73 8 AGRICULTURAL ECONOMICS 



We have been forced to exploit drainage bonds and to offer them in 

 the general market. Until this year, local capital has been sufficient 

 to finance all Missouri drainage bond issues, but the supply has 

 increased to such an extent that we have been compelled to interest 

 outside dealers and investors. Since January i approximately 

 $10,000,000 of drainage bonds have been issued in the state of Missouri 

 alone, and, when you take into consideration that our market is 

 expected to furnish funds with which to finance improvements in 

 several of the southwestern states, you can realize why it has been 

 necessary for us to interest outside capital. In spite of the misgivings 

 with which the first offerings were received, the result has been 

 entirely satisfactory and today leading investment bankers are selling 

 drainage bonds in large quantities and crying for more; in fact, the 

 competition for good issues is almost as keen as it is for direct obli- 

 gations. 



Inasmuch as the reclamation and protection of wet and over- 

 flowed land is a public improvement, the different legislatures have 

 authorized the organization of drainage districts for this purpose or 

 have provided that the work may be done under the supervision of 

 existing governmental agencies. The owners of land in a defined 

 area, suffering from the effects of water, decide to improve this land 

 by the construction of canals and such other works as are necessary. 

 A petition is prepared in accordance with the provisions of the statute 

 and filed in the proper court. After notice has been given of the 

 pendency of this petition, a hearing is held at which the court con- 

 siders the case and decides whether or not the drainage district is a 

 public benefit and should be organized. In case of an affirmative 

 decision a decree or judgment is rendered, creating the district, and 

 such steps are taken as are necessary to provide an administrative 

 body. Landowners may appeal from this decree within a certain and 

 limited time, in which event the proceedings are reviewed by a higher 

 court. 



When the officials of the district are elected or appointed, they 

 organize as a board of directors, elect officers, choose an attorney, and 

 employ engineers, and take such other steps as are necessary to com- 

 plete the organization. With the proceeds of preliminary taxes 

 authorized by law, or with money borrowed on notes of the district, 

 surveys are made and a definite plan of improvement is decided upon. 

 . Men this plan has been approved by the court benefits and damages 

 of the proposed drainage works are distributed among the owners of 



