McFadden v. Board of Supervisors
Before: Thornton
Synopsis
Appeal from a judgment of the Superior Court of Los Angeles County, and from an order refusing a new trial.
The proceeding was brought for a writ of mandate to compel the defendant to fix the water rates to be charged by the Anaheim Union Water Company. The plaintiff's demurrer to the defendant’s answer was sustained, and after trial, judgment was rendered in favor of the plaintiffs. The defendant moved for a new trial, which was denied. The further facts are stated in the opinion of the court.
Thornton, J. Petition for writ of mandate.
The answer in this case sets forth that the Anaheim Union Water Company is a corporation formed under the laws of this state on the 29th of January, 1884, for the purpose of supplying water for hydraulic, irrigating, and domestic use to the owners and occupants of a district of twelve thousand acres of land situated in Los Angeles County, and contained within certain limits which are set forth in the articles of incorporation.
It further sets forth that the corporation above named duly adopted by-laws, which by-laws, as well as the articles of incorporation, have been signed by the stockholders thereof, except one of the plaintiffs herein named John Wagner. These articles and by-laws are made part of the petition.
By the by-laws, the directors of the corporation are authorized to charge the stockholders such sums for the water as may cover the ordinary expenses of the company.
It further appears from the answer that the waters were acquired and held to be used on the lands of the stockholders, and not for sale, distribution, and rental,- or otherwise; and from the by-laws, that no water shall be sold or used for any purpose on lands not covered by stock of the company,—with a proviso allowing a stockholder to use water on other lands on certain conditions, —but the water is to be used by or sold to no one else but a stockholder.
The by-laws adopted in their scope and extent do not go beyond the power in the corporation to adopt them. In our view, they”are not inconsistent with the constitution or laws of this state.
We think the answer in the particulars above set forth shows that the water was acquired and held for the use of the stockholders of the corporation only, and [573]not for sale, distribution, or rental to the public generally. Nor is it intended that the water or the agencies used for its distribution was to be sold, or rented, or used in any way to accumulate a fund from which dividends were to de declared and paid.
Under these circumstances, we do not think that the provisions of the constitution (article 14, section 1) or of the act of March 12, 1885 (Stats. 1885, p. 95), authorized the board of supervisors to fix the rates at which the waters of a corporation like the one involved herein are to be sold, rented, or distributed.
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