to the existing utilities an incentive which will induce them voluntarily, without burdening this Commission or other governmental authorities to accord to the communities of this state those rates and that service to which they are in justice entitled, and to the new utilities we shall likewise hold out the incentive that on the discovery by them of territory which is not accorded reasonable service and just rates, they may have the privilege of entering therein if they are willing to accord fair treatment to such territory."

I believe that principle is sound and should be adhered to in this case, and I therefore find that public convenience and necessity require and will require the granting of the application of the California-Michigan Land and Water Company to exercise its franchise rights and serve water for domestic purposes and for irrigation to the residents and water users of that section or tract comprehended in this application now served by the Cribb-Brodek and Water Company. I recommend that the following order be issued:

ORDER.

The California-Michigan Land and Water Company having heretofore filed with this Commission its application under section 50 of the Public Utilities Act, for a certificate of public convenience and necessity and for permission to exercise its franchise rights and privileges under a certain franchise heretofore, to wit, on May 13th, 1912, granted to it by the board of supervisors of the county of Los Angeles, California, to construct, maintain and operate a distributing system for the purpose of supplying water for domestic purposes and for irrigation, to the residents and water users of a certain tract or section in Los Angeles County, California, known and described in this application as the CribbBrodek Tract;

And the case having been regularly heard, and it appearing from the testimony that the Cribb-Brodek Light and Water Company, which company has heretofore served and is now serving the said tract, has been remiss in its duty to

the public and failed to give to its consumers adequate service at reasonable rates, and that through such failure residents of the Cribb-Brodek Tract have been unable to secure water either in sufficient quantity or at reasonable rates, to improve their lands, while some have been compelled to arrange with other adjacent companies for water to save their crops and lawns, and that said Cribb-Brodek Land and Water Company has been repeatedly requested in the past to improve its service and reduce to a reasonable figure its rates for water for irrigation, but has ignored and disregarded such request;

And it appearing further that The California-Michigan Land and Water Company is in condition, financially, to install a system and serve the residents and water users of the Cribb-Brodek Tract, and that it has or can develop an ample supply of water for that purpose in addition to that which it will require to adequately serve other sections covered by its franchise or franchises, and that it has offered to serve water to the residents and users of the Cribb-Brodek Tract at a minimum monthly charge of two dollars ($2.00) for ten thousand gallons (equivalent to one thousand three hundred thirty-three and one-third (1,333 1/3) cubic feet), with a flat rate of three and one-fourth (314) cents per hundred (100) cubic feet for all in excess of the minimum, with which rate the consumers have evidenced their satisfaction by entering into contracts for the service.

Now, therefore, be it ordered, That The California-Michigan Land and Water Company be, and it is hereby granted permission to construct, equip and maintain a plant or system for the distribution of water for domestic purposes and for irrigation in the tract known and described as the CribbBrodek Tract in the county of Los Angeles, State of California; provided, that said California-Michigan Land and Water Company shall supply water to the residents and users of said tract at the rate of not to exceed two dollars ($2.00) per month for ten thousand (10,000) gallons (one thousand three hundred thirty-three and one-third (1,333 1/3) cubic feet) and three and one-fourth (314) cents per hundred (100) gallons for all water used in excess of the ten

thousand (10,000) gallons per month; and provided, further, that should said California-Michigan Land and Water Company supply any of its customers, regardless of where they are located, at a rate less than the rate above mentioned to be charged the consumers of the Cribb-Brodek Tract, then the rate to said consumers of said Cribb-Brodek Tract shall immediately be reduced to such lower rate.

The foregoing opinion and order are hereby approved and ordered filed as the opinion and order of the Railroad Commission of the State of California.

Dated at San Francisco, this 15th day of January, 1913.

MARYLAND.

Public Service Commission.

IN THE MATTER OF THE COMPLAINT OF J. WATSON THOMPSON vs. CAMBRIDGE GAS, ELECTRIC LIGHT AND POWER COM

PANY.

Case No. 496.-Order No. 1041.

Decided January 14, 1913.

Duty to Serve Small Consumers-Effect of Contract with Municipality Fixing Rate.

Upon complaint as to a charge of fifty cents per month for gas meters alleged to be in violation of a contract between the Town Commissioners of Cambridge and the defendant Company, under the provisions of which the Company agreed "to furnish gas to all private consumers at a rate not to exceed $1.50 per thousand feet," the Commission held that the claim of the Company that the complainant is not entitled to be served because he is a small user of gas is not in accordance with the practice of other gas companies, and that the contract between the Town Commissioners and the Company is controlling in this case. The mere filing of a schedule of rates with the Commission is ineffective to modify a pre-existing contract such as the one in question. After the expiration of the contract, the rates on file will become effective.

Ordered, That the defendant desist from charging a meter rental of fifty cents per month and furnish gas at a rate not exceeding $1.50 per one thousand feet as long as the contract with the Town Commissioners of Cambridge shall remain in force.*

OPINION.

HERING, Commissioner:

The complaint in this case was filed on November 18th, 1912, by J. Watson Thompson, of Cambridge, Maryland, alleging that The Cambridge Gas, Electric Light and Power Company is making a charge of fifty cents per month for gas meters. That said charge is made to users of gas, large and small. The complainant also states that this charge is

*Editor's headnote.

in violation of a contract which the Town Commissioners of Cambridge have with the said Gas, Electric Light and Power Company, under the provisions of which the Company agrees "to furnish gas to all private consumers at a rate not to exceed $1.50 per thousand feet."

And the complainant claims that while he is a small consumer, he is entitled to gas at the rate fixed in the contract and that the Company cannot legally call upon him to pay fifty cents per month for a meter.

The Company, in its answer, states that it removed the meter from the complainant's premises "because he was not a user of gas or a proposed user of gas, as such terms are commonly used and understood, or a user of gas or a proposed user of gas in such reasonable quantities that entitled him to demand a meter from the defendant and because complainant would not consent to pay the reasonable and uniform charge for rental of meters in such cases provided (such meter rental, however, was not in addition to any charge per one thousand feet for gas used) and prays that the complaint be dismissed."

A hearing was held on December 13th, 1912; both sides were represented and the case was fully heard.

The claim of the Company that because the complainant is a small user of gas and that therefore he is not entitled to be served by the Company, is not in accordance with the prac tice of other gas companies.

In the brief filed by the counsel for The Consolidated Gas, Electric Light and Power Company of Baltimore, in the case now pending before this Commission, they say upon this point: "This obligation is a most onerous one. It means that this Company must deal with anybody and everybody. It is not permitted to select and choose its customers. It must take the desirable and the undesirable, the profitable and the unprofitable alike. We all know that in ordinary business affairs merchants and manufacturers may refuse to deal with certain undesirable customers. No such option is allowed this Company. It will also readily be seen from the evidence that there is a fairly large percentage of consumers in both gas and electric busi