Marshalltown Light, Power & Railway Co. v. City of Marshalltown

103 N.W. 1005, 127 Iowa 637
CourtSupreme Court of Iowa
DecidedJune 14, 1905
StatusPublished
Cited by7 cases

This text of 103 N.W. 1005 (Marshalltown Light, Power & Railway Co. v. City of Marshalltown) 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
Marshalltown Light, Power & Railway Co. v. City of Marshalltown, 103 N.W. 1005, 127 Iowa 637 (iowa 1905).

Opinion

MoClain, J.

In June, 1892, a franchise was granted by tbe city of Marshalltown to A. T. Birchard, bis successors and assigns, to construct an electric street railway in tbe streets of the city. Tbe proposition to grant such a franchise was submitted to and approved by tbe electors of tbe city, and tbe ordinance was duly accepted by said Birchard and his assignee, tbe plaintiff in this action. Tbe ordinance contained tbe following provisions:

Section 8'. Whenever tbe said A. T. Birchard, bis successors and assigns shall make excavations upon tbe streets or alleys in tbe construction of said road, they shall put tbe street in as good repair as near as practicable as it was at tbe time of such excavation, but if said grantee, bis successors or assigns, shall desire to use cross ties and what is called a T ” rail, they may do so,- but where tbe said street is not paved they shall spike to the ties outside and inside tbe rails a strip of lumber four inches wide and of sufficient thickness to come within one-half inch from the top of tbe rail outside and inside; such strips to run tbe entire length of tbe railway and its switches where said streets are not paved and to be kept in good repair by said grantee, bis successors or assigns. But tbe said A. T. Birchard, his successor, assigns, [639]*639shall not in any case be required to pave, macadamize or make any improvement upon tbe streets, except as provided in this section.

Afterwards street car tracks were constructed by tbe plaintiff on tbe streets wbicb are referred to in these actions, and subsequently proper steps were taken by tbe city council to have said streets paved and tbe cost thereof taxed, as provided by law, to tbe abutting property owners and to tbe plaintiff. At tbe time this paving was authorized and provided for, wbicb was in 1902, tbe following statutory provisions, found in section 834 of the- Code, were in force and applicable to tbe defendant city:

All . . . street railway companies shall be required to make, reconstruct and repair all paving . . . between tbe rails of their tracks, and one foot outside thereof at their own expense, unless by ordinance of tbe city or by virtue of the provisions or conditions of any ordinance of tbe city, under wbicb said . . . ■ street railway may have been constructed or may be maintained, it may be bound to pave . . . other portions of said street, and in that case said . . . street railway shall make, reconstruct and repair tbe paving odf that part of tbe street specified by such' ordinance.

At tbe time tbe franchise was granted to plaintiff’s assignor, there was no statutory provision applicable to cities of tbe second class, to wbicb class tbe defendant city belongs, requiring street car companies to pay any portion of tbe cost for paving streets on wbicb their lines were located, and tbe two questions presented by these appeals are: First, whether tbe provision in tbe franchise granted to plaintiff’s assignor exempting him and bis assigns from any requirement to pave except as provided in that franchise constituted a contract wbicb could not be affected by tbe subsequent legislation imposing such liability on all street car companies; and, second, whether tbe provision in tbe ordinance granting tbe franchise, that Birchard and bis assigns should spike strips of lumber four inches wide along each side of tbe rails of tbe [640]*640street ear tracks, constituted a provision as to paving other portions of the street than those required by the statute to be paved by street car companies, so as to bring the plaintiff company within the exception contained in the statute in that respect. There is no other ordinance of the city than that granting the franchise to plaintiff’s assignor which contains any provision as to the portions of the street which street car companies may be required to pave.

1. Constitutional law: impairment of contracts; street of railways. I. As to the provisions of the franchise ordinance exempting plaintiff from any requirement as to paving except as provided therein, the argument for appellant is that it constitutes a contract which cannot be impaired by subsequent legislation, and that therefore the statutory provision already quoted is unconstitutional so far as it purports to impose any liability on appellant with reference to paving other than that contained in the ordinance. But this is no longer a debatable question. At the time the franchise was granted there was in force a statutory provision (section 1090 of the Code of 1873) which has been retained in the Code of 1897, as follows :

Section 1619. The articles of incorporaton, by-laws, rules and regulations of corporations hereafter organized under the provisions of this title, or whose organization may be adopted or amended hereunder, shall at all times be subject to legislative control, and may be at any time altered, abridged or set aside Ly law, and every franchise obtained, used or enjoyed, by such corporation may be regulated, withheld, or be subject to conditions imposed upon the enjoyment thereof, whenever the General Assembly shall deem necessary for the public good.

The construction of this provision was involved in a case where the city ordinance provided for assessing to a street railway company the cost of pgving between the rails, and the State statute subsequently required that such companies pay the expense of paving between the rails and for the space of one foot outside of the rails. Referring to the [641]*641provision already referred to as Code, section 1619, tbe court beld that tbe statutory extension of tbe liability of tbe street car company for paving was not in violation of any contract right of tbe company, and tbe court says: “ If the city bad made no provision in tbe original grant on tbe subject, tbe power of tbe State to impose tbe condition would hardly .be doubted by any one; but if tbe power is reserved to tbe State, it would not be tbe subject of contract between plaintiff [tbe street car company] and tbe municipality. Tbe State has not by any legislation on tbe subject delegated to tbe municipal corporations it has created any of tbe rights or powers reserved by tbe statute above.” Sioux City R. Co. v. Sioux City, 78 Iowa, 742. See, also, the opinion in another case of tbe same title, and involving tbe same question, 78 Iowa, 367. On appeal to tbe Supreme Court of tbe United States, Sioux City R. Co. v. Sioux City, 138 U. S. 98 (11 Sup. Ct. 226, 34 L. Ed. 898.), it was urged that the imposition of an additional burden as to paving impaired tbe obligation of tbe contract embodied in tbe ordinance granting to tbe street car company its franchise ; but tbe conclusions reached by this court were approved of in tbe following language:

Under section 1090 of the Iowa Oode (section 1619 of the present Code), tbe Legislature bad the power not only to repeal and amend the articles of incorporation of tbe company, but to impose any conditions upon tbe enjoyment of its franchise which tbe General Assembly might deem necessary for tbe public good. The reservation of this power was a condition of the grant. The city council could make no arrangement with the company which would not be subject, under that section, to tbe superior power of tbe General Assembly. . . . Moreover, the city derived from tbe State alone its power to grant a license to the company.

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Bluebook (online)
103 N.W. 1005, 127 Iowa 637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshalltown-light-power-railway-co-v-city-of-marshalltown-iowa-1905.