Imperial Valley press., 1922-10-03
Continued from'yesterday

u As
carry out the purposes of tins aftr
| Gle.
rs Moneys herein provided for the
board shall be drawn from the
treasury by warrants Of the con-
troller on demands made by the
board and allowed and audited by
the state department OF finance.
The board, the controller, tne
treasurer, and the committee shall
keep full particular account and
record of all their proceedings nn-
der this article, and shall transmit
to the governor annually a report
thereof, not less than one thou !.
sand copies of which shall be print
cd, to be by the governor laid be.
fore the legislature biennially, and
all books and papers pertaining to
the matters provided for in tins
article, shall at all times be open
to the inspection Of any officer, or
citizen of the state. All accounts
Of receipts and Disbursements Shall
be audited annually by the state
department Of finance.
1t will be observed that Section 10
provides for a sufficient amount OF
funds out of the state treasury to put
the act into operation, but even these
funds are to be returned by the board.
An endeavor is made in this act to
make it self operative and without
expense to the taxpayers. If 1T should
be proven by experiment that the state
cannot operate this utility at loss
then the taxpayers may have to make
up the difference, but in,that. case only
will this act cost the taxpayers II cent
as such. 1t must be borne in mind,
however, that, very dollar invested in
a utility must be paid by the people.
The private companies have stated their
intention to spend y great many millions
of dollars in new development work
in California. 1t isn't any individual
that is putting up these millions OF
dollars, it is the multitude of stock
holders Of these corporations through
out the country that is putting up the
money and this investment on the part
of these many stockholders will be lost
unless the corporation can sell its ser.
vice at a rate that will make them n
profit. The corporations do not hest
tate to assure their prospective stock
holder that the investment he is max
ing is good one; that he will not lose
his money, but on the other hand Will
receive dividends, and yet argue thas
If the state goes into this business the
taxpayers will have to put up money
TO cover the losses; that the business
will not operate at ii profit, and that
the money invested Icy the state will
sbe lost-simply another one Of the
power company Inconsistencies. Inc
fact is, with the tremendous develop
iment that is now going on and that
will continue to go on in this state for
10 great many years, with anything like
sound business management the water
and power business win operate at a
good profit, charging reasonable rates.
Property that power companies bought
10 years ago are almost without -ex-
eeption, worth twice rs much today ana
will probably be worth n great deal
more in another 10 years; the same
thing would apply to the property OF
the state. The state will not operate
at a loss, and if it does not then the
taxpayers as such will not pay out one
penny under this act. ...
Section Eleven
Section IL safeguards the monies de
rived from the sale of bonds, in every
possible way. The sboard, the "con-
'troller,o the "treasurer and the
!" committee shall keep full and partic-
iular accounts and records of all their
proceedings. These are public records
and the money "shall be drawn from
the treasury by warrants of the con
troller on demands made by the board
and allowed and audited by the state
department of finance,' which makes
niisappropriatiou Of funds almost i'm
possible.
Section XII provides as follows:
Section IL.
The state and political subdivi'
sion shall have preferred right to
water and electric energy controll-
ed by the board rs against privately
owned public utilities selling water
or electric energy to the public and
no contract or act of the board Shall
interfere with such preferred right.
AS between those otherwise equally
entitled, the board shall supply
water or electric energy to political
subdivisions near the source Of sup
ply, to the extent of their reason
able needs, in preference to those
more remote. +"-
The board shall not supply water
to a privately owned public utility
for the production of electrict ener-
gy and shall not supply directly or
Indirectly to privately owned pub
lie utilities which sell electric encr-
gy or water to the public more than
20 per cent of the total amount of
electric energy or water under its
control, and contracts therefor shall
not extend over longer period
than five years, or be renewed be-
fore one year prior to their cxpira-
tion. Before making or renewing
such n contract, the board shall pub
lish a notice of it's intention so to
| do, at least six days each week for
period Of 80 days, in at least one
newspaper published and circulated
I, in this state, and designated by
order of the board for that pur-
posc; and at least 30 days prior
notice shpll be mailed to the legis
lative bodies of al counties and
incorporated municipalities and to
irrigation districts situate within
| the territory which, in the opinion
Of the board, may use such electric
| n. q