Historic Resource Evaluation Project - Tuolumne Utilities District

1882:172). The day’s festivities were concluded with a community dinner, fireworks,
and a ball.
The celebration was brief, however, as several factors led to the rapid demise of the
company: even when the new ditch was completed, seven out of eight miners continued
to purchase their water from the TCWC; the decline of the placers in the foothills, with
assessed property values in Tuolumne County dropping 12% between 1858 and 1859; the
Fraser River gold rush, when many abandoned the California gold fields; and the heavy
mortgage debt of the company. One of its major creditors was the firm of Donnell and
Parsons, who operated a store in Columbia and built the Donnell Flat sawmill at their
own expense to be paid half in stock and half in scrip at 2% interest per month; they also
loaned the company $5750.50, with a note and mortgage on the company as security. A
disastrous fire in Columbia in August 1857 destroyed the Donnell and Parsons business;
needing money to rebuild, they requested the money due them from the C&SRWC, who
then borrowed money from San Francisco capitalist Erwin Davis to repay the firm
(Johnson 1988:31).
After several machinations by creditors Donnell and Parsons, Col. William S. Smart of
Jacksonville, Mr. Caldwell, Erwin Davis, and other creditors, the company was
foreclosed upon and sold early in May of 1859, with liabilities approaching one million
dollars. On May 9, Davis purchased the ditch for $78,650 in an attempt to protect his
investment and assuage the angry miners. He agreed on terms that would allow him to
control the ditch, with half of the proceeds to go the trustees to divide among the other
creditors.
Several attempts were then made in order to redeem the ditch, but Davis remained in
control. In one effort the Columbia Water Company was organized and tried to raise
money by selling stock. Without raising enough money, another company was formed,
the Tuolumne Redemption Company, which finally raised the full sum and paid $94,
950.22 to Davis in gold. The Redemption Company also purchased mortgages from J.J.
Poor and Smart. Davis, however, quietly redeemed the ditch for $98,711.83, claiming it
as the assignee of two other judgments rendered in July 1859. The Redemption
Company then sued Sheriff John Sedgwick for the company deed, but he refused to
comply. They then went to the courts, losing in the Fifth District Court, and then to the
State Supreme Court, who decided against them and gave Davis title to the ditch.
By April of 1860, salaries were trimmed and the number of employees reduced. In June
a committee was appointed to confer with Davis to arrange a settlement of their
difficulties. On July 1 the committee was discharged and an agreement was signed
between the Redemption Company, Davis, and the TCWC on June 12, 1860, Under the
terms of the agreement, the Redemption Company stockholders were repaid, and Davis
received his share (Deed Book 9:322).
On July 12 the ditch was turned over to the TCWC for $149,307.18, described as follows:
Foothill Resources, Ltd. 3.15 TUD Ditch Sustainability Project
Francis Heritage, LLC
Historic Resource Evaluation Report