The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1914-12-25
GOV. HA|NES STATES HIS
VIEWS ON JONES
IRRIGATION BILL

In replying to letter from Mr.. L.
w. Rice of Washington, Governor
Haines says of the Jones Bill and Irri-
CATION matters in Idaho:
The state of Idaho has 2.5OOOO
acres of land reclaimed by irrigation.
and with Senator Jones bill in opera.
ton we could build irrigation works
for the reclamation of 2,5OO,OOO acres
more. No new irrigation works ere
being built in the state of Idaho at the
present time for the reason that there
is no market for irrigation securities
and the principal reason that there is
no market for irrigation securities iS
because of lack of faith in the 6nan-
cial success of irrigation projects.
About ten years ago a great manv
western enterprises were undertaken
in the west without due investigation
and consideration, with the result that
a number of them were financial fail
ures. Heavy bond issues were placed
against these enterprises and these
bonds were purchased all over the
United States and many of them were
sold in foreign countries. The losses
that followed have caused the pur-
chasing public to become very skepti-
cal in reference to the financial end of
irrigation enterprises.
This might all be cured by the Jones
bill. If these bonds were made to run
for a long period and the interest on
them were guaranteed by the United
States government, they would be al
most as attractive as government
bonds and would sell at very low
rate of interest, possibly four per cent.
With a market for such securities we
could readily finance 100000 acres
in Idaho. We have the land and the
water. This would afford homes for
many thousands of worthy and indus
trious citizens of the United States
and add to the general greatness of
the country.
Not only would the Jones bill en-
able us to reclaim this vast area, but
it would enable us to reclaim it at
practically one-half cost that we have
paid for reclamation in the past.
AS before stated, there is no pres
ent market for irrigation securities,
but when there was such market ir-
rigation bonds sold at from 60c to 80
on the dollar, with liberal supply of
the capital stock of the company
thrown in for good measure.
For example, if it was desired to
raise 81 100000 to build a given pro-
ject, it would be necessary to issue
securities against it amounting to ST.
100000. These would then be dis
counted at 90 per cent to raise the re-
CURED 100000. Not only were the
bonds sold at a ruinous discount, but
the interest rate was higher and on
the basis of the discount it was an
enormous burden for the constructing
L., fl,n
interest and discount charges, I think
am entirely safe in saying that a
project could be built for one-hal! the
sum that it would cost under the sys-
tenn that we were pursuing, because
interest on government guaranteed
bonds at per cent would sell at par.
The government of the United
States could very properly and safely
guarantee the interest on these bonds
in view of the fact that before such
guarantee was given the feasibility
of the project was to be investigated
and approved by the United States
reclamation service. The United States
reclamation service has established a
splendid organization of competent
and experienced men and there should
be no element of doubt in reference TO
an irrigation enterprise approved by
the reclamation service. The feasibility
of project may safely be determined
with our present knowledge of irri-
CATION The water supply OF all inn
portant streams in the arid country
has been determined and the area OF
irrigable land has always been known.
The principal element of doubt about
the matter is the cost of construction
and with the experience of the past
ten years the cost may be quite &C
curately estimated, so that after the
reclamation service has passed upon
the feasibility of the project and APP
proved it. there would be little risk
upon the part of the government IN
guaranteeing the interest on the
bonds.
You have asked me for statistics as
to irrigation in Idaho and herewith
submit the following figures as to the
number of acres reclaimed under our
different methods of reclamation:
Arrps