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About The Bend bulletin. (Bend, Or.) 1903-1931 | View Entire Issue (Nov. 29, 1916)
WW. I'AGK 12 THi: IJKXI) IllTliT.KTlX, IIKNI), OHM., WKDNKSDAY, XOVK.MHKU f, 1010 C. 0. 1. Auditor's Report (Contlnucil from Pane 9.) 7x.fui estimated low on bud account . . . 12,358.70 MS8.70 8,000.00 J 6,031.04 Mi aundriwl. 12.2:7.85 J5.2I7.10 $11,149.04 Deduct JU.2TO.79 249.42S.4C Net Jtnclt.1231.21t.t7 IjObii. Kqulptnent, 811,100 No Inven tory was tnken at August 31, 1016. Tho Inventory of Deccmbor 31, 1915, was lookoil over and nn arbitrary de duction wns mado. No attempt waB made to bco whether tho ItomB enum erated wuro In actual possession of the company. Materials and snpplloH, $2,00 Tho narao explanation applies to this account. lnvoMmrnfff, 912,185.07 Tho ItemH comprising this total arc: JltaJ tutate and bulMlnira nut uwf by the tvmimny SIS.lf B.B7 filodi uwlkJ 17.00 I12.1M.G7 Tho first Item represents the fol lowing property not used completely by tho company for purposes of con ducting Its business. It was taken over from tho old Deschutes Irriga tion and Power Company: Itnlxnonil Stable, granary and ihod J 1,675.00 JltJmond Kmmc iluilllnx 966.74 jlvnhun Kalli I.nnd 1,827.M lhcrt Aerrnitr (K. ', mwhutm).. 396.00 JJorth Cknal Lund 7.303.38 112,168.67 The mecond Hem Is a one-sixteenth Interest in the Farmers' No. 1 Tele- phono Company of Itend, purchased tlon that the excess acres bo watered without tho payment of additional maintenance fees. This issuo did not seem to Involve the payment of tho additional lien for tho water right and It was not paid. In a later suit brought for tho samo purpose ft was hold by tho Su- irnin r!nnr that the company was not compelled to serve water on tho excess acres or tno BCiucr wimuui payment for same. On September 7, 1916, contract No. 10GC, for 17 Irrigable acres, was approved by the Desert Land Board. This covered tho first salo of any of this excess acreage. It would seem that some weight was being given to tho company's contention. This Item, however. Is placed on tho bal ance Shoot as a contingent asset. Desert Ijinil IJounl tJuuraniecs Account Section 15 of tho 1907 contract stipulates that a deposit be mado by tho company with the stato treasurer ol ll.uu per acre ior uucu gross aero sold under this contract. This deposit is to be held in trust pending tho turning over on Juno 17, 1917, to the water users asso ciation, of tho system "In reasonably good condition and repair and free from nil Incumbrances." On February 5, 1912, when funds woro bolng raised for the building of tho North Canal, tho total deposits In tho guarantee fund, which then amounted to J24. 349.22. wore re leased by tho stnto and woro used by tho company on construction. In lieu of this a bond of J25.000.00 wub placed. Tho premium of this bond was puld for by tho Deschutes Contract Company and Is taken out through tho Oregon Casualty Com pany. It is also supplemented by tho personal bonds of Alfrod lilies, Itoscoo Howard and F. S. Stanley In tho amount of $12,500 each. Accounts with settlers, $115,(11-1.- certaln unit of tho system, by tho setting nsldo of funds for this pur pose. Ilcpalrs to keep tho system In service aro charged to repairs as mado and Include tho replacement of timbers In the main flumo. I'.enl estate and buildings in use, $21,001.02 This shows that portion of tho company's owned renl estato and buildings which am In use. Oilier, bnrn, iraraire, etc., Dmchutcs.f 13,080.92 Hotel, Deachutca 11,030.98 124,061.93 Tho real estato (lots) for tho olllco block was donated by tho Dcschules Townslto Company and that for the hotel was sold to tho company for $1,500,00. The balanco represents cost of construction of the buildings. Tho hotel was erected, it Is stated, to provide proper accommodations for company employees, to accommo date visitors and possiblo investors, etc. condition relative to this full allow ance wns that tho samo would be romo duo upon tho acceptances of tho North Canal by tho Stato Land Hoard. Of courso this has never been done. It was stated that some modi fication of tho $100,000 might prob ably bo secured, possibly twenty-five per cent. When this has boon prop erly recognized and decided upon as to amount, It will bo an additional cost of tho North Canal. Recovery on tho other item of $8, 353.39 may bo doubtful. Tho details concerning this am as follows: Tho contract for building the North Canal dnm was let to L. Gcrdctz for $1 If,, 500, which was to sccuro Its completion to tho Intersection with (hi. Pllnt Ttntln f'nnnl Vnr Ma tlin company wub secured by (lerdotz In i a bond ror $25,000 with tho Pacllio Coast Casualty Company. Tha cost of tha-work under Gor- flrfr. u-enf rnnltlflprnhlv nvor 'rnntrnr T f -... - .