Omaha Water Co. v. City of Omaha

Citations

• 147 F. 1
• 12 L.R.A.N.S. 736
• 1906 U.S. App. LEXIS 4179

Syllabus

<p>1. Constitutional Law — Municipal Contracts — Impairment or Obligation.</p> <p>The Legislature empowered the city of Omaha to contract with individuals or corporations for the construction and maintenance of waterworks “on such terms and under such regulations -as may be agreed on.” Tlie city by ordinance offered the contract for the construction of tlie works and their operation for 25 years to the lowest bidder on condition that he would first accept the terms of the ordinance, which provided that tlie contractor should furnish water to private consumers during tlie term at such prices as the contractor and tlie consumers should agree upon, not exceeding certain specified rates. Tlie contractor accepted the ordinance and his assigns constructed the waterworks and operated them for 20 years. Tlie water board of the city ordered the -rates reduced below those specified in tlie ordinance. Helé, the accepted ordinance was a contract, the order of the water board impaired its obligation, and the water company was entitled to an injunction to -rest-rain its execution.</p> <p>[Ed. Note. — For cases in point, see vol. 10, Gent. Dig. Constitutional Law, §385.]</p> <p>2. Municipal Corporations — Powers, Governmental and Business.</p> <p>Municipal corporations have two classes of powers, tlie one governmental, in the exercise of which their officers m-ay not bind the municipalities beyond their terms of office, tlie other business or proprietary, in the exercise of which they are governed by the same rules as individuals or private corporations.</p> <p>[Ed. Note. — For cases in point, see vol. 36, Cent. Dig. Municipal Corporations, §§ 665-667.]</p> <p>3. Same — Procuring Waterworks — Exercise op Business Power.</p> <p>A city exercises its business or proprietary power in purchasing waterworks or contracting for their construction or operation. •</p> <p>[Ed. Note. — For cases in point, see vol. 36, Cent. Dig. Municipal Corporations, §§ 665-667.]</p> <p>4. Same — Rates to P