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Imperial Valley Press.
VOL. VI OUR WATER RIGHTS f^,. The contract between the Socleda< de Yrrlgaclon y Terrenos de -la Bajj California and Imperial Water Co. No 1 from which we quoted In our last ar ' tlcle was entered Into on April 6th 1900, just two weeks after the Incor poration of the imperial Water com pany No. 1, which took place on Marcr 23d, 1900. This contract provided that whereas the Mexican company was about to build a canal to diver water from the Colorado river anc Jvas desirous of SELLING THE RIGHT TO USE such water anc Imperial Water company No. 1 was s corporation formed for the purpose o: securing a supply of water from sale Mexican company and supplying same at cost to Its stockholders. Therefore the Mexican company agreed to deliv er at the boundary line an amount ol water not exceeding four acre feet pei annum for every share of stock ol Water company No. 1 sold and locat ed within Its boundaries and Imperia Water company No. 1 agreed that the Mexican company should have the ex clusive right to sell all of Its capital *^tock and retain to itself $875,000 ol the money received from the sale ,ol said stock. Also Water company No, 1 must build its own canal system ai Its own expense and must pay for one : acre foot of water per annum on each share of Issued stock, whether the wat er was ordered^and used or not. There are a few other minor conditions In the contract but we will not mention them all. Our only object In mention- Ing this contract and summarizing Its contents Is to give the beginnings of the present contract relations between the Imperial Water company No. 1, the Sociedad de Yrrlgaclon and the Cali fornia Development company. It will be noted that the Mexican company states that it was about to dig a canal and divert water from the Colorado rlyerandwas DESIROUS OF SELL ING THE RIGHT TO USE SUCH WATER. This contract Is a sale of such.RIGHT TO USE such water and . is paid for by Imperial Water company No. 1 by turning over to said Mexican company all Its capital stock which said Mexican company was given the exclusive right to sell and retain $875, 000 of the proceeds. There Is noth ing extant so far as we can learn to show that the Mexican co.mpany owned any water at all at the time this con tract was made except such as it would be entitled to under the laws of Mexico for the Irrigation of its own lands In that country. 'However,' on December 28th, 1900, nearly nine months after this Mexican company sold THE RIGHT TO USE 400.000 acre feet of water per annum on the lands embraced within the boundaries, of Imperial Water company No. 1 and received In payment therefor all the capital stock of Imperial Water company No. 1 and had sold about 60,000 shares of said stock it entered Into a contract with the California De velopment company which reads as "EXHIBIT U." . This indenture, made and entered in to this 28th day of December, 1000, by and between the California Develop-, ineut company, a corporation, duly or ganized and existing under and by vir tue of the laws of the state of New Jer sey, one of the United States, party of the first part, and la Sociedad de Yrri gacion y Terreuos de la Baja California (Sociedad A nonima) a corporation duly organized and existing under and by virtue of the laws of the Republic of Mexico, party of the second part, Witni'sifth j That. II V V.-Q. HAVENS Whereas, party of the 11 rst part is the owimr of a certain tract of land situated in the County of San Diego, State of California, tuid particularly described as follows, namely: Lots three (3) and four (4) of Section twenty-five (25) and the southeast quarter of Section twenty six (20) and lots (I), two (2), three ('■&) and five (5) and the northwest quarter of the northeast quarter of Section thir ty-five (365 s »"d lot one (1) of Section thirty-six (30) in Township sixteen (16) south, range twenty-one (21) east San Bernardino Base and Meridian, contain ing 318.51 acres of land, more or lees, according to the United States govern ment survey; and, Whereas, the fi ret party has appropri ated and is the owner of a large amount of .the waters of the Colorado river, and is engaged in the diversion of said wat ers from said Colorado river upon the lati<la so owned by party of the first part as aforesaid, and is engaged in the con struction of head works and a canal up on said land for the purpose of diverting said waters, and is engaged in the con struction of an irrigation system and a Byeteni of canals whereby the waters of the Colorado river so diverted upon the said land of first party as. hereinbefore, alleged, may be used for the irrigation of large tracts of land in Lower Califor nia, Republic of Mexico, and in the State of California, United States of America, and, Whereas, said party of the second part is the owner of a tract of land contain ing about one hundred thon8aud(100,000) acres, situated in Lower California, Re public of Mexico, a portion of which said tract of land is situated a '.joining and immediately soutii of the interna tional boundary line between the Unit ed States of America and the Republic of Mexico; and 1 .Whereas, the irrigation system and system of canals so being constructed by party of the