The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1923-04-03
CONTRACT WITH
INTERIOR MUST
MEET bic TEST
Bond Buyers for Drain
age Security on Boise
Project Shy at Situa-
ton.

eftc-DOlSc NdlCi OoSiS -No>oSidtiOii
with the Department of the Interior
and approved March | by Z. c. Fin.
ney. first assistant secretary of the in.
terror. which provide finances for the
drainage work on the Boise project
by issuing bonds OF the amount of de-
linquent drainage assessments, met a
snag last week when High & Fritch-
man. Boise bond dealers. informed l.
]. Magee, secretary of the association,
that unless one of the two boards OF
directors now presumed to be repre-
senting project settlers, can be re-
moved, the bonds cannot be sold.
Ira Highs letter on the subject fol-
lows:
I'VE have examined the contract be-
tween the Psye.te-Boise Water Users
Association and the Government rela-
tive to the bond issue for drainage on
the Boise project and find it satisfac-
tory except that it provides that it
must be executed by two different
boards of directors.
'If we are required to deal with two
boards of directors we cannot pur-
chase the bonds and we could not in
turn sell them if we bought them from
you under these circumstances. The
impossibility of dealing with two
boards OF directors in the issuance and
sale of the bonds ought to be apparent
to anyone.
'Thc bond market is good and il
you can straigten out the legal tangle
that exists on the Boise project we
will gladly take up the matter of pur-
chasing these bonds with you as soon
as this has been accomplished.
'If you can clarity the situation so
al InoA lnoqlIm spuoq 9nsIs uro no6
gality being called into question on
account of there being two different
boards of directors. we will buy the
bonds Immediately
Just what action can be taken to
meet this opposition from bond buyers
to the project as now outlined will
be the chief item of business to come
before the two boards of directors at
their regular meetings which will be
held in Caldwell April TO- At the
same time, the contract which was
worked out by Mr.. Magee upon his
recent visit in Washington. will be
submitted to each board. One of the
clauses of this contract is to the effect
that it must be approved by both
boards on the Boise project.
The contract which permits the sale
OF the bonds to the amount of the
drainage delinquencies, following the
usual Introductory clause defining the
contracting parties, reads:
Whereas, there are not available suf-
hcient funds for financing needful
drainage operations on the Boise irri-
CATION project; and
Whereas. the Payette- Boise Water
Users Association desires to advance
moneys to the United States for the
purpose of constructing drainage
works;
Now, Therefore, in consideration of
the premises it is agreed as follows:
The Association will provide and
advance to the Project Manager of the
said Project, funds to the extent of
Two Hundred and Fifty Thousand
Dollars ($2sO,0O0) to be utilized in
drainage work for the benefit of the
lands of said project in accordance
with plans heretofore formulated. Said
funds shall be provided and delivered
IN accordance with the needs of the
work, and shall at all times be sufii-
cient in amount to finance operations
tor not less than thirty days in ad-
vance, until the total of said sum shall
have been delivered.
The funds so advanced shall be re-
paid by the United States to the Asso-
cation without interest as rapidly as
moneys are collected by the United
States under the operation and main
tenance drainage public notice of Feb
ruary IS. 1921, limited, however, in
any fiscal year to the amount which
may be utilized under the law for the
drainage work on said project.
Before becoming effective. this con-
tract shall be approved by both OF the
Two contcnding boards now claiming
TO represent the Association"