The Sun. [volume] (Price, Utah) 1915-1932, 1920-12-31
SPECIAL AUDITORS REPORT
Affairs Of Carbon Water and Land
In Very Good Shape

l.. T.. Mainor and VI. L. Commit,
special auditors for the state land
board, in a report to Gov. Simon Bam-
berger few DAYS ago have this to
say of local irrigation companies and
their affairs: "With regard to the
Irrigated Lands cmpany, whose prop
crty was purchased at sheriff Is sale
by the state aud subsequently, sold TO
the Carbon Water Land aud Power
company. the audit notes that the
unpaid balance of the bonds puchns-
ed by the state of the Irrigated Lands
company was $4,000. The total cy-
pcnditurc by the land board for these
bonds. including un attorney fee of
$500 aud accrued interest to Septcm-
Der J.. 1919, b. found by the auditors
10 have been SD5,2Tj.5s. The Carbon
company assumed obligations for sos
25i61. and the auditors note that on
September /, 1920. there mnturcd in
tcrcst 60 that date. which by October
18th had amounted la S2iiI30. This
was not paid by November 18th. the
date when this section of the report
was prepared. The notes Of the Car
bon company, carried In the minutes
of the land board as the Carbon Wa
ter, Land aud Power company, begin
10 mature September !, 1922, nt the
rate of $4,000 a year. They are
signed for the COMPANY with j. G..
Jensen us president and Carl Il Mar.
rusru ~ q trolury
Tho auditors de tu'' some space Ia
the investment AZ twenty thousand in
bonds Of the New dlpo irrigation dis
trict In Uininh and Duchcsne coun-
ties ON which it IL found that the
state land board expended Sl0,27O
Interest has been paid on these bonds
Ia sufficient amount 10 take care Of
accruals up 10 June /, 1915, the bonds
having been actually purchased in Au-
gust, 1913 The last interest pay
ment was made November 3, 1919. At
the time the bonds were purchased by
the land board, says the report, cit
WIS definitely understood that the
water rights were inc0ntestahle, but
Ia 1917 the United States brought
suit against certain water users of
the Uintah Basin Certain excerpt
quoted from resolution passed hy
the land board December II, 1917,
which rccites that the suiJ was
brought "tor the purpose IT dlscrin-
mating in favor of the Indians nnd
against the white people of said see
ton, a. the extent a. least OF allowing
the Indians 20 hold the water of said
uiniah country particularly that GER
tain water which affects lands form
erly embraced Ia the Indian reseRa-
ton, without compliance with the laws
of Utah as % beneficial use of said
water. The auditors continue; "ln
order that the rights of the state
might be- protected IN tins case, IL was
necessary 10 employ un attorney at a
cost of five thousand dollars and ex-
penses, as special counsel 10 present
the case. In other words, IL was ne
cessary 10 spend S5445 10 protect am
investment of $4,000 which was
worthless In its present condition, -
The auditors note that the Sl1,270
paid for the New Hope bonds was
drawn from the school fund principal,
and ia the event the investment
proves worthless, as in the case of the
Green River irrigation district bonds,
"the general fund will have 10 REIN
burse the school fund for any loss in
CURED.
The auditors found that the Green
River irrigation district bonds, in the
amount of 100000, purchased at nine
ty-tiye, resulted in loss 10 the state
during the investment of 500, 283.33.
The bonds were purchased by the
state land board about nine years ago,
and their sale at five cents ON the
dollar was authorized by the last leg
islamre. The miners hospital fund
interest lost 2S,323.33 less the 8 per
cent. The state legislature reimburs-
ed the state school fund for its loss,
$4,000,