Imperial Valley press., 1914-11-23

The following statement from Los
Angeles contains one inaccuracy. The
idea is carried that the district is to
|acquqire only the property north of
the international line, while, as a mat
ter of fact, the district is to get the
entire canal system, with necessary
rights of way and all the personal
property, both in the United States
and Mexico-everything belonging to
the CD Company and the Mexican
Company except the agricultural
lands not used as part of the irri-
cation system.
Los Angeles, Nov. 23.-The agree
ment whereby the Southern Pacific
parts with its holdings in and claims
against the California Development
Company in return for $2,O0O,OO0 Is
per cent bonds of the Imperial Val
ley Irrigation District, plus accrued
interest from December, 1918, was an
nounced Saturday by President
Sproule of that road. He said the in
tent of the agreement, which is ten
tative and preliminary, is that all
lands within the irrigable area for
which there is water supply shall
be included in the Imperial Irriga-
tion District.
1--WE emerge from the deal with
the ret on the wrong side of the
LEDGE" said Mr.. Sproule in discuss
ing the agreement. 1--WE feel, how
ever, that our loss was in the inter-
est of the public"
Speaking of the deal, Receiver Hol-
abird of the California Development
Company stated that he had been as
sured by former Judge Haines of San
Diego, who is one of the districts
attorneys, that an agreement with
the Southern Pacific would be mere
ly preparatory to negotiations with
ether creditors.
The total of all claims against the
company, figured out to January 1,
according to Judge Bordwell's de-
cision in the case of the Title Insur-
ance and Trust Company VS.. the Cal
ifornia Development Company, ct al,
is S3,350,000. The claim of the New
Liverpool Salt Company, as a result
of judgment against the company,
is, in round figures, 100000. and the
bond holdings of Boaz Duncan, $780,
600.
81 have been assured that the salt
company is willing to settle with the
district" said Colonel Holabird.
Continuing, Colonel Holabird stated
that if the deals are all carried
through by January 1 he will have
S275,000 to turn over to the district
to aid in settling with claimants.
The agreement of yesterday in
oludes negotiations that have been un-
der way for more than a year. The
main clauses of the agreement were
drafted Friday at a meeting between
Mr.. Sproule and members of the
oard of directors of the irrigation
district, but the deal was not in shape
to make public until yesterday.
The agreement, according to Mr..
Sproule, foreshadows the ultimate alb
sorption of the California Develop
ment Company by the irrigation dis
trict as the Southern Pacific was the
principal creditor of that company.
at clears the way for settlement
with other creditors" said Mr. rSproule,
"and makes it probable that the dis
trict will shortly have control of all
water diverted from the Colorado riv-
er."
The agreement is really an accept
ance by the directors of the Irriga-
ton District of an offer made them
by the Southern Pacific in December,
1913. Under it the Southern Pacifc
proposed to transfer all its water
assets in the valley, north
of the Mexican boundary, to the dis
trict in exchange for S2,000,0O0 of
the districts bonds, and the district
was to assume the responsibility of
court action to carry out the deal.
Bonds for this and other uses were
voted by the district at the last gen.
eral election to the value of $780,
300. Of these, $3,O0O,OOO were to ae-
1uire property, and the remaining
for other contingent uses
These bonds will not become valid un-
Ger the state law until January /.
"The deal does not include our hold
ngs in the Mexican company, which
are valued at s750,000," said Mr..
Sproule, "nor does it affect our claim
against the government for work in
losing the gap in the Colorado river
md thar