Lincoln County times. (Jerome, Idaho) 1911-1919, 1914-02-26
THE EXTENSION QUESTION.
All Reports Indicate That Matters
Are Progressing Slowly
but Surely.

From advices received late last
week we had hoped in this issue to
be able to announce that all arrange
ments had been completed for the
turning over of the tract to the
bondholders. following which the
plans for the extension would be
speedily arranged.
On the heels of this comes up an
other obstacle in the negotiations
which is told as follows in a Pitts
burgh dispatch:
The Settlers Reclaiming and
Operating Co. filed Thursday a pc
tition in the court asking that the
California & Idaho Co., w. s. Kuhn,
its president and the board OF di-
rectors be restrained from releasing
guarantee of the California &
Idaho Co.'S bonds and returning col
lateral now held by the American
Water Works & Guarantee Co. on
mortgage for s5.735.000. The APP
plication will be argued before
Judge j. A. Evans February 26."
According to the petition. the
California & Idaho Co. was organic
ed to reclaim, cultivate and improve
land in Lincoln and Gooding coun-
ties, Idaho. and to establish irrigat-
ing systems. 1t has capital stock
OF s10.OOO.0O0. &C per cent OF which
is owned by the American Water
Works and Guarantee Co.
The American company passed
into the hands OF receivers last July
and stockholders of interested COM
panies formed u committee to pro-
tect their interests. This committee.
IL Is alleged. intends to separate
their corporation from the ownership
and control of the American Water
Works x Guarantee Co., wehereby
contemplating the release OF the
guarantee.
Mr. Ralph Schneeloch. president
OF the Settlers company, prepara-
tory to his departure for Pittsburgh,
gave to the Boise papers a brief
explanation OF the suit as follows:
THE Settlers Reclaiming & Op-
Grating Co. has judgment in the
state OF Idaho against the California
Idaho Co., Kuhn corporation. foi
approximately $4,000. This judg
ment became final on January oi
the present year.
Since that time we have begun lit
igation I'm the state of California
based on that judgment against the
California-Idaho Co.. much OF it'
property being located in that state
We began our litigation in Pennsyl
vania in the Pittsburgh courts tC
give our judgment faith and credi
In the state where the California
Idaho Co. has its principal Office anC
to prevent the various Kuhn corpo
rations related to the California
Idaho Co. from carrying out a pro
posed reorganization that contem
plated redistributing the assets o
the California-Idaho Co. to the ad
vantage of these Kuhn corpora
tions and which in fact Is a dissi
patton of the California-ldaho Co
assets to the disadvantage of tn
Settlers Reclaiming & Operatin
Co. as a judgment creditor.
I'VE were advised that the attor
neys on the other side represente
in court that the Settlers Reclaim
ing and Operating Co. had bee
placed in the hands OF receiver 4
bankruptcy. This statement is nc
correct. though It is a fact that
petition of three Insignificant credit
ors. one OF whose account is in dis
pute, has been filed In the fedora
court.
"It will be conclusively shown a
the hearing of this petition that tn
Settlers Reclaiming and Operatin
Co is absolutely solvent and ha
committed no act of bankruptcy.
II feel confident that the result {
these Pittsburgh proceedings is gt
ing to be greatly to the advantag
of the Settlers Reclaiming and Oh
Grating Co."
The plan of reorganization of th
American Water Works & Guarante
Co.. as briefly called attention to
our issue of the 18th inst. and
which It was hoped that the nece
sary funds could become availab
to release this company from IL
guarantee of the bonds on this an
other tracts, is told as follows in
recent issue of the Financial Worl
and is plan which Pittsbure
bankers and others interested b
lieve to be the most likely and feas
BILE. Here 1t is
To
Authorized lssu
20-yenr per cent collateral
bonds sl0Ooo.000 $3.50,
Reserved for collctcrnl- 3.7OOl
First preferred. rcdcemnble
ut tsiO-----.--------.------ l0O000oo 5.0o0t
Participating per cent
nrnfnrrnd 10 nnn I'D ON