The Greeley tribune., 1912-10-31
slit ALLEGING FRAUD
FILED ON THE LARAMIE.
P0uDRE BONDS IN EAST
Small Holders May Follow Suit if Court Sustain'
Contention---District Organized Three Years
Ago in Weld county-Money i Needed to
Complete Big Project.

united effort to protect the inter
ests Of the bondholders At large.
In the prospectus issued by Far
son, Son & company, At the instance
of the Greeley-Poudre people. the
statement IL made that "the waters
of the Laramie river, rising In the
snow ridge of tho Rocky mountains
are diverted for this purpose. the
last word refers to the statement
that this district stands preeminent
among the large irrigation enter
prises Of the country. inasmuch -
its water supply 10 constant and
flow direct"
statement Base Of Suit
It ID ON these statements, alleged
to be fradulent, that the Lebensohn
test suit 10 being brought. Tho de-
cision rendered in the United States
supreme court yesterday. to the Of
feet that the legal warfare regard
ing the divefting Of the waters OF
the Laramie river II an open matter.
subject to the supreme courts de-
cision, which. in all probability. Will
not b made for year. II further
pointed out ~ an indication Of the
fraudulent nature Of the prospectus.
G. A. Campbell Of laramie. Wyo.,
who 10 spending the winter 1t San
Jose, Cal, and who h interested In
the headwaters Of the Laramie from
q Wyoming standpoint, declares IN
. letter dated October IL that even
the tunnel which the Gfeeloy-Poudre
people partially constructed to d.
vert the Laramie waterS to their
land, u tied up with mechanics
lien and that work ON it cannot be
started again until these liens are
satisfied.
In the event Of DR.. Lebansohn
winning q favorable decision In the
local courts against the Farson
banking concern, suits aggregating
at least 100000 will be brought by
other stockholders.
The Sitaatioa Hero
The Laramie-Poudre Irrigation
district, upon which the bonds in
question were issued, was organized
in April, 1909, and comprises about
125.000 Of cultivable land. lying
north Of Pierce and between Grow
Greek and the mountains to the
west. OF tho &5,100,000 for which
tho district was bonded in October
1903, the construction company,
composed Of y. n. CAmfisaA ard
associates, was to receive $1,000
900, In exchange for the system Of
reservoirs, ditohes. tunnels, ETC.,
complete, including water rights
said to be ample to irrigAte the
lands Of the district.
Water was to b brought on the
land largely from the Laramie river
near its source in Colorado, west Of
the front range of the Rocky Noun
tains. which was to be taken from
the river near Glendayie, In jackson
county, carried BY = tunnel through
the mountains, and stored in reser-
voirs In the foothills. This was to
be augmented by waters Of the
Poudre Valley Reservoir company.
including Douglas Reservoir and
Cobb Lake. In Larimer county, In
which the construction company
had acquired about 81 per cent Of
the stock.
The construction company has
practically completed the tunnel,
and about half the construction work
on the collection bitches west OF the
mountains, McGrew reservoir il
completed ~ far a. earthwork goes,
and 10 holding water. Nearly all
the bitches in the Mum and Olive
Branch neighborhood are finished,
and the main ditch ID nearly, COM
pleted from the end of the Poudre