Arizona republican., 1909-03-16
BUILDING BEGINS
ON NEW HIGHLAND
Contractors Began Throwing Dirt Last
Saturday-Co Operative Money.

which has the contract from the Salt
River Valley Water Users association
for the construction of the new High
land ditch. began throwing dirt on Sat
urday. Rather the active operations
were begun by W. T. Smith. who has
sub-contract from the company for
doing the work. though the association
of course locks to the company. The
reason of this arrangement is that the
work is to be paid for by association
Ncertificates redeemable when the
Roosevelt dam is completed. The con-
tractor must have ready money to pay
his men. The Highland company. not
wishing to make anything on the con-
tract and being organized primarily
to get the ditch built, took the contract
itself, then raised a bonus of $4,000
in cash to add to the contract price
and sub-let to Mr.. Smith. The $4,000
is the inducement to him TO wait for
his money.
The work win be under the super
vision of a government engineer. and
at the present time Engineer s. X
Baker is in charge. The work, as stat
ed, is to be paid for by certificates
which have already been received from
Washington. where they were printed.
in blank, the certificates resembling
very much paper money bills. They
are issued in IS. $40. $50 and 500 de-
nominations. and there is also a guam
tity without denomination that may
be issued for fractional amounts.
AS considerable of this certificate
money will be floating around before
long. Il is well for the people to know
absolutely its value and purpose. 1t
is positively not redeemable by the
association until after the completion
of the dam. and the announcement of
the call for the first of the ten an
nual payments to be made to the gov
eminent for the construction of the
project The certificates will be re-
ceived at their face value for settle
ment Of that Indebtedness and for no
other They are transferable. but not
redeemable until that time. For in
stance: A owns a hundred acres in
the reservoir district. II he elects, he
can buy a certificate for any amount
at any price any one chooses to sell
il. He can hold this certificate until
the government demands its first pay
ment for dam construction and then
turn in his certificate as so much cash.
But the certificate is not now and
never will be good money to pay the
annual dues to the association. or to
pay for. water before the dam is fin
ished, or to pay any other incidental
expense. The government wants to
carry on the project work. but is short
of the funds desirable. II therefore
merely lends its credit to the certifi-
cate holder for the amount of his pa
per until such time as the holders
debt to the government natures. when
the government VIII accept its own
paper back.
When the certificates are taken back
the end orsements on the back VIII
show to what lands they are to be
applied and a perfect check will be
kept on everything. They will be is
sued in duplicate for work done and
by the engineer. who will
file the duplicate and the stub. and
when redeemed the original will be
with the duplicate and the
stub to see If there has been any alter
alton or counterfeiting. No certificates
will be issued before April 1. II will
be seen by this that no one will care
to take the certificates at face value
except land owners. who will even
tually have to pay the government
nor will they want to do it at
face value except as an accommoda- |
ton. II is for that reason the sub
contractor requires the bonus which |
the Highland people will pay. or
IL a certificate was disposed of |
at less than its face value. enough |
less to more than pay the interest on /
the money. the scalper might make |
by buying and holding /
them. However. IT is not expected 1
hat the certificates will fall into the |
hands of many who would care to so |
dispose of them, for the laborers will /
De paid In money and the contractors |
will hold the certificates until they are
worth their face.