Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-10
ASKS COURT RELIEF
IN PHONE RATE RISE
Federation of Citizens Asso-
Citations Challenges Author
ity of Postmaster General.
SEEKS AN INJUNCTION

SEEKS AN INJUNCTION
Following weeks of elaboration,
during which time United States
Supreme Court decision was handed
down apparently d.sposing of the
issue it raises. the Federation OF
Citizens Associations today took its
long expected appeal to the courts for
relief from the increase in the local
telephone tariffs which was ordered
by the Postmaster General and went
into effect May last.
In bill for an injunction filed with
the District Supreme Court. officers of
the federation. in their own rights as
we'll as on behalf Of all the people of
the District. challenge the authority
OF the Postmaster General to increase
rates and the Oh esa peake and Potomac
neiephone Company TO collect them.
me court is asked to enjoin the coll
lection of telephone charges higher
IMAM those in force pr.or to the going
INTO effect of the new schedule on
May L.
The Postmaster Generals action ia
without warrant or authority OF
law. and amounts to and is a gross
usurpation of power in excess of even
coiorable lawful authority"
Action Is a Surprise.
coming after the Supreme Court
decision to the effect that the cabinet
member was within his authority in
changing telephone rates without
reference 70 NJ 10
SONS. surprise was expressed gener-
ally in official circles today over the
federation's action.
The citizens organization. however.
lnJects a new phase in it's bill in the
charge that the District rates are
discriminatory in that they are dis
proportionately higher than the rates
and charges exacted and paid by the
government of the United States"
Telephone rates, under the sanction
of the Postmaster General, were ad-
Tanced from 81 to IS a month for
unlimited service
AS soon as the President signs the
PHI restoring telegraph and telephone
utilities commission may revise the
tariffs. Otherwise. they will stand for
four months. when the original rates
will go int effect.
u Revise Upward.
All dlCAtlOnS AT the DlSCflCC
buildine strongly suggest that when
the tarif1s are changed by the COM
mission it will be a revision upward
instead Of downward.
1t is believed generally that the
longer action Is delayed by the COM
mission that long will local con-
sumers have the benefit of what are
declared to be tariffs insufficient to
enable the company to earn even
per cent on its valuation as estab-
llShed by the cOmmi SSion,
Some significant figures have been
laid before the commission recently.
company's plant and equipment. made
since the commissions valuation was
established, in 1916. now amount to
more than the original valuation it
self. This is the result Of the heavy
demands made upon the corporation
by the government during the war.
While the commission has made no
estimate, it is declared to be ex-
tremely probable that rates which
would permit the company to earn
even s per cent on its present valua-
ton would be in excess Of those now
charged.
The commissions valuation, effec-
ss.Sss. ss2.4s. At that time the value
OF the company's plant and equipment
was placed at $S.4s3.3ss.s4.
During 1917 additions made to plant
and equipment ran this total up to
y ~
ditions swelled II to $780, 73.30. ac-
cording to reports filed with the COM
mission. Additions made during the
first five months of the present year
amount to $4S1.640.
1t thus appears that the worth Of
the plant and equipment practically
has doubled during the past two
years, while no figures are given as to
the increase in operating cost. which
Is said to have been high.
Chairman Kutz this morning stated
that the commission had not decided
when it would resume the telephone
valuation inquiry. which was halted
General took over the company. The
commission is now bending It's effort
toward winding up the street rail-
way valuation cases, but will get to
the telephone matter with as little
delay as possible.
Five Sign Complaint.
The federation's complaint is signed
by five Of the citizens association
delegates to that body. They are
William B. Westlake. president OF the
Charles A. Baker. Jesse c. suter and
Lucius F. Randolph.
William NICK. Clayton. chairman OF
the public utilities commission Of the
federation; Wilton J; Lambert ess ana
torneys for the PLAINTIFF. The de-
PENDANTS are stated as the Chesa peake
and Potomac Telephone Company and
Albert Sidney Burieson, Postmaster
General Of the United States.
TIE complaint reviews the history
Of the taking over of the telephone
service by the federal officer and its
management under government super
vision. IL states that the rate in
crease order constituted a violation
of the property and contractural
rights of the plaintiffs and all other
users of telephones, and Is equivalent
to the taking of property without due
process of law. AS well as impairing
Existing valid contracts in violation
OF TIE Constitution of the United
States.
Charge Discrimination.
Commenting upon the suit filed to-
day. W. B. Westlake. president OF the
federation, said:
The fling of this suit is the re-
surt of long investigation and careful
consideration upon the part OF the
Federation of Citizens Associations
We believe that in the order OF the
Postmaster General promulgatinS the
new scale of telephone rates for the
District of Columbia there is discrim-
nation against the residents OF the
District in favor Of the federal gov
ernment and seek to set aside the
rates upon that ground.
The attitude of the federation is
no, simply one of opposing the new
rates We are willing to pay what