Imperial Valley press., 1908-07-04

 nouncements of decisions by Judge Wellborn in the suits brought by the California Development Company against Mutual Water Company No. of the decisions to convey a clear idea of what they are, the papers attempt to explain the relations of the cases to the water situation in Imperial Valley and make hash of the whole business. One paper, for example, says the ranchers deem the rate of 50 cents an acre foot excessive and have taken steps to secure a lower rate, which is not the case at all.
 The litigation grew out of contracts made by MT. Heber with the c. D. Co., and complications resulting from eff forts to annul those contracts but the main point at issue was the legality of the c. D. Co.'S. Thigh finance" scheme of forcing landowners and water users to pay for building the c. D. Cos. system through the device of water stock. In one suit the De- velopment Company sought a perma- nent order restraining the water com pany from selling it's own stock. The court refused to grant the injunction, though allowing complainant leave to amend. In the second suit, the De- velopment company sought an order | l,o,, ,lo: :aI. it agreed to supply water to company No. 5
 Illegal Device.
 q am satisfied" said Judge We'll born that the scheme of complainant (the California Development Com pany) included the appropriation of water from the Colorado River for sale and distribution among settlers in Imperial Valley, each settler being required before the delivery of any water to him to buy certain amount of defendants capital stock at such price as complainant might arbitra- rily fix, and, in addition thereto, to pay an annual rate of 50 cents for each acre foot of water delivered
 "The subcompanies were simply subordinate agencies organized by de- fendant for the accomplishment of said purposes, and the clauses in said contracts placing at complainant dis posal for it's sole use and benefit, the issue and location of defendants capi- tai stock, were but devices to enable complainant to exact of each settler for the right and privilege of using water at the annual rate mentioned, an additional precedent compensa- tion, under the guise of the sale of stock
 q am further satisfied that said de- vices for additional compensation are unlawful.
 "The Mexican and water companies were but subordinate agencies called into existence by complainant (the California Development Company to aid in effectuating the distribution of it's water in pursuance of a precon- | CelVeQ ScnGne, Wnlcn mNOIV6u the unlawful element of compensation in addition to established rates"
 Higher Rates Threatened.
 The Los Angeles Times quotes an unnamed official of the c. D. Co. as virtually making the threat that be- cause of the defeat in court the c. D. Go. will increase the cost of water to consumers, Another unnamed per son familiar with the affairs of the c. D. Co.," emits this roar:
 This means practically chaos for Imperial Valley development The re- lationship of all the mutual com panies to the Development Company, and the relation of thousands of indi- viduals to the mutual companies, is involved. Just how these relation ships are to be re-established is not clear. The decision wipes out all con-