--.,. .... ... ..!"-"- --.-- y -.,, w.. ........... j mimirmt-m oi , iipnm .-mock ino, price und it was taken over by tho would Insuro him that tho complaint had boon taken down properly. These complaints when filed away would bo available for later inspec tion of proof In enso tho complaint had not been properly ndjusted. It Is qtilto apparent that thero has been Insulllclent attention Iii tho past as regards tho entries In thu general books and Bottlers' ledger. Thoro is no record wherein verillcatlon of tho settlors' accounts with tho general books was made, until last year, and much criticism could bo made of the system of tho condition accounts used to m,,t on of settlors' Account (ik'i'iuivu 1 1 t:.i a iliili mrninn mi parent faults havo ho i.."e nl- carelcssness and neglect, a :r".e- cated system was used for somen,!1 only to bo changed to one 0J ?-" pieps navo ueon taken to brine ti, books up to a standard whcrpNi, reflect tho present conditio ,n,1cy Business anil bo bo continued i correct statements aro available " v month. aro available eacli IK! This amount represents tho un- ns stuted by the management, to so- paid balances owing by settlors and euro cooperation In exchange of Is made un of the following: phone service. Total Et. Lor Balance J 75,780.33 i4;.4i 31.SST.1C fU5,914.U2 nccounts phone service. Total Eat. Lo L'iicnlri'( Insurance i-renilunis Ccnirct IJJJ.0.HI. Intmit .. 10,147.41 $ J.Wfcv ApTr,77i-tl Tninl Lien I nsold, Jlcin'.cnancs R417.rW8.l- This account ronro- fs .... I4.345.6C 0,156.7 Rii7,5iH.2i This account ropro Bents, as near ns was possible to as certain at this time, the value of un Bold approved llenB held by the company from tho state. Tha condi tion of this account Is far from sat isfactory und Its adjustment should Involve a careful check of tho ap proved land lists at both Salem and Deschutes, together with a check of thr laud plats and tho Settlers' Con tract Ledger. It is also suggested that a copy of each land list bo pro vided tho cashier at tho time, It Is submitted to thii Stnto Land Hoard. Upon notice of Its approval ho enn immediately make proper entry. This has never been dono In the past. In fact, thoro havo been about 15 land lists approved since November 1, 1910, and only ono was over entered. Kntrles correcting this havo Blnco boon made. According to tho man- agumeiu, not all of tho lands up- luu proved in thu past can bo sold as 11 !' was later agreed between tho Btato and tho company that tho company would not sell to' exceed 30.S00 acres on tun central Oregon Canal, us at first planned, this difference in acre ago would again bo available for wile. When this company was organized In 1910, two additional classes of usHt'lH were set up on tho books, which deal with laud Hens. They worn: Th mdloiinl 16.00 participating rlKlitu, ii,.llfiit.lf to i.l.l form con. tracu, 27.(11,1 ,icr ul l Jltil.MO.OO hkena ucrian' water rlnhu, 4,115 mr at 110 104,600.00 1128,273.62 112,358.70 Even ellmlnotlnK thoso with non-users of tho lands, tho de linquency In settlers' accounts Is very considerable and discloses tho fact that Section 5, In tho state con tract of 1907. providing for payment of tho Hen In four annual install ments or nn optional maximum of Boven yeurs has not been suincieni in a great many Instances. Tho un paid settlers' contract balances nl lotcd to tho different years In which tho charges became duo aro as fol lows: Year- Amount 1906 670.00 first item Is a churgo of S1.06S, 57C.22. This Is nothing more nor less than tho difference between the various assets and liabilities taken over as of November 1, 1910. It hns no value and Is chiefly an amount to offset tho capital stock credit which was set up at that time. (Statement under this head follows:) Fundcsl debt, $HI,7M7.75 This account practically represents tho purchnsa price of tho property on November 1, 1910, when It was sold to tho creditors of tho old Deschutes Irrigation and Power Company, who assented to tho plan of reorganiza tion of July 22, 1910. The bonds wero Issued for