Westerhoff Bros. v. Ephrata Borough

4 Pa. D. & C. 105, 1923 Pa. Dist. & Cnty. Dec. LEXIS 345

This text of 4 Pa. D. & C. 105 (Westerhoff Bros. v. Ephrata Borough) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lancaster County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westerhoff Bros. v. Ephrata Borough, 4 Pa. D. & C. 105, 1923 Pa. Dist. & Cnty. Dec. LEXIS 345 (Pa. Super. Ct. 1923).

Opinion

Hassler, J.,

— The demurrer filed in this case makes three objections to plaintiff’s bill. The first is that the bill sets forth no equitable cause for relief. The only reason urged in support of this is that a copy of an ordinance of the defendant borough, which, it is said, contains the terms under which electricity is supplied to the citizens, has not been attached to the bill. We do not think it was necessary for the plaintiff to have done this, as the [106]*106equity rules do not require it. The plaintiff asks for a decree in its favor because the defendant makes a difference in the rate charged for electric current, depending upon whether it is used for light or for power. This it claims is an illegal discrimination. If there is an ordinance that justifies the borough in making such discrimination, it is a matter of defence, and the defendant would have to produce it. We are of the opinion that the bill sets forth a good cause of action without attaching a copy of the ordinance referred to.

The second objection is that the bill does not show an illegal discrimination against the plaintiff, as it shows that it is using, and desires to continue to use, a 220-volt current, instead of a 110-volt current, for light purposes, whereas the ordinance provides that the 220-volt current is to be used for power, which is charged for at 4 cents per kilowatt hour, and the 110-volt current is to be used for light, and is charged for at 10 cents per kilowatt hour.

In its bill the plaintiff, a corporation, alleges that the Borough of Ephrata, one of the defendants, a municipal corporation located in this county, owns and operates a plant for generating electric energy, which it sells to persons, firms and corporations residing within the limits of the borough, and that the persons other than the Borough of Ephrata named as defendants in the bill are officers and employees of the defendant borough in charge and control of said electric plant; that the said borough, by an ordinance, provides that all electric current sold must be metered, and is of two kinds of currents, viz., a 220-volt current and a 110-volt current; that the 220-volt current is furnished for power at 4 cents per kilowatt hour, and the 110-volt current for lighting at 10 cents per kilowatt hour. The plaintiff operates a silk mill in the defendant borough, and is a large consumer of electric energy, which is furnished to it in a 220-volt current, and which is largely used by it for power in operating its mill, for which it pays the rate fixed by ordinance, viz., 4 cents per kilowatt hour; that of this current it uses a portion for light; that the defendant borough, in September, 1922, ordered it to install a separate meter to show the quantity used for light, for which it was to pay the sum of 10 cents per kilowatt hour, and threatened that, unless it did so, it would cut off and terminate the supply of electric energy furnished to the plaintiff. A temporary change, as requested, has been made. The plaintiff, among other things, asks that the defendant be enjoined from making a difference in the price of the 220-volt current sold, or to be sold, to the plaintiff, according to the use to which the said current is put by it, and to restrain them from interfering with or cutting off the supply of electric energy from the factory of the plaintiff.

In Baily v. Fayette Gas-Fuel Co., 193 Pa. 175, where the gas company made a different charge for gas furnished for heating purposes from the charge made for gas furnished for light purposes, the court below decided that it was not an illegal discrimination, which finding was reversed by the Supreme Court. In delivering the opinion of the court, Mr. Justice Mitchell said: “The gas is brought by the company through the same pipes for both purposes and delivered to the customers at the same point — the curb. Thence it goes into pipes put in by the consumer, and, after passing through a meter, is distributed by the customer through his premises according to his own convenience. The regulation in question seeks to differentiate the price according to the use for heating or for light. It is not claimed that there is any difference in the cost of the product to the company, the expense of supplying it at the point of delivery or its value to the company in the increase of business or other ways. Some effort was made to show increased risk to the company from .the use of [107]*107gas for lighting purposes, but the evidence of danger was so remote and shadowy that it cannot be considered as more than a mere makeweight. The real argument seeks to justify the difference in price solely by the value of the gas to the consumer, as measured by what he would have to pay for a substitute for one purpose or the other if he could not get the gas. This is a wholly inadmissible basis of discrimination.

