Imperial Valley press., 1925-07-20
STATE BODY is
VICTOR BY [. A.
JUDGES RULING
Outgrowth Result of
Attempt to Raise
Rates

That the Southern Sierras Power
Company lost its suit brought
against the railroad commission re-
Gently to restrain it from interfer-
ing with the collection of increased
rates inImpcrial and Coachella
Valleys was evident today in Il COM
nanieation for tie railroad commits
sien headquarters as Follows:
Sustaining the contention of the
railroad commission in the action
brought against 1T by the Southern
s,icrras Power COMPANY, Judge
Paul Mccormick of the federal dis
tiict court for the southern district
Of California has granted the motion
OF the commission 5 attorneys to
dismiss the suit bought against it
the power company. The suit ques-
toned the matter of the commits
sion 5 jurisdiction, and its dismissal
is a distinct victory for the Califor-
mia regulatory body. The case rep
resented the most important attack
upon the railroad commission 3
jurisdiction and operation made dur
ing the last few wears.
'sThe company, which operates in
tie eastern and southeastern por-
tions of the state, asked the federal
court to annul two orders of the
railroad commission. one of which
l, 4 i
trie service upon its system, the
other denied an application for tenn
porarv rate increases The court was
asked to eHio:n the railroad com
mjssion from enforcing the collec-
tiCn of the present. schedule of rates
UPON this system and also to enjoin
the railroad commission and all
either persons from interfering in
any wav with the collection of "A
proposed new schedule of rates 10
Ter cent higher than the existing
rates, save in certain territory in
2nd around san Hernardino, where
tIjS company operates in competi-
ton with the Southern California
Edison Company.
The railroad eommis on. :.
through its attorneys moved that
this complaint be dismissed upon
thrgromd, among other things. that
the federal court did not possess lur-
isdietlon to grant the relief asked
in this complaint, and upon the
farther ground that the plaintiff
SHOULD exhaust its remedies under
tte state law before going to the
fc6eraI court. The commission also
took the position that since the util-
ity had itself voluntarily reduced a
large number of the rates fixed in
tie commission 5 order, this coma
panv could not properly attack
these rates fixed in the federal
coGrt, This position was sustained
by Judge Mccormick.
Appeal Is Probable
Had the plaintiff been success
ttl, according to the terms OF the
complaint, the consumers of this
electric system, particularly in the
Coachella and Imperial Valleys
would have been burdened with
/ large increases in rates. 1t is not
Known whether an appeal will be
taken by the company.
The matter was argued before
nudge Mccormick by Attorney Carl
|. Wheat OF the railroad commission
en- June -, 1925. -
Joe King, manager of the local
( branch of the Southern Sicrras Pow
i cr Company, was not IN town this
afternoon and it was impossible to
learn lust what the power conf
rauy 5 next step will be in the long
fight to secure higher rates. How
/ ever, it is quite likely the company $
/ legal department iii Riverside will
decide to appeal the case.
Attorney J. $, Larew, city attor-
ncy for FL Contro who represented
1T Centre at several hearings in Los
/ Angeles coincilent with the ease.
expressed much satisfaction when
tolG of the court 5 ruling, as well
as {. T.. Scott, who represented the
Associated Chambers of Commerce
in the fight at the preliminary
! hearings some time ago.