secured claims al lowed by tho recolvor In 1910. and covered, for most part, loans mado for construction purposes. The bonds which woro created as of January 1, 1911, oxplro January j, iudi, anu oear o por cent Inter est from July 1, 1912; tho Interest prior to tills hnvltiK been computed In advance nnd added to tho open ing entry. Tho trustco nppolnted was tho Merchants' Trust & Savings Dank. Tho affairs of tho concern were taken over by tho Commerce Trusi niul Savings Unnk, tho present trustees. The Issuo Is known ns tho Second Mortgage Coupon Gold Honils, reser vation having boon mado In tho re organization plan ror u possiblo Is suo of bonds for raising further funds to bo known as tho First Mort gage Donds. None havo over been Issued so that the present bonds aro tho only Issuo. No Interest has ever been paid on these bonds. Accord ing to tho trust deed thoy nro nil ; ttoti 12), fine niul linwi li.iin r... a..n i..n I III nn lllllrll nn nun nnii,Htlnn olnl. Jy pilSOlU that tho default of Interest navnionts continuing for threu mouths renders the principal all duo and payable. Aceounta payable aundry f 5,721.32 company beforo completion and fin ished. Steps toward a recovery under tho boner wero Immediately taken by tho company and an nward In their favor was made by an arbitration board In tho amount of $6,095.04 and costs of $2,258.35, making tho total $8,353.39. The case was then nppealcd by Gerdetz and now rests In tho Supremo Court. Should recov ery bo mado tho proceeds would Berve as a credit to tho North Canal cost. Funds for Itcplnreincnt of System As before stated, no attempt has boon mado to set aside funds to bo used either in contingencies or as an ultimate replacement necessity. In fairness it might bo said that a pro vision somewhat approaching this plan has been put Into effect lately by the management. This Is the cortlflcato of deposit for $2,500.00, which litis been drawing Interest Blnco November, 1915. Another ccr- tiiicatc ot iiko amount was pur chased In .September, 1916. Theso may bo called reserve funds In bo far as they aro being set nslde for future use, but no resolution In tho minutes or other evident author ity cites that they will bo used for any specific purpose. Ycarlyrepoirs to tho main flumo and other parts of tho system nro re garded as taking tho part of tho necessity of such n fund, at least for Bomo years, and It was pointed out that tho Stato Contract mentions no provision for a sinking fund, but that tho system shall bo turned over to the water users "In reasonably good condition and repair." (Sec- 1007 .'.'..'.'.'.'.'.'.'.' R70.00 I Note Payable 8,160.31 HiOfl 843.1,1 i ' .roll for Aiiuunt 1,830.62 190U 1910 1911 1912 1913 1916 Total delinquent Due aubnequent to 190C. 2,684.87 6,687.08 4.782.35 ... 6,1(8,48 . . . 6,260.95 . .. H.192.54 ... 8.618.47 ... 12,030.34 ...$63,288.24 ... 20,492.11 ... 1326.430.00 It must bo tlrst stated that tho Juno 17, 1907, stato contract reduced tho miiiuteiiuncit fees on contracts initdii subsequent to Hint dato from tho then existing price of $1.00 to K0 tuuts per Irrlgablo ucro, and fur ther specltled that at tho end of ten years from duto tho system was to bo turned over to a water users' asso ciation whuroln each bottler's inter est would bo represented by ono sharo for each Irrlgablo aero con tracted for under thu new form. In order that thoso Bottlers who had purchased under thu old form con tract (n lower lien prlco) might partlclputo In tho new association and enjoy the advantngo of the ru ducod fee, It was further stipulated In Soctlon K. that Biich settlers might by paying $6.00 additional per lr rlgablo ucro, bo placed on a par with those signing under tho new form. Hlnco 19 10 only two settlers have takou advantage, and us tho section nbovu referred to Is ho plainly an tip tloiial demand, this usset Ik not shown on tho balance sheet here with. It has been placed lit Impair mont to Capital Stock. Tho second Item wiih also set up IIH (III UHSDt III November. Hi 10 .....i represented the difference found at ' from this source monthly is sniiill Dim nine, uv ii rtt-Mtirvv . ..,... t 73.780.33 Examination of the settlors' con tracts disclosed certain contracts on many of which tho Hens had been paid In full and on others certain equities, but on which no mainte nance fees woro charged. In all In stances, with two exceptions, expla nation was covered by two causes, as