Grand Forks herald., 1919-06-02
TELEGRAPH And
PHONE RATES
ARE SUSTAINED
Court Says There Was Au-
thority for interfering with
1ntra-state Rates.

Washington, June Increased
telephone and telegraph rates put into
effect last January 21 under an order
of Postmaster General Burleson were
upheld today by the supreme court.
The court held that under the joint
were taken over by the government
there was authority for interfering
with intra- state rates.
The court set aside South Dakota's
supreme court DEGREES enjoining the
Dakota Central and three other tele-
phone companies from increasing in
tra-state rates in compliance with the
postmaster generals order.
Federal court DEGREES permanently
restraining the postmaster general
from charging increased telegraph
rates in Illinois was dissolved by the
court.
Massachusetts, DEGREES dismissing
the state public service injunction
were affirmed and original proceed
ings brought by Kansas were dis
missed.
Authority of the postmaster general
to increase intrastate telephone and
telegraph rates as decided today by
the supreme court was involved in
proceedings brought from South Da-
kota, Massachusetts. Kansas and Illi-
nois and argued here on May and 6.
All grew out of Mr.. Burleson's order
placed in effect on January 81 last
under authority of the joint resolution
by which the government acquired
control of the wire systems, increas-
ing telephone intrastate toll rates
with the exception of the Illinois case
which involved increased telegraph
rates only.
Arguments of the cases in the su
preme court attracted wide attention
and attorneys general from a score
of states were present while briefs
as amici curiae were filed by the Ma
tional Association of Railroad and
Public Utility commissioners repre-
senting thirty-seven states, as we'll as
by the states Of Wisconsin,, Pennsyl-
vania and Ohio and also by the Pro-
tective Telephone association of Bal
timore, Nd. ..4
The South Dakota case resulted
! from iniunctions granted by the state
4 ,suprem e court restraining the Dakota
Central Telephone company. as vel
as three other companies in that state
from charging rates promulgated by
! Mr. Burleson. The proceedings were
| instituted by the state authorities an6
the state court in granting the in
functions held that the rates were
| illegal as they had not been approved
| Oy l1lO oSoIS OO@AN VI AeSAAA S~~ OS--H
missioners.
The government won the Massa'
chusetts case in which the state
courts dismissed injunction proceed
ings brought by the state public serv-
ice commission to restrain the New
England Telephone and Telegraph
company from placing the order into
effect. the court holding that the sui,
in effect was against the United
| h~1v ev1,< },
! out its consent. In that case the
state commission also contended thai
the rates were illegal as they hac
been placed in effect without the
commissions approval as required by
state statutes.
! The Kansas case was different from
I the others in that it was an origina
| proceeding brought in the supreme
| court to restrain the postmaster ger
eral from carrying out the provision:
| Of his order in that state on the
grounds that the rates had not beer
approved by the state authorities a:
provided by law and that they were
illegal and exorbitant.
The Illinois proceedings were orig
inally instituted by Postmaster Gen
eral Burleson, who sought to restrain
| state authorities from interfering witt
the enforcement of his order increas
| ing telegraph toll rates. A temper
ary injunction was granted, but wher
the case came up on its merits, Fed
\ eral District Judge Lands dissolved
the injunction and instead enjoinee
the postmaster general from placing
his order in effect. To permit al
appeal, Judge Landis granted an or
der continuing for ten day the tenn
porary injunction originally awarded
Mr. Burleson and withheld enforce
ment of his own injunction during