The record-union., 1895-07-29

that no regulation of rent rate or annual
rental for water service for agricultural
purposes, which would produce return
of less than per cent. on the capital in
vested in irrigation systems, private
capital would find In this a guarantee
against confiscation. With such guar
antee the necessary capital for the devel-
opment of our irrigation systems would
be forthcoming at once. Subsidiary to
this it would be both wise and expedient
to exempt such capital from taxation.
These dual features of encouragement
will bring TO the rescue Of the State the
needed capital, and irrigation be rele-
gated to private enterprises to which cate
CORY it most naturally belongs.
Entertaining, as we do. the most pro-
found conviction that judicial determina-
ton will forever extinguish all attempts
to develop irrigation systems by the levy
of taxes through any device, whether by
direct taxation upon all property, or
special taxation upon certain particular
districts, we believe it to be part of wis
dom TO find at the earliest practicable
moment substitute for the policy which,
by reason of its unconstitutionallty. will
be no longer practicable. We therefore
submit to the thoughtful consideration OF
our contemporaries the suggestion of so
amending the organic law that capital in
vested in the beneficial instrumentalities
of retaining our arid regions from their
desert condition be afforded perfect con-
stitutional guarantee against conhscatory
regulation, and also to be exempt from
taxation.
So long as regulation of water rates are
in the uncontrolled will of water-takers
and rent-payers. SO long will the extra
hazard OF investment deter capital from
engaging in this great work. This ele-
mont must be eliminated. or the arid re-
gions of California will be relegated to
perpetual desert condition. On the other
hand, the measures we have herein out
lined will secure at once the construction
OF all needed systems of irrigation, and
will, without doubt, supply every want
intended to be supplied by the Wright
law, and at rates to the water-taker even
more economical than any public system
may hope to achieve.
IF onnatrnntQH with
private capital can be constructed for
60 per cent. of the cost of those already
constructed under the Wright Act. Irri-
CATION bonds have been sold at a heavy
discount. and the expenditure of money
proceeding from such sales has been
wasteful and extravagant. And yet
every dollar represented by the bonded
| indebtedness stands as a mortgage upon
the land within the district. The use OF
private capital would eliminate this
wastefuIness. and a reasonable regula-
| ton of water rates within certain sale
limits would prevent extravagant rates
| in the way of annual rental.
We would not be understood as sug-
costing that irrigation systems con-
structed by the use Of private capital
should enjoy perfect immunity from reg
ulation. So far from this being the case,
we are in favor of such regulation as
| will prevent the owner of water from
confiscating the lands to which the water
is TO be applied, by reason of holding its
fertility in his grasp. Our suggestion
ooss no further than to declare that no
regulation shall be confscatory or shall
deprive the private capital invested IN
such enterprise of just and reasonable
compensation in the way of an annual
return upon the investment.