Laserfiche WebLink
turn over the Canal according to the expressed condi- <br />tions in the water right contracts and deeds. The new <br />La Junta and Lamar Canal Company being now in pos- <br />session of the property, refused to issue the stock to <br />the holders of water rights, or to pay the indebtedness <br />against the property, which amounted at this time to <br />about $40,000.00. Again the property was thrown into <br />the hands of a receiver, under the John Hess suit, as <br />the Court in the original suit had not closed the matter <br />because some of the receiver's certificates, to the <br />amount of $25,000.00, debtedness at the time that he <br />had given the order to turn over the property to the New <br />La Junta and Lamar Canal. The Court, therefore, re- <br />tained jurisdiction until this indebtedness was paid. <br />Another suit was instituted and carried to the Supreme <br />Court of the State, and as a result, under the order of <br />the Court. The Fort Lyon Canal Company, on July 9, <br />1897, was organized and incorporated by the water right <br />owners who held their rights through deed or contract <br />from the Arkansas River Land, Reservoir and Canal <br />Company. To replace the new La Junta and Lamar Ca- <br />nal Company, the new Fort Lyon Canal Company, the <br />present corporation, was capitalized for $525,000.00, <br />with the capital stock of 105,000 shares of the par value <br />of $5.00 each, and stock was issued to the water right <br />owners on the basis of 100 shares for each cubic foot <br />per second foot of water that he was entitled to under <br />his contract or deed. <br />The Fort Lyon Canal Company immediately came into <br />possession of the canal, and after it had gotten well upon <br />its feet many of the water right owners, realizing that <br />17 <br />