anaheim-gazette 1921-04-28

MANY CHANGES PROPOSED IN SYSTEM (Continued from Page One.) the main Anaheim ditch runs in a southerly direction through the Gomber tract to East and Sycamore streets at Anaheim, a distance of about eight miles. This line is composed of open cement ditch and 36 inch pipe line with a capacity of approximately 1200 inches. From this point a number of laterals run in different directions, covering the territory known as the Anaheim district. Most of these lines are underground pipe lines. The North branch line, which serves water to the upper Fullerton district, commences at the Tuffree reservoir, runs down North Placentia avenue to the corner of Placentia and Cypress avenues and continues along the north line of the district to Spadra avenue in Fullerton. The South branch line starts at the intersection of Cypress and Placentia avenues, runs in a southerly direction to Orangethorp avenue, thence in a westerly direction to Acacia avenue, then branches in a southwesterly direction through the property of various land owners to the Brookhurst district and supplies water to the extreme southern part of the Fullerton district. The central part of the Fullerton district is supplied by the Orangethorp avenue line, which is mostly underground pipe and starts at Acacia and Orangethorp avenues, where the south branch leaves the main line, continues in a westerly direction to the west boundary of our district. Practically every thing below the Tuffree reservoir is either open cement ditch or pipe lines with amounts to $25,359.00 per annum at 6 per cent. We are of the opinion that the carrying of such a large floating indebtedness is undesirable, if not actually unsafe; and that it should not be increased except in case of great necessity. It appears that since 1913, the first year we received royalties from oil, we spent in addition to our regular income from the sale of water, the sum of $499,030.00 received from oil royalties, and $79,840.00 received from assessments; and that our debt has increased in the amount of $45,470.00, making a total of $645,340.00. In reviewing the expenditures for the past year, as given in the report of the board of audit, we find that the operating expense is given at $168,-746.94, an increase of $57,546.47 over the same item for 1919. No explanation or detailed statement of the great increase in the items of general expense, $12,979.05, repairs, $37,746.74, S.A.R.D.Co.$7454.16, and others over 1919 is given. The income, exclusive of assessments is given as $115,943.15, an increase of $3,486.07 over 1919. In addition assessments were collected amounting to $79,840.00, and the indebtedness increased $30,200.00, a total of $110,040.00. It also appears that on January 1, there was a balance due consumers for water of $4,973.78, and by a statement of February 8, 1921, that about $22,600.00 additional was borrowed during January, apparently to pay bills contracted during the preceding year. This makes the total expenditures for the year up to the date of the annual meeting $253,556.90. Subtracting the gross expense for 1919, $111,200.47, we find the increase in expenditures for 1920 over 1919 to be $142,356.49. Gomber 47.20 acres in lot tract. 7.19 acres in lot vision. Northerly 29.22 acre K. Leased to Fullerton August 25, 1921, for tract is one-half m Atwood. The Fullerton O well down to a depine fine oil prospects and that there will be a this property in this is situated near tha and we believe tha ion Water Co. have look forward to va this holding. de Shorb and In T. No. 3, S., M., 683.65 acres. Leased to F.A. 1920, for 25 years May 18, 1921. This tract is 3 north of Santa Anita Bixby ranch, Carrillo. While the finding is problematical y courageating from tha who are supposed n-ness, believe tha will be had and opinion with capi velement and sh ing prove success splendid returns s of the Anaheim U Yorba Cemetery. One and one-h Yorba on A., T. & Cajon canal, and re ing wells on prop Kraemer. The property i n and might become The company is prepared to deliver a supply of gravity water during the winter months from November to May, limited only by its capacity, which consists of approximately 2600 inches. In the summer the gravity water decreases to as low as 500 inches available for delivery. We have a pumping capacity of 1800 inches, in addition to this 1800 inches by using our reservoir at pumping plant No. 2, for storage of night water, we are able to boost 400 inches additional up Placentia avenue to the North branch ditch, giving us a total of 2200 inches, 10 hours per day. The affairs of the company are administered by a board of directors of seven men chosen annually. The executive work is carried on by a superintendent, who has the direction of the work of the assistant superintendent, four Zanjeros, three pumpers and a force of men constructing cement pipe, pipe lines, general repair work, cleaning ditches and other necessary incidentals. Our secretary, Mr. Leo Sheridan, we find a competent official and well qualified in every respect to perform the duties of his office. If our system of accounting is not detailed enough our secretary is competent to put in any system that will make it more satisfactory to the stockholders. Our head Zanjero, Mr. Parrett, Mr. Stone and the several others are well qualified to perform the duties of their offices. The engineering department is like a ship at sea with a mutinous crew. We understand that most records and maps made of our system by order of our board of directors at our expense, have been retained by the engineers and we recommend that the board of directors take necessary steps to recover them. Mr. Murphy, who has charge of the oil interest, we believe, understands our land owners to the brevest district and supplies water to the extreme southern part of the Fullerton district. The central part of the Fullerton district is supplied by the Orangethorpe avenue line, which is mostly underground pipe and starts at Acacia and Orangethorpe avenues, where the south branch leaves the main line, continues in a westerly direction to the west boundary of our district. Practically every thing below the Tuffree reservoir is either open cement ditch or pipe lines with a very small portion of dirt ditch. There are in all between 40 