# Brief Amicus Curiae — Brush v. Commissioner > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386010_0145%3A10 ## Record - **Collection:** Supreme Court brief - **Document type:** Brief Amicus Curiae - **Published:** January 1, 1937 - **Citation:** 300 U.S. 352 ## Text oa - PEO EEN FEB 2 1997. —IN-THE | CHARLES ELMORE sal SUPREME COURT OF THE: UNITED STATES. October Term, 1936 No. 451 William Whitlock Brush, | Petitioner, US. Guy T. Helvering, Commissioner. of Internal Revenue, * Respondent. MOTION FOR LEAVE TO FILE BRIEF AS AMICUS CURIAE, NOTICE OF MOTION AND BRIEF. J James H. Howarp, 306 West Third St., Las Angeles, Cal., Counsel for Frank E.. Weymouth, lie Manager and Chief ° Engineer of The Metropolitan Water District of Southern Califorma, Amicus Curiae. CHARLES C.. CoopER; h.. Of Counsel. net atereeseascnaniatipemnsunsdtminiae EE im . 12 | 100 1 BS ll 91.7 22 . 91 20 90. Texas 159 20 12.6 139 37.4 20 14.4) 119 8 16 - - 16 100 3 18.3 1s Ble? 20 2 . 20 | 100 1 19 9% 47 1 2.1 46 97. Totals 324 60 15.4 274 | 06.5 45-172) 16.5 | 224-172 | 83.4 27 - . 27 100 6 18.5 22 81.5 42 és _ 42 | «100 8 19.2 34 80. 9 &e 6 6.7 8s 93. Mountain | Mottane 18 . - 18 10 4 22.2| 14 17.8 2 . - 2 100 1 50 1 60 4 25 4 | 100 . 60 2 50 6 a = 6 | 100 + Tdaho 21 2 9.5 19 | 90.5 4 21 15 79 - - - - . - - - - 2 2 “s 2 | 100 1 oo 1 80 5 - 7 5 | 100. Tyami ng 8 - > 8 | 100 3 37.5 6 62.5 - - - - - - - - . 2 . . 2 | 100 - - 2 100 3 - - 3 | 100 Colorado 27 1 3.7 26 | 9.3 . - 26 100 3 . - 3 100 - - 8 100 6 - - 6 | 100 - - 6 100 10 _ - 10 | 100 Ber Mexico 16 2 12.6 pt) 87.5 3 21.4 ll 73.6 1 - - 1, 100 - - 1 100 2 - * 2 100 a 50 1 50 4 * * 4 100 Aritons “ 2 14.5 12 | 6.7 2 16.7} 10 83.3 2 - - 2 100 - - 2 100 a 6 - . . " - 4 . 6 4 1 16.7 a 8s. Uteb 21 - . 2a | 100 1 4.8] 20 96.2 2 - 7 2 100 - - 2 100 1 - “4 1 | 100 ns “ 1 100 ‘ * 55 4 | 100 Beveada § 1 20 4) 3 1 - - - - - - - - . “1 - - 1_| 100 1 100 ~ - 1 : - 1_| 100 Totals 130 ~ 6.2 122 93.8 20 16.4| 12 63.6 10 - 7 10 100 1 10 2 90 17 . - 17_ | 100 § 29.4 12 70.6 39 1 2.6 38 97. ‘ “ Pacific . 80 4 4 | 100 Washington 38 2 6.3 3 (94.7 . 11.1 88.9 § - - 6 100 - - 8 100 10 = * 10 | 100 : 20 8 . - 28 - - 28 | 00 7-1/2] 26.8| 20-1f2 | 73.2 2 - - 2 100 1 60 1 50 ‘ - 2 4 | 100 1 26 5 % 9 2 ri 9 | 100 Californi« - o 156 16 74,3 21 o o 21 100 3 14.3 18 __ 87) 2e - - 28 100 8 10.7 08.3 48 - - 48 100 Totals 221 2 0.9 219 99.1 60-172] 23.1] 168-172 | 76.9 28 . - 28 | 100 4 14.3 24 86.7: “ si Sa oe Co) 8 . % “7 61 = = 61 00 1.5. Totals 5,169 402 | 12.7 2,767 | 87.8 6s3-1/2| 23.6 |2,18-1/2 | 76.4 $77 2 0.8 376 99.5| 78-1/2| 19.6 | soi-1/2| 84] 608 nl 1.8 697 | 982 | mb4-1/2| 25.9 | 442-1/2/ M1 | 1 bead 10.8 wo | &. TABULATION SHOWING WATHRVORKS OWNERSHIP BY PLACES OF 2,00 POPULATION AND OVER Arranged by States in Regional Divisions. (U.S. 1930 Census) ; p ; ; : for explanation of Method of Compilation and References as to Source Material, see notations following Table I-(B) TABLE 1-{4) 25,000 and Over 10,000 to 25,000 ‘ 6,000 to 10,000 2,800 te 6,000 ss Undgtern'ned | Tote) Detormined| Privately Owned | Mmicipally Owned | Total termined | Total Determined | Privately Owned | Minicipally Owned | Total ss Undetermined | Total Determined | Privately Owned | Muniel Owned | Total | Less Unietermined | Total Determined | Pri weet Mensetzayfy Onset Places ms Places ye Places a Places % Places Places ra Places % Places » s “> Places | Places % Places x Places Places + v 7 : : ; - - 3 100 - - 3 -100 6 1 16.7 6 83.8 2 40 3 60 9 3 33.3 6 | 66.7 2 33.3 _ 66.7 8 ‘ so @ ‘ 60 2 BO 2 60 - - 3 f 100 1 33.3 2 66.7 7 - ‘- 7 | 100 ‘ 14.8 6 8.7 4 - - _ 4 | 100 1 2 s % ‘ - - . @ | 100 2 ts 8 7% - - - - - - - - s - - S$ | 100 - - 3 100 aes Ce - 7 | 100 - > ? 100 ‘4 1 2% 8 7 - - 8 100 - - 30 100 ° - -- 30 100 43 ce - 43 | 100 4 9.8 39 90.7 39 11 28.2 28 1.8 2 3.6 27 96.4 10 8 60 6 60 - - 6 100 - - 7 100 2 28.6 5 71.4 7 1 14.3 6 84.7 2 33.38 4 66.7 4a - - 4 | 100 a % ‘3 % 1 - ‘- @e 100 2 100 - - ike = 12 100 5 41.7 7 58.3 12 - - 12__| 100 4 33.5 _8 66.7 re 1 20 4 80 2 60 2 60 ‘ 2 80 60 1 $0 3 - _ 58 100 8 14.4 47 %.6 | 78 2 2.6 16 97.4 1s 17.2 63 82.9 68 _ 78 7 [ist a |; oe 31 bh is | 6 6 3 |. +e - 23 100 -2 87 21 91.5] 47 - - 47 | 100% 9 19.1 38 0.9 41 5 12.2 36 87.8 mA/ 20.8 | 26-2 /| 19.2 * 21 | %T o ve.3 oe 18 | 62 nt “ - - 100 , 9 er s 65.4] 40 1 2.5 39 97.5 21 63.8 18 46.2 60 ) 12. a4 88 2 66.8 1s 45.2 63 7 17.0 _ ss 23 62.8 2 47.7 {7.4 92. 15 52.0 48.0 1 9.5 68 7 46, 67.6 22 32.4 105 21 20.4 82 79.6 6) 74.4 | 2) 25.8 2 $1 {8 38 oe 55 | ats i] $1.8 2 | 2&6 1% 97.4) 24 32.4 | 50 67.€ | 162 8 4.9 164 96.1 76 49.3 78 60.7 | 194 32 16.5 162 83.5 eid | 57.6 | Gel | 42.4 a ? 19 68 %0 “.9 - | - 26 100 2 7.7 24 92.3 33 1 3.0 32 97.0 4 12.5 28 87.6 51 6 9.8 46 90.2 8 17.4 88 2.6 “ 10 6.6 o4 4.4 6 11.2 4s * 88.9 - - ur 100 7 41.2 10 68-8] 17 - - 17 | 100 5 29.4 12 10.6 27 4 14.8 23 %.2 8 4.8 pT) 65.2 M 12, | 36.3 22- | 6.7 6 22.7 17 17.3 - - 2 100 6 25 1 7 4 - - 3% =| 100 18-1/2| 39.7 | *20-1/2| 60.3 66 17 12.6 49 87.5 10 20.4 39 79.6 78 21 26.9 67 73.3 6- 1L¢ SO-14| 66.6 - - 17 100 - - 17 100 23 - - 23° | 100 - > 23 100 32 6 18.7 26 81.3 - - 26 100 42 10 23.8 32 76.2 2 3.1 9.9 ao. - 13 100 1 7.7 12 92.2 14 - - 14__| 100 3 21.4 11 18-6 20 1 5 19 96 2 6.3 18 “7 hg 10 27.8 26 72.2 2 1.7 2 92.3 - - 97 100 16 16.5 al 83.5 | 121 1 0.8 120 99.2 25-172] 21.3 94-172 | 78.7 186 23 12.5 163 87.7 y? |e] i | @c | wy “ai | wt 2 Jae ¥ > > 7 : - - 3 100 - - 3 100 11 - - 11 | 100 - - ll 100 18 ‘- - 18 | 100 1 5.6 1? 4.4 a 12 29.3 2 70.7 - - 29 100 - - 10 100 3 30 7 70 11 - - 11 | 100 3 27.3 8 2.7 14 1 1.2 1s 92.9 3 23.1 10 78.9 46 ? 6.2 39 m8 | 4 10.3 3% oe.7 . - 6 100 3 50 3 50° 10 - - 10 | 100 4 40 6 60 ae 2 9.5 19 90.6 3 6.8 16 a.2 3 6 17.2 29 2.8 8 17.2 24 2.8 - - 1 | 100 - - 1 100 3 - - 3 | 100 - - 3 10 6 1 16-7 5 | 8.8 1 20 ‘ 8 2 - - .2 | 100 ‘: - 2 100 - - 1 100 - - 1 100 5 - - 6 | 100 - - 5 100 2 - - 2 | 100 2 60 2 $0 8 2 5) € 7% - - 6 100 - - 2 100 - - 2 100 6 - - 6 | 100 ¢ .. - 6 100 9 1 11.2 8. | 88.9 2 2% 6 7% 18 2 11.2 1s 83.9 1 6.8 u wh a - 4 100 2 50 2 50 16 - z 16 | 100 1 6.3 16 93.7 f 12 1 8.3 11 91.7 - - py 100 30 2 3.3 29 96.7 1 3.4 28 96.6 - - 27 100 8 29.6 ly 10.4 bz = = bz TOO i) 12.9 4 87.1 6 7.8 76 i] i M6 " bts} be) e pF 2) i ¥.5 pRS] va 4 4 , : - - 1 oo} - - 1 100 - - . - - - - . - - . - - - - - - - 4 2 50 2 |. 