The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-02-21
RENTALS OF TELEPHONES.
DECISION OF THE INDIANA So
PREMR COURT
Aafrming the Right OF the State 10
Fix the Rates 10 Be
Charged.

INDIANAPoLIs, IED, February 90
Tie Supreme Court to-day sfiirmPd
the decision OF the Marion County
Criminal Court in the case of the State
vs. John +. Hockett, the issues in
volved being the various questions
that have been raised in connection
with the law passed By the Legislature
regul lting the rentals of telephones in
the state, reducing them from S. to So
a mouth, with corresponding reduc-
ton for services ID other towns. In
effect the decision is that the law 10
constitutional and that the extra
charges above So a month made by
the company for alleged service, etc.
are illegal, as by the word telephone"
the law meant all the appliances in
connection with the service.
The opinion in the case was written
by Chief Justice Niblack, who rules
against the company on all points
raised, and all the other judges con-
Cured.
On the point raised by the appel
liant that, as the various articles used
in the telephone service were all
patented under the laws of the United
States, the Legislature cf State had
no power to limit the price, use, fale-
or rental value of such articles, and
that, as consequence, all acts OF
State Legislature Of the class to
which the present law belongs are
imperative and ineffective. The opir-
ion says:
The ready and indeed inevitable
answer is, that the question thus pre-
scented ought no longer to be regarded
as an open question. There is re-
served and at the same time well
recognized power affecting their
domestic concerns, remaining 10 all
the States, which the government OF
the United States cannot aud has sell
dom attempted to invade. This power
| is sometimes denominated the police
power of a State, and embraces the
entire system of internal State regula.
ton, having in view not only the
prest walton Of public order and the
prevention of offenses against the
Sla'e, but also the prevention Of such
intercourse between the inhabitants
as il calculated to prevent cor fiict
of rights and to promote the interests
OF sll."
Continuing, the Judge says in regard
to telephone property: ut is now
well.settled legal proposition that
property thus devoted to public use
becomes Legitimate subject OF legisla-
tive regulation and control" and after
quo ting a number Of authorities in
support of this proposition, the opin-
ion continues: "The obvious deduc-
ton from what has been raid, IS well
as from the authorities cited, is that
the power of a Slate Legislature to
prescribe the maximum charge which
a telephone company may make for
services rendered, facilities afforded
or articles OF property furnished for
use in its business is plenary and
complete" On the other point
raised, i. g., the right of company to
charge separately for the various arti-
Giles used in the telephone service,
claiming that the rental fixed by law
did not apply to all OF them, the Court
saws: ain general sense the name
telephone applies to any instrument
which transmits sound beyond the
limits OF audibility, but since the re-
cent discovery the name is technically
and primarily restricted to an instru-
ment or device which transmits sound
by means Of electricity and wires
similar to telegraph wires.
In view Of the condition OF
things shown to have existed on
the 18th day OF April, 1885, We fee!
constrained to hold that the word
telephone as used lin the act Of that
date, was intended to designate an
apparatus composed of all the usual
and necessary instruments for the con-
venient and ready transportation OF
telephone messages, and not to a
single instrument only"
The local officers Of the company
are unable TO state what action will
now be taken. A meeting Of the
directory of the telephone company
will be held in Chicago on Monday,
when the decision will be considered!
1t will be several days before 1t ID
known whether the company will dis
continue the service, or continue
operations at the reduced rental.