and 50 miles of permanent distributing lines, nearly all of which are cement. The company is prepared to deliver a supply of gravity water during the winter months from November to May, limited only by its capacity, which consists of approximately 2600 inches. In the summer the gravity water decreases to as low as 500 inches available for delivery. We have a pumping capacity of 1800 inches, in addition to this 1800 inches by using our reservoir at pumping plant No. 2, for storage of night water, we are able to boost 400 inches additional up Placentia avenue to the North branch ditch, giving us a total of 2200 inches, 10 hours per day. The affairs of the company are administered by a board of directors of seven men chosen annually. The executive work is carried on by a superintendent, who has the direction of the work of the assistant superintendent, four Zanjeros, three pumpers and a force of men constructing cement pipe, pipe lines, general repair work, cleaning ditches and other necessary incidentals. Our secretary, Mr. Leo Sheridan, we find a competent official and well qualified in every respect to perform the duties of his office. If our system of accounting is not detailed enough our secretary is competent to put in any system that will make it more satisfactory to the stockholders. Our head Zanjero, Mr. Parrett, Mr. Stone and the several others are well qualified to perform the duties of their offices. The engineering department is like a ship at sea with a mutinous crew. We understand that most records and maps made of our system by order of our board of directors at our expense, have been retained by the engineers and we recommend that the board of directors take necessary steps to recover them. Mr. Murphy, who has charge of the oil interest, we believe, understands our land owners to the brevest district and supplies water to the extreme southern part of the Fullerton district. The central part of the Fullerton district is supplied by the Orangethorpe avenues, where the south branch leaves the main line, continues in a westerly direction to the west boundary of our district. Practically every thing below the Tuffree reservoir is either open cement ditch or pipe lines with a very small portion of dirt ditch. There are in all between 40 and 50 miles of permanent distributing lines, nearly all of which are cement. The company is prepared to deliver a supply of gravity water during the winter months from November to May, limited only by its capacity, which consists of approximately 2600 inches. In the summer the gravity water decreases to as low as 500 inches available for delivery. We have a pumping capacity of 1800 inches, in addition to this 1800 inches by using our reservoir at pumping plant No. 2, for storage of night water, we are able to boost 400 inches additional up Placentia avenue to the North branch ditch, giving us a total of 2200 inches, 10 hours per day. The affairs of the company are administered by a board of directors of seven men chosen annually. The executive work is carried on by a superintendent, who has the direction of the work of the assistant superintendent, four Zanjeros, three pumpers and a force of men constructing cement pipe, pipe lines, general repair work, cleaning ditches and other necessary incidentals. Our secretary, Mr. Leo Sheridan, we find a competent official and well qualified in every respect to perform the duties of his office. If our system of accounting is not detailed enough our secretary is competent to put in any system that will make it more satisfactory to the stockholders. Our head Zanjero, Mr. Parrett, Mr. Stone and the several others are well qualified to perform the duties of their offices. The engineering department is like a ship at sea with a mutinous crew. We understand that most records and maps made of our system by order of our board of directors at our expense, have been retained by the engineers and we recommend that the board of directors take necessary steps to recover them. Mr. Murphy, who has charge of the oil interest, we believe, understands our land owners to the brevest district and supplies water to the extreme southern part of the Fullerton district. The central part of the Fullerton district is supplied by the Orangethorpe avenues, where the south branch leaves the main line, continues in a westerly direction to the west boundary of our district. Practically every thing below the Tuffree reservoir is either open cement ditch or pipe lines with a very small portion of dirt ditch. There are in all between 40 and 50 miles of permanent distributing lines, nearly all of which are cement. The company is prepared to deliver a supply of gravity water during the winter months from November to May, limited only by its capacity, which consists of approximately 2600 inches. In the summer the gravity water decreases to as low as 500 inches available for delivery. We have a pumping capacity of 1800 inches, in addition to this 1800 inches by using our reservoir at pumping plant No. 2, for storage of night water, we are able to boost 400 inches additional up Placentia avenue to the North branch ditch, giving us a total of 2200 inches, 10 hours per day. The affairs of the company are administered by a board of directors of seven men chosen annually. The executive work is carried on by a superintendent, who has the direction of the work of the assistant superintendent, four Zanjeros, three pumpers and a force of men constructing cement pipe, pipe lines, general repair work, cleaning ditches and other necessary incidentals. Our secretary, Mr. Leo Sheridan, we find a competent official and well qualified in every respect to perform the duties of his office. If our system of accounting is not detailed enough our secretary is competent to put in any system that will make it more satisfactory to the stockholders. Our head Zanjero, Mr. Parrett, Mr. Stone and the several others are well qualified to perform the duties of their offices. The engineering department is like a ship at sea with a mutinous crew. We understand that most records and maps made of our system by order of our board of directors at our expense, have been retained by the engineers and we recommend that the board of directors take necessary steps to recover them. Mr. Murphy, who has charge of