Evening star., 1915-06-18
D. c. COURT REJECTS
FLATPK0NE RATES
Justice Mccoy Denies In
junction to Prevent Their
Cancellation.
MEASURED SERVICE HELD
TO BE LAWFUL CHARGE
Jesse L. Heiskell Loses Suit to En-.
force Old Contracts Made by
c. & P. Company.

Court rendered an opinion this after.
noon denying a temporary injunction
to prevent the Chesapeake and Poto-
mac Telephone Company from cancel
ing contracts for fiat rate bushes:
service. The injunction was sought b.
Jesse l.. Heiskell. as representative Of
an association of business houses
which were being furnished unlimited
service at fiat rate.
The public utilities act forbids dis.
eliminating rates and provides a pen
atty. The telephone company at the
passage of that act had in operation
lSS contracts for fiat rates to business
houses and $500 for measured" serv-
intention to discontinue the fiat service
and sought to have the plaintiff enter
into contract for measured service.
This he declined and brought suit to
enjoin the discontinuance of service
claiming that the company had no righ,
after the passage of the public utilities
act to discontinue his contract
Justice McCoy's Opinion.
Justice Mccoy says:
The public utilities act requires
public utilities to furnish adequate
services at reasonable and non dis
crimnatory charges. 1t provides for a
valuation by the commission of the
properties of the public utilities evil
IDENTIFY for the purpose Of enabling the
commi ssion to determine what serv
ices and rates are reasonable.
THE act forbids the collection OF
mentioned in the schedules which it re-
quires to be flied. and forbids also un
just discrimination, fixing a penalty
for violation of either of these pro-
visions. 1t contains numerous other
provisions common to such laws which
need not be enumerated.
The public utilities act is section s
of the act making appropriations for
the District of Columbia for the fiscal
year ending June, 1914, and the section
is divided into numbered paragraphs
The decision of PLAINTIFFS motion turns
particularly on construction OF
paragraphs twenty-four. thirty and
ninety-four of the section. There were
rates fixed by statute and rates not so
fixed when the act was passed. The
rates in question here were not statu-
tory rates, but those fixed by the de-
fendant.
TT is not necessary to consider rates
other than those which the plaintiff
seeks to maintain for his own benef,
and that of others similarly situated
and the rates which the defendant Of
fers him. as the plaintiff does not
claim that he has a right to rates 9TH
present rates are denied him.
Congress Acted Knowingly.
"It must be assumed that Congress
knew not only that all rates were not
regulated by statute but also what the
situation was in the District of Colum
bia in regard to rates generally. there
fore it dealt knowingly with a situa-
tion In which rates for telephone serv-
ice were given to the plaintiff under a
contract OF many years standing and
of kind which for years 1t had de-
clined to enter into with any one
whereas others than the plaintiff and
those similarly situated II they wished
telephone service have been and now
are obliged to contract for measured
rates.
When Congress said that the defendant
should file schedules showing all rates
and which are in force at the time when
fled for any service which
shall be the lawful rates, tolls and
charges' did IT mean that both fiat
and measured" rates for the same
class of service were to continue sc
that a prospective user of a telephone
might demand either? Without regard
to the question of the reasonableness
of either kind of rate. or whether
charging both results in unfair dis
elimination. it is obvious that there is
a fundamental difference between them
and it would seem unreasonable to sup
pose that Congress meant to perpet-
uate both until the commission should
act, which would be in all probability
after a valuation of the defendants
property.
Measured Rates Are Lawful Ones.
THE rates offered tho plaintiff are
those which the defendant had "estab-
lished, and which were In force within
the meaning Of paragraph "a of the
section of tho act
Tho motion for an injunction is de-
nted and the rule discharged"
Attorney E. H. Thomas represented
the telephone users. Attorney H. B. F.
Macfarland appeared for the company