THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW RATE REGULATION OP GAS A^D ELEOTEIO LIGHTING By van SINDEREN LINDSLEY, A. B., Yale MEMBER OF THE NEW YORK BAR THE BANKS LAW PUBLISHING COMPANY 21 Murray St., New York 1906 Copyright, 1906, by o THE BANKS LAW PUBLISHING COMPANY. !? f4 PREFACE. The object of this little book is to set forth, as concisely as the scope of the subject will permit, the legislative acts and decided cases in the sev- eral states affecting the business of supplying gas and electric light. The book may also be useful to those interested in rate regulation of railroads on which public in- terest seems now to be centered in an unusual degree, for, while the principal object sought was a compilation of the statutes and decisions relating to gas and electric hght, yet the doctrine of rate regulation as ultimately worked out will doubt- less depend on general principles affecting all pub- lic utilities. Indeed the principal decisions relied on as furnishing the rule of construction for gas and electric light legislation, are decisions which have construed statutes affecting other but analo- gous industries. In my treatment of this subject is included a consideration of the various features of the legis- lation of the several states affecting this subject, the power of the legislatures of the several states iii IV PREFACE. to regulate rates, the constitutionality of such legis- lation, to what extent rates may be regulated, the decisions of the courts as to the reasonableness of such rates and the basis the courts have adopted in determining the reasonableness of rates. A reference to the statutes of the several states and a suitable table of decided cases are annexed. Van Sinderen Lindsley. New York City, January 1, 1906. TABLE OF CONTENTS. PART I PAGE The Power of the Legislature to Regulate Rates Limitation of the Power of the Legislature 1 PART II The Courts Determine the Reasonableness of Rates as Fixed by the Legislature 9 The Basis the Courts have Adopted in Determining THE Reasonableness of Rates 11 The Courts Restrain the Enforcement of Unrea- sonable Rates 13 PART III Digests of Important Cases in the Federal and State Courts Affecting Gas and Electric Light and Water Companies and Grain Elevators, Slaughter Houses and Railroads 14 PART IV Compilation of the Statutes of the Several States Affecting Gas and Electric Light 58 V RATE REGULATION. PART I. INTRODUCTORY. POWER OF LEGISLATURES TO REGU- LATE RATES. REVIEW BY THE COURTS. The legislatures of the several states have from time to time in the past thirty years enacted laws authorizing municipalities to erect gas and electric light- plants for the purpose of supplying such mu- nicipalities, and their inhabitants, with light, and some of such statutes have provided for the regu- lation of the rates which might l^e charged for supplying such light. ^ Statutes have also been enacted in some of the states to regulate the rates which private corpora- tions or individuals may charge for supplying mu- nicipalities and the inhabitants thereof with gas and electric light. ^ This legislation, with respect to municipalities, has usually taken the form of a general statute, but in some instances it has taken the form either 1 See annexed statutes of the several .states. * 1 Z EATE REGULATION. of a statute in regard to a particular municipality, or provision for such regulation is made in the charter of the municipality. Gas having been in use prior to electricity, this legislation at first affected gas light only, but as electricity came to be used for lighting, later legis- lation included light by that agency also. The states, in regulating the rates for gas and electric light, have only applied to such industries a policy previously applied in the case of other public utilities, such as the railroad, water, grain elevator and slaughter house. The question as to whether the state had any power at all to regulate the rates which might be charged for public utilities was first presented to the United States Supreme Court in the famous Granger cases in 1876. These so-called Granger cases are: Munn v. Illinois, 94 U. S. 113; Chicago, Burlington and Quincy Railroad Co. v. Iowa, 94 U. S. 155; Peik v. Chicago and Northwestern Rail- way Co., and Lawrence v. same, 94 U. S. 164. The Munn case involved charges for elevating and storing grain, and it was the first case in the Supreme Court of the United States in which the doctrine was laid down that a state might regu- late such charges. It will be seen that in this case the question at issue was not limited to the power of regulating rates charged by corporations enjoying public franchises, but the decision of the INTllODUCTORY. 6 case went to the extent of holding that even an individual employing no public franchise, but who has devoted his propert}^ to a business affected with a public use, is subject to legislative restric- tions as to the rates which he may charge. This doctrine was followed in the same year in Chicago, Burlington and Quincy Railroad Co. v. Iowa, supra, Peik V. Chicago and Northwestern Railway Co. and Lawrence v. same, supra, which were railroad cases. In these cases it was held that the state had the power to fix the rates, and that the courts had no power to pass upon the reasonableness of such rates. The United States Supreme Court, however, in later cases, has qualified this doctrine by declaring that statutes fixing rates, amounting to confiscation, are void.^ Accordingly it has been 1 Spring Valley Water Works v. v. Snell, 95 111. App. 552; Peoples Schottler, 110 U. S. 347; Chicago, Gas Light & Coke Co. v. Hale, 94 etc., Ry. Co. i;. Minn., 134 U.S. 418; 111. App. 406; Opinion of Justices, Reagan v. Farmers Loan & Trust 1.50 Mass. 592; Williams v. Mutual Co., 154 U. S. 362; Chicago, etc.. Gas Co., 52 Mich. 499; Alpena Elec- Ry. Co. V. Wellman, 143 U. S. 339; trie Co. t'. City of Alpena, 130 Mich. New Memphis Gas Light Co. v. 413; Pingree v. Mutual GasCo., 107 City of Memphis, 72 Fed. Rep. 952; Mich. 156; Mitchell v. City of Ne- Smyth V. Ames, 169 U. S. 466; San gaunee, 113 Mich. 3.59; St. Paul Diego Land Co. v. National City, Gas Light Co. v. City of St. Paul, 174 U. S. 739; Cotting v. Kansas 91 Minn. 521; State v. Sedalia Gas City Stock Yards Co., 183 TJ. S. 79; Light Co., 34 Mo. App. 501; State Stanislaus County v. San Joaquin v. Laclede Gas Light Co., 102 Mo. C. & I. Co., 192 U. S. 201; Leadville App. 472; State v. Allen, 178 Mo. Water Co. v. City of Leadville, 22 555; Wabaska Electric Co. v. City Col. 297; Dcs Moines v. Des Moines of Wymore, 60 Neb. 199; Sharp Water Works Co., 95 Iowa, 348; v. City of South Omaha, 53 Neb. Clinton Electric Light H. & P. Co. 700; Gould v. Edison Electric II- \y 4 RATE REGULATION. held in subsequent cases by the same tribunal that such regulation, whether by the state or munici- pality, must be reasonable, and not such as to deprive any one of fair compensation for service rendered. The rule now may fairly be stated to be that the state has the power to regulate rates, but that such regulation must not operate to de- prive any one of a fair and reasonable return upon the money invested in any particular enterprise, subject to such regulation. If the state does enact statutes which operate to deprive any one of a fair and reasonable return upon the capital in- vested in such enterprise, then recourse may be had to the courts to determine the reasonableness of such rates, and if they are found to be unrea- sonable their enforcement may be enjoined. This power of the legislature to regulate the rates or charges which may be made by indi- viduals or corporations for the supply of public utilities extends to all public utilities, and where an individual or corporation devotes his or its property to a use in v/hich the public has an in- ^ terest, he or it comes within the sphere of this luminating Co., 29 Miss. 242; State v. Cinn. Gas Light & Coke Co., 18 ex rel. Attorney General v. Ironton Ohio St. 262; State ex rel. Hadden Gas Co., 37 Ohio St. 45; Cincinnati, v. Cleveland Gas Light & Coke Co., Hamilton & Dayton R. R. Co. r. 3 Ohio Circuit Rep. 251; State ex Village of Bowling Green, 57 Ohio rel v. Columbns Gas Light ct Coke St. 336; Cincinnati Gas Light Sz Co., 34 Ohio St. 572; Shepard r. Coke Co. V. Avondale, 43 Ohio St. Milwaukee Gas Light Co., 6 Wis. 257; State ex rel. Attorney General 539. INTRODUCTORY. regulation. Whether such individual or corpora- tion be engaged in operating a railroad, carrying freight and passengers, or engaged in the business of conducting slaughter houses for the public use, or engaged in supplying water to individuals of a community, or engaged in furnishing and supply- ing light by gas, electricity or other means, they are all devoting their property to a use in which the public has an interest, and such service is a public utility and subject to this power of the state to regulate the rates which may be charged. This power of the legislature, however, is not an unlimited power, so that such rates may be fixed as would amount to a confiscation of prop- erty. The regulation of rates is limited to a rea- sonable regulation, and if the rates so fixed are unreasonable and unjust, recourse may be had to the courts to restrain the enforcement of such rates. The courts have no power to fix a rate, but only have power to say whether a rate which has been fixed by the legislature, or by bodies created by it, is reasonable, and if it is determined that such rates are unreasonable their enforcement may be enjoined.^ 1 Chicago &c. Ry. Co. r. Minn., Smyth r. Ames, 169 U. S. 466 134 U. S. 418; Reagan v. Farmers' Smyth v. Smith, 169 U. S. 466 Loan (t Trust Co., 154 U. S. 362; Smyth v. Higginson, 169 U. S. 466 New Memphis Gas Light Co. v. City San Diego Land Co. v. National of Memphis, 72 Fed. Rep. 952; City, 174 U. S. 739; Cotting v. Kan- RATE REGULATION. The question of regulation of rates by the legis- lature is one that has come up within the last thirty years, and has been applied more frequently to those public utilities which have been more frequently in use, such as railroads, slaughter houses, grain elevators, water companies, etc., and its application to electric light companies has only recently been made, as such companies are com- paratively new enterprises. However, the doctrine as to the regulation of rates by the legislature, and as to the determina- tion of the reasonableness of such rates by the courts, is apphcable to electric light and gas com- panies in the same way as it is to railroads, slaughter houses, elevators, water, and other public utilities, because electric light and gas companies are pub- lic utilities. This proposition needs no argument, for it is obvious from the cases here cited. The railroad, water company, elevator and slaughter house cases, however, have been cited in some of the few cases which have arisen in re- gard to gas and electric hght companies. sas City Stock Yards Co., 183 U. S. mestic Water Co. v. Redlands, 121 79; Stanislaus County v. San Joa- Cal. 312; Turner r. Revere Water quin C. & I. Co., 192 U. S. 201 ; Peo- Co., 171 Mass. 329; San Diego Land pie V. Gas Light Co., 45 Barb. (X. & TownCo.^v. Jasper, 189 U. S. 439; Y.) 136; stone v. Farmers' Loan & People's Gas Light ct Coke Co. v. Tru-st Co., 116 U. S. 307; City of Hale, 94 111. App. 406; Brymer v. Wilkesbarre v. The Spring Brook Butler Water Co., 179 Pa. 231; Water Supply Co., 4 Lack. Leg. N. Capitol City Gas Co. v. Des Moines, (Pa.) 367; Redlands L. & C. Do- 72 Fed. Rep. 818. INTRODUCTOKY. ( In the case of the New Memphis Gas Light Co. V. The City of Memphis, 72 Fed. Rep. 952 (1896), the city of Memphis, pursuant to general statute, reduced the rate to be charged for gas to the minimum fixed by the statute, without any in- quiry as to whether such minimum was reason- able, and the court, in enjoining the enforcement of such a rate on the ground that it was unrea- sonable, cites certain of the railroad cases as fol- lows: Chicago, M. & St. P. Ry. Co. v. Minnesota, 134 U. S. 418; Reagan v. Farmers' Loan & Trust Co., 154 U. S. 362. Again, in Wahaska Electric Co. v. City of Wy- more, 60 Neb. 199 (1900), which was an action to enjoin the passing of an ordinance reducing the rates for the supply of electricity, we find the cita- tion of Munn v. Illinois, 94 U. S. 113 (an elevator case). Also Spring Valley Water Works v. Schott- ler, 110 U. S. 347 (a water company case). Also Spring Valley Water Works v. Bartlett, 16 Fed. Rep. 615 (another water company case). Again, in Cincinnati, Hamilton & Dayton Rail- way Co. Y. Village of Bowling Green, 57 Ohio St. 336 (1897), which was an electric light case, we find the citation of Munn v. Illinois, 94 U. S. 113 (elevator case); also Spring Valley Water Works V. Schottler, 110 U. S. 347 (water case). The more recent cases in the United States Su- preme Court, running back for the past seven or O RATE KEGULATION. eight years, on this question of regulation of rates for pubHc utiUties, deal with railroad cases, slaugh- ter house cases and water cases. However, it is perfectly obvious that the same principles applied in those cases would apply in the case of a gas and electric light company, be- cause those cases and the gas and electric light company cases are analogous. Several bills are now pending in the Fifty -ninth Congress, the object of each of which is to provide a method of regulating by law freight rates charged by railroads engaged in interstate commerce. It is not unlikely that in consequence of public in- terest aroused on this subject, some law will be passed looking to that result. The Congress has express authority to regulate commerce among the several states, but such power is subject to various constitutional limitations upon its exercise. The most obvious of such limitations is the prohibition to take a person's property without due process of law, or for public use without just compensa- tion, or to give a preference to the ports of one city over those of another, but within such limita- tions the principle of regulation of railway rates by Congress is substantially the same as that of regulation of like rates within the limits of any particular state by its own legislature. PART II. THE BASIS WHICH THE COURTS HAVE ADOPTED IN DETERMINING THE REASONABLENESS OF RATES AS FIXED BY THE LEGISLATURE. We have seen that the legislature has the power to regulate rates for public utilities and that such regulation is subject to the limitation that it must be reasonable. The question of the reasonableness of a rate of charge for a public utility, involving, as it does, the element of reasonableness, both as regards the corporation or individual supplying the public utility and the public, is eminently a question for judicial investigation and determination. The courts have accordingly assumed the duty of say- ing whether a rate fixed by the legislature is a reasonable regulation.^ In testing the reasonable- ness of a rate fixed by the legislature, the courts consider the facts in each case and no hard and fast rule can be laid down. The presumption ' People's Gas Light & Coke Co. Capitol City Gas Co. v. Des Moines, V. Hale, 94 111. App. 406; Brymer 72 Fed. Rep. 818; Smyth r. Ames, ^■. Butler Water Co., 179 Pa. 231; 169 U. S. 466. ' 9 10 RATE REGULATION. exists that the rates fixed by the legislature are reasonable. In attempting to formulate a basis to test the reasonableness of rates, we are met with the dec- laration of the United States Supreme Court as re- cently as 1901, in one of the most recent cases on the subject, in the language of Mr. Justice Brewer in Cotting v. Kansas City Stock Yards Company, 183 U. S. 79, after reviewing the railroad, slaughter house, elevator and water cases, as follows: "In the light of these quotations, this may be affirmed to be the present scope of the decisions of this court in respect to the power of the legislature in regulating rates: As to those individuals and corporations who have devoted their property to a use in which the public has an interest, although not engaged in a work of a confessedly public character, there has been no further ruling than that the state may prescribe and enforce reasonable charges. "^What shall be the test of reason- ableness in those charges is absolutely un- disclosed." In Smyth v. Ames, 169 U. S. 466 (1897), in which case the United States Supreme Court af- firmed the decree of the Circuit Court enjoining the enforcement of certain rates, on the ground that they were unreasonable, Mr. Justice Harlan, de- livering the opinion of the court, at page 546, laid BASIS WHICH COURTS HAVE ADOPTED. 11 down the following as a basis upon which to de- termine the reasonableness of rates: "We hold, however, that the basis of all calculations as to the reasonableness of rates to be charged by a corporation maintaining a highway under legislative sanction must be the fair value of the property being used by it for the convenience of the public. And in order to ascertain that value, the original cost of construction, the amount expended in per- manent inprovements, the amount in market value of its bonds and stock, the present as compared with the original cost of construc- tion, the probable earning capacity of the property under particular rates prescribed hy statute, and the sum required to meet operat- ing expenses, are all matters for consideration and are to be given such weight as may be just and right in each case. We do not say that there may not be other matters to be regarded in estimating the value of property. What the company is entitled to ask is a fair return upon the value of that which it em- ploys for the pul:>Uc convenience. On the other hand, what the public is entitled to demand is that no more be exacted from it for the use of the public highway than the services ren- dered by it are reasonably worth." It must be borne in mind that the court has no power in passing upon the reasonableness of a rate to say what would be a reasonable rate, but it only 12 KATE REGULATION. has the power to say whether or not the rate fixed b}^ the legislature is or is not reasonable/ The same basis is laid down in San Diego Land Co. V. National City, 174 U. S. 739 (1898), a digest of which is found in this volume. See also basis laid down in Stanislaus Co. v. San Joaquin C. & I. Co., 192 U. S. 201 (1903), a digest of which is found in this volume. We are, therefore, brought to the formulation of a basis which might be adopted in the case of a gas or electric light company, and, in the light of these decisions, it would seem to be somewhat as follows : The basis must be the fair value of the prop- erty being used l^y it for the convenience of the public and, in order to ascertain that value, the original cost of construction, the amount expended in permanent improvements, the amount in market value of its bonds and stock, the present as com- pared with the original cost of construction, the probable earning capacity of the property, and the particular rates prescribed by statute, and the sum required to meet the operating expenses. How much per cent on such a basis the court might say is a reasonable return no one can say. If the legislature fixed a rate which does not bring a fair and reasonal:>le return on such a basis, then it is most likely that the courts would enjoin the enforcement of such rate. 1 Smyth r. Ames, 169 U. S. 466. BASIS WHICH COURTS HAVE ADOPTED. 13 In the case of Stanislaus Co. v. Sa7i Joaquin C, & I. Co., 192 U. S. 201 (1903), a water case, it was held that a rate fixed so as to give an- income of six per cent per annum upon the then vahie of the propert}^ actually used for the purpose of supply- ing water as provided by law, even though the company had prior thereto been allowed to fix rates that would secure to it one and one-half per cent a month income upon the capital actually invested in the undertaking, was not unreasonable and did not amount to confiscation nor taking of property without due process of law nor denial of equal protection of the lav/s. In conclusion, it may be said that there are few decisions as to a basis which should be adopted in determining the reasonableness of rates and these decisions have been cited here. Following the principles laid down in these de- cisions, the adoption of a basis must be determined by the facts existing in each particular case. PART III. THE MORE IMPORTANT CASES DIGESTED. We have seen that in the early development of the question of rate regulation the question as to whether the legislature had the power to regulate rates was first determined' and then that this power to regulate was limited to a reasonable regulation.^ In order that my readers may follow this process of development and examine the facts in particular cases, I have arranged here a digest of the more important cases. I have begun with the pioneer case of Munn V. Illinois, to which I have drawn attention else- where, and have endeavored to arrange such cases as I have digested in chronological order. While Munn v. Illinois, has remained an au- thority controlling the proposition that the legis- lature may regulate the rates which may be charged by those engaged in supplying public utihties, the Supreme Court of the United States has not ad- iMunn V. Illinois, 94 U. S. 113; Railroad Co., and Lawrence r. same, Chicago, Burlington & Quincy Rail- 94 U. S. 164. road Co. v. Iowa, 94 U. S. 155; 2 Smyth v. Ames, 169 U. S. 466. Peik V. Chicago & Northwestern u THE MORE IMPORTANT CASES DIGESTED. 15 hered to the doctrine that the rates fixed by the legislature may not be reviewed by the courts as to the reasonableness of such rates. The question squarely before the court in Muiin V. Illinois was not as to whether the rates were reasonable but as to whether the legislature had any right at all to regulate the charge which may be made by warehouses. This case was the first time that the question of such regulation was ever before the United States Supreme Court and it has been followed and cited in numerous subsequent decisions upon the propo- sition that the legislature has power to regulate the charges which may be made for the supply of such public utilities. MuiXN V. Illinois, 94 U. S. 113 (1876). In this case the legislature of Illinois enacted a law prescribing the rates for charges of warehouses. Criminal proceedings w^ere taken against the plain- tiff, as the owner of the warehouse, for violation of the statute. The Supreme Court of Illinois held that the statute was valid and constitutional, and that the legislature had the right to regulate the charges. From the judgment of the Supreme Court of Illinois an appeal was taken to this court. Mr. Chief Justice Waite, in delivering the opin- ion of the court, affirming the judgment of the 16 RATE REGULATION. Supreme Court of Illinois, declaring the act con- stitutional, said, at p. 125: ''In their exercise it has been customary in England from time immemorial, and in this country from its first colonization to regulate ferries, common carriers, hackmen, bakers, millers, wharfingers, innkeepers, etc., and in so doing to fix a maximum of charge to be made for services rendered, accommodations fur- nished and articles sold. To this day statutes are to be found in many of the states upon some or all these subjects; and we think it has never yet been successfully contended that such legislation came within any of the con- stitutional prohibitions against interference with private property. With the Fifth Amend- ment in force, Congress, in 1820, conferred power upon the city of Washington 'to regu- late . . . the rates of wharfage at pri- vate wharves, ... the sweeping of chim- neys, and to fix the rates of fees therefor, . . . and the weight and quality of bread,' 3 Stat. 587, sec. 7; and, in 1848, 'to make all necessary regulations respecting hackney carriages and the rates of fare of the same, and the rates of hauling by cartmen, wagoners, carmen, and draymen, and the rates of com- mission of auctioneers,' 9 id. 224, sec. 2. " From this it is apparent that, down to the time of the adoption of the Fourteenth Amend- ment, it was not supposed that statutes regu- lating the use, or even the price of the use, of THE MOKE IMPORTANT CASES DIGESTED. 17 private property necessarily deprived an owner of his property without due process of law. Under some circumstances they may, but not under all. The Amendment does not change the law in this particular; it simply prevents the states from doing that which will operate as such a deprivation. ''This brings us to inquire as to the princi- ples upon which this power of regulation rests, in order that we may determine what is within and what without its operative effect. Look- ing, then, to the common law, from whence came the right which the Constitution protects, we find that when private property is ' affected with a public interest it ceases to be juris privati only.' This was said by Lord Chief Justice Hale more than two hundred years ago, in his treatise, De Portibus Maris, 1 Harg. Law Tracts, 78, and has been accepted with- out objection as an essential element in the law of property ever since. Property does become clothed with a public interest when used in a manner to make it of public conse- quence, and affect the community at large. When, therefore, one devotes his property to a use in which the public has an interest, he, in effect, grants to the public an interest in that use, and must submit to be controlled by the public for the common good, to the ex- tent of the interest he has thus created. He may withdraw his grant by discontinuing the use; but, so long as he maintains the use, he must submit to the control." 18 RATE REGULATION. Again, at p. 127, the court said: ''And the same has been held as to ware- houses and warehousemen. In Aldnutt v. Inglis, 12 East, 527, decided in 1810, it ap- peared that the London Dock Company had built warehouses in which wines were taken in store at such rates of charge as the com- pan}^ and the owners might agree upon. Af- terwards the company obtained authority, under the general warehousing act, to receive wines from importers before the duties upon the importation were paid; and the question was, whether they could charge arbitrary rates for such storage, or must be content with a reasonable compensation. Upon this point Lord Ellenborough said (p. 537): " 'There is no doubt that the general principle is favored, both in law and justice, that every man may fix what price he pleases upon his own property, or the use of it; but if for a particular purpose the pubhc have a right to resort to his premises and make use of them, and he have a monopoly in them for that purpose, if he will take the benefit of that monopoly, he must, as an equivalent, perform the duty attached to it on reason- able terms. The question then is, whether, circumstanced as this company is, by the combination of the warehousing act with the act bv which they were originally consti- tuted," and with the actually existing state of things in the port of London, whereby THE MORE IMPORTANT CASES DIGESTED. 