The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-11-17
Gives Reasons Why Com
pany Charges Customers
On Meter Basis
POINTS TO DECISION
OF SUPREME COURT
Says Waterworks Company, Being a
Public Service Corporation, Must
Charge Customers At Rates
Specified In Charter

| A. NJ. Lynn. president of the Birming-
ham Waterworks company, gave out a
statement last night in references to
the claims that the water COMPANY
could. If 1t saw Mt, charge a less or
higher amount for its water than was
placed in effect under the contract of
1888, even after the victory over the
commission and 97-C Mr.. Lynn in his
statement points out that very recently
the supreme court held that the water
company was public service corpora
ton and was compelled to charge, with
out discrimination, those rates which
were specified in its charter. The de-
clsion to which Mr. Lynn refers was in
the case of the water company against
Mary B. Brown on point which has
recently been the subject of many vari-
Gus arguments.
This is the first statement that Mr.
Lynn has made since he came to the
city recently and was made following
consultation with Walker Percy of local
counsel for the company and Frank
| spurlock of Chattanooga. general coun-
sci for the water company.
| The statement follows:
Mr.. Lynn's Statement
ITO the Consumers of the Birmingham
Waterworks Company.
| The water company wishes to call
the attention of the consumers to the
decision of the supreme court handed
down last week in the case of Birming-
ham Waterworks company VS.. Mary B.
Brown. In this case the supreme court
declared that 1t was the duty of the wa
ter company to charge the same rates
to all consumers in old Birmingham for
the same service. That the contract of
1888 between the city and the company
prescribed the basis on which water
| should be furnished to consumers and
the rates which should be charged, and
that inasmuch as the contract of 1888
provided that water should be furnished
| to residences In old Birmingham ac
| cording to certain named fiat rates. that
| the water company could not lawfully
make agreements with any individual
customers in old Birmingham to charge
them for water furnished to their resi-
the returns to the water company
|
the fiat rates The court said
1--WE find nothing in this record
| indicating that since the rendition Of
the opinion in Smith VS.. Birmingham
Naterworks company. supra, the wa
| ter company has surrendered the right
to exact the flat rates which are pro-
vided in the ordinance contract for
residences in the city of Birmingham
or that any other rate has been legal
ly provided for such residences and
this being true these rates are, in 90
| lar as the evidence in this record dis
closes. the only rates which the wa
ter company has the right to offer to.
or exact Of its customers in the. city
of Birmingham
No Right to Charge By Meter
at is manifest from this decision that
the water company has not the right
| to charge its customers in old Bir-
| mingham and in unincorporated terri
tory annexed thereto for water fur
nished to dwellings on a meter basis
| even if 1t had a distinct contract with
it's customers to that effect. All Of
| It's customers living In the same mu-
ricipal limits must under the decision
of the supreme court be charged tn.
same price and on the same basis for
| the same service. Under the decision
| rendered by the supreme court of the
state, the Birming CHAM Waterworks
| company cannot make individual con-
| tracts with its residential customers in
OLD Birmingham to furnish them wa
| tel on a meter basis. however salts
factory those contracts might be 70
the water company and to it's con-
sumers and the supreme court has en-
phatically declared that any SUCH corr
tracts heretofore made are invalid and
must be disregarded.
The Birmingham Waterworks COM
rany earnestly invites consideration OF
this decision of the supreme court by
those of its customers In old Birming-
ham who have insisted. notwithstand-
| ing Judge Crows decision. upon their
right to have water furnished to their
dwellings on a meter basis. The Bir-
m:ngham Water company, in accord
arce with this decision. must request
| that all water service to dwellings IN
| old Birmingham be paid for In ac-
| cordance with the flat rates named
| In the contract of 1888. The Birming-
ham Waterworks company is profound
" DESTROYS of pleasing its customers
and of enjoying their friendship and
| good will, but as its customers will
realize it is a public service corpor-
alton and its business must be con-
Quoted in strict accordance with the
laws of the state. It cannot make ex-
ccptions in favor of individual custom
e-s 1t cannot make special contracts
with Individual customers not In ac-
cordance with the ordinances which
govern its service to those customers
Its contracts cannot be made with in
| dividual citizens but must be made
With the board of commissioners OK
/ the city of Birmingham as the duly
constituted representatives of all Of
the people of Birmingham.
THE BIRMINGHAM WATERWORKS
| COMPANY,
by A. NJ LYNN President"