Lincoln County times. (Jerome, Idaho) 1911-1919, 1913-10-16
IRRIGATION SECURITIES.
Bondholders Becoming Deeply Interest
ed in their Idaho Holdings.

Idaho, and the uncertain conditions
Of some of the others, is going to
result in much benefit to the state
as well as the settlers on these pro-
jects.
The failure of some Of the COM
panies to provide an adequate sup
ply of water on the start so impov-
erlshed the settlers that many have
been unable to make their annual
payments. which has forced some Of
the companies to default ia the pay
ment Of the interest on their bonds.
The forced inability Of the settler to
meet his payments can no more be
called reputation than can the fail
ure Of the companies to meet their
interest obligations.
We do not believe there is a set
tier on the North Side tract that has
any desiIe to repudiate an honest
obligation to the company, but all
he asks is an extension Of time III
which to meet these obligations.
Representatives of bond holders
who have been investigating their
securities in Idaho, are practically
OF the same opinion, that something
must be done to relieve the settler
if the bondholder expects to realize
upon his securities.
Robt. A. Chaplin, of New York
who represents a number Of English
bondholders, appeared before the
land board last week and frankly
told them why many irrigation Sc
curities are now looked upon with
suspicion by investors both in Eng
land and America.
Having taken at their face value
representations that the Carey act
and the laws Of Idaho provided a
safe basis for the investment oi
money" said Mr.. Chaplin, ." sold in
England some bonds of irrigation
companies. When these companie,
failed to pay the interest on thes,
bonds, | came out here to find the
reason why. ! found the situation
entirely different from what | had
expected
i had supposed the position o.
the land board was that Of truste,
for both the settlers and the bond
holders, but | find that the officials
who made the contract are out o
oiliceand that the settlers are bring
ing political pressure to bear to hav,
the present officials interpret th'
contracts in their favor, especially
where the systems, although con
structed according to specifications
approved by the state engineer, hac
been found in operatinn defective II
capacity or durability, or both"
We might add in this connection
that the settlers on this tract, whit
not resorting to any political pres
sure, have importuned the lane
board at times to interpret the con
tract from legal instead of a com
pany standpoint, and in several in
stances the contentious of the set
tiers have been upheld by the lane
board, and where the courts hav
been resorted to, the decisions hav
clearly shown the justice of the set
tiers claims.
Further Mr.. Chapin said; Niue
emphasis was lad upon the sup
posed first mortgage lien upon Ian
and water that the laws gave as sc
cnrity for the money loaned, Will
as matter of fact the title to tn
land was still in the United States
and whether or not the lien ever bt
came of any value depended upo
the fulfillment of conditions by til
companies over which the bondho
ders had no control.
A bondholder is not apt to spec
ulate, he wants security for III
money he invests. When it is r'
paid is not so important, as the Gel
tainty that it will be repaid with IL
terest, and it is difficult to see how
under the present laws, the certain
ty of repayment required by the II
vestor is found"
We heartily agree with MIR. CHI