Arizona republican., 1902-03-30
DILLON DRAFT
Frowned Upon by Majority Of Water
Storage Commission.

The water storage commission met
yesterday to consider the draft of the
enabling act which had been received
the day before from Judge Dillon. The
draft was accompanied by letter
from Judge Dillon, in which he said
that the changes. though numerous,
would not materially affect the object
of the bill. but would in the event of
its passage by congress be better cal
culated to enlist the confidence of in
vestors in the bonds proposed to be
issued under it.
All the members of the commission
were present except Mr.. Peterson.
There were beside in attendance repre-
sentatives from the south side and
others from the north. who were OPP
posed to the bill in its original form.
1t may be said that they were still less
favora BILE to Judge Dillon's draft.
One of the changes suggested by
Judge Dillon was renewal every five
years of the contract with the canal
companies and water users, whereas
the original bill made the contracts
perpetual. The objection to this bill
was that it put too great authority into
the hands of the commission. Another
provision of the draft authorized part
of the money to be raised to be ex-
pended in the purchase or construction
of canals. But the following provision
was the one which excited the greatest
antag onism:
If bonds of said county of Maricopa
are issued under this Act. this Act shall
be irrepealable while any of said bonds
are outstanding; and said bonds shall,
ipso facto, constitute a first mortgage
on the whole of the works mentioned
in the first section of this Act belong
ing to the county of Maricopa, and up
on all appurtenances, fixtures and prop
erty of every kind and description con-
nected Herewith, whether now owned
or hereafter to be acquired, and such
mortgage shall continue in force until
said bonds of the county of Maricopa
and the interest thereon are fully paid
and satisfied. Such mortgage shall
not affect or impair the absolute and
general obligation of the county of
Maricopa to pay the said bonds and
interest. So long as there is no default
| in the payment of the principal and in
| tereSt of said bonds according to their
terms, the county of Maricopa shall be
entitled to the revenues of said works
| mentioned in Section l hereof, under
and in accordance with the provisions
of this Act, but upon such default in
| the payment of interest or principal
| continuing for more than six months
after the demand in writing for the
payment thereof by bondholders hold
! ing 1t least twenty per cent of the
| outstanding bonds of the county, the
revenues of said works are hereby
! pledged as further security for the pay
ment of said outstanding bonds and
| the provisions of this section as to
mortgage and lien and revenues may
be enforced by appropriate proceedings
! in any court of competent jurisdiction
! at the instance of bondholders. or of
any trustee who may be appointed for
| that purpose by the holders of a ma
| jority in amount of such bonds, which
appointment may be made by such
/ bondholders under their hands ana
seals. or at meeting of bondholders
! called for that purpose in the city of
| New York. at a time and place to be
| fixed by the bondholders of the county
| holding bonds to the amount of az
| least ten per cent of the bonds of the
| county at the time outstanding.
If said mortgage shall be foreclosed
/
is a lien may be sold under and pur-
suant to decree of foreclosure, for the
equal benefit of all the outstanding
bonds, and the purchasers at such sale
are hereby authorized, upon confirma-
ton of such sale and receiving deed
for said property under said foreclos-
ure. to organize as a corporation and
own, possess, enjoy, maintain and oper-
a ia no nrl- oil
and distribute said water and power
and otherwise utilize the said Works,
upon such reasona BILE rates and terms
as the said corporation thus organized
may prescribe. In any action for the
foreclosure of said mortgage. if default
has been made as aforesaid in the pay
ment of principal or interest, the hold
ers of the bonds shall be entitled as OF
right to a receiver of the revenues
rents, income and profits of the prop
erty subject to such mortgage, and
upon the appointment of such receiver
the salaries and compensa ton herein
provided for the Board of Water Stor.
age Commissioners shall cease and de.
ternine.
The bill in the form proposed by
Judge Dillon had been sent to Wash
ington and had been introduced into
both houses of congress by Senator
Thomas Bard of California and Dele
gate Smith. A motion was made t.
telegraph both of these gentlemen no
TO press action on the bill until thu
commission could be heard from. Mr.
Fulwiler opposed the motion on thu
ground that the commission had no
time to consider the bill. He suggested
that the sending of the telegram be de
ferred until after another meeting O
the commission. He was not prepared
to say that the changes made by Judg'
Dillon were not wise ones and certainl,
they were not unreasonable. He be
lieved that the default period should b,
longer than six months, but that coulc
be easily arranged.
The motion WAS supported by Messrs
Heard. Goldman and Priest and tn
telegram was sent.
-O-
I'M IJIIT.'c HcE,Jp CIIIDC