195 Iowa 930 | Iowa | 1923
The written statement of facts is quite lengthy, and some matters are contained therein which appear to be not very material to the determination of the questions presented. A summary thereof, stated as briefly , « .... clS H13y D6, IOilOWS:
Plaintiff is an Iowa corporation, having its principal place of business in the city of Mason City. Mason City is a city of the first class, operating under the commission form of government. Plaintiff is engaged in operating four passenger motor busses for hire, each of a seating capacity of 20 passengers, between Mason City and Garner to the west, Charles City to the east, and Hampton to the south. The busses pass through or use as terminals 12 different cities, towns, or villages, making two round trips per day on each route. During the summer months, the busses are operated between Mason City and Clear Lake at more frequent intervals. Passengers are loaded and unloaded at the terminus of said routes within the city. The busses do no local business from one point to another within the city, or in any of the towns named. Each trip of the busses, leaving Mason City, starts from a point at the center of the business district of defendant city, and proceeds along the paved streets to the city limits for a distance of two miles or more, thence along paved roads and streets of other towns to the destination. The paving within the city has been paid for by the owners of property abutting thereon, under the laws of special assessments. The highways outside the city have been paved under the state law, and paid for by taxes levied against abutting or adjacent land, and from the motor vehicle fund, and from Federal aid. The busses weigh 4,000 pounds each, and have pneumatic tires. The busses, operating over certain streets on regular schedules, wear out the city paving and the paving outside the city, and such use will require repairs and replacement of the paving at earlier dates than would be
The ordinance in question, repealing a prior ordinance, was duly passed October 17, 1921. This action was brought October 24, 1921. The ordinance is too long to set out in full. It provides for licensing, regulating, taxing, and limiting .the operation of coaches, hacks, and omnibuses, however propelled, operating upon the streets of the city, and engaged in carrying passengers for hire over fixed routes, or between fixed points and on regular time schedules within the city, or within fixed points partly within and partly without the city, or within fixed points wholly without the city, but whose route lies over the
It may be well, at the outset, to refer to the statutes cited and relied upon by either side. Some of these are very long’, and only the portions will be quoted which it is thought have a bearing on the issues presented.
Section 680 of the Code, in Title Y, relating to powers of cities and towns, provides that they shall have power to make and publish ordinances not inconsistent with the laws of the state, for carrying into effect or discharging the powers and duties conferred by this title, and such as seem necessary and proper to provide for the safety, preserve the health, promote the prosperity, improve the morals, order, comfort, and convenience of such corporations and the inhabitants thereof, and to enforce obedience to such ordinances, etc.
Code Section 695 provides that they shall have the general powers and privileges .granted, and such others as are incident to municipal corporations of like character, not inconsistent with the statutes of the state, for the protection of their property and the inhabitants, and the preservation of peace and good order therein.
Code Section 753 provides that they shall have the care, supervision, and control of all public, highways, streets, etc., and shall cause the same to be kept open and. in repair and free from nuisances.
