Show Plan Of Settlement Of Bonneville With Its Creditors Creditor give the I In In order to give the people pc-ople who land in nonneville Illi the tion Irrigation a tion district a chance dunce to stud study the propos proposed d pan of settlement we are arc arcI I printing in full the tha information contained con con- con contained in the contract which we are arc asked to si sign n if we accept the prop prop- proposition proposition proposition and desire to go through with it This will give the water users md and others a chance to study this I i proposal at home so when they go o up to the office otTice of the Donneville Bonneville oI I Irrigation company compan the they w will not lave to ask many man if any questions I as they will thoroughly understand I f i the plan and hereby thereby it will take less of the officials time and expedite follows up The contract is as fol- fol lows kwa Irrigation WH WHEREAS REAS the Bonneville tion District a municipal corporation of Davis County Utah is indebted on n account of outstanding bonds with accruing and delinquent interest thereon andon and on account of outstanding ing ing outstanding unpaid warrants and other obligations obligations obligations as of March 1st 1929 in an aggregate sum of approximately y which sum is far in excess ex- ex excess District cess eeSS of the ability of the said sait Dis- Dis or the lands included within it to pa pay andI and I WHEREAS much liti litigation tion ex- ex expensive expensive pensive to all aU concerned has b ben been initiated and prosecuted by rind and an against the District with th the tha yiew view of settling certain legal questions and n determining determining- certain legal leg rights right ri and duties all of which litigation liti ha has been of practically no avail to any an y of said litigants in accomplishing the he purposes intended intE or otherwise and WHEREAS WHEREAS the best interests of othe the within District of the land owners with with- in m it and of the creditors thereof require require that an amicable adjustment be made looking to a more definite rind nd fitting fitting- manner of fixing the g amount of the obligations of each of othe the various arious land owners O and securing ing the payment thereof to fro the var- var ious various creditors creditors- odie WHEREFORE in consideration of he e mutual promise herein of the theland land owners the undersigned sub sub- submit submit mit to said creditors the following proposal 1 That each of said creditors g however his claims ma may be evidenced e assign to a corporation to be formed pursuant to the laws of Utah under r the name Pacific Holding Company all 11 of his claims against said District and receive in consideration capital stock in said Pacific Holding Company Compan of a par value equal t to o 33 per cent of the face amount with accrued interest to March 1 1929 of the obligations so assigned assign by him i The Th Pacific Holding Compan Company y should be organized with both com common com com- common cornmon mon and preferred stock so tha that t when pa payments are arc made as herein herein- hereinafter hereinafter hereinafter after provided the preferred stock stoc k should hould be retired and the receive ers their money I 2 That eachor each of or the undersigned execute his promissory note to said saidI Pacific Holding Company secured by I bya a mortgage a e on his land to which wa wa- wa I ter water has been allotted in the Bonne Donne- Bonneville ville Irrigation District in the sum set opposite his name hereto sub sub- subscribed sub sub- subscribed subscribed scribed and deposit said note and mortgage e with Walker Brothers Dankas Bank Dank as Trustee for and for delivery to tJ atthe said Pacific Holding Holding- Company at the time of its organization and upon pon the the terms and conditions hereinafter set forth Said note and mort mortgage a e shall provide by their terms that the maker thereof shall not be liable for nn any personal claim or 01 judgment jud nent in excess of the amount realized frond froll the sale of the mortgaged property I Inor nor in any event ent for any deficiency judgment I 3 That each of said notes bear date March 1 1929 and bear interest at the rate of six per pel cent per annum interest payable seni- seni annually seni-annually annually on the 1st day of September and 1st day of March of each su succeeding year first semi annual emr interest interest payable Del s 1 J rase semi annual interest semi annual in- in terest payable March 1 1930 and twentieth one-twentieth of the principal with I o accrued interest on the 1st day da of September 1930 and one on the 1st day of September each of o each i year ear thereafter until and including I Ithe the andon andt 1st da day of of- of September 1940 1940 1940 and andI on the 1st day of March 1941 all of I the remaining principal together with all unpaid interest shall shaH be due and payable I I 4 When 65 per pel cent in amount amour I i of the holders of outstanding bonds bone and coupons of said Bonneville Irr Irrigation I galion gation District and 75 per cent i in amount of the h holders of all other claims a against said District shall have hae assigned their said bonds cou- cou coupons coupons pons and other evidences or claims Distrito of indebtedness against a said snit Distri District t to said Pacific Holding Company then pro proceedings shall be instituted under the provisions of Section l G-l L G Chapter 68 Laws of Utah 1919 known as the Irrigation Distri District affairs Law for the winding up of the af- af al fairs of said District At the sale of c th the tha assets of said District in course cours of said proceedings the said propos propos- ed cd proposed Pacific P Holding Holding- Company shall bid in said assets consisting of the wa- wa w water ter rights canal system pumping g plants cash andall and all other property property of the said District and shall pat pa y by surrendering up for car ca can can- cancellation collation the bonds claims and other evidences of indebtedness held by it i t ag against said District It is understood that in the re- re receivership receivership proceedings ings all funds here her e paid b by the water users by byway byway b way of taxes for retiring the out out- outstanding standing bonds of the District upon maturity and now under the control of the