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About Rogue River courier. (Grants Pass, Or.) 1886-1927 | View Entire Issue (June 2, 1911)
hi J WW i f'i PI 1 W v UJ Granta Pass, Oregon. May 29th, 1911. Mr. J. G. RIbbs, Secretary, Josephine County Irrigation and Power Company, Grants Pass, Ore. Dear Sir r am In receipt of your favor of May 26th, which to me, ap pears to bo substantially the same as your offer made and published In The Courier under dale of May 1 Ttli- As there Is no material difference In your two offers, I respectfully decline your offer again, and refer you to my letter of the 23d, and particularly to the statement that we would much prefer to have you put the ditches In shape, and take water from the Golden Drift plant, as you did prior to the flood which disabled the dam, on which repairs are now being completed. Tho most Important public question at this time Is whether or uo the farmers are going to bo supplied with water and how. This Is far more Important than who owns the ditches. The ditches have no value unless In uho carrying water to the land, bo that it may become productive and warrant Improvements. Tho three factors to the Irrigation question, are the public; your company and the Golden Drift stockholders. The public good must be considered first, and It Is now cleur that It Is your duty to make good, or give a specific reason why you should not. The water. Ih. available; the power Is available; the new pumps aro ready for the purpose of pumping water and a few ditches can be made nvnllable within two weeks. , A recognition of the rights of the public In Irrigation matters was one of the reasons put forth to Induce the Court to Issue Re- j celvers' certificates, so that the Golden Drift plant could be repaired j and the water rights preserved. j Tho Chlcago-llogue River company Is a large Golden Drift, stock- j holder, and as such hnvo recently and are now advnnclng the plain tiffs large sums of money to spend oti the property for the same reason. The preservation of these water rights to practically all of the water In Rogue River thus making the water available for , use in North Rogue Valley and Is the most Important Tudor to the future growth of Grants Pass. Now that we have nearly done all we undertook to do at the Golden Drift dam, we want you to go ahead with the distribution to the farmers, of (he water we have made available. Prior to the time you made the offer embodied In your letter of the 17th, we did not feel called upon to make additional cash expenditure ex cept the reconstruction of the power house before winter. The alternate proposition was made for u business reason, as wo do not want our property to remain Idle, but would rather have It. a source of revenue to tho Receiver and accordingly expressed a willingness 1o do the best wo could with the ditches available this vear and make a large system available next year while there is ilme, Instead of waiting until there Is no time available, as you have done this year. As you have not done any work on the ditches or made any ar rangements to use the ditches to supply the farmers with waler, I felt we must do the necessary work and thus prevent any more delay, which will be a disaster to out mmnnliy. and It involves directly or indirectly every resident of Grants Pass and vicinity. It Is because tho Irrigation question Involves every one of us, either as property owners or cltl.ens, 1 am replying to your last letter at greater length, than our Interests ns Golden Drift stockholders call for, and as such will insist that this Irrigation business be put Into snme practical and business like shape, and It is my opinion that the public Is entitled to know Just why and all about It. In vour letter of the 'Jt'.lh. you refer to the different parts as First, Second. Third. Fourth and Fifth. For a clearer understand ing I will reply In tho same order. To your First 'statement of facts" will say that wo would like to have you add to your expenditure of $110, nun, so that the dltchex will carry water this season. Hy the first day of .lul the Golden Drift properlv will have cost Its stockholders approximately $:t4it, oiHi. Irrigation was one of the Inducements to make this In vestment. Wo are perfectly willing you should be given all the credit vour Investment entltl.s you to. We ask the public not to overlook the credit duo the llH'Minn without counting the several years' Interest that should be added. To your Second "statement of fail" I will say that I do not know what your Invest mi nt Is worth to you. but do know the property you offer does not warrant a fHO.nun rash Investment by us at this time. Wo have no ohl.atlon to any prh'o you may ask for It and trust you tuny find a buyer To your Third "statement ol fait." will say that we reall'.' your Investment win mad" on the Golden Prill