19 they alone have the warehousing of these wmes, they be not, according to the doc- trine of Lord Hale obhged to hmit them- selves to a reasonable compensation for such warehousing. And, according to him, when- ever the accident of time casts upon a party the benefit of having a legal monopoly of landing goods in a public port, as where he is the owner of the only wharf authorized to receive goods which happens to be built in a port newly erected, he is confined to take reasonable compensation only for the use of the wharf.' " Again, at p. 131, the court further said: "Under such circumstances it is difficult to see why, if the common carrier, or the miller, or the"^ ferryman, or the innkeeper, or the wharfinger, or the baker, or the cartman, or the hackney coachman, pursues a pul^lic em- ployment and exercises 'a sort of public office,' these plaintiffs in error do not. They stand, to use again the language of their counsel, in the very 'gateway of commerce,' and take toll from all who pass. Their business most cer- tainly 'tends to a common charge, and is be- come a thing of public interest and use.' Every bushel of grain for its passage ' pays a toll, which is a common charge,' and, therefore, according to Lord Hale, every such ware- houseman ' ought to be under public regu- lation, viz., that he . . . take but rea- 20 RATE REGULATION. sonable toll.' Certainty, if any business can be clothed 'with a public interest, and cease to be juris privati only/ this has been. It may not be made so b}^ the operation of the constitution of Illinois or this statute, but it is by the facts." Again, at p. 133, the court said: '^Neither is it a matter of an}^ moment that no precedent can be found for a statute pre- cisely like this. It is conceded that the busi- ness is one of recent origin, that its growth has been rapid, and that it is already of great importance. And it must also be conceded that it is a business in which the whole public has a direct and positive interest. It presents, therefore, a case for the application of a long- known and well-established principle in social science, and this statute simply extends the law so as to meet this new development of commercial progress. There is no attempt to compel these owners to grant the public an interest in their property, but to declare their obligations if they use it in this particular '' It is insisted, however, that the owner of property is entitled to a reasonable compensa- tion for its use, even though it be clothed with a public interest, and that what is reasonable is a judicial and not a legislative question. THE MORE IMPORTANT CASES DIGESTED. 21 '' As has already been shown, the practice has been otherwise. In countries where the common law prevails, it has been customar}^ from time immemorial for the legislature to declare what shall be a reasonable compensa- tion under such circumstances, or, perhaps more properly speaking, to fix a maximum beyond which any charge made would be un- reasonable. Undoubtedly, in mere private contracts, relating to matters in which the public has no interest, what is reasonable must be ascertained judicially. But this is because the legislature has no control over such a con- tract. ''So, too, in matters which do affect the public interest, and as to which legislative control may be exercised, if there are no statutory regulations upon the subject, the courts must determine what is reasonable. The controlling fact is the power to regulate at all. If that exists, the right to establish the maximum of charge, as one of the means of regulation, is implied. In fact, the common- law rule, which requires the charge to be rea- ^ sonable, is itself a regulation as to price. With- out it the owner could make his rates at will; and compel the public to yield to his terms, or forego the use." At p. 134 the following language was found in the opinion of the court: ''We know that this is a power which may 22 RATE REGULATIOX. be abused; but that is no argument against its existence. For protection against abuses by legislatures the people must resort to the polls, not to the courts." There is a strong dissenting opinion by Jus- tices Field and Strong. Chicago, Burlixgtox & Quixcy Railroad Co. V. Iowa, 94 U. S. 155 (1876). In this case the railroad sought to enjoin the enforcement of rates which had been fixed by the legislature for carrs'ing passengers and freight. The court, in following the doctrine laid down in Munn V. Illinois, 94 U. S. 113, affirmed the decree of the lower court dismissing the bill of complaint and denying the injunction. Mr. Chief Justice Waite, in delivering the opinion of the court, said, at p. 161: ''Railroad companies are carriers for hire. They are incorporated as such and given ex- traordinary powers in order that they may the ])etter serve the public in that capacity. They are therefore engaged in a public em- plo^^ment affecting the public interests, but under the decision in Munn v. Illinois, supra, p. 113, subject to legislative control as to their rates of fare and freight unless protected b}^ their charters." THE MOKE IMPORTANT CASES DIGESTED. 23 Again, at p. 164: ''It is very clear that a uniform rate of charges for all railroad companies in the state might operate unjustly upon some. It was proper therefore to provide in some way for an adaptation of the rates to the circumstances of the different roads; and the General Assem- bly in the exercise of its legislative discretion has seen fit to do this by a system of classifica- tion. Whether this was the best that could have been done is not for us to decide. Our j)rovince is only to determine whether it could be done at all under the circumstances. If it could, the legislature must decide if it is subject to any control from us — whether the common good requires that it should l)e done." Peik v. Chicago & Northwestern Railroad Co.; Lawrence v. same, 94 U. S. 164 (1876). In this case the stockholders and bondholders sought to restrain the railroad companies from obeying the railroad commissioners as to rates which had been fixed pursuant to legislative au- thority, also to enjoin the Attorney General from enforcing such rates. The court held that the legislature had the power to fix the rates and followed the doctrine laid down in Miimi v. Illinois, 94 U. S. 113, and Chicago &c. R. R. V. Iowa, 94 U. S. 155. 24 RATE REGULATION. Mr. Chief Justice Waite, in delivering the opin- ion of the court affirming the decrees, said at p. 176: '^In Munn v. Illinois, supra, page 113, and Chicago, Burlington & Quincy Railroad Co. v. Iowa, supra, page 155, we decided that the state may limit the amount of charges of rail- road companies for fares and freights unless restrained by some contract in the charter, even though their income may have been pledged as security for the payment of obliga- tions incurred upon the faith of the charter. So far this case is disposed of by those de- cisions." Again, at p. 178, the court said: '^As to the claim that the courts must de- cide what is reasonable and not the legislature. This is not new to this case. It has been fully considered in Mu7in v. Illinois where property has been clothed with the public interest the legislature may fix a limit to that which shall in law be reasonable to its use. This limit binds the courts as well as the people. If it has been improperly fixed the legislature, not the courts, must be appealed to for the change." Chicago, Milwaukee & St. Paul Railway Co. V. Minnesota, 134 U. S. 418 (1889). In this case the legislature had designated a Board of Commissioners to fix rates of railroads and warehouses. The board, pursuant to the legis- lative act of Minnesota, reduced the charges of the THE MORE IMPORTANT CASES DIGESTED. 25 railroad for carrying milk from three cents to two and one-half cents a gallon. Upon a refusal of the railroad to comply with such reduction a writ of mandamus was brought in the Supreme Court, and judgment was awarded against the railroad company. The railroad company then appealed to the Su- preme Court of the United States, and Mr. Jus- tice Blatchford, in delivering the opinion of the court, reversing the judgment of the Supreme Court of Minnesota, said, at p. 456: '^This being the construction of the statute by which we are bound in considering the present case, we are of opinion that, so con- strued, it conflicts with the Constitution of the United States in the particulars complained of b}^ the railroad company. It deprives the company of its right to a judicial investiga- tion, by due process of law, under the forms and with the machinery provided by the wis- dom of successive ages for the investigation judicially of the truth of a matter in contro- versy, and substitutes therefor, as an absolute finality, the action of a railroad commission which, in view of the powers conceded to it by the state court, cannot be regarded as clothed with judicial functions or possessing the machinery of a court of justice." Again, the court said, at p. 458: ''The question of the reasonableness of a 26 KATE REGULATION. rate of charge for transportation by a railroad company, involving as it does the element of reasonableness both as regards the company and as regards the public, is eminently a ques- tion for judicial investigation, requiring due process of law for its determination. If the company is deprived of the power of charging reasonable rates for the use of its property, and such deprivation takes place in the ab- sence of an investigation by judicial machinery, it is deprived of the lawful use of its property, and thus, in substance and effect, of the prop- erty itself, without due process of law and in violation of the Constitution of the United States; and in so far as it is thus deprived, while other persons are permitted to receive reasonable profits upon their invested capital, the company is deprived of the equal protec- tion of the laws." Three of the justices of the Supreme Court dis- sented from the opinion of the court, and held that the legislature, or its agents, had the right to fix rates and that such rates were conclusive. The dissenting opinion also stated that the judgment of the court in this case practically overruled Munn V. Illinois, 94 U. S. 113. Reagan v. Farmers' Loan & Trust Company, 154 U. S. 362 (1894). In this case one of the questions presented to the court was as to whether certain rates for carrying, which had been fixed by a railroad commission which THE MORE IMPORTANT CASES DIGESTED. 27 was created by an act of the legislature of Texas and authorized to fix such rates, were reasonable. The court; after reviewing the decisions of this court upon the subject of the regulation of rail- road rates by the legislature and bodies created by it, held that the legislature had the power to create such a board and that such board had the power to fix such rates, but the question as to the rea- sonableness of such rates was one to be determined by the courts. This court, in affirming that part of the decree of the Circuit Court of the United States for the Western District of Texas, which enjoined the enforcement of the rates fixed by the railroad commission on the ground that they were unreasonable, said, at p. 396: ^^It appears from the bill that in pursuance of the powers given to it by this act, the state commission has made a body of rates for fares and freights. This body of rates as a whole is challenged by the plaintiff as unreasonable, unjust and working a destruction of its rights of property. The defendant denies the power of the court to entertain an inquiry into that matter, insisting that the fixing of rates for carriage l)y a public carrier is a matter wholly within the power of the legislative depart- ment of the government and ]:)eyond examina- tion by the courts. It is doubtless true as a general proposition that the formation of a tariff of charges for the transportation by a 28 RATE REGULATION. common carrier of persons or property is a legislative or administrative rather than a ju- dicial function. Yet it has always been recog- nized that if a carrier attempted to charge a shipper an unreasonable sum, the courts had jurisdiction to inquire into that matter and to award to the shipper any amount exacted from him in excess of a reasonable rate; and also in a reverse case to render judgment in favor of the carrier for the amount found to be a reasonable charge. The province of the courts is not changed nor the limit of judicial inquiry altered because the legislature, in- stead of the carrier, prescribes the rates. The courts are not authorized to revise or change the body of rates imposed by a legislature or a commission; the}" do not determine whether one rate is preferable to another or what under all circumstances would be fair and reasonable as betw^een the carriers and the shippers; they do not engage in any mere administrative work; but still there can be no doubt of their power and dut}^ to inquire whether a body of rates prescribed by a legislature or a commis- sion is unjust and unreasonable and such as to work a practical destruction to rights of prop- erty and, if found so to be, to restrain its operation." Citing Chicago, Burlington & Quincy R. R. Co. V. loiva, 94 U. S. 155, and Peik v. Chicago & North- western Rij., 94 U. S. 164. '' ... There was in those cases no de- THE MORE IMPORTANT CASES DIGESTED. 2D cision as to the extent of control, but only as to the right of control. This question came again before this court in Railroad Commissioti cases, 116 U. S. 307, 331, and, while the right of control was reaffirmed, a limitation on that right was plainly intimated in the following words of the Chief Justice: 'From what has thus been said it is not to be inferred that this power of limitation or regulation is itself with- out limit. This power to regulate is not a power to destroy, and hmitation is not the equivalent of confiscation. Under pretense of regulating fares and freights, the state cannot require a railroad corporation to carry persons or property without reward; neither can it do that which in law amounts to a taking of private property for public use without just compensation or without due process of law.' " Again, at p. 398: ''The question of the reasonableness of a rate of charge for transportation by a railroad company involving as it does the element of reasonableness both as regards the company and as regards the public, is eminently a ques- tion for judicial investigation requiring the process of law for its determination." Again, at p. 399: "These cases all support the proposition that, while it is not the province of the courts oO RATE REGULATION. to enter upon the merely administrative dut}^ of framing a tariff of rates for carriage, it is within the scope of judicial power and a part of judicial duty to restrain anything which in the form of a regulation of rates operates to deny to the owners of property invested in the business of transportation that equal protec- tion which is the constitutional right of all owners of other property. There is nothing new or strange in this. It has always been a part of the judicial function to determine whether the act of one party (whether that party be a single individual, an organized body or the public as a whole) operates to divest the other party of any rights of person or property. In every constitution is the guarantee against the taking of private propert}^ for public pur- poses without just compensation. The equal protection of the laws, which, by the Four- teenth Amendment, no state can deny to the individual, forbids legislation, in whatever form it may be enacted, by which the property of one individual is, without compensation, wrested from him for the benefit of another or of the public. This, as has been often ob- served, is a government of law and not a gov- ernment of men, and it must never be for- gotten that under such a government, with its constitutional limitations and guarantees, the forms of law and the machinery of govern- ment with all their reach and power must in their actual workings stop on the hither side of the unnecessary and uncompensated taking or destruction of any private property legally THE MORE IMPORTANT CASES DIGESTED. 31 acquired and legally held. It was therefore within the competency of the Circuit Court of the United States for the Western District of Texas, at the instance of the plaintiff, a citi- zen of another state, to enter upon an inquiry as to the reasonableness and justice of the rates prescribed b)^ the railroad commission. In- deed, it was in so doing only exercising a power expressly named in the act creating the commission." After considering the cost of construction of the railroad, its bonded indebtedness and the cost of operation, whereby it appeared that even with the rates which it was charging, it could not pay any interest on its stock and that with the rates pre- scribed by the railroad commission it would actually be operated at a great loss, the court in holding that such rates as were prescribed l^y the railroad com- mission were unreasonable, said, at p. 412: ^'It is unnecessary to decide, and we do not wish to be understood as laying down as an absolute rule that in every case a failure to produce some profit to those who have in- vested their money in the Ijuilding of a road is conclusive that the tariff is unjust and un- reasonable. And yet justice demands that every one should receive some compensation for the use of his money or property, if it be possible, without prejudice to the rights of others. There may l3e circumstances which 32 RATE REGULATION. would justify such a tariff; there may have been extravagance and a needless expenditure of money; there may be waste in the manage- ment of the road; enormous salaries, unjust discrimination as between individual shippers, resulting in general loss. The construction may have been at a time when material and labor were at the highest price, so that the actual cost far exceeds the present value; the road may have been unwisely built in localities where there is no sufficient business to sus- tain a road. Doubtless, too, there are many other matters affecting the rights of the com- munity in which the road is built as well as the rights of those who built the road." New Memphis Gas Light Company v. City of Memphis, 72 Fed. Rep. 952 (1896). In this case the city of Memphis, pursuant to a general statute, which authorized the regulation of gas rates and provided that the rates should not be lower than $1.50 per 1,000 cubic feet, passed an ordinance reducing the price to the minimum, $1.50. It appears that this reduction had been made without any investigation as to what was a rea- sonable price, and that the corporate authorities had simply reduced the price to the lowest allowed by the statute. The court, in granting the preliminary injunc- tion against the enforcement of the ordinance, said, at p. 955: THE MORE IMPORTANT CASES DIGESTED. 33 "The state is under an obligation to act justly, and without arbitrary discrimination, between corporations of the state, just as it is between citizens of the state enjoying equal rights. The state cannot under the guise of a regulation bring about a destruction and a confiscation of a company's property; and the state's power to absolutely abolish the cor- poration must be distinguished from its power to destroy its business and confiscate its prop- erty, so long as it chooses to permit its exist- ence and to authorize its business by a valid charter. Chicago, M. & St. P. Ry. Co. v. Mi7inesota, 134 U. S. 418; 10 Sup. Ct. 462, 702. And this is the fair result of what are known as the "Reagan Cases." 154 U. S. 362, 420, 413, 418; 14 Sup. Ct. 1047, 1060, 1062. And the question of the reasonable- ness of a rate of charge is eminently a ques- tion for judicial investigation, requiring due process of law for its determination. And to deprive a company of the power of charging reasonable rates for the manufacture and sale of gas is to deprive it of the use of its property, and, in effect, of the property itself, without the due process of law. Chicago, M. d' St, P. Ry. Co. V. Minnesota, supra. The act of assembly under consideration, therefore, must be given a construction which would not ren- der it invalid, or obnoxious to constitutional objections, for otherwise the act itself would be void. It is clear, therefore, that the act in question, in fixing a hmit l^elow which the taxing district should not go, did not thereby 34 KATE REGULATION. authorize the taxing district to reduce the price of gas to that Hmit arbitrarily. And the very use of the term 'regulation' implies that an investigation shall be made; that an op- portunity to present the facts shall be fur- nished, that, when the facts are established, they shall, by the regulating power, be given due consideration; and that such action as shall be taken in view of these facts thus ascertained, shall be just and reasonable, and such as enal^les the company to maintain its existence, to preserve the property invested from destruction, and to receive, on the capital actually and bona fide invested in the plant, a remuneration or dividend corresponding in amount to the ruling rates of interest. The company has a right to such gross mcome from the sale of gas as will enable it to pay all legitimate operating expenses, pay interest on valid fixed charges, so far as bonds or securities represent an expenditure actually made in good faith, and also to pay a reasonable dividend on stock, so far as this represents an actual investment in the enterprise. All of these items, and perhaps others, must be taken into account in any regulation which may be made in respect to the price of gas. Such investiga- tion and such regulation as are contemplated by the statute might enable the company to fix the price at $1.50 per 1,000 feet, or at any named figure l3etween that and the former price of $1.75 per 1,000 feet. This would de- pend on the reasonableness of the regulation in the sense above explained, keepmg con- THE MORE IMPORTANT CASES DIGESTED. 35 stantly in mind that the power to regulate rates is not a power to destroy, and that Umi- tation is not the equivalent of confiscation." Again, the court said, at p. 956: ''If the plaintiff can by proof sustain the charges of this bill, it results inevitably that the ordinance is not a legal and valid exercise of the power conferred on the taxing district by the statute, but is an attempt to exercise the power in a manner which clearly amounts to destruction, and in such manner, too, as that if the act of assembly had undertaken, in terms to authorize it, would render the act unconstitutional and void on its face. The distinction is between a valid and just execu- tion of the power given by the act, and an illegal and unwarranted execution of such power. The bill charges distinctly that under the rate of charges, as fixed by this ordinance, the corporation would not be able to pay its expenses, interest on fixed charges, much less a reasonable interest or dividend on its stock, and that an attempt to operate under such a rate of prices would result in its bankruptcy." Smyth v. Ames, 169 U. S. 466 (1897). In this case the legislature of Nebraska passed an act, making a reduction of 29^ per cent in the rates to be charged by railroads for business done within the state. The railroads brought a bill in the Circuit Court in Nebraska, praying .that the 36 RATE REGULATION. authorities be enjoined from enforcing the regula- tion of rates as provided in the act of 1903 of the Nebraska legislature. The Circuit Court entered a decree, granting the injunction prayed for, and from this decree an appeal was taken to this court by the state authorities. The United States Supreme Court, after con- sidering the case as decided by the Circuit Court granting the injunction (to the length of some 100 pages), affirmed the decree of the Circuit Court. This case is apposite as showing to what extent the legislature may regulate the rates which may be charged by an individual or corporation en- gaged in public utility service. Although this case has to do only with rail- roads, yet the principle is the same whether the public utility be that of a common carrier, a ware- houseman or a supplier of gas or electric light, or any of the various public utilities. Mr. Justice Harlan, in dehvering the opmion of the court, said, at p. 523: ''What amounts to deprivation of property without due process of law, or what is a denial of the equal protection of the laws, is often difficult to determine, especially where the question relates to the property of a quasi- public corporation, and the extent to which it may be subjected to public control. THE MORE IMPORTANT CASES DIGESTED. 37 ''But this court, speaking b}" Chief Jus- tice Waite, has said that while a state has power to fix the charges by railroad com- panies for the transportation of persons and property within its own jurisdiction, unless restrained by valid contract, or unless what is done amounts to a regulation of foreign or interstate commerce, such power is not with- out limit; and that 'under pretense of regulat- ing fares and freights, the state cannot require a railroad corporation to carry persons or property without reward, neither can it do that which in law amounts to the taking of private property for public use without just compensation, or without due process of law.' " Railroad Commission cases, 116 U. S. 307, 325, 331. Again, Mr. Justice Harlan, at p. 524, said: "In Reagan v. Farmers^ Loan & Trust Co., 154 U. S. 362, 399, which involved the validity of certain rates for freights and passengers prescribed by a railroad commission, estab- lished by an act of the legislature of Texas, this court, after referring to the above caseSj said: 'These cases all support the proposition that while it is not the province of the courts to enter upon the mereh' administrative duty of framing a tariff of rates for carriage, it is within the scope of judicial power, and a part of judicial duty, to restrain anything which, in the form of a regulation of rates, operates to deny to the owners of property invested in 38 RATE KEGULATION. the business of transportation that equal pro- tection which is the constitutional right of all owners of other property. There is nothing new or strange in this. It has always been a part of the judicial function to determine whether the act of one party (whether that party be a single individual, an organized body or the public as a whole) operates to divest the other party of any rights of person or property. In every constitution is the guar- antee against the taking of private property for public purposes without just compensation. The equal protection of the laws, which by the Fourteenth Amendment no state can deny to the individual, forbids legislation in whatever form it may be enacted by which the property of one individual is, without compensation, wrested from him for the benefit of another, or of the public." Again, Mr. Justice Harlan said, at p. 526: ''While rates for the transportation of per- sons and property within the limits of the state are primarily for its determination, the question whether they are so unreasonabl}^ low as to deprive the carrier of its propert}" with- out such compensation as the Constitution secures, and therefore, without due process of law, cannot be so conclusively determined by the legislature of the state, or by regulations adopted under its authority, that the matter may not become the subject of judicial in- quiry." THE MORE IMPORTANT CASES DIGESTED. 