71 Pa. Super. 43 | Pa. Super. Ct. | 1919
Opinion by
The Beaver Valley Water Company was incorporated in 1902 to supply water in a district between Freedom and Baden on the northeasterly side of the Ohio river. Shortly after its organization it took over various water companies supplying seven municipalities covering a stretch of territory approximately eleven miles in length. The company filed two schedules increasing the water rates through this territory, one in 1912 and the second in 1914. Complaints were filed to both of these schedules which were disposed of in this proceeding. The company at that hearing asked that a schedule be adopted which would yield a fair return on a valuation of $2,540,000. This value was arrived at from an ap
A. 8,470 feet of 12-inch pipe from Freedom to Conway, and rock excavation,........$ 15,772.00
B. Duplicate pipe in Beaver Falls Distributing System, ....................... 39,330.00
C. .Valves, etc., in Beaver Falls Distributing System used with said duplicate pipe,. 1,006.40
D. Tbe People’s Warehouse,.............. 5,000.00
E. Tbe New Brighton Reservoir, ......... 3,000.00
G. The Freedom Pumping Station,........ 13,500.00
H. Paving where mains were laid before pavements, ................ 34,157.45
I. Service lines installed by consumers, .... 60,861.50
J. Lands excluded from valuation,........ 64,187.50
K. Water Power Value at Hartman dam, .. 84,800.00
L. Water Power Value at New Brighton dam,.............................. 88,200.00
M. Bed of Beaver River,................. 100,000.00
N. Proposed additions to plant,.......... 72,607.00
O. Going concern value,............. 250,000.00
P. Cost preliminary to construction,...... 30,000.00
Q. Promotion service, ..................^
R. Franchise costs,.....................>120,000.00
S. Financing and brokers’ fees..........J
In Ben Avon Boro. v. Ohio Valley Water Co., 68 Pa. Superior Ct. 561; 260 Pa. 289, we considered the legal propositions as they bore upon the several questions presented by this appeal. In that case the court, following the direction of the Public Service Act, considered Section 22 of Article VI, of the Public Service Act that required this court upon the record to determine whether the order appealed from was reasonable and in conformity with law. By section 23 of the same act, the notes of testimony were made part of the record of the case. If, from this record the order did not appeal to the court as being a reasonable order, either from failure to consider items of value properly proven, or from a manifest disregard of evidence, or from reliance upon incompetent evidence, we were required to proceed as the law directed. The act plainly directed the evidence be reviewed, although in no event were we required to act as second administrative commission. In the Ohio Valley case we endeavored to point out where the commission had failed to allow items of value clearly proven and where there was little, and in some instances no testimony, to sustain its action, and where it had erred in its legal conclusion. In
We will not discuss at length the testimony taken in the present appeal. For the purpose, however, of illustrating the effect of the final judgment of the Supreme Court: when we made the order in the Ohio Valley case returning to the commission the record with direction to consider items of value that had been omitted, among those items was one of going concern value, the largest item in dispute. This same value is presented in this appeal. We pointed out that while the commission said it would consider going concern value, as a matter of fact it did not allow anything for that value. We pointed to the schedule of reproduction cost, new, less depreciation, made by the commission, as printed
In the present case, any reason which we might give for sustaining the item of going value would not be any more convincing than was given in the Ohio Valley case, and the Supreme Court held our action in that case was a substitution of our judgment for that of the commission’s. It may be readily seen how that case controls .the present one. There might be this possible difference in the present case. The commission said: “Upon the basis of the reproduction cost new method of ascertaining value for rate-making, the commission finds that the respondent has failed to sustain its claim for going value.” There was considerable evidence to establish this value, but the action of the commission in the Ohio Valley case did not differ from its unequivocal action in the present case. It did not allow the value in either case.
Complaint is made that the commission allowed the value of but one of the duplicating lines in Beaver Falls. Neither system alone was sufficient to supply' the present demand according to the appellant’s testimony. The value of the distributing system not allowed was $39,800. The reason given was that “they clearly would not find any physical counterpart in the conception of this plant reproduced.” The commission’s reason may be sound as an abstract question, but it must be remembered that these companies were built into boroughs that were at the time thinly settled. A three-inch line was possibly all that would be necessary to supply the inhabitants. As the borough grew the demand grew, but
We appreciate the difficulties under which the commission labors, but we appreciate, too, the difficulties under which investors in public utility companies labor where confiscation of property is permitted by those who are charged with the duty of protecting the owners. Where there is a conflict of testimony and the commission has found the facts, this court has always held that the action of the commission was final unless it was plainly against the manifest weight of the evidence. But, there is a decided difference between weighing disputed evidence and ascertaining whether the commission has refused to consider competent evidence properly before them. All the other items bear a close relation to the questions raised in the Ohio Valley case with the exception of item “A,” the pipe line from Freedom to Conway. We think the commission properly dispose'd of this question. The appellant had a main which ran to the borough and some railroad yards in the line of its activities. They disposed of their distribution system in the borough and they never owned the distribution system in the railroad company’s yards. The only thing that was left of their entire plant as it referred to this section was this main which was occasionally called into