The record-union., 1891-06-24

CILTO1tJcte, puDlISUeQO Oh y uue IGAI. IL Will
be found deeply interesting:
SAN Francisco, April %, 1891.
To the Editor of The Cbroncte-SIR:
Your esteemed favor of April 18th is be-
fore me. The object of your writing, as
derived from your letter, is to obtain
from me an expression, either in the
form of letter or an interview, as to the
solyency of bonds of irrigation districts
formed in conformity with the provisions
of what is known as the Wright irrigation
law.
Prior to the receipt of your letter and
the examination OF the subject which it
suggested, had but a general and neces-
sarily vague idea of the provisions of the
law. / did, however, understand clearly
the objects of this legislation from its in
ception. Arid lands lying understanding
climatic conditions become highly pro-
ductive and valuable by the application
of water through artificial channels; in
fact this method of supplying to the land
the necessary moisture to produce vege-
tation is far more satisfactory than de-
pendence upon the uncertainty of sea-
sons.
The factors upon which successful field
culture depend are climate, fertility, in
teliigent cultivation and moisture. The
three first Of these exist throughout the
country and are under the control largely
of men. You find the climatic conditions
that is, the clemency of fclimate-faVor-
ing vegetation. You can find the fertility
of soil, and to this apply intelligent culti-
walton; but when these have been found
the fourth essential in irrigated countries
is left to the varying Vicissitudes of
| seasons. This fourth being under control,
| the round is complete, and the profit Of
| field culture may be as steady and un-
varying as the accumulation Of interest.
| Irrigation, however, demands the en-
| ployment Of capital and the appropriation
and application Of water. The diverse
| ownerships of the land and the water may
| give rise to conflicting interests. The
| entire fertility of the land being depend
| ent on the water, there appears to be an
| apprehension on the part of those owning
| the land that the ownership of water is an
! undue control and menace to the rights
and interests of the landowner. On the
other hand, latterly the owners of irriga-
| ton systems, after having invested large
! sums Of money in their construction and
| development, complain of 81 disposition
on the part Of the owners Of the land to
regulate by law the rate at which the
irrigators are served with water in such a
manner as to deny all reward to the
capital invested.
Even a superficial examination of the
| Wright law proves that the object of the
legislation was to combine the ownership
Of the land with the ownership Of the
water. The theory of the law is very
comprehensive and simple. It provides
that an examination Of a photographic
system shall be made, surveys tor bitches
completed and district or area subject
to the system proposed to be constructed
shall be formed. When these surveys
are filed with the Board of Supervisors
the local legislative body for the county
an election shall be called, under the
authority of the Supervisors, of the quail
oil IN, iotl lIri,,r ri1,.
the proposed ditch. When the necessary
majority in favor of the construction of
the ditch is obtained, then bonds shall be
issued, from the proceeds Of tho sale of
| which the bitches shall be constructed
and the water introduced into the coun-
try. The provision of the law makes
| these bonds a lien upon the land bene-
flied, and the money to meet the interest,
payments of the coupons attached to the
| bond, and to create a sinking fund for
the final redemption of the bonds them
selves is collected by a process Of taxa
ton simple and effective. Thus the value
of the land subject to the system of irri-
CATION constructed by money obtained
from the sale of the bonds is offered as
security for the payment of the interest
and the final redemption of the funded
debt.
If the bonds constitute a lien upon the
land which may be enforced, if they are
valid mortgage, the question Of their
solyency would depend upon the relation
of the value of the land affected by them
and the amount Of the bonds. 1t can
scarcely ever happen that the amount OF
bonds necessary to be issued for the pur-
poses Of constructing an irrigating canal
would ever reach more than bare mOiety
of the value Of the land subject TO the ir-
rigation system constructed. My infor-
nation is that in most cases from three to
seven per cent. of the value of the land
only is required to construct the means ol
its irrigation. | mean by this the devel-
oped value after water is applied. The
land subject to the lien of mortgage bonds
has an equitable interest in the water to
be supplied by the irrigation system.
There is in its ultimate sense a unity OF
ownership as to both land and water, an
ownership which is common to all the
land, and the application of the water is
tplaced under such regulation as to make
its distribution fair and equitable
Thus, all conflict between the owners
of the water necessary to fertilize arid
lands and the owners of the lands irri-
the soil is willing to own lands subject to
such a system, and is relieved of all ap-
prehension of oppressive rates, while the
capital employed in the development OF
the irrigation system was derived from
the value of the land itself. Thus when
| IuS JULIUS lSSuSd III bllb CONSTRUCTION Oh
the system are redeemed, each owner will
have perfect ownership of the water in
due proportion to his holding. These
provisions appear to me to be wise, Judi
ciouS and effective. The only remaining
question that can be raised in the prem
ises relates to the validity of the Act
This is question of judicial determine
ton, and, as is well known to you and
your readers, has been passed upon by
the Supreme Court of the State in toul
decisions which affirmed the cOnstitu-
tioDality of the law and the validity of the
bonds issued IL conformity Herewith.
The existing status Of the case, then
appears to be: First-Irrigation confers
greatly enhanced value on the lands sub
ject to it. Second-The irrigation bonds
issued as relating to any particular dis
trict, if such bonds have been issued in
strict conformity with the statutes of the
State, are a first mortgage upon the lands
lying subject to the irrigation system con
structed from the proceeds of the sale
The bonds are therefore a mortgage upor
valuable real property. 'Third-Asa rule
and perhaps in all cases, the value of the
land greatly exceeds the amount of the
mortgage to which it is subject and il
should therefore follow that bonds being
a legal and valid first lien upon property
greatly in excess of their face value anc
| interest are perfectly solvent securities
equal TO if not better than the mortgages
upon real estate which are deemed by
bankers and investors to be preferred
security for the repayment of loans.
If these considerations are not conclu
sive the people and the judiciary Of Cali
fornia are resting under delusion. |
the legislation already had does not es
tablish a perfect security in the bonds tC
be issued, then the Acts passed by the
Legislature fall short of their design, anC
the design the people of California had ir
securing their enactment. We are scarcely
I at liberty to entertain the opinion thal