Arizona republican., 1922-03-19

ton district. public utility district.
municipal utility district electric
lighting district, water district or
thority to contract for the use of
water or power. way avail itself of
the privileges of the act. Any group
or association of such political sub
division may act in unison.
Such unit or units may apply to
the board for the construction of
works for the delivery of water or
power. or both.
The board examines plans submit
ted and if the project is physically
and financially feasible it enters into
contract with the applicant for the
construction OF such works.
The applicant, in this contract
agrees to buy the water or power
thus supplied at rate which will pro-
vide for interest, maintenance, oper-
alton and reserve for losses and re-
imburse the state in so years. Rates
must be made on a cost basis. The
board then issues and sells state
bonds to the extent of the funds re-
quired for the construction of such
project. The interest on the bonds is
limited to 6 per cent. With the funds
thus obtained. the board will con-
struct the desired project and deliver
water or power to the political sub
division. at rates as nearly at cost as
practicable, the board having only
such latitude in rate making as may
be necessary to keep it going con-
cern.
A political subdivision may call
upon the board to acquire or con-
struct a distributing system, upon
execution of a contract by which
such sub division agree to repay the
state in 25 years, or to take water
or power at rates which will write
off the Indebtedness, with all incl
dental charges. in % years. At the
end OF this time. the title to such
distributing system shall vest in the
political subdivision.
A limitation of $500, 900, 900 Is
placed upon the total of bonds to the
progressively issued and paid for
from water and power returns. In
terest and principal must be paid en-
tirely from returns.
1t must be borne in mind that this
measure does not impose on the peo-
pie taxation OF any kind, and that it
does not necessitate a bond issue in
the ordinary sense. These bonds must
be liquidated entirely by the known
reelaimable assets and they will pay
their own way. No burden of either
interest or principal will fall on the
taxpayers
The bill is specifically drawn to
avoid taxation, paying all costs from
revenues. There is no bond issue
which would be paid for out of pres
ent revenues. or by bonding of land
or by taxation of the people. What
is provided is progressive issuance
Of state bonds which must be liquid
ated by the water and power re-
claimed. The bonds are issued and
sold only to the extent OF the proven
assets obtainable as each project is
proposed. Principal. interest, opera
tion and maintenance must be paid
out OF these assets. A limitation of
$780, 000, 900 is placed upon the state
credit which would thus be pledged.
The people may vote extentions as
they desire.
To meet the insistent demand of
the new day in Arizona and Califor-
mia for cheap water and cheap power
we have the vast resources OF the
mountains of California and of the
Colorado river. who owns the water
and the power OF Arizona and Cali
fornia owns and controls the states.
The question is, the burning ques-
ton is, shall these vast resources,
worth billions of dollars. go to the
people or to private monopoly?
distinguished Canadian said to me
day before yesterday: I'm Canada we
are holding these things in the name
of the people. In the United States
and in California you seem to be Civ
ing them away to private monopoly
Woe be to youl Canada is getting
vast economic advantage over YOU
The keynote of the modern world
in all great matters must be publicity.
Three thousand years of secret diplo-
macy has wrecked this poor world.
The masses of mankind have not
been consulted in their own affairs.
Secret intrigue has been their undo
ing. In at least trying to secure pub
licity as against secret diplomacy at
Versailles. President Woodrow VIII
son was right. When he took the
world into his confidence for public
consideration of international affairs
in the disarmament conference. Pres
ident Warren Harding WIS right
When at the first opening of that
conference he instantly laid before
all mankind the inmost purposes of
the disarmament conference of ma
tions Secretary Hughes was right.