Syracuse Water Co. v. . City of Syracuse

22 N.E. 381, 116 N.Y. 167, 26 N.Y. St. Rep. 364, 71 Sickels 167
CourtNew York Court of Appeals
DecidedOctober 8, 1889
StatusPublished
Cited by52 cases

This text of 22 N.E. 381 (Syracuse Water Co. v. . City of Syracuse) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Syracuse Water Co. v. . City of Syracuse, 22 N.E. 381, 116 N.Y. 167, 26 N.Y. St. Rep. 364, 71 Sickels 167 (N.Y. 1889).

Opinion

Bradley, J.

These actions rest upon the charge, made by the plaintiff, that the defendants were proceeding to invade its rights. And the plaintiff alleges that such would be the effect of the exercise of the privilege which the city of Syracuse sought to grant to the Central City Water-Works Company, of providing the means contemplated to supply the city with water, and in performing the contract made between the defendants for that purpose. This charge is founded upon the claim, asserted by the plaintiff, of the exclusive right or franchise to furnish the city with water. The leading inouiry, therefore, is whether such claim is supported.

The plaintiff was incorporated by Laws of 1849 (chap. 224), and ever since then it has furnished water to the city and its inhabitants. To do that was the purpose of its creation, and it was fully provided by its charter with the powers essential to that service, amongst which was that of eminent domain. The franchise granted to the plaintiff embraced all the powers, privileges and immunities within the charter, and constituted a contract between the state and the plaintiff, and in the exercise of the powers so granted the latter was entitled to *174 protection. It follows that if, within the franchise granted by the state to the plaintiff was the exclusive right to siipply the city of Syracuse with water, the defendants should be enjoined from proceeding, as they are attempting to proceed, to interfere with or impair such right. (St. Tammany- Water-Works v. New Orleans Water-Works, 120 U. S. 64; New Orleans Gas Co. v. Louisiana Light Co., 115 id. 650; New Orleans Water-Works Co. v. Rivers, Id. 674; Louisville Gas Co. v. Citizens' Gas Co., id. 683.)

By reference to its charter, it appears to have been juovided that the plaintiff should, when requested, furnish water to the ■common council of the city for the extinguishment of fires and other purposes, upon such terms as might be agreed upon between them, and in case they could not agree, either the • common council or the plaintiff might apply to the Supreme Court for the appointment of three commissioners, who should prescribe the terms upon which the water should be furnished for the term of three years, and at the expiration of that time, .and once in three years thereafter, application in like manner might be made for a new commission for such purpose. (§. 16.) In case the plaintiff should not furnish a sufficient .supply of good and wholesome water for the use of the city and the people thereof within two years from the passage of the act, and continue to do so, the common council might give .six months written notice to the company to furnish the same, or that application would be made to the Supreme Court for the appointment of five commissioners, and in case the company should continue to neglect to furnish such supply until the expiration of the notice, then the property of the company . should be appraised, etc., and upon payment by the common council to the company of the sum so determined, they should become the 'owners of the property so appraised and paid for, . and be possessed of all the powers given by the act to the company. (§. 26.) And, at any time after the expiration ■ of twenty years, the common council should have the right to resume all the property, rights, powers and privileges of the • company on paying to it the amount of capital stock actually *175 paid in and expended in the works, with fifteen per cent .annually thereon, deducting therefrom the actual profits annually received by the company, and thereupon it should convey such property to the common council. (§. 29.)

The provisions of those three sections are thus specifically referred to, because they are relied upon to support the construction and effect claimed for the statute on the part of the plaintiff, and for a like purpose reference is made to section 19, which provides that nothing in the act should be deemed to ■affect, impair or interfere with the rights, privileges and obligations of the city “ derived or imposed by or under the act •of the legislature, entitled An act to supply the village of Syracuse, with wholesome water, passed March 27, 1821, or •any act subsequently passed amending or altering ” it. And this takes the inquiry back to the act of March 27,1821, which provided that the freeholders and inhabitants of the village of Syracuse, in the town of Salina, were authorized to take water for the use of the village from any springs on the lands of the People of the state in that town lying eastward of the village, ■and to carry the same under ground across such lands to the village, subject to the right of the canal commissioners to take the water from such springs to supply the Erie Canal, if their elevation was sufficient to carry water from them into the Pome summit level of the canal. It also provided for the election annually, by the inhabitants of the village, of three trustees to transact the business in relation to the rights granted by the act to the inhabitants of the village, to bring the water and regulate the manner of its use, and to fix the sums to be paid annually by those using it.

This was the situation until in 1825, when the village was incorporated by an act, which provided that all the rights, property and powers of the trustees of the Syracuse WaterWorks should be vested in the corporation, subject to the obligations of such trustees; and that the duties enjoined on them by the act of 1821 should thereafter be exercised by the trustees of the village. (Chap. 124, § 11.)

And by an amendatory act, passed in 1834, the trustees of *176 the village were given power to convey to Oliver Teall, Ms lieirs or assigns, all the rights, property and powers of the trustees of the Syracuse Water-Works, as vested in the village, for the term of thirty-five years, and it was provided that Teall, his heirs or assigns, should be possessed of all the powers, rights and privileges which were granted by the act of 1821, before referred to, and all the powers of the village on the subject; and if he should neglect to exercise them, the trustees of the village, after two years notice, should have the right to resume all such rights, powers and privileges. And it was further provided that, on the expiration of the thirty-five years, they should have the power to reinvest themselves, and take possession of the water-works by paying the estimated cost of erecting the works, less the decrease in value occasioned by waste, decay and use, to be determined by appraisers to be appointed by the Supreme Court, in case the parties were unable to agree upon the amount. (Chap. 151.) In June, 1841, pursuant to that act, and subject to its provisions, such conveyance was made by the trustees of the village of Syracuse to Oliver Teall.

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Bluebook (online)
22 N.E. 381, 116 N.Y. 167, 26 N.Y. St. Rep. 364, 71 Sickels 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/syracuse-water-co-v-city-of-syracuse-ny-1889.