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stock to be exchanged for each inch of flowage or capacity right, The stodk is thus to be issued as part payment for the canal and rights appertaining thereto, The evidence be­fore the Commission shows that the owners of flowage or ca­pacity rights, to the amount of 1891.152 inches have signed the agreement to exchange their rights for stock in the new company. While no protect was filed in connection with this proceeding, the evidence shows that the owners of flowage rights of 100,844 inches have to date not signed the agreement, The owners of these rights will be given an opportunity to exchange their rights for stock in West Biver-side Canal Co&pany, en the same basis as those who have signed the agreement. If any refuse to make the exchange. West Elverside Canal Company proposes: "That the same rates be charged to those who have not signed, as to those who have signed, pro­vided, however, that they designate by January 1st of each year, whether or not they intend to run any water in the canal during that year, and at that time, make the payment due in January. If no des­ignation is made by January 1st of any year, and no payment made, then it shall be optional with the Board of Directors of the Canal Company whether or not any of the outstanding capacity or flowage rights be allowed to run water in the canal during that year." The Articles of Incorporation of West Riverside Canal Company explicitly state that it is to act as a public utility under the jurisdiction of the Bailroad Commission and the laws of the State of California, and that it is to issue carrying rights in the canal, represented by certificates of stock or certificates of such character in such form and representing such rights as the Board of Directors may from time to time decide upon, under the direction of the railroad Commission. Thus far applicant has not submitted a copy of its proposed certificate of stock. It is, however, proposed that these stock certificates shall not be negotiable in the ordinary sense. 4