The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-06-08
CITY WATER WORKS
municipalities Of the State Nay Have
Systems Of Their Own.
SUPREME COURT DECISION
They Are Not Required to Pur-
chase Existing Plants. Ether
The Case OF Helena's Sys-
tem-Deer Lodge Case.

Special Dispatch TO the Standard.
Helena. June 1.-THE supreme court to-
day. In an opinion by Chief Justice Penn
berton. decided that the law requiring
municipalities TO purchase existing water
plants before going into the water busi-
ness ON their own account Is unconstitu-
tional and void. The decision Is one of the
most important that tver came from the
Montana supreme court. as II destroys
the monoplies supposed 10 be enjoyed by
all water supply compa nies operating In
the cities and towns of Montana. The
question of the validity of the law came
up In "A suit brought by the Helena Con-
solidated Water company to enjoin the
city of Helena from advertising for bids
sor letting a contract for the construction
OF a water system. The contract with the
water company entered into by the city
ended Jan. 1, 1897. The city refused to re-
new the contract on the ground that the
rates charged were exorbitant. The water
company. having a monopoly OF the busi-
ness. refused to lower the rate, but the
city continued TO use the water. for the
use Of which the company brought action
TO recover, and that action Is still pend
ing. Then by a special election held early
In 1895 the people authorized the council
to extend the debt of the city so as to
procure water supply. The council ad-
vertised for bids and the water company
brought suit to enjoin the city. under
subdivision "a OF section is0o of the po-
litical code. which provides that munici-
palities must buy existing plants before
establishing systems OF their own. Judge
Blake granted the injunction and the city
appealed. II was understood that the COM
pany wanted 81. 10000 for its plant which
was considered by the city altogether too
high. No definite proposition to sell, how
| ever. was ever made by the company.
The supreme court holds that the city
Is under no legal or moral obligation TO
| purchase the existing plant before es-
| tablishing system of Its own. The two
provisos of the political code held by the
court to be unconstitutional were enacted
| by the fourth legislature in 1895. and were
known as the Phelps rider owing to
| the prominent part l.. @. Phelps, enc OF
| the owners OF the Great Falls water
works. took in securing Its passage. Most
OF the water works companies in the state
| assisted In maintaining a lobby In the in-
terests of the bill, which only passed af-
ter strong efforts had been made to defeat
II. The decision of the supreme court is OF
great Importance to every city in the
state.
Two other decisions by the court were:
State OF Montana ex rel, IL. johnson et
al vs.. the board Of county commissioners
| OF Deer Lodge county. This was an ap-
pcation for a writ of certiorarl to review
the action OF the board of county commits
sioners of Deer Lodge county In vacatine
| a road. The commissioners OF Deer Lodge
county made AN order vacating the road
running past the lands of Plaintiff John
son and others without appointing a board
OF viewers for the purpose Of assessing
the damages which might accrue TO those
affected by the discontinuance OF the
| road. The district court. by Judge Brant-
ly. quashed the writ on the motion made
| by the defendant board. From this action
plaintiffs appealed. Chief Justice Pember.
ton aifirms the action Of the district
court.
Montana National Bank OF Helena VS.
the Merchants National. from Lewis and
Clarke county. The suit involved the old
Helena Journal property. sold in attach
ment. Judgment for plaintiff was render.
ed The supreme court. by Justice Buck
remands the case TO the district court.