Evening capital news. (Boise, Idaho) 1901-1927, 1916-11-19

system. Then, oftentimes, the settler
neglects or refuses to pay his assess
ment and his stock Is sold and is fin
ally accumulated by few progress
sive men; then the system is changed
to rental system with no means of
regulating the price of rentals.
Under the irrigation district law 1t
is comparatively easy for colony of
people whose lands are adjacent and
susceptible of one mode of irrigation to
band themselves together and organize
an irrigation district in which event
bonds can be issued and sold or ex-
changed for irrigation systems already
built or for construction work on an
irrigation system. This enables the
settlers to pillow, level, fence and sub
due his farm and begin deriving an
income before the first bonds mature,
which is In the eleventh year. I might
say here that there Is a movement on
foot now to secure legislation which
will very materially benefit the irriga-
ton districts. We are DESTROYS Of a
law which will enable bankers Of the
state to use irrigation district bonds
as security for state. county, city and
school district funds deposited in the
banks. Under the present law (Sec.
2017, Vol. /, Civil Code) such funds
placed in banks by the treasurer of the
state or municipality making the de-
posit must be secured by the bank by
the giving of a bond for the return of
the money or by the deposit with the
state or municipality of certain securi-
ties which are construed to include
bonds and obligations of the United
States, the District of Columbia, state
of Idaho, counties Of the state, cities,
villages, town and school districts:
warrants of the state and warrants or
interest bearing obligations of any
county or city of the state and bonds
of any association. corporation or COM
pany approved by the board of COVER
Tors of the New York exchange and
listed on the New York Stock Elk
change. You will note that irrigation
districts are not mentioned in the fore
going list. 1t has already seemed to
me very unfair in the state to refuse
legislation which would permit banks
supervised by the state to use irriga-
ton district securities as security on
receipt of deposits of the state or
municipal corporation.
(Any irrigation district organized in
the state of Idaho must meet with the
approval of board of county commits
sioners and the office of the state en-
gineer before any bond of the district
may be issued.) You are familiar with
the petition for the organization which
is passed on by the county commits
sioners, then the engineering depart
! ment makes an examination of the
project and reports to the county com
missioners who are powerless to do
anything until this report is received.
After the district Is organized a gen
oral plan Of its proposed operations
must be submitted to the state engi-
neer for his approval and that plan
must conform to the state engineer
idea of good engineering practice. So
that we have legislation which gives
the state, through one of it's depart
ments, power to veto the whole prop
osition. l submit that II the state en-
gineer's office does Its duty in the
steps preliminary to the adoption OF
a general plan of proposed operations
that an irrigation district bond should
be received by the state as security
for deposits of its money made by Its
treasurer.
One of the reasons why irrigation
district bonds do not have higher
standing is because the state will not
receive those bonds or other interest
bearing securities the same as 1t re-
ceives bonds and warrants Of cities
and school districts which depend upor
the irrigation district for their liveli.
hood.
Legislation as outlined would have
a tendency to make local market fol-
irrigation district bonds which Would
be good thing for the communities
where the districts are organized or
account Of the fact that money woule
be kept at home instead of being sem
away for interest. 1t would make more
competition in the purchase of irriga-
ton district bonds.
The legislation proposed would bs
perfectly sound because the state it.
self. through its engineering depart
ment, and the county where the dis.
trict is organized. through its board Of
county commissioners are required ir
the performance of official duties tc
carefully examine the matters relat
ing to the organization of the proposed
lo4Sti III anu IL IL 10 llOl IL bOuHu pTOJecl
to refuse favorable action. When the
state has gone that far 1t would seen
only fair that Its parental attitude
should be extended to help in preserv.
ing the life of the district by the en-.
actment into law of permission te
bankers to use the securities as Other
public and private corporate securities
as defined in the depository law.
PREVENTS MONOPOLY.
The irrigation district law 10 &c
planned that the intending settlers ir
the district are not asked to pay any
promoters or building companies pro.
fit. 1t is the intent of the law that tn,
settler secure the land at just what Il
has cost to construct and reclaim tn,
! project, this in the light of the state
ment by good authorities, that in som,
instances Carey act projects of 40 Il
so per cent of the ultimate cost O
Carey Act projects was not spent OF
| constructing and recla1minV the pro