The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1914-01-27
THE SETTLER
IS PROTECTED
Far Preaching Decision Handed
Down by Supreme Court
ALL MONEYS MUST BE APPLIED
TO COMPLETE PROJECT.
Principle Laid Down to be Used in
Untangling Troubles Of Other Pro-
jects-DecisiOn Far Reaching.

Settlers on an irrigation project are
entitled to have every dollar they pay
on water contracts applied to the
completion of the system, no matter
how many transfers of the property
may intervene, nor how the water
contracts have been assigned to the
settlers, where the promoters are in
solvent.
This is the purport of a decision
handed down by the supreme court on
Wednesday in the case of G. c. Childs
and others against N. j. Neitzel and
others, case involving the Murphy
Irrigation company project in Owyhee
county 1t is a decision of tremendous
Importance to settlers and irrigation
companies throughout the state. 1t is
far reaching in it's application, and
the main principle laid down by the
court will be invoked in straighten-
ing out the tangles on a number of
projects, such as the King Hill, the
Medbury, the Big Lost river and 9TH
ers. 1t means, in brief, that the pro-
moters of irrigation projects must
complete the system and put the wa
ter on the land before they can ex-
pect to reap harvests by compelling
the settlers to make payments on wa
ter contracts, to be applied on the in
terest on bonds and other obligations.
Incidentally Judge Davis comes out
of the case with flying colOrs. 1t was
he who laid down this principle when
the case was on trial in the district
court, and his judgment has been fully
sustained by the full supreme court.
Justice Sullivan wrote the volumin-
GUS and exhaustive opinion for his
court and Chief Justice Ailshie and
Judge Alfred Bulge, who sat with
him when the case was considered,
concur fully in his findings.
| Action upon which this decision was
based was instituted in the district
court by G. G. Childs against R. E.
Neitzel, H. r. Neitzel, w. d. Mercy
nolds and H. A. Toole, directors of the
Murphy Land & Irrigation company
for the purpose of ousting the direct
ors named from office in the COM
pany, and to have the offices of presi-
dent, vice president, secretary and
treasurer declared vacant. 1t was
also undertaken in this action to have
a mortgage executed by the corpora
tion in favor of H. R. Neitzel declared
void and to have a receiver appoint
Pu W Jake tudISc VI lllc pIOpclly
This action was based upon the own
ership of 1000 shares of the capita
stock of the defendant corporation b.
IChilds and not upon contract for
water right.
A complaint in Intervention was
filed by the holders of water con
tracts, owners and in possession 0
$500 acres of land under said project
] I'M. L. I'd M,
: improved at great cost to the inter
venors. They and their families wer
dependent upon the these lands 70
, support. The corporation entered in
to agreements to construct the Muir
ply project and to sell to the settler
shares of water appropriated or i'm
pounded by it, also certain rights i
I and to the irrigation system itself
The system was to remain the sol
. property of the company until full
completed, and until all the waters
be diverted and beneficially apple
under the system was sold. The COZ
poration further agreed that with
one year after the final completio
of the whole project and within fiy
: years from December 81, 1906,
would turn over the entire project
it's water users under its water col
: tracts.
! This contract also provided that til
= purchase price of water rights woul
= be $35 an acre; that the purchas
= price was to be paid in 10 annual il
= stallments; that per cent intere
: was to be paid on deferred payments
:, and that the company was authorize
= to collect 60 cents an acre each yes
: as maintenance fee on all the lar
:, whether water was used on it or nc
Statesman.