Capital journal. (Salem, Or.) 1919-1980, 1921-05-11
Land Board Hears
Protests Against
Project Transfer

That the Central Oregon Irriga
tion company was merely attempt
ing to "get out from under" IT.
obligations to the settlers on it,
project in the proposed assignment
OF certain of its rights and inter
ests to the Title & Trust company
was the charge made by Jach
Latourette, attorney for the set
tiers, at a hearing before the state
desert land board Tuesday after
noon.
The deal under consideration in
wolves the assignment Of the inter-
ests OF the Central Oregon Irriga-
tion company in the unsold lands
in its irrigation project on the
Deschutes river in the vicinity of
Bend and Redmond to the Title &
Trust company of Portland. The
right to the use of the irrigation
company's dam and its main flume
and the use of any water over and
above that already contracted to
settlers on the project would also
go to the Portland company.
Would Take Away Club"
Latourette intimated that the
irrigation company and the Title
g Trust company had failed to
place all their cards on the table
for the inspection OF the desert
land board in considering the pro-
posed sale and that the proposed
transfer was not bonafide but was
merely deal whereby the settlers
would be deprived of the club
which they now hold over the
company and may have to use this
summer in compelling fulfillment
Of contracts for the delivery of
water for irrigation purposes.
"Ail the settlers want is fulfill
ment of the terms of'their contract
with the company" declared La
tourette. eve want the irrigation
system which the company agreeo
to turn over to us at the expira-
tion OF ten years. now long past
due, and we want 1t without any
incumbrances or strings of any
kind. II this proposed assignment
is approved by the board then all
that is left of the Central Oregon
Irrigation company is an empty
husk. There are going to be dam
age suits this summer against the
company for failure to deliver wat
er but II this assignment is made
the company is busted.
SAYS Contract Violated.
"The company has not lived up
70 its contract to keep the irriga-
tion system In good condition and
repair for ten years then to turn
II over to the settlers and now 1t
wants to split up its holdings,
hang on to part and strangle the
settlers until they are willing to
pay something to get out from un-
DER"
The company, he declared, has
let the irrigation system deterior-
ate to such an extent that there
was. danger of its fumes and pipe
lines going out at any time leaving
1he settlers without water for their
props. The system had also been
largely oversold, he insisted.
Latourette declared the settlers
wanted no round about maneu-
Eers through the Title & Trust
company" which, he insisted, had
presented no plant or .recommenda-
tions to the board for the further
development of the unreclaimed
lands in the project. He asked
that the desert land board should
require the company before ap-
proving this or any other CONTRACT
TO prove that II was acting in good
faith.
Company Denies Charges.
Jesse Stearns, attorney repre-
senting the irrigation company,
told the board that the settlers
were opposed to any proposition
proposed by the irrigation com
pany even when it was to the in
Ierest OF the settlers themselves. II
bad been impossible at any time
lor the company to get together
With them, he declared, and he
aad no hopes of getting them TO
lgree to any proposal in eonnec-
ion with the deal now pending be- .
ween the company and the Title
Trust company.
The company, he insisted. has '
lone everything possible to safe
'uard the interests OF both the set !
lers and the state. Settlers had I
'een nursed along during lean
ears on the project and the men
gho had been shown the greatest n
onsideration were now making l
be most noise about the proposed
ssignment.