The record-union., 1891-07-11

! De expected nom al engineering review
| of the several schemes.
| The fact is that irrigation district bonds
/ are seeking, and, in measure, finding
market at widely separated points in the
! East and Europe.
| The various district boards and their
agents have sought in every way to get
| investors or their immediate agents to
make such examinations as would satisfy
them in almost all the principal districts.
But they have failed.
The investors and their immediate
agents are, practically, scattered over the
! United States and Europe
1t is almost impossible to induce them,
or any number of them, to select experts
| to make the needed examinations.
No single investment agent, or coterie
of agents, could be gotten to assume such
responsibility in the matter, and any
such action on the part of New York
agent, or several of them, would have
probably been open to criticism or sus-
| picion, for investors and investment
! agents do not usually trust the opinions
or actions Of other investment agents
where motive is not apparent, unless
| they have special business arrangements
and correspondence with them.
Attempts heretofore made to place dis
| trict bonds abroad have always been met
| by the assertion that the San Francisco
| correspondents of the Eastern and Euro
pean banks and investment agencies
would not give these securities counte-
nance. They either advised against them
or professed ignorance, and intimated
| suspicion of them.
The foreign and eastern investor would
not buy the bonds unless his local bank
or agent advised him to, and these, in
| their turn, depended on advises from the
San Francisco banks.
/ An investigation by any one coterie of
investment agents or financial men, no
matter how prominent, in New York,
London or elsewhere, would have COM
manded confidence only through the
special channels of their own correspond
ents.
II seemed next to impossible to bring
about such an inquiry in time to relieve
the financial stress that, almost without
exception, exists in every irrigation dis
| trict in the State.
To accomplish this result direct ap-
| peal was made by the district promoters
to the San Francisco bankers to take
some action in the matter, they being the
persons whose opinions are sought from
the moneyed world as to the value and
| character of California securities.
They declined to formally take the ini-
| tiative in any manner. Representatives
Of most of the leading irrigation districts
spent months in San Francisco and failed
! to make any practical progress further
! than to obtain from dozen of the lead
ing bankers suggestions as follows:
Each irrigation district must stand
! separately on its own merits and record.
! Each and all should be examined and re-
| ported upon by experts intimately well
known and trusted in San Francisco and
OF wide and good repute in their profess
sions. 1t is not our province, individually
or collectively, to initiate or supervise
any such examination. Let the irriga-
! ton districts select and engage experts
whom we generally know and trust, and
who have widely established regulations
| at stake, and we will act as references for
! those experts and will use their reports
III our business correspondence on this
| subject
The next practical step was then to
/ find who would be most acceptable to the
! San Francisco bankers generally.
William Ham. Hall was originally sug
gested to a number of district represent
atives by three of the very leading bank
managers in consultation as the most de-
sirable man to secure for engineer.
Canvassing further, it was found that
Alr. Hall and Hermann Schussler were
/ the only engineers whose names were
! suggested by the bankers for this service.
1t was found that Mr.. Hall would re-
! ceive a very general Endorsement from
! the financial leaders.
! Mr.. Schussler was absent from the
| State and therefore not available
/ 1t will, therefore, be seen that I am
endeavoring to carry out in practical
form the course marked out by dozen
of the leading bankers of San Francisco.
These are the men whose countenance
and action the irrigation districts sought,
and these are majority of the prominent
/ financial agents who mold the Eastern
and European investing sentiment which
we are seeking TO reach.
1t seems to me that the course adopted
is the only practical one at all available
within reasonable period of time. And,
moreover, it is in effect similar to that
which you have advocated.
! 1t is the course recommended by a
! large number of fnanciers of this city of
! the highest standing and influence, en-
tirely disintereSted as regards any spe-
/ ciai schemes, yet interested in the good of
! the State and prompted by high business
motives; and the man selected as engi-
/ neer IS the one suggested by them and
/ without consultation with the irrigation
| districts or their officers or promoters.
| know from the conferences that were
! had with the bankers that the selection of
! the engineer was not of his own seeking
nor was it the result of personal or
/ friendly or business connections.
| l was not acquainted with Mr.. Hall
until after his name had been decided
upon, and l never met him personally
until [ came to San Francisco to conclude
the matter.
! His services must be paid for and there
is no one to pay him but the district on
which he reports in each individual case.
He will be employed as special expert
! because he was recommended by the in
vestment agents to whom it is desired to
| furnish information upon which they
viii rely.
Although for business reasons the
bankers have not formally taken the ini-
/ tiatiye in this matter they have taken q
| step which informs the world that Mr.
| Hall possesses their highest respect and
| confidence as an expert.
The district will pay the fees just as an
! individual is required TO pay savings
bank experts and attorneys when he
| seeks loan from it.
The Endorsement by representative
! bankers might have been made more ex-
| tensive. But after such strong support
| from number of the leaders had been
| offered it was thought undignified and
useless to seek any more. The engineer
selected can refer with confidence to every
banking institution in San Francisco.
| The last movement was confined TO Sc
curing the countenance, in some way, OF
| banking managers alone. The CONNER
! clal and business community generally,
| through the State Board of Trade the
! Chamber of Commerce and the Produce
] Exchange, had already nobly supported
| the irrigation district movement and had
done everything to countenance the
/ bonds as good securities.
The bankers had done nothing. To
have them remain Indifferent would have
! been fatal, as already explained, and we
were glad to adopt the course suggested
by them.
In closing, allow me to express the
gratitude which in common with others
have felt toward the RECORD UNION and
its able manager for the support hereto
fore received in print and IN person from
them. And / express the earnest hope