Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-30
R0JECTBONDS
AREBOUCHTB BY
EASTERN FIRMS
Big Hole and Toole County IT.
rigati6n Districts Receiv-
ing Aid.

have been forwarded greatly by events
of the last few weeks, according to
Henry Gerharz of the engineering firm
of Gerharz & Jaaueth, who returned
Friday from a trip to Washington,
d. G. and New York city. While he
was at. Washington the previous gov
eminent reserves on the Big Hole for
power and potash were removed and
the government officials convinced
that the area is more important for
irrigation than either of these pur-
poses. For the first time in 10 years,
brokers and financial houses OF the
east showed an interest in the pur-
chase of irrigation district bonds.
These two factors will have an
important bearing on the development
of irrigation districts in Mon
tana during the next five
or ten years, Mr.. Gerharz said. The
first Payment will make possible the
carrying out of the Crow Greek prof
ect and the second will be important
in the Toole County project, now pre-
pairing petitions for a bond issue. The
firm of Gerharz & Jaqueth is in charge
of the engineering work for both.
Now Up to President.
The department has not only ap-
proved the use of the Big Wall for ir-
purposes, but the necessary
releases of the reservation have been
prepared and approved by the depart
ment and are before the president for
merely a matter of rot
tine, Mr.. Gerharz said. Permission
for its use in irrigation viii then b.
given and active steps will be taken to
carry out the irrigation plan for the
unit of the project, which will
bring water to 5000 acres of bench
land in the vicinity of Tostin and
Other units to be added
will later bring the project to 800
300 acres. the largest project in the
state. The cost will be S6.500.0 600.
The dam on the Big Hole will impound
100. OOG-acre feet and may be built
up to impound 500. OOO-acre feet.
For the first time in Is years the
brokers' of the cas- are looking with
upon irrigation district bonds
said Mr.. Gerharz. 1.-THE sale of some
If the bonds On districts under the
Carey act brought losses which have
made brokers suspicious of all irri-
cation bonds. The danger now is
nat idSlHS ESStoi Gu tOhiiuTuCc l.
-hese bonds. some may be placed on
he market that cannot make good in
restments because the project back of
hem are not sound.
"The purpose of my visit on the
was not in the interest of any
irrigation bond issue but rather to
yarn the brokers that they must use
discretion in handling these irrigation
,onds. told them to investigate
ZACH project on which bonds are of
cred and be certain that they are
If this is done. there is a
on the eastern bond market
hat will care for several million dol
.rs of Montana irrigation district
'onds during the next 10 years. A
ingle unworthy district will work
,reat harm on that market.
Second Market Opened.
s'The improvement in the eastern
market on irrigation district bonds is
f Importance to Montana since our
My market has previously been or the
,est coast. and this is necessarily a
United market. For such large bond
ssues as that of the Crow Creek prof.
ct and the Toole County project, we
lust seek the eastern market.
Zone bond house told me that it had
taken over $1,000 in bonds
II a project near Billings and had of
cred it directly to the public, with the
esult that two-thirds, or 100000,
as subscribed during the first week.
This is significant in relation to
ne Toole County project since the
.illings project was under the act of
900 and not under the commission.
he Toole County project is also or
anized under the law of 1909. The
are being signed now for the
.nd issue for this project and it now
'oks promising.
1.-THE FRANKLIN project is also pre-
for a bond issue and since this
ill mean only relatively small
mount, there is expected to be but
tile difficulty in floating it,"
Mr.. Gerharz commented upon a gem
raj improvement in the eastern money
He said that Montana is
showing as quick recovery as
ny other agricultural state. He said
lat up to a short time ago. the state
d all states in the Ninth Federal
eserve district in meeting the obliga-
ons through the War Finance cor
,~ration. North Dakota has nosed the
ate out of the lead during the last
w weeks. but Montana is still a
oca Sarnn1