The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1914-12-03
v. Il. SHANE ISSUES
STATEMENT
Gives in Detail Position of the
Board and Replies to
Misstatements.
To the voters of the Emmett Irriga-
tion District.

To the voters of the Emmett Irriga-
tion District:
Reports having been circulated that
| was on the Irrigation District board
at the time of the sale of the bonds,
also in regard to some other matters,
l desire that the facts be known.
First. The contract for the sale OF
the bonds was made by w. E. Bell
and C. L. Spaulding while R. b. Will
son, the other director, was in Rich
paond, Va 1t was made September
IL, 1911, by the Emmett Irrigation
District, signed by W. E. Bell as pres
ident and Harry S. Workman as sec
retary. 1 was elected in December.
1911, and took my place on the board
in January, 1912. AS soon as | took
the office the board employed Richards
& Haga to look into the sale of the
bonds. While they deplored the terms
of the contract, they advised the
board to try to carry them out. An
extension of time was granted for
the purpose of securing money to
build steel fumes and also to get pos
session of the bonds that were being
held under an indefinite contract. An
other extension was granted and the
interest levied, under the terms of
which Corkill & Co. forfeited one
years interest that they had paid on
the bonds, amounting to over 0,000.
The interest was levied on the advice
of our attorneys, who stated that
there being no suit on the bonds we
MUST make the levy.
Second. The statement is made
that the board has not defended in
the Gaebler suit.
The district is represented by Judge
Wood and J. M. Thompson, who have
filed an answer in the case, but it has
not yet been called for trial. The Gae
bier suit covers the same grounds as
the J. Paul Thompson suit, which
has twice been decided in our favor in
the federal courts.
Third. 1t is also told that l am
in favor of paying the S175,000 of So
called commission bonds. The district
did not make levy for the interest
on the bonds this year in order to
compel the bondholders to come into
court to demand that it be levied. This
will open up the question of the le-
gality of the $175,000 bonds, so that
the district may get an adjudication
regarding them.
The following resolution in regard
to the interest was passed at the No
vember, 1914, meeting of the board:
"The following resolution was pre-
sented by Mr.. Reynolds, seconded by
Mr.. Barnes and unanimously carried:
whereas, prior board Of directors
of the Emmett Irrigation district, on
the 18th day of September, 1911, made
contract to dispose of certain bonds /
of the Emmett Irrigation District,
copy of which contract is found in
Minute Book No. 1, pages 81 to Ga,
inclusive, records of the Emmett Ir-
rigation District, and it appears to the
board that said prior board entered
into said contract without the advice
of an attorney, and this board being
advised by the attorneys of the dis
trict that said contract amounts to a
disposition of the bonds for the sum
of eighty per cent of the par value
of said bonds, and that certain bonds
were disposed by said prior board
without any consideration, and that
certain other bonds were disposed of
for consideration, but that no record
whatever was made by the district of
the disposition made of said bonds, so
that the district is without any means
of determining which bonds were dis
posed for consideration and which
bonds were disposed of without a con-
sideration, leaving this board of dir
ectors absolutely without information
as to which bonds of said issue were
disposed of without consideration
and which bonds were disposedof for
consideration, and the board after
careful inquiry and investigation to
obtain the same, has failed to obtain
such information; and
"Whereas it appears to the board
that certain bonds were disposed of
without consideration, and it further
appears that suit has been COM
menced against the Emmett Irrigation
District, in the district court of the
United States for the district of Idaho,
southern division, by A. N Gaebler,
for the payment of certain coupons on
certain bonds of the district, and that
the Records of the Emmett Irrigation
District are public records, open for