Imperial Valley press and the Imperial press., May 26, 1906, Image 1

About Imperial Valley press and the Imperial press. (El Centro, Calif.) 1906-1907

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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
$Ǥ 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