THE STATE EX REL. THE LAUNDRY, INC., and OVERLAND LAUNDRY COMPANY v. PUBLIC SERVICE COMMISSION of State of Missouri ET AL.
Division One
January 5, 1931
34 S. W. (2d) 37
We are satisfied with our ruling on the question in that case. It follows the judgment should be affirmed. It is so ordered. All concur.
Roby Albin for respondents.
The proceeding was instituted upon a written complaint filed with the Public Service Commission by the Maplewood Laundry Company and the Overland Laundry Company, both incorporated entities, which written complaint charged and alleged, in substance and effect, that the complainants are and were, at all times herein referred to, engaged in a general laundry business, washing, cleaning, starching and ironing clothes, clothing, textile fabrics, and all and every article made therefrom; that they are engaged in said business on a very large scale, by the use of a large number of hired employees, and by the use of a large amount of machinery and equipment, such as is usually and generally used by large industries and other establishments of an industrial and manufacturing nature; that they are further engaged in those businesses which are incidental to washing and cleaning clothing and laundering the same, such as gathering soiled, unwearable and unusable clothing and fabrics, cleaning, reclaiming, repairing аnd renewing the same, and delivering the same to their customers in the nature of clean and usable clothing and fabrics; that, in the conduct of complainants’ said business, the
The relief sought by complainants, as prayed in their complaint, is that the Public Service Commission “make investigation of the facts and matters set forth herein, and determine that the said manufacturers’ rates shall be available to the petitioners (complainants), and for an order upon the said St. Louis County Water Company to extend to the petitioners the said manufacturers’ rates, and to sell and to supply to petitioners water on said basis and at said rate and upon said conditions; and that the said St. Louis County Water Company account to the petitioners for the moneys which petitioners have been compelled to pay under protest since April 1, 1924, and to refund to the petitioners the amounts paid, together with interest, in excess of the amount which petitioners should have paid had they been clаssified as manufacturers, and had they been extended the said manufacturers’ rates; and the petitioners pray for such other and
In due time, and after proper notice to the St. Louis County Water Company, a hearing upon said complaint was had before the Public Service Commission at its principal office in Jefferson City, Cole County, Missouri, at which hearing the complainants and the St. Louis County Water Company appeared by counsel, and evidence was offered by the respective parties in support of, and in opposition to, the written complaint so filed. At such hearing, it appearing that The Laundry, Inc., a Missouri corporation, had succeeded to the corporate business, rights and franchises of the Maplewood Laundry Company, the successor corporation was substituted as a complainant in the place and stead of Maplewood Laundry Company.
The evidence adduced upon the hearing before the Public Service Commission developed the following facts:
Since March 13, 1924, and effective from and after that date, there has been on file with the Public Service Commission a schedule of rates, filed by the St. Louis County Water Company, and ordered and approved by the Commission, for the furnishing of water to consumers “residing in incorporated cities and towns entering into franchise contracts with the company for water and fire service for periods of twenty years,” which schedule of rates is as follows:
“Use in Gallons per Quarter. Per M.
0 to 3,000 (first) 3,000 gal.......48 3/4 c
3,000 to 9,000 (next) 6,000 gal.......45c
9,000 to 36,000 (next) 27,000 gal.......37 1/2 c
36,000 to 225,000 (next) 189,000 gal.......30c
225,000 to 600,000 (next) 375,000 gal.......22 1/2 c
All over 600,000 18c”
The plant and place of business of The Laundry, Inc., being located in the city of Maplewood, an incorporated city in St. Louis County, the said laundry corporation has been charged by the St. Louis County Water Company for all water consumed according to the aforestated schedule of rates.
A schedule of rates, filed by the St. Louis County Water Company with the Publiс Service Commission, and ordered and approved by the Commission, effective from and after March 13, 1924, for the furnishing of water to consumers in unincorporated communities “where there are no franchise contracts for water and fire hydrant service,” is as follows:
“Use in Gallons per Quarter. Per M.
0 to 3,000 (first) 3,000 gal.......65c
3,000 to 9,000 (next) 6,000 gal.......60c
9,000 to 36,000 (next) 27,000 gal.......50c
36,000 to 225,000 (next) 189,000 gal.......40c
All over 600,000 20c”
The plant and place of business of the Overland Laundry Company being located in Overland, an unincorporated community in St. Louis County, the said laundry corporation has been charged by the St. Louis County Water Company for all water consumed according to the latter schedule of rates.
There is also on file with the Public Service Commission a schedule of rates, denominated “Manufacturers’ Rates,” filed by the St. Louis County Water Company, and ordered and approved by the Commission, dated March 13, 1924, and effective from and after that date, and which schedule is a restatement of the “manufacturers’ rate” as it has existed in St. Louis County since the year 1910, as follows:
“Consumption for manufacturing purposes, amounting to 500,000 gallons per month, shall be at the rate of 15 cents per 1,000 gallons, with a discount of 10 per cent for cash in ten days.”
