THE IRKIGATION AGE. 



255 



Company Permitted to Enlarge and Extend Its System, 



or to Deliver Water for Irrigation, Power or 



Municipal Purposes. 



MONTANA (Section 3264.) SOUTH DAKOTA (Sec- 

 tion 10). "The builder of any such canal, or other irrigation 

 works, shall have the right to construct, or subsequently to 

 enlarge, or to make such changes in the same, as will permit 

 the water to be used for power purposes, and to use any 

 surplus water carried therein for such purpose (without inter- 

 ference with the rights of any purchaser of a water-right) 

 all income from such power use shall belong to the builder. 

 but "such use shall be subordinate to irrigation and domestic 

 use of water," etc. The contract between the State and the 

 company, previously referred to, permits additional appropri- 

 ations of water, and increase of capacity of system or any part 

 thereof, for the irrigation of further lands, upon approval 

 by the State Engineer, and provides that "so much water as 

 may be necessary for the use of cities and towns which are 

 necessarily dependent upon the system, shall be furnished 

 upon such terms as may be agreed upon between the com- 

 pany and the municipality upon contributing to the support 

 of the system in proportion to the amount of water used, and 

 shares of stock in the (operating) company may be issued 

 for the amount of water represented by such use, to the 

 trustees of any village or the mayor, in trust, for the benefit 

 of the inhabitants," etc. The contract between the "State 

 of WYOMING and company," cited, provides that the com- 

 pany "may reserve from final disposal the right to the use of the 

 water for power purpose, if such right be utilized within ten 

 years from date of contract," and provides that, "in case all 

 the water appropriated cannot be used for irrigation of all 

 the land described, then the surplus may, with the consent 

 of the State Engineer, be sold for municipal and other bene- 

 ficial purposes this right to be evidenced by shares in the 

 (operating) company." 



One contract between a UTAH company and the settler 

 provides for a "reservation to the company of power rights." 



OREGON Contract between State and Company "Com- 

 pany may sell water rights to lands outside of Carey Act 

 Segregation upon approval of the State Land Board, upon 

 same terms and conditions as provided for 'Carey Act' lands, 

 and upon the cancellation of an equal area of such lands." 



When Company May Sell Water Rights or May Contract 

 for the Sale of Such. 



See "Lands Thrown Open to Public Entry" and "Protec- 

 tion of Settler's First Payment." 



Water Rights Shares Control and Operation of Works 

 Final Transfer of Ownership. 



IDAHO Stock in "operating company" (named), one 

 share to each acre "entered," evidenced by "Certificate of 

 Ownership" is issued at time of purchase, to be held by 

 constructing company as collateral security for completion of 

 payments ; company votes settler's shares until 35 per cent of 

 purchase price has been paid. 



WYOMING When "operating company" is organized at 

 the time the "construction company" enters into contract with 

 the State, the property is immediately turned over to it by 

 deed which is held in escrow by the Commissioner of Public 

 Lands until the settlers have paid the main proportion of the 

 purchase price. 



As rapidly as the fixed per cent (50%) has been paid, 

 the shares of stock in the operating company are issued to 

 settlers, and they immediately assume the powers granted them 

 and vote upon all questions, until this time the "company" 

 holds the stock and votes it, or, the company, at its option, 

 may turn over the irrigation works when 90 per cent of the 

 contracts arer sold. The settlers must organize an "operating 

 company" to which the physicial works can be deeded. New 

 certificates are issued to settlers upon surrender of their 

 original certificates from "the constructing company." Other 

 procedure same as in the case of Idaho. 



COLORADO In one contract shares in the con- 

 structing company, itself, are issued when 75 per cent of 

 the water rights are sold, and upon full payment, upon 

 the part of the settler, of the purchase price. 



In another contract, the company agrees that, upon pay- 



ment of the entire purchase price, it will cause an ""irrigation 

 company which may be organized" to issue a deed to the 

 water rights, and that, when 90 per cent of the contracts are 

 sold, it will issue stock in the "irrigation company," the "con- 

 struction company" retaining control of the system until all 

 the stock shall have been issued. In both cases one share 

 of stock is issued against each 40 acres, the settler's inter- 

 est, prior to the issuing of shares, being confined to the right 

 to the use of the water, as stipulated. The "company," further, 

 provides that in case the water be not ready for delivery 

 within three years from date named in the contract, the trust 

 company holding the advance payments in escrow," may be 

 required to refund all such payments, together with interest. 



UTAH Right to the use of the amount of water con- 

 tracted for passes with the first payment. Upon full payment 

 by settler, and at the discretion of the Board, shares in an 

 "operating company," to which all the "company's" interests 

 are to be transferred by warranty deed, will issue to settlers 

 one share to the acre, or, at its option, the company will 

 issue a warranty deed to the settler, directly. 



MONTANA Contract with Company. Shares in "oper- 

 ating company" one share to each acre pass with first pay- 

 ment to be held as collateral security, and the voting power 

 of which is reserved by the "company" "until 35 per cent 

 of purchase price is paid." 



The Statutes (Section 2265), (also SOUTH DAKOTA, 

 Section 11), provide that "the company may maintain and oper- 

 ate the irrigation works until water rights appurtenant to 90 

 per cent of the lands have been paid for, when such works 

 shall be turned over to the settlers, who shall, thereafter, 

 have the right to maintain and operate it," and the "contract" 

 provides for such transfer of ill its interests excepting only 

 the right to sell water rights at that time unsold, and "units" 

 of the segregation are turned over to the "operating" com- 

 pany for control upon proper certification of completion, upon 

 the part of the Land Board. 



OREGON One "water right" (right to the use of water) 

 to each irrigable acre, passes at time of purchase. Company 

 is. to organize a "water users' corporation" at time specified 

 in contract with State (in one case 10 years from date of 

 entering into contract with State), at which time shares in 

 such corporation will be issued to all settlers who may have 

 completed the payments due, the company retaining the 

 right to sell all shares or "rights" then unsold. 



The contract specifies, further, that until settlers shall vote 

 the majority of the stock, the company shall elect to the 

 Board of Directors, such proportionate number of settlers as 

 their paid-up shares shall entitle them to, and that the books 

 of the "operating company" shall then be open to the inspec- 

 tion of the settlers themselves. (See also "Lands Thrown 

 Open to Public Entry.") 



NEW MEXICO Settler at time of contract subscribes 

 for shares of stock one to each acre in an "irrigation 

 company," certificates of which will be delivered to him when 

 all payments are completed, and which are to be held by the 

 company, with all voting power, until the date of such issue. 

 "Company" conveys its interests to "irrigation company" by 

 deed when the last-named company is organized. 



IN GENERAL It is to be understood that where the 

 entire interest is at once transferred to an "operating com- 

 pany" or an "irrigation company," this organization assumes, 

 at once, complete control and administration of the works, 

 with the obligation to keep it in repair and with the right to 

 levy such toll or maintenance fee as in the contract with the 

 "constructing company" provided. As long as the "construc- 

 tion company" retains control of the "operating company," 

 through its majority voting power, it is under contract obli- 

 gation to cause the subsidiary company to maintain the works. 

 Where contracts provide for the transfer of the interests, at 

 a later date, then the "constructing company," itself, admin- 

 isters the works, directly. 



[Mr. Bohm's next article will continue the discussion 

 of Water Rights, Cost, Maintenance, . Fees, etc.] 



Send $2.50 for The Irrigation Age 1 year, and 

 cloth bound copy of the Primer of Irrigation 



