Wood

This is an action by minority stockholders who are the appellants-against the Salt River Valley Water Users’ Association, appellee, a corporation organized in 1903 under the laws of the Territory of Arizona. The minority stockholders seek an injunction against a proposed issuance of bonds to the amount of $5,100,000, and a decree declaring indebtedness in excess of that authorized by the original articles of incorporation to be void and to enjoin enforcement of such obligations. Appellant’s contention is that the proposed bond issue and all previous is *10 sues in excess of $2,500,000 were in violation of the v charter of the corporation which limited the extent of its indebtedness to two-thirds of its capital stock. This provision of the charter was inserted in compliance with the law of the territory of Arizona which contained similar provision. The laws of the territory in force at the time of the incorporation of the appellee contain no reservation of power to alter or amend charters of corporations granted by the territory. Claim is made that any attempt to exceed the maximum amount of indebtedness permitted by the charter and by the laws of Arizona at the time of its…