Los Angeles herald., 1891-05-17

week, and note the reserve decrease, and |
wonder what it will be the coming week, |
and not to do our part to counteract to |
some extent, as it certainly would, by
giving the endorsement asked for, if the
securities are found worthy? To show
that some step is necessary, at this time,
l submit the following:
SAN FRANCISCO, April IS, 1891,
DEAR SIR. II Is fact that the large
landholders are generally opposed to the
district irrigation system, and that for
some reason the bankers and other large
capitalists of San Francisco have given
the cold shoulder to our district bonds.
We have arranged to meet with the
chamber of commerce of San Francisco
on the 2lst of April, at which time we
expect to see the leading capitalists OF
the city, and we especially urge you TO
get your local bankers each to send the
cashier or director here at that time.
All that is necessary to do is to get the
endorsement of the California bankers
no one need take any financial responsi-
bility. This is a matter of the utmost
Importance. In fact, crisis is about
reached and we must forge ahead. Let
any OF the directors or anyone represent
| ing the directors also come. We cannot
urge this in too strong terms.
Having been left in charge of legisla-
ton and some other matters, by the dis
trict directors, and seeing the absolute
necessity OF this move, we have prom
ised to act in this behalf. Respectfully
yours, w. s. GREEN,
G. @. WRIGHT.
1t was upon this call that the conven-
ton was held in San Francisco on April
2lst. While hold it as duty Los Ange-
les bankers owe to the community, to
thoroughly investigate this class OF
securities, and to give their aid and en-
dorsement to further the placing of
them in foreign markets, there is
another and no doubt a selfish reason
why it should be done. With $20,000,-
900 of foreign money spent largely in
Southern California, to bring our fertile
soil into its full productiveness, what
would be the net returns, and how would
Los Angeles banks be benefited? We
have only to look at Riverside banking
institutions, and foot up their deposits,
to ascertain the benefits they derive
from the highest state of cultivation OF
California lands. Help other localities to
arrive at the same high plain, and mark
the deposits of the Los Angeles banks.
The only foreign money yet received
from the sale OF bonds, to my knowl-
edge, some $4,000, was placed in Los
Angeles bank. How much of the $780,
600 900 would find it's way directly to
us? | think over one-half. The semi
annual collection of the coupons and
ultimate collection of the principal,
would cut no small figure in our ex-
change account.
With these self-interests at stake, with
the request which comes to us from
abroad, for our endorsement of this
class of securities, and for the future
prosperity and glory of California, are we
not in duty bound to give this subject
further consideration.
Geo. H. Stewart, cashier of the Los
Angeles County bank, and manager of
the Los Angeles clearinghouse, then
read the following paper:
Mr.. PRESIDENT AND GENTLEMEN: At
first thought nothing seems to the
owner of unproductive dry land SO de-
sirable a combination as wet water
with his particular dry land. On con-
sideration, however, the proportions of
the mixture must be right. or the result
vii DO failure. -QoofamatlOn dlstrlcts
find the water in too full supply, and
the irrigation districts, on the other
hand, must develop or add to the exist
The statistics of reclamation districts
would be useful to apply to this subject,
possessing, as they do, SO many char
acteristics in common with irrigation
bonds that the courts have made the
bulk OF decisions in re the former appli-
cable to the latter. l do not find the
record at hand, nor am | able, in the
short time at my disposal, to satisfac-
torily digest information. My points
partake rather of the nature OF conun-
drums and suggestions, from which in
vestigation can be pursued.
We are considering irrigation bonds
as securities, either for safe Investment
or for basing loans upon. To make
them desirable as such, all elements of
uncertainty must be eliminated regard
ing those matters upon which depend
the payment of interest and principal.
Advocates of the bonds seem to con-
slider this status achieved, provided the
facility for obtaining adequate water
supply is good and, provided, the bonds
are not issued in excessive amount on
valuation OF the land.
Allow me to name few more alleged
uncertainties which should be thorough
ly settled in establishing the safety OF
these bonds:
ElrSC-fTONIucu GIo lid,
the right to enact that adjudication by
the superior courts of the proceed
ings had in issuing of the bonds, with
out personal service on parties at inter
est and in default of objection within
the short time allotted, shall forever bar
out subsequent assailment of the bonds
on the score of irregularity.
Second-Provided, the act does not
violate the constitution of California in
attempting to provide for taking private
property without due process of law.
Thild-Provided, the act can consti-
tutionally authorize the taxation and
sale of private property to pay for q
future uncertain and contingent inn
provement.
Fourth-Provided, the examination ot
the values of the district, the regularity
of the proceedings and the actual feasl
bility Of the scheme for irrigation in any
particular case. shall not be too intri-
cate, expensive or uncertain.
Fifth-Provided, the privileges sc
freely accorded by the Wright act and
the amendments thereto are not abused
am aware that most of the uncer-
tainties presented above have beer
favorably passed on by the supreme
court of California, which, to the ordi
nary citizen, is ample guarantee fol
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