North Side Canal Co. v. Idaho Farms Co.

Appellee, a Delaware corporation, sued in the federal court for Idaho to quiet its title to about 11,000 acres of land in what is known as the “North Side Project” in that state. This is a Carey Act project initiated under the act of August 18, 1894, 28 Stat. 372 , 422, as amended June 11, 1896, 29 Stat. 413 , 434, 43 U.S.C.A. § 641 et seq., providing for the donation to the states of desert lands, conditioned upon the states’ causing the lands to be reclaimed, occupied and cultivated by actual settlers.

Appellee is the successor of Twin Falls North Side Land & Water Company, a corporation organized in 1907 for the purpose of constructing the irrigation system and selling water rights in it. 2 Appellant, an Idaho corporation, is the operating company. It was organized pursuant to a contract between appellee’s predecessor and the State of Idaho for the purpose of taking over the system and operating it on behalf of the settlers. The lands in suit, with the appurtenant water rights and water stock, were acquired by appellee prior to 1928, in part by the process of foreclosure and in part by deed in lieu of foreclosure. The acquisition resulted from the failure of individual…