60 - - 2 100 - - 3 100 - - 3 100 3 - - 3 | 100 - - 3 100, 3 - - 3s | 100 2 33.3 2 66.7 12 2 as n 91.7 - - u 108 - - 1 lou o - 1 100 - - - - - - - - - — ~ - - - - 7 - e 7 - - - 7 - - 7 - - - 7 100 1 +] 14.3 6 86.7 9 - - 9 -{ 100° 2 m2 is * 17.8 >| 10 le 8 80 - - 8 100 wv 6 26.3 4 73.7 2 14.3 PY 3 &.7 - - 5 100 2 | 40 3 60 6 “ - -& | 100 3 60 2 40 12 1 8.3 11 91.7 6 64.5 6 45.5 1? 6 35.3 n 4.7 8 72.7 3 27.8 - - 8 100 -~ | = 8 100 13 - - 13 | 100 - - 13 100 17 - - 17 | 100 - - 17 100 30 2 6.7 28 83.8 + 4.3 2 %.7 - - 4 100 - - 4 100 6 - - 6 | 100 1 20 4 80 12 - - 12 | 100 1 as 1 91.7 19 3 5.8 1s Lt - - 1s 100 - - $ 100 - - b 100 10 - - 10 | 100 1 10 9 90 - 16 1 6.2 16 93.8 - - 6 100 33 2 6.1 31 $3.9 6 16.1 26 88.9 _- - 1 100 1/2| 7.2 | - 6-172 92.8 on ie. - 7__| 100 - : 7 100 17 1 5.9 16 94.1 1 6.3 6b 33.7 27 8 29.6 19 70.4 3s 15.8 16 4.2 - - 41 100 3-172. 86 | 37-172 91.5 52 = = 62 | 100 7 15.6 86.5 87 S- 5.7 | & 94.3 9 | i1.0 73 wer Bt) 185 i Ys “eT Tid = = 16 100 ry 26.9 | .12 75.9 3z - - 32 | too 6 18.8 26 81.2 45 4 8.9 41 91.2 1/2 1 (22-172 | 64.9 100 iv ° 61.0 a) 6 67 iL} “ 76. 6 - - 4 | 100 1 25 3 5 11 1 92 Yo | 90.9 i 10 9 %# 29 13 “4.5 16 66.2 2-174 6.6 w-1A| 4.4 “ “ 4 100 = = 4 100 12 - - 12 | 100 - 83 11 91.7 22 2 92 20 90.9 i e 19 *“ 30 i 3.3 29 6.7 - - 29 100 i a Pitti pectertiea ity”. aelitnn . TABULATION SHOWING WATERWORES OWNERSHIP BY POPULATION OF PLACES OF 2,800 AND OVER ; c 7 ° ; Arranged by States in Regiona} Divisions. (0.8. 1980 Census) 4 p Por explanation of Method of Compilation and References as to Source Material, see notetions following Table I-(B) TOTALS = 2,800 and Over’ 25,000 ant Over 10,000 te 26,000 . 8, - r - : Total keoe Undetermined Total Deterwined | Private Owned] Municipelly Owned} Total Less Undetermined | Total letermined | Privately Muni cipe} 1 Total Privately Owned | Municipelly Ownes| Total Less Undetermined | Total * and States Population | Population Population Pe Sa —---) oe Population | Population atton] Population Population z Population | Populetion Popu lation Population] & on Population | Population | % t mine 321,606 52,754 | 16.4 266,752/ 63.6 47,228 | 17.6 221,527) 82.4 134,607 - - 134 ,507 |100 - - 134, 507/100 os 503 13,840 |14.8 79,663| 66.2 26,440 | 36.7 61,223 | 64.3 64,962 24,130 | 37.2 “, Bow Ramet ire 275,079 - - 273 079 |100 53,957 | 19.8 219,142] 60.2 133 ,626 |. 133,626 |109 31,463 | 23.6 102,062| 76.4 96,937 - - 96,937 }100 12,471 | 12.9 84,466 | 67.1 24,460 - - 2, Vermont 118,766 | ~ 3,689 | 3.1 | ~ 228,077/ 96.9, .° - 115,077 /100 - - ° ° ° - ° ~ e 63,411 - - 63,471 |100 - - 83,411 [100 60,278 “. ~ 6,2 Masench setts 3,831 ,426 107,543 | 2.6 | 3,723,083| 97.2 84,919) 2.3 | 3,636,96¢/ 97.7 | 2,811,253 - - 2,821,283 |100 - - 2,811,253/100 ~ 693 ,428 - - 693 , 428/100 76,262 | 11.8 615,166 | 68.7 |. (267,939 87,720 | 30.6 20,2 Rhode [eland 635,429 10,421 | 1.6 825 ,008/ 98.4 109,000 | 17.¢ 516,008 | 82.6 505,922 - - 805 ,922 |100 70,523 | 13.9 435,599| 86.1 95,671 10,421 |10.9 85,260) 89.1 29,649 | 34.8 66,601 | 65.2 s- cma ee “28 Tenmect {owt 31,770 25,811 | 1.4 | 1,225,989! 98.6 489,414 | 43.9 626,545 | 56.1 872,258 - - 2 £72,258|100_ - 407,565 | 46.7 464,693| 53.3 209,500 - - 209 , 500 $4,818 30.7 146,267 | 69.3 33 : . ‘ Tetels 6,511,976 190,218 | 3.0 | 6.181.758) 97.0 784,496 | 12.8 | 5,337,263) 67.2 | 4,457,465 - - 4,457 ,465 |108 50° 551 111.4 | 3,947,914] 88.6 | 1,242,450 24,261 | 2.0 | 1,216,1 2D 3,088 117.6 | 1,008, 1641 62.8 Sk OF. Smee ste 4 Fiddle Atlantic ‘ ; i “ lew Tork 0,521,982 108,224 | 1.0 | 10,413,738| 99.0 386,613 / 3.7 | 10,027,128/ 96.3 | 9,204,899 - - 9,204,899 |100 186,740 | 1.7 | 9,069,159] 98.3 730,349 - - 730 ,349| 100 131,059 | 17.9 599,290 | 62.2 277,631 33,684 | 12.1 244,1 Bow Jersey 3,339,244 68,228 | 2.8 | 3,25¢,016/ 97.8 | 1,161,704) 36.2 2,212,312) 64.9 | 2,190,396 - - 2,190,396 |200 539,654 | 24.6 | 1,650,742) 75.4 |, 609,321 13,339 | 2.2 695 ,982| 97.8 347,291 | 68.3 248,691 | 41.7 351,371 43,610 —¥- _ 307, Pemnsylvanis 6,533,511 585,347 | 8.4 | 6,978,166/ 91.6 | 2,043,358 / 34.2 | 3.934.826| 65.5 4,104,365| _61,792 | 2.0 | 4,022,671] 98.0 694,649 117.5 | 3.328 27 | 1.157.990 307,975 | 9.3 | 1,060,037) 90.7 709,118 | 67.5 699 | 32.5 734,549 151,611 | 20.7 682, Totals 584, 707 748,789 | 35.7 | 19,646,918) 96.5 | 5,571,655 | 18.2 | 16,074,263] 61.6 | 15,499,658 51,792 | 0-5 | 15,417,866] 99.5 | 1,309,943 | 9.0 | 14,027,923] 91.0 | 2,497,660 121,312 | 4.9 | 2,376,348/ 95.1 | 1,187,468] 49.9 | 1,186,860] 80.1 | 1,565,051 ,008 | 16.8 | 1,134, 7 ’ Best Berth Centra) 5 . Geic 4,507,371 81,847] 1.8 | 4,425,524) 98.2 204,018 | 4.€ | 4,221,806] 96.4 | 3,399,766 - - 3,398,765 |100 $7,484 | 1.7 | 3,341,781] 98.3 617,498 13,999 | 2.7 603,599/ 97.3 69,318 | 13.8 434,261 | 86.2 359,925 $1,111 | 8.6 328,81 Ind tome 1,795,092 66,485 | 3.7 | 1,729,407/ 96.3 799,494 | 46.2 929,913) 53.6 | 1,260,190 - - 1,260,190 |100 665,100 | 62.6 595,090] 47.2 237,807 - - 237, 807}100 62,679 | 26.4 475,128 | 73.6 172,871 24,437 | 14.1 142,47 Tliinets 5,636,729 113,210 | 2.0 $,822,617| 98.0 697,197 | 10.6 4,925,320| 89.2 4,496,441 - - 4,486 ,441 100 299,787 | 6.7 4,186 ,654| 93.3 482,439 - - 482 ,439/ 100 199,430 | 41.5 285,009 58.6 |. 393,926 0,716 | 10.3 353,21 Wichigan 3,302,075 76,544 | 2.5 $,225,531| 97.7 45916) 0.2 3,220,615) 99.6 | 2,606,335 - - 2,606 ,336 |100 - - 2,606,335 |100 327,343 - - 327,343/100 - - 327,343 |100 213,702 42,251 | 1948 171,47 econsin pdaSSS ates 42,420 | 2.7 | 1,531,483) 97.3 99 +6 | 1,613,667! 93.4 | 1,059,127 ~ . 1,059,127 36,113 | 3.4 | 1,023,014) 96.6 | 821 - e : 223 ,821/100 47,967 | 21. 175 ,654| 78.6 141,908 §,362 | 3.7 136, 54 Totals 784, 908 SE, 496 | 2.3 | 16,414,412) 27.7 | 1,708,411 | 10-4 | 14,709,001] 69.6 | 12,810,858 - - | 12,810,888 |) 1,058,484 | 8.3 | 11,752,374] 91.7 | 1,788,908 13,899 | 0.8 | 1,775,009] 99.2 379,394] 21.4 | 1,395,615] 76.6 | 1,282,529 143,857 |11.2 | 1,133,47 Weet Berth Centre) ' ~* ‘a Hirnescta 1,257,616 36,366 | 2.9 | 1,221,261] 97.1 6,321/| 0.8 | 1,214,930] 99.5 837,425 - - 837,425 |100 - - 837,425 |100 159,680 - - 159,680) 100 - - 1697680 [100 123,609 - - 123, low 979,292 27,722 | 2.8 951,570) 97.2 195,787 | 20.8 7$5,813| 79.2 549,064 - - 549,064|100 113,232 | 20.6 435,°32| 79.4 167,405 4 - 167,495}100 44,225 | 26.4 123,180 | 73.6 94,173 6,019 | 6.3 69,1 Viesour! 