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alleys in any town, city, or city and county, or any public road therein, as may be necessary for laying pipes for conducting water into any such town, city, or city and county, or through or into any part thereof. En. March 21, 1872.

See sec. 19, art. XI, Const., ante.

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Legislative History.

Section 5 of the water companies' act of 1858, page 220, is the basis of this section.


Sec. 551, C. C. Every water or canal corporation must construct and keep in good repair, at all times, for public use, across their canal, flume, or water pipe, all of the bridges that the board of supervisors of the county in which canal is situated may require, the bridges being on the lines of public highways and necessary for public uses in connection with such highways; and all waterworks must be so laid and constructed as not to obstruct public highways. En. March 21, 1872.

See the earlier acts upon canal and ditch corporations: Act May 14, 1862, Stats. 1862, 541; and the subsequent act, April 2, 1870, Stats. 1870, 660. See, also, Statutes at Large, title “Water Commissioners."

Act March 30, 1872, relative to formation of canal and ditch corporations, Stats. 1871-72, p. 733.


Legislative History.

Section 4 of the canal act of 1862, page 541, is the basis of this section.

Section Cited.

County of Fresno v. Canal Co., 68 Cal. 359, 9 Pac. 309; Fresno v. Fresno C. & I. Co., 98 Cal. 183, 32 Pac. 943.


Construction of Bridges. This section has not been repealed section 2737 of the Political Code, as amended in 1883 (Stats. 1883, p. 17), authorizing the road overseer to construct bridges across all ditches that intersect public highways, upon the neglect of the persons excavating the ditches so to do. Mandamus will lie to enforce this duty. (Fresno County v. Canal Co., 68 Cal. 359, 9 Pac. 309.

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Cited: Fresno v. Fresno etc. Co., 98 Cal. 183, 32 Pac. 943. Note citation: 37 Am. St. Rep. 319.)

Construction of Section.- This section is held to recognize ditches and canals as of public use, and regulate such use. (Fresno 5. Fresno C. & I. Co., 98 Cal. 183, 32 Pac. 943.)


Sec. 552, C. C. Whenever any corporation, organized under the laws of this state, furnishes water to irrigate lands which said corporation has sold, the right to the flow and use of said water is and shall remain a perpetual easement to the land so sold, at such rates and terms as may be established by said corporation in pursuance of law. And whenever any person who is cultivating land, on the line and within the flow of any ditch owned by such corporation, has been furnished water by it, with which to irrigate his land, such person shall be entitled to the continued use of said water, upon the same terms as those who have purchased their land of the corporation. En. Stats. 1875-76, 77.

Act regulating sale, rental, and distribution of appropriated water: See post, Statutes at Large, title “Water Companies.”'

Irrigation, statutes relating to: See Statutes at Large, title “Irrigation.”

Section Cited

Price v. Riverside L. & I. Co., 56 Cal. 440, 441, in concurring opinion of Myrick, J.; Dorris v. Sullivan, 90 Cal. 286, 27 Pac. 216; Merrill v. Southside Irrigation Co., 112 Cal. 434, 435, 44 Pac. 720; Fresno Canal Co. v. Park, 129 Cal. 448, 62 Pac. 87; Crow v. San Joaquin etc. Irr. Co., 130 Cal. 313, 62 Pac. 562, 1058.


Construction of Section-Priority.-In his concurring opinion, My. rick, J., classified those entitled to be furnished water as follows:

1. Persons who purchase lands from the corporation; and are furnished water by the company for the irrigation of such lands.

2. Persons who own lands within the flow of the ditches, and were furnished by the corporation with water for irrigating such lands.

3. All other persons applying upon the terms and at the rates which are or may be established by law.

By the terms of the section, all persons purchasing land of the corporation are to have the right to be supplied with water; and it

remains a perpetual easement to the land. (Price v. Riverside L. & I. Co., 56 Cal. 440.)

Under this section it is not only the duty of an irrigation company to continue the supply of water to lands that it has sold, but it is also its duty to continue to furnish water to those within the fiow, and along the line of the ditches, who are cultivating land which has been furnished with water for irrigation at such rates and terms as may be established by the corporation. (Merrill v. Southside Irr. Co., 112 Cal. 426, 44 Pac. 720.)

