The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-11-08
Plan to Put Big Irrigation
Concern on New Basis
Is Devised.
LAWYER SAYS IDEA
MAY SOLVE TIE-UPl
MckinnOn Interests Anxious
to End Litigation, Says
Attorney.

y comprehensive plan for the re-
organization and financial rchabilita-
ton OF tho noa bankrupt Bitter Root
VAN, y Irrigation company viii be Pre-
scnted to Judge George NJ. Bourquin OF
the United States district court at Il
special session on. December 3, accord
ing to $. w. SWahcy of Chicago. for
mcrly treasurer of the company and
now here, us attorney for John W.
McI<innon. one Of The creditors whose
conflicting interests caused the bank
ruptcy proceedings in January 1916.
Tho plans involves transfer Of the,
Tho plan involves transfer of the
Assets Realization company. financial
hackers of the former concern. to what
Mr.. Swahcy has called stronger
hands, and provides for strengthen
ing of the finances of the water COM
pany. The affairs of tho i. r. Y. !.
are now being administered by Judge
+. G.. Webster of this city, receiver.
Court Must Approve.
The federal court, in whose trust
the properties Of the company now re-
side. must give its approval to the
plan. as must>thc several ltigants.
II may say in {; general way that 1t
is the intention OF practically all
parties to the pending litigation to
subordinate and sink personal differ
cnccs." said Mr.. Swabey Yesterday
ITO try to do. something Of practical
value to the community"
"If the plan is satisfactory to the
court" he continued. "it will undo,lbt-
edly meet the approval of residents in
the Bitter Root valley when understood
by them.''
To Provide Funds at Once.
THE first thing To be considered
said Mr.. Swabey, lis the pcrmanency
and efficiency of the water supply.
The water company. il formed at all.
will start with an authorized capital
of s3O0.0U Among its assets will be
a fund of not less than $4,000 for
such requirements as may be called
| for in the next three or four years
| The entire irrigation system-dam
, ditch and laterals, with other proper
| ties necessary to opcrate-Will be free
| of cncuinbrance, with no outstanding
debts of any kind. The company will
| be formed with broad powers, and
should, when launched. have in addi-
| ton to these cash funds an income OF
| 500, ,O60 and an annual rental inco'nt
of approximately $4,000
| The proposed new company Is tt
! furnish water TO about $1,000 acres ol
the lands remaining unsold. in addi.
| ton to the $500 acres sold by thu
! Na11rN lrr IN
company
Il understand that this acreage
comes we'll within the estimate of tn.
| capacity Of the system recently mad'
| by expert engineers said Mr.. swabcy
Much Money Spent in Valley.
At the time of the failure Of TIN
| 3. Il. Y. ]. company about $500, 0o'
had been expended ON improvements
in the Bitter Root valley. \ storag'
dam costing 100000 had been bull
at Lake Como, and about so miles o
main line canal. with latcrals irrigat
ing some 1900 acres Of land, hat
/ been constructed. This improvement
had been financed by the Assets Isea
i liZation company and caused the fan
ure of that concern shortly before tn
4 bankruptcy of the +. i. Y. l. This, il
;. turn, was brought about by the -,
900, 900 Indebtedness of the b. r. Y.
TO the backing company.
1T was simply impossible sal
| Mr.. Swabcy at that time to so ahea'
with the work with the $4.Oo0.oob deb
| to the Assets Realization compan
hanging over our heads.
The company, said the treasure
then, placed its affairs in the hand
of the court rather for protection tba
anything else. ITO be out OF the reac
of petty schcmers," while the now ma
ture plans for reorganization were be
ing worked out.
Mr.. Swabey now represents j. "
, Mckinnon of Ravalli, the largest Mon
tana creditor of the Ii. II. V. ]. com
pany.
Mekinnon Favors Reorganization.
In so far as my end of the case
, concernedr' he said yesterday. "th
, pending litigation upon the outcon
of which the reorganization plan d.
c pends is ready for trial. AS the cou
: has set the hearing for December
: 1t is assumed that all parties wi
4 have an opportunity to tell the
:, troubles to the court 1t would be
the advantage Of my client to let Il