A-12112, JANUARY 22, 1926, 5 COMP. GEN. 515

A-12112: Jan 22, 1926

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TELEPHONE SERVICE - INCREASE IN RATES WHERE A CONTRACT FOR THE FURNISHING OF TELEPHONE SERVICE FOR A QUARANTINE STATION OF THE PUBLIC HEALTH SERVICE PROVIDED THAT THE RATES THEREIN SPECIFIED WERE "SUBJECT TO ANY CHANGES MADE BY A DULY AUTHORIZED STATE OR GOVERNMENT COMMISSION DURING THE PERIOD OF THE CONTRACT. " THE UNITED STATES IS NOT OBLIGATED TO PAY AN INCREASE IN RATES MADE BY THE CONTRACTOR AND AUTHORIZED BY INTERLOCUTORY INJUNCTION OF A UNITED STATES DISTRICT COURT PENDING A FINAL DECREE WITH REFERENCE THERETO. IN THE ABSENCE OF A SHOWING THAT THE INCREASE WAS MADE OR APPROVED BY A DULY AUTHORIZED STATE OR GOVERNMENT COMMISSION AS PROVIDED IN THE CONTRACT. THERE WAS ALLOWED $39. THERE WAS DISALLOWED $9 AS REPRESENTING CHARGES IN EXCESS OF THE CONTRACT PRICES FOR THE SERVICE.

A-12112, JANUARY 22, 1926, 5 COMP. GEN. 515

TELEPHONE SERVICE - INCREASE IN RATES WHERE A CONTRACT FOR THE FURNISHING OF TELEPHONE SERVICE FOR A QUARANTINE STATION OF THE PUBLIC HEALTH SERVICE PROVIDED THAT THE RATES THEREIN SPECIFIED WERE "SUBJECT TO ANY CHANGES MADE BY A DULY AUTHORIZED STATE OR GOVERNMENT COMMISSION DURING THE PERIOD OF THE CONTRACT," THE UNITED STATES IS NOT OBLIGATED TO PAY AN INCREASE IN RATES MADE BY THE CONTRACTOR AND AUTHORIZED BY INTERLOCUTORY INJUNCTION OF A UNITED STATES DISTRICT COURT PENDING A FINAL DECREE WITH REFERENCE THERETO, IN THE ABSENCE OF A SHOWING THAT THE INCREASE WAS MADE OR APPROVED BY A DULY AUTHORIZED STATE OR GOVERNMENT COMMISSION AS PROVIDED IN THE CONTRACT.

DECISION BY COMPTROLLER GENERAL MCCARL, JANUARY 22, 1926:

REQUEST HAS BEEN MADE FOR REVIEW OF SETTLEMENT NO. 065086-T, DATED FEBRUARY 13, 1925, OF THE CLAIM (NO. 09784) OF THE PACIFIC TELEPHONE AND TELEGRAPH CO., FOR TELEPHONE SERVICE RENDERED THE UNITED STATES PUBLIC HEALTH SERVICE AT SEATTLE, WASH., QUARANTINE STATION AND RELIEF STATION NO. 329, DURING AUGUST AND SEPTEMBER, 1924, WHEREIN, OF THE SUM CLAIMED, $48, THERE WAS ALLOWED $39, AND THERE WAS DISALLOWED $9 AS REPRESENTING CHARGES IN EXCESS OF THE CONTRACT PRICES FOR THE SERVICE.

BY PROPOSAL, DATED MAY 14, 1924, ACCEPTED AND APPROVED BY THE DEPARTMENT JUNE 2, 1924, THE COMPANY WAS TO FURNISH TO THE QUARANTINE STATION DURING THE FISCAL YEAR 1925 TELEPHONE SERVICE,"1 MAIN LINE, DESK INSTRUMENT," AT $8.75 PER MONTH; AND BY PROPOSAL, DATED MAY 14, 1924, ACCEPTED AND APPROVED JULY 7, 1924, TELEPHONE SERVICE TO RELIEF STATION NO. 329, "1 MAIN LINE, DESK TRUMENT," AT $8.75 PER MONTH, AND "2 EXTENSIONS, DESK INSTRUMENTS," AT $1 EACH PER MONTH. EACH CONTRACT PROVIDED ALSO THAT---