contract and that the Investment Is of 111 t It- value unless the contract Is carried out. II Is actually the life of your prolect and also what Induced many land and realty pun bases I'nder that contract you were to pro cure all tho water users yon could and dig all tho ditches you could. Since July, 1909, you have done neither to the best of tny knowl edge. You say tho contract has failed to furnish water because of tho Inefficiency of the plant. The year ll'aa showed that the plant could famish many (hues tho amount of water required of It We do not pretend to have any control oyer the flood of i!1"1-'1. and aro In no way responsible for It or the damage done by It The l"ss was a public calamity, as well as ,i pilvuto one. What helping band did your companv extend to u In out hour of need? None. You certainly know that every effoit was put foith by ns to put the propeitv li repair and that these repairs are good and per manent. We extend an Invitation to every one of your stockhold er to visit the dam ami see for themselves U to the Golden Drift litigation, will sa that It did not Involve vour (ompativ s a party. It was not over an wat r right or ques tion that could affect the water users. The Receiver can do all the company's offi.rs can do. In fact the Receivership was the best thing for the property In the financial condition It was In. You knew of the financial condition of the Golden Drift Mining company when the contract was made, and the flood came after wards. To your Fourth "statement of facts." will say that it is my opin ion that there is more irrigation sentiment in Grants Pass today than there ever was. In fact many people are positively anxious for it. I have personally been here about two years and know of no public offering of your securities; nor do I know of any plans your company has put forth except the Williams deal and your present attempt to force an experiment on the public, in the shape, of an Irrigation district. My experience with corporations is that, if Directors will not put up the big end of the money required, it Is no use to appeal to stockholders, and stockholders are right in such an attitude. You say you do not feel like taking the leadership and bringing success to your company by raising; and Investing more money. You have nbonr nnn stockholders -why not let the other 2fl3 try their hand at. It? They could not do less business than your company has done since July, 1909, or injure the ditches by working and spend ing money on them. You say you do not want to sell without assurance that irriga tion will be accomplished. I would add to that, and say not sell unless the buyers can furnish water. It has never been clear to rue community vvnat assurance the Williams crowd gave you of a water supply, or where an irrigation district would get water. In answer to your Fifth "statement of facts" you say vou do not want to defeat our efforts, and in reply will say that vou will never see the day when you will defeat our efforts, as we actual ly work and spend money along judicious lines that increases the value of our property. The Golden Drift part of the irrigation business, as it was lined up in 190!), was to pump water in the ditches. The plant Is now In a condition to pump water into the ditches just as soon as tho ditches can be made readv lo receive the water. Wo have no particular desire to acquire your property except that it Is advisable to havo tho Golden Drift plant used, and good bus iness methods compel us to find a way to have the ditches used If yon are not going ahead with the irrigation of the lands ' The use of the plant would give tho Receiver an Income and thus be a lienolii to our underlying investment. Referring to my company-Yo s..y-"whenever it has shown self to be on a sound financial basis." which compels me to ca the publics attention to the following facts: The Golden Drift stockholders have made the largest single investment of nionov In the community. They are at this time increasing thai "lives t" tuenf. hoy have the largest monthly payroll of anv concern in or around Grants Pass. They are the largest users 'todav of ce ment Iron and lumber. They are the largest buvers of hardware I hoy have the largest grocery and butcher accounts In town Thev havo for sale at reasonable rates what tho public needs - water anil power. The Investment of $50.0(10 more by them in the construction of ditches will give the public a better water system an.) bett'u service ban any now concern can give ox.-i.pt with an investment r $:,nn . 