Capital City Light & Fuel Co. v. City of Tallahassee
Capital City Light & Fuel Co. v. City of Tallahassee
Opinion of the Court
(After stating the facts.)
As will be observed from the statement of the pleadings, the city of Tallahassee is asserting no right to put in and operate a plant for manfaucturing gas to supply light and heat for the use of the city or its inhabitants. It proposes to erect a plant to furnish lights, for municipal use, and for the use of its inhabitants, by means of electricty only. A careful reading of the ordinance passed in 1888 will show that the city is under no obligation whatever to the appellant or its predecessor company to light the streets and public building's of the city with either gas or electricity manufactured by said companies. Nothing is said in the ordinance about lighting tile streets or public buildings with electricity manufactured by the, company. In respect to gas, the city was not required to use any at all, but it obligated itself to take all gas that it might wish to use in lighting its streets and building's from the company at prices not to exceed the amounts named for a certain term of years.
At the time of the passage of the ordinance all the powers possessed by the city of Tallahassee in reference to lighting the city and authorizing the erection of structures in and over the streets were contained in the general incorporation law for cities and towns. A general power was given “to provide for the lighting of the streets of the city or town” (section 21, p. 249 McClellan’s Dig.), and also “to regulate, improve, alter, extend and open streets, lanes and avenues, and to cause encroachments and obstructions, decayed buildings and ruins to be removed.” Section 17, p. 248 ibid. These powers gave the city no authority to grant any exclusive privilege to use the streets of the city for the purpose of laying pipes or erecting poles and towers for furnishing gas or electric lights. Florida Central and Peninsular R. R. Co. v. Ocala Street and Suburban R. R. Co., 39 Fla. 306, 22 South. Rep. 692; Grand Rapids E. L. & P.
The, appellee contends that exclusive privileges of the character claimed in this case are not embraced within the class of exclusive privileges which the statute quoted properly interpreted meant to grant, and further, that if they are, such privileges are personal to the original corporation to whom granted, and can not be transferred to another by mortgage, or by judicial sale,. It claims also that the public nature of the business in
It appears from the pleadings that neither the Tallahassee Gas and Electric Light Company, nor the appellant company, ever established an electric light plant in the city of Tallahassee in pursuance of the authority conferred upon.either of them. From the organization of the first company up- to the time the gas plant was sold at judicial sale, about six years had elapsed, and from the time of the judicial sale to the time the city began proceedings to enable it to establish an electric light plant, about six years more elapsed. During all this period of time neither company attempted to- construct an electric light plant as authorized by its charter. In the meantime that provision in the general incorporation law relating to exclusive privileges had been repealed by the legislature of 1891, and an act passed in 1897 specially authorizing cities and towns to establish gas and electric light plants to supply themselves and their citizens with light, and still later, in 1899, special legislative authority was given the city of Tallahassee to
Our attention is called to that clause in the seventh section of the city ordinance which required the company to put in electric lights only when sufficient consumers could be secured to pay eight per cent, interest per annum on the additional capital required to purchase the machinery and put in'successful operation electric lights. It would appear from this clause that from the beginning the company only intended to avail itself immediately of that provision of its charter authorizing it to erect a gas plant, and to use the other power granted by its charter, together with the city ordinance, to shut out competition in its business from eletric light companies, intending only to put in an electric light plant whenever that plant could be made to secure it an 'annual profit on its investmenent in that plant of eight per cent. It is quite apparent that the legislature never intended to secure to it any such right; but, on the contrary, intended the privilege to extend only so far as to secure the company from competition in matters wherein it had complied with its charter by being put into successful operation. We have seen that the city had no authority to grant exclusive privileges to use, its streets for the purpose of furnishing light from gas and electricity, but even if it did have such power, it could not confer such exclusive right and at the same time defer construction of the plant until such time as it could be made to pay eight per cent, upon the investment. The effect of such a provision in an ordinance like the. one we are considering is, that the city will not permit any other person or corporation to use its streets for the public purpose of furnishing electric lights for twenty-
We have not overlooked the fact that the first company perfomed its charter powers in part by erecting and operating a g-as plant, and as to that plant, and the business connected therewith, it may have possessed exclusive privileges under the statute which could not be impaired by subsequent legislation, and it may be that such privileges passed to appellant throug'h the judicial sale. As to that we express no opinion. But while the purpose of erecting both plants would be the same, in that they would both furnish light to the city and its people, yet they furnish a different light and require separate and different plants and instrumentalities for their operation. We think they are so distinct in character as to amount to separate undertakings, and they are so treated in the articles of association of both companies and in the ordinance.. Power to operate the one would not include power to operate the other, and nermission to use the streets for one would not include permission to use them for the other. City of Newport v. Newport Light Co., 89 Ky. 454, 12 S. W. Rep. 1040. The exclusive privileges as to the electric light plant
The decree of the court below is affirmed.
