Imperial Valley press., 1936-06-14
Au>American Canal Project Raises
Varied Problems for District Board

problems confronting the board has
Eeen the determined effort on the
part of the State of Arizona TO
discard the Santa Fe Compact,
under the terms of which the wa
terS of the Colorado river have
been divided amCng the upper and
lower basin states. The board OF
directors have been alert to the
danger of involving the redivision
of the waters in litigation, which
might possibly end in the court
taking jurisdiction, for an indef-
mite time, over the judication CT
Colorado river waters. To protest
the Imperial Irrigation Districts
water supply, the board held nu-
merous conferences with represen-
tatives Of the other six states, in
trying to reach some satisfactory
agreement with Arizona. Being
unsuccessful in reaching salts
factory agreement by conferences,
owing to the unreasonableness of
ArizonaS attitude and her deter
mination to try and deprive I'M
perial Valley of its rightful pro-
portion of the Colorado River wa
terS, the board has been forced
to resort to the Supreme Court
IN resisting AriZona'S attempts to
involve the division of water in
the United States Supreme Court.
In cooperation with other agen-
cies of the State of California, and
represented by Phil D. Swing, spe-
cial deputy for Attorney General
U. S. Webb, this matter was sue
cessfully defended.
Rural Power Plan
The board of directors have
been aggressively pressing an ap-
plication with the R. E. A., for a
loan for rural extensions of power
lines throughout the valley, and
the board feels that the contract
that is being worked on will prove
satisfactory and acceptable to the
Rural Identification Administra-
ton, as we'll as to the people OF
Imperial Irrigation District This
is a supplementary application to
the main application with P. w. A.
for sufficient funds to build the
power plants on the All American
canal, as well as main transmission
lines, and now that congress has
appropriated additional money for
P.WA., we feel that it will only
be a short time until this lean
will be closed
Another very important activity
carried on by the board recently
hDntN of hn
reau of Reclamation to construct
the power plant bases on the All
American canal, while the con-
struction of the canal is taking
place. This will not only mean
a great savings in construction cost
but will likewise mean that this
cost will be without interest, and
will be repagable to the govern
ment over a forty year period.
Further Refinancing
The board of directors realized
the necessity of further refinanc-
ing CT the district, and as soon
as money was made available by
the r. Fl G. for this purpose, the
board carried on negotiations with
the chief of the irrigation divi-
sion of the r. F. c., as we'll as
representatives of bondholderS, in
filing an application for a lean
to refinance the present outstand-
ing Indebtedness, at a cheaper rate
of interest and with a reduction
in principal. This activity has
been blocked for the time being,
on account of the decision of the
United States Supreme Court de-
claring the Bankruptcy Act un-
constitutional. 1t would be neceS-
Sary tO file a petition under this
Bankruptcy Act, while carrying on
the r. F. c. program, in order to
protect the district against bond
holders that would not cooperate
in the effort to give the district
financial relief needed.
In connection with the R.F.C.
program, a loan of $1,950,000 for
drainage and rehabilitation pur-
poses was agreed to by the gov
ernment, but was contingent on
the ability Of the district to re-
finance their bonded indebtedness.
This likewise has been held up for
the time being.
At the time of writing this res
ume of the activities of the board
of directors during the past thirty
eight months, the great Diesel en-
gines in the power plant at Braw-
ley are humming their tune of
industry, while generating elec-
trical energy for the municipality,
as we'll as the business and resi-