Arrowhead Reservoir and Power Company (Lake Arrowhead) - California 1906

Beautiful RARE certificate from the Arrowhead Reservoir and Power Company issued in 1906. This historic document was printed by the Merdan Ink Company and has an ornate border around it with a vignette of the Delaware state seal. This item has the signatures of the Company’s President, and Secretary, and is over 104 years old. The company was incorporated in Delaware.


Certificate Vignette



In December of 1890, the Arrowhead Reservoir Company was formed. It was capitalized with $1,000,000 and plans to create a mammoth irrigation project on the western part of the San Bernardino Mountains to provide water for a thirsty San Bernardino. In 1891, the new company purchased over 4,000 acres of land in and around Little Bear Valley. They finished construction of a new toll road up Waterman Canyon by March of 1892 to haul heavy equipment and supplies to the new Lake Arrowhead dam site. By 1912, the Lake Arrowhead dam had reached a height of 160 feet. However, all of this came to a halt in 1913. Two years earlier in 1911, landowners from the desert side of the mountains had filled an injunction to stop the Arrowhead Reservoir & Power Company from diverting the natural flow of water. In 1913, the Superior Court in San Bernardino found in favor of the desert landowners. So, after spending $2,791,000 and 22 years of work, the Arrowhead Reservoir's plan to provide water to San Bernardino was dead.

In 1921, the Arrowhead Lake Company, a Los Angeles syndicate, purchased the Little Bear Lake and all of its properties from the Arrowhead Reservoir and Power Company. The immediately began work finishing the Lake Arrowhead dam. It was raised to a final height of 184 feet. However, the Arrowhead Lake Company wasn't interested in selling water. It was their plan to build the finest resort in Southern California. The lake was renamed "Lake Arrowhead". Luxury Lodges were built, a golf course was put in, and exclusive tracts were offered for sale. $8,000,000 was invested to demolish the existing Little Bear Resort and start construction on a unique Norman English style village.

On June 24, 1922, the new Lake Arrowhead village was officially opened to the public.

---

Arrowhead Reservoir and Power Company.

The predecessor of the present Arrowhead Reservoir and Power Company was the Arrowhead Reservoir Company, organized in 1891, the principal stockholders being Cincinnati capitalists. The original plan was a colossal undertaking. It was proposed to construct a main reservoir in Little Bear Valley which would impound the natural drainage of Little Bear Creek, a tributary of Deep Creek. An inlet tunnel, now partly constructed, was to be made from the reservoir eastward to Deep Creek and extended from this stream to Crab and Holcomb creeks to collect all drainage above the tunnel and carry it into the reservoir. Diversion dams and regulating reservoirs were to be located at Deep, Crab and Holcomb creeks and the flow of the smaller streams was to enter the tunnel through shafts. All of these works would be in the Deep Creek watershed. Another reservoir was to be constructed in Grass Valley, westward of the main reservoir and on a tributary of the West Fork of the Mojave River, and this supplemental basin was to be connected with the main basin by a tunnel. Two other reservoirs were to be located in mountain flats, the sites for which were later abandoned. Water was to be taken from the main reservoir by an outlet tunnel through the San Bernardino Range and delivered for the irrigation of lands south of the mountains. The company had no lands for sale and made no contracts for the delivery of water.

A masonry dam, to form the main reservoir, was begun on Little Bear Creek, but by the time the foundation was constructed it was found that suitable rock in sufficient quantity to construct a masonry dam was not to be had near the site. This caused a suspension of construction which was prolonged for a number of years. Data on the amount of water for storage had been meagre and the supply had been overestimated. In 1892 a series of precipitation and run-off measurements was begun throughout the watershed which was continued for 13 years before construction was resumed.

Until 1895 the development of power had not been considered in connection with the project. About that time, when it became known that long transmission of electrical power was practicable, it was planned to utilize the energy of the water in its descent on the southern slope of the mountains.

In 1905 the property was transferred to a new corporation, the Arrowhead Reservoir and Power Company, capitalized at $6,000,000 with nonassessable stock of which $500,000 was 5 per cent preferred and the remainder common stock. Shares representing about $100.000 par value were issued and placed in the hands of a trustee, no payments having been made on these shares. Some of the stockholders have taken notes of the company for other obligations, but the company has no indebtedness outside of the stockholders.

About 1909 some of the owners of riparian lands on Mojave River, including the Hesperia Land and Water Company, filed suits to prevent the company diverting water from the watershed, but the cases have not been brought to trial. In 1912 application was made to the California Railroad Commission for permission to issue $4,000,000 in bonds when riparian land owners again opposed the plans of the company by protesting against the granting of the application. The application was denied, without prejudice, for the stated reason that the company's title to water was uncertain until the cases were decided by the courts.

History from Wikipedia.