Applicant has not yet made final arrangements for the building of its new boat, or for the construction of additional facilities, and any order in this application must of necessity be based upon the filing of additional data as to these expenditures.

Applicant was incorporated March 27, 1915, under the laws of the State of California with an authorized capitalization of $100,000.00 divided into 1,000 shares of the par value of $100.00 per share. By the terms of this Commission's Decision No. 2624, applicant was authorized to issue 250 shares of stock for organization expenses and to defray the cost of constructing docks, wharves, etc.

At the hearing of the present application, the company submitted a balance sheet, which shows its condition as of August 1, 1915, as follows:

Applicant has also submitted an income account for the three months ending July 31, 1915, as follows:

Applicant has made no arrangements for the sale of the stock herein applied for, but states that it expects to sell the same at par to present stockholders.

After consideration of the evidence submitted by applicant, I am of the opinion that this application should be granted and I accordingly submit the following form of order:

ORDER.

Richmond and San Rafael Ferry and Transportation Company having applied to this Commission for authority to issue 750 shares of stock

of the par value of $100.00 per share for the purposes set forth in the opinion which precedes this order; and it appearing to this Commission that applicant's request is reasonable and should be granted and that the purposes for which it is proposed to issue said stock are not reasonably chargeable to operating expenses or to income,

It is hereby ordered that Richmond and San Rafael Ferry and Transportation Company be, and it is hereby, authorized to issue 750 shares of its capital stock of the par value of $100.00 per share for the purpose of defraying the cost of constructing a new ferryboat and to provide for such increased facilities as may be made necessary by the operation of said boat.

The order herein is granted upon the following conditions and not otherwise:

1. Before issuing any of the stock herein authorized, applicant shall file with this Commission a detailed statement as to the cost of the new boat which it proposes to build, and such other additions and betterments to its property as it proposes to pay for out of the proceeds of the stock herein authorized, and shall secure from this Commission a supplemental order approving the same.

2. The stock herein authorized shall be issued by applicant at not less than its par value of $100.00 per share.

3. Richmond and San Rafael Ferry and Transportation Company shall keep separate, true and accurate accounts showing the receipt and application in detail of the proceeds of the sale of the stock herein. authorized to be issued; and on or before the twenty-fifth day of each month the company shall make verified reports to the Commission, stating the sale or sales of said stock during the preceding month, the terms and conditions of the sale, the moneys realized therefrom, and the use and application of such moneys, all in accordance with this Commission's General Order No. 24, which in so far as possible, is made a part of this order.

4. The authority herein granted Richmond and San Rafael Ferry and Transportation Company to issue stock shall apply only to such stock as shall have been issued on or before August 31, 1916.

The foregoing opinion and order are hereby approved and ordered filed as the opinion and order of the Railroad Commission of the State of California.

Dated at San Francisco, California, this 4th day of September, 1915.

Decision No. 2741, grade crossing; not printed. See end of volume.

DECISION NO. 2742.

LOS MOLINOS CITRUS FARMS COMPANY, LYON CATTLE COMPANY, THE SUNSET SYNDICATE

vs.

CONELAND WATER COMPANY.

Case No. 612.

IN THE MATTER OF THE RATES AND CHARGES OF CONELAND WATER COMPANY, ON THE RAILROAD COMMISSION'S OWN MOTION.

Case No. 671.

Decided September 4, 1915.

Complainant, The Sunset Syndicate, entered into a contract with defendant water company under which it was to obtain 500 inches of water to be used on certain lands, portions of which it has transferred to Los Molinos Citrus Farms Company and Lyon Cattle Company. That together with other considerations The Sunset Syndicate was to pay defendant $12,500.00 for such rights to water, together with $2.00 per year per acre as rental. Complainants now protest defendant's right to charge $12,500.00 for water rights, contending that it has delivered water to other consumers without a charge for a water right, and accordingly such a charge is discriminatory and unjust. Defendant, in its answer, contends that it is not a public utility, and also that the sum of $12,500.00 was in the nature of a consideration for entering into such agreement and not a charge for a water right.

Held, After a review of conditions under which defendant operates, that it is a utility subject to this Commission's jurisdiction. That public service corporations can not dodge their liability as public utilities by requiring consumers to enter into contracts before rendering service. That the lands of complainants lie within the district to which defendant's water is dedicated and they are accordingly entitled to be supplied therewith. That the terms and conditions under which water was to be delivered to complainants are just and reasonable with the exception of the additional charge of $12,500.00 and defendant directed to deliver water to the lands of complainants as heretofore by contract provided, excepting from such contract the provision requiring the payment of $12,500.00 in consideration for such service. Complaint in all other respects dismissed. Allen L. Chickering, for Complainants, in Case No. 612. Harrison & Harrison, for Coneland Water Company.

REPORT OF THE COMMISSION.

