City of Tipton v. Tipton Light & Heating Co.

176 Iowa 224
CourtSupreme Court of Iowa
DecidedMay 10, 1916
StatusPublished
Cited by14 cases

This text of 176 Iowa 224 (City of Tipton v. Tipton Light & Heating Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Tipton v. Tipton Light & Heating Co., 176 Iowa 224 (iowa 1916).

Opinion

Gaynor, J.

The plaintiff is a municipal corporation; the defendant, a private corporation, organized under the laws of this state and authorized to build and operate an electric light and power plant in the plaintiff city, and was, at the times hereinafter mentioned, operating an electric light and power plant in said city.

On the 13th day of September, 1913, the plaintiff city regularly adopted and promulgated the following ordinance:

“Ordinance No. 75. Being an ordinance regulating and fixing the rent or rates for electric light, and regulating the use of light and power meters or other devices for determining consumption of electric light and power.
“Be It Ordained by the city council of Tipton, Iowa:
“See. 1. Any persons, firm or corporation supplying electric light to the inhabitants of the city of Tipton shall charge not to exceed 10 cents per kilowatt hour therefor, and no person, firm, or corporation shall charge, exact, or receive in excess of 10 cents per kilowatt hour for electric light supplied by them to any inhabitant of said city, provided, however, that such person, firm or corporation shall have the right to collect a minimum rate of 75 cents per month for each residence or place of business using said light.
“Sec. 2. No person, firm or corporation furnishing elec[226]*226trie light or power to the inhabitants of the city of Tipton shall charge, exact or receive any compensation for the use of electric light or power meters or other devices for the measuring of electric light or power.
See. 3. Any person, firm or corporation violating any of the provisions of this ordinance shall upon conviction thereof be punished by a fine of not less than $5 or more than $100.
‘ ‘ See. .4- This ordinance shall be effective from and after Oct. 1, 1913.
“Sec. 5. All ordinances or parts of ordinances in conflict herewith are hereby repealed.”

On the 8th day of December, 1913, there was filed in the office of the mayor of the plaintiff city an information, properly sworn to, charging the defendant with a violation of said ordinance, the information being in the words and figures following:

“The defendant, Tipton Light & Heating Company, is accused of charging, receiving and exacting meter rent for electric light meters, for that, on or about the 6th day of December, 1913, the .said defendant did, at and within the city of Tipton, Iowa, charge, exact and receive from one M. R. ¡Jackson the sum of 20 cents, as rent for one meter or instrument for measuring electric light current for the month of November, 1913, contrary to the ordinance in such cases made and-provided.”

The defendant appeared by its attorney and entered a plea1 of hot guilty. The cause was tried and submitted and defendant found guilty as charged, and, judgment having been entered against the defendant, it appealed to the district court. In the district court, the cause was retried and the defendant found guilty as charged, and judgment., entered that'he pay a fine of $50 and costs: From this it appeals to this court, and contends: (1) That the.plaintiff city had no authority, express or implied, to prohibit the defendant company from charging a reasonable rate as meter rent; [227]*227(2) that, if the statutes expressly conferred the power to prohibit meter charges for rent, there is no authority to impose a fine or imprisonment.. These are the only questions involved in this appeal which we think are proper for our consideration. The other questions raised may be disposed of under these two heads.

1. Municipal corporations : public utility rates: presumption. Section 725 of the Code of 1897 gives to cities such as this plaintiff the power to regulate the rates to be charged for services rendered by corporations such as this defendant, and reads as follows:

‘ ‘ They shall have power to require every . . . private corporation operating such works or plant, subject to reasonable rules and regulations, to furnish any person applying therefor, along the line of its pipes, mains, wires, or other conduits, with gas, water, light or power, and to supply. ;said city or town with water for fire protection, and with gas,' water, light or power for other necessary public purposes, and to regulate and fix the rent or rate for water, gas, light or power; to regulate and fix the rents or rates of water, gas and electric light or power; to regulate and fix the charges for water meters, gas meters, electric light or power meters, or other device or means necessary for determining the consumption of water, gas, electric light or power, and these:powers shall not be abridged by ordinance, resolution or contract.”

The right of-the State to delegate to municipalities the powers therein conferred is not questioned. The right of the city to exercise these powers when delegated is not questioned. There is no claim that the provisions of the ordinance fixing the rates are unreasonable. The passage of the ordinance is a legislative act. It is presumed to be reasonable until the contrary appears. That the defendant violated the ordinance is admitted.

[228]*2282. municipal corPORATIONS *. SSímS ■ charges: legality. [227]*227The first question then is: Was the passage of this ordinance a fair exercise of the delegated power of the city? The [228]*228first provision of the ordinance is not involved in this suit, nor is the right of the city to enact the provisions of the first section of the ordinance in Question.

It is claimed that the city had no power, even under this delegated authority, to prohibit the exaction of compensation for the use of meters or other measuring devices. This question we dispose of first.

This statute gives to cities the power to regulate and fix rates for water, gas, etc., and gives to it power to regulate and fix charges for gas meters, etc., used for determining the amount of water, gas, etc., consumed. That the legislature had power to regulate the rates and charges of corporations rendering public service cannot be questioned. That it had power to delegate this to municipalities or local boards cannot and is not to be questioned. It did delegate this power by express provisions. By express provision the legislature has delegated the right to regulate and fix the rents or rates that may be charged. In this is involved the right to fix a maximum and a minimum rate. In fixing these rates, due regard must be had to the fact that these corporations are entitled to reasonable remuneration for the services rendered. Within this limitation, the right to fix the rates is vested solely within the legislative power of the city. Courts have a right to inquire into the reasonableness of an ordinance, and every ordinance, to be valid, must be reasonable and just in its provisions to all the parties to be affected by its enforcement.

No question is here made as to the reasonableness of the ordinance in question. The franchise of the defendant, if any it had, is not before us. We have no way of knowing its provisions. It undertook to, and was, furnishing electricity for light and other purposes to the people of plaintiff city. Its business brought it within the purview of the statute hereinbefore cited.

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Bluebook (online)
176 Iowa 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-tipton-v-tipton-light-heating-co-iowa-1916.