Northern Maryland Power Co. v. Consolidated Gas Electric Light & Power Co.

4 Balt. C. Rep. 596
CourtBaltimore City Circuit Court
DecidedMay 9, 1927
StatusPublished

This text of 4 Balt. C. Rep. 596 (Northern Maryland Power Co. v. Consolidated Gas Electric Light & Power Co.) is published on Counsel Stack Legal Research, covering Baltimore City Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Maryland Power Co. v. Consolidated Gas Electric Light & Power Co., 4 Balt. C. Rep. 596 (Md. Super. Ct. 1927).

Opinion

STANTON, J.

For brevity the plaintiffs will be designated the Northern Maryland Company, and the defendant the Consolidated Gas Company. The case arises out of the following facts :

The Consolidated Gas Company acquired the franchise rights of certain electric power companies which were incorporated under the general law of this State. It has developed the use of electric light and power, and supplied the same to Baltimore City, and its environs since 1898. The territory served by it outside of Baltimore City extended to Elkridge, in Howard County. which is a small settlement about nine or ten miles from Baltimore City; and Brooklyn, in Anne Arundel County, which is also a small settlement immediately across the Patapsco River from the Baltimore City shore line. It also supplied a pleasure park to the east of Brooklyn, and about four to six miles from Baltimore City. At a more recent date, and about 1900, it extended service to Reisterstown, which is eighteen miles from Baltimore City; and also some portions • of Carroll County, which is about twenty-five or thirty miles. All of these extensions of service into the counties were prior to the year 1910, except possibly Carroll County.

In 1910 the Public Service Commission was created by an Act of the Legislature, and certain powers were conferred on and duties required of it, which are particularly enumerated in the Act.

Sec. 33 provides: “No gas corporation or electrical corporation incorporated under the laws of this or any other State shall begin construction or exercise any right or privilege under any franchise hereafter granted or under any franchise heretofore granted hut not heretofore actually exercised, without first having obtained the permission and approval of the Commission.”

In 1925 the Consolidated Gas Company extended its lines to the United States Proving Grounds at Aberdeen, and before doing so sought the approval of the Public Service Commission. The Northern Maryland Company protested the extension, but it was finally allowed, and the service was installed. Aberdeen is about 35 miles from Baltimore City; and within seven or eight miles of Havre de Grace.

The Northern Maryland Company was incorporated under the general law of 'this State, and it or its predecessors have been furnishing electric light and power to the City of Havre de Grace since about 1899.

The record discloses that negotiations were begun, and had been carried on between the Northern Maryland Company and the Consolidated Gas Company, looking to the purchase of the plant and equipment of the Northern Maryland Company.

About December, 1924, the City Council of Havre de Grace expressed dissatisfaction with the service being furnished by the Northern Maryland Company, and passed certain legislation dealing with the subject. The Northern Maryland Company says it had no notice of any complaints about its service other than one or more by individuals complaining of rates, which were satisfactorily adjusted. Pending the negotiations the City Council of [597]*597Havre de Grace passed an ordinance requesting the Consolidated Gas Company to furnish electric light and power service to the city and its inhabitants. The Consolidated Gas Company notified the Northern Maryland Company it proposed to enter the City of Havre de Grace to furnish the service requested. Thereupon the Northern Maryland Company complained to the Public Service Commission, because the Consolidated Gas Company had not applied to the Public Service Commission for permission to extend its lines, nor had it requested any approval of its plans.

The Consolidated Gas Company began the work of constructing its poles and wires, and the Northern Maryland Company filed the bill of complaint in this case, praying an injunction preliminary and permanent until the Public Service Commission could or would act.

On hearing in open Court for a preliminary injunction, it did not appear to the Court that such irreparable injury was imminent as to call for the extraordinary relief by injunction. If the Consolidated Gas Company was invading any of the plaintiff’s rights of way, adequate remedy at law was afforded, as well as for any damage done to its equipment, as claimed in the allegations of the bill. And if the Consolidated Gas Company had no right to extend its lines, it would have made an outlay in expense which it alone must bear. The Consolidated Gas Company submitted its plans for extending its lines and service to .Tarrettsville and Aberdeen, to the Public Service Commission for approval in 1925. The plaintiffs claim the Consolidated Gas Company must continue to submit its plans and obtain permission for any construction of poles, lines and equipment forming part of extensions into territory not heretofore served by it, not only because the franchise rights of the defendant company confine it in the exercise of those rights to Baltimore City, and its contiguous territory; but in addition, the language of Sec. 33 of the Public Service Commission law does not permit the defendant company to begin any construction under its franchise, which is in effect a construction under a new franchise and an invasion of the natural territory of the Northern Maryland Company; which territory it was primarily formed to serve, and which it has continuously served in the exercise of its franchise rights. And further that if the Consolidated Gas Company enters Havre de Grace, it will be destructive of invested capital in the Northern Maryland Company, and disturb service and rates to an extent which must eventually react to damage and loss of the public in that community.

This Court is asked to find some way to avoid such consequences, but many of the reasons assigned to invoke the writ of injunction to that end are more for the Legislature than the Court; unless it appears in what has been done by the Legislature, the situation is covered.

The defendant company contends that notwithstanding its past custom of submitting plans for extension to the Public Service Commission, it was more by grace, than in recognition of any legal duty or obligation so to do, and that it is not required by law to ask for permission from, or the approval of the Public Service Commission, because its franchise is State wide. That it can carry its lines and service to any point in the State where it finds a demand, without asking for the approval of the Public Service Commission. That the limitation on construction in Section 33 contemplates only the initial work in exercise of a franchise, and does not cover renewal or extension of its plant or equipment, irrespective of the territory it might invade; whether through counties, towns, or cities, except in so far as the Public Service law is regulatory in the enforcement and operation of the police powers of the State.

It has been repeatedly decided by the Court of Appeals of this State that when a franchise is accepted and acted upon, the money is invested to make productive the rights conferred under a charter, and thereby give it the nature of a contract, the State cannot, as a rule, by subsequent legislation limit or impair those franchise rights, and if done, only with compensation. These separate charters of the Consolidated Gas Company antedated the passage of the Public Service law by twenty years or more, and it is little wonder that when the Public Service law was passed in 1910, its provisions dealt with conditions as they then were, and not with a vision as to the growth and extension of electric power companies, which experts in that line did not possess.

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Cite This Page — Counsel Stack

Bluebook (online)
4 Balt. C. Rep. 596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-maryland-power-co-v-consolidated-gas-electric-light-power-co-mdcirctctbalt-1927.