the oil interest, we believe, understands our land owners to the brevest district and supplies water to the extreme southern part of the Fullerton district. The central part of the Fullerton district is supplied by the Orangethorpe avenues, where the south branch leaves the main line, continues in a westerly direction to the west boundary of our district. Practically every thing below the Tuffree reservoir is either open cement ditch or pipe lines with a very small portion of dirt ditch. There are in all between 40 and 50 miles of permanent distributing lines, nearly all of which are cement. The company is prepared to deliver a supply of gravity water during the winter months from November to May, limited only by its capacity, which consists of approximately 2600 inches. In the summer the gravity water decreases to as low as 500 inches available for delivery. We have a pumping capacity of 1800 inches, in addition to this 1800 inches by using our reservoir at pumping plant No. 2, for storage of night water, we are able to boost 400 inches additional up Placentia avenue to the North branch ditch, giving us a total of 2200 inches, 10 hours per day. The affairs of the company are administered by a board of directors of seven men chosen annually. The executive work is carried on by a superintendent, who has the direction of the work of the assistant superintendent，四 Zanjeros,三泵管和一力泵站的经理会来到我们现场进行考察。 We believe that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main ditch during past year insure an ample supply if water for present season if not permanently. 3. Because pending developments of our oil resources may and probably will make further assessments unnecessary. 4. Because financing new construction by direct assessment is unfair to present owners if stock.The benefit will accrue to future owners in large measure,and should be paid by them in part. 5. Because if we are to continue as mutual company there must be a readjustment of distributionthe stockofthecompany,sоthattheburdenofoperation,andthefinancingnewworkmaybemoreequallydistributed;anduntilthisisdonenomoreassessmentsshouldlevled. We recommend that reduce unsecured indebtedness coming due in near future,the $75,000.oof6per cent bonds nowinthe treasurybe soldandthe proceeds appliedto On January 1,thee wasa balance dueconsumersforwaterof$497.78,andbyastatementofFebruary8.,1921, thatabout$22600.oowrittenexpendituresfor1919willreceivethecarefulconsiderationoftheboardofdirectorswiththeideaofeliminatingexpendituresovertheincomeforthepresentyear,forgreatenews: First.Consideration should be giventothe reductionofour overheadexpensefromwarconditions.I特appearsthatwearepayingsalariesmuchabovetheaverage. Second.Newconstructionshouldbecutdowntothelowestpossiblelimit,andnothingnewauthorizeduntilourincomejustifiesit,或necessitycompels. We recommend that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main ditch during past year insure an ample supply if water for present season if not permanently. 3. Because pending developmentsof our oil resources may and probably will make further assessments unnecessary. 4. Because financing new constructionby direct assessmentis unfairto presentownersifstock.Thebenefitwillaccruetofutureownersinlargemeasure,andshouldbepaidbythemeninpart. 5. Becauseifwearetocontinueasmutualcompanytheremustbeareadjustmentofdistributionthestockofthecompany,sоthattheburdenofoperation,andthefinancingnewworkmaybemoreequallydistributed;anduntilthisisdonenomoreassessmentsshouldlevled. We recommend that reduce unsecured indebtednesscomingdueinnearfuture,the$75，000.oowrittenexpendituresfor1919willreceivethecarefulconsiderationoftheboardofdirectorswiththeideaofeliminatingexpendituresovertheincomeforthepresentyear,forgreatenews: First.Consideration should be giventothe reductionofour overheadexpensefromwarconditions.I特appearsthatwearepayingsalariesmuchabovetheaverage. Second.Newconstructionshouldbecutdowntothelowestpossiblelimit,andnothingnewauthorizeduntilourincomejustifiesit,或necessitycompels. We recommend that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main ditch during past year insure an ample supply if water for present season if not permanently. 3. Because pending developmentsof our oil resources may and probably will make further assessments unnecessary. 4. Because financing new constructionby direct assessmentis unfairto presentownersifstock.Thebenefitwillaccruetofutureownersinlargemeasure,andshouldbepaidbythemeninpart. 5. Becauseifwearetocontinueasmutualcompanytheremustbeareadjustmentofdistributionthestockofthecompany,sоthattheburdenofoperation,andthefinancingnewworkmaybemoreequallydistributed;anduntilthisis donenomoreassessmentsshouldlevled. We recommend that reduce unsecured indebtednesscomingdueinnearfuture,the$75，000.oowrittenexpendituresfor1919willreceivethecarefulconsiderationoftheboardofdirectorswiththeideaofeliminatingexpendituresovertheincomeforthepresentyear,forgreatenews: First.Consideration should be giventothe reductionofour overheadexpensefromwarconditions.I特appearsthatwearepayingsalariesmuchabovetheaverage. Second.Newconstructionshouldbecutdowntothelowestpossiblelimit,andnothingnewauthorizeduntilourincomejustifies它,或necessitycompels. We recommend that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main ditch during past year insure an ample supply if water for present season if not permanently. 3. Because pending developmentsof our oil resources may and probably will make further assessments unnecessary. 4. Because financing new constructionby direct assessmentis unfairto presentownersifstock.Thebenefitwillaccruetofutureownersinlargemeasure,andshouldbepaidbythemeninpart. 5. Becauseifwearetocontinueasmutualcompanytheremustbeareadjustmentofdistributionthestockofthecompany,sоthattheburdenofoperation,andthefinancingnewworkmaybemoreequallydistributed;anduntilthisis donenomoreassessmentsshouldlevled. We recommend that reduce unsecured indebtednesscomingdueinnearfuture,the$75，000.oowrittenexpendituresfor1919willreceivethecarefulconsiderationoftheboardofdirectorswiththeideaofeliminatingexpendituresovertheincomeforthepresentyear,forgreatenews: First.Consideration should be giventothe reductionofour overheadexpensefromwarconditions.I特appearsthatwearepayingsalariesmuchabovetheaverage. Second.Newconstructionshouldbecutdowntothelowestpossiblelimit,andnothingnewauthorizeduntilourincomejustifies它,或necessitycompels. We recommend that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main dichield during past year insure an ample supply if water for present season if not permanently. 