Owensboro v. Owensboro Water Works Co. of Owensboro

243 U.S. 166, 37 S. Ct. 322, 61 L. Ed. 650, 1917 U.S. LEXIS 2104
CourtSupreme Court of the United States
DecidedMarch 6, 1917
Docket79
StatusPublished
Cited by14 cases

This text of 243 U.S. 166 (Owensboro v. Owensboro Water Works Co. of Owensboro) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owensboro v. Owensboro Water Works Co. of Owensboro, 243 U.S. 166, 37 S. Ct. 322, 61 L. Ed. 650, 1917 U.S. LEXIS 2104 (1917).

Opinions

Mr. Justice Van Devanter

delivered the opinion of the court.

This is a suit to enjoin the City of Owensboro, in the State of Kentucky, from obstructing and preventing the maintenance and operation of an existing water works plant in that city. The plaintiff relies upon a franchise from the city which the latter insists has expired. In the -District Court the franchise was held to be still in force and the city was enjoined from giving effect to an ordinance and a resolution impairing the same.

By an ordinance of September 10,1878, the city granted to the Owensboro Water Company, its successors and assigns, the privilege of constructing and operating water works within the city and of using its public highways for that purpose. In its first section the ordinance described this grant as made “for the duration of the said Company” and in another section expressly limited it to “twenty-five years from the passage of this ordinance.” Other provisions required the water company to lay and maintain pipe lines in certain streets with a'fire hydrant at each street intersection and obligated the city to rent and pay for the hydrants “for and during the term of twenty-five years [169]*169from the passage of this ordinance.” Availing itself erf the privilege so granted the water company constructed a water works plant in the city and operated the'same until June 3, 1889, when it sold the plant to the Owensboro Water Works Company, the plaintiff in this suit. This company is a Kentucky corporation whose original articles of association stated that its existence was to begin on June 1, 1889, and terminate at the end of twenty-five years, “subject to such extensions of its term of existence as by law provided.” Op June 3, 1889, shortly before the plaintiff’s purchase, the city adopted an ordinance containing the following provision, among others:

“Sec. 1. That in consideration of the purchase by the Owensboro Water Works Company, of Owensboro, Kentucky, of the water works of the Owensboro Water Company, the franchise and license are hereby granted to the Owensboro Water Works Company, of Owensboro, Kentucky, and to its successors and assigns, for and during the existence of the said corporation, to maintain, complete and operate water works in the city of Owensboro for supplying the city of Owensboro and the inhabitants of said city and its vicinity with water for public and private purposes, and to use within the present and future limits of the city of Owensboro, the streets, alleys and other public highways thereof for the purpose of laying, repairing and -taking up. mains, service pipes, hydrants, and other apparatus for the supply of water.”

By the second section the city accepted the plaintiff “as the successor ” of the other company in respect of “the contract for hydrant rental” then existing between the city and the other company “as fully as if such existing contract had been originally made” by the city with the plaintiff “without the intervention” of the other company; and by the third section the city gave its consent to “the consummation of the said purchase of thé said water works.”

[170]*170The plaintiff accepted the provisions of this ordinance, relied upon them in consummating the purchase, and ever since has maintained and operated the water works and used the public highways of the city in that connection.

On May 6, 1914, the plaintiff’s articles of .association were amended, conformably to the state law (Ky. Gen. Stats. 1883, c. 56, § 7; Ky. Stats; 1903, §§ 540, 559, 574), by adding a provision the declared purpose of which was to extend the plaintiff’s corporate existence for the period of twenty-five years.

Whether the plaintiff now has a franchise from the city turns chiefly upon the construction and effect of the ordinance of June 3, 1889. By it the city then said that “the franchise and license” to maintain, complete and operate water works in the city and to use its public highways for that purpose “are hereby granted to the Owensboro Water Works Company, ■ of' Owensboro, Kentucky, and to its successors and assigns, for and during the existence of. the said corporation.” Now the city claims, first, that by the ordinan.ce it merely assented to the purchase by the plaintiff of the rights of the other company under the ordinance of 1878; second, that if a franchise was granted to the plaintiff, it was only for the life of the other company, and, third, that even if a franchise was granted to the plaintiff for the period of its own existence, it was not to endure beyond the primary term of twenty-five years named in the plaintiff’s articles of association. But none of these claims has any support in the ordinance. Its terms are direct and its meaning plain. In apt words its first section not only grants a franchise to the plaintiff, but makes the life of the franchise co-extensive /with the plaintiff’s existence; and we find nothing in the ordinance which suggests that the words fixing the duration of the franchise are to be taken as comprehending anything less than, the full corporate existence of the plaintiff. The right to extend its existence beyond the primary term was [171]*171given by statute and expressly reseryed in the articles of association, and so it is reasonable to believe that had there been a purpose to limit the franchise to that term it would have been plainly expressed, as was done in the ordinance of 1878. The reasonable implication from the inclusion of such a limitation in the earlier ordinance and its omission from the later one is that the franchise granted by the latter was not to be thus limited.

Of the suggestion that under this view the franchise may be made perpetual by repeated extensions of the plaintiff’s corporate life, it is enough to say that we are here concerned with but a single extension already effected. The statute permitting such extensions may not be in force when the present twenty-five year period expires, and, if it be in force, nothing may be done under it.

Because the primary term — the first twenty-five years —expired May 31, 1914, and the amendment to the articles of association stated that the extension for another twenty-five years would begin “from and after” June 1, 1914, the city insists there Was a hiatus of one day between the two periods and that in consequence the extension never became effective. We are not impressed with this contention. While in the computation of time that begins to run “from and after” a day named it is usual to exclude that day and begin with the next (Sheets v. Selden’s Lessee, 2 Wall. 177, 190), this is not done where it will obviously defeat the purpose of those whose words are being construed or applied. The purpose of the amendment was to extend or prolong the plaintiff’s cprporate existence for another twenty-five years. It was adopted almost a month in advance of the expiration of the first twenty-five years, and, notwithstanding the use • of the words “from and after,” it shows very plainly that the second period was to begin where the first ended. Of course those words were.not happily chosen, but as the amendment otherwise makes it certain that the extension was to be [172]*172effective on and after June 1, 1914, we think the amendment accomplished its purpose and that there was no hiatus.

By the ordinance of 1878, as before shown, the other company and the city entered into a contract respecting fire hydrants which was to be in force for twenty-five years from the date of the ordinance.

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Owensboro v. Owensboro Water Works Co. of Owensboro
243 U.S. 166 (Supreme Court, 1917)

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Bluebook (online)
243 U.S. 166, 37 S. Ct. 322, 61 L. Ed. 650, 1917 U.S. LEXIS 2104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owensboro-v-owensboro-water-works-co-of-owensboro-scotus-1917.