lumber necessary to the success of the settler. The location of these forests or wooded areas is shown on Pl. II, which gives the outline of the western States and Territories and shows the forested areas. The location of the principal areas to be irrigated under the terms of the reclamation act is shown by the black spots on Pl. I. These are within extensive areas, whose outlines are shown on the map. These boundaries indicate the positions of the townships within which public lands have been temporarily segregated pending survey and examination. Most of this land has already passed out of the control of the Government, but it was deemed wise at the outset to make reservation of considerable areas, in order to allow latitude in final selection of the lands that might be reclaimed. Much of the success of the settler upon lands irrigated under the terms of the reclamation act is dependent upon the use of the grazing land. The vast extent of open grazing country is shown on Pl. III by the cross-hatched area. Although this country is theoretically open to all citizens and can be utilized for grazing, yet practically it is to a large extent subdivided and held by various stockmen, who control the water supply and in one way or another render it difficult or impossible for the newcomer to find subsistence for his animals. One of the problems yet unsettled is that of securing to the settler under the terms of the reclamation act the use of the surrounding grazing land until such time at least as he is able to establish himself. He must at first, while breaking up the ground, subduing the soil, setting out trees, and getting his land in form for agriculture, have some free range where his animals can obtain subsistence. Consideration for the general welfare demands that herds of cattle or bands of sheep owned by nonresident citizens should not be permitted to destroy the grazing in the immediate vicinity of the small farm of the settler under the irrigation act. PROGRESS OF WORK. The projects which appear to be most meritorious and which present the least obstacles to early achievement have been first selected, and work has been begun on these. At the same time in performing work in one State the interests of other States have not been neglected, but it has been found that the greatest obstacles, both from the engineering and the human standpoint, are encountered in States from which the largest funds have been derived. This is because these States are not truly arid, for dry farming is now successfully carried on in them, and most of the farmers do not desire to change their methods and take up the more laborious work of intensive cultivation under irrigation. As a result, there have been great obstacles to overcome in these States, and in some it has been necessary to leave the restricted fund as an amount which may be expended in future, when feasible plans can be made. There are two distinct ways in which the reclamation fund may be expended (1) construction may be undertaken only when the funds in the Treasury are ample to complete the entire work, which may extend over several years; (2) work on each project may be started if funds will probably be available before the work is finished in all of its parts. Under the first plan it would be necessary to keep in the Treasury for several years all the money that would be needed for construction in the future, and to work only on such projects as could be completed by the fund actually in hand. Under the second plan, work could be started at all points at once, contracts being made, however, only for parts which can be completed as a whole, and for which there are ample funds in the Treasury. By this plan the works would be completed several years earlier than by the first plan, and a great part of the reclamation fund would not lie idle indefinitely. Work has been pushed energetically on all projects where construction has been begun. There have been some delays, due to floods and other unforeseen events, but on the whole the contractors have all pushed their work, and most of them will probably complete it within the required time. The table below shows the construction work that has been accomplished on all the projects: Work completed on reclamation projects. Main canals constructed__. Distributing canals constructed....... Irrigation ditches constructed__ Telephone lines completed.. Tunnel driven... Roads constructed_. Office and buildings. Cement mill Bridges built Excavation accomplished. Concreting accomplished Lumber purchased Structural steel used. Paving _do____ 15,000 The stage of the work on each project is given below: Salt River project, Arizona.—On this project the cement mill, telephone system, and temporary power plant have been completed and are now in operation. The power canal is about 98 per cent finished and will be completed in a short time. The contractors for the Roosevelt dam have been assembling their equipment and are ready to push operations. Yuma project, California-Arizona.—About 24 per cent of the Laguna dam is completed and about 9 per cent of the dike system. Uncompahgre Valley project, Colorado. The telephone system on the Uncompahgre Valley project has been completed and is in operation. Divisions 1 to 10 of the South canal are finished, and some work has been done on divisions 11 to 20. The entire South canal may be regarded as about 15 per cent completed. After the contractors had completed about 2 per cent of the Gunnison tunnel they gave up the contract and the work has since been carried on under force account. About 15 per cent of the tunnel is completed. Minidoka project, Idaho.-The work on the dam, spillway, and canal may be considered as half finished, and about 21 per cent of the work on the distrib uting canal has been done. Huntley project, Montana.-There has been some delay in the work on this It is believed project, due to the refusal of bidders to execute the contracts. that everything is now arranged and that construction will proceed rapidly. About 1 per cent of the structures is completed. E. nd a grat action bas infor and t lished of 19 Lower Yellowstone project, Montana-North Dakota.-The telephone system is about 40 per cent completed, and about 5 per cent of the structures and 4 per cent of the canals are finished. North Platte project, Nebraska-Wyoming.-The Pathfinder tunnel is complete, and about 72 per cent of the Interstate canal remains to be done. The contractor is beginning work on the Pathfinder dam. Truckee-Carson project, Nevada.