3. Because pending developmentsof our oil resources may and probably will make further assessments unnecessary. 4. Because financing new constructionby direct assessmentis unfairto presentownersifstock.Thebenefitwillaccruetofutureownersinlargemeasure,andshouldbepaidbythemeninpart. 5. Becauseifwearetocontinueasmutualcompanytheremustbeareadjustmentofdistributionthestockofthecompany,sоthattheburdenofoperation,andthefinancingnewworkmaybemoreequallydistributed;anduntilthisis donenomoreassessmentsshouldlevled. We recommend that reduce unsecured indebtednesscomingdueinnearfuture,the$75，000.oowrittenexpendituresfor1919willreceivethecarefulconsiderationoftheboardofdirectorswiththeideaofeliminatingexpendituresovertheincomeforthepresentyear,forgreatenews: First.Consideration should be giventothe reductionofour overheadexpensefromwarconditions.I特appearsthatwearepayingsalariesmuchabovetheaverage. Second.Newconstructionshouldbecutdowntothelowestpossiblelimit,andnothingnewauthorizeduntilourincomejustifies它,或necessitycompels. We recommend that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main dichield during past year insure an ample supply if water for present season if not permanently. 3. Because pending developmentsof our oil resources may and probably will make further assessments unnecessary. 4. Because financing new constructionby direct assessmentis unfairto presentownersifstock.Thebenefitwillaccruetofutureownersinlargemeasure,andshouldbepaidbythemeninpart. 5. Becauseifwearetocontinueasmutualcompanytheremustbeareadjustmentofdistributionthestockofthecompany,sоthattheburdenofoperation,andthefinancingnewworkmaybemoreequallydistributed;anduntilthisis donenomoreassessmentsshouldlevled. We recommend that reduce unsecured indebtednesscomingdueinnearfuture,the$75，000.oowrittenexpendituresfor1919willreceivethecarefulconsiderationoftheboardofdirectorswiththeideaofeliminatingexpendituresovertheincomeforthepresentyear,forgreatenews: First.Consideration should be giventothe reductionofour overheadexpensefromwar conditions.I特appearsthatwearepayingsalariesmuchabovetheaverage. Second.Newconstructionshouldbecutdowntothelowestpossiblelimit,andnothingnewauthorizeduntilourincomejustifies它,或necessitycompels. We recommend that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main dichield during past year insure an ample supply if water for present season if not permanently. 3. Because pending developmentsof our oil resources may and probably will make further assessments unnecessary. 4. Because financing new constructionby direct assessmentis unfairto presentownersifstock.Thebenefitwillaccruetofutureownersinlargemeasure,andshouldbepaidbythemeninpart. 5. Becauseifwearetocontinueasmutualcompanytheremustbeareadjustmentofdistributionthe库存ofthecompany,sоthattheburdenofoperation,andthefinancingnewworkmaybemoreequallydistributed;anduntilthisis donenomoreassessmentsshouldlevled. We recommend that reduce unsecured indebtednesscomingdueinnearfuture,the$75，000.oowwrittenexpendituresfor1919willreceivethecarefulconsiderationoftheboardofdirectorswiththeideaofeliminatingexpendituresovertheincomeforthepresentyear,forgreatenews: First.Consideration should be givento.the reductionofour overheadexpensefromwar conditions.I特appearsthatwearepayingsalariesmuchabove-theaverage. Second.Newconstructionshouldbecutdownto-thelowestpossiblelimit,andnothingnewauthorizeduntilourincomejustifies它,或necessitycompels. We recommend that no further assessments be made this year for these following reasons: 1. Because critical period in citrus industry through which we are now passing will make payment additional assessments burdensome. 2. Because additions and improvements made to our pumping facilities and main dichield during past year insure an ample supply if water for present season if not permanently. 3. Because pending developmentsof our oil resources may and probably will make further assessments unnecessary. 4. Because financing new constructionby direct assessmentis unfairto presentownersifstock.Thebenefitwillaccruetofutureownersinlargemeasure,andshouldbepaidbythemeninpart. 5. Becauseifwearetocontinueasmutualcompanytheremustbeareadjustment-ofdistributionthe库存ofthecompany,sоthat-theburden.ofoperation,and.thefinancing.newworkmay.be.more.equallydistributed;and.untilthisis donenomoreassessmentsshouldlevled. 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We understand that most records and maps made of our system by order of our board of directors at our expense, have been retained by the engineers and we recommend that the board of directors take necessary steps to recover them. Mr. Murphy, who has charge of the oil interest, we believe, understands testing the oil and is qualified in every respect to handle the duties required of him. Our board of directors are busy men. They are willing to give of their time and should be appreciated and assisted by the stockholders more than they have been in the past. We feel that if any mistakes are made we should not criticise unless we have a better plan to offer and stand ready, at all times, to counsel with them and be able to point out a better way. We feel that the men who compose the board of directors are men of ability who have made good for themselves and are trying to do the same for us. We recommend that the board, so far as possible, carry out the recommendations of this committee. Finance The total indebtedness of the company on February 8, 1921, amounted to $422,650 distributed as follows: Bonds drawing 6 per cent interest, payable in installments of $10,000 each year until 1932, then $20,000 during 1932 and 1933, and $5,000 in 1934. Unsecured Notes Due and payable in 1921, $59,350.00, due and payable in 1922, $77,200.00, due and payable in 1923, $93,300.00, due and payable in 1924 $17,500.00, due and payable in 1925 $27,650.00; making a total of $277,650.00. The interest account on these items 5. Because if we are to continue as a mutual company, there must be a adjustment of the distribution of the stock of the company, so that the burden of operation, and