The Detroit times., 1910-09-30
CITY TO REGULATE
PHONE CONCERNS
New Constitution Confers Express
Authority, Corporation Counsel
Tells Committee.

That the common council has power
TO regulate the rates and service OF
the telephone companies doing bust
ness within the city. In addition TO
the police powers now exercised as to
manner OF constructing lines. was de-
clared by Corporation Counsel Hally
In an opinion given, Thursday, TO Aid.
George II. Ellis, chairman OF q spe-
cial committee appointed To look into
the question. The opinion means
that the city will have the power 10
enforce a reasonable rate OF tele-
phone rental. and such a force OF
service. Telegraph companies will be
affected TO q limited extent. the diff
ference being that their business IL
mostly between Detroit and other
cities, and the city's powers apply
only TO operation within its borders.
Chairman Ellis has called a meet
ing OF his committee for next Mon
day, when steps will be taken toward
securing by ordinance, the Dement'S
pointed out In the opinion.
The corporation counsers opinion
reviews the situation. prior to the
adoption of the new constitution, stat
ing that under an act OF 1888. tele-
phone companies had the right to In
wade any street, highway or public
place In the state. the power OF a
city being confined to police regula-
tions. an effort by the city Of Benton
Harbor 10 make further regulations
having been declared illegal Under
the law, cities were permitted to rea-
sonably regulate the manner, char
acter and place OF constructing pro-
posed lines, and the other regulations
were left To the legislature. How
ever, section %. of article s. Of the
revised constitution. provides:
No person, partnership. associa-
ton or corporation operating
public utility, shall have the right
10 the use OF the highways,
streets. alleys or other public
places of any city. village or town
ship for wires, poles. pipes,
tracks or conduits, without the
consent of the duly constituted
authorities OF such city, village
or township; nor to transact a
local business therein without first
obtaining q franchise therefor
from such city, village or town.
ship. The right Of all cities.
villages and townships to the rea-
sonable control Of their streets,
alleys and public places. is here
by reserved to such cities, VIII
lagos and townships.
This section is clear and unmts-
taxable grant Of power to cities. vii
lagos and townships" says the cor
poration counsel. 1T divests the leg
islature OF power previously re-
posed In and exercised by that body.
This grant of power concerns those
who may In the future operate ana
those now operating public utility
In the streets.
Not only must they obtain the
consent of the duly constituted au-
thorities,' to their occupation OF the
streets, but those who transact 10
cal business In the city must obtain
franchise from that city. The
broad power of regulation once held
by the legislature now belongs to tie
constituted authorities Of the locality,
and Is to be exercised by them in
fair and impartial manner. Whatever
the legislature could have done TO in-
prove the public service OF these en-
terprises or to render less burden
some their occupation Of the public
domain. may now be done by the local
authorities.
Both OF the telephone companies
are transacting a local business In
Detroit, and under this provision 1t
will be competent for the common
council to frame an ordinance for the
reasonable regulation and control OF
this business.
The proposed ordinance must In
no way interfere with the interstate
or long distance business conducted
by these corporations, and the regu-
lations must be such as will not un-
duly hamper the enterprises or In
anywise confiscate their property but
a reasonable rate and q reasonable
regulation may be imposed"
The opinion states that there Is
contract relation with the Home Teie-
phone Co. which may complicate the
regulation OF that concern. and that
the exact situation az regards that
company, must be decided In the
courts. AS to the Michigan company,
there Is less dificulty. a
Aid. Ellis says that he believes the
powers pointed out ir the opinion Will
enable the council to force much bet