THE IRRIGATION AGE. 



417 



which has wide experience and ample facilities in this 

 particular line of investment. 



THREE GENERAL CLASSES. 



Irrigation Bonds may be broadly divided into three gen- 

 eral classes : Municipal District Bonds, Corporation Bonds 

 on lands in private ownership and Corporation Bonds, issued 

 against lands under the provisions of the Federal law known 

 as the "Carey Act." 



Of these three classes of Irrigation Bonds, differing 

 according to the laws in the various states in which the 

 projects are located, each has its special attractions. But all 

 form a first lien on fertile and tillable land. And all, if 

 properly issued, afford the investor more than ample se- 

 curity. 



paid through the County Treasurer's office, by a tax, levied 

 in the regular way. This tax is usually levied for about 15 

 per cent in excess of requirements, so as to provide for 

 possible delinquencies. 



The value of such bonds, as with all Municipal securi- 

 ties, depends on the population of the district and on the 

 value of the property subject to the tax lien. Many of 

 them belong among the highest grades of Municipal securi- 

 ties. 



CORPORATION "CARET ACT" BONDS. 



These bonds are issued by Corporations to reclaim lands 

 segregated from the public domain for the purpose of irri- 

 gation and development under the provisions of the Federal 

 Law introduced by Senator Carey, of Wyoming, commonly 





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IHIIIIIMIIMI 



1 1 1 1 1 1 1 1 1 Tff tTTTTTTT 1 T Tf T f \ \\ f f JJT J J 





View of a portion of the Milner Dam on the Snake River, Idaho Twin Falls project (South Side). 



We will deal with the classes separately. 



MUNICIPAL IRRIGATION DISTRICT BONDS. 



These Irrigation (Bonds are issued by organized dis- 

 tricts, very similar to school districts, for the purpose of 

 purchasing or constructing irrigation systems for their own 

 use. 



The bond issue must be approved by a majority of the 

 resident free-holders in the district who have paid taxes 

 the preceding year. The procedure is quite similar to that 

 of a school district issuing bonds to construct a school 

 house, or a municipality issuing bonds to purchase or con- 

 struct a City Water Plant. The bonds then become a mu- 

 nicipal obligation, constituting a first lien on all town and 

 farm properties included in the district. 



The interest on the bonds, and the maturing bonds, are 



known as the "Carey Act." The segregation is made by 

 the United States Department of the Interior after re- 

 quest made to the State Land Board and certification of 

 their approval to the Secretary. Bonds issued on such 

 projects are usually made to mature in ten annual install- 

 ments one to ten or two to twelve years. 



After these lands have been segregated, the prospective 

 settler must make a contract with the Corporation for a 

 water right before entering upon his land. 



Supervision of the system of irrigation is maintained by 

 the state engineers and State Land Board until the entire 

 construction is satisfactorily completed and the system turned 

 over to the settlers. 



In this way the settler is guaranteed a perpetual water 

 right with good title. The settler pays 10 per cent of the 

 purchase price of his water right and in his contract gives 



