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Show COPY OF LETTER UPON WHICH FEDERAL INDICTMENT DELTA L. & W CO. OFFICIALS IS BASED The following preamble and letter compose the "eighth count" in the criminal proceedings brought against the officials of the Delta Land & Water Company and under which W. I. Moody, president of the company, com-pany, was indicted. We learn that Mr. Moody, confident in the consciousness con-sciousness of his own mind that he had no intention to defraud anyone, and still firm in the belief that fundamentally fun-damentally the project is a good and legitimate business proposition and that it will yet ultimately be a success, suc-cess, has taken no steps to defend the charges brought against him, not even having employed any attorney. attor-ney. The case was to have come up the third week of January in Los Angeles, but we have been informed that a continuance has already been agreed upon. The following details of the indictment are printed by the News to give the public a correct understanding of the supposed cause for action: Eighth Count And the Grand Jurors aforesaid, upon their oaths aforesaid, do further fur-ther present: That Walter I. Moody, George A. Snow, Henry B. Prout, Charles E. Arnold, Lloyd Sigler, Arthur P. Mo-ran, Mo-ran, Mart .Adson and Gertrude P. Holmes, whose full and true names other than is herein stated, are to the Grand Jurors unknown, and various var-ious and sundry other persons whose names are to the Grand Jurors unknown, un-known, all of whom are the same de defendants as are named in the first count of this indictment hereinafter in this indictment called defendants, within the Southern Division of the Southern District of California, and within the jurisdiction of this Honorable Hon-orable Court, devised and intended to devise a scheme and artifice to defraud various persons whose names, other than in this indictment mentioned, are to the Grand Jurors unknown, and are not capable, by reason of" their great number and by reason of said want of information on the part of the Grand Jurors, of being all named in this indictment; that is to say: a class of persons (hereinafter referred to as the said persons so intended to be defrauded.) defraud-ed.) Such as should be induced by said depfendants to purchase land in what is known as "The Milford Project" in the town of Milford, in the State of Utah, and by inducing by means of false and fraudulent representations and promises, and by fraudulent artifices and devices, the said persons so intended to be defrauded de-frauded to part with and yield to said defendants and to the Delta Land & Water Company and the Western Securities Company their money and property in the manner in this indictment hereinafter set forth; That said scheme and artifice to defraud which said defendants so devised and intended to devise as aforesaid is the same scheme ane artifice set forth fully and at length In the first count of . this indictment which allegations of such scheme and artifice are hereby referred to and made a part of this eighth count: And the Grand Jurors aforesaid, upon their oaths aforesaid, do further fur-ther present: That in furtherance of said scheme and artifice to defraud, and to accomplish ac-complish the object thereof, the saia d. Jendants, on or about the 5th day of March, 1915, did knowingly, wilfully; wil-fully; unlawfully, and felonously deposit de-posit and cause to be deposited in the post office establishment of the United States at Los Angeles, California, Cali-fornia, to be sent and delivered by the said post office establishment of the United States, a certain letter, to-wit: a letter of the tenor which here follows: WESTERN SECURITIES COMPANY Los Angeles, California Telephones ' 710-12 Broadway 7561 Hollingsworth Building Home F-2425 ' Cor. Hill & 6th Sts. . March 5th, 1915. Mr. Charles C. Scott, Whittier, Calif. Dear Sir: The following Is our understanding of the agreement made between us: You have made application to purchase the Northwest Quarter of Section 12, Twp. 29 S., R. 11 W., and have agreed to pay the purchase price of $30 per acre for the same, but on account of there .being some rough land in this tract, it is agreed that you shall only pay $3800 for the entire one hundred sixty (160) acres. In payment of this you propose to give us your note, due four years from date, bearing interest at six per cent (6 per cent) per annum, interest payable annually and this note to be secured by a mortgage upon five (5) acres of land on which there is now bearing a walnut grove, the said land being located near the town of Whittier. Whit-tier. It is also understood that prior to this becoming a binding agreement upon our part an officer of this Company shall Inspect and approve the security. ' It is understood that title to this land is now in the General Government Govern-ment but Delta Land & Water Company have fully paid the State of Utah for same by applying' script to the land and the state has applied to the General Government so that it may in turn deed to Delta Land & Water Company. Therefore, we will not record the mortgage securing your note for $3800 until six months from the date thereof, at which time we agree to give you warranty deen to the land, covering title to you free and clear of all liens, together with an abstract showing title to be free and clear in you other than the mortgages which you have this clay given in payment of the water right. You also agree to furnish us with a certificate of title to your five acres near Whittier. showing title to be free and clear of all liens. It is, however, understood that you may have possession of the land immediately and that if for any reason we do not give you a patent on or before six months from date, conveying - title to you free and clear of all liens, we will then permit you to file on same under the Carey Act and we agree to cause the State of Utah to accept your application and in this event, you will pay the State fifty cents (50c) per acre. The Carey Act rules provide that title will be given you when one-eighth of this land is under cultivation; and it is definitely understood that in the event you do file on this land under the terms of the Carey Act, it will cost you but fifty cents (50c) an acre and that the sum of $3800 which you would otherwise pay for the land will be endorsed upon the principal payment "of your water stock. You have also this day agreed to purchase one hundred and sixty (160) shares of Class "A" capital stock of Beaver County Irrigation Company to provide a w-ater right for said land and have given your four installment notes, each secured by a mortgage upon the land mentioned in the first paragraph of this letter. You have also this day given us a right-of-way for canals and roads. You further agree that you will cause your wife. I Sallie O. Scott, to sign all the notes and mortgages enumerated as well as the right-of-way agreement and we w-ill then Issue four certificates of Class "A" capital stock of Beaver County Irrigation Company and you agree then to endorse this stock as collateral security back to your mortgages, together with a proxy giving Delta Land & Water Company power to vote stock until same Is paid for. U is further agreed that all notes covering the purchase price of this 160 acres of land amounting to $3SO0 and also covering the water stock! amounting to $11,200.00 shall bear interest at the rate of six per cent (6, per cent i per annum, but such interest shall not begin to accrue until ! January 1st. 1916. I U this is your understanding of th agreement, you will endorse your name in the space below and this will then form a definite binding agree- nient between us. subject to our approval of the securities behind your ' mortcsge or, your land near Whittier. j Yours trulv. j WESTERN" SECURITIES COMPANY. i W. I. Moody. Which said letter when so depos- 'dress substantially as follows, to-: i'ed and enured to be deposited in wit: "Mr. Charles C. Scott, Whittier. j t'l" said post offiV" establishment as Calif.." a better description of said: aforesaid, was th-n and there en- envelope and the address thereon in t ,-losed in an envelope which then to the Grand Jurors unknown. j and there bore the direction and ad- Contrary to the form of the Stat- ute n such case made and provided.) and against the peace and dignity of, the said United States. J. ROBERT O'CONNER. United States Attorney. W. F. PALMER. Asst. United States Attorney. |
