The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-03-12
Injunction Suit of the Irvine
Company Dismissed
is NOT A FEDERAL CASE
The Decision Will Make James Irvine
q Defendant
An Action Involving the Water Rights
to the Santiago Creek In
Orange County

The suit Of the Irvine Company against
John Bond and many other property
owners of Orange county was dismissed
yesterday by United States Circuit Judge
Ross.
The Irvine Company claimed rights to
the waters Of the Santiago creek and asked
the Federal Court for an injunction en-
joining the defendants from interfering
with the water. dams, bitches and fumes.
The assumption of the company's right
to the water was based upon its owner
ship OF the Rancho Tomas de Santiago,
containing $4,000 acres, and adjoining
tract of 1900 acres in the Rancho Santi-
ago de Santa Ana, through which the
Santiago creek has its natural channel.
the state of West Virginia in June, 1894.
in consequence of which the plaintiff
brought its action in the federal instead
OF the state courts. In answer to the
prayer of the company the defendants
alleged that the incorporation OF the con.
Germ was merely blind, and that it had
no real interest in the action. The real
county interested in the case said, was
James Irvine, wealthy resident of that
section, who had made fictitious convey
ance of his interest to the Irvine Com
pany, so-called, for the purpose OF pre-
venting the Superior Court OF Orange
county from adjudicating the matter.
They alleged in support of their asser-
tions that the Irvine Company had been
incorporated in West Virginia at the in
stance of Mr.. Irvine, with a subscribed
capital stock of only $500, of which but
$50 was paid up at the time that Irvine's
conveyance of his title to the ranches in
Orange county, worth at least ", OOO, OOO,
was made to the company. The incor-
porators of the Irvine Company were five
Young men without means, influence or
the ability to manage property OF such
vast proportions. And as matter OF
fact according to the defendants version,
they were not required to do anything, as
James Irvine and his attorney attended
to all the business, as OF yore. The rea-
son of the incorporation was for the sole
purpose of giving the United States Court
an apparent jurisdiction.
Mr. Irvine was aware that the present
defendants intended to bring an action
to quiet title against him, and to enJoin
him from diverting the waters OF the
creek. In order to avoid the service OF
the summons and temporary injunction,
Irvine ran away, and when John s. Bond
and the other property owners began
their suit in July, 1894, he could not be
found. AS soon, however, as he had per-
fected the arrangements by which he be-
ton of the Federal Court, he returned.
Judge Ross, accepting the matter which
the defendants in the action alleged to be
true, said that SUIT ought to be dismissed
for want of jurisdiction. j..
1.-The Federal Courts we're instituted
for the purpsoe of taking jurisdiction Of
and deciding all cases and proceedings
that truly and fairly come within the jur-
isdiction conferred upon them. But is
equally their duty to dismiss from their
portals all of those surreptitiously
brought into them. Here was dispute
between citizens and residents OF Califor-
MIA, concerning the ownership of prop
to be brought in the proper court OF the
state to determine the controversy, when
one of the parties to it slips off to dis
tant state, procures to be organized under
the laws of that state a corporation, with
a capital stock of only five hundred dol
lars, with a paid-up capital OF only nifty
dollars, with directorate composed OF
young men of very limited means and
without business ability, one OF whom is
his own attorney, to which he proceeds
to execute a conveyance purporting to con-
vey property of the value of two millions
OF dollars; and that, too, with actual
knowledge on his part, as well as that OF
commencement, on the preceding 10th
day of July, in the state court, of the
Heretofore contemplated suit to deter
mine the conflicting claims to the waters
in controversy. And then, with the
pretended grantor remaining in posses
sion and control of the whole property,
the pretended grantee, with the same at
torney based upon the ground that it is
a citizen and resident OF another state
and the absolute and bona fide owner by
virtue of the conveyance so executed, OF
property worth two millions OF dollars,
invokes the jurisdiction of this court to
determine the existing controversy con-
corning the waters in question. The bare
statement of the case is enough to show
that the transfer from James Irvine to
the complainant corporation was fictitious
and colorado merely, and that James IT.
ne in truth remains the real owner of
the property intended to be conveyed by
the conveyance to the complainant. No
such hocus-pocus arrangement should be
tolerated by court of justice"
Now the case will be tried in the Super
ior Court, with the present defendants as
plaintiff and James Irvine as defendant.