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Umax Powerlook 2100XL, 400 dpi, 8 bit,11,813,032 bytesMr. Campbell. Either that, or a duly incorporated water users' association. Mr. Hayden. In other words, you are satisfied that it is better to deal with a water user's association or irrigation district than with the individuals who own land under the project? Mr. Campbell. Absolutely; or they fall into the failures as they are doing on some other projects, and the result is we have no contracts made, with 500,000 acres subject to irrigation, some of it being operated under water rental right contract. The Chairman. Does that include the frozen loans in the Indian reserves? Mr. Campbell. No, sir; we did not take that up at all. Mr. Hayden. Then you think it wise to have a district organization so that the Government can deal with the water users as an association rather than as individuals. Mr. Campbell. Yes. Mr. Hayden. Another recommendation is that there shall be an appraisal of the value of the privately-owned land, irrespective of the proposed reclamation work, and that appraised price is to be agreed upon before the project is started. Mr. Campbell. That is one of the things necessary before you start the project. Otherwise you are putting a premium upon the speculator, and putting a burden upon the man who must till the soil and make his living out of it. Mr. Hayden. And you further propose that in the contract it shall be agreed that if the land is sold by the present owner to anyone else at a price higher than the appraisal, that one-half of the increased price shall go to the United States to reimburse it for the cost of construction. Mr. Campbell. To be applied on the construction cost. Mr. Hayden. Do you believe that would materially assist in securing the repayment of the cost of the projects? Mr. Campbell. I know this, that if that law had been in effect 20 years ago a great number of the existing projects would have been paid out. Mr. Hastings. Have you not such a proposed amendment bearing on the proposed section? Mr. Hayden. I have here the draft of legislation proposed by the fact-finding commission. It contains a provision that where a man has more than 160 acres of land he shall turn the excess over to the United States at the appraised price, that price to be credited on his remaining land in reduction of the construction charge thereafter to be assessed against it. Provision is also made that lands so conveyed to the United States shall be subject to disposition to settlers at the appraised price by the Secretary of the Interior. The idea is that the Government shall protect the actual home owners and not the land speculators, and that 160 acres is ample for one man. Mr. Hastings. You believe then that the recommendations of the advisory commission with respect to the conditions which should be adopted in connection with any new project undertaken by the Reclamation Service, should be applied to the San Carlos project? Mr. Campbell. Yes. If Congress takes up the San Carlos project the authorization should be with the same conditions