county or District officers ap a ap- ap at about shall shad be available for and the tax payers paye rs and District consent tha t I same shall by order of Court be h e I turned over la I the said Pacific Hold Hold- Holding Holding ing Company as a part of the funds fund s representing 33 13 33 per cent of al all creditors claims 5 Thereupon the said Walker r Bros Bankers Trustee shall r to said Pacific Holding Company Company th hc notes and mortgages mort es ag-es deposited wit h it as Trustee under the provisions provisions o f Paragraph 2 hereof to be held by it It and the amounts represented thereby to to be collected by it and devoted to I I I the purpose hereinafter stated G C At the same time there shall hall hallbe be or organized under the General Cor- Cor Corporation Laws of the State of Utah a mutual irrigation company to b be c called Progress Irrigation C Com Com- Company Coir m- m l pany with an authorized capital capita stock of divided int into shares hares with par pal value or of orI o 1 each I 1 This stock shall be represented by b y Class A A stock and Class B n stock ti each of the same par value There shall be shares of Class A CIA stock and shares of Class B D stock Class A CIA stock shall be subscribed sub sub- subscribed sul scribed only b by water u users ers whose whose c land lies below the foot canal cana Class B D stock shall be subscribed subscribe by water users whose land nd lies above above the foot canal and below the SO foot canal and the articles of in- in in corporation shall provide in substance that the directors of the Progress Ii Ir- Ir Irrigation Company in the may m-ay exer- exer rise of a sound discretion but arc ar not bound place a higher her rate of as- as as for operating purposes up- up upI upon upon I on Class B stock than upon Class A stock to balance or equalize the greater atel pumping cost of water used b by Class B stockholders I 7 The said Pacific Holding Holdin Com Company Com Com- ComI Compan Company I pan pany shall transfer and convey to t I said sait Progress Irrigation Company i in inconsideration consideration ration of the delivery to said saidI sai Holding Company Compan- of the notes and andI an I i I referred t to i the assets of the Bonneville tion tier District except cash purchased purchase by it it The said assets so conveyed to the said Progress Irrigation Com Com- Con Con- pany shall be received by it in pay pay- pa nent ment f for r such number of shares of c l its G capital pital stock st ck as will at the rat rate of oOOO share pc per pe- equal the face fac amount of tile tue said aid mentioned notes note 11 I and mortgages es The said Irrigation n Company shall thereupon cause said shares of stock to be issued to the undersigned and all others who may hereafter become parties hereto in inthe inthe inthe I inI the ratio of one share of said stock for each of the amount of the note of each such person delivered to the said Holding Company as herein herein here- here herein in provided for and each of said saidI persons shall simultaneously endorse I I his certificate of stock in said Irrigation Irn- Irn gation Company and cause the issuing issuing in ing officers thereof to deliver saidi said I i i endorsed certificate certificate to said Holding i i j Company as security for forthe the payment of f the amount of said note note I 8 Out of the proceeds of sa said ci i notes dotes and a mortgages es given it by the undersigned ned and such others as may ina become partieS hereto the said Hold- Hold HoldI Holding Holdin in ing Company shall pay all legal and I other Ct costs and expenses of its or- or organization or organization maintenance and opera opera- tion operation and the costs of the organization or- or organization organization of the proposed Irrigation Company Compan together with the costs and an expenses of all transfers of property and securities securities rights and assembling of and the dissolution and wind wind- Bonneville ing winding up of the affairs of said Bonne- Bonne ville Irrigation District all as here here in in provided for to the end that the undersigned ed shall in no event be required re- re required re- re required to for all pay purposes connected connected con- con with the working out perfect perfect- in ing perfecting and carrying to conclusion of the compromise adjustment herein pro pro- pro I i provided vided for an amount in in excess of the sums set opposite their respective names subscribed hereto and there there- thereupon thereupon thereupon I I upon the Pacific Holding Com Company pan shall d distribute the p proceeds eeds amon ItS na accor according in to to the the r stock held by each and in inthe such manner as may be provided pro in the articles of agreement Provided that if any creditor or creditors Irrigation of said Donneville Bonneville Irrig tion District shall have failed or re re- re r refused fused to assign his or their claims to said Holding Company then the th withhold said Holding Holding- Company shall with with- wit hold stockholders from distributing to its stock stock- holders so much of the proceeds of each cash or 01 notes and mortgages g as shall bear the same ratio to the I portion distributed as the amount o of f claims assigned to it bears to the I amount of claims not assigned and an the portion so withheld shall be held hel d for the benefit rata pro of said eaid nor non non non- assi assigning ing creditors 9 Nothing herein contained I shall operate to prevent any sub sub- subi subscriber sub subscriber i scriber hereto from paying the th I amount of his subscribed n In cash nor from redeeming any note and mortgage age given by him i in n pursuance of the provisions hereof i at a t any time by paying paying- the amount re- re re interest remaining due thereon with accrued in-I in in- in terest No subscriber hereto shall be liable Hable for the default of any other othe r subscriber and upon payment of the th e amount of his obligation i shall shaU be c entitled to have cancelled and re- re reI re n I I returned turned to him his said note an and d mortgage ae together with all other i collateral pledged by him to se ure e the thereof Cash received receive on payments pa ments shall I i be governed by b y I the provisions hereof relative to t notes and mortgages es Each of t ts iber here o in i n Continued on Page 8 |