UNPROFITABLE IRRIGATION 

 WORKS. 



No. VI. 

 T. S. VAN DYKE. 



Before enquiring farther into the causes of failure in so many ir- 

 rigation works let us ask what is a failure? 



It is generally assumed that the purpose of an incorporation and 

 the issuance of stock is the operating of some enterprise to make a 

 profit to be paid in dividends to the stock holders. A very good joke, 

 this. Such is the style in some of the old fogy sections of the world 

 and even in some of the more archaic regions of our own country. 

 Even in our only great and glorious west a few benighted individuals, 

 fresh from the fossiliforous formations of the east, have had the same 

 idea and operated some companies upon it. For a gas company or 

 city water company, and sometimes for a street railroad this is not 

 altogether bad. But for some other companies such as those for min- 

 ing and often for irrigation it is frightfully out of line with western 

 progress. The principal object in these are more often, 



To pay fat salaries to those "on the inside." 



To look after the brothers-in-law, sons-in-law, nephews, etc., of 

 those on the inside. 



To form inside companies composed of the controlling interest, to 

 buy from or make contracts with the parent company that will utilize 

 any surplus that if paid in salaries would look too large. 



To utilize, by absorption or otherwise, anything lying around 

 loose that might be used for the purpose of paying dividends but 

 which cannot well be disposed of in salaries, etc.. without danger of a 

 protest from some mischief maker who happened to belong to the 

 minority of the stockholders. 



For these and various other purposes to keep control of the stock 

 and to freeze out anybody that is unduly curious about the doings of 

 the majority or the application of the funds. 



All this is not at all inconsistent with good service to the public 

 and many companies have been run on these lines, built up good set- 

 tlements and will continue to do so. Many of these have paid a good 

 profit to those who knew how to put in their money in the right way 

 and watch it after it was in. Some have been honestly managed on 

 that basis. For instance the Bear Valley Irrigation Company of San 

 Bernardino County, California, when the dam was built and water was 

 ready for delivery issued a dividend of water certificates entitling the 

 holder to so much water on payment of a small sum per inch per year. 



