The Providence news. (Providence [R.I.]) 1891-1906, 1894-09-12
LAST EDITION
FAMILY AFFAIR.
Troubles Of the CoIor;olo River Irri-
cation Company.

The trouble in the Colorado River Irri-
CATION Company. which was brought to
public attention in the New York courts
yesterday, is the result of desire on the
part of one of the directors, James II.
Beatty, to acquire for himself the position
and privileges Of his cousin. the general
manager, John &. Beatty of this city.
Mr.. Herbert Il. Beatty. son OF the gen.
eral manager and also connected with the
concern, was seen at his Office in the In
dustrial Trust Company building to-
day and he said that tue whole matter
was family affair more than anything
else, and that the James III. Beatty OF
Canada, who has applied for receiver for
the company, has for his sole motive the
desire to drive the present company into
insolvency and then TO reorganize with
Canadian capital and himself as manager.
That, says the son OF the manager, is the
whole situation in nutshell.
The company was started in 1892 capital
lied for 81 500 900, and in spite of the busi-
ness depression since then has more than
held it's own and made such good pro-
gress in the preliminary work that the
preparation for constructing the irriga-
tion plant itself are all completed.
One hundred and twenty thousand
dollars have been expended ia acquiring
land holdings that amount to S00,0M
acres, the water appropriations
have been made, the right of
way through the Fort Yuma reservation
has been secured and a contract with the
Southern Pacific Railway Company has
been perfected whereby the Irrigation
Company is to acquire 500, 900 acres of the
oil in n n ffa Ina
paid for ut s2.5e per acre in 10 years. time.
All the necessary legislation has been
passed In Congress and the surveys have
been completed.
at q cost of $4,000. And all the capital
which is now being invested is for the
canal itself the proposed dimensions or
which are such it will have capacity Of
1000 cubic feet of water per second and ir-
rigate 100000 acres of land.
1t was not until after all this preimi-
nary work had been accomplished and the
concern was beginning to attain the
object of it's organization that the
charges of fraud were made and q receiver
asked for.
When the application for receiver was
made yesterday, the question was raised
as to the legality OF the organization o.
the company and it is, perhaps, we'll ia
| quote on that point the opinion OF Hon.
| w. III. III. Hart, attorney general OF Cali
| fornia as expressed in letter written by
him TO MIR. James Beatty, the plaintiff In
the present litigation.
| James III. Beatty Esq. Thorold. Out.
Lear Sir-lours ofJuly ., at hand. contents
noted. la reply will say:
Mr.. Beatty's statement of March 10, to yoI
| about my being East is correct.
Iexamiued into the question of the original
! incorporation of the Colorado River lrr1gatiou
+, Company aud have no doubt but that it WAS
| legally ana properly Incorporated under tho
4! laws of Colorado.
| That tie basis OF the Incorporation upon the
| lands in sonora was sufficient under the laws
| of Colorado for the creation of the corpora
| tion. The title should. however. be trans
/ ferred to the company as soon as possiblc. a
| dspensation obtained from the Mexican gov
| crnment permitting foreign corporation 10
| own tho property within ID miles of the line,
| if any property comes within that distance.
| understand there ia some question about
f, the company not being properly organized
! and would have TO eliminate the Sonora land
| in order TO organize new company That Is
| not So and there is occasion for doing II.
| A new company. l presume. could be organ
lied but the difficulty would he updcr th0
laws of California IL would be subject to as
| sessment. 1t seems TO me the company
| ought to be able TO run this Dusiucss Dettcr
| than "a new company could
have known J. c. beatty many years and
have great faith in his integrity and ability.
| IL any fault can be found with him il is that
| he is too sanpuine. AS - business man to Sc
| cure the rights for the company no better
man could be found.
4 Any information can give will be cheer
fully forwarded. Yours respectfully,
w. IL. III. HART.
sASFRAScIsco, July ~, 1884,
Since the headquarters OF the company
were transferred from New York to this
city there have been number OF business
men and capitalists OF Providence and
Pawtucket to invest in, and today great
many OF their stockholders have been u
MIR. Beatty and expressed their confidencs
in his management and their determine
tion TO stand by him.
The petition fer receiver has not beef
granted, and the representatives OF Man
ager Beatty have secured for him q stay
of proceedings two weeks. The case viii
be fought exclusively in the New lorl
courts.