TO PROVIDE FOR THE ACQUISITION, SALE, AND CLOSER SETTLEMENT OF DELINQUENT LANDS ON IRRIGATION PROJECTS BY THE GOVERNMENT TO PROTECT ITS INVESTMENT MARCH 31, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. ARENTZ, from the Committee on Irrigation and Reclamation, submitted the following REPORT [To accompany H. R. 11200] The Committee on Irrigation and Reclamation, to whom was referred H. R. 11200, to provide for the acquisition, sale, and closer settlement of delinquent lands on irrigation projects by the Government to protect its investment, having considered the same, report thereon with the recommendation that the bill pass. From time to time on reclamation projects, just as in other sections of the country, there occur delinquencies in payment of taxes. It sometimes happens that those who have permitted their holdings to go delinquent abandon their lands entirely and the lands become subject to sale in the counties in which they are located as are other tax-delinquent properties. In view of the fact, however, that the value of irrigated lands is directly dependent upon the keeping up of laterals and ditches and the immediate reclamation structures attached to every farm unit, it is of greatest importance that some agency be constituted that can take over such lands and care for them until they may be disposed of to other settlers. Unless this may be done the particular tracts that have been forfeited to their original owners through nonpayment of taxes suffer deterioration in all reclamation factors and as well become the hosts for weeds and other plant pests and the small animal life that preys upon growing crops or poultry in adjacent areas. Under the program suggested in the bill the Secretary of the Interior would be authorized to acquire tax-delinquent lands on reclamation projects upon behalf of the Government and dispose of the same to settlers in orderly way. The plan proposed not only means for the welfare of the adjacent properties, but is of great importance in protecting the investment of the Government for which the reclaimed lands are security. The bill, as originally introduced, bore the number H. R. 1185, and under this number it was referred to the Department of the Interior for a report. The department reported favorably upon the measure and proposed an amendment. The committee approved of the amendment, which has become section 3 in H. R. 11200. addition to this the committee made some 10 other amendments which have been incorporated in the new bill. For clarification the bill has been reintroduced as H. R. 11200 and in this form is recommended for passage. For the convenience of the House there are attached hereto the report of the Secretary of the Interior to the chairman of the Committee on Irrigation and Reclamation, the memo for the Secretary from the Commissioner of Reclamation, and the report to the Secretary of the Interior from the Director of the Bureau of the Budget. DEPARTMENT OF THE INTERIOR, Hon. ADDISON T. SMITH, Chairman Committee on Irrigation and Reclamation, House of Representatives. MY DEAR MR. CHAIRMAN: There is transmitted herewith, in response to your request of December 5 for an opinion as to the merits of H. R. 1185, a memorandum that has been submitted by the Commissioner of Reclamation. After a review of the situation, I am in full agreement with Commissioner Mead in his favorable report upon the bill. Very truly yours, RAY LYMAN WILBUR, Secretary. Memorandum for the Secretary. DEPARTMENT OF THE INTERIOR, There is herewith returned letter of December 5 from Hon. Addison T. Smith, chairman Committee on Irrigation and Reclamation, House of Representatives, requesting report on H. R. 1185, entitled, "A bill to provide for the acquisition, sale, and closer settlement of delinquent lands on irrigation projects by the Government to protect its investment." The repayment of money spent in constructing reclamation projects is usually provided for through a contract with an irrigation district organized under the laws of the State where the project is located. The district makes levies each year on the irrigable land, similar to other tax levies, and collects by this means the annual construction payments due the Government. On the settled and developed land the district, State, and county taxes are generally paid. Default in the payment of these taxes occurs on the unsettled unimproved land. In this event the tax certificates are subject to sale. Where tax delinquencies are general, practically no private purchases of tax certificates are made. If there are no other bidders the tax certificates are sold to the county and retained until the period of redemption expires, which varies in the different States from three to five years. Landowners oppose these sales and the enforcement of tax laws, which results in inaction. During this period the land remains unirrigated, taxes accumulate and the districts do not collect sufficient funds to pay the Government the annual construction charge. This leads to agitation for writing down or postponing payment of the Government debt. On partially developed projects some of the land is delinquent for more than its value. This accumulation of taxes could have been avoided if collections had been enforced against landowners or if the Government had been permitted to buy tax certificates when the lands first became delinquent. If settlers are found for any of the delinquent lands, it is necessary for them to pay in cash not only the delinquent irrigation charges but also the delinquent State and county taxes. Settlers do not buy these delinquent lands because of the large initial outlay of cash. They can buy farm lands on these projects by making a small initial payment and repay the balance owing over a period of years. The bill provides that the Secretary of the Interior is authorized in his discretion to purchase tax certificates and acquire title to delinquent lands on projects. After acquisition the lands would be subdivided and sold to settlers at cost, including incidential expenses and administration. The lands would be sold to actual settlers upon the payment of not less than 10 per cent at time of purchase and the balance would be repaid in not more than 20 years, with interest at, 5 per cent per annum. It authorizes an appropriation of $250,000 from the reclamation fund to carry out the purposes of the act. It is believed that not more than $50,000 would be needed in any year. After delinquencies were once cleared up a much smaller amount would be sufficient to carry the act into effect and stimulate payments on projects. Suitable regulations would be promulgated to provide for the appraisal of lands before tax certificates were purchased to avert acquiring land at anything but low prices. This would assure that the sums expended would be returned through purchase contracts with settlers. In order to present this idea somewhat more completely, it is suggested that there be added at the end of section 2 of the bill the following clause: "No such purchase shall be made until an appraisal has been made and approved by the Secretary, under regulations to be approved by him, showing that the value of the land, taking into consideration all conditions under which it will be sold to settlers as hereinafter authorized in this act, is equal to or in excess of the incumbrances outstanding and the taxes due and unpaid. Such appraisal shall show the amount of incumbrances and unpaid taxes outstanding, together with all other details essential to demonstrate to the satisfaction of the Secretary that the purchase is necessary and advisable in order to protect the investment of the United States and to secure the proper settlement and development of project lands. If the outstanding incumbrances and unpaid taxes are regarded by the Secretary as excessive, no purchase shall be made unless and until appropriate reduction has been made by remission, in whole or in part, of such incumbrances and unpaid taxes so far as authorized by the laws of the State involved." I believe this legislation desirable, because it would provide an agency which would be active in buying tax titles and thereby stimulate the payment of taxes by the owners of the land. It will avert the accumulation of taxes on land and assist districts in meeting their payments to the Government. ELWOOD MEAD, Commissioner. TREASURY DEPARTMENT, The SECRETARY OF THE INTERIOR. MY DEAR MR. SECRETARY: I have the letter of December 14, 1929, of your Budget officer, Mr. Burlew, transmitting copy of proposed report on H. R. 1185, to authorize an appropriation of $250,000, from the reclamation fund, to provide for the acquisition, sale, and closer settlement of delinquent lands on irrigation projects by the Government to protect its investment. You are advised that the proposed report, which recommends enactment of the bill if amended as proposed in your report, is in accord with the financial program of the President. Very truly yours, J. CLAWSON ROOP, Director. |