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0'02'537 ';"~';,"~P_'r'!'~rr,\ .I,~"",~~ issue, in the first place, that is from a third to greater than the state's entire revenues last million." three-fourths year-$468.2 Furthermore, wrote Mr. Campbell, the kind of bonds con- templated for financing CAP would be revenue bonds, to be retired with revenues earned by the project. And this type of bond was considered more speculative than general obligation honds backed by the taxing authority of a governmental unit and therefore would command higher interest rates. Right now, said Mr. Campbell, both kinds of bonds were more, than usually difficult to sell because of the money squeeze then prevailing. "Realistically, too," he said, "it must be acknowledged that any CAP offering is going to run into a stumbling block of still another more insidious type: skepticism on the part of investors. Buy'ing bonds backed by a turnpike entails some risk to the investor, of course, but revenues in most cases are at least fairly predictable, and there is historic reason for believing that a well-managed turnpike can be made to pay. But the sort of endeavor that the CAP represents-a hydroelectric-pIus-irriga- tion project-is considered less well understood, even though it, too, isn't without precedence. None of which means that CAP can't be financed through the sale of bonds satisfactorily, but it would be a mistake to assume that the job would be a snap." Another dubious note was sounded at a Tucson Chamber of Commerce breakfast forum. Dr. Robert A. Young, associate professor of agricultural economics at the University of Arizona, said Arizona farmers probably would refuse to pay what it would cost to get CAP water as long as they could pump water for less money. And he thought the underground supply would last another 50 years. Thus CAP was at this time "premature," said Dr. Young. Dr. Young's view did not go uncontested. Stream Commis- . sioner Ashby Lohse said CAP water would cost about $10 per acre foot, and most farmers already were' paying that and more for pump water. He said he knew of no farmer pumping for less than $9. A third panelist, L. M. Alexander, assistant general manager of the Salt River Project at Phoenix, agreed with Mr. Lohse and said water must be channeled to all parts of the state regardless of cost. . ': Phoenix Mayor Sees Rate Increase In Phoenix, Mayor Milton Graham said that if Arizona chose the "go-it-alone" route toward CAP, Phoenicians' water rates would increase by $12 to $14 a year. But even so, he said, the rates would be [ower than those paid in other metropolitan areas such "S Tucson and Oklahoma City. (Mayor Graham's statement was challenged by the A.rizona LcgislMit'c Reviow, which quoted "an Arizona Power Authority source" as saying his figures were "probably accurate but. . . misleading." Ampli- fying, the Revieqv quoted the "AP A source" as saying that -36- ;" '" . ~':., w~. .~ .;.~