Now, there are only two ways to do it: Fill your entire canal or put in checks-possibly you can do it by running the chance of breaking your canal banks and ditches, etc. But we very frequently have to carry down 2,000 or 3,000 second-feet of water additional and dump it into the Salton Sea in order to make deliveries

Mr. SINNOTT (interposing). Under what penalty do they make that demand?

Mr. ROSE. The penalty is that they go into our canals and put trees and other things in those canals, and put cables across them and tie trees to them, and endager the banks of those canals; and they bank up the water; and after they have done that, these trees will be turned down into our checks; and all sorts of annoyances of one kind or another. They have not fined us. But we have always tried to deliver the water as required.

The CHAIRMAN. Have you ever made any complaint to the Secretary of State in regard to those activities?

Mr. ROSE. We have made a complaint to the Secretary of State. The CHAIRMAN. What response did you get?

Mr. ROSE. They generally refer us back to the man down there, and we take it up with him, and he says, "Well, you must deliver the water."

Mr. SWING. The chairman means the American Secretary of State, I think.

The CHAIRMAN. Yes.

Mr. ROSE. Oh, the American Secretary of State?

Mr. SWING. Your Mexican charter prohibits the intervention of any foreign government, does it not?

Mr. ROSE. I was going to say that. Yes, it does. But nevertheless, we have gone over that. The charter under which we operate in Mexico provides that if we ever made any complaint to the Secretary of State of this country, which is transmitted to Mexico, it automatically forfeits the right to operate in Mexico. That is one of the provisions of the charter, which I will file with the committee later.

(The charter referred to is as follows:)

EXHIRIT A

Contract entered into between the citizens, General D. Manuel Gonzales Cosio, secretary of state and of development, in representation of the executive government, and Lic. Ignacio Sepulveda, as representative of the Sociedad de Irrigacion y Terrenos de la Baja California, S. A., to carry the waters of the Colorado River through Mexican Territory and for the use of said waters. ARTICLE 1. The Sociedad de Irrigacion y Terrenos de las Baja California, S. A.. is authorized to carry through the canal which it has built in Mexican territory, and through other canals that it may build, if convenient, water to an amount of two hundred and eighty-four cubic meters per second from the waters taken from the Colorado River and territory of the United States by the California Development Company and which waters this company has ceded to the Sociedad de Irrigacion y Terrenos de la Baja California, S. A. It is also authorized to carry to the lands of the United States the water with the exception of that mentioned in the following article:

ART. 2. From the water mentioned in the foregoing article, enough shall be used to irrigate the lands susceptible of irrigation in Lower California, with the water carried through the canal or canals, without in any case the amount of water used exceeding one-half of the volume of water passing through said canals.

ART. 3. Within the term of six months, counted from the publication of the present contract, the company shall deliver to the office of the secretary of development, in duplicate, properly arranged in decimal, metrical scale, the maps and profiles of the canal already built and of the other hydraulic works connected therewith, with a descriptive report.

ART. 4. The company is also authorized to connect in Mexican territory the aforesaid canal or canals with the Colorado River, so that it may be able, without injuring the rights of a third party nor the navigation, as long as the river is destined for navigation, to take from said river as much as two hundred and eighty-four cubic meters of water per second. Those waters shall be used in the irrigation of lands in Mexico and the United States in a proportion established in articles first and second.

ART. 5. The Executive Government may authorize the company, while the needs of the country do not require the use of the total amount of the waters appropriated, to use them where it may find it convenient.

ART. 6. The company, grantee, is under the obligation to deliver to the office of the secretary of development, within the term fixed in the following article, the design of the hydraulic works referred to in article fourth, with a descriptive report and the necessary maps and profiles for greater clearness of the details of the works.

ART. 7. The surveys of the land to locate the hydraulic works shall be begun by the company, grantee, within the term of six months from the date of the promulgation of the present contract, and within the term of twelve months, counted from the same date, it will deliver to the secretary of development the respective maps of said works in duplicate, and properly arranged in a decimal, metrical scale, with the approval of the inspector to be appointed, and requesting the approval of the secretary of development. The duplicate of the maps shall be returned to the company, grantee, with the annotation of having been approved or not, and the other copy shall remain in the archives of the office of the secretary.

