The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1913-10-14
INVESTORS LACK
FAITH IN IDAHO
Representative Of English Bond
Holders Gives His Side
TOOK REPRESENTATION OF PRO.
MOTERS AT THEIR FACE VALUE.
Thinks 1t the Duty Of State OFF,
cials to Insure All a Square
Deal.

Deal.
Robert A. Chaplin of New York. who
has been in Idaho for several days
looking after the interests of inves-
tors in England whm he induced to
invest in irrigation securities, has evil
IDENTIFY given the matter deep thought
and in an interview given the Safes
man presents the situation from the
viewpoint of the investor in way to
arouse deep interest among all re-
sponsible for the operation of irriga-
tion projects and the sale of irrigation
lbonds.
Mr.. Chaplin appeared before the
iAtate land board in the past week after
1making a careful, personal inspection
Tot conditions on the King Hill and
Medbury projects. He spoke with
frankness to the members of the board
telling them why many irrigation Sc
curities are now looked upon with
suspicion by the investing public both
in England and America
In his interview Mr. Chaplin says:
! Having taken at their face value
Representations that the Carey act
and the laws of Idaho provided safe
basis for the investment Of money,
sold in England some bonds of irri-
cation companies. When these COM
panies failed to pay the interest on
these bonds, / came out here to find
out why, in order to be able to ad-
wise the bondholders what they should
do
u Il found the situation entirely diff
4 ferent from what ! had expected.
THE security of the bonds is based
upon a contract between the company
and the state hand board, which con-
tract Is based upon contract between
the United States and the state of
Idaho.
4 "The state land board is composed
of officials, whose other duties take
so much of their time, that it Is i'm
possible for them to give the atten-
tion to Affairs on the various projects
necessary to really know what should
be done
j II had supposed the position of the
land board was that of trustees for
both the settlers and the bondholders,
but find that the officials who made
the contract, are out of office, and that
the settlers are bringing political pres
sure to bear to have the present Off
; cials interpret the contracts in their
favor, especially where the systems,
: although constructed according to
I specifications approved by the state
engineer, had been found in operation
defective in capacity or durability, or
: both
"The settlers also while refusing to
make payments called for by their
! agreement. we're demanding improve
ments involving large expenditures to
! be paid for by someone besides them
selves, although they get all the In
creased value that wouldk. accrue to
1.-THE land, and the systeuf6 IRE In the
meantime being operated by the COM
panies at afcost largely in excess Of
the amount they can collect from the
I, settlers for maintenance.
Much emphasis. was laid upon the
lsupposed first mortgage lien upon
e land and water that the laws gave aa
g security for the money loaned, while
q as matter Of fact the title to the
q land was still in the United States
II and whether or not thu lien ever be-
g came Of any value dep1nded upon the
l. fulfillment OF conditions by. the COM
e panies over which the bondholders
had no controlS~ -
I'm short Ii, b6ndbolder had his
money, not In 4n investment butsin d
q speculation, where all the profit Men1
to someonaselae
!. In the d44ps am most hmiiia,
with the original promoters md hi
eompany hove .afeappeared from the
scene. The n2rtiae II Interest nov
are the eettlere ma the band dhn1a14s
!. "A bondh0lder 8 n60t apt to apD<ll.
- late. heHAntt 94ty for fhe na
= he inyDffa, 4aA ke keolns Nnaf ID 4
Il the FApAymentof hia loAn- sRhes 4