Imperial Valley press., 1910-09-24

and operating the system and would supply all the money required, taking receivers certificates therefor. Pre- sumably Col. Holabird undertook the task because he had been led to be- lieve that the Southern Pacific would back him with it's resources and en- able him to go ahead with the pro- gram of improvement that had been mapped out by the engineers and ap- parently approved by the higher off, cers of the railroad. This program was presented to the court and the railroad attorneys tried to have it approved and resisted the efforts of other creditors to have it either re- jected or materially reduced. At that time the Southern Pacific was willing to advance all the money and take re- ceiyers certificates The proposed expenditure was reduced almost one half by the court, certificates were issued and the Southern Pacific bought them The work was done and the value of the property upon which the Southern Pacific held the mortgage was enhanced to that amount Ap- parently the railroad had not lost a cent on the operation, as the certi- ficates were believed to be first liens and the value of property to be ac- quired eventually at receivers sale was increased.
 Then came an emergency demand ing the expenditure of more money to avert serious damage if not disaster to the property. The amount re- quired was less than the sum that had been cut off the original estimate for improvements, which the Southern Pacific apparently had been willing and even eager to advance. The re- ceiver asked the railroad to take his certificates for the amount required and was told that not another dollar would be advanced. He went higher up" and was turned down coldly and 1 decisively. Why?
 We'll; if the Southern Pacific law yers had discovered that they had blundered in their method of proceed ure and that the certificates issued by the receiver were valueless, or if the keen heads of the company had made the discovery, the receivers application for further aid would have been treated just as it was treated. Morally and equitably the Southern Pacific, having taken full control of the canal system and virtu- ally dismissed the officers of the c. D. sibility, back up the receiver to the limit and protect the valley from pre- ventable injury.
 Col Holabird has been under the l impression that he was appointed re- ceiver for a bankrupt concern, given control of all it's property and busi- ness and burdened with the responsi- bility of managing it's affairs and com tinuing the delivery of water to the farmers of the valley As a matter of record fact, he was made receiver for the property mortgaged to the Trust Company and for that only. He was not made receiver of the Califor mia Development Company in insol- vency In the application for appoint ment of a receiver, 1t was not alleged in any form th;.t the company was insolvent, and the company was not placed in the hands of receiver for the benefit of all it's creditors. The action was taken by mortgagee for the protection of its own interest alone. That is one of the grounds upon which the mutual companies will resist the attempt of the receiver to raise rates. They may plead that the receiver has no authority to con- duct the business of the c. D. Co, to receive rentals or to spend It's reve- nues for any purpose, If they should be sustained in that contention, the certificates issued might be yalueless and the refusal of the Southern Pa