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<br />many speculative water ~ights had been issued, and that <br />the capacity of the canal had been oversold, institutec <br />a proceeding to cancel all the "vater rights issued in <br />excess of the decreed priority of its canal. To \vit: 761.8 <br />second-feet, excepting such water rights as had been <br />actualiy applied in the irrigaton of lands. This suit was, <br />of course, bitterly contested, bUI it resulted finally in a <br />Supreme Court decision in the year 1900 affirming the <br />District Court in the cancellation 8f the fraudulent rights <br />to about 100 cubic feet of water per second of time. <br />This decision reduced the number of outstanding water <br />rights to the amount of 950 cubic feet per second, rep- <br />resented by stock. <br /> <br />CONTRACT WITH THE <br /> <br />GREAT PLAINS COMPANY. <br /> <br />On October 29:-,1897. a contract was entered [nto be- <br />tween the Fort Lyon Canal Company and the Great <br />Plains Water Storage Company, by the terms of \vhich <br />the latter was give'1 the privilege of enlarging the Fort <br />Lyon Canal to a capacity of 1 ,800 second feet from its <br />headgate by Gageby Arroyo, a distance of 42 miles, in <br />order that they might take all water taken in from the <br />river in excess of 933 cubic feet per second (which was <br />the sum of the established priorities of the Fort Lyon <br />Canal to that date) and convey it in a canal called the <br />Kicking Bird, from Gageby Arroyo to a series of natural <br />basin reservoirs on the plains north of Lamar, which <br />belonged to the storage company. Under this contact <br />the storage company repaired the dam and made new <br />aprons, constructed new and substantial headgates and <br />VJaste gates, \Nidened the canal, strengthened its banks, <br /> <br />18 <br />