Imperial Valley press and the Imperial press., 1906-05-19
AN OPEN LETTER
From the Board of Directors to the
 Stockholders Of No. ,.
HoLrvr1rr, CAL, MAY l5, 1906.

perial Water Company No. letter dated Calexico, California, May 5, 1906, addressed to the stockholders of lm- perial Water Company No. and signed by II T. Cory, general manager of The California Development Company, and of The California Development Com pany's Mexican Company, wherein it is announced that it is practically certain that no agreement can be reached at this time settling the disputes existing between Imperial Water Company No. 3 and the companies represented by MT. Cory.
 The letter then proceeds to announce that Mir. Cory's companies do and al- ways have insisted upon one condition, viz the immediate and full paymen ot water rentals due hls companies (and he might have added that such insis- tence has always been, regardless ot any and all failures upon the part ot hls companies to furnish water according to their contract and regardless of the lact that the damages resulting there from may have largely exceeded all water rentals due his companies).
 The letter also informs you that all water rentals due from your company July 1, 1905, and January l, l9O6, are wholly unpaid and must be paid at once, and if not paid on or before May 20, 1906, action .(suit) will be brought to cancel, annul and set aside the con tract between this Company and the c. D. Co.'S Mexican Company, under which water has heretofore been dellv- cred to Imperial Water Company No. D for the use of its stockholders.
 The letter closes by saying that it IS sent to you that you may have an op- portunity to insist upon your Board of Directors taking care of your interests by using the money which you paid in assessments in July, 1905, and in Janu- .ary, 1906, for the purposes for which It was paid in; such money having appar- ently been used for other purposes.
 Your Board of Directors feels that such communication calls for brief reply on it's part. Such letter was the first information which this board or any of it's members had that the negoti- ations which have been pending for some time-in good faith, as we thought for a settlement of all disputes be- tween this company and the c. D. Com pany and it's Mexican Company had been broken off, or were considered nseless to pursue further, we therefore naturally feel both surprise and indig- nation that such threatening letter should have been addressed to you be- fore this Board was notified of the ter animation of pending negotiations for a settlement of all disputes.
 It is hardly necessary for us to remind the stock kholders of this Company that they bought stock in this Company from the c. D. Go. upon the represen- tations and assurances of such company and it's representatives that such stock '6nClLlSu Gu6IIl CO d CcI CdlH dLuOuub OI water at certain rental, delivered as needed upon their lands, through a suit able and satisfactory system of canals, constructed or to be constructed, with out expense to such stockholders.
 You are aware that notwithstanding such facts and such representations and assurances, the c. D. Company con structed grossly inadequate, unsuita- ble, incomplete, and almost worthless distributing canal system for this com pany; and constructed a main canal system from the Colorado River, having no means Of regulating or controlling the diversion of water from such river, or the flow of water through the canal and with no stable leyees, or suitable structures for divertng and controlling the flow of water from the Salton or Alamo riverinto the distributing canals of this company. The result was that the c. D. Co. was, during large portion of several years, unable to meet it's water delivery obligations to this company and it's stockholders, and heavy losses resulted to such stockholders from the ~ D C0mDoDV,s Gailurp tO furnish