Imperial Valley press., 1919-05-22
IRON OVER CONTENDING
QUESTIONS ON WATER
Continued from Page -


"Section 4. That upon receipt by
the secretary of the treasury of such
,District bonds he shall issue certifi-
Gates of Indebtedness of the United
State in an amount equal to the face
value of such district bonds and bear
ing interest at the same rate, in such
form as he may prescribe and IN de-
nominations of $50 or multiples there
of, principal and interest to be pay
Fable in gold coin of the United States,
I'principal and interest thereof to be-
come due not less than sixty days
after due, date of principal and
interest of corresponding District
bonds, respectively. Such certificates
of Indebtedness shall run for same
i'perods as corresponding District
bonds, not exceeding, however, fifty
years.
"Section 5. That from time to
time, as funds may be required Tor
construction purposes, such certlfl-,
Gates of Indebtedness shall be disposed
of by the secretary of the treasury
under such rules and regulations as
he may prescribe, giving all citizens
of the United States an equal op-
portunity to subscribe therefor, but
no commission shall be allowed, ana
the aggregate issue of such certlflca-
ton shall not exceed the amount of
District bonds deposited with the sec
retary of the treasury and shall in
no event exceed the sum of $50, ,0OO,-
600, and the proceeds from the sale
cf these certificates of indebtedness
shall be deposited in a special pro-
'iect fund to be known as the Imper-
ial Valley Project fund, to be used
in construction under the supervision
of the secretary of the interior of the
canal and the necessary works as
provided for in Paragraph 6.
"Sectcn 6. That any and all mon
eys that may at any time hereafter
| be in the treasury to the credit of
| the Imperial Valley Project fund are
hereby appropriated for carrying out
the objects and purposes of this act
and the provisions of the contracts
above referred to. The secretary of
the interior is hereby authorized and
directed to eXpend the moneys in such
project fund for the construction OF
the canal and the necessary works en-
tirely within the United States, con-
Meeting the present irrigation system
of the District with the Laguna Dam,
in accordance with the plans and
specifications of the joint survey made
by the United States and the District
under the contract entered into by
them February 16, 1918, said canal
20 be of sufficient size and capacity |
and of proper construction to supply
all lands within the present boundar- !
les of the District, as well as all other |
lands within the United States sus-
ceptible Of irrigation by gravity flow
from the said canal. |
"Secton Z. That should surplus
remain from the proceeds Of the sale
of the certificates of Indebtedness Is
sued in connection with said project
after the construction of the canal
and the wOrsk provided for in Sec
ton 6, such surplus shall be credited
as payment of interest on the bonds
held by the secretary of the treasury
on account Of such project until SAID
surplus is exhausted.
Section 8. Said Imperial Valley
Bond Guaranty fund, in addition to
serving as a guaranty fund as here
in provided, shall also be used by the
secretary of the treasury to pay OIL
the last of the bonds held by the gov
eminent hereunder when the out
standing bonds held by the govern
ment under this act have been re-
duced to am amount not greater than
the residue remaining in the same
guaranty fund.
"Section 9. Certificates of indebt-
edness herein authorized shall be ex-
empted frcm taxes or duties OF the
United States as well as from taxa
ton in any form by or under state,
municipal or local authority, and
sum not exceeding one-tenth of ! per
centum of the amount of the certlfl-
Gates of Indebtedness issued under
this act is hereby appropriated out
of the Imperial Valley Bond Guaranty
fund to pay the expenses of prepar-
ing, advertising and issuing the same,
provided that the Imperial Valley
Bond Guaranty fund shall be REIN.
bursed for such expenditure out OF
the proceeds of the sale Of such GER
tificates of Indebtedness.
"Section 10. That the unpatented
lands Of the United States within the
limits of any district whose bonds are
accepted by the secretary of the IN
terror under this act shall be subject
to the provisions of the act entitled
"An Act to Promote Reclamation OF
Arid Lands" approved August H.
1918.
"Section II. Nothing herein con-
tanned shall be held or construed as
enlarging, altering or diminishing any
existing water right of any district
that shall avail itself of the provls-
| ions of this act" =,
After receiving and considering the
measure, the board decided Tuesday
to appoint the committee, to go to
Washington, and instructed Mr.; Swing
what action to take, in the following
telegram: p, :,
"Phil ID. Swing, Washington: Holt
and others leave Immediately for
Washington. We advise against in
Producing the bill until you can con-
| fer with our committee and California
delegates and our friends in Congress:
Pending arrival of the committee, II