Lincoln County times. (Jerome, Idaho) 1911-1919, 1918-06-13
More About Irrigation Districts


&fanded as not being so that loan |
eom panies did not favor loaning |
uIoney on lands embraced in an irri- |
nntion district, to assure our readers |
Hal 1t was not misstatement and |
>hat we know the attitude of loan
(om panies In regard to irrigation dis
1r1ct loans, we give space here to
jnfter received by the representative
~ one of the largest loan companies
the northwest:
M June 8. 1918.
3erce & Thrall
80 erome. Idaho.
&ontlemen:--
III You asked us To inform you what
~ attitude OF the loan companies
= towards irrigation districts. You
- one is contempt plated in your sec
ten
2We write to advise you that the
noneral attitude of loan companice
wards irrigation districts is ad
gse. In fact, great many of the
kongest loaning organizations re
1Gne to loan in an irrigation district.
sI5 Recently our Mr.. l.. G. Miller was
'fn Chicago and met AN important
bard there controlling investments
- a corporation, and one of the
nom bers of this Board told Mr.. Mill
3 of the disastrous experience he
I'D had In holding some mortgages
~ an irrigation district in the State
Colorado.
SfHe had eventually acquired the
nd under foreclosure. paid up an
'iormous accumulation of District
essments, only 20 be informed that
~ HIS land was not released but
4ns still liable for the assessments
t collected from other. lands in the
strict. After telling this personal
.Derience, he stated to Mr.. Miller
40 as far as his vote would go in
s81s organization he would consider
- mortgage at any time where the
S}Ater right was represented by an ir-
t,gation district
.< or course, il a district Is not In
Hobt at all the cost OF assessment
~ould be based upon maintenance
and the cost of running the business
OF the District and to this there could
- no valid objection
But this same result can be obtain
ed BY water corporation to the same
advantage and without any of the
4 dangers or distress of the District
( and IL is cleaner and quicker way.
or operation because instead OF a
poosibility OF assessments and taxes
.nccum ulating from year to year. as
hnppens TO the expensive and cum
eborsome collection methods OF taxa
tim in a District. the, stock would
~ assessable and II tie assessment
4 = not paid. the proper legal remedy
- Immediately applied so the mat
= zfoF is kept clean and up-to-date. And
/. n Individual holder when he pays
~ assessment on his stock is
through. There is no chance of a
Hen on the land.
The worst thing OF the district, OF
course. Is the bonding matter. which
creates lien on the land. and that
lien remains in its entirety agains,
1Yery acre OF land in the District
Ind an investor. even though Dis
>y1et. Is out of debt. owing TO disas-
ff6us experiences like the one ! de-
R3bed OF the Colorado investment
s. S<&6y prefer not to take the chance Of
"a oonded indebtedness being after.
6bfds created.
They hold that perhaps the Dis
x ~ may create bonded indebted
Xors II none exists now and they are
2i4rful OF this.
77I4sNe have many investors that vii
<1Ehe mortgages In irrigation district
5{inen we do accept them, on som'
y 6tricts where conditions are nj
af@ @<ry favorable In others we do no
& IN at all.
X3S&Our recommendation Is that |
n are organizing District In you
unity for the pupose of collectin'
pessments and handling the busi
rs OF the bitches. that we wou''
Ne you very strongly not to do II
4 to follow the corporation plan Z
ich there is practically no objec
- and which is universally sue
Dsful.
Very truly yours,
)gned)
MILLER & VIELE.