People ex rel. New York Steam Co. v. Straus

186 A.D. 787, 174 N.Y.S. 868, 1919 N.Y. App. Div. LEXIS 5915
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 7, 1919
StatusPublished
Cited by16 cases

This text of 186 A.D. 787 (People ex rel. New York Steam Co. v. Straus) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. New York Steam Co. v. Straus, 186 A.D. 787, 174 N.Y.S. 868, 1919 N.Y. App. Div. LEXIS 5915 (N.Y. Ct. App. 1919).

Opinion

Merrell, J.:

The relator seeks to review by certiorari proceedings an order made by the Public Service Commission of the State of New York for the First District on February 25, 1918, requiring the relator to. issue, file and post a supplement to its schedule of rates filed June 1, 1917, which shall provide that all contracts made in conformity with a schedule of rates theretofore filed by said relator and which became effective November 1, 1916, unless thereafter canceled by mutual consent, shall be in full force and effect, and which order of said Public Service Commission required the relator to notify said Commission on or before March 2, 1918, whether the terms of said order were accepted and would be obeyed.

This court is asked to review all proceedings before said Public Service Commission relating thereto, and to set aside and vacate said order.

In compliance with a writ of certiorari heretofore issued out of and under the seal of the Supreme Court on the petition of the relator requiring said Public Service Commission for the First District of New York to make return of the said writ and of its said order, together with all proceedings remain[789]*789ing of record relating thereto, to the end that this court may-cause to be done what of right and according to law ought to be done, a return has been made and the matter is before us for determination.

By the petition and return herein, the following facts are disclosed:

The relator is a domestic corporation owning, operating and managing a steam plant for generating and transmitting, distributing and selling steam for heat or power in the city of New York. The said Public Service Commission, by an order made November 24, 1914, directed that every steam corporation subject to its jurisdiction should, at least thirty days prior to any schedule of rates or forms of contract becoming effective, file with the Commission and, for the same length of time, keep open for public inspection, all printed schedules showing rates and charges made, established or enforced, or to be charged or enforced, all forms of contract or agreement, and all rules and regulations relating to rates, charges or service, used or to be used, and all general privileges or facilities granted or allowed by such steam corporation; and further ordered that any schedule might be changed upon statutory notice of thirty days or, under special permission from the Commission, upon shorter notice. Such order of the Public Service Commission was duly accepted by the relator, and the Commission was notified of its acquiescence thereto. On or about October 31, 1916, under permission of said Public Service Commission, the relator duly filed with the Commission a schedule of rates, as required by said order, wherein it was plainly stated what rates, charges and services would be made. Said schedule of rates became effective November 1, 1916. Thereafter and before April 14, 1917, various contracts were entered into by the relator with consumers, whereby the relator contracted and agreed to supply steam at the rates and upon the terms stated in its said schedule, said contracts, by their terms, all expiring after June 1, 1917. On May 1, 1917, the relator issued, filed and posted in the office of said Public Service Commission a new schedule changing that which it had theretofore filed and which had been effective since November 1, 1916, fixing other and increased rates and charges for steam to be furnished by it, [790]*790stating the proposed changes to be made and that the new schedule would become effective June 1, 1917. As before stated, on the date when said new schedules were established and posted, contracts were in force under the existing schedule which would not terminate prior to June 1, 1917, when the new schedule was to become effective. No separate classification was made of such existing contracts, ■ and the holders of such contracts were not excepted from the operation of the new schedule. On May 28, 1917, the relator advised its customers in writing concerning the new schedule to become effective June 1, 1917, and stated to its said customers and to those holding contracts made under the schedule effective November 1, 1916, and which by their terms expired subsequently to June 1, 1917, that all provisions of the new schedule as to rates, terms and conditions were applicable to such contracts so far as service should be rendered after June 1, 1917, and that bills for steam used by said contract holders would be computed on the basis of the proper rate schedule applicable in each case to the particular class of service rendered. It is claimed by the relator that the rates and charges fixed in the new schedule were necessitated because of the advances in cost of fuel and other requirements of the petitioner, including labor and other necessary expenses, in producing the commodity which it was selling, and that the new rates established by the schedule talcing effect June 1, 1917, were neither unjust, unreasonable, nor unjustly discriminatory, or otherwise contrary to law. The holders of the unexpired contracts complained to the said Public Service Commission of the alleged injustice of the relator in applying its new schedule of rates to existing and outstanding contracts, and on October 11, 1917, said Public Service Commission, of its own motion ordered a hearing concerning the rates and charges of the relator in the borough of Manhattan, New York city, and appointed a hearing before said Commission on October 22, 1917, for the purpose of inquiring into and determining whether the rates and charges as scheduled by the relator were unjust and unreasonable, unjustly discriminatory or unduly preferential, or in anywise in violation of law, and if found unjust, unreasonable, discriminatory or illegal, then to determine just and reasonable rates and charges [791]*791for service furnished by the petitioner. Pursuant to such appointment proceedings were had before the Commission and the order of February 25, 1918, sought to be reviewed, was made. In this order it was recited that the Commission was of the opinion and had determined that the act of the relator in canceling by its notice of May 28, 1917, outstanding contracts made pursuant to its schedule effective November 1, 1916, was unjust and unreasonable, and that the new schedule, which became effective June 1, 1917, was unjust, unreasonable and unlawful in so far as it did not separately classify the contracts then in force under the schedule of rates in effect November 1, 1916. By the order the Commission directed that before March 5, 1918, the relator should file and post a supplement to its said schedule of June 1, 1917, which should provide that all contracts made in conformity with its said schedule filed November 1, 1916, and outstanding June 1, 1917, unless thereafter canceled by mutual consent, should be in full force and effect, and that on or before March 2, 1918, the relator should notify the Commission in writing whether the terms of the said order were accepted and would be obeyed. A rehearing before the Commission was asked and denied.

The relator assails such order of the Public Service Commission upon the ground that the order was unauthorized and erroneous, for the reason that it required the relator to demand and receive from persons and corporations with whom it had made said unexpired contracts less compensation for service rendered than the relator charged to others for like service.

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Bluebook (online)
186 A.D. 787, 174 N.Y.S. 868, 1919 N.Y. App. Div. LEXIS 5915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-new-york-steam-co-v-straus-nyappdiv-1919.