Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1913-04-04
PACIFIC RECLAMATION co.
RECEIVER APPOINTED

organization which has been re-
claiming a large acreage in Elko
county. New. The appointment was
made by Judge harrington of the
Nevada Federal court at Carson
last Friday on application OF Joseph
GutnIan of New York and about
thirty eastern men who through
stock. bond and note ownership
have been in control of the COM
pany.
Mr.. Bacon is required 20 file a
bond in the sun of SIC, 1000, and is
directed to take immediate posses
sion Of every asset Of the company,
which he is to Operate as a going
concern"
The Pacific Reclamation company
was organized in June 1909, for the
purpose of retaining land in Elko
county. Ten thousand acres were
segregated under the Carey act and
the intention was to increase the
amount to %. 900 acres, including
privately owned land, should the re-
CURED amount of water be deve-
loped.
After about $500 acres had been
sold last spring and the storage
works practically completed, litiga-
ton was begun by ranchers of
L.ovelOcks in an effort to prove that
the company was not entitled to
store the flood waters it had appro-
Driated. This suit stopped sales
and as a result practically ended
the ability of the company to raise
money with which to proceed with
work.
The Metropolis Improvement
company, a subsidiary company of
the Pacific. Reclamation company,
went into a receivership simultane-
ously with the parent organization.
The improvement company owns
the tUwnsite If Metropolis, includ-
ing ii MOTEL, an electric light plant,
school house and most Of the i'm
provements in the town. This re
Ownership action was brought by
the same persons and Mr.. Bacon
was also named as a receiver.
The Pacific Reclamation CON-
pany has d capital of S40O, 900. The
Improvement company has $780,
600 in stock and $500, 900 in bond S
outstanding. The RecIamtion COM
pany has $l4O. 600 in notes out
standing and the Improvement
company owes $50, 900 in notes. The
stock of both companies it is IN
derstood. was not sold hut distri.
butcd among the stockholders as a
bonus. MIR. Bacon has been con
nected with the company as its
consulting engineer from the be-
ginning and last November became
its general manager. He was pre-
ceeded as general manager by
Harold Siegel, who originated the
project. and o. c Ross.
When Mr.. Bacon was seen yes
terday.speaking unoifcially, he said
There is no one connected with
either company who does not view
with extreme regret the stern ne.
c~essity which compelled this step.
The companies have not been sub
jcct to any misfortune peculiar to
themselves, except thr action
brought by the LovelOck ranchers
affecting a part of the water rights.
Last November a reasonable basis
of compromise was reached by
which the matter could be settled
out of court upon payment by the
reclamation company Of legal cx-
penses claimed to have been incur
red by the Lovelock ranchers. The
attorneys for the Lovelock ranchcrs
unfortunately could not out work
any satisfactory details of this plan.
Another attempt at adjusting the
differences was made last week,
but when il was found that the
legal expenses which the f.ovclock
people wished compensation for had
amounted to nearly double the for
rncr sum, grave suspicious were
aroused as to just where they stood
in the matter, more especially as
no me of the LovelocK advisers
had a very clear idea of what they
would give us as settlement.
The order of the federal court
appointing a receiver expressly
authorizes him to continue business
of the company and every part