Imperial Valley press and the Imperial press., 1906-05-19


 the c. D. Company entered into con tract with this Company dated May l6, 1905 Commonly known as the Heber contracD by which all contro- versies and disputes between the two companies were settled and, as we thought, finally disposed of. By this contract, all the unissued capital stock of this company, which the c. D. Com pany then claimed to own Cess about 5.000 shares) was given to this company, aggregatng about 60, ,0O0 shares. In con sideration of which, this company agreed to accept it's distributing canal system as it was, and to improve and perfect it, as needed, at it's own expense, and to settle with such stock all damage claims of it's stockholders for past water short age, etc The contract also fixed the amount of money due the c. D. @Om- pany January 1, 1905, for water rentals at $6l64.79 and provided that a draft for $l0,000.00 should be drawn by the c. D. Company in favor of A. II. Heber, and accepted by this company, payable January 10, 1905, which should be in full payment for the said sum of $6l64.79, and in part payment of the water rentals falling due July 1, 1905. This draft was given and accepted, and be- fore it's maturity. the money was de- posted for it's payment, and remained on deposit for many months in the First National Bank of Los Angeles, with instructions to pay such draft whenever presented, and an actual tender of the amount of such draft was made to treasurer of the c. D. Com pany, and surrender of the draft de- manded. This tender was refused, and such draft has never been presented for payment. Tn the meantime, during the month of June, 1905, change occurred in the management of the c. D. Com pany; the Southern Pacific Railroad Company having advanced to the c. D. Company large sum of money, pro- cured the management of such company to be turned over to it until such time as it's loan was repaid. Thereupon, a board of directors of the c. D. Company selrcted by the Southern Pacific Com pany was elected, and Mir. Epes Ran dolph was made president and general manager thereof.
 MT. Randolph, on behalf of the board of directors, notified this company in writing, in the month of July, 1905, that his company repudiated the Heber con- tract of May 16, 1905, and would not be governed thereby. MT. Randolph was promptly informed by this iscompany ,act- ing through it's president, that we con sidered the Heber contract both legal and binding, and a fair and equitable adjustment of the differences existing between this Company and the c. D. Company and that the board of direct ors of this company would recognize no other contract with the c. D. Company.
 The water rental payment called for by the Heber contract, viz: the payment of the $l0, ,000 draft, was promptly ten dered by this company, and rejected by the c. D. Company. and the board of directors of this company has at all times been ready to fully comply with all the terms of such contract, including the payment of all water rentals, as they became due but the c. D. Com pany's refusal to accept payment of such draft, taken in connection with it's writ ten notification of its repudiation of such contract, has certainly justified the board of directors of this company in withholding from the D. Company all water rentals to which they were only equitably entitled when they had repaid to this company and it's stockholders all losses sustained by the stockholders of this company, on account of the c. D. Company's failure to furnish water, as agreed upon ir the past, and for it's failure to provide a proper canal system for this company.
 One thing seemed certain to the board of directors of this company, viz: that if the Helper contract did not stand, then the c. D. Company owed this company