loans on a basis favorable to the settlers, is attainable through the extension of governmental credit. It is recommended that the domestic water systems be financed by a governmental agency. 3. A large governmental agency would be in a position to demand the consideration of water distribution economies in the planning of the shapes, sizes, and locations of the farms and farmsteads. It is recommended that a large governmental agency plan the domestic water systems. 4. The administrative and bookkeeping expenses of the agency operating these systems can be reduced by combining these functions with those of other agencies supplying various similar public needs. It is recommended that such functions be combined with those of another agency, e.g., the agency supplying irrigation water. 5. The above suggested economies can be made available to the settlers if the irrigation districts provide the domestic water. At present these districts can legally construct, repair, and maintain systems to provide this water to the owners of irrigated land within the district. It is recommended that the irrigation districts be the governmental unit to provide this public need. The Required Functions of the Agency The agency that will supply domestic water should be able to secure the benefits proposed by the Problem 9 subcommittee and to insure efficient operation of the system.50 Planning the System.-The agency should be in a position to obtain economies through proper planning of the layout, shape, and location of the farms and farmsteads. It must be able to assure consideration of water distribution economies along with the various other factors in planning the farm plots. In doing this it should look to the ultimate requirements of the community rather than present conditions, being willing to provide a system that may supply water in excess of immediate demands. Construction of the Systems.-The agency responsible for the construction of the systems should operate on a large scale basis. For example, drilling and casing the wells can most economically be done on a large-scale wholesale basis either by contracting with private companies to do the work or by using governmentally or cooperatively owned and operated equipment. If the actual work is to be done by private companies, a large agency representing the settlers would be in a strong bargaining position. Likewise, if it should be deemed advisable for the governmental or mutual unit to own and operate the equipment, large-scale operations is a necessity to assure efficiency in operations and availability of skilled labor. Purchasing Equipment.-Large-scale centralized purchasing of equipment and materials has been recommended. If the purchases of these systems, of which approximately twenty will be constructed annually in each irrigation district, are combined, savings resulting from lowered selling and delivery costs can be procured for the settlers. Financing the Construction and Purchases.-The agency financing the provision of domestic water must be able to obtain the required capital during a period in which the drains upon the pecuniary resources of the settlers will be at a maximum and to schedule repayment on a basis that the settler-debtor will be able to meet. The capital outlay required for a typical system serving twenty farms including well, pump unit, storage tank, pressure equipment, and distribution facilities will probably exceed $6,500. The total required during the first year will probably exceed $400,000, and during the entire period of settlement will approach $8,000,000. During a development period expenses commonly exceed income. Thus, the postponement of the rapayment until favorable conditions exist is a necessity. The demands for the capital outlay for other farm improvements, i.e., livestock and implements, will claim priority to the settlers' available capital. The result is that the repayment of the outlay for water systems must be postponed and spread over a relatively long period. 50 See chapter VI, "Rural Domestic Water Supply," Problem 9, Farm Improvement, Columbia Basin Joint Investigations. Equalizing the Financial Burden. The well that is exceptionally deep may require an unusually large outlay of capital. A costly well that proves to be but a dry hole may bring unbearable hardships upon a few farmers. The settlers obtaining water therefrom should not be penalized. The agency should assume the responsibility of spreading this risk over a large number of settlers. To do this, it must either own or insure a large number of wells and systems. Maintaining and Repairing the Systems. Provisions should be instituted for operating the systems after construction has been completed and the loans repaid. Supplies and equipment needed for maintenance and repair should be purchased in large quantities to obtain quantity discounts. As when procuring the initial equipment, purchases can best be carried on by an agency centralizing the demands of a large group of systems. Likewise, wholesale drilling of additional wells needed as replacements is economical. Operating the Systems. The administrative expenses of the domestic water agency should be held at a minimum. A certain amount of clerical assistance will be necessary to record distribution of and payment for water. Seldom does the actual expense of billing in small city systems fall below fifteen cents per statement. A savings could be obtained by combining these functions with those of some other similar utility, as the agency supplying irrigation water.51 Financing the Operations.