Imperial Valley press., 1937-06-07

Il
trio corporation except an outright
sale of their system in the Imperial
and Coachella valleys at a reason
able price.
Complete text of the resolution.
passed unanimously by a roll call
vote of the 27 directors present. is
as follows:
WHEREAS: The Imperial Coun-
ty Farm Bureau. at its annual
meeting of December Z, 1895, re-
solved that generation and dis
tribution Of electric energy is de-
sired To be preserved TO and for
the benefits of the farmers and
landowners of the Imperial VAL
ley through the agency of the
Imperial Irrigation District and
WHEREAS: We have no reason
TO recede from this position at
this time, when our objective is
so nearly attained.
WE THEREFORE rcaffirm our
former position and hereby ap-
prove the program Of the Imper-
isI Irrigation District of genera
tion and distribution of the power
resources of the All American
canal and that we are against
any program of the Nevada Cali
fornia Electric corporation, ex-
cept an outright sale Of their sys-
tem in the Imperial and Coaehel-
Ia valleys at a reasonable price
The passage of the resolution
came as the climax to a long dis
cussion in which Albert Cage, vice.
president of the Nevada California
Electric corporation outlined the
proposal of his company and Evan
T. Hewes, chairman of the Irriga-
tion District board Of directors. at
tackled the legality of the offer and
the benefits alleged by Cage. adyo-
eating passage of the PWA and
REA bond election on June Is.
A. B. West, president of the cor
poration. who had asked if he
might present his company's pro-
posal to the farm bureau. was un-
able TO be present.
Summarizes Offer
Cage summarized the offer made
by the power company to advance
So 100000 to be used for power plant
construction on the All American
canal. sl.2420O0 of which is to be a
direct grant and Sl,5l8,000 a loan.
This offer is a supplemental one to
that made previously according to
which the district, the company con-
tends, will receive $35.000,000 over
a period of 40 years for canal power
generated by the district in public
plants and sold to the Nevada-Cali-
fornia corporation. The loan would
be repaid by deductions from the
power purchases by the corporation
from the district.
The company further agrees TO
purchase the Brawley diesel plant
and distribution system. paying the
district the amount invested and
to spend 100000 in a IL months
period for construction of addition
al rural lines
Rate fixing, he declared, would
be on the basis of cost of the power
in Imperial Valley. the valley being
a unit for this rate basing.
Outlines Advantages
Cage outlined the advantages
WAhA1t tit I4dalbNd NOuih 1Codlb
from his company's proposal in the
income that the district would re-
ceive. in the avoidance of competi-
ton and of duplication. declaring
defeat of the power bonds on June
is advisable.
Directors Immediately began fir
ing barrage of questions in re-
gard to rates that would result,
and attacking the company's atti-
tude in the past toward rural extern
sion. Mrs. w. 1. Carleton, a farm
woman. declared that for 20 years
she had lived within one mile of
q power line and had never been
able TO persuade the company to
extend a line to her home.
Charles Weiman, John Scott, J.
f. Harshman and Earl " c. North
rop were among the speakers. w.
Z. Hancock apparently voicing the
general feeling by saying:
we don't trust you-wed bet
ter build our own power system"
Hewes spoke next, pointing out |
that the power election on June 16 /
is another step in the consunation /
of the program which the people
of Imperial Valley have been advo-
eating for 20 years. Development
of. and sale and distribution of
power he declared to be essential
in making all that has been done
feasible.
Hewes Attacks Legality
Legality of the offer made by
the firm was attacked by Hewes
who declared that the corporation
is not bound by the proposal of the
officers.
Il have been advised by compe-
tent lawyers that your district board I
of directors, representing you. do
not have anything in the shape of |
a proposal of a legal and binding /
form from the Nevada California /
Electric corporation.
The officers of the Nevada Cali |
fornia Electric corporation are not |
bound and are not binding their /
corporation by their so-called Of |
fer.
ANY one of the stockholders can |
enIoin the company from comply |
ing with the terms of that proposal. |
II have particular reference TO the |
SO called grant, mentioned in the |
letter TO the district board from A. |
y. West. president OF the power