1,£59,119 35,979 | 2.7 | 1,823,140] 98.3 204,8465/ 16.6 | 1,88°,295) 84.4 | 1,419,431 - - 1,419,431 Noo 171,916 | 12.1 1,247,515, 87.9 165,060 - - 165 ,060] 100 73,925 | 44.8 91,136] 55.2 181,136 14,524| 9.5 136,81 orth Darote 115,306 5,106 | 4.5 108, 200/ 95.5 $,451| $.2 102,749| 94.9 2e,619 - - 28,619 100 - - - 28,619 |100 44,30} - - 44,301) 100 - - |, 44,301 fico 34,074 5,106 | 18.0 2? ,96' Sovth Dakote 130,907 5,467 | 4.2 125 ,440/ 95.8 5.733| 4.6 119,707| 95.4 33,362 - - 33,362 |100 - - 33,362 |100 68,971 - - 68 ,971/ 100 - + 58,971 [100 11,806 - - ne Rebresks 486,107} - 11,899) 2.4 474,208) 97.6 16,735 | 3.5 457,473) 96. 289,939 - - 289,939 |100 - - . 289,939/100 78,013 : - 78 ,O}8| 100 - - 78,013 |100 62,216 6,688 rr —— Tenses 729,834 8,300 | 1.3 721,554| 98.9 155,232 | 21.5 2) 78. 324,172 - ° $24,372 6 42.6 185,977} 57.4 216 ,992 - -~_| _216,992}100 13,024] 6.0 203 ,968 | 94.0 . 81,815 5,548 | 6.8 26 5,856,181 130,838 | 2.4 | 8,425,343] 97.6 670,074 | 12.4 | 4,758,269, 87.6 | 3,482,012 - - see ee 423,343 | 12.2 | 3,066,669| 67.8 890 ,322 - - 890,322|100 151,174] 14.7 /148] 66.3 | 850.719) 36,695 | 6.6° 622,90 Cl ~ 123,246 8,030 | 6.5 115,116] 93.5 ° - 115,116 |100 106,597 o o 106,597 |100 i -* - 106,597 }100 - rs ers a - ‘i * in is e ~ e o - 974,269 3,850 | 0.9 971,019/ 99.1 4,844! 0.9 962,475) 99.1 #73482 - - &73 ,482 }100 - - 873 ,482 |100 37,962 - - 37,962) 100 - - 37,962 [100 20,547 -. - 20,54 486 569 - - 426 , 869/100 - - 495 ,869 100 486 , 869 - - 486 ,: 69 [100 - ° 486 ,869 |100 o* o o o o ee o o o o o o - 786,537 29,685 | 3.8 755 ,852/ 96.2 321,262 | 14.7 644,611 85.3 $31,191 - - 531,191 }100 69,206 | 13.0 461,985| 87.0 118,830 - - 118,830) 100 35,476 | 29.9 83,354) 70.1 68,993 14,239 | 20.6 54,7) 491 604 27,969 | 6.7 463 ,555| 94.5 259,568 | 56.0 203,890/ 44.0 256,128 - - 286 ,128 |100 135,980 | 53.1 120,148| 46.9 87,952 - - 87,952| 100 49,936 | 56.8 36,016} 43.2 85,760 $,904 | 6.9 79 809 847, 6,135 | 0.8 603,712) 99.2 16,034| 2.0 787,678) 98.0 420,142 - - 420,142 |100 - - 420,142 /100 172,672 - - 172,672) 100 - - 172,672 |100 113,695 2 - 113,6 371,080 8,234 | 2.2 362 ,846| 97.8 19,939) 6.5 342,907| 94.5 171,723 - - 171,723 [100 - - 271,723 |100 63,279 - - 65,279) 100 - 14,383 | 22.7 48,896 | 77.3 . 73,856 - - 73,8 696 492 14,381 | 1.6 881,111/| 98.4 29,830| 3.4 851,281| 96.6 612,692 - - $12,692 /100 - - 612,692 |100 183,017 - - 153 ,017/ 100 14,022} 9.2 138,995} 90.6 115,786 8,124) 7.1 _ 105,66 759,778 31,964 | 4.2 727,814) 96.8 70,945 | 9.7 656,871} 90.35 467,291 - - 467,291 |100 $5,319 | 11.8 411,972| 88.2 91,359 - - 91,359) 100 - - 91,359 |100 112,719 §,624| 6.0 107,091 ExLLRLS " 5.0 | ¥,us Beal 08.0 7 . ¥.5 | 5.081.798] 00.7 | 3.826 115 > - T8268 115 Ti00 260,505 | 6.6 | 3,868,610] 93.2 | 728.071 = = ,O71| 100 Tis,617| 15.7 24 | 64.5 9, 3,691 | 6.8 ® 799,026 20,868 | 2.6 778,178) 97.4 187,707 | 24.1 590,471/ 75.9 | 513,092 - - $11,092 |100 79,277 | 15.5 431,815/| 84.5 89,511 - - 89,511) 100 21,976 | 24.6 67,535| 75.4 112,451 8,036| 7.1 104,41 896, S38 2,902 | 0.3 893 636) 99.7 178,842 | 20.0 715,094| 80.0 657,689 - - 657,689 |100 * 119,798 | 16.2 537,691| 81.8 46,091 - - 46,091) 100 a - 46 ,091 |100 99,184 - - 99,1 744,273 47,781 | 6.4 696,392/ 93.6 381,674 | 54.8 314,718) 48.2 393,969 - - 393 ,959 |190 259,678 | 65.9 134,281} 34.1 185,622 ~ - 186 ,622/ 100 69,718 | 37.6 116,904/ 62.4 69,654 18,598 | 26.7 per |_$3# ,*50 39,178 | 6.7 329,676) 94-3 6,220} 1.2 313,454/ 98.1 60,236 - - 80,236 [100 - - 80,236 200 187,153 - - 157,153| 100 - - 187,163 /200 - - 448 2,776 687 ,007 | 3.3 2,687,680) 96.7 754,143 | 28.1 1,933,737; 71.8 | 1,642,976 - - 1,642,976 [100 14 458,753 | 27.9 1,184,223] 72.2 478,377 : - 475,377] 100 91,694) 19.2 386,683] 80.8 304,737 26,634) 8.7 278,103 Wert South Contra! | 382,078 47,072 | 12.6 335,006) 87.5 226,685 | 65.3 116,351} 34.7 123,872 — - 123,872 200 81,679 | 65.9 42,193) 34.) 97,261 « . 97,261} 100 . 86,935 | 89.4 10,326] 10.6 56,416 14,324 | 25.4 42,092 #33 S32 $1,430 | 6.2 782,102) 93.8 63,570} 6.1 718,832} 91.9 892,174 - ° $92,174 |200 30,729} 5.2 861,448 | 94.8 67,480 . - 67,480} 100 15,791-| 23.4 51,689] 76.6 72,864 6,299| 8.7 66 ,265 821,68} 17,871 | 2.3 804,310) 97.9 21,437| 2.7 782,873| 97.3 385,072 - - 385 ,072 |100 - - 385,072 /100 168,698 - - 16® ,698/ 100 14,73 | 8.8 153,935] 91.2 162,358 13,046 a ay 2,385,346 73,442 | 5.1 | 2,338,906! 96.9 178,086] 7.6 | 2,140,850] 92.4 | 1,506,868 - - 1, 806 , 868 |200 74,528 | 4.9 | 2,432,340) 95.1 292,594 a 292, 594) 100 10,7SS| 3.7 29),841/ 96.5 | - 314,208 5,970| 1.9 308,238 4,427,459 | 190.118] 4.3 | 4.287 Sta] 95,7 472,718] 11.3 | 3.788.608) OF fer = EL hd : 7.0 | 8.421,0801 85.0] ; : = ‘OSS 100 12", 842] 8.8 | 407.1] 99.8 | 608-848] 30-58 T SS : Mowta in : . Bortam 181,036 - - 181,036 | 100 7,193 | 39.8 110,843/ 61.2 68,354 - - 68,354 |100 39,552 | 57.8 28,822) 42.2 55,334 - - 55,334) 100 27,181 | 49.2 28,183| 50.8 38,245 - - 38,245 Idee 129,807 $,183 | 4.0 124,354/ 96.0 57,599 30.2 86,755| 69.8 ~ ~ e « o « e e « 3@,915 - - 38.15) 100 21,544] 56.7 16,4714 43.3 44,122 - - 44,122 Pyraming 70,097 - - 7 ,097/100 15,897 | 22.4 $4,200} 76.6 - . - « « « pa o. ° 33,980 - - 33,980) 100 ea - 33,980 }200 25,585 - - _ 28,888 Colorade ‘ $19, s02 $,7™m | 0.9 $16,111) 99.3 - - $16,111 /200 371,19 - - 371,194 /100 - - $71 ,194/100 56,894 > - 56,894) 100 - - 56,894 /100 60,916 - - 60,916 Sew Eeaico 106 816 9,097 | 8.8 87,719) 91.6 22,911 | 23.4 74,808/ 76.€ 7 * 26,870 - - 26,570 |100 - - 26,570 |100 22,349 - - 2,349] 100 11,176 | 60.0 11,173] 50.0 25,920} . -¢ - 26,920 Arison 149,056 11,610 | 7.9 138,266] 92.3 12,915/ 9.4 125,331| 90.6 80,624 - - 80 ,624 |100 « ° 80,624 /100 - - - -. o j.: - - - - 44,224 7,693 | 27.4 |- 36,531 ome 266, 264 - - 266 ,264/ 100 3,062] 1.2 263,223| 96.9 180,839 - - 180,839 |200 - - 180,839 |200 14,766 - - 14,766] 100 - , 14,766 |100 25,379) - - . Bevade 34,464 5,045) 8.8 31,419| 91.2 23,0387 | 73.3 8,382| 26.7 ° =. ° pe . . . o e 18,529 - : 18, 629] 100 18,529 oo - - - : -§,165 Tetels 1,487 922 é 1,42. 