Imperial Valley press., 1913-03-10
ARGUMENTS ON BONUSES
FOR WATER IN COURT

There was lively discussion in the
on the priprcty of serving water to
new mutual companies without The
payment for water rights.
The outsider who does not realize
that this discussion pertains to land
not YET irrigated. and not to the land
under cultivation. might not get good
impression of the conditions in the
valley from reading it. and this fact
was not made clear in the reports IN
the Los Angeles newspapers. Follow
ing is the account as it appeared in the
Los Angeles Times:
The prosperity and happiness of
5000 persons in the great Imperial
valley hangs upon the outcome of a
case argued yesterday before Judge
COnrey in the superior court and left
with him for final decision. The re
suit of the litigation will determine
whether 200. 900 acres of desert land,
or ffths of the valley not now
supplied. will have water for irrigation
and blossom as the rose.
The action in which So much is i'll
Nolved appears on the court records
simply a. an application for an order
authorizing Colonel Holabrd, receiver
for the California Development Com
pany. to make contracts to furnish
water to three irrigation companies,
the Imperial South Side Water Com
pany. Imperial Wafer Company No. ,
and the East Side Water Company.
The proposed action of the receiver
to supply these companies at the rate
of so cents an acre foot on perpetual
contracts is vigorously opposed by
powerful creditors Of the California
Development Company, who urged
through their attorneys that in addi-
ton to this charge the receiver should
exact a bonus of S25 an acre from the
companies and that the time Of the
contracts be limited to the life Of the
receivership.
Attorneys representing the majority
Of the 1900 families interested insist
that the settlers cannot bear the bur-
den of paying S25 an acre and they
affirm that it is necessary for the
perpetual time element to be included
in the contracts with the water COM
Fany 50 that they can obtain title 10
their lands. The government refuses
to issue patents to desert claims where
the entryman cannot show a perpetual
right to irrigation water.
1t is charged by the receiver and
his attorney and by the various attor-
neys representing the interests of The
settlers that the creditors are seeking
to exact the S25 bonus so as to create
Immediately fund with which to pay
off the debts of the development COM
pany and that the long time leases are
opposed on the ground that if they are
granted they will lower the selling
price Of the holdings of the great irri-
CATION concern which is now on the
market by order of the court.
Attorney Luther G. Brown. repre-
Sentin" The entrymen IN the northern
part of the valley and The owners Of
10000 acres Of patented land in that
district and the attorneys representing
the settlers in other localities main
lain that the following onditiOns would
result from the adoption of the bonus
policy:
1. That the government entrymen
will not pay a bonus.
2. That the railroad lands will no.
be sold at the present prices.
3. That no money will be received
by the California Development Com
pany on account of bonus in the dis
trict north Of the third standard.
4. That No. high line canal and
system will not be extended more than
two miles north of the third standard.
s. That the California Development
Company will not sell water or receive
any revenue therefrOm from additional
lands and will thereby suffer an ac :
tual loss in its assets Of not less than
si50,000 per year, which it would re
receiving within comparatively shor:
period if our original plans were carried
out.
6. That the California Development
Company will lose its right to water