the establishment of valley authorities. These we will have discussed much in detail at various points in our convention program, but before leaving the subject, may I say that our organization, working hand in hand with more than thirty other land and water organizations, has, in conjunc-tion with efforts of the Coordinating Committee, so successfully carried the torch in opposition to authorities that at the hearings before the Commerce Committee in May, 1945, such convincing arguments against the Murray Bill, S. 555, more generally spoken of as the Missouri Valley Authority Bill, were made that a unanimous adverse report was rendered by the committee. Again, after the hearings before the Irrigation and Reclamation Committee in September of this year, a twelve to two adverse report was re-turned by that committee. There still remains the hearings to be held, in the near future, before the Committee on Agriculture and Forestry, after which the bill will go to the Congress for final

action. *

I cannot too strongly urge upon you the necessity for con-tinued alertness and sincere action if we are to preserve the present system of development of our water resources and preserve the useful services of those agencies which have, over a long period of years, proven their efficiency, and which are now engaged in such development with complete understanding and coordination of efforts.

Perhaps the next most vexing problem which has confronted us this year has been the provisions of the land limitation clause of the Reclamation Act. It is extremely difficult to draw a .pattern which will fit perfectly all sections of the United States, and as the work of the Bureau has gradually expanded over an

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ever-increasing area, we now find that such limitations as might fit perfectly into the scheme of things in Idaho or Utah may well prove difficult of application in California or in Texas.

In order to clarify this situation and find a way to remove the existing barriers to comprehensive development of all our lands, a special voluntary committee has undertaken to solve the problem for us. It will no doubt make a report based on deep and careful study, as a result of which I hope that the convention will be in position to make some specific recommendations to Congress for amendment of the present law.

It was my privilege while in Washington recently to attend a farewell dinner in honor of Lieut. General Eugene Reybold, Chief of Army Engineers, upon the occasion of his retirement after thirty-nine years of active service in the U. S. Army. It was also my privilege to spend considerable time with Mr. Harry Bashore, Com-missioner of Reclamation, and with Dr. Hugh Bennett, Chief of Soil Conservation in the Department of Agriculture.

These men are personally known to most of you through their participation in our previous annual programs. They are much better known to the people of the seventeen western states for their invaluable contributions to the conservation of our natural resources, and while General Reybold is no longer in service, we may be assured that his successor, General Wheeler, who will appear on our program, has a broad understanding of our problems and our association may look forward to a continuation of that pleasant relationship with these several important governmental agencies in the furtherance of our cause.

Our organization has grown from a membership in thirteen western states to a membership of seventeen states, and of these thirteen now have state organizations.

Our national organization has had the continued and unselfish support of many individual reclamation and irrigation groups representing both federal and non-federal projects. Perhaps the time has come when the state organizations should take a more active part in the affairs of our parent organization, representing, as they da in most cases, the rank and file of those most deeply interested in water conservation and utilization. Should they not become more intimately a part of our policy-forming group, of our legislative endeavors, of our financial and operating structure! Personally, I would like to see every member state perfect its

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state organization, and these take a more active part in our work and in the solving of our problems. In fact, the remaining four states of our seventeen states might very profitably form their own individual state organizations. Then, with a solid front, represented by seventeen state groups, our present National Asso-ciation might become more or less an assoAsso-ciation of State Reclama-tion AssociaReclama-tions, since no one has a deeper interest in the problems of the national organization than do they. With this unified support, and the concerted action to be derived therefrom, we can carry out a program of development and expansion that will result in concurrent construction in all states, which will mean a leveling off and orderly expansion of our agriculture in all of our reclama-tion areas.

Now, looking forward with reclamation to such a program, I find there are still 415 projects in the seventeen western states, either to be initiated or to be completed, at an overall cost of more than seven billion dollars—a forward-looking program to be spread over fifteen or twenty years.

We must remember that the earlier settlers of the West have built and utilized the cheapest and simplest projects, but we should now be thinking in terms of the overall picture, and the federal government should continue its development of projects on a large scale, thus contributing to the economic welfare of our people and at the same time creating national wealth which will be reflected in our tax structures, and through these media prove to be self-liquidating.

President Truman, in his address upon the occasion of the dedication of the dam at Gilbertsville, Kentucky, as I read in the letter, made the following statement:

. . . in the last analysis such development is a matter for the

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people themselves to decide."

Let us then go about the development of our own land and water resources in a practical manner and avoid the necessity for independent valley authorities which will tell us how to lead our lives, for personally I do not believe that the people of the West want the authorities. Instead, the people of the West do want regional development on a coordinated and comprehensive scale— a plan which will call for large expenditures and which must have the support of the Congress. This we can only hope for by honest and fair dealings and honest and above-board representation of facts.

