The Athens City Water-works Co. v. The Mayor

• Decision Date: 28 February 1885
• Citation: 74 Ga. 413
• Parties: The Athens City Water-works Company. vs. The Mayor, etc, of Athens.
• Court: Georgia Supreme Court

74 Ga. 413

The Athens City Water-works Company. vs. The Mayor, etc, of Athens.

Supreme Court of the State of Georgia

FEBRUARY TERM, 1885.

Tax. Municipal Corporations. Constitutional Law. Contracts. Before Judge Cobb. City Court of Clarke County. January Term, 1885.

The Athens City Water-works Company brought suit against the Mayor, etc., of Athens, alleging, in brief, as follows: The municipal authorities contracted with one C. E. Robinson for the erection and maintenance of water-works in that city, agreeing to pay $3,000.00per annum in quarterly payments for the use of hydrants etc.Robinson assigned his rights under the contract to plaintiff. The works were completed and accepted in January, 1884. The installment due in April thereafter was paid. When the July and October installments became due, aggregating $1,500.00, the Mayor, etc., paid only a part of the amount, retaining $587.15. Of this they claimed $87.15 as taxes due by plaintiff on property disconnected from the water-works system, and $500.00 as taxes on the waterworks property, consisting of a reservoir, engines, pipes, etc. This property was assessed at $50,000.00, and the tax was levied under a provision in the city charter allowing a tax on real estate and an ordinance levying a tax of one per cent. Plaintiff insists that the water-works property is non-taxable, and prays judgment for the amount reserved as tax thereon.

Attached to the declaration was a copy of the contract for the erection of the works. It bound the Contractor to erect the works with necessary fixtures, mains, pipes, etc., within a given time; to supply water at given rates to the inhabitants of the city: to establish fifty hydrants and furnish water sufficient for the extinguishing, of,_: fires, for, flushing sewers and other public purposes;to establish other hydrants when needed at a given rental, and to keep up a stated pressure. The city reserved the right to purchase the works, when completed, or at the end of every ten years, at a price to be determined by arbitration. The obligations on the part of the city were as follows:

" 1. That it will give and grant to the said contractor, his successors or assigns, the exclusive right and privilege to erect and maintain water-works as herein contemplated, and also the free and unrestricted privilege and right at any time and all times to lay, build, construct, maintain, repair and tap all mains, pipes, hydants and other fixtures and appurtenances in, upon, under and through any and all Streets, avenues, lanes, alleys, roads and bridges within said city.

" 2. That the city shall and will promptly and punctually pay the...