Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-01-29
TELEPHONE Rates

asked the following:
II notice commissions in some two or
three states have begun some kind OF
proceedings to prevent the collection OF
the new telephone rates and any change
in other state rates. What does the
Maine Commission propose to do along
these lines"
In reply the chairman outlined tue
matter in this way:
After a considerable study and invcs-
tigation and after holding meetings with
the telephone companies in two cities in
the State recently. the matter rests In
our mind something like this-First.
what ought to be done: Second. what
can be done: You have no doubt no.
ticed that in two or three states at.
tempt has teen made to prevent the new
rates going into effect. In Massachu-
sets the commission attempted to sus-
pend the operation Of the rates, but
when Jan. 81 (the effective date OF the
rates. came each company, by direction
Of the federal government. put the new
rates into effect The MasSa chusettS
commission now proposes to have the
state courts attempt to enjoin the COM
new rates. Nobody knows what the re-
suit will Re.
I'm one or two other states somewhat
similar attempts have been made. anu
the postmaster.general has paid no at
tention whatever to state commissions.
and it is not expected that he will pay
any attention to the state courts. 6It
will very promptly make federal ques'
ton of all matters and will interpose the
claim that the attempt upon the part OF
state commissions and state courts 20
enforce state commission orders is in eF-
. feet a suit against the federal govern
1nent, which is prohibited by the federal
constitution and is not authorized oE
the resolution of Congress under whicn
federal control of telephones was as
sumed. This has been the position CT
the postmaster-general from the begin
ming, and in the Mackay Cable case. III
which no less prominent an attorney
than Charles T.. Hughes represented the
plaintiff. the federal court held that the
claim of the government was proper
and that the court was without jurisdlc-
ton to hear the parties
This being the situation, II the Maine
commission should undertake to issue
orders with reference to some or all OF
the small telephone companies and at
tempt to enforce such orders through
the courts, these companies would be
instructed to pay no attention TO our
orders and each such company would
necessarily be embroiled in some form
Of litigation which would not only be
annoying but would be expensive 10
somebody No one can find any exact
precedent which fits the existing Facts,
because at no time were conditions any
where near what they were at the time
the resolution Of Congress was passed
, and are at the present time. NO one
can Go more than predict, and one
, mans scientific prediction may be as
accurate and reliable as anothers.
THE postmaster-general claims that
under the resolution Of Congress au-
thority to assume full control. operation
and management Of the telephone lines
was given. and it was also required that
when such control was assumed ar
rangements for compensation of tine
companies must be made. NO fund was
created or authorized which was avail
able for the postmaster-general, and
his only source of revenue out Of which
to pay operating expenses and thlS
, guaranteed return to the companies was
the revenues obtained from the control
and operation. He therefore claims
that to obtain a definite revenue whicn
, shall he sufficient operate and pay
the standard return he must have fun
control, full authority not only to ini-
tiate rates but to continue them and
change them from time to time as Is
| demanded by the particular circum-
stances existent, and that II state COM
missions could interfere with such rates
i by either raising or lowering them he
could never be sure what amount would
/ he obtained by operation and be avail
able for the payment Of expenses and
! the returns. He therefore claims that
F! by proper implication federal control OF
T, all matters Of rates. services and prac-
tees was given TO the President and
through the President to him. and that
| the power OF the several states Ove.'
rates was suspended. 1t is claimed by
| the postmaster-general that this is the
resolution. that nothing In this act
: shall be construed to amend. repeal. I'M
! pair or affect existing laws or powers
/ of the state in relation to taxation or
the lawful police regulations OF the sew
eral states.' does not mean the same
| as would have been the result had the
words police powers been used instead
| of the words police regulations.'
"ln the cases thus far instituted in
the two or three states attorneys for
the postmaster-general have mashalie !
decisions Of various courts in support OF
! the above outlined contentious. Deci-
! sions opposed may be found. But untn
! the matter has been finally passed upon
! by the highest court in the land nobody
! can safely predict what the law will he
finally held to be.
Look at it in another way. Tho pc
Rod of federal control under the exist
! ing resolutions ends when the President
makes proclamation of tic ratification
Of peace treaties. This Is expected to
. occur in the early spring. say in May
Unless Congress extends the time the
period Of Federal control will then end
If We should start proceedings and
prosecute them as diligently az possi-
BILE and il the postma ster-general re-
sists, as he no doubt would do. and car
ries the matter through the various
courts TO the court Of last resort il may
be readily seen that no final decision
! could possibly be reached as carly At
either May or any other time this Yea :.
If federal control should cease while
|