-The general policy should be to establish a rate that · will provide sufficient funds to meet all necessary expenditures, including in addition to normal administrative and operating expenses ample reserves for contingencies. These reserves should be sufficient with a limited amount of borrowing, to meet all requirements. Included among these contingencies are the drilling and casing of new wells to replace dry ones, the replacement and repair of water mains, and the installation of new deep-well pumps or storage tanks. The simultaneous occurrence of conditions requiring several major replacements or repairs might place an unbearable drain upon the normal reserve held by the small-community system. However, the probability of such emergencies occurring in like proportions throughout a large area is small. Though the sum of the reserves of the local groups equalled the reserves of the large agency, the latter could give greater assurance of meeting the maximum demands. The Agency to Perform These Functions From the foregoing discussion it is evident that the majority of functions that the agency must perform can best be done by one operating on a large-scale basis. Though many of these duties could be executed equally well by a private corporation, a consumer cooperative or a governmental agency, it is doubtful whether any but the last mentioned would be willing, as well as be able, to finance the project. Private individuals or corporations might have adequate financial means; but, since the repayment must be postponed and thinly spread over a long period eliminating opportunity for immediate profit, their desire directly to assume the risk is improbable. It is conceivable that a cooperative might supply the needed capital. However, the probability of the settlers having adequate funds available for this purpose, considering the other drains upon their resources, is small unless loans are made by governmental agencies, e.g., the Farm Credit Administration. A governmental agency is the only source both willing and able to finance the project. Two agencies exist which might serve in this capacity, one a State and the other a Federal agency. The State agency is the irrigation district. As provided by the laws of Washington: "An irrigation district, operating and maintaining an irrigation system, in addition to other powers conferred by law, shall have authority to construct, repair, purchase, maintain, or lease a system for sale or lease of water to the owners of irrigated lands within the district for domestic purposes." 11 52 The other agency, which will exist if the proposed Columbia Basin Project Bill is passed, is the United States Bureau of Reclamation. The section of the proposed bill dealing with this subject is worded as follows: "The Secretary (of Interior) is authorized. . . as an experiment for which his authority shall extend only to lands located in the first three irrigation blocks, to construct improvements on public lands and lands acquired 81 Gerald D. Hall in a letter to P. Hetherton, June 13, 1942, wrote, "With the plan proposed here, I believe the minimum can be reduced to about 8 cents if there is no expense for postage." 52 Remington's Revised Statutes of Washington, No. 7417-2. under this subsection including wells, and to loan to settlers funds which in the judgment of the Secretary are necessary in their operations during the development period . . . provided, that such loan . . . plus the cost of any improvement constructed by the United States on the lands of the settlers shall not average more than four thousand dollars ($4,000) per farm unit."53 Though both agencies could perform the initial functions, it is doubtful if the Bureau of Reclamation would operate the domestic water system. The Irrigation District is an agency that can perform all such functions, as well as take advantage of the economies of combining certain clerical work, as suggested in the preceding section. It is, therefore, recommended that the domestic water systems be constructed and maintained by the irrigation districts. If it be deemed advisable to perform certain functions on a local basis, e.g., repairing the equipment or collecting tariffs, such might be performed by subagencies of the irrigation district with offices in the various trade centers. SUBPROBLEM 9-CONSERVATION OF NATURAL RESOURCES * What size and type of administrative unit or units is best adapted to deal separately or jointly with problems of conservation of soil, grass, water, minerals, and wildlife? Introduction Under subproblem 9, should be considered such units as (1) soil conservation districts, (2) grazing districts, (3) fish and game preserves, (4) administrative areas for weed, insect and disease control programs, and (5) drainage districts. The procedure in connection with this subproblem was for the investigator to (1) discuss various phases of the subproblem in personal conference with each of the advisers and with other individuals who might offer valuable suggestions; (2) prepare a tentative report of recommendations; (3) submit a copy of the tentative report to each adviser for comment; (4) revise the tentative report into a final report with recommendations, and (5) submit the final report to the Problem 28 committee. The major consideration under subproblem 9 of Problem 28 is the size and type of administrative unit best adapted to deal with the problems of soil and water conservation, the development and conservation of wild life, and the control of weeds, insects, and diseases. Soil and Water Conservation. The soil in the Columbia Basin, particularly that which is to be developed for irrigation, is of good quality. Much of the portion of the Basin that is to be developed for irrigation is relatively level, some is sloping, and some is rolling. One method of maintaining the quality and fertility of the soil, and minimizing the cost of irrigation water, is the practice of sound farm management methods by individual farmers. Without some organized effort to promote conservation in the area, there might be some tendency for farmers to use their land for the greatest immediate gain without giving due consideration to maintaining the quality of the land for future production. Even though the supply of water in the Columbia River may be plentiful, the application of an unnecessary amount on irrigated farm land will result in (1) increased cost of distributing irrigation water, and (2) reduction in the quality of land due to inadequate drainage, or increased cost of providing drainage for the surplus water. Development and Conservation of Wildlife. The future status of wildlife in the Columbia Basin might well be considered under three general types of areas, as follows: 1. Highly developed irrigated areas, where the important types of wildlife will be (a) upland game birds, such as Chinese pheasant and Hungarian partridge, (b) small game animals, such as cottontail, and (c) possibly fish in the large drainage canals. 