Los Angeles herald., 1891-10-22
The Irrigation Convention
Ends its Session.
What was Accomplished at Yes
terday's Session.
Judge Widney Discusses the Value OF
the Bonds.
A New Board of Directors Elected-Sell
ing Bonds Below Par-Delegate
Wright Explains the New
Bonds.

The state irrigation convention met
again yesterday, and finally adjourned
in the afternoon. The whole day was
taken up with discussions, there being
no more business before the meeting.
Twenty-Five members were present in
the board of trade rooms when the
morning session was called to order.
Judge R. NJ. Widney was introduced as
the first speaker by L. L. Rodgers, of
Rialto. Judge Widney spoke on the
subject OF placing irrigation bonds
on the market. He thought that
these bonds ought to rate as
high as any in the bond market
OF the country, because they are so well
secured. The speaker advocated legal
izing the issuance of irrigation bonds,
because on several occasions they had
been refused as collateral security. He
cited an instance of a Stockton banker
who wanted to raise money on some of
the bonds in San Francisco. The
moneyed men he approached asked for
better security on the grounds that
although the bonds might be all right,
they would not wish to accept them
without examining into their legality.
Judge Widney gave another illustra-
tion:
A certain English capitalist had been
offered the bonds of the Vineland dis
trict. Upon investigation he became
suspicious or alarmed, and at the last
moment refused to buy them. Judge
Widney took several thousand dollars
worth, and while later sold the same
bonds to the Englishman at a price
higher than they could first have been
purchased. He had at last been con-
vinced that they were gilt-e6ge security.
The speaker concluded by submitting
resolution asking the legislature to
endorse the issue of bonds SO as to
legalize them. The matter was referred
to the legislative committee.
A new board of directors was appoint
ed by the chair in the following persons
A. j. Tuily, of Colusa; P. G.. Baker, of
Alta district: E. Dewitt, of Tulare F.
G. Ryan, of Anaheim and President
Nance, of Perris. FL
The convention endorsed the action
of the Errigating congress recently held
at Salt Lake City, and composed of
delegates from states west of the Missis-
sippi.
The question next discussed was one
of great importance. 1t had reference
to the matter of selling bonds below par.
1t seems that a statement had gone
abroad that large block of Big Rock
creek bonds had been offered for sale at
so cents on the dollar and that this
statement had defeated the sale of the
bonds in Chicago. In the discussion it
was denied that any of the bonds had
been sold below par. A delegate stated,
however, that he did not see how it
could be prevented if holder of the
bonds sold below par in order to realize.
]. w. Mackie, of Tulare, supported
this view of the matter, and declared
that he could see no great harm in sell
ing the bonds below par if it became
necessary for district to raise money.
General Wiley prepared a resolution
and read it to the convention. Its pur-
port was that when bond is procured
either for labor or money, the holder
must not dispose of it at less than 10 per
cent. discount on it's face value. The
resolution brought on another discussion.
1t was claimed that no such contract
could be made to stand. When a man
made a purchase of an article, he could
sell it again for what he pleased. M. L.
Wicks made vigorous protest against
the resolution, and gave his reasons.
The convention seemed to be in sympa-
thy with him, and General Wiley with
drew the resolution.
The question of funds for the current
expenses of the association was then
entered into. At noon the convention
adjourned until half.past O'Clock.
The first business taken up after recess
was the amendment of certain bylaws.
The first amendment gives the directors
of districts the prerogative of delegatinp
other persons to represent them in con.
ventions, that is, empowers them to
appear in conventions by proxy. This
right they did not hitherto hold.
The assessment for expenses by an
amendment will hereafter be based on
valuation of district, instead Of acre
age as heretofore. 1t was considered
unjust to burden large but poor dis
trict with greater tax than smaller
but richer one.
The bylaw allowing members OF the
board of trustees $4 day and expenses
was amended so as to omit the allow
ance of $4. The trustees actually have
never been paid the stipend, and it was
considered useless to continue the dead
letter.
Mr.. Wright next spoke on the form
of bonds under the new statute.
Until now, the system has been to
make an entire issue payable in
installments. Thus, an issue Of 5000, 900