THELEN, Commissioner.

The above entitled proceedings were consolidated for hearing and decision.

The complaint in Case No. 612 alleges, in effect, that complainants and defendant are California corporations; that defendant is a public utility

supplying water to the land of Los Molinos Land Company and to such portions thereof as have been sold by said Los Molinos Land Company and to the land of other individuals and corporations in the vicinity of the land of Los Molinos Land Company in Tehama County; that on or about February 23, 1912, Los Molinos Land Company, Coneland Water Company and The Sunset Syndicate entered into an agreement in writing, a copy of which is attached to the complaint and marked "Exhibit A;" that by said agreement there was granted to The Sunset Syndicate the right to take from the canals of Coneland Water Company 500 miner's inches of water in return for the payment by The Sunset Syndicate of certain considerations specified in the agreement; that by a water right agreement executed by Coneland Water Company, the land upon which said 500 miner's inches of water was to be located was thereafter specified and that by agreement of February 18, 1914, certain of the land covered by said water right agreement was withdrawn and other land substituted therefor; that of the 500 miner's inches hereinbefore referred to, 400 inches were intended to compensate The Sunset Syndicate for the water rights and rights of way granted by it to Coneland Water Company and for the cost of the construction of the "High Line Canal" which was to be constructed by The Sunset Syndicate and conveyed to Coneland Water Company, and that the cost of the remaining 100 inches of water was intended to be met by the payment of the sum of $12,500.00, or $125.00 per inch; that on January 17, 1913, Coneland Water Company conveyed to The Sunset Syndicate for the benefit of parties to whom the syndicate had sold 420 acres of land the right to receive 72 miner's inches of water, without making any charge whatever for any so-called water right; that the lands to which Coneland Water Company is supplying water without any initial payment for a so-called "water right" are owned and occupied by E. E. Johnston, R. F. Johnston, J. W. Chastain, J. A. Ingram and Edward L. Wilhoit; that said agreement of February 23, 1912, has been executed only in part; that the payment of $12,500.00 therein referred to has not been made and is not as yet due; that the High Line Canal has been largely constructed and completed; that the complainants, Lyon Cattle Company and Los Molinos Citrus Farms Company, are the successors in interest of The Sunset Syndicate as to a portion of the lands in which said so-called water rights were located; that Coneland Water Company has discriminated in its charges for water rights; that the charges of Coneland Water Company for water rights are unreasonable and exorbitant, but that Coneland Water Company's annual charge of $2.00 per acre is reasonable; and that said High Line Canal to be constructed by The Sunset Syndicate is properly a capital expenditure to provide Coneland Water Company with a portion of its plant for the service of the public and was intended by Coneland Water Company for use in

supplying lands other than those owned and controlled by the complainants. Complainants ask that the Railroad Commission investigate the alleged discriminations in charges for water rights made by Coneland Water Company, and, on its own motion, if necessary, the reasonableness of the charges of Coneland Water Company for water rights and that said discrimination be ordered removed, and that Coneland Water Company be directed to establish reasonable rates for water rights or to omit the same.

The agreement of February 23, 1912, provides in part as follows: The land company and the water company convey to The Sunset Syndicate the right to take and receive for irrigation, from the water company's canal, 500 miner's inches of water, of which amount 375 miner's inches are to be conveyed to the head of the canal to be constructed by The Sunset Syndicate and there taken out, while the remaining 125 miner's inches are to be taken out of the main canal of the water company at the head of convenient lateral ditches. The Sunset Syndicate agrees as follows:

1. To commence within three years the construction of a "High Line Canal" to take water out of the water company's canal, which canal "is to be constructed in a good workmanlike and permanent manner by party of the second part and run upon a suitable grade from that point in a northerly direction for the irrigation of the lands of the party of the second part, or others lying under such canal." The canal is to be constructed of a capacity sufficient to convey not less than 400 inches of water within five years from the date of the agreement, and upon completion is to be turned over and delivered to the water company at the sole cost and expense of The Sunset Syndicate. The canal is to become the property of Coneland Water Company and is thereafter to be maintained and operated by said company.

2. To pay annually to the water company for the use of water upon the land of The Sunset Syndicate $2.00 per acre per annum, with a minimum annual charge of not less than $10.00 for any one subdivision of land, with certain provisions for increasing minimum charges year by year.

3. To convey to Los Molinos Land Company and Coneland Water Company sufficient rights of way for all their ditches constructed or to be constructed.

4. To convey to Los Molinos Land Company or its assigns, all riparian and other rights which have at any time belonged to The Sunset Syndicate appurtenant to any lands owned by it or in which it is interested, and to the waters of Big Antelope Creek, with the right to divert and appropriate all such waters, with certain reservations.

5. To pay to Coneland Water Company the sum of $12,500.00 at times specified.