Evening capital news. (Boise, Idaho) 1901-1927, 1912-11-16

lHe MOTH SlOe lWIu rails lTElS&-
ton project case was seriously con-
sidered this afternoon by the state land
board with a view Of reaching a var
dict. 1t occupied the attention Of the
board practically al of yesterday az
ternoon. The settlers urged, through
their attorney Victor o. Johnson, can
collation. Of the contract. The COM
pany. through s. H. Hays, fought this
application and asked the boards per-
mission to use Jackson Lake reservoir
in which to store water. and time in
which to provide for the additional
storage. Both attorneys argued be-
fore the board. Governor Hawley sub
mitted communication in which he
gave his views on the controversy and
made recommendations. The board
attempted to reach an agreement later
but failed and adjourned over to
o'clock this afternoon.
The communication submitted by the
governor and read by him to the board
IL as follows:
Issue Is Serious Ono.
"A serious condition confronts the
land board. We have reached a point
in the history of the North Side tract
such as occasionally will confront the
board in the consideration of Carey act
projects.
1.-The contract between the state and
the Twin Falls North Side company
limits the time in which the enterprise
must be completed. Forfeiture, In my
opinion, can be declared by the board
whenever the time limit has been
reached and n substantial compliance
with the terms Of the contract has not
been had. A forfeiture however, so
declared, would mean not the ending Of
the troubles between the contending
parties, but the beginning of troubles
OF far greater magnitude as the mat
ters involved would then necessarily
be transferred to the courts. The eff
feet declared forfeiture would have
on the intervening rights Of interested
third parties, who have furnished the
money to carry On the.irrigation works
and secured such liability by mortgage
or other liens, would be the subject
OF adjudication by the higher legal
tribunes. The effect, however, of the
forfeiture would be far more serious
upon the state. as such action might
be urged as q reason why capital
should not be invested in other pro-
board Is necessarily concerned, al
though our main duty involves prnci-
pally the consideration Of the relations
between the settlers, who are COM
plainants in this hearing, and the COM
pany. herein made defendant. 1t is
impossible. however. for US in this
hearing to consider the relative rights
of any excepting the present contend
ing parties. While it may not be nee
essary for US to consider such rights.
We must take them into consideration
even II we believe they can be deter.
mined later and in another tribunal.
Considers Settlers First.
I'm the great Carey act enterprises
OF this state, in which the North Side
tract. composed as it is Of three seq
regations of land but constituting q
unit for all practical purposes, is one
OF the largest, there are three classes
Of people vitality interested and those
interested may become antagonistic at
any time. These are the settlers upon
the land, the bondholders who provide
the means to carry on the works, and
the promoters who originated the idea
and realize the profits when there are
any. The United States and the state
Of Idaho are also parties, but in an
other and different sense than that of
actual financial interest My views
upon the relative relations of these In
terested parties to the state, / ex-
pressed fully while addressing a con-
ference in Chicago in May, 1911, Of
leading bankers and financiers of the
country who are interested in irriga-
ton matters. IWtated that, in consid-
ering the differences between interest
ed parties in Carey act matters, 1 per-
sonally felt. and believed I reflected
the views of other members OF the land
board. that the first consideration was
due to the settlers. our second duty
was to the bondholders and our last
and least obligation was to the pro-
meters. In this doctrine still firmly
believe.
TN the project under consideration,
the settlers in good faith and relying
on the contracts between the state and
the company, and the promises and
agreements made by the company to
them purchased the land and since