Evening star., 1932-10-08
ACTION BY COURT
DELAYS REDUCTION
OF PHONE RATES
Writ Will Stay in Force Until
Case Comes Up in z or
3 Months.
$4,000 MONTHLY LOSS
TO COMPANY is BASIS
Order to Credit Depreciation Re-
serve 5 Per Cent Interest a
Year Also Halted.

Justice Peyton Gordon in District
Supreme Court today granted a tenn
porary injunction restraining the Public
Utilities Commission from reducing tele-
phone bills in the District 10 per rent
The injunction will remain in force
until the case can be heard on its
merits. matter of two or three months.
Justice Gordon granted the petition
for the temporary order filed nv m.
chesapeake & Potomac Telephone Co.
on tne ground the loss to the company
from putting the order into effect vouId
amount TO some $4,000 per month.
"hl4e the saving to each consumer
would average but so cents Der month.
1hIs loss to the company. he held.
would be certain, great and irrenara-
Die'" and equity courts always will en-
JOIN such loss where the questions
presented in the suit are grave and
difficult.
Orders Suspended.
The temporary injunction also pre-
vents the commission from putting into
effect its order that the company credit
It's depreciation reserve with S per cent
interest per annum, although the COM
mission argued this order would result
Ii no loss to the company whatsoever,
Both orders had been suspended bv
the commission at Justice Gordon's re-
quest while he studied the case, which
was submitted to him September %.
Inc issues to be decided when the
suit comes on for final hearing are
Wnether the property of the company
is being confscatei by the orders, which
hx the valuation OF the COMPANY at
s29.0OO.000 and its allowable rate of re-
turn on this value at per cent. The
company claim value of s3S000 900
and the right to earn not less than 7
per cent
Bond Fixed at 500, 900.
Justice Gordon later fixed the bond
required Of the telephone company at
100000 to indemnify subscribers for
any loss in the event the company
does not prevail in the final hearing
OF its hight against the rate reduction.
The hgure was arrived at during
conference between counsel for the
company and for the commission in
the chambers of justice. The privi-
lsge Will be reserved to have TIE bond
1ncreasd II the hearing be protracted
beyond two months
Unoer the law. appeals from the Pub
lie Utilities Commission are given pre-
cedence over all other business of the
court and William A. Roberts. counsel
Tor the commission, said he will ask
dpT a speedy hearing as soon as he Is
able TO prepare the formal answer of the
commission to the injunction proceed
ings.
Text Of Opinion.
The memorandum opinion reads:
The Public Utilities Commission Of
the District of Columbia by its order
No. 1912. dated September Is, 1882, in
formal case No. 238, prescribed that on
all bills rendered by plaintiffs for tele-
phone exchange service to be furnished
after September 80. 1882, except bills
for private branch exchange service,
there shall be shown and allowed a dis
count OF 10 per cent, and by its order
No. 1913 of September II. 1892. formal
order case No. 238 directs that the
plaintiff % hereafter at the end Of
each month shall credit to its 6eprecia-
ton reserve sum equal to interest at
the rate of 5 per cent per annum upon
the amount of the said depreciation
reserve carried in its account at the
beginning of the same month: (2) the
amounts as at present determined and
accrued monthly for depreciation and
charged to operating expenses will be
diminished by the amounts Of the sums
added to the depreciation reserve as set
forth in section l Of this order
"On September 90. 1882. the commits
sion postponed the effective date of or
der No. 1919 from September 80. 1892
to October 10. 1882. On September "a,
1882. plaintiff filed the bill in equity
in this case under and in accordance
with the provisions of the act creating
the Public Utilities Commission, praying
that Order No. 1912 and the discount
ordered therein be decreed to be con-
fiscatory and void and in violation Of
plaintiffs constitutional rights and that
said order be vacated and set aside:
that order No. 1913 and the rules and
regulations prescribed thereby be de-
creed to be confiscatory and void and
contrary to the provisions of the inter-
state commerce act; and that the COM
mission be enjoined pending final hear
Continued on Page 2, Column ~