Show RODEO ADDED SECTION SUGGESTED IN WATER ATER MEASURE Sponsored by Price River Power Delegation to Lessen Load for Sections With Work Undertaken An attempt to conciliate proposed amendments to the water conserva conserva- I tion district act incorporated in S. S B. B 47 by Senator ODonnell O'Donnell Uinta so that if enacted into law the new I provisions pro will not work to the fi financial fi- fi ruin of districts already I complete Compete and whose hose affairs have developed under the existing law I was made by A. A M. M Chene Cheney counsel I for tor the Price river irrigation district district dis dis- proponents of the measure at ata ata ata a public hearing before the senate on agriculture Tuesday Tuesday Tues Tues- day morning The conciliation was In iii the form of a proposed second section which would expressly re relieve relieve relieve re- re lieve districts already completed from the workings of the act More l than fifty landowners under under under un un- un- un der the Bonneville Irrigation dietrict district diR die of Davis county who would I be most moat seriously a affected by the measure were present resent to oppose the ODonnell O'Donnell bill Delegations from Irrigation districts in Cache county and el elsewhere in inthe the state were also present PRINCIPAL CONTENTION The principal point of contention contention contention conten conten- tion is that proviso in the amendment amendment amendment amend amend- ment which would compel the budgeting of delinquent taxes In assessments for the ensuing year thus thus' making the obligation for irrigation project improvements a blanket lien against the entire district rather than an an obligation only of the individual land owners for s sUch ch land as they may have under the district That the existing existing exist exist- ing lag law does not contemplate fl a blanket lien has been decided by bythe bythe bythe the state supreme court in suits developing from the involved af affairs affairs af- af I fairs of the Bonneville project I af-I Un Under del this ruling landowners of that district have proceeded to op operate operate op- op I erate crate and have made no effort to i penalize land landon on which the district i taxes have have- been paid to pay payoff off the I accumulated accumulate 1 taxes of delinquent I lands To To now compel them to budget I these delinquent taxes and pla place e the tte burden of the entire debt upon the district as a unit would result it is said In the Immediate collapse col eel lapse of that district MAKE BONDS SALABLE On the other hand proponents of the measure argue that by en enacting enacting en- en acting the proposed amendments I Irrigation bonds on Utah districts would be more salable and it was according to Mr 11 Cheney's I statement before the committee difficulties encountered in ii h of the Price River district b ds that led Jed to his writing the II measure Introduced by Senator ODonnell In explaining why bond 1 buyers would more readily buy bonds under proposed terms even at a price ten points higher than offered at present Mr lr Cheney said that the application was more Important in the In Initiating Initiating initiating in- in of new districts Take a district Just starting out he said It sells its bonds and begins construction Now itis it itis itis I is possible that under the existing laws that say third one-third of the landowners will take the attitude that before they make ariy arly payments payments payments pay pay- I ments they want to be sure the project will vill be completed only two-thirds two of the district district district dis dis- dis- dis pay the Initial tax to 10 meet the first interest payment due on the outstanding bonds As a resul resul re- re sul suI there Is a deficit there before the district is started and financial difficulties develop fast It was he said to facilitate the sale of the Price River district bonds that the bill had been prepared and to similarly aid any new districts thab might ht encounter similar difficulties es There was no Intention he said aid to embarrass or injure any iny existing district and In view of ot the opposition developed to the ml measure asure particularly by the Bonneville district he suggested the Incorporation of a section which would vou Id exempt existing districts with outstanding bonds to cover a completed project from the workings of ot the law In opposition to the measure representatives representatives representatives rep rep- of at the Bonneville district dis district lis- lis triet s set eft t forth that the provisions of ot the amendment did not actually increase the security guaranteeing the bonds and that such purported increase was fictitious They rhey pointed point point- ed out t that under no condition could I the bondholders on foreclosure realize realize real real- ize more than the actual value o othe ot of the entire district land To pile pUe u uthe up tie the delinquent taxes of failing tailing lands against ag such as were able to meet the proportionate obligation could only result in ultimate failure whereas the bondholder be beIn beIn bein In at least as good case If those lands as could pay for what benefit benefit bene- bene fit they had received were allowed to do so and the bondholder er took over such lands as were WE're delinquent in their share of ot the tax While they argued the bondholder er er was no better off ort they pointed out that the provisions of ot the amendment was of serious import to the farmer Under this change from froman troman an individual to a group obligation they contended the thrifty progressive progressive pro pro- intelligent farmer with good land was penalized because of some ome shiftless or or 01 negligent neigh neigh- bor of other existing districts spoke in opposition to the measure which appears to be unfavorable un tin- favorable to all districts now or or- or In concluding the committee committee com corn hearing hearing- Samuel C. C Howard Howar 1 president of ot the Bonneville irrigation irrig-a- irrig then tion district presented a I. I brief synopsis of the history of that dis dis- dis- dis Under the existing laws he lie said It was possible that many ot of the landowners of ot the section would be able to meet the tax obligation for their proportionate cost- cost of at the project but that under tinder the proposed amendment to saddle the productive productive productive tive land with the delinquent taxes of untilled unfilled acreage under the district district dis dis- dis- dis would mean collapse with the bondholder eventually getting nothIng nothIng nothing noth noth- ing more than he lie will obtain It ir the law Is left leq in n n its present form |