ART. 8. Within the term of twenty-four months, counted from the date of the promulgation of this contract, the company, grantee, shall begin the construction of the works, which shall be ended at the latest within seven years, counted from the same date.

ART. 9. The company, grantee, may build, over the canals it may construct, the bridges it may think necessary for private traffic, presenting previously to the secretary of development for his approval, the maps, and the company shall be obliged also to build, at its own expense, the bridges which may be required for the local or general traffic. Whenever its canals shall traverse any road or highway of public use, presenting the respective maps, and requesting the previous approval of same. either from the Secretary of Interior and the government of the territory of Lower California, or from the secretary of communications and public works as the case may be.

ART. 10. The company, grantee, is subject, in all that refers to the present contract, to the inspection of the engineer to be appointed by the secretary of development, and obliged to contribute to the expense of said inspection with the sum of three hundred dollars every month, which amount shall be delivered in advance to the general treasury of the federation from the date of the promulgation of the contract.

In case that the company, grantee, shall not fulfill the provisions of the present article, it agrees with the right given the revenue collectors to seize and sell its property to pay the debts due to the treasury.

ART. 11. The company shall have the right of way of twenty meters in all the length of its canals on each side of said canals, besides the width of the said canals.

ART. 12. The lands belonging to the Nation and which the company, grantee, may occupy in all the extension as set forth in the foregoing articles, and the lands which it may need for dams, reservoirs, or basins, storehouses, deposits, and other buildings shall be taken freely by the company in accordance with the provisions of Paragraph III, article 3, of the law of the sixth of June, 1894. ART. 13. The company, grantee, may take in accordance with the laws of condemnation by reason of public utility, the private lands, needed for the establishment of its aqueducts and their appurtenances, depots, stations, and other accessories, in accordance with Fraction IV of article 3 of the law of June 6th, 1894, as per the following rules:

(1) If there shall be no agreement between the company, grantee, and the owners of the land, there will be appointed an expert appraiser by each one of

the parties, and both appraisers shall deliver to said parties their respective valuations within the term of eight days from the date of their appointment. If the valuations are not in accord, the case shall be submitted to the district judge of the territory of Lower California, and he shall appoint a third expert. who shall render his decision within the preemptory term of eight days from the date of his appointment of the amount which in justice should be given to indemnify the owner of the lands to be occupied. The district judge, taking into consideration the opinion of the experts, and the proofs presented by the parties, while the experts formulate their decisions, shall fix the amount of indemnity within three days. The decree of the judge shall be final, unless it shall appear to be biased.

(2) If the owner of the land to be occupied for public use for the construction of the aqueducts, depots, appurtenances, and accessories, should not appoint his expert appraiser within the term of eight days after so notifying by the district judge, at the request of the company, grantee, said judge shall officially appoint an appraiser to represent the interests of the owner.

(3) In all cases in which it be necessary to apply to the district judge, said official, if the company, grantee, would ask it, or if it would be impossible for it to specify the amount of land to be occupied, shall begin the case, and the judge, after having previously had an audience with the government engineer. or in the absence of this one, with the expert appointed by the same judge, shall name a sum to be deposited, while the case is tried, authorizing the company, grantee, meanwhile, to occupy the lands in question, with the understanding that if the final valuation of the experts should be more or less than the amount deposited by the company, grantee, the company to pay the balance or to receive the difference.

(4) If the owner of the lands in question should be unknown, or the ownership in dispute by reason of litigation or any other motive, the district judge shall fix, as the total of his indemnity the amount rendered by the expert appointed by said judge in representation of the rightful owners of the land in question. The amount ultimately fixed shall be deposited in accordance with the legal provisions to be delivered to whom it belongs.

