The herald., 1895-01-03
RIVERSIDE
PEOPLE ARE
INDIGNANT,
CollusiOn Charged in the
Water Suit.
Action to Dust the Receiver
Will Be Taken.
WHAT THE OFFICIALS SAY.
The Sheriff Said TO Have Acted Too
Hastily.
Some Ugly Assertions Made by Attorneys
in the Case, Who Claim That
They Know the Inside
OF the Scheme.
WHAT THE OFFICIALS SAY.
The Sheriff Said TO Have Acted Too
Hastily.


RIVERSIDE, Jan. 2.-The appointment
of receiver for the Riverside Water
company. under the peculiar circum-
stances narrated in yesterdays dis
patches to THE HERALD. has been the
absorbing topic in this city today. The
entire valley is keenly interested in the
affair. from the fact that every owner OF
land supplied by the company's water
is stockholder in the conc ern. Ad-
verse comments on the action of the
officers in forcing the recsivership are
frequent. although few stockholders de-
clare that they believe the course taken
is for the beet interests OF all. These,
however, are decidedly in the minority.
An incident which has caused the
most hostile criticism is the fact that
the corporation claiming So, 000,O00
assets was a borrower of $65 900 at II
per cent interest, that being the amount
and interest on the paper held by Rey-
nolds, the unsecured New York creditor.
The general disposition seems to be to
await the result OF action in the courts,
and there is every indication at present
of bitter litigation.
TO GUST THE RECEIVER.
The first move will be an attempt to
oust Receiver Frost. and steps in that
direction will probably be taken tomor-
row; in fact papers in the proceedings
to be begun are now being prepared as
fast as half dozen lawyers can draw
them. William Collier, OF the firm Of
Collier & Evsrs who represent the
holders OF some $50 900 of the last issue
OF bonds, stated tuis afternoon that his
clients would intervene and ask that the
receiver be discharged. $50 far as 1
have got," said he. II have found some
20 or 30 reasons. any one of which I
think is good ground for promptly un-
doing action taken Monday night. We
shall get the matter into court in day
or two"
W. ]. Mcintyre, q stockholder in the
company and the attorney for ]. B.
Reynolds. and other New York parties
who hold unsecured paper of the COM
psny to the amount OF $4,000, was seen
by THE HERALD correspondent this after.
noon. ''The appointment of the re-
csivsr," he said, twas a great surprise.
1 will say. too, that 1t was wholly un-
warranted. From conversation had
with President Frost. s. @. Evans and
others 1 was led to believe that no ac-
tion would be taken looking to the ap-
pointment OF receiver here. They
said they had only to raise $4,000 with
what had already been secured to meet
the January interest, and they admitted
that the appointment Of receiver was
q calamity to be averted il possible.
This talk was on Friday last, and the
receiver, you know, was appointed
three days later.
THE SCHEME.
"The suit brought in the name of Mrs.
Alice Longfsllow was to lay the founda.
ton for the receivership. 1 knew this
at the time had the conversation with
them. 1 have no hesitation in charging
collusion. I will state. too, that 1 know
that President Frost had previously tried
to get other lawyers to bring like suits,
but without success"
ibid you inform your clients in New
York Of the contem plated action OF the
officers OF the com pany ?" was asked.
II did, and Mr.. Reynolds wired me on
December 25th that he had better plan
than q receiver. one better for the val
ley. the stockholders and all concerned,
and he urged me to have all action for a
receiver deferred"
But" suggested the reporter, "Mr.
Evans says that Reynolds was an inn
placable creditor. on whose account a
receiver was made necessary in order to
protect the company's property"
"That is not true," replied Mr.. Nc
Intyre. "The paper which Mr.. Reyn.
olds holds does not fall due until April
l. three months hence, and until it falls
due he would have no standing in court
to ask for receiver"
WAITING INSTRUCTIONS.
What action do you propose to take?"
was asked.