000. x.ou have us ("minority stockholders" , with vo and with '".r money already Invested In your county.' against the posslbl Ity of looking for and finding a new crowd that will nl V"' ""'' '"lh people water front onie ,,nl o n source, while the waters of Hog,,, River with a product! v J i , yarly are flowing under the Six, I S ee K , going to waste, and which you apparently do not wan cause o our ownership and personal prejudice. Your a.timde in jures tho land owners, no, ns, as the loss of Income to tm fro, on w, he easily off., by the increase In value V.' "w , " tights, and power rights owned by the Golden Drift. Replying to your first nai-iLMMiih ,,r ,.. ,., -t.he di.ehe. , .he,,. ,,;; ,,;;,,-;; - : bo used money must be spent en them. I Would I. e , 'nd stockholders money on anything unless It can ,e safel h, Income trolll such n too...,, ..f .10.1..,. , ' ' ,,., , "i M.es is a matter of the futur. " "' "...si.i.ieos would advise In property where the Investment and mm. i won .1 require an actn ,, ,! av, To niv file m.I a matter of tin i. . i no investment of nmiiev property s bevond .un til ll 111' tl,., ' "f "' "-h ''hi" terms as could bo n,'ri,;. Z As to showing our financial soundness, will s,v that u, i,,v 1 n able to meet evorv rcMui-c,,,,.,,, f , ' ' '" VVt the most unfavorable ,,,nd Go, , , .." ' c.n.bl ,1., ... ,,,,,..1 a , ' . '" "- ' i""--umc Hint w. " " mo. iav.it nine a good wo: king ue.it mi. h as we n,,w hav leal a'ue oi your Property, or vonleii.e , .1 . : ." " " "".er or con a ,-rlc ,,V I, ',,;'.... . ,',;, ; U:n,'',',, "" '" Iihes at 1 ."11 1 ..ii invest 111 ii is poll, v w i t t i us, as a number . custom, r-. and tin v invested tliej, gallon and b..vo alwavs been for it Our offer has never uia'eiial'v yon before vou made the William sin tl a ile.il. and It had no requirements you want cotulltioiis. especla'ly with '. to begin with. Vcii. tl,.. . 1 I. I . oilier. It is a matter of changed fro deal m the offer ihm.i., to Yon had the right to i.e.i... " -ii ion i rmn us. ,. , ,, ..,.1,! ID III!,'.' on us I W t ll nix-, ii lapnaii niter von w.mv party ,,f .. I,.,... i.. x.. ' ,-' "' " . ' "I' III I1' .111 U !:ll',a iv.'.,.t I, .,...... , . .. ' ' ' ' ' " ' -"' '. "or e- I pie want actual a to such op Tin petises bv local maps and piet tires. Yon told the people the ofganl '.i d in t hree vv eek. and year haw elapsed Has It be, $ 1 . . 1 1 . i . i . 1 1 . , , t ' oiistruci ion. not III C't VOIIf Stockholder.! them would be our future water motley to ret tl,,, ,,-mftt s of ll'l'l- ' and willing to pav a fair price else the largo amount of a deal. I know l,::itlon district business would ), "ir months of the best part of the . h, ,it- !,.. ..... i... i .. ... '""i "hi iniiii is a.ie i.i sell st Irrigation around mi cents on the ng pari lied bv the sun IV .liable Water An Irrigation .lis. ; over (!,!. on acres, whl, h was eon unable to s, U t bonds irrigation .listrr t bonds when tin 'ti iii t t on, is are going i ggirg i of buyers do'lar. and in the meanwhile tic land Is be because of the failure to ti ll let in I'.i t''iii dreg, oi, etubr.r r el g.ll'.ied V, ,1 llO!t ,, ,',olt el .. itrs looieu :;.(, row hmhiiii:. i mily three years' time the people lu re b.ne t,i wait to have you try out the same experiment? Why not vole on the district at once and have done with It and not retard the investment of private capital and also the los of crops in the meantime. If it is bothering your board to raise $10,0"00 for ditch construction, that $1,000,000 for a district must look as big as old "Greyback, unless it is so far away. The further a mountain is away the easier it looks to climb. It is these unsettled condi tions that stops Investment of money and makes business stag nant. I would like to have you tell the local public and my people who appointed your board the guardian of the public on Irrigation matters. Your company is a private public service corporation. Ours is the same, though larger. As to the value of franchises, I apprehend no difficulty In getting a franchise if the occasion for doing so arises. The franchises were not given to you by the city and county to sell, but to use. Your claim to be the guardians of the people does not entitle you to set up as a value, what the people gave gratis, for the purpose of getting certain results. We offer to give such results and are expected to have tp pay you for the privilege. la answer to paragraph three of "proposition" will say that the suggest ion of a board of arbitration is not in point at all. You have made an offer to sell us your ditches for $35,000, practically cash, which was refused. There is no business arrangement exist ing between your company and my company, and I do not propose to make any unless the terms are such that it is clear that it can be carried out. by my company. The ditches require the Immedi ate investment of money, which we cannot afford to invest except m definite terms. What we want Is to have the ditches fixed up 'and extended. If you will not do so we are willing and will try to find a way to do it where our money will be secure. In answer to your paragraph Fourth of "proposition" will say that it should be made clear to the public that I have not asked for or wanted your ditches for nothing nor have I asked you to give the property away. I contend that we can give the public a better irrigation service by next year than the people could get In any other way. Your people thought, so when you made the con tract to use the Golden Drift plant. I invite the public to visit the Golden Drift plant to inspect the water supply, the reconstructed dam, the pumps and power plant and the ditch connections and de cide for themselves whether or not it Is so and actually available now in 1911, and not In the protective. I do not claim to represent' large financial Interests. I do rep resent good substantial people who have ample money for require ments of the contemplated system of Irrigation. These people need no Introduction to Grants Pass. They have been Grants Pass' best customers in a business way, and without actual figures I have rea son to believe, we are today. As to your statement about my getting Josephine stock from the stockholders for nothing, and reorganizing the directory, etc., will say that it is not my purpose or lo my liking. I have been vol untarily offered about 10,000 shares of your stock gratis to pro vide water. All such offers have been refused, although I ap preciate them very much. These people have a right to their money back and we are able to repay every dollar Invested in it. Your statements about wanting your property without security, etc., are misleading. My offers all carried with them a statement of fact that you would have all the ditches constructed, and to be constructed as security. You are given as good as you give us and would thus actually make a water supply available for this year, that would be reliable and certain. The ditches are of no value to us except for use, and it is a certainty the ditches cannot be used without expending money on them. Such security cannot under such circumstances depreciate, but would be better and much more valuable from year to year. I have repeatedly suggested that you sell us your ditches and take in payment therefor an issue of first mortgage notes, draw ing interest and secured by a first mortgage on the ditches constructed and to be constructed, running to your company or trustee, for a period of 3 or 5 years. After having made such a deal you could have the notes made negotiable In small and con venient denominations and distribute them to your stockholders pro rata, according to their holdings. As these notes would be ac cepted for r.o per cent of any water charge, the notes would be equivalent to ready money to those using water, and where the notes were in the hands of merchants, they would be equally valuable and convenient, as the merchants all do business with some of the water users. The notes would easily pass at par and would ac tually pay bad; every dollar invested in your company. The is sue would decrease yearly and the security Increase In value. I would not aft.mpt to do more than this, and if you are still unwilling to do business on thes-? lines 1 would advise you to stop the negotiations, as far as we are concerned. It Is not' a question of price with us. or what the ditches are actually worth, so much j as it is to g t d,,wn to actual irrigation. If we were to take up your system, torn, that the hot season ts imon in It nlll 1,n verv hard to give good ,ervi -e and please all the people, except those actually under the ditches now constructed, as it takes time to dig ditches in virgin territory. This condition makes It prim arily important that your stockholders are provided for according to their investment and not on an appraised value of the prop erlv. if our only desire was to got tho ditches as chenplv ns pos sible, there are two ways open, one is to go In the market and buy up your stock the other to encourage your present Inactivity. I do not want tho ditches unless I can get them on a basis that would encourage our stockholders to Invest money enough to build up a big system, and wv don't want to benefit by a loss on the part of your stockholders. Worked out there Is enough for all. Wo are all - our sto. kholders and ours are Intersted In having Irrigation and we .an all afford t wait for the return of our initial and res pective investments and let every dollar that can bo raised go Into di'cu construction- ,),,,, iUlll onlv thi(t 1)u)U1 Hp Wf yMi,yi It will not be an experiment, but a certainty. I trust vou see your way dear to meet my requirements, so that a deal can bo made. If Vou do no- want to take the responsibility. I suggest you call a stockholders meeting You will havo a good nttotidarce. Whatever you do please act quickly, so as to give mo time to fully Inform tny people, and the funds will bo forth coming. Very respectfully, Geo r anders, Agent . v