American Thread Co. v. Milo Water Co.

146 A. 695, 128 Me. 218, 1929 Me. LEXIS 83
CourtSupreme Judicial Court of Maine
DecidedJune 14, 1929
StatusPublished
Cited by1 cases

This text of 146 A. 695 (American Thread Co. v. Milo Water Co.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Thread Co. v. Milo Water Co., 146 A. 695, 128 Me. 218, 1929 Me. LEXIS 83 (Me. 1929).

Opinion

Philbrook, J.

Case on report. The plaintiff, herein designated as the Thread Company, is a manufacturing corporation having an established place of business at Milo, Maine. The defendant, herein designated as the Water Company, is a public utility furnishing a general water service, including fire protection service, in said town.

In addition to, and apart from its manufacturing plant, the Thread Company owned a certain parcel of real estate, with buildings thereon, situated in said Milo and locally called the Gubtill Farm. This farm property was on a street known as Park street and was approximately three thousand feet northerly from the northerly terminus of the Water Company’s six inch service main on that street. The Thread Company desired the Water Company service at its farm and requested extension of the Park street main so as to furnish such service. This the Water Company declined to do on account of the heavy initial cost involved and lack of funds to defray such expense.

Thereupon, under date of June 17, 1920, the Thread Company wrote the Public Utilities Commission, briefly describing the situation, its desire for water service, the willingness of the Water Company to furnish the same, provided it could borrow the necessary capital to make the extension, and asking suggestion as to the manner in which the financial factor in the problem might be met. On June 28 the Commission wrote the Water Company to ascertain what the latter intended to do. To this letter, under date of June 30, the Water Company replied that their estimate of the cost of the extension of the Park street main, as requested by the Thread'Company, would be approximately six thousand dollars, [220]*220which sum it would be impossible for the Water Company to borrow under existing conditions, and that it could do nothing definitely until the Commission should send an engineer to make an estimate of the value of the water plant and whether the Water Company would be entitled to an increase of rate. Under date of July 1, the, Commission wrote the Thread Company that they had instructed their chief engineer to go to Milo and confer with the two interested companies, and suggested that the Thread Company take under consideration the proposition “of assisting in the proposed extension to the extent of taking bonds with a view of being reimbursed by the company under some form of contract to be approved by the Commission. This is only a suggestion and we would like to have you consider it. Undoubtedly a public hearing will be ordered in this case at which all interested parties will have opportunity to express their views to the Commission.”

In accordance with the suggestions contained in this letter from the Commission, the parties, on July 24, submitted a tentative draft of a contract to the Commission for its examination. Replying the Commission stated that it had no objection to the contract but made some suggestions as to size of the proposed service pipe and modification of rates agreed upon by the parties to the end that those rates would comply with regulations against discrimination.

Up to this time the Commission had done no official act and these details are briefly sketched in as a background to the picture and to show, among other things, that the first suggestion of a contract came from the Commission and not from either of the parties.

On September 13 three copies of the contract, redrafted and duly executed by the parties, were sent to the Commission for approval, and on November 10, under the hand and seal of that Commission the contract was. officially approved, the decree containing the following: “The approval of the contract is subject to all conditions in the matters of rates, services and practices, and the Commission retains full regulatory powers and jurisdiction under the contract as now made or as it may be modified or renewed.”

The instrument thus executed and approved bears date of August 31, 1920, and is the contract' involved in this case. The outstanding provisions of the agreement are: (a) that the Thread [221]*221Company would at once enter upon the work of installing the necessary service main on Park street, with service tees as requested by the Water Company, and a hydrant at the terminal point of the extension; (b) that the Thread Company would keep an accurate record of the cost of this extension and render to the Water Company an itemized statement thereof; (c) that when the Thread Company was ready to receive water service it would make, execute and deliver to the Water Company a lease of the extension at an annual rental of $402.50; (d) that the Water Company should furnish service to the Thread Company at the following rates, viz., for hydrant service $37.50 per year, and for all other service used by the Thread Company $1.00 per day; (e) that the amounts paid by the Water Company as rental should be credited on the total cost of the extension with interest on said cost; (f) that when the principal sum representing the expense of making said extension, with interest, should be fully paid by such rental, or otherwise, the Thread Company would make, execute and deliver to the Water Company a good and sufficient bill of sale of the extension, and thereafter .the Thread Company would pay for its water service the regular published tariff rate applicable to the service received by it; (g) that during the term of the lease the Water Company should keep the extension main in repair and might furnish service to other persons through said extension; (h) that subject only to the hydrant service being assumed and paid by the Town of Milo, the Thread Company agreed to accept and pay for service at its Park street property at the rates named in the contract until the initial cost, and interest hereon, were fully paid; (i) that readiness on the part of the Water Company to furnish service should be sufficient to charge the Thread Company at the rates specified in the contract.

The service main having been installed, the Thread Company, under date of November 1, 1920, executed the lease called for by the contract, the terms thereof being in harmony with the contract.

It should be here observed that on November 8, 1920, with consent of the Public Utilities Commission, the Water Company filed a schedule of rates made in harmony with the contract and the same were approved by the Commission. Nate schedules for service rendered to the Town of Milo, to business corporations, and to in[222]*222dividual users of water, had been duly established before the contract with the Thread Company and lease of the extension by the same.

Under date of February 13, 1926, the Water Company filed with the Public Utilities Commission a complaint against itself, alleging that its then rates were unreasonable, insufficient and unjustly discriminatory, and asking for certain changes and increases therein. Public hearing on this complaint was held at Milo on October 20 and 21,1926. At that hearing the Thread Company, the Water Company, and other patrons of the service rendered by the Water Company appeared and were represented by counsel. The decree of the Commission bears date of September 30, 1927. Only so much of the decree as affected the relations between the Water Company and the Thread Company are to be here discussed.

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Cite This Page — Counsel Stack

Bluebook (online)
146 A. 695, 128 Me. 218, 1929 Me. LEXIS 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-thread-co-v-milo-water-co-me-1929.