The record-union., 1893-02-18
IRRIGATION WORKS.
THE SENATE COMMITTEE WILL
NOT CONSENT
To Mortgage Them for the Security of
the Bonded Indebtedness of
the District.

The Senate Committee on Irrigation
and Water Rights met last night and held
a very interesting session.
! Senate Bill No. 676, which is an Act to
amend an Act to provide for the organi-
zation and government OF irrigation dis
tricts and to provide for the acquisition of
water and other property, and for the dis
| tribution of water thereby for irrigation
purposes, approved March Z, 1887, by
amending Sections IS and II thereof, was
taken up and discussed at some length.
The bill was introduced by Senator
Seymour, and provides that the Board of
Directors of the district shall have power
TO pledge by mortgage, trust deed or
otherwise, all property of the district.
whether real, personal or otherwise. in
Guiding all its rights and privileges, as
security for the payment of the bonds
and interest thereon, which may have
been issued by the district.
Judge Waters being present took a
stand against the passage of the bill.
stating that in ten years those persons
now desiring its passage would be Just as
strongly opposed to it. He asserted that
TO give mortgage meant that the same
might be foreclosed in ease of default of
payment of either interest or principal.
and that If such foreclosure occurred then
the water for irrigation purposes might
be diverted entirely from the district.
leaving them absolutely without a sun
ply for their land.
Mr.. Montgomery, the prominent irri
gationist, said that if the bill passed he
believed that the bonds of the irrigation
districts would Immediately increase in
value and sell at par. He declared that
the bonds of the districts of the southern
portion OF the State often exceeded the
actual assessed value of the property ON
which they were drawn. In his district
the dry land was practically valueless.
but had speculative value which caused
1t to be assessed for from $40 to SI2 an
acre, while its bonded Indebtedness for
irrigation purposes amounted to $50 an
acre. The dry land, he said, was no Sc
curlty for the bonds, but after water was
placed upon it, the security was annie
tor all purposes. He argued further that
before the people of those districts would
allow their water supply to be cut of
they would certainly pay the interest
upon their bonds.
In the districts in which enormous
works for carrying the water supply were
necessary, continued Mr.. MONTGOMERY
the bonded Indebtedness ran the pannt
from Sll to SS3 an acre, and it was to the
illhClS9b VI tIlS NlISiIlCiS 10 nave the works
mortgaged to cover part of the
bonded Indebtedness instead of HAVING
the land of such districts so heavily en-.
numbered. If the bill was not passed al
lowing the mortgaging of the properly
they own, continued the speaker, in two
years there would be but few districts
whose bonds would be worth more than
fifty cents on the dollar. He asserted
that gigantic monopolies were fast organ
lzing for the purpose OF grasping all of
the watersheds in the southern part of
the State, and in short time it would be
impossible for irrigation districts to Sc
cure water supply at any price In the
meantime he paid to private irrigation
company Sl2 an acre per year to procure
water for his ranch, with no certainty
that the supply would not be cut off next
year, and his orchard die.
Mr.. Montgomery explained, in answer
to question from Senator Ostrom. that
a mortgage could not be placed upon the
works separately from the land of the
district.
On motion of Senator Ostrom the bill
was reported back with the recommends
ton that it do not pass, the vote standing
) ayes to | no. Senator Seymour voted ave
on the proposition, but reserved his
right to battle for the measure on the
floor of the Senate. He wished, he said.
to strike out about four lines in one of
the sections, which would leave the bill
without fault.