Arizona republican., 1906-03-31

their acquisition for the shareholders of the association. After consulting with Mir. Geo. D. Christy, one of the board of governors, and with Judge kibbey, the legal adviser of the asso- ciation, l was confirmed in my opin- ion l went to Washington and to New York and met the men who control these properties, and after tedious ne gotiations obtained an agreement for the sale of the canals to the associa- tion. Any attempt to detail those ne- gotiations would be futile in a letter of this kind. It is sufficient to say that Judge Hiram R. Steele, represent ing the water companies, and I as your representative, agreed: the companies to sell and the association to buy the canals. No price was fixed and none even remotely agreed upon. The price. was to be fixed by the board of ex- perts to be appointed by the secretary of the Interior 1t was further agreed that the water companies should i'm mediately, at their own cost, but under the immediate supervision of the gov ernment engineers, repair the works and make them sufficient to supply water to the farmers. It was agreed that this cost, to be ascertained and estimated by the government engineers, was to be added to the purchase prtee of the canals. to be fixed by the conI- mission of experts.
 This agreement was signed, subject of course, to ratification by the water companies and by this association for which MT. Steele and I were acting respectively. When the agreement was submitted to the secretary of the In terior, he, after careful consideration. suggested another plan. This agree ment was reduced to writing, and 4 copy of it is on file with your secre- tary where it has been. open to your inspection, since June of last year.
 It is of this contract. as I understand it, that some criticisms have been made because I assented to a schedule of properties to be purchased from the water companies. to which no valuu- tions or prices were attached in the letter to the secretary of the Interior. but which I was reliably informed was carried on the books of the companies at a value of about s9Go,000. I had no means of knowing what was the act ual value. nor did I agree to any price whatever. I was not an engineer and therefore not an expert, and had, moreover. no opportunity to have an experts opinion or estimate. But I may say this, that in discussions with Judge Steele, I repeatedly told him that we would not give $S00,000 or $700, ,000, or s6e0.000. or even $500, ,000-these my statements being elicited by Judge Steele or some of his associates when discussing what amount might prob ably be realized for the bondhoiders. never fixed an amount the people would be willing to give but did dis tinctly state that I was sure they nj. ,cfo 0,.- give even half of the bonded indebted ness, which was roughly estimated at $900 00O-my statements relative to these matters were always in the neg ative.
 Acting upon the suggestion of the secretary of the Interior, Judge Steele and I then addressed him a joint note asking him to appoint commission to appraise the property or the north side of the river owned and coctrolIed by the Arizona Water company, with view to the purchase of those proper ties by the government. To this the secretary agreed, on condition howev- er that such action should not bind the government to purchase. Under this letter the commission. which final iy appraised the property, was ap- pointed.
 When I submitted this plan to your i board of governors June 19, that body approved what I had done, but as precaution caused a letter. framed by your legal adviser and dated June 26, to be sent to the department expressive of its views of what constituted the property of the water company. This letter was signed and mailed July 4. Continued on Page 10.