Etowah Light & Power Co. v. Yancey

197 F. 845, 1911 U.S. App. LEXIS 5447
CourtDistrict Court, E.D. Tennessee
DecidedOctober 17, 1911
DocketNo. 1,632
StatusPublished
Cited by2 cases

This text of 197 F. 845 (Etowah Light & Power Co. v. Yancey) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Etowah Light & Power Co. v. Yancey, 197 F. 845, 1911 U.S. App. LEXIS 5447 (E.D. Tenn. 1911).

Opinion

SANFORD, District Judge.

[1] 1. It is clear that the complainant is organized as a corporation under chapter 245 of the Tennessee Acts of 1909, p. 825, and not under chapter 127 of the Tennessee Acts of 1909, p. 449.

Chapter 245 provides’ for a charter of incorporation “for the purpose of constructing, putting in operation, equipping, and maintaining .a system of waterworks and electric lighting plant and ice plant under one and the same charter,” etc. (section 1). Chapter 127 provides’for the incorporation of “water and electric light, heat and wa[847]*847ter power companies” (section 1), and provides for a form of charter setting out in detail the purposes of the company. The charter of the petitioner does not purport to set out its corporate purposes as provided in said chapter 127, and contains no reference to heating- and water power, which are two of the purposes provided for in chapter 127. On the contrary it does state the purpose to be to maintain a system of waterworks and electric lighting and ice plants, which are the specified corporate purposes under chapter 245; and in stating its corporate purposes, it sets out in substantially the very words of the Act the corporate purposes provided for by chapter 245. In short it is entirely plain that it is organized as a waterworks, electric lighting and ice company under chapter 245, and not as a water, electric light, heat and water power company under chapter 127.

The fact that there has been an attempt to insert in the charter of this waterworks, electric light and ice company certain powers given to water, electric light, heat and water power companies under chapter 127 obviously cannot change the result. The test is not the powers which the applicants have assumed to take in the charter, but the corporate purpose, that is, whether its corporate purposes are those provided for by chapter 245 or those provided for by chapter 127. It is entirely clear to my mind, as stated, that the corporate purposes are those provided for by chapter 245 and not those provided for by chapter 127, and that the validity of its charter must depend upon the validity of chapter 245 of the Acts of 1909.

[2] 2. The first ground of demurrer is that section 245 of the Acts of 1909, which is local and qualified upon its face, did not apply to McMinn County, Tenn., at the time of its passage or at the time the petitioner was organized in McMinn County. Section 2 of this Act provides that it shall apply only to counties having a population of not less than 20,920 and not exceeding 22,117, or a population of not less than 39,400 and not exceeding 39,450, according to the federal census of 1900 or any subsequent federal census. At the time of its passage it applied under the census of 1900 only to Lauderdale, Sevier and Gibson Counties and did not apply to McMinn County. The demurrant insists that it did not apply to McMinn County under the federal census of 1910 when the petitioner was incorporated because the fact that McMinn County, under the federal census of 1910, had a population of 21,046 so as to bring it within the Act had not then been certified by the director of the federal census to the clerk of the county court. I do not think this ground of demurrer is well taken. If in fact the federal census had been taken and under that census the provisions of the Act had become applicable to McMinn County, such applicability cannot be defeated by reason •of the fact that the supervisor of the census had not sent a certificate of the population to the clerk of the county court, there being nothing in the Act requiring such certificate as a condition of applicability.

[3] 3. The second ground of demurrer is that chapter 245 of the Acts of 1909 under which petitioner attempted to be organized, is unconstitutional, null and void. The first ground of unconstitution[848]*848ality relied on is that this Act violates article 11, § 8, of the Tennessee Constitution in attempting to grant certain- individuals rights, privileges and immunities not granted to other members of the community, and conferring extraordinary benefits upon an arbitrary class. This objection is, in my opinion, well taken. This Act, which is of a somewhat extraordinary character and very inartificially phrased, purports to confer upon all persons, firms, partnerships, copartnerships and chartered corporations within towns, cities and villages in the State of a population of not. more than 5,000 inhabitants according to any federal census, the right to take out a charter of incorporation for a waterworks, electric light and ice plant under the same charter, provided these provisions shall only apply to counties having a population between the two narrow limits above stated. This Act contains two apparent limitations upon the organization of such waterworks, electric light and ice companies: first, that the applicants must be persons, firms, partnerships, copartnerships or chartered corporations within towns, cities or villages having a population-of not more than 5,000 -according to the federal census; and, second, that the corporation itself can only be incorporated within counties of the limited populations above set forth. I am unable to avoid the conclusion that as a matter of sound construction the right to form such corporations is limited to persons, partnerships, corporations, etc., within towns of the population above stated, with the further limitation that the provisions of the Act apply only within counties having the narrow limits of population above set forth. I am further unable to avoid the conclusion that such a classification is entirely arbitrary, and that this legislation, in so far as it grants the right of forming such corporations only to persons within towns not exceeding the population specified and lying within counties within the narrow limits of population specified, is in violation of the first clause of article 11, § 8, of the 'Constitution of Tennessee, which provides that the Legislature shall have no power to pass any law granting to any individuals rights, privileges, immunities or exemptions other than such as may be by the same law extended to any member of the community who may be able to bring themselves within the provisions of such law. While citizens may be classified under this article, such classification must be natural and not arbitrary or capricious.' In an elaborate review of the Tennessee cases arising under this provision of the Constitution made by the learned special Judge Baxter in Stratton Claimants v. The Morris Claimants, 89 Tenn. 497, 524, 15 S. W. 87, 12 L. R. A. 70, it was stated that none of the legislative classifications of citizens which have been sustained by the Supreme Court of Tennessee were arbitrary in character, but that every one of them were made either for purposes of taxation, for police purposes, for the necessary protection of the particular class, or for the release of a class from some particular obligation or liability, No ground for the classification made tinder this Act appears to the court. No reason is even suggested in argument why persons, partnerships, etc., in towns of this size, in counties of this particular size, should have the right to form a corporation for waterworks and [849]*849electric light and gas plants under one charter, which is not conferred-upon persons, partnerships, etc., in other towns and in the other counties of the State. The classification appears to be entirely arbitrary. For that reason it must be held that this Act violates the first clause of article 11, § 8, of the Constitution of Tennessee, and is hence unconstitutional and void.

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Bluebook (online)
197 F. 845, 1911 U.S. App. LEXIS 5447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/etowah-light-power-co-v-yancey-tned-1911.