204 



THE IRRIGATION AGE. 



of the system. (Provision for transfer some method 

 in all contracts.) 



Clause 17 Articles of incorporation of "operating 

 company" and of "Settlers' Associations" taking over the 

 "operating company," must be submitted to State Land 

 Board for approval. 



Clause 18 Company agrees to sell "shares" for State 

 lands at a price of $10.00 per acre less than for contiguous 

 Carey act, lands. 



Clause 19 In case all water authorized to be used 

 cannot be applied to the irrigation of the lands described, 

 company is permitted, by and with consent of the State 

 Engineer, to sell such portion of water for municipal and 

 other beneficial purposes. 



CONTRACT BETWEEN COMPANY AND SETTLER (IN 

 WYOMING). 



Contract No. . . 

 Company. 



AGREEMENT. 



"Preamble, reciting names of Parties to Contract and 

 dates reference to company's contract with the State, to 

 its inauguration of work, recital of water permits issued by 

 the State Engineer, recital naming date when water will be 

 delivered to lands mentioned in contract, that Land Board 

 has authorized company to sell, or contract for the sale of 

 water rights, that the purchaser has applied to the company 

 to purchase the rights specified. 



"In consideration of the sum (named) and of the agree- 

 ments hereinafter contained, it is agreed that the purchaser 

 shall become entitled to shares of stock of the (operat- 

 ing) company, the certificate to be in form as follows, to-wit: 



" (name of operating company). 



shares. 19 .. 



"This is to certify that (settler's name) is the owner of 

 shares of the capital stock of the (operating) company." 



The certificate recites the fact "that the owner thereof 

 'has acquired the right to the use of sufficient water for the 

 irrigation of the lands described,' amount of water to be de- 

 livered (expressed in acre units), proximity of point of deliv- 

 ery of water to lands (described), 'to be subject to rules and 

 regulations based upon a system of distribution, subject to the 

 approval of the State Board of Land Commissioners." " The 

 certificate also entitles the owner "to a proportionate interest 

 in all the irrigation works, state permits and all rights and 

 franchises of the company, such interest to be based upon the 

 number of shares finally sold, and each share representing 

 such proportionate interest as an acre of irrigable land bears 

 to the total area of irrigable land reclaimed." 



"The certificate and the interest it represents cannot be 

 sold separately from the land described. A sale or disposal 

 of the land carries with it this certificate and the interest it 

 represents and the right to the use of water represented can- 

 not be transferred to any other land." 



"Said aertificate to be delivered as provided in said state 

 contract." 



Signatures and attests 



"The water which the purchaser shall have the right to 

 conduct and receive through the said canal system shall be 

 used upon and become dedicated and appurtenant to the fol- 

 lowing described lands, to-wit: (Description of lands accord- 

 ing to government survey), and the parties hereto expressly 

 argee as follows, to-wit:" 



(1) "Recital of the fact of the agreement having been 

 made in accordance with the provisions of the 'state contract,' 

 which, with the laws of the state, defines the rights of the 

 respective parties." 



(2) "The company agrees that so long as it retains con- 

 trol of the (operating) company i. e., as long 



as it continues to vote the majority of the stock of said 

 (operating) company, it will cause the (operating) company 

 to maintain the irrigation system in good order and repair." 



"Said operating company is to have power to levy all 

 necessary tolls and assessments upon all purchasers of water 

 rights (whether water is used or not), and the company 

 agrees that no charges shall be made until (a date specified). 

 and that charges shall be limited to (a sum stated the 'main- 

 tenant fee'), payable at office of the (operating) company upon 

 ("date named) each year, without notice." 



(3) "The consideration for the water rights agreed to be 



conveyed is the sum of and the balance remaining 



due after initial payment is payable as follows, to-wit:" 



Table of annual payments, extending over period of from 

 ten to twelve years (or the entire amount or any unpaid bal- 

 ance may be paid in full at any time. "Interest from (date 

 named), at 6 per cent per annum, is to be paid annually. 'In- 

 named), at 6 per cent per annum, is to be paid annually. In- 

 terest to be computed at 8 per cent, if not paid within thirty 

 days from date when due. Interest that may have accrued 

 prior to the dat of notice given entrvman that the company 

 is prepared to furnish water, 1 is waived." 



(4) "The purchaser agrees that upon default in any 

 of the payments above specified, or of any annual assessment 

 for the maintenance of the system, the comapny may declare 

 the entire purchase price due, and may proceed to collect same 

 and to enforce any lien which it may hold upon the wat^r 

 rights or upon the lands, or may, at its option, enforce any 

 remedy given by the laws of Wyoming." 



