AZ vs. CA:04 California Exhibits, Vol. IV; Nos. 151-192

page 8

Upon assuming control of the canal system belonging to the California Development Company, your receiver found an established water rate of 50c an acre foot, the water rentals being paid at the ends of periods of six months, viz., January 1st and July 1st. Your receiver has continued this method, both as to cost of water and, with a few exceptions, as to time of collection of water rentals. Your receiver, with the approval of the court and the creditors of the California Development Company, has carried on a campaign of rehabilitation of the canal system, in order to increase the quantity of water delivered, and in so doing has expended on new concrete and wooden canal structures, miscellaneous buildings and protective levees, the sum of $467,830.10, while in the acquisition of the necessary dredgers and other tools with which to maintain the system, he has expended the sum of $194,-324.15 making a total expenditure of $662,154.25 in additions and betterments. (See detailed statement attached.) That said expenditures were fully justified, is proven in the increase in revenues, the earnings from water sales having increased from $236,000.00 for the year ending December 31st, 1909, to $509,000.00 for the year ending December 31st, 1915, an increase of $273,000.00, or over 115%. A very large increase in earnings has also been brought about by your receiver adopting a scientific method of measuring the water delivered to the Imperial Water Companies. Prior to July, 1911, the old-fashioned method of measuring water by a weir was in vogue, having been in use from the beginning of the irrigation of Imperial Valley. Your receiver determined that this system was wasteful and did not accurately measure the water de-