97.8 ies.503] 13.1 | 1.880.668) 66.0 | 727,281 = = 727, 281 [100 “39,852 ] 5.4 , 687,749] 94.6 | 259,867 : - 867) 100 “78, 32.7 161,467| 67.3 269,586 7,693| 2.9 261,863 * " wo . ry 883 983 $,873 | 0.7 878,120) 99.3 32,007; 3.6 846,113) 96.4 648, 764 - - 648 , 764/100 .- - 648, 764/100 142,696 - - 142 ,696/ 100 26,418 | 18.8 - 116,278) 81.5 27,976 - ~ 27,976 409, 746 - - 409 , 746/100 66,872) 13.6 423,874| 86.8 328,081 - - 328,081 /200 26,266 | 8.0 301,815| $2.0 66,350 - - yo oo yon yr: my —o4 aw oa aan - - 61,218 4,160,506 - - 4,160 100 347,237| 8.3 3,813,369) 91.7 | 3,221,143 - - 3,211,242 /100 131,629 | 4.1 3,079,512) 95.9 40° ,460 : 2 ~_ 40° 2. : 23: 3424 : 2 $834,335 5.875 | 0.1 ALF . 116] 6.1] 8,083,806] 91.9 4,187,986 = : 4,187,986 1100 | * 3.8 | 4,030,001) 96.2 ° : - ° 82,187] 15.8 | 888.319] 86-5 431,615 : - 431,615 984,277 | 1,900,060] 2.8 | 67,066,287) 97.2 | 9,221,301 | 13.6 | 87,962,056| 86.4 49,242,537 81,792 | 0.2 | 49,160,565/ 99.6 | 4,404,942 | 9.1 | 44,675,603| 90.9 | 9,097,194 269,472) 1.8 | 8,957,722) 98.2 | 2,405,411] 26.9 | 6,532,311| 73.2] 5,897,156 637,136 / 10.8 | 8,260,020 4 Ad 2 ‘ + Sia De a ear * e. . TABULATION SHOWING WATERWORKS OWNERSHIP BY POPULATION OF PLACES OF 2,500 AND OVER > Arranged by States in Regional Divisions. (U.S. 1930 Census) r ~ Por explanation of Method of Compilation aad References as to Source Materiel, see notations following Table 1-(B) - I>(B) 2 10,000 to 25,000 5,000 to 10,000 j + 5 > a Total Determined | Privately Owned / Municipae! ly a} Total Less Undetermined | Total De ined | Privately Owned | Municipally Owned ‘i Total Less Undetermined | Total Letermired| Privately Owned | ‘iunicipeally Owned Total Less Undetermined | Total Determined | Privately Owned | Municipally Owned ation Populatton| % Population Population z Population | Population . Population] % - , Pope lation Population | % Population | Population | % Population| % Population | % hopulation | % Population [Population | % -] Population | Population] % Population ,- - 134 ,507 |100 - - 134, 507/100 93,503 13,640 |14.8 79 ,663| 86.2 28,440 | 35.7 * 61,223 | 64.3 64,962 24,130 | 37.2 49,032 | 62.8 12,703 | 31.1 26,129 | 68.9 26,634 14,764 | 51.8 13,750 | 48.2 6,082 | 44.2 7,668 | 56.8 ; 133 ,625 |100 31,463 | 23.6 102,062] 76.4 96 ,937 - - 96 ,937|100 12,471 | 12.9 84,466 | 87.1 24,460 - - 24,460 /109 5,131 | 21.0 19,329 } 79.0 18,157 - - 16,157 1100 4,872 | 26.8 13,285 | 73.2 ; - - - - - - - - 53,411 = - 53 411/100 - - 53,411 [100 60,278 - - 50 ,27& |109 - 1 = 50,278 ROO 15,077 3,689 | 24.5 11,388 | 75.5 - id 11,388 foo 4. - 2,811,253 |100 - ~ 2,811,253 |100 693 ,428 - - 693 ,428|100 78,262 | 11.3 615,166 | 88.7 287,939 87,720 | 30.6 200,219 69.5° 8,687 | 3.3 13,562 | 96.7 38,806 19,823 | 61.1 18,983 | 48.9 ~ ~ 18,983 Noo = ~ 505,922 |100 70,523 | 13.9 435,399| 86.1 95,671 10,421 |10.9 85,260] 69.1 29,649 | 34.8 55,603 | 65.2 30,170 - - 30,179 '199 5,162 j 17.1 25,008 | 82.9 5,666 7 - 3,666 |100 3,666 100 - - ) : 872,258 |100 407,565 | 46.7 464 ,.693| 53.3 209,500 : - 209 , 500 | 100 64,213 | 30.7 145,287 | 69.3 33,752 7,883 | 23.4 25,°69. 76.€ 13,426 | 51.9 12,443 | 48.1 16,260 7,928 | 48.8 8,332 | 51.2 4,210 | 60.5 4,122 | 49.5 z - or “4,457,465 [108 £02,551 | 11.4 3,947,914] 88.6 | 1,242,450 24,261 | 2.0 |. 1,218,189] 98.0 213,035 | 17.5 1,005,154 | 62.5 791 , 861 | y 75S | 24-4 SIT cee T TEE 07 11.6 Fs Be.F 120, 500 46,224 | 38.4 74,276) 61.6 18, 35.4 ° 4 a ; i - - 9,204,899 |100 158,740 | 1.7 9,049,159} 98.3 730,349 - - 730 ,349| 100 131,059} 17.9 | 699,290] 82.1 277,831 $3,684 | 12.1 244,147) 67.¢ 52,254 | 21.4 191,893 | 78.6 308,875 74,530 | 24.1 234,343 | 75.9 47,660 | 20.5 186,783 | 79.7 mm « 2,190,390 |100 539,654 | 24.6 | 1,650,742] 75.4 |, 609,321 13,339 | 2.2 595,982| 97.8 347,291 | 58.3 248,691 | 41.7 351,371 43,510 | 12.4 307,861! 37.6 174,350 | 56.6 133,511 | 43.4 188,166 28,379 | 15.1 159,777| 64.9 80,409| 60.3 | / 79,368 | 49.7 281,792 | 2.0 4,022,571] 98.0 694,549 117.3) 3,328,022) 82.7 | 1,157,990 107,973 | 9.3 1,050,017] 90.7 709,118 | 67.6 340,899 | 32.5 734,549 151,811 | 20.7 £82,738 | 79.3 . 447,826 | 76.8 134,913 | 23.2 536 ,609 213,771 | 39.8 322,888 | 60.2 191,646 | 69.4 130,992 | 40.6 381,792 | 0.5 | 15,417,866] 99.5 1,389,943 | 9.0 | 14,027,923] 91.0 | 2,497,660 121,312 | 4.9 2,376,348| 95.1 1,1€7,468 | 49.9 1,186,°80] 50.1 | 1,363,751 229,008 | 16.€ 1,134,746 | €3.2 674,429 | 55.4 460,317 | 40.6 7033, ® 0.6 716,080] 69-4 319,615 | 44.8 pe 4 . - ; es : 5 i - - 3,598 , 765 |100 $7,484 | 1.7 3,341,281] 28.3 . 517,498 13,299 | 2.7 603 ,599| 97.3 69,318 | 13.8 434,281 | 86.2 » 369,925 $1,111 | 8.6 soveen4 91.4 'S4,745-| 16.6 274,069 | 83.4 231,183 36,837 | 15.9 194,346 | 84.1 22,471 | 11.6 171,875 | 68.4. , - 1,260,190 |100 665,100 | 52.8 595,090] 47.2 237,807 - - 237,807) 100 62,679 | 26.4 175,128 | 73.6 172,871 24,437 | 14.1 148,434] 85.9 51,538 | 34.7 96,896 | 65.3 125,024 42,048 | $3.6 82,976 | 66.4 20,177] 24.3 62,799 | 78.7 ,; - - 4,486 ,441 |100 299,787 | 6.7 4,186 ,654| 93.3 482,439 - - 482,439] 100 199,430 | 41.3 283,009 | 58.6 693 ,926 4,716 | 10.3 383,219 | 89.7 73,886 | 20.9 | - 279,324 | 79.1 272,921 72,494 | 26.6 200 ,427| 73.4 24,094 | 12.0 176 ,333 | 88.0 if 2 - 2,606 ,335/100 - | - 2,606 ,335 }100 327,343 - - $27,343) 100 - - 327,343 |100 213,702 42,231 | 19.8 171,471 | 80.2 - 171,471 200 154,696 34,3518 | 22.2 120,382| 77.8 4,916) 4.1 115,466 | 95.9 4 - = 1,059,127 |I00 36,113 | 3.4 | 1,023,014) 96.6 223,821 - - 223,821] 100 47,967 |.21.4 175,854] 78.6 141,95 5,362 | 3.7 136,543] 96.3 6,458 | 6.2 128,085 | 93.8 128,990 37,048 | 28.7 $1,942] 71.8 7,248 | 7.9 64,694 | 92.1 . = - 12,810,858 [10D 1,058,484 | 8.3 | 11,752,374] 91.7 | 1,788,908 13,899 | 0.8 1,775,009] 99.2 379,394 | 21.4 1,396,615 | 78.6 | 1,282,329 143,857 | 11.2 1,133,472] 88.8 128,627 | 16.6 949,845 | 63.4 912,613 222,740 | 24.4 690 ,0 75.6 78,906 | 11.4 611,167 | 68.6 € = - ~ 837,425 |100 - - 837,426 |100 152,580 - - 159,580] 100 - - 159580 /100 123,699 - - 123 ,600 |109 6,321 | 5.1 117,179 | 94.9 187,111 36,365 | 26.5 100,746 | 73.5 - ~ 100, 746 [100 - 549,064 |100 113,232 | 20.6 435,32] 79.4 167,405 - - 167,495] 100 44,225 | 26.4 123,180] 73.6 _ 94,173 5,019] 5.3 89,154] 94.7 22,127 | 24.8 67,027 | 75.2 168 ,650 22,708 | 13.5 145,947| 86.5 16,173 | 11.1 129,774] 88.9 - 1,419,431 /100 » 171,916 | 12.1 1,247,515, 87.9 165,960 | - - 165,060] 100 73,925 | 44.8 91,135] 55.2 151,136 14,324] 9.5 136,812] 90.5 19,180 | 14.0 117,632 | 86.0 123,492 21,655 | 17.6 101,837} 82,8 19,824] 19.5 82,013 | 80.5 - - 28 ,G19 |100 - 20,619 100 44,301 | - -. 