The daily morning journal and courier., 1902-02-13
OPINION BY E. P. ARVINE
ONTHE RIGHTS OF CITIZENS UNDER
 EXISTING WATER CONTRACT

Rate to the Consumer and Right to
 the Purchase of the Property Arc Per-
 pstuai, says Mr. ArVims.
 The following letter was received by
 Charles Gay yesterday from Attorney F. P. Arvine, and clear statement in regard to the first and second contracts of the Water company is given. The paragraphs of both contracts are dis cussed by MT. Arvine, and the opinion is one that will interest all, Below is the letter:
 New Haven, Conn.,, Feb. 12, 1902
 Mir. Charles Gay, New Haven, Conn:
 Dear Sir--You have requested, in be- half of yourself and many other citi- zens my opinion as to what rights the city of New Haven would have under it's existing contract with the New Ha- ven Water company, if the same should not be renewed or some other contract made at the expiration of the ten years therein provided for, which occurs on the 20th day of this month.
 The first contract with the city was made in 1862, which differs materially from the contracts which succeeded and throws but little light, if any at all, upon the construction of the present contract. The contract of 1862 provid- ed for the purchase of the assets and franchises of the Water company at any time after the first ten years of its duration, which was to be twenty years.
 The next contract made with the city was dated the 18th day of December, < 1881, and was made after the city had declined, by it's vote, to purchase the property and franchises of the Water company in pursuance of the contract of 1882 This contract of December, 1881, is in all substantial respects like the contract at present existing, which was entered into the 18th day of De cember, 1891.
 The first paragraph of both these con- tracts provides that the company shall furnish the city with an adequate sup ply of water for public and municipal purposes at certain fixed prices for specified time.
 The second paragraph in both con- tracts provides as follows: That tat the end of period of ten years, and at the end of every period of ten years thereafter, said company, if required by said city to do so, will renew the agree ment above set forth upon such terms in regard to compensation as said par ties may agree upon" and further pro vides that if they cannot agree the terms may be fixed by committee ap- pointed by a judge of the Supreme court. This is the only provision for a renewal contained in these contracts, and it clearly refers to paragraph first which precedes it.
 It would be very unusual, of course, to make a provision for the renewal of a contract in the commencement of it, and as this provision for renewal uses the words "the contract above set forth" it is evident that it was intended to apply only to the contract embraced in the first paragraph, viz, to furnish the city with water for specified time for specified sum.
 Paragraph fifth of both contracts says that said company will always hereafter keep down to it's present ba- sis the water rates charged and to be charged by the said company against all consumers of water in said city, other than said city itself, so that said rates shall always be as low as they now are or lower" Then follows the schedule. This, very evidently, is not a contract to keep down the water rates during the ten years in which the com pany is to supply the city with water, but to do it always hereafter" exactly as the language of the paragraph indi- cates. This paragraph is not affected by the provision for renewal in para graph 2, but is of perpetual binding eff feet.
 Paragraph fifth provides that the wa ter rates are to be kept down always hereafter" against all consumers of wa ter except the city itself, This con- firms the construction which we have given to paragraph ?. The price to the city is to be changed by renewal; the nrice to other consumers is to be per petual.
 Paragraph sixth of both contracts rroyides that the company will convey to the city it's property and franchises whenever. at any future time, the city shall choose to purchase the same for a fair and just compensation, which /! lcompensation is to be determined by a | committee appointed by the Superior court This paragraph does not, like | the contract of 1862, provide for pur- chase within the period during which | the company is to supply the city with | water but provides that the purchase | may be made at any time in the future. | This paragraph is not affected by the | provisions for renewal in paragraph 2, 1 but is. very clearly, perpetual in it's | binding effect.
 In paragraph tenth the city, "in con- sideration of the foregoing promises and agreements of the company, agrees to pay the company certain sums of money. These sums of money, it will be observed, are not paid in consdera- ton of the supply of water, but are in of "alP' the promises made by the company The company has. therefore agreed to supply water for ten years from the 20th day of Feb ruary. 1882, and again for ten years from the goth day of February, 1892, and that it will always keep it's water rates as low as they now are, or lower, and that at any future time it will sell to the city it's property and franchises for fair compensation to be fixed in the manner provided for in paragraph 6. This contract was, by an act of the general assembly passed i'll 1881, made A part of the charter of the Water com 1 pany, and, to use it's language, was made .'obligatory upon said company