Brand v. Water Commissioners

242 Mass. 223
Massachusetts Supreme Judicial Court·Decided June 30, 1922·Published·Cited by 20 cases

Opinion

De Courcy, J.

The individual petitioners make no claim to be furnished with water, but join on behalf of the Suburban Land Company Inc., which will be referred to herein as the petitioner. This corporation formerly was the sole owner of a tract of land in Billerica known as Nuttings Lake Park. It divided the land into house lots, and erected cottages thereon for summer residences. About two hundred of these have been sold to various owners, and each year three hundred are rented to tenants for a season beginning April 15 and ending October 15. Prior to July, 1917, the petitioner supplied with water all the houses on this tract, from a water system of its own. This system became inadequate, and the company applied to the board of water commissioners of the town to extend the water mains to said tract. The board consented to do this, provided the petitioner would pay for all water used by the occupiers of said premises at the rate of thirty cents per thousand gallons. Accordingly they extended the mains, installed one meter, and since have supplied water to this meter: from which point the water is distributed by the land company through its own pipes to each of the five hundred houses upon said tract. All the water so furnished to the land company has been charged to it at the rate of thirty cents per thousand gallons, regardless of the amount consumed; and the company in turn furnishes this water to the occupiers of the five hundred cottages, and charges therefor such rates as it and said occupiers may mututally agree upon.

The board of water commissioners, under the authority of the statute empowering the town to supply its inhabitants with water (St. 1897, c. 471) have issued a schedule of regulations and water rates which provides that all consumers shall pay annually in advance one of the minimum rates covering a certain amount of water as specified therein. The $6 rate allows eighteen thousand gallons consumption, and the $12 rate forty thousand gallons. All water used in excess of the quantity allowed under the minimum [226] rate must be paid for quarterly according to the following schedule of rates:

“Under 40,000 gal. per annum. -33% per M gal. 40,000 gal. to 100,000 gal. per annum .30 per M gal. 100.000 gal. to 200,000 gal. per annum .25 per M gal. 200.000 gal. to 500,000 gal. per annum .20 per M gal. Over 500,000 gal. per annum. .18 per M gal.

It is the contention of the petitioner, that the rate charged to it of thirty cents per thousand gallons is unjustly discriminatory. Before considering the legal principles involved, it is to be noted that three salient facts are established. The first is that the average occupier in the town, paying the annual $6 or $12 minimum rate, pays thirty-three and one third cents per thousand gallons. The amount of water used by the summer cottager probably would not exceed the allowance under these annual minimum rates. The second fact is that the Boston and Maine Railroad and Talbot Mills, which are the only other consumers of more than five hundred thousand gallons, and which pay therefor at the rate of eighteen cents, use the water for commercial purposes. The third is that the petitioner does not seek to have water furnished to it as an occupier of any building; but its sole purpose is to resell and distribute that water to the occupiers of the five hundred summer cottages. If the petitioner should receive the water at the eighteen cent rate, and resell it to the cottagers at that price, these cottagers would be supplied at a considerably smaller cost than the permanent inhabitants of the town; while if the petitioner should resell it at the average rate paid by such inhabitants, it would receive a large profit on the resale of the town water.

It is conceded that the town of Billerica through its water commissioners is engaged in a public calling. Originally it seems to have been the accepted doctrine that while a public service company must serve all at reasonable rates, there was no law against discrimination as such. Fitchburg Railroad v. Gage, 12 Gray, 393. Parker v. Boston, 1 Allen, 361. Spofford v. Boston & Maine Railroad, 128 Mass. 326. The modern tendency undoubtedly is to regard discrimination by such corporations as inconsistent with the duty owed to, and the corresponding legal [227] right in, the public. 2 Wyman on Public Service Corp. §§ 1290, 1300. Weld v. Gas & Electric Light Commissioners, 197 Mass. 556, 557. Shaw Stocking Co. v. Lowell, 199 Mass. 118, 121. But even at common law it is generally recognized that discrimination of rates is permissible, within reasonable limits, except as between consumers who receive the same service under similar conditions. This is especially true in cases of water, gas and like companies, where a different rate may be made per unit of service to large users, or to persons making different uses of the service, according to substantial authority. Indeed the petitioner’s claim is based upon the assumption that different rates may reasonably be provided for large and small consumers of water. Silkman v. Water Commissioners of Yonkers, 152 N. Y. 327. Metropolitan Electric Supply Co. Ltd. v. Ginder, [1901] 2 Ch. 799. St. Louis Brewing Association v. St. Louis, 140 Mo. 419. Boerth v. Detroit City Gas Co. 152 Mich. 654.

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Brand v. Water Commissioners, 242 Mass. 223 (Mass. 1922).

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