The Glenwood post., 1909-05-08

last Monday and after every phase Of
the case had been thoroughly discuss
ed Judge Shumate sustained the in:
junction.
This was a case brought by certain
stockholders who sought to prevent
the board of directors from entering
into a certain contract, with the Ant
lers Orchard Development company TO,
the sale of stock in the irrigation sys
tenn of the Farmers company.
There has been issued by this COM
pany to its stockholders, principally
farmers who have lived in the neigh
borhood of Antlers for many years,
1862 shares of the capital stock Of the
said company. The directors of tho
company had made proposition to
H. X. Devereux, and associates con-
stituting the Antlers Orchard Devel-
opment company, to sell the latter
company 5000 shares of stock for $780,
900 this money to be used to pay the
present Indebtedness of the Farmers
company, amounting to about $4,000
and to use the balance, or so much as
might be needed, in enlarging and I'M
proving the present ditch and reser-
voir. The remaining 313S shares to
be divided pro rata among the present
stockholders Of the Farmers company.
The development company was also to
have one-half of one cubic foot OF
water during the year 1909.
The testimony given at the hearing
last Friday proved very clearly that
the system as it now exists and has
existed for several years, is mere
makeshift, and of little use to anyone
and that it has been depreciating rap
idly, True, some work has been done
on the ditch this year to increase its
carrying capacity-but that was not
matter of evidence. The ditch from
Rifle creek last year carried about
seven second feet of water.
The contention of the plaintiffs was
that there is not now enough water
available to supply the needs OF tue
present holders of 1862 shares of the
stock, and they claimed that II tue
plans contemplated by the board were
carried out the old settlers woui1
have to "walk out of the country,
as they expressed it.
They seemed to lose sight of tho tact
tha. the 100000 to be paid by the
Development company was to be nsea
in enlarging both tho storage reseF-
yoir amt the feeder ditch, and that in
this way the quantities of water avail
able would be many times increased.
While the plaintiffs did not specific-
ally allege bad faith or collusion with
the Development company, there was
an air of suspicion noticeable on the
part of the plaintiffs and one OF
them openly alleged his belief that
there was bad faith. However, the
evidence did not disclose the slightest
ground for such belief.
The directors include the heaviest
stockholders of the company, and from
their testimony of these men it was
plain that they were honest in the be-
lief that they were acting in the IN
terest Of every stockholder in the COM
oany.
1t ia inconceivable how such men as
E. A. Fleming, A. Cohn, W. 8. Park
and R. F. Bowles would act in such 4
way as to jeopardise their own inter
eat. which are among the largest IN
the valley.
The decision of Judge Shumate sus-
tains the temporary injunction until
the final hearing, on the ground tina.
the distribution of the 313s shares OF
stock to the present stockholders ID IN
the nature of dividend which the d.
rectors had not tho right to declare
that to grant the Development com
many one half a foot of water during
the present year meant he taking OIL
that much from the present stock
holders when the evidence sho"eu
there was not now enough to 60 round
and because the contract called for
the delivery of the 5000 shares OF
stock to the Development company
at the time Of the signing OF the
contract when the judge thought THIS
stock should be issued to the company
only after the work had been done or
placed in escrow and delivered IN IN
stallments as the work progressed.
Judge shumate made it clear that
the board Of directors have right to
sell the stock of the company. He 'i-
80 said he could not see why the peo-
pie in the valley were fighting COM
pany which Offered to put in money
and build up and make effective a sys-
,,h;,h hoa laan n failure for years.