Redlands, Lugonia, & Crafton Domestic Water Co. v. City of Redlands

The plaintiff is engaged in furnishing water to the city of Redlands and its inhabitants for domestic purposes •and for irrigation, and seeks by this action a judgment annulling the ordinance or resolution adopted by the board of trustees •of that city, in February, 1895, fixing the rates to be charged or collected therefor during'the year commencing July 1, 1895, and requiring the board to fix rates therefor “so as to assure an -annual income to the plaintiff sufficient to pay the interest on its indebtedness, its running expenses, taxes, and to pay the •plaintiff’s stockholders a dividend of not less than seven per cent per annum upon the par value of said stock, and also sufficient to keep the works of said plaintiff used in business in repair.”

At the trial of the cause the court found that the plaintiff •had expended the sum of $314,000 in the acquisition of the plant used by it in so furnishing the water; that its capital stock is divided into five thousand shares of the par value of one hundred dollars each, of which two thousand two hundred and sixty shares have been subscribed, and the full amount of $226,000 paid to the plaintiff by the stockholders subscribing…