The evidence shows that the St. Louis County Water Company has extended the “manufacturers’ rate” to ten of its customers, or consumers of water, each of which customers employs a number of persons in the conduct and operation of its business, which is that of converting, or manufacturing, raw materials into finished commercial products. There is no positive evidence as to the number of persons employed by each of said ten customers enjoying the “manufacturers’ rate,” but the evidence shows that at least one of such customers was employing about thirty men at the time of the hearing. The reason for the “manufacturers’ rate” was thus explained by an executive officer of the St. Louis County Water Company at the hearing: “The only reason for that rate was to put into effect (such rate) at a time that it was necessаry to get a volume of business and a number of consumers in the county, if the (Water) Company was going to be able to continue to operate. . . . The excuse for making that rate was that these (manufacturing) concerns each employed several hundred men, and these men would, at that time or shortly after that time, come to the county to live and build homes and live out in the county, and that would bring the volume of business to the Company very greatly in excess of the amount of water taken by the manufacturing concerns themselves, and these household consumers taking water at the block (or meter) schedule would pay the maximum rate for water, since they pay the highest rate of the block (meter) schedule, and, added to the manufacturers’ rate or the amount of money received from the manufacturers, it would make up the loss, and possibly produce a profit on the total business.”
Evidence was adduced by the Water Company that the city of Webster Groves used 301,763,000 gallons of water for municipal purposes in the year 1928, for which the municipality paid to the Water Company a meter rate of twenty-one and one-half cents per thousand gallons; that the eleemosynary institutions situate in St. Louis County used 301,000,000 gallons of water in the year 1928, or approximately 25,000,000 gallons per month, for which such eleemosynary institutions paid the Water Company, under orders of the Public Service Commission, a meter rate of twenty-one and one-half cents per thousand gallons, which rate was approximately the production cost to the Water Company, without allowance for interest or other investment charges; that The Laundry, Inc., paid to the Water Company in the year 1928 an average rate, based upon the existing schedule of rates applicable to the individual consumer in incorporated cities and towns, of 19.47 cents per thousand gallons of water used; and that the Overland Laundry Company paid to the Water Company in the year 1928 an average rate, based upon the existing schedule of rates applicable to the individual consumer in unincorporated communities, of twenty-six cents per thousand gallons of water used.
The evidence further tended to show that each complainant Laundry Company was using, and had been using for some time prior to the filing of their complaint, in excess of 500,000 gallons of water per month; that they were billed and charged by the Water Company for water used on the basis of the existing schedule of rates applicable to the individual consumer of water, and not upon the existing schedule of rates denominated “manufacturers’ rate;” that each of the complainants had made application to the Water Company to be placed under the schedule “manufacturers’ rate,” but that the Water Company had refused to so classify complainants; that the water purchased by complainants was used for drinking,
The evidence further shows that the laundry plants of complainants are operated daily, except Sunday, during the usual and ordinary hours of the business day, between the hours of 7:30 o‘clock in the morning and five o‘clock in the evening; and that water is used uniformly throughout those hours of operation, that is to say, the amount or quantity of water used is uniform for each hour of the business day during which complainants’ laundry plants are in operation. There is no еvidence herein that the Water Company is required, by reason of the nature and necessities of the complainants’ business, to furnish and deliver water to complainants at unusual hours of the day, or in unusual or in variable quantities, or under different pressure, or under operative conditions other than the Water Company furnishes and delivers water to those users and consumers enjoying the benefit of the “manufacturers’ rate.”
On June 14, 1929, a written report or decision was made and filed by the Public Service Commission, wherein the Commission reached the conclusion that “the complainants herein are not entitled to be classified as manufacturers, and that the complaint should be dismissed.” It was therefore ordered of record by the Commission “that the complaint of The Laundry, Inc., and the Overland Laundry Company against the St. Louis County Water Company be and the same is hereby dismissed.”
In due time, the complainants filed with the Public Service Commission a written application for a rehearing, setting forth specifically the grounds upon which the complainants deem the decision and order of the Commission to be unlawful, unjust and unreasonable. On June 28, 1929, the Commission made and entered of record an order overruling and denying complainants’ application for a rehearing. Thereafter, and in due time, the complainants applied to the Circuit Court of Cole County for a writ of certiorari or review, which writ was duly granted by the Circuit Court of Cole County. The proceeding was duly heard by the Circuit Court of Cole County, upon the record and evidence as certified by the Public Service Commission, whereupon the Circuit Court of Cole County, on January
After an unavailing motion for a new trial, the Public Service Commission was granted an appeal to this court from the judgment of the circuit court.
