Imperial Valley press., 1932-09-03


a letter written by w. D.. Wagner,
executive vice president of the Irri-
cation Districts Association of
California, to the president of the
CORPORATION on behalf of all irri-
CATION districts in the state aroused
interest among residents of this
community.
Wagner's letter deals with all
irrigation districts in California
and not with the individual area.
His remarks, however, are declared
to apply to all or to any one of
the districts.
The letter follows:
August 81, 1882.
Mr.. c. A. Miller, President
Board of Directors
Reconstruction Finance Corporation
Washington, d. C.
Dear sir.
A number of the irrigation dis
tricts of California have made ap-
plication for loans through the San
Francisco loan agency of the Re-
but so far nothing has been heard
from them except mere acknowl-
edgement of receipt of the appli-
cation. We understand that these
applications for loans are now be-
ing given consideration by your
corporation and therefore desire to
submit to you our idea of the vast
benefit that would accrue if these
loans were made.
These districts are subdivisions
of the state, or state agencies"
organized under the laws of the
state, There are 81 of these dis
trictS comprising about four mil
lion acres of agricultural irrigated
lands. They have created values
to the extent of about one billion
dollars. Approximately 60 per cent
of all agricultural products raised
in this state are raised within these
districts. The actual farm popula-
ton living within the districts is
about 100000, while the population
in the cities and towns within, or
adjacent to and dependent upon
the prosperity of these districts is
many times greater.
In ordinary times and under
ordinary conditions, these irriga-
ton districts were and would be
prosperous and economically sound,
and perfectly able to meet their
obligations as they become due.
However, under the present eco
nomic conditions and the low price
for which the farmer is compelled
to sell his farm products he is un-
able to pay the tolls and assess
ments necessary for operation and
maintenance in addition to that
required to meet the large interest
charges on the bonded indebtedness
as we'll as the principal payment
on the bonds now falling due.
Irrigation Essential
In California, irrigation is essen
tial to the raising of agricultural
products, and an irrigation district
is organized for the purpose of
furnishing water to the lands with
in the boundaries of the district.
1t is not organized for profit. It's
works consists of dams, reservoirs,
diversion canals, irrigation canals.
pumping plants, etc, and in sew
eral instances hydro-electric power
plants, constructed and operated in
cidental to furnishing water for ir-
rigation.
To build these works money is
raised by means of a bond issue
placed upon all the lands within
the district, and although statistics
will show that from 10 to 80 per
cent of all the increased values Gre
ated by these works go to outside
industries such as railroads and
other transportation companies,
electric, telephone and other pub
lie utilities, merchants and banks
in surrounding cities and towns,
manufacturers of farm and dairy
implements, furniture and other
household goods, yet the entire cost
is placed upon the farmers or land
owners within the district.
These bonds are all serial bonds
and in nearly every instance bear
six per cent interest, payable semi
annually. Large amounts Of the
principal of the bonds are now fall
ing due, with the result that owing
to the present economic condition,
and as stated above, the inability
of the farmer to sell his products,
in some instances even for enough
to pay the cost of production, he is
unable to pay the necessary tolls
and assessments to the district. The
district in turn, is therefore unable
to meet the interest and or prin-
cipal payments on its bonds, thus
forcing the district into default,
throwing it into a condition of &C.
onomic chaos, and causing many of
the farmers to lose their farms and
homes. The final result is to cause
large numbes of the sons and daugh-
ters of farmers, and many of the
farmers themselves to leave their
homes for the cities to seek other
employment, thus adding to the
unemployed.
These irrigation district bonds are
not all held by financial institu-
tions, but are very widely distribut-
ed throughout the United States.
Perhaps 30 per cent of them are
held in amounts of from one thou
sand to five thousand dollars. Many
of these bonds are now in default,
and more are going into default.
The holders of small amounts of
bonds can receive neither their in
terest or principal and their buy
ing power is correspondingly de-
creased. OF course, under the pres
ent conditions it would be impossi-