follows: For tho most part tho lands had been paid for but wero not wat ered on account, of no laterals being near enough. Thu other genoral rea son covers contracts dated October 28, 1915, or Inter, and on which no maintenance Is charged for ono year, accurdlng to tho utato contract. No loss was estimated on settlers' accounts In as much as full tltlo to the lien rights Is vested In tho com pany until payment Is mado In full. In the case of the Interest accounts it Is estimated there will bo a loss when foreclosure proceedings are brought and a survey of the different accounts indicates a fair estimate would bo about $3,000. Foreclosure proccecM'.igB on con tract notes or maintenance fees are not prosecuted to any great extent although some effort has been made In tho post along this lino. Tho ex isting delinquencies, however, would seem to demnnd that somu strong remedial action bo taken, especially In Instances whom purchasers arc users. Actual settlers also comprise a very largu part of tho delinquency. Thu maintenance accounts seem to present n phase of tho business re quiring special attention. This Is made doubly so from tho fact that sales of land nro tit present very negligible and havo been for some time, therefore tho Incoming cash llond Interest due and unnabl. Taxra unpaid Accrued aceounta but ween the Irrigable ai-res contract ed for and the actual acres watered or Irrigable. This difference uas 4,115 acres, which was chorged up nt $40 an acre and occurred on a great number of settlers' claims It might ho slated that under the old original survey of the Pilot Iltitte Development Company prior to tho coming of the railroad, the lands, then lit u wild and chaotic Htate, were "surveyed' 'nnd tho lieu apportioned mostly from horseback My IIiIm It can be Inferred that the Irrigable acres alloted were for most partH merely oslliuatcH, quite poxnlh ly the best that Judgment could then dictate. At that time also tho linns were not apportioned by a set price per acre, but by an estimated "economic value" apportionment, so-called it., Mi, i.iiv,iii-ii ii, iiiku into con- Tuorororo, tins oxcohh acreage, g considered by the company as an ad ditional lien, which if not purchased by the settler un whose hind tu) tx. cess occurs, may bo sold to Intend ing Bottlers who have lands outside of the begiegatlou which can Uo reached by the company's laterals This seems to be u point of dU sentiou between thu company and tha 'settlers. Thu holders of con tracts No. 119-A and No. 233, whu hffd IS and 27 excess acres respec tively, brought suit und were us tolued by the court In tliolr i-outeu- (A tabulated statement of delin quent maintenance accounts Is printed elsewhere In this paper,) Cash, ll,o:t.Vtrl The details making up this total ure as follows: ra.li in band I 226.23 llank linn-It. - Unltrl Htatea Na- tlunal Hank, IWIIand , S.697.08 Central Oreuun Hank, llend S.iOuDt lleilmund Hank "I Commerce, IUM nittlid 3.403.83 CtllUat of drroalt 2.500,00 111.035.18 Canal Construct Ion, S.ttl,HH(l.5:t This represents tho umouutH charged to construction since .Miveuiuer i, 1910. ABide from thu North Canal construction, It consists of canal en largements and the building of lat erals and tho tlutshlug touches on the canals In 1910 and 1911. On tho Pilot Mutte and Central Oregon caualH, $63,550.34 was expended In linn tin it,,,, i i m n,i,i "K "tiii: m .. .- ...... .,(- ,..r.. , .., ,,...! . ,. ....- Hliierai on the nearness to roads, hty Iwas expended since that time to ii in, ,,t,u iwa iiiiuis, uic. I AUK 201.664.26 203.80 V.OH2.06 Capital .Stock, !tl,500,000 Tills Item was set up November 1, 1910, as an emblem of ownership. It rop resonts no Investment and has no value, and Its purposo would bo to servo as u basis of distribution of ownorshlp of tho property or of jirollts, If any. As beforo stated, tho bonds repre sent tho Investment of tho owners mid no money In addition wits paid for capital stock. This Item of capi tal stock Is .offset on tho other sldo of tho balanco sheet by tho account Impairment to capital. Contingent Liabilities and Income Tho llrst Item Is a liability, but the exact amount Is not known nt present. This $100,000 Is tho bnl ance of the $300,000 which was to bo paid to tho Deschutes Contract Company for tho $150,000 cash fur nlHhed by them to the company. A complaints regarding service nro transmitted direct by tho water user to