The single issue, or question, involved in the instant proceeding is thus clearly and pointedly stated by complainants’ counsel at the hearing before the Public Service Commission: “I represent two laundries in St. Louis County, the Overland Laundry Company, which is incorporated, and The Laundry, Inc., also a corporation, and successor to the Maplewood Laundry Company. These laundries admittedly use more than 500,000 gallons of water per month, but they, however, have been billed at the rate of the ordinary consumer, and it is our contention that these laundries, being industrial enterprises and carrying on a business in which they use large quantities of water for industrial purposes, should be classified as manufacturers under this provision of the (scheduled) rates so as to receivе the manufacturers’ rate.”
The position contended for by the St. Louis County Water Company in opposing the complaint is thus clearly stated by its chief executive officer at the hearing before the Public Service Commission: “The rate asked for by the laundries, the manufacturers’ rate, has been in force and effect for a considerable number of years; in fact, the time dates back to the time when the Water Company was still operating at a deficit, without profit on its operations, and to the time when it was necessary to get a volume of business to continue in operation. This rate, referred to as the manufacturers’ rate, was not intended, and never has been, and was never intended to be, an industrial rate, but only a manufacturers’ rate, for the particular purpose to build up the sales of the Water Company to the volume that would eventually make the operations of the Company profitable. The rate was put into effect to induce the Wagner Electric Manufacturing Company and the Fulton Iron Works Company to locate their plants in St. Louis County and take water from this Company, with the idea that the manufacturer employs hundreds of men and would bring sufficient business with it, which, paid for at the highest rate of the block (meter) schedule, would give a large volume of business; so that, while there was no profit in the manufacturers’ rate, or profit on the water sold to the manufacturers, the other business brought to the Water Company, by reason of
As we view the written complaint of the two laundry corporations, filed with the Public Service Commission as the basis and foundation of this proceeding, it is not a complaint “as to the purity, pressure or price of water,” within the provisions and meaning of
The Public Service Commission dismissed the complaint of the two laundry corporations herein because the Commission was of the opinion that the nature or function of complainants’ business, which is that of laundering soiled clothing and fabrics, does not bring the complainants within the technical and precise definition of the term “manufacturing purposes,” as such term is used in the schedule of rates denominated “Manufacturers’ Rates,” as filed by the St. Louis County Water Company and approved by the Public Service Commission. It is urged by the appellant, Public Service Commission that, “in the common understanding, the function of a laundry is to make clothes clean, rather than to make (i. e., manufacture) clean clothes,” and that the business of a laundry is at most a mere service, and not in any sensе a manufacturing process whereby raw or partly fashioned materials are completely or partly changed and converted into finished commercial products. The appellant, in support of its decision and order herein, cites a number of judicial decisions,
Unlike the character and nature of the various statutes and constitutional provisions involved in the several decisions cited by appellant, the Public Service Commission Law of our own State has been uniformly held and recognized by this court to be a remedial statute, which is bottomed on, and is referable to, the police power of the State, and under well-settled legal principles, as well as by reason of the precise language of the Public Service Commission Act itself, is to be “liberally construed with a view to the public welfare, efficient facilities and substantial justice between patrons and public utilities.” [
The Public Service Commission is an administrative agency or committee of the Legislature, and as such is vested with only such powers as are conferred upon it by the Public Service Commission Law, by which it was created. [Railway Co. v. Public Service Comm. (Mo. Sup.), 192 S. W. 460, 462; Lusk v. Atkinson, 268 Mo. 109, 116; Public Service Comm. v. Railway Co., 301 Mo. 157, 165; State ex rel. v. Public Service Comm., 308 Mo. 359, 372.] Among the various powers conferred upon the Public Service Commission by the Public Service Commission Law of our State is the “power to require every . . . water corporation . . . to file with the commission and to print and keep open to public inspection schedules showing all rates and charges made, established or enforced or to be charged or enforced.” [
Since the regulation and fixing of rates or charges for public utilities, and the classification of the users or consumers to whom such rates or charges shall be applicable, is primarily a legislative function, it follows that the Public Service Commission, which is purely and simply an administrative agency or arm of the Legislature, is exercising a legislative or quasi-legislative function in the performance of those powers which have been conferred upon it by the Public Service Commission Law, among which are the powers to regulate and fix rates or charges for public utilities, and to classify those users or consumers to whom such rates or charges shall be applicable. Such classification, in order to be valid, must comport with the rule or principle of sound legislative classification. The rule is thus clearly stated by this court, en banc, in State ex inf. v. Hedrick, 294 Mo. 21, 74: “The basis of sound legislative classification is similarity of situation or condition with respect to the feature which renders the law appropriate and applicable. A law may not include less than all who are similarly situated. If it
Again, in Ex parte French, 285 S. W. 513, 515, this court, en banc, thus announced the rule of legislative classification: “A classification for legislative purposes must rest upon some difference which bears a reasonable and just relation to the act in respect to which the classificatiоn is proposed. It cannot be an arbitrary classification. The Legislature may pass laws applicable to a particular class of individuals, but such laws must bear equally upon all individuals coming naturally within the class. The Legislature may not classify by characteristics or qualities which might distinguish individuals unless that distinction applies to the particular matter under consideration.”
