Henshaw v. Salt River Valley Canal Co.

54 P. 577, 6 Ariz. 151, 1898 Ariz. LEXIS 122
CourtArizona Supreme Court
DecidedOctober 1, 1898
DocketCivil No. 587
StatusPublished
Cited by2 cases

This text of 54 P. 577 (Henshaw v. Salt River Valley Canal Co.) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henshaw v. Salt River Valley Canal Co., 54 P. 577, 6 Ariz. 151, 1898 Ariz. LEXIS 122 (Ark. 1898).

Opinion

SLOAN, J.

Plaintiffs brought this suit in the district court of Maricopa County upon the fourth day of May, 1895, to obtain relief in equity against certain wrongs alleged to have been committed by the defendant the Salt River Valley Canal Company, and by the defendants J. W. Evans, W. F. Fulwiler, and M. E. Hurley, as directors of said company. The complaint, as originally filed, was divided by the pleader into five causes of action.' Subsequently the complaint was [156]*156amended by the addition of another canse of action. These divisions were purely artificial, inasmuch as the matters alleged in the first so-called cause of action were made a part of the second, and the matters alleged in the second made a part of the third, and likewise each subsequent cause of action was made to include all matters previously incorporated in the foregoing causes of action. Disregarding, for the sake of convenience and brevity, these artificial divisions, and discarding unnecessary verbiage, the amended complaint contained the following averments:—

It was alleged that the defendant the Salt River Yalley Canal Company was duly incorporated on the sixth day of September, 1875; that the object of the incorporation was to carry on and conduct the business of supplying a portion of the Salt River Yalley, in the county of Maricopa, with water for irrigation and for milling, manufacturing, and mechanical purposes, and to this end, and for these purposes, to purchase, construct, and build or dig such canals, ditches, or flumes as may be necessary to convey water from Salt River, taking it from said river at a point at or near the head of the old ditch used by the Swilling Irrigating Canal Company, and conveying said water to such point or points in the above-described valley of the Salt River as may be necessary for the disposal or use of the said water; that the capital stock of said company, as fixed by the incorporators, was twenty thousand dollars, divided into forty shares of the par value of five hundred dollars each; that subsequently such capital stock was increased to twenty-five thousand dollars, and the shares divided into fifty, of the par value of five hundred dollars each. It was further alleged that the purpose of the incorporation was to divert by means of the company’s canal water previously appropriated by the shareholders at a time or times when they respectively were owners, occupants, or possessors of lands in said territory, and that the said corporation was also organized by said shareholders in order that they might more efficiently and economically avail themselves of their respective appropriations of water-and protect their respective interests and rights which they had severally acquired in relation to the use of water for the necessary cultivation and irrigation of lands along the Salt River which they or their predecessors or grantors -had acquired, owned, occu[157]*157pied, or possessed for the purposes aforesaid. Plaintiffs further alleged that the rights in and to said water and the use thereof so acquired by plaintiffs, their grantors and predecessors in interest, have ever since been vested in, and are now vested in, said respective shareholders in said canal company; that the property acquired by said corporation at its formation were the structures constituting the Salt River Valley Canal dam, Salt River Valley Canal, its appliances appurtenant thereto, and other property and effects of said corporation used in maintaining and operating said canal; that the said rights, respectively, of the shareholders of, in, and to the waters of Salt River have never rightfully or lawfully become the property of said corporation; that the powers of said corporation, its directors and its officers, were and are limited in relation to pecuniary charges or assessments upon the several shareholders of said corporation for the purposes only of maintaining, constructing, and operating said canal and appurtenant ditches so as to duly divert and convey the waters aforesaid to the lands aforesaid of the-shareholders of said corporation. It is further alleged that at the time of the construction of the Salt River Valley Canal, and at the time of the organization of the company, the carrying capacity of said canal was about 6,670 inches of water; that this amount had been duly appropriated by the shareholders at the time of the organization of the company, and said quantity of water was then needed by them, and has ever since been required by them for the necessary and proper cultivation of their arable and irrigable lands; and that the said shareholders each and every year since the incorporation of said company have been, and are now, entitled to divert by means of said canal from Salt River said amount of water, which amount has ever since been, and now is, necessary for the proper and necessary irrigation and cultivation of said lands. It was further averred that the defendants Evans, Fulwiler, and Hurley were the legally elected and acting directors of the corporation, constituting the board of directors thereof. Plaintiffs further alleged that a majority of the shareholders of said company for at least four years prior to the filing of the complaint had united in interest, and in their acts were adverse to and antagonistic to plaintiffs and others similarly situated, who during said period constituted the minority [158]*158shareholders of said corporation; that said majority shareholders elected officers and directors of the company from among them with the intent and purpose of violating the corporate rights of plaintiffs and other shareholders similarly situated; that the violation of said rights consisted in the continuous and wrongful taking and diversion of the water of the Salt River, which the plaintiffs and others similarly situated had duly appropriated and were rightfully entitled to have conducted and carried by the Salt River Valley Canal, and which they required for the cultivation and irrigation of their lands; that said majority shareholders and said officers and directors united in interest and in acts for the purpose of promoting and advancing the interests of an association known as'the Arizona Canal Company and the interests of a corporation known as the Arizona Improvement Company, in each of which said majority shareholders and said officers and directors are shareholders, and each of which is controlled and managed by said majority shareholders, said officers and directors. It was further averred that the Arizona Canal Company since in or about the year 1885 had wrongfully and unlawfully assumed and exercised corporate functions, and since said year continued to assume and exercise corporate functions in constructing, maintaining, and operating a canal in said county of Maricopa for the purpose of obtaining water from the Salt River, and that at the time of the construction of the said canal the directors of said association did not own or possess arable and irrigable lands which were cultivated with said water, or upon which the water conducted by said canal was used, or was required to be used, for irrigation.

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Related

Henshaw v. Salt River Valley Canal Co.
84 P. 908 (Arizona Supreme Court, 1906)
Pacific Live-Stock Co. v. Hanley
98 F. 327 (U.S. Circuit Court for the District of Oregon, 1899)

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Bluebook (online)
54 P. 577, 6 Ariz. 151, 1898 Ariz. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henshaw-v-salt-river-valley-canal-co-ariz-1898.