Section 754 of the Code provides:
“They shall have power to regulate, license and 'tax all carts, wagons, street sprinklers, drays, coaches, hacks, omnibuses, and every description of conveyance kept for hire; fix the rate and prices for the transportation of persons and property from one part of the city to another in the vehicles above named, and to require such persons to keep exposed to view, in or upon such vehicle, a printed table of the rates and prices so fixed; to establish stands for hackney coaches, cabs, omnibuses, drays and express wagons, and to enforce the observance' and use thereof; to prescribe the width of the tires of all vehicles habitually used in the transportation of persons or articles from one part of the city to another, and require vehicles and bicycles to carry lamps giving- sufficient light. ’ ’
The thirty-eighth general assembly (Chapter 275) repealed Chapter 2-B, Title VIII, of the Supplement to the Code, 1913 (Section 1571-m et seq.), in regard to registration of motor vehicles, and enacted in lieu thereof, and.as a substitute, an act in reference to the licensing and regulation of motor vehicles. The chapter contains 40 sections, and covers in detail the subject of motor vehicles. Words and phrases are defined; the operation of such vehicles is regulated to some extent, both within and without corporation limits; and the safety of the public is safeguarded. It provides (Section 19) that the registration fees imposed by this act upon motor vehicles, other than those of manufacturers and dealers, shall be in lieu of all taxes, general or local, to which motor vehicles may be subject. It fixes the license ^ee. It also provides (Section 28) that:
“Local authorities shall have no power to enact, enforce or maintain any ordinance, rule or regulation in any way in conflict with, contrary to, or inconsistent with the provisions of this act, or of any section or other subdivision thereof, and no such ordinance, rule or regulation of said local authorities heretofore or hereafter enacted shall have any force or effect, excepting, however, that (1) such powers as are now or may hereafter be vested in local authorities to enact ordinances and regulations, applicable equally and generally to all vehicles and other users of the highways, and providing for traffic or crossing officers or semaphores,- to bring about the orderly passage of vehicles and other users of the public highways on certain portions*937 thereof, where the traffic is heavy and continuous, as well as (2) the powers now or hereafter vested in local authorities to license and to regulate the operation of vehicles offered to the public for hire * * * shall remain in full force and effect, and all ordinances, rules and regulations which may have been or which may be hereafter enacted in .pursuance of such powers, shall remain in full force and effect; and provided, further, that local authorities may, by general rule, ordinance or regulation, exclude vehicles from any cemetery or * * * park * * * and provided, further, that the local authorities of any city, town, or city and county may impose additional restrictions to those herein contained applicable to vehicles exclusively used in the carrying of merchandise or articles of freight and of a capacity in excess of one ton in weight and may designate certain streets whereon heavy-laden vehicles may be excluded or declared to be- ‘one-way’ streets, may further, restrict or prohibit the use of trailers. ’ ’
Chapter 115, Acts of the Thirty-ninth General Assembly, in addition to repealing Section 754-a, enacted other provisions in regard to motor vehicles. That act provides (Section 1) that cities such as defendant “shall have power, under the restrictions and conditions hereinafter named, to regulate and license so-called jitney busses and all motor vehicles operating upon the streets and avenues of such cities and towns and engaged in carrying passengers for hire on a plan similar to that followed by street railway companies; to require such vehicles to be operated over reasonable routes and upon reasonable schedules; to impose penalties within the limits of Section 680 of the Code of 1897, for the violation of any ordinance enacted hereunder, not inconsistent and.in conflict with this act.”
Section 2 provides that such city may prohibit any such jitney bus or motor vehicle from operating on that part of any such street on which there is operated a street car line operating under a franchise, except that the busses may cross the street railway, etc.
“Section 3. No license shall be .granted by any such city or town unless and until the applicant therefor shall:
“ (a) File * * * an indemnity bond * * *' The said bond shall inure to the benefit of the estate of any passenger killed*938 and. to the benefit of.any passenger who may suffer bodily injury or property damage by reason of negligence * *
The said bond shall be in the penal sum of at least $10,000 if there are carried 10 passengers or more; provided, however, that,.in lieu of the bond, a liability insurance policy may be issued, etc. It further provides (bb that, after the bond or policy has been filed and approved, the applicant must file an application for license, describing the motor car or jitney bus, horse power, number, license number, seating capacity, and so on. It further provides (Section 4) that the city may grant or reject said application, and if it is rejected, other applications may be made, and likewise the city or town council may grant or reject the same. It further provides (Section 5) that it shall be unlawful for any motor bus to thus operate on any such streets without said license, and that any person or corporation who shall operate' any such motor bus without-a license shall be guilty of a misdemeanor, and punished, etc.
Other amendments and changes in the motor vehicles law are made in Chapter 159, Acts of the Thirty-ninth General Assembly. This has reference more to secondhand cars, transfers, delinquent fees, etc. Section 11 of the act applies to used-car dealers. In certain cases, fees are in lieu of tax.
