Imperial Valley press., 1922-07-12
THREE BANKS
ASK ISSUE
Will Underwrite Total of
Cash for Consolidation
OF District
SAVING IN INTEREST
Directors Working Out Plan
For Submission to People
OF Valley

NJ
Time for opening bids for $7,5OO,O0O
bonds of the Imperial Irrigation Dis
trict arrived and passed today without
a. bid in sight for the issue upon the
terms advertised. However, the situa-
ton developed that which may be OF
far greater importance to the valley
than the sale of seven millions or any
other particular sum of securities.
c. F. Seidel, representing the FIRST
Securities Co. of Los Angeles and II. y.
Parks, representing the Anglo London y
Paris Co. of San Francisco, were pres
ent and laid before the board OF direc-
tors plan to stabilize the market for
Imperial Irrigation District securities
in general and in particular to meet the
needs of the district in the present
emergency as 1apidly as they develop.
Syndicate Will Take Issue
Briefly, the First Securities Co. Of
Los Angeles which is an institution
owned by the First National Bank OF
Los Angeles and the Los Angeles Trust
& Savings Bank of Los Angeles, the
Anglo. London & Paris Co. of San
Francisco which is similar institution
owned by the Anglo London & Paris
National Bank of San Francisco, and
the Bank of Italy have organized
themselves into a purchasing group to
absorb the entire $7,500,000 of district
bonds.
The selling machinery will include all
of the bond houses who may desire to
come in on the deal and the purpose
will be to market the bonds over such
period as may be necessary to main
tain the market at the right figure and
to offer the bonds only as they can be
readily absorbed.
1t is proposed that the irrigation dis.
trict shall deal with the group of banks
mentioned and these banks will guar
antee to see the deal through and
furnish the district with definite as
surances upon which it may safely pro-
ceed at this time.
Under this arrangement the syndi-
cate would guarantee the bond price
and receipt of revenue by the district
from the sales. The selling period in
which the district would realize tho
bond issue total proceeds is estimated
at six months.
All Cards on Table
At the meeting this morning every.
one was conscious of the necessity or
keeping faith with the people OF the
county who will have the debt to pay
eventually All the cards will be on
the table and no attempt made to do
anything in secret.
The proposition itself bears the ear
marks of sincerity for the reason that
if anyone were trying to make clean
up in Imperial district securities the
conventional method would be to
slaughter the price and flood the
market and then to take profit as
the panic wore off and conditions be-
came settled.
The plan proposed will save the dis
trict thousands of dollars in interest,
will develop a better market for the
bonds and a higher net price to the
district for its bonds and create con-
dition of confidence in the whole I'M
perial valley situation.
Will Educate Investing Public
Mr.. Seidel stated to the Press that it
would be the purpose of the buying
syndicate to conduct a campaign OF ed
ucation and undertake to broadcast cor
rect information as to what lmperiai
valley really is, and also to make 1t
known generally that u plan has been
successfully demonstrated which does
away with the flood menace which
either consciously or unconsciously has
had depressing effect upon the price
of all our securities.
"When we get through with our
campaign,' said Mr.. Seidel, the Pes
cadero cut will be less of mystery
and more people will understand just
how it acts as a practical solution or
your problem.
Directors Act at Once
Directors of the irrigation district
will at once take preliminary steps for
a conference with the financial inter-
ests represented here today with view
of working out the practical details OF
the proposition. 1t is hoped to have
this definite.
The proposition will then be brought
back to the valley and the mutual
water companies and others interested
will be taken into confidence. 1t Is
hoped in this way to arrive at somo.
thing which will have the endorsements
of everyone and so enlist the homo
front rs well as the field operations in
a campaign to pull all together for
sane, business, practical handling OF
the district y financial operations.