The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1913-11-18
LOST RIVER
CASE DECIDED
Circuit Court Of Appeals Affirrns
Judge Dietrich
PRESIDENT COMING THIS WEEK
TO TALK WITH LAND BOARD.
Contractors Have Made Financial
Arrangements; Sale to Be Con.
Quoted.

Practically all obstacles to the COM
pletion of the Big Lost River irriga-
tiOn project were removed Monday,
when word was received here by wire
that the United States court of appeals
at San Francisco had handed down a
decision in the litigation which has in
volved the project since 1910.
The court Of appeals upholds Judge
Dietrich of the Idaho district of the
United States district court, who ruled
In favor of the mechanics lien of the
Corey Bros. Construction company, en-
tered judgment Of approximately
,$650,000 in favor of that concern, and
ordered receivers sale to satisfy it,
There is little chance of an appeal be-
ing taken from the decision OF the
court of appeals, and it is believed the
project will now be reorganized and
completed without loss of time
The Big Lost River project was TAX
en- over by G. s. Speer, vice president
of the Trowbridge & Niver company of
Chicago, in 1909. He made the con-
tract with the state land board and or
ganized the Big Lost River Land & IT.
rigation company. He also organized
the Western Loan & Mortgage COM
pany, which he owned The Western
Loan & Mortgage company in turn
owned all but five shares of the Big
Lost River company's stock. The Big
Lost River company was incorporated
for 100000 shares at 81 each.
Speer paid the old Lost River COM
pany $170.000 for the project. He is
sued 1.378,500 of first mortgage bonds
against it and 100000 of second mort
gage bonds. Only 100000 of the sec
ond mortgage bonds are outstanding.
The contract for the building Of the
irrigation system was let to the Corey
company. The contractors have been
paid about $1,O00,0O0. At the time
Trowbridge & Niver became financial
company owed the Corey company
$525,000. That with interest and costs
makes the judgment about $650,0OO.
The Coreys filed their mechanics
lien in August, 1909. They did not
undertake to foreclose on it, however,
until all attempts to refinance the pro-
ject had failed. When they did at
tempt to foreclose the bondholders'
committee, headed by H. B. Riley,
president of the Chicago Title & Trust
company and the Continental & Com
mercial Savingss& & Trust company, in
tervened and contested the right of
the construction company to foreclose.
The evidence was taken before re-
fierce, and afterward the case was ar
gued before Judge Dietrich. On De-
cember 27, 1918, he entered decree in
favor of the Corey Bros. An appeal
was taken and the case argued before
the court of appeals May IA of this
year. That court now decides the
case, upholding Judge Dietrich.
More than $1,000.000 has been spent
In actual construction on the Big Lost
River project. OF this amount $780,
900 was spent on the Mackay dam. All
the main canals and nearly all the la
terals have been completed. Water is
now being delivered on approximately
$500 acres of the 100000 included in
the jfoject's area.
It is estimated that 1t will take ST.
100000 to complete the project. The
ework already done Is said to have
stood up we'll, but nevertheless great
deal of repair work must be done, and
the dam reconstructed under revised
plan that will add greatly to the cost
of the structure.
The project will be sold to satisfy
the Corey Bros. judgment. The date
has not yet been fixed. but the sale
will probably be held within the next
so days. J. E. Clinton. jr, the receiv-
er, will act as master of the sale.
1t Is understood that w. w. Corey.
president Of the Corey Brothers Con-
struction company, accompanied by
Judge Henderson, his attorney, will
be here this week to go over the mat
ter with the state land board, and dis
cuss plans for the reorganization and
rehabilitation Of the project
The principal part of the work will
probably be completed In 1914. It is
understood that the Corey Brothers
have made tentative financial ar
rangements.