The act of March 12, 1885 (Stats. 1885, p. 95), does not destroy the right of contract between irrigation companies and the owners of the land. It merely allows the supervisors to fix maximum rates, and the power of contract within such rates is preserved. Until such rates are fixed, persons selling water are allowed to charge and collect their established and customary rates. (Fresno Canal Co. v. Park, 129 Cal. 437, 62 Pac. 87.)

The refusal of an irrigation company to supply water for irrigation purposes cannot be excused on the grounds that the rates for a previous year are unpaid. (Crow v. San Joaquin etc. Co., 130 Cal. 319, 62 Pac. 562, 1058.)

Easement to the Land.- By the terms of the section, all persons purchasing lands of the corporation have the right to be supplied with water, and it remains a perpetual easement to the land. (Price v. Riverside L. & I. Co., 56 Cal. 440.)

Where a right of way for a ditch is granted on verbal agreement that grantor shall have the use of certain quantity of water to be taken from the ditch and used perpetually, the agreement is within the statute of frauds, and cannot create a servitude or easement upon the ditch property, or constitute an irrevocable license, or justify the diversion of the water. (Dorris v. Sullivan, 90 Cal. 279, 27 Pac. 216.)



§ 557. Time of corporate existence. § 558. By-laws must specify time for, and amount of payment of, in

stallments, and penalty for failure to pay-By-laws to

be furnished to any member on demand. $ 559. Advertisement and sale of delinquent and forfeited shares. $ 560. May borrow and loan funds-How, and for what time. $ 561. Minor children, wards, and married women may own stock. § 562. Forfeiture for speculating in or owning lands exceeding two

hundred thousand dollars. $ 563. When corporation is terminated, and how. § 564. Payment of premiums. $ 565. Annual report to be published. § 566. Publication in certain cases.


Sec. 557, C. C. Corporations organized for the purpose of acquiring lands in large tracts, paying off encumbrances thereon, improving and subdividing them into homestead lots or parcels, and distributing them among the shareholders, and for the accumulation of a fund for such purposes, are known as homestead corporations, and must not have a corporate existence for a longer period than ten years. En. March 21, 1872.

Time of corporate existence: See post, Statutes at Large, title "Homesteads."

Legislative History.

Sections 1 and 3 of the homestead act of 1861, page 567, as amended 1866-67, page 539, are the basis of this section.


MENT OF INSTALLMENTS, AND PENALTY FOR FAILURE TO PAY-BY-LAWS TO BE FURNISHED TO ANY MEMBER ON DEMAND. Sec. 558, C. C. Such corporations must specify in their by-laws the times when the installments of the capital stock are payable, the amount thereof, and the fines, penalties, or forfeitures incurred in case of default. A printed copy of the articles of incorporation and by-laws must be furnished to any shareholder on demand. En. March 21, 1872.

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FEITED SHARES. Sec. 559, C. C. Whenever any shares of stock are declared forfeited, by resolution of the board of directors, the directors may advertise the same for sale, giving the name of the subscriber and the number of shares, by notice of not less than three weeks, published at least once a week in a newspaper of general circulation in the city, town, or county where the principal place of business of such corporation is located. Such sale must be made at auction, under the direction of the secretary of the company. The corporation may be a bidder, and the shares must be disposed of to the highest bidder for cash. No defect, informality, or irregularity in the proceedings respecting the sale invalidates it, if notice is given as herein provided. After the sale is made the secretary must, on receipt of the purchase money, transfer to the purchaser the shares sold, and after deducting from the proceeds of such sale all installments then due, and all expenses and charges of sale, must hold the residue subject to the order of the delinquent subscriber. En. March 21, 1872.

Legislative History.

Section 4 of the homestead act of 1861, page 567, as amended 186364, page 492, and section 2 of the amendatory act of 1867-68, page 540, are the basis of this section.


TIME. Sec. 560, C. C. Homestead corporations may borrow money for the purposes of the corporation, not exceeding at any one time one-fourth of the aggregate amount of the shares or parts of shares actually paid in, and the income thereof; no greater rate of interest must be paid therefor than twelve per cent

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