show that the Florence Canal Co. obtained an interest in the BradyChase ditch, it never gained control of the latter.

The Florence Canal Co. at a time just subsequent to its acquirement of the Florence Canal and franchise executed a mortgage lien on its canal and property, dated August 1, 1889, to the Farmers Loan & Trust Co., a corporation organized under the laws of the State of New York, to secure a bond issue in the sum of $300,000 with which to carry on the construction work. Of this amount, $125,000 was expended in the construction of the Piacacho Reservoir, while the balance was spent on the canal which was completed throughout the entire length originally proposed.

Foreclosure proceedings were instituted on the bond issue above mentioned, and a decree was rendered August 1, 1893, directing the sale of the canal and property to satisfy the plaintiffs in the sum of $379,746.64, being principal and interest secured by the mortgage aforesaid. Title to the property was perfected to the Casa Grande Valley Canal Co., December 19, 1894. The above-named corporation was organized April 16, 1894, by Oren B. Taft, Oren E. Taft, and Charles Hood.

When the Casa Grande Valley Canal Co. came into possession of the property it was by virtue of being the owners of the $300,000 of bonds issued by the Florence Canal Co., the new company being organized solely for the purpose of acquiring the property which these stockholders found themselves obliged to take under the foreclosure proceedings just mentioned.

Upon acquiring this property the stockholders, who were also the bondholders in pro rata shares, assessed themselves voluntarily $40,000 in cash, of which $8,000 was used in the expense of foreclosure and the remainder in the construction of about a mile and a half of new canal to replace a section of the original canal lying just below the point of diversion, this section having proved to be exceedingly faulty, rendering the canal almost useless at time of high water. That that expenditure of the last-mentioned sum ($32,000) was amply justified has been proven by five years of use of the canal since that time, the former difficulty having been entirely overcome. The canal was never cleaned of silt until the year 1900, and was not at that time carrying its full capacity.

On July 1, 1894, the Casa Grande Valley Canal Co. executed a mortgage lien on the canal and all property appurtenant thereto to the Mercantile Trust Co., of New York, to secure a bond issue in the sum of $600,000.

Of the $600,000 of bonds secured by this mortgage only $360,000 have been issued, $240,000 being left with the trustee for future issuance if necessary. The outstanding $360,000 of bonds represent to the stockholders an actual cash outlay of approximately $250,000. This latter sum includes $210,000, which was the amount paid for the $300,000 of Florence Canal Co. bonds at about 70 cents on the dollar, together with the $40,000 which was the amount of the assessment levied by the new stockholders to defray expenses of foreclosure and to reconstruct the upper portion of the canal.

The bondholders of the last company (Casa Grande Valley Canal Co.), were also prorata holders of its outstanding stock, amounting to $292,500, the balance of the stock, amounting to $707,500, never having been issued, remained in the hands of the company.

Owing to the excessive cost of maintenance resulting from the silt-laden waters and the insufficient gradient of the canal, this company was unable properly to maintain its ditch and was compelled to submit to a forced sale of its property for taxes.

This sale took place April 6, 1900, and on March 1, 1901, title was perfected in William English by A. F. Booker, treasurer and ex officio tax collector of Pinal County, Ariz. On May 15, 1901, grantee last mentioned quit claimed all right, title, and interest to Frances E. Taft, wife of Oren B. Taft, who in turn, together with her husband, on March 22, 1904, quit claimed all right, title, and interest in said canal to John W. Sharpe. When Mr. Sharpe became the owner of the canal and property he acquired the appropriations made by the Florence Canal Co. on April 4, 1888, amounting to 40,000 miner's inches in addition to the original rights of S. W. Foreman, who had appropriated 100,000 miner's inches. Subsequent to this time Sharpe acquired the right of Charles D. Reppy, who had appropriated 5,000 miner's inches, making in all a total of 145,000 miner's inches of water now vested in Sharpe.

On August 26, 1905, the Pinal Water Co. was organized for the purpose of taking over the interest of John W. Sharpe, who, as shown, acquired the rights and title to the Casa Grande Valley Canal Co.

The Pinal Water Co. was originally capitalized at $250,000, later increasing its capital to $1,000,000 by amended articles. On February 12, 1907, Mr. Sharpe transferred by quit-claim deed to the Pinal Water Co., the 5,000 miner's inches of water acquired from Charles D. Reppy, heretofore mentioned.

On and after March 23, 1907, certain complaints were filed against the Pinal Water Co., to which the Florence Canal Co., the Casa Grande Valley Canal Co., and John W. Sharpe were made party defendants, in which the plaintiffs in various cases asked for appointment of a receiver, some of which were denied by the court, while in the case of William J. Schulze against the same parties defendant, filed November 15, 1907, Albert C. Sieboth, Esq., was appointed receiver on amended motion December 15, 1907. Mr. Sieboth administered the affairs of the concern until the last few years, during which time various attachments were levied against the canal to satisfy labor claims, materials purchased, etc., and judgments rendered. Other difficulties existed between those owning water rights under the old Florence Canal, whereupon Mr. Sieboth was relieved, on motion, and R. L. Chamlee was appointed receiver of the Casa Grande Valley Canal Co. and the Pinal Water Co.

