City of Columbus v. Columbus Gas Co.

Citations

• 76 Ohio St. (N.S.) 309

Syllabus

<p>Municipal ordinance — Granting right to gas company to operate in city — Company to pay annual stipend to city for benefit of gas fund, etc. — Valid—Upon acceptance becomes contract — Grant not exclusive — City authorizes second company to operate— Contract with first company not vitiated — Municipal corporations — C ontracts.</p> <p>1. Where a municipal corporation by an ordinance passed by its council grants to a gas company the right to lay its pipes and other appliances in the streets and other public places within the corporation, for the purpose of selling and distributing its gas for public and private use, such council may require the gas company to pay annually to such municipal corporation a reasonable sum to compensate for the city’s necessary supervision of the work as well after as during its installation; and when the gas company accepts the terms of said ordinance according to law, and takes possession of and occupies the streets, et cetera, under-said grant, such accepted ordinance becomes a valid contract between the parties for the annual payment of said sum. The clause in the ordinance here involved that said payments are “for the benefit of the gas and light fund of said city” does not render the ordinance invalid as a means to raise general' revenue, said clause being subordinate to the principal obligation.</p> <p>2. That the municipal authorities, subsequent to the grant to the defendant company, gave permission to one or more other gas • companies to lay pipes in the streets and other public places within the corporation for the purpose of selling and distributing gas for public and private use, constitutes no defense to an action to recover payments due under the provisions of the former ordinance, because:</p> <p>(а) The said former ordinance under which the defendant holds does not purport to give to defendant an exclusive right to the streets for the purposes of its business.</p> <p>(б) The latter part of section six of that ordinance