The Imperial press., 1905-08-19
DR. LOMBARD FAVORS BONDS
Clear Statement of His Position Re-
 garding Bond Issue in No. 5

1HIpoIldl ldSI " euIeSudI OH Ills way 10 RedIands.
 On being asked about the recent bond election held by Imperial Water Com pany Mo- ,, the doctor replied
 'The proposition to issue one hundred thousand dollars worth of bonds was defeated. A resolution was passed, however, requesting the Board of Di- rectors to attempt the construction of a complete system for the carriage of water to and from the lands by employ ing construction company and paying 1t for the work with the ''unissued wa ter stock recently acquired from the California Development Company.
 Since then 1 understand that the Board has levied an assessment of fifty cents share upon all the issued stock with provision that if bonds shall be voted the assessment will be called of, :. This is a polite way of saying to the stockholders-vote for bonds and save your bacon.
 As for bonds, personally, I favor them provided the work, for which the issue is intended to raise money, shall be placed in the hands of competent construction company, but to vote bonds and place the construction of such a complete system as we have in mind, in the hands of Board whose term of office will expire next January "a Board, the members of which may and may not all be re-elected-a Board three members of which represent the "North End" of the system, which has already received, 1 am informed, during the past year, eighty-seven per cent. of of the company by it's stockholders for the betterment of the system-to vote bonds 1 say and turn over the construc- tlOn work to the uncertainties necessar- ily,attendant upon a mutual company of water users, would, it strikes me, be very short sighted and unbusiness like when around us may be seen so many companies that have failed when attempting similar work.
 "A plan that seems to meet with favor is the following: No. to contract with reliable construction company to build complete system of supply and drainage; all gates, spillways, etc., to be of concrete and steel and all water ways and drains strictly first ass construction company to receive pay partly in cash derived from the sale of "unissued water stock" partly in Number Five's bonds, but chiefly in unissued water stock.
 "When the construction company had performed One-fourth of the work, or whatever amount agreed upon accord ing to contract, a part of the contract price to be due and payable in bonds and water stock, and so on to con- pletion of contract. Upon The final acceptance of the system by No. 5, which might be years hence, the un- issued water stock, all contracts for the sale of water stock and all money derived from the sale of water stock issued after the signing of contract with company except stated number of shares to be turned over to the construction company in final for the completed work
 "The issue of S100,000 worth of bonds is simply beginning which can be utilized in dealing with the construction to the advantage of No. 5, for with it's bonds given in part payment, at par, to the construction company and its water stock to pay and secure the contractors, it is fair to presume that an advertisement in the Engineer ing & Mining Journal would attract reliable men to investigate and when the character of the work now about to be undertaken by the Southern Pacific Railway company is brought to their notice and the mastery of the Colorado plainly attained, no hesitation will be encountered providing a suitable contract shall be entered into.
 'sThe work of construction will neces- sarily occupy long time and it may be that a company will need to be formed for the purpose among capital ;CtS in SOuthern California hut how