39 Upon the proposition that the people of one state or locaHty are entitled to the same rates as the people of another, without regard to local con- ditions, the court said, at p. 540: ''The question is asked. Are not the people of Nebraska entitled to as cheap rates as the people of Iowa? Of course, relatively, they are. That is, the roads may not discriminate against the people of any one state, but they are not necessarily bound to give absolutely the same rates to the people of all the states; for the kind and amount of business and the cost thereof are factors which determine largely the question of rates, and these vaiy in several states. The volume of business in one state may be greater per mile, while the cost of construction and maintenance is less. Hence, to enforce the same rates in both states might result in one in great injustice, while in the other it would only ])e reasonable and fair. Comparisons, therefore, between the rates of two states are of little value, unless all the ele- ments that enter into the problem are pre- sented." Again, in considering the elements which enter into the computation as to the fixing of reasonable rates, the court said, at p. 546: ''We hold, however, that the basis of all calculations as to the reasonableness of rates to be charged by a corporation maintaining a 40 KATE REGULATION. highway under legislative sanction must be the fair value of the property being used b}^ it for the convenience of the public. And in order to ascertain that value, the original cost of construction, the amount expended in per- manent improvements, the amount and market value of its bonds and stock, the present as compared with the original cost of construc- tion, the probable earning capacity of the property under particular rates prescribed by statutes, and the sum required to meet the operating expenses are all matters for consid- eration, and are to be given such weight as may be just and right in each case. We do not say that there may not be other matters to be regarded in estimating the value of the property. What the company is entitled to ask is a fair return upon the value of that which it employs for the public convenience. On the other hand, what the public is entitled to de- mand is that no more be exacted from it for the use of a pu]3lic highway than the services rendered by it are reasonably worth." San Diego Land & Town Co. v. National City, 174 U. S. 739 (1898). This is an appeal from the decree of the Circuit Court of the United States, for the Southern Dis- trict of California, dismissing a bill which prayed to have the rates for the supply of water estab- lished by the corporate authorities of National City, void. THE MORE IMPORTANT CASES DIGESTED. 41 Pursuant to an act of the California legislature, the Board of Supervisors were authorized to fix annually the rates to be charged for water supply. The water company was engaged in supplying, among other things, water for irrigation. The rates in question were fixed at $4.00 per acre. Mr. Justice Harlan, in delivering the opinion of the court affirming the decree dismissing the bill, said, at p. 753: ''That it was competent for the state of California to declare that the use of all water appropriated for sale, rental or distribution should be a public use and subject to public regulation and control, and that it could con- fer upon the proper municipal corporation power to fix the rates of compensation to be collected for the use of water supplied to an}^ city, county or town, or to the inhabitants thereof, is not disputed, and is not, as we think, to be doubted. It is equally clear that this power could not be exercised arbitrarily and without reference to what was just and reasonable as between the public and those who appropriated water and supplied it for general use; for the state cannot by any of its agencies, legislative, executive or judicial, with- hold from the owners of private property just compensation for its use. That would be a deprivation of propertv without due process of law." Again, at p. 754, the court said: 42 RATE REGULATION. "What elements are involved in the general inquiry as to the reasonableness of rates es- tablished by law for the use of property by the public? This question received much consid- eration in Smyth v. Ames, above cited. That case, it is true, related to rates established by a statute of Nebraska for railroad companies doing business in that' state. But the principles involved in such a case are applicable to the present case." Again, at p. 757, the court said: ''What the company is entitled to demand, in order that it may have just compensation, is a fair return upon the reasonable value of the property at the time it is being used for the public. The property may have cost more than it ought to have cost, and its outstand- ing bonds for money borrowed and which went into the plant may be in excess of the real value of the property. So that it cannot be said that the amount of such bonds should in every case control the question of rates, al- though it may be an element in the inquiry as to what is, all the circumstances considered, just both to the company and to the public." Again, the court, in conclusion, said at p. 760: ''But we do not think that we are warranted in holding that the rules upon which the de- fendant's board proceeded were in disregard of the principles heretofore announced by this court in the cases cited. The case is not one for judicial interference with the action of the THE MORE IMPORTANT CASES DIGESTED. 43 local authorities to whom the question of rates was committed by the state." CoTTiNG V. Kansas City Stock Yards Co., 183 U. S. 79 (1901). In this case the act of March 3, 1897, of Kansas, fixed the rate which should be charged by the stock yard companies doing business over a certain amount, and a bill was brought by the stockholders in the United States Circuit Court in Kansas to have the act declared unconstitutional. The Cir- cuit Court dismissed the bill, but continued the injunction pending an appeal to the United States Supreme Court. The United States Supreme Court held that the act was unconstitutional on the ground that the act was in contravention of the Fourteenth Amend- ment of the Constitution of the United States, in that it did not apply to all stock yard companies, and thereby denied to companies doing business above a certain amount, equal protection of the laws. The question as to the right of the legislature to impose rates, or the reasonableness of the rates, was not decided in this case, but the question is dis- cussed at length and the dicta of the court is worthy of careful consideration. ]\Ir. Justice Brew^er, de- livering the opinion of the court, said, at p. 84: ''In Munn v. Illinois, 94 U. S. 113, it was 44 RATE REGULATION. held that the state had power to fix the maxi- mum charges for the storing of grain in ware- houses in Chicago." Again, at p. 85: ''Tested by the rule laid down in Munn v. Illmois, it may be conceded that the state has the power to make reasonable regulation of the charges for services rendered by the stock yards company. Its stock yards are situ- ated in one of the gateways of commerce, and so located that they furnish important fa- cilities to all seeking transportation of cattle. While not a common carrier, nor engaged in an}^ distinctively public employment, it is do- ing a work in which the public has an interest, and, therefore, must be considered as subject to governmental regulation. ''But to what extent may this regulation go? Is there no limit beyond which the state may not interfere with the charges for services either of those who are engaged in performing some public service, or of those who, w^hile not engaged in such service, have jxt devoted their property to a use in which the public has an interest? And is the extent of govern- mental regulation the same in both of these classes? In Munn v. Illinois, one of the latter class, in which the power of governmental regulation w^as affirmed, it was said, at p. 125: 'From this it is apparent that down to the time of the adoption of the Fourteenth Amend- ment it was not supposed that statutes regulat- THE MORE IMrOIITANT CASES DIGESTED. 45 ing the use, or even the price of the use, of private property necessarily deprives an owner of his property without due process of law. Under some circumstances they ma}^ but not under all.' '^n Budd V. New York, 143 U. S. 517, it was not charged or shown that the rates pre- scribed by the legislature were unreasonable, and the only question was the power of the legislature to interfere at all in the matter. The same is true of Brass v. Stoeser, 153 U. S. 391, in which nothing was presented calling for any consideration of the test of reasonable- ness, or of a hmit to the legislative power. ''As to those cases in which governmental regulation of charges was in respect to parties doing some public service, the following is a resume of the decisions: In Spring Valley Water Works v. Schottler, 110 U. S. 347, it was said (p. 354): 'What may be done if the municipal authorities do not exercise an honest judgment, or if they fix upon a price which is manifestly unreasonable, need not now be con- sidered for that proposition is not presented by this record. The objection here is not to any improper prices fixed by the officers, but their power to fix prices at all." In Railroad Commission Cases, 116 U. S. 307 (p. 331): "From what has thus l^een said it is not to be inferred that this power of Hmitation or regulation is itself without limit. This power 46 RATE REGULATION. to regulate is not a power to destroy, and limitation is not the equivalent of confisca- tion. Under pretense of regulating fares and freights the state cannot require a railroad corporation to carry persons or property with- out reward; neither can it do that which in law amounts to a taking of private property for public use without just compensation, or without due process of law." In Wabash Ry. Co. v. Illinois^ nothing was said affecting the question of the extent of the power of the legislature. In Dow v. Beidelman, 125 U. S. 680, the quotation heretofore made from the Rail- road Commission Cases was quoted with approval. In Chicago, Mil. & St. Paul Ry. Co. v. Minnesota, 134 U. S. 418, the same passage was quoted, and it was added (p. 458): ^'If the company is deprived of the power of charging reasonable rates for the use of its property, and such deprivation takes place in the absence of an investigation or judicial machinery, it is deprived of the lawful use of its property, and thus, in substance and effect, of the property itself, without due process of law and in violation of the Constitution of the United States; and in so far as it is thus de- prived, while other persons are permitted to receive reasonable profits upon their invested capital, the company is deprived of the equal protection of the laws. " THE MORE IMPORTANT CASES DIGESTED. 47 In Chicago &c. Railway Co. v. Wellman, 143 U.S. 339 (p. 334): ''The legislature has power to fix rates, and the extent of judicial interference is protection against unreasonable rates." In Reagaji v. Farmers' Loan & Trust Co., 154 U. S. 362 (p. 399): ''The equal protection of the laws which, by the Fourteenth Amendment, no state can deny to the individual, forbids legislation, in whatever form it may be enacted, by which the property of one individual is, without com- pensation, wrested from him for the benefit of another, or of the public. This, as has been often observed, is a government of law and not^a government of m.en, and it must never be forgotten that under such a government, with its constitutional Hmitations and guar- antees, the forms of law and the machinery of government, with all their reach and power, must m their actual workings stop on the hither side of the unnecessary and uncom- pensated taking or destruction 'of any private property legally acquired and legally held." And again (p. 412): "It is unnecessary to decide, and we do not wish to be understood as laying down an ab- solute rule that in every case a failure to pro- 48 KATE REGULATION. duce some profit to those who have invested their money in the building of a road is con- clusive that the tariff is unjust and unrea- sonable. And yet justice demands that every one should receive some compensation for the use of his money or property, if it be possible without prejudice to the rights of others. There may be circumstances which would justify such a tariff; there may have been extravagance and a needless expense of money ; there may be waste in the management of the road; enormous salaries, unjust discrimination as between individual shippers resulting in general loss. The construction may have been at a time when material and labor were at the highest price, so that the actual cost far ex- ceeds the present value; the road may have been unwisely built in localities where there is not sufficient business to sustain a road. Doubtless, too, there are many other matters affecting the rights of the community in which the road was built, as well as the rights of those who have built the road." In St. Louis & San Francisco Ry. Co. v. Gill, 156 U. S. 649, is this language (p. 657): ''This court has declared in several cases that there is a remedy in the courts for reUef against legislation establishing a tarifT of rates which is so unreasonable as to practically de- stroy the value of the property of companies engaged in the carrying business." THE MOKE IMPORTANT CASES DIGESTED. 49 In Covington &c. Turnpike Co. v. Sand j or d, 164 U. S. 578 (pp. 596, 597): ''The legislature has the authority in every case, where its power has not been restrained by contract, to proceed upon the ground that the public may not rightfully be required to submit to unreasonable exactions for the use of a public highway established and main- tained under legislative authority. If a cor- poration cannot maintain such a highway and earn dividends for stockholders, it is a mis- fortune for it and them, which the Constitu- tion does not require to be remedied by im- posing unjust burdens upon the public. So that the right of the public to use the defend- ant's turnpike upon payment of such tolls as in view of the nature and value of the services rendered by the company are reasonable is an element in the general inquiry whether the rights established by law are unjust and un- reasonable. That inquiry also involves other considerations, such, for instance, as the rea- sonable cost of maintaining the road in good condition for public use, and the amount that may have been really and necessarily invested in the enterprise. In short, each case must depend upon its special facts; and when a court, without assuming itself to prescribe rates, is required to determine whether the rates prescribed by the legislature for a cor- poration controlling the pu})lic highway are, as an entirety, so unjust as to destroy the value of its property for all the purposes for which 4 50 RATE REGULATION. it was acquired, its duty is to take into con- sideration the interests both of the pubHc and of the owner of the property, together with all other circumstances that are fairly to be con- sidered in determining whether the legislature has, under the guise of regulating rates, ex- ceeded its constitutional authority and practi- cally deprived the owner of property without due process of law." In Smyth v. Ames, 169 U. S, 466, after an elabo- rate discussion of the question of rates and the power of the legislature in respect thereto, it was said (pp. 546, 547): ''We hold, however, that the basis of all calculations as to the reasonableness of rates to be charged by a corporation maintaining a highway under legislative sanction must be the fair value of the property being used by it for the convenience of the public ; and in order to ascertain that value, the original cost of construction, the amount expended in per- manent improvements, the amount and market value of its bonds and stock, the present as compared with the original cost of construc- tion, the probable earning capacity of the property under particular rates prescribed by statutes and the sum required to meet operat- ing expenses are all matters for consideration, and are to be given such weight as may be just and right in each case. We do not say that there may not be other matters to be regarded THE MORE IMPORTANT CASES DIGESTED. ol in estimating the value of the propertj^ What the company is entitled to ask is a fair return upon the value of that which it emploj^s for the public convenience. On the other hand, what the public is entitled to demand is that no more be exacted from it for the use of a public high- way than the services rendered by it are rea- sonably worth." In San Diego Land Co. v. National City, 174 U. S. 739 (p. 757): ''The contention of the appellant in the present case is that in ascertaining what are just rates the court should take into considera- tion the cost of its plant, the cost per annum of operating the plant, including interest paid on money borrowed and reasonably necessary to be used in constructing the same ; the annual depreciation of the plant from natural causes resulting from its use and a fair profit to the company over and above such charges for its service in supplying the water to consumers, either by way of interest on the money it has expended for the public use, or upon some other fair and equitable basis. Undoubtedly all these matters ought to be taken into considera- tion, and such weight be given them when rates are being fixed as, under all circumstances, , v/ill be just to the company and to the public. The basis of calculation suggested by the ap- pellant is, however, defective in not requiring the real value of the property and the fair value in themselves of the service rendered to be 52 RATE REGULATION. taken into consideration. What the company is entitled to demand in order that it ma}" have just compensation is a fair return upon the reasonable value of the property at the time it is being used for the public. The property may have cost more than it ought to have cost, and its outstanding bonds for money borrowed and which went into the plant may be in excess of the real value of the property. So that it cannot be said that the amount of such bonds should in every case control the question of rates, although it may be an ele- ment in the inquiry as to what is, all the cir- cumstances considered, just both to the com- pany and to the public." And also affirming the limit of judicial inter- ference with legislative action (p. 764) : ''But it should also be remembered that the judiciary ought not to interfere with the collec- tion of rates established under legislative sanc- tion, unless they are so plainly and palpably unreasonable as to make their enforcement equivalent to the taking of property for pubhc use without such compensation as, under all the circumstances, is just both to the owner and to the public; that is, judicial interference should never occur unless the case presents clearly and beyond all doubt such a flagrant attack upon the rights and property, under the guise of regulation, as to compel the court to say that the rates prescribed will neces- sarily have the effect to deny just compensa- THE MOKE IMPORTANT CASES DIGESTED. 53 tion for private property taken for the public use." Again, Mr. Justice Brewer said, at p. 91: ''In the hght of these quotations this may be affirmed to be the present scope of the decisions of this court in respect to the power of the legislature in regulating rates: As to those individuals and corporations who have devoted their property to a use in which the public has an interest, although not engaged in the work of a confessedly public character, there has been no further ruling than that the state may prescribe and enforce reasonable charges. What shall be the test of reason- ableness in those charges is absolutely un- disclosed." Again, at p. 97, the court said: ''The authority of the legislature to inter- fere by a regulation of rates is not an authority to destroy the principles of these decisions, but simply to enforce them. Its prescription of rights is prima facie evidence of their reason- ableness. In other words, it is a legislative declaration that such charges are reasonable compensation for the services rendered, but it does not follow therefrom that the legis- lature has the power to reduce any reasonable charges because by reason of the volume of business done by the party he is making more profit than others in the same or other busi- 54 RATE EEGULATION. ness. The question is alwaj^s not what does he make as the aggregate of his profits, but what is the vahie of the services which he renders to the one seeking and receiving such services. Of course, it may sometimes be, as suggested in the opmion of Lord Chancellor Selborne, that the amount of the aggregate profits may be a factor in considering the question of the reasonableness of the charges, but this is only one factor and is not that which finally determines the question of reasonable- ness. Now, the controversy in the Circuit Court proceeded upon the theory that the aggregate of profits was the pivotal fact. To that the testimony was adduced, upon it the findings of the master were made, and in recog- nition of that fact the opinion of the court was announced. Obviously, as we think, in all this the lines of inquiry were too narrowly pursued." Stanislaus County v. San Joaquin C. & I. Com- pany, 192 U. S. 201 (1903). In this case the corporate authorities of the county appealed from the decree of the Circuit Court of the United States for the Northern Dis- trict of Cahfornia, setting aside an ordinance adopted by the Board of Supervisors fixing the water rates. Mr. Justice Peckham, in delivering the opinion of the court, reversing the decree, said, at p. 213: ''It is not confiscation nor a taking of prop- THE MORE IMPORTANT CASES DIGESTED. 55 erty without due process of law, nor a denial of the equal protection of the laws, to fix water rates so as to give an income of six per cent upon the then value of the property actually used, for the purpose of supplying water as provided by law, even though the company had prior thereto been allowed to fix rates that would secure to it one and a half per cent a month income upon the capital actually in- vested in the undertaking. If not hampered by an unalterable contract, providing that a certain compensation shoulcl always be re- ceived, we think that a law which reduces the compensation theretofore allowed to six per cent upon the present value of the property used for the pubhc is not unconstitutional. There is nothing in the nature of confiscation about it. "The original cost may have been too great; mistakes of construction, even though honest, may have l)een made, which necessarily en- hanced the cost; more property may have been acquired than necessary or needful for the purpose intended. Other circumstances might exist which would show the original rates much too large for fair or reasonable compensation at the present time. Notwithstanding such facts, are the shareholders in the company- to be forever entitled to eighteen per cent upon this cost, and does a reduction in amount, as provided for in the act of 1885, take away property in violation of the provisions of the Federal Constitution? We think not. "In this case much of the total amount ex- 56 RATE REGULATION. pended in the course of the construction of the works was not proved by those who made such expenditures, and the items and total amount of the cost of construction were only proved by the books. What such books did not prove was the reasonableness of that cost, its pro- priety or necessity. There were statements that appeared in the minutes of the meetings of the shareholders which were put in evi- dence, that showed at least a dispute as to the proper cost of the works, and at one of these meetings a shareholder said there had been a waste in the management of the affairs of the company, amounting to $350,000, which was caused by the chief engineer who had been in charge of the canal, and that his mistakes had cost the company a good deal of money. There would seem to have been more of a dis- pute as to who was responsible for this loss than over the fact of loss. At another meet- ing, held in December, 1881, the president had said in his remarks to the meeting that, in his opinion, with careful management the canal would pay a fair revenue on what it ought to have cost. Although these minutes did not conclusiveh^ prove the fact of the excessive cost of the work, A^et where the books of the company were substantially the only evidence of the amount expended, and there was no other satisfactory evidence of the reasonable- ness of the expenditures, it would not be sur- prising if the board should have regarded the statements in the minutes relating to ex- cessive cost as a justification, if not a require- THE MORE IMPORTANT CASES DIGESTED. 57 ment, for the reduction of the cost of con- struction, upon which rates might be fixed, by at least the amount mentioned, $350,000. "Other considerations in the shape of facts, circumstances and conditions pertinent to the alleged cost of the work, and appearing in the course of the inquir}^ may have been con- sidered by the supervisors and the conclusion arrived at, after a consideration of all the material facts, that the rates fixed would re- sult in justice to both the company and the consumers, as called for by the act. "Judging by this record, we are unable to say the board of supervisors failed to provide just and fair compensation for the use of the property by the pubhc." Citing also : San Diego Land Co. v. National City, 174 U. S. 739; Smyth v. Ames, 169 U. S. 466; San Diego Land Co. v. Jasper, 189 U. S. 439. PART IV. THE STATUTES OF THE SEVERAL STATES AUTHORIZ- ING MUNICIPALITIES TO ERECT GAS AND ELECTRIC PLANTS AND REGULATING THE RATES FOR THE CHARGES FOR THE SUPPLY OF GAS AND ELEC- TRICITY, BY MUNICIPALITIES, PUBLIC CORPORA- TIONS AND INDIVIDUALS. In most of the states there has been some legis- lation affecting the manufacture and sale of gas and electricity and I have endeavored to set forth here the latest statutes in each state, taking the states in alphabetical order. There are very few states in which no such legis- lation has been enacted, and where any state is omitted it is for that reason. ARIO^NSAS. Digest of the Statutes (Wm. Kirby, 1904). Ch. 115, Sec. 5445. '^The City Council of any city or town in this state is hereby authorized, when complaint is filed with them by five or more citizens of such city or town that any water com- 58 THE STATUTES OF THE SEVERAL STATES. 59 pany, gas or electric light plant, or any person managing such water, gas or electric light plant, is charging an exorbitant rate for the supply of water, gas or electricity, to summons all such per- sons together with their books and make such examination as will be necessary to determine whether or not the prices charged for water, gas or electricity is reasonable; and if upon examina- tion the City Council shall determine that the citizens or any number of the citizens of such city or town is being charged an unreasonable price for water, gas or electricity, it shall be their duty to fix such price to be paid for water, gas or elec- tricity, as they may deem to be a reasonable charge." Sec. 5446. ''Any person, company or corpora- tion now owning or operating or who may here- after own or operate any water, gas or electric Hght plant in this state, situated in any of the cities or towns of this state, for the purpose of furnish- ing the inhabitants of such city or town with water, gas or electricity, is hereby required to appear before the City Council or any committee thereof as often as such City Council may deem necessary and exhibit the books of water, gas or electric light plant, and are hereby required to adopt such rates to be charged for water, gas or electricity, as shall be fixed by the City Council of such city or town." Sec. 5447. "Any person, company or corpora- 60 EATE REGULATION. tion owning or operating such water, gas or elec- tric light plant, who shall fail or refuse to accept the rate as fixed by the City Council of any city or town in this state to be charged for water, gas or electricity, and mstead thereof shall charge, de- mand or receive a greater amount than that fixed by the City Council as aforesaid, shall be deemed guilty of a misdemeanor, and upon conviction in any mayor, police or justice court or the Circuit Court on appeal shall be fined in any sum not less than twenty-five dollars, nor more than five hun- dred dollars, and each day that such overcharge is made shall constitute a separate offense (Act of April 21, 1903)." CALIFORNIA. Constitution of California- — Regulation of Tele- graph, Gas, Storage and Wharfage Rates. Sec. 33, Art. IV. ''The legislature shall pass laws for the regulation and limitation of the charges for services performed and commodities furnished by telegraph and gas corporations and the charges by corporations or individuals for storage and wharfage, in which there is a public use ; and where laws shall provide for the selection of any person or officer to regulate and limit such rates, no such person or officer shall be selected by any corpora- tion or individual interested in the business to be THE STATUTES OF THE SEVERAL STATES. 