Imperial Valley press., 1908-07-18
MUTUAL COMPANY DIRECTORS CONTENT WITH CONTRACTS AND OBJECT TO FIXING OF
 LAWFUL RATES.
CORY AGREES WITH COURT
Says He has Long Suspected IIIegaIity of Water Stock Contracts and Thinks Settlers Should Acquire Canal System-VaIue of Stock not Impaired by Decisions.

Of much importance to Imperial Val ley land owners was the conference held at Imperial, Wednesday, of direc- tors of the various mutual water com panies of the valley. A discussion of the general situation since the recent decisions of Judge Wellborn, in the cases of the California Development Company against the Water Company No. ,, was the main object of this gathering.
 Throughout both the forenoon and afternoon sessions many speakers eX- pressed their strong belief in the valid ity of the contracts now in force be- tween the various water companies and the California Development Com pany, and the sentiment was as strong ly expressed that the mutual water companies must uphold the value of their water stock and insist upon the necessity of it's purchase by those who would benefit by use of it's systems of distribution.
 The rate of fifty cents per acre foot, guaranteed under present contracts, is considered thoroughly satisfactory, and much opposition developed to- wards the movement which has for it's object the forcing of the county Board of Supervisors to fix an arbitrary max imum rate at which the c. D. Go. may deliver water to consumers.
 The outcome of the meeting was the adoption by unanimous vote of the following resolutions:
 Resolved, that we, the directors of Imperial Water Companies, One, Four, Five, Six and Eight, are of the opinion that the ownership of stock in mutual water companies is as essential now as at any former time, and that the values of the same will be maintained and further, that the rate of fifty cents per acre foot is entirely satis- factory"
 It was decided that each water com pany should appoint representatives to be present at the meeting of the Board of Supervisors on August 6, when the subject of fixing the water rate will come up for hearing, and that they at tempt to dissuade the supervisors from taking such step.
 If the supervisors establish the maximum water rate, it will be be- cause the law obliges them to do it, and the wishes of directors of mutual companies have nothing to do with the matter Until, and unless, contracts of the mutual companies with the c. D. Go. are rescinded action by the supervisors will not affect the rates paid by mutual companies and their stockholders.
 Judge Wellborn has expressed the opinion, in an equity proceeding, that the contracts are illegal, but he has not annul}ed the contracts. On the contrary lie refused to rescind or per init to be rescinded an illegal con- tract of No. 5's because the c. D. Go. had not offered restitution of the money received under that contract.
 Only new districts not yet having contract relations with the c. D. Co., would be affected by establishment ot legal maximum rate. Such districts may refuse to turn any of their stock over to the c. D. Co.,, and they may demand water at the fixed rate-and get it if the canals are carrying more than is required by present users.
 Now that the c. D. Go, is. deprived of revenue from the sale of water stock, probably that company would prefer to have all contracts annulled and take chances on being able to show the supervisors that a rate higher than 50 cents an acre foot is required to yield even six per cent pro ! fit on the value of its works.
 MANAGER coRY's VIEWS.