the financing of new work may be more equally distributed; and until this is done no more assessments should be levied. We recommend that to reduce the unsecured indebtedness coming due in the near future, that the $75,000.00 of 6 per cent bonds now in the treasury be sold and the proceeds applied to that purpose. We recommend that before any other large construction projects be entered into, a general survey of the resources and needs of the company be made by a competent engineer of recognized standing in irrigation work, that future betterments may proceed along some definite lines, and may be adjusted to our income. We recommend that the cleaning of Tuffree reservoir at an estimated cost of $20,000.00 be deferred until the general survey recommended has been made. We recommend that a budget be prepared at the beginning of each year, which shall be adhered to as strictly as circumstances permit; and that the present practice of making improvements with money temporarily borrowed be permanently abandoned. We recommend that the superintendent's report and financial statement of the company be published monthly in our local papers. We recommend the adjustment of salaries of officers and employees of the company be made so as to be in harmony with salaries and wages paid for similar service rendered other water companies, and present industrial conditions. The oil interests of the company consist of the following lands and leases; ANAHEIM GAZETTE at 6 car-debtactually in pieces first well, we become sum of qualities, lessesscreasing is for report at the $168,- overplanof the general 746.74, others Gomber Tract. 47.20 acres in lot 1, block K, Kraemer tract. 7.19 acres in lot 42, Hazzard sub-division. Northerly 29.22 acres of lot 1, block K. Leased to Fullerton Oil company, August 25, 1921, for 25 years. This tract is one-half mile west of depot at Atwood. The Fullerton Oil company has one well down to a depth of 4100 feet, with fine oil prospects and it is our opinion that there will be a well developed on this property in the near future, as it is situated near the Kraemer gushers, and we believe that the Anaheim Union Water Co. have every reason to look forward to valuable returns from this holding. de Shorb and Rivas Allotment. In T. No. 3, S., R. 8 W., S. B. B. and M., 683.65 acres. Leased to F. A. Gillespie, June 12, 1920, for 25 years, to begin drilling May 18, 1921. This tract is 3 miles east of Yorba, north of Santa Ana river, east boundary Bixby ranch, west boundary A. Y. Carrillo. While the finding of oil on this tract is problematical, yet the future is encouraging from the fact that oil men who are supposed to know their business, believe that a production of oil will be had and are backing up their opinion with capital necessary for development and should their undertaking prove successful it will mean splendid returns for the stockholders of the Anaheim Union. Yorba Cemetery Tract, 40.11 Acres One and one-half miles east of Yorba on A., T. & S. F. R. R. below Cajon canal, and not far from producing wells on property owned by Mr. Kraemer. The property is favorably situated and might become oil producing. Not discontinued, and if possible have the vacuum system removed from our wells, and by shutting off water, will cause an increase in our production. We find in receiving the oil from the Amalgamated Oil Co., the normal temperature is 60 degrees, and the company computes the degrees under a new schedule of every degree above subtract 25 points and under add 25 points, while the old way is 1 to 20—this gives the net barrels received. As we receive the oil at 1 to 25 and leave the oil go at 1 to 20, losing five points we gained under the new schedule, showing a small leakage. That would mean quit a saving in a year, and also show a discrepancy in our books. We recommend in the future before sale contracts are made that the percentages should be checked by Mr. Murphy, who undertands the analysis of oil, or some one that is qualified. We find that the Anaheim Sugar company pays 11 cents per barrel above the price set by the Standard Oil company and in addition the Sugar company has the free use of our entire cleaning plant, electric lights, water, gas and pays one-half of the telephone. The net price paid per barrel is $1.66 plus 11 cents, or $1.77 to our company. We find by the free use of our plant the Anaheim Sugar company's sale of tops from said oil, as near as we can figure from the reports available, give them their oil at about 42 cents per barrel at the plant. We find the boiler has been dry several times, the roaster has been burnt and is in a leaky condition, our pumps have been allowed to run away and have been badly strained and the oil has been put so hot into the tanks that they will have to be rooofed. In general, the plant is badly run down and with a year's lease to run there. During the year 1917 a final payment of $1,372.0 was made on syphon No. 4 completed in 1916. A payment of $1,-146.24 was made on syphon No. 8 completed in 1916. Kraemer avenue line, Golden State pipe line, Orangethorpe avenue, North Street pipe line and numerous other lines were constructed,the property owners paying varying proportions of the expense. The new construction for this year amounted to approximately $9,000.00. During the year 1918 a 66 inch syphon at flume No. 12 was constructed costing $7,233.99, a reservoir at Pumping Plant No. 1 was constructed at a cost of $8,669.00, the Strain pipe line was laid at a cost of $1055.00, and miscellaneous smaller pieces of construction bringing the total for the year to $26,520.14. In the year 1919 the cement ditch at flume No. 7 completed in 1920 was began and the sum of $5,449.85 expended thereon.