Mountain Home maverick. [volume] (Mountain Home, Idaho) 1906-1911, 1911-06-29

water f1Bnl nOlQeIo, mOIlbdSeeS dA-
mechanics lien claimants
From the transcript on appeal. it
appears in the complaint that on
August /. 1906. the Great Western
Beet Sugar company executed and
delivered to Henry Hewitt. Jr., four
promissory notes. each for $3.50,
two of which were due and payable
one year after that date. one due
in 18 months and the other due in
two years. all bearing interest at 10
per cent per annum from that date
until paid.
On November 2. 1905, the COM
pany executed two more promissory
notes. each for $4,000, one due in
year, the other in f8 months, with
interest at 10 per cent till paid.
On January 30. 1907, the COM
pany executed two more promissory
notes one for $4,000 due in one
year. and another for $4,000, due
In 8 months. each bearing interest
at / 0 per cent until paid.
In order TO secure payment on all
of these notes, with interest. the
company on January 80. 1907. ex-
ecuted a MORTGAGE on the High
Prairie reservoir and right of way
therefor. intended for storage of wa
ters of Lime creek, also the Camas
reservoir. Long Tom eservoir, the
company's interest in the Mountain
Home reservoir, situated on Rattle
snake creek. and all connecting can
ais. bitches and laterals in the ir-
rigation system
1t is alleged that the Great eWst-
ern Beet Sugar company has not
made the payments, is wholly insol-
vent and without means or money
with which to pay its obligations
The plaintiff AYERS that since the
execution and recording of the mort
gage, the property and assets Of the
company have been carelessly and
improvidently managed. and the
company has pretended to convey a
large number of water rights from
the reservoir system. upon which
the plaintiffs motgage was a first
and prior Lien, and that the Nancy
realized from the sale of water
rights has been wrongfully and i'm
properly expended or used by GER
tain officers of the company in the
exploitation of certain private en-
terprises and in such manner as to
not materially aid or increase the as
sets of the company, but in man
ner that tended to and did deplete
and greatly impair those assets, and
particularly the security afforded
by the mortgage.
1t is claimed that these water
rights were sold without the know
ledge or consent of Hewitt, and were
taken by the purchasers subjetc to
the lien of the mortgage.
It is urged that by reason Of the
wasteful palicies pursued by the
company and the improvident man
ner in which the funds have been
expended, and the improper use
thereof by the officers of the COM
pany. the property is insufficient to
discharge the mprtghge debt.
One of the most serious compli-
cations lies in the fact that iscom-
plete and insufficient books of ac-
count and of the condition and sta
tus of the company have been kept,
and 1t is impossible to ascertain
from the records and books of the
company, except after a long and ex-
haustive examination of the books
and the county records, the amount
of water rights that have been sold
by the company, or what has been
received from such sales, or what
has become of the proceeds of such
sales.
It IS alleged that the Great West
ern Beet Sugar company has con-
tinued up to the present time to sell
or execute deeds for water rights and
contract for the sale of the same,
but has failed to apply any OF the
proceeds upon the payment due.
The coura is asked to enjoin the
company from selling any more wa
ter rights and that receiver be ap-
pointed to take possession of the
property. including the books or ac-
counts of records, and other papers,
documents and instruments pertain
ing to the affairs of the company.
On October 7. 1910, the case came
up for hearing in the Fourth district
court of Elmore county before Judge
f. A. Walters. and the findings and
conclusions of law show that Wal
ters held that the water rights are
prior to the mortgage.
Appeal is taken from his 1udg-
ment.