THE IRRIGATION AGE. 



89 



which tended to show illegal charges, demands, or 

 threats by them, or any of the defendants, except 

 the allegations of the demand for the payment of 

 construction charges prior to the completion of the 

 project from those who applied for water rights 

 prior to January 24, 1911. They asserted in their 

 affidavits that these shareholders had, by a contract 

 they made through the association with the United 

 States, on that date and by their subsequent action, 

 estopped themselves from relying on the contract 

 of October 25, 1905, and their applications regard- 

 ing this matter. The defendants Magruder and 

 \Yalter testified that no illegal or excessive charges 

 for operation and maintenance had ever been de- 

 manded either on account of expenses not necessary 

 or relevant to the operation of the Belle Fourche 

 project, or on account of betterments. They denied 

 threats of cancellation of water or homestead rights 

 on account of failure to pay such charges. In addi- 

 tion to the averments of the amended complaint the 

 plaintiff produced the affidavit of its secretary that 

 the defendant Magruder had been violating the 

 restraining order by giving notices to shareholders 

 dated October 25, 1913, that they would suffer the 

 penalty of one cent per acre per month for the un- 

 paid operation and maintenance charge for one year 

 after July 21, 1913, of two cents per acre per month 

 for two years of such unpaid charges, three cents 

 per acre per month for three years of such unpaid 

 charges, and so on, that in compliance with a re- 

 quest for an itemized statement of the expenditures 

 to be charged against the project the defendants 

 furnished one in December, 1911, or January, 1912, 



which contained an item of $78,000 for betterments, 

 and that the plaintiff had been furnished with state- 

 ments of expenses incurred in detached offices not 

 connected with the project. The plaintiff insisted 

 that the provision of the contract of January 24, 

 1911, between the plaintiff and the United States, 

 which provided for a modification of the stipulation 

 of the contract of October 25, 1905, to the effect 

 that the charges for construction should fall due 

 after the completion of the contract upon which 

 provision the defendants relied in part for the es- 

 toppel they claimed, was unauthorized by the share- 

 holders and produced a copy of the resolution of 

 the shareholders on which the contract of January 

 24, 1911, was founded, which seems to give no such 

 authority. 



From this brief statement of the course of this 

 suit and of the evidence before the court below it 

 appears that the order for the injunction was not 

 made hastily, but after elaborate argument and de- 

 liberate consideration, that there had been no an- 

 swer made to the complaint, that there were many 

 issues of fact involved and their decision was con- 

 ditioned by conflicting testimony. The discussion 

 which appears in the earlier part of this opinion and 

 the legal questions suggested by the evidence leave 

 no doubt that the questions of law to be ultimately 

 determined in this suit are grave and difficult and 

 the situation of the parties disclosed by the com- 

 plaint and the affidavits was such that it might well 

 have appeared to the court below that the injury 

 of the plaintiff and its shareholders would be cer- 

 tain, great, and irreparable if the injunction should 



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