The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-10-30
Costly Form

bic"
Costly Form
Evidently the redemption" which
these private enterprises had given
to the West had been a rather costly
form of salvation-for the redeemers.
at least.
No better proof of the Improbable
ness Of private enterprise in irrigation
work could be given than a mere re-
cital Of the stories Of some of those
enterprises through the two score
years prior to the adoption OF the
Newlands act in 1902.
1t is fact irrigation securities"
had fallen into a state truly abysmal
by 190O-that Wall Street had repu.
dated practically all proposed new
issues, that IT was almost impossible
to enlist capital, even western capital,
in irrigation projects. and of all the
various companies organized to sell
water. which Work claims had re
deemed the West" a very large pro-
portion had gone through re-organiza-
tion at enormous loss to prevent out
right bankruptcy. while many others
had fallen hopelessly by the wayside
See Ranches Destroyed
The result in many cases was that
ranchers who we've so unfortunate as
to own land under these privately
owned water systems saw the water
lords unable to extend or even keep
up their water supply and as one re-
sui were compelled TO stand by help
lessly and witness the destruction of
those homes so carefully and painfully
built up through the years.
From the Mexican line on the
South. to the Canadian border on the
North, one might trace a line of bur
led hopes Of those hardy pioneers who
had come west. invested their little
all In lands with the right to buy
water at a certain figure-the price
paid for the land including what was
known as "A water right"-only to
see the price of water rise year by
year as the need grew greater and
the greed OF the water lords grew
keener. until finally all the profits of
the farm were going into the treas
uries Of the water lords.
Demand Price Fixing
Than came the demand to have the
price of water fixed by law. Boards
of supervisors We're elected by water
users and prices for the priceless com
modify fixed on a basis to yield not
in excess of Z per cent on the IN
vestment
This was distinct step forward in
some cases. In others a rate yielding
Z per cent was absurdly high owing
to the high cost of the system.
Such was the case Of the Cuyamaca
water system in southern California.
system costing $2.90Q.0 900 in 1889,
ard the completion of which enabled
the original projectors to sell large
quantities of land with water rights"
which subsequently became worthless
when the utter inadequacy of the
system was tested in a series of dry
years. Land owners went broke. the
system went broke and was sold for
an infnitesimal fraction of its origi-
nal cost.
Met Same Fate
Such VS. the fate Of the larger
Sweetwf Or system in the same re
gion. w ere land was sold at $3.50 the
acre tn perpetual water right"
The system was compelled to undergo
freql ent reorganization to avoid bank
ruptcs to the continuous loss Of prop
erty owners dependent on the reser-
voir fol- their very lives.
So it was all over the West until the
term irrigation security became a
byword and jest and perpetual
water right in a privately owned
water company became a thing to
swear a. instead of swear by.
A few of these private enterprises
proved good things for rhe holders.
These were mostly those concerns
which had succeeded in getting mo-
nopolies of city water supplies where,
by the aid of complacent city gov
ernments, they could charge prices
so high for water as to insure a profit
on top of extravaganza and incompe-
tent management.
Such, indeed, was the plight of most
western cities until comparatively re-
cent times. Los Angeles cnancipated
herself forever in 1901 by, compile
ton Of the magnificent Owens River
$40. 900 900.
San Francisco. is just now emery
ing from half century Of serfdom
TO the Spring Valley water monopoly
by the construction of the monumen-
tai Hetch- Hetchy system, the greatest
municipal project of the kind ever
undertaken, while some few western
cities are still paying tribute to pri-
waite water monopolies
Perhaps Secretary Work did not
nave these city water monopohes in
mind when he spoke OF private enter
prises having redeemed the West"