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JUDGE BLICKHAHN: I MR. STAPLETON: MR. PETERSON: MR. STAPLETON: MR. PETERSON: MR. STAPLETON: MR. MOSES: I LtU/v "Thank you, Ben. It is a pleasure to be here. I hope to learn something about irri- gation lav.rs." "Mr. Moses says you could teach him." "lilr. Chairman." "Mr. Peterson." "Concerning the report made by the Direc- tor, there is one point that I'd like to have in the record that I don't exactly agree with. That has to do with the ad valorem tax as established by the federal government or an agency of the federal government being the maximum allowable. I think they draw their reference from Public Law 485 and as far as I can find out in Public Law 485, it does not say in any place where the Secretary of the Interior shall levy the maximum the conser- vancy district can levy under the state law. I think that is a matter for the conservancy district ~ to establish that levy. I believe the state law gives them that authority and not the federal government." ~1ould our attorney like to comment on that?" "1'Jell, I think this - once the district, which is the contracting agency, makes it's contract v.rith the Secretary for the repayment of whatever portion the district has to pay, it should no longer be the concern of the Secretary as to where that money comes from. If they want to hold a raffle or if they want to have a cookie sale or if they want to levy ad valorem taxes, it doesn't seem to me it makes any difference how the annual payments are met so long as they are. I think this also, if the annual payments were not made when they were due under the contract, the Secretary would then have a right to demand that the maximum levy or such levy as might be necessary to make those pay- ments be levied. But I am, offhand, inclined to agree v.rith Pete that the Secretary should- n't require the maximum levies be made. He might well take into consideration in figuring