first part, crosses said in ternational line from a point upon the land so owned by party of the first part, to a point upon the land so owned by party of the second part; and, Whereas, the proposed extension of said canals and irrigation system ex tends through and across the lands of party of the second part in a generally southwesterly direction, and then in a generally northerly direction across the lands of party of the second part to var ious points upon said international boundary line, from which lands in Cal ifornia, United States of America, can be irrigated, and also extends to other points upon the land of second party from which the said laud of second par ty and other lands in Lower California Republic of Mexico, ciin be irrigated; and, Whereas, party of the second part has entered into a certain contract with Im perial Water Company Number One, a corporation organized and existing un der and by virtue of the laws of the State of California, United States of America, whereby partvof the second part agrees to deliver to eaid Imperial Water Com pany Number One, at a point upon said international line a certain amount of water; and, •>, Whereas, party oHhe second part con templates entering into additional con tracts with other water companies al ready formed or to be formed in the State of California, for the purpose of delivering to said water companies a large amount of water for the purpose of irrigating certain tracts of land situated in the State of California, which are ir rigable Ironi the proposed system, and systems of canals so to be constructed by party of the first part as hereinbefore stated ; and, \ Whereas, party of the Becoiid\part desires to obtain water for thu purpose of complying with the contract so enter ed into between it (party of the second, part) and said Imperial Water Company Number One, and desires to obtain water for the purpose of complying with the contracts ho proposed to be entered into between party of the second part ami said corporations already incor porated in the State of California, and said corporations proposed to be incor porated in the State of California; and, Whereas, party of the second part di> biit-8 to obtain a supply of water for the AND THE IMPERIAL PRESS EL CENTRO. CALIFORNIA. MAY 26. 1906 purpose of irrigating the lands »o be longing to party of the second part as aforesaid; and, Whereas, party of the second part de sires to obtain water for the purpose of furnishing the same for tho irrigation of other lands situated in Lower California, Republic of Mexico ; and, Whereas, under the contract so enter ed into between party of the second part, and said Imperial Water Company Number One, said Imperial Water Co mpany Number One has granted to par ty of the second part the right to sell all of the water stock of it (Imperial Water Company Number One), and' Whereas, party of the second part proposes to obtain similar contracts from other California corporations form ed or to be formed ; Now, therefore, in consideration of the obligations hereinafter imposed up on party of the second part, party of the first pan hereby agrees: I To build a system of canals from the point upon the lands of party of the first part, where said water is to be diverted from said Colorado River to and across said international line and across the lands of party of the second part to other points upon said international line from which large tracts of lauds situated in the State of California, United States of America, can be irrigated; and also a 9ystem of canals from said point upon the Colorado River where said water is to be diverted from which the lands of party of the second part and other lands situated in Lower California, Republic of Mexico, can be irrigated. . ' II Party of the first part further agrees to perpetually deliver to party of the second part a sufficient amount of the water bo appreciated, owned, and di verted, or to be in the future'appropiat ed or diverted by party of the first part from the Colorado River, toenable party of the second part to furnish water for the irrigation of the lands situated in Lower California, Republic of Mexico, and State of California, United Statesof America, which are irrigable by gravity from the system of canals and irrigating system so to be constructed. Said waters so to be delivered by eaid system of canaltj to form an irrigation system for the purpose of irrigating lands situated in California, United Statesof America, and in Lower California. Republic of Mexico, which are irrigable from the Colorado River by gravity. Said agree ment to deliver said waters is made sub ject to and dependant upon the follow ing conditions, namely : 1. No contract made or to be made whereby party of the second part has agreed or in the future shall or will agree to grant, transfer, deliver," or in any manner convey the right to use any of said waters to any person or ■corpor ation shall, by reason of priority in date or any other reason, give to such person or corporation any prior or superior right over any other person or corpor ation who shall in any manner acquire from second party the right to use any portion of said waters. 