Reference
- Full Case Name
- The Capital City Light and Fuel Company, a Corporation Under the Laws of Florida v. The City of Tallahassee, a Municipal Corporation of the State of Florida
- Cited By
- 10 cases
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- Published
- Syllabus
- 1. Powers granted cities and towns “to provide for the lighting of the streets of the city or town,” and “to regulate, improve, alter, extend and open streets, lanes and avenues, and to cause encroachments and obstructions, decayed buildings'and ruins to be removed,” do not authorize a city to grant an exclusive privilege to use the streets, lanes and alleys thereof for the purpose of laying gas pipes therein or erecting poles, wires and towers thereon for supplying gas or electricity to the city or its inhabitants by corporations authorized to manufacture gas or electricity. ' 2. That provision of the general laws for the creation of corporations in force prior to 1892, found in section 30 p. 234, McClellan’s Dig., did not confer any power upon cities and towns, or aid or supplement the powers conferred by the general laws appertaining to the creation and powers of cities and towns, or in connection with other powers conferred on cities and towns, authorizes them to grant exclusive privileges for the use of their streets for laying gas pipes and erecting poles, wires and towers therein by gas or electric light companies organized under the general laws for the creation of corporations. 3. A grant of exclusive privileges, the possession of which will enable the grantee to obtain a practical monopoly for a limited time of a business affecting the public interest and convenience, must be strictly construed against the grantee; and nothing passes thereby but such as is clearly intended. 4. The exclusive privileges granted by statute (section 30, p. 234, ‘McClellan’s Dig.) to corporations organized under the general laws for the creation of corporations in force prior to 1892 did not attach to a corporation so organized until it was put into successful operation, and where by its articles of association it was organized to engage in more than one kind of business, the fact that it erected a plant and engaged in one kind of business authorized by its charter, did not vest it with exclusive privileges as to other kinds of business in which it never engaged, , though authorized by its charter,so as to preclude the legislature from authorizing another municipal or private corporatin to engage in such business. 5- Where a corporation is by its charter authorized to engage in a business affecting the public interest and given exclusive privileges which tend to establish a monopoly, such grant of exclu-' sive privileges does not become a contract or vested right so as to.be protected from impairment by the State or Federal Constitution until the grantee has, to say the least, begun preparations or made some expenditures to perform tire service to the public which constitutes the consideration for the grant of the privilege. 6. Even if a city has power to grant the exclusive use of its streets for erecting poles, wires and towers for furnishing electric lights in the city, and in pursuance of this power grants such privilege by ordinance with a provision therein that the grantee shall not be required to furnish such lights until such time as it can make an annual profit of eight per cent on its investment, such ordinance does not become a contract, the obligation of which is protected from impairment by the contract clause of the state and federal constitution, so long as he guarantee fails to begin preparations for, or make expenditures toward erecting, a plant for furnishing electric lights. 7. Where a corporation authorized to construct, maintain and operate a gas plant and an electric light plant to supply gas and electric lights in a certain city whose charter declares that when organized and put into successful operation the company shall have exclusive privileges for the nurposes of its creation for the term of twenty years from the date it commenced to carry out in good faith the terms of its articles of incorporaion, proceeds to erect its gas plant and to supply gas in the city, but for more than ten years after its incorporation it and its successors and assigns in interest fail to erect an electric light plant as authorized by its charter, or to begin preparations for so doing, the Legislature may authorize the city to construct and operate an electric light plant for supplying the city and its inhabitants with electric lights; and legislation for that purpose does not impair the obligation of a contract with the corporation or its successors and assigns in violation of the state and federal constitutions.