Appellant also refers to Section 775 of the Code, in regard to regulations by cities as to placing electric wires, etc.; and to Chapter 7, Title V, of the Code, on street improvements; to Sections 834 of the Code, 835, Code Supplement, 1913, and 836, Supplemental Supplement, 1915, in regard to duty of street railways as to paving; and to Section 809 of the Code, in regard to duty of gas and water companies in reference to paving; also, Code Section 2075, making the property of. street railway companies subject to a lien for compensation of persons injured, and prior to their mortgage debts; also, Section 1056-a35, Code Supplement, 1913, defining franchises, and Section 1056-a30, Code Supplement,' 1913, providing for the manner in which franchises may be granted; also, Section 717 of the Code, giving-cities power to establish markets, .without charge or assessment ■upon any wagon or vehicle or horses, or the owner thereof, bringing produce to t’he market through the streets contiguous thereto, on market days and evenings previous- thereto.
Section 1571-m20, Code Supplement, 1913; Section 755 of the Code, giving- cities power to restrain and regulate the driving of vehicles and to prevent immoderate driving within the limits. Chapter 275, Acts of the Thirty-eighth General Assembly, Section 2, provides that the words “license fee” shall have the same meaning as “registration fee,” etc.
The ordinance in question seems to have been drawn, in part at least, on the theory that Chapter 115, Acts of the Thirty-ninth General Assembly, applied. Some of the language is that used in the statute.
Section 26 (f) of Chapter 275, Acts of the Thirty-eighth General Assembly, provides that cities and towns shall have the power to designate by ordinance suitable areas in which automobiles may be parked or left standing, and to prescribe rules governing the use of such areas.
Section 27 (d) provides that local authorities of any city or town may establish a suburban district in which the maximum speed of any vehicle shall not exceed 20 miles per hour, and a business district in which the maximum speed shall not exceed 15 miles per hour, if the city has erected signs, etc. A number of other provisions in regard to the registration of motor vehicles are found, beginning with Section 1571-m2, Code Supplemental Supplement, 1915. We do not understand either party to claim that any of these last named sections have any special application to the issues herein. Some of such provisions may have been changed by later enactments.
Section 1571-m20, Chapter 2-B, Title VIII, Code Supplement, 1913 (repealed by Chapter 275, Acts of the Thirty-eighth General Assembly), contained this language:
“Except as herein otherwise provided, local authorities shall have no power to pass, enforce or maintain any ordinance, rule or regulation requiring from any owner to whom this act is applicable any fee license or permit for the use of the public highways, or excluding any such owner from the free use of such public highways, excepting such driveways, speedways or roads as have been expressly set apart by law for the exclusive use of horses and light carriages or in any other way regulating*940 motor vehicles or their speed upon or use of the public highways,” with certain provisos.
- Section 28 of said Chapter 275 refers to some of the matters just quoted from Section 1571-m20, and seems to be the substitute for that section. We do not find in said Section 28 or in any of the existing statutes any provision as broad as that just quoted from Section 1571-m20, to the effect that local authorities have no power to require any fee, license, or permit for the use of the public highways, or in regard to excluding any owner from the free use. On the contrary, the later enactments do give lócal authorities power to license and pass certain regulatory ordinances, and in some cases refer specifically to prior sections of the statute. Section 1, Chapter 115, Acts of the Thirty-ninth General Assembly. See, also, Section 28, Chapter 275, Acts of the Thirty-eighth General Assembly, quoted, where cities are given “such powers as are now or may hereafter be vested in local authorities to enact ordinances and regulations, applicable equally and generally to all vehicles,” etc.
We have already quoted more at length from this section. We think we have now referred to all, or substantially all,- the statutes relating to motor vehicles, but the reference to some of them is quite general, because they seem to have little, if any, application to the present situation.
There are two main propositions in this case: First, whether the city has power, under existing law, to pass such an ordinance as it did; and second, whether, if so, the ordinance in question is, as a whole, so unreasonable as that it is void, or whether the invalid parts, if any, -are so intermingled with the valid portions that it is impossible for either party to follow the valid provisions. On the one hand, appellee contends that defendant city is without power to license, tax, or regulate the operation of plaintiff’s busses. To hold as broadly as appellee contends would be to say that, because plaintiff has paid the state fee of $22.50, and is engaged in intercity business, it may, with its principal place of business within the ci-ty and its terminal within the city limits and on the streets, have the right, .without interference or any license or regulation by the city, to park its cars — any number of cars — in the congested business
As to the rate of speed in the city, it is true that Section
Appellee also contends that many of the provisions of the ordinance are unreasonable, and that, therefore, the entire ordinance is void.
