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Rep. 228, and note, 229. Note citation: Western Union v. Cooper, 10 Am. St. Rep. 786.)

Stipulation limiting liability of telegraph companies for mistakes or delay in transmission or delay of message held reasonable and sufficient to shift burden of proof of negligence. (Hart v. Western Union Telegraph Co., 66 Cal. 579, 56 Am. Rep. 119, 6 Pac. 637.)

PERSONS LIABLE FOR DAMAGES FOR INJURING TELEGRAPH

PROPERTY. Sec. 537, C. C. Any person who injures or destroys, through want of proper care, any necessary or useful fixture of any telegraph corporation, is liable to the corporation for all damages sustained thereby. Any vessel which, by dragging its anchor or otherwise, breaks, injures, or destroys the subaqueous cable of a telegraph corporation, subjects its owner to the damages hereinbefore specified. En. March 21, 1872.

Legislative History.

Section 152 of the act of 1850, page 347, section 2 of the act of 1857, page 117, and section 8 of the act of 1862, page 290, contained similar provision to the above.

PARTY GUILTY OF WILLFUL AND MALICIOUS INJURY LIA

BLE TO ONE HUNDRED TIMES ACTUAL DAMAGES. Sec. 538, C. C. Any person who willfully and maliciously does any injury to any telegraph property mentioned in the preceding section, is liable to the corporation for one hundred times the amount of actual damages sustained thereby, to be recovered in any court of competent jurisdiction. En. March 21, 1872.

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Ilegislative History.

Section 8 of the telegraph act of 1862, page 290, is the basis of this section.

CONDITIONS ON WHICH DAMAGE TO SUBAQUEOUS CABLE

MAY BE RECOVERED. Sec. 539, C. C. No telegraph corporation can recover damages for the breaking or injury of any subaqueous telegraph cable, unless such corporation has previously erected on either

bank of the waters under which the cable is placed, a monument, indicating the place where cable lies, and publishes for cne month in some newspaper most likely to give notice to navigators, a notice giving a description and the purpose of the monuments, and the general course, landings, and termini of the cable. En. March 21, 1872.

Legislative History.

Section 3 of the telegraph act of 1857, page 171, is the basis of this section,

MAY DISPOSE OF CERTAIN RIGHTS.

Sec. 540, C. C. Any telegraph corporation may at any time, with the consent of the persons holding two-thirds of the issued stock of the corporation, sell, lease, assign, transfer, or convey any rights, privileges, franchises, or property of the corporation, except its corporate franchise. En. March 21, 1872.

Legislative History.

Section 6 of the act of 1861, page 84, is the basis of this section.

RATES OF CHARGES TO BE FIXED, AND HOW PUBLISHED.

(Repealed.) Sec. 541, C. C. En. March 21, 1872. Rep. 1873-74, 216.

Legislative History.

The section repealed reads as follows: “Sec. 541. Every telegraph corporation must fix uniform rates of charges for transmitting messages proportionate to the number of miles the same are sent, which must be uniform throughout the state, and publish them by posting such rates at each of their offices in use."

TITLE VIII.

WATER AND CANAL CORPORATIONS.

$ 548. Corporation may obtain contract to supply city or town. $ 549. Water corporations, duties, etc.- Rates. § 550. Right to use streets, ways, alleys, and roads. § 551. To build and keep bridges in repair. § 552. Right of purchaser to use water for irrigating.

CORPORATION MAY OBTAIN CONTRACT TO SUPPLY CITY OR

TOWN. Sec. 548, C. C. No corporation formed to supply any city, city and county, or town with water must do so unless previously authorized by an ordinance of the authorities thereof, or unless it is done in conformity with a contract entered into between the city, city and county, or town and the corporation. Contracts so made are valid and binding in law, but do not take from the city, city and county, or town the right to regulate the rates for water, nor must any exclusive right be granted. No contract or grant must be made for a term exceeding fifty years. En. March 21, 1872.

Water rights: See sec. 1410 et seq., C. C.

Legislative History.

Section 3 of the water companies' act of 1852, page 171, is the basis of this section.

WATER CORPORATIONS, DUTIES, ETC.-RATES.

