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The Articles of Incorporation below were from the Jan. 27, 1990, meeting
on the 100th Anniversary of the Bessemer Ditch
Articles of incorporation for the Bessemer Ditch Company were filed May 15, 1888. The Board of Directors named in the Articles of Incorporation were:
James Carlile
John Dougherty
H.J. Fitch
M. L. Graham
Robert Grant
M. N. Megrue
James Orman
The first meeting of the Board of Directors was held February 2nd., 1889. The purpose was to organize the Board and adopt the by-laws.
The officers elected were:
President ••••••• J. B. Orman
Vice-President ••• Wm. Crook
Secretary ••••••• J. A. Writer
Treasurer ••••••• W. L. Graham
After the election of officers, they proceeded to adopt the by-laws.
According to the by-laws, the purposes of the company were:
- To construct a ditch or canal and lateral or branches to obtain water for domestic and irrigation.
- To pump or otherwise convey water to a reservoir or reservoirs that might be developed. Such water to be for the sole use of the shareholders.
- All stockholders must be land owners.
- To acquire real estate necessary to fulfill the purposes of the company.
- To borrow money and pledge the resources of the company in security.
- The capital stock to be $300,000.00 divided into 30,000 shares at $10.00 per share.
The officers of the board were to be a President, Vice-President, Secretary, who might be someone not a member of the board and a Treasurer.
The operation of the ditch would be the duty of the Superintendent who would have full charge, in close consultation with the President, of all company operations.
The annual meeting of the shareholders was to be held on the third Monday of May.
The owners of one-fourth of the total shares could require the President to call a special meeting of the shareholders.
In addition to having charge of the complete operations of the ditch, the superintendent was required during the irrigating season to file with the Secretary “on Saturday the actual volume of water carried and flowing through the Company's ditches during the current week and said report shall also contain a statement of the quantity of wa ter allocated to and used by each and every shareholder during said week.”
The Board met April 15, 1889, in special session to consider a request of the owners of over one-third of the outstanding stock for the purpose of amending the Articles of Incorporation.
A meeting of the stockholders was called for May 20, 1889. All stockholders were present and were listed as follows:
W. L. Graham (600 shares)
M. N. Megrue (160 shares)
A. S. Dodge (80 shares)
J. A. Writer (189 shares)
Robert Grant (1600 shares)
J. N. Carlile (1500 shares)
John Dougherty (490 shares)
H.J. Fitch (10 shares)
Orman & Crook (1440 shares)
Colo. Coal & Iron (10,000 shares)
Total Shares Subscribed
To date -------------16,069 shares
The meeting of the stockholders transacted the following. Designated the location of the headgate, listed the number of each surveyer's townships through which the main canal would cross, the total length of the main canal would be 43 miles.
Empowered the Board to acquire rights-of-way for both main canals and for laterals and reservoir or reservoirs.
Empowered the Board to issue bonds and execute a deed of trust on all assets of the company as security for the bonds. Also to create a sinking fund for the redemption of the bonds.
On May 20, immediately following the meeting of the stock holders, a special meeting of the Board was called. At which meeting, the Board authorized a $200,000.00 bond issue at 7% interest payable semi-annuall.y The-bends were to be issued in denominations of $1,000.00, $500.00, and $100.00 payable in 15 years.
Authorized a deed of trust on all property owned by the Ditch Company to be given to the underwriter of the bonds.
The President, J.B. Orman, and the Secretary, J. A. Writer tendered their resignations.
The following officers were elected:
President •••••••• John Dougherty
Vice President ••••• J.B.Orman
Secretary •••••••• H. J. Fitch
Treasurer •••••••• w. L. Graham
Adopted a resolution requesting each stockholder through which the main ditch would pass to deed to the Company a strip of land 100 ft. wide (50 ft. on either side of the ditch) and that all stockholders grant rights-of-ways through their property for laterals. Furthermore, any future subscriber shall file in writing a statement granting such obligation.
Directed that a map showing the location of the main ditch be filled with the County Clerk’s Office.
All stockholders were required to file with the Secretary a quit claim deed to the Bessemer Ditch Company for all lands that was to be irrigated. Such land was to secure a first mortgage, or trust deed to be issued by the Ditch Company in security of the bonds to the amount of $200,000.00. Furthermore, all stockholders shall file with the Secretary, an abstract showing clear title to the land to be irrigated. The quit claim deed and abstract to be returned when the owner paid the total cost of stock he had subscribed.
Resolved, that thirty days after May 20th., 1889, the price of any unsubscribed stock would then be set by the Board.
A special meeting of the stockholders was held at the Southern Hotel, June 19, 1889, and authorized the Board to close the subscription of capital stock.
Following the meeting of the stockholders, the Board of Directors held a special meeting. Only 5 members were present. The purpose of the meeting was to consider bids for the digging and grading the main ditch. Orman and Crook and Carlile & company submitted the following bid:
moving earth ---------10 cents per Cu. Yd.
" shale ---------15 cents " " "
" loose rock---30 cents " " "
" solid rock--- 80 cents " " "
There being no other bids, the Board awarded the contract for grading the ditch to Orman & Crook and Carlile & Co. (Do you suppose that there might, just might, have been a bit of colusion?).
Paid bills amounting to $20,574.84. Levied a $2.00 assessment on each share of subscribed stock. (This is the first payment on the purchase price of the stock. One dollar was to be paid in 15 days and the second in 30 days. Hired a Mr. J.S. Greene as consulting engineer at $2,000.00 per year. Offered Joseph Simons, of New York, a contract for doing the engineering for the entire ditch for $10,000.00 which sum included Greene's salary.
Through condemnation, right-of-way had been gained through the property of a Mr. Livesay for $1,055.00 and the President was authorized to proceed with condemnation process through the property of w. T. Harp, George Bell, Sperry and others.
