Gas Service Co. v. Consolidated Gas Utilities Corp.

65 P.2d 584, 145 Kan. 423, 1937 Kan. LEXIS 334
CourtSupreme Court of Kansas
DecidedMarch 6, 1937
DocketNo. 33,243
StatusPublished
Cited by19 cases

This text of 65 P.2d 584 (Gas Service Co. v. Consolidated Gas Utilities Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gas Service Co. v. Consolidated Gas Utilities Corp., 65 P.2d 584, 145 Kan. 423, 1937 Kan. LEXIS 334 (kan 1937).

Opinion

The opinion of the court was delivered by

Smith, J.:

This is an original proceeding in quo warranto. By it plaintiff seeks to have defendant gas company ousted from occupying certain streets and alleys in defendant city, now occupied by it for the distribution of domestic' gas, and asks that certain resolutions under which the defendant gas company claims to have acquired, a.franchise to .distribute gas in the city be held void. After defendant gas company answered the petition, the city on its own motion was permitted to intervene. The defendant gas company ■ also asked that the city be-made a party defendant. Thereupon the plaintiff filed a motion to strike portions of the answers and also a motion for judgment on the pleadings. The action is before this court now for a decision of questions of law raised by these motions. The decision of these motions will settle the controversy.

■ Plaintiff and its predecessors have for many years owned and operated a gas distribution system in Wichita. There is no question ■as to the validity of the franchise ordinance under which it is operating. This franchise by its terms requires plaintiff to furnish gas for all purposes to the city and all residents thereof.

In March, 1925, the city granted to a predecessor of defendant a franchise to operate a natural gas distribution plant on certain streets designated therein for the purpose of selling natural gas to industrial consumers only. This franchise ordinance was No. 8724. There is no question in this action as to the validity of this ordinance.

On May 6, 1929, the city amended ordinance No. 8724 by inserting the words “and domestic” in section 1 thereof. Thereby de[425]*425fendant was given the privilege of selling gas to domestic consumers as well as industrial consumers along the streets designated in ordinance No. 8724. This ordinance is No. 10-306. There is no contention in this action that ordinance No. 10-306 is invalid.

After the passage of ordinance No. 8724 the franchise was assigned to the Wichison Industrial Gas Company. This company applied to the public service commission for a certificate of convenience and necessity. The Wichita Gas Company, a predecessor of plaintiff, resisted the granting of this certificate before the commission. When it was granted the Wichita company appealed to the district court of Shawnee county. That court sustained the commission. The gas company then appealed to this court, where the judgment of the trial court was affirmed. (See Kansas Gas & Electric Co. v. Public Service Com., 122 Kan. 462, 251 Pac. 1097.)

After the passage of ordinance 10-306 amending ordinance 8724 so that the Wichison company could sell gas to domestic consumers as well as industrial consumers in the limited territory covered by ordinance No. 8724, the Wichison company applied to the public service commission for a certificate of convenience and necessity to sell domestic gas. The Wichita company resisted this application. After the certificate was granted the Wichita company appealed to the district court of Sedgwick county. That court sustained the commission. From that judgment an appeal was taken to this court, where the judgment of the lower court was affirmed. (See Wichita Gas Co. v. Public Service Com., 132 Kan. 459, 295 Pac. 668.) For the purpose of clarity only, the thirty-seven subsequent enactments will be herein designated as resolutions.

Subsequently the city passed thirty-seven resolutions at different times, each one extending somewhat the territory described in ordinances 8724 and 10-306. Each of these resolutions was read but once before the governing body of the city and was published but once.

The last resolution covered a section of the city a half mile north and south and two miles east and west in the better residential portion thereof. It was passed June 29, 1936. This was resolution No. 11-641.

Subsequent to the granting of the certificates of convenience and necessity already referred'to no applications were made to the commission for any further certificates. In October, 1935, defendant, in connection with its acquisition of properties formerly owned by [426]*426the Wichison company, filed an action with the commissioner for a certificate permitting the transfer of: these properties. Neither the plaintiff nor its predecessor contested the granting of this certificate.

The .Wichison company and its predecessors have laid pipe in the streets in the various sections of the city described in the thirty-seven resolutions referred to and are serving customers there.

After the passage of resolution No. 11-641, plaintiff notified defendant that this resolution was without effect and that plaintiff intended to contest the right .of defendant to operate in the territory described in it. Immediately after the passage of the last-named resolution defendant proceeded at once to lay its pipe in the territory described.

The controversy arises on account of certain provisions of G. S. 1935, 13-2801. That section provides, in part, as follows:

“The board of commissioners of any city governed and controlled by the provisions of this act may permit any person, firm or corporation to manufacture, sell and furnish, artificial or natural gas; light and heat ... to the inhabitants . . . and may permit . . . the laying of pipes, conduits . . . and all appliances necessary for the construction and operation of gas . . . plants . . . over and along the streets and alleys of such city, upon the express conditions hereinafter imposed, and not otherwise, in this act, to wit:
“First. All contracts granting or giving any such original franchise, right, or privilege, or extending or renewing or amending any existing grant, right, privilege, or franchise, shall be made by ordinance, and not otherwise.
“Sixth. No such right, privilege or franchise shall ever be granted until the ordinance granting the same shall have been read in full at three regular weekly meetings of the board of commissioners, and immediately after its final passage it shall be published in the official city paper once a week for three consecutive weeks; and such ordinance shall not take effect and be in force until after the expiration of sixty days from the date of its final passage. If, pending the passage of any such ordinance or during the time intervening between its final passage and the expiration of sixty days before such ordinance shall take effect, ten percent of the legally qualified voters of such city voting for mayor at the last preceding city election shall present a petition to the board of commissioners asking that such franchise ordinance be submitted for adoption to popular vote, then it shall be the duty of the mayor of such city to issue a proclamation calling a special election for such purpose. ... If, at said special election, the majority of votes cast shall be for said ordinance and the making of said grant, the same shall- thereupon become effective; but if a majority of the votes cast at said special election shall be against the said ordinance and the making of said grant, said ordinance shall not confer any rights, powers or privileges of any kind whatso[427]*427ever upon the applicants therefor, but shall be, ipso facto, absolutely null and void.
“Seventh.

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Bluebook (online)
65 P.2d 584, 145 Kan. 423, 1937 Kan. LEXIS 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gas-service-co-v-consolidated-gas-utilities-corp-kan-1937.