Boise City Artesian Hot & Cold Water Co. v. Boise City

123 F. 232, 59 C.C.A. 236, 1903 U.S. App. LEXIS 3982
Court of Appeals for the Ninth Circuit·Decided May 29, 1903·No. No. 864·Published·Cited by 8 cases

Opinion

GILBERT, Circuit Judge,

after stating the case as above, delivered the opinion of the court.

The defendant in error justifies its taking of the water of the plaintiff in error under the provisions of section 2711 of the Statutes of Idaho passed in 1887, which reads as follows:

“All corporations formed to supply water to cities or towns- must furnish pure, fresh water to the inhabitants thereof for family uses so long as the supply remains, at reasonable rates without distinction of person upon their demand therefor, and must furnish water to the extent of their means in case of fire or other great necessities free of charge. The rates to be charged for water must be determined by commissioners to be selected as follows: * * *#>>

This statute was taken from the laws of the state of California. By the courts of that state it had been construed as requiring water companies to furnish free of charge water for street-sprinkling purposes, flushing sewers, etc. Spring Valley Water Co. v. City, 52 Cal. 111; San Diego Water Co. v. City, 59 Cal. 517; Hawes v. Contra Costa Water Co., 5 Sawy. 287, Fed. Cas. No. 6,235.

The plaintiff in error contends' that the statute of 1887 confers upon the city of Boise no right to take water free from it or its predecessor, for the reason that they were protected by the franchise giv[235]*235en to the Eastmans. There can be no doubt that the grant of a privilege to lay water pipes and furnish the inhabitants of a municipality with water for a stated period of time, accepted and acted upon by the grantee thereof, is a grant of a franchise given in consideration of the performance of a public service, and is protected against hostile legislation by the state. New Orleans Gas Co. v. Louisiana Light Co., 115 U. S. 650, 6 Sup. Ct. 252, 29 L. Ed. 516; New Orleans Water Co. v. Rivers, 115 U. S. 674, 6 Sup. Ct. 273, 29 L. Ed. 525; St. Tammany Waterworks v. New Orleans Waterworks, 120 U. S. 64, 7 Sup. Ct. 405, 30 L. Ed. 563.

But had the Eastmans such a contract with the city as to come within the rule just cited? The ordinance of October, 1889, granted per-' mission to the Eastmans and to their successors in interest to lay and repair their pipes in the streets of the city, and to furnish water to the inhabitants thereof. No term was fixed for the duration of the privilege, and no contract was in terms made between the city and the grantees of the privilege. It is plain that the ordinance was either the grant of a license revocable at the will of the grantor, or, by'its acceptance on the part of the grantee, it became an irrevocable and perpetual contract. No middle ground is tenable between these two constructions. In the Constitutions of nearly all the' states it is provided that no exclusive or perpetual franchises shall be granted, and, irrespective of such constitutional limitation, it is clear, both upon reason and authority, that no municipal corporation, in the absence of express legislative authority, has power to grant a perpetual franchise for the use of its streets. The city of Boise was incorporated by the territorial legislature of Idaho on January 11, 1866. It was given power “to provide the city with good and wholesome water,” and to erect or construct “such waterworks and reservoirs within the established limits of the city as may be necessary or convenient therefor.” There can be no doubt that under this provision of its charter the city had the power to grant the use of its streets for a fixed reasonable period of time, either to an individual or to a corporation, for the purpose of furnishing a water supply to the inhabitants. It had no authority, however, to make a perpetual contract. A municipal corporation in • trusted with the power of control over its public streets cannot, by contract or otherwise, irrevocably surrender any part of such power without the explicit consent of the Legislature. Cooley’s Constitutional Limitations (2d Ed.) 205, 210; Dillon on Municipal Corporations, §§ 715, 716; Barnett v. Denison, 145 U. S. 135, 139, 12 Sup. Ct. 819, 36 L. Ed. 652. And legislative grants of powers to municipal corporations are to be so strictly construed as to operate as a surrender of the sovereignty of the state no further than is expressly declared by the language thereof. Charles River Bridge Co. v. Warren Bridge, 11 Pet. 426, 9 L. Ed. 773, 938; Syracuse Water Co. v. City of Syracuse, 116 N. Y. 167, 22 N. E. 381, 5 L. R. A. 546; Long Island Water Supply Co. v. Brooklyn, 166 U. S. 685, 696, 17 Sup. Ct. 718, 41 L. Ed. 1165; Stein v. Bienville Water Supply Co., 141 U. S. 67, 11 Sup. Ct. 892, 35 L. Ed. 622. From these principles and authorities it follows that the Eastmans were given no exclusive or perpetual right, and that the ordinance operated to grant them a license only, and left [236]*236the city free at any time to revoke the privilege granted, or to put in its own waterworks, or to grant a franchise to another company. The most that the licensees could claim under it was that it legalized their use of the- streets for supplying water, and gave them permission to occupy the same until such time as the city might see fit to termi- • nate the privilege. President, etc., Colby University v. Village of Canandaigua (C. C.) 96 Fed. 449. Such was the nature of the-right which the Eastmans in June, 1890, transferred to the Boise Waterworks Company. When that company was organized as it was under the general incorporation laws of Idaho, it found among the statutes of that state a law which must be read into its charter, and which required all corporations formed to supply water to cities or towns to furnish water to such cities or towns “to the extent of their means in-case of fire or other great necessities free of charge.” It was a corporation formed for the purpose described in that law. Did its possession of the rights which had been bestowed upon the Eastmans protect it from the operation of the statute? Conceding'that the city still possessed, notwithstanding this statute, the right to deal with the water company as it did, and to recognize the privilege so granted by its ordinance of October 3, 1889, as absolving the company from the obligation created by the statute—a proposition which may well be qttestioned—it still had, as we have seen, the right at any time to revoke the privilege so granted to the Eastmans, or to impose upon the corporation new duties, as the condition of its further exercise of the right to occupy the streets for furnishing water. We hold that it did impose such new obligations by its ordinance passed in March, igoo, granting to the Artesian Hot & Cold Water Company the right to lay pipes in the streets and to collect charges for water supplied to the inhabitants, but requiring it to furnish water for city purposes free of charge. It is immaterial that this ordinance was not requested by the corporation and was never accepted by it. There was nothing to prevent the city from imposing upon the corporation the obligations which the general statute imposed upon all corporations of a like nature.

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Boise City Artesian Hot & Cold Water Co. v. Boise City, 123 F. 232, 59 C.C.A. 236, 1903 U.S. App. LEXIS 3982 (9th Cir. 1903).

123 F. 232 (Boise City Artesian Hot & Cold Water Co. v. Boise City) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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