61 regulated, and no person shall be selected who is an officer or stockholder in any such corporation." (There has been no legislation under this provision and no citation by the courts. An- notation Brobeck & Simms' Corp. Laws of Cal., 1904.) Constitution of California — Use of streets by tvater and lighting companies. Sec. 19, Art. XI. ''In any city where there are no public works owned and controlled by the municipality for supplying the same with water or artificial light, any individual or any company duly incorporated for such purpose under and by authority of the laws of this state shall, under the direction of the Superintendent of Streets, or other officer in control thereof, and under such general regulations as the municipality may prescribe for damages and indemnity of damages, have the privilege of using the public streets and thorough- fares thereof, and of laying down pipes and con- duits therein and connections therewith so far as may be necessary for introducing into, supplying such city and its inhabitants either with gas light or other illuminating light, or with fresh water for domestic and all other purposes, upon the con- dition that the municipal government shall have the right to regulate the charges thereof." Annotation (Brobeck & Simms', 1904),^ Lighting 62 RATE REGULATION. Companies. Although the contract fixing the price of gas may be void, still if the gas is actually fur- nished to and used by the municipality, the board may allow for its payment such sum as it is rea- sonably worth. San Francisco Gas Co. v. Dunn, 62 Cal. 580. Political Code of California (1903). Sec. 4412. Contract for gas and water. ''The Common Council may contract with gas and water companies for supplying the streets and public buildings with all gas and water necessary for their proper use; the rates to be paid therefor must not be fixed for a term exceeding five years and the city authorities must reserve the right to abrogate such contract whenever gas and water is offered to be supplied at two-thirds of such fixed contract price." COLORADO. Mills' Annotated Stat. (1891), ch. 124, sec. 4403, sub. 69. Gas — Water — Private companies, etc. ''When the right to build and operate such water or gas works is granted to private individuals or incor- porated companies by said cities and towns, the}' may make such grant to inure for a term of not more than twenty-five years and authorize such individuals or company to charge and collect from each person supplied by them with water or gas, THE STATUTES OF THE SEVERAL STATES. 63 such water or gas rent as may be agreed upon be- tween said person or corporation so building said works and said city or town; and such cities or towns are authorized and empowered to enter into a contract with the individual or company con- structing said works, to supply said city or town with water for fire purposes, and for such other purposes as may be necessary for the health and safety thereof, and also with gas, and to pay there- for such sum or sums as may be agreed upon be- tween said contracting parties." Mills' Col. Digest (1901), vol. 1— Constitutional law. Sec. 80. Power to regulate charges for public ser- vices. ''The general power of the legislative de- partment to regulate the compensation of a cor- poration for performing public services, in the absence of a contract regulating it, is subject to the hmitation that it must be reasonably exercised, and the reasonableness of the regulation is a proper subject of judicial inquiry. But when, as in the case at bar, the corporation rendering the services and the municipality have mutually agreed upon a method for determining such compensation, and the latter has complied therewith, the former may not insist upon its constitutional rights, and dis- regard the contract without showing the imrea- sonableness or non-enforceability thereof." 64 RATE REGULATION. CONNECTICUT. General Statutes of Connecticut (Revision of 1902). (1893, ch. 231, p. 1.) Ch. 122. Gas and Electricity. Sec. 1978. Municipalities may establish gas and electric plants. "Any city, town, or borough, may under the limitations of this chapter construct, purchase, lease, or establish and maintain, within its limits, one or more plants for the manufacture and distribution of gas or electricity for furnishing light for municipal use, and for the use of such of its inhabitants as may require and pay for the same. Such plants may include suitable lands, structures, easements, water privileges, stations, gas meters, boilers, engines, dynamos, tools, ma- chinery, pipes, conduits, poles, conductors, burners, lamps and other apparatus and appliances for making, generating, distributing and using gas or electricity for lighting purposes." (1893, ch. 231, p. 8.) Sec. 1785. Board of gas and electrical commis- sioners. ''Whenever any city, town or borough shall obtain a plant as provided in § 1978, a com- mission shall be appointed, as hereinafter provided, to be known as the board of gas commissioners, board of electrical commissioners, or board of gas and electrical commissioners, according as a plant for one or both may be under their charge, to whom shall be intrusted, subject to any ordinances or by-laws established by any common council of any THE STATUTES OF THE SEVERAL .STATES. 65 city, or by any board of warden and burgesses of any borough, or by any town, the operation, con- trol, management, repair of the plant, and the manufacture, generation and distribution of gas and electricity, including the purchase of sup- plies, the hiring and discharge of employes, and a suitable clerk and superintendent, and all the busi- ness relating to such manufacture, generation and distribution, and to the methods, amounts, times, prices, and quality of supply to each person and corporation, the collection of bills, the keeping of accounts, and the custody of money received for gas or electricity, or otherw^ise, and the payment of bills incurred in said business. Said commission shall consist of three citizens of such city, or town, or borough, not holding other official positions in such city, town, or borough, who shall be appointed by the court of common council of such city, or b}^ the selectmen of such town, or by the court of warden and burgesses of such borough, one for one year, one for two years, and one for three years, and thereafter annually one commissioner shall be ap- pointed to serve for three years. Before entering upon the duties of their office, they shall give bonds to the city, town or borough, for the faithful per- formance of their duties, in such sum and form and with such sureties as the mayor or selectmen or court of warden and burgesses shall approve. They shall on the first day of September of each year, 5 66 KATE REGULATION. render to the court of common council of a city, or to the board of selectmen of a town, or court of warden and burgesses of a borough, a detailed statement of their doings and of the business and financial matters in their charge. They shall also, at any time required by the court of common council of a city, or the selectmen of a town, or court of warden and burgesses of a borough, make to them a statement of their doings, business, re- ceipts, disbursements, balances, and of their in- debtedness of the city, town or borough in their department, in the detail required, and they shall pay over to the treasurer of the city, town or bor- ough, all moneys collected in their department." (1893, ch. 231, p. 10.) Sec. 1987. Price charged for gas or electricity. "The price to be charged to persons or corpora- tions for gas or electricity shall be fixed, and shall not be changed oftener than once in three months. Any change shall take effect on the first day of the month, and the new price adopted shall, before the change shall take effect, be advertised at least one month in some newspaper published in the city, town or borough, where the plant is, and if none shall be published therein, then in some news- paper published in the county where the plant is. Such price shall not be fixed on a basis of less than a net profit per year of five per cent on the cost of the investment in plant made by the city, town THE STATUTES OF THE SEVERAL STATES. 67 or borough, and also depreciation of the plant at not less than five per cent per annum of its cost, and the price shall not be greater than shall allow a net profit of eight per cent per annum to the city or borough on such cost. In fixing such basis on which to estabhsh the price to be charged to per- sons and corporations, the gas and electricity used by the city, town or borough, shall be charged to it at cost. A sufficient deposit to cover the pay- ment for gas or electricity for three months may be required in advance from any taker, and the supply may be shut off from any premises until all ar- rearages for gas or electricity furnished thereon shall be paid. After three months' default in pay- ment of such arrearages, all appliances for distribu- tion on such premises belonging to the city, town or borough, may be removed, and after such re- moval shall not be restored except on payment of all such arrearages and a sufficient sum to cover all expenses incurred by the removal and restora- tion, with the penalty which the city, town or borough, may impose in such cases." FLORIDA. Laws of 1897, ch. 4600. Act to enable cities and towns to manufacture and distribute gas and elec- tricity, etc. Sec. 8. "The price to be charged for gas or 68 RATE REGULATION. electricity to persons and corporations shall be fixed by the city or town council, and shall not be changed oftener than once in three months." GEORGIA. The only law that can be found to bear on the point at bar is as follows: Code of the State of Georgia, sec. 1870 (Act of 1894, p. 114, sec. 2181). Electricity, rent or sale of power. ''Any person or corporation creating electricity in this state may make contracts and lease power or any part thereof to any person or corporation." IDAHO. Civil Code (1901). Sec. 2294. Must supply gas on written applica- tion. ''Upon the application in writing of the owner or occupant of any building or premises distant not more than 100 feet from any main of the corporation, and payment by the applicant of all money due from him, the corporation must supply gas as required for such building or prem- ises, and cannot refuse on the ground of any in- debtedness of any former owner or occupant thereof, unless the applicant has undertaken to pay the same. If for the space of ten days after such application the corporation refuses or neglects to THE STATUTES OF THE SEVERAL STATES. 69 supply the gas required, it must pay to the appU- cant the sum of fifty dollars as liquidated dam- ages and five dollars a day as liquidated damages for every day such refusal or neglect continues thereafter." (1887, Rev. Stat. 2788.) ILLINOIS. Revised Statutes (1903), p. 518. Sec. 167. Price and quality of gas to be furnished. § 11. ''Any corporation purchasing or leasing the property of any company or companies, or into which any company or companies are consolidated or merged under this act, shall be at the time of availing itself of or accepting the benefits of this act, in the actual business of furnishing gas to consumers, and shall be subject to the following provisions : ''Such corporation shall not increase the price charged by it for gas of the quality furnished to consumers during any part of the year immedi- ately preceding such purchase or lease or such consohdation and merger." (An act in relation to gas companies, Laws 1897, p. 177.) "AN ACT to confer upon the City of Chicago the power and authorit}^ to sell surplus electricity, and to fix the rates and charges for the supply of gas and electricity for power, heating and lighting furnished b)^ any individual, .company 70 RATE REGULATION. or corporation to said City of Chicago, and the inhabitants thereof." ''Section 1. Be it enacted by the People of the State of llhnois represented in the General Assembly: That upon the adoption of this act in the manner hereinafter provided, the City of Chi- cago shall have the power and authority to sell surplus electricity for heat, light and power within the corporate limits of said city, and is hereby empowered to prescribe by ordinance maximum rates and charges for the suppty of gas and elec- tricity for power, heating and lighting furnished by any individual, company or corporation to such city and the inhabitants thereof. Such rates and charges to be just and reasonable, and may be fixed for a period not exceeding five years; and in case the corporate authorities of any such city shall fix unjust and unreasonable rates and charges, the same may be reviewed and determined by the Circuit Court of the county in which said city is situated: Provided, that nothing in this act con- tained shall be construed as enlarging the powers now conferred by law upon said city to own, con- struct or acquire electric lighting plants, or as per- mitting said city to sell electricity so long as the same is needed for light, heat and power for mu- nicipal purposes. ''§2. This act shall not be in force until the question of its adoption shall first have been sub- THE STATUTES OF THE SEVEKAL STATES. 71 mitted to the electors of such cit}', and approved by a majority of those voting thereon. The City Council of the City of Chicago may direct by or- dinance that the question of the adoption of this act by the City of Chicago be submitted to popular vote at any general, city or special election in and for the entire city, coming not sooner than thirty (30) days from and after the passage of such ordi- nance. The city clerk of said city shall certify the passage of such ordinance to the proper elec- tion officials, and it shall thereupon be the duty of such election officials to submit the question of the adoption of this act by the city of Chicago to popular vote. The city clerk of the city of Chi- cago shall also give at least thirty (30) days' notice of such election by publishing a notice thereof in one or more newspapers of general cir- culation within such city. ''§3. The ballots to be used at such election shall be in the following form: For the adoption of an act, entitled 'An Act to confer upon the City of Chi- cago power and authority to sell surplus Yes electricity, and to fix "^ the rates and charges for the supply of gas or elec- tricity for power, heating and lighting furnished by any individual, company No or corporation to said City of Chicago and the inhabitants thereof.' 72 RATE REGULATIOX. ''If a majority of the votes cast upon said propo- sition at said election shall be voted for the adop- tion of this act, it shall thereby and thereupon be adopted by, and be in force, in the city of Chicago. "Edward D. Shurtleff, ^^ Speaker of the House of Representatives. ''Approved May 18, 1905. "Charles S. Deneen, "Gover7ior. Lawrence Y. Sherman, ^^ President of the Senate ^ INDIANA. Horner's Annotated Stattdes (1901). Sec. 3106a. City or town niay corUract for and use electric light. 1. "The common council of any city in this state, incorporated either under the general act for the incorporation of cities, or under a special charter, and the board of trustees of all incorporated towns of this state, shall have the power to light the streets, alleys and other public places of such city and town with the electric light, or other form of light, and to contract with any individual or corporation for lighting such streets, alleys, and other public places with the electric light, or other forms of light, on such terms, and for such times, not exceeding ten years, as ma}^ be agreed upon." Sec. 3114a provides for the election of Electric Light Commissioners by the common council of THE STATUTES OF THE SEVERAL STATES. / o incorporated cities having more than 10,000 popu- lation. I can find nothing, however, as to the regulation of the rates to be charged. IOWA. Code of Iowa (Annotated, 1897). Sec. 695. Cities and towns are bodies corporate. Authority vested in mayor and common council. Sec. 720. Water or gas works — Electric plants. Cities and towns authority to purchase, lease, etc. Sec. 725, Regulation of rates and service. ^'They (cities and towns) shall have power to require every individual or private corporation operating such works or plant, subject to reasonable rules and regulations, to furnish any person applying there- for, along the line of its pipes, mains, wires, or other conduits, with gas, water, light or power, and to supply said cit}^ or town with water for fire pro- tection, and with gas, water, light or power for other necessary public purposes, and to regulate and fix the rent or rate for water, gas, light or power; to regulate and fix the rents or rates of water, gas and electric light or power; to regulate and fix the charges for water meters, gas meters, electric light or power meters, or other device or means necessary for determining the consumption of water, gas, electric light or power, and their powers shall not be abridged by ordinance, resolu- tion or contract." 74 RATE REGULATION. K\XSAS. General Statutes oj Kansas (1901 j. Light, Heat and Power Franchises. Sec. 653 pro\'ides for private corporation stip- phTJig light, etc., to cities in accordance with pro- visions of tMs act. Sec. 654. Authorities may contract. § 51. "The municipal authorities of any city of the first, sec- ond or third class in this state in which any such private corporation now exists, and which may now or hereafter manufacture. seU or furnish gas fight, electric fight, electric power, water or heat to such city and its citizens, is hereby authorized to con- tract with any such corporation for the fighting of, and for .supph-ing power, water or heat to. pubfic or private biuldtngs and other places, and for aU purposes necessar}' in any such city, and to fix aU charges therefor, upon the conditions im- posed in this act."' Sec. 655. Renewal — Statement of costs. § 52. "As a condition precedent to procure a renewal or origi- nal grant, lease or contract from any city of the first, second or third class in this state to furnish the mimicipafity or its citizens vnxh. fight, power, water or heat, such private corporation, by its resident president and secretary-, or resident man- ager or other ofl&cers, shaU furnish a detailed and accurate statement of aU items and kinds of items THE STATUTES OF THE VARIOUS STATES. 75- of material, and the then present vahie of material, used in constructing, or to be used in constructing, its plant, where used, or to be used, as well as a description and statement of the then present value of the real estate necessarily owned and used, or to be acquired by said corporation in operating its plant, which detailed statement shall give date of purchase of each item, from whom purchased, price paid, or to be paid, and the then actual present value thereof, and also a particular statement of the items paid out for labor, to whom paid, or estimated amount to be paid, in the construction of said plant, as accurately as can be done; w^hich statement or estimate must be sworn to by said officers or manager, and filed with the clerk of such city for inspection of an}' citizen thereof, and after public notice of such filing and the purpose thereof, in some newspaper of general circulation in such city, giving the date when such grant or lease will be applied for, at least fort}' days before any re- newal, grant, lease or contract, or original grant, lease or contract, is made with any such corpora- tion by such city, permitting the corporation to use the streets, alleys, roadways or squares of such city." Sec. 656. Reservation — Exception — Income. § 53. ''No renewal or original grant, lease or contract shall be made with any such private corpora- tion by any city of this state without reserving 76 RATE REGULATION. rents and providing for the collection of the annual rental value for the use of its streets, alleys, roadways or squares, which shall be done and as- certained by allowing, first, legitimate expenses of conducting such corporation's plant, including all necessary repairs, and second, by allowing interest at the rate of not more than six per cent per annum on the capital invested, as ascertained under the provisions of the preceding section, unless the council and mayor are petitioned to allow a greater rate than six per cent by at least three-fifths of the bona fide taxpayers of such city, based on the last assessment rolls, which expenses and per cent of the capital invested, being deducted from the gross earnings of said corporation, such municipality shall, through its proper officers, collect the net balance of said earnings as rentals for the use of the streets and alleys, roadways and squares of such city, and as the city's income on the fran- chise leased by said municipality to any such cor- poration; and as such rentals, said net proceeds shall be paid into the treasury of such city on the first day of January and July of each year, after the making of such grant, lease or contract for the operation of such plant." (There are other provisions regulating ap- peals, etc., and the acquirement of plants by cities, but there do not seem to be any pro- visions regulating rates.) THE STATUTES OF THE VARIOUS STATES. 77 Laws of Kansas, 1903, ch. 236, provides for the erection of electric plants by institutions of learn- ing, which may also supply the city and its inhabi- tants where located, and it further provides for the collection ''from such consumers (city and its in- habitants) the reasonable or contract value of the light, heat or power so furnished." MASSACHUSETTS. Revised Laws of Massachusetts (1902), ch. 121. Sec. 33. ''Upon the petition in writing of am^ person who has a residence or place of business m a city or town in which a corporation or company is engaged in the manufacture and sale of gas or electricity for light or heat, and who is aggrieved by the refusal or neglect of such corporation or company to supply him with gas or electricity, the board of gas and electric light commissioners may, after notice to the corporation or company to ap- pear, at a time and place therein named, to show cause why the prayer of such petition should not be granted, issue an order directing and requiring the corporation or company to supply the peti- tioner with gas for either of said purposes or with electric light, upon such terms and conditions as are legal and reasonable." Sec. 34. "Upon the complaint in writing of the mayor of a city, or the selectmen of a town, in which a corporation or company engaged in the 78 RATE REGULATION. manufacture or sale of gas or electricity for light or heat is located, or of twenty customers thereof, either of the quality or price of the gas or electric light sold and delivered, the board shall notify the corporation or company by leaving at its office a copy of such complaint and shall thereupon, after notice, give_a public hearing to such petitioner and such corporation or company, and after said hear- ing may order any reduction in the price of gas or electric light or improvement in quality thereof, and a report of such proceedings and the result thereof shall be included in its annual report. The maximum price fixed by such order shall not there- after be increased by such corporation or company except as provided in the following section." Sec. 35. ''A gas company in this commonwealth which furnishes gas under the provisions of general or special laws or of any contract with a city or town, and a gas or electric hght company which is engaged in the sale and delivery of electric light may apply to the board to fix and determine the price of gas or electricity to be thereafter sold and delivered by said company, or to revise any former order or action of said board relative to the quality or price thereof. Said board shall, after notice, give a public hearing to the petitioner, to the city or town and to all other persons interested, and thereafter may pass such orders relative to the price and quaUty of the gas or electricity thereafter THE STATUTES OF THE VARIOUS STATES. 79 to be furnished by said company as it determines are just and reasonable. Such orders shall be bind- ing upon all parties until further order of the said board." (The official title of the board is: Board of Gas and Electric Light Commissioners, Bos- ton, Mass.) MICHIGAN. Compiled Laws of Michigan (1897), vol. 1. "An act to authorize the cities and villages of this state to provide for the lighting of their streets and other public places therein, by means of elec- tric or other lights." (3437) Sec. 1. "The people of the state of Michi- gan enact, that it shall be lawful for any city or incorporated village in this state, to acquire by purchase or to construct, operate and maintain works for the purpose of supplying such cities or villages and the inhabitants thereof with gas, electric or other lights, or to contract for the furnishing thereof at such times and on such terms and conditions as the common council of any such city or the board of trustees in any such village shall direct." (3438) Sec. 2. "Whenever the common council of any city or the board of trustees of any village shall by resolution declare that it is expedient for 80 RATE REGULATION. such city or village to acquire b}^ purchase or to construct, as the case may be, works for the pur- pose of supplying such city or village and the in- habitants thereof with gas, electric or other lights, or when such common council shall deem it ex- pedient to contract for the lighting of such cities and villages with electric or other lights, then such common council or the board of trustees of any village or city shall have power to take such action as shall be deemed expedient to accomplish such purpose: Provided such action shall be governed by the provisions of act number five of the session laws of one thousand eight hundred and seventy, approved August fourth, 1870, as amended, en- titled, 'An act to authorize the introduction of water into and the construction or purchase of hydraulic works in the cities and villages of the state of Michigan,' l^eing sections 3096 to 3109 of Howell's Annotated Statutes, and all the provisions of that act, so far as the same shall be material, shall apph' to and have full force and operation in the case of cities and villages desiring to have the bene- fit of this act, in the same manner and to the same effect as in the case of cities and villages proposing to purchase or construct works for the purpose of supplying such city or village, or the inhabitants thereof, with w^ater: Provided that all contracts for lighting such cities or villages as hereinbefore pro- vided shall be for a period not less than three nor THE STATUTES OF THE VARIOUS STATES. 