Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-10-28
TELEPHONE RATES
AS YET UNCHANGED
Corporation Commission Decides
City Council Lacking in
Authority.
DECISION WILL BE APPEALED
Only Question Presented One of
State or Municipal
Jurisdiction.
DECISION WILL BE APPEALED

In an opinion handed down yester-
day by Judge William f. Rhea, chair
man Of the State Corporation Commits
sion, and approved by Commissioners
Berkeley d. Adams and Alexander For
ward. the power TO Ak and regulate
the telephone rates TO be charged in
Richmond by the Chesapeake and Po-
tomac Telephone Company rests with
the commission and not with the City
Council. Even before the opinion was
rendered attorneys for the city and
company, served notice that they would
appeal the case TO the Supreme Court
OF Virginia. 1t will be heard at the
January session here and final decision
Lack of either implied or specific
auehority sSd by the Council to undertake
tract with the company is set forth
By Judge Rhea as the reason for the
legality Of the jurisdiction of the Cor
Of the Virginia Constitution sets forth
in part that >the commission shall
have the power and be charged with
controlling all transportation and
transmission companies doing business
in the state. in all matters relating to
the performance OF their public duties
and their charges therefor" the opinion
shows. Section 1873 of the Constitution
defines telegraph and telephone COM
panies to be transmission companies.
Telephone Company's Contention.
1t is the contention of the telephone
company that the righ, TO fix rates
belongs. to the Corporation Commits
sion. while the city claims that. under
the Constitution and statutes OF Nir-
g!ni la and the terms OF the franchise
under which the company operates in
s.fye. hH rates ties to be for
limits have been established by con-
tract between the city and the COM
cable without the consent of the city
Rhea.s in his research. found no con- con-
for this contention. which would tend end
TO deprive the state of the power OF
exercising its. superior authority in
ma making rates in the exercising of po-
The return of the telephone com.
the case. During the period OF Fed
eral operation and control, rates for
service we're materially increased by
order OF the Postmaster General When
the act OF Congress directing the re-
,s turn was passed on July II. 1919. it
speeGilhed neifSsd that h the existing rates es;
on or before June l6. 1919. were to
continue in force for n period not to
exceed four months after the act took
unless sooner modified by the public
authorities. State or municipal, having
controi OF and Jurisdiction over tolls.
Council Ordered Restoration.
and Potomac lines in Richmond to the
original owners, the Council and
Board OF Aldermen passed joint reso-
luton re-establishing the schedule of
rates agreed upon BY the city and tho
company in 1901. This schedule was
the one in effect here before the Fed
eral government assumed control of
the lines.
Present rates will remain in force
until the appeal for an increase in
rates is settled by the Corporation
CcmmlSSio ion. The hearing is set for
November 10: The telephone company
wants the tolls set by the Postmaster
General to. remain in force until the
question OF city or Corporation Com
mission authority is settled by the SUI
preme Court. II the court decides that
the city has authority to fix tolls. the
OF charges over those in the contract
with the city from August l.