Silver v. Tobin

28 F. 545, 1886 U.S. App. LEXIS 2311
CourtU.S. Circuit Court for the District of Eastern Louisiana
DecidedMay 7, 1886
StatusPublished
Cited by1 cases

This text of 28 F. 545 (Silver v. Tobin) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silver v. Tobin, 28 F. 545, 1886 U.S. App. LEXIS 2311 (circtedla 1886).

Opinion

Pardee, J.

The complainants, D. II. Silver and T. C, Sweeney, citizens, respectively, of the states of Missouri and Virginia, alleging themselves to be the owners of the steam-boat C. C. Carroll, and a one-half interest in the steam-boat Corona, pray for an injunction pendente lite to restrain the city of New Orleans, and Tobin and others, composing the firm of Aiken & Co., wharf lessees, from carrying out the provisions of a contract between them and the city of New Orleans, of the dato thirty-first of August, 1885, by which the city extended, for a period of five years from the thirtieth day of May, 1886, the lease entered into between the city and Aiken & Co. on the thirtieth day of May, 1881, by which Aiken & Co. were granted the right to collect the revenues of the wharves and landings of the city [546]*546of New Orleans for 'certain considerations therein mentioned. The bill further charges that complainants will be compelled, by the ordinance of the city of New Orleans and the lease aforesaid, to pay wharfage at the rate of eight cents per ton of their tonnage each time their boats land at the wharves, and that they have each an interest of more than $500; that the original contract of May 30, 1881, and the extension thereof, are illegal, unconstitutional, null, and void; that the city of New Orleans had no power to adopt the ordinance on which the contract of August 31, 1885, is based, nor power to enter into said contract, — the section of the city charter attempting to grant the alleged power, and the ordinance and contract, being all in conflict with article 1, §§ 8, 10, of the constitution of the United States, as an attempted regulation of commerce and tax on tonnage; that the city cannot tax commerce with the cost of construction of artificial facilities, but only for the use thereof. The bill further alleges that the contract of August 31st is illegal, because entered into in violation of the city charter, which provides that the lessees of the wharves shall erect sheds upon the wharves, and that all contracts for public works shall be offered by the comptroller at public auction, and adjudicated to the lowest bidder, or be advertised for sealed proposals, and given to the person making the lowest bid, — the city council having contracted with Aiken & Co., the defendants, in the face of lower bids, which they refused to entertain and consider; and, finally, it is charged that the rates of wharfage exacted are excessive, and enable the defendants to make a profit of not less than $100,000 per annum; that the rate on steam-boats is eight cents per ton, whereas five cents would be a fair and reasonable rate; and that, had competition been allowed, “the leasing or farming out might have been made for five cents a ton.” For these reasons the complainants pray that the ordinance 1386, council series, and contract of August 31, 1885, be declared illegal, annulled, and the execution thereof enjoined.

Exhibits attached to the bill show: (1) The alleged contract with' Aiken & Co. (2) Letter of Aiken & Co. asking an extension of their present lease. (3) Proposition of C. A. Eager and others to take the contract at rates of the Aiken & Co. lease, and donate $50,000 and plant to the city. (3J) Proposition of R. Sinnott & Co. to take wharf lease on reduced terms, if the same is opened to competition. (4) Statements of commissioner of public works before the council to the effect that two members of the counsel were connected with the wharf lessees; that the rates could be reduced to five cents per ton; and. that the lessees cleared a profit of $98,000; and asking for delay of one 'week to make complete proof. (5) Alleged reasons of the mayor for approving the contract, that “they are all jobs,” but I think this is the least.

Complainants’ affidavits in support of the present motion are: (1) Affidavit of James Sweeney, setting forth his proposition, on the ba[547]*547sis of the Aiken lease, to lease the wharves for five years; keeping all wharves and landings in good order and repair, and paying $30,-000 annually for policing, $10,000 annually for contravention clerks, to light the wharves by electricity, to build $30,000 new wharves annually, and to allow a rebate of 10 per cent, on rates charged at present. (2) Affidavit of Tliomas P. Handy that the lease of the wharves, if proper competition had been allowed, might have been made at a reduction of rates of at least 10 per centum; and that he proposed to lease on the basis of the Aiken lease, and make a donation to the city towards the support of the public schools, or as the city might direct, of $75,000.

The entire case of the complainants, as made by themselves, is hero set forth, and their grievances may be set down under those heads: (1) The wharfage fees to be exacted under the renewed lease to Aiken & Co. are really a tonnage tax, in violation of the constitution of the United States. (2) The rates of wharfage under said renewed lease are excessive. (3) The section of, the city charter authorizing the city to lease the wharves is in violation of the constitution of the United States. (4) The lease, as made by the city to Aiken & Co., was in violation of the city charter, and void, because the lease provides for public works ordered by the city council, and the same was not adjudicated to the lowest bidder, according to the requirements of section 21 of the city charter. (5) The city council made undue haste in considering and determining the matter, refusing to listen to the propositions of those citizens who desired to bid for the privileges to be granted.

Except the two last-mentioned grievances, the issues presented have been passed upon by this court in this district, and settled adversely to complainants in the two cases of Leathers v. Aiken, 9 Fed. Rep. 679, and Packet Co. v. Aiken, 4 Woods, 208, S. C. 16 Fed. Rep. 890. See, also, Cannon v. New Orleans, 20 Wall. 577; Packet Co. v. Keokuk, 95 U. S. 80; Packet Co. v. St. Louis, 100 U. S. 423; Vicksburg v. Tobin, Id. 430; Packet Co. v. Catlettsburg, 105 U. S. 559; Transportation Co. v. Parkersburg, 107 U. S. 691; S. C. 2 Sup. Ct. Rep. 732.

Section 8 of the city charter (act No. 20 of 1882) contains this provision, among others:

“ The council shall also have power * * * (5) to prescribe and collect wharfage and levee dues, and to erect sheds over the wharves and buildings, to protect merchandise and to make such charges therefor as will pay for the construction, keeping in repair, lighting, and policing of such wharves and sheds, and no more. The council may lease or farm out the wharves and landings in sections, for a period not exceeding ten years, to such persons as will bind themselves with security to construct and keep in good repairs such wharves and landings, and construct and keep in repairs sheds over the wharves, and light the, same, and pay the cost of policing the same, for such just and reasonable charges on vessels and merchandise, or either, for the use of the wharves and sheds, as may bo fixed In advance by the council, and with such specifications as may be required by them.”

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Cite This Page — Counsel Stack

Bluebook (online)
28 F. 545, 1886 U.S. App. LEXIS 2311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silver-v-tobin-circtedla-1886.