268 Cooperation in Agriculture 



In such cases it is usual to deliver on order of the stock- 

 holder within certain reasonable limitations, the water 

 being measured at each delivery point. Each stockholder 

 may be entitled to a certain amount of water each month, 

 preference of time of delivery being in order of applica- 

 tion. 



" Mutual water companies are incorporated in California 

 under the law for the incorporation of private companies. 

 Three or more persons may incorporate. Articles of in- 

 corporation as prescribed by law must be filed with the 

 county and the state, whereupon the latter issues a certifi- 

 cate of incorporation. The articles should declare the 

 purpose of the organization broadly enough to permit the 

 conduct of all business unhampered, but should state that 

 water is not to be sold for profit. The corporation should 

 then adopt by-laws that are consistent with the consti- 

 tution and laws of the state. The by-laws should specify 

 the duties of the officers, regulate the service, and define 

 the relations of stockholders to the company. In the 

 light of present experience only a few suggestions may be 

 made for new organizations regarding changes from the 

 usual form and methods of the better companies now 

 operating. The water should be capitalized at a figure 

 that will cover the entire cost of making it available for 

 the irrigation of the land, exclusive of operating expense. 

 This usually includes cost of real estate, water rights, 

 rights of way, construction of works, engineering, and all 

 incidentals to preparing the system for service. A fair 

 capitalization for pumped water in the fruit districts is 

 $1000 per miner's inch. As there is practically no surface 

 water without storage left for appropriation in the streams 



