Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-05-31
which at last have received sympa-
thetic ear from congress-

which at last have received a sympa-
thetic ear from congress.
Credit i'm legislative halls for the
passage of this law belongs to the
Progressive group, cOnspicuously to
Senators Norris and Johnson, who for
decade have sponsored it, and to the
strength of the Roosevelt administra-
ton in forcing a favorable vote.
Franklin ID. Roosevelt, when COVER
nor of New York, just after much re-
scented decision in the New York tele-
phone case, made some very telling
comments on the injunctive power of
lower federal courts when he said:
THE recent decision of the federal
court in the southern district OF New
York permitting the New York Tele-
phone Co. draStically to raise its tele-
phone rates. brings to the fore IN q
striking way the whole question OF
interference 10y the United States courts
with the regulatory powers of our pub
lie service commission.
at means that hearings and tria'S
which rightfully should be held before
our public service commission or before
state courts are, by scratch OF the
pen, transferred to Il special master ap-
pointed by the federal court. The state
regulatory body is laughed at by
the utility seeking refuge with specia
master. who is unequipped ny expert
ence and training, as well as by stan
and assistants, to pursue that search
ing inquiry into the claims OF the COM
pany which the consuming public is en-
titled to demand. The special master
becomes the rate maker; the public
service commission becomes mere
legal fantasy.
"rhis power of the federal court must
be abrOgated.'
A Roosevelt controlled lower house
last Thursday ''abrOgated" it, in the
face of logged and persistent lobby
against the bill maintained by the
American Telephone and Telegraph
Co. and other utility interests.
The new law is calculated to end
the intOlerable delays in making
utility rate orders effective, which has
gone far to undermine faith in state
regulation. The Illinois Bell Tele-
phone case, decided VIGOROUSLY for
the people by the supreme court of
the United States on April 30, 1884,
was started in 1923-11 years before.
Many consumers have died, moved
away, and been lost track of in the
meantime
More prejudicial than the delay, ac-
cording to public authorities, is the
fact that the record made before the
state commission is not admissible in
evidence i'm the federal court. Months
or years of work may have been done
by the state commission but this must
all be duplicated again in federal
court. at great waste of time and en-
OrmOus expense, particularly to the
party who loses the case. 1t is said
that merely printing the supreme
court transcript in the Chicago tele-
phone case cost $4,000. The COM
/ pany will pay for it in this instance
because Chicago won, but only after
hundreds of thousands of dollars had
been spent for attorneys, engineers,
accountants, and experts.
The federal court record i'm the New
York telephone case (Which lasted 10
years. reached the staggering volume
of 62,S64 pages of testimony and
1923 exhibits. The expense involved
is reputed to have exceeded $5,OOO,OOO.
The telephone company won this case.
Under the present Wisconsin law,
expenses incurred in investigation be-
fore the commission are charged back
to the utility but court costs must be
carried by the commission. To wear
out the commission and the public
pOcketbOok, is therefore good utility
technique and trickery.
1t will be interesting to watch fed
eral court attitude toward state COM
mission orders from now on. There
is one catch in the Johnson bill. The
lower federal courts are not barred
from jurisdiction if the state order in
terfereS with interstate commerce. We
suspect that Bell telephone companies
throughout the nation will put up a
lusty howl that state rate orders are
burden on interstate commerce