State ex rel. Union Trust & Savings Bank v. Superior Court

145 P. 999, 84 Wash. 20, 1915 Wash. LEXIS 746
CourtWashington Supreme Court
DecidedFebruary 2, 1915
DocketNo. 12421
StatusPublished
Cited by9 cases

This text of 145 P. 999 (State ex rel. Union Trust & Savings Bank v. Superior Court) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Union Trust & Savings Bank v. Superior Court, 145 P. 999, 84 Wash. 20, 1915 Wash. LEXIS 746 (Wash. 1915).

Opinions

Parker, J.

Certiorari to review an order of public necessity entered in an eminent domain proceeding.

The Spokane & Inland Empire Railroad Company will hereafter be called the relator. The Spokane Valley Power Company will be called the respondent. The relator was incorporated as .a public service corporation in 1906, for the purpose of taking over the properties of the Spokane Trac[21]*21tion Company, organized in 1903, which, had built and was operating street railway lines in Spokane; the Coeur d’Alene & Spokane Railway Company, organized in 1902, which had built and was operating a railway line to Coeur d’Alene, Idaho, and beyond; the Spokane & Inland, organized in 1904, which was building and had partially in operation railway lines in the Palouse country; and the Spokane Terminal Company, organized in 1905, which owned the terminals in Spokane used by the other companies. All of these properties were operated electrically. The relator has a capital stock of $10,000,000 and a property investment of approximately $25,000,000. It acquired from its predecessor a power site on the Spokane river known as the “Nine Mile” site. In 1906, it acquired a power site between the city of Spokane and the Nine Mile site, known as the “Bowl and Pitcher” site. With the Bowl and Pitcher site, it acquired a light and power franchise theretofore granted by the city of Spokane. It paid $50,000 for the power site and franchise. Neither of the original companies owned the electric power for the operation of its property. Each thereof had a separate contract for electric power with the Washington Water Power Company, expiring in 1916. The relator took the properties subject to these contracts.

In April, 1908, the relator entered into a contract with the Washington Water Power Company in lieu of the several separate contracts of its predecessors, whereby it agreed to take the amount of power covered by their contracts until the completion of its Nine Mile plant then in process of construction, and to take thereafter until October 12, 1916, 3,800 horse power. It was agreed that neither the relator nor the three original companies would, prior to October 12, 1916, engage in the sale of electrical power for light or power purposes within the city of Spokane or in the Coeur d’Alene mining district, Idaho; that, thereafter and some time in 1908, the relator completed its Nine Mile power plant, which furnishes a maximum of 15,000 horse power, at a cost of ap[22]*22proximately $1,500,000. It commenced the construction of this plant in 1906. The relator owns and operates a street railway system in Spokane, and interurban lines running into various points in Washington and Idaho. It has a total urban and interurban mileage of 290.94 miles, all of which it operates by electricity. It uses a maximum of 8,900 horse power in the operation of its railway system, and furnishes 2,600 horse power for irrigation enterprises, making a total of 11,500 horse power devoted to a public use. When its contract with the Washington Water Power Company expires in 1916, it will not have sufficient power for these uses. For some time prior to the commencement of the work on the Nine Mile plant in 1906, the relator was considering the relative feasibility of the two sites, and hesitating as to which site it should first develop.

The respondent was incorporated as a public service company in 1918, with a capital stock of $200,000 fully subscribed. Between that date and September 80, its stockholders conveyed to it certain overflow and water rights on the banks of the Spokane river for a consideration of $200,-000. They took stock to the extent of $142,500 and placed the balance of $57,500 in the treasury. The stock is assessable to the extent of twenty-five per cent of its par value. Some of the respondent’s land is above and some below the Bowl and Pitcher site which it seeks to condemn. The respondent’s proposed power plant would create a lake about seven and one-half miles in length with the relator’s land near the center. It cannot develop its plant without acquiring the relator’s land. In January, 1914, the respondent commenced work at its dam site. On March 20, its trustees directed that the construction work should be prosecuted with diligence. In April, it began certain condemnation proceedings against other parties. In May, it made a tentative arrangement with the Spokane & British Columbia Railway Company to furnish it electric power. It expended before the hearing of this cause several thousand dollars in the [23]*23prosecution of its proposed enterprise. The respondent desires to construct a hydro-electric plant at its site on the Spokane river below the Bowl and Pitcher site. The plan which the respondent proposes to carry out would cost about $1,500,000.

The relator acquired the Bowl and Pitcher site in anticipation of its future needs; that is, it foresaw that, within a reasonable time, it would require the power which the two sites would develop to meet its needs in the operation of its system in the progress of its anticipated expansion, and in furnishing power for public use as an auxiliary to the full development of its system. Its good faith in acquiring and holding the Bowl and Pitcher site is shown by its several resolutions between April, 1906, and October, 1906. That it intends to develop this site is shown by its resolution of April 15, 1914, wherein it was resolved:

“That for the purpose of developing electric power to be used for the operation of its own and other railway lines and to enable this company to utilize its franchise in the city of Spokane and in other cities and towns where it may now have or hereafter acquire franchises for the disposal of electric current for the public, that the company with all convenient dispatch proceed to construct a dam and power plant on the Spokane river,”

upon the lands in controversy. It was further resolved that the president of the company,

“Be and he is hereby authorized and directed to cause the necessary surveys to be made and plans to be drawn for the construction of a dam and power plant, to acquire such additional lands and such flowage rights as may be necessary for the proper development of electrical power ... to make such financial arrangements as may be necessary for the construction of the plant and the development and utilization of electrical power thereat, to enter into any and all necessary contracts for construction, machinery and additional engineering . . . and to do any and everything necessary or desirable for the construction of a power plant at the point aforesaid, and the development and utilization of electrical power thereat.”

[24]*24It was further resolved that he should apply to the Federal government for flowage rights upon such of the Fort Wright grounds as the engineer’s report should show to be necessary in the development of its plant, and apply for and obtain additional franchises from counties, cities, and towns which may be necessary or convenient in the utilization of the electric power to be developed, make contracts with municipalities or railway companies for the disposal of any power not needed for the purposes of the company, for public purposes, and execute in the name of the relator all contracts proper for the complete execution of the powers granted.

Mr. Wickersham, the relator’s electrical engineer, testified:

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Bluebook (online)
145 P. 999, 84 Wash. 20, 1915 Wash. LEXIS 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-union-trust-savings-bank-v-superior-court-wash-1915.