The herald., 1894-03-03
A RECEIVER TO Be APPOINTED.
The Bear Valley Irrigation
Company Again.
The Big Corporation win Shortly Be
Re.Organized.
A Few Facts Brought Out by the Com
plaint- The Intentions OF This
Great Irrigation Com
pany.

An application for the appointment o
receiver for the Bear Valley Irrigation
company will be made at 10 80 O'Clock
this morning before Judge Ross of the
United States circuit court. A more
important appointment was never ap-
piled for in the federal court of this dis
trict.
1t is hardly likely that Judge Ross
will grant the petition today, even if il
is iound that the case is one in which 6
receiver can legally be appointed.
The application was filed yesterday
by James Gilbert Foster of London, and
it came about in due process of law,
Foster having obtained judgment for
$405.0S5 against the company, execution
having been levied and returned un,
satisfied. Mr.. Foster is agent for the
foreign creditors OF the big irrigation
enterprise.
An attempt was made several weeks
ago In the federal court to have re-
ceiver appointed, but the company
promptly paid the amount of judgment
and stopped the proceedings. The
prayer was made by the Massillon
Bridge company, after having secured
judgment in the sum of 5000 on O
promissory note.
Shortly aiterward receiver was ap-
pointed by the superior court OF San
Bernardino county, though the validity
OF the appointment was seriously Ques-
toned. 1t is understood that the re-
ceiver, F. p. Morrison OF Redlands, has
asked his discharge preparatory to the
expected appointment in the higher
court.
The allegations filed yesterday by Mr..
Foster are Of sensational character and
tend to place the Bear Valley Irrigation
company in bold light before the pub
lie, although the inside details as 80 mis-
management are, Of course. omitted. In
case the petition is granted and a re-
ceiver appointed the company will be
sold or stockholders' agreement en-
tered into, whereby the corporation will
be reorganized and placed upon a solid
financial basis.
1t is given out that large amount OF
money will be invested in the proposed
new company and that the enterprise
will be placed wholly upon paying
basis. The news OF reorganization will
be heard with interest by all lsndhold-
ere in Southern California.
THE coMPANY's CONDITION.
In the petition to be presented today
for the appointment OF receiver, Mr..
Foster alleges that the Bear Valley com.
pany Ia indebted to divers other persons
besides himself in amounts aggregate
ing $400, 900 or $4,000 and that much
of the indebtedness ia reduced to liens
on the property. 1t is shown that the
books of the company have not been
properly kept and do not properly and
accurately show the business credits and
the indebtedness of the company, nor
do they contain an accurate history ol
the business transactions; that there
are certain outstanding mortgages on
the property aud that large amount oi
it's personal property, consisting oi
bonds OF irrigation districts, is pledged
to secure certain debts, some of which,
and other personal property, have been
hvpothecated as collateral security fol-
the payment of indebtedness OF the
company, matured and maturing.
The property of all kinds owned By
b4l0 Ctn P0nIg A1aAchAAlCQt IGAlL0Q
upon and properly aud judiciously
managed, together with the value of ite
franchises, privileges and rights as a
corporation, il sold to satisfy the in
debtedness of the company, would
prove nearly, thsugh not entirely ade-
quRte to the payment pro rata of the
company's indebtedness.
Mr.. Foster further says that il is for
the interest OF all creditors and share.
holders that the property of the COM
pany be mArshalled and taken posses
sion OF by the federal court aud that all
of it's debts and credits and assets be
ascertained and that judgments now
resting as liens on the property be sat.
is6ed. aa lar as may be, by sale OF the
property, rights and privileges and fran
chises of the company.
In addition to the judgments and OBJ
legations, there are certain mechanics
liens on detached portions of the irrigat.
ing system OF the company which, il
cold hereunder, will disintegrate the
system and destroy the efficiency and
value Of it and permanently iniure the
same vastly more than the amount o.
the debts and liens mentioned, and
would not result in satisfying the liens
even II sale should be made; but il the
sales were allowed to take place to sat
isfy the liens the company would be
rendered absolutely unable to deliver
water, which 1t now has and is anxious
to do for adequate compensation, the
revenues of which are it's chief reliance
to carry On business. for the most val
liable portions Of the property are its
rights and franchises to receive legal re.
muneration for furnishing water to vari
GUS persons and corporations for irriga-
ton and other purposes.
The complaint alleges that the entire
stock of the company outstanding
amounts to 81, ,000.00 OF which SO. .5O2..
600 has been issued and paid for; that
it has not covered all the territory avail.
able to it, nor has it completed or put
into operation all of its rights,
privileges and franchises as an ir.
rigation company; that it was and ia
necessary, in order to do so, to expend
upon the property of the company the
amount of its capital stock and the pro-
ceeds OF bonds which it held from irri-
cation districts that inBtead OF expend-
ing upon the property of the company
for its development the proceeds of the
stock and bonds, it ueed employed and
distribut eyHy ium of sl,055, 1926 there
of as divuenys upon the capital stock
(none Of which was received BY Foster),
thereby perverting the revenues of the
company to the amount, and committed
waste thereof from the proper and legal
purpose to which the revenue was at