44,301] 190 - - 44,391 /100 34,074 5,106 | 15.0 27,968] 85.0 5,451 | 18.8 23,517 | 81.2 6,312 - - 6,312 /100 - - 6,312 [100 - - 33,362 |100 ~ - 33,362 |100 58,971 ~ - "68 971/100 - - 58,971 |100 11,805 - ~ 11,806 |109 5,733 | 48.6 6,072 | 51.4 26,769 5,467 | 20.4 21,302] 79.6 - ~ 21,302 oo - -° 289 ,939 }100 - - 289 ,939/100 78,013 - - - 78,013} 100 - - 78 ,013 |100 * 62,216 6,688 | 19.7 55,528 | 39.3 12,942 | 23.3 42,586 | 76.7 65,939 6,211] 9.3 50,728] 90.7 3,793 | 7.5 46,935 | 92.5 3 - - 324,172 |100 138,195 | 42.6 185,977] 57.4 216,992 eae - 216,992] 100 13,024] 6.0 203 ,968 | 94.0 81,815 5,548 |- 6.8 16 ,267| 93.2 - - 76,267 [100 106,856 2,752 | 2.6 104,103 | 97.4 4,013] 3.9 100,090 | 96.1 } ae 7 3,482,032 [100 423,343 | 12.2 3,058,669] 67.8 890 ,322 - - 890 ,322/ 100 131,174 | 14.7 759,148] 85.3 §5@,719 36,635 | 6.6 522,034| 93.4 71,754 | 13.7 450,280 | 86.5 625,128 94,153 | 15-1 530 ,975| 84.9 43,603; 8.3 487,172} 91.7 - - 106 ,597 {100 - - 106 ,597 |100 - - - - - - - - - - - - - - - - - - 16,549 8,030 | 48.5 8,519] 61.6 ~ - 8,519 |100 ~ - 873 ,482 100 - - 873 ,482 |100 37,962 - - _37,962| 100 - - 37,962 |100 20,547 ~ - 20,547 |100 8,544 | 41.6 12,003 | 58.4 42,878 3,850 | 8.9 39,028/ 91.1 - - 39,028 |100 - ~ 486 ,: 69-1100 aa 486 ,869 |100 ar - - - - - ~ - “ - - - - - - + - - - - - - - - - - - - - 531,191 |100 69,206 | 13.0 461,985] 87.0 112,830 - ~ 118,830] 100 35,476 | 29.9 83,354) 70.1 68,993 14,239 | 20.6 54,754| 79.4 - - 54,754 [00 66,528 16,446 | 23.2 51,077| 76.8 6,659 | 12.8 44,518 | 87.2 - - 266 ,128 {100 135,980 | 53.1 120,148} 46.9 87,952 - - 87,952] 100 49,936 | 56.8 38,016} 43.2 85,760 5,904| 6.9 79,846| 93.1 42,708 | 53.5 37,158 | 46.5 61,674 22,045 | $5.7 39,629| 64.3 $0,941 | 786.1 6,688 | 21.9 - - 420,142 |100 + _ 420,142 |100 172,672 - - 172,672} 100 - - «172,672 |100 113,693 - - 113,693 |100 - - 113,693 00 103,340 6,135 | 5.9 97,206| 94.1 16,034 | 16.5 61,171} 83.5 - ~ 171,723 {100 -- |re 171,723 }100 63,279 - - 63,279] 100 14,383 | 22.7 48,896 | 77.3 73,855 - -" 73 ,856 |100 6,566 | 7.5 68,299 | 92.5 62,228 8,234 | 18.2 535,989] 66.8 ~ - 53 , 989 /100 ~ - 612,692 |100 - - ‘512,692 |100 153,017 - - 153 ,017| 100 14,022] 9.2 138,995] 90.8 113,785 8,124] 7.1 105,661] 92.9 - ~ 105,661 [100 115,998 6,257| 5.4 109,741] 94.6 15,606 | 14.4 93,933 | 85.6 o 99 ago. See also pages 426-428 and 443-444, This principle of expanding constitutiona] concepts was recognized again in Nebbia v. New York, 291 U. S. 502, Asai NOEL We At ASLAS CANARIAS WEN ht le AIA ib AML IE BS ABS MENA ac ISEMES A AEE ALN a HOCUS TAN TONE a a o 524-525 (1933). The principle was applied by the Cir- cuit Court of Appeals for the Fifth Circuit to exempt from Federal Income Tax the salary received by the superintendent of a school cafeteria (Hoskins v. Com- missioner of Internal. Revenue, 84 Fed. (2d) 627—1936). It should be applied again in the instant case*to exempt . the salary of an officer and employee of a municipally- owned waterworks. The other briefs filed in this cause cite the pertinent cases bearing upon this problem of taxation as decided by this Court and by the various circuit courts of appeal. The writer believes that the question at bar virtually has been settled in favor of the petitioner by the reasoning of this Court in invalidating the Municipal Bankruptcy - Act (Ashton v. Cameron County Water Intprovement District No. One, 298 U. S. 513 (1935), especially at pages 527- 530). “ Even the dissenting opinion recognizes the govern- mental nature of the ownership and operation of the waterworks there involved (page 538). This case has been analyzed so fully in the other briefs that Sune dis- cussion will not be made here. To the writer it is not apparent that there is any basis of distinction whereby the cited decision can be upheld and yet a ruling be made in the case at bar that the ownership , _ and operation of waterworks by a munictpality of the state constitutes a private, nongovernmental function subject to Federal taxation. It is earnestly submitted that the course of expanding social concepts and the course of developing judicial precedents alike require that petitioner’s salary be held to be exempt from Federal taxation. - we IT. The Activities of The Metropolitan Water District of Southern California Are Governmental in Char- acter Within the Exemption From Federal Taxa- tion Laid Down by the Adjudicated Cases. The Metropolitan Water District of Southern Califor- nia was incorporated December 6, 1928, under and pur- suant to the provisions of the Metropolitan Water Dis- trict Act of the State of California, Statutes of 1927, page 094, Deering’s General Lay s, Act 9129. This act was amended by Stats. 1929, page 1613, by Stats. 1931, page 814, and by Stats. 1933, page 129, The occasion for the incorporation ol the District arose trom the necessity for importing an additional water sup- ply to the metropolitan area ot Southern California. -The area involved is semiarid and the annual water supply ~ locally available is less thar the annual consumption. The reserve supply in underground basins is being constantly drawn down. The situation required that a vast region _ Save itself by governmental action by bringing in water from a great distance in such quantities as to guarantee adequate supplies for the needs of the cities and munici- palities of this region in their governmental and corporate capacities, as well as for the needs of their inhabitants. Without additional supplies, the cities of Southern Cali- fornia. would be incapable of growth and would be sub- . ject to regression because of the constant depletian of - existing supplies, resulting in insufficient Water to mf&in- tain the present’ population and industries. Without the aid of governmental powers, particularly the taxing power, it would