A BIG FAILURE. 



A special telegram to the Chicago Trib- 

 une dated Phoenix, Nov. 16, says: The 

 Arizona Improvement company, controll- 

 ing the largest irrigation system in the 

 Southwest, will pass tomorrow into the 

 hands of a receiver. With it will go the 

 Arizona Canal, forty miles in length, with 

 over 100 miles of lateral ditches, 25,000 

 acres of fruit land, and 52 per cent of the 

 stock of the Grand, Maricopa, and Salt 

 River Valley Canals. The water power 

 canal, generating 5,000 horse-power, is 

 also included. 



Two suits in foreclosure were filed this 

 afternoon by the Merchants' Loan and 

 Trust company of Chicago for the bond- 

 holders in the system, who in turn have 

 appointed a Reorganization committee, 

 consisting of Charles H. Fairchilds, Pres- 

 ident of the New York Security and Trust 

 company, New York; W. H. Burroughs, 

 banker, of Middletown, Conn.; Morgan T. 

 Bulkley, President of the JEtna, Life In- 

 surance company of Hartford, Conn.; A. 

 B. Leach, banker, New York; Andrew 

 Crawford, attorney, Chicago. The greater 

 number of the bonds have been deposited 

 in New York with this committee. The 

 bonded and floating debts involved are: 

 Arizona Improvement company, $1,234,- 

 000; Arizona Canal, $526,000. Interest 

 on the debt was promptly paid till last 

 January, when the first default was made. 



The Reorganization committee is willing 

 that for a receiver there be appointed W. 

 J. Murphy, president of the companies. 

 This is to be opposed by the &ponsors of 

 the third suit filed almost simultaneously 

 by Illinois holders of land in the vicinity 

 of Glendale and Peoria settlements, irri- 

 gated from the Arizona Canal, who also 

 pray for a receiver. The trust company 



suits were instituted at the request of the 

 canal management, who can no longer see 

 their way clear to the payment of the im- 

 mense interest charges in the present con- 

 dition of their property. The canal must 

 be enlarged, and to secure the best results 

 water storage is essential yet impossible, 

 without large financial assistance. 



The collapse was immediately caused by 

 the necessity for a new dam, carried away 

 by floods, necessitating an expenditure of 

 $250,000. Large sums have also been ex- 

 pended in the development of the citrus 

 and general fruit growing industries, and 

 in securing colonists for the companies' 

 lands, and in the acquirement of water 

 rights in the lower lying and older canals, 

 whereby control was secured of the water 

 supply of the entire northern half of the 

 Salt River Valley, aggregating an area of 

 several hundred thousand acres, watered 

 by 265 miles of main canals and laterals. 



Orson Smith, President of the Merch- 

 ants' Loan and Trust company, said last 

 night: "Our bank is simply trustee for the 

 bondholders, who are chiefly residents of 

 Scotland. The Arizona company is an ir- 

 rigation enterprise, and has been in busi- 

 ness for many years. Lately it defaulted 

 on interest payment on the bonds, a failure 

 due no doubt to' unsatisfactory business, 

 and hence the action of the bank as 

 trustee." 



WYOMING ELECTION CASE. 

 The case of Henry Rasmussen vs. Fred 

 M. Baker, opposing candidates for county 

 treasurer of Carbon County, Wyoming, has 

 been decided by the Supreme court in fav- 

 or of the plaintiff. Baker was given a cer- 

 tificate of election, being credited with 

 1189 votes and Rasmussen with 1162. The 

 case rested upon the fact that 104 Finland- 



