The sun., 1919-05-03
US. ASSERTS RIGHT
TO FIX WIRE RATES
Contends That Telegraph and
Telephone Are Part Of
Postal Service.
REPLIES TO THE STATES
Brief Filed in Supreme Court
Says Police Powers Are
Not Involved.

wAsHrsGToS, May 2.-1hctease of in
trastate telephone toll rates by the
Postmaster-General was defended In a
brief fled by the Government to-day in
the supreme Court in connection with
pending appeals from South Dakota and
Massachusetts, courts. The state a,,-
thorities in their appeals have contended
the increase was an undue interference
with their police powers. Arguments
IN the proceedings will be heard next
Monday.
The Government In It's brief asserts
the suits Instituted by the South Dakota
and Massachusetts authorities to re-
strain the ACKNOWLEDGMENT from in
creasing the rates were in reality
brought against the United States With
~; its consent ard should he dismissed
Tire Government also contends that in
'akins over control Of the telephone
sysiems NJ the country the President
Placed them IN the hands OF the Poet
'Castor-Geueral as his REPRESENTATIVE
under the broad power given him nv
The resolution to manage as he saw
H,,' and they thus were In effect added
70 the postal service and became as
much part OF the means of conveying
news or communication as the mail"
The regulation Of rates" the brief
said. as an exercise Of power IA the
assertion OF light to control n
private business, affected with a
public interest and subject to a
public use, so as to subject the
private property to the public service
upon the payment Of just compensation.
To this end, in order that the private
right Of way may not be asserted to ex-
tort undue compensation for use. the
power is exercised TO regulate the price
for use just as 1t might be to reEulat e
the price for the property itself II the
fee was being taken.
The Government belief, prepared by
SolicitorGe 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
ocntrol, 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 a subject.
The public" the brief adds. has
acted and fixed the rate when the pub
lie officer of the United States fixed IT,
TT seems clear that II Congress had
Intended TO confer upon the states
re power 10 regulate the rates at which
t1c United states will furnish tele-
phone service it would not have ex-
'.'H7'l 'i'hN i'IltlllipH ny u RESERVATION
TO the States OF their police regula-
tons
When n private corporation leases
'cr however short time. the property
- 9nother such corporation, II Is GER
tainlr with the expectation of making
CROUCH from IT'S operations to pay the
entail and even profit to itself. II was
therefore to he supposed that the Gov
ernnent would expect to charge in the
oHe' atoms of these properties sufficient
'ateS TO pay for the increasing expenses
Of operation and discharge the rental
which 1t was to pay 1t would have
been legitimate to have even contem-
plated some additional sum to reimburse
the Government for the time OF public
officers consumed in this work"
The Government contends that State
pubic utility commissions never were
authorized when created by the States
no: since TO deal with the rates OF pub
.:c utilities operated by governmental
agencies