Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-12-04
STATES POLICE power
Important Decision of
Court Respecting a
alter Company's
Rates
Contract Rights Which Affect
Public Welfare Must Yield to
Public Good

FOLLOWING is 4 rescrIpt of the
opinion OF the Supreme court OF
Maine in an important case involv-
ing contract rights in a public utility,
when public safety anG welfare are
concerned.
PIscataquis County-In re Guilf0rd
Water Company's Service Bates.
Rescr;pt, Dunn. ].
Having been authorized by the
Legislature III contract for "a sup
ply of water for fire or other pur-
poses for i term OF years" the town
Of Guilford. in the year 1910, entered
into al agreement with the GuilforG
Water Company whereby. among 9TH
er things. the latter stipulated that
for a period of 30 years from thar
time II would furnish water for do
mesric purposes TO jewellers IN Gull
O village. al an annual first faucet
rate of So.
Without Legislative permission, h
water company soon afterward
agreed with another company that.
Tor an annual payment of $500 ii
would function successfully with the
100000 a. pboN - u pabA-N So AZ
in the nearby village Of S~angerville
the one 10 collect and furnish q
supply OF water anu the uther to dis
tribute and sell il. Later on. the
Legislature gave leave TO the one
company to supply the other. at a
rental proportional, with defined lin
It's. TO the number Of faucets and
hydrants in the respective towns. but
the companies never have changed
the terms of their original agree
ment.
After supplying water 10 Individual
takers. IN conformity 70 its contract
with G~ullf9rG. fer somewhat more
than une-thlrd OF the stated Term.
tn" Guiltcrd Water Company petit
toned me Public Utilities Commits
sion To approve and allow a evil
sion Of rates uniformly increasing
the charge for the first faucet from
So 10 Sc. The town. in lis corporate
capacity. ana citizens in their own
behalf, protested thai such increase
would he in vioiation of q valid con-
tract. Moreover. they insisted rfiar
the rental or charge against The san
gervilie company should he increased.
Upon hearing and investigation, an
increase OF faucet rates vas granted,
less IN amount than applied Tor.
The commiaSion ruled, that though
i-nadeqGacy Of compensation for wa
ter supplied the Sangerville Com
pany was patent. yer II was power
less 10 say what sum that company
rightly should pay 10 the other
~ -. Hi pIf the
town. renewing ITS attack, commended
that as to private takers, the contract
rates were controlling; and that n
commission had power TO detfrTnine
what quantity of money the sam
g~ervilie Company should pay Tor ITS
supply,
Held: That the State. as an al
tribute of Sovereignty. is endowed
with authority. i'll the appfopriaLe
exercise Of the police power. TO reg
ulate the charges CT public Utilities
Regulation in such cases ih nor an
unwarranted interference with the
right Of contract which The consri-
turional guaranty Of the enjoyment
Of liberty includes. Private con-
tracts. concerning property rights.
are IHF1OlaDi6. DuI no DIlil-si@ip4 Va
Z contract can extend To rhe defeat
sof legitimate governmental power.
Contract rights. which affect ms
public safety and welfare, II yield
70 that which liz essential To the gen.
e-al good. The Legislature, in the
exercise Of the police power. rs I'M
restricted by the provisions OF con-
tracts individuals and cor
puraripns. or between individuals anc
municipal corporations.
The State may decrease or in
crease the contract specified rates Tor
public utility services as business ann
reasonableness may require. Under
lying such right of regulation is the
fundamental doctrine that the util-
irv, for the adequate doing OF that
which il was char1ed to do. should
receive tolls sufficient TO enable II
10 meet the exact requirement Rates
neither should be SO low as 10 de-
prive the utility Of means of appro-
priateiy -discharging duty nor SO high
Us 10 undulv burden the public Safe
and efficient service. with substantial
equality of treatment in like sitna-
tiDnB, is the essential. |
In Granting rhe puiaISr TT<fIsfso-