Imperial Valley press and the Imperial press., 1906-05-19

| This agreement made and entered in to this 9th day of April, 1900, by and be tween Sociedad de Yrrigacion y Terrenos de Ia Baja California (Sociedad Anonima) a corporation duly formed and existing under and by virtue of the laws of the Republic of Mexico, party of the first part, and Imperial Water Company No. One, a corporation formed and existing under the laws of the State of California, United States of America, party of the second part,
 Witnessetb That,
 Whereas, the first party is about to construct canal for the purpose of di- verting certain waters of the Colorado River to be used for irrigation and other useful purposes; and
 Whereas, first party IS DESIROUS OF SELLING THE RIGHT TO USE SUCH WATER; and
 Whereas, second party is corpora tion formed for the purpose of supply ing water at cost to it's stockholders on ly upon certain lands situated in the County of San Diego, State of California, and situated within certain exterior boundary lines mentioned and described in the articles of incorporation of second party ;andS
 Whereas, second party is desirous of obtaining supply of water for the use of it's stockholders.
 Now, therefore, this agreement furth- CT witnesseth:
 l. That for and ill consideration of the agreements on the part of second party hereinafter contained, first party hereby agrees upon demand of second party to annually deliver to second party four (4) acre-feet of water for each share. of stock of second party which may have been issued and located upon lands sit uated within the boundaries of the lands to be supplied with water by second party. Provided, however, that the ag- gregate amount of water which first party is hereby obligated to deliver to-. second party shall not exceed four hun dred thousand (4OO, ,0OO) acre-feet per an- mum.
 The basis on which the men who planned Imperial Water company No. apparently acted was first, that the water belonged 10 the Sociedad de Yr- rigacion y Terrenos de Ia Baja Califor- nia. Second that Imperial Water Go. No. was organized for the purpose of securing supply of water from said Sociedad de Yrrigacion. etc. for the use of Its stockholders only, and third that the contract with said Socledad de Yrrigacion limited the right of said Imperial Water Co., No to deliver the water supplied to Ii by said Socie- dad to holders of its capital stock only and only upon lands on which this stock Is located. From these premises they have argued that the water stock was merely stock In corporation having contract with another corporation for a limited amount of wate- to be used for certain purpose to-wit, not to exceed 100000 acre feet of water per annum to be distributed to Its stockholders on- y This being the case 1t did not seem necessary to take any notice of Section 324 of the Civil Code in order to make Imperial Water Co. No. a mutual water company. The bylaws adopted therefore contained nothing in regard to the stock being issued and located on certain tracts of land owned by the stockholder and entitling the holder to water with which to irrIgate said land All that could be construed was that the stockholder was a part owner in the corporation and as such entitled to participate in Its business and share any profits or advantages that might arise from its operations.
 L.. a-..