Imperial Valley press., 1935-12-02
HEWES URGES
ARBITRATION
OF DISPUTE
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cent plan as a majority of the
other irrigation districts had refin-
anced for between so and so cents.
by the payment of S750.000 on
back interest not long ago" the di-
rector said, the bonds were in
flated and the district now is at
tempting to refinance on an in
flated bond market. The refinanc-
ing should have been done seven
or eight months ago when the
bonds were low. The bondholders
think the rs cent plan is not the
final offer.
Urges Waiting
THE best thing to do since SO
much time has been lost, is to
wait and see if the district de-
faults this month. If the district
defaults the bondholders will
take rs and the district won't
have to spend any money to find
it out. We should sit tight and if
the district does not default the
December payment. the bond.
holders won't take rs cents any
way.
Il received letter from J. R.
Mason, one of the bondholders
who held out on the other deal,
in which he said he was going TO
advise the bondholders committee
to accept the rs cents plan.
1.-THE refinancing and the drain
age loan should not have been tied
up. I am convinced the drainage
money may be obtained through
some other government channel.
believe the district could go direct
to the government and get the
drainage money"
Best Deal Possible
Young said he hoped to get the
best deal possible for the people of
the district and then submit it to
a vote. He declared the saving to
be realized under the rs cent plan
or thereabouts was one which
could not be ignored.
Il look at it from the Satnd-
point of a representative of the
people and as a landowner. I fig
ure that the rs cents or Whereabouts
would save me ST an acre a year
on my land If it would save me
money, it would save other land
owners and taxpayers money. I
hope that Hewes will be able to get
a good deal. I want to pay as lit
tie as possible but the bondholders
have something TO say about that
Morrow spoke enthusiastically
concerning the savings to be made
and said it was better To take half
a loaf than none at all if the
whole loaf is not available
Even at 30 per cent" Morrow
continued" the people of the dis
trict will save approximately $20,-
100000.
I'VE have to reach some agree
ment or We do not get the s2,0o0,-
900 drainage loan. The RFC will
not make the drainage loan because
it would be made to protect private
individuals. IF We reach a refin-
ancing agreement the loan can be
made as it then would be made to
protect the people of the district"
Aten said, when I voted to send
I1GWCo 10 WdSltHStOIl L QlQ IOI
commit myself 10 vote for any
more than IS cents on the dollar.
do not favor paying 80 cents as 1
think it is beyond the ability of the
district to pay it.
Says Holders To Benefit
UNLESS we accept the govern
ment's refinancing plan we will not
get the S2,000,000 to be used for
drainage purposes.
'The bond holders viii benefit
from the rs cent plan as they will
get their money Immediately for
reinyestnent. There is danger. too.
in my opinion, that the district may
default in paying the bonds unless
the rs cent plan is accepted.
II favored Hewes going to Wash
ington 10 see if some plan could be
worked out with the bond holders
committee and the RFC. 1 hope TO
have the payments graduated so as
not TO exceed rs cents on the dol
lar The ones due next year are
worth more than the ones due in
30 years"