Littleton v. Mayor of Hagerstown

132 A. 773, 150 Md. 163, 1926 Md. LEXIS 18
CourtCourt of Appeals of Maryland
DecidedMarch 9, 1926
StatusPublished
Cited by8 cases

This text of 132 A. 773 (Littleton v. Mayor of Hagerstown) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Littleton v. Mayor of Hagerstown, 132 A. 773, 150 Md. 163, 1926 Md. LEXIS 18 (Md. 1926).

Opinions

Adkins, J.,

delivered the opinion, of the Court.

The bill of complaint in this, case was filed in December, 1922, by appellants as taxpayers of Hagerstown, against the Mayor and Council of Hagerstown and the board of street commissioners. The bill alleges that the said city, under the management and control of said board, is now, and has been for a number of years last past, manufacturing electric current for the lighting of the streets and avenues, of said city, and for the commercial purpose of selling said current to the residents of said city for lighting and power purposes; that under and by virtue of an alleged authority conferred by chapter 40 of the Acts of 1920, the Mayor and Council of Hagerstown has directed and authorized the said board of street commissioners to erect a new electric light plant in Hagerstown, designed and intended for the manufacture of electricity for other than municipal purposes, to wit, for the sale to the residents and citizens, of Hagerstown for lighting and power purposes, without having first obtained from the Public Service Commission of Maryland a, certificate of authority therefor, and is about to issue and offer for sale bonds to the amount of $300,000 for the purpose of the erection of said plant, without having first obtained a certificate of authority therefor from said commission; that the said board is about to make contracts for the erection of said new plant for the purposes aforesaid; that neither said city nor said board was given authority to build, maintain, or operate said new plant for manufacturing electric current for lighting other than for municipal purposes, without first having obtained a, certificate of authority from said commission, by said Act of 1920, nor by any other Act of the Gen *166 eral Assembly, but under chapter 180' of the Acts of 1910, and amendments subsequent thereto, they are required to obtain such certificate in order to build, maintain or operate an electric light plant, for supplying light for other than municipal purposes; that neither the said Mayor and Council of Hagerstown, nor the said board, has applied for or intends to apply for such certificate; that the building of such plant, or the making of such contracts, or the issuing of said bonds, without such certificate, will increase the burden of complainants and all other taxpayers of Hagerstown, and will be an illegal and unwarranted exercise of power. The prayer of the bill is for injunction and for further relief.

The defendants’ demurred and the demurrer was overruled. On appeal the order overruling the demurrer was affirmed at the April term, 1923. Mayor and Council of Hagerstown v. Littleton, 143 Md. 591. But it was held that the injunction should be dissolved on the obtaining by the city of a certificate of authority from the Public Service Commission.

The only provision in the original act (Acts 1910, chapter 180), creating the Public Service Commission, applicable to municipally owned gas and electrical works, was contained in section 441 of article 23 of the Code of 1912, as follows:

“No municipality, except the Mayor and City Council of Baltimore, shall build, maintain and operate for other than municipal purposes, any works or systems for the manufacture and supplying of gas or electricity for lighting purposes without a certificate of authority granted by the commission. If the certificate of authority is refused, no further proceedings shall be taken before the commission, but a new application may be made therefor after one year from the date of refusal.”

But in 1914 a new section, 413A, was added to article 23 of the Code, which provided that:

“Every municipal corporation of the state engaged in the business of manufacturing and supplying, or of supplying gas and electricity for other than municipal purposes shall be included in the terms ‘Gas Corpora *167 tion’ and 'Electrical Corporation’ as defined in the next preceding section of this sub-title, and shall be subject, as other gas and electrical corporations are, to the provisions of this sub-title.”

That amendment, of course, made applicable to municipal corporations, furnishing gas and electricity for other than municipal purposes, sections 445 and 448 of article 23 of said Code, as well as section 447. Section 445 (section 388, article 13, Code 1924) gave the commission supervisory and regulatory powers.

Section 448 (section 392 of article 23, Code 1924) provided for the issue of bonds by an electrical corporation "when necessary for the acquisition of propei’ty, the construction, completion, extension or improvement of its plant or distribution system,” on securing1 from the commission an order authorizing such issue.

The decision in Hagerstown v. Littleton, supra, affirming the order of the lower court granting an injunction, was based on these provisions.

Pursuant to that decision application was made to the commission for authority to issue the bonds and was refused for reasons set out in a very able opinion. This was in December, 1923. Shortly thereafter the Legislature of 1924 passed an act, chapter 48 of the Acts of that year, repealing and re-enacting with amendments said sections 413A and 447, the only changes being1 that to section 413A were added these words:

“except that the provisions of sections 445 and 448 of article 23 of the Annotated Code of Maryland (Code 1912) shall not apply to such municipalities as owned, operated and maintained on and prior to the date of the creation of the Public Service Commission, and presently own, operate and maintain a gas or an electrical plant devoted in whole or in part to the supplying of the inhabitants of such municipalities with gas or electricity, for lighting or power purposes, nor shall said sections 445 and 448 apply to the Mayor and Council of Hagerstown, nor to such municipality or munici *168 palities having a -population in excess of 20,000, and an assessable basis in excess of $15,000,000, when the majority of voters of such municipality or municipalities shall vote in favor of municipal ownership of lighting or power plant.”

And in section 447 were incorporated just before the last sentence: “Provided, however, that this section shall not apply to such municipalities as owned, operated 'and maintained,” etc., as in the exception quoted above. The amendment to this section also permitted, in event of refusal of an application, a new application to 'be made in six months instead of twelve. It was also provided “that in the event any part of provision of this act be held invalid, the same shall not affect in any way the validity of the remaining parts and provisions.”

In the same year the Legislature passed another a'ct, chapter 380, which recites chapter 40 of the Acts of 1920, and authorizes the issue of $300,000 of bonds in lieu of those authorized by the earlier act, the proceeds of which to be used for constructing, erecting and maintaining a city electric light plant for Hagerstown, using such portions of the old plant as may be advantageous and to remodel the entire distribution system of the city light plant.

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Cite This Page — Counsel Stack

Bluebook (online)
132 A. 773, 150 Md. 163, 1926 Md. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/littleton-v-mayor-of-hagerstown-md-1926.