2. Pasture areas, where the important types of wildlife will be (a) upland game birds, such as quail and some pheasant and partridge, (b) some small game animals, such as cottontail, and (c) if permanent lakes are developed as a result of the application of irrigation water, there may be ducks and possibly fish. 58 Bill to amend Columbia Basin Project Anti-Speculation Act, sec. 4 (a), 173644. See p. 30 of text for listing of investigator and advisers. 695765-47-10 3. Above Grand Coulee Dam, where the important types of wildlife are, and will continue to be, fish and deer, the increase in the water shore line as the reservoir is filled will not materially influence the amount of wildlife in this area. Deer will have easier access to water but part of their feeding ground will be inundated. The great seasonal fluctuation in the water level of the reservoir will make the shore line unsuitable for breeding ground for ducks. The provision of unmolested nesting and breeding grounds for birds and small game animals would tend to greatly increase the amount of wildlife in the Columbia Basin. It is possible that this could be provided in connection with small irregular-shaped areas on each farm, which might be used as farm woodlots. Control of Weeds, Insects, and Diseases.-The annual cost of control and value of damage done by weeds, insects, and diseases in irrigated areas is very high. Through organized efforts on the part of farmers, the value of such damages can be held at a minimum for many years after the development of a new area. Recommendation The following recommendation is made after discussing the problem involved in this subproblem with each adviser, and obtaining the suggestions and recommendations of the State Soil Conservation Commission and other interested agencies and individuals: It is recommended that three soil conservation districts be established through which the conservation of soil and water, the development and conservation of wildlife, and the control of weeds, insects, and diseases in the Columbia Basin might be administered. The above recommendation is made on the assumption that there will continue to be three irrigation districts in the Columbia Basin. If there should be a consolidation of the three irrigation districts into one district, there would be reason to consider the advisability of recommending that the area of the Columbia Basin be included in one, instead of three, soil conservation districts. It is believed that all of the area of the Columbia Basin, and possibly some adjoining non-irrigated agricultural areas, might well be included in one of the three soil conservation districts and that all of the area of any one of the three irrigation districts in the Basin should be included in a single soil conservation district. It is suggested that the boundaries between the soil conservation districts be established approximately on the boundary of the irrigation districts, as indicated on map 1, and that the outside boundaries of the soil conservation districts be established either on or outside of the outside boundaries of the irrigation districts. The center of the Columbia River might well serve as part of the outside boundary of the western and southern soil conservation districts (map 1). It is believed that the county boundary would be a logical outside boundary for the western soil conservation district on the west, the north, the northwest, and the northern part of the east side. The east boundaries of the proposed eastern and southern soil conservation districts have not been located. It is believed that the east boundaries of these two districts should be established far enough outside of the boundary of the area to be irrigated to include dry-land farms adjacent to the irrigated farms, the operation of which will have a direct bearing on the operation of farms in the irrigated area. If three soil conservation districts are established approximately as recommended above, they would include, after the Columbia Basin is fully developed, about 19,000 Columbia Basin farmers distributed by soil conservation districts about as follows: western district, 4,500; eastern district, 7,500; and southern district, 7,000. In addition to approximately this number of Columbia Basin farmers, each district no doubt would include several dry-land farmers outside of the irrigation districts. All of the western soil conservation district would be in Grant County, and it would include most, but not all, of the county. The eastern district would include parts of Grant and Lincoln Counties but not all of either county. The southern district would include most of Franklin County, part of Grant County, and a small portion of Walla Walla County in the vicinity of Pasco. Before deciding to recommend that soil conservation districts be established (to agree somewhat in geographic area to be covered by the three existing irrigation districts) for the promotion of conservation and the control of weeds, |