Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1912-08-17
MISSION CANAL
ON BUSINESS BASIS
FIRST STEP TAKEN BY ASKING
FOR RECEIVER
Necessary in Order to Finance Ex-
tensive Improvements Which Are
Being Installed to Increase Ca
pacity of Plant.
Special to the Herald.

Special to the Herald.
Houston, Tex, Aug 16--One Of
the frs steps towards placing one
of the largest irrigation PROPOSE
tions in the Lower Rio Grande Val
ley on a better business basis was
taken here today, when the Bankers
Trust company, acting in lis capac-
ity as trustee, made application fC;
the appointment of a receiver for
the properties of the Mission Canal
company Of Mission, Texas.
The application was presented by
Messrs Andrews, Ball and Street
man as attorneys for the trust COM
pany, to Judge Norman G. Kittrell
of the 61st dis rict court, who
granted the application and appoint
ed J. i. Malone Of Mission, Texas,
as received, who will qualify at once.
1t is stated that this proceeding
Is entirely friendly in character up
on the part of all parties at inter-
est, and is a step toward the reor-
ganization and more adequate fl
nancing of the irrigation end Of The
Mission property.
John J. Conway, president Of the
| Mission Canal company, and named
in the petition as one of its largest
| creditors, made the following state
ment:
THE Sapid development at Mis-
sion, especially the great increase in
the number Of farms demanding wa
ter, has made it necessary TO extend
and enlarge the capacity of the
canal properties
One of Pioneer Canals.
THE Mission Canal company was
organized at the beginning Of the
development in the Lower Rio
Grande Valley at a time when we
could not forsee many Of the prob
lens that have developed. In par
ticular the securities Of the company
are not large enough to adequately
finance, what is required in order to
furnish water to The lands now be-
ing brought under irrigation
"Also we have learned great
deal by experience as to the pro-
visions that should be embodied in
water contracts for the pro ection
both Of the canal company and OF
the farmer.
"This company has outstanding a
number Of different forms Of con
tracts and it is quite important that
all contracts should be uniform and
all consumers placed on the same
basis.
This proceeding is advised by
the attorneys as necessary for lega
and technical reasons more thar
: from any serious financial EN-
barassment
Installing Extensive improvements
: THE purpose is to adequately re
organize and finance the irrigation
/ end Of the Mission proposition, AM
s the appointment of the receiver viii
in no manner interfere either wi
" the continued operation Of the cana
: or with the improvements and addi
T" tions now being made thereon.
: 1--WE are at this time installing
I" two large forty-eight inch pump
(. and doing considerable dirt work t
!. increase the capacity and this wor
]. will be carried forward without in
:. terruption.
!, The capital stock of the presen
I. company Is only 1891 900 and it ha
]. outstanding a bonded indebtedness
:. of that amount"
N Mr.. Malone gave bond a. receive
\, in the sum Of $4,000.
-. This proceeding does no. in an
/. manner affect the Mission Land an
L. Improvement company. nor any
=. the other large companies in whiC
Mr.. Conway is interested.
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