Plaintiff is a common carrier, a carrier of passengers for hire. Its busses are motor vehicles. Its use of the streets of the city in the prosecution of its business is a special and extraordinary use, and for private gain. The questions presented are somewhat new, and the statutes on the subject are of recent enactment, numerous, and may not be entirely clear at all points. The legislature may deem it advisable to clarify this situation, particularly in regard to the rights of common carriers passing through cities and towns, or hawing terminals in several different towns, and the rights of the cities and towns in regard to regulating such carriers, and perhaps, - too, in regard to intercity motor vehicles which are not common carriers.
1. The public highways and streets are for the use of the public. The public may use them for all ordinary travel. The public is comprised of more persons than those who live within a certain territory, as a city or town. A person driving his automobile across the state may pass through a city, and without taking out a license. As. to such, the motor vehicle acts make no distinction, as between intercity and intracity travel. However, even such travelers clearly are subject to some regulation. To illustrate, in regard to parking ears, etc. Some of the prior statutes do make a distinction in this respect, and as to drays and the like, and provide for licensing and regulating such vehicles when operated for transportation from one part of the city to another. See Code Section 754. Doubtless, plaintiff would have the same right to pass through a city or town, subject to perhaps more stringent regulations because of the size and weight of such busses. They are in a different class. These busses weigh probably 6,000 pounds, when loaded. Strictly
City of Argenta v. Keath, 130 Ark. 334 (L. R. A. 1918 B 888, 197 S..W. 686), cited by appellee, is not directly in point, as claimed, for the reason that the Arkansas statute is quite different from the Iowa law in regard to motor vehicles. The Arkansas act provided that no owner of a motor vehicle wrho shall have obtained a certificate from the commissioner shall be required to obtain any other license or permit to use and operate the same, “nor shall such owner * * * be excluded or prohibited * * * nor be required to comply with other provisions or conditions as to the use of said motor vehicles, except as in this act provided.” Section 7429, Crawford & Moses’ Digest of Statutes of Arkansas, 1921. The act contains other provisions that cities and towns may regulate and license vehicles which are used within their limits for public hire. The city of Ar
The Iowa act, Chapter 115, supra, contains no such limitation as is found in the Arkansas act. On the contrary, it does authorize cities and towns to regulate and license jitney busses and “all motor vehicles operated on the streets and avenues of such cities and towns. ’ ’
In New Jersey cases cited in the note to L. R. A. 1918 B, 892, it was held that a city empowered by statute to make and establish ordinances to license and regulate cart men and vehicles used for the transportation of passengers, baggage, etc., is not authorized to require a license tax for revenue from a cart man who has his stand and lives in another city, and who comes into the city enacting the ordinance, for several loads of furniture, to be carried to the city where he resides. The court said, in substance, that the inconvenience attendant upon the exercise by every municipality in the state of the power of excluding from its limits all unlicensed vehicles engaged in transporting goods or passengers for hire, is manifest. Its legitimate operation would require the owner of such vehicle to obtain a license, not only from the authorities of the place where his business had its headquarters, but also from every neighboring town into which their casual engagements might call them, or else to unload their vehicles at the border line. A general law having effects so burdensome is not to be anticipated, and only unequivocal language could convince a court that such legislation was intended. But the court said that the statute under consideration was not of that character; that its terms were satisfied by holding that license taxes are to be imposed only by that municipality in which the business or occupation is carried on or conducted. The tax sought to be imposed in that case was for revenue. We are not holding in this case that every city or town through which plaintiff’s busses pass may impose a tax. We are passing only upon questions arising under the situation here presented. It may be that, if the rights of
Ex parte Beck (Tex.), 241 S. W. 172, cited by appellant, is more nearly in point. The statutes of Texas are more like our own, and the facts are quite similar, although not precisely the same. In the Beck case, an ordinance had been enacted by the city of Temple, to the effect that “jitney” shall mean and include any motor vehicle engaged in the business of carrying passengers for hire over any regular route or routes, and between specific termini, stations, or places, or which is held out or announced by sign, voice, device, or advertisement so to operate or run, or having a particular time of departure and arrival at any terminus, station, or place, or operating or holding out to operate for the purpose of affording a means of local transportation similar to that ordinarily afforded by street railways, etc. It also made provisions for license fees, fines, and certain regulations covering motor vehicles conducted for public hire within the city limits of Temple, Avhether the carriage of such passengers were confined to the city limits, or Avere from any point within the city to any other point; and it provided that, the company should procure a license for each automobile, etc.
