State ex rel. Abel v. Gates

89 S.W. 881, 190 Mo. 540, 1905 Mo. LEXIS 140
Supreme Court of Missouri·Decided October 25, 1905·Published·Cited by 25 cases

Opinion

VALLIANT, J.

The relators pray that a writ of prohibition issue, addressed to the respondent, a judge of the circuit court of Jackson county, to prohibit him from entertaining jurisdiction of a cause pending in that court.

The cause in question is a suit in equity instituted in the name of the State of Missouri, on the information and at the relation of the Prosecuting Attorney of Jackson county, plaintiff, against Kansas City, and certain individuals, named, as members of the Common Council of that city, the City Clerk, City Comptroller, City Treasurer, City Auditor, the Kansas City Missouri Gas Company, a corporation, and four unofficial individuals named as promoters of the project or scheme therein 'assailed. The defendants in the suit in equity are the relators in this proceeding. The statements in the petition in the equity suit are substantially to the following effect:

In 1865 a corporation was organized under the laws of this State to manufacture and furnish gas to Kansas City and its inhabitants, and a contract was entered into between that corporation and the city in which the use of the streets was granted for that purpose, and [549] the corporation was to furnish gas to the people for $1.75 per 1000 cubic feet for a. period of thirty years. In 1895 the life of that corporation expired by its own charter limitation. In January, 1895, a new gas corporation, called, in the brief, the Snyder Company, was organized, and entered into contract with the city to furnish gas to the people until 1925 at the price of one dollar per 1000 feet. In August, 1895, a similar corporation was organized, called, in the brief, the Payne Company, with which the city made a like contract for the same period. The Payne Company was practically the old 1865 company, and succeeded to its tangible property. The Snyder Company built its works and laid its pipes. The effect of the two companies competing for trade was that the price of gas was reduced to 50 cents per 1000 feet.

In 1897 the two companies, by agreement with the city, were allowed to consolidate and operate as one, under the name of the Kansas City Missouri Gas Company, which is one of the defendants in the equity suit. Immediately after the consolidation the price of gas went up to one dollar per 1000 feet.

Under the contracts of 1895 with the Snyder and-Payne companies certain obligations were imposed on them and certain rights acquired by the city, among which were, first, the obligation of the companies, each, to furnish manufactured gas for the term of thirty years, that is, until 1925, for one dollar per 1000 feet; second, to sell their plants to the city at any time after 1907 at a valuation to be ascertained in a manner therein specified; third, to hold their franchises subject to the provisions of the city charter, among which was that they should not be renewed or extended before the last two years of their existence, that is, not before 1923. These obligations of the companies and rights of the city were continued in the contract with the consolidated company, wherein it was also stipulated that [550] the basis of the valuation of the property, when the city should elect to purchase it, should be the then actual value of the physical property “exclusive of the value of the stock, unexpired franchise, earning capacity,” etc., or as construed by the counsel for the respondent, the value of old iron and material.

The consolidated company, the Kansas City Missouri Gas Company, was in the field operating under that contract and subject to those conditions in 1904 when natural gas in great quantities was discovered to exist in the vicinity of Kansas City.

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State ex rel. Abel v. Gates, 89 S.W. 881, 190 Mo. 540, 1905 Mo. LEXIS 140 (Mo. 1905).

89 S.W. 881 (State ex rel. Abel v. Gates) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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