Taylor v. Commissioners of Ross County

23 Ohio St. (N.S.) 22
Ohio Supreme Court·Decided December 15, 1872·Published

Opinion

White, C. J.

These two cases were argued at the same time, and they have been considered and will be disposed of together, as they both involve the question of the constitutionality of the act of April 23, 1872, to authorize counties, townships, and the municipalities therein named, to build railroads, etc. 69 Ohio L. 84.

It is claimed by the counsel seeking to maintain these proceedings under the act named, that the’question as to its validity has already, in effect, been determined in the case of Walker v. The City of Cincinnati et al., 21 Ohio St. 15.

The act passed upon in that case, is widely different from the one now before us. The latter contains provisions and elements not found in the former. That act authorized a railroad to be built by a municipality, when it was found to be essential to its interest, as one of its public works. It was to be used and operated as other works of a public nature, in which it had a special interest, and which it was authorized to own and operate.

In the case referred to, of Walker v. The City of Cincinnati, the court held that it was competent for the legislature, under the general grant of legislative power, to authorize the entire construction of such a work, by a municipality having a special interest therein, and to empower the local authorities to provide the means’ therefor by taxation. And, further, that a work thus constructed was neither in violation of the express nor the clearly implied prohibitions of article 8, section 6, of the constitution. That the construction of the work in this manner, however unwise it might [77]*77be, did not involve the union of public and private capital or credit, nor the raising of money by the municipality for, or loaning its credit to, or in aid of other parties, incorporate or otherwise. That this is as true in regard to railroads so constructed, as it is in regard to water-works, gasworks, and other improvements of a similar nature which the municipalities may construct, but which require the employment of skill and labor to make them available for public use.

It is true that in the act passed upon in Walker v. The City, etc., authority is given the trustees as fast as portions of the line of road of which they are trustees, are completed, to rent or lease the right to use and operate such portions upon such terms as they may deem best; but such rights are to' cease and determine on the final completion of the whole line, when the right to use and operate the same is to be leased by them to such person or company as will conform to the terms and conditions which shall be fixed and provided by the council of the city by which the line of road is owned.

This power can not be exercised until after the work is completed, except for the purpose of getting the immediate-use of the finished portion during the time required to complete the entire work. The proprietary interest in the road when completed, is as fully in the municipality as that of any other of its public works. It is the road “ owned” by the municipality that is authorized to be leased. The public use for which the road was built, is to be preserved, and the power of leasing the right to use and operate it, is designed only as a mode of making such use available to the-public. If, under color of this authority, it should be attempted to divert the work from the purposes for which it was authorized, and to subordinate the public to private interests, the attempt would be unwarranted, and the courts-would be open to prevent or redress the wrong.

Every step in the public service requires compensation,, whether it be in discharging the duties of office, or in preserving and keeping in order, so as to be available for-[78]*78public use, all descriptions of public property. Compensation for services is as necessary as compensation for property.

The constitution does not forbid the employment of corporations, or individuals, associate or otherwise, as agents to perform public services; nor does it prescribe the mode of their compensation. And if it should be deemed wise and economical to authorize municipalities, who own waterworks, or gas-works, to lease them as a means of supplying the public needs, we know of no constitutional impediment.

But this is a different thing from investing public money in the enterprises of others, or from aiding them with money or credit. In one case, the whole proprietary interest is in the public, and its authority is paramount; while in the other, the reverse is true.

Whether or not the act now before us can be justified under the decision referred to, will appear from an examination of the provisions of the act.

Its validity is denied, on the ground that it violates section 6, article 8, of the constitution. That provision is as follows:

“ The general assembly shall never authorize any county, city, town, or township, by vote of its citizens or otherwise, to become a stockholder in any joint-stock company, corporation, or association whatever; or to raise money for, or loan its credit to, or in aid of, any such company, corporation, or association.”

It is but applying an axiom, to say that what the general assembly is thus prohibited from doing directly, it has no power to do indirectly.

In giving an exposition of this section, in Walker v. The City, etc., it is said in the opinion : “ The mischief which this section interdicts, is a business partnership between a municipality, or subdivision of the state, and individuals or private corporations or associations. It forbids the union of public and private capital or credit in any enterprise whatever. In no project originated by individuals, whether [79]*79associated or otherwise, with a view to gain, are the municipal bodies named permitted to participate in such' manner as to incur pecuniary liability. They can neither become stockholders nor furnish money or credit for the benefit of the parties interested therein. Though joint-stock companies, corporations, and associations only are named, we do not doubt that the reason of the prohibition would render it applicable to the case of a single individual.” And it was truly said, the evil would be the same to the public whether the transaction was with a single person, or with several persons associated together.

The first section of the act now in question declares that it shall be lawful for any county to construct a railroad, and to borrow, as a fund for that purpose, a sum not exceeding five per cent, on its taxable property, as two-thirds of the electors of the county, voting at a meeting called for that purpose, shall determine. Section 12 extends the provisions of the act to cities, incorporated villages, and townships:

The following is, substantially, the method or scheme prescribed for accomplishing this object. On presentation of a written request signed by the specified number of taxpaying electors, containing a specification of the termini of the proposed road, the amount to be appropriated toward its construction, and such other conditions and particulars as are not provided for in the act, the commissioners are required to call an election at which the electors are to vote on the proposition contained in the request. If the result of the election should be to approve the proposition, the commissioners are required to issue the bonds of the county for the amount authorized.

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Taylor v. Commissioners of Ross County, 23 Ohio St. (N.S.) 22 (Ohio 1872).

23 Ohio St. (N.S.) 22 (Taylor v. Commissioners of Ross County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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