"And the purchaser hereby sets over by mortgage to the 

 company, to secure payment of all amounts due. all interest 

 and all rights now in his possession, or which may accrue to 

 him under his contract with the State for the purchase of the 

 land, and that, immediately upon transfer to him of the legf 1 

 title to such land, he will execute to the company a mortgag", 



with power of sale, to secure the performance by him of che 

 provisions of the contract, which mortgage the purchasnr 

 agrees shall be a first Hen upon the lands, superior to any and 

 every incumbrance in favor of any persons whomsoever." 



(6) "The purchaser agrees that the shares of storu pur- 

 chased in the (operating) company shall be, and are hereby, 

 assigned to the company, which is hereby empowered to vote 

 such stock as it may deem proper at all stockholders' meetings 

 of said (operating) company, until 50 per cent of the purchase 

 price of such stock has been paid." 



(6) "It is agreed that no water shall be dilevered to pur- 

 chaser while any installment of principal or interest or any 

 toll or assessment is due and unpaid. Water shall be deliv- 

 ered only during the irrigation season (dates being specified) ; 

 a domestic supply, when necessary, outside of the irrigation 

 season, shall be delivered under such rules and conditions as 

 shall be determined by the (operating) company." 



(7) "This contract may be assigned by the Company, and 

 thereupon the payment of principal and interest, if so pro- 

 vided, shall be payable to the assignee; but the payments for 

 tolls and assessments shall, unless otherwise provided, be paid 

 to the (operating) company, and payment may be enforced 

 by it." 



Signatures of parties and witnesses, attests. 

 Notarial attest. 



Blank form of (settlers) assignment of water rights 

 (contingent upon approval of Company). 



It is well, to obviate misunderstanding, to dwell 

 again upon the important distinction that the term 

 "Company" in every case refers to the company con- 

 tracting with the State for the reclamation of 

 the lands, and for the construction of the works neces- 

 sary, while the "operating company" may be described 

 as a "legal" creation, whose ultimate purpose is to 

 become an instrument for the conveyance of title 

 from the "construction company" to the settler. Although 

 this method affords a convenient means of transfer, it 

 is not to be assumed that it is the rule in all cases of 

 outstanding contracts on segregations already thrown 

 open to entry. In one contract (Colorado) now in force, 

 provision is made for the ultimate transfer of shares of 

 stock in the construction company itself; in another, the 

 contract with the State provides for the incorporation of 

 a "settlers' company," upon the sale of a stipulated per- 

 centage of the total of all water rights. In both cases 

 one water right is conveyed with each 40 acres. 



The principal features of this contract, are as can 

 readily be inferred, essential to all contracts, regardless 

 of the State, details of method, such as the transfer of 

 "shares," the injection of the "operating" company, and 

 matters of minor importance may vary, but the objects 

 sought are in every case identical, viz: To vest the set- 

 tler with the right to the use of sufficient water for his 

 needs, to secure to him his share in the ultimate owner- 

 ship of the "project," and to assure to the company the 

 payment of the sums due to it. 



Other Contracts Between State and Company and Com- 

 pany and Settler. 



IDAHO. Shares in an operating company pass to 

 purchaser at time of application for water rights, and 

 with first payment to the construction company one share 

 with first payment to the construction company, one 

 share to each acre of land, to be held by construction 

 company, as collateral security' until payments are com- 

 pleted. 



Interest, at 6 per cent, computed from date men- 

 tioned (April 1st or March 1st), contingent upon water 

 being available for such purposes during the irrigation season 

 of the year named in the contract if not available at 

 that time, then interest to be computed from the date of 

 actual delivery of water. 



If water is available at the beginning of the irriga- 

 tion season of the year named, then deferred payments 

 upon the principal sum become due upon the dates speci- 

 fied in the contract if there be any delay in the delivery 

 of water then all payments on principal and interest are 

 advanced in time according to the period of such delay. 



The company reserves the right to vote the settler's 

 shares in the operating company until 35 per cent of the 

 purchase price of such shares has been paid. 



COLORADO. Use of water restricted to irrigation 

 and domestic purposes. 



Water may not be allowed to run to waste. 



The company reserves the right to formulate rules 

 for the delivery of water, and the right to arbitration and 

 final decision in case of disputes between settlers. 



The company disavows all responsibility for dam- 

 Continued on page 222.) 





