Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-07-28

rights Of. and the claims Of, the flrst
New Mexico Reservoir & Irritation
Company. The Improvement Com.
pany at once undertook 10 build the
i Hondo Reservoir. for the purpose 81
irrigating land on each side Of the
Hondo and as close To the reservoir
as possible: In fact 10 do exactly what
the United States government II now
undertaking 70 do.
TO raise money. the Pecos Irrigation
& Improvement Company made a
second mortgage covering all it's
property and franchises, including the
Hondo reservoir sehema to secure
an Issue o. bonds, Under both mort.
cages 100000 or bonds we're issued.
In 1888 came the panic and hard
times. and the Lake yyalon dam was
destroyed BY floods, entailing an enor.
nous loss. Things went from lad to
worse, and IN 1893 the Pecos Irrigation
4 Improvement Company failed. The
b~ondholders came to the front. Mr..
r. w. TanslIl represented the own.
|ers of the first mortgage bonds. and
MIR. +. 9, Tracy represented the own.
ers of the second mortgage bonds.
A meeting vas held early iii 1893. RE-.
presenting all interests. and 1t was
agreed that d receiver should be ap.
pointed and the company recognized
IA reorganization committee was an.
pointed by the bondholders, and d
leading. and the most active member
or III, wa Mr.. Francis q. Tracy. now
president Of the Pecos Irrigation
Company. Tho committee at once
recognized that NOT enough money
for reorganization purposes. 70 pay.
taxes, labor, and other claims prior
to the bonds. could be raised with.
out selling some Of the company's
property. The beudholders refused
10 be assessed for enough ID raise the
required sum ~ money. The feorga.
nization committee found themselves
HI Il hole, aud hal only one way To.
get out. They had only one piece Of
salahle property which could ba turn.
ed into money. The committee there
fare offered TO sell. and did sell to ..
j. llagermaIi. the northern canal and
all other property real and personal,
and NIL the rights and franchises
owned by the Pecos Irrigation Il I'm.
proyement Company In Ghayes eoun.
IN, That II 10 say, the Did company
evacuated chayss county root and
branch, ana turned over every scrap
o. property, every right, every fran.
chise. including The Hondo reservoir
site and the construction work On.
The same, which had cost about s25,
900, and tile water of the Hondo river
and IFS tributaries. TO j ]. Hagerman.
They reserved nothing This bar.
gain vas confirmed BY d decree of
The United states district court, By
the Trustees III the two mortgages.
and by every conceivable party in in
%terest.
The sale vas 10 be for part cash
and part on time. Until final pay.
meni. all the property and franchises
sold we're. as agreed, decided TO Il. S.
Motter and II II. Draper. trustees FOR
] j. Hagerman. and Tor the Felix lr.
riGatlon Company. which company
was formed "a own The northern canal
and It's franchises. The final pay
ments were soon made and Draper
and aiotter trustees decided the north
ern canal with all It's rights and fran
ehiscs. 10 the Felix Irrigation Com.
iaits hHh oil LEV UNIT pIuHiIiys
rights. ana franchises embraced In
the sale. TO j. j. Hagerman, with the
same covenants N we're contained
in the deed Of the receiver and others
70 them,
The deed OF conveyance was signed
by r. w. Tansill, receiver under auth.
GRITTY Of the United States district
court; by the trustees Of the two
classes 81 bonds by authority and di,
OF the bondholders themselves
as expressed through their re.organi-
committee; and ~ the pccos
Irrigation and Improvement Com
pany. There was not 4 dissenting
voice TO any Of these proceedings by
any party In interest. The language
81 the deed was full. and intended Ia
convey. and did convey, all the
property rights, aud franchises, own.
cd or claimed by The Pecos trrlga
lion and Improvement Company In
.hayes county.