Palmer v. City of Liberal

64 S.W.2d 265, 334 Mo. 266, 1933 Mo. LEXIS 661
CourtSupreme Court of Missouri
DecidedDecember 20, 1933
StatusPublished
Cited by5 cases

This text of 64 S.W.2d 265 (Palmer v. City of Liberal) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Palmer v. City of Liberal, 64 S.W.2d 265, 334 Mo. 266, 1933 Mo. LEXIS 661 (Mo. 1933).

Opinion

*272 TIPTON, J.

This is an injunction suit brought by the appellants, who were certain taxpayers of the city of Liberal, Missouri, and by the Ozark Utilities Company, a Missouri corporation, owner and operator of an electric light distributing system and the electric street lighting system in that city, against the respondents, who were the city of Liberal, its mayor, city clerk, treasurer and board of aldermen, and against the Cardin Machinery and Electric Construction Company, a copartnership and against Alexander, McArthur & Company,- a' cor•poration. The suit was filed in' the Circuit Court of Barton!County and a temporary injunction was issued by that court enjoining the respondents from proceeding'with the sale of its bonds and the erection of an electrical system. The cause was sent to Jasper County on a change of venue and upon -trial in that court, judgment was rendered for respondents. Appellants have duly appealed to this court.

Liberal is a city of the fourth class. It held an election on the 24th day of February, 1931, pursuant to an ordinance to test the sense of the qualified voters on the proposition to issue bonds in the amount of $22,00.0 for the purpose of constructing, erecting, acquiring- or purchasing an electric power distributing system and power line for the city. The form of ballot used in this election was as follows:

“For increase of debt for constructing, erecting, acquiring and purchasing an electrical power distribution system and power line for the City of Liberal, Missouri, and the inhabitants thereof.”

It was Stipulated at the trial of this cause that the city of Liberal *273 bad a population of 847 people, and that the assessed valuation of tbe city for state and county purposes for the year next preceding before the election was $408,393. The results of the election were 331 votes cast for the proposition and 70 votes east against it. Thereafter the city passed an ordinance that provided for the issuance of twenty-two bonds of $1000 each. The ordinance further provided for the levying of a direct annual ad valorem tax upon all taxable property in the city for the payment of interest and the sinking fund required for bonds so issued. The whole bond issue was sold to Alexander, McArthur & Company, Investment Brokers, located in Kansas City, Missouri. After some unsuccessful attempts to purchase electricity from the Kansas Gas and Electric Company, the Ozark Utilities- Company, the Empire District Electric Company and from the city-' of Lamar, the city entered into a contract with the Cardin Machinery and Electric Construction Company to construct for the sum of $21,972 an electric light distributing system to be owned exclusively by the city, and for the Cardin Company for a period of ten years to furnish electric current to the city for its distributing plant by a generating plant to be built and owned by this company.

I. The appellants contend that the bond issue of $22,000 is invalid both under Sections 12 and 12a of Article 10 of the Constitution of Missouri. The evidence in this case shows that the city of Liberal was not indebted prior to the issuance of these bonds, and that the assessment of all taxable property in the city as of June 1, T929, was $408,393 and under Section 12, the city would have' authority to issue bonds in a sum that would equal five per centum of this assessment, which would be $20,419.65, and therefore, a bond issue for $22,000 would violate Section 12 of this article.

The appellants further contend that while Section 12a of'this article allows “an additional ten (10) per centum on the1 value of the taxable property therein, for the purpose of purchasing or constructing . . electric or other light plants, to be owned exclusively by the city so purchasing or constructing” such plants, that this bond issue is not in compliance'with this section. It is the appellants’ contention that before a city can become indebted in the amount allowed under Section 12a, it is necessary for the city to own exclusively not only the distributing plant but also the generating units and this bond issue would be invalid if the contract with the Cardin people was adopted or the electric current was furnished from some other utility and connected with the city’s distributing plant by a power line. Appellants rely upon the case of Cooper v. Town of Middletown (Ind.App.), 105 N. E. 393, in which the court said:

“We think it clear that the ‘electric light works’ contemplated by this statute, and voted for by the citizens of said town, comprehends *274 and includes not only equipment and appliances necessary to receive and carry a current, but also a generating plant.”

We do not believe, however, that we should follow this authority for the reason that it does not seem to be in accord with the policy of this State as declared by our statutes and constitutional provisions. Section 7641, Revised Statutes 1929, gives the city authority to erect, purchase, acquire, maintain and operate electric light plants or any other kind of plant or device for lighting purposes. Section 7642, Revised Statutes 1929, empowers a city which owns or operates an electric light or power line to supply electric current from its light or power line to any other municipal corporation for its use and the use of its inhabitants, while Section 7643, Revised Statutes 1929, authorizes a city that maintains and operates an electric light and power line to procure electric current for that purpose from any other city owning or operating such plant, and to enter into a contract with such city having such plant. It certainly is not contemplated that under these sections a city must maintain and operate both a generating and distributing plant. Section 12a of the Missouri Constitution, in its present form, was adopted by the people in 1920, and in its original form was adopted in November, 1902. Section 7641, Revised Statutes 1929, was enacted in 1891, and there used the following phrase: ‘ ‘ Electric light plants ... or device for lighting purposes.” Again the Legislature in 1895' passed an act which we think conclusively shows that it was the policy of this State that the words “electric light plant” did not necessarily include a generating plant, but might be construed to be only a distributing plant. Section 6497, Revised Statutes 1899 (Laws 1895, p. 53), was held void by this court on other grounds (State v. Ry., 146 Mo. 155, 47 S. W. 959), but we find that the Legislature at that time used the word “plant” to describe a generating or transmission system, as this section uses the phrase “or plant for generating, transmission, sale or use of electricity” in giving the city the power to sell franchises. We believe the words “electric light plant” as used in our statutes and our Constitution mean either a distributing plant or a generating plant. Section 12a, supra, must not be given too technical or strict construction so as to defeat the very purpose for which it was adopted. In the case of State ex rel. City of Columbia v. Allen, 183 Mo. 283, 82 S. W. 103, this court said:

“While it is true that municipal corporations have only such powers as are either expressly granted to them, or such as are necessarily implied, and that grants of power are strictly construed, so as not to extend them beyond the purpose of the Legislature, yet, as said by this court in Bank v. How, 56 Mo. l. c.

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Bluebook (online)
64 S.W.2d 265, 334 Mo. 266, 1933 Mo. LEXIS 661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmer-v-city-of-liberal-mo-1933.