Imperial Valley press., 1910-08-20
NO PRIVATE CORPORATION.
Supplemental Opinion Adverse tc Proposed Generalization of
 Mutual compaaies.

Imperial, California.
 My dear Sir:---
 Your letter of the 18th inst. re. ceived As to the proposition to in- corporate all the mutual companies into one company for the purpose oi taking over the California Develop ment Company, one of the leading difficulties is the impractibility of the plan, and the helplessness of a purely private corporation to deal with the California Development Company and the numerous claimants holding de- mands against it.
 Q). The mutual corporations, as corporations, have no power to con- pine and form themselves into one corporation.
 CD. It would be impossible to get all the land owners in the County to join such corporation and take stock in 1t.
 (3). Such corporation would be without the power of eminent domain, which may be a necessary weapon to acquire property and to resist excess sive exaction.
 (4). It is extremely doubtful whether, if such a corporation could be formed and all the land owners of the County should join it, whether it's bonds would be salable, unless se- cured by universal mortgage upon the lands of its stockholders. This might lead to the financial ruin of many in dividuals on account of their liability for others, who might make default in payments.
 I have referred to some of these considerations on page 4, paragraphs 1 and ? of my formal opinion. I fear that the attempt to incorporate all the land owners of Imperial County, whose land is susceptible of irrigation | from the Colorado, into an ordinary private corporation would, for want of any power. in majority to constrain l greater or lesser minority, simply \ lead to chaos.
 1 A corporation under the Bridgford Act is merely mutual corporation l with the safeguard to the land owner l that his land can never be liable fol more of the liabilities of the district than his proportion of assessments; and he could not be made directly liable for the default of another in paying his assessments. An irriga- tion district gives to the bond holder the security of the power of taxation under the laws of the State for the payment of interest and principal of the bonds.
 The Bridgford Act is specially adapted to the situation in Imperial Valley, because every acre or irri- gable land must receive it's water sup ply from the same system, and such land can not be used unless it is so irrigated. Hence there is equality be- tween land owner and land owner. The difficulty with such irrigation districts as Escondido was, is that a great part of the lands within the boundaries of the district did not de- sire irrigation. This was a constant source of dissatisfaction, and led to the dissolution of the district. AS a financial proposition, the bonds of Im- perial Valley Irrigation District would have the recommendation that every land owner who would be assessed to pay the interest and principal of bonded debt, would have direct and vital interest in the success of the district and the maintenance of its system. And as I have suggested above such an irrigation district would be a mutual corporation, with the carefully thought of provisions of law behind it to back it up. It would have all the beneficial features of mutual corporation, plus the power of emil nent domain, and plus the special features of the power of two thirds majority to constrain an unwilling minority, and the power of taxation to give credit to it's securities The only advantage private mutual cor poration would have would be the doubtful one of more facility for deal ing with the stock of the Mexican Corporation But as look at it, there never can be any solid adjustment of rights with the Mexican Company and the Mexican Government avcant h,,