Evening capital news. (Boise, Idaho) 1901-1927, 1916-01-30
COMPANY HAS NOT
COMPLIED With
ITS AGREEMENT
Land Board Wants to Know
Why North Side Bond
holders Have Not Put UP
Securities.

The state land board proposes to as
certain why the bondholders of the
Twin Falls North side project have
not placed on deposit with the state
100000 in securities as they promised
to, guaranteeing completion of the prof.
ect At a meeting of the board yes
terday the register was requested,
after a resolution was adopted, to no.
tify the bondholders representatives 10
appear before the board Feb. and
show cause why the securities have
not been placed with the state.
Some time ago an agreement was
entered into between the state and
the bondholders by which the latter
were to deposit securities with the
board to the amount stated above. In
fact an agreement is said to have
been entered into as far back as 1914
to the same effect and the securities
were not deposited. Since the date or
the last agreement they are still UNI
deposited. The board discussed the
matter pro and con and decided TO
take summary action. resolution
was passed that the bondholdcrs be
summoned to show cause why they
have not complied with the terms OF
the agreement in the matter of Sc
curities.
The terms of the agreement between
the state of Idaho, through the land
board with the representatives of the
bondholders on the Twin Falls North
Side irrigation project, for the compile
ton of that project, the bondholders
placing with the state $500, 900 worth of
negotiable securities, promises to set
tie the issue of final completion of
works.
Summarized the terms of the agree
ment are as follows:
The agreement recites the building
of the system except that require
ments are made as to certain addi-
tional work making said irrigation
system more efficient as shown in
certain particulars as indicated in
three certain reports filed by the
state engineer of the state of Idaho
with the register of the state board
of land commissioners, and except in
certain particulars as indicated by one
report filed by the Carey act engi-
neer of the state of Idaho" with the
same officer, etc. TWO of these re-
ports are given as of date Of Sept 49,
1914 one as of date Nov. IS, 1914, and
one as of date of Nov. %, 1915.
Must Deposit Securities.
1t also recites that on Sept. 4, 1914
the land board adopted a resolution
recurring the company to furnish GER
tain security for the completion of this
additional work, other than the Jack
son Lake reservoir, by depositine
bonds of the company in the sum OF
$500. 200 or such other amount based
upon the report of the state engineer
as the board may require. These bonds
to be sold and the proceeds, or so mucf
t., as may be necessary, applied to com
pleting the work if the company
should fail to do so. In compliance
with this arrangement the agreement
recites that the company shall ant
will forthwith deposit with the lane
board this security in the form o
first mortgage per cent, golC
bonds of the said Twin Falls Nortl
Side Land Il Water company of thu
par value of 100000, together Will
the interest coupons thereto attached
That the company shall proceed will
due diligence to perform the required
work, or such of it as has not al
ready been performed since the report
were made, taking into consideration
the operation of the canal system il
the meantime.
Fix Work to Be Done.
1t is agreed that the company 'shaI
have the right to make such altera
tions and Improvements in the bas
of the Jerome reservoir, as in it's judg
ment shall reduce the loss of waite
therein to a normal loss and is al
lowed until Dec. /, 1918, to accomplis
this as determined by the state engi
neer. If the company should fail /
this then it must construct a cana
around the reservoir. such work I
be completed during the following /
months
In view of operating the systel
meantime the state engineer and tn
land board shall, from time to tim
fix and determine what portion Of III
work shall be done, and the time VIE
the same shall be completed and sha
give so days written notice to tt
company; provided, however, that "a
work shall be completed Dec. /, 1871
except as affects jerome reservoir .
above detailed.
1t is agreed that should the con
pany be relieved, by court order, fro
the direction of this work or the cor
troll of the affairs of the company, the
the agreement is nun and void
The state is required TO inspect tn
work through the state engines
promptly and upon the certificate
the engineer.