81 more than ten years: And provided further that such contract shall be entered into in the manner prescribed by the charter of such city or village for the letting of contracts for public lighting: Pro- vided further that, in case any such common coun- cil or board of trustees shall declare that it is expedient for such city or village to acquire by purchase or to construct, as the case may be, works for the purpose of supplying such city or village with electric or other lights, then such common council or board of trustees shall submit to the electors of the city or village the question of pur- chasing or constructing such works before any further proceedings are had, and no further pro- ceedings shall be had by such common council or board of trustees unless a majority of such electors vote for the purchasing or constructing of such works." (The act referred to in this section will be found in sees. 3416-3435.) ''An act to authorize the introduction of water into and the construction or purchase of hydraulic works in the cities and villages in the state of Michigan." (3419) Sec. 4. -''It shall be lawful for the com- mon council of any city or the corporate authorities 6 82 KATE REGULATION. of any village which shall avail itself of the provi- sions of this act b}' the passage of proper ordinances to provide for the appointment of a commission or board, the terms of at least one member of which commission or board shall expire yearly, to take the charge and management of such water works in the manner and to the extent which shall be provided in the ordinances of the city or village; and the common council of any city or the corpo- rate authorities of any village may by resolution or ordinance fix the rates for supplying water to the inhabitants thereof, regulate the manner of making connections and the use of the water, which rules and regulations shall apply equally to all the inhabitants of such city or village." MINNESOTA. Statutes of Minnesota (1894), vol. 1, sec. 2592. Works of internal improvement — Who may he in- corporated — Powers — Restrictio7is — Right of purchase by city or village, when. ''Any number of persons, not less than five, may associate for incorporation and become incorporated under and according to this title for the construc- tion, maintenance and operation of any work or works of internal improvement requiring the tak- ing of private property, or any easement therein, for pubhc use, including railways, telegraph lines, canals, slack-water or other navigation upon any THE STATUTES OF THE VARIOUS STATES. OO water course, bay or lake, dams to improve or create a water supply or power for public use, and any work or works with all requisite subways, pipes and other conduits for supplying the public with water, gas light, electric light, heat or power; and any citizens of the United States, not less than nine in number, owning any railway now or hereafter constructed for public use within this state for transportation of persons or property, or organized for the purpose of maintaining and operating under any lease or contract, a railroad constructed for like public use, may, by making and filing articles of association under and according to this title, acquire and enjoy the rights, powers, privileges and franchises hereinafter granted, and may, by filing in the office of Secretary of State a resolution of such corporation expressing its intent to construct, maintain and operate any branch line, become em- powered to construct, maintain and operate the same in connection with its main line, subject, however, to the provisions of this title and the general laws of this state, and any corporation formed hereunder may contract, maintain and operate telegraph hues along or over its lines of railroad, and that corporation formed hereunder, or under any act hereby amended, may charge and collect a reasonable compensation for its service. But no corporation formed under this title shall have any right to construct, maintain or operate 84 RATE REGULATION. upon or within any street, alleys or other high- way of any city or village, a railway of any kind, or any subway, pipe-line or other conduit for sup- plying the public with water, gas light, electric hght, heat, power or transportation of any im- provement of whatsoever nature or kind, without first obtaining a franchise therefor from such city or village according to the terms of its charter, and without first making just compensation therefor as herein provided. Provided, that the state of Minnesota shall at all times have full power and authority to supervise and regulate the business methods and management of any corporation ex- isting and operating hereunder, and shall also have full power and authority at all times to fix the compensation which shall, or may be charged or received by any corporation existing and operating hereunder. And any corporation organized under this act shall be subject to any condition from time to time imposed b}^ such village or city, through its Board of Trustees or City Council. And pro- vided further, that the common council of any city, and the l)oard of trustees of any village at the end of each and every five years from and after the granting of the franchise for the construction of any street railway, telephone, water works, gas and electric light, heat or power works, or any or all of them, shall have the right, when authorized so to do by a two-thirds vote of the electors of such THE STATUTES OF THE VARIOUS STATES. 85 municipality as hereinafter provided, to acquire the same by purchase, and thereafter operate the same upon paying to the company, corporation or person owning the franchise the full and true cost and value thereof, to be determined by the usual proceedings for acquiring public property for pub- lic use under the right of eminent domain upon petition of the authorities of such municipality. Except that none of the commissioners so appointed to appraise the same shall be residents of said municipality, and except further, that all the property, if any thereof, owned by the corporation in interest under antl in connection with said fran- chise shall be included in such proceeding and purchased and acquired hereunder. Before any such property shall be acquired by any munici- pality, or such proceedings be instituted, the propo- sition to acquire the same shall be submitted to a vote of the electors of said municipality at a special election called for that purpose within the three months immediately prior to the expiration of any five years of said franchise, and then only when authorized by two-thirds of the votes cast at said election. The consideration paid for any such works or property acquired under this provision shall be first applied to the payment of any bonds upon the property or works acquired, and the balance, if any, to the person, company or corpora- tion owning said franchise." 8G RATE KEGULATION. (G. S. 1866, c. 34, sec. 1, as amended 1875, c. 14, sec. 1 ; G. S. 1878, c. 34, sec. 1 ; 1885, c. 18; 1887, c. 161; 1889, c. 221; 1893, c. 74, sec. 1.) See In re St. Paul & N. P. Ry. Co., 36 Minn. 85; 30 N. W. Rep. 432. Sec. 1299, Art. 38. Manufacture and sale of gas. ''To regulate and control the quality and meas- urement of gas ; to prescribe and enforce rules and regulations for the manufacture and sale of gas; to provide for the inspection of gas and gas meters, and to appoint an inspector and prescribe his duties ; also to establish and maintain gas works within the village." Laws of Minnesota, 1901, ch. 199. ''An act to authorize and empower cities in this state having a population of not less than ten thousand and not more than fift}- thousand, to construct, erect or purchase electric light plants in such cities, and to authorize and empower such cities to issue their bonds for such purpose." "Be it enacted by the Legislature of the State of Minne- sota: "Section 1. That each city in the state of Minne- sota, having not less than ten thousand and not more than fifty thousand inhabitants, is hereby authorized and empowered by an affirmative vote of two-thirds of all the members of its city council to construct, erect or purchase an electric light plant THE STATUTES OF THE VARIOUS STATES. 87 to be operated by such city for the hghting of its pubHc streets, alleys, lanes, parks and public grounds, and for such other municipal purposes and uses requiring light or power, aB the city council of such city may direct; and for such use and benefit of the inhabitants of such cit}^, and upon such conditions as the city council of such city may from time to time by ordinance prescribe. ''§2. That each such city is hereb}" authorized and empowered by an affirmative vote of two- thirds of all the members of its city council to issue, in addition to all bonds heretofore authorized to be issued by such city, its bonds in an amount to be determined by said council, not exceeding in the aggregate forty thousand dollars, for the aforesaid purpose of constructing, erecting or purchasing an electric light plant in such city. ''§3. Said bonds shall be for the principal sum of one thousand (1,000) dollars each, and shall be payable at such time and at such place as the city council may designate, any provision of anj^ law of this state, whether general or special, governing such city, to the contrary notwithstanding; and the faith and credit of such city issuing the same is hereby irrevocably pledged to the payment of the same Said bonds shall be made payable to bearer or to the order of the person or corporation to whom they may be delivered, as the city council of such city may deem best, shall draw interest payable 8b RATE REGULATION. semi-annually at such place as the city council may determine, at a rate not exceeding four per cent per annum, to be represented by coupons attached to said bonds. Said bonds shall be signed by the mayor and attested by the recorder or clerk of such city, and the corporate seal of the city shall be imprinted upon said bonds, and said coupons shall be signed by said receiver or clerk. "§4. The city council of such city shall have authority, by an affirmative vote of two-thirds of all its members, to negotiate the sale of such bonds in such manner as in its judgment shall best sub- serve the interests of said city; but it shall not negotiate a sale, nor sell said bonds, or any of them, at less than their par value and accrued interest; and neither the said bonds, nor the proceeds from the sale thereof, shall be used for any other purpose than that heretofore specified, and such purpose shall be distinctly stated in the resolution or ordi- nance authorizing their issue. " § 5. This act shall take effect, and be in force from and after its passage." Approved April 10, 1901. Laws of Minnesota, 1903, ch. 144. An act entitled "An act authorizing any city of this state, now or hereafter having a population of over fifty thousand inhabitants, to make con- tracts for the purchase of a supply of electric power THE STATUTES OF THE VARIOUS STATES. 89 or of gas, or both, for operating an electric or gas lighting or heating plant or system, or both such plants or systems, owned by such cit3^" ^^Be it enacted by the Legislature of the State of Min7ie- sota: '^ Section 1. That any city of this state, now or hereafter having a population of over fifty thousand inhabitants, and at the same time owning an elec- tric or gas lighting or heating plant or system shall be authorized and empowered to enter into a con- tract, or contracts, for the purchase by such city of electricity or gas for the purpose of operating such electric or gas lighting, or heating plant, or system, owned by such city, or for operating both such plants or systems, upon such terms as may be approved by a three-fourths vote of all of the members-elect of the governing body thereof; pro- vided, that such city shall not be authorized to agree by such contract for the payment of a higher price than the lowest price charged at the time by the person or corporation with whom such con- tract is made, for a like amount of electric power or gas furnished to any other person or corporation under similar circumstances; and provided further, that such contract shall not be made to run for a period exceeding ten years. '' § 2. The obligation incurred by any such city in the making of such contract shall not be con- sidered as a part of its indebtedness under the pro- 90 RATE REGULATION. vision of its governing charter, or of any law of this state fixing a limit of indebtedness for such city; nor shall such city be required at any time before making or during the life of such contract to provide for or have on hand in its treasur}^ more money applicable to such contract than the amount to be paid thereon during a single year. ''§3. This act shall take effect and be in force from and after its passage. Approved April 6, 1903. MISSISSIPPI. "Mississippi Annotated Code of Law (1892). Municipalities: Sec. 2923. Each a municipal corporation : Powers, etc . Each city, town or village which is incorporated shall be governed b}' the provisions of this chap- ter, and shall be a municipal corporation with power 1st. To sue and be sued. 2d. To purchase and hold real estate and per- sonal property. To purchase and hold real estate within the corporate limits for all proper municipal purposes, and for parks, cemeteries, hospitals, school-houses, houses of correction, water works, electric lights and sewers. Lands without the cor- porate limits may be owned under purchase, grant or devise heretofore or hereafter made. 3d. To sell and convey any real or personal estate owned by it, and to make such order respecting the THE STATUTES OF THE VARIOUS STATES. 91 same as may be deemed conducive to the interest of the municipahty, and to exercise jurisdiction over the same. 4th. To make all contracts, and to do all other acts in relation to the property and concerns of the municipality necessary to the exercise of its corporate or administrative powers." 5th. To exercise such other or further powers as are herein conferred. Sec. 2933. Pipes and Conduits. ^^ To grant to any person or corporation the use of the streets, alleys and public grounds for the purpose of laying gas, water, sewer or steam pipes, or conduits for electric light to be used in furnishing or supplying the municipality and inhabitants, or any person or corporation, with gas, water, sewerage, steam or hot air for heating purposes or light; but a fran- chise right of way or privilege of any character whatever shall not be granted for a longer period than twenty-five years, and such privilege shall not be exclusive." Sec. 3014. Municipal Bonds. ''The mayor and board of aldermen for the purpose of raising money for the erection of hospital and school buildings, and the purchase of such buildings or land thereon and the improvement and adornment thereof, for the erection or purchase of water works, gas, elec- tric light and other plants, the establishment of a sewerage system, the protection of the municipality 92 RATE KEGULATION. from overflow, from caving banks and other like damages, improving or paving streets, and for the liquidation of existing debts of the mmiicipality may issue the bonds or other obligations of the city, town or village, not to exceed in amount, in- cluding all outstanding bonds, seven per centum of the assessed value of the taxable property of the municipality unless authorized by two-thirds of the qualified electors thereof; but in no case shall the amount issued exceed ten per centum of the assessed value. But the limit on the amount shall not apply to bonds or other obligations issued on liquidation, or to raise funds to liquidate any in- debtedness existing when this chapter becomes operative." Laws of Mississippi, 1904, ch. 182. "An act to enable cities, towns and villages in- corporated under any general or special laws of this state to fix the rates and charges for the supply of water, electric light or gas furnished by any in- dividual, company or corporation to any such city, town or village and the inhabitants thereof." Rates and Charges for water supplied by water companies: Municipal Boards may regulate same. Sec. 1. "Be it enacted by the legislature of the state of Mississippi that the corporate authorities of any city, town or village, now or hereafter in- corporated under any general or special law of this THE STATUTES OF THE VARIOUS STATES. 93 state, in which any individual, company or corpo- ration has been or hereafter may be authorized by such city, town or village to supply water, electric light or gas to such city, town or village and the inhabitants thereof, be and are hereby empowered to prescribe by ordinance maximum rates and charges for the supply of water, electric light or gas furnished by such individual, company or cor- poration to such city, town or village and the inhabitants thereof; such rates and charges to be just and reasonable. And in case the corporate authorities of any such city, town or village shall fix unjust and unreasonable rates and charges, the same may be reviewed and determined by the chancery court of the county in which such city, town or village may be : Provided this act shall not be construed so as to impose the effect or obliga- tion of any vahd or binding contract with any water works company, electric light company or gas company now existing, or heretofore made with any individual, or water company or electric light or gas company. Sec, 2. '' That this act shall be in force and take effect from and after its passage." Approved March 19, 1904. MISSOURI. Revised Statutes of 1899. Section 1341. Gas, Electric and Water Com- 94 IJATE REGULATION. 'panics; Power of. ''Aii}^ corporation formed under the provisions of this article for the purpose of supplying an}' town, city or village with gas, elec- tricity or water shall have full power to manu- facture and sell and to furnish such quantities of gas, electricity or water as may be required in said town or village, district or neighborhood where located for public or private buildings, or for other purposes; and such corporation shall have the power to lay the conductors for conveying gas, electricity or water through the streets, lanes, allej^s and squares of any city, town or village with the consent of the municipal authorities thereof and under such reasonable regulations as said au- thorities may prescribe." § 1342. Authority of Municipalities to Contract, etc. '' The municipal authorities of any city, town or village are hereby authorized to contract with any such corporation for the lighting by gas, electricity, or supplying with water the. streets, lanes, alleys, squares and public places in any such city, town or village. Municipal authorities of any city, town or village in which any water company shall be organized under this article ma}^ contract w^th any such company for the purpose of supply- ing with water the streets, lanes, alleys, squares and public places in any such city, town or village for any length of time which shall be agreed upon between such city, town or village and such com- THE STATUTES OF THE VARIOUS STATES. 9-J pany for a term not to exceed twenty years; and the provisions of this section shall apply to all cities, towns and villages in this state whether or- ganized by special charter or under the general laws of the state, any provisions in any special charter of any city, town or village in the state to the contrary notwithstanding: Provided, that contracts entered into under the provisions of this act shall have no legal form (force) until the same shall be submitted to a vote of the qualified voters at a general or special election of such city, town or village, and shall be ratified by a two-thirds majority of the legal voters polled at said election." NEBRASKA. C abbey's Annotated Statutes of Nebraska, ch. 37, art. I. Omaha Charter. Sec. 7599. Street Lighting. 'The mayor and council shall have full power to regulate and provide for the lighting of streets, laying down gas, water and other pipes, and erec- tion of lamp posts, electric posts or other appa- ratus; and to regulate the sale and use of gas and electric lights, and fix and determine the price of gas, the charge of the electric lights and power and the rents of gas meters within the city, and regulate the inspection thereof; and regulate telephone ser- vice and the use of telephones within the city, and to fix and determine the charges for telephones 96 RATE REGULATION. and telephone-service connections, and to prohibit or regulate the erection of telegraph, telephone or electric wire poles, or other poles, for whatsoever purposes desired or used in the public grounds, streets or alleys, and the placing of wires thereon, and require the removal from the public grounds, streets or allej^s of any or all such poles, and re- quire the removal and placing under ground of any or all telegraph, telephone or electric wires." Chapter 37, Article III. South Omaha Charter. Sec. 8197. Subways, condemnation. ''To erect, con- struct, purchase, maintain and operate subways, or conduits, water works, gas works and electric light plants, or necessary parts thereof within the corporate limits of the city; and they shall have power to fix, charge and collect a rental or com- pensation for the use of subways or conduits, and of water, gas and electric lights furnished to con- sumers, and make all needful rules and regulations concerning the use of such subways, conduits, water, gas or electric lights, and to do all acts necessary for the construction, completion, man- agement and control of the same, including the ap- propriation of private property for the use in the construction and operation of the same, compensa- tion for such appropriation to be made as pro- vided by this act; and the mayor and council of such city shall have power to provide by ordi- nance, or contract, with any competent party for THE STATUTES OF THE VARIOUS STATES. 97 the supptying and furnishing of water, gas, or electric hght, or electric power, to the public or private consumers within such city, and the rates, terms and conditions upon which the same may and shall be supplied and furnished during the period named in the ordinance or contract as provided in this act." Electric light system — how established. Sec. 8794. ''Any city of the second class in this state shall have power, and is hereby authorized, to establish and maintain a system of electric lights for such city, and the city council shall have power to levy a tax, not exceeding five (5) mills on the dollar in any one year for the purpose of establishing, extending and maintaining such sys- tem of electric lights." Sec. 8797. Light Commissioners — Bond, Salary and Removal. " Where any city shall have estab- lished an electric light system it shall provide by ordinance for the management and control of the same, and the rates to be charged to persons using such lights. In cities having and maintaining a system of water works, and having a water com- missioner, such water commissioner shall be ex officio light commissioner. In cities having no water commissioner, the mayor shall, with the ad- vice and consent of the city council, appoint some resident freeholder of such city as light commis- 7 98 RATE REGULATION. sioner, who shall hold his office until the end of the municipal year and until his successor shall be appointed and shall have qualified. Before enter- ing upon the duties of his office the hght commis- sioner so appointed shall give bond to the city in such sum as may be required by the city council, conditional for the faithful performance of his duties, and signed by two or more good and suffi- cient sureties, resident freeholders of such city; and shall also take oath to faithfully and impartially discharge the duties of his office. Such commis- sioner shall have general management and control of the system of electric light in such city under the direction of the city council, shall collect all monies receivable by the city for such lights, and shall faithfully account for all monies that may come into his hands and perform such other duties as may be required of him by ordinance. He shall make a detailed report to the city council, at least every six months, showmg the condition of such system, and of all such improvements, repairs, extensions and additional machinery which he may think proper to make or obtain, together with an estimate of the cost thereof. He shall also at the same time make a detailed report of all ex- penses incurred in the running and management of such system of lights since his last previous report. He shall receive a salary to be fixed by the city council by ordinance, and may be re- THE STATUTES OF THE VARIOUS STATES. 99 moved at any time by a two-thirds' vote of the council." Uses of lights — Rates, how fixed and collected. Sec. 8798. ''The city council shall fix by ordi- nance the rates to be charged for the use of its lights, and shall provide the manner of collecting the same. The commissioner shall make duplicate receipts for all monies collected, one of which shall be given to the person from whom the money is collected and the other shall be retained in his office and delivered to his successor in office. All money collected for the use of electric lights shall be paid over to the city treasurer, and kept by him in a separate fund, and be used for the operation, maintenance, repair and extension of such system under the direction of the city council." NEVADA. Laws of Nevada, 1901. Chapter XXV. ''An act granting to persons and corporations the right to supply electric power, heat and light to the inhabitants and counties^ cities and counties, cities and towns of the state of Nevada, and granting to such persons and cor- porations the right to erect and maintain poles and wires on the county roads and highways, and in the streets of the said cities, cities and counties, cities and towns of this state, and to conduct electricity over said wires, and providing for the 100 KATE REGULATION. punishment of obstruction, hindrance or damage thereto." Section 1. ''The right is hereby granted to any person, or corporation incorporated under the laws of this state, or under the laws of any other state but doing business in this state, after compliance with the laws of this state concerning foreign cor- porations, to supply electric power, heat and light to the inhabitants of the counties, cities and counties, cities and towns of this state; and that to carry out said purpose the right is hereby granted to such persons or corporations to erect and main- tain poles and wires on the county roads and high- ways, and in the streets of said cities, cities and counties, cities and towns of this state, together with all the necessary appurtenances, and conduct electricity over said wires and appurtenances, and any part of said towns, cities, cities and counties, and counties for the purpose of furnishing electric power, heat and light; provided, that said poles shall not be so placed upon said roads, highways or streets as to impede travel thereon, and shall be not less than forty-five feet above the ground in cities and towns, but shall be placed as nearty to the sides of said roads, highways and streets as possible, consistent with the uses of the poles. §2. ''Such persons or corporations shall keep their plants, poles, wires and necessary appurte- nances in good repair so as not to interfere with THE STATUTES OF THE VARIOUS STATES. 