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Show I LAND BOARD TO I LEND WHERE IT I GETS FISRT LIEN R Settlers on Irrigation Districts Tiat m Have Issued Bonds H Barred H Salt Lako City, Juno 19. By reso-1 reso-1 lutlon, the stato land board yesterday H decided to make no farm land loans on lands lying within the bounilar-V bounilar-V ics of Irrigation districts which havo B issued bonds under the bond tow of H tho state. It was also decided to H make no loans on lands that hnve H been pledged to tho government as H security for water rights under gov H ernment projects. H This means that no application from H persons owning lands under these H sort of projects will be accepted or H considered by tho board and many H persons throughout the state who hre H deslrlous of securing state aid wilt H be unable to get it. Hj Action of tho baird was based on H advice of legal authority that when H 'tonds are Issue i by un irrigation Jls-H Jls-H trlct the bonds ara first Hens against Hj all lands within the boundaries ct H the project. Hence It was deemed in H advlsablo by the board to make tiny R investments or loann of state monej H on lands save wnre the pladg to H the state is a first lien. B In a number of cases of tho lrrlga- tlon districts the state has purchases purchas-es ed bonds Issued by the district. To 1 make loans on farm lands in such H cases would be making double Invest-H Invest-H ments on the lands, it was argued, H and this was considered poor bust-H bust-H ness. Hj In the case of lands pledged to the Hj government as security for wato" H rights, it was decided to matte : o Hj loans becauso the pledge to the gov- H ernment Is a first Hen and the Btn'c Hj would have to tako a second lien H should It loan money. This Is deemeJ iM too much of a hazard. Hj It Is explained by members of mo H bo.vd that under the federal law If h man owns eighty acres of land and secured water rights from tho government gov-ernment on forty acres of it, ho Is required to pledge tho wholo tract as security. A chango In this law fs contemplated, it Is said, which wit! require tho pledging of only that portion por-tion of tho land for which water rights arc secured, thus leaving the balance free. If this chango Is made then state loans might be secured on the unpledged portion of the lands becauso then tho stato would have the first lien on tho lands. The board spent considerable tlm.i on the Duckhorn reclamation proleci in Emery county and agreed that tho company might proceed with work under tho unit system. Tho company was instructed to furnish tho plans and specifications of Its canal to tho' state engineer at once. Tho engineer will then report to tho board and that report will bo considered before toe board takes hny action In finally b proving tho segregation asked. |