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PRESIDENT'S MESSAGE

At present there are many eastern farmers and many eastern industrialists who are looking askance at both agricultural and industrial expansion in the West. Many of the eastern congress-men are of the same mind. Therefore we must stand solidly together and furnish irrefutable facts that such expansion and development is economically sound. Let us remind them that the irrigated sections of the West raise crops which cannot be grown elsewhere in the United States; crops which are non-competitive, and crops which can be marketed during seasons when they do not mature elsewhere.

The irrigation farmer. is best known for his specialty crops— producing and marketing lettuce in the winter months; cantaloupes in the spring; peas and tomatoes and other vegetables when ice and snow are still gripping the ground in the midwest and eastern gardens.

Before the trees in other sections have stopped blooming he has marketed his fruits. And what about the hay and grain that goes to top off the livestock for the market and which has, during these last nearly four years of strife, produced the sinew for our fighting men at the front? The irrigation farmer's produce does not compete with that which will be sent to market from other sections later, but will implement the necessary food and fiber to produce a well balanced and proper ration for the high standard of living which we are striving so hard to maintain.

The Department of Agriculture has estimated that this country contains eighty millions of acres of worn-out or submarginal lands with more than thirty-five millions having been taken out of production within the past ten years. Therefore, within the next few years this nation must bring into cultivation and production more than forty-five million new acres in order to meet the needs of a growing population; to raise the standard of living of the American people; to provide employment opportunities; to furnish farms to thousands of families now barely eking out an existence on submarginal farms; to increase the national purchasing power; and thus to maintain our economic structure on a firm foundation. Incidental to, and entirely a part of, our reclamation program, is that of power development, flood control, and soil conservation. As stated before, perhaps most closely linked with our program is that of power.

This is a most important phase of our overall program. The federal reclamation laws permit of a policy whereby rate schedules

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may be such as to return more than the minimum prescribed, and thus afford a freedom to adopt rate policies that will accomplish the three-fold purpose of (1) returning revenues not less than sound prudent management would in any event require; (2) assist-ing water users by carryassist-ing a share of the cost of the irrigation features of the project; and (3) providing power at a rate that would encourage its most widespread use to the economic good of the area affected and still be fair to the taxpayer. Yet I wonder whether, behind the scenes, this policy is being considered in its full light.

With the permissive phase of this reclamation law being invoked in the most practical manner, an opportunity would, be provided for encouraging industry by assuring them power at a reasonable rate and using the excess revenue from this product to assist the water user in liquidating his obligations for water development.

Agriculture and industry must travel a parallel road. There-fore we of the West should encourage industrial, as well as agricultural, expansion to secure a balanced economy for our people.

Friends, ours is a wonderful opportunity. The way lies open before us. Again I say we are on the threshold of a greater tomorrow. This organization, the only one of its kind in the United States, is privileged to have laid at its feet an even greater task than before in the development of this great western empire through the creation of capital wealth and the establishment of an industrial and agricultural empire such as has been the dream of those hardy pioneers, our forefathers. They, by dint of hard work and endeavor, have reclaimed these desert lands and paved the way for this generation to establish a civilization worthy of their efforts.

Let us not fail them. Rather, let us go forward with a solid front and zeal that will bring assurance for so much success that the National Reclamation Association will continue to hold the confidence and respect of all America as the outstanding voluntary agency which is making so important a contribution to the welfare of this great nation. (Applause.)

Mr. Bundy. Gentlemen, we will now take up a few of the other items for the afternoon. The next on the program is the treasurer's report by Mr. James A. Ford, Manager of the Spokane Chamber of Commerce, Spokane, Washington. Jim doesn't need any introduc-tion, I am sure.

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TREASURER'S

TREASURER'S REPORT

JA Al ES A. FORD, Spokane, Washington Mr. President:

In giving the annual report of the treasurer it has been the custom also to include with my report the annual financial state-ment of the secretary-manager, of Washington, so that you will have the full picture of the cash statement and where we stand in the National Reclamation Association.