The receivers permitted the canal to continue in use with the result that more silt was deposited, the capacity of the canal thereby reduced, and much of the land allowed to return to its virgin state.

On March 13, 1909, John W. Sharpe et al, conveyed by means of a quitclaim deed to Charles R. Sligh (spelled Schley in records) the Florence Canal and the Picacho Reservoir.

The Florence Canal was again sold for taxes and pursuant to a judgment rendered on March 25, 1913, against the Casa Grande Canal Co., Pinal Water Co., Pinal Mutual Irrigation Co., John W. Sharpe and Charles R. Sligh, and according to the sheriff's certificate of sale dated May 23, 1913, title to the Florence Canal passed to one H. M. Fennemore. This last title was perfected by sheriff's

deed dated May 28, 1914, and shortly thereafter July 29, 1914, Mr. Fennemore conveyed by quitclaim deed all his rights and interest in the Florence Canal to the San Carlos Canal and Irrigation Co., a corporation. This company having the present tax title is now operating the canal, the last receiver, G. W. Smith by name, having been dismissed by an order of the court, dated October 23, 1914.

The Pinal Mutual Irrigation Co., mentioned as one of the defendants in the action, was incorporated in March, 1911, for the purpose of taking over on a cooperative plan, the old Florence canal system. The incorporators of this company are a portion of the original contract holders and owners of land under the old canal who desired to acquire possession of the canal, or otherwise to be in a position to operate the canal on a mutual basis.

It appears also that the Pinal Mutual Irrigating Co. had an option on all rights or interests of Charles R. Sligh, and that this option was obtained prior to the last tax sale referred to above.

Mr. Thomas Weeden, present Register of the Land Office at Phoenix, in the Arizona Blade-Times, November 1, 1913, has written as follows:

The Pinal Mutual Irrigation Co. also has an option on all the Charles R. Sligh and the Clark estate rights and interest in and to the Casa Grande Valley Canal Co., said interests representing 80 per cent of the stock and bonds of the said Casa Grande Valley Canal Co. Before the Casa Grande Canal Co. went into the hands of the present receiver, John W. Sharpe had purchased a majority of the stock and bonds of the company and he subsequently sold these stocks and bonds to Sligh and Clark and they increased their holdings to 80 per cent of said bonds and stocks. Under this option, above referred to, Charles R. Sligh and the administrator of the Clark estate became stockholders in the Pinal Mutual Irrigation Co. upon the same terms and conditions as do all other stockholders of the company. That is, they take one share of stock for each acre of land they sign up under the system.

By virtue of a quitclaim granted by E. W. Coker and others and dated April 12, 1911, the Pinal Mutual Irrigation Co. came into possession of a certain water-right appropriation, dam site, and canal location, made on March 22, 1911.

This company spent considerable money in surveys, reports, and some heavy "rock cut" construction work on the canal of their proposed project, which had for its object the building of a new canal closely paralleling the Florence Canal and a permanent diversion in the Gila River. An able report on this project was made by the late Mr. J. D. Schuyler in 1911.

Referring again to the Florence Canal, shortly after this sheriff's sale, several of the landowners under this canal who held contracts from the original company petitioned the supreme court to allow the receiver to issue receiver's certificates, these certificates to represent a first lien on the canal and reservoir. This petition was granted and the certificates were issued to the amount of $5 per acre to the landowners under the canal who would spend that amount per acre toward the rehabilitation of the canal. Under this order, a number of landowners got together and cleaned out approximately 15 miles of the old canal, expending about $8,000 in this work and bringing possibly 2,000 acres of land back under cultivation. After this expenditure, the landowners brought suit to foreclose on the lien. The defendants to this action were the Casa Grande Valley Co., Pinal Water Co., H. M. Fennemore, Chas. R. Sligh, and any and all persons

claiming any right or title to the canal. It appears, however, that no further action in this suit has been taken, but other landowners, realizing the benefit derived by their neighbors, decided to continue the work of maintenance in order to make the canal more serviceable. These people claimed to be carrying on this work under the statutes of the State of Arizona, which provide that when the proprietors of a ditch fail to supply water for irrigation the landowners may take possession of the canal and do the necessary work, assessing themselves therefor, and that the work thus performed will stand as a lien against the ditch and may be collected as any other lien, through foreclosure proceedings.

