The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-09-09

but through the inhGence of the second
irrigation congress- held in this city last
October, the case was advanced on the
calender and il is to be heard on the
9Th OF October next and in the course
OF human events. If not sooner, we ex-
pect to have the question settled. Such
\ question ought to be settled inside of
elk days instead of being continued for
as many years.
The financial basis OF the distrct
should be- changed. An irrigation dis
trict cannot be put on the same footing
as county or municipality go far as a
bonded debt 10 concerned. Legally ii
can be done; practically il cannot be
done.
The bonded debt OF city, or county,
or school district lie limited in amount
to five, or some other small, per cent oil
the assesssble property within such
county, city or school district. Hence,
If the law authorizing the bonded debt
is constitutional and the bonds are
legally issued. they can be sold at par,
or ct premium, with very low rate
of interest.
With an irrigation district it Is differ.
ent. The district frequently contains
little property of value to begin with.
The personal property in the district
may be moved away, and the value of
the real estate and the improvements
thereon is dependent for it's value on
the irrigation system when built, and
such systems may never be Quilt, or be
a failure when built.
There are instances in this state whore
the bonded debt of an irrigation district
is as low as rs per cent of the assessed
valuation OF the property in the diatrict,
but there are also cases where the
bonded debt largely exceeds the assessed
valuation.
What ia the result2 Irrigation bonds
are drug ON the market. There 10 no
state authority to paas upon these dis
tricss, and the foreign investor ia un-
able to separate the wheat from the
chsff; hence the purchase of irrigation
district bonds is a speculative proposition
and the good Districts suffer by being
compelled to place their bonds on the
market side by side with the bonds OF
worthless districts. They are also com
PEELED t, pay high rate of interest and
then sell their bonds at large discount,
thus paying high rate of interest on
money they never receive.
The state is interested in these dis
at stake with their success. A state
has no right to pass law for the forma.
ton OF district on such basis that
when foreign or local capitalist buys
its bonds he ls liable to lose his money
by not being able to collect either princi.
pal or interest.
Toe state should not be party to the
formation of district that is not per-
fectly sound from financial aud busi-
ness standpoint. and state should not
permit the formation OF any district ON
any other than q sound basis.
If the state proposes to provide for the
organization of O system of irrigation
districts on q sound financial and bust
ness basis, let it for a consideration en-
doree the obligations of that system if
necessary to assure the world that the
citizens of that state in collective, ee-
.---4-s-- .-----y r--r-~~ ~ pay tnelr
honest dsbts.
Hence | would urge that in district
systsm the amount of the bonded debt
OF district be fixed by the state board;
that the rate OF interest should also BIZ
fixed by the state board and that such
interest should b9 about one-half OF |
per cent greater than the rate at which
the state could sell its own bonds at par
When an irrigation districs is formed
and it is ready to issue its bonds, the
state should sell its bonds, if necessary,
and with the proceeds of that sale offer
to bay st par bonds of the district. The
half per cent excess OF interest on the
district bond over that of the stats bond
would amply repay the etate for guaran-
teelng tho district bond and if the state
atood ready to take those bonds. capital
lcf q xEffN ala
pay premium for them, rather than to
take the state bonds at lower rate OF
interest.
A state that is not willing to do this
should cede back to the national gov
ernment the arid lands received from
the government, with 6 statement of its
lncapacity to manage such lands in
business way.
In order to make the California dis.
trict law applicable to the reclamation
OF public lands another change is essen
tisl.
The California law preHupposes that
there are people and voters living with |
in the limits of the proposed district;
voters are essential to the formation of q |
district. 1t might be that within the
limits OF given tract of absolutely arid |
government land sought to be reclaimed |
there would be no voters. The arid |
might be such that tnsrs
could bs no voters there in legitimate
way before the advent of water. Hence
The necessity of state board who should |
have the controlling power in such dis
'rict until sucn time az there were
enough people in the district to take
charge of it's affairs.
Again under the district law OF Cali
ornia the land within the district 10
supposed to belong to the people, and
therefore would be taxable. La the re-
'lamation of large sreas of public lands
mere would be at first no lands subject
o taxation, hence different financial
ban would be necessity. 1t is evil
lent that the state must bear the fnan-
aal burden of the district until such
iIne as enough of the land In the dis
riot is in the hands OF actual settlers to
make the district self-supporting, after
which the state could be reimbursed for
he moneys it hsd advanced.
From this review OF the question il
fill be sesn that radical changes are
onsidered eesential before the Califor-
ia district law could be perfected and
aade applicable to the reclamation of
overnmsnt lands, and yet with these
nanges L believe q very perfect system
ould be established.
For the purpose for which the Califor-
la law was enacted fewer change
Iould be necessary. l would urge but
~ OF af -tI,,1 4 l. 4 !