The Imperial press., 1904-08-27

development company. s1A StoWrtl Block, Los Angeles. with a view ot set. ting the differences between the Cali. iornia Development Company and tie Imperial Valley Water Uscts' Assccia- ton, which said prorn>iation IS m iol. lows, io-wit:
 "Holleuhcck Hotel, lsrs Angeles, Cal.
 August s1. l9lI Hon. A. H Hcbrr, President Calitornis Development Company, s2i Siowell Block, Los Angeles.
 Dear Sir :--
 In a conciliatory manner. and with an earnest desire Co serve tic pcoplc oi the Valley, and ai the same time he gcner- ously just with your Company, aui Tor the sake oi an immediate adjustment oi a question that has become complex with enianglemenis. Wc hereby signify our willingness, as a majority oi ihc directors of the Water Users As>OciA- uiun. to recommend e the government that ii pay you thr,c million ltS,OO0,- O01) doll~rs for you entire possessions, including all power aui power contracts on both sides oi the International line. you to retain. in addition io this, your notes. bonds and mortgages; also thirty thousand 5000 acres oi land in Mexi- co, together with water rights for the same. which the Emerson Realty Com panY is nov negotiating lle sale oi. and all the California Development Com pany's lands in the State oi California
 You are Ia retain water for itiy thousand ,5l,0l1) acres of land on the Mexican side, which includes lands which have been already sold on the Mexican side. and lands on which The Emerson Realty Company has out standing options for; In other words, A total reservation on the Mexican side of water, not exceeding t3OO,OO} Two Hundred Thousand acre feet Tor fifty thousand acres oi land, and water rental for ten years That Is. the Cali iornia Development Company has said water for Fl, 900 acres free Tor ten years. except maintenance charge.
 The California Development Com pany l. also 10 retain all issued water stocks, and the contracts for stock on all land owned by the California De- velopmeni Company, ln the State ot California. that is. you, the California Development Company, will be permit ted io carry out all your present out standing obligations that are to be paid in water stock.
 The Water Users Association will undertake 10 carry out all the contracts Of the California Development Com pAny with the different mutual water companies, for the delivery of water, and all other contracts for the delivery of water stock heretofore entered into. On the other hand, you are to pay the California Development Company's floating and bonded indebtedness, and turn over al property free and clear, including all unsold or unopiioned Mexican lands, ls-siimaied at fifty thousand l50,OD1J Acresl, easements of water ways, etc. etc. m fact all prop erty of whatsoever natCre or character owned by the California Development Company and the Mexican Company, excepting your bonds, notes, mortgages, script lands in California, which you have, and excepting voter, water rent als, and lands as hefeln-abOye specified, in the Republic of Mexico.
 Further, that out of the amount you are t0 receive from the government, you will set aside in some Los Angeles bank or banks, in escrow, two hundred and fifty thousand ts2jO .0OO} dollars to cover alleged damages for crop failures by reason of s lack oi water; said alleged damages 10 be agreed upon bY board of arbitrators, to be appointed in the