The Birmingham age-herald., 1911-12-05
JUDGE CROW HEARS ARGUMENTS IN THE
 TELEPHONE CASE
Attorneys Plead For and Against Dissolution of
 Injunction
NO CONCLUSION
 WAS REACHED
Attorney Stokley Says State Does Not Need to Make Bond.
 Rosser Statement Oten
 Referred To

Referred To
 Nc conclusion was reached at spe- clal session of the circuit court held last night in the law library at which Judge J. C. Crow heard the arguments for and against the dissolution of ths Southern Bell Telephone company. A temporary injunction restraining the tlepehone company from increasing the rates was granted a few weeks ago and the hearing last night was on motion to dissolve.
 The discussion was lengthy and the hearing was continued until f:3o to- night, when the final arguments will be made.
 The attorneys for both sides of the controversy had gathered for the pur- pose of hearing arguments on dissolV- ing the injunction, and the southern Bell Telephone company. through ita attorneys, came along with sugges- tion that the company be allowed to proceed to put in force its new schedule of rates, after giving bond, satisfac- tory to the court, to guarantee to the public the return of the difference be- tween the old rate and the new, pro- vided the final outcome of the case now pending should go against them
 Attorneys E. H. Dryer. E. K. Camp bell and Leo P Oberdorfer appeared for the plaintiffs and Judge J. c. Rich and Attorneys H. F. W. Palmer and .. T. Stokley for the defendant com pany
 Prior to the meeting last night there hn4 Seen a preliminary hearing In ths -uit court room on the motion to
 ssolve the injunction. Owing to tho crowded docket Judge Crow decided that he would hear argument on the motion to dissolve at 1880 last even ing at the law library. g
 Surprise Sprung
 A surprise was sprung by Attor- ney Stokely who called the attention of the court to the fact that the in junction had been obtained by the state and that under the law. the state, un- Ike individuals, was not required to give bond. He then made the state ment that the Southern Bell Telephone company was willing to enter bond in an amount satisfactory to the court, which would guarantee to the public return of all amounts paid for serv- ice in excess of the rate now prevail Ing provided the company was allowed to put its new rates into effect and the entire case should be subsequently, de- cided against the company.
 One other element brought into the case last night was as to the right of the state to take this matter up and apply for an injunction. This question was brought up by Judge Rich, who de clared there was no statute on the books of the legislature of Alabama that re- ferred to the regulation of telephone rates. and that therefore the state was establishing a precedent at this time by applying for an injunction in the case of the City of Birmingham against the Southern Bell Telephone company.
 During the discussion a statement pre- pared by Expert Accountant George Ros- ser of Mobile was continually referred to. This statement, it appears, has never been offered in evidence before. It was prepared at the request of the commits sioners during last summer and covers the business of the Southern Bell Tele- phone company during the three years from 1908 to 1910 inclusive. The time covered by this statement was contin- ually referred to and 1t will undoubtedly play a prominent part in the final ar gument for a dissolution of the injunc- ton.
 In his remarks MT. Stokley advanced the argument that the defendant com pany had made complete answer to all the interrogatories advanced by the plain tiff. He reviewed the various bills that had been filed and denied emphaticaily that his company had any intention of buying the Peoples Telephone company He said his company had spent s1,50O, ,00C for the building of the local exchanges, exclusive of the toll service and had spent s1, 10000 more in new investments. The company's answer, he said, showed that exclusive of depreciation the net return mad been less than three and four tenths per cent and that the depreciation was approximately per cent. He de- clared that if the new rates had been in effect during the last three years that after allowing per cent for depreciation there would have been less than per cent profit.
 Want to Be Fair
 After dealing with many other points of the argument Mir Stokley declared that it was the wish of the company to be fair, and that the company believed Commissioner Lane to be fair He then made his proposition that the company would be ready to give the bond as here tofore stated
 In opening for the plaintiff Mr. Camp bell expressed his surprise at the argu- mept, saying that this was not the ques- ton they had gathered to answer, and that it was a different proposition to that which had been discussed previously. lie suggested it was not the province of tho court to allow the defen5Aat company to give bond and allow the company to have the use of the peoples money for all the length of time the case was pending He declined to admit that attorneys for the defendant company had answered the interrogatories of the plaintiff. He de- clared that the report made by MT Rossen was insufficient in that it covered only three years of the company's busi- ness. He said they expected to show that the company had made over per cent profit during the last three years. What they wanted to do, he said. was to send a man to Atlanta to examine the books of the company along specific lines Later, in response to question by Judge Crow. he said they would be ready tc send an expert to Atlanta within 10 days MT. Dryer argued the case along simi- lar lines and then MT Rich attacked the right of the state to interfere in the matter pending by seeking an injunction l He said it was the most remarkable piece | of litigation that he had ever expert l enced in that it was the first time g sovereign state appeared in private con 1 troversy. He challenged the plaintif tC | show that the state had any interest + | the ma atter at issue and said that suct an iniinction only tied up the company without any possible chance of indemnitv | Tis contention was combatted by Mr | Campbell and MT Obe~dorffer the Ia tte l conten1ing that there Is no power vestet | s, city that does not have it's ev'sterc in the state and that the city of Rirming | {nt,f .fa {ptn tv