St Tammanyco v. New Orleansco

• Decision Date: 10 January 1887
• Docket Number: WATER-WORKS
• Citation: 7 S.Ct. 405,30 L.Ed. 653,120 U.S. 64
• Parties: ST. TAMMANYCO. and another v. NEW ORLEANSCO. 1
• Court: U.S. Supreme Court

120 U.S. 64

7 S.Ct. 405

30 L.Ed. 653

ST. TAMMANY WATER-WORKS CO. and another v. NEW ORLEANS WATER-WORKS CO.¹

January 10, 1887.

G. L. Hall, for appellants, St. Tammany Water-works Co. and another.

E. H. Farrar and J. R. Beckwith, for appellee, New Orleans Water-works Co.

HARLAN, J.

The parties to this appeal are corporations of the state of Louisiana. The New Orleans Water-works Company was created by a special act of the general assembly of Louisiana, passed March 31, 1877, and was given the exclusive right, for 50 years from the date of its charter, 'of supplying the city of New Orleans and its inhabitants with water from the Mississippi river, or any other stream or river, by means of pipes and conduits, and for erecting and constructing any necessary works or engines or machines for that purpose.' It was vested with authority to construct canals and trenches for conducting 'the water of the rivers from any place or places it may deem fit, and to raise and construct such dykes, mounds, and reservoirs as may be required for securing and carrying a full supply of pure water to said city and its inhabitants,' and 'to lay and place any number of conduits or pipes or aqueducts * * * through or over any of the streets of the city of New Orleans.' It was required to proceed, immediately after its organization, in the 'erection of new works and pipes sufficient in capacity to furnish a full and adequate supply of water, to be drawn from the Mississippi river or elsewhere, as may be judged most expedient.'

In New Orleans Water-works Co. v. Rivers, 115 U. S. 681, S. C. 6 Sup. Ct. Rep. 273, which involved the validity of a municipal ordinance granting to one Rivers the privilege of bringing water from the Mississippi river into his hotel, in the city of New Orleans, by means of mains and pipes laid in its streets, it was adjudged that so much of the company's charter as gave it the exclusive privilege before mentioned was, within the meaning of the constitution of the United States, a contract protected against impairment, in respect of its obligation, by that provision of the state constitution of 1879 abolishing the monopoly features in the charters of all then existing corporations other than railroad corporations. Consequently that ordi ance was void as interfering with the contract rights of the company.

It was also decided that 'the right to dig up and use the streets and alleys of New Orleans for the purpose of placing mains and pipes for supplying the city and its inhabitants with water is a franchise belonging to the state, which she could grant to persons or corporations upon such terms as she deemed best for the public interests;' and since 'the object to be attained was a public one, for which the state could make provision by legislative enactment, the granting the franchise could be accompanied with such exclusive privileges to the grantee, in respect of the subject of the grant, as in the judgment of the legislative department would best promote the public health and the public comfort, or the protection of public and private property.' But it was also decided that, notwithstanding the exclusive privileges granted to the company, 'the power remains with the state, or with the municipal government of New Orleans acting under legislative authority, to make such regulations as will secure to the public the uninterrupted use of the streets, as well as prevent the distribution of water unfit for use, and provide for such a continuous supply, in quantity, as protection to...