$2,459.28 was expended on the Orangethorpe line,$505.18 on warehouses at Pumping Plant No. 2,$1,-701.41 on a house at P.P.No.2,$6,-787.19 was spent at the headgate,$2,821.78 on the Cypress avenue line,$1,575.50 on the Yorba intake and $5,-011.00 on the Bixby ranch,bringing the total of new construction work,包括其他 miscellaneous construction to $29,147.13. In the year 1920, cementing of the main ditch at flume No. 7 was completed at a total cost for that year of $13,521.04, on Orangethorpe avenue 4000 feet of 36 inch pipe and 600 feet of 42 inch pipe was laid at a cost of $10,413.43.The Facemire line consisting of 1860 feet of 14 inch pipe was laid at a cost of $1,000.65.The Sparks Skinner line consisting of 4800 feet of 16 inch line was placed,costing $3,-992.01There was cemented 500 feet at Zanjero house near the head at a cost of $8,475.83,1800 feet of new bottom at a cost of $7,716.00. The plant sult and tion,made dations We also sort showing future mend whole engine construc ture dengering tha water We tire sys et and tha ion and syst em We structure basic depreciation post o tion It is make cost o fthe fa cti ly;also have struct ure pre- opinion with capital necessary for development and should their undertaking prove successful it will mean splendid returns for the stockholders of the Anaheim Union. Yorba Cemetery Tract, 40.11 Acres One and one-half miles east of Yorba on A., T. & S. F. R. R. below Cajon canal, and not far from producing wells on property owned by Mr. Kraemer. The property is favorably situated and might become oil producing. Not at the present time under lease. Yorba Reservoir, 81.80 Acres One-half mile north of Yorba. This property is not at the present time under lease. Is also favorably situated and if acceptable arrangements could be made, would advise that it be leased to a responsible oil company. Placentia City Lots This property consists of lot 31 or 1.45 acres, with a reservation of 50 feet by 50 feet in northeast corner for road purposes; also part of lots 30, 29, 28, 27 and 26, making about one-third of an acre more or less. Also a four inch pipe line running about 4 1-10 miles to our lease at the Amalgamated lease, which is used for emergency purposes. We recommend this Placentia property be reserved for oil purposes and put under an oil lease as soon as suitable terms can be made. The Amalgamated Oil company has drilled 21 wells in all, 13 wells are pumping. No. 1 well has been abandoned; No. 2 has been plugged at bottom and not tested as to where water comes from, but are figuring on abandoning; No. 12, 14 standing idle; No. 20 standing idle, water well; No. 22 using for a water well; No. 28 has been standing since 1917 and are now figuring on using for water well; No. 54 is redrilling. Offset 300 feet from No. 28 is a good well. Why allow No. 28 to be junked before being properly tested? Offset 300 feet from No. 2 is a good well. Why allow No. 2 to be junked before being properly tested? St. Helen's has 5 wells and all pumping with sediments showing. We find the wells on the Amalgamated oil lease and St. Helen's Oil Co., running very heavy to sediments and this is contrary to our lease, which calls that all water and sediments in wells should be corrected as soon as possible. We recommend that a tabulated report as to water conditions be reported to the mining bureau by a tops from said oil, as near as we can figure from the reports available, give them their oil at about 42 cents per barrel at the plant. We find the boiler has been dry several times, the roaster has been burnt and is in a leaky condition, our pumps have been allowed to run away and have been badly strained and the oil has been put so hot into the tanks that they will have to be reroofed. In general, the plant is badly run down and with a year's lease to run there will not be much left when they get through with it. We recommend that the Anaheim Sugar company be made to repair fire jacket around boiler and floors around same and other defects above mentioned. Upon inquiry we have been told that other companies will pay the same price for the oil as it comes from the Amalgamated Oil company without the use of our cleaning plant, and if the Anaheim Sugar company can use our plant and make such a saving why not run it ourselves? In general, we find the Amalgamated Oil company sadly neglects our lease and is never in a hurry to get a well back on the pump when once down and seems or tries to make a water well out of it as soon as possible. Our wells along the west line are kept busy so as to keep the water from their Hualde property that they own and the balance are left idle. The St. Helen's Oil company keep their wells pumping continuously and when crippled are repaired at once and placed back on the beam. The Gilman lease on our south line are kept pumping continuously and no time is lost in keeping them going while our offsets are idle. The G. & L. Union are in constant operation and not allowed to stand,and their wells are increasing while ours idle. Construction It will be impossible to cover, in detail the construction work, for the reason that there are no annual construction reports available, but we shall present only the main items of construction for the period up to 1920 and cover the last year in full. In the year 1913, the Anaheim main ditch consisting of 16,760 feet of 36 inch line was constructed at a cost of $25,654.44 and the same year the Caroline Ave. line one mile in length consisting of 24 and 26 inch line, was constructed during this year, aggregated $45,803.99. In the year 1914 the North branch ditch, 9,917 feet in length was plotted at a total cost for that year of $13,521.04, on Orangethorpe avenue 4000 feet of 36 inch pipe was laid at a cost of $1,000.65. The Sparks-Skinner line, consisting of 4000 feet of 16 inch line was placed, costing $3,-992.01. There was cemented 900 feet at Zanjero house near the head at a cost of $8,475.83, 1800 feet of new bottom at a cost of $7,716.00. There was expended on 1200 feet of covered ditch at the Bixby ranch $4,-190.16. This work is not complete to date and the estimate cost is $13.00 per foot. There was expended on P. P. No. 1 $8,186.29, P. P. No. 2 $8,746.94, P. P. No. 3-D $9,401.93, P. P. No.