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<br />water rights located upon them, and the lands with wa- <br />ter rights were mortgaged to various loan compan~es at <br />an average valuation of 512.50 per acre. the funds thus <br />raised being lised for construction of canals ard the <br />improvement of the lands. To the settlers owning their <br />own lands in the territory east of Horse Creek water <br />rights were sold at an average price of 51 0.00 per acre, <br />the allotment Gf water urcer s'-.lch rights being 1.44 sec- <br />ond-feet for each 80 acres, or 5800.00 for an 80-acre <br />water right. These water fights are now worth 55,500.00 <br />each, or more. <br /> <br />Many thcusands of acres were seeded to alfalfa in the <br />spring of i 888, not only by the Company but by the <br />farmers, and a fair stand was obtained notwithstanding <br />the numerous breaks \vh~ch occurred in the new canal <br />banks, often depriving the lands of water or delaying its <br />delivery at cr!tical times. Th;s was also partiy due :0 <br />inexperience of the farmers and to tne lack of knowl- <br />edge of how to irrigate and to rar:d e ,",vater. <br /> <br />During the winter of 1888 and 1889 settlers who had <br />taken up lands north of Lamar incuced Mr. Henry :0 <br />extend his canal from its terminus at Gageby Arroyo :0 <br />Big Sandy Creek, a distance of 73 miles, and about the <br />same time, or before, that portion above Gageby to the <br />river was enlarged to a capacity of 761.8 cubic feet per <br />second of time. Following the completion of the canal <br />and the application of water decrees of priority we~e <br />obtained giving its first priority for 164.64 cubic feet per <br />second, as of date April 15:- , 1884, and its second pricr- <br />ity, for 597.16 second feet, as of date f\1arch F, 1887. <br /> <br />The entire cost of the canal up to this time was about <br /> <br />12 <br />