The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-04
THAT BIG WATER SUIT.
RIVERSIDE STILL AGITATED
OVER THE MATTER.
some Inside History of the Company.
Statement of Its Assets and
Liabilities.
Special to the Herald.

Special to the Herald.
RIVERSIDE, Jan. 3.-No proceedings
were taken today for ousting Receiver
Frost of the Riverside Wster company,
the lawyers who represent the various
parties not having completed prepara-
ton OF the papers. 1t is understood
however. that a legal battle will be
opened tomorrow, when a petition to
intervene will be filed by soma of the
holders of the last issue OF bonds. Pub
lie opinion is rapidly crystalizing into a
strong sentiment against the receiver
ship, and especially the manner In
which it was brought about.
bit OF inside history OF the com
pany's afaira came TO light today. 1t
seems that the Firsman's Fund Insur-
ance company OF San Francisco ia the
holder OF $50, 600 of the compsny's fret
issue of $500 bonds. These mature
on July LIST next. and q hsli-yaar's inter-
est fell due last Tuesday. Recently
George Frost, now the receiver of the
water company. and 8. @. Evans, one OF
the heaviest stockholders OF the con-
corn. went to San Francisco and had an
interview with the managers OF the in
surance company. The Riversidera
proposed an extension OF the bonds for
three years. Ii this were granted they
agreed that the interest should be forth
coming. The insurance people declined
the proposition.
ASSETS AND LIABILITIES.
1t is claimed now by some OF Froapa
supporters thst had the company de-
faulted in payment of the interest last
Tuesday. the insurance people would
have begun proceedings and forced the
water company into insolvency. Ga
the other hand, il is conceded that had
the mauagers Of the water company
seen fit. there would have bsen no
trouble about meeting the January in
terest. 1t is also learned that 8. G..
Evane has been practically carrying
the company for some time and the con-
Germ became indebted TO him for over
$4,000 1t also appears that Evans
owns half interest in the Rivsrside
Land company. and the latter owes the
water company 100000.
According to Receiver Frost's figures
the total liabilities OF the water COM
pany are $4,000, against which are
$339.OO available asaet5, leaving $412.-
QUO net Liabilities to meet, whicn the
company has property worth over ST.
100000 The statement has been freely
made that stockholders OF ths water
company, who ars all owners of land
under its system, are liable for the
company'o honda. Good lawyers cay
that under recent supreme court de-
cision their liability ia barred By the
statute of limitations.
ATTORNEY HoUGHToN TALKS.
SAN FRANCISCO, Jan. 3.-R E. Hough
ton, the attorney for the receiver OF the
Riverside Water company, when seen
at his home on Pacific avenue, said that
there could be no serioue charged of an
attempt to wreck the company, as was
intimated in come quarters.
THE receiver OF the company. Charles
Frost. ia also the president of the COM
pany, and ne has been instructed to
conduct the affairs of the company the
came ns they have been conducted in
years past. The worry sano men will be
employed, There will be no changes in
tina policy Of the company whatever.
THE barrnssmsnt OF the company
which led to the receiverehip was caused
by the compsny's inability to float it's
bonds. Originally the company sup
piled water for irrigating purposes only,
but lately domestic system has been
added to the plant. Six or eight miles
OF pipe were laid to conduct the water
into the town of Riverside from the ar
tesian wells, and this work and the ex-.
tension OF the company's mein canal in-
volved tho expenditure OF large
amount of money. The company ex-
pected to get this money back by issuing
honda, but the bonds could not be
tloated and the receivsrship followed.
The embaraasme nt OF the company 10
only temp oFary."