-E $3,448.44, house No. 1 $836.84, Yorba reservoir $2,693.39, house No. 3,$-587.31, house No. 2 $2,958.30. There were laid during this year a number of other pipe lines a great many repairs made to pumping plants. The total construction expenditures during this year amounts to $65,625.00.Adding the totals for the various years, as before,thew find that $234,549.93 has been expended for construction purposes. In the past seven years our pumping plants have demanded a great deal of attention and expense and hence we shall briefly give a review of amounts spent at each plant. Pumping Plant No. 1, at Horse Shoe Bend, has 3 wells, 2 pits, 1 reservoir capacity 400 inches for 10 hours and one booster plant.Total cost of plant to date $36,023.15. Pumping plant No. 2, at Crowther's corner,has 3 complete plants,total cost $55,842.08. At the Gomber tract we have 3 wells in operation,total cost to date $44,-502.63. The following is work authorized for the current year: 600 feet of 22 inch line on the Ball road and Nursery avenue, estimated at cost of $1.20 per foot. 1300 feet on Calm Drive west of Bradford avenue, estimate cost $1.20 per foot.Completion of covered ditch at Bixby ranch,total estimated cost $13.00 per foot.400 feet 18 inch line on West Orange-thorpe back of B.F.Porter ranch estimated cost $1.00 per foot.The cleaning of the Tuffree reservoir is contemplated during this year at an estimate cost of $20,000.00This work as proposed necessitates the erection of a drag line scraper at an estimate cost of $7,500.00. before being properly tested? St. Helen's has 5 wells and all pumping with sediments showing. We find the wells on the Amalgamated oil lease and St. Helen's Oil Co., running very heavy to sediments and this is contrary to our lease, which calls that all water and sediments in wells should be corrected as soon as possible. We recommend that a tabulated report as to water conditions be reported to the mining bureau by a committee that will force this matter to an adjustment as it is in direct violation of the state mining laws, and if no results are obtained from the local bureau of mines an appeal should be taken to the state supervisor. If no results are obtained by these methods, we recommend suit be filed against the proper persons to enforce the state law for the protection of our property, and when the water wells are cleaned up, we recommend that suit be filed against the Amalgamated Oil company, for non-performance of the covenants of our lease, and the cancellation of same. We find, as the records will show, that our oil receipts over 1919-1920 have decreased better than one-third, while the G. & L., Union and Gilman offset leases show an increase. While the gas condenser was being used on our lease, our part of the gas was close or around $40.00 per month, and since the gas has been piped to the Hualde compressor our gas receipts have fallen to practically nothing, due to the fact, we are told, that our gas is being used for fuel. We find a vacuum pipe system attached to our wells and is likened to a cream separator, taking all liquid gas from our oil production, lowering the gravity and causes a back pressure to our wells, causing a lower production. We recommend the sale of gas be present only the main items of construction for the period up to 1920 and cover the last year in full. In the year 1913, the Anaheim main ditch consisting of 16,760 feet of 36 inch line was constructed at a cost of $25,654.44 and the same year the Caroline Ave. line one mile in length consisting of 24 and 26 inch line, was constructed during this year, aggregated $45,803.99. In the year 1914 the North branch ditch, 9,917 feet in length was completed at a cost of $13,700.00. Total construction for this year amounted to $20,248.76. In the year 1915 pumping plant No. 1 pipe line was laid at a cost of $5,-876.52. A 66 inch syphon at flume No. 7 was installed at a cost of $8,367.17, house at Tuffree reservoir was built at a cost of $1000.00, bringing the total construction cost for 1915 to $18,-840.07. Owing to the devastating flood which ravaged our system during the year 1916, we find that considerable portions of our line had to be replaced. Repairs necessitated almost entirely by washouts amount to $46,516.00 for this year. A 66-inch syphon, 500 inch capacity, at a cost of $5,408.09 was installed at flume No. 4, another syphon of similar size and capacity was installed at flume No. 8 costing $6,-092.38. At "Deep Gate" a syphon was also installed at a cost of $12,841.75, a flume was placed at "Fill" No. 12 costing $2,642.28, a flume was installed at the Bixby ranch costing $11,432.24, at Gypsum a cement ditch costing $5,-333.01 was installed, flood protection work at the head during this year amounted to $5,343.16, flood protection at Pumping Plant No. 1 amounted to $5,575.84, a house built at head for Zanjero cost $578.72, new construction work for this year amounted to $28,344.58. The committee; prompted by the result and observations of its investigation, makes the following recommendations: We believe that our main canal and also some branch ditches are too small, showing that we have not considered future needs. We, therefore, recommend that a complete survey of our whole system be made by a competent engineer with a view to formulating a construction scheme for adequate future development, particularly considering the feasibility of supplying more water to the Cajon canal. We recommend a division of the entire system into sections or stations and the apportionment of all construction and operation according to this system. We recommend a division of the enplant shall account in detail for cost material and labor necessary for its operation, that the water produced be measured so as to establish comparative operation costs of the various plants. We recommend that a system of accounting be introduced and continued adequate to the needs of the business. We recommend that accurate construction costs be kept adding to the basic cost a reasonable percentage of depreciation of overhead for the purpose of figuring subsequent depreciation. We recommend that an annual report be rendered by the superintendent showing details as to construction performed and its cost. It is difficult for the committee to make an intelligent criticism of the cost of the work in the past owing to the fact that conditions under which this work was carried on varied largely; also because no annual reports have been rendered nor accurate construction costs kept. Water Distribution. We obtained data from the office of We, therefore, further recommend, that a committee of stockholders be appointed to revise the by-laws of the company and establish the legal boundaries of the district. We recommend that all outstanding stock of the company be located on land within the district and the distribution of water delivered on the stock to be confined to gravity flow in the future. Our