Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-05
BANKS BLAME FEUD
FORCLOS|NG DOORS
Five Failures ASCribed to Bit
ter Conflict Over Los An
qeIes Water System.

Nv the Associated Press.
BISHOP. Calf, August 5.-'ThH feud
between the city Of Los Angeles ana
ranchcrs of owens Valley over val
liable water rights. the cause of ire
uuant dvnamitings Of the Los Angeles
water system, today was blamed Tor
the breakdown of the valleys imam
ciaI structure, after all i've or the
county's banks closed their doors yes
terday.
This result has been brought
about by the last four years of de
structive work carried on by the City
of Los Angeles" was the note posted
m the door of each institution to mo-
tifv depostors of the failures. The
banks, according to their last avail
able statements. had total deposits of
approximately 50 100000.
The banks. the First National of
Bishop, the Inyo County Bank OF
Bishop, state institution, with
branches at Big Pine. 1ndependece and
Lone Pine, were placed in the hands
of bank examiners.
Closing was Voluntary.
They closed voluntarily. according
to W. w. Watterson. president of the
State Bank and cashier of the ma
brother, NJ. Q. Watterson. who is pres
idenr of the national and cashier of
the State bank, would comment on
the possibility of reorganization or re-
ppening of the institutions
when the State bank examiner ar
rived here Wednesday | told him
frankly without the formality of any
examination of our books by him that
WE were in such a condition that he
would have to close our DOORS said
W. w. Watterson. He declared the
direct cause of the banks failures
was that ranchers who had failed to
negotiate satisfactory sales to the City
of Los Angeles" as well as business
houses whose business has decreased
under the water warfare, had been
unable to liquidate bank loans.
NJ. @. Watterson declared he could
not say what protection would be af-
forded depositors.
Denial by Los Angeles.
From Los Angeles came a quick de-
NAL that that city was responsible for
the situation.
1.-The city of Los Angeles has sent
a great deal of money into the valley
and it all has cleared through these
banks" said John r. Richards, mem
her of the Los Angeles Water and
Power Commission. which has fought
the battle to gain for the city the val
ley water rights. 1.-The cause of the
failures appear to us to be Internal
Certainly, the city can in no way be
charged with responsibility"
The purchase of Owens Valley land
and water rights and the diversion of
part Of the water of Owens River 20
years ago. when the Los Angeles aque-
duct was built started a strife between
valley ranchers and merchants and
the city. The valley business men de-
mand Preparations for losses through
decreas ed population and ranchers
demand the purchase by the city of
their land at assertedly high values.
The total reparations asked approx
mate 100000
States Amount Invested.
The city has paid between Il and -
million dollars in cash for lands pur-
chased in the valley, reparatlons
figures show.
Violence has been resorted to
dozen times by valley residents seek
ing to force the city TO meet their de-
mands. The aqueduct has been DAM
aged several times by dynamite blasts
and armed guards have patrolled it for
several weeks.
The Inyo County grand jury opened
an investigation into the dynamit1ng
two weeks ago. 1t will resume its IN
quiry August 9.