The relator, Beck, Avas convicted for a violation of the ordinance, and sued out a writ of habeas corpus. The facts in that case, stated as briefly as may be, are that'relator, with his family’, resided within the corporate limits of the city of Temple; that he and a partner Avere engaged -in. the business, of running- a garage and salesroom; that they owned .a Reo. speed Avagon, a motor vehicle equipped for carrying passengers;. that they began to operate one of the motor vehicles for hire betAveen the cities of Temple and Belton, 9 miles apart, both in the same
“But this provision shall not affect the right of incorporated cities and towns to license and regulate the use of motor vehicles for hire in such corporation.”
It wall be observed that this provision does not distinguish
“Local authorities shall have no power to enact * * * any ordinance * * * contrary to or inconsistent with the provisions .of this act * * * excepting * * * (2) the powers now or hereafter vested in local authorities to license and to regulate the operation of vehicles offered to the public for hire. ’ ’
In the Beck case, the court said:
“Relator contends that, having paid the license required of him by the state law as the operator of an ‘ interurban commercial motor vehicle,’ the city of Temple has no authority to require a license of him. * * * It appears * * * that in the conduct of his business, relator makes use of four streets in the city of Temple. He picks up passengers at four points in the city. If he can do this and not be responsible to the ordinance in question because the ultimate destination of his passengers is to a point outside, or from a point outside to points within the city, he could, according to the logic of his contention, use every street in the city, go to and receive passengers from every residence within the corporate limits, provided their destination was to a point outside, and likewise deliver passengers to every house, and over every street, so long as their passage began at an outside point. If he could use one vehicle to conduct such business, with equal reason a hundred could be used for the same purpose, if the demands of the business required it. The streets are improved and maintained by the city for the ordinary use and convenience of those living within its limits, or who may be passing through, or have occasion to pass over them in the ordinary course of trade or pleasure. The streets are being used by relator in the conduct of a commercial enterprise for his own financial gain. They are a part of his business equipment. In Sacramento v. Stage Co., 12 Cal. 134, the court, in discussing a question very similar to this, disposed of it in the following language; the quotation being the entire opinion: ‘Under a provision of the city charter, the authorities have power “to levy and collect a license tax on theaters, and on*948 trades, professions, and business, ’ ’ etc. Under this section of tbe charter, they imposed the tax on the defendants, who are a company whose office and place of business is in the city, but whose business is the carriage of passengers from and to the city. The question is made whether, inasmuch as the larger portion of this work of transportation is done without the territorial limits of the city, the authorities have a right to levy this tax upon them; and on this question we have no doubt. The company receive, and discharge their passengers, and make contracts here for their conveyance, and they have their offices and property here, within the protection of the municipal laws.’ The mere fact that the business of carrying the passengers is not within the municipal limits does not make the receiving and discharging of them and for contracting for them less a business here. If this business is not a business in Sacramento, it is difficult to say where it is. The company have as much need of the protection of the laws of the corporation, and are as much interested in the police expenditures, especially for streets, roads, etc., as any other persons, and, we think, are within the words and spirit of the taxing power.’ * * * The city of Temple is in no way undertaking to interfere with the authority granted by the state to an interurban commercial motor vehicle operator. It is seeking only to license and regulate one who is using the streets for business purposes under authority expressly conferred upon it by the legislature in granting its charter, and reserved to it in Section 25 of the act of the legislature of 1917, heretofore quoted, and which is still in force. Eelator resides within the corporate limits of the city; his business home is there; he maintains within the city the vehicles for the operation of the enterprise; his business originates in the city, and his route begins and terminates there; he uses the streets of the city in the manner hereinbefore indicated, in the conduct of his business. Under the agreed facts, we cannot persuade ourselves that relator is not within the purview of the ordinances of the city, in the matter of requiring a license.”
