Boerth v. Detroit City Gas Co.

116 N.W. 628, 152 Mich. 654, 1908 Mich. LEXIS 909
CourtMichigan Supreme Court
DecidedMay 26, 1908
DocketDocket No. 38
StatusPublished
Cited by30 cases

This text of 116 N.W. 628 (Boerth v. Detroit City Gas Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boerth v. Detroit City Gas Co., 116 N.W. 628, 152 Mich. 654, 1908 Mich. LEXIS 909 (Mich. 1908).

Opinion

Carpenter, J.

(after stating the facts). Did the city of Detroit have authority to grant defendant the right to charge 80 cents per thousand cubic feet for fuel gas delivered to consumers within said city ? The charter of the city of Detroit confers upon it this power:

“To control, prescribe and regulate the manner in which the highways, streets, avenues, lanes, alleys and public grounds and spaces within said city shall be used and enjoyed. * * * To provide for and regulate the lighting of said avenues, streets and public places.” Detroit Charter (1904), chap. 7, § 34.

The act for the organization of gas light companies— under which act defendant is incorporated — contains the following provision (section 7133, 3 Comp. Laws):

“ Any corporation formed under this act * * * shall have full power to manufacture * * * and sell * * * gas * * * and shall have power to lay conductors for conducting gas * * * through the streets, lanes, or squares of any city, town or village where said corporation is located, or carrying on its business, * * * [657]*657which pipes or conductors shall be laid with the consent of the municipal authorities of such cities, townships or villages through which the same are laid under such reasonable regulations as they may prescribe.”

There is given by this language to the city of Detroit very broad powers. Without its consent a gas company cannot lay its pipes in the streets, and without so laying them it cannot furnish gas to the inhabitants of the municipality. The city may refuse to grant that consent. It is clear, too, that it may attach conditions to its consent. What conditions ? May it prescribe the rates at which gas shall be furnished to its inhabitants? The statute does not say in express terms that it can. Is it forbidden? It certainly is not forbidden in express terms. The only language in the statute limiting the authority of the municipality is to be round in the language authorizing the municipality to prescribe reasonable regulations for the laying of the pipe. Without undertaking to definitely determine what is meant by reasonable regulations, it is quite clear that nothing but unreasonable regulations are prohibited. Authority to prescribe rates then is not prohibited unless that authority may be properly denominated unreasonable. Is it. unreasonable ? There is no doubt that the municipality may determine for what length of time a gas company may use its streets for conveying gas. It had, therefore, authority — an authority exercised in this case — to determine that the gas company should use the streets for a period of 30 years, for the purpose of supplying its inhabitants with gas. Is it unreasonable for the city to prescribe the rates at which gas shall be furnished to its inhabitants ? If the city cannot prescribe those rates, consumers of gas must pay whatever price the gas company asks or resort to litigation, and pay what is there determined to he reasonable. Few consumers will resort to litigation. Indeed, gas bills are generally so small that it does not pay to question their amounts. If the rates are not prescribed it may be safely [658]*658stated that nearly all consumers of gas will pay without question whatever bills are presented to them. This is illustrated by Pingree v. Mutual Gas Co., 107 Mich. 156. There it appeared that for many years the Mutual Gas Company of Detroit had' charged an excessive amount for the gas it furnished. It is a fair inference that not one of its thousands of consumers questioned these bills for years. Indeed, the plaintiff in that suit, the late Governor Pingree — a man not likely to submit to illegal extortion — himself paid these bills without protest, and the only question in the case was whether that circumstance disentitled him to recover. As a practical proposition it may be said, then, that consumers must either pay the rates fixed by the company or the rates prescribed by municipal authority — in the absence, as in this case, of any action by the legislature. It may be said, then, that in order to safeguard the rights of its inhabitants who use gas, it is not only not unreasonable that the city should have the power to fix rates, but it is highly expedient, — indeed, it is necessary, — that it should possess that power. It is therefore quite clear that there is nothing in the statute which either in express terms or by proper construction prohibits the city prescribing rates at which gas shall be furnished to its inhabitants.

In this respect the case at bar differs materially from Freeport Water Co. v. City of Freeport, 180 U. S. 587, a case relied upon by complainant. In that case it was held by a divided court that the authority of the municipality to enter into a contract which prescribed water rates was limited by express statutory enactment. There is no such limitation in this case.

It has already been stated that the statute does not give the city express authority to prescribe rates. Can that authority be implied ? Does it pass as an incident to the authority to attach conditions to its consent that pipes may be laid in the streets ? This raises the most important question in this case. Complainant contends that the power of a municipality to prescribe rates cannot rest in [659]*659implication; that a municipality has not that power unless it is expressly granted. In support of this contention are cited many cases (Interstate Commerce Commission v. Railway Co., 167 U. S. 479, is the most important of these cases) relating to a grant of the legislative power of determining rates. The principle underlying these authorities is that there is a strong presumption against the grant of legislative authority. That principle and the authorities applying it have no application here. It is not contended that the city of Detroit has the legislative power of determining rates. That would be the power of regulating these rates according to its own wisdom from time to time precisely as the legislature regulates the rates of railroads. Complainant agrees with defendant that the city possesses no such power. The power to prescribe rates by contract — and that is the power which was exercised in this case — is a very different power from the legislative power of regulating rates.

Says the supreme court of Indiana in City of Indianapolis v. Gas-Light & Coke Co., 66 Ind. 396:

** This power to legislate within the authority delegated to them by law is distinct from the power to contract, although exercised by the same corporation. They cannot, by contract, delegate or restrict their legislative power, nor can they, merely by their legislative power, make a contract. These two powers need not be confounded. The exercise of the legislative power requires the consent of no person except those who legislate; while it is impossible to make a contract without the consent of another, or others.

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Cite This Page — Counsel Stack

Bluebook (online)
116 N.W. 628, 152 Mich. 654, 1908 Mich. LEXIS 909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boerth-v-detroit-city-gas-co-mich-1908.