The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-05-20
IRRIGATION BONDS.
4 Conference of Financiers and
Water Men.
The Bankers Asked to Give the Securities
Their Moral Support and Scatter Plenty
Ger a Smiling Land.

A conference was held in the rooms of
the Chamber Of Commerce yesterday after
noon between gentlemen interested in irri-
CATION schemes throughout the State and
several Of the leading bankers of San Fran
cisco.
Among those present were the following
named: Daniel Meyer W. II. Holcomb,
Albert Miller of the San Francisco Savings
Union. William Alvord of the Bank of Cali
fOrnia, c. b. Stone, J. a. Waymire, H. l.
Wiley. S. RoSenbaum, Robert Balfour,
William Powell of the Bank of British
Columbia, Tyler Beach, \, p. Chapman,
John Boggs Of Colusa aud w. A. Davis of
Tulare.
The object of the meeting was to afford an
opportunity for an interchange Of views on
the negotiation of the bonds which the
Wright act authorizes irrigation districts to
issue. The iTrigatioQists asked the bankers
to appoint tribunal composed of lawyers
and engineers, who should examine into the
legality of a particular issue and the pract-
Cability Of the scheme, and if such tribunal
reported fayorably to give the Issue their
moral support and facilitate the negotiation
of tile bonds in foreign cities.
AN IMPORTANT FACTOR.
Barry Baldwin was nominated Chairman,
and called upon w. S. Green, who dwelt
on the Importance Of the irrigation question
as a factor in the future welfare of the
State. Bonds amounting TO $4,000, 600 had
been issued by organized districts, but only
100000 had been placed, and the difficulty
which had been experienced was believed to
be due to the fact that san Francisco cap
italSts would not indOTSe the securities. EX-
Judge Rhodes had been asked to read an
opinion on the law Of the case, and he
would show that the Wright act had been
sustained by four decisions OF the Supreme
Court.
Ex-Judge A. L. Rhodes said he had pre-
pared a synopsis of the decisions Of the
courts bearing on the irrigation districts and
their bonds. The Supreme Court has de-
cIded that the Wright act is constitutional,
that iTTig cation districts are pubic corpora
tiOnS just as cities and towns are. The
Boards Of Supervisors have authority to or
game irrigation districts and can conclude
what lands shall be included in the districts
The board had further powers of ordering
an election and Of estimating the amOuntfOr
which the bonds were 10 be Issued 1t could
be compelled 10 levy assessments to pay
debts and Interests on bonds. There IS no
fear that tie United States Supreme Court
would reverse the decisions of the State
Supreme Court, for the Stale Supreme Court
Is regarded, as highest authority on qUes-
tons OF the Interpretation of the State Con-
stitutIOH. HE opinion dealt with many
other points when the act had raised and
which had been decided by the courts.
II. l. Wiley urged the necessity OF eStab-
fishing a record Of the status Of each iTTiga-
ton district.
BANKERS OBJECTION.
Daniel Never raised the objection that the
purchasers had no security after they had
taken some of the bonds that the rest would
be disposed Of, and that the districts had
power 10 make a second OF more issues, aud
thus lessen the value Of the security.
EX-State Treasurer Mcdonald urged that
there was no danger in this power OF max
ing subsequent issues. II a district had Is
sued $4,000 ana 100000 more later it
would be responsible for the whole as well
as for part. Ii the value of the land were
doubled by water being put on It the land
would be worth ten times as much as the
bonds call for even If 100000 Of bonds
were issued. Swamp districts aud school
districts have tile same powers as the lrrI-
cation districts, and vet school district bonds
can be sold above par at or 6 per cent III
teTest The ITrigatIUnists only ask that the
bankers should take legal advice as to
whether the district IS properly organized.
and, if satisfied On this point. they should
indOTse the bonds. As to NJ. Meyers Objec-
ton Il was better 10 spend more money and
have water on the land than not to
spend the additional sum and have u water.
Mr.. Green thought Mr.. Meyers Objec-
lions might be oOyiated II the bankers
would refer tie legal and practical Ques-
tions to a competent lawyer and a cUmpe-
tent engineer.
Nj Wiley stated tile willingness Of the
irrigation men 70 pay the expenses Of such
tribunal.
Another objection was raised by Albert
Miller WHO SAID that the banks are the
cuStOdianS Of other peoples money and had
to follow public opinion, not 10 lead it.
When private capital bong ut the bonds,
the hanks would follow
THERE Is TOO MUCH LITIGATION.
a communication from /. Steinhart Of the
AnglO-CalifOrBian Bank was read by Mr..
Frledlander Mr.. Steinhart wrote that as
long as a decision Of the Supreme Court Is
necessary in each case, the banks will be
unfaYO rab!y affected
Frank @. Newlands said it was impossible
for an individual TO carry out these must
important irrigation improvements The
community itself must. The Wright act
gave the community the machinery toy which
70 raise money, but It finds difficulty in
floating the bonds. 1t is necessary that the
legality OF The act and the pTactcabilty of
each particular scheme, the two points on
which the value Of the security depended,
should be inquired into By somebody. lie
thought the irTigatiOnists' request that such
a tribunal should be appointed might be
granted.
William Alvord suggested that the whole
matter be referred 10 the San Francisco
Clearinghouse.
Mr. Wiley pointed oat that a second issue
Of bonds would be a second lien on the land.
Mr.. Chipmau felt certain that no banker
would be satisfied unless he had the opinion
of his own lawyer on the legality OF the
Issue Of bonds by district The real diff
Guilty would be TO secure a satisfactory COM
mittee on the feasibility OF an irrigation
scheme.
6. w. Mordecai argued that in most cases,
even if the scheme failed, the bonds would
be good, for the land would be worth more
intrinsically than the value Of the bonds.
Mr. Miller moved that the matter be re-
ferred to the committee of the Clearing
house.
This was carried unanimously. and the
meeting adjourned.
NICARAGEA CANAI