Imperial Valley press., 1922-09-30
The Water and POWer Act
An Analysts
BIZ CHARLES L. CHILDERS

outstanding bonds as the same fall
due, the committee, with the con
sent of the governor, in order to
avoid appropriation from the gen
cral fund and resulting taxation,
may issue and sell bonds to provide
funds required to make such pay
ments Of interest or principal.
Except as otherwise. provided in
this article, the committee shall issue
and sell bonds only upon the writ
ten requisition of the board stat
ing the amount of money required
and the purpose foI which it is to
be used and accompanied by II
duly authorized certificate of the
board describing the property or
rights to be acquired or the project
: proposed, and stating the estimated
cost thereof and showing the came
to have been investigated and ap-
proved and, in the case of pro-
ieet, that plans and estimates there
for, a copy of winch shall be an
nexed to such certificate, have been
prepared and adopted by the board
and further certifying that, in the
opinion of the board, the revenue
from the property or rights to be
acquired or from the proposed pro-
iect, together with available reve
nues from other projects, will be
sufficient to pay within 80 years.
in addition to other necessary ex-
penses, the principal and interest
of the bonds requested TO be issued.
The proceeds of the sale of such
bonds shall be placed in the trea
sury aud shall be used by the board
exclusively for the purposes for
which the same were issued.
Huge Power Company Holdings
In this section the board is given Tue
right to make rcquisition on the COM
mittee for the issuance of bonds for
the acquisition of property rights, con.
Gtruction, development, etc. The power
companies do not hesitate to ask the
people to invest their money in power
company bonds and stocks. In 1921
the Railroad Commission of this state
determined that the valuation of the
properties OF the Southern Sicrras
Power Company, and the Southern Cali
fornia Edison Company Was III excess
of Sll0,000,000. These properties are
handled, vast sums of money are spent,
new projects undertaken, with only the
indirect representation of any of their
of stock and bond holders.
1t is simply done by board of direct
ors. The power companies tell us that
II is exceedingly dangerous for state
board of five directors subject to re-
moVpl by the Legislature, subject 10
recall By the people and who cannot
issue Il dollars worth of bonds, but
must depend on o finance committee
of five who viii again scrutinizc every
act of the board, three members of
which are elected by the people, ana yet
thcy are quite certain that their board
of directors, subject to Inc control OF
the Railroad Commission, is entirely
safe and worthy of the confidence of
the people to such an extent that thcv
should invest their savings in power
company stocks and bonds. In au a1-
vcrtiseIhent by the National Electric
Light Association III the Literary Digest
of September 23rd we find these words !:
Not only haye one million six
hundred thousand. nicn and women
-on farms and in city homes-in-
vested thor.savings wisely and well
in this industry, but they have the
satisfying knowledge that they are
helping their neighbors to grow
and neighboring territory to de
velop.
Powers limited
II viii be borne in mind that the com.
mittee cannot issue or sell dollars
worth of bonds on its own initiative.
1t will also be borne in mind that thu
board cannot issue or sell any bonds
at all, that all the money is deposited
in the state treasury and is audited the
same us any other funds of the state.
In other words, after the finance com
mittee-thrce members of whom are
elected-and the board have acted as Il
check on each other, il still must pass
The scrutiny of the auditing department
and the treasurer and the public at all
times from the very inception. 1t l.
difficult to imagine under these con
ditions how the funds can be misused
There is no more likelihood of mistake
in Indictment on the part of the men