The writ of habeas corpus was denied.
We think this authority is quite in point, in so far as it relates to the question of plaintiff’s being engaged in intercity business, and sustains our conclusion that, under the facts in
2. It may be conceded that, in a number of instances, some of the prior provisions are inconsistent with some of the provisions of the Motor Vehicle Acts, and as to such, of course, the prior power granted is withdrawn. But we cannot agree with the trial court and with appellee that all, or substantially all, power theretofore granted to license and regulate motor vehicles under the circumstances of the instant ease has been
There must be a grant of some sort, either by an ordinance under delegated power or otherwise. It is argued by appellee that the court held in the Iluston ease that plaintiff was lawfully engaged in the bus business without a license. As we understand the facts in that case, plaintiff had paid all state and city license fees and taxes. Whether plaintiff is a public utility corporation, and a franchise is necessary; it is unnecessary to determine, and we do not pass upon'that question.
While we shall not stop to analyze the different sections of the Code and the Motor Vehicles Act, there is one provision which should be noticed. Section 1, Chapter 115, Acts of the Thirty-ninth General Assembly, before quoted, grants power to cities to regulate and license all motor vehicles carrying passengers for hire, “on a plan similar to that followed by street railway companies, ’ ’ etc. It is argued by appellee that it does not carry passengers on such a plan, and that, therefore, the statute does not apply to it. To this we cannot assent. It is true, these passenger busses do not operate on a plan exactly like that followed by street railway companies. That was not contemplated, or the legislature would have so stated. It is true, as contended by appellee, that, generally speaking, a street railway is local, derives its business from the streets along which it is operated, ■and is in aid of the local travel upon those streets; while a commercial' railway usually derives its business from a large area of territory, and not from the travel on the streets. City of Aurora v. Elgin, A. & S. Traction Co., 227 Ill. 485 (81 N. E. 544, 547). Other cases are cited along the same line. Again, the term “street railway” means those street railroads which, before the introduction of electricity, used mules and horses as motor power for drawing the street car over its tracks for the use and convenience of the local public in a municipality. Diebold v. Kentucky Traction Co., 117 Ky. 146 (63 L. R. A. 637, 640). And now come the newer heavy motor trucks and passenger cars. True, they do not run on rails. The shape, seating arrangement, and so on are much the same. More important still is the fact that the purpose is to transport passengers for
3. Plaintiff, in the petition, assigns a number of reasons why the ordinance is unreasonable. We shall notice only those which are argued, and take them up in substantially the order in which they are Presented,
Perhaps we should notice briefly another matter first. Plaintiff contends that, having paid the registration or license fee exacted by the state law, it is exempted from the payment of any other tax. As we understand the argument for appellant city, it concedes that plaintiff may not be taxed by the city for ordinary property taxes or revenue. License fee and license tax are sometimes referred to as though the terms were synonymous. This is so in the arguments in this case. The plaintiff contends that, under the circumstances, the tax or license fee provided for in the ordinance in question is a taxation exacted for the sole purpose of raising revenue. Appellants’ claim is that it is a license fee, and that, though some of it may incidentally be used for the upkeep of the streets and the like, this does not invalidate the ordinance. It may be necessary to refer to this- matter again in the discussion of. the question as to whether the ordinance is or is not unreasonable.