101 the passage of persons or vehicles, or the safety of persons or property. § 3. '^The appurtenances of said plants shall be of the most approved construction for the comfort and convenience of the inhabitants of said coun- ties, cities and counties, cities and towns of this state. § 4. '^Any person wilfully obstructing, hinder- ing or damaging said plant, poles, wires or ap- purtenances shall be guilty of a misdemeanor, and shall be punished according to the laws of the state of Nevada in such case made and provided. § 5. ''The franchise and privilege hereby granted shall continue for a period of twentj^-five years from and after the date of filing a notice of inten- tion on behalf of such persons or corporations to supply such electric power, heat and light to said inhabitants, in the office of the county recorder of the county in which such person or corporation intends to suppl}^ said electric power, heat and light, accompanied by an agreement on behalf of such person or corporation that he, or it, will aur nually pay to such count}^, cit}^ and county, city or town two per cent of the net profits made in furnishing said electric power, heat or light; pro- vided, that such person or corporation shall com- mence the construction of their plant, or pole lines, or necessary- apphances within three months after filing said notice of intention and agreernent, and 102 RATE REGULATION. continue the same to completion with reasonable diligence; and provided, further, that an affidavit sworn to by such person, or by the president or secretary of such corporation, containing a full statement as to the receipts and expenditures of said person or corporation in the furnishing of said electric power, heat and light, for the twelve months next preceding, be annually filed in the office of said county recorder." NEW HAMPSHIRE. Public Statutes and Session Laws of New Hamp- shire in force January 1, 1901. Chapter 81. Tele- graph, Telephone and Electric Light Companies. Sec. 13. ''All telegraph, telephone and electric fight companies serving parties for hire shall be deemed to be public, and shaU reasonably accom- modate persons wishing to enjoy their facilities without discrimination and at reasonable rates." (Laws of 1881, 54:12.) NEW JERSEY. There does not appear to be any law bearing directly upon the question of regulation of the rates of gas and electric companies in this state; such regulations seem to be left to agreements be- tween the parties. However, for purposes of ref- THE STATUTES OF THE VARIOUS STATES. 103 erence, the statutes relating to gas companies and electric companies are set forth below. General Statutes of New Jersey, vol. 2, p. 1610. Gas companies, Act of 1876. Sec. 17. "That any corporation formed under this act shall have full power to manufacture and sell, and furnish such quantities of illuminating gas as may be required in the city, town or village where the same shall be located for lighting the streets and public and private buildings, and such corporation shall have power to lay conductors for conducting gas through the streets, lanes, alleys and squares in such city or town, having first obtained the written consent of the municipal authorities of said city, village or town, and under such regu- lations as they may prescribe." Page 2143. An act authorizing the hghting of public streets and places in the cities, towns, town- ships, boroughs and villages of the state. (Laws of 1886.) (107) Section 1. ''That it shall hereafter be law- ful for the common council, township committee, or other municipal authorities of any cit}^ town, township, borough or village in the said state from time to time, and by ordinance or resolution, to order and cause any public street, or streets, place or places, or any part or parts thereof, in any such city, town, township, borough or village, respec- tively, to be lighted with gas or otherwise, and for 104 RATE REGULATION. that purpose to erect and maintain, or cause to be erected and maintained, all necessary and proper posts, lanterns and fixtures and to make and enter into any contract, or contracts, with any other party or parties in relation to the same; and to cause the annual expense thereof, after being as- certained or determined by a resolution of said council, committee or other municipal authorities to be certified unto the assessor or assessors of said city, town, township, borough or village; and that such annual expense shall thereupon be levied, as- sessed and collected from all the real and personal property in the said city, town, township, borough or village, respectively, in the same manner and at the same time, and under the same penalties (but without any extra compensation therefor) as the taxes for the working or repairing of roads or streets in such city, town, township, borough or village, respectively, are or may be; provided, however, that in making such assessment of the tax hereby authorized the said assessor or assessors shall not be restricted or controlled in any way whatsoever by any special or other act of the legislature here- tofore passed whereb}^ the amount of any tax to be raised in any city, town, township, borough or village is limited to a certain percentage upon the valuation of the assessed property therein. (108) Sec. 2. ''That any act, or acts, or any part or parts thereof, inconsistent with the pro- THE STATUTES OF THE VARIOUS STATES. 105 visions of this act is and are hereby repealed in so far as it, or they, is or are inconsistent herewith, and that this act is hereby declared to be a pubhc act and shall take effect immediately." Page 2173. An act to empower the town and township committees in counties of the third and second class to enter into a contract for public lighting for a term of years. (Laws of 1894.) (239) Sec. 1. '^That it shall be lawful for, and the town or township committee of any incorpo- rated town or township in any county of the third and second class are hereby empowered and au- thorized to make and enter into a contract or agreement with any gas, electric light or other com- pany for one year, or for a term of years, for ob- taining and furnishing lights, and lighting either with gas, electricity or other illuminating l^ody, for lighting the public streets or public buildings of any such town or township; and any such con- tract or agreement when so made shall be the valid and lawful contract of any such township, as well as of any such gas, electric light or other company according to the tenor and effect thereof; and the sum or sums of money in such contract agreed to be paid in each year by any such town or town- ship, or by the town or township committee thereof, shall be annually appropriated, levied, assessed and collected as a tax upon the real and personal es- tates within such town or township, and subject 106 RATE REGULATION. to taxation for other municipal purposes, in the same manner that other municipal taxes are as- sessed and collected ; and the said real and personal estate are hereby made liable to and for the assess- ment and collection of such tax; provided, how- ever, and it is hereby expressly enacted, that no such agreement or contract shall be made for a longer period than three years in any one term." (240) Sec. 2. ''That it shall be lawful for, and the town or township committee in such town or township are hereby authorized and empowered to use any and all such sum or sums of money, for carrying into effect the purposes of this act here- tofore or hereafter appropriated by the legal voters of such town or township at any annual town meet- ing for said public lighting." (241) Sec. 3. ''That all acts and parts of acts, public, special or local, inconsistent herewith be and the same are hereby repealed, and this act shall be a public act and take effect immediately." Page 2174. An act authorizing the lighting of public streets and places in the cities, towns, town- ships, boroughs and villages of the state, and to erect and maintain the proper appliances. (Laws of 1894.) (242) Sec. 1. "That it shall hereafter be lawful for the common council, township committee or other municipal authorities of any city, town, township, borough or village in this state, author- THE STATUTES OF THE VAKIOUS STATES. 107 ized to act in such matters, from time to time and by ordinance or resolution to order and cause any public street, or streets, place or places, or any part or parts thereof, of any such city, town, township, borough or village, respectively, to be lighted with gas, electric light or otherwise, and for that pur- pose to erect and maintain, or cause to be erected and maintained, all necessary and proper posts, poles, lanterns and fixtures on any or all of the pub- lic roads, streets, alleys or lanes, and to make and enter into any contract or contracts with any other party or parties for any term or terms, not exceed- ing five years; and to cause the annual expense thereof, after being ascertained or determined by resolution of said council committee or other mu- nicipal authorities, to be certified to the assessor or assessors of said city, town, township, borough or village; and that such annual expense shall thereupon be levied, assessed and collected from all the real and personal property in said city, town, township, borough or village, respectively, in the same manner, at the same time and under the same penalties (but without any extra compensation therefor) as the tax for the working or repairing of roads or streets in such cit}^ town, township, borough or village, respective^, are or may be; provided, however, that in making such assessment of the tax hereby authorized the said assessor or assessors shall not be restricted or controlled in 108 RATE HEGULATION. any way by any special act of the legislature here- tofore passed whereby the amount of any tax to be raised in any cit}", town, township, borough or village is limited to a certain percentage upon the valuation of the assessed propert}'^ therein. (243) Sec. 2. ^'That any act, or acts, or part or parts thereof, inconsistent with the provisions of this act is and are hereby repealed in so far as it, or they, is or are inconsistent herewith, and that this act is hereby declared to be a public act and shall take effect immediately." NEW YORK. Laws of 1905, ch. 737. ^' AN ACT to establish a commission of gas and elec- tricity with power to regulate the price of gas and electric light and certain other electric ser- vices, and to provide for the control and super- vision of gas, electric light and other electric corporations and making an appropriation there- for." Became a law, June 3, 1905, with the approval of the Governor. Passed, three-fifths being present. "The People of the State of New York, represented in Senate and Assembly, do enact as follows: ''Section 1. Commission of gas and electricity es- tablished. — The commission of gas and electricity is hereby established and shall possess the powers THE STATUTES OF THE VARIOUS STATES. 109 and perform the duties hereinafter specified. ''§2. De-finitions; application of act. — The word 'commission' when used in this act means the commission of gas and electricity. The w^ord 'cor- poration' includes a compan}^, association and joint-stock association. The word ' municipahty ' includes a city, village, town or lighting district organized as provided by a general or special act. The word 'person' includes an individual, firm or copartnership. This act shall not apply to rail- road, telegraph or telephone corporations. "§3. Appointment; terms of office; vacancies. — The commission of gas and electricity shall consist of three commissioners to be appointed by the governor, by and with the advice and consent of the senate, one of whom shall l^e designated l^y the governor as chairman. Of the commissioners first appointed hereunder, one shall be appointed for a term of two years, one for a term of four years, and one for a term of six years, from the first day of June, nineteen hundred and five. Upon the ex- piration of such terms, the term of office of com- missioners thereafter appointed shall be six years beginning on the first day of June in the year in which they are appointed. I^ach commissioner ap- pointed hereunder shall hold office until his suc- cessor shall have been appointed, and shall have qualified. If a vacancy shall occur in any such office, otherwise than by expiration of term, the 110 RATE REGULATION. governor shall appoint a commissioner to fill such vacancy for the unexpired term. ''§4. Oath of office; eligibility of commissioners and officers of commission. — Each commissioner and each person appointed to office by the commission shall, before entering upon the duties of his office, take and subscribe the constitutional oath of office. No person shall be eligible to appointment or shall hold the office of commissioner, or be appointed by the commission to, or hold any office or position under the commission, who holds any official rela- tion to any gas or electric light or power corpora- tion, or who owns stock or bonds therein. *^§ 5. Officers and meetings of commission; official seal; stationerrj. — The principal office of the com- mission shall be in the city of Albany, in rooms designated by the trustees of public buildings, and it may have a branch office in the city of New York, and one in the city of Buffalo. The commission shall meet at least once a month during the year at its office in Albany. The commission shall have an official seal, to be prepared by the secretary of state as provided by law, and its offices shall be supplied with necessary postage, stationery, office furniture and appliances, to be paid for as other expenses authorized by this act, and it shall have prepared for it by the state the necessary books, maps and statistics, incidentally necessary for the discharge of its duties. THE STATUTES OF THE VARIOUS STATES. IJi '' § 6. Quorum of commission; powers of single com- missioner. — Two of the commissioners shall con- stitute a quorum for the transaction of any busi- ness or the performance of any duty of the com- mission and may hold meetings thereof at any time or place within the state. All examinations or investigations made by the commission may be held and taken by and before any one of the com- missioners, and the proceedings and decisions of such single commissioner, shall be deemed to be the proceedings and decisions of the commission, when approved and confirmed by it. " § 7. Officers, clerks, inspectors and employees. — The commission may appoint such officers, clerks, inspectors, experts and employees as may be re- quired to carry out the provisions of this act, sub- ject to the provisions of the civil service law, and may prescribe their duties. "§ 8. Salaries and expenses. — The annual salary of each commissioner shall be eight thousand dol- lars. The officers, clerks, inspectors, experts and other employees of the commission shall receive the compensation fixed by the commission. In the discharge of their official duties the commis- sioners shall have reimbursed to them the neces- sary traveling expenses and disbursements of them- selves, their officers, clerks, inspectors, experts and other employees, not exceeding in the aggregate the sum of five hundred dollars per month. All 112 RATE REGULATION. salaries and disbursements shall be audited and allowed by the comptroller and paid monthly by the state treasurer upon the warrant of the comp- troller. *'§9. General powers of commission. — Such com- mission shall: "1. Have the general supervision of all persons and corporations having authority under any gen- eral or special law to lay down or erect and main- tain wires, pipes, and other fixtures in, over or under the streets, highways and public places of any municipality in this state, for the purpose of furnishing gas or of furnishing or transmitting electricity for light, heat or power. ''2. Investigate and ascertain, from time to time, the quality of gas supplied by persons, corpora- tions or municipalities; examine the methods em- ployed by such persons, corporations or munici- palities in supplying gas and electricity for light, heat and power or in transmitting the same, and order such improvements as will best promote public interests, preserve the public health and protect those using such gas or electricity, and those employed in the manufacture and distribu- tion thereof, or in the maintenance or operation of the works, wires, poles, lines and systems con- nected therewith. '^3. Fix the standard of illuminating power and purity of gas manufactured and sold by persons, THE STATUTES OF THE VARIOUS STATES. 113 corporations and municipalities for lighting pur- poses, not less than that prescribed by law, and require the gas so manufactured and sold to equal the standard estabUshed by law or by it, and es- tablish a standard of pressure at which gas shall be delivered, where such standard is not otherwise prescribed by law. "4. Have power, in its discretion, to prescribe methods of keeping accounts and books, to be ob- served by the persons, corporations and munici- palities engaged in the manufacture, sale and dis- tribution of gas and electricity for light, heat or power. ''5. Examine all persons, corporations and mu- nicipalities under its supervision, keep informed as to the methods employed by them in the trans- action of their business, and see that their property is maintained and operated for the security and accommodation of the public and in compliance with the provisions of law and of their franchises and charters. ''6. Require each corporation under its super- vision to submit to it an annual report, verified by the oath of the president, treasurer or general manager thereof, showing in detail (1) the amount of its authorized capital stock, the amount issued and outstanding; (2) the amount of its authorized bonded indebtedness and the amount of its bonds issued and outstanding; (3) its receipts and ex- 8 114 RATE REGULATION. penditures during the preceding year; (4) the amount paid as dividends upon its stock and as interest upon its bonds; (5) the amount paid as salaries to its officers and as wages to its emplo3^ees ; (6) the location of its plant and system, with a full description of its property and franchises; and (7) such other facts pertaining to the operation and maintenance of the plant and system, and the affairs of such corporation as ma}^ be required by the commission. Such reports shall be in the form, cover the period, and be submitted at the time prescribed by the commission. ''7. Make to the legislature an annual report con- taining the result (1) of examinations or investiga- tions conducted by it, abstracts of reports of cor- porations made to it; (2) recommendations as to modifications of the laws pertaining to the affairs of corporations subject to its supervision; (3) such facts and explanations as will disclose the methods employed in the manufacture, sale and distribu- tion of gas and electricity for light, heat and power; (4) suggestions as to the better protection of public interests and health in the transaction of business by such corporations ; and (5) a record of the meet- ings and an abstract of the proceedings of the commission during the preceding year. ^^8. Have power, either through its members or inspectors or employees dul}^ authorized by it, to enter in or upon the propert}', buildings, plants. THE STATUTES OF THE VARIOUS STATES. 115 factories, power houses and offices of any of such corporations, persons or municipahties while the same are open for the purpose of operation or while the business of such corporation is being done therein. "9. Have power to examine the books and affairs of any such corporations, persons or municipalities, and to compel the production before it of books and papers pertaining to the affairs being investi- gated by it. ''10. Have power to subpana witnesses, take testimony and administer oaths to witnesses in any proceeding or examination instituted before it, or conducted by it under the provisions of this act. "11. Have power to adopt rules governing prac- tice in proceedings brought by or before it not inconsistent with law. " § 10. Inspection of gas and electric meters. — Such commission shall have full power, control and supervision of the inspection of gas and electric meters by any state or municipal officer appointed, for such purpose, and may adopt and enforce rules and regulations, not inconsistent with law, pre- scribing the manner, methods and conditions of testing such meters. It shall see that the state inspector of gas meters, and the inspectors ap- pointed by him, and municipal inspectors of gas and electric meters, faithfully perform the duties 116 RATE REGULATION. imposed upon them b}' law, and by the rules and regulations of the commission, and shall report any failure of such performance or any violation of law or of such rules and regulations to the officer or board appointing such inspectors, and such failure or violation shall be a sufficient cause for their removal. The commission may provide for the inspection of electric meters, and may appoint an inspector for such purpose who shall perform the duties required of him by the commission. ''§ 11. Approval of incorporation and franchises; certificate. — A corporation hereafter incorporated under the laws of this or any other state for manu- facturing and supplying gas for lighting the streets, highways and public places, and for heating and hghting public or private buildings, or for manu- facturing, using, transmitting and supplying elec- tricity for producing hght, heat or power for public or private buildings or for lighting streets, high- ways and public places, shall not exercise any of its powers, or transact any business within this state, until it shall have secured a certificate of au- thority therefor signed and executed by the com- mission under its official seal. Before such certifi- cate shall be issued a certified copy of the charter of such corporation shall be filed in the office of the commission, together with a verified statement of the president and secretary of the corporation, showing that it has received the required consent THE STATUTES OF THE VARIOUS STATES. 117 of the proper municipal authorities. The com- mission may inquire as to the necessity of the service to be furnished by such corporation, and as to the intentions and good faith of the corpora- tion and its officers, and if satisfied that the terri- tory within which such corporation proposes to operate is already supplied by an ample and well constructed system, furnishing the service which such corporation proposes to furnish, at a fair and reasonable rate, such commission may refuse to grant its certificate of authority. No municipality shall build, maintain and operate for other than municipal purposes any works or systems for the manufacture and supplying of gas or electricity for lighting purposes without a certificate of au- thority granted by the commission. If the cer- tificate of authority is refused, no further proceed- ings shall be taken before the commission, but a new application may be made therefor after one year from the date of such refusal. ''§ 12. Aijproval of issue of stock and bonds. — • Stock or bonds shall not be issued by any corpo- ration hereafter incorporated which is subject to the supervision of the commission, until the cer- tificate of authority has been issued as required in the preceding section, and until such commis- sion shall further certify, in writings as to the amount of stock or bonds reasonably required for the purposes of the corporation. Stock and bonds 118 RATE REGULATION. of such corporation shall not be issued in excess of the amount so certified. Any such corporation heretofore or hereafter incorporated shall not in- crease its capital stock or its bonded indebtedness without the consent in writing of such commis- sion, stating the amount of the authorized increase. For the purpose of making its determination as to the amount of stock and bonds to be issued or the amount of the authorized increase of the capital stock and bonded indebtedness of any such corporation, the commission ma}' take and hear testimony, and examine the books and pa- pers of the corporation, and require verified state- ments from the officers thereof, pertaining to the value of the propert}' and franchises owned and operated by such corporation. Such determina- tion shall be made within thirty days after the final submission of the papers or a final hearing on the application. ''§ 13. Approval of transfer of franchise. — A cor- poration subject to the general supervision of the commission shall not transfer or lease its fran- chise, works, system or property or any part of such franchise, works, s^^stem or property to any other person or corporation or contract for the operation of its works, system and property with- out the written consent of the commission. No such corporation shall directly or indirectly ac- quire the stock or bonds of any other corporation THE STATUTES OF THE VARIOUS STATES. 119 incorporated for or engaged in, the same or a similar business, or proposing to operate or operat- ing under a franchise from the same or any other municipality, unless authorized so to do by the commission. '' § 14. Appeals to appellate division. — If the com- mission shall refuse any certificate, authority or consent required under the provisions of either of the three preceding sections, the commission shall, if requested by the applicant for such certificate, authority or consent, furnish a certified copy of all papers before it pertaining to the application, and of its findings thereon, and such applicant may, within sixty days after notice of such refusal, present such papers and findings for review to the appellate division of the supreme court of the third department, and such appellate division may order the commission to issue the certificate or grant the authority or consent applied for. Upon such re- view the commission shall be represented by the attorney general. ''§ 15. Complaints as to quality and price of gas and electricity. — Upon the complaint in writing of the mayor of a city, the trustees of a village or the town board of a town in which a person or corpora- tion is authorized to manufacture, sell or supply gas or electricity for heat, light or power, or upon the complaint in writing of not less than one hun- dred customers, or purchasers of such gas or elec- 120 RATE REGULATION. tricity, either as to illuminating power, purity, pressure or price of such gas or electricity sold and delivered in such municipality, the commission shall investigate as to cause for such complaint, and may, by its agents and inspectors, inspect the works, system, plant and methods used by such person or corporation in manufacturing, trans- mitting and supplying such gas or electricity and examine or cause to be examined the books and papers of such person or corporation pertaining to the manufacture, sale, transmitting and supply- ing of such gas or electricity. ''§ 16. Foi^ms of complaint; signatures. — The form and contents of complaints made as provided in the preceding section shall be prescribed by the commission. Such complaints shall be signed by the officers or by the customers, purchasers or sub- scribers making them, who must add to their signa- tures their places of residence, by street and num- ber, if any. "^ 17. Notice and hearing; fixing price of gas or electricity; orders requiring improvement. — Before proceeding under a complaint presented as pro- vided in section fifteen, the commission shall cause notice of the complaint, and the purpose thereof, to be served upon the person or corporation af- fected thereby. A pubhc hearing shall be had upon such complaint at which the complainants and the person or corporation complained of shall THE STATUTES OF THE VARIOUS STATES. 