The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1931-02-12
ALI Details of Plan Worked Out Ready for LandOwn-
ers' Acceptance; Meeting Saturday Afternoon
At Valley Club Grange Hall
CONTRACT EXTENDS TIME OF PAYMENT
OVER 3O-YEAR PERIOD AT LOW INTEREST
Relieves Land of Blanket Mortgage and Makes Pos
sible Clear Title at Any Time-Full Explanation
at Meeting This Saturday Afternoon

The proposed plan for the set
Element of the bonded debt of COL
umbia Irrigation District is now
ready for submission to the land
owners. This plan, if adopted bv
the land owners, will work essen
TALLY as follows:
The Bonds-All of the bonds, ex-
cept very few, have been depos-
tied by their owners in the hands
of their committee, with power to
act for them. A company will be
formed, known as the Columbia
Company, which will own all these
bonds, and this company will deal
with the land owners and with the
district.
The District-The irrigation dis
trict will be left entirely undis-
turbed to operate and maintain its
system as heretofore, under the
state laws, except for certain mod
ifications agreed to by contract
as to its levies for bond charges.
The district is now bound by law
to levy for principal and interest
to pay these bonds according to
the terms written in the bonds
themselves. This, it is generally
agreed, the lands will be financial
ly unable to meet, so that some
change in the terms of these bonds
is necessary. But it is impossible
for anybody to change the terms
of these bonds in any way with
out the consent of the bondholders.
1t is necessary that substantially
everybody consent in writing to
the required changes SO that no.
body can come in later and raise
any legal objection to the carrying
out of the agreed plan.
The Plan-Thru many meetings
in the past 1S months a plan has
been worked out by the represen-
tatives of the bond holders and
of the district, which seems to be
fair and workable to all who have
dealt with it. The Columbia Com
pany, owning the bonds, will de-
post all of them with a neutral
trust company to guarantee its
performance of its contracts. Each
land owner, now legally subject to
unlimited assessments to pay the
S550,000 bonded debt Of the dis
trict, will be Offered, by the COM
pany, a contract by which he may
pay a fixed amount of money,
spread over 80 years, in semi-an-
nual instalments without interest,
and definitely discharge his land
from any further obligation on ac-
count of these bonds. Or he may
at any time pay off his entire OBJ
legation and be subject to no fur
Their payments, no matter how
many other land owners may fail.
These contracts are not uniform
the lands of the valley have been
graded according to their ability to
pay, so that no tract will be bur-
dened with rates beyond its reach. /
These notes are shown in the .
schedule on the first page of the
contract, a sample of which is be-
ing mailed to each land owner. II !
will be noted that the payments
are made lighter in the first three
years, to give a little breathing
spell to catch up.
Besides the contracts between
the individual landowners and Col
umbia Company, there will be q
contract between the irrigation /
district and the company to pro-
vide for the districts part in car
rying out the deal This contract !
provides that when the amounts
paid by the landowners shall reach
the total of S7S5.0O0, the deal shall !
be closed and the trustee shall turn !
over to the District any bonds and
any uncompleted contracts then
held by it.
Now the district carries on its
rolls 10,50O acres of land as irrig-
able (some 100 acres. of the poor
est lands have been cut out in the
reclassification). If 5000 acres do