2 Tarty of the first part shall not be I responsible for a failure to deliver the water hereby agreed to be delivered from any cause beyond its control, but party of the first part shall use due dili gence in protecting the system of canals so to be constructed by it as aforesaid, and in restoring and maintaining the flow of water therein. 11l Party of the first part further agrees that it will keep said canals ,80 to be constructed by it, as aforesaid, jn repair at its own cost and expense, and that it will enlarge the same from time to time as may be necessary for the purpose of com plying with the provisions of this agreement! IV In consideration of the obligations herein incurred by party of the first part, party of the second part hereby grants, assigns, and transfers to party of the first part all right which it, party of the Hecond j>art, has in and to tho stock of said Imperial Water Company Number One, und all right which it has to re ceive any of the moneys which would otherwise be din? and payable to party of the Hecond part under said contract with \eaid Imperial Water Company Number One, from the sale of the stock of eaid Imperial Water Company Num ber One. Second party further agrees that it will make like assignments in the future of all rights which it may ac quire under contracts similar to said contract with Imperial Water Company Number One, which it may make with other water companies in the State of California for the sal«- of the stock of said companies, or the proceeds to he derived therefrom. In witness whereof party of the first part has caused its corporate name and Real to be hereunto aflixed by its pres ident and secretary, thereunto duly authorized by resolution of its Board of Directors; and, In witness whereof, party of the second part has caused its corporate name and seal to be hereunto aflixed by its vice-president and secretary, there unto duly authorized by resolution of its Hoard of Directors. Executed in duplicate the day and year first above written. THE CALIFORNIA DEVELOPMENT COMPANY By Geo. Chaffey, President. By A.M. Chaffey, Secretary. LA SOCIEDAD DE YRRIGACION V TERRENOS DE LA BAJA CALIF ORNIA (SOCIEDAD ANONIMA) By Hiram W. Blaisdell, Vice-Pres. By William T. Heffernan, Secretary By this contract It will be seen that the California Development company agrees to furnish the water to the Soci edad de Yrrlgaclon etc., from. the wat ers of the Colorado river which It had appropriated and OWNED to use their own expression. . The California Development company by this contract became tie owner by assignment of all the unsold stock of Imperial Water company No. 1 aft well as all the •moneys, mortgages, notes or other ev dences of Indebtedness given by the purchasers of the stock that had been sold. From the foregoing It will be seen that the grounds on which the sale of the right to use the water was based 'was as follows: First, the Soci edad de Yrrigaclon etc., sold the right to use the water to Imperial Water company No. 1 receiving therefor the capital stock of said Water company, which it was to sell and retain $875,000 A glance at this Map will show $«§ yj^\ v . BL CEINTRO Will become the ' METROPOLIS of the IMPERIALVALLEY lias been spent in building and permanent improvements in Kl Centro in the last five months. Coiue and see for yourself. This is -■§_ PROGRESS El Centf^Land Co. farm lands for Sale 0. H. CHAPLIN, Insurance lEr General Agent Notar * ? mc 1 Centro ' Wfornla out of the proceeds recetved. After at least $500,000 worth of this stock had been sold by tne Sociedad de Yr rlgaclon It then bought a supply of wat er from the California Development company with which to fulfill . Its con tract. This water had been obtained by the California Development com pany by appropriation under the laws of California some time previous. The scheme, therefore, as presented was as follows: The California De velopment company appropriated the water from the Colorado river and sold It to the Sociedad de Yrrlgaclon y Terrenos de la Baja California which corporation In turn sold the RIGHT TO USE such waterjo Imperial Wat er company No. 1 for $875,000 to' be derived from the sale of the capital stock of said Water company No. 1 , all of said stock being turned over to said Sociedad de Yrrlgaclon etc., for . that purpose. The Imperial Water company No. 1 being a corporation regularly organized under the laws of this state its stockholders were entitled to participate In the profits or benefits of Its operations. This seems to have been about all there was to It until July 24, 1901. when anew contract was made In which the Sociedad de Yrrigaclon y Terrenos de la Baja California is party of the first patt, Imperial Water com pany No. 1 is party of the second part and the California Development com pany Is party of the third part. The first clause cf this contract rescinds the contract of April 6th, 1900, where by Sociedad de Yrrlgaclon etc., sold the RIGHT TO USE the water ex cept insofar as such rescission might affect any act done by either party thereto under said agreement. As about 75,000 shares of the stock of Imperial Water company No. 1 had been sold under that contract It can be seen that despite Its rescission It is still very much alive. The contract then provides that the Mexican com- — — . — ■ Continued on Kitftli l«|T« NO. 7