Imperial Valley press., 1938-01-11
Bond Problems
Stressed i'm Year
Report of District
(COntinued from PAGE |

N(OllIlIlutQ lIOlil -
Members of the board and OF
the farm bureau tax committee met
with a group of bondholders in
August. 1t was agreed the bond
holders would arrange for an in
dependent audit and engineers sur
vey, after which a plan of relief
would be studied, provided the dis
trict would take steps to release
money impounded by court order
and pay interest coupons due jan
uary /, 1887. This was done and
we understand the engineers and
auditors reports will be completed
soon.
Eighteen suits of different kinds,
involving many angles of litigation,
have been filed by bondholders.
1.-The board in September fixed
an assessment rate for 1937-38 cal
culated to produce the revenue for
which we levied in 1886. 1t was the
opinion of the board that the peo-
pie could not pay more. This rate
was approved by holders of ma
jority of our bonds, subject to work
ing out a plan of future relief.
"As result of many discussions
with groups and individual bond
holders I am hopeful of a solution
of this problem in 1898.
urgent need of drainage money
makes it imperative that the bond
holders cooperate with the people
of the district to protect security
of both bondholders and landown-
ers."
In discussing the All American
canal power program, Hewes point
ed out that, during the year, the
U. S. Supreme Court upheld the
right of irrigation districts to go
into the power business. Success
full negotiations with REA and PWA
to finance the canal power system
were reviewed.
The Brawley power plant, Hewes
said, completed its first year of
operation May 18, 1887. 1t is rum
ming at capacity, he added, SO that
it has been necessary to curtail
further solicitation of business
pending the time when new power
from additional engines is avail
able.
From this plant" the report said,
you have enjoyed both a good
profit and a saving. to consumers
of electricity throughout the dis
trict for the year 1887"
The report also recalled that the
board, taking the position of car
rying out the mandate of the peo-
pie, has offered to purchase the
physical properties of New Cal,
thus eliminating unnecessary COM
petition and duplication of facili-
ties"
Hewes congratulated the districts
engineering and legal departments
for work during the year and COM
mented upon successful reorgan-
ization by Assessor Collector w. A.
McFadden and Treasurer Anna
McManus of their offices.
Other matters of operation also
were treated in the report, por-
ton of which follows:
Heavy Sand Troublesome
Because Of the volume of heavy
sand carried in river water, 1t has
been necessary to raise the levees
along many miles of canals in the
district system in Mexico and in
the United States. 1t is gratifying
to report that the districts oper-
ating department has been success
full in coping with this very Crou-
bleSome problem.
Canal-Bank Treatment
Experimental treatment of brush
and bamboo growth on canal banks
with chemicals has demonstrated
or the Central Main canal the val
ue of this method. Continued study
of materials and methods OF appli-
cation promises to bring, I believe
the greatest saving in future costs
of operation and maintenance.
Saving i'm Structures
Building of structures at the
Imperial yards of the district has
also made a substantial saving ir
costs, as we'll as shortening the time