Rogue River courier. (Grants Pass, Or.) 1886-1927, 1912-03-08
CONSPIRACY TO DEPRESS LAND
PRICES is HINTED.
GEO. S0RANSON APPOINTED
Local Claims Against the Company
Amount to approximately
$4,000.

The Chicago-Rogue River company
was put into the hands of receiver +
late Monday afternoon at Ashland .
by Judge +. NJ. Callxins of the
circuit court of Oregon for Josephine |
county on application last evening of
local creditors of the company.
George W. Soranson, who was for
merly United States postal inspec-
tor handling fraud cases, has been
appointed receiver to clear up the
financial muddle.
The creditors allege criminal con-
spiracy to depress values and an at
tempt to get the property for a cheap
figure.
The main office of the company is
in Chicago. A. j. Witherall of the
Chicago Solder company, is president,
and p, Phillip, of the p. Phillip Bank,
Chicago, is the treasurer. &C. NJ. Leon
ard, of the Leonard Construction Co.,
of Portland, Or, and Chicago; P.
Phillip and A. j. Witherall comprise
the executive committee of the board
of directors.
About four hundred Chicago stock
holders, with cash investment of
approximately 100000 are involved.
There are about $1,00O,0O0 involved,
as the company owns the irrigation
right of Rogue river and power
plant near Grants Pass, costing ap-
proximately $260,000, which is con-
nected with system of irrigation
bitches under construction. The COM
pany controls directly and indirectly
about 1000 acres of orchard lands.
The claims against the company
amount to about 100000. 1t is al
legged that the directors refuse to pay
the accounts, hence the operating Of
fee has been entirely without funds
for over two months. 1t is further
alleged that C. NJ. Leonard, associated
with P. Phillip and R. B. Slaughter,
of the Chicago banking house of A.
o. Slaughter & Co.. owes the COM
pany, approximately, $4,000 under
a contract to finance the company,
and that none of this money is being
made available. The creditors have
asked the court for an order permit
ting the receiver to force collection,
and it is understood that personal
suits will be instituted.
The entire community here is in
dignant because they allege they have
proof that the money is withheld for
the purpose of depressing land values
and that these men are taking advan-
tage of it by buying land, and have
already purchased about $500 acres
of land at panic prices, as the land
owners are entirely dependent on the
company for irrigation, and all work
on the system was suspended last No
vember. Mr.. Leonard is alleged tt
have caused the local office to give
out that no construction work woult
be done this year, and to buy all thu
cheap land to come under the bitches
It is alleged that the officers ant
directors of the company pledged loca
business men and the Commercial
club to do certain things this year
Messrs. Leonard, Phillip and Slaugh
ter visited the valley the first part o
February and it was only after thel
visit the people realized their predica
ment While here pledges were mad
to business men that the account
would be Immediately paid, bu
failure to keep these pledges partici
pated the receivership.
A subsidiary company of The Chi
cago-Rogue River company owns tn
power plant, and it has been in tn
hands Of a receiver appointed out q
the same court about two years ag
after a food seriously injured n
property. The officers and director
Of the Chicago-Rogue River compan
got court order permitting them
repair the dam, the parties agreein