Public Service Co. of Ind. v. City of Aurora

19 N.E.2d 255, 215 Ind. 311, 1939 Ind. LEXIS 170
CourtIndiana Supreme Court
DecidedFebruary 20, 1939
DocketNo. 27,108.
StatusPublished
Cited by2 cases

This text of 19 N.E.2d 255 (Public Service Co. of Ind. v. City of Aurora) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Public Service Co. of Ind. v. City of Aurora, 19 N.E.2d 255, 215 Ind. 311, 1939 Ind. LEXIS 170 (Ind. 1939).

Opinion

Fansler, J.

This is an appeal from an order and judgment of the Dearborn Circuit Court overruling the *312 appellants’ objections to the appointment of appraisers in a condemnation proceeding by which the appellee seeks to purchase an electric utility, a water utility, and a gas utility owned by the appellants.

Most of the questions sought to be presented are decided adversely to appellants’ contention. in City of Lebanon v. Public Service Co. of Indiana et al. (1938), 214 Ind. 295, 14 N. E. (2d) 719.

The only substantial question which it is necessary to decide involves the legality of the ballot submitted to the voters of the city in the election called for the purpose of submitting the question of the purchase of the properties under section 54-612 Burns’ Ann. St. 1933, section 14029 Baldwin’s Ind. St. 1934. The ballot was in the following language:

“OFFICIAL BALLOT

“Do you favor the purchase and/or the condemnation and acquisition of the Electric, Water and Gas Utilities now owned, maintained and operated by The Public Service Company of Indiana within the City of Aurora, Indiana,, and within six miles of the corporate limits thereof?

“ (To vote in favor of the above mark an X, thus in the top square.)

“ YES For such proposal.

“(To vote against the above mark an X, thus in the bottom square.)

“NO Against such proposal.”

The appellants are the owners of three separate plants, an electric plant and distribution system, a water plant and distribution system, and an artificial gas plant and distribution system. The ballot required the voter to express himself upon the question of whether all or none of the utilities were to be purchased.

In the case of Garrigus et al. v. Board of Com’rs of *313 Parke County (1872), 39 Ind. 66, 72, 73, 74, 75, 76, this court had under consideration the validity of an election where the ballot submitted to the voters a proposal to vote for or against an appropriation to two railroad companies at the same time. It was pointed out that the solution of the question involved a construction of the statute under which the proceeding was had for the purpose of determining the legislative intention.

The appellants contend that the statute authorizes cities to purchase utilities, and that there must be a separate submission of the. question of the purchase in respect to each separate utility property.

The appellee contends that the statute contemplates a proposal to purchase all of the property owned by a company operating public utilities, whether it be one or more utilities, and that, since the appellants owned and operated three different plants, the ballot is pursuant to the legislative intent.

Section 54-105 Burns’ Ann. St. 1933, section 13905 Baldwin’s Ind. St. 1934, defines the terms used in the Public Utilities’ Law, and contains the following provisions :

“The term ‘public utility’ as used in this act shall mean and embrace every corporation, company, individual, association of individuals, their lessees, trustees, or receivers appointed by any court whatsoever, that now or hereafter may own, operate, manage or control any street railway or interurban railway or any plant or equipment within the state for the conveyance of telegraph or telephone messages, or for the production, transmission, delivery or furnishing of heat, light, water or power, or for the furnishing of elevator or warehouse service either directly or indirectly to or for the public, but said term shall not include a municipality that may now or hereafter acquire, own, or operate any of the foregoing facilities. . . .

*314 “The term ‘utility’ as used in this act shall mean every street railway or interurban railway, and every plant or equipment within the state used for the conveyance of telegraph and telephone messages, or for the production, transmission, . delivery, or furnishing of heat, light, water or power, or for the furnishing of elevator or warehouse service, either directly or indirectly to the public.”

It is clear therefore that a “public utility” is the owner of one or more “utilities,” and that a “utility” is the property or plant which furnishes service to the public.

Section 54-612 Burns’ Ann. St. 1933, section 14029 Baldwin’s Ind. St. 1934, provides that:

“No municipal council or municipality shall have the authority or power to condemn, lease, erect, establish, construct, purchase or acquire a public utility property unless the said condemnation, leasing, erecting, construction, purchase or acquisition shall have been submitted to and approved by the voters of said municipality, as hereinafter provided. ...

“. . . if said petition is to purchase, condemn, acquire or lease a public utility then operating in said municipality, said council shall submit to the voters of said municipality at a special election . . . the question whether such municipality shall purchase, condemn or construct and operate such utility, as the case may be. ... If said petition is to purchase or condemn the property of an existing public utility, and a majority of the votes cast at such election on said proposal shall vote- in favor of such proposal, then such municipal council shall adopt an ordinance declaring a necessity therefor. ...

“In the event such municipal council and the owners of such utility are unable to agree upon a price to be paid by such municipality for such utility, such munici *315 pality shall by ordinance, if it is so determined, declare that a public necessity exists for the condemnation of the property of such utility which such municipality has determined to acquire.”

It is clearly apparent that the statute contemplates the purchase and acquiring of property, and not of the corporate entity which owns the property, and, from the last sentence quoted, it seems clear that it was not contemplated that all of the property of the utility owner or “public utility’ should be purchased. A “public utility” may be the owner of a street railway, an interurban railway, a telegraph plant, a telephone plant, a heating plant, an electric lighting plant, an electric power plant, a water plant, a plant for furnishing elevator service, and a plant for furnishing warehouse service, all within the same community. There is no reasonable basis for construing the statute as requiring that the municipality must acquire all or none of the property of such a “public utility.” The act expressly provides that any municipality may condemn or purchase “any utility,” and that, if it is determined to acquire “a utility,” funds may be raised by a bond issue. The question submitted to the voters is whether the city shall purchase “such utility.” The conclusion cannot be avoided that the purpose of the act was to permit cities to acquire utility properties which might be deemed useful, without respect to their ownership and without regard to whether the several utility properties in the community were owned by one or several owners.

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Montgomery Light & Power Co. v. Town of Linden
29 N.E.2d 209 (Indiana Supreme Court, 1940)

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Bluebook (online)
19 N.E.2d 255, 215 Ind. 311, 1939 Ind. LEXIS 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-service-co-of-ind-v-city-of-aurora-ind-1939.