THE RATES SPECIFIED HEREIN ARE NOT IN EXCESS OF THOSE CHARGED THE GENERAL PUBLIC FOR SIMILAR SERVICE, AND ARE SUBJECT TO ANY CHANGES MADE BY A DULY AUTHORIZED STATE OR GOVERNMENT COMMISSION DURING THE PERIOD OF THE CONTRACT. AUGUST 1, 1924, AND THAT IN THE DISTRICT COURT OF THE UNITED STATES FOR THE WESTERN DISTRICT OF WASHINGTON, SOUTHERN DIVISION, THE COMPANY OBTAINED AN INTERLOCUTORY INJUNCTION ENJOINING THE DEPARTMENT OF PUBLIC WORKS AND THE ATTORNEY GENERAL OF THE STATE OF WASHINGTON FROM ATTEMPTING TO INTERFERE WITH OR PREVENT THE COMPANY FROM PUTTING INTO EFFECT THE INCREASED RATES, WHICH WERE AUTHORIZED UNTIL A FINAL DECREE SHOULD BE ENTERED. THE COURT ORDER READS: IN THE DISTRICT COURT OF THE UNITED STATES FOR THE WESTERN DISTRICT OF

WASHINGTON, SOUTHERN DIVISION

IN EQUITY NO. 166

THE PACIFIC TELEPHONE AND TELEGRAPH COMPANY, A CORPORATION, PLAINTIFF,

V. E. V. KUYKENDALL, AS DIRECTOR OF PUBLIC WORKS OF WASHINGTON, HANCE H. CLELAND, AS SUPERVISOR OF PUBLIC UTILITIES OF WASHINGTON, AND FRANK R. SPINNING, AS SUPERVISOR OF TRANSPORTATION OF WASHINGTON, THE PERSONS CONSTITUTING THE DEPARTMENT OF PUBLIC WORKS OF THE STATE OF WASHINGTON, AND JOHN H. DUNBAR, ATTORNEY GENERAL OF THE STATE OF WASHINGTON, DEFENDANTS

ORDER GRANTING INTERLOCUTORY INJUNCTION

IN THE ABOVE-ENTITLED CAUSE, APPLICATION HAVING BEEN HERETOFORE MADE AND PRESENTED TO THE HONORABLE WILLIAM B. GILBERT, UNITED STATES CIRCUIT JUDGE, HONORABLE FRANK H. RUDKIN, UNITED STATES CIRCUIT JUDGE, AND HONORABLE JEREMIAH NETERER, UNITED STATES DISTRICT JUDGE, FOR THE ISSUANCE OF AN INTERLOCUTORY INJUNCTION AS PRAYED IN THE BILL IN SAID CAUSE, AND SAID APPLICATION HAVING BEEN HEARD AT TACOMA, WASHINGTON, ON THE 15TH DAY OF JULY, 1924, AND DUE NOTICE THEREOF HAVING BEEN GIVEN TO THE PARTIES IN SAID CAUSE THAT SAID APPLICATION CAME ON FOR HEARING AND DETERMINATION AT THE TIME AND PLACE AFORESAID STATED, AND AFTER CONSIDERING THE PLEADINGS IN THE CASE AND THE EVIDENCE OFFERED ON SAID HEARING BY THE PARTIES TO THE CAUSE:

IT IS ORDERED, ADJUDGED AND DECREED THAT THE DEFENDANTS, AND EACH OF THEM, AND ALL OTHER PERSONS PARTIES TO THE ACTION ARE ENJOINED FROM ATTEMPTING TO COMPEL THE PLAINTIFF, ITS OFFICERS, AGENTS, AND EMPLOYEES, TO OBSERVE, MAINTAIN, AND KEEP IN FORCE THE RATES AND CHARGES NOW PRESCRIBED BY THE DEPARTMENT OF PUBLIC WORKS OF THE STATE OF WASHINGTON, AS SET FORTH IN SCHEDULE EXHIBIT "A" REFERRED TO IN THE BILL OF COMPLAINT AND FILED THEREWITH, AND FROM ATTEMPTING TO INTERFERE WITH OR PREVENT THE PLAINTIFF, ITS DIRECTORS, OFFICERS, AGENTS, AND EMPLOYEES FROM IMMEDIATELY PUTTING INTO EFFECT THE RATES AND CHARGES SET FORTH IN SCHEDULE EXHIBIT "F" REFERRED TO IN THE BILL OF COMPLAINT AND FILED THEREWITH, AND FROM TAKING ANY STEPS OR PROCEEDINGS AGAINST THE PLAINTIFF, ITS DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES, TO ENFORCE ANY PENALTY OR REMEDY AGAINST THE PLAINTIFF, ITS DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES, FOR DISREGARDING THE RATES AND CHARGES SET FORTH IN SAID SCHEDULE EXHIBIT "A" OR FROM PUTTING INTO EFFECT ANY RATES OR CHARGES NOT IN EXCESS OF THOSE SET FORTH IN SAID SCHEDULE EXHIBIT "F.'

