Circleville Light & Power Co. v. Buckeye Gas Co.

1 Ohio Law Rep. 793, 69 Ohio St. (N.S.) 259
CourtOhio Supreme Court
DecidedDecember 8, 1903
StatusPublished

This text of 1 Ohio Law Rep. 793 (Circleville Light & Power Co. v. Buckeye Gas Co.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Circleville Light & Power Co. v. Buckeye Gas Co., 1 Ohio Law Rep. 793, 69 Ohio St. (N.S.) 259 (Ohio 1903).

Opinion

The plaintiff in error claims the exclusive right to furnish the city of Circleville and its inhabitants with gas for illuminating-purposes, and pleads an ordinance passed by the council of said city, and the plaintiff’s acceptance thereof, as the contract upon which it rests its claim. The ordinance was passed on August 12, 1891, and was to be in force as a contract until March 2, 1896.

It also pleads, for some purpose no doubt, that by another ordinance passed about the same time, it obtained the right and privilege of furnishing the said city and its inhabitants with electric light, for public and private buildings, the streets and other public ways. The petition is silent as to the price to be charged for such light, and also as to the duration of the contract.

But it is plainly disclosed in the petition that its contract with the city for the furnishing of gas is the accepted ordinance of August 12, 1891, which fixed the charges for light at $1.50 per 1,000 cubic feet per month, for all amounts less than 10,000 cubic feet; and for heat and power at $1.00 per 1,000 cubic feet per month. It is expressly provided in this ordinance so plead [797]*797tbat its obligation extends to March 2, 1896. The second section provides—

‘ ‘ That upon the filing by the said gas company in the office of the clerk of the corporation of its written acceptance of the terms of this ordiance within ten days of the taking effect of this ordinance, the same shall then be and become a binding contract between the said gas company and the said city for the period aforesaid, and said company shall not be required to furnish gas at a less price during said period of time so agreed upon. ’ ’

It seems, therefore, that while the plaintiff had a franchise ordinance authorizing it to use the streets and other public ways and places, for the laying and maintaining pipes for the purpose of supplying the city and its inhabitants with gas for light and heat, the contract as to the terms upon which it could operate the plant and furnish the gas expired on March 2, 1896, over five years prior to the filing of plaintiff’s petition in this case.

As found in the statement of the case, the petition discloses this fact, but it alleges that the plaintiff company complied with the terms of said ordinance during the term prescribed, and has ever since continued to furnish gas according to the same charges, and that the city and its inhabitants have continued to use and pay for the gas according to the terms of said ordinance.

.There has been no renewal or extension of the ordinance of August 12, 1891, in the manner and under the form prescribed by law, or at all, and while the city and the citizens may be liable to pay for what it receives from the plaintiff, its right to enjoin another company from furnishing even the same kind of gas is a very different question. To entitle it to this extraordinary remedy, the standing of the plaintiff should be unequivocal, and disclose vested rights of contract about to be invaded to its special injury, and upon which it can appeal to a court of equity for protection.

Under what obligation is either the city or its inhabitants to continue taking and paying for plaintiff’s gas? May not either cease to patronize the plaintiff at the end of any month? And if there is not a continuing obligation or contract between the parties, why may not some other .company or person solicit the former customers of the plaintiff and furnish them with gas [798]*798for illuminating purposes? Will a court of equity forbid it? The plaintiff has no contract with the city. Its rights are, at best, but transitory, and yet it seeks a perpetual injunction against the defendant to exclude it from lighting the city. These are threshold questions and closely involve the plaintiff’s standing in court.

The demurrer challenges the petition in which the foregoing facts clearly appear, and where is the subsisting contract with the plaintiff that should be protected by the provisions of Section 3551, Revised Statutes? There is none, and the plaintiff in error fails to show a right to the relief prayed for.

We now come to the controversy presented in the briefs. The plaintiff furnishes manufactured gas, and the defendant company, obtained, by ordinance duly accepted, the right to pipe streets and other public ways of the city of Cireleville for the purpose of supplying natural gas for fuel, to the city and its inhabitants. This ordinance was passed on March 20, 1895, and the term of its operation is fixed at ten years from the taking effect of the ordinance. In addition to furnishing natural gas for fuel, it is alleged that the defendant is furnishing that gas for illuminating purposes to the city and its inhabitants, without having obtained the right to do so by a vote of the qualified voters of the city as required by Section 3551, Revised Statutes. That section provides:

“The municipal authority of any city or village, or the trustees of any township, in which any gas or water company is organized, may contract with any such company for lighting or supplying with water the streets, lands,- lanes, squares, and public places in such city, village, town, or township; but no such company shall go into operation in any city or village where such a corporation has been already formed, or is hereafter formed, until after the question of authorizing such operation has been submitted to the qualified voters of such city or village, and authorized by ordinance.”

It is alleged that defendant company did not obtain the right to go into operation for furnishing natural gas for lighting purposes by a vote of the people, and therefore its proceedings in that respect are in violation of the above statute, because there is an established existing company — the plaintiff — already formed in the city, for the purpose of supplying it and its people with gas lighting.

[799]*799Does tbe word ‘\gas” as used in tbe section, embrace natural gas? Or, does it mean tbe artificial or manufactured gas which alone was then in use for illuminating purposes? The plaintiff asserts that the word, as there used, is generic, and not confined to any species of gas, but includes any' ‘ gas. ’ ’ Therefore it maintains that a natural gas company can not go into operation as a competitor with plaintiff without being authorized by a vote of the citizens. On the contrary, the defendant contends that the Legislature, when it made the provision involved, had in mind and intent the “gas” which was then known and.in commercial use.

The original section, as found in Swan & Oritchfield’s Statutes, Yol. 1, p. 300, Sec. 54, contained no provision requiring a vote of the people to authorize a second gas or water company to go into operation. The section was amended April 18, 1874, and the present restriction was thereby made (see Ohio Laws, Yol. 71, p. 93). The original section was adopted more than a half century ago when natural gas for commercial use was unknown in this state. As a matter of common knowledge it was not known as an article of commercial use in Ohio when the above amendment was adopted in 1874, and could not have been in contemplation when the legislation now found in Section 3551, Revised Statutes, was enacted. The existing subject matter of a statute is as important and proper in. its construction as it is in construing contracts between parties.

This view is strengthened by reference to Section 2491, Revised Statutes, as found in the revision of 1880.

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Bluebook (online)
1 Ohio Law Rep. 793, 69 Ohio St. (N.S.) 259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/circleville-light-power-co-v-buckeye-gas-co-ohio-1903.