121 have an opportunity to be heard, and may be represented by counsel. After such hearing and upon such investigation as may have ]3een made by the commission or its officers, agents or in- spectors, the commission, within the Hmits pre- scribed by law, may fix the maximum price of gas or electricity which shall be charged by such cor- poration or person in such municipality, or may order such improvement in the manufacture or supply of such gas or in the manufacture, trans- mission or supply of such electricity, or in the methods employed by such person or corporation, as will in its judgment improve the service. The price so fixed by the commission shall be the maxi- mum price to be charged by such person or corpo- ration for gas or electricity in such municipahty for a term of three years and until, after the ex- piration of such term such commission shall upon complaint as provided in this section again fix the price of such gas or electricity. "§ 18. All orders made by the commission upon its own motion or without complaint, as above provided, shall be made after reasonable notice to the person or corporation affected thereby, and after reasonable opportunity to such person or corporation to present his, their or its defence or objections to the demands of the commission. ''§ 19. The complainant, or any person or corpo- ration aggrieved by any order made by the com- 122 HATE REGULATION. mission whether upon complaint or otherwise, may, within thirty days after notice of the making of such order, appeal to the appellate division of the supreme court of any department within which the property of the person or corporation affected by said order is situated, except as otherwise here- inbefore provided, in whole or in part. Such court may affirm, reverse in whole or in part or modify the order appealed from, or may make such order in the premises in its discretion as it may deem just and proper. On all such appeals the commis- sion shall be represented by the attorney -general. ''§ 20. An order made by the commission, as in this act provided, or in case of an appeal from an order, the order as affirmed or modified or the order made on such appeal may be enforced by writ of mandamus. The commission or any person, cor- poration or municipality interested in the enforce- ment of such order may apply to the supreme court at a special term thereof for a writ of mandamus to compel compliance with such order, upon proof that the said order has been duh^ made, as in this act provided, and has not been complied with, after notice of the making thereof, to the person or corporation affected thereby, the supreme court may issue a writ of mandamus to enforce the pro- visions of said order. "^ 21. Defence in cases of excessive charges. — If it be alleged and established in an action brought in THE STATUTES OF THE VARIOUS STATES. 123 any court for the collection of any charge for gas or electricity, that a price has been demanded in excess of that fixed by the commission or by stat- ute in the municipality wherein the action arose, no recovery shall be had therein, but the fact that such excessive charges have been made shall be a com- plete defence to such action. '' § 22. There shall be appropriated for the use of the commission and for the payment of salaries and disbursements under this act, from money not otherwise appropriated the sum of sixty thousand dollars. ''§23. This act shall take effect immediately." OHIO. Bates' Annotated Ohio Statutes, vol. 1, Fourth Edition, 1904. Chapter 7, Gas & Electric Co.'s Plants. Sec. 2478, R. S. Regulating the Price of Electric Light, Artificial and Natural Gas. 1536-1567. "The council of any city or village in which electric light companies, natural or artificial gas companies, or gas light or coke companies may be established, or into which their wires, mains or pipes may l^e conducted, are hereby empowered to regulate from time to time the price which said electric light, natural or artificial gas, or gas and coke companies may charge for electric fight, or for gas for hght or fuel purposes furnished ]:>y such companies to the citizens, public grounds and 124 RATE REGULATION. places, streets, lanes, alleys, avenues, wharfs and landing places; and such electric light, and natural or artificial gas, or gas light and coke companies shall in no event charge more for any electric light, or natural or artificial gas furnished to such cor- poration or individuals than the price specified by ordinance of such council, and such council shall also have power to regulate and fix the price which such companies shall charge for rent of their meters." 1536-1568, R. S. sec. 2479. Maximum not to he reduced during the term agreed upon. ^'In case the council fixes the maximum price at which it re- quires any company to furnish gas to the citizens or public buildings, or for the purpose of lighting the streets, alleys, avenues, wharfs, landing places and public grounds for a period not exceeding ten years, and the compan}^ assents thereto by written acceptance filed in the office of the clerk of the corporation, it shall not be lawful for the council to require such company to furnish gas at a less price during the period of time agreed on, not exceeding ten years as aforesaid." R. S. sec. 2486. Council may erect, or purchase gas or electric works. 1536-1576. ''The council of any city or village shall have power whenever it may be deemed ex- pedient, and for the public good, to erect gas works or electric works at the expense of the corporation, THE STATUTES OF THE VARIOUS STATES. 125 or to purchase any gas or electric works already erected therein; provided, that in villages where gas works or electric works have already been erected by any person, company of persons, or corporation, to whom a franchise to erect and oper- ate gas works or electric works has been granted, and such franchise has not yet expired, the council shall, with the consent of the owner or owners, pur- chase such gas works or electric works already erected therein; and in the event the council and owner or owners of any such gas or electric works shall be unable to agree upon the compensation to be paid for such gas works or electric works, the council may file in the Probate Court of the county where such gas or electric works are located a petition to appropriate such gas works or elec- tric works, and thereupon the same proceedings of appropriation shall be had as is provided for the appropriation of private property by munici- pal corporations; provided, that any municipal con- tract existing between any village and such per- son, company of persons or corporation for the public or street lighting shall be considered as an element of value in fixing the compensation to be paid for such gas works or electric works." R. S. sec. 2491. Contract to supply municipality with electric light or gas. 1536-1581. "A municipal corporation may con- tract with such company for supplying to them 126 RATE KEGULATION. electric light, natural or artificial gas, for the pur- pose of lighting (or heating) the streets, squares and other public places and buildings in the cor- poration limits; but this section shall be subject to the restriction in the last clause of sec. 3551." Laws of Ohio, 1904, House Bill 129. Sec. 2479. "In case the council fixes the price at which it shall require any company to furnish elec- tricity, or either natural or artificial gas, to the citizens or public ]3uildings, or for the purpose of lighting the streets, alleys, avenues, wharfs, landing places, public grounds, or other places, or for other purposes, for a period not exceeding ten years, and the compan}^ or person so to furnish such elec- tricity or gas shall assent thereto b}^ written ac- ceptance filed in the office of the clerk of the corpo- ration, it shall not be lawful for the council to require such company to furnish electricity, or either natural or artificial gas, as the case may be, at a less price during the period of time agreed on, not exceeding ten years as aforesaid; and every ordinance or resolution heretofore passed by any municipal corporation, fixing a maximum price for furnishing electricity, or either natural or artificial gas as aforesaid, which has been assented to by any company or person by written acceptance filed in the office of the clerk of the corporation, shall be as valid, and said price shall be as binding as if this act had been in force when any such price was in THE STATUTES OF THE VARIOUS STATES. 127 terms so fixed and accepted. Sec. 2. That said section 2479 be, and the same is hereby repealed; and that this act shall take effect and be in force from and after its passage." RHODE ISLAND. The only provision made by the statutes of this state applicable to gas and electric light companies is found in Public Laws, 1891, chapter 975. This act, after providing for the granting of rights and franchises in streets and highways, and further, that such grant conferred exclusive rights for twenty-five j^ears, and further, that a corporation already established was to have a preference, and further providing for corporations to make a re- turn to the treasurer of the town or state, showing the gross earnings, for the purpose of fixing a tax upon such corporation, and after making other provisions, provides that the present rates for ser- vices of such corporations shall not be raised to an)^ greater price than the price actually charged by it at the time of the granting of such rights or franchises. The section as to rates is section 4 of Public Laws of 1891, chapter 975, and is as fol- lows: Sec. 4. ''No corporation which shall acquire ex- clusive rights or franchises under the provisions of this chapter shall at any time during the continu- ance thereof charge for its product, wares or ser- 128 RATE REGULATION. vice to any town or state, or the inhabitants thereof, any greater price actually charged by it at the time of the granting of such rights or franchises, both prices being reckoned in United States gold coin of the standard weight and fineness, or in the equivalent thereof in actual value in other lawful money of the United States." SOUTH CAROLINA. Provision is made for the construction of gas and electric plants, upon obtaining the consent of the local authorities, by Article VIII, Sections 4 and 5 of the State Constitution of 1895. Code of Laws of South Carolina, 1902, vol. 2, p. 87. Code of Laws of South Carolina, 1902, vol. 1, p. 770. Section 200 of the Civil Code provides for the con- struction and operation of electric and gas plants by cities. Section 2010 provides for the fixing of rates by the board of commissioners of public works for the supply of gas and electricity, viz: ''Said board of commissioners of public works shall be vested with authority to build, or contract for building said water works and said electric light plant, and to operate the same, and shall have full control and management of same. They may supply and fur- nish water to the citizens of said cities and towns, and also electric, gas or other light; and may re- quire and exact payment of such rates, tolls and THE STATUTES OP^ THE VARIOUS STATES. 129 charges as they may estabHsh for the use of water and Ughts. They may sell and dispose of said bonds, and apply the proceeds, or so much thereof as may be necessary, towards the purchase of or payment for said plants : Provided, that said board shall make a full statement to the cit}' or town council at the end of each month for receipts and disbursements of all kinds during the preceding month. They shall have no power to incur any indebtedness without the concurrence of such council." Section 2012 provides for cities and towns to purchase lands, etc., for the purpose of electric and gas plants. Section 2021 provides for special elections as to the issue of municipal bonds for gas and electric plants, etc. Laws of South Carolina, 1902, chapter 560, pro- vides for the granting of exclusive franchises for furnishing lights, etc. ^'An act to empower cities and towns of this state to give exclusive franchises to persons or corporations furnishing water or light thereto, re- spectively, under certain conditions. Sec. 1. ''Be it enacted by the general asseml^ly of the state of South Carolina that all cities and towns of the state of South Carolina are hereby empowered to grant to persons or corporations the exclusive franchise of furnishing light or water to 9 130 KATE REGULATION. said cities and towns, and the inhabitants thereof: Provided, that no such franchise shall be valid un- less it shall first receive the vote of two-thirds of the board of aldermen, or conunon council, of the city or town granting the same, and be subsequently confirmed by a vote of a majority of the qualified electors of said city or town votmg at an election to be called specially for the purpose : And provided further that the ordinance or resolution granting such franchise shall fix a maximum rate for fur- nishing water or light, both for public and private consumption, beyond which the persons or corpo- ration obtaining such exclusive franchise shall have no power to charge or receive any further price for light or water thus furnished. And provided that no such franchise shall exceed a period of thirty years, or affect any existing contractual rights." SOUTH DAKOTA. There do not appear to be any laws in this state regulating the rates which a gas or electric light company may charge for supplying gas or electricity. The onl}^ statutory provision made for electric light companies appears to be contained in the Laws of South Dakota, 1903, chapter 107: Electric Light, Street Railwa}^ and Power Companies. This is an act authorizing the incorporation of such companies. THE STATUTES OF THE SEVERAL STATES. 131 Sec. 7, subdivision 2, of said act provides, viz: ''To erect and maintain such buildings, power- houses, plants, poles, wires, trolleys and appliances as may be necessary for the transmission of electric power, and use the same to operate its street rail- way, and to contract with any person or corpora- tion for the furnishing to such person or corpora- tion of electric lights or power for the operation of farm or other machinery; to contract with any city, town, village, or county for the lighting of its streets, highways and public buildings, and to contract with any municipal corporation for the furnishing of its inhabitants with electric light and power."" It would seem that in this state the rates are adjusted by contract between the parties. TENNESSEE. Sections 2205 and 2211 of Shannon's Annotated Code of Tennessee, 1896, provides for gas com- panies. Section 2209 (1792). May make and sell gas; maximum price. Sec. 2209. ''The said company shall have the privilege of erecting, establishing and constructing gas works, and manufacturing and vending gas in said town, city or village by means of public works, the said company being authorized to charge a reasonable price for said gas, not higher than the 132 RATE REGULATION. price allowed by existing charters to gas companies heretofore chartered in this state: Provided, that said company shall never charge more than one cent for every cubic foot of gas used as may be indicated by the gas meter, or computed by the ordinary rules in such cases; nor shall they ever charge the authorities of said town, city or village more per cubic foot than they are getting at the same time from the people." Laws of 1901, ch. 166. Section 1 provides for the generating and sale of electricity for lighting and power purposes. '^ Electric street railway companies in the state, whether created under general act, or special act, are hereby authorized and empowered to furnish and sell to persons, corporations and cities elec- tricity for lighting and power purposes in cities within the state having a population of not more than 15,000, according to the Federal Census of 1900, or any subsequent Federal Census." Laws of 1903, ch. 406. Provides for the genera- tion and sale of electricity by railroads operating with electricity inter-suburban and street rail- roads. Sec. 1. ''To manufacture, generate and distrib- ute electric light, electric heat and electric power for the purpose of supplying themselves and others; to construct, equip and own factories, plants, ma- chinery and all appliances for the manufacture, THE .STATUTES OF THE SEVERAL STATES. 183 generation and distribution of electric light, power and heat; to acquire by purchase, lease or oth^r lawful contract electric plants, factories, machin- ery, equipments and appliances, and rights, ease- ments, Hcenses and franchises necessary or con- venient to manufacture, generate, distribute and sell electric light, power and heat; to supply and sell to others electric light, power and heat; to ac- quire by purchase, lease or other lawful contract, water power, riparian rights and water rights, to- gether with all such licenses and franchises, ease- ments and privileges attached to, necessary or con- venient to operate and use the same; and to have and possess all such other powers as shall be nec- essary to execute and perform the powers herein- before granted." There do not appear to be any decisions ap- plicable to the question as to what rates gas or electric light companies may charge for the supply of gas and electricity. (The foregoing abstract contains all the law, in- cluding the Laws of 1905, and decisions including 112 Tenn. [1904], besides digests, etc.) TEXAS. Sayles^ Texas Civil Statutes, Volume 1, Title 18, Chapter 4. Powers and duties of city council. Art. 421. May provide light and gas for the city. To provide for lighting the streets, and^ erecting 134 RATE REGULATION. lamp posts and lamps therein, and regulating the lighting thereof, and from time to time to create, alter or extend lamp districts; to exclusively regu- late, direct and control the laying and repairing of the gas pipes and gas fixtures in the streets, alleys, sidewalks, and elsewhere. Title 21, Chapter 2. Creation of corporations. Art. 642, Sec. 13. The manufacture and sup- ply of gas, and the supply of light, heat and electric motor power, or either of them, to the public by any means. Title 21, Chapter 9. Gas and ivater corporations. Privileges of such corporations. Art. 705. '^An}^ gas or water corporation shall have full power to manufacture and sell, and to furnish such quan- tities of water or gas as may be required by the city, town or village, where located for public or private buildings, or for other purposes; and such corporation shall have power to lay its mains and conductors for conducting gas or water through the streets, alleys, lanes and squares in such city, town or village, with the consent of the municipal authorities thereof, and under such regulations as they ma}^ prescribe. Art. 706. May contract with cities, etc. ^^The municipal authorities of any city, town or village in which any gas light or water corporation shall exist are hereby authorized to contract with any such corporation for the lighting or supplying with THE STATUTES OF THE VARIOUS STATES. 135 water the streets, alleys, lots, squares and public places in any such city, town or village." UTAH. Laws of Utah, 1905, Chapter 42. Powers of city councils. (This is an amendment of section 206 of Re- vised Statutes of Utah, 1898.) Sec. 1. ''That section 206 of the Revised Stat- utes of Utah, 1898, relative to the powers of city councils, as amended by chapter 124 of the Laws of Utah, 1901, and further amended by chapter 138, Laws of Utah, 1903, be and the same is hereby amended to read as follows:" Use of streets and parks. ''10. To regulate the use of streets, alleys, ave- nues, sidewalks, cross-walks, parks, and public grounds. "12. Lighting, etc. To provide for the Hghting, sprinkling and cleansing of the same; provided, that the city council shall have the power to create sprinkling districts, and levy a special tax therefor on the property to be benefited thereby." Gas and water rates, etc. "13. To regulate the opening and uses thereof for the laying of gas or water mains, and pipes, and the building and repairing of sewers, tunnels and drains. 136 KATE REGULATION. "14:. Water, Gas and Light Works. To construct and maintain water works, gas works, electric light works, telephone lines, street railways, or bath houses, or to authorize the construction and main- tenance of the same by others, or to purchase or lease an}' or all of said works from any person or corporation. '^19. Lighting Works and Contracts. To con- tract with and authorize an}^ person, company or association to construct gas works, electric or other lighting works in said city, and give such persons, company or association the privilege of furnishing light for the public buildings, streets, sidewalks and alleys of said cit}' for any length of time, not ex- ceeding three years. "20. Lighting Streets. Regulation of sale of light and power. To provide for the lighting of streets, laying down of gas pipes and erection of lamp posts ; to regulate the sale and use of gas, natural gas, and electric or other lights, and electric power, the charge therefore and the rent of meters within the city, and to regulate the inspection thereof; to prohibit or regulate the erection of telegraph, tele- phone or electric wire poles in the public grounds, streets or alleys, and the placing of wires thereon; and to require the removal from the public grounds, streets or alleys of any or all such poles and the placing under ground of any or all telegraph, tele- phone or electric wires. THE STATUTES OF THE YAKIOUS STATES. 137 VERMONT. There do not appear to be any statutes in this state regulating the price which may be charged for the supply of gas or electricity. Provision seems to be made in the charters of electric light companies, permitting them to con- tract for the supply of electricity, and if the par- ties are unable to agree upon the price, the question is submitted to the court and a reasonable charge is made by the court. There are some statutory provisions in regard to gas and electric light com- panies, which are set forth below: Vermont Statutes, Revision of 1904, Chapter 179, Page 760. Telegraph, Telephone, Electric Light and Express Companies Town and Private Lines. Sec. 4241. ''Towns may construct for their own use telegraph, telephone and electric light lines upon and along the highways and public roads within limits, subject to the provisions of this chapter so far as the same are applicable. Sec. 4242. ''Selectmen ma}^ authorize persons upon such terms as they prescribe, and sul^ject to the provisions of this chapter as far as practicable, to construct for private use such lines along the highways of the town. Sec. 4243. "After the erection of such line, the posts and structures thereof within the highways shall be subject to the regulation and control of the selectmen, who may at any time require altera- 138 RATE REGULATION. tions in the location or erection of such posts and structures, and may order the removal thereof, havmg first given the parties notice and an op- portunity to be heard. The town may attach wires for its own use to such posts and structures under such terms and conditions as they deem just." Electric plants. Sec. 4260. ''A domestic gas company, in addition to the rights conferred upon it by charter, may construct, purchase, maintain and use for lighting and other legitimate purposes an electric plant, or consolidate with an electric light company, and purchase and hold real estate and personal prop- erty necessary and convenient for such purposes. Sec. 4261. "A domestic gas company ma}' in- crease its capital to an amount sufficient to carry out the object of the foregoing section, or borrow money on bond or mortgage by a two-thirds vote of the stockholders thereof at a meeting specially called for that purpose, and due notice of such meet- ing shall be given by publication in any newspaper published in the town or city where the gas com- pany is located, or, if no newspaper is published therein, in a newspaper published in the nearest town or city, thirty days prior to such meeting." VIRGINIA. There do not appear to be any statutes regu- lating the rates of gas or electric light companies in THE STATUTES OF THE SEVERAL STATES. 139 this state. The question of the regulation of rates of gas and electric light companies does not seem to have been the subject of judicial determination in the courts of Virginia. The Virginia Code (annotated, Pollard, vol. 1, 1904), sec. 1294a, defines *'A public service cor- poration." Under the definition contained in this section is included a gas and electric light company, but there is nothing in this section as to the regu- lation of the rates which may be charged. Other sections of the Code, making provisions for public service corporations are section 12946 (17), and sec. 1294i. Sec. 1294i is entitled: '^Heat, Power, Light, Electric, Railway, Cold Storage, Viaduct, Conduit, Bridge, Gas and Water Com- panies." There is nothing, however, in this sec- tion which pertains to the regulation of rates which may be charged for the supply of gas or electricity. It appears that in Virginia all corporations are under the supervision of what is called ''The State Corporation Commission;" but up to the present time the question as to the regulation of rates of gas and electric light companies has not come be- fore that commission. Section 156 of the constitution of Virginia of 1902 defines the powers, duties and methods of procedure of the State Corporation Commission, and under this section of the constitution it seems that this commission has entire supervision of the 140 EATE REGULATION. conduct of corporations in Virginia. This section is 156 of the constitution, and is found in the Vir- ginia Code (annotated, Pollard, vol 1, 1904). WASHINGTON. Ballinger^s Annotated Code of Statutes of Wash- ington, vol. 1 (1897). "Of Cities of the First Class.'' Sec. 739. Powers enumerated, subdivision 15. ''To provide for lighting the streets and all pub- lic places, and for furnishing the inhabitants thereof with gas or other lights, and to erect or otherwise acquire and maintain the same, or authorize the erection and maintenance of such works as may be necessary and convenient therefor, and to regu- late and control the use thereof." Chapter 128 of the Laws of Washington, 1899, authorizing the municipal ownership of certain public utilities, after making provision for the regu- lation of water supply, sewerage, etc., provides for the regulation of the supply of gas and electricity, viz: Sec. 1. ''. . . That any incorporated city or town within the state be, and is hereby, authorized . . . to construct, condemn and purchase, pur- chase, acquire, add to, maintain and operate works, plants and facilities for the purpose of furnishing such city or town and the inhabitants thereof, and any other person, with gas, electricity and other means, power facilities for lighting, heating, fuel THE STATUTES OF THE SEVERAL STATES. 