Imperial Valley press., 1935-10-04
FEDERAL AID
ALLOWED FOR
REF|NANC|NG
Total Of $13,296,199 To
Be AllOcated For Re-
funding And Drainage
HEWES is PLEASED
District Head Still Hope
full OF Success For The
Power Project

WASHINGTON, Oct. 4. W.P--
The Reconstruction Finance
Corporation today approved .
loan of S11,346.199 for refinanc-
ing and one of 1850, 900 for re-
habilitation of the Imperial Ir-
rigation District at Ell Centre,
Calf.
"The district has secured approx
al Of an RFC loan of $11, 1,346, 600 to
be applied on the bond refunding
plan of the district" Evan T.
Hewes, district president stated this
morning. He with Directors Ross
and Morrow had just returned
from Washington, D. c., where
they had gone to attend confer
ences relating to this loan.
The loan will be used for re-
funding the district debt of ap-
proximately s15,OOO,OoO and was
secured at per cent interest in
place of the Sc per cent average
now paid. In addition to this the
district secured approval of q fur
ther loan of $1,950,00O to be used
for drainage purposes. This was
also at the per cent interest rate.
This means that the bondhold-
ers will be paid rs Eents on the
dollar for the paper they now
hold" Hewes said. Amortization Of
these new bonds will be in IS
years., he added.
In confirmation of this state
ment Hewes, received a telegram
this morning from Emil Schram,
chief of the drainage, levee and
irrigation division which said:
THE board of directors today ap-
proved a loan of $11,346, ,199.43 for
refinancing to the Imperial Irriga-
ton District, plus $1,950,000 for re-
Bonds at present outstanding
against the district amount to $14,-
250,000 with 100000 in warrants, q
total of S15,050,0OO which is to be
refunded through the loan approv-
ed today.
The district will now contact all
bondholders and organize a COM
mittee of security holders to Sc
cure their acceptance of the prop
osition offered by the government.
II bondholderS do not wish to ac-
cept this, the district Mas shown
that it had made the effort to Sc
cure the full amount of money
necessary for the bond payment by
a higher tax levy and the present
loan clincheS matters.
To Form Committee
1T will be optional on the part
OF the bondholders to accept the
government offer or hold their
bonds at their own risk" Hewes
stated. The committee will be Or
ganized Immediately and set "
work on its task.
Relative to the power loan oues-
ton Hewes said that he expects
favorable action on this soon, both
on the REA and the regular appli-
cation. This latter, he said, has
been api~soved by both the PWA
and WPA. There are no funds
available at this time to allocate
to the district power program and
no action on it has been taken by
the President and will not be taken
until he returns to Washington
from his trip to the Pacific coast.
1t is proposed, Hewes said, to
give various projects now approv-
ed throughout the country 80 days
IN which to show actual work has
started and if this is not the case
the allotments will be rescinded
and funds from such sources may
be available for the district pro-
gram. Otherwise the funds must
be appropriated at the next session
on congress.
Hewes stated further that the
district power project had been
approved by the NEG National
CounciD, as we'll as the
other federal agencies.