The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-10
BONDS WITHOUT VALUE,
All Those Issued by Irrigation
Districts So De-
Clared.
JUDGE ROSS MIsCoNsTRUED.
Court Confirmation Proceedings
Have No Bearing on Their
Status.

Lively DOlu lsSuSu NY Vic Nhiiouo hAiSd'
ton districts of this State organized under
the Wright act is invalid, so declared by
United States Circuit Judge Ross in his
recent decision in the case of Maria King
Bradley ct. al. VS.. Fallbrook Irrigation
District et al.
This statement, it is true, is contrary to
the general Interpretation given to Judge
Ross decision. It has been the accepted
idea that he decided only those bonds
which had been issued by districts whose
proceedings had not been confirmed by a
Superior Court were invalid, when in fact
he decided that all irrigation district bonds
were invalid, as having been issued in con-
f1ict with the constitution OF the United
States.
To make the matter perfectly clear it is
necessary to refer to the passage by the
Legislature on March 16, 1889, of what is
known as the supplemental Wright law.
This provided that the board OF directors
OF any irrigation district may commence a
special proceeding in Superior Court of
the county in which the lands or some
portion thereof are situated, in which,
after the publication of the notice of the
proceeding, any person may come In and
contest the legality and validity of each
and all of the proceedings for the organic
alton of said district under the provisions
OF said act from and including the petition
for the organization of the district, and all
other proceedings which may affect the
legality and validity OF bonds and the
order for the sale and the sale thereof.
This supplemental act was passed so as
to make the sale of bonds easier and at a
better price, as it was believed such confir-
nation proceedings, establishing the
validity of the organization of the irriga-
ton district, naturally made the title to
the bonds unimpeachable, and so it would
have done, SO far as anything in the State
constitution is concerned. but the organi-
cation of such districts. according to Judge
Ross, is contrary to the principles OF the
constitution of the United States.
What led to the misinterpretation of his
decision on this point of confirmation pro-
ceedings was explained yesterday by R.
Percy Wright, who had just returned from
Los Angeles and who had several inter-
views with Judge Ross on this very SUBJ
ject. He stated that Judge Ross was ex-
ceedingly wrath over the way in which his
decision had been misinterpreted. The
Judge said he thought he had been per-
fectly clear in declaring that all bonds
issued by the irrigation districts were in
valid, as no State court could by its mere
decision make that valid which was in
valid from its inception. as being in con-
fiict with the Federal constitution.
Mr.. Wright then called attention to that
1f nd
been apparently misconstrued. The sup
Elemental act already quoted gives only
the board of directors the right to institute
confirmation proceedings, and, comment
ing on this, Judge Ross said in his
decision:
'sSuch proceeding may or may not be
instituted by the board of directors of the
district, and was not instituted in the
present instance, so far as appears from
the BILL"
TWAS the statement that such pro-
ceeding twas not instituted in the present
instance" that led to the erroneous infer
ence and construction that had such a
proceeding been brought the bonds issued
by the Fallbrook district would have been
valid. But this was not the intent of the
remark, which was interposed to show the
inherent weakness of the law, which made
it optional with the board of directors, who
alone were authorized to act in the matter,
to bring such confirmation proceedings,
for Immediately following Judge Ross
said:
mo mans constitutional rights can de-
pend upon an option which may or may
not be exercised by another"
Mr.. Wright was unable to state what
proportion of the bonds sold had been
given the apparent stamp of an indefeas-
ible title by confirmation proceedings; but
it is believed it is large portion of the
S., 000, 900 disposed of.
He also states that the compliments in
the Fallbrook case intended to file an
amended complaint and have the case re-
argued before Judge Ross, notwithstand-
ing that the defendants demurrer to the
original complaint had been overruled.
Their action Is prompted by desire to
strengthen their case, in the light of Judge
Ross decision. This will give the defend
ants an opportunity to interpose another
demurrer, if they are SO inclined, but Mr..
Wright, who is interested in the defense.
is of the opinion that no further demurrer
should be made, so as to get the Issue be-
fore the Supreme Court at the earliest day.
No matter how Judge Ross may decide,
he.questlon is bound to be carried by one
side or the other to the highest tribunal,
and the filing of demurrers would only
prevent the matter being brought before
the Supreme Court during its October
term. His plan is to file an answer to the
amended complaint, and thus expedite the
case toward its final settlement.
PLANS OF B0NDHoLDERS.