Salt Lake Telegram | 1934-05-25 | Page 11 | Phone Dispute before Court

PHONE DISPUTE BEFORE COURT I Company Protests Reduction fr r in Service Rate Ordered 1 by P. P U. U Ct C. C t c Issues Involved In the Mountain States Slates Telephone and Telegraph company's com corn pany's appeal from an order of the late p public utilities commission temporarily tern tem reducing telephone rates at Logan Lolan were before the federal court here Friday PavIng the wa way for an e early hearing hear hear- frig ing in the case Deputy Attorney General John D D. Rice filed fled the states tates answer to the company company's suit for tor an injunction function together r with a a motion to dismiss the complaint on n the grounds too cause of ot action h u set act forth The answer makes blanket denial to w the company's charges that en en- of the commissions commission's order would result in confiscation of ot the company's property that a 1 of ot only 1 per cent vent on the investment at Logan would be obtained that the present yield is only 19 per cent and that a fair return would be 8 per cent Jurisdiction Questioned The state contends that the court has no jurisdiction in the case since the reduction order is only temporary tempo Ury lary and is intended to be in effect only until a final determination of the case ease stat statewide wide now before the commission It lt is the duty of t the public ties commission of ot the state of ot Utah to th remove unjust and unlawful discrimination dis crimination in rates charges 5 or Utes of Ct any utility operating in the state of I Utah tho the answer points out The state den denies S that the hearing on em the Provo Logan phase of ot the statewide ta wide case cake was vas incomplete as charged h r d by the the- c company pointing ou out it L Is' Is unable to determine the amount involved and placing the tho burden bur bur- den of proof upon the company that snore more than a be taken from the earnings at Logan by the commissions commission's order Order Reduces R Rates Rate tc The or lr r of the commission com corn mission r reduces rates at Logan to a parity with those thoo at Provo sloshing slashing party one residence rates 50 cents a month and two party residence rates 25 26 5 cents centes a month The commission has been re ro strained d from making the rates ef the by a t ter temporary r injunction Wh Whether ther this injunction unction is to be made permanent or or dismissed will be determined d at a hearing set for June 1 a three judge c court urt bIg ing n two judges s of th the circuit court Mr Rice said the states state's answer in the Telluride Power company case will be this week and nd it is expected ex cx- this and the telephone case will be heard by the court at the same jame session Hearings Hearing on n the statewide telephone telephone telephone tele tele- phone rate case will be resumed Oc Dc tober 15 by the commission