Standard Oil Company; Trusts, Industrial -- United States
"Unquestionably," decided Judge Jackson, "the Legislature may
authorize a city to furnish light, or facilities for transportation, or
water to its citizens, with or without cost, as the Legislature or city
may determine.... Since the decision in Sharpless _vs._ Philadelphia
it is no longer an open question whether municipalities may engage in
enterprises such as the one contemplated by the act in question in this
case. The act of January 22, 1889, authorizing the city of Toledo to
issue bonds for natural-gas purposes, is clearly within the general
scope of legislative power, is for a public use and purpose, and is
not in contravention of any of the provisions of the constitution. The
court being of the opinion that the legislation is valid, it follows,
of course, that the injunction applied for must be refused."[518] When
the news of Judge Jackson's decision was telegraphed to Toledo nothing
less than the booming of cannon could express the joy of the citizens.
They sent this message to the just judge: "One hundred guns were fired
to-night by the citizens of Toledo in honor of your righteous decision
to-day." Judge Jackson again upheld the bonds at Toledo, January 14,
1890, when he again dismissed the case against the city "for want of
equity, at cost of complainants."
The favorable decision by Judge Jackson, although an appeal was taken,
made it possible for the city to sell the $75,000 bonds which had been
issued by order of the Council. The bonds brought par, interest, and
over $2000 premium. With the money thus procured the city's Board of
Natural Gas Trustees began operations. Their opponents had spread far
and loud among the voters before the election--among those who would
be likely to buy the bonds, everywhere it would hurt--the assertion
that all the territory that was good had been bought up by them, and
the city's trustees would not be able to get any. One of the companies
had no less than 140,000 acres of gas lands in its possession or under
contract, at a cost in rentals and royalties of $100,000 a year.[519]
But the city trustees, even with the small sum at their command, were
able to secure at the very beginning wells with a capacity more than
four times as great as the private companies had had when the latter
began the investment of a million or more to lay their pipe lines to
Toledo.[520] Together with this supply the city trustees got 650 acres
about 35 miles from Toledo of as choice gas territory as there was in
Ohio, almost all of it undrilled, and they had offers amounting to 5000
acres more within piping distance from the city. The city's trustees
made their purchases with success, and received the laudations of their
constituents for having got lands and wells at better prices than the
private companies.
August 26, 1889, after a decision in the United States courts that
there was no ground on which to object to the issue of the bonds, the
City Council voted the issue of the remaining $675,000.
Public-domain text, read in full here on John Shaqi.
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