AZ vs. CA:20 California Exhibits, Vol. XX; Nos. 4050-4092

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The examiner's statements, which are corroborated to a certain extent by the above mentioned exhibits, are, in substance, as follows: General Discussion. This company is the successor to the Palo Verde Land and Water Company, which, on June 28, 1908, conveyed its irrigation system, intake site and water rights, together with rights-of-way for canals over the "Blythe Rancho", a tract of 25,000 acres of patented land in the Palo Verde Valley.1 The consideration was the building and maintaining of a levee system to protect the valley from the floods of the Colorado River and an agreement for the disposal by the Land and Water company of part of this company's capital stock, before the sale of any other stock. As modified on October 5, 1912, this agreement, in effect, bound this company to pay out of its treasury or capital stock $450,000.00; 30,000 shares or $300,000.00 to be delivered outright and the balance to be paid in instalments, on the basis of $5.00 out of the proceeds of each share of stock thereafter sold until paid, with interest. Until the modification of the above agreement, no money could be raised by the sale of stock, so in order to reconstruct and enlarge the irrigation system and construct the levees, assessments were levied on the stock already issued to the amount of $22.00 per share, and by this means and the sale of stock since the modification of said agreement the company has received a total amount of $623,291.00. Of this amount $258,685.00 have been expended in the maintenance of canals and levees, river control and general expenses; $224,300.00 in canal construction and $91,600.00 in the construction of levees. 1Calif. Ex. No. 337.