The provisions of. an ordinance may, in some instances, be so' glaring as that, on the face of the ordinance itself, it should be held to be unreasonable. Iowa City v. Glassman, 155 Iowa 671, 673. However, as a general rule, in the absence of evi
In Desser v. City of Wichita, 96 Kan. 820, 824 (L. R. A. 1916 D 246, 248), it is said that:
“While monopolies are against public policy, this is a rule of the common law, not binding upon the legislature. Underlying all this authority is the substratum of reasonableness; for arbitrary, unreasonable, or capricious enactments are not a use, but an abuse, of legislative power. Nevertheless, those who pass ordinances for a city, like those who enact statutes for a state, are primarily the judges of what reasonable requirements are, and it is not.for the courts to interfere unless and until it appears beyond question that the thing done was not a use, but a misuse, of power.”
Some of these cases are on the question of the amount of the license fee, and will be referred to later.
Plaintiff first contends that the ordinance is unreasonable for that it prohibits plaintiff from operating on a street where a street car line is operated, and provides that the bus'may not take on or discharge passengers within one block of a street ear line. Chapter 115, Acts of the Thirty-ninth General Assembly, Section 2, authorizes cities to do this. We think the reason for it is apparent. ■ We think, too, it is not unreasonable that they should not be allowed to take on or discharge passengers within one block of a street car line. Naturally, this would be done at a street crossing, rather than in the center of a block. In loading and unloading from one to four of these busses at one time, there would be likely to be, at certain times at least, a large
The ordinance requires that the company shall file a bond in the sum of $1,000, guaranteeing continuous and faithful operation of the vehicle or vehicles upon the route established and according to the schedules, during the license period, and file a written acceptance with the clerk, agreeing to operate said vehicles over the entire route, as provided therein, and provides that, for failure so to do, the license may be revoked, etc. It has been the practice in this state, and in some instances the statute requires it, that the corporation shall file an acceptance and give some security that the privilege granted would be exercised. Huston v. City of Des Moines, supra; Desser v. City of Wichita, supra. It is a regulatory provision, and we think it proper that the city should require some guaranty that the busses will be operated if the license be granted. It may be, as contended by appellee, that the city could not require plaintiff to operate the busses and maintain its schedules over the entire route between the different towns, if the ordinance means that; but there is reason for maintaining the schedules within the city limits, and for providing that, if a license is granted, the busses shall be operated. It might have an important bearing upon the question whether the council should grant or reject another application by some other company. To illustrate: Suppose there were already three or four separate bus lines being operated into the city. That might be a reason for not granting another; or suppose there were no bus line of this character running into the city, and it were thought desirable that there should be one, and plaintiff should make application, be granted a license, and then not operate its busses, thus excluding any
The Uext contention of appellee is that the provision requiring “an annual license fee or tax” of $300 for each vehicle is unreasonable; that it is' so large as to indicate that it is, in truth, intended as a revenue measure. The rule as stated in the books is that the power given by the statute is to license, and not to tax.
“Where the grant [of power] is not made for revenue, but for regulation merely, a much narrower construction is to be applied” than where it confers the power also of raising revenue. But even where it is for regulation merely, “a fee for the license may still be exacted, but it must be such a fee only as will legitimately assist in the regulation; and it should not exceed the necessary or probable expense of issuing the license and of inspecting and regulating the business which it covers. * * * But the limitation of the license fee to the necessary expenses will still leave a considerable field for the exercise of ■ discretion when the amount of the fee is to be determined. * * * In fixing upon the fee, it is proper and reasonable to take into account, not the expense merely of direct regulation, but all the incidental consequences that may be likely to subject the public to cost in consequence of the business licensed. In some cases, the incidental consequences are much the most important, and, indeed, are what are principally had in view when the fee is decided upon. * * * And all reasonable intendments must favor the fairness and justness of a fee thus fixed; it will not be held
See 3 McQuillin on Municipal Corporations, Section 991; Huston v. City of Des Moines, 176 Iowa 455, 475; Desser v. City of Wichita,, supra.
The name (license) cannot be used as a guise for other ulterior purposes. Keckevoet v. City of Dubuque, 158 Iowa 631, 643.
