Randall Gas Co. v. Star Glass Co.

88 S.E. 840, 78 W. Va. 252, 1916 W. Va. LEXIS 96
CourtWest Virginia Supreme Court
DecidedApril 25, 1916
StatusPublished
Cited by10 cases

This text of 88 S.E. 840 (Randall Gas Co. v. Star Glass Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Randall Gas Co. v. Star Glass Co., 88 S.E. 840, 78 W. Va. 252, 1916 W. Va. LEXIS 96 (W. Va. 1916).

Opinion

PofkenbaRGER, Judge:

The judgment under review, denying to the plaintiff right of recovery of the difference between the price of gas furnished by it to the defendant, at the rate prescribed by a contract between the parties, and the price thereof at a higher maximum rate subsequently fixed by the Public Service Commission, was rendered in a case appealed from the judgment of a justice, and on a finding by the court from an agieed statement of’facts.

By a contract dated, January 19,1905, the Randall Gas and Water Company, of which the plaintiff is successor, bound itself to supply the Star Glass Company, natural gas for a period of ten years, at five cents per thousand cubic feet for the first five years, not more than six cents for the next two years, not more than seven cents for the next two years and not more than eight cents for the next, or last year. In August, 1914, the gas company made application to the Public Service Commission for authority to change its rates, and, after publication of the application in one or more newspapers in the county, for four successive weeks, by the company, under an order of the Commission, permission to charge higher rates was granted by the Commission, September 25, 1914, without objection on the part of any of the applicant’s patrons. The order then made permitted the company “to put into effect the following gas rates: For the first 150,000 cu. ft. 20c per M. cu. ft. For the second 150,000 eu. ft. 15e per M. eu. ft. All over 300,000 cu. ft. 10c per M. cu. ft. ” It is silent as to whether such quantities should be furnished or supplied and paid for monthly or otherwise. The glass company was not a party to the proceeding and was not personally served with any notice thereof. If it can be deemed to have had notice of it at all, such notice was merely constructive and effected by the newspaper publications of the petition or application. Though no claim was made, or bill rendered, under the new rates, until thirty days after the date of the order establishing them, they were not formally filed with the Commission nor published for the information of the public.

Power in the Legislature to regulate rates of public service corporations immediately and directly by its own act, or [254]*254mediately and indirectly by a commission or other tribunal created by it with authority to regulate them, is not denied. On the contrary, it is admitted, but an effort is made to exclude the rate in question, or the parties between whom it subsists, from the operation of the Public Service Commission Act. The grounds of this contention are not very clearly indicated. Denial of the application of the principles declared in L. & N. Ry. Co. v. Motley, 219 U. S. 469, and City of Benwood v. Public Service Commission, 75 W. Va. 127, 83 S. E. 295, is supplemented by the assertion that' the legislature has no power to regulate rates against the interests of the people and in favor of a corporation. That the Public Service Commission may raise, as well as lower, rates, in the exercise of its power of regulation and restriction, has been expressly decided in the case last above mentioned; and the principles enunciated in the class of cases to which the two just referred to belong, fully sustain the jurisdiction and power of the Public Service Commission over rates of the character of the one here involved, if the plaintiff is a public service corporation.

There is no express stipulation that the Randall Gas Company is engaged in the business of furnishing gas by way of general public service, and the character of its business is not a fact within the judicial knowledge of the court, but the agreed statement of facts proceeds upon the assumption that it is engaged in such business. The order of the Public Service Commission treats it as a public service corporation, and paragraph 7 of the statement of agreed facts speak of its “rates to consumers.” Obviously, therefore, its status was not regarded as a matter in controversy and was treated as a concessum in this case. The record thus discloses one of those instances of more or less embarrassment to the administration of justice, occasioned by the failure of the parties to put into the case material facts well known to themselves and conceded, either by oversight or upon the assumption that they are within the knowledge of the -court.

For the extent to which the legislature has seen fit to exercise its acknowledged power of regulation over such corporations, resort to implication or doubtful expressions is unnecessary. On this subject, the terms of the act creating [255]*255the Commission and defining its powers are clear and distinct. Section 3 confers jurisdiction over gas companies, electric lighting companies and municipalities, furnishing gas or electricity for lighting, heating or power purposes. Section 6 expressly forbids the collection or receipt from'any person, firm or corporation, of a greater or less compensation for any service rendered or to be rendered, than it charges, demands, collects or receives from any other person, firm or corporation, for doing a like and contemporaneous service under the same or substantially similar circumstances and conditions. Section 7 inhibits the allowance by any public service corporation, of any undue or unreasonable preference or advantage to .any particular person, company, firm, corporation or locality, or any particular character of traffic or service, in any respect whatsoever. Section 4 says “All charges, tolls, fares and rates shall be just and reasonable.” To enable the Commission to effectuate the policy thus declared, section 5 ex-" pressly authorizes and empowers it to “ change any intrastate rate, charge of toll which is unjust or unreasonable” and to * ‘ prescribe such rate, charge or toll as would be. just and reasonable, ” and to “change or prohibit any practice, device or method of service in order to prevent undue discrimination or favoritism as between persons, localities, or classes of freight.”

Process in the form' of notice to a corporation to be affected by a contemplated or intended order of the Commission, to be made under the power conferred upon it by section 5 of the Act, or to the patrons of such a corporation, is neither contemplated, nor provided for, by the Act, nor is it essential to the validity thereof. The power conferred upon the Commission is legislative in character. The duty of the Commission is the execution of the legislative mandate, respecting the matters committed to its jurisdiction. It does not possess unlimited or unrestricted power. In the devolution of certain duties upon it, the legislature has not abdicated, surrendered nor wholly delegated its powers respecting those subjects. There is a legislative declaration of principles and policies by which the Commission is bound. Within these principles and not beyond them, subordinate and minor duties are dele[256]*256(gated to the Commission, but in the prescription or alteration of rates, its powers are the same in character as those of the Legislature itself. State ex rel. Public Service Commission v. Baltimore & Ohio R. Co., 77 W. Va. 339, 85 S. E. 714; United Fuel Gas Company v. Public Service Commission, 73 W. Va. 571.

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Bluebook (online)
88 S.E. 840, 78 W. Va. 252, 1916 W. Va. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/randall-gas-co-v-star-glass-co-wva-1916.