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but not in sufficient amount to continue the canal work, <br />and in May, 1886, the property was sold under deed of <br />trust for non - payment of interest. The purchaser was <br />Otis L. Haskel, of Denver, who organized a new corpo- <br />ration entitled "the Arkansas River, Land, Reservoir and <br />Canal Company," to whom he sold the canal, retaining <br />a large stock interest. <br />The new corporation fared little better than its prede- <br />cessor; funds were scarce and difficult to obtain on irri- <br />gation securities, and the scheme was a white elephant <br />instead of a source of profit, notwithstanding the fact <br />that alfalfa, which was the principal crop produced, <br />yielded well and commanded good prices for hay and <br />seed. The farmers threatened the management be- <br />cause of a short supply of water, due to lack of a proper <br />diverting dam and headworks. The result was that the <br />head of the canal filled with sand and during ordinary <br />stages of the river all the water flowed by the headgate. <br />On September 19th, 1887, Mr. Haskel succeeded in dis- <br />posing of the property to J. R. Burton and T. C. Henry, <br />who purchased all the stock and property excepting <br />about 25 water rights then outstanding, representing <br />about 36 second -feet, for the consideration of <br />$30,000.00. Under the new organization with T. C. Henry <br />as Vice - President and General Manager, active opera- <br />tions were again resumed and the canal was enlarged <br />to the capacity of 495 cubic feet per second, from the <br />headgate 17 miles to Horse Creek, and extended be- <br />yond Horse Creek to Gageby Arroyo, a further distance <br />of 23 miles. This work was during 1887 and 1888. <br />Several thousand acres of State lands were purchased, <br />