superficial study of the distribution and measurement of water leads us to believe that there is much to be desired in our method or lack of method of water measurements. The system of measuring water used by this company does not compare favorably with systems used by neighboring companies. Our lack of appreciation of an inch acre of water in July finds no parallel in the prominent water companies of southern California. We therefore, recommend that a system of water measurement be adopted by which the water of the company is accurately measured to the Zanjoro and that this system be so extended that each stockholder may know he is getting the water for which he is paying, and that the Zanjoro may know that the irrigator is not getting more water than he is entitled to. The committee wishes to emphasize some of the features that have impressed themselves upon us as stockholders and commend them to the careful and thorough survey of the directors and every stockholder of the corporation. First. We recommend that the stockholders appoint a committee of eleven, representing the different sections of the districts served by this company, to act as an advisory committee to the board of directors. Second. That the recommendations heretofore presented in regard to a careful and thorough survey of the entire plant and possibilities for the fu- port be rendered by the superintendent showing details as to construction performed and its cost. It is difficult for the committee to make an intelligent criticism of the cost of the work in the past owing to the fact that conditions under which this work was carried on varied largely; also because no annual reports have been rendered nor accurate construction costs kept. Water Distribution. We obtained data from the office of the company, which though compiled hurriedly and without careful survey, seems to indicate that the area irrigated in the district is excess of 9500 acres. This does not include 700 acres of the Eucalyptus Water company, lying northeast of Anaheim, and presumably none of the acreage that is without water stock and depends entirely on pumps. It was the intention of the by-laws of the company originally, that each acre of land irrigated should have located on it, at least one share of stock. When the original issue of 8000 shares of stock was exhausted the practice of renting stock came into use. As a result of this practice the expense of operation and developing the system has not been apportioned among the water users according to the benefits received. Cases are recorded where 20 acre orchards within the district are stocked with one to four shares of stock, while similar orchards in the vicinity are carrying 2 to 30 shares on 20acres. Under the system of heavy assessments now in vogue the man who has his orchard adequately stocked is required to pay for developing water for the benefit of non-stockholders. In view of the above fact, your committee recommends: First. That the system of renting stock be abolished. Second. That the company place on the market 1600 shares of treasury stock to be sold to parties having less than one share of stock per acre of land irrigated. Your committee further finds that a practice has developed by which, through the use of pumps, water is being taken outside the legal boundaries of the district. We find that the possibilities of this practice are far reaching and should be discontinued—that the water of the Anaheim Union Water company, can be spread over many hundred acres lying outside the legal boundaries of this district. First. We recommend that the stockholders appoint a committee of eleven, representing the different sections of the districts served by this company, to act as an advisory committee to the board of directors. Second. That the recommendations heretofore presented in regard to a careful and thorough survey of the entire plant and possibilities for future be made and that the board of directors secure a competent engineer of wide experience and unquestioned reputation to carry out this work. Third. We recommend that our interests have the immediate and careful attention to the end that this valuable asset of the company be not trifled away and that our properties may have every care that is possible to give them. We desire to acknowledge the courtesy of the superintendent and the secretary of the company and the efficient stenographer, Miss Smith, for valuable assistance in compiling this report. We wish especially to commend the present superintendent, Mr. Wallop, for the energetic and efficient manner in which he has brought about, under the direction of the board, the betterment of the distributing system, comfortable homes for employees and the repairs to the pumps. S. C. HARTRANFT. JOHN C. TUFFREE. WM. J. M. HEINZ. G. W. SHERWOOD. SAMUEL KRAEMER. J. W. NEWELL. E. D. LANG. WM. BERKENSTOCK. S. S. TWOMBLY. CHARLES C. CHAPMAN. R. S. GREGORY. We, the undersigned, members of the committee submit a dissenting report as regards the renting of stock and the sale of treasury stock, which we believe would be unfair to present stockholders as it would divide our water among this additional number of shares, thereby giving the present owners less water per share which would make it necessary to buy additional water stock to protect their interest. E. D. LANG. JOHN C. TUFFREE. WM. BERKENSTOCK. SAMUEL KRAEMER. WICK'S PHILOSOPHY These mail order concerns do not pay your local taxes, employ local people, build up your community, support your schools, or other local institutons. Jesse James and his gang held up individuals here and there, but did not operate like these mail order grafters. Our gross margin on sales is 14 per cent. Out of this margin we pay all of our overhead including the support of over 65 employees and dependants, support local enterprises, pay local, state and federal raxes, maintain an industrial plant and the remainder our net profit, is kept working for you right here at home. We serve this community with Fords, used cars, Fordsons, farm implements, and such other merchandise just as essential to the welfare of this prosperous community. As our stock is complete we make immediate delivery at your homes if desired. Phone us your orders. SERVICE THAT SATISFIES Wickersheim Implement Co. Fullerton, Cal.