have been impossible to pre- ee ee ee ee Le ee ee ee ee ee eee ey ” —~— = serve the present development or make provision for future growth. The cost of the project (estimated at two hun- dred and twenty million dollars), the long construction ‘period (five to six years), the fact that revenues from water sales will not pay operating expenses for many years (estimated twenty years), and the fact that the works will never be profitable as a business venture but find their justification and necessity in the general welfare of the community, all remove the project from the field of private enterprise. Without the taxing power the prob- lem presented by the great cost, the long construction period, and the longer development or load building period, could not be met. This District is composed of the corporate area of thirteen cities in Southern California, having an aggregate population, according to the 1930 census, of 1,665,833. Ten of these cities are located in the County of Los An- geles, namely, Beverly Hills, Burbank, Compton, Glen- dale, Long Beach, Los Angeles, Pasadena, San Marino, Santa Monica and Torrance; and three of the cities are located in the County of Orange, namely, Anaheim, Ful- lerton and Santa Ana. To further its purpose, the District entered into certain "contracts with the United States of America, acting by and through the Secretary of the Interior, namely, a water contract dated April 24, 1930, and a supplemental water contract dated September 28, 1931, by which the United States agrees to furnish the District 1,100,000 acre feet of water per annum, stored behind Boulder Dam, upon the conditions and terms stated in the contracts; and a contract for power for pumping water into and in the aqueduct, dated April 26, 1930, and a supplemental con- tract for-such power, dated May 31, 1930. —23— On September 29, 1931, the electors of the: District authorized a bond issue in the sum of $220,000,000 for the purpose of constricting an aqueduct and necessary appurtenances and facilities for bringing this water from the Colorado River to the District for distribution to the cities, whose areas are included in the District. The population of the District comprises 29 per centum-of the entire population of the State of California according to the 1930 census. As an additional aid to its proper functioning, the Dis- trict entered into a further contract for the.construction of Parker Dam by the Reclamation Bureau, this contract being dated February 10, 1933. In all of these contracts, the District’s character as a governmental agency of the State of California, performing usual governmental func- tions, is recognized. This brief recapitulation of the factual nature of the District's organization and activities is so commonly known as to be within the judicial knowledge of this Court. (drisona v. California, 283 U. S. 423, 452-454—1930. ) The legal status of The Metropolitan Water District of Southern “California as a governmental unit performing usual governmental functions is disclosed by the provisions of the Metropolitan Water District Act and the decisions of the Supreme Court of California, to all of which brief reference now will be made. Unless otherwise. specified, section references will be to the provisions of the Metro- politan Water District. Act. The District is organized “for the purpose of develop- ing, storing -and distributing water for domestic purposes” and is declared by the legislature to be “a separate and independent political corporate entity.” (Sec. 3.) The —24— e District has perpetual succession, and may sue and be sued; may adopt a corporate seal and alter it; may take by grant, putchase, bequest, devise or lease, and hold, ° lease, sell, or otherwise dispose of, any and, all real and personal property necessary or convenient to the full exer- cise of its powers. (Sec. 5, subds. 1 to 4.) ‘The District ‘also possesses the power of eminent domain to be exercised in the manner provided by law, respecting municipal cor- porations. (Sec. 5, subd. 5.) The District is authorized, subject to certain limitations, “to borrow money and incur indebtedness and to issue bonds or other evidence of such indebtedness” and “to levy and collect taxes for the purposes of carrying on. the operations and paying the obligations of the District”, such taxing power ‘being without limitation as to rate or amount so far as meeting both principal and interest requirements of the bonded indebtedness but being subject to a limitation of five cents on each one hundred dollars assessed valuation for all other purposes. (Sec. 5, subds. 7 and 8.) ‘The District is given the power “to joi? with one or more other public corporations for the purpose of carrying out any of its powers”. (Sec. 5, subd. 9.) > The procedure for incurring bonded indebtedness and for issuing, selling and refunding such bonds is set out with great particularity in Section 7 and also. in subdivi- sion 12’of Section 5. This procedure is modeled on the act providing for the issuance of general obligations of cities and municipal corporations incurred for admittedly governmental purposes. (Stats. 1901, page 27, Deering’s General Laws, Act 5178, as amended.) This procedure has been followed by The Metropolitan Water District of Southern California, which now has bonds issued and _— outstanding in the aggregate amount of $105,184,000, all but $1,500,000 of which were purchased by the Recon- struction Finance Corporation, and are still held by it. The $1,500,000 of bonds were purchased by the Public Works Administration. All bonds issued by the District are general tax obliga- tions, to meet the principal and interest requirements of which the Board of Directors is under a statutory duty to levy sufficient taxes upon all taxable property, both real and personal, within the District. (Sec. 5, subd. 8; Sec. 7, subd. j.) The’ procedure for levying such taxes, together with any taxes levied for general District pur- poses, 1s prescribed. (Sec. 8.) The powers of the District are vested in a Board of Directors consisting of representatives from each munici- pality, the area of which lies within the District, the rep- -resentatiyes being