141 and power purposes, public and private, with full authority to regulate and control the use, distribu- tion and prices thereof; and to authorize the con- struction of such plant or plants by others for the same purposes, and to purchase such power from others, when delivered within such city, for its own use and for the purpose of selling to its inhabitants and other persons doing business within such city, and to regulate and control the use and price of electric power so supplied." WISCONSIN. Statutes of 1898. Power of council. Secs. 925-996. "The council shall have power to legislate on all matters with reference to the construction, purchase, operation, management and protection of water works or lighting works for the city, not contravening the provisions of this chapter, the constitution or laws of the state, provided other provisions relating to such works, except as herein otherwise provided, shall l3e adopted by a vote of not less than three- fourths of all its members. Sec. 96, ch. 326, 1889,^ and sec. 3, ch. 294, 1895." Purchase of lighting plant; appraisal; arbitration; judgment. Secs. 925-997a. '^ Whenever any city shall have determined to own or operate its own lighting plant, pursuant to secs. 925-952, 925-996 and 925-997, for the purpose of furnishing light to the inhabitants of such cit}^, other than foi: lighting 142 RATE REGULATION. the streets, public buildings and parks, and at such time there shall be in operation lighting works owned and operated by a person or private cor- poration established under authority of such city, such city shall not erect competing works for pri- vate lighting, provided the owners of such works shall be willing to sell the same to the city as herein- after provided. The price to be paid for such existing lighting works shall ])e its fair value for the purpose for which it is used, including as an element of value the earnings derived therefrom. No portion of such works to be estimated, how- ever, at less than its fair value for any other pur- pose. The owners of such existing works shall, within thirty days after service on them of notice of such determination by the city, file with the city clerk a schedule, describing the whole of such works, the terms and price they will sell for and when such works will be delivered to the city. In case such city and such owners cannot agree as to the terms of the sale, then the city and such owners shall each appoint an appraiser and these two shall name a third, all such appraisers to be citizens of this state residing out of the county in which said city is, unless otherwise agreed. Each shall then, within ten days after his appointment and acceptance, file with the city clerk his oath of office, and they shall immediately proceed to hear the parties interested, examine the property and determine the fair value THE STATUTES OF THE SEVERAL STATES. 143 of such works, filing their findings and conclusions within thirty days from the time of their first meet- ing with such clerk, and describing such property, and the price, terms and time of delivery agreed upon. Either party may within thirty days after such filing petition the Circuit Court of the county in which said city is situated for an adjudication between the parties, setting forth the facts and a certified copy of such findings, and thereafter the said court, or its presiding judge, after giving both parties an opportunity to be heard at a time and place to be fixed by order, shall appoint a commis- sion of three disinterested persons, all non-residents of such county, who shall file their form of facts as set forth and give the parties an opportunity to be heard, examine the property, receive evidence and thereupon adjudicate upon all matters properl}^ submitted to the arbitrators in accordance with the provisions of this section, and what the price, time and other conditions of the sale and delivery shall be. Such commissioners shall act under the su- pervision of the Circuit Court, and shall file their award for revision or confirmation by the court. The court shall have jurisdiction upon the revision or confirmation of the award of the arbitrators, and enter the judgment according to the equity and to enforce the same as in equitable actions. This section shall not apply to cities of the first class." Rates for water and light. 144 RATE REGULATION. Secs. 925-989. ''When cities own the water works or Hghting works, the water rates or charges for hghting shall be collected by the treasurer and be first devoted to the expense of maintainmg and operating the works, paying the principal and in- terest of any indebtedness created in the construc- tion thereof, and the balance, if any, shall be paid into the general fund. The common council of every city which shall construct or own and operate lighting works to supply the city and its inhabi- tants with light may, by ordinance, fix the rates to be charged for light furnished the inhabitants thereof, and provide for the collection of the same either quarterly, semi-annually, in advance or other- wise; provided such rates shall be uniform for like service in all parts of the city. The provisions of the next following section shall appty to the listing and collection of unpaid rates or charges for light so furnished, so far as they are apphcable." Electrical companies. Sec. 17806. ''Any corporation organized under general or special law for the purpose of furnishing heat, light, power or signals by electricity may, with the consent of and in the manner agreed upon with the authorities of any city or village, use any street, alley, lane, park or public grounds for con- structing, maintaining and operating its lines with all necessar}' wires, conduits and appurtenances, for the purpose of supplying light, heat, power or THE STATUTES OF THE SEVERAL STATES. 145 signals to such city or village, or to any building, manufactory, industry, or public or private house therein : Provided no permanent injury shall be done to such street, alley, lane, park or public ground. The provisions of this section shall apply to any cor- poration heretofore organized and now operating an electric light plant by consent of the authorities of any city or village. Such corporation shall also have the powers conferred by sec. 1775, and it shall be the duty of such corporation, and of each and every per- son engaged in the transmission of electrical energy, to provide by suitable insulation, return wires or other means against injury to persons or property by leakage, escape or induction of any electric cur- rent. Neglect of these provisions shall entitle any person thereby endangered or injured to a prelimi- nary injunction preventing further use of such cur- rent until such insulation be made." Laws of 1901, ch. 95. ''An act to enable cities of the fourth class to build and maintain public water and electric light- ing works. Cities may own personal and real prop- erty for purposes of act. Sec. 1 . ''Every city of the fourth class in the state of Wisconsin, whether operating under a general or special charter, is hereby authorized and empowered to purchase, lease or construct steam power or water power for the purpose of maintaining and operating for public use lighting plants and water works, and 10 146 KATE REGULATION. for such purpose may lease, purchase and hold the necessary real and personal property." Authority granted hy act to he authorized by vote of people. Sec. 2. ''The authority and power granted in sec. 1 of this act shall be exercised only when the same shall have been certified by a two-thirds vote of the voters in such city at a special election called for that purpose as special elections are now au- thorized to be called: Provided, however, that no such exercise of power shall require the expendi- ture of a sum greater than three per cent in any one year on the taxable property of said city." Conflicting laws repealed. Sec. 3. "All laws interfering with the provisions of this act are hereby repealed. Sec. 4. ''This act shall take effect and be in force from and after its passage and publication." Laws of 1901, ch. 236. An Act relating to electric plants. The city may furnish service without limit. Sec. 1. Every city which owns and operates an electric light plant may supply light not only to such city and its inhabitants, but also to dwellings or places of business outside the boundaries of such city, by means of a line or lines of poles and wires extended outside of said boundaries. Sec. 2. This act shall take effect and be in force from and after its passage and publication. THE STATUTES OF THE SEVERAL STATES. 147 DISTRICT OF COLUMBIA. Acts affecting the District of Columbia, 1903. 57th Congress, p. 12, Electrical Department. Lighting. ''For illuminating material, light, ex- tinguishing, repairing and cleaning public lamps on avenues, streets, roads and alleys, purchasing and expense of erecting and maintaining new lamp posts, street designations, lanterns and fixtures; moving lamp posts, painting lamp posts and lan- terns; replacing and repairing lamp posts and lan- terns damaged or unfit for service ; for rent of store- room, cartage of material, livery and other necessar}^ items and service $209,000: Provided, that not more than $20 per annum for each street lamp shall be paid for gas, and not more than $24 for oil, light- ing, extinguishing, repairing, painting, cleaning, purchasing and expense of erecting and maintain- ing new lamp posts, street designations, lanterns and fixtures under any expenditure provided for in this act. And during the fiscal years 1903 and 1904 the price prescribed by Congress for lighting each street lamp in the District of Columbia with gas or oil shall be construed to include the cost of the illuminating material used, lighting and ex- tinguishing lamps, repairing, painting, cleaning, purchasing and expense of erecting and maintain- ing lamp posts, street designations, lanterns and fixtures: Provided, that all of said lamps shall burn 148 KATE REGULATION. every night on an average from fifteen minutes after smiset to forty-five minutes before sunrise. Provided further: That before any expenditures are made from the appropriations herein provided for, the contracting gas companies shall equip each street lamp with a self-regulating burner and tip, so combined and adjusted as to secure under all ordinary variations of pressure and density a con- sumption of five cubic feet of gas per hour: Pro- vided further, that not more than $15,000 of said appropriation may be expended for fighting, ex- tinguishing, repairing, painting and cleaning public lamps of a higher candle-power than those provided for above, and not less than sixty candle-power, which lamps shall not cost to exceed $28 per lamp, and shall otherwise be subject to the restrictions of this paragraph: And provided further, that during the fiscal year 1904 the illuminating power of the gas furnished by any gas light company, person or persons in the District of Columbia shaU be equal to twenty-two candles, understanding the requirement as to candle power prescribed by sec- tion 3 of the regulating and sale of gas in the Dis- trict of Columbia." Approved June 6, 1896. For Electricity. "Arc lighting, including the nec- essary inspection, and for extensions for such ser- vice, not exceeding $80,000 : Provided, that not more than $80 per annum shall be paid for any electric arc light burning from fifteen minutes after sunset THE STATUTES OF THE SEVERAL STATES. 149 to forty-five minutes before sunrise, and operated wholly by means of underground wire; and each arc light shall be of not less than 1,000 actual candle- power, and no part of this appropriation shall be used for electric lighting by means of wires that may exist on or over any of the streets or avenues of the city of Washington." There does not appear to be any law regulating the rates which gas or electric companies may charge for the supply of electricity, but there is some legislation affecting gas and electric com- panies, which is set forth below. United States Statutes, 1895-1896, ch. 335, p. 251. An act relating to the sale of gas in the Dis- trict of Columbia. (June 6, 1896.) ''Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled that the Washington Gas- light Co., of the District of Columbia, is authorized to charge and collect after the first day of July, 1896, for illuminating gas furnished to and paid for by private consumers in the District of Colum- bia at the rate of not exceeding $1.10 per 1,000 cubic feet until the first day of July, 1901, after which last-mentioned date the rates shall not ex- ceed $1.00 per 1,000 cubic feet; and that after the first day of July, 1896, the Washington Gas Light Co. of the District of Columbia shall furnish to the United States Government in the District of Co- 150 RATE REGULATION. lumbia, gas at the rate of $1.00 per 1,000 cubic feet, provided that if consumers, other than the Gov- ernment, shall not pay monthly any gas bill within ten days after the same shall have been presented, said company may charge and collect from said consumer, so failing to pay said bill as aforesaid, $1.25 per 1,000 cubic feet for the gas furnished to said consumer during said month. Sec. 2. "That the Georgetown Gas Light Co. doing business in that part of the District of Co- lumbia formerly known as Georgetown is author- ized to charge and collect after the first day of July, 1896, for illuminating gas furnished to and paid for by private consumers in that part of the District of Columbia at the rate of not exceeding $1.35 per 1,000 cubic feet until the first day of July, 1901; after which last-named date the rate shall not exceed $1.25 per 1,000 cubic feet; and that after the first day of July, 1896, the said Georgetown Gas Light Co. shall furnish to the United States Government of the District of Co- lumbia, gas at the rate of $1.25 per 1,000 cubic feet: Provided, that if consumers, other than the Gov- ernment, shall not pay monthly any gas bill within ten days after the same shall have been presented said company may charge and collect from said consumer, so failing to pay said bill as aforesaid, $1.50 per 1,000 cubic feet for the gas furnished said consumer during said month." CASES CITED. Aldnutt V. Ingliss, 12 East. (Eng.) 527 18 Alpena Electric Co. v. City of .\lpena, 130 Mich. 413 3 Allen, State v., 178 Mo. 555.. . 3 Ames, Smyth r., 169 U. S. 466 3, 5, 7, 10, 14, 35 Avondale, Cincinnati Gas Light & Coke Co. v., 43 Ohio St. 257 4 B Bartlett, Spring Valley Water Worksv., 16Fed. Rep. 615. . 7 Beidehnan, Dow v., 125 U. S. 680 ^G Brass v. Stoeser, 153 U. S. 391 45 Brymer v. Butler Water Co., 179 Pa. 231 6,9 Budd I'. New York, 143 U. S. 517 45 Butler Water Co., Brymer v., 179 Pa. 231 6,9 Capital City Gas Co. v. Des Moines, 72 Fed. Rep. 818. . . 6, 9 Chicago, Burlington tt Quincy R. R. Co. V. Iowa, 94 U. S. 155 2, 14, 22 PAGE Chicago & Grand Trunk Ry. Co. V. Wellman, 143 U. S. 339. . 3, 47 Chicago, Milwaukee & St. Paul Ry. Co. V. Minnesota, 134 U. S. 418 3,5, 7, 24 Chicago & N. W. R. R. Co., Lawrence v., 94 U. S. 164 2, 14, 23 Chicago & N. W. R. R. Co., Peik v., 94 U. S. 164. . 2, 14, 23 Cincinnati Gas Light & Coke Co. I'. Avondale, 43 Ohio St. 257 4 Cincinnati Gas Light & Coke Co., State ex rel. Attorney General?'., 18 Ohio St. 262. . 4 Cincinnati, Hamilton & Dayton R. R. Co. V. Village of Bowl- ing Green, 57 Ohio St. 336. . 4, 7 City of Alpena, Alpena Elec- tric Co. v., 130 Mich. 413. . . 3 City of Des Moines v. Des Moines Water Works Co., 95 Iowa, 348 3 City of Des Moines, Des Moines Water Works Co. v., 95 Iowa, 348 3 City of Leadville, Leadville Water Co. v., 22 Col. 297 ... 3 City of Memphis, New Mem- phis Gas Light Co. v., 72 Fed. Rep. 952 3,5, 7, 32 ' 151 152 CASES CITED. PAGE City of Negaunee, Mitchell v., 113 Mich. 359 3 City of South Omaha, Sharp v., 53 Neb. 700 3 City of St. Paul, St. Paul Gas Light Co. v., 91 Minn. 521 . . 3 City of Wilkesbarre v. The Spring Brook Water Supply Co., 4 Lack. Leg. N. (Pa.) 367 6 City of Wymore, Wabaska Electric Co. v., GO Neb. 199 3, 7 Cleveland Gas Light & Coke Co., State ex rel. Hadden v., 3 Ohio Circuit Rep. 251 4 Clinton Electric Light, H. & P. Co. V. Snell, 95 111. App. 552 3 Columbus Gas Light & Coke Co., The, State ex rel. The Attorney General v., 34 Ohio St. 572 4 Cotting V. Kansas City Stock Yards Co., 183 U. S. 79 3, 5, 10, 43 Covington, etc., Turnpike Co. V. Sandford, 164 U. S. 578. . 49 D Des Moines, Capital City Gas Co. v., 72 Fed. Rep. 818. .. . 6, 9 Des Moines Water Works Co. V. City of Des Moines, 95 Iowa, 348 3 Des Moines Water Works Co., City of Des Moines v., 64 N. W. Rep. 269 3 Dow V. Beidelman, 125 U. S. 680 46 E Edison Electric Illuminating Co., Gould v., 29 Misc. 242. . 3 Farmers' Loan & Trust Co., Reaganv.,154U.S.362 3,5,7,26 Farmers' Loan & Trust Co., Stone v., 116 U. S. 307 6 G Gill, St. Louis & San Francisco Ry. Co. v., 156 U.S. 649.... 48 Gould V. Edison Electric Il- luminating Co., 29 Misc. 242 3 Gas Light Co., People v., 45 Barb. (N. Y.) 136 6 H Hale, People's Gas Light & Coke Co. v., 94 III. App. 406 3,6,9 Higginson, Smyth v., 169 U. S. 466 5 I Illinois, Wabash Ry. Co. v., 118 U. S. 557 46 Illinois, Munn v., 94 U. S. 113 2,7,14,15 Inglis, Aldnutt v., 12 East. (Eng.) 527 18 Iowa, Chicago, Burlington & Quincy R. R. Co. v., 94 U. S. 155 2,14,22 Ironton Gas Co., State ex rel. Attorney General v., 37 Ohio St. 45 4 Jasper, San Diego Land & Town Co. v., 189 U. S. 439. . 6 K Kansas City Stock Yards Co., Cotting V. 183 U. S. 79 3, 5, 10, 43 CASES CITED. 153 PAGE L Laclede Gas Light & Coke Co., State v., 102 Mo. App. 472 . . 3 Lawrence v. Chicago & N. W. R. R. Co., 94U. S. 164.... 2,14 Leadville Water Co. v. City of Leadville, 22 Col. 297 3 M Milwaukee, Gas Light Co. Shepard v., 6 Wis. 539 4 Minnesota, Chicago, Milwaukee & St. Paul Ry. Co. v., 134 U. S. 418 3,5,7,24 Mitchell V. City of Negaunee, 113 Mich. 359 3 Munn V. Illinois, 94 IJ. S. 113 2,7,14,15 Mutual Gas Company, Pingree v., 107 Mich. 156 3 Mutual Gas Company, Williams v., 52 Mich. 499 3 N National City, San Diego Land & Town Co. v., 174 U. S. 739 3, 5, 12, 40, 51 New Memphis Gas Light Co. v. City of Memphis, 72 Fed. Rep. 952 3,5,7,32 New York, Budd v., 143 U. S. 517 45 Opinion of the Justices of the House of Representatives, 150 Mass. 592 3 P Peik V. Chicago & N. W. R. R. Co., 94 U. S. 164 2,14,23 PAGE People V. Gas Light Co., 45 Barb. (N. Y.) 136 6 People's Gas Light & Coke Co. ?'. Hale, 94 111. App. 406. . 3, 6, 9 Pingree r. Mutual Gas Com- pany, 107 Mich. 156 3 R Railroad Commission Cases, 116 U. S. 307, 331 29,45 Reagan v. Farmers' Tvoan & Trust Co., 154 U. S. 362 3, 5, 7, 26 Redlands L. & C. Domestic Water Co. v. Redlands, 121 Cal. 312 6 Redlands, Redlands L. & C. Domestic Water Co. v., 121 Cal. 312 6 Revere Water Co. Turner v., 171 Mass. 329 6 S San Diego Land & Town Co. v. Jasper, 189 U. S. 439 6 San Diego Land & Town Co. v. National City, 174 U. S. 739 3, 5, 12, 40, 51 San Joaquin & Kings River Canal & Irrigation Co., Stan- islaus County v., 192 U. S. 201 3,6,12,54 Sandford, Covington, etc., Turnpike Co. v., 164 U. S. 578 49 Schottler, Spring Valley Water Works Co. v., 110 U. S. 347 3,7 Sedalia Gas Light Co., State v., 34 Mo. App. 501 3 Sharp V. City of South Omaha, 53 Neb. 700 3 154 CASES CITED. PAGE Shepard v. Milwaukee Gas Light Co., 6 Wis. 539 4 Smith, Smyth r., 169 U. S. 466 5 Smith V. Higginson, 169 U. S. 466 5 Smyth V. Ames, 169 U. S. 466 3,5,9,10,14,35 Smyth V. Smith, 169 U. S. 466 5 Snell, Clinton Electric Light, H. &P.Co.r.,95Ill.App.552 3 Spring Valley Water Works v. Schottler, 110 U. S. 347 3, 7 Spring Valley Water Works v. Bartlett, 16 Fed. Rep. 615. . 7 Spring Brook Water Supply Co., City of Wilkesbarre v., 4 Lack. Leg. N. (Pa.) 367.. 6 St. Louis & San Francisco Ry. Co. V. GiU, 156 U. S. 649 48 St. Paul Gas Light Co. v. City of St. Paul, 91 Minn. 521 .. . 3 Stanislaus County v. San Joa- quin & Kings River Canal & Irrigation Co., 192 U. S. 201 3, 6, 12, 54 State ex rel. Hadden v. Cleve- land Gas Light it Coke Co., 3 Ohio Circuit Rep. 251 4 State ex rel. Attorney General V. Cincinnati Gas Light & Coke Co., 18 Ohio St. 262. . 4 State ex rel. The Attorney Gen- eral V. The Columbus Gas PAGE Light & Coke Co., 34 Ohio St. 572 4 State ex rel. Attorney General V. Ironton Gas Co., 37 Ohio St. 45 4 State V. Allen, 178 Mo. 555 3 State V. Laclede Gas Light Co., 102 Mo. App. 472 3 State V. Sedalia Gas Light Co., 34 Mo. App. 501 3 Stoeser, Brass v., 153 U. S. 391 45 Stone V. Farmers' Loan & Trust Co., 116 U. S. 307 6 T Turner r. Revere Water Co., 171 Mass. 329 6 V ^^illage of Bowling Green, Cin- cinnati, Hamilton & Dayton R. R. Co. ()., 57 Ohio St. 336 4, 7 W Wabash Ry. Co. v. Illinois, 118 U. S. 557 46 Wabaska Electric Co. v. City of Wymore, 60 Neb. 199. . . 3, 7 Wellman, Chicago & Grand Trunlc Ry. Co. v., 143 U. S. 339 3, 47 Williams v. Mutual Gas Co., 52 Mich. 499 3 CASES DIGESTPJD. A PAGE Ames, Smyth v., 169 U. S. 466 35 C Chicago, BurUngton & Qiiincy R. R. Co. v. Iowa, 94 U. S. 155 22 Chicago, Milwaukee & St. Paul Ry. Co. v. Minnesota, 134 U. S. 418 24 Chicago & N. W. R. R. Co., Peik v., 94 U. S. 164 23 City of Memphis, New Memphis Gas Light Co. v., 72 Fed. Rep. 952 32 Cotting V. Kansas City Stock Yards Co., 183 U. S. 79. . . . 43 F Farmers' Loan & Trust Co., Reagan v., 154 U. S. 362. . . . 26 I Illinois, Munn v., 94 U. S. 113 15 Iowa, Chicago, Burlington & Quincy R. R. Co. v., 94 U. S. 155 ' 22 K Kansas City Stock Yards Co., Cotting v., 183 U. S. 79 43 * 155 156 CASES DIGESTED. M PAGE Minnesota, Chicago, Milwaukee & St. Paul Ry. Co. v., 134 U. S. 418 24 Munn V. Illinois, 94 U. S. 113 15 N National City, San Diego Land & Town Co. v., 174 U. S. 739 40 New Memphis Gas Light Co. v. City of Memphis, 72 Fed. Rep. 952 32 P Peik V. Chicago & N. W. R. R. Co., 94 U. S. 164 23 R Reagan v. Farmers' Loan & Trust Co., 154 U. S. 362 26 S San Diego Land & Town Co. v. National City, 174 U. S. 739 40 San Joaquin & Kings River Canal & Irrigation Co., Stan- islaus County i;., 192 U. S. 201 54 Smyth V. Ames, 169 U. S. 466 35 Stanislaus County v. San Joaquin & Kings River Canal & Irrigation Co., 192 U. S. 201 54 INDEX. (The figures refer to pages.) PAGE ACTIONS, criminal, 15 civil, injunction, 22, 23, 27, 32, 35 to determine constitutionality, 43 to set aside ordinance, 54 ARKANSAS, 58 Gas & Electric Light, city council, books to be produced before, 59 complaint to, 58 fines, 60 fixes rates, 59 misdemeanor, refusal to charge rates fixed by, 60 CALIFORNIA, 60 Gas & Electric Light, common council, may contract for gas, 62 constitution, authorizes legislation, 60 no legislation under, 61 streets, use of, regulation of rates by municipality for, 61 * 157 158 IXDEX PAGE CASES DIGESTED 155-156 annexed to Cases Cited. COLORADO, 62 Gas & Electric Light, municipality, gas, authorized to contract for, 62 rate regulation, must be reasonable, 63 CONGRESS, action by, ° CONNECTICUT, 64 Gas & Electric Light, commission, electric light, regulation of rates, by, 64-66 gas light, regulation of rates by, 65-67 municipalities, gas and electric plants, may erect, 64 CONSTITUTIONAL, regulation of rates is, 2, 4, 5, 15 see Cases Digested. COURTS, power of courts to review rates, 4 determination of reasonableness of rates by, 3, 4, 5 DISTRICT OF COLUMBIA, 147 Gas & Electric Light, rates for, 147-150 DUE PROCESS OF LAW, rates, fixing of, requires, 8, 25, 26, 33 INDEX. 159 PAGE ELECTRIC LIGHT COMPANIES, see several states. FLORIDA, 67 Gas & Electric Light, city or town council, regulation of rates by.. 67, 6S GAS LIGHT COMPANIES, see several states. GEORGIA, 68 Gas & Electric Light, rates, fixed by contract, 68 GRAIN ELEVATORS, rates, may be regulated, 5, 15 HISTORY, 1, 2, 6 IDAHO, 68 Gas & Electric Lighting. corporations, must supply gas on written application, 68 ILLINOIS, 60 Gas & Electric Light, Chicago, empowered to fix maximum rates, 70, 71 sale of surplus gas and electricity by, 69, 70 Gas Companies, consolidation of, 69 not to increase price, 69 160 INDEX. PAGK INDIANA, 72 Gas & Electric Light, cities and towns, electric light commission, 73 may contract for, 72 regulation of rates, no provision for 73 INJUNCTIONS, see Actions. IOWA, 73 Gas & Electric Light, cities and towns, empowered to regulate rates, 73 KANSAS, 74 Gas & Electric Light, electric power, 74 heat, 74 municipalities, gas and electric light, 74 may contract for, 74 may fix charges for, 74—76 water, 74 LEGISLATIVE CONTROL, legislature has power to fix rates, 3 limitation of, 4 LIGHTING, see Electric Light Companies, see Gas Light Companies. LIMITATION, legislative power, 5, 8 see Cases Digested. INDEX. 161 PAGE MASSACHUSETTS, 77 Gas & Electric Light, Board of Gas & Electric Light Commissioners complaint to, 77 companies may apply to Board to fix rates,.. . .78-79 light, reasonable charges for, 77 may order reduction charges for, 78 MICHIGAN, 79 Gas & Electric Light, cities and towns, may contract for, 79 may erect plants for, 79, 80 may fix rates, 79 MINNESOTA, 82 Gas & Electric Light, cities and towns authorized to erect plants for, 87-89 rates for, 89 corporations may construct and own plants for, . . 82 may supply for public use, 83 reasonable charges for, 83 state has power to fix rates for, 84-86 MISSISSIPPI, 90 Gas & Electric Light, cities and towns, may grant franchises for, 91 may erect electric plants for, 91, 92 may fix rates for, 92 maximum rates, 93 11 162 INDEX. PAGK MISSOURI, 93 Gas & Electric Light, municipalities may contract for, 94 NEBRASKA, 95 Gas & Electric Light, light commissioners, 97 Mayor and council provide for, 95 regulate rates, 95-97 may contract for, 9 may erect plants for, 96, 97, 99 NEVADA, 99 Gas & Electric Light, corporations, may construct and own plants for, 100 may supply for public use, 100 payment for franchises, 100-102 NEW HAMPSHIRE, 102 Gas & Electric Light, must be supplied, 102 rates must be reasonable, 102 NEW JERSEY, 102 Gas & Electric Light, cities and towns, may contract for lighting, 104-107 corporations may supply, 103 rates fixed by parties, 102 NEW YORK, 108 Gas & Electric Light, Commission of gas and electric light, 108-111 INDEX. 163 NEW YORK— continued. powers of, 112-119 complaint to 119 fixing price of, 120-123 OHIO, 123 Gas & Electric Light, cities and towns, may contract for supply of, 125, 126 may fix price for corporations supplying, 126 may erect and purchase plants, 124 maximum rates, 124 regulation of rates by 123, 124 ORDINANCE, unreasonable rates enjoined, 32, 33 RAILROADS, rates for, may be regulated, 5, 8, 22-26 RHODE ISLAND, 127 Gas & Electric Light, rates for corporations supplying, 127, 128 STOCK YARDS, rates for may be regulated, 5, 43 SOUTH CAROLINA, 128 Gas & Electric Light, Board of Commissioners of 128 consent to construct plants, 128 erection of, by cities, 128 grant of franchises for, 130 public works, rates for, 128 164 INDEX. PAGE SOUTH DAKOTA, 130 Gas & Electric Light, corporations authorized for, 131 rates fixed by contract, 131 TENNESSEE, 131 Gas & Electric Light, corporations authorized for, 131-133 rates for, must be reasonable 132 TEXAS, 133 Gas & Electric Light, city council, provides for light, 133, 134 corporations for, authorized 134 may contract with cities for supply of, 134, 135 UTAH, 135 Gas & Electric Light, city council, contracting for supply of, 136 erection of plants for, by 136 erection of plants by others, 136 lighting by, 135 rates for, regulated by 136 VERMONT, 137 Gas & Electric Light, corporations for authorized, 137, 138 erection of plants by towns, 137 rates fixed by contract, 137 INDEX. 165 PAGE VIRGINIA, 138 Gas & Electric Light, corporations for, under control of state corporation commission 139 prices for, not regulated 139 WATER COMPANIES, rates may be regulated, 5, 40, 54 WASHINGTON, 140 Gas & Electric Light, cities may erect plant, 140 may authorize others to erect, 141 price for regulated by, 141 WISCONSIN, 141 Gas & Electric Light, city council has control of, 141 may purchase plant, 141-143 may fix rates, 144 city may supply to inhabitants and others, 146 erection of plant by cities, 145 franchises to corporations, 144 UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. law Library Rec'd StP 2^ 1988 LAW LIBRARY UNIVERSITY OF CALIFORNU LOS ANGELES UC SOUTHERN REGIONAL LIBRARY FACILITY AA 000 769 837 6