South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-05-04
j. :. DEFENDS
TELEPHONE RATES
Government Files Answer in
Supreme Court to Suits
From South Dakota.

WASHINGTON. May 3.-Increase
OF intrastate telephone toll rates by
the postmaster general was defend
ed in a brief filed by the government
Friday in the supreme court in con-
nection with pending appeals from
South Dakota and Massachusetts,
courts. The state authorities in their
appeals have contended the increase
was undue interference with their
police powers Arguments in the
proceedings will be heard next Mon
day.
The government in its brief de-
clares the suits instituted by the
South Dakota and Massachusetts au-
thorities to restrain the postmaster
general from increasing the rates
were in reality brought against the
United States without its consent
and should be dismissed. The gov
eminent also contends that in TAX
ing over control of the telephone
systems Of the country the president
placed them in the hands of the
postmaster general as his represent
alive. under the broad power given
him by the resolutions 10 manage as
ne saw MT" and they thus were in
effect added TO the postal service and
became as much a part of convey
ing news or communications as the
mail"
Is Exercise OF Right.
The regulation Of rates" the
brief said. "as an exercise of power
is the assertion OF a right 10 control
a private bushes. affected with a
public interest and subject 10 pub
lie use, so as to subject the private
property to the public service upon
payment of just compensation. To
this end. in order that the private
right may not be asserted TO extort
undue compensation for use. the
power is exercised to regulate the
price for use just as it might be to
regulate the price for the property
itself if the fee was being taken"
The government brief, p@pared
by Solicitor Gen. King, denies that
state police powers are impaired or
affected by not submitting the rates
fixed by the officers of the United
States to state control because not
state do not affect rates made by
the government itself, but the police
power does not extend to such a
subject
THE public" the brief adds, has
acted and fixed the rate when the
public officers of the United States
fixed IT,
lit seems clear that if the con-
gress had intended 10 confer on
states the power 10 regulate the
rates at which the United States will
not have expressed that intention by
a reservation TO the states of their
police regulations
Government Wants Pay.
when private corporation
leases, for however short a time, the
property of another such corpora
ton, it is certainly with the expec-
tation of making enough from its
operations to pay the rental and
even a profit 10 itself. 1t was. there
fore. to be supposed that the govern
ment would expect to charge in the
operations of these properties suffi-
cient rates to pay for the increasing
expenses of operation and dis
charge the rental which it was TO
pay. 1t would have been legitimate
TO have even contemplated some ad-
ditional sum 10 reimburse the gov
eminent for the time of public Off
GERS consumed in this work.
The government contends that
state public utility commissioners
were never authorized when created
by the states nor since TO deal with
the rates of public utilities operated
by governmental agencies