Levis v. City of Newton

75 F. 884, 1896 U.S. App. LEXIS 2839
CourtU.S. Circuit Court for the Southern District of Iowa
DecidedAugust 18, 1896
DocketNo. 2,342
StatusPublished
Cited by9 cases

This text of 75 F. 884 (Levis v. City of Newton) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the Southern District of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levis v. City of Newton, 75 F. 884, 1896 U.S. App. LEXIS 2839 (circtsdia 1896).

Opinion

WOOLSON, District Judge.

As the hearing for injunction was had upon the bill, with affidavit of plaintiff sustaining the averments of facts therein, the substance of the bill should here be stated:

The defendant city of Newton is a municipal corporation (city of the second class) organized under the General Statutes of Iowa. In January, 1887, the city council of- said city duly enacted an ordinance (No. 129) providing that:

H. M. Vaughn and his assigns are hereby granted the right and privilege to place in the streets and alleys of the city of Newton poles for the purpose of supporting wires, and to place upon such poles such wires as may be necessary to transmit electric power and incandescent electric light; the placing of said poles to be subject to the advice and control of a committee to be appointed for that purpose by the city council: provided, that such poles and wires shall be placed in such a way as not to obstruct the free use of or travel over said streets and alleys in which the same shall be placed.

Sections 2 and 3 provide that, if any such poles or wires are so placed as jto interfere with such free' travel and use, Vaughn must, on written notice, change location of same, so same shall not so interfere, etc.; and if, being thus notified, he shall not immediately so change place of location, the city council shall so change same at his expense.

Sec. 4. The right and privileges hereby granted by this ordinance shall be permanent and perpetual.

[885]*885That forthwith, and relying on said ordinance, said Vaughn proceeded lo erect and build an electric light plant, set poles, string wires, etc., and on August 1, 1887, had such plant in operation, and was engaged in supplying light and power to the inhabitants of said city, the expenditure therefor and therein amounting at that, date to $12,500. On October 21, 1887, said Vaughn assigned, transferred, and set over to the Thomson-Houston Electric Company all Ids rights and privileges and franchises derived under said ordinance; and said grantee took possession of said plant, and operated same until March, 1890, when said company sold and transferred said electric light plant, and property, rights, franchises, and privileges, to the defendant Newton Electric Company, a corporation duly incorporated under the General Statutes of Iowa. As part of the consideration of said sale, said Newton Electric Company executed its promissory notes for $10,000, and, to secure same, executed a trust deed upon all Its plant, property, etc., plaintiff being named therein as trustee, which said notes are wholly unpaid. At the date of the enactment of above-named Ordinance No. 129, an electric plant was being operated in said city of Newton by a company known as the Newton Electric Light Company, with whom said city had previously contracted for furnishing electric lights for street purposes, — said .contract, by its terms, to continue until .January, 1890; and said last-named company did furnish electric light thereunder until April, 1888, when said company became insolvent, and assigned its said contract to said Thomson-Houston Company, wdiich last-named company connected its plant and wires with the wires of said Newton Electric Light Company, and proceeded to fill the said contract of street lighting. On April 16, 1888, the city council of defendant city of Newton ratified said assignment of said contract, and authorized said Thomson-Houston Electric Company to carry out said street-lighting contract; and the last-named company furnished such street lighting thereunder .until in January, 1890, using the plant, poles, and wires erected by said Vaughn under said ordinance, but expending in completing, etc., its plant for fully carrying out said contract, an additional sum of 81.000. About January, 1890, said city of Newton constructed a city electrical plant, for furnishing electric light and power to its streets, and also to the inhabitants of said city, in active competition with said electric company, and has since continued so to do. Haid city has a population of about 8,500, and electric lighting for the streets of said city is supplied by the city plant, while the private lighting by electricity is about evenly dividía! between said city plant and Unit of said Newton Electric Company. On March 80, 1896, the c.itv council of Newton passed an ordinance (No. 211) entitled

An ordinance to repeal Ordinance No. 129, and to require the removal of the poles and wires placed in ilie streets and alleys of the city of Newton thereunder, anil to prohibit the further erection of polos and wires in said streets and alloys.

By the first section of this ordinance, Ordinance No. 129, above given, is “hereby, in all respects, repealed.” Section 2 provides:

[886]*886That it shall he the duty of every person or corporation now maintaining poles in the streets and alleys of the city of Newton, and claiming to have erected the same under the said Ordinance No. 129, to remove the same from the said streets and alleys within ninety days after this ordinance shall take effect.

Section 3 provides that the ordinance shall take effect five days after its passage and publication, etc., and the bill avers due publication thereof.

The bill further alleges that the construction and operation of the electric plant now owned by said Newton Electric Company, and the occupation, under the provisions of said Ordinance 129, of the streets, etc., of the city with its poles and wires, were not for private use, but—

Only for public use, and for the supply of light and power to said city and all its inhabitants, equally, whenever, requested by them, and at just and reasonable rates; that said Newton Electric Company and its assigns have been at all times, and are now, able, ready, and willing to perform such public service upon just and reasonable terms of compensation; and that the solo design and purpose of said city of Newton in attempting to repeal said Ordinance No. 129 was and is to prevent competition with its own electric plant, to drive said Newton Electric Company out of the electric lighting business in said city, and to practically destroy, or render worthless, its plant, machinery, and appliances.

It is further alleged that said Newton Electric Company has no other assets or property than that included in the trust deed to plaintiff, and that the removal of said poles and wires from the streets and alleys of said city would destroy the only security held or attainable by plaintiff for the notes secured by his trust deed, and that said repealing ordinance is void, as (1) impairing the obligation of a, valid contract between the city and said Newton Electric Company, and between said city, said company, and plaintiff; as (2) depriving said company and plaintiff of their property without due process of law; as (3) denying said company and plaintiff the equal protection of the laws; and (4) taking said property for public use without compensation.

The issues presented on the hearing relate almost entirely to the right or legal power of the city of Newton to grant the franchise in said Ordinance No. 129 attempted. On the one hand, plaintiff contends that said ordinance granted to Vaughn and his assigns a valid, irrevocable franchise to use the streets of said city in the operation of the electric plant which was erected and put in operation under said ordinance.

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Cite This Page — Counsel Stack

Bluebook (online)
75 F. 884, 1896 U.S. App. LEXIS 2839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levis-v-city-of-newton-circtsdia-1896.