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Board. The State Engineer should thoroughly investigate all questions 

 connected with the district from an engineering standpoint. The Attor- 

 ney-General should investigate the legal question connected with the 

 work, and the entire Board should examine the enterprise from a busi- 

 ness standpoint, just the same as though a bank were making the in- 

 vestigation with a view to buying the bonds. 



If upon thorough investigation the State Board of Irrigation should 

 find that the legal, engineering, and business points were all satisfac- 

 tory, they should then authorize the formation of the district, fixing the 

 amount of the bonded debt. The people could then go to work and 

 form the district, vote the bonds, and offer the same for sale. These 

 bonds should run twenty years and should bear 5 per cent interest. 

 When offered for sale the State should offer to take the entire issue 

 or any part thereof at par. If any other party should put in a higher 

 bid they could do so and the bonds would be sold to the highest bid- 

 der. If the bonds were sold to the State the State officials should 

 then offer for sale State bonds, bearing 4 per cent interest, enough to 

 raise the money to buy the irrigation district bonds offered. The 

 State would thus make 1 per cent interest on all the district bonds 

 bought, and this sum would amply repay the State for the expense 

 of its Irrigation Board and practically guaranteeing the bonds of the 

 district. 



There have been $16,000,000 of irrigation district bonds voted and 

 offered the public. If these bonds were sold at 10 per cent discount 

 there would be a loss to the district of $1,600,000. Those bonds bear 

 6 per cent and run an average of fifteen years. The interest saved at 

 5 per cent would thus amount to $160,000 a year, or $2,400,000 for the 

 fifteen years. This system would therefore save to the districts over the 

 present system the sum of $4,000,000, to say nothing of the many bonds 

 traded for water rights and water works where the districts paid double 

 the price they would have had to pay had they been able to make the 

 deal on a cash instead of bond basis. 



Again, capitalists would buy irrigation district bonds bearing 5 per 

 cent interest and pay a premium for the same if issued under super- 

 vision of the State in such a manner that the State would be willing to 

 buy them at par, rather than buy State 4 per cent bonds, or rather than 

 buy the present irrigation district 6 per cent bonds at a discount of 10 

 per cent. In this case the State would be a great benefit to the district 

 system without great expense, saving millions to the districts and there- 

 fore saving millions to the State. 



Under such a revised law arrangement should be made for the reor- 

 ganization of the districts already organized, so that they could operate 

 under the new law; also for the disorganization of districts that could 

 not get the authority of the State Board to reorganize. Thus the pres- 

 ent districts could either reorganize or disorganize, or go ahead as they 

 are under the present law. 



Irrigation is not a temporary question. It is here for all time. It is 

 here to stay. Our people must face the music. We cannot afford to 

 struggle eternally under a weak system. The present system is acknowl- 

 edged to be weak. It must be strengthened. Herein is outlined one 

 method of strengthening that system. There may be better ways of 

 doing this work. If so it is in order for some one to suggest such an 

 improvement. Something must be done, and there should be no delay. 



