Municipal Franchises: a Description of the Terms And Conditions Upon Which Private Corporations Enjoy Special Privileges in the Streets of American Cities

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It was expressly provided that the grant did not " embrace, to any extent, or have any reference to, the water works of said city used for the distribution of water for the purposes of irrigation, or affect in any manner any rights of irrigation, either existing at present, or which may exist hereafter, except as to the ten inches of water as hereinbefore provided". It was ex- pressly stipulated that the grantees should not furnish water for irrigation purposes and should take from the river on...ly such amount as was necessary for domestic 'uses.
Soon after this contract was entered into, the grantees organized the Los Angeles City Water Company, and in 1870 the legislature ratified the contract with the city.^ In 1879, as already stated in the preceding section, California adopted a new constitution, which provided that municipalities should have the right to regulate the water rates charged by private companies. In attempting to exercise this constitu- tonal right, the city overstepped the limitations of the original contract, which provided that the rates should not be reduced below those in force in 1868.


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