“The implied condition of the grant of all corporate franchises of even quasi-public nature is that they shall be exercised without individual discrimination in behalf of all who desire. Prom the inception of the rules applied in early days to innkeepers and common carriers down to the present day of enormous growth of corporations for nearly every conceivable purpose there has been no departure from this principle. And from all the legion of cases upon this subject the distinguished counsel for the appellee have not been able to cite a single one in which a discrimination based solely on the value of the service to the customer has been sustained.” This case has not been reversed or modified, as is contended, but as late as Pittsburgh & Lake Erie Ry. Co. v. Colonial Steel Co., 251 Pa. 460, 465, has been cited and approved. See, also, Mercur v. Media Electric Co., 19 Pa. Superior Ct. 519.

In Robbins v. Bangor Railway and Electric Co., 1 L. R. A. (N. S.) 963, the Supreme Court of Maine, Savage, J., said: “While it may be lawful to classify water-takers not arbitrarily, but upon reasonable grounds, as, for instance, as between boarding-houses and private dwelling-houses, and while it may be true in instances that a charge to a small customer is not necessarily unreasonable because in excess of what a large customer would have to pay for the same amount of water, still, as bearing upon the question of discrimination, it must be true that the quantity of water used and the cost of the individual service are the principal elements for consideration in fixing the charges as between individual water-takers or classes of takers; and it has been held that a public service company cannot make a difference in price according to the use made by the customer, nor is a discrimination proper based on the value of the services to the customer: Bailey v. Fayette Gas-Fuel Co., 193 Pa. 175; Richmond Natural Gas Co. v. Clawson, 155 Ind. 659.”

Hoover v. Pennsylvania R. R. Co., 156 Pa. 220; Phipps v. London & Northwestern Ry. Co., L. R., 1892, 2 Q. B. 229; Steinman & Foltz v. Edison Electric Illuminating Co., 26 Lane. Law Rev. 178, and 27 Lane. Law Rev. 409; Consolidated Ice Co. v. Pittsburgh, 274 Pa. 558; Central Iron and Steel Co. v. Harrisburg, 271 Pa. 340; Youngman v. Water Commissioners of Erie, 267 Pa. 490; Mercur v. Media Electric Light Co., 19 Pa. Superior Ct. 519, several of which are cited by the defendant in support of the demurrer, appear to be in conflict with this, but they are decided on a very different principle.

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Related

Citizens' N. Gas Co. v. Shenango N. Gas Co.
20 A. 947 (Supreme Court of Pennsylvania, 1890)
Hoover v. Penna. R. R.
27 A. 282 (Supreme Court of Pennsylvania, 1893)
Baily v. Fayette Gas-Fuel Co.
44 A. 251 (Supreme Court of Pennsylvania, 1899)
Hutchinson v. Dennis
66 A. 524 (Supreme Court of Pennsylvania, 1907)
Pittsburgh & Lake Erie Railroad v. Colonial Steel Co.
96 A. 1037 (Supreme Court of Pennsylvania, 1916)
Youngman v. Water Commissioners
110 A. 174 (Supreme Court of Pennsylvania, 1920)
Central Iron & Steel Co. v. Harrisburg
114 A. 258 (Supreme Court of Pennsylvania, 1921)
Consolidated Ice Co. v. Pittsburgh
118 A. 544 (Supreme Court of Pennsylvania, 1922)
Mercur v. Media Electric Light, Heat & Power Co.
19 Pa. Super. 519 (Superior Court of Pennsylvania, 1902)
Richmond Natural Gas Co. v. Clawson
51 L.R.A. 744 (Indiana Supreme Court, 1900)

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4 Pa. D. & C. 105, 1923 Pa. Dist. & Cnty. Dec. LEXIS 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westerhoff-bros-v-ephrata-borough-pactcompllancas-1923.