The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-10-29

| clared and paid dividends amounting to
s5S0, 672 so without any opposition from you:
Sixth--ls it true, or is 1t not true, that you
| as a director and general manager sane
toned and approved the publication and dis
tribution of the circular signed by Charles
| 70, 1891, which declared that the Bear Val
ley Irrigation company had securities in it's
| dividend fund amounting to nearly 81 &c.,
0C0 that could be realized on readily as
needed for dividends, and that the company
would in the future pay 10 per cent annual
lion dollars, and that this rate could be
maintained continuously, and that the pur-
chasers of this stock were getting an excep-
tional investment, combining the two ele..
ments of absolute safety with high rate of
regular dividends?
| on March |, 1892, while you were director,
the head OF the financial department and the
general manager of the Bear Valley Irriga
ton company, you issued a circular in the
form Of a report to the stockholders of the
Bear Valley Irrigation company, signed by
which you stated that "the income of the
| company has been so exceptionally large
| that ample provision could be made for the
payment of regular dividends upon the pre-
ferred stock of 8 per cent and upon the
common stock of 10 per cent annually" and
did not such circular also state that "the
water supply which this company has at
present acquired is sufficient for the ultimate
| irrigation of 100000 acres, allowing for sue
cesson of dry years?
Eighth-Is it not true, as q matter of
fact. that the Bear Valley Irrigation COM
pany never had and has not now water
enough to irrigate 10000 acres of land:,
largely distributed among intending pur-
chasers of Bear Valley Irrigation company
stock in the east and in Europe, and was
| not about 81 900 900 Of stock sold on the
strength Of the statements and representa-
| tons contained in such circulars!
| Tenth--Is it, or is it not, true that in 1894
the Bear Valley Irrigation company went in,
! to the hands of receiver, and the stock OF
the company, which under your manage:
mcnt had been placed on the market and
sold from par to !slG0 per share, and had
Welded 81 100000 in cash to the company,
was not worth cent per share?
Eleventh-Is it, or is it not true. that the
receiver found instead of dividend of near
| ~ 81 800, 600, as stated in Mr.. Greene's cir
| GUAR that the company owed over 81 200,
900, and that it would require 100000 ad-
ditional to enable it to live up to existing
contracts, and that the annual expenses Of
| the company exceeded its actual revenue
over Sal 0G0?
Twefth-Ts it not true that the actual in
come earned t.y the Bear Valley Irrigation
company during the year and half in which
it paid over to its stockholders over $780,
tual running expenses of the company dur
ing such period?
Thirteenth-1t is claimed that on the
books of the Bear Valley Irrigation company
you appear to have been the owner Of but
one share of the stock of such company.
Is 81 i not true that none OF the DIR. directors
share of such stock, but were they not stock
holders in other companies that did own
such stock?
Fourteenth-The control of the stock Of
the Bear Valley Irrigation company was