Evening capital news. (Boise, Idaho) 1901-1927, 1912-12-16
RECEIVER TO Be
ASKED BY king
HILL C0MPAN|ES
Bond Holders Have No New
Proposition to Submit and
Trouble Will Go to the
Courts.

bondholders of both projects with the
state land board. Action to be taken
late this afternoon will probably re-
suit In the service of notice as required
by the law upon the company to COM
plete the projects and II this is not done
within the statutory time the state of
Idaho will make application for q re-
ceivership by and with the consent of
the settlers. In this way hoping to col
lect the asests left of the project and
administering them to It's betterment ms
we'll as that of the settlers at the same
time saving the credit OF the state. In
directly the receivership was proposed
by Governor HaWley. 1t was concurred
In by Arthur NJ. Bowen, representative
of the original project and probably
will be by Judge Wolfe of Mountain
Home who submitted n plan along
similar lines late this afternoon.
No Proposal From Bondholders.
The bondholders failed to present to
the board the proposal spoken of at the
last meeting a month ago by which ii
was hoped to straighten out both prof.
ects' affairs although their represen-
tative IN local attorney was before
the board. He announced he had no
proposal to submit and had not been
authorized to, and was not prepared to
lay one before the board.
Possible receiversh.p means that the
entire controversy Will have to go
through the federal or state courts, n
receiver to take charge of the projects
may be appointed and the affairs of the
company and the settlers handled
through and under his direction.
Would Forfeit Contract.
Through Arthur NJ. Bowen the set
tiers on the original King Hill phoject
made determined stand for forfeit
nre Of contract-all they said they
could do, although they had given the |
receiyership serious consideration and
believed that 1t might bring them the
relief desired In his address to the
board, covering an hour and half, Mr. |
Bowen presented the salient facts as
they exist and reviewed the history OF
the original project from the begin
ming UP to the present time. Just be-
fore finishing, he led up To and I'M |
troduced a resolution asking the state /
land board to forfeit the contract of |
the company with the state. This |
called for an answer from the COM
pany and the bondholders. The latter, I
through local attorney. protested de- |
claring that they still maintain their I
original stand that the project is COM
pleted along the lines of the plans and I
SPECIFICATIONS.
Project Not Complete. III
During his address Mr.. Bowen said
that the original contract for the ir- +
rlgation of the King Hill lands had /
been let in 1904. but the contract the
settlers now have with the company
and the one that is In effect was let
In 1908. In 1909 the company made
a contract with the King Hin extern
sion settlers, he said. for the irriga
The grounds he cited for forfeiture
not sufficient capacity to furnish for
It; the fumes and canals are defec-
tive in part. and in such condition
hat the United States probably would
not issue patent that in view Of these
and numerous other facts, cited TO
show the system was not completed as
per the contract, a statement, corrob-
grated by State Engineer Robinson,
he state land board, he said, should
forthwith notify the company that It
will forfeit the contract II has with
the state, unless within sixty days, It's
terms are complied with. and should
forfeiture be m ade, tho settlers have
-entative plans for taking over the
project and completing It
Receivership Proposal.
Governor Hawley set forth at length
his reasons why the board should pur-
sue the best policy possible In tho
handling of the problem. stating that
drastic action as forfeiture of contract
night injure the credit of the state
out. at the some time, declaring that
It is clearly the duty of the state to
stand by and take the initiative for
he settlers. 1t was during a discus
sion along this line with Mr., Bowen
hat the proposal of a receiver was
made. the state to take the Initiative in
he application, and act ON and in be-
half of the settlers.
Judge Wolfe stated that he would
submit proposition this afternoon
after the representative OF the bond
holders stated he had no plan TO sub
nit to either the settlers or the board
rhe plan or Judge Wolfe, he stated,
When the board adjourned at noon. was
long the same general lines as sug-
sested-a reeeivership. I
Resolution Presented. I
The resolution introduced by Mr.. /;
Bowen Is as follows: 5
Whereas. the state board of land ,
OF this state on the first +
lay OF May, 1908, entered into a con-
ract with the Kings Hill Irrigation &
power company, Nevada corporation. !
the said corporation agreed to |
a certain irrigation works for ,
he purpose of irrigatng and reelaim- +
ng certain lands situated in Elmore lr
state of Idaho, segregated 10
he state of Idaho, under the provis-
ons of the act Of congress, commonly s
allied the Carey act; and, 6
whereas. II was provided in said !
ontract that the said corporation /,
you'd Immediately commence the work y
+, constructing the said irrigation :
works.. and would diligently and con- ;,
insously prosecute the work of con-
49,