The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-03-16
CHARGES FRAUD IN
IRRIGATED LANDS
Continued from Rsas one

propriating thousands of dollars OF the
company's funds to themselves.
A iong history of the formation and
conduct of the two irrigation schemes
Is given by Mr.. BURNER, though he says
many of the facts which he alleges are
gained not through official sources: as
he cannot obtain accurate information.
He demands that the directors OF both
companies be forced to make an account
ing for the handling of funds during the
last few years
Borrowed from State.
The Irrigated Lands company borrowed
$4,000 from the state OF Utah, through
the land board, In 1907, and Burtner
charges that S90,000 of this Is now ow-
ing. In addition to this. he says, the
company owes Charles Tying, $4,000; the
State Bank of Utah, Sl5,cOo; John Y.
Smith, 5000; the Melville CONSTRUCTION
company, ID. NJ. Landreth, Van ID. Spai-
ding and others, various sums, agere-
eating s97 900, outside of the debt 10 the
state of $4,000. 1t is declared that the
company is now insolyent and that there
is practically nothing as an asset with
which to meet the debts, which have
mounted up to nearly 100000.
Directors Of the company levied an as
sessment OF 81 per share on the outstanu-
ing capital stock. for the purpose OF
lquidating the claims against the COM
pany. Mr.. BURNER says stock upon
which the assessment is not paid became
delinquent after March 10. and will be
sold at public auction on March 81, II the
money is not paid. He claims this to be
vicious on the part OF the directors ana
asks that they be restrained from carry
ing out their purpose. The directors
named in the complaint own all OF the
outstanding capital stock but Liz shaI res
BURNER says, and that because OF the
mismanagement of the affairs OF the
company there is no present market for
the stock.
Owns Stock in offshoot.
The principal asset of the Irrigated
Lands company is 7,04S shares of stock
OF the Price River Irrigating company,
BURNER claims. and this will soon pass
from the parent concern IL the court d.
lows the directors to declare the stock
to be sold for failure to pay the assess
ments. 1t is declared the company is
absolutely without funds" with the eN-
ceptiOn of the market value of the Rrlce
concern, which was an Offshoot OF the
Irrigated Lands company and controlled
by the same men.
During the last three or four years
more than 5000 600 has been spent on the
Irrigated Lands eompany's project in
Carbon county, near Price. it is claimed,
and the big four composed OF Jcnn
Y. Smith, Thomas Austin, George A;
Smith and Charles Tying, have conspired
TO maintain control and defraud the
company and stockholders.
1t is asserted that the directors of the
company claim 10 bring suit sgaInst the
stockholders of the company to collect
the 81 assessment instead of selling the
stock by auction. 1t is also declared that
The directors have threatened to con-
tinue leVying the asse ssments, though
thers is no market for the stock at the
present time.
Early in the history of the Irrigated
Lands company, the complaint shows.
the Price River ITrigating company was
formed, guided by practically the same
men as were then directors Of the par
ent company. Stock in the Price project
was issued practically without cost, it is
claimed, and later most of the Irrigated
Lands company holdings In Carbon eoun-