The record-union., 1895-08-12
THE WAY OUT.

To this date not one of the press of the
State has raised single objection to the
plan of the RECoRD-UNIoN to overcome
the obstacle to irrigation of arid lands
raised by the decision of Judge Ross.
The advice of this journal was and is.
that inasmuoh as it is likely that the
opinion of Judge Ross will be main
tanned on appeal, the people OF the State
should secure the adoption of a constitu-
tional amendment providing that private
capital investing in irrigation enterprise
shall be guaranteed fair return in the
way of earnings, and that no legislative
assault upon that guarantee shall be
made
The RECORD UNION in presenting that
escape fromthe present dilemma said, and
it repeats 1t for the sake of emphasis, so
convincedds it that it is the best way out,
that the development of the system Of
irrigation under the Wright law'' be-
coming afailure, the only remaining re-
sort is to the employment of private
capital. How shall private capital be in
duoed to embark in this beneficial under
taking? Obviously by a reasonable
volume of money in this country unem-
ployed. Its investment awaits the op-
portunity of profitable employment.
To induce its investment in the develop
ment of the needed irrigation systems
of California requires:
First-A reasonable security that such
investment will be safe. That the rights
acquired will be secure. That they will
suffer no unreasonable interference in the
way of regulation or of future judicial
determination which will wrest them
from those who acquired them.
Second-The leading inducement to the
investment of capital is reasonable ex-
pectation Of profitable return. If private
capital is to take the place of the public
systems of arid reclamation, it must be
afforded perfect guarantee against con-
flscatory regulation. The people of Cali
capital for the construction of all desira-
BILE irrigation systems by an amendment
30 the State Constitution, which will de-
clare that no regulation affecting water
rates shall deprive the capital invested in
irrigation systems of reasonable inter-
est rate on their investment.
Let US suppose for moment that such
guarantee has been given, and that to
further encourage such investment it is
expressed that NO legislation shall be had
shat will affect the annual rent for the
water, so as to reduce the earnings of in
vested capital to lower level than 6 per
cent; it is easy to conceive of private en-
terprise engaging in the work immedi-
Rtely that is such an absolutely necessity,
and SO largely as to give us practical re-
suits more cheaply and far earlier than
would be possible under the Wright law.
larger than under any other sytem. For
while the invested capital should be ex-
smpted from taxation it will have other
interests here that will be taxable, and its
employment will induce such tillage with
all the benefits which flow after it. that
the State would be immensely the gamer
in material wealth, population. and all
production dependent upon marriage of
the soil to water.
But capital, ever eowardly, will not In
vest in our irrigation schemes SO long as
1t is possible for the water taker through
legislation to fix the rate he will pay. It
is necessary to eliminate this deterrent
element. and It can be done only through
constitutional amendment
Not that regulation is to be abandoned.
On the contrary, the State must prevent
the owner of the water from working
confscation of the lands TO which the
water ia conveyed. He must never be
permitted to hold the fertility of the soil
as the mere creature of his will. Nor
will capital at all object to such regula-
ton since sll it will demand viii be as
surance that after If is invested for such
purpose it shall not be deprived of the
fair reward of the investment.