The Golden Crucible An Introduction to the History of American California 1850

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So water, since it was an indispensable adjunct to mining, became almost as important as gold, especially in its effect on legislation and the later development of irrigation and hydro-electric power.
Along with the general growth of the mining industry came a corresponding development of laws pertaining to both mineral and water rights. Until 1866 when Congress passed the i5iy Mineral Land Act there was no way of acquir- ing legal title to a claim or lode, since the Fed- eral Government, which
... owned the land, had no law governing its disposition. The miner did not own the land outright; he owned merely the right to mine it. Prior occupation and use were the terms on which he held his claim. The rights consequent upon discovery, appropriation, and use were assumed to be fundamental. They were the only rights recognized by the community at large. To protect them, and to establish equit- able principles of action that would insure absolute equality of opportunity to all alike, a body of local legislation grew up from the rules and customs of the miners themselves.

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