Crawford Electric Co. v. Knox County Power Co.

86 A. 119, 110 Me. 285, 1913 Me. LEXIS 19
CourtSupreme Judicial Court of Maine
DecidedMarch 17, 1913
StatusPublished
Cited by4 cases

This text of 86 A. 119 (Crawford Electric Co. v. Knox County Power Co.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crawford Electric Co. v. Knox County Power Co., 86 A. 119, 110 Me. 285, 1913 Me. LEXIS 19 (Me. 1913).

Opinion

Cornish, J.

These cases were reported and argued together because they involve the same facts and the same propositions of law, and differ only in the form of the desired remedy.

The following facts appear in the agreed statement:

The Crawford Electric Company was organized under the general laws of the State on February 20, 1897, for the purpose of making, generating, selling, distributing and supplying gas or electricity, or both, for lighting, heating, manufacturing and mechanical purposes in various towns in Knox and Waldo counties, including the town of Union. It is the owner of buildings and water power in South Union purchased with a view to carrying out its chartered purposes, but has neither furnished electricity nor installed apparatus for that purpose.

[288]*288In 1911 the Knox County Power Company was also organized under the general law for the same general purposes in the same towns, but has taken no steps to carry the same into effect, and in its answer denies that it intends in any way to perform any of the purposes of its incorporation.

On November 8, 1911, Hollis M. Shaw, the other defendant, was granted, by the municipal officers of the town of Union, a permit to erect poles and string wires in all the streets and highways of the town for the purpose of lighting streets, ways and buildings and selling electricity for any and all purposes; and, being the owner of a water power, has since constructed an electrical plant and system, is occupying some of the public ways with his poles and wires, is “holding himself out as conducting an electric light and power plant and business in the town of Union, for supplying all who may wish to purchase the same, as any corporation organized for that purpose might do, and is supplying the public and individuals with electricity for lighting at a fixed tariff.”

Neither the Crawford Electric Company, nor the Knox County Power Company, nor Hollis M. Shaw, has any rights granted specially by the Legislature.

Under the answer of the Knox County Power Company disclaiming all intention to carry out its chartered purposes, and in the absence of any evidence to the contrary, it is not seriously contended by -the plaintiff that an injunction should issue against that corporation. The bill should therefore be dismissed as to the Knox County Power Company.

But upon the foregoing statement of facts, the plaintiff claims that both the bill and the quo warranto proceedings should be sustained against Hollis M. Shaw.

This sharply raises the question whether a corporation, organized under the general law, and having by its charter the right to supply electricity in a town, but never having exercised that right although existing for a period of fifteen years, can prevent an individual, who has a permit from the municipal officers, from maintaining his system in the public ways of the town and carrying on the general business of furnishing electricity for lighting, heating and mechanical purposes.

[289]*289It is our opinion that this question must be answered in the negative, and that the injunction prayed for should not be granted.

As between two corporations, the vested rights of the one first authorized are protected to a certain extent by statute. R. S., Chap. 55, Sec. 1, provides that “corporations for the purpose of making, generating, selling, distributing and supplying gas or electricity or both for lighting, manufacturing or mechanical purposes” may be organized under the general law. “But no corporation, so organized, shall have authority, without special act of the legislature, to make, generate, sell, distribute or supply gas or electricity, or both, for any purpose, in or to any city or town, in or to which another company, person or firm are making, generating, selling, distributing or supplying, or are authorized to make, generate, sell, distribute or supply gas or electricity or both.”

To illustrate: Had the Knox County Power Company attempted to exercise its chartered purposes in the town of Union, without authority therefor conferred by a special act of the Legislature, the plaintiff corporation as the one already authorized to carry on the same business, could have successfully asked for an injunction, even though it had not itself actually been engaged in the business. Authority in one company to supply gas or electricity, or both, in a certain territory, is prohibitive of the right of another company to supply either in the same territory unless by consent or by special legislative authority. Twin Village Water Co. v. Damariscotta Gas Light Co., 98 Maine, 323.

But such a prohibition does not extend to an individual. The statute is confined to corporations subsequently organized under the general law and without express legislative authority.

It is just at this point, however, that the plaintiff invokes the remedy of quo warranto in the name of the ‘State, on the ground that Mr. Shaw is usurping two public franchises, one in supplying a public utility, and the other in occupying the public streets and ways of Union with his poles and wires. On the same grounds and independent of any statutory prohibition, the plaintiff insists upon its remedy by injunction.

These contentions on the part of the plaintiff raise the issue whether a private individual, without special legislative authority, has the legal right to generate and sell electricity for public and [290]*290private purposes and to light the streets of a town provided he has a legal permit from the municipal officers to erect and maintain his system of poles and wires along the public highways.

The plaintiff’s position, reduced to a syllogism, is this:

(1) . An individual has no legal right, without special permission or authority, to exercise any privileges or functions belonging solely to sovereignty and which are usually called franchises.

(2) . To supply electricity for public and private purposes, charging therefor, and to occupy the streets of a town with poles and wires is a privilege belonging solely to sovereignty.

(3) . The defendant Shaw is so supplying and occupying and therefore is usurping a public franchise and has no right to continue in the usurpation.

The fallacy lies in the minor premise. The word “franchise” has been defined in various terms, and with greater or less precision. Not infrequently, the courts have differed in their views of what a franchise, speaking discriminatingly, is, and have confused mere rights and powers, which belong to corporations and individuals alike, w-ith franchises which inhere in and must emanate from sovereignty alone.

For instance, the corporation itself is often termed a franchise. “A corporation is itself a franchise belonging to the members of the corporation, and a corporation, being itself a franchise, may hold other franchises, as rights and franchises of the corporation.” Pierce v. Emery, 32 N. H., 484, 507. “The right to be and to d'o business as a corporation is a franchise. The power to exercise such a franchise is one of the most important a corporation can acquire.” Iron Silver Min. Co. v. Cowie, 31 Colo., 450; 72 Pac., 1067. The same definition is applied in Cedar Rapids Water Co. v. Cedar Rapids, 118 Iowa, 234; 91 N. W., 1081.

On the other hand, in Wood on Railroads, 2nd Ed., Vol. 1, Sec.

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Bluebook (online)
86 A. 119, 110 Me. 285, 1913 Me. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crawford-electric-co-v-knox-county-power-co-me-1913.