Newark Natural Gas & Fuel Co. v. City of Newark

Citations

• 92 Ohio St. (N.S.) 393

Syllabus

<p>Municipal corporations — Ordinance fixing gas rate — Section 3982, General Code — Facts necessary to relieve company — Unreasonable rate — Just compensation determined, how — Effect of voluntary reduction of rate — Only existing conditions considered, when — Expiration of contract with producing company — Confiscatory rate determined by actual operation, when — Rights of company — Court procedure — Transcript of stenographic notes — Considered with bill of exceptions, when.</p> <p>1. A transcript of verbatim stenographic notes of testimony in the common pleas court may be adopted and used in the court of appeals by agreement of counsel, and if by proper attachment and reference made a part of the bill of exceptions, will not be stricken from the record, hut will be considered by this court.</p> <p>2. Before a gas company may be relieved from compliance with the terms of an ordinance fixing the maximum price for gas, which has been regularly passed in pursuance of the authority conferred by Section 3982, General Code, it must show that the rates so fixed are plainly unreasonable and will result in the taking of its property without just compensation.</p> <p>3. In determining whether the price fixed by such ordinance will yield just compensation, it should be ascertained whether the amount of net profits from operation at the prescribed rate will produce a reasonable return upon the value of the plant of the company at the time of the inquiry.</p> <p>4. The value of such property resting largely upon opinion evidence, the fact that the company prior to the passage of the ordinance in question had voluntarily reduced its rate to that thereafter fixed by such ordinance and continued the same for several years, may be controlling and justify' the conclusion that such rate is remunerative.</p> <p>5. Where the company affeoted by such ordinance is a distributing company only and procures the gas furnished under its franchise from a producing company upon a percentage ba