Village of St. Clairsville v. Public Utilities Commission
Village of St. Clairsville v. Public Utilities Commission
Opinion of the Court
The motion for a rehearing filed with the commission, and the petition in error -filed in this court, make the same assignments of error, and, while they are twelve in number, they may be reduced to four general grounds:
1. Proper notice was not served.
2. The finding and order in favor of the applicant, The Ohio Fuel Supply Company, are against the weight of the evidence.
3. The commission erred in dismissing The East Ohio Gas Company from the case.
4. The finding and order are contrary to law.
Section 544, General Code, provides that a final order of the commission shall be reversed, vacated or modified by the supreme court on petition in error, if the court is of the opinion that such order was unlawful and unreasonable. Section 545, General Code, seems to authorize an inquiry into any errors complained of during the proceedings before the commission. In determining whether any order of the commission is unlawful and unreasonable, inquiry should therefore be made, not only into the evidence, to determine whether the order is properly supported by the evidence, but also into the proceedings during the course of the hearing, to determine whether the statutes relative to procedure have been followed and whether the law applicable to the proceeding has been properly applied. Following this rule, we will first determine whether a proper notice was served.
To determine this question and other questions which follow requires an examination of Section 504-3, General Code, this being the particular section which provides the manner and means whereby a public utility may withdraw or close its service. We will quote only the portions applicable to and controlling this proceeding:
“Any * * * such public utility * * * desiring to abandon or close * * * for traffic or service all or any part of such line or lines, pumping station, generating plant, power station or service station, shall first make application to the public utilities commission in writing who shall thereupon*580 cause reasonable notice thereof to be given, stating the time and place fixed by the commission for the hearing of said application. Upon the hearing of said application said commission shall ascertain the facts, and make its finding thereon, and if such facts satisfy the commission that the proposed abandonment, withdrawal or closing for traffic or service is reasonable, having due regard for the welfare of the public and the cost of operating the service or facility, they may allow the same; otherwise it shall be denied * * * No application shall be granted unless the company or public utility shall have operated said * * * gas line * * * for a period of at least five years, and such notice shall be given by publication in a newspaper of general circulation throughout any county or municipality which may have granted a franchise to said company or public utility, under which said * * * gas line * * * or service station is operated or in which the same is located, once a week for four consecutive weeks before the hearing of said application, and notice of said hearing shall be given such county, municipality or public utility in the manner provided for the service of orders of the commission in section 614-71 of the General Code, and except that the provisions of section 504-2 and 504-3 shall not apply to a gas company when removing or exchanging abandoned field lines.”
It will be.observed that this section does not require a village or county or any consumers to be made parties defendant to the proceeding, but only that the application shall be addressed to the Public Utilities Commission and that notice thereof be
“Legal Notice
“The application of The Ohio Fuel Supply Company, before the Public Utilities Commission of Ohio, filed April 8th, 1920, and being cause No. 1970, for leave to withdraw the natural gas service, pipes, lines, meters and other facilities for service, from the municipality of St. Clairsville, the unincorporated village of East Richland, and rural consumers served in connection therewith, all in Belmont county, Ohio, by order of the Commission has been assigned for hearing on Friday, May 14th, 1920, at 9 o’clock A. M., Central Standard time, at the Hearing Room of the Commission in the State Office Building, Columbus, Ohio.
“This publication made pursuant to an order of The Public Utilities Commission of Ohio as provided by law.
“The Ohio Fuel Supply Company,
“(4 15 4) “By J. M. Garard,
“Vice-President and General Manager.”
The record further discloses that notice 'was given to the village solicitor of St. Clairsville, to the prosecuting attorney of Belmont county, and to
We are not sure that we fully understand the' views of counsel on this point, but we gather from the colloquy between the commission and counsel that it was the view of counsel that notice should be served upon each and every consumer of gas in the Village of St. Clairsv-ille and Belmont county. Even if this should be a correct statement of the law, it does not appear that the requisite notice has not been given, because Section 504-3 makes no mention of personal service, and, for anything which appears in that section, service by publication is all that the legislature required or intended. Furthermore, the Village of St. Clairsville filed an answer, and the village solicitor and the prosecuting attorney of Belmont county, and other counsel representing “various protestants,” appeared and participated in the hearing. Inasmuch as it does not appear that there were any contracts between the utility and the consumers, and inasmuch as it does appear that there was a franchise granted by the village to the utility, it would seem that actual notice to the village and published notice to the consumers should be sufficient.
