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

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arrangement, however, was short lived, as I entered into an agreement (with the Court's approval) with the New Mexican Company, dated April 25th, 1911, whereby I was to thereafter furnish said New Mexican Company with such money as was needed to to maintain the Mexican Canal System, I further agreeing to reimburse the New Mexican Company for whatever money it had expended subsequent to January 28th, 1911 in the maintenance of the Canal System in Mexico. In fulfillment of this latter provision, I paid to the New Mexican Company, the sum of $8,725.53, the receipt portion of my vouchers As Receiver covering said amount, being signed "Compania de Terrenos y Aguas de la Baja California, by W. J. Doran". I thereupon assumed control in Mexico of both canals and structures, the New Mexican Company being merely a figure head. The contract was lived up to, I advancing all moneys necessary for the maintenance of canals and structures in Mexico used for transporting water to the United States. However, in September, 1911, the question arose as to who should maintain the Encina Canal in Mexico. By placing checks in the West Side Main Canal to serve the Wisteria and Woodbine Canals, (which Canals delivered water to Imperial Water Company No. 6) it was no longer necessary for me to maintain the Encina Canal, west of the Wisteria, inasmuch as that Canal would only be used for delivering water to Mexican users, who paid no revenues whatever to me As Receiver. Considerable correspondence passed between me and the New Mexican Company in connection with the proposed maintenance of said Canal, in which controversy I took the position that the Encina Canal was no longer necessary for the delivery of water to the United States,