(5) The experts, in making their valuations, must take into account the amount of taxes paid by the land to be condemned and the damaged and benefits to accrue by same to the owner.

(6) If, to carry out the surveys, it should be necessary to destroy or ent down, in all or in part, trees, cactus, or other obstacles, the company, grantee. shall have the right to do it, being under the obligation to pay an indemnity as soon as that be fixed.

ART. 14. The company, grantee, is authorized to build the telegraph and telephone lines as it may think necessary along the works, for the exclusive use of its enterprise, with the previous approval of the secretary of communications and public works, and also to exploit those already built in the exclusive use of its works; the Government having the right to place freely and without any payments, one or two telegraph wires on the posts of the line of the company, grantee, the company being subject to the laws and rulings now in force, or that in the future may be enacted, for the construction and exploitation of telegraph and telephone lines.

ART. 15. The company, grantee, may import, free of custom-house duties for once only all the engines, scientific instruments, and necessary apparatus for the outlines construction and exploitation of the works.

The company, grantee, shall present to the secretary of development statements in detail of the articles which in accordance with this concession, it shall have to import when needed, provided it be done within the stipulated terms, in the present contract for the installation and construction, specifying in said statements the number, quantity, and quality of the articles, observing for said importation the rules enacted and which in the future may be enacted by the Treasury Department, and also the limitations to be fixed by the secretary of development.

ART. 16. The articles needed shall be imported by the company, grantee. for the exclusive use of its works and its exploitations, but if it should sell or apply to any other uses any or some of said articles, the secretary of treasury shall enact the payment of the respective duties, besides the penalties fixed by law in cases of smuggling.

ART. 17. During ten years from the promulgation of this contract, the capital invested by the company, grantee, in the survey, construction and maintenance of the works referred to in this contract, shall be exempt from all

Federal taxes, with the exception of those to be paid in stamps, which taxes shall be paid in accordance with the said law.

ART. 18. The company, grantee, is at liberty to enter into contracts and agreements with individuals and private and public corporations for the use of the water granted to it, being subject in the prices to be charged to the tariff which with due opportunity shall be presented to the secretary of development for his examination and approval, the company, grantee, having the right, nevertheless, to use said waters in the irrigation of the lands belonging to it.

ART. 19. The company, grantee, shall lose the right to use the water granted to it in this contract in article fourth in case it does not use it for a period of ten consecutive years, the Government being at liberty to grant it to any other persons, who, if they should accept the works made by the company, grantee, shall have to pay to this comapny the amounts fixed by the appraisers appointed by both parties.

ART. 20. The company, grantee, may transfer all or part of the concessions in the present contract with the previous permit of the Secretary; also may mortgage it to individuals or private corporations; it being absolutely necessary in the first case that individuals or associations accept respectively all and each one of the obligations imposed to the company, grantee, by the present contract.

ABT. 21. The company, grantee, shall have the right to issue common shares, preferred shares, bonds and obligations, and dispose of them.

ART. 22. At no time nor by any reason can the company, grantee, sell or mortgage the concessions made in the present contract to any Government or foreign State, nor admit it in partnership, it being null and of no value nor effect whatever, any stipulation made to that end.

ART. 23. The company, grantee, shall have in this capital a representative fully authorized to treat with the Government in all that refers to the present contract.

ART. 24. The company, grantee, shall guarantee the obligations contracted in this contract, making a deposit in the National Bank of Mexico of ($10,000) ten thousand dollars in bonds of the consolidated public debt within eight days from the promulgation of the contract, and said deposit shall be returned to it when the hydraulic works referred to in this contract shall be finished.

ART. 25. This contract shall have no force if the deposit is not made within the term fixed in the foregoing article, and shall become extinct by the following reasons:

(1) For not beginning the works for the surveying and construction of the works and by not finishing the same in the term fixed in articles seventh and eighth.

(2) For not making use of the waters in the term of ten consecutive years. (3) By the transfer of this contract to an individual or corporation without the previous permit of the secretary of development.