Let us next inquire whether the commission erred in dismissing The East Ohio Gas Company from the case. It must be borne in mind that The East Ohio Gas Company did not voluntarily enter its appearance ; that it was not at any time asking for any affirmative relief, except that at the hearing it was stated by counsel that in the event the commission should hold that it had jurisdiction to make an order affecting The East Ohio Gas Company, it was, in such event, desired to amend the prayer of its pleading and to pray authority to discontinue the supply of gas to The Ohio Fuel Supply Company. The commission did not at any time hold that it had jurisdiction, but on the contrary dismissed The East Ohio Gas Company, apparently on the ground that it did not have jurisdiction. Let us suppose, however, that the commission did have jurisdiction and that The East Ohio Gas Company was a neces
It was not claimed that there was any privity of contract between the Village of St. Clairsville and The East Ohio Gas Company. Its liability to furnish gas is sought to be shown in various roundabout ways. In the first instance, it is shown that in its original articles of incorporation, and in each amendment thereto, it was given power and authority to supply natural gas to St. Clairsville arid other cities and villages. It does not appear, however, that it ever procured any-franchise from the Village of St. Clairsville, or that any rate was ever established in favor of that company, or that that company ever filed any acceptance of any such franchise or rate. It is impossible, therefore, that there could be any contractual relation existing between the village and The East Ohio Gas Company which would become the basis of any obligation to
Let us next determine whether the contract between The Ohio Fuel Supply Company and The East Ohio Gas Company created an obligation which would accrue to the Village of St. Clairsville and which could -be enforced in any proceeding either before the commission or in a court of law or equity. There are certain lines of cases which hold that a promise to one on a sufficient consideration to pay another can be enforced by the latter in his own name. Even if it should be held that the doctrine declared in those cases is applicable to the contract between The Ohio Fuel Supply Company and
Let us next inquire whether any obligation rests upon The East Ohio Gas Company to supply gas to The Ohio Fuel Supply Company for the uses of the Village of St. Clairsville upon any other grounds. This question is more properly discussed in connection with the fourth branch of our inquiry, to-wit, whether the finding and order of the commission are contrary to law. We have already determined that The Ohio Fuel Supply Company does not have an adequate available supply of natural gas of its own production for the uses of the Village of St. Clairsville, having due regard to “the cost of operating the service or facility,” and no means of obtaining such supply except from The East Ohio Gas Company, and we have already determined that there is no contract obligation express or implied on the part of The East Ohio Gas Company to continue to furnish a supply to The Ohio Fuel Supply Company.
Section 614-44 is also relied upon by the Village of St. Clairsville, but that section only refers to the power of the municipality to fix a rate, and it is apparent that the provisions of that section presuppose a duty to supply the service or furnish the commodity. That section is also impotent, unless there is a valid obligation to furnish some service or commodity to which a rate can be made to apply. It is conceded by both sides that prior to the enact
On the part of the village it is contended that the state in the exercise of its police power may control the service rendered and to be rendered by a public utility, regardless of whether there is a contractual obligation to do so, and may compel a continuance of service after the obligation has terminated. We have examined the cases cited in support of this contention, but it is sufficient to say that in all of them there was either a direct obligation, which had not been fully discharged and which was not being performed, or there was an accepted franchise to supply all consumers of a certain locality and an omission to supply a portion thereof. Those cases
It is contended on the other hand by the gas companies that the provisions of Section 504-3, General Code, apply only to utilities under a valid legal obligation to furnish product or service, where, by reason of failure of supply, unprofitable operation, or otherwise, the utility asserts a reason for discontinuing. The gas companies further argue that this section does not supersede all other legislation upon the subject, and that the commission does not by virtue of that section have power to decree when utilities shall serve, or whom they shall serve, or the terms and conditions of service and the rates to be charged therefor. We find it unnecessary to determine these questions, because they do not arise in the instant case.
It is sufficient to say that the statute confers the jurisdiction upon the commission to ascertain the facts, and make its findings thereon, and if the facts satisfy the commission that the proposed abandonment, withdrawal or closing is reasonable the application may be granted.
In this case its jurisdiction was invoked and the order was reasonable.-
We therefore find that the order, of the commission is not contrary to law, but that on the contrary it is both reasonable and lawful. Its order will therefore be affirmed.
Order affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.