June 21, 1889, a special meeting of the Board paid a Mr. Fortnes, evidently an engineer, for his services in providing drawing, etc. to July 1, when J. P. Simons, of New York, would take over the engineering services.
Evidently the President, John Dougherty, has been away from the later part of June through most of July. At a special meeting on July 29, he reported on the work done on the ditch thus far. Evidently engineer Simons had been in charge of the work being done on the construction of the ditch. President Dougherty filed a statement complaining that inferior lumber had been used in the headgate, the re taining wall was inadequate, work in general was slouchy. While in the meeting a telegram arrived from Henry S. Grove, Vice President of Colorado Coal and Iron, who was in New York, advising Dougherty to let no contract for lumber until his letter arrived. Considerable savings could be made.
Simons was asked for an explanation of the meaning of the telegram. Simons refused, stating that he would explain in writing. Firing Simons was tabled until after the Board had inspected the work and Simons had filed his report.
Now that the Bessemer Ditch Company had established an office in the Southern Hotel in Pueblo, they had rented two rooms at $20.00 per month, a resolution was passed that all records, reports, drawings and specifications must be filed and remain in the ditch office with the Secretary. After inspection by the entire Board of the work done, the Board met at 5 P.M. in the Ditch office on July 31, 1889. They received bids on building the flume across the St. Charles and filed them.
President Dougherty, reported to the Board that the New York Bank would underwrite the bonds at 92 1/2% net to the Ditch company. They fired Simons for prevarication and inefficiency.
The following is from Mr. Pete Pisciotta's land abstract:
As verification of the fact that a11 stockholders were required to give the Ditch Company a quit claim deed to their land, on July 18, 1889, both McHarg and Grant executed quit claim deeds to the Company for their land.
Evidently by 1893, the Bessemer Ditch Company was in very dire financial straights. According to the same abstract, on December 20, 1893, H.E.Mulnix and Louis A. Hope put a lien against the Ditch Company for $6,777.16. Also, there are other liens listed. Evident1y, in 1893 or ear1y 1894 the Bessemer Ditch Company took bankruptcy.
In July, 1894, O.M. Ladd, W.L. Graham and C.K. McHarg filed Articles of Incorporation for the Bessemer Irrigating Company. The purpose of the new company was to purchase the assets of the Bessemer Ditch Company for $168,000.00.
In turn, the Company gave Mahlon Thatcher a deed of trust on the Company's assets for $168,000.00
The Bessemer Irrigating Company has no records of operation from July 31, 1889 through to some time in 1920 due to the 1921 flood.
The Chairman introduced Mr. Dick Allen. Mr. Allen said that the annual meeting of the Colorado Water Protection and Development Association will be held February 17th. at 1:30 at the Capri Motel in La Junta.
He would like to have as many people as possible attend. The association is trying to protect well rights. He said that he and Mr. Bert Hartman are Pueblo County Directors.
Mr. Bill Mullen was next with his report on the physical condition of the ditch. He said our water year was not as good as previous years. We ran 60,000 A.F. Regarding the ditch lining, so far we have done 3,700 Lin.Ft. with the possibility of 2,000 more. Next year, we might possibly get in 4,000. We have been very lucky with the weather. Last year it cost about $70.00 per foot for the lining. He has inspected the sections we did in 1979, 80 and 81 and they look good. He presented the financial report. The reason for the deficit shown is because we bill the govern ment 1 month after the work is completed. The government is paying 78% City 11%, and ditch company 11% of the cost. Our bank note should be paid off this year. On motion by Mr. Joe Pisciotta. seconded by Mr. Dave Ciruli and carried, the financial statement for the year 1989 was approved.
The report on the 100th. Anniversary of the Company was given by Mr. Cecil Mullins. He stated that he had read the minute book from Feb. 2, 1889 to July 31, 1889 and it was all written in legal terms. The Articles of Incorporation were first filed in May, 1888. First meeting was held Feb. 2, 1889. At that meeting, they elected officers and outlined the by-laws. Stock was sold for $10.00 per share. The first office was located in the Southern Hotel. Details were given about the major stock holder of the company taking out bankruptcy and eventually the filing of new Articles of Incorporation in 1894. Most of the records between 1889 and 1920 were destroyed in the 1921 flood. Many items of interest were covered in the report.
Discussion was held regarding the organizing of the ditch company.
The following resolution was made by Mr. Orval Hartman, seconded by Mrs. Mary Farley and unanimously carried, same was adopted and made a part of these minutes:
RESOLVED that the report made by Mr. Cecil Mullins on the history of the company be filed with and made a part of these minutes.
The Chairman announced that there are 2 Wilderness Bills introduced to Congress by Senators Armstrong and Wirth. The Board of Directors has studied the proposals and believe that Senator Armstrong's bill would protect our water rights and ask the stockholders to support this in anyway they can.
The Chairman called for nominations for Directors for the ensuing year. Mr. Dave Ciruli nominated the following: Carl Genova, Cecil Mullins, Pete Pisciotta, Earl Asbury, Artie Hartman. Orval Hartman and Tom Richardson. As there were no further nominations, on motion by Mr. Dick Allen, seconded by Mr. Harold Day and unanimously carried, the nominations were closed.
The Chairman then cast the unanimous ballot for the following: Carl Genova, Cecil Mullins, Pete Pisciotta, Earl Asbury, Artie Hartman, Orval Hartman, and Tom Richardson, to be duly elected Directors who will serve for the ensuing year or until their successors shall have been elected.
An assessment resolution, levying an $19.00 assessment per share of stock for the year 1990 was read by Mr. Dave Ciruli. On motion by Mr. Ciruli, seconded by Mr. Cecil Mullins and carried, same was adopted and made a part of these minutes.
