Okay, some people did not take kindly that they felt I left them hanging about Grant Smith Company and the bondholders of the Bly Tunnel. I should have mentioned at the conclusion that I would do a follow up. Here it is, enjoy!
What Grant Smith did not initially disclose to the bondholders was that the original plans called for the intake to tap the lake forty feet below the current surface. They only told the bondholders they did eight feet, citing the volcanic rock bottom too difficult. In addition, Leon Bly and Grant Smith agreed to the change, but it was not revealed to anyone else. Because of these problems, the irrigation districts could not use the water until they agreed to sign off its completion. Stymied, on September 8, 1923 the districts and Leon Bly agreed to accept a final settlement, and $25,000 would be withheld to correct the defects. Lo and behold in the beginning of the 1924 irrigation system, during one of the worst droughts ever experienced locally and throughout California, it was discovered Grant Smith only did three feet below the surface at the intake! The districts would need a lot more money than stipulated.
