The Oroville weekly gazette. [volume] (Oroville, Wash.) 1905-19??, 1914-12-18
in order to compare this new way with
the old plan, we must understand both.
THE plan of the past:

| the old plan, we must understand both.
The plan of the past:
Sell the entire floatatiOn of six hum
| dred thousand dollars in bonds at a dis
| count of ten per cent This would start
an interest cost of thirty-six thousand
dollars per year. before a spadeful of dirt
was lifted or nail driven. With the dis
| count slice off, and a promOtional or un-
derwriter's fee of fifty thousand dollars
off. the balance of four hundred and
| ninety thousand dollars would go to the
treasurer of Okanogan county and be
credited to the irrigation district. A
blanket contract would then be given to
some head contractor from somewhere,
who would rake off fat slice of pront
and sub-let to a number of small con-
tractors. The head contractor would es-
| tablish "A commissary with goods shipped
| in from outside and the small contract
ors would take part of their pay in goods.
| and in turn would pass the goods on to the
| workmen as part of the workman's pay.
Local merchants would likely get but
little trade from the money spent In ditch
digging Then aside from some tran
sient help from outside the people under
and near the ditch would be hired to do
Dor market would allow. The difference
| between the final labor cost and the sub
contractors price would be the rake off
to the sub contractor. Figure the thing
thru and you will find about four rake
offs before the circle is completed. That
is: We and our lands are back of the
bonds, sold with a slice Of discount off,
thru a promoter who takes off a slice, who
head who whacks off another
slice and passes the sheared loaf on to
the sub-contractors who hew off their
profit and pass the remainder. whatever
it is, back to us for the actual work of
digging the ditch. Now isn't that pay
ing four sets of fellows a big price for
merely hiring us to dig our ditch? For
merely setting us to work. Why not go
to work without all this costly fubdub
and lace trimming? For remember the
fiddler has to be paid in the end. and-we
have to do the paying, interest and all
Yet if the old according to- Hoyle plan
will work. let 'er go. Wen back you and
help you; if 1t fails, then.
1.-The new way:
Hold the main issue of our bonds in
reserve-unissued. A bond authorized but
not issued does not cost the district a
cent in interest.
Issue bonds only as needs demand
and see to it that the proceeds Of the
bonds go into construction work-actual
ditch digging, or to pay for ditch that
has already been dug. Briefly, keep the
discount by floating our own bonds. Keep
the promoters profit by promoting our
own project. Keep the head d-contractors
and sub contractors rake offs by doing
our own work. We would do the work
| anyway.
III those bonds that we have been try
ing SO hard to work of. and cussing the
G ~ because they couldn't place them.
are good security for some investor in
London or New York who never saw us
or our lands, they (the bonds) ought to be
a good investment for US who own the
lands that back the bonds. The London
banker would be interested only from an
investment standpoint. We would have
the same rights interests and privileges
that the London banker would have in
the bonds and would have the ten-fold
added interest of the land owner, mer
chant, banker or various other valley
builders. Then:
Issue the bonds in denominations of
| 500 each, as popular subscription.
I'm work, in money or merchandise
every man and woman In the valley
should be able to take from one to a
number of those bonds.
For a days work, for q meal or many
meals furnished work crew, for mer-
chandise. for a load of hay or grain, let
a credit voucehr (non-interested bear
ing) be issued, and when holdings total
| ed 800 take up vouchers and give hold
er bond bearing customary interest.
We have faith that Mr.. Riste could and
would attend to the clerical part of all
| this with all accuracy and dispatch.
Make the bonds re ,eivable at par for
| water rights. maintenance fees and for
| lands on sale by the district
Trade bonds for the excess lands that
have been listed and at prices listed. The
parties having the excess lands could
| then turn over the bonds taken in ex-
| change for water right on lands retained;
that would square the land owner with
the district, and the bond would be taken
up and retired. stopping the interest and
| clearing that much district debt.
| THE lands held by the district could
be sold to any one for money for mer-
1 .
bonds (Which would thus be retired) or
for work from our neighbors on the hills
who might be glad to have a three or five
| acre fruit and vegetable tract.
''Some bonds and lands could be sold
for money. Then make every dollar do
| the work of five or ten dollars; that is
on work where necessary pay ten per
cent cash, perhaps ten per cent In goods
and the balance in a bond at par.
Merchants would furnish some mer-
chandise for bonds, some more goods
for ten to twenty per cent cash, balance
bonds IT, as suggested at the Tonasket
meeting, the Great Northern would do.
nate or take bonds for the freight on lum.
ber and other supplies, we believe sons
of the big lumber companies would take
bonds for lumber, or at least part cash
and part bonds.
| THE suggestion also was made to in
terest the Spokane and Seattle Chamber.
of Commerce. get their o. X. on the pro
ject, see the big business houses Of botl
cities, get them to subscribe for som,
bonds, and the writer believes that al
installment payment plan on the bond
could be worked out small paymer
on bonds which could be placed In escrow
j Continued on page y