National Foundry & Pipe Works, Ltd. v. Oconto Water Co.

52 F. 43, 1892 U.S. App. LEXIS 1896
CourtU.S. Circuit Court for the District of Eastern Wisconsin
DecidedOctober 3, 1892
StatusPublished
Cited by20 cases

This text of 52 F. 43 (National Foundry & Pipe Works, Ltd. v. Oconto Water Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Foundry & Pipe Works, Ltd. v. Oconto Water Co., 52 F. 43, 1892 U.S. App. LEXIS 1896 (circtedwi 1892).

Opinion

Jenkins, District Judge.

The defendant corporation was organized under the laws of the state of Wisconsin for the sole purpose of constructing and operating a system of waterworks within the city of Oconto, and of supplying the city and its inhabitants water for protection against fires, and for domestic, manufacturing, and other purposes. Under the power granted by Rev. St. Wis. § 1780, it contracted with the municipal corporation for its requisite consent to the use of its streets for laying water pipes therein, and for supplying the city with water. This contract took the form of an ordinance adopted by the mayor and common council of the city, and its terms were accepted by the defendant corporation. The city therein contracted for the use of a designated number of hydrants, and of a proper supply of water for use in public buildings and fountains and for the extinguishment of fires, at a specified yearly rental to be raised by annual tax upon all the taxable property within the limits of the city. The maximum rates to be charged the inhabitants for the use of water were regulated and established by the ordinance, and the right was reserved to the municipality to purchase the waterworks plant at the expiration of ten years, or any subsequent term of five years, upon a valuation to be determined by arbitration.

The lien law of the state of Wisconsin, (Rev. St. Wis. § 8814,) so far as it is applicable, if at all, to the case in hand, is as follows: The first paragraph provides:

“Every person who * * * furnishes any materials * * * in or about the * * * construction * * * of any building, * * * any machinery erected or constructed so as to be or become a part of the freehold upon which it is to be situated, * * * or in digging or constructing any well, * * * shall have alien thereupon and upon the interest of the owner of such building, * * * machinery, * * * well, * * * in and to the land upon which the same is situated, * * * used, or designed for use, in connection with such building, * * * machinery, * * * well,- * * * not exceeding one acre.”

The third paragraph of the section provides:

“In case any person shall order or contract for the purchase of any machinery to be placed in or connected to or with any building or premises, and such person, not having an interest in such building or premises in or connected with which such machinery is placed, sufficient for a lien, as provided for in this chapter, to secure payment for such machinery, the person furnishing such machinery shall have and retain a lien upon such machinery, and shall have the right to remove from such building or premises such machinery, in ease there shall be default in the payment of such machinery when due, leaving such building or premises in as good condition as they were before such machinery was placed in or on the same.”

It is insisted for the complainant that, under the first paragraph of the section, it has a lien upon the waterworks plant, considered as an entirety, or, failing that, under the third paragraph, upon the pipe itself, as machinery.

It is contended for the defendant (1) that the lien laws refer only to [45]*45such property as can be levied upon by execution, and that its property, being such only as is appurtenant and essential to the use and enjoyment of its franchises, cannot be taken on execution, and is therefore not comprehended within the statute; (2) that the plant of a water company is, from considerations of public policy, exempted from the operation of the lien statute; and (3) that the plant is an entirety, and the pipe furnished is not “machinery,” within the meaning of the third paragraph of the statute.

1. I am satisfied that the case does not fall within the third paragraph of the section. The plant must be treated as an entirety with respect to any sale under judicial process. The defendant is a quasi public corporation. The apparatus by -which a whole city is supplied with water cannot be permitted to be dismantled and sold in fragments, upon the claims of those furnishing the divers parts of the complicated and extended machinery. Whether this pipe is or is not technically “machinery,” within the meaning of this third paragraph of the statute, it was sold with knowledge of the character of the defendant as a quasi public corporation,’ and with the design and intent that it should be permanently affixed to and incorporated with the plant as a part of an entire thing. The plant is the integer. The pipe, hydrants, pumping works, and well are integral parts. Separation of the parts would destroy the efficiency of the whole, working destruction to all interests concerned. The detached parts would prove of little value, the entire enterprise would be aborted, the interests of both creditor and debtor sacrificed, and the public interest unnecessarily imperiled. It cannot be assumed that it was the legislative intent that this third paragraph should include such structures. Indeed, this paragraph would seem to be applicable only when the purchaser of machinery has no interest in the building or premises in or connected with which such machinery is placed, sufficient for a lien. The statute is a declaration that in such case the attaching of personalty to realty shall not be effective to defeat the lien. The purchased machinery remains personalty, as between vendor and purchaser. Here the defendant had an interest in the premises under contract for a conveyance. The structure here is of the class of which canals, street railways, railroads, telegraph, telephone, electric light, and gas plants are examples, and can only be dealt with as an entirety. Gue v. Canal Co., 24 How. 257; Brooks v. Railway Co., 101 U. S. 443, 451; Meyer v. Hornby, 101 U. S. 728; Hammock v. Trust Co., 105 U. S. 77; Improvement Co. v. Wood, 81 Wis., 51 N. W. Rep. 1004; Fond du Lac Water Co. v. City of Fond du Lac,

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Bluebook (online)
52 F. 43, 1892 U.S. App. LEXIS 1896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-foundry-pipe-works-ltd-v-oconto-water-co-circtedwi-1892.