The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-10-03
Smooth Financiering by the Bear
Valley Company
ANOTHER WRIGHT ACT DEAL
President D. E. Myers Outlines the Set.
tiers Defense
A Water Arrangement Made Before the Dis.
trict Was Organized
The Ranchers Are in Danger Of Losing
Their Property for q Debt for
Which They Received
Nothing

The Herald is in receipt of the follow
ing communication, which will be found
of great interest. 1t presents the views
OF the people of Alessandro about ths
difficulty they are in about the bonds
which the Bear Valley Irrigating COM
pany obtained from them.
Editor Herald An organization has
been formed in the Alessandro valley,
known as the Alessandro Valley Defense
association, the purpose of which is to
attack and set aside $755, 900 of bonds
issued BY the Alessandro Irrigation dis
trict and transferred to the Bear Valley
Irrigation company for $1,000 class
water right certificates, purporting 10 rep
resent 5000 inches continuous flow of
water. to be delivered by the conf any to
the district for the purpose Of irrigating
its Ian DIS.
1t appears to me that the interests in
volved in movement uf this kind arc so
great that decent respect for public
opinion demands That faces be stated and
reasons given in justification CT an or
eanization of this kind, taking steps
80 many people,.
To begin, then. I wish to state that the
citizens of the Alessandro Irrigation dis
trict are an honest, hon orahle, upright
people, and have no intention or desire
t. repudiate any honest indebted ness. no
matter how burdensome it may be. They
feel toward bonded indebtedness the
same as toward a promissory note or
mortgage Indebtedness. If value has
been given. then the debt should be paid.
no matter il the lands, homes and every
thing else should be sacrificed to meet
the obligation. But on the other hand.
ii private corporation, as is the case
here, went deliberately to work to create
public organization, out on the desert,
where practically only seven families
lived, most of whom were on government
land tor which they had no title. for the
sole purpose of procuring the bonds of
such organization without consideration
and for the further purpose Of booming
a large body of lands that it had pur.
chased for that purpose, if we can Snow
that the said corporation did wrongfully
procure such bonds to be issued, and that
they we're based in part on large body
of land the title to which was still in the
United States government; If we can
show that the company referred to is the
Bear Valley Irrigation company and the
organizat referred to is the Alessandro
Irrigation district, then. in that case, we
think that we can repudiate such bonds
without impeaching our integrity in the
least.
To we'll understand the situation it will
be necessary to go back to 1888, when the
Bear Valley Land and Water company
was organized with a capital stock of
$3.50, 900.
II was a water-supplying company. and
built and owned the Bear valley dam and
reservoir and other works IN San Bernar-
dino county. This company, having
more water than it could dispose of ad-
vantageously conceived the dea of buy
ing large body OF land in this, the Ales-
sandro valley, and supplying It with
rxyak to- a,,I calls v,r kaf ffota
creased valuation to pay for the cost of
the enterprise. And for that purpose,
H. July, 1890 the Bear Valley and Ales-
s..ndro Development company was formed
with a capital stock of $500, 1000. The OBJ
iect, first. was to acquire control of the
second, to buy lands suitable for irriga-
ton; third, to deliver and distribute
Bear valley water to them; fourth to
sell lands thus improved at profit. 1t
was a. this stage of the development of
tie enterprise that the company first
ing advantage of the opportunities for
fraud and corruption offered by the
Wright act. Accordingly, in November,
$780, the Bear Valley irrigation company
was organized with capital stock OF
$4,000, 000 The new company was organ
companies which had preceded It, and
bought and owned all their franchises,
raying for them in stock of the new COM
pany This company purchased on long
time body of 81 1000 acres Of land in the
Alessandro volley, making q small first
payment and giving blanket mortgage
TO secure the back payments with view
to booming the land and selling before
the back payments would become due
In Decem Der. 1890, and January, 1891,
the Alessandro irrigation district was
formed under the Wright act, EN- braoing
Of land ot pi,O 30 Al,
company and 1890 acres of other owners
including a large body of land the title
to which was still in the United States
government. AT that time there were
only seven bona fide settlers in the dis
rict. some of whom were living on gov
yet obtained title. This looked like
pretty slim district, too slim, apparently,
to suit the taste of the Bear Valley Irrl-
Eation COM any, which had some regard
Tor the appearance OF things.
Previous to the formation of the dis
trict. however, the company began to sell
Its lands, giving contracts for deeds con-
tanning this remarkable language. After
reciting the fact that the Aiessanuro irri-
cation jistrict was in course OF forma-
lion, it goes on to say that the Bear
Valley Land and Water company has ar.
ranged TO sell water right to said irr-
cation district on basis of one inch to
Tour acres for $50 an acre. The
laid irrigation district to issue its bonds
in payment for said water right on
basis of $50 an acre." Now here lie rich
ness. With whom could such an arrange
ment have been made before the district
vas organized? How could this company
Know that public body not yet organic
ID would issue its bonds to buy water
.iphts from this particular company;
especially when the law provides that
bonds If issued at all by such organiza-
lions shall be advertised and sold to the
highest bidder. There is only one way of
,esing into the future and knowing such
ihings in such cases. and that is by the
company having already made arrange
nents to organize such district with its
Dwn voters, elect officers that would do
rts bidding ana have the bonds issued as
saw fit. The com any could Carry out
Its contracts of land sales in no other
way, and accordingly men were sent to
he valley to work to enable them to vote
IN the formation Ut the district, and the
Election was actually carried by such
rotes. A majority Of the directors elect