Smith v. Hallwood Irrigation Co.

Petitioners applied to the trial court for a writ of mandate to compel defendant to furnish water for irrigation of their lands. Judgment was rendered in favor of defendant and petitioners have appealed.

The defendant company was incorporated in February, 1910, with an authorized capital stock of 5,000 shares. Its purposes, as set forth in the articles of incorporation, were very broad and indicated an intention to supply water to the public generally, but it is admitted that at all times it conducted its business as a mutual water company, furnishing water to its stockholders only, and permitting them to apply the water” to all or any part of their lands as they saw fit, no steps being taken to make the water stock appurtenant to the land upon which the water was used. Prior to October 16, 1913, it issued 4,079 shares of its capital stock, of which 265 shares were issued to W. D. Smith, the grantor of plaintiff, who owned 550 acres of land under defendant’s canal; 250 shares thereof being issued to him October 25, 1910, and fifteen shares June 23, 1911. October 16, 1913, by amended articles of incorporation, the purposes of the company were limited to supplying water to its…