El Paso herald. (El Paso, Tex.) 1901-1931, 1916-10-17
Utah Wan PreSides.

! lidl the tram Tor tnc elephant Butte
/ dam dedication viii leave Thursday
I morning at o'clock.
Utah Wan PreSides.
F. G. Peterson. of the Utah A-ricul-
! tural college presided at the Irrigation
! districts section. W. W. Burr. OF North
] Yakima. Washington. district counsel
l of the United States reclamation serv-
: ice. delivered an address on THE Irri-
: cation District Idea from the Federal
( Standpoint"
Mr. Burr presented a number of ar=u-
. ments Ia favor of the orSauizsti of
] irrigation districts instead of water
I users associations under government
7 projects IRRIGATION projects aye as
public an Institution as the roads or
! the schools. said M Burr "Irriga-
/ tion is the essence of all land value.
Z Irrigation districts are better for the
Z farmer than water users associations.
: because the government OF the irriga-
( ton district is similar TO that of the
/ municipal corporation The irri gatiou
I has gone through an extended period
! OF litigation. and we now know Just
{ where We stand-what we can do. and
I what we cannot ] believe the water
, users associations. although they are
/ based upon absolutely sound legal
/ foundations. are to have this same
; period OF expensive litigation through
which they must pass before they learn
3 just where they stand. Why not profit
by the litigation and the experience OF
3 the irrigation districts
Why some Projects Fail.
W o. Cotton. of Idaho Fails man
: ager OF the Idaho irrigation district
: delivered AN address of interest TO the
! irrigation congress delegates on The
| Operation Of Idaho Irrigation District
. Laws, and Why Some Irrigation Pro-
/ JectS Have Failed
a paper written by A. T.. Coweu. OF
! stockton. secretary OF the Irrigation
| districts association of California. who
! Is unable 10 attend the congress. was
Z read
Irrigation District Bonds.
I'm California" he said. "a great
Z deal Of attention has been given TO
/ this subject within the past few years,
/ and highly beneficial results have fol-
J lowed legislation TO prevent the under
taking of ill-adviscd projects and the
issuance OF bonds by irresponsible dis
! tricts Special interest is given the
problems of irrigation district bonds
/ by the recent enactment by congress
/ of AN act 10 promote the reclamation
OF arid lands a. r 1869. 10 make
| public land of the United States in an
o. the districts bonds II its project
I IS approved by the secretary of the
interior
1t is an indication OF the growing
Lief thar the irrigation development
ii the west IS 10 be in much greater
degree than heretofore under the dis
trict plan
Need Wise Financing.
Where irrigation districts have
been wisely organized and properly
managed. the bonds Of such districts
Usually have good standing within the
radius Of general knowledge Of their
soundneSs. but with the prospective
increased use of the district plan Will
come great increase in the output
CT irrigation district bonds. and when
attempts are made TO market such
bonds outside the territory in which
their merits are known. strong preJu-
dices against any kind Of irrigation
securities are encountered.
Prejudices against irrigation dis
trict bonds seem to be based. when
they have a rational basis. upon uu-
certainty as TO the validity OF the
bonds. uncertainty as TO the security
behind them or uncertainty @ s 10 the
efficiency Of the machinery provided
10 enforce their payment
TO remove uncertainty as TO any
bonds Is. OF course. impOssi bic. but il
ought TO be reduced TO the minimum
possible under the conditions thar must
be encountered
1t IS important TO remember that
ia seeking 10 remove such uncer-
tainties. we are working. not for the
bond buyers bur for the districts
Law should BE simple.
1t IS important 10 have single.
simple law governing both the organ
LaUon or districts and the issuance OF
bonds. SO that there may be the fewest
possible chances for technical errors
"A definite and comparatively short
time should be fixed by law within
which contests against the validity of
tie organization Of district or the
issuance OF bonds may be brought. and
unless contest is brought within the
time, the bond issue should thereafter
De lncon reSIable Tor any cause In the
case of q bond issue. of course. oppOr-
tunity should be given to object 10
an Illegal sale. but after the bonds
have been regularly sold and the dis
tTlct has received the money. there
should be no further question as 10
its obligation 10 repay IL when due.
such provisions would be much more
satisfactory <han the provisions for
confirmation proceedings which many
laws contain
Paying the EondS.
In general II must be expected that B.
me t-le lltt,resl ana pIlhclpal or 2on1s VIII b
De paid out OF the increased produc-
tiou resulting from the successful D.
operation of a district
"A study Of the conditions Of sue /
cess shows that. with proper iuvesti- I
cation. II is possible 10 determine in I
advance with almost absolute Ger ]
talnty whether the bonds viii be met /
by a proposed district The element /
concerning which there must be the .
greatest uncertainty i'm sparsely set I
tied territory rs that of the character +
and ability Of the people who are 10 /
TIL the soil
Guaranteeing the bonds.
IF il be agreed that. in order TO {
command general confidence in irriga-
ton district bonds. we must give as q
surance that the conditions of success B
have been OF viii be met. the question
arises rs TO how this can be done.
Obviously IL cannot be done by the T
general investor for himself. for he
V III often Dee far from the district and
viii be unfamiliar with the details OF (
district management Some believe
that il should be done by large bond I
houses. which. after satisfying them
selves that the bonds are good invest
rents. should offer them with their
TO their customers. Private
Industrial enterprises are often fl
uanced in this way. but irrigation dis
tricts differ from such enterprises in
being quasi municipal organizations.
which cannot Toe bound. IN most states.
as closely 10y limitations in contracts
as private corporations car Thus I'M
California law allowing am irrigation
district TO mortgage its irrigation sys-
TEN as additional security for it's bonds
was held 10 De- unconstitutional
State Supervision.
The only other method OF giving .
authoritative Information regarding
conditions in an irrigation district and
assurance that well-made plans viii be
carried out with a reasonable degree
Of economy and efficiency. Is 10 pro-
vide for a thorough INVESTIGATION Of
-a ch enterprise bE some state author !