State v. City of New Orleans

91 So. 533, 151 La. 24, 1922 La. LEXIS 2673
CourtSupreme Court of Louisiana
DecidedMarch 20, 1922
DocketNo. 25074
StatusPublished
Cited by54 cases

This text of 91 So. 533 (State v. City of New Orleans) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. City of New Orleans, 91 So. 533, 151 La. 24, 1922 La. LEXIS 2673 (La. 1922).

Opinion

O’NIELL, J.

The question propounded in this case is whether the authority to fix the rate of' car fare on street railways in the city of New Orleans is vested in the municipal council or in the Louisiana Public Service Commission.

The Attorney General has appealed from a judgment dismissing this suit for an injunction, on behalf of the state, to prevent the municipal council from making an agreement with the New Orleans Railway & Light Company, permitting the collection of a higher rate of ear fare than the five-cent rate fixed in the original franchises held by the company.

The Louisiana Public Servicé Commission was created by section 3 of article 6 of the Constitution of 1921, as the successor of the Railroad Commission of Louisiana. The authority of the new commission, however, was extended so as to give it the power of supervision, regulation and control over local public utilities — specifically, street railways, gas, electric light, heat, power, and waterworks. The commission’s predecessor, the Railroad Commission of Louisiana, did not have any power of supervision, regulation, or control, over local public utilities, its power of supervision, regulation and control, having been confined to railroads, steamboats and 'other water craft, sleeping car, passenger and freight tariffs and service, express rates, and telephone and telegraph charges. Article 284 of the Constitution of 1898 and of 1913.

Section 4 of article 6 of the Constitution of 1921, giving the new Public Service Commission authority to fix rates, fares, tolls and charges of public utilities — local as well as state-wide — is qualified by the expression [27]*27“except as herein otherwise provided.” And section 7 of the same article declares that “the powers of supervision, regulation and control over any street railway, gas, electric light, heat, power, waterworks, or other local public utility, now vested in any town, city, or parish government,” shall not be vested in or exercised by the Public Service Commission, unless or until a majority of the qualified electors of such town, city or parish, voting at an election to be held pursuant to laws to be enacted by the Legislature, shall vote to surrender such powers. No such election has been held in New Orleans. Therefore, if the municipal government had the authority to fix the rates, fares, tolls, and charges of local public utilities, immediately before the Constitution of 1921 was adopted, and if the language of the reservation in section 7 of article 6 reserving to all municipal governments that already had such powers “the powers of supervision, regulation and control” over local public utilities, is comprehensive and specific enough to include the power to fix rates the municipal council has that exclusive power now.

The argument of the Attorney General, in support of his contention that the municipal council has not the rate-making authority over street railways, is twofold. He contends: First, that the municipal council did not have the rate-making authority when or before the Constitution of 1921 was adopted; and, second, that the reservation in section 7 of article 6, of “the powers of supervision, regulation and control” over local public utilities, does not include the authority to fix rates, fares, tolls or charges. It is conceded, in plaintiff’s petition and in the Attorney General’s argument, that the municipal council did have authority to fix the rate of car fare when the franchises now held by the New Orleans Railway & Light Company were originally granted, fixing the fare at five cents. It is said that the authority to grant those franchises, and to fix the rate of car fare, was given specifically, by special acts of the Legislature. We are referred to section 21 of Act 20 of 1882, one of the charters granted to the city of New Orleans; section 4 of Act 135 of 1888, being an amendment of the city’s charter; section 87 of Act 45 of 1896, another city charter; and Act 108 of 1902, being an amendment of sections 86 and 87 of Act 45 of 1896. The statutes cited merely prescribed the forms which the municipal council was required to observe, such as the publication of the terms, conditions and specifications, before granting any franchise for a street railway or other local public utility. The statutes did not, in terms, confer upon the municipal council the power to fix the rates, fares, tolls, or charges, to be collected by the grantees of such franchises. It appears to have been assumed by the Legislature, and by the municipal council, that the authority to grant franchises for street railways or other local public utilities included the authority to fix the rates, fares, tolls or charges, to be collected by the grantees of such franchises.

It is not pretended that the Legislature has deprived the municipal council of its rate-making authority over street railways or other local public utilities, since the franchises which are the subject of this litigation were originally granted by the municipal council. The Legislature attempted to deprive the municipal council of that authority by the Act 36 of 1916, undertaking to amend the charter of the city by creating a local board of public utilities, four of the five members of which were to be appointed by the Governor of the state. But the statute was unconstitutional, and was so declared in the case of Board of Public Utilities v. New Orleans Railway & Light Co., 145 La. 308, 82 South. 280. The attempt of the Legislature to create a board of public utilities for the city of New Orleans, and to confer upon the board the power of supervision, regulation and control, including the rate-making power, [29]*29over street railways and other local public utilities, signifies very forcibly that the Legislature recognized that the municipal council was then exercising that authority, and that it required an act of the Legislature to stop it.

The charter of the city of New Orleans, Act 159 of 1912, establishing the commission form of government, as amended by Act 21 of the extra session of 1917 and by Act 29 of 1918 — as it was when the Constitution of 1921 was adopted — contains the following provisions, under which the municipal council now claims authority to fix the rates, fares, tolls and charges, for local public utilities, viz.:

“Section 1. * * * That all the inhabitants of the parish of Orleans, * * * are hereby created a body corporate and established as a political corporation, by the name of ‘the City of New Orleans,’ with the following powers: * * * “(d) The legislative, executive and judicial powers of the city shall extend to all matters of local and municipal government, it being the intent thereof, that the specifications of particular powers by any other provision of this charter shall never be construed as impairing the effect of the general grant of powers of local government hereby bestowed;
“(e) The city shall also have all powers, privileges, and functions which, by or pursuant to the Constitution of this state, have been, or could be granted to or exercised by any city.” * * *
“Section 8. The commission council shall have also power: * * *
“12. To authorize the use of the streets for railroads operated by horse, electricity, steam or motive power, and to regulate the same; to require and compel all lines of railway or tramway in any one street to run on and use one and the same track and turntable, to compel them to keep conductors on their cars, and to compel all such companies to keep in repair the streets, bridges and crossings through or over which their cars run.

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Bluebook (online)
91 So. 533, 151 La. 24, 1922 La. LEXIS 2673, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-city-of-new-orleans-la-1922.