I have here the report of the auditor, which shows that the Washington office expended during the year $37,277.01. I don't think you want me to read it all budget by budget. It will be printed in the report just the way the auditor has it. Our Washing-ton office finished our fiscal year—you understand our fiscal year ends October 1st, that is one month and a half ago, so the books were closed both at Spokane and in Washington and these state-ments are of October 1st, and on October 1st in the manager's hands was cash amounting to $2,838.85. Now in the treasurer's office in Spokane we started the year with $9,610.90. Collected during the year $30,848.11. The expenditures were to Mr. Hagie $37,000.00. You will notice the treasurer gets no salary and that we furnish the bookkeepers and don't charge you, and don't charge you for the postage, telegrams or anything. The only expenses are auditing and the treasurer's bond. The treasurer then finished the year with cash on hand of $3,359.61. Add that to the amount on hand in the Washington office of $2,838.85, we have total cash on hand on October 1st of $6,198.46. Now with reference to the quotas. I have here a quota statement showing exactly how each state stands on its quota, how much it has paid and how much it is in arrears, and I am sure you don't want me to tire you, but I would like to read the names of the honor states who raised their quota— Arizona, Colorado, Idaho, Kansas, Kontana, Nebraska, North Dakota, Oregon, South Dakota, Washington and Wyoming. May I offer an explanation and let you in on a little scandal in the Na-tional Reclamation Association?

In the statement you read in your annual report you will find that Wyoming is in arrears, hasn't paid all of her 1945 or this year's quota by $605.00. Well, Mr. Wilkerson, our director from Wyoming —he has his eye on me over there—got a warrant from the treasurer of Wyoming for $606.00 which was more than was due. That warrant was sent to Mr. Hagie over here. He was the last one who saw it.

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Mr. Hagie wrote a letter and says he mailed that letter to me. Any way, he sent a copy of it. I never saw the original or the warrant. Now the question is where is that $606.00 warrant from Wyoming? If any of you folks know we would surely like to find it. Any way, it hasn't turned up in the treasurer's office of the state of Wyoming, so we have stopped payment on it now and we are going to get another warrant in its place so I hope you remember that while I couldn't change the figures of the auditor and while that still shows Wyoming owing us, it is not Wyoming's fault. We don't know whose fault it is unless it is Uncle Sam's fault.

Since the annual audit was made there have been a number of collections and, as is quite the custom, directors bring money and stuff my pockets. Texas and Arizona have been virtually snowing me under with money so I am going to insert into the record now and it will be included there, the cash receipts that we have re-ceived- since October 1 up to the date of this convention, and those total—I could read them all again—$398.65 which the treasurer has collected since that time.

Now please don't get the idea that we are rich because of those figures I have given you, because quite the contrary is true. The National Reclamation Association is poorer today than it has ever been in all its history since 1936, when it was really financed. We have been undertaking a terrific job not only in Washington, but nationally. We have been carrying on a terrific campaign and it has cost a lot of money. I told you the Washington office spent over $37,000. I told you that our collections last year were only $30,000. You, by your own subtraction can see it slipping away and slipping away mighty fast. We are at the last ebb financially.

We have to do this job. It had to be done at this time; it couldn't be put over, and we had to dip into the old reserve barrel and whereas at one time we had a reserve of $12,000.00, today our reserve wouldn't amount to over two or three thousand dollars. Our situation right now will be along about that, maybe three or four thousand. You understand I can't keep changing the books every minute and as Texas and Oklahoma keep handing me checks. The directors have taken this situation into deep consideration and at a meeting of the board of directors today many of the directors after consultation with the delegations from their states agreed to raise the state quotas. Now that is going to be a job. It is all very well for a director to say I will go out and raise two or three hundred dollars more, but it is an entirely different job to go

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TREASURER'S REPORT

out and get the money, and what we are trying to do this year is to see that we don't spend more than we collect and that we can again start back a little way on the road to having a little reserve because had we not laid by that reserve in the past years your association would not have been able to do the job that you folks wanted to do during the past year and a half or more, so we, have to get ourselves in better financial shape and we are poorer today and I hate to make that kind of report. Now that means that every friend of the organization and every state must come through. The directors can't raise it alone. They have got to have your support. We are going to live within our means now, we have got to; but we are going to do this job and we are going to finish it. If every-body will pitch in and do your jobs I can assure you that the budget has been carefully considered, item by item. You don't need to have any worry about that and we .itre not asking for anything that we don't have to have, so we want you all to pitch in and give us a hand and this organization is going to go through and carry the torch just as it has in the past. Thank you, Mr. President. (Applause.)

Mr. Smith. Texas has some more checks to shower on Mr. Ford. I want to hand them to you, Mr. Treasurer, and then you figure out how much we still owe and I will give you my check for that.

Mr. Bundy. Here is another one.

Mr. Ford. Now I suppose, Mr. President, I ought to make another report.

Voice. I will give you another check.

