Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1921-07-28
Increased Telephone Rates Up
held by Federal Court.

Telegraph Co., was sustained in the
charging of increased telephone rates
as recently authorized by the state
railroad commission by an order
handed down by Judge II. A. NJ
Smith Of the Eastern district federal
court, the plaintiff in the case being
F. A. Miller of Huntsville, state SEN
ator from Darlington county. The
decision was handed down Thursday,
the railroad commission receiving a
copy of the order yesterday.
The case grew out of the fact that
the increased rates which had been
authorized by the railroad commits
sion and put into effect by the tele-
phone company were in excess of the
charges which the telephone COM
pany had contracted for when grant
ed the franchise to install its tele-
phones and operate its exchange in
Hartsville. Mr.. Miller %contending that
the company was bound. by the terms
of its agreement whatever the action
of the railroad commission. This con-
tention, however, was denied by
Judge Smith in his order, the COM
pany, he said, having no alternative
but to obey the orders of the railroad
commission, which he declares the
legal rate fixing authority of the
state.
The railroad commission, Judge
Smith pointed out, under state law
approved in 1904 has been given
Jurisdiction and supervisory power
yer all telephone lines, station and
exchanges in the state with the right
and power to fix and Regulate the
rates or tolls to be charged for serv-
ing thereby" This rate fixing authori-
ty invested in the commission, accord
ing to Judge Smiths order, gives the
commission the power to alter tele-
phone rates as it sees fit despite any
contract or agreement entered into
by the company with individuals or
communities since the passage of this
bill, however, exempts towns and
cities with which contracts had been
made prior to the enactment of the
law. This ~proviso, Judge Smith said,
does not pertain to the Huntsville
case inasmuch as the contract was
made in 1916.
Darlington Case.
The case was begun by a complaint
in the court of common pleas for the
county of Darlington, enjoining the
telephone company from charging
and exacting the increased charges.
The telephone company Immediately
filed a petition for removal to the
federal court, the order being granted
by Judge S. w. G. Ship, The order
was based upon diversity Of citizen
ship, the plaintiff being a citizen of
South Carolina and the defendant a
citizen of New York. MI Miller and
his attorneys at the hearing before
Judge Smith also made a motion to
remand the case to the state court.
This, however, was denied, Judge
Smith holding that the cause had
properly been removed to the federal
court.
One similar other case is now pend
ing against the telephone company,
but this is expected to be dropped
in the light of Judge Smiths order
which practically fixes the increased
telephone charges in all cities in the
state despite the fact that several of
the cities and towns have fixed lower
rates in contracts with the company
upon granting franchises. Judge
Smith suggests as the legal procedure
to secure lower rates an appeal to the
state railroad commission to recon
slider it's action granting the increase.
The commission, Chairman shealy
announces, is willing to hear such a
petition at any time that sufficient
facts may be secured to warrant any
change in the previous action, taken
after months of deliberation and sew
eral hearings on the company's pray
er for the increased charges.
Judge Smiths order follows in
part:
Judges Order.
Upon the merits from the undis-
puted facts, it appears that the town
of Huntsville entered into a contract
with the defendant, whereby it grant
ed the defendant the franchise for
y