Maintenance work of this nature was going on at the time of this investigation, although, as a matter of information, it appears that Mr. Fennemore served notice on the laborers to desist in the work of widening the canal, but that this notice was not heeded by the landowners.

The Florence Canal at the time of this survey was being used to irrigate 3,531.5 acres, and the survey also showed that there are 10,998 acres of previously irrigated land under the canal, while the maximum area irrigated at one time as found in the analysis of irrigation in this district was approximately 7,000 acres.

Ah Lee ditch (north side)-The Ah Lee ditch was constructed in 1912 and for the past two or three years has been operated by a Chinese gardener, after whom the ditch takes its name.

The Ah Lee ditch is only about 1 mile long, has a bottom width of 2.5 feet, top width of 5 feet, and water depth of 0.8 foot. The land cultivated by Ah Lee was undoubtedly formerly irrigated by the Moore and Arthur at a time when this latter ditch was in operation.

At the time of this survey no land was actually being irrigated, as the ditch heading had been washed out and a pumping plant was being installed.

While the Ah Lee ditch will be used in connection with the pumping plant it is not likely that a diversion from the river will be again attempted.

This survey showed that the garden tract under this ditch contained 10.3 acres.

McLellan (north side).-The original appropriation for this ditch called for sufficient water to irigate 480 acres of land, or three quarter-sections, and in the adjudication suit of 1896 (Brady et al. v. Florence Canal) Mr. McLellan claimed there were about 400 acres actually irrigated from this ditch.

This canal was constructed by Canterio Yescas in 1871 and so far as known it has been in continuous use since that year. In 1881 this ditch carried sufficient water to irrigate 400 acres of land.

At the time of the construction of the Florence Canal, McLellan claimed to have had in cultivation under this ditch 400 acres, about 100 acres of which was in alfalfa and 30 acres in orchards, one-half acre in vineyard, and balance of land in grain. Yescas had in addition two acres of alfalfa and a few peach trees. Shortage of water which resulted from the Florence Canal diversion made it necessary for these ranchers to confine their crops to grain alone, and it is claimed that yield of grain decreased to about one-half what it had formerly been.

The irrigated lands lay on what are known as the upper and lower benches, but subsequent to the flood of 1891 the land on the lower bench was no longer irrigated. This lowland was at one time called Parson's Valley.

In 1891 a portion of this ditch washed out, but it was immediately rebuilt on the former alignment. The first irrigation from this ditch took place in 1872. In the report of the board of supervisors of Pinal County, dated 1889, it is stated that the McLellan ditch was three miles long and irrigated some 300 acres.

J. J. Fraser and W. G. Knight, present owners of the McLellan Canal, claim that some 40 acres were irrigated in 1871, and in 1872 there were 280 additional acres put under irrigation, making a total of 320 acres which has been irrigated to the present time. This land lies in secs. 16 and 17, T. 4 S., R. 10 E.

At the time of the survey in 1914 the area under cultivation was found to be 1,901 acres and in addition 12.2 acres showed evidence of former cultivation. An additional 29.2 acres were found to be under fence, but showed no evidence of previous culture.

Old Timers Canal (south side).-Because of the failure of the Florence Canal to furnish water to many of the landowners in the vicinity of Florence, some of these landowners organized the Farmers Ditch Co., a mutual concern incorporated with a capital stock of $50,000 consisting of 5,000 shares. In 1909 this company commenced the construction of a ditch known as the Old Timers Canal which was completed during the following year. This ditch takes out of the river at a point somewhat lower than the Florence Canal, but it runs nearly parallel to the latter and covers much of the territory south of the river which was under irrigation prior to the construction of the Florence Canal. On May 10, 1911, the Farmers Ditch Co. deeded to the Old Timers Canal Co. all of their rights and interests in the Farmers Ditch of which the latter company is the present owner. The Old Timers Canal Co. is capitalized for $44,000 represented by 2,200 shares. Up to the present time 1,968 shares have been issued and are held by 233 different land owners under the canal.

Next to the Florence Canal the Old Timers ditch irrigates the greatest area in the Florence district. It is a well constructed ditch, has a permanent headgate and is well maintained.

This survey showed that during 1914, 1,938.8 acres were under cultivation under this ditch and an additional area of 180.9 acres exhibiting evidences of previous culture.

The Old Timers Canal now serves to irrigate lands that were originally irrigated by the older canals. When this irrigation is credited to the Old Timers Canal as has been done in the irrigation analysis, which is included in this report, this canal possesses a very early priority.

Chino or Brady and Chase ditch (south side).-The ditch now known as the Chino was originally known as the Chase, then as the Brady and Chase, later as the Ruggles, and still later as the Kellner. Its present name has been given it for the reason that several Chinamen have recently been farming under it.

This ditch was constructed in 1867 or 1868, and at the time of the construction of the Florence Canal in 1887 it served to irrigate approximately 200 acres.