Pacific Gas & Electric Co. v. Sacramento Municipal Utility Dist.

DENMAN, Circuit Judge.

This is an action in equity brought by the plaintiff utility company to enjoin the defendant municipal utility district from issuing proposed bonds to finance the construction and operation of a light, power, and heat system to serve the district.

The gravamen of the complaint is that the bonds will be a charge and lien upon property in the district, including that belonging to plaintiff; that, unless restrained, the defendant will levy taxes upon plaintiff’s property to meet the district’s obligations under the bonds; that plaintiff’s -property will receive no benefit by…