Daily Kennebec journal., 1919-05-03
PHONE Rates
Intra-State Increases
Defended
In Brief Filed by Government in Su-
prems' Court-Also Declares South
Dakota and Massachusetts Appeals
Should Be Dismissed a. Y. s. Has
Not Given Consent to Suits


Not Given Consent to Suits
Washington, May 2-Increases Of
intra- state telephone toll rates by the
postmaster general was defended in
brief filed by the government today
in the Supreme court in connection
with pending appeals from South Da-
kota and Massachusetts, courts. The
state authorities in their appeals have
contended the increase was undue in
reference with their police powers.
Arguments in the proceedings will be
heard next Monday.
The government in its brief de-
clares that 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 it's consent and
should be dismissed. The govern
ment also contends that in taking
over control of the telephone systems
Of the country the president placed
them in the hands Of the postmaster
general as his representative, under
the broad powers given him by the
resolution to manage as he saw fit
and they thus were in effect added to
Shnoovnn G.
much a part of the means of con-
veying news or communication as
the mail"
THE regulation of rates." the brief
said, las an exercise of power it is
the assertion of right to control a
private business affected with a pub
lie interest and subject to a public
use. so as to subject the private prop
erty to the public service upon the
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 prices for
the property itself if the fee was be-
ing taken"
The government brief, prepared by
Solicitor General 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
only the police regulations of the
state do not affect rates made by
the government itself, but the police
power does not extend to such
subject.
The public" the brief adds, "has
acted and fixed the rate when the
public officer of the United States
fixes it.
1T seems clear that if Congress had
intended to confer upon the states
the power to regulate the rates at
which the United States will furnish
telephone service, it would not have
expressed that intention by reserva-
ton to the states of their police reg
ulations."
When a private corporation leases
for however short a time, the prop
erty of another such corporation it
is certainly with the expectation of
making enough from it's operations
to pay the rental and even a profit
to itself. 1t was therefore to be sup
posed that the government would eX-
pect to charge in the operations of
these properties sufficient rates to
pay for the increasing expenses of
operation and discharge the rental
which it was to pay. 1t would have
been legitimate to have even contem-
plated some additional sums to re-
imburse the government for the time
of public officers consumed in this
work.
The government contends that the
state public utilities commissions
were never authorized when created
by the states nor since to deal with
the rates Of public utilities operated
by government agencies.