Elmore County Republican. [volume] (Mountain Home, Idaho) 1910-1915, 1914-01-24

system.
In the summing up of the decisio
the supreme court says:
Where a company Is incorporate
for the promotion of an irrigatio
scheme and to construct an irrigs
ton system, consisting of reservoirs
dams and bitches, and such corpora
ton enters into contracts with pea
sons having land within such projec
to furnish them with water at a
agreed price per acre divided int
annual payments, and agrees to com
plete such system within a certain
time and furnish the purchasers O
water rights with water, and agree
to turn such system over to such pun
chasers OF water rights after its com
pletion, and thereafter mortgage,
its interest in such system and waite,
right and also assigns such waite
right contracts as security for Dor
rowed money, which money is used /.
the construction of such system, held
that the person loaning the money
only acquires such rights and interes
as the irrigation company has in sucf
project and such water right con
tracts and cannot collect the pay.
ments that become due after the
time has expired for the completion
of such irrigation system and the de-
livery of water, until the said sys EN-
is completed and the water deliVere d
I'm accordance with the terms of the
water right contracts.
Under the provisions of sad water
right contracts, the Murphy Land e
Irrigation company agreed to COM
plete said irrigation system and turn
the same over to the purchasers of
water rights within a specified time,
and the Murphy company was not
the trustee or agent of the water
right purchasers for the construction
of said system.
Neitzel, who loaned the money to
said Murphy Land & Irrigation COM
pany and took a mortgage and an
assignment of said water contracts
as security for the payment Of the
money loaned, did not become an
insurer for the Murphy company to
the water right claimants that said
system would be completed and the
water furnished as provide by said
contracts, but acquired no other right
than that which the Murphy Irriga-
ton company had in the collection of
deferred payments provided for by
said contracts, and cannot enforce
the collection of such payments and
apply the same on his mortgage debt
until said system has been completed
and turned over to the water right
purchasers as provided by such con-
tracts.
The fact that the purchasers of
such water rights authorized the Muir
ply company to assign them does
not estop them from setting up as
defense against the payment there
of that said system has not been
completed as required by said con-
tracts. Il
Mortgages or assigns of irrigation
project corporations can acquire no
greater interest in such project or
water rights contracts connected
than such corporations
have.
Section Is of article II of the state |
prohibits the legislature |
from passing any law which would |
permit the leasing or alienation of
any franchise so as to release or re-
ieVe such franchise or property held
hereunder from any liabilities of
he lessor or grantOr or lessee or
grantee, contracted or incurred in
he operation, use or enjoyment of
such franchise or any of its privi-
eyes.
Under the provisions of section 2
# article Is of the constitution, the
light to collect rates or compensa-
ion for the use of water Is a fran
,hise and cannot be exercised except
n the manner prescribed by law.
Section 1 of article Is provides
hat the use of all water now appro-
'riated or that may hereafter be ap-
for sale, rental or distri-
'ution is public use, subject to reg
Llation and control of the state in
he manner prescribed by law.
The Murphy Land & Irrigation
company is a public service corpora
ion.-Statesman.