appointed by the chief executive officers with the consent of the governing bodies of the respective municipalities. The Buard of Directors is given power to provide for the holding of meetings, to pass ordinances, resolutions and orders, all ordinances, except those of: specified categories, to be subject to referendum by the electors of the District. The Board further is authorized to prescribe by ordinance a system of business adminis- tration, and to create necessary offices, including those of controller and treasurer, and to prescribe by ordinance a system of civil service. (See. 6, especially subds. | + OC Ea ~ 4and 5.) Lvery director is subject to recall by, the voters of his municipality, (Sec. 12.) The Board is authorized to provide by ordinance for all matters and things neces- sary for the proper administration, of the District’s affairs, which are not provided for in the Act. (Sec. 13.) ae - ith atc teetn ities aati i Sinai ial ; poe. Upon this framework of municipal organization and procedure is erected the capstone of governmental func- tioning in regard to the acquisition, preservation and protection of adequate municipal water supplies for the performance of usual governmental activities. Section 5, subdivision 10, provides that the District shall have power: ‘To acquire water and water rights within or with- at the State: to develop, store and transport water ; &. 4. provide, sell and deliver water at wholesale for unicipal and domestic uses and purposes; to provide, cll and deliver surplus water of the district not needed or required by member cities for domestic or municipal uses therein, for beneficial purposes, but viving preference to uses within ‘the district; pro- vided, that the supplying of such surplus water shall, in every case, be subject to the paramount right of the district to discontinue the same, in whole or in part, and to take and hold, or to provide, sell and — deliver, such water for domestic or municipal uses within the district, upon one year’s written notice to the purchaser or user of such surplus water, such notice to be given by the board of directors of the district whenever it shall be determined and declared by resolution adopted by said board of directors by a two-thirds vote thereof that such water is needed or required by member cities of the district for domestic or municipal uses therein; to fix the rates therefor, and to acquire, construct, operate and maintain any and all works, facilities, improvements and property necessary or convenient therefor.” | Section 514 establishes the proportionate right of cities whose corporate areas compose the District by the follow- ing provisions : | a “Each city, the area of which shall be a part of any district incorporated hereunder, shall have a prefer- ential right to purchase from the district for distri- bution by such city, or any public utility therein em- powered by said city for the purpose, for domestic and municipal uses within such city a portion of the water served by the district which shall, from time to time, bear the same ratio to all of the water supply ol! the district as the total accumulation of amounts paid by such city to the district on tax assessments and otherwise, excepting purchase of water, toward the capital cust and operating expense of the district’s works shall bear to the total payments received by the district on account of tax assessments and otherwise, excepting purchase of water, toward such capital cost and operating expense.” It is to be noted that the District is to be a wholesaler vf water. It will furnish water to its oOmponent cities. It will not sell at retail to commercial or domestic consumers ‘ PAE ER RCE OSLO, DIA LTS ST ERE eet Se EA ROR RR of water. The supplying of water by a municipality or other state agency for the following purposes has been held to be'the - performance of an usual governmental function, and clearly would be exempt from Federal taxation: 1. Pusiic HEALTH | | Bes Columbus v. Mercantile Trust & Ca, 218 ri U_S. 045, 658, 661 (1910); | Pillman v. District of Columbia, 29 Fed. (2d) 442, 443 (Court of Appeals of District of Columbia, 1928). TU, ay Rin PCT A Re Ok eee Re ee —28— 2. FIRE PROTECTION . Columbus wv. Mercantile Trust & D. Co., supra; German Alliance Insurance Co. v: Home Water Supply Co., 226 U. S. 220, 227-228 (1912); . | ; ~ American-La France Fire Eng. Co. v. Rior- dan, 6 Fed. (2d) 964, 966 (Circuit Court of Appeals, 2d Circuit, 1925). 3. ‘SEWAGE DISPOSAL New Orleans Gaslight Co. v. Drainage Com- mission of New Orleans, 197 U. S. 453, 460, 461 (1904). 4. SrrREET CLEANING AND SPRINKLING Harris v. District of Columbia, 256 U. 5. 650, 652 (1920). PusBLic SHOWERS AND BATHS qm Tillman v. District of Columbia, supra. 6. Pustic PARKS © Commissioner of Internal Revenue wv. Sher- man, 69 Fed. (2d) 755, 759 (Circuit Court of Appeals, Ist Circtit. 1934) ; Commissioner. of Internal Revenue v. Lamb, 82 Fed. (2d) 733 (Circuit Court of Ap- peals, 9th Circuit, 1936). i CA nie Malle —29— 7.. IRRIGATION IN THE ARip LaNnp STATES oF THE WEsT. California Oregon Power Co. v. Beaver Port- land Cement Co., 295 U. §. 142, 165 (1934) ; Ashton v. Cameron County Water Improve- : ment District No.. Once, supra (298 U. S. at p. 524). 8. Pusiic Hospirats Mallory v. White, & Fed. Supp. 989 .