ditch rldors, or any omployco of tho company thoy meet. Many of these complaints nro of minor Importance nnd nro of such nature that tho ditch rider rectifies them satisfactorily without reference to tho olllco. Some, however, aro not so easily rectified. Others again nro phoned in to tho otllco only nftor tho water user has been hnrasscd by somo condition (possibly misunderstood by him) un til his exasperation has caused him to fcol that an Injustlco Is bolng dono him by tho company. No regular form -of complaint Is used, though space is provided on the hack of tho patrolmen's weokly report, and a complaint fllo Is kept In tho gcenrnl correspondence flies. Would It not bo better, In order that moro uniformity could bo bo cured, that a regular form bo adopted nnd the, ditch riders bo sup plied with pads of thorn, tho otllco nlso, and let theso forms bo filled out for complaints ami sent In dnlly by tho ditch rider? In cases of serious complaints the signature of tho water user would bu advlsablo and This Particular Thursday Yuu nave much to bo thankful for this fall; It may bo hard to pick out tho most Import ant thing. You're thankful for food, for shelter, for safety this country has thoso things in a greater measure than any nation on earth. You're thankful for tho dominance In ihis country of the high principles of Justice nnd freedom. We're', thankful that we have bo many opportunities to servo tho men of this community and that we can of fer thom such fine merchandise as Hart Schaffner & Mane clothes. We'ro thankful for tho appreciation they have shown of our our efforts. Let us all bo thankful together. Always tho best that can be (pur chased In y Men's and Boys' Macklnaws, Arrow Shirts and Collars, Stag Shirts, i Loggers' Supplies, Dutchess Shoes, Florshelm Shoes, Newest In Hats and Neckwear, Boys' Suits. Coftlf It Hart ScUfacr A Mart MARTIN &. CASHMAN Corner Oregon and Bond Sts. HOME OF HART SCHAFFNER & MARX 13 ml,. ST.ITK.MKXT OF HKTTLKUS' MAIIXTK.VAXCK FKKS UNPAID-1 An at August HI, 1010. o o i il? Tv 2- F H W 8S -a a go &p i . i2. o Jr2 re trt '1 g $V S- utr . 2 5 S i a i 3 I !. i .- ?? r it 1907 $ 10.00 $ 10.00 $ !"1 r? $ $ 1908 30.00 10.00 20.00 1909 122,00 102,00 20.00 1910 332.13 131.00 179.00 22.13 1911 59S.00 130.00 327.50 54.00 86.50 1912 ... 1,481.19 130.00 738.94 464.00 148.25 1913 .. .. 3,717.30 1S9.00 1.G14.83 846.87 82.40 984.20 1914 . .. 5,345.63 408.00 2,375.10 1,223.23 S2.40 1,256.90 1915 .. 8,719.82 881,42 3,287.10 1,304.10 82.40 3,104.80 1916 .... 12.6S1.36 696.90 1,963.40 1,406.50 82.40 8,532.16 Totul Dclluq. $33,037.43 $2,6SS,32 10,525.87 $5,358.70 $329,00 $14,134.94 Due Nov. 1,1916 11,308.43, 594.90 1.430.00 9,277.53 Total $44,345.86 $3,283.22 $11,901.87 $5,368.70 $329.60 $23,412.47 Kst. Loss 9.35S.70 2,000.00 5,358.70 2,000.00 $34,987.10 $3,283.22 $ 9.961.S7 $329.60 $21,412.47 LOTS IN August 31. 1916. The North Cuiitu construction in cludes thu cost of thu contractor's work, and thut of the company after taking over tho tlnlshlug of the canal. It also Includes $50,000 of, the $150,000 bonus which was to be! paid to tho Deschutes Contract Com pany for their loan of $150,000 cash. No depreciation has been consid ered on this construction by thu company nor has any been Included In this report. No provision has been mad.t fnr Mho complete reconstruction of auy LYTLE and RIVERSIDE Easy Terms Our Ruyers Are Treated Right. See JOHN STEIDL, 2ffiS BEND .OREGON lpiilipiiiig ReVarnish Shabby Floors Varnished floors that aro 'worn and shabby detract from tho beauty of tho home. Keep them looking, fresh and now, by re-flnlshlng with ; ACMEQUAHiyt VARJJOTILE (Floor Varnish) A varnish made especially for floors. It wears well, looks well, does not scratch or mar white, and is in overy way tho i Ideal finish for floors of parlors, dining rooms, sitting rooms, libraries and hallways. There's special Acrao Quality Varn- 1 Ish for ovory surface. Floors, woodwork, outsldo doors, window sills, furniture, autos each require varnishes adapt ed to their peculiar needs. Tell us what surface needs varn ishing and wo will assure your getting the material that will give you best results, t Bend Hardware Co. BEND New Grocery This is to A nnounce that about Monday, Decem ber 4, I shall open a new gro cery store on Bond St.,vin the room formerly occupied by Erickson's Grocery. Your patronage solicited. M. J. McGRATH 1 tt u M I-yifeX. .v. ai i m