Tuolumne intersect said river; thence northwesterly along said county line to the south line of section twenty-two, in township number two south, in range number thirteen east; thence due west along said line and continuing in the same direction to the west line of township two south, in range ten east, to its intersection with said Stanislaus River; thence westerly down said Stanislaus River to its junction with the San Joaquin River; thence up said San Joaquin River to the point of beginning, is hereby created an irrigation district to be called the Modesto Irrigation District, for the purpose of providing for the irrigation of the land lying in said district, by means of a canal to be constructed from a point on the said Tuolumne River, or Stanislaus River, to be designated by the persons or corporation building the said canal, and running thence over the most practicable route through said district to the San Joaquin River. SEC. 2. At any time after the passage of this Act, any May incornumber of persons, not less than five, may incorporate under porate. the general incorporation laws of this State, for the purpose of providing for the irrigation of the lands of said district. SEC. 3. Whenever such corporation is formed, and not Bonds less than fifty thousand shares of the capital stock is actually issued subscribed for by the bona fide owners of land within said district, at not more than one share of such stock for each acre of land owned by the subscriber, and when such fact is made to appear to the Board of Supervisors of said County of Stanislaus, at any regular meeting thereof, then the Board of Supervisors of said county shall issue and deliver to said corporation bonds for the sum of twenty-five thousand dollars. Said bonds shall be payable in twenty years, in gold coin of the United States, and shall bear interest at the rate of not less than six nor more than eight per cent. per annum, which shall be payable semi-annually, on the first day of January and July of each year. The principal and interest shall be payable at the office of the County Treasurer of said county. Said bonds shall each be payable in the sum of two hundred and fifty dollars, and shall be signed by the President or Chairman of said Board, and the Clerk of said Board, who shall affix the seal of the County Clerk thereto, and they shall also be countersigned by the Treasurer of said county. They shall be numbered consecutively as issued, and bear date at the time of their issue. Coupons for the Coupons to interest shall be attached to each bond, signed by the Clerk be attached. of said Board of Supervisors. Said bonds shall express on their face that they are issued under the provisions of this Act, stating its title, and date of approval. The Clerk of said Board shall keep a record of the bonds so issued, their number and date. Said bonds shall be substantially in the following form: Two hundred and fifty dollars. State of California, County of Stanislaus. Modesto Irrigation District Bond. The County of Stanislaus, State of California, will pay to (naming the corporation), or its assigns, the sum of two hundred and fifty dollars, gold coin of the United States of America, within twenty years from the date hereof, with interest thereon, in like gold coin, at the rate of eight per cent. per Directors or Trustees to execute bond. Bonds to be issued after annum, payable half yearly, on the first day of January and SEC. 4. When it appears to said Board of Supervisors, at contract is any regular or special meeting called for that purpose, that entered into. the said corporation has faithfully and properly expended said twenty-five thousand dollars, in the construction of said canal, and that said corporation has duly entered into proper contracts for the entire construction of said canal, and that the final completion thereof by the contractors is sufficiently secured, then said Board of Supervisors shall issue and deliver to said corporation, bonds as hereinbefore provided, for each and every five miles of said canal, in a sufficient amount to pay for the same and acquiring complete irrigation works for said district; but the whole amount issued shall not exceed the actual cost of building the said canal, nor shall the aggregate amount issued, or to be issued, exceed the sum of five hundred thousand dollars; and provided, that none of said bonds shall be sold for less than ninety per cent. of their par value. Net revenue applied in payment of. SEC. 5. The rate of taxation shall not be increased on account of the issuance of said bonds, but the net revenue, including both State and county taxes, derived from the increased value of the land, owing to the irrigation works herein provided for, shall be applied exclusively to the payment of the interest and principal of said bonds, for the period of two years; and the faith of the State is hereby pledged to make such appropriation, for the purpose of pay ascertained. ing said bonds, for eighteen years more, unless said bonds are sooner paid. Unless said bonds are sooner paid, such Increased increased value shall be ascertained by taking the value of value; how the land as shown by the assessment roll of eighteen hundred and seventy-five, as its value without. The value of such land without the irrigation works herein provided for, shall be deemed to be its value as shown by the assessment roll of Stanislaus County, when placed in the Tax Collector's hand in eighteen hundred and seventy-five; and the difference between its value, as shown by such assessment roll, and its greater value as assessed in any subsequent year, shall be deemed its increased value for such year. more than value. SEC. 6. When it shall appear to the Board of Supervisors, Land assitting as a Board of Equalization as required by law, that sessed for any portion, piece, or parcel of land situate in said district increased is, or was, by the County Assessor, duly assessed for any greater sum or amount, owing to the increased value thereof by reason of the construction of said canal or the irrigation of any of the lands of said district, than the same piece, parcel, or tract of land was assessed for the year eighteen hundred and seventy-five, as shall appear from the assessment roll of the year eighteen hundred and seventy-five, then the said Board shall estimate the amount of taxes due or to become due on such increased value of such property, and the Clerk of said Board shall thereupon make a complete list of all such land, showing the amount of the increased value thereof over and above the assessment of eighteen hundred and seventy-five, and the amount of the taxes due or to become due on such increased value; which statement shall be signed by the Chairman of said Board and countersigned by said Clerk, who shall, within twenty days. thereafter, deliver the same to the Tax Collector of said county, and a certified copy thereof to the Treasurer of said county. The said Tax Collector shall, at the same time of the payment of the taxes on any of such land within said district, mark the same paid on said list. Irrigation SEC. 7. The County Treasurer and Tax Collector shall, at "Modesto the time of each monthly settlement between them, compare Bond Fund." said list, and the County Treasurer shall