The herald., 1895-01-05
THE WRIGHT IRRIGATION ACT.
Amendments to the Law in
Contemplation.
A Decision ON the validity of the
Measure Pending.
an Open Letter From John Shirley Ward
TO Hon. q. q. Wright and tho
Lattsr's Reply.

Investors in irrigation securities are
Gnxiously awaiting the decision of the
supreme court on the Wright irrigation
act. Not only are investors in bonds in
terested in the decision. but irrigatora.
generally, and in truth all the people
living in those portions of California
where irrigation is necessity.
Should the constitutionality of the
law be established, irrigation districts
will be enabled to sell their bonds and
go ahead with the improvements con-
templated under the set. When the
soundness of the law was questioned,
irrigation district bonds became prac-
tically unmarketable and work on many
extensive irrigation enterprises had to
be abandoned, as it was impossible to
raise the money to carry them out.
1t is probable that the court will hand
down a decision the coming week, pos.
Bibly Monday. The consensus of opin-
ion in well informed circles seems to be
that the law will be pronounced valid.
II this surmise should prove true, the
act will probably be subjected TO vari-
GUS amendments at the coming session
of the Legislature.
Hon. John Shirley Ward OF this city
has devoted much time to q study of
the Wright act, and ss result of his
Investigations, he has suggested an
amendment which the author of the
law himself approves. The following
correspondence on the subject explains
itself.
MIR. WARDS LETTER.
Los ANGELES, Cal. Dec. 26, 1894.
HON. c. @. WRIGHT: DEAR SIR.-Your name
will be historically connected with the wisest
and most beneficial legislative act yet crystal
izedinto law, that has received the sanction of
our legislature, and of oar supreme court. The
statesmanship shows itself in the power of
adapting established Drinciples to the condi-
tions of the country. When 1 look at the vast
prejudice in favor of old forms and ugages, L
am surprised that you have been able to en-
graft on the landed estates of the country the
well recognized principles of municipal gov
ernment While 1 admire your skill in forming
the irrigation district act, it is not in deroga-
ton of that skill, and fsr-reaching common
sense, that wish to call your attention to an
amendment which would, if enacted, hep to
carry out your benefcent design in the whole
scheme.
1t is this: The whole object of a tax on the
landholder is to pay the annual interest ON the
bonds sold for furnishing water for the lands
coupons. If the district takes in all the cou-
pons as payment for taxes then the district
owes nothing on annual bond tax. II all the
coupons of the bonds are in the Office OF the tax
collector, then, the district has met all its oblf-
cations for that year on its bonds, and that is
all the act contemplates.
Under the present construction of the act, an
owner of 20-acre tract, knowing what his
taxes would be Oh the bonded debt of his dis
trict, could not buy an amount of bonds, hop
ing to make his coupons on those bonds pay his
annual tax for the same bonds. BY way OF
illustration, as L regard Illustration more con-
yincing than argument: Take man who has
a 20-acre tract in a district capitalized nj $40
per acre. If his district is bonded at $40 per
acre. he knows that at q rer cent he must pay
a tax of $500 per acre. which would be $S4
per annum; and why should he not have the
right to buy enough bonds, the interest of
which would pay the $S4? Who is the loser by
admitting these coupons to liquidate them
selves by paying the tax, levied simply to pay
these identical coupons? How can this system
injuriously affect any bondholder who does OF
use his coupons to pay taxes? Ii the bond
holder does not choose to use his coupons 10
pay taxes, then as matter of fact he gets
larger share of the gold coin paid in for taxes,
as the bondholder who has used his coupons
for payment Of taxes, is not competing with
him for the coin in the treasury. The real i'm
ancial point with the district is to get into its
possession the coupons then due on the bonds
for which the assessment has been levied, and
that should be the end of the matter.
All must concede that 1t would be best for the
owners of land in a district to own enough of
the bonds to make their interest meet their an
nual taxes; but what good would it do, if the
taxpayer cannot use his past due coupons TO
pay his taxes?
When sale for delinquent taxes comes on, the
collector is instructed to buy it in for the dis
trict, if no one proposes to pay the taxes as
sessed and take the property. Now, what is
the result? No one offers to pay the taxes and
take the property. The district buys it in.
Mind you, the district does not pay the bond
holder for his coupons, but simply gets a tax
collectors certificate for the property, to be
effective If. after one year 1t is not redeemed.
for the coupons matured against it was per-
mitted, in what way would 1t lnjuriously affect
either the district or the owner of the properly?
The right of redemption still exists, much
against the district, as the private purchaser.
II in no way affects the private owner Again,
the district, having driven off all those who
NAV be anxious to pay their taxes with cou-
poLs, which at that date, should be gold, ana
the very coupons for which said taxes were
levied, is compelled by law to buy in the prop
erty as a payment OF the said interest or cou-
pons Does this settle with the holder OF the
bonds? Does this satisfy the man r who has has
annual interest of the same? Where is the dis
triet benefited?
II there should be no purchaser for property
offered at delinquent sale, then the district is
authorized to take the property and credit the
collector with the emount of taxes collected;
but the district, ii the property has not bean re-
deemed within year, is to off5r 1t for sale at
the reasonable market yslue OF such proper
w" We ask what the hondholder is doing all
these IL or Ia months from the day of dein-
Queney of taxes, to the time when the title
would vest in the district? Is he not out at
least l. months interest on HIS bonds? Then,
If the district III to sell the property SO acquired
Mt the reasonable market va ne" of the same,
is it not possible that the very failure of the
owners ofsaid property to pay their taxes, and
and that its market value is very uncertain
quantity, will make the chances of the bond
holder for getting his interest exceedingly
small? If holders of coupons then due, are
authorized to pay any debt then due by the dis
trict which was to have been paid out of the
assessment, could pay their obligations to the
district by use of coupons, then the land
holder would have a much easier time meet
ing his taxes.
Ii the district should buy the property sold
for taxes, to whom is the same property as
sessed for the next cnrren; year. Certainly no
TO the district because the district has not
dollar to pa Y taxes with, and 1t was nev r the
intent of the aol to put II III the power OF = dis
tric to get possession OF large tracts of lands for
merely speculative purposes. If ne holder of
past coupons should be permitted to buy any
land offered with his coupons, then the district
has at least paid that much OF lis interest debt
and the owner OF the land sold has the same
right OF redemption from the individual pur-
chaser, that it has from the district ~ pur
chaser.
1t is not necessary to anplify this argument
as it is TOO p!niu for argument
70 effect what wish to add to the woris ia
line L of sec. "a of the wright ect Must b.
pnid in gold aud oliver conn., tue woods, cor in
past due coupons OF the bonds fnr which the
Assessment was nude" The addition ri these
words would rem dy the whole question, and
think they would permit the purchase OF lalds
sold fortexes to usa coup ms,
II The pre- .ent law wern 80 amended az to pc
init the y lymrnt OF taxes and the purchN ~
fea la ~ & a ftfsrn