Imperial Valley press and the Imperial press., 1906-05-26

the land Is fixed h either event But
 It Is well to remember the inherent
 character of Irrigation stock commonly
 called water stock. The stock of a
 corporation engaged In the business of
 selling distributing, supplying or dellv-
 ering water for Irrigation purposes or
 for domestic use does not become lrrl-
 gatlon stock or water stock" unless.
 the water Is sold, distributed. supplied
 or delivered to holders of Its capital
 stock only and the lands to which said
 water Is to be sold, delivered, supplied
 or furnished Is described in the stock
 certificate issued for such lands and to.
 which such stock SHALL be appurten-
 ant. It Is expressly set forth In said
 Section 324 of the Civil Code of this
 state Just what the bylaws of such
 mutual water company should contain.
 It is altogether likely that Mr. Varlel
 In the opinion quoted above had this In
 mind when he advised the board of dl-
 rectors of Imperial Water company
 Mo- 1 to conflne their operations to strictly mutual water company en- gagged in the business of furnishing water to its stockholders only" The advice thus given has been religiously followed but the bylaws have been al- lowed to take care of themselves.
 In Mir Varel's opinion concerning the right of the California Develop ment Go. to divert water approprlat- ed under the laws of this state from tho Colorado river and deliver 1t to Imper- ial Water company No. under con- tract without the board of supervisors. of this county having any right to re- view the price agreed upon between the two corporations he naturally as sumed that Water company No. was, mutual water company in compliance: with the proviso of Section 324 of the Civil Code. His reference to the rights of the stockholders of Water company No. under this contract makes that clear No man of his en- thence in the legal profession but would know that in order to prevent the board of supervisors from having the right to set the price at which Im- perial Water company No. must supply water to users said water com pany must decree that it would issue
 its capital stock cnly to owners of land within the boundaries described in it's. articles of incorporation that each cer- tlficate when issued must contain the. description of the tract of land to which It is made appurtenant and that the owner of such land shall thereafter have the right to be supplied with wat CT by said water company at cost. Nothing less than this would make 1t mutual water company nor make it's stock water stock" Water company No. l has done all this except that they have not regarded their stock as appurtenant to the lands on which it is located nor have they set forth in their bylaws anything in regard to the right of their stockholders to water at cost for the irrigation of their lands and not till January 9th. 1906. anything in re- gard to the stock certificates contain ing description of lands or being "lo- cated" thereon. Said bylaw incident ally states that the water shall be de- lvered at the highest corner of each subdivision of l60 acres to holders of such shares (of the stock of Imperial Water company No. ) so particularly located In bl 'cks of not less than 40 shares for use upon the lands and only upon the lands upon which sad shares