set apart the amount of such taxes, as shown by said list, as a separate fund, to be called the "Modesto Irrigation District Bond Fund," which fund shall only be used for the payment of said bonds and interest. SEC. 8. Upon the presentation of the coupons due to the Bonds said County Treasurer, he shall pay the same from said bond redeemed. fund. Whenever, after three years from the issue of any of said bonds, said bond fund shall amount to the sum of ten thousand dollars, the said County Treasurer shall pay such an amount of said bonds as the money in said fund will redeem, at the lowest value at which they may be offered for liquidation, after advertising for four weeks in some newspaper printed and published in the County of Stanislaus, and such other newspaper of general circulation in this State as he may deem advisable, for the purpose of giving such notice to the bondholders for sealed proposals for the County not liable for bonds. Rights and powers of redemption of said bonds; said proposals to be publicly opened by the Treasurer at the time named in the notice, and the lowest bid for said bonds shall be accepted; provided, that no bond shall be redeemed at a rate above par. In case the bids are equal, the lowest numbered bond shall have the preference. In case none of the holders of such bonds shall desire to have the same redeemed, the County Treasurer shall publish a notice in the same newspapers in which the notice for bids was published, and for the same period of time, to the effect that a sufficient quantity of said bonds, commencing at the lowest number unpaid, and giving the number of the bonds to be redeemed, will be paid upon presentation. If said bonds, or any of them, shall not be presented within thirty days after the expiration of the time of the publication of such notice, they shall from that time cease to draw any interest. SEC. 9. The said County of Stanislaus shall, in no event, become in any manner liable for either the principal or interest of said bonds, except as herein provided, nor beyond the extent of the revenue derived by reason of the increased value of the property in the district, for the period of twenty years. SEC. 10. The said corporation, its agents and representaCorporation. tives, shall have the right to enter upon any of the land in the district to make surveys, and may locate said canal, and the necessary branches of the same, on any of said land which may be deemed best for such location. It shall also have the right to acquire all lands, waters, and other property necessary for the construction, use, supply, maintenance, repair, and improvement of said canal and works, including canals and works constructed and being constructed, lands for reservoirs, branch canals, and other works necessary for the protection and accommodation of the same, and for ways for the discharge or use of surplus water, either by purchase or condemnation. In case of condemnation, the said corporation shall proceed, under the provisions of Title Seven, Part Three, of the Code of Civil Procedure. Who shall subscribe for shares. Surplus water. SEC. 11. The legal title of the property acquired under this Act, by said corporation, shall vest in said corporation, in trust for the shareholders. The Directors of said corporation shall permit no one to subscribe for any of such shares who is not a land owner within said district, nor for more than one share for each acre of land actually owned by him; and all stock issued contrary to this provision shall be void; and no disposition whatever of any of the waters of said canal shall be made until each and every stockholder is supplied with all the water necessary for the irrigation of his irrigable land. After the shareholders are supplied with a sufficient amount of water as aforesaid, and in case there is a surplus of water running in said canal, the said corporation may sell such surplus for such purpose, and for such price, as the Board of Directors may deem for the best interest of the shareholders, the proceeds thereof to be first applied to the payment of repairs and other necessary expenses of running and maintaining said canal. No tax or assessment shall at any time be levied upon the shares of said corporation, except for the payment of actual expenses of repairs, and running and maintaining said canal, and the raising of such sum, from time to time, as is necessary for the purpose of paying the indebtedness of said corporation, and not to exceed one dollar per share for each acre of irrigated land for grain, and one dollar and fifty cents per acre for other irrigating purposes, for any one year. subscribe land. SEC. 12. Every land owner within said district shall have Right to the right, at any time, to subscribe for and receive as many for shares. shares, without paying anything therefor, as he or she may have acres of land. Each land owner, in subscribing for owners to shares, shall describe, by legal subdivisions, the land which describe he owns; and all shares so subscribed for shall belong to said land as a hereditament and incident to it, and shall pass, with the conveyance of said land, as such hereditament and incident, whether named in the conveyance or not, and that said shares are subscribed for such lands, and he shall also be required to subscribe to a by-law of the corporation to that effect. what. SEC. 13. The certificates of shares issued shall describe Certificate upon their face, by legal subdivisions, the land for which to describe such shares are subscribed, and by whom it is subscribed, together with the number of acres in such land, and the number of shares named in the certificate shall be equal to the number of acres of land for which it is subscribed. SEC. 14. A duplicate of each certificate of shares so issued Certificate to shall be recorded in the Recorder's office of Stanislaus be recorded. County, in a book or books to be kept for such purpose, by the County Recorder. Such shares, after being subscribed for, shall be a hereditament and incident to the land for which it is subscribed. Said corporation shall have the Corporation; power to acquire and hold, by purchase or otherwise, as it powers of may be able, and as its Board of Directors may deem most beneficial for the corporation, all right of way, real estate, water rights, sites for reservoirs, dam, locks, and all other structures which said Board may find necessary or convenient for creating or otherwise obtaining a complete system of irrigation works for said district, and said bonds may be used for acquiring any and all such property. When such Corporation irrigation works are procured, said corporation may use or plus water. sell its surplus water for water power, or any other use to which it may be applied, and may make any other use of said works and canals which it may be able. Such use must not, however, interfere with, nor hinder, nor delay the use of such works for irrigation purposes. It is understood that the provisions of this Act shall in no manner apply to or affect any of the lands of said district not benefited by the construction of said canal, or the introduction of water into said district. SEC. 15. This Act shall take effect immediately. to sell sur CHAP. DXXVII.-[See volume of Amendments to the Codes.] |