Arizona republican., 1897-11-17

tributing to the improvements will be protected. The necessity for repair work and improvement is imminent and dl1is is regarded as the best, il not the only way hlo provide for it.
 President Murphy was seen last night regarding the actions brought yesterday, and having explained their purpose, he said regarding the causes which have surrounded the company with present conditions and rendering the course just adopted necessary:
 'The greaih flood of 1891 destroyed the dam of the Arizona canal. It Oc- curreH at time when water to ma ture crops was indispensable, and the company expended about $40,000 in temporary work in order to prevent destruction to crops. Afterwards a permanent dam was constructed, which cost, together with othsr nec- essary work at the head of the canal, about $20O000. This disaster not hay ing been anticipated no provision had been made for this fund. That, with the work of development in ether di- rectioms, increased the floating in debtedness of the Arizona Improve ment company to large amount.
 Provision had been made for fund ing the Indebtedness of the companies in 1893, which was not successfully consummated by reason of the inan- cfal crisis beginning with the failure of the Australian banks, and resulting 1 in the four years succeeding depraS- i sion. During these years the com i pany has struggled to maintain it's credit and compleite the development 1 of its water system, but financial con- l ditions were against it. and it finally i became necessary to call together the i boldholders and lay the matter be- i fore them, which was dona about two months ago, and a bondholders' com mittee of five was appointed, consis-- 1 ing of Charles s. F1airchild, president l of the New York Security and Trust company of New York; w. H. Bur | rows. banker of Middletown, Conn. Morgan G. Bulkley, presid mt of the Aetna Life Insurance compa y, Hart ford, Conn; A. B. Leach, banker, of Chicago and New. York, and Andrew Crawford, attorney, of Chicago.
 ''The bondholders' committee called fer a deposit of bonds to be made with tn Q New York Security and Trust company under trust agreement, and a majority of all three issues of bonds have already been deposited, a d the trustee has been requested to apply fer appointment Of a receiver for the properties and authorize the rweceiver to issue certif- caItes in the necessary amounts to pro- vide funds for the betterment of the Arizona canal.
 "The Arizona Improvement compan y has made the best fight possible un- der adverse conditions prevailing and it is but just to here state that nc stockholder in either the Arizona I'm provement company UT the Arizona Canal company has ever received 8 dollar of dividends butt every dollal which has been received by either c1 these companies has gone into ths construction and maintenance of thi: great irrigation system.
 "A permanentI timber dam onk thousand feet in length, with rccl abutmenrs, forty miles of main chan nel with more than one hundred miles of laterals, constituting the Ar ! 1zona canal, which is connected wi.f the Grand, Mairicopa and Salt Rive Valley canals by meals of the Water power canal or Crosscurt, as it is com monly called, form the foundation O a great irrigation system.
 "The foundation is well laid, but thu superstructure has not been fully com pleted. The enterprise, however, will
 not fail, whatever may be the less tt
 the stockholders of the company
 Money will be forthcoming to com
 plete the development of the wate systems including water power, and il
 the not distant future the building o
 a reservoir to store the food water
 which now are lost.
 'The building of the Arizona cana
 doubled the area of the farming lan
 surrounding Phoenix, and the con t1emplated Improvements will agail
 largely increase the agricultural land tributary to this city,
 The suit broughtby property owner ] under the canal, however un;mportan