-The main canal and the distributing canals on the Truckee-Carson project are now complete and water has been turned into them. The ditches are about 95 per cent finished. Little has been done on the regulating works at Lake Tahoe, as an injunction was obtained by a neighboring landowner and operations are temporarily suspended. Hondo project, New Mexico.-The rock excavation on this project has been completed, and of the dam and canals about 60 per cent of the work yet remains to be done. About half of the work on the dam and canals has been carried on under force accounts, as the contractors gave up the contract after they had completed about 23 per cent of work. Belle Fourche project, South Dakota.—The telephone system on this project has been completed, and about 43 per cent of the main canal may be regarded as finished. Shoshone project, Wyoming.-Preliminary surveys of this project have been completed and contracts have been awarded for the dam and tunnel. The contractors are beginning work on these, and work may be expected to progress rapidly. FINANCIAL STATEMENT. RECEIPTS AND EXPENDITURES. The fund created by the provisions of section 1 of the reclamation act is derived from the proceeds of the sale and disposal of public lands in 13 States and 3 Territories. The act was in part retroactive, putting into the fund the proceeds beginning with the fiscal year ending June 30, 1901. Upon its signature, therefore, on June 17, 1902, there were available practically two years' receipts. No expenditures were made before the fiscal year ending June 30, 1903. The following table gives the receipts and expenditures up to the end of the last fiscal year, June 30, 1905. The figures for this last year are not exact, as the receipts have not yet been fully computed by the Treasury officials, and the accounts and claims against the fund have not yet been fully audited, there being a number of adjustments to be made dependent upon the interpretation of certain laws. Receipts and expenditures from reclamation fund, July 1, 1900, to June 30, 1905. The above table gives the totals for the fiscal year. The fund, however, must be considered in accordance with political divisions, as required by section 9 of the act, in which it is declared that it is the duty of the Secretary of the Interior to expend the major portion of funds arising within each State or Territory within such State or Territory, subject to the existence of feasible irrigation projects. The term “major portion" has not been defined, but is assumed to be 51 per cent of the proceeds. There is thus what might be termed a restricted portion of the fund, namely, 51 per cent of the amount received from each State and Territory, and an unrestricted portion, or 49 per cent, of the entire fund. This unrestricted portion may be used by the Secretary according to his discretion, and can be expended in construction of feasible works in any one or more of the States and Territories named. This provision for an unrestricted fund arose from the well-known fact that the greatest needs and opportunities of reclamation are in States and Territories from which the receipts from the disposal of public lands are least and it has thus been practicable to start work in such localities without the delay incident to its initiation in States where irrigation is least needed, and where there is little desire on the part of the present landowners to incur the expense incident to reclamation. The following table gives in alphabetic order the States and Territories from which the funds for the years 1901 to 1905 have been derived, the reStricted portion of the funds, and the total expenditures already made on behalf of these States and Territories up to June 30, 1905. The expenditures are given in detail in the reports on the projects. In this apportionment of expenditures, the cost of administration of the Washington office, and of engineering and expert advice has been included, all of these items of general expenditure being apportioned to one State or another. This apportionment is subject to revision as developments proceed, because much of the work lies along or near State lines, and much of the expenditure made in one State in connection with storage reservoirs or headworks of large canals will be ultimately chargeable to land in adjacent States, because of the direct benefits derived by these lands. It is impossible at the outset to make this appor tionment on a final basis because of the uncertainties connected with the exact future development of these large bodies of land. The Sept within t existence e to be 31 cted port 1 State fund T discreti Lore of th 1 fact the and Terri least: the de nd vie LIABILITIES. In addition to the actual expenditures from the reclamation fund, consideration must be had of certain liabilities diminishing the balance available for expenditure. These liabilities consist for the most part of a few large contracts entered into for the construction of works, the operations on which will extend over several years. All such contracts are entered into in compliance with the terms of section 4 of the reclamation act, providing that before letting any contracts for portions or sections of the work the necessary funds must be available. This wise provision is in accord with the general law governing such matters, and great care is being taken in this regard. At the same time, plans are being made for expenditures dependent upon future receipts to the fund, in order that by having comprehensive plans the work may be carried on systematically and economically. The following list of liabilities gives, by States and Territories, arranged in alphabetic order, the estimated amounts due on contracts and the amounts already paid. Many of these contracts were under consideration and were not signed on June 30, 1905, and the list, which has been brought down to November 1, 1905, is therefore not strictly comparable with the above estimates, which through the necessities of the case end with the last fiscal year. Liabilities under contracts entered into to October 31, 1905. Does not include contracts given up by Taylor Moore Construction Co. In addition to these large liabilities there are many small contracts, involving ESTIMATED FUTURE RECEIPTS AND EXPENDITURES. In order to prepare plans for the near future intelligently, it is necessary to keep in mind the probable increments to the reclamation fund. Most of the work already begun or to be undertaken will be completed in 1907 or 1908. It |