Mr. Bundy. Mr. Ford, it has been asked that you be called back here to the loud speaker a minute.

Mr. Sharp. The reason I am calling Mr. Ford back this morning: I woke up and, my door was still locked but I turned around and looked on the table in my room and I saw a pencil there. Now I don't really believe that Jim has a key to my door and I don't remember of ever buying anything of Jim Ford. I haven't missed any money and I got to looking at it a while ago and it says Ford on it so I now return it to you, Mr. Ford.

Mr. Ford. It got away once before and was returned to me from Vancouver. Oklahoma just handed me a check which makes them over, too. That is better.

Mr. Bundy. Gentlemen, this isn't very encouraging and I am sure that Jim told you just the facts. As you know our expenses have grown just as it has in every business and we are trying to do a real job for you and we want the privilege of working for you and with you.

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TREASURER'S REPORT-NATIONAL RECLAMATION ASSOCIATION CASH STATEMENT FOR 1945

Cash on hand, September 30, 1944 $ 9,610.90 Budget collections from Oct. 1, 1944, to

Sept. 30, 1945 30,848.11

TOTAL CASH RECEIPTS FOR 1945 $40,459.01 DISBURSEMENTS, 1945

Remittances to F. 0. Hagie, Secretary-Manager $37,000.00

Auditing 27.50

Treasurer's bond renewal premium 37.50

Bank exchange charges .40

Refund-Utah quota 34.00

Total Disbursements by Treasurer, 1945 37,099.40 Cash on hand in Treasury, Sept. 30, 1945 3,359.61 Cash on hand with Manager 2,838.85

Total cash on hand $ 6,198.45

QUOTA STATEMENT AT CLOSE OF FISCAL YEAR, SEPT. 30, 1945 Due from Paid on Paid on

State Prey. 1945 ' Prey. 1945 Balance

Quota Quota Quota Quota Unpaid Credit

Arizona 1,277.50 1,277.50 _ Arizona 1,500.00 617.50 882.50 California 2,875.55 2,875.55 California 4,667.00 932.00 3,735.00 Colorado 1,783.24 1,783.24 Colorado 24,00.00 2,320.76 79.24 Idaho 161.00 161.00 Idaho 1,250.00 1,250.00 Kansas 270.00 270.00 Kansas 350.00 350.00 Montana 1,500.00 1,502.10 2.10 Nebraska 600.00 604.00 4.00 Nevada 127.00 127.00 Nevada 267.00 98.00 169.00 N. Mexico 423.00 392.00 31.00 N. Mexico 600.00 600.00 North Dakota 500.00 502.00 2.00 Oklahoma 573.00 573.00 Oklahoma 850.00 24.00 826.00 Oregon 1,000.00 1,002.00 2.00 South Dakota 500.00 500.00 Texas 683.75 340.00 343.75 Texas 1,000.00 1,000.00 Utah 1,500.00 1,198.00 302.00 Washington 3.500.00 4,013.35 513.35 Wyoming 1,250.00 646.00 604.00 Miscellaneous 16,766.00 8,496.46 8,269.54 $ 8,174.04 $40,000.00 $ 7,799.29 $24,056.17 $16,842.03 $ 523.45

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SNYDER, PARR & COMPANY Certified Public Accountants, Tax Consultants 1331-1333 G Street, N. W., Washington 5, D. C.

October 22, 1945 Audit Committee,

National Reclamation Association, Denver, Colorado.

Gentlemen:

We have audited the accounts and records of your Secretary-Manager of the Washington, D. C. office for the period October 1, 1944, to September 30, 1945, and submit herewith our report.

SCOPE OF THE AUDIT

Cash in bank was verified by reconciliation with cash balance as. confirmed with the depositary. The check and deposit register footings were proved. All cancelled checks returned by the bank, together with vouchers covering the disbursements, were examined by us and compared with the entries in the record, and the disbursements were found to be in order.

Cash remitted by the Treasurer of the Association from Spokane, Washing-ton, in the sum of $37,000, was found to have been deposited in the bank account kept by F. ,O. Hagie, Secretary-Manager.

A statement of cash receipts and disbursements for the period under review is submitted herewith and is marked "Exhibit A."

GENERAL COMMENTS

INSURANCE. A fidelity bond on the Secretary-Manager, in the sum of $5,000, and a fire insurance policy on the office furniture equipment, in the amount of $1,200, were produced for our inspection. Workmen's compensation insurance is also in force.

SALARIES. Salary of the Secretary-Manager for September, 1944, and salary of the office secretary for September 15-30, 1944, were paid during this period. If these payments had been made in the previous fiscal year, when due, the expenditures of the period covered by this audit would have been reduced by $1,121.67, making a total of $19,266.88, as compared with $21,800 on the budget.