(4) By the transfer or mortgage of this contract and the concessions herein contained to a Government or foreign state.

ART. 26. If the cancellation of this contract shall take place by the reasons set forth in paragraph one and two of the foregoing article, the company, grantee, shall lose the deposit made and the concessions and especial grants hereby made to it in this contract in article fourth and in those related to it, it being enforced only in what refers to article first.

In the case set forth in paragraph third, the company, grantee, shall lose the deposit and the concessions and especial grants made to it in this contract. If the cancellations should take place by the reasons expressed in paragraph four the company shall incur the loss of all its rights, estates, and properties of any kind related with this contract.

In all cases, and before the declaration of cancellation is made, the secretary of development will grant to the company, grantee, a reasonable term to make its defense.

ART. 27. The obligations agreed to by the company, grantee, in regard to the terms fixed in this contract shall be suspended in all cases of unexepected accident, or by force of the elements duly justified and which may stop directly and absolutely the fulfillment of such obligations. The suspension shall last only for the term that the causes exist, the company, grantee. being under the duty to give to the General Government the statements and proofs of the unexpected accident within the term of three months

from the time it took place, and by the sole reason of not presenting the proofs within the said term, it will be impossible for the company, grantee, to allege at any time the circumstance of unexpected accident or the force of the elements.

The company, grantee, shall also present to the Federal Government the statements and proofs that the works have been continued as soon as the cause has ceased to exist. The presentation of said statements to be made within two months following the other three above mentioned. The company, grantee, shall only be excused for the term during which the impediment existed, or at most two months more.

ART. 28: The Government shall give to the company, grantee, the material and moral help within its possibilities, when the company so requests it, to overcome the difficulties that may arise in carrying out the present contract. ART. 29: The company, grantee, shall be subject to the laws and rulings now in force and which in the future may be enacted for the supervision. use, and benefit of the water.

ART. 30: The company, grantee, and its company, assigns, shall always be considered as Mexican corporations, though all or any of its stockholders should be foreigners, and the corporations shall be subject to the jurisdiction of the courts of the Republic in all the affairs emanating and to be decided within the territory of the Republic.

They would never be able to allege in all the affairs in relation to the present contract the rights of foreigners under any circumstances, and they shall only have the rights and the way to establish the same as the laws of the Republic grant them to the Mexicans, and consequently in any of the said affairs the diplomatic foreign agents shall not have any interference. ART. 31 This contract shall be subject to the approval of both Houses. ART. 32: The stamps on this contract shall be paid by the company, grantee. Made in duplicate in the City of Mexico on the seventeenth day of the month of May, 1904.

CIA. DE TERRENOS Y AGUAS DE LA BAJA CALIF. S. A.,
Office of Secretary s8:

MANUEL G. COSIO.
Y. SEPULVEDA.

This is to certify that the foregoing is a full, true and correct copy of water concession from the Mexican Government, under date of May 17th, 1904. In witness whereof I have hereunto set my hand and the seal of said district, this 19th day of March, 1924.

[SEAL]

J. DON FOER,
Secretary.

Mr. SWING. Mr. Chairman, may I put in there the statement that when I was attorney for the company I did take it up with the Secretary of State; and the reply at that time was that the surest way of getting our request refused was to have the American Government express concern regarding it. That was the only answer I got.

Mr. ROSE. Did he not say, Mr. Swing, that the only advice he could give us was to get out of Mexico?

Mr. SWING. Several of the officials did say that.

Mr. HUDSPETH. That must have been Mr. Bryan. That was the reply he gave my people from El Paso.

Mr. ROSE. Now, in turning that additional water into New River. there are great quantities of silt which run into the Salton Sea: and that floods a good many acres of land; and we have a good many lawsuits about that; and we have built a dredge, in order to build a channel down there where we can run this water through and make deliveries when there is any particular call. I may say that we sometimes make deliveries that cost us $500, and that we get $2.00 for; and yet we are called on to make them.

On the American side it is different; the landowner must keep his canal graded; we establish a grading for that canal, and he can