It is significant that, in enacting the Public Service Commission Law, the Legislature (apparently having in mind the aforestated rule or principle of sound legislative classification) put into the Public Service Commission Law the following express provisions and requirements: “No . . . water corporation or municipality shall directly or indirectly by any special rate, . . . or other device or method, charge, demand, collect or receive from any person or corporation a greater or less compensation for . . . water, or for any service rendered or to be rendered or in connection therewith, except as authorized in this chapter, than it charges, demands, collects or receives from any other person or corporation for doing a like and contemporaneous service with respect thereto under the same or substantially similar circumstances or conditions.” And, further: “No . . . water corporation or municipality shall make or grant any undue or unreasonable preference or advantage to any person, corporation or locality, or to any particular description of service in any respect whatsoever, or subject any particular person, corporation or locality or any particular description of service to any undue or unreasonable prejudice or disadvantage in any respect whatsoever.” [
The Public Service Commission of this State had a somewhat similar question to deal with and determine upon the complaint of the Civic League оf St. Louis et al. v. City of St. Louis, 4 Mo. P. S. C. 412, wherein complaint was made against a schedule of
Speaking to the subject of unjust discrimination by public utility corporations in respect to ratеs and service, the United States Supreme Court, through Mr. Justice BREWER, thus announced in Western Union Telegraph Co. v. Call Pub. Co., 181 U. S. 92, 100: “All individuals have equal rights both in respect to service and charges. Of course, such equality of right does not prevent differences in the modes and kinds of service and different charges based thereon. There is no cast-iron line of uniformity which prevents a charge from being above or below a particular sum, or requires that the service shall be exactly along the same lines. But that principle of equality does forbid any difference in charge which is not based upon difference in service, and even when based upon difference of service, must have some reasonable relation to the amount of difference, and cannot be so great as to produce an unjust discrimination.”
It is indisputable under the evidence herein, as adduced at the hearing of the complaint before the Public Service Commission, that there is no dissimilarity or differenсe in the service of furnishing and supplying water to the ten customers of the Water Company who enjoy the benefit of the rate schedule denominated “Manufacturers’ Rates” and the service of furnishing and supplying water to the complainants herein. The sole reason or ground suggested by the Water Company in justification of the manufacturers’ rate schedule, and in justification of the single and select classification of water users claimed to be made thereby, is that manufacturing establishments ordinarily employ a considerable number of employees, who are likely to be or to become customers of the Water Company as individual users of water furnished by the Water Company under the schedules of rates applicable to the domestic, or household, customer and user of water. Such a classification of water users obviously has no reasonable foundation bottomed upon any dissimilarity or difference in service or operative cоnditions, but rests solely upon a possible pecuniary advantage to the Water Company in which the various customers and patrons of the Water Company, at most, are only indirectly and remotely concerned. Furthermore, it would seem to appear under all the evidence herein that, upon the single reason or ground of classification asserted by the Water Company, the complainants, as the employers of a considerable number of individuals who are likely to be or to become users and consumers of water furnished by the Water Company, stand upon as favorable a footing as do other employers of labor who enjoy, and to whom is extended,
It is observable, in passing, that the complainants herein pray the Public Service Commission to order and require the St. Louis County Water Company to account to complainants for the moneys in excess of the manufacturers’ rate which complainants, under protest, have been compelled to pay to the Water Company since April 1, 1924, and to refund to the complainants the excess moneys so paid, together with interest thereon. The pecuniary relief so prayed by complainants calls for the exercise of a judicial function, by the entry of a judgment or order for the recovery of money, which function is exclusively exercisable only by the judicial branch or department of our state government. The Public Service Commission is an administrative body only, and not a court, and hence the Commission has no power to exercise or perform a judicial function, or to promulgate an order requiring a pecuniary reparation or refund. [Lusk v. Atkinson, 268 Mo. 109, 116; State ex rel. v. Public Service Commission, 303 Mo. 212, 219; State ex rel. v. Public Service Comm., 19 S. W. (2d) 484, 486.] It therefore follows that the Public Service Commission has no power or authority to determine or to award the pecuniary relief prayed by complainants herein.
For the reasons above stated, the judgment of the Circuit Court of Cole County herein must be affirmed, and it is so ordered. Ellison and Ferguson, CC., concur.
PER CURIAM: — The foregoing opinion by SEDDON, C., is adopted as the opinion of the court. All of the judges concur.
