Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-02-05

substantially just. and amount to proper
compensation; and SO l should hold that
none OF these objections to this law Is
sufficient to warrant the court in holding it
invalid. If the result, however, is
that the rates so fixed are unreasonably
low as to prevent the company conducting
the business from receiving such compen-
sation as under the circumstances will be
just to 1t and to the public. the act will
be unconstitutional under the fifth and
fourteenth amendments.
The controlling question in. the case,
then. is this: Does this act prescribe rates
which will enable the defendant to receive
a reasonable reward for the skill, labor and
property required of 1t in the proper con-
duct of its business
The court then discusses what classes of
facts and circumstances are proper to be
considered in determining questions Of the
foregoing character. The earnings and ex-
penses of the defendant for a number of
years past are reviewed in the opinion. 1t
was claimed by counsel for the complain
ants that much larger number of SUBJ
scribers could at once be procured If the
defendant should observe the statute rates,
and that CORRESPONDENCE greater profits
would follow. Justice Barnard thinks, how
ever, that the population is SO largely COM
posed of people employed in the depart
ments and those officially connected with
the government, who would not generally
have telephones at their residences, that
the increase of subscribers cannot be re-
lied upon to such an extent as it might be
in other cities. The telephone business is
yet too young, in the opinion of the court,
to enable the making of calculations for
the future from which results can be re-
lably ascertained. AS a rule, the average
distance from the central Office in the
other cities where testimony was taken IS
much less than in this District. the court
states, and telephones of the Independent
companies, SO called, have no such advan-
tageous connections with long-distance
lines as those in the District have.
Matter of Profits Not Clear.
The companies furnishing the lower rates
have generally been in business only
short time, and 1t is not clear from the
evidence that they can make any profits
at the rates charged and at the same time
keep up the plants in good condition.
There are certain contingencies, accord
ing to the court, that must be anticipated.
Taking all differences in consideration,
there can be very little comparison, it is
held, which can be relied upon between the
several cities where the cheaper rates pre-
vail and this District and such testimony
cannot aid the court very materially in
ascertaining whether the rates fixed by the
act of Congress will afford just remunera-
ton to the defendant for the kind of SER
vice supplied in this District, under the cir
cumstances under which the business here
has been developed and maintained.
The claim by the defendant that it has
been for some time endeavoring to make
contracts on what is known as the meas
Barnard. He says it appears that this
method has been largely adopted in many
cities, and it is claimed that such system
of charging will solve the veXed problems
and Will largely remove objections caused
by inequality.
IF this is correct, says the court, ait
would seem only fair that any company
doing business here should have the right
to make such contracts. 1t would doubt
less be unfortunate in this city, the capital
OF the nation, to be obliged to have I'M
slightly poles, or housetop fixtures or sec
ond-class instruments or poor coustruc-
ton, or unsatisfactory service, if something
better could be obtained at rates that were
satisfactory and just.
Also a Misfortune.
1T would also be a misfortune to have
two Or more companies doing general
telephone business here Tt would not only
require two or more telephones in each
subscribers Office where it was necessary
for him to talk with the city generally but
the construction of condnies and lines would
keep the streets torn upi and Inconvenience
the public much more than to have the line
under the control of one company.
The. court cannot, however consider the
probable happening Of either of these I'M
fortunate conditions in deciding this case.
Congress and the Comnatssiofiers must de-
termine the policy to be pursued as to the
care Of the city and the number and char
acter of the corporations which may be
allowed to carry on the telephone business
In this District or whether the same shall
be carried on by the government itself
Without stating further reasons OF MAX
ing deductions from the yeluminous testi-
nony on other points, Justice Barnard
concludes, II am clearly OF the opinion that
this provision of the said act is unconstitu-
tional by reason of the fact That the rates
fixed thereby are unreasonably low for the
service and supplies to which it must be
considered they refer: and. ON the whole
case, must therefore decide that the in
junction pendente lite should be dissolved
and the bill dismissed
THE same decree should be made in all
this
The complainants, 1t is stated. viii take
further proceedings in the cause.
Discussed ON stock Exchange.
The purport Of the decision in the teie-
phone case was soon known in financial
circles today, and at the meeting of the
Washington stock exchange demand was
manifested for the stock Of the Chesape AXE
and Potomac Telephone Company, which
caused 1t to advance from 63 bid, which
was the quotation Saturday to II hid an