The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-08-19
|,,doe smith Mct'herson In Federal
court at Des Moines Granite
Temporary Restrain
Ing Order.
|HEARING ON AUGUST ~
iowa Telephone Company Declares it
Lost Money in keokuk Last
Year, Citing
Figures.

Judge Smith Mcpherson granted a
temuorary restraining order against
the city of Keokuk, restraining it from
snforcing the new telephone ordin-
.nce, at Des Moines In the federal
court yesterday. He also sets the
hearing for the application for a
temporary injunction to Keokuk on
August q at 9 a. m.
The Iowa Telephone company, the
complainant, asserts that under the
old rates 1t lost money during the
past fiscal year, that the city has no
right to regulate rates under the state
laws and that 1t interferes with in
terstate commerce.
The company Is represented by At
torneys Parker, Parrish and Miller,
and Hazen /. Sawyer The petition is
lengthy one setting out in full the
contentious Of the company
This act of the company Is the first
step In legal battle to decide the
right Of the city to enforce the
ordinance.
Especially does 1t set out that the
legislature has given Iowa cities no
right to regulate rates and that as the
ordinance would effect the interstate
toll lines OF the company it is an In
reference with interstate commerce.
Right in Federal Court.
Tho pnrnponrr ~. fo v,a<{tS1rE yf,,1r
the principal place Of business as Des
Moines, Iowa. and declares that the
amount involved exceeds $4,000. 1t
states its right to sue In the federal
court as follows:
i. Because the matter grows
out Of the compliments incorpor-
alton under the laws OF Iowa.
2. It wishes to prohibit the
taking of compliments property
without just compensation.
8. It wishes to prohibit the
taking of property without due
process Of law.
4. It is contrary to the acts
regulating interstate commerce.
Lost Money Last Year
The Iowa Telephone company was
formerly known as the Central Union
Telephone company which constructed
q station here in 1881, the Iowa Tele-
phone company succeeding it in 1896.
It gives as the reasonable value of the
property Of the Iowa Telephone COM
pany as $25O.0OO.
The gross revenue, it states, col
lected for the year ending June 80,
1913, was $55,331.S5 and the expense
during the same time were $55,64466,
leaving deficit of $312.S1. 1t asserts
that the new rates are unjust and I'M
reasonable.
It is declared invalid for the fol-
lowing reasons:
Reasons to Show 1t Invalid.
I. That 1t would deprive the COM
planant Of its property without due
process Of law, IN contravention to the
constitution of the United States,
section I, 18th amendment, In that
rates fixed are insufficient to afford
reasonable return to the company on
the capital Invested or as under the
circumstances 10 just or fit to II or the
public.
2. X Is Invalid because 1t seeks to
impair obligations Of a contract be-
tween the complainant and the state
o. Iowa In contravention to section 10
o. article ! of the constitution Of the
United States, rights acquired by laws
Of incorporation and building Of the
plant.
8. Because the state of Iowa has
never by any legislative act author
lzed and empowered municipalities OF
Iowa to fix and regulate the rates o,
Telephone companies.
2. Because II seeks to control and
regulate Interstate commerce carried
on by complainant and prohibits use
~ such commerce except In manner
prescribed by the ordinance, this lr
contravention to section 8 of article
OF the constitution of the unltec
states comforting power upon congress.
% regulate commerce among the sew
cral states.
Order Asked For.
me company asked for a temporar!
restraining order and Injunction, de
caring the city was about to enforce
.ae ordinance at great and irrepar
aole loss to the company.
Judge Mcpherson grants the tenn
porary restraining order and sets tn,
nearing for the temporary injunction
"a mis- order the defendant. its OF
hcers' agents, employees and citizens
are restrained from putting into ef
.ece the provisions OF the said ordin
ance.