Economic Gas Co. v. City of Los Angeles

[449]

MELVIN, J.

By ordinance No. 22947 (New Series) the city of Los Angeles established a rate of eighty cents per thousand cubic feet as the amount to be charged for gas furnished by the Economic Gas Company, a corporation, to its patrons within the corporate limits of that city. The gas company, for the purpose of facilitating its collections and to save the expense of hiring collectors, made a rule that a discount of six and one-fourth per cent would be allowed to each consumer who would pay his bill at the office of the company on or before the tenth day of the month next succeeding that during which the indebtedness should be incurred. This action was one by which plaintiff sought to enjoin defendants from enforcing that part of the ordinance which prohibited the selling of gas at a rate less than that prescribed therein. Defendants demurred to the complaint; their demurrer was overruled; they declined to answer; and judgment was accordingly entered in compliance with plaintiff’s prayer, enjoining defendants from any interference with the granting of the said rebates. They have appealed from 'the judgment.

By the first section of the ordinance in question the rates to be charged by the various gas companies in the city of Los Angeles are fixed, that specified for plaintiff being, as stated above, eighty cents per thousand cubic feet. By section 2 it is made unlawful for any person, firm, or corporation furnishing gas in said city to charge, collect, or receive any compensation in excess of the rate fixed thereby for the year commencing July 1, 1911, and ending June 30, 1912. Section 3 is in part as follows:

“It shall be unlawful for any person, firm or corporation, either, as principal, agent, employee, or otherwise, to charge, demand, collect or receive any rate or compensation for gas supplied during the year commencing July 1, 1911, and ending June 30, 1912, to the city of Los Angeles, or to any inhabitant thereof, less than the rate fixed by this ordinance, unless an application for a reduction in such rate is made by the person, firm or corporation so supplying such gas, and the consent of the board of public utilities thereto is obtained in the manner hereinafter provided.”

It is unnecessary, for the purposes of this opinion, to state in detail the procedure required to invoke the action of the board of public utilities. Suffice it.to say that the board is