The mere fact that license fees may result in producing a revenue which may be paid into the city treasury for the use of a special or the general fund does not, of itself, deprive the assessment of the character of a police regulation. Huston v. City of Des Moines, supra, at page 474; Ex parte Gregory, 20 Tex. App. 210 (54 Am. Rep. 516).
In the Keckevoet case, a wharfage fee of $145 per year was held, ruider the circumstances of that case, excessive and unreasonable. But it was shown that the expense incurred by the city in the maintenance of the wharf was very slight, and that the plaintiff’s earnings from his business were very small.
In the Glassman case, supra, the ordinance provided for a license fee of $5.00 per day, or $350 per year, for a peddler on foot, or a correspondingly greater amount for a peddler using a one-horse or a two-horse conveyance. The court said that the business involved no such extraordinary wear and tear on the streets of the city as 'would justify any such exaction. The peddler doubtless would cover all the streets. In the instant case, these heavy busses of two or three tons’ weight pass over the streets from 30 to 40 times a day, on regular routes. Surely, there is no comparison between the two cases, in so far as it relates to the wear and tear of the streets and the cost of repaving,which, under the rule Before stated, is a proper subject to be considered. A failure by the city, to keep its streets in repair might result in a single damage suit for an amount many times that of the license fee. We shall not stop to review all the cases cited. In the Desser ease, the license fee required for operating motor vehicles was $25 to $35, and an additional license of $300 to $400, according to the capacity of the vehicle. The ordinance was' upheld.
The plaintiff is exempted from payment of ordinary taxes
4. Appellee contends that the ordinance in question is unconstitutional, in that it grants to the city council arbitrary power to grant or refuse a license without any reason. We do not find that that question is raised in the pleadings. The question whether it is arbitrary has been considered in connection with another subject.
5. It is thought by appellee that the ordinance is contrary to public policy, because the busses would bring people to the city, and thus be a benefit. In that sense, it might be a benefit to the city and to persons living on the routes. This would be true, also, in regard to railroads, interurbans, etc. But it has never been and is not now the policy of the state that the cities and towns should not have supervision and control over their streets, and there is nothing in any of the recent legislation to indicate that the legislature intended to abrogate entirely their control of the streets in regard to motor vehicles, as contended
6. Finally, it is contended by appellee that the ordinance is unreasonable because of the requirement that plaintiff shall give a bond in the sum of $50,000 for each bus; that such a bond is prohibitive. The bond should be in a substantial amount. The statute itself, Chapter 115, Section 3, Acts of the Thirty-ninth Genera^ provides that it shall be at least $10,000. The bond inures to the benefit of the public, as well as the city. The statute so provides, and we held in the Huston ease, supra, at page 473, that it was proper to do so, and further, that the size of the bond might result in keeping irresponsibles off the street, and have a tendency to make drivers more careful. It is true, as contended by appellants, that a single collision might result in the death of a number of people, wherein large damages might be recoverable. And it is true also that the plaintiff is irresponsible, in the sense that, in a few hours, it could remove all of its property to another state. There is no lien on its property, as in the ease of a street railroad. Code Section 2075. But plaintiff would be required to give bonds for its four busses in the sum of $200,000, at an expense of $2,400 a year for the bonds alone, and this in addition to the license fee and other requirements. The amount of such bonds and the cost thereof are so large as to impress one at a glance that in that respect the ordinance is unreasonable and prohibitive. We are of opinion that this provision is so unreasonable
There is some argument as to whether there would be liability on the bond for an accident occurring outside the limits of defendant city. There may be some doubt about that, but we do not feel called upon to determine that point. The question will probably arise when, if ever, an action may be brought for such an injury.
It is further objected by appellee that the bonds must be given before tiiey know.whether a license will be granted. It is so written in the statute. We suppose there would be no liability on the bonds unless the license was granted. That is a part of the company’s equipment, or rather preparation to transact business. The $300 license fee would, of course, be returned if no license were granted.
The arguments of counsel upon either side have taken a wide range. Some questions are presented which we think it unnecessary to determine at this time. The opinion is already long, and we shall not pursue the subject further. For the reason stated, we hold that the ordinance is invalid. The judgment is— Affirmed.