Sec. 549, C. C. All corporations formed to supply water to cities or towns must furnish pure fresh water to the inhabitants thereof, for family uses, so long as the supply permits, at reasonable rates and without distinction of persons, upon proper demand therefor; and must furnish water to the extent of their means, in case of fire or other great necessity, free of charge. The rates to be charged for water must be determined by commissioners, to be selected as follows: two by the city and county or city or town authorities, or, when there are no city or town authorities, by the board of supervisors of the county, and two by the water company; and in case a majority cannot agree to the valuation, the four commissioners must chose a fifth commissioner; if they cannot agree upon a fifth, then the county judge of the county must appoint such fifth person. The decision of the majority of the commissioners shall determine the rates to be charged for water for one year, and until new rates are established. The board of supervisors, or the proper city or town authorities, may prescribe proper rules relating to the delivery of water, not inconsistent with the laws of the state. En. March 21, 1872. Amd. 1873-74, 216.

, . Water rates: See art. XIV, Const., ante, and the following acts: Act approved March 26, 1880, page 16; act approved March 7, 1881, page 54; and act approved March 12, 1885, page 95, all found in the Appendix, under title “Water Companies."

Legislative History.

Section 4 of the water companies' act of 1858, page 219, is the basis of this section. The original section has not the words "or when there are no city or town authorities, by the board of supervisors of the county," and had the word “they" instead of the words "a nrajority.

Section Cited.

S. V. W. W. v. Bryant, 52 Cal. 134, 141.

Annotation.

Generally.-Held, prior to the code, a water company is a corporation for the purpose of engaging in any species of trad within the meaning of the corporation act of 1853. (Heyneman v. Blake, 19 (al. 579.)

Right of Eminent Domain.- A corporation organized under the laws of this state for the purpose of supplying the inhabitants of a town with water is authorized to exercise the right of eminent domain in hehalf of such use. (St. Helena Water Co. v. Forbes, 62 Cal. 182, 45 Am Rep. 659. To same effect: Lux v. Haggin, 69 Cal. 300, 10 Pac. 674.)

But statutory proceedings under eminent domain cannot be resorted to to obtain rights already acquired by another party. (S. F. Water Co. v. Alameda Water Co., 36 Cal. 639.)

In a proceeding to condemn land, instituted in 1862, by the plaintiff, a water company incorporated under the act of 1858, it was held that the procedure prescribed by sections 27-29 of the railroad act

Corporation Laws—26

of 1853, should be followed, and not those of the act of 1861-that those sections are substantially incorporated in the water company act of 1858, and remained a part of the latter, notwithstanding a repeal of the original act. (S. V. W. W. v. San Francisco, 22 Cal. 434.)

Supplying Water.- A water company is liable in an action for damages for breach of its contract to furnish water as agreed, where it is established that it completed its flumes and ditches to and beyond the point at which it agreed to deliver it, and that, in the exercise of reasonable diligence it could have delivered the water, and failed to do so. It is no defense that an injunction was pending preventing it from diverting sufficient water to supply its customers. (Sample v. Fresno Flume Company, 129 Cal. 222, 61 Pac. 1085.)

But a board of supervisors has no power, under section 1, article 14, of the Constitution, or the act of March 12, 1885, to fix the water rates of a corporation which acquires and holds water solely for the use of its stockholders, and not of the general public, and which does not rent, sell, or use its water in any way so as to accumulate a fund for payment of dividends. (McFadden v. Board of Supervisors, 74 Cal. 571, 16 Pac. 397.)

Generally, a water company is impressed with a public trust requiring the delivery of water, to those entitled to demand the same when sufficient for the demand. (Price v. Riverside L. & I. Co., 56 Cal. 431; S. V. W. W. v. Board of Supervisors, 61 Cal. 3; S. V. W. W. v. Board of Supervisors, 61 Cal. 18.)

Mandamus is the remedy to enforce this duty. (Price v. L. & L. Co., 56 Cal. 431.)

Where the act under which a water company is incorporated requires the company to supply water for municipal purposes “free of charge," a contract subsequently entered into with a city, proriding for a compensation, is void. (San Diego Water Co. v. San Diego, 59 Cal. 517.)

The power to charge tolls or rates for water is a franchise conferred upon corporations formed under general laws, and can be exercised only in manner provided for in those laws. (S. V. W. W. v. Bryant, 52 Cal. 132.)

RIGHT TO USE STREETS, WAYS, ALLEYS, AND ROADS.

Sec. 550, C. C. Any corporation created under the provisions of this part, for the purposes named in this title, subject to the reasonable direction of the board of supervisors, or city or town authorities, as to the mode and manner of using such right of way, may use so much of the streets, ways, and

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