The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1914-11-19
Under the title of legal Proceed
ings the report says:

IIlGl, III LliS OJdIC OOuiI
ing that the bonds should have
been sold according to law at
par, but that ]. J. Corkill & Co.
received a commission; hence,
the bonds were sold for less than
par, and prays that the same may
be declared void.
To remove the issues of the
case from the state courts, Mr..
Oliver o. Haga, of Boise, our at
torney, in behalf of A. N. Gaeb-
ler and j. Paul Thompson of our
committee, has instituted suits in
the United States courts for the
district of Idaho, southern divi-
sion, for judgment against the
district upon coupons owned by
them and in default with Z per
cent interest and costs.
So far as | know, the only
important question to arise in
either of these cases affecting in
any way the validity of the bonds
is whether or not they were sold
by the district below par. In
other words, will the court con-
slider the $175,525 of bonds re-
ceived by Corkill & Co. from the
district for services and assets
an improper use by the district
of such bonds. If so, possibly to
the extent of such improper use
the bonds may be diminished rat
ably, but as is pointed out by
Mr.. Haga, a court of equity will
compel the district to pay the
amount of value they did receive,
so that in the worst event the
bondholder will recover some
thing more than 80 per cent and
interest.
In regard to delinquencies, the re
port says:
On account of the intrinsic
value of the property taxed,
these tax certificates make
very safe and profitable invest
ment, penalties and interest con-
sidered, and would be a particu-
larly proper investment for this
committee, in that the moneys
received by the district from US
in the purchase of such certiti-
Gates must be devoted (Mainte-
nance warrants excluded) by
them to the payment of coupons
owned and presented by US, so
that the net result would be an
exchange of our coupons for tax
certificates, plus a penalty OF l0
per cent and bearing interest of
! per cent pc. month.
AS the district itself bid in
the tax, it may be within its
power to forgive the penalty ano
interest later, and thus favor the
taxpayer. The district gets the
penalty and interest (less 6 per
cent interest on the bonds) and
in a general default this penalty
and interest remains in tie treas
ury and is available the following
year, thereby reducing the levy
to the taxpayers for that year.
If the tax certificates were now
purchased by an outsider or by
your committee, they or it would
receive the penalty and interest
unless they chose to forgive it.
1t is questioned whether default
ed coupons could be used to buy
up the tax certificates. If fund
were raised to buy in the taxes, it
would be returned to the bond
holders in payment of their cou-
pons, and in my opinion, would
be a safe and profitable invest
ment for the bondholders, and
have a very strong effect in
bringing the taxpayers to their
senses about as quickly as any
thing that could be done, for 1t
would then be "Pay your taxes or
we take the land" and the land
is worth all the way from $50
to 5000 an acre, and the tax, of
course, is very small proper
ton of the value of the land.
Then follows the conclusions of the
Committee:
First. The district is legally
formed and the bonds legally
issued.
Second. The irrigation sys-
is completed and from the intake
down is in splendid condition, am
ply able to furnish all the water
that is needed. Old wooden
fumes have been replaced by
steel fumes, tunnels have been
concreted, and everything is in
good permanent form.
Third. The water is from a
never failing river and is ample
for all the land within the dis
trict or that can within reason
hereafter be added to it.
Fourth. The lands within the
district are we'll developed with
permanent improvements, or
chards, fences and buildings, and
with a population of about 1900
and assessed valuation of about
5 million dollars.
Fifth. There seems to be con-
siderable foundation for the claim
of ]. ]. Corkill & Co. that they
performed a great service for
the district in eliminating the
various defaulted bond issues and
disposing of S421, 900 of other
Indebtedness against the district
and in clearing up the land mort
gage contracts ($602, ,337.78) most
of which were in default, thus
refunding the entire Indebtedness
of the former Irrigation company
and of all the land owners upon
whom the full burden of its pay
ment rested, so that the payment
Of tbe indebtedness (greatly re-