Michigan Gas & Electric Co. v. City of Dowagiac

The city of Dowagiac is of the fourth class. The common council of the city, by resolution, accepted an offer of the United States, made through the Federal Emergency Administration of Public Works, of aid in financing the construction of a diesel electric generating plant and distribution system at an estimated cost of $202,000. The plan involved issuance of bonds of the city, secured by a mortgage upon the generating plant and distribution system and revenues therefrom, accompanied by a franchise which, in case of foreclosure of the mortgage, would enable the purchaser to operate thereunder…