AND IT IS FURTHER ORDERED THAT THIS DECREE SHALL BECOME EFFECTIVE UPON THE PLAINTIFF COMPANY GIVING A BOND IN THE SUM OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($175,000) TO BE APPROVED BY THE COURT IF A PERSONAL BOND IS GIVEN, AND TO BE APPROVED BY THE CLERK OF THE ABOVE-ENTITLED COURT IF A SURETY BOND IS GIVEN, WHICH BOND IS TO BE CONDITIONED TO REIMBURSE SUBSCRIBERS THE EXCESS OVER THE RATES SET FORTH IN SCHEDULE EXHIBIT "A" IN CASE IT IS FINALLY DETERMINED THAT THE INCREASE OF RATES HEREBY AUTHORIZED OUGHT NOT TO BE AUTHORIZED.

AND IT IS FURTHER ORDERED THAT THE PLAINTIFF COMPANY SHALL FROM TIME TO TIME, UNTIL THE FINAL DETERMINATION OF THIS LITIGATION, FILE ADDITIONAL BONDS IN SUCH AMOUNTS AS MAY BE REQUIRED BY THE COURT.

AND IT IS FURTHER ORDERED THAT THE PLAINTIFF COMPANY SHALL FILE WITH THE CLERK OF THE ABOVE-NAMED COURT CONVENIENTLY AFTER THE FIRST DAY OF EACH MONTH A STATEMENT OF THE AMOUNT COLLECTED FROM EACH OF ITS SUBSCRIBERS, TOGETHER WITH A STATEMENT OF THE AMOUNT THAT WOULD HAVE BEEN COLLECTED HAD THE RATES SET FORTH IN SCHEDULE EXHIBIT "A" BEEN IN FORCE, AND THAT WHEN A FINAL DECREE IS ENTERED, IF IT SHALL BE DETERMINED THAT THE RATES SET FORTH IN SAID SCHEDULE EXHIBIT "A" SHOULD HAVE BEEN CONTINUED IN EFFECT BY SAID PLAINTIFF COMPANY, THEN AND IN THAT EVENT THE DIFFERENCE BETWEEN THE RATES SET FORTH IN SAID EXHIBIT "A" AND THE RATES COLLECTED SHALL BE PAID TO A SPECIAL MASTER TO BE APPOINTED BY THIS COURT, AND WHOSE COMPENSATION SHALL BE PAID BY THE PLAINTIFF COMPANY, AND BY SUCH SPECIAL MASTER DISTRIBUTED TO THE VARIOUS PERSONS ENTITLED TO RECEIVE THE SAME.

DONE IN OPEN COURT THIS 23 DAY OF JULY, 1924.

(SIGNED) JEREMIAH NETERER,

JUDGE, BY DIRECTION OF THE COURT AS ABOVE CONSTITUTED.

FOR THE SERVICES IN QUESTION THE BILLS RENDERED BY THE COMPANY WERE IN ACCORDANCE WITH THE INCREASE OF RATES, BEING $10.75 PER MONTH FOR "1 MAIN LINE, DESK INSTRUMENT," AND $1.25 PER MONTH EACH FOR "2 EXTENSIONS, DESK INSTRUMENTS.'

IN VIEW OF THE EXPRESS PROVISION OF THE CONTRACT QUOTED, SUPRA, WITH REFERENCE TO CHANGE IN RATES, AND AS IT DOES NOT APPEAR THAT THE INCREASE OF RATES WAS "MADE BY A DULY AUTHORIZED STATE OR GOVERNMENT COMMISSION DURING THE PERIOD OF THE CONTRACT," IT MUST BE HELD THAT THE UNITED STATES IS NOT LEGALLY OBLIGATED TO PAY THE SAME.