Evening star., 1902-03-11
THE TELEPHONE CASE
ARGUMENT BEFORE THE UNITED
STATES SUPREME COURT.
Mr.. Worthington Speaks in Defense
Of the Company-Switchboa
Put in as Exhibit.

The Supreme Court Of the United States
was today occupied with the case of the
Chesapeake and Potomac Telephone Com
pany against Manning and others The ar
guments in this case began at 3:3O o'clock
yesterday afternoon when Mr. A. s. Worth
| ington, attorney for the telephone COM
pany, started his argument in defense Of
the telephone company. Yesterday after
noon his time was taken up by a state
ment Of the case and recital Of the his
tory Of the Chesapeake and Potomac Tele-
phone Company since its establishment In
the District of Columbia He reviewed the
judgments rendered in the lower courts and
cited many cases to manhattan the illegality
Of the law. which was passed by Congress
fixing the rates of compensation that the
company could charge it's subscribers.
When Mr.. Worthington resumed his argu-
ment this morning there was exhibited In
the court room switchboard such as is.
used IN branch telephone exchanges In or
der to illustrate the practical operations
of the telephone. He contended that
telephone exchange supplying reasonably
efficient service to all parts Of the District
could not be maintained and operated with
out loss at the rate fixed by the act Of
June 80, 1S9S He contended that the busi-
ness of the telephone company had been
economically conducted and that its books
OF accounts had been properly kept. He
said that these books of accounts and the
original vouchers had been thoroughly ex-
anlined by the most competent expert ac-
countants in the United States, and this ex-
ANIMATION showed that the necessary ex-
pense. per subscriber. of maintaining and
operating telephone exchange In this city
is far greater than the maximum rate fixed
by Congress.
Receipts and Expenditures.
Mr.. Worthington contended that the
showing Of average receipts and expendi-
lures made by the Telephone Subscribers
Association through their attorney was not
well based upon the facts in the case. He
denied the contention that expenditures
properly chargeable to construction have
been charged to maintenance He analyz-
ed the statements made by the expert.
Haskins, in order to maintain this conten-
ton. He said that the ordinary expenses
included in the Haskins statement must
have added to them an allowance for de-
probation and for extraordinary expenses
caused by storms, fires damage suits, and
other contingencies. In addition to the ex-7
penses, he said the telephone company Is
entitled to a reasonable compensation, and
this involved an inquiry into the value of
plant In this city. He went quite fully in
to the cost of telephone construction and
various appurtenancieS In relation to 1t.
He analyzed at length the opinion of the
Court Of Appeals on the question Of the
reasonableness Of the rates fixed by the
act Of June 80. 1888. He dwelt upon the
central office equipment as the subscribers
increase in number, maintaining that the
increase in the number Of subscribers in
creased the cost of conducting the service
in a greater proportion than the increase
of compensation by having numerous SUBJ
scribers.
more significant than all this direct tes-
timony," said Mr.. Worthington, '1s the
fact admitted by all that wherever tele-s
phone exchanges are known this rule OBJ
tains, that the fewer the subscribers the.
lower the rate"
He contended that the telephone company
any legislation that would cause a prac--
tical confiscation of it's property by being
foreign corporation from another state.
as it would have If it were incorporated by,
the Congress of the United States.
Legislation as to Rates.
He said that legislation by Congress in
relation to the rates provides no means for
changing these rates at any time in the
future. however unreasonable and unjust
they may become. In this legislation differs
from corresponding legislation everywhere
else. because in the acts of the state legis-.
latures. which have come before the Su-
preme Court involving this question. it will
be found that there is always provided
commission of some with authority to fix
rates and from time to time alter them. But
this law makes no provision for the dispro-
poruOnate increase or expenses ana the
consequent necessary Increase of rates
which would follow any considerable in
crease in the number of subscribers under
the conditions which it imposes. He con-
cluded by contending that Congress had
erred and defeated it's own purpose by fix
ing scale Of charges that If enforced,
would result in the ruin of the telephone
company, and for these reasons submitted
that the holding of the Court of Appeals
should be reversed and the case remanded
with instructions to dismiss the bill.
Mr.. Worthington will be followed by at
torneys for Manning and others favering
the uphofding of the decision of the Court
of Appeals. =