Oscarson

The controversy in suit is over one of three water rights claimed by appellees for the irrigation of a large body of farm lands in Montana of whieh, admittedly, they are the owners. The lands, aggregating more than 10,000 acres, were acquired prior to 1900 by the appellee Norton and the deceased husband of the appellee, Lyons, as partners, and came to be known as the Norton and Lyons ranch. For their irrigation the owners, at divers times between 1887 and 1893, made appropriations from Lebó creek, which in its course runs through the ranch, amounting to 1,020 inches, and in 1902 another appropriation of 5,000 inches from American Fork. The water under this latter appropriation was by means of a ditch carried to and discharged into Lebo creek and from Lebo creek to the lands, commingled with the Lebo creek water. Concerning the rights thus acquired there is no controversy, it being conceded that appellees own them.

The pertinent facts relating to the origin and history of the right in question are as follows: In 1906 a corporation named the Lake Lebo Irrigation Company, with a capital stock of 1,000 shares, owned a nearby reservoir site known as Lake Lebo — a mere basin naturally…