Davenport Gas & Electric Co. v. City of Davenport

98 N.W. 892, 124 Iowa 22
CourtSupreme Court of Iowa
DecidedMarch 15, 1904
StatusPublished
Cited by10 cases

This text of 98 N.W. 892 (Davenport Gas & Electric Co. v. City of Davenport) 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
Davenport Gas & Electric Co. v. City of Davenport, 98 N.W. 892, 124 Iowa 22 (iowa 1904).

Opinion

Sherwin, J.-

1. mandatory ‘ 'ORDER: , demand. The trial court found, and it is conceded by the appellee here, that the provision of the ordinance for fixing the price of lights after the 1st of June, 1901, in case of a disagreement between the , . _ parties, was void. But the city was ordered to fix a fair and reasonable price for the service [27]*27for the five-year period following that date. At the time the amendment asking this order was filed, no demand therefor had been made upon the city, as required by section 4346 of the Code, but the city had long before that passed a resolution annulling the contract, and declaring that it would not thereafter pay for any lights furnished it thereunder. The city had also answered in this case, justifying its position, and insisting upon a decree sustaining its action in annulling the contract. It had not, however, until the filing of its last amendment, made any claim that the ordinance was ultra vires, or that the arbitration clause thereof was void. There was, then, no reason before this time why the plaintiff should ask for an order compelling the city to fix the rates; and when it became necessary by reason of the change in the issues no demand was required because of the previous action and .attitude of the city. The plaintiff and the court were justified in believing that the city was sincere in the matter, and, if it was, it would have been an idle thing to make a formal demand for an adjustment of the price by arbitration, particularly in view of the fact that the plaintiff had already accepted the rates and terms proposed by the city. 19 Am. & Eng. Enc. Law (2d Ed.) 761, and eases cited.

2. Ordinances: .partial Because this provision of the ordinance was void, it does not follow that no part of it can be sustained. It related solely to the method of fixing the price of the light, and did not inhere in the contract for the 7 , -, supply thereof so inseparably as to render an otherwise valid contract void. Cedar Rapids Water Co. v. Cedar Rapids, 118 Iowa, 234; Illinois Trust & Sav. Bank v. The City of Arkansas City, 76 Fed. Rep. 271 (22 C. C. A. 171, 34 L. R. A. 518.)

[28]*28.3. Cities: implied power. [27]*27The principal contention relates to the power of the city to make an exclusive contract for lights for the period of twenty-five years. The right given the plaintiff to use the public ways of the city for its poles, wires, mains, and [28]*28other appurtenances was not exclusive, and therefore no question as to the power of the city to grant an exclusive franchise for the use of such way is. before us. The city of Davenport has a special charter, which gives it the power to provide for lighting its streets, and the statutes in force at the time the contract was made gave all cities, including those with special charters, the same power. It is a familiar rule that municipal corporations have all of the power necessarily implied from the powers expressly given to them, and, the power being given to provide light for its streets,- necessarily implied the power to purchase the light of others, and to enter into a contract for such service. Levis v. City of Newton (C. C.) 75 Ned. Rep. 884. So far, then, as the naked power to contract for lights is concerned, it makes no difference whether it be implied or expressly given by statute.

4. Cities: power to contract for lights. It is contended, however, by the appellee, that such power was not only given by the statute, but that the statute went further, and gave the city the express power to contract for lights for twenty-five 'years. Chapter seventy-eight, page eighty, of the Acts of the Fourteenth General Assembly, authorized all cities, towns, and villages to construct, maintain, and operate waterworks “ for the purpose of supplying pure water to such corporations and the citizens thereof, for domestic and manufacturing purposes.” It was also provided, “ Or they may in their discretion authorize the construction, maintenance and operation of such works by individuals or corporations, on such terms as may be agreed upon.” The act also authorized the municipality or persons or corporations constructing such works to go beyond the corporate limits for the purpose of procuring a supply of pure water, and •gave the municipality jurisdiction over the territory so used, ■and over the stream or source of water supply, for five miles above the point from which the water was taken. The cities, towns, or villages were also given the power to condemn [29]*29and appropriate so much private property as shall be necessary for the construction and operation of said waterworks.” The purpose of the provisions of this act, to which we have already referred, was, without doubt, to enable cities and towns to secure water service for corporate and private use; and, if no further provision had been made therein, it is evident that the express power granted would by necessary implication have carried with it the power to contract for water for municipal purposes, otherwise one of the clearly expressed objects of the act would have been defeated. But the act contained another clause, which was as follows: Section 5. That whenever the right to build, maintain, and operate such works is granted to or conferred upon private individuals or incorporated companies by said cities, towns, and villages, they may make such grant to inure for a term, of not more than twenty-five years, and authorize such individual or company, so constructing such works, to charge and collect from each and every person supplied by them with water, such water'rent or rents as may be agreed upon between said person or corporation so building said works, and said city, town, or village granting such right, and such cities, incorporated towns, and villages are hereby authorized and empowered to enter into a contract, with said individual or company constructing said works, to supply said city, town, or village with water for fire purposes, and for such other purposes as may be necessary for the health and safety of such municipal corporations, and to pay therefor such sum or sums as may be agreed upon between said contracting parties.”

This expressly authorized the grant of the franchise for a period of twenty-five years, and expressly authorized the municipalities to contract with the person ■ or corporation to whom it was granted for their own water supply. If nothing further was intended by this latter provision than to confer the power to contract without reference to time, it was unnecessary, because of the power to be im[30]*30plied from the other express provisions of the act. Individuals or corporations might be authorized to construct such works “ on such terms ” as were agreed upon, and the grant to them might be for a term of not more than twenty-live years. The act applied to all cities and towns regardless of. population. In very many, if not in a majority, of them, the grant of a franchise followed by its use, while not exclusive in terms, would be so'in fact, because of the expense of the plant and the limited demand for water. Small cities and towns were unwilling then, as they are now, to incur the expense of installing and operating a plant of this kind.

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Bluebook (online)
98 N.W. 892, 124 Iowa 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davenport-gas-electric-co-v-city-of-davenport-iowa-1904.