v.
CITY OF PORTLAND
delivered the opinion of the court.
The charter of the city of Portland (Section 379) requires that such contracts shall be let to the lowest responsible bidder for either the whole of the improvement, or such part as will not materially conflict with [*106] the completion of the remainder. It is contended by counsel for plaintiff that it is shown by the complaint that the contracts in question were let to the Oregon Hassam Paving Company in violation of the above provisions of the charter, without competition, under circumstances creating a monopoly in favor of that company, and therefore void; that by designating the entire improvements of the streets as a “Hassam pavement” in the resolution of the council and in the notice for proposals given by the executive board, other responsible parties were precluded from submitting bids for the work. In short, plaintiff complains that if the same specifications and requirements as to the improvements' were made, omitting only the name “Hassam pavement,” then other responsible persons could and would bid for the construction of the work, and competition would arise, to the advantage of the city and the taxpayers.
“The mode constitutes the measure of power.”
2 Elliott, Roads and Streets, § 665; 2 Dillon, Municipal Corporations, § 783; Nicolson Paving Co. v. Painter, 35 Cal. 699, 706. Officers of the city of Portland had no authority to let such contracts except to the -“lowest bidder.”
This question, upon which there is a conflict of authority, is not a new one. Several of the courts have plainly expressed their views in favor of the principle here announced. In Fishburn v. City of Chicago, 171 Ill. 338, 342 (49 N. E. 533: 39 L. R. A. 482: 63 Am. St. Rep. 236), the court said:
“The asphaltum offered for sale by the Barber Asphalt Company has no superior legal right in the markets, and is not entitled to be given any by the terms of the ordinance, nor is it lawful for the ordinance to give it [*108] an improper preference, but it should be left to depend upon its merits for any monopoly it may obtain in the good opinion of the public. * * An ordinance making it indispensable that an article or substance in the control of but a certain person or corporation shall be used in the construction of a public work must necessarily create a monopoly in favor of such person or corporation, and also limit the persons bidding to those who may be able to make the most advantageous terms with the favored person or corporation. If all the ordinances adopted by the city council of the city of Chicago providing for the paving of streets and public places in the city should select the stock in trade of a particular firm or corporation ' as the only material to be used in making such street improvements, the evil would be intolerable; and, if they may lawfully select such article in one ordinance it cannot be unlawful to make it the settled policy of the city that material for paving streets shall be purchased of but one seller.”
In Smith v. Syracuse Improvement Company, 161 N. Y. 484 (55 N. E. 1077), it appeared that proceedings were taken to pave a street in the city of Syracuse, N. Y., with “vitrified paving brick, manufactured by the New York Brick & Paving Company, of Syracuse, N. Y.” About that time proceedings for the improveing of the same street with a different kind of material were initiated. Bids were submitted for both materials. The lowest bid for the laying of the brick pavement was less than that for any other material, and was ignored. The plaintiff, a general taxpayer, brought suit, averring that the contract had not been let to the lowest bidder. This contention was met by the claim that the proceedings for laying the brick pavement were wholly void, for the reason that a particular kind of brick controlled and manufactured by one company alone was specified; that this stifled competition and tended to create a monopoly. The New York Court of Appeals sustained this view, and held that the petition asking for the pavement of a [*109] portion of such street with vitrified paving brick manufactured by the New York Brick & Paving Company of Syracuse, N. Y., and all the proceedings thereon, by the common council, were in violation of the provisions of the charter of the city which required that a contract for such work be let to the lowest bidder, and therefore void.
In the case of National Surety Company v. Kansas City Hydraulic Press Brick Company, 73 Kan. 196 (84 Pac. 1034), it appeared that proceedings were taken and a contract entered into for the improvement of a street with “No. 1 vitrified paving brick, Diamond brand,” manufactured and controlled exclusively by one company. It was alleged that other kinds of vitrified paving brick could be obtained, equal in all respects to the kind specified, and that, while the contract in question was not made with the Diamond Brick & Tiling Company directly, the company was interested in it, and actively promoted the securing of the contract. The contract was held void. The statute required the work to be let to the “lowest responsible bidder.” At page 203 of the opinion the court said:
“The object and purpose of this provision of the statute is to insure competition in the letting of contracts for public improvements. This is the uniform ruling of courts in reference to similar statutory and charter provisions governing cities.”
See, also, Shoenberg v. Field, 95 Mo. App. 241 (68 S. W. 945) ; Smith v. Syracuse Improvement Co., 161 N. Y. 484 (55 N. E. 1077); Larned v. City of Syracuse, 17 App. Div. 19 (44 N. Y. Supp. 857) ; Allen v. Milwaukee, 128 Wis. 678, 682 (106 N. W. 1099: 5 L. R. A. [N. S.] 680: 116 Am. St. Rep. 54: 8 Ann. Cas. 392) ; Diamond v. City of Mankato, 89 Minn. 48 (93 N. W. 911: 61 L. R. A. 448).
We think the demurrer to the complaint should have been overruled. The judgment of the lower court will therefore be reversed, and the cause remanded for such further proceedings as may be proper, not inconsistent with this. opinion. Reversed.