The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-06-30
RE-AFFIRMS NEW RATES
SOUTHERN BELL WILL TAKE AN
APPEAL.
EXCEPTIONS ARGUED BY SENATOR DANIEL
He Contended That the Act Creating The Cor
{ poraiion Commission Does Not Give
Authority to Make Tele-
phone Rates

The Corporation Commission declines
to change the telephone rates made and
promulgated by it on May 11th.
Yesterday morning the commission
heard argument on exceptions to the
rates filed by the Southern Bell and the
American Telephone Companies and yes
sertlay afternoon it oyer-ruled the eX
ceptions.
be taken from this ruling to the courts.
The telephone rates promulgated by
the commission last May ;fnd re-aftirm-
ed yesterday are as follows:
On and after the first day of June,
1899. ali telephone companies within
this State. whether incorporated or
otherwise, will be allowed a maximum
charge for rental of telephones, as fol-
lows, viz:
Place of business.
Special wire $4,000 per year
and party wire teach) 24.W per year
and jparty wire teach) 1900 per year
Residence.
Special wire $500 per year
and party wire teach) 14.00 per year
The Southern Bell Telephone Company
wal represented by Senator Joh:e w.
Daniel, Of Virginia. and Mr.. r. G.
Strong. of Raleigh; for the American
Telegraph and Telephone Company,
Mr.. A. 3. Andrews, Jr, appeared.
At the opening of the hearing permits
sion was granted by the commission for
counsel to file supplemental exceptions.
Senator Daniel then moved that a
copy of the record he produced. ami the
evidence ON which the commission based
the new rates be read.
To this motion Senator Daniel spoke
an hour, reviewing the exceptions he naG
filed and in which he set forth the fol-
lowing contentious against the new
rates:
/. That under the Corporation Com
mission Act no authority is given to
fix telephone rates, except for such com
panies as operate telephone Instruments
upon the message or toll system.
?. That the Southerm Bell Company
operates telephone exchanges, not rent
ing telephone Instruments or telephones,
and the jurisdiction of the commission.
sonable rates of charges for the rental
OF telephones"
;. That even if the commission had
power to fix the rates of such compa
MES, it was necessary first to have tes-
timony before it under the act of its
creation: that this was not done and
the order is therefore illegal and void.
4. That the General Assembly from
Al.
did not give the commission power to
make an arbitrary rate, and such a
gate is void.
). That the General Assembly could
not have given such power had it so
desired.
4. That the rates prescribed and fixed
by the commission are not just and rea-
sonable and are. therefore in violation
of the constitution of North Carolina
and the United States. i'll that it:
Il. Takes the property of the company
without compensation.
b. Deprives the company of its prop
erty without due process Of law.
c. Violates the act of Congress under
which the company is Incorporated.
On this showing Senator Daniel moved
that circular No. tthe one fixing tele-
phone rates. be rescinded.
This motion was Over-ruled by the
commission.
To this ruling Senator Daniel ez
cepted and announced that he would
submit his exceptions without argument.
Chairman Mcneil announced that it
was possible that the commission might
decide that the wording of the order
should be modified so as to conform
to the statute in accordance with the
exceptions.
Mr.. Strong argued that it was not