Imperial Valley press., 1912-08-27

good A meeting VIII probably be
held in Sacramento early in January
to consider legislation that may be
desired for the welfare Of the districts,
and IL is expected that every district
in the state will be represented there.
The pending constitutional amend
ment is of a technical nature Sew
eral years ago the state constitution
was amended to provide for the loan
ing OF state, county and municipal
funds 10 banks on condition that at
least per cent interest is paid and
the banks furnish certain kinds of
bonds as security for the repayment
of the loans The bonds of irrigation
districts were not included in the list,
and this discrimination has worked
seriously against marketing these Sc
curities. for banks want bonds on
which they can borrow public funds
if they wish TO do so. Consequently
the state association asked the legis-
lature TO submit an amendment reen,
acting this provision OF the constitu-
ton, with irrigation district bonds in
cluded. This addition Us the only
change made.
In an interview with a Press re-
porter concerning the amendment, Mr..
CoweII said:
The irrigation districts now organ
lied include about a million acres. and
about half OF this area is comprised III
the Imperial district.
The smallest district in the state
is at San Ysidro. in San Diego county.
It comprises the Little Landers colony.
organized by William I. Smythe. It's
project for pumping wafer from the
bed OF the Tia Juana river has been
approved by the state officials having
supervision OF irrigation districts. and
it will soon vote $4,000 bonds to en-
large its water system. The people
OF the Palo Verde country also con
template organizing a district
Therefore We feel that Southern
California is vitality interested in the
success OF this amendment, and this
IS the view Of all those with whom
I have discussed it.
1T is especially important that re-
cent legislation regarding he issuance
Of irrigation district bonds should be
generally understood. When the
Wright law was passed, more than
score Of districts were organized.
many OF them in Southern California.
but there was no supervision Of them
and most OF them failed for lack Of
water supply or because Of bad man
agement or because Of The long litiga-
ton that ensued over The constitutions
alitv Of the law.
The law was finally upheld in the
supreme courts of California and the
United States, but only three districts
the Modesto and Turlock in Stanis-
laus county and the Alta ID Fresno
and Tulare cOunties-weTe successful
These. however. developed so rapidly
that others have been organized in
recent years. To avoid the mistakes
OF the old districts. the legislature
passed law providing for the exam
NATION OF new projects bv q state COM
mission composed Of the atr0rnev-gpn-
eral, the state engineer and the SUPER
ntendenr Of banks. thus assuring ex-
per- examination into the legal. engi-
neerlng and financial problems in
volved. With the approval of this
commission, The bonds are issued and
recorded with the state controller and
are certified BY him, and limit is
placed upon the amount that can be
issued.
Having provided for these safe
guards, the legislature made the bonds
legal investments for banks. trust com
panies, insurance companies and the
state school funds. and then by unanf-
nous vote OF both houses asked the
people 10 remove the only remaining
legal discrimination against the bonds
by adopting the constitutional amend
ment that will allow their use as Sc
curitT for public deposits. If the
amendment is. adopted no official will
be obliged TO accept any bonds. for
II IS expressly provided that any bonds
offered as security for public >deposits
w 4 IT or G