Imperial Valley press., 1915-11-24

Mexican receiver and will no doubt
be held by him until the reeeivership
is closed up. AL there is in the cor
tract is their agreement 10 sell u
the stock they own in the Soeiedad.
There is no intimation about closing
up the reeeivership or securing The ea-
try Of the transfer on the books Of
the corporation. Another thing. there
are sos shares OF stock not owned by
the Southern Pacific. and the owners
of this stock can 60 into the Mexican
courts and raise all sorts of trouole
The Mexican Company is organized FOR
profit. but when the district gets the
company it will have To be run with
out profit as the water must be de
livered at cost What sort of a com
plication will this outside stock cause.
when il comes in and demands the
company be run for profit. and the Ia
riff price paid for all water measured
in MeXico2 And We can rest assured
the Mexican courts would enforce their
demands 1t can be readily seen that
with the Southern Pacific only owning
part of this stocG and under no OBJ
legation to close W the company and
get all of the stock in its bands o.
10 close the reeeiyership and protect
the district from the percentage
charged by the receiver in Mexico. the
job Of getting possession Of the prop
erty in Mexico Is Il long ways off The
way the Mexican Company is organ
lied to run, is for profit for the stock
holders, and, rs the Mexican govern
ment has established a tariff or va
ter late to be collected for all water
delivered in Mexico, ii follows that it
will not be possible To run tho com
panH as contemplated under the Irri-
CATION district law. All the taxes the.
are collected to pay the interest and
pay eff the bonds must be paid BY thu
land owners on the American side. a.
no taxes can be levied or collected on
any of the lands We must supply Va
ter 10 III Mexico. If the water is de-
liNerod a profit u the Mexican lands.
there is 10 way to prevent the owners
of the 800 shares of stock from de-
manding and collecting a dividend The
only way to have the thing run smooth
would be for the southern Pacific to
dclivor al Of the stock Of the McXicln
Company u the district. Another thing
that must be overcome is the provision
In the Mexican concession prohibiting
The sale or transfer of the concession
to any foreign corporation. or state.
or the admission of any such into part
nership. Paragraph % of said eonees-
sion reads as follows;
AT no time nor by any reason can
the company, grantee, sell or mortaEe
the concessions made in the present
contract to any government or foreign
state, nor admit it in partnership. 4
being null and of no effect nor value
whatever, any stipulation made to that
end"
Also. Article / of Paragraph - of
the contract provides for the cancel
lation Of the concession "by the trans
fer or mortgage of this contract and
the concessions herein contained 10 a
government or foreign state" Also
IF the cancellation should take place
by the reasons expressed in Article T.
the company shall incur the loss of all
its rights, estates and properties OF
any kind related with this contract"
The presence of these clauses in the
concession renders it absolutely neces
SarN that the Southern Pacific secure
an amended concession. under which
the right of the irrigation district shall
be recognized to own and control the
canal system in Mexico. and operate it,
as part of lis canal system. Also to
absolutely clean up the litigation in
Mexico, and turn the entire shares of
stock of the Mexican Company To us
and the clear ownership of the MeNi-
can property clear and free of all
liens and encumbrances. The only way
To get this is for the Southern Pacific
to get a decree of tho MeNican Court
closing up the receiver. and clear
ing up all his fees and commissions
and veSting the title and ownership of
the property in the new owners. free
of all liens etc, under an amended
concession, approved by the Mexican
government, with the written consent
of The Mexican secretary of develop
ment To get less than this would pe
TO get nothing of any value. In view
of the above, there is no use in hold
ing Out hopeful anticlpations that the
deal can be closed up within a week
or cen wltLla q month There i. 10
one more anxious than msself 70 eIoss
up this deal and get rid OF Southern