Imperial Valley press., 1924-04-18

or another with the situation sur
, oundlng the marketing of each is
sue of Imperial Irrigation District
bonds.
Those of our people who have
been unsettled by recent criticism
or who are confused by the intrica-
cies of the brokerage business will
be helped by these exceedingly clear
statements.
On the other hand it is not
to be disputed that bonded in
debtedness always throws upon
the people a burden out of pro-
= portion to the sum made avail
able for public improvements
and when we examine the fig
ures submitted below showing
the sums which the people must
pay in principal, interest and
discount before an issue Of
bonds can be fully iquidated,
We may we'll ponder the ques-
ton whether we shall not do
better to pay as we go rather
than incur liabilities amounting
to nearly SO million dollars for
benefits Of only approximately
Is million dollars.
Also, we may hold in mind that
a very large part of the million dol
lars or SO shrinkage between the IN
dcbtedness voted and the sum rea-
lized may be attributed directly to
our "Dr. JekYll and Mr.. Hyde -
existence, one day swearing, as we
do, for purposes Of propaganda that
the valley is about to be destroyed
by flood, and the next day offering
our securities to the same public
whom we have thrown into panic
by these wild stories.
Others Guilty Also
One Of those who has recently
criticized the practice of the 1rri-
cation District in marketing its
bonds has furnished elaborate re-
ference giving volume and section
to prove all of this has been illegal.
So far as the. responsibility of the
Directors in this regard is concern
ed it is to be noted that every step
has been taken under. the instruc-
tions of the Irrigation District Bond
Commission. The Directors could
not do better; in fact, they. could
not do otherwise. There will be
this satisfaction, too, that if ImperS,
ial Irrigation District Directors
have been guilty Of illegal, practices
the same is true of practically every
irrigation district in California. This
investigation has not. been able TO
discover any irrigation. district
which has not at some time or 9TH
er been obliged to, sell its securities
below par and this is true notwith
standing the fact that some of the
irrigation district exist in old,
thoroughly settled and thoroughly
organized communities where there
are none of the situations that have
complicated the problem in Imper-
ial Valley.
There is no evidence that disposi-
tion of Imperial Irrigation District
securities at the prices netted has
not been made in the utmost good
faith. Action has been taken under
the pressure Of necessity and upon
the best information available.
There is no evidence that any Dl'
rector has profited through the sale
of bonds at discount, and it is
not so charged. If it is true as al
legged, that sale of Irrigation Dis
trict securities below par is illegal,
then the law that so determines
must also repeal the economic laws
of supply and demand and rcadJust
all those subtle influences which
enter into the human mind, engcn-
dering fear and uncertainty, and
through whim or caprice directing
preference among all the invest
ments available to some other Sc
curity than the particular one that
we have to offer and which makes
provision for our necessities.
Suits Would Be Unjust
Under such circumstances, to
bring suits, as suggested, against
Directors, past and present, and to
put those who have served us ac-
cordiug to their lights to the eX'
pensc and annoyance of defending
actions in court would be the
greatest injustice and ingratitrde
and, if successful, might have the
effect Of hereafter deterring every
person of financial responsibility
from accepting liability as an lrri-
CATION District Director.
That our county bonds and
school bonds sell to the public
at par, or at a premium, while
Irrigation District securities sell
at a discount is no doubt with
out logic in view Of the fact
that in this county the value
of all securities depends upon
the successful functioning OF
the irrigation system. How
ever, the feature. that brings
about this situation is the fact
well known and understood
among investors that indebted
ness of county and school dis
tricts is limited to small per-
ceutape of the assessed yalua-