TRAVELING AND ENTERTAINMENT AND MISCELLANEOUS EX-PENSES. Some items of these expenses were not supported by expense vouchers.

CONCLUSION

The records were in orderly condition and well kept, and we were accorded every facility in connection with the audit.

Respectfully submitted,

SNYDER, PARR & COMPANY, By (Sgd.) Lionel B. Farr

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EXHIBIT A

NATIONAL RECLAMATION ASSOCIATION

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS OF THE WASHINGTON, D. C. OFFICE—F. 0. HAGIE,

SECRETARY-MANAGER IN THE PERIOD OCTOBER 1, 1944,

TO SEPTEMBER 30, 1945

Cash on hand, September 30, 1944 $ 2,864.69

Cash received from Treasurer 37,000.00

Employees' taxes deducted for September, 1945 251.17

(Remitted to Collector subsequent to September 30, 1945) Expendituros

Budget for the

Allowance Period Oct. for 1, 1944 to

CASH DISBURSEMENTS: One Year Sept. 30, 1945

President's budget $ 2,500.00 $ 354.33

Secretary's travel expense 2,532.00 1,318.01 Furniture and fixtures 300.00

Rent (budget allowance $40 for electric

227.87, current in rent; expenditures cover $50 •

for electric current in rent) 1,850.00 1,743.50

Office supplies 300.00 262.40

Printing and mimeographing 3,818.00 6,583.13

Postage and express 1,200.00 2,095.48

Telephone and telegraph 600.00 1,342.33

Books and publications 100.00 312.88

Salaries and extra help 21,800.00 20,388.55

Legislative 2,000.00 399.43

Miscellaneous and general expenses

in-eluding social security and D. C. taxes 3,000.00 2,249.12 $40,000.00 $37,277.01

$40,115.86

TOTAL DISBURSEMENTS OCTOBER 1,

1944 TO SEPTEMBER 30, 1945 37,277.01

Cash balance, Hamilton National Bank, Washington, D. C.,

as at September 30, 1945 $ 2,838.85

Next on the program is the report of the Secretary-Manager. Floyd, as you know, is your real power in Washington who really does the job for you. At this time we will hear a report from Floyd Hagie. (Applause.)

REPORT OF

SECRETARY-MANAGER

FLOYD 0. IIAGIE, Secretary-Manager, Washington, D. (.. Mr. Bundy, ladies and gentlemen:

As you all know, I have a contract with Jim Ford .to wake the audience at this time, and today he has run true to form and put you all in a good mood. After noting this pencil episode, I think it casts some doubt in your mind about the true facts about the

(34)

REPORT OF SECRETARY-MANAGER

Wyoming warrant that was lost. I suspect now that the warrant arrived at Jim Ford's office, that he was probably away on a fishing trip and probably the janitor swept it into the waste paper basket and so Wyoming has to go through all the process of re-issuing a new warrant.

We are meeting here today at the conclusion of the greatest and most destructive war of history, leaving in its wake political, social, economic, and rehabilitation problems to be solved beyond anything heretofore contemplated. The fact that the United 'States has emerged undisputed as the greatest nation of the world focuses anew the attention of all the world, including every American citizen, upon the democratic processes and the natural resources which have made us the nation that we are. The members of the National Reclamation Association, who have helped conquer and develop the western frontiers, and who have helped to expand the western civilization as we know it, understand the part which our democratic methods and our natural resources have played in the attainment of the position which the United States enjoys today.

Recently I have been reading of the great reclamation works in Italy during the dictatorship of the late Mussolini. There was no organization of citizens such as this to help initiate, formulate, and execute that great undertaking. It was planned and developed by a highly centralized government in Rome. The people and the local subdivisions of government had no voice in the plans. The farmers were just assigned the job of farming, once the land, the homes, and the farm buildings were ready for occupancy. Who is there that can place a proper evaluation upon the time, thought, attention, suggestions, proposals, and hard work which the members of this association have contributed to our American way of life and to the development of the natural resources of the West during the past fourteen years?

In past years I have frequently been told directly or indirectly by certain federal officials in Washington that the National Recla-mation Association should blindly support the plans of this bureau or that bureau. It was inferred that the federal employees usually knew best what should be done in the West; that the association's plans were perhaps out of step, or contrary to their department's plans for putting our land and water resources to the greatest use; some times they insisted the emphasis be placed on one phase of a multiple-purpose project while the association placed more emphasis

References

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