Imperial Valley press., 1910-09-24

Notice given by Receiver Holabird to the mutual water companies that he will no longer recognize their con- tracts with the California Develop ment Go. and that the rate for water will be raised from 50 cents to 80 cents an acre foot after October 1 has brought the situation to a head and seems to have given to the water users the jolt that was required to make them sit up and take notice of the fact that they are vitally inter- ested in the water question.
 The presidents of the mutual com panies having declined, under astute legal advice, to assent to any modifi- cation of their contract or to any in crease of rates, it remained only for the receiver to exercise what he be- lieved to be his legal authority to dis regard the contracts and to terminate relations unprofitable to the property under his control. The mutual com panies will now question his right to annul the contracts and will resist the increase of rates
 Following is the notice given by the receiver:
 NOTICE OF INCREASE. To Imperial Water Company No. -
 Conference.-The experience of the Receiver since his appointment, and the investigation and reports of his engineers have demonstrated that it is impossible to meet the expense of carrying on the system of the Cali fornia Development Company at the rates fixed by the various contracts of that company with the various con- panies, and it has, therefore, become imperative that the Receiver refuse to further assume the burden of said con- tracts.
 
 at the Receiver will henceforth de- Pr no more water under the con- eracts of the California Development
 Rnpany to the various water con- panies and will no longer recognize as binding upon him any of the obliga- tions contained in such contracts, and that on and after October 1st, 1910, water will only be sold and delivered by the Receiver to your company, and tLe other water companies, upon pay ment monthly in advance at the rate of eighty cents (S0c) per acre foot
 Respectfully yours,
 w. H. HOLABIRD,
 Receiver of the California Develop ment Company
 September 15, 1910.
 It would be foolish and unfair to blame the receiver for the condition that has been brought about by the attempts of one creditor of the c. D. Go. to protect itself at the expense of all the rest He has been forced into a difficult and probably an untenable position by the interests that caused his appointment, induced him to un- dertake an impossible task and then left him to "hold the bag" Apparent |ly he is standing with his back against bhe wall, confronted by the responsi- niIity of maintaining the canal system and delivering water and having no money with which to keep the canals in condition for the safe and sure delivery His only source of revenue is the sale of water, and he finds the water companies unwilling to provide what he needs because of contracts and agreements made prior to his appointment, which contracts he does not deem binding upon him as re- ceiyer Undoubtedly he Is acting In accordance with the advice given by his attorneys.
 Col. Holabird was appointed re- ceiver at the request of the Southern Pacific in an action brought to pro- tect that company's mortgage inter- est in the property of the c. D. Co.,, aud the appointment was generally Approved at the time because 1t was kiyen out that the Southern Pacific assumed the burden of maintaining