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CONSTRUCTION DURING FISCAL YEAR.,

Construction for the fiscal year 1918 included the completion of the Big Porcupine storage dam; the beginning of excavation of the Big Muddy Creek Canal, and the construction of telephone line to connect the Big Porcupine Storage Dam with the telephone line of the Mountain States Telephone & Telegraph Co. line 4.5 miles to the west.

SEEPAGE AND DRAINAGE.

None of the project lands became damaged by seepage during the year and no drainage work was necessary.

OPERATION AND MAINTENANCE.

Water was available under the Little Porcupine unit and the west canal of the Poplar River unit early in the spring of 1917. Water delivery under the east canal of the Poplar River unit was delayed until July by the failure of the canal at mile 10 and the difficulty in obtaining sufficient labor to complete the new section of canal. A total of 1,602 acres were irrigated and a much larger area would have been covered but for the shortage of water in the Poplar River.

The rainfall for the calendar year 1917 was only 6.42 inches; the average for 32 years has been 13.51 inches. During the first 6 months of 1918 the rainfall was 3.93 inches. There has consequently been a demand for more water than could be delivered. The long dry period greatly reduced the flow of the Poplar River and very little water is available for irrigation.

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In the spring of 1914 the unallotted grazing land on the reservation was opened to entry through a drawing in September, 1913. The settlement of this land was relatively slow during 1914 and 1915, but during the spring of 1916 a large number of entries were made, the desirable land being well taken up. In the spring of 1917, about 220,000 acres of unallotted land, previously withheld as mineral, were authorized to be appraised and opened for entry. Some of the Indians have received title to their land and a number of irrigable allotments have changed hands at prices ranging from $30 to $40 On the Poplar River unit, some of the Indians are moving per acre. onto their allotments and establishing homes.

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The principal crops are oats, wheat, flax, vegetables, and bluejoint hay. Some of the Indians are turning their attention to alfalfa and several have sown small acreages on their irrigable allotments. Increased areas are farmed each year under both irrigation and dry farming. The greater number of the Indians have their homes along the Missouri River on land not yet under irrigation, and on which most of their farming is done. With favorable weather conditions good crops can be raised on this area by dry farming methods, but results for the past three years have been rather disappointing, so that more of the Indians have been turning their attention to the irrigable land on Little Porcupine and Poplar River units.

Crop report, Fort Peck (Indian) project, Montana, year of 1917.

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Cash.

FINANCIAL STATEMENT.

Project balance sheet, Fort Peck (Indian) project, June 30, 1918.

Inventory of stock on hand.

Accounts receivable..

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$50.60 11,936. 81 96.38

648, 891. 22

660, 975.01

4,422.47 458, 735. 27

$681, 303. 18
483, 485. 91

197, 817. 27

660, 975.01

Disbursement, transfer, and joint construction vouchers received.
Collection, transfer, refund, and joint construction vouchers issued..

Net investment.

Total....

Feature costs of Fort Peck (Indian) project to June 30, 1918.

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Permanent improvements: Poplar River buildings..

Telephone system: Big Porcupine unit...

Operation and maintenance during construction (water-rental basis).

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470.67

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1 Deduct.

Statement of cost by calendar years, Fort Peck (Indian) project.

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Statement of cost by fiscal years, Fort Peck (Indian) project.

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Estimated cost of contemplated work, Fort Peck project, during fiscal year 1919.

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APPENDIX.

LEGISLATION.

THE NATIONAL IRRIGATION ACT.

An act appropriating the receipts from the sale and disposal of public lands in certain States and Territories to the construction of irrigation works for the reclamation of arid lands. (Act of June 17, 1902, ch. 1093, 32 Stat., 388.)

Sec. 1. [Reclamation fund established from public land receiptsException Support of agricultural colleges-Deficiency.] That all moneys received from the sale and disposal of public lands in Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, and Wyoming, beginning with the fiscal year ending June thirtieth, nineteen hundred and one, including the surplus of fees and commissions in excess of allowances to registers and receivers, and excepting the five per centum of the proceeds of the sales of public lands in the above States set aside by law for educational and other purposes, shall be, and the same are hereby, reserved, set aside, and appropriated as a special fund in the Treasury to be known as the "reclamation fund," to be used in the examination and survey for and the construction and maintenance of irrigation works for the storage, diversion, and development of waters for the reclamation of arid and semiarid lands in the said States and Territories, and for the payment of all other expenditures provided for in this act: Provided, That in case the receipts from the sale and disposal of public lands other than those realized from the sale and disposal of lands referred to in this section are insufficient to meet the requirements for the support of agricultural colleges in the several States and Territories, under the act of August thirtieth, eighteen hundred and ninety, entitled "An act to apply a portion of the proceeds of the public lands to the more complete endowment and support of the colleges for the benefit of agriculture and the mechanic arts, established under the provisions of an act of Congress approved July second, eighteen hundred and sixty-two," the deficiency, if any, in the sum necessary for the support of the said colleges shall be provided for from any moneys in the Treasury not otherwise appropriated. [32 Stat., 388.]

Sec. 2. [Authority to locate and construct irrigation works-Report to Congress.] That the Secretary of the Interior is hereby authorized and directed to make examinations and surveys for, and to locate and construct, as herein provided, irrigation works for the storage, diversion, and development of waters, including artesian wells, and to report to Congress at the beginning of each regular session as to the results of such examinations and surveys, giving estimates of cost of all contemplated works, the quantity and location of the lands which can be irrigated therefrom, and all facts relative to the prac

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