( District Court, D. of Mass., 1934). From the outline of the purposes and powers of The Metropolitan Water District 6f Southern California set forth in the foregoing pages, it is apparent that this dis- trict exists’ and functions as. a protective mechanism to insure adequate and safe supplies of water to its compo- nent cities, so that they will be enabled to perform their admittedly governmental functions of furthering or fur- nishing the public health, fire protection, sewage disposal, street cleaning and sprinkling, public showers and baths, public parks, and public hospitalization. Even the fur- nishing of water for irrigation in the semiarid coastal plain of Southern California, which function is performed by sume of the district’s cities to an incidental and sub ordinate extent, would invoke the governmental powers of such cities. The Supreme Court of California has considered the legal status of the Metropolitan Water District and the j nature of its functions on several] occasions and has deter- 4 mined conclusively, so far as State law is concerned, that E. such district is a municipal corporation, possessing and a exercising usual governmental powers for the furtherance TT | i if = of a state object and governmental purpose. (City of Pasadena v. Chamberlain, 204 Cal. 653, 660, 662-664— 1928: Wheatley v. Superior Court, 207 Cal. 722, 720— 1929: Golden Gate Bridge & Highway District v. Felt, 214 Cal. 308, 321—1931; Metropolitan Water District 7. Whitsett, 215 Cal. 400, 406-407—1932; In re Metropoli- tan Water District, 215-Cal. 582, 586—1932; Mctropoli- tan Water District v. Superior Court, 2 Cal. (2d) 4, 6-7— 1934. ) A bridge and highway district of the State of Cali- fornia has been held to be engaged in the exercise of usual governmental functions within the exemption from Federal - income taxation (Commissioner of Internal Revenue v. Harlan, 80 Fed. (2d) 660—Circuit Court of Appeals, 9th Circuit, 1935), and the California cases cited’ hold that the Metropolitan Water District is of similar character to a bridge and highway district and is similarly engaged in performing usual governmental functions. The fact that a metropolitan water district might be held under California law to’ be subject to tort liability arising from its operations (see Morrison v. Smith Bros., Inc., 211 Cal. 36, 44-1930, establishing such liability as toa municipal utility district engaged in furnishing public water supplies) does not militate against the governmental character of the district’s functions when considering the tax problem. The supposed distinction between govern- mental functions in the performance of which no tort liability arises and the proprietary functions where tort liability may arise has been used by the courts in their desire to achieve substantial justice when citizens were injured by various instrumentalities of the state and its political subdivisions. This distinction is losing its . a ch a fl ae significance and is of no validity in the realm of consti- tutional limitations upon the taxing powers of the states and of the Federal governinent with tespect to the instru- mentalities of each other. (City of Pasadena v. Cham- berlain, supra, at pages 662, 664: Trenton v. New Jersey, 262 U.S. 182, 191-192—1922. ) The rationale of the tax cases decided by this Court establishes the exemption of the Metropolitan Water Dis- trict from Federal taxation. In Ohio 7. Helvering, 292 U.S. 360 (1933), in holding that the agencies of the State of- Ohio for selling liquors were subject to Federal Excise Tax, there was stated the principle of dual sover- eignty applicable to matters of taxation, at pages 368, 369: “* * * . But, by the very terms of. the rule, the immunity of the states from federal taxation is lim- ited to those agencies which are of a governmental character. Whenever a- state engages in a business of a private nature it exercises nongovernmental functions, and the business, though conducted by the state, is not immune from the exercise of the power of taxation which the Constitution vests in the Con- gress, * * 8 | * * * * * * * * “* * * Tf a state chooses to go into the business of buying and selling commodities, its right to do so may be conceded so far as the federal Constitution is concerned; but the exercise of the right is not’ the performance of a governmental function, and must find its support in some authority apart from the police power. When a state enters the market place seeking customers it divests itself of its quasi sover- eignty pro tanto; and takes on the character of a trader, so far, at least, as the taxing power of the ederal government is concerned.” ; o - y= as Again, in Helvering v. Powers, supra, wherein the salaries received by the trustees from the Boston Elevated Railway Company were held taxable, this Court ‘said (293 U.S. at p. 225): “ck * 2 And one of these limitations is that the State cannot withdraw sources of revenue from the federal taxing power by engaging in businesses which constitute a departure from usual governmental func- tions and to which, by reason of their nature, the federal taxing power would normally extend.” See also: Ashton v. Cameron County Water Improvement District No. Onc, supra, -at pages 528-530 (298 oe Sovak: a The Metropolitan Water District of Southern Cali- fornia is not “entering the market place seeking custom- ers,” nor is it engaged in an enterprise for profit. The raising of revenues from water rates and the incidental sale directly by the District of surplus water not needed or required by its cities do not destroy the governmental character of the District’s functions. and the nonproht nature of its activities. | (Ashwander v. Tennessee Valley Authority,'297 U. 5. 288, 335-338—1935; New York cx rel. Rogers v. Graves, 81 L. ed. Adv. Ops. 202, 206— "decided Jan. 4, 1937.) _ | -The: Metropolitan Water District of Southern Cali- fornia is a municipal corporation and instrumentality of the State of California, existing and functioning for the purpose of protecting the communities included in such PR TEE TIPO a VR yy oT CEs _ = District in the maintenance and further acquisition of adequate and pure water supplies necessary to such com- ponent communities in order that those cities may per-- form the recognized governmental functions relating to the public health, fire protection, sewage disposal, street cleaning and sprinkling, public showers and baths, public parks, public hospitals, and irrigation of arid lands. In so doing the District is itself performing a governmental function which not only is usually performed by the sovereignty, but is impossible of performance by private enterprise. (Ashwander v. Tennessee Valley Authority, supra, at pages 327-328; New York ex rel. Rogers v. Graves, supra, at pages 205-206: New Jersey v. New York, 283 U. S. 336, 342—1930: Arizona v California, supra (283 U.S. 423—1930) : Arizona v. Califoruia, 292 U. S. 341—1933; United States v. alrisona, 295 U. S. 174—1934; Rivers and Harbors Act of August 30, 1935, 74ih Congress, Ist Session, Chap. 831, Sec. 2;