The herald., 1894-03-03

that its property is 60 loaded with liend
as to destroy its credit and ability TO ]
raise money to pay the liens; that ~
corporate activities are suspended, us
business prospects destroyed and its
revenues diminibhed by such waste AMI
misapplication OF its money.
OTHER CHARGES.
The complaint filed several weeks ago
by the Maissillon Bridge company oil
Ohio, in which the appointment OF
receiver was asked, alleges
that the Bear Valley Irrigation company
| is indebted to divers persons in amountA
| aggregating not to exceed $500, 900; that
the total aseets and liabilities OF the de-
fendant company are not definitely
known, as the books have not been kept
in proper form or accurately. and are in.
complete; that the secured indsbtedness
OF the company amounts to not exceed
ing the sum OF 500. 600; that all the real
property OF said corporation has been
heretofore by mortgage conveyed 20
secure payment Of an indebtedness of
S3OO,OO0; that the property mortgaged
aud hypOthecated has an actual value
greatly in excess OF the amount of in
debtednees, and that all OF the property
is in imminent danger of being lost 10
the defendant, its creditors and stock
holdere, unless receiver be appointed
to take charge Of and preserve the
property.
The complaint recites the fact that
persons have obtained Judgment fol
the sums named against the Bear valley
company, as follows: Grant Bros. con.
tractors, Los Angeles, $3l,25O; j. w.
Glass, $4,000.
The following persons have begun suit
against the company for the sums herS
given: Townsend & Ware, to forecloseH
mechanics lien for $l0s7 Pacific Rolls
ing Mills company, to foreclose q me%
chanic's lien for $1795 85. and for theI
further sum of SIC, ,204.71, the latter sum
being assigned from the Baker Iroksr
works ! Russ Lumber and Mill company,
to toreclose mechanics lien for over
$4,000.
1t is averred that the defendant iain-S
debted to the California Sewer Pies#
association in the sum OF $4,000 or more I
that the defendant haze been sued by the \
First National bank OF Los Angeles for
the recovery Of $4,000 on a promissory
note; that the taxes due for she year
1898, aggTegating large sum, remain
unpaid, and that the judgment creditoz
of the defendant threaten TO levy
execution upon the property in San
Bernardino county and sell it., to the
exclusion OF the complainant aud other
creditors.
The complaint alleges tho non-fulfll>
ment Of q contract to supply water to
the Alessandro irrigation district, and
that the company is entirely unable ~
procure money or credit with which to
carry on its business; that there is dis 7
seneion among the directors and stocks \
hnlA I'D e.
the last 80 days taken nc steps to raiseS
money for the use OF the corporations
and that by their negligence in this and |,
other matters here rendered imminent, i
the forfeiture Of many OF the most vsle \
able rights, franchises and contracts OF
the corporation.
A further allegation lie to the effect
that the business OF the defendant has
been 80 managed that statement Of its n
affairs taken from the books OF the de-.
fendant corporation September 80, 1898, 4
shows that for the eight months preced-
ing that date and practically covering k
the entire irrigating season OF the year Z
1898, the gross receipts for water sold
amounted to about 5000, and that the
expense OF maintenance OF the syatems
and salaries for the eight months aggre-
gated more than $24 200, and that the
So, 1875, OF which large proportion
was realized from interest collected on
the bonds Of different irrigation diss
tricts held by the defendant and re-
ceived by it upon contracts for the de-
livery of water to the districts.
SOME IMPORTANT FACTS.
The Bear Valley Irrigation companY
owns the greatest water plant in the
United States, with some $4,000 acres of
land in the Alsssandro Irrigation dis<A
trict. 1t delivers through ito canals and
pipe lines to its Perria and AlessRndro,
districts, and to Redlands, LugonihsA
Morefio City and North San Bernardino.
The company has been organized (
about three years, and during tins
greater portion of that time haa paid a II
very high rate OF dividends, so high that, Il
it's stock sold for as much as $3.50 per
share. 1t now ssems that thoss divi-
dends were simply to bolster up the
price of the stock, and that the companyT
is In debt about 81 100000.
II has reached the point where the
creditors must do something with it.
and il the suit means reorganiza tion it
means the sale of the property to new
company. 81
It seems that controlling interest in
the old corporation may join in the new
one. W
The entire operations in this connec-
tion will be watched with the utmostI
interest by the hundreds OF settlers unx
der the How of Bear valley water, whose
rights should be protected in some way
by immediate reorganization.
Alessandro and Moreno is one OF thea.
districts to be greatly benefited by re-
organization or placing of the companE
on basis whereby all contracts for thoIF
supplying of water can be fulfilled. .@Hl
The result of the reorganization OF theA
company would instil greater conf
dence in the minds of presenqA
and intending land holders irN
the vast valleys under the fowl
of water from the great system, and t.l.
ia to be hoped that the suit institutedsa
will be fruitful OF good results for thel
benefit OF Southern California.
THE REcEIvERsHfP. ~
Several persons have been mentioned
as being suitable for tbs receivership II
in case an appointment is made. Promt
inent among them is Mr.. L. r. i
Scott, real estate dealer of this city. 4
He has been highly recommended, andfl