The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1919-09-25
Cash BASIS PLAN IS
OUTLINED.
Water Users in E. l. D. to Form
Trust Company to Provide
Finances.

L
to put the Emmett Irrigation District
upon a strictly cash basis at the be-
ginning of the fiscal year, commenc-
ing October /, was presented, discuss
ed at some length, and met with favor.
The plan, which had been worked
out by the advisory board and friend
7y financial interests in Boise, con-
templates the organization Of trust
company with a capital of not less
than $4,000 to be composed Of land
owners in the district. The capital
of the company is to be subscribed by
land owners in the form of notes runn-
ing until August Is, 1920, bearing no
interest, and payable as necessity re-
quires. That is, if only one-fourth OF
the total amount represented by the
sS,otes given is required, only that much
will be collected. The object is to buy
mp all delinquent certificates 30 that
the entire amount Of the assessment
7evied by the district will be paid into
the treasury of the district during the
year, thus making the warrants of the
district worth their face value, and ac-
ceptable as cash in buying labor or
materials The company is to be man
aged by trustee, who will receive no
salary.
The financial affairs of the Emmett
Irrigation District has been source
of considerable worry to the directors.
1t has been found a difficult matter to
keep their warrants at par. In order
to place its finances in first class
shape and provide sufficient money TO
meet all obligations promptly, and
without discount, the directors of the
Water Users Association have devised
this plan which seems fair, sensible
and workable.
Under the law the land owners Of
the district are not required to pay
any part of their assessment until
December and upon paying one-half Of
such assessment at that time can not
be compelled to pay the remaining one
half until June following
In order to prosecute theSwork of
the district the directors will issue
warrants to cover the expense. 1t is
assumed that all of the assessments
will not be paid upon all of the lands
on which same has been levied but
that part of the lands will become
delinquent and that the same will be
sold because of such delinquency. For
that reason all the warrants would not
be retired unless some provision is
provided to purchase the delinquent
certificates. At the present time,
when the land certificates are sold, |
there being no purchaser, the district |
has had to purchase them, thus pfovid- |
ing no funds with which to retire the
warrants For that reason it has been
impossible to find any one who was
willing to accept the warrants of the
district at par.
In order to provide method where
by all warrants will be redeemed by
the district, the land owners have
asked to form a company with cap
ital of not less than $4,000 and to
provide a trustee, who will purchase
he certificates of sale. To provide the
capital stock of the company the farm
ers and others interested will be asked
to execute and deliver to the trustee
their several promissory notes for the
amounts which the farmers feel they
are able to invest in the company.
These notes will be due on August
Is, 1920, and will bear no interest un-
til that date. AS the notes become
due the trustee will collect them, or
such part of them, as may be neces-
sary, to purchase those certificates
which it has been ascertained will be
-or sale by the district. These certi-
,icates will be held and collected by
he trustee for the benefit of thel
of the company and
rom time to time the trustee will i
make distribution of the funds collect /
d as dividends to the stockholders. t
t is believed that the investors in /
he company will find it profitable, 7
IS the certificates bear IL per cent i
interest and the expense for conduct n
ng the company will not exceed 2 per v
ent. The securities purchased by the
rustee are first lien upon the lands.
o that they are good and ultimately
nil be paid, together with the inter- b
st. r
1t is simply asking the farmers to "
,an their credit to the district in or p
er that it may be placed upon its N
inancial feet, just as the government
id during the war in selling bonds. r
seems like good scheme, one which
practical and will enable the dis p
-ict to redeem it's credit and get a il
oilar's worth of work for dollar ex- il
ended. b.
Il