244 



THE IRRIGATION AGE. 



PROVING THE CLAIMS OF IRRIGATION. 



All the fundamental claims of the advocates of irri- 

 gation securities were verified, as a result. The most 

 important of these relates to the value of water in an 

 arid country. The investigators did not have to go 

 far to satisfy themselves fully on this point. There 

 lay Redlands, a realized ideal of a beautiful commu- 

 nity, based on small tracts of intensely cultivated 

 land. Lying on a sunlit slope, framed by noble 

 scenery, every acre utilized for orchards and gar- 

 dens, every home an evidence of prosperity, and 

 every street and door-yard green with vegetation 

 and fragrant with the perfume of flowers. In the 

 valley, eternal summer; in the mountain tops, eter- 

 nal winter; and every element of value which these 

 things represent to man, the creation of water ap- 

 plied by a system of irrigation. It is only seven or 

 eight years since the occupants of this same sunny 

 slope objected to a valuation of seventy-five cents 

 per acre upon this land, then only valuable for the 

 pasturage of sheep. To-day the same land is worth 

 from $1,000 to $2,000 an acre, and even more in some 

 instances. This valuation is absolutely dependent 

 upon the water supply. There could be no ques- 

 tion, then, about the value of the water supply. 

 Across the range of picturesque hills lay the Ales- 

 sandro and Moreno tracts, only awaiting the comple- 

 tion of this system to blossom like Redlands with 

 the homes of men, and intending, if possible, to im- 

 prove upon the parent colony. But the territory now 

 immediately dependent upon the system by no means 

 measures the demand for Bear Valley water. This 

 is the only large supply in a locality where the de- 

 mand for water is extraordinary. Between Redlands 

 and Los Angeles there are thousands of acres which 

 are ready and willing to contract for every inch of 

 surplus water that can be developed. It is this de- 

 mand which will fix the selling price for the water 

 to be impounded in the various reservoirs of the 

 company. This investigation of the value of water 

 also demonstrated the value of the large bodies of 

 lands which belonged to the company. 



GREAT MATERIAL ASSETS. 



A careful study of the company's resources showed 

 the following values over and above the magnificent 

 plant itself: 



10.000 acres of the best land $2,000,000 



Unsold water rights, available upon comple- 

 tion of plant 1,380,000 



District bonds 500,000 



$3,880,000 

 The company's earnings will be as follows: 



From existing contracts $207,500 



From annual charge on surplus water rights 127,500 



From interest on district bonds 30,000 



$365,000 



To this there will be added nearly $200,000 for a 

 period of many years as interest on notes and mort- 

 gages resulting from the sale of the lands. A further 

 addition indefinite but certain to be very consider- 

 ablemust eventually be added for the earnings 

 from a magnificent water power remarkably adapted 

 to electrical development. 



These estimates of values and earning capacities - 

 were arrived at after a most patient study of the 

 engineering problems involved and of land and 

 water values under the system and its immediate 

 vicinity. The figures have the endorsement of the 

 financiers, lawyers and experts engaged in the ex- 

 amination of the property and the formulation of 

 plans of reorganization. There is every reason for 

 confidence in the announced expectation of retiring 

 the bonds within ten years and paying moderate 

 dividends upon the stock dividends that will neces- 

 sarily increase steadily for some time to come and 

 eventually justify a premium price for the stock. 



THE NEW BEAR VALLEY. 



The plan of reorganization includes the formation 

 of a new corporation to be known as the New Bear 

 Valley Irrigation Company. Its capitalization is 

 placed at $4,000,000, all of which will be represented 

 by common stock. It is proposed to issue bonds not 

 to exceed $2,500,000 to provide for the liquidation of 

 the indebtedness and the completion of the works. It 

 is proposed to push construction rapidly to com- 

 pletion, thereby fulfilling all existing water contracts 

 and providing a considerable surplus water supply 

 upon which certificates will be issued and sold to 

 meet the insistent demand of those who desire to be- 

 come actual consumers. 



SAVING OLD INVESTMENTS. 



In the new organization there will be no trace of 

 the old management, although it is probable that 

 nearly all the old stockholders, American and foreign 

 alike, will become stockholders in the new company. 

 They will be reinforced by a large representation of 

 new American capital, together with some from 

 abroad. From the beginning of the negotiations the 

 effort has been to formulate a plan which would en- 

 able those who had made a genuine investment in the 

 old company to protect themselves and share in the 

 benefits and profits of the enterprise. The plan 

 finally determined upon provides terms upon which 

 this most desirable object can be accomplished 

 Those who accept it will be able to save every dollar 

 of their original investment on generous terms involv- 

 ing no risk of the new money they shall invest. 



A VINDICATION FOR THE INDUSTRY. 



The new company will be under the responsible 

 management of some of the strongest American and 

 European men of affairs. The Chicago capital, which 



