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Show 19 damage to the Mexican canal and works was sustained. The western portion of the Imperial Valley was threatened with destruction. Through funds, equipment, labor and materials supplied by the Southern Pacific Railroad Company, whose tracks were in danger, the break was closed and the flow of the River re-diverted to the Gulf of Calir fornia.63 Remaining behind, in the Salton Basin, was the Salton Sea. The C. D. C, in addition to becoming heavily indebted to the Southern Pacific as a result of the 1906 floods, was also obligated to the Title Insurance and Trust Company for money loaned in 1900 to finance construction of irrigation works and secured by a deed of trust on all C. D. C. property.64 Moreover, the New Liverpool Salt Company, which in the late 1890's had established a salt works on the north end of the Salton Sink,66 recovered a substantial judgment for the negligent destruction of its works.66 Subsequently, the Mexican property of C. D. C. was sold at an execution sale pursuant to a judgment obtained by the Southern Pacific. The purchaser at the execution sale was La Compania de Terrenos y Aquas de la Baja California, S. A., a Mexican corporation formed by the Railroad specifically for this purpose.61 Thereafter, when the Title Insurance and Trust Company sought to foreclose its lien, the assets of C. D. C. were sold by the receiver, W. H. Holabird,68 to the Southern Pacific and the claims of prior creditors were paid off.68 6sTr. 7396-7404 (Dowd). "Title Ins. and Trust Co. v. California Development Co., 171 Cal. 173, 181, 152 Pac. 542, 546 (1915). 05Tr. 6506 (Dowd). 00Title Ins. and Trust Co. v. California Development Co., 171 Cal. 173, 182, 152 Pac. 542, 546 (1915). 67171 Cal. at 183, 152 Pac. at 546. 68Tr. 7418. 89Calif. Ex. 149. |
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Original Report: State of Arizona, complainant v. State of California, Palo Verde Irrigation District, Imperial Irrigation District